Exam 7: Fiduciary Trust Funds

A fund that accounts for the external portion of investment pools reported by the sponsoring government.

Which of the following would be an example of an investment trust fund?

A private-purpose trust fund where the principal is not expendable, normally it is called a/an:

The City of DeKalb contributes to three pension plans: (1) a statewide pension plan for nonuniformed personnel, (2) a locally administered plan for police officers and (3) a locally administered plan for firefighters. The City is trustee for the plans for police officers and firefighters. Which of the following is true?

Investment Trust Funds account for the external portion of investment pools.

Contrast the accounting for internal and external portions of investment pools.

An investment trust fund is used to account for the external portion of a multi-government investment pool, when the reporting government is trustee.

Governments that contribute to single employer and agent multiple-employer plans compute annual pension cost as the annual required contributions.

What account should be credited in a pension trust fund to record employee contributions?

On July 1, 2008, the City of Smyth received a gift of debt securities of XYZ Company with a nominal value of $2,000,000. Income is to be used to make awards for civic achievements. As of the date of the gift, the securities had a market value of $2,044,000, including accrued interest of $30,000. The bonds carried an annual interest rate of 6%, payable semiannually on April 1 and October 1. During the fiscal year ended June 30, 2009, the following transactions took place: 1. The gift was received. 2. On October 1, $\$ 60,000$ in interest was received. 3. On April 1, $\$ 60,000$ in interest was received. 4. On April 1, immediately after the receipt of interest, one quarter of the $X Y Z$ bonds were sold for $\$ 500,000$ . The proceeds were invested in $A B C$ bonds, which also carried a $6.5 \%$ annual interest rate, payable semiannually on April 1 and Oetober 1. The bonds were purchased at par value. 5. On June 30, 2009, accrued interest on both bonds was recognized. 6. On June 30, 2009, awards were made in the amount of $\$ 100,000$ . 7. As of June 30, 2009, the fair value of the remaining XYZ bonds was $\$ 1,513,500$ , and the fair value of the $\mathrm{ABC}$ bonds was $\$ 498,000$ . Both figures are exclusive of accrued interest. Required: A. Record the above transactions on the books of the City of Smyth Private-Purpose Trust Fund. B. Prepare a Statement of Changes in Fiduciary Net Assets for the City of Smyth Private-Purpose Trust Fund for the year ended June 30, 2009.

Fiduciary funds are reported in the government-wide financial statements.

Which of the Fiduciary Funds listed below is used to account for the assets held by a government acting as an agent for one or more other governmental units?

Fiduciary Funds are reported by activity.

GASB Statement 31, Accounting and Financial Reporting for Certain Investments and for External Investment Pools, does not apply to which of the following investment types?

Reporting for Defined Benefit Pension Plans requires two supplementary schedules; the Schedule of Funding Progress and the Schedule of Employers Contributions.

Proprietary funds record unfunded pension obligations as a fund liability.

Fiduciary funds use accrual accounting.

Agency fund assets and liabilities are to be recognized:

Ford County levies for its General Fund $1,000,000 in property taxes. In addition, the county is responsible for collecting $2,000,000 in property taxes for the consolidated school district and $500,000 in property taxes for a town within the county. 2% of all taxes levied are expected to be uncollectible. When recording the levies in an agency fund, what amount would Ford County record as Taxes Receivable for Other Governments - Current and Due to Other Governments?

Which of the following statements is not true regarding agency funds?