F8: Fiduciary Funds Flashcards
(18 cards)
Fiduciary Funds AKA
Trust Funds
PAPI stands for
Pension trust
Agency trust
Private purpose trust
Investment trust
What one statement is not required for all fiduciary funds?
Statement of Cash Flows
What does the 1st P in PAPI stand for?
Pension Trust Funds
Purpose of Pension trust funds
Government sponsored defined benefit and defined contribution plans
Expense types of pension trust funds
Benefits payments, refunds, and admin expenses
Fiduciary and proprietary funds both use ________
Full accrual accounting
What does the A in PAPI stand for?
Agency Trust (think mailman)
Purpose of agency trust funds
Collects cash to be held temporarily for an authorized recipient for later disbursement
3 examples of agency trust funds
- tax collection funds
- clearance funds
- special assessments
If a governmental unit has monitoring and/or determines eligibility, what is used?
a special revenue fund
If a governmental unit does NOT have monitoring or determine eligibility, what is used?
an agency trust fund
What does a statement of fiduciary net position look like for agency trust funds?
CA = CL
- No net position
- No I/S
- No cash flow statement
What does the 2nd P in PAPI stand for?
Private Purpose Trust
Purpose of a private purpose trust fund
Designated fund for reporting all other trust arrangements under which P&I are for the benefit of:
- Specific individuals
- Private organizations
- Other governments
Private Purpose Trust is not for what?
General public use
What does the I in PAPI stand for?
Investment Trust Fund
Purpose of an investment trust fund
A governmental entity that sponsors one or more external investment pools should report the external portion of each pool as a separate investment trust fund
