Exam 7: Fiduciary Trust Funds

Internal investment pools, which account for investments of the reporting entity, are to be spread out to the funds providing the resources, when preparing financial statements.

Pension Funds are used to account for assets provided to pension trusts.

Unless use of an agency fund is mandated by law, by GASB standards or by decision of the governing board of a government, an agency relationship may be accounted for within governmental and/or proprietary funds.

A statewide pension plan exists for all local governments in a certain state. The provisions of the plan indicate that each qualifying retiree receive 2% multiplied by the number of years active employment multiplied by the average salary for the past four years of service. The government calculates the actuarial liability on a statewide basis, not by individual government. The plan would be known as a (an):

Where in the Comprehensive Annual Financial Report would one find the accrued actuarial pension liability, in cases where the government has made the required annual contributions?

Agency fund assets are offset by liabilities equal in amount, so no fund equity exists.

Contrast the purpose of Private-purpose Trust Funds and Permanent Funds.

Fund equity will not be found in…

What fund has Required Supplementary Information including a Schedule of Funding Progress and a Schedule of Employer Contributions?

Investment pools invested from external parties are recorded in Investment Trust Funds.

Investments should be recorded at fair market value unless a government has sufficient investments in a company to apply the equity method.

Where is the actuarial liability shown in a Comprehensive Annual Financial Report for a pension trust fund?

Which of the following is true regarding agency funds?

Which of the follow schedules are required to be included in RSI of governments that provide pension trust funds and other post employment benefits:

Washington County assumed the responsibility of collecting property taxes for all governments within its boundaries. In order to reimburse the county for expenditures for administering the Tax Agency Fund, the Tax Agency Fund is to deduct two percent from the collections from the city and school district. The total amount deducted is to be added to the collections for the county and remitted to the County General Fund. You are to record the following transactions in the accounts of the Washington County Tax Agency Fund.

Which of the following is true regarding pension accounting and reporting for state and local governments?

Which of the following statements is true about Accounting and Reporting for Defined Benefit Pension Plans?

Contrast a defined benefit and define contribution retirement plan.

What are the required statements and schedules for a pension trust fund?

When a contributor and a government agree that the principle and/or income of trust assets is for the benefit of individuals, organizations or other governments, an agency trust has been formed.