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13 Cards in this Set
- Front
- Back
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Fiduciary Relationship |
Government is acting as a trustee, custodian, or agent. |
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Agency Funds |
Used when the government acts purely as an agent. Pass-through entity responsible for collections and proper payment to the appropriate parties (other funds, individuals, or organizations). |
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Trust Funds |
Assets are held in investments to produce income, the income should be used for specified purposes that are not a part of the government's programs. Accounting must be consistent with trust agreement. |
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"Additions" and "Deductions" (Statement of Changes in Net Position) |
Items externally reported that are consistent with the trust agreement purpose: 1) Additions: contributions and interest revenue 2) Deductions: expenses and payments |
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Special Assessment Debt |
Agency Fund Used to account for debt service transactions for projects financed with special assessments that the government with the agency fund is not obligated to pay. |
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Statement of Fiduciary Net Position (Agency Fund) |
Assets = Liabilities Since it is a pass through fund, there is no equity. There are no revenues or expenses/ expenditures reported. When funds are collected liability is recorded as "due to..." |
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Reporting of Agency Funds |
Internally: Accounts for ALL resources. Externally: Excluded because the government does NOT own the funds. |
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Tax Agency Fund |
Collects taxes for several funds or other governmental units, for cost efficiency. Fees from other entities to collect taxes are recognized as revenue. The governmental unit that contains the agency fund reports their revenue collect externally only (internally all entities are recorded). |
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Investment Trust Fund |
Report the external portion of investment pools reported by the sponsoring government. Used when the government commingles resources with a separate legal entity. Recorded at FV and Net Position is allocated to each participants. |
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Private Purpose Trust Funds |
Reports trust arrangements under which the principle of the fund and the income produced is for the benefit of individuals, private organizations, or other governments. |
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Pension Trust Funds |
Reports resources that are required to be held in trust for the members/beneficiaries of defined benefit pension plans and defined contribution plans. |
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Additions (Items included in Statement of Changes in Net Position) |
1) Contributions 2) Investment Income [Increase in FV, interest, dividends] |
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Deductions (Items included in Statement of Changes in Net Position) |
1) Decrease in FV of Investments 2) Annuity benefits 3) Disability benefits 4) Refunds to terminated employees 5) Administrative expenses |
