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Chapter 07 - Fiduciary Funds
7-1
7-1. THE ANSWERS TO THIS EXERCISE, AND TO THE FIRST EXERCISE OF CHAPTERS 1
7-2 . GASB STANDARDS REQUIRE THAT GOVERNMENTS ACCOUNT FOR SPECIAL ASSESSMENT
ACTIVITIES IN AN AGENCY FUND IF THE GOVERNMENT HAS NO OBLIGATION (PRIMARY
7-3 (A). BENTON COUNTY TAX AGENCY FUND
DEBITS
CREDITS
1.
TAXES RECEIVABLE FOR OTHER GOVERNMENTS-CURRENT
DUE TO OTHER FUNDS AND UNITS
51,300,000 – 11,500,000
$39,800,000
$39,800,000
2.
CASH
TAXES RECEIVABLE FOR OTHER GOVERNMENTS-CURRENT
19,544,000
19,544,000
3.
DUE TO OTHER FUNDS AND UNITS
DUE TO BENTON COUNTY GENERAL FUND
DUE TO TOWN OF THOMAS
DUE TO TOWN OF HART
DUE TO BENTON COUNTY SCHOOL DISTRICT
DUE TO VARIOUS SPECIAL DISTRICTS
19,544,000
293,160
4,008,950
1,002,730
11,299,920
2,939,240
COMPUTATIONS:
AMOUNT
COLLECTED
ADJUSTMENT
FOR FEE
NET
DUE
BENTON COUNTY GENERAL FUND
TOWN OF THOMAS
TOWN OF HART
SCHOOL DISTRICT
VARIOUS SPECIAL DISTRICTS
TOTALS
4,070,000
1,018,000
11,472,000
2,984,000
$19,544,000
293,160
(61,050)
(15,270)
(172,080)
(44,760)
-0-
$ 293,160
4,008,950
1,002,730
11,299,920
2,939,240
$19,544,000
Chapter 07 - Fiduciary Funds
4.
DUE TO BENTON COUNTY GENERAL FUND
DUE TO TOWN OF THOMAS
DUE TO TOWN OF HART
DUE TO BENTON COUNTY SCHOOL DISTRICT
DUE TO VARIOUS SPECIAL DISTRICTS
CASH
293,160
4,008,950
1,002,730
11,299,920
2,939,240
$19,544,000
7-3 (B). BENTON COUNTY GENERAL FUND
DEBITS
CREDITS
1.
TAXES RECEIVABLE-CURRENT
ESTIMATED UNCOLLECTIBLE CURRENT TAXES
REVENUES CONTROL
11,500,000
230,000
11,270,000
2.
CASH
TAXES RECEIVABLE-CURRENT
5,080,000
5,080,000
3.
DUE FROM TAX AGENCY FUND
REVENUES CONTROL
293,160
293,160
4.
CASH
DUE FROM TAX AGENCY FUND
293,160
293,160
7-3 ( C).
TOWN OF THOMAS
DEBITS
CREDITS
1.
TAXES RECEIVABLE-CURRENT
ESTIMATED UNCOLLECTIBLE CURRENT TAXES
REVENUES CONTROL
6,400,000
128,000
6,272,000
3.
DUE FROM TAX AGENCY FUND
EXPENDITURES CONTROL
TAXES RECEIVABLE-CURRENT
4,008,950
61,050
4,070,000
4.
CASH
DUE FROM TAX AGENCY FUND
4,008,950
4,008,950
PRIVATE-PURPOSE TRUST FUNDS
Chapter 07 - Fiduciary Funds
7-3
7-4. IN DETERMINING THE APPROPRIATE FUND TO RECORD THE TRUST, IT IS IMPORTANT TO
(2) ALTERNATIVELY WHETHER THE TRUST BENEFITS INDIVIDUALS, PRIVATE
ORGANIZATIONS OR OTHER GOVERNEMNTS.
(1) IF THE TRUST BENEFITS INDIVIDUALS, PRIVATE ORGANIZATIONS OR OTHER
Chapter 07 - Fiduciary Funds
7-5
ALGONQUIN SCHOOL DISTRICT
SCHOLARSHIP TRUST FUND
GENERAL JOURNAL
FISCAL YEAR 2015
DEBITS
CREDITS
ADDITIONS-INVESTMENT EARNINGS-INTEREST
DEDUCTIONS-INVESTMENT EARNINGS-NET
INCREASE IN FAIR VALUE OF INVESTMENTS
NET POSITION: RESTRICTED FOR SCHOLARSHIPS
DEDUCTIONS-ADMINISTRATIVE EXPENSES
DEDUCTIONS-DISTRIBUTIONS OF SCHOLARSHIPS
75,400
3,000
400
6,000
72,000
ALGONQUIN SCHOOL DISTRICT
SCHOLARSHIP TRUST FUND
FOR THE YEAR ENDED JUNE 30, 2015
ADDITIONS:
INVESTMENT EARNINGS:
INTEREST INCOME
NET INCREASE IN FAIR VALUE OF INVESTMENTS
TOTAL ADDITIONS
$ 75,400
3,000
78,400
DEDUCTIONS:
ADMINISTRATIVE EXPENSES
DISTRIBUTION OF SCHOLARSHIPSNPROFIT ORGANIZATIONS
TOTAL DEDUCTIONS
6,000
72,000
78,000
CHANGE IN FIDUCIARY NET POSITION
400
FIDUCIARY NET POSITION-BEGINNING
1,253,600
FIDUCIARY NET POSITION-ENDING
$1,254,000
Chapter 07 - Fiduciary Funds
7-6 (A).
CITY OF BELVEDERE
DEBITS
CREDITS
1.
CASH
ADDITIONS-CONTRIBUTIONS
3,000,000
3,000,000
2.
INVESTMENT IN XYZ COMPANY BONDS
ACCRUED INTEREST RECEIVABLE
CASH
2,000,000
33,333
2,033,333
3.
INVESTMENT IN ABC COMPANY STOCK
CASH
950,000
950,000
4.
CASH
ACCRUED INTEREST RECEIVABLE
ADDITIONS-INVESTMENT EARNINGS-INTEREST
50,000
33,333
16,667
5.
CASH
ADDITIONS-INVESTMENT EARNINGS-DIVIDENDS
30,000
30,000
6.
CASH
INVESTMENT IN ABC COMPANY STOCK
ADDITIONS-INVESTMENT EARNINGS-NET
INCREASE IN FAIR VALUE OF INVESTMENTS
961,000
950,000
11,000
INVESTMENT IN DEF COMPANY STOCK
CASH
965,000
965,000
7.
CASH
ADDITIONS-INVESTMENT EARNINGS-INTEREST
50,000
50,000
8.
DEDUCTIONS-DISTRIBUTION TO COMMUNITY
NONPROFIT ORGANIZATIONS
CASH
120,500
120,500
9.
DEDUCTIONS-ADMINISTRATIVE EXPENSES
CASH
5,000
5,000
10.
ACCRUED INTEREST RECEIVABLE
ADDITIONS-INVESTMENT EARNINGS-INTEREST
25,000
25,000
11.
INVESTMENT IN XYZ COMPANY BONDS
ADDITIONS-INVESTMENT EARNINGS-NET
DECREASE IN FAIR VALUE OF INVESTMENTS
INVESTMENT IN DEF COMPANY STOCK
2,000
3,000
5,000
Chapter 07 - Fiduciary Funds
7-6 (A) (CONTINUED).
DEBITS
CREDITS
12.
ADDITIONS-CONTRIBUTIONS
ADDITIONS-INVESTMENT EARNINGS-INTEREST
ADDITIONS-INVESTMENT EARNINGS-DIVIDENDS
ADDITIONS-INVESTMENT EARNINGS-NET
INCREASE IN FAIR VALUE OF INVESTMENTS
DEDUCTIONS-ADMINISTRATIVE EXPENSES
DEDUCTIONS-DISTRIBUTIONS TO NONPROFIT
ORGANIZATIONS
FIDUCIARY NET POSITION: RESTRICTED FOR
COMMUNITY NONPROFIT ORGANIZATIONS
3,000,000
91,667
30,000
8,000
5,000
120,500
3,004,167
7-6 (B) (1).
CITY OF BELVEDERE
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
COMMUNITY TRUST FUND
FOR THE YEAR ENDED JUNE 30, 2015
ADDITIONS:
CONTRIBUTIONS
INVESTMENT EARNINGS:
INTEREST INCOME
DIVIDEND INCOME
NET INCREASE IN FAIR VALUE OF INVESTMENTS
TOTAL INVESTMENT EARNINGS
TOTAL ADDITIONS
$91,667
30,000
8,000
$3,000,000
129,667
3,129,667
DEDUCTIONS:
ADMINISTRATIVE EXPENSES
DISTRIBUTION TO COMMUNITY NONPROFIT ORGANIZATIONS
TOTAL DEDUCTIONS
5,000
120,500
125,500
CHANGE IN FIDUCIARY NET POSITION
3,004,167
FIDUCIARY NET POSITION-BEGINNING
0
FIDUCIARY NET POSITION-ENDING
$3,004,167
Chapter 07 - Fiduciary Funds
7-6 (B) (2).
CITY OF BELVEDERE
STATEMENT OF FIDUCIARY NET POSITION
COMMUNITY TRUST FUND
Chapter 07 - Fiduciary Funds
7-7 (A).
MORGAN COUNTY SCHOOL DISTRICT
DEBITS
CREDITS
1.
CASH
ADDITIONS-CONTRIBUTIONS
30,000
30,000
INVESTMENTS
CASH
30,000
30,000
2.
CASH
ADDITIONS-INVESTMENT EARNINGS-INTEREST
INVESTMENTS
4,250
1,250
3,000
3.
DEDUCTIONS-SCHOLARSHIP AWARDS
CASH
4,250
4,250
4.
ADDITIONS-CONTRIBUTIONS
ADDITIONS-INVESTMENT EARNINGS-INTEREST
DEDUCTIONS-SCHOLARSHIP AWARDS
FIDUCIARY NET POSITION: RESTRICTED FOR
SCHOLARSHIP AWARDS
30,000
1,250
4,250
27,000
Chapter 07 - Fiduciary Funds
7-8.
(A). INVESTMENT TRUST FUNDS ARE AN APPROPRIATE CLASSIFICATION FOR GOVERNMENTS
THAT ADMINISTER MULTIGOVERNMENT EXTERNAL INVESTMENT POOLS.
(B). THE PORTION THAT SHOULD BE INCLUDED IS THE EXTERNAL PORTION; THE FUNDS THAT
BELONG TO THE SPONSORING GOVERNMENT SHOULD NOT BE REPORTED IN THE
7-9
BAIRD COUNTY
INVESTMENT TRUST FUND
GENERAL JOURNAL
Chapter 07 - Fiduciary Funds
7-9 CONTINUED
BAIRD COUNTY
INVESTMENT TRUST FUND
FOR THE YEAR ENDED JUNE 30, 2015
ADDITIONS:
INVESTMENT EARNINGS:
INTEREST INCOME
NET DECREASE IN FAIR VALUE OF INVESTMENTS
TOTAL EARNINGS
DEPOSITS FROM OTHER GOVERNMENTS:
DEPOSITS FROM SCHOOL DISTRICT
DEPOSITS FROM TOWN OF BAIRDSVILLE
TOTAL DEPOSITS
TOTAL ADDITIONS
$ 66,000
(18,000)
220,000
110,000
48,000
330,000
378,000
DEDUCTIONS:
TOTAL DEDUCTIONS
0
CHANGE IN FIDUCIARY NET POSITION
378,000
FIDUCIARY NET POSITION-BEGINNING
1,500,000
FIDUCIARY NET POSITION-ENDING
$1,878,000
PENSION TRUST FUNDS
7-10. THE REQUIRED STATEMENTS FOR A PENSION TRUST FUND ARE (A) STATEMENT OF
FIDUCIARY NET POSITION AND (B) STATEMENT OF CHANGES IN FIDUCIARY NET
Chapter 07 - Fiduciary Funds
7-11
7-11.
A. 1. A DEFINED CONTRIBUTION PLAN IS A PENSION PLAN IN WHICH THE BENEFITS ARE
LIMITED TO THE CONTRIBUTIONS MADE BY EMPLOYERS AND EMPLOYEES PLUS
A.2. A DEFINED BENEFIT PLAN, ON THE OTHER HAND, IS A PLAN THAT IS REQUIRED TO PAY A
CERTAIN SUM, NORMALLY BASED ON AVERAGE EARNINGS AND LENGTH OF SERVICE.
PLANS.
B. 1. AN AGENT MULTIEMPLOYER RETIREMENT PLAN IS A PLAN IN WHICH SEPARATE
ACCOUNTS ARE KEPT FOR EACH EMPLOYER. REQUIRED AND ACTUAL CONTRIBUTIONS
BY EMPLOYERS WOULD BE RECORDED OVER THE YEARS. AS A RESULT, IT IS POSSIBLE
C. 1. THE FIDUCIARY NET POSITION OF THE PENSION TRUST FUND IS THE EXCESS OF THESE
C. 2. THE NET PENSION LIABILITY IS THE AMOUNT THAT A GOVERNMENT ANTICIPATES
Chapter 07 - Fiduciary Funds
7-12
7-11 CONTINUED
D. 1. PENSION EXPENDITURES FOR GENERAL GOVERNMENT EMPLOYEES WOULD BE
REPORTED FOR THE YEAR IN THE GENERAL OR ANOTHER GOVERNMENTAL FUND. THE
AMOUNT WOULD BE LIMITED TO THE AMOUNT PAID OR THAT WILL BE PAID WITH
AVAILABLE FINANCIAL RESOURCES. THE DIFFERENCE BETWEEN THE ANNUAL PENSION
7-12.
A. IF THE GOVERNMENT IS TRUSTEE OF THE PENSION PLAN, IT IS REQUIRED TO REPORT THE
PLAN AS A FIDUCIARY FUND IN ITS FUND FINANCIAL STATEMENTS. AS A RESULT, IT S
INCLUDED IN THE STATEMENT OF FIDUCIARY NET POSITION AND THE STATEMENT OF
CHANGES IN FIDUCIARY NET POSITION. PENSION TRUST AND OTHER FIDUCIARY FUNDS
Chapter 07 - Fiduciary Funds
7-13 (A). CITY OF SWEETWATER EMPLOYEES' RETIREMENT FUND
DEBITS
CREDITS
1.
CASH
ACCRUED INTEREST RECEIVABLE
65,000
65,000
2.
CASH
ADDITIONS-CONTRIBUTIONS-PLAN MEMBERS
ADDITIONS-CONTRIBUTIONS-EMPLOYER
1,000,000
250,000
750,000
3.
DEDUCTIONS-ANNUITY BENEFITS
DEDUCTIONS-DISABILITY BENEFITS
ACCOUNTS PAYABLE AND ACCRUED EXPENSES
700,000
150,000
850,000
4.
ACCOUNTS PAYABLE AND ACCRUED EXPENSES
CASH
900,000
900,000
5.
CASH
ACCRUED INTEREST RECEIVABLE
ADDITIONS-INVESTMENT EARNINGS-INTEREST
ADDITIONS-INVESTMENT EARNINGS-DIVIDENDS
280,000
60,000
300,000
40,000
6.
DEDUCTIONS-REFUNDS TO TERMINATED EMPLOYEES
CASH
133,000
133,000
7.
CASH
ADDITIONS-INVESTMENT EARNINGS-NET
DECREASE IN FAIR VALUE OF INVESTMENTS
INVESTMENTS IN COMMON STOCKS
480,000
20,000
500,000
INVESTMENTS IN COMMON STOCKS
CASH
780,000
780,000
8.
INVESTMENTS IN BONDS
ADDITIONS-INVESTMENT EARNINGS-NET
DECREASE IN FAIR VALUE OF INVESTMENTS
INVESTMENTS IN COMMON STOCK
35,000
5,000
40,000
Chapter 07 - Fiduciary Funds
7-13(A) CONTINUED
9.
ADDITIONS-CONTRIBUTIONS-PLAN MEMBERS
ADDITIONS-CONTRIBUTIONS-EMPLOYER
ADDITIONS-INVESTMENT EARNINGS-INTEREST
ADDITIONS-INVESTMENT EARNINGS-DIVIDENDS
ADDITIONS-INVESTMENT EARNINGS-NET DECREASE
IN FAIR VALUE OF INVESTMENTS
DEDUCTIONS-ANNUITY BENEFITS
DEDUCTIONS-DISABILITY BENEFITS
DEDUCTIONS-REFUNDS TO TERMINATED EMPLOYEES
NET POSITION: RESTRICTED FOR PENSION BENEFITS
250,000
750,000
300,000
40,000
25,000
700,000
150,000
133,000
332,000
7-13 (B). CITY OF SWEETWATER
EMPLOYEES' RETIREMENT FUND
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
FOR THE YEAR ENDED JUNE 30, 2015
ADDITIONS:
CONTRIBUTIONS:
EMPLOYER
MEMBER
TOTAL CONTRIBUTIONS
$ 750,000
250,000
1,000,000
INVESTMENT INCOME:
INTEREST
DIVIDENDS
NET DECREASE IN FAIR VALUE OF INVESTMENTS
TOTAL INVESTMENT INCOME
TOTAL ADDITIONS
$300,000
40,000
(25,000)
315,000
1,315,000
DEDUCTIONS:
ANNUITY BENEFITS
DISABILITY BENEFITS
REFUNDS TO TERMINATED EMPLOYEES
TOTAL DEDUCTIONS
700,000
150,000
133,000
983,000
INCREASE IN FIDUCIARY NET POSITION
332,000
FIDUCIARY NET POSITION:
BEGINNING OF YEAR
END OF YEAR
5,635,000
$5,967,000
