{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Fiduciary Funds - TrustandAgency(Fiduciary)Funds Chapter12...

Info icon This preview shows pages 1–11. Sign up to view the full content.

View Full Document Right Arrow Icon
Click to edit Master subtitle style Trust and Agency (Fiduciary) Funds Chapter 12
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Learning Objectives n Understand & discuss circumstances when funds  are used n Define and distinguish among the four types of  funds n Prepare basic journal entries Prepare Agency Fund financial statements n Prepare Trust Fund financial statements n Account for common transactions affecting more  than one fund and GCA and GLTL accounts
Image of page 2
Funds held in fiduciary capacity for n Government or its programs –  endowment to finance research  program or maintain recreational area n Others, including individuals, other  governments, or private organizations
Image of page 3

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Examples of external fiduciary  relationships n Pension plans n External investment pools n Endowments to finance scholarships for  residents of government n Taxes, insurance premiums, & dues  withheld from employees pay to be  transferred to others
Image of page 4
May use other funds to account  for fiduciary relationships n Special Revenue Fund – resources  available for expenditures n Permanent Fund – maintenance of  principal required n Enterprise Fund – special business-type  activities
Image of page 5

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Accountability Focus n On the government’s fulfillment of its  fiduciary responsibilities during a  specified period and on remaining  responsibilities at the end of the period n Difference in assets and liabilities  typically called “ Net Assets Held in  Trust”
Image of page 6
Agency Funds n Conduit or clearinghouse funds  established to account for assets  received for and paid to other funds,  individuals, or organizations n Only used for assets held for the benefit  of others
Image of page 7

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Allowable uses of Agency  Funds n “Pure” pass-through grants – government  serves only as a cash conduit (use of AF  mandated by GASB) n Payroll deduction collection & payments n Imprest checking account n Receipts must be allocated among several funds n Single expenditure financed by several funds
Image of page 8
Tax Agency Funds (TAF) n Used to combine tax levies from  multiple governments in same  geographic area n Practice avoids duplicating assessment  and collection processes
Image of page 9

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Functions of TAF n Governments continue to maintain own tax  records.
Image of page 10
Image of page 11
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern