Chapter 10 - Chapter 10 Continuing Problem 1 Does the government maintain any permanent funds If so for what purposes Permanent Funds account for

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Chapter 10 Continuing Problem 1. Does the government maintain any permanent funds? If so, for what purposes? Permanent Funds account for resources that are legally restricted to the extent that only earnings, and not principal, may be used for the benefit of the state or its citizenry. The Common School Permanent Fund, the state’s only nonmajor permanent fund, accounts for the principal derived from the sale of timber. Interest earned is used for the benefit of common schools. http://www.ofm.wa.gov/cafr/2009/CAFR09.pdf 2. Does the government maintain any fiduciary funds? If so, for what purposes Fiduciary funds are used to account for resources held for the benefit of parties outside the government. Fiduciary funds are not reflected in the government-wide financial statements because the resources of those funds are not available to support the state of Washington’s own programs. Washington’s fiduciary funds include state administered pension plans. The accounting used for fiduciary funds is much like that used for
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This note was uploaded on 04/17/2011 for the course ACCOUNTING 490 taught by Professor Santos during the Spring '11 term at University of Phoenix.

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