Term
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Definition
| accounts for assets held by a government temporarily as agent for individuals, organizations, or other governmental units. |
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Term
| private-purpose trust fund |
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Definition
| results when a contributor and a government agree that the principal and/or income of trust assets is for the benefit of individuals, organizations, or other governments. |
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Term
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Definition
| exists when the government is the sponsor of a multigovernment investment pool and accounts for the external portion of those trust assets. |
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Term
| pension (or other employee benefit) trust fund |
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Definition
| exists when the government is the trustee for a defined benefit pension plan, defined contribution pension plan, or other employee benefit plan. |
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Term
| what basis/measurement focus do fiduciary funds use? |
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Definition
| accrual basis and economic resources measurement focus. |
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Term
| two exceptions to the basis/measurement focus |
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Definition
(1) agency funds do not report revenues, expenses, or net assets (though changes in assets and liabilities are recognized on the accrual basis).
(2) certain liabilities of defined benefit pension plans and certain post-employment health care plans are recognized following the requirements of GASB 25 & 43. |
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Term
| what terms are used in lieu of revenues and expenses? |
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Definition
| additions and deductions. they are measured on the accrual basis. |
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Term
| how are fiduciary funds reported? |
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Definition
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Term
| what statements are required for fiduciary funds? are there exceptions or additional requirements? |
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Definition
statement of fiduciary net assets; statement of changes in fiduciary net assets.
agency funds are not included in the statement of changes in net assets.
two schedules are required for pension (and other employee benefit) trust funds as RSI. |
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Term
| why are agency funds excluded from the statement of changes in net assets? |
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Definition
| because they have no revenues (additions) or expenses (deductions). |
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Term
| two schedules must be included in RSI for pension (and other employee benefit) trust plans. what are they? |
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Definition
(1) schedule of funding progress
(2) schedule of employer contributions |
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Term
| accounting in agency funds |
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Definition
| agency fund assets are offset by liabilities equal in amount; no fund equity exists. they are recognized at the time the government becomes responsible for the assets. additions and deductions are not recognized in the accounts of agency funds. |
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Term
| how may an agency relationship be accounted for? |
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Definition
| unless use of an agency fund is mandated by law, it may be accounted for within governmental and/or proprietary funds. |
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Term
| when does the GASB mandate that an agency fund be used? |
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Definition
| a government should account for special assessment activities in an agency fund if they have no obligation to assume responsibility for debt payments, even if the property owners default. |
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Term
| what is the distinguishing characteristic of a private-purpose trust fund? |
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Definition
| te benefit is limited to specific private, rather than general public, purposes. |
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Term
| how should investments in GASB statement 31 be reported? what does it apply to? what does it not apply to? |
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Definition
(1) at fair value.
(2) interest earning investment contracts, external investment pools, open-end mutual funds, debt securities, and equity securities that have readily determined fair values.
(3) investments of pension funds. |
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Term
| why aren't fiduciary funds included in the government-wide statements? |
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Definition
| because the resources are not available for general use. thus, they are reported only at the fund level. |
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Term
| the difference in agents and trustees is a legal distinction concerning the responsibilities of the fund manager. |
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Definition
agents hold assets and and keep them safe from theft, etc.
trustees are responsible for not only holding |
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