Exam 7: Fiduciary Trust Funds

The City of East Brunswick maintains a Public Employee Retirement Trust Fund for its public safety employees. During the year ended June 30, 2009, the following transactions occurred: 1. Member contributions in the amount of $\$ 1,800,000$ were received in cash. The city contributed the same amount in cash. 2. Annuity benefits in the amount of $\$ 450,000$ were recorded as liabilities. 3. Annuity benefits, previously recorded as liabilities, were paid in cash in the amount of $\$ 457,000 .$ 4. Investment income received in cash amounted to $\$ 105,000$ . In addition, $\$ 52,000$ in interest receivable was accrued at year-end. 5. Additional investments in the amount of $\$ 700,000$ were purchased. 6. The market value of investments decreased by $\$ 12,000$ . 7. Nominal accounts for the year were closed. Required: Prepare journal entries for the above transactions on the books of the City of East Brunswick Public Safety Employee Retirement Trust Fund.

GASB requires which of the following schedule(s) about pensions?

The required financial statements for agency funds include a Statement of Fiduciary Net Assets and a Statement of Changes in Fiduciary Net Assets.

A pension plan that is required to pay out only the amount that has been accumulated for each employee is a ________?

The term "fiduciary funds" include agency, pension trust, investment trust and permanent funds.

Which of the following is true regarding fiduciary funds?

If a government is liable for payment of special assessment debt in the event of default by the property owners, then an agency fund must be used.

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, a private-purpose trust has been formed.

Governments that contribute to single employer and agent multiple-employer plans compute annual pension cost as the unfunded actuarial liability.

Clinton County maintains an investment trust fund for the investments of governments within its borders. All the investments had determinable fair values. Which of the following is true regarding investment trust funds and investments in general?

Which of the following entries would be used to record the purchase of water by the General Fund?

What is a cost sharing state pension plan?

Fiduciary Funds are reported by fund type.

Investments in a private-purpose trust fund should generally be reported using the equity method.

Which Required Supplementary Information schedule is required for pension trust reporting?

Investments in a private-purpose trust fund should generally be reported using fair market value.

Which of the following is true regarding fiduciary funds?

The terms used for classification of items on the Statement of Fiduciary Changes in Net Assets are:

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 investment trust has been formed.