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8 Cards in this Set
- Front
- Back
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What is the purpose of agency funds?
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To account for assets held by a government acting as an agent forone or more other governments, individuals, or private organizations
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What are the three instances in which use of an agency fund is appropriate?
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1) Dollar amount of transactions dictates use of agency fund for accountability reasons
2) Its use will improve financial management or accounting 3) Mandated by law, regulation, or GASB standards |
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What are some typical uses of Agency Funds?
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1) Special assessment accounting when the government is not obligated in any manner for special assessment debt
2) Tax- agency funds 3) Pass-through agency funds |
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What are special assessment agency funds?
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1) To account for special assessments when only the benefited taxpayers, and not the government, are obligated to pay interest and principal on the special assessment debt
2) Govnm'nt must not have indicated in any way its intent to be responsible for the debt 3) Government is simply acting as an agent for benefited property owners, as awell as the special assessment bondholders |
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What are Pass-Through Agency Funds?
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1) Used only if the intermediate (pass through) government has no administrative involvement or direct financial involvement in the grant
2) The pass-through government must simply be acting as a conduit before an agency fund is used |
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What are Trust Funds?
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1) Account for assets the government holds as an agent or trustee for individuals, organizations, or other governmentss
2) GAAP requires accrual accounting 3) GAAP requires that most investments be reported at fair value |
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What are Investment Trust Funds?
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Used to account for the balance sheet and operating statement transactions affecting the external participants of a centrally managed investment pool
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What are Private-Purpose Trust Funds?
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A trust fund in which the gift (principal) is maintained (endowment), or spent (expended) for the "private-purposes" specified by the donor
2) If the government or its citizenry, is the primary beneficiary, then account for the gift in a "public-purpose" permanent fund (if the gift is an endowment) or special revenue fund (if the gift is expendable) |
