fiduciary funds
TRANSCRIPT
![Page 1: Fiduciary Funds](https://reader035.vdocuments.net/reader035/viewer/2022081513/55c2a711bb61ebfa088b473e/html5/thumbnails/1.jpg)
FIDUCIARY FUNDS
![Page 2: Fiduciary Funds](https://reader035.vdocuments.net/reader035/viewer/2022081513/55c2a711bb61ebfa088b473e/html5/thumbnails/2.jpg)
OWNERSHIPCONTROL
BENEFIT/RISK
ELEMENTS
![Page 3: Fiduciary Funds](https://reader035.vdocuments.net/reader035/viewer/2022081513/55c2a711bb61ebfa088b473e/html5/thumbnails/3.jpg)
OWNERSHIPCONTROL
BENEFIT/RISK
ELEMENTSThree characteristics to look at:1. Ownership – the government does not haveownership of the assets in a fiduciary fund2. Control – the government has control of theassets in a fiduciary fund3. Benefits or Risk – the government is not thebeneficiary of the assets in a fiduciary fund noris it responsible for the debt.
![Page 4: Fiduciary Funds](https://reader035.vdocuments.net/reader035/viewer/2022081513/55c2a711bb61ebfa088b473e/html5/thumbnails/4.jpg)
ERMAAND
ACCRUALFiduciary funds follow the ERMA and accrual method ofaccounting.
![Page 5: Fiduciary Funds](https://reader035.vdocuments.net/reader035/viewer/2022081513/55c2a711bb61ebfa088b473e/html5/thumbnails/5.jpg)
AGENCYPENSION TRUST
PRIVATE-PURPOSE TRUSTINVESTMENT TRUST
Four types of fiduciary funds.
![Page 6: Fiduciary Funds](https://reader035.vdocuments.net/reader035/viewer/2022081513/55c2a711bb61ebfa088b473e/html5/thumbnails/6.jpg)
GOVERNMENT-WIDE
STATEMENTS
![Page 7: Fiduciary Funds](https://reader035.vdocuments.net/reader035/viewer/2022081513/55c2a711bb61ebfa088b473e/html5/thumbnails/7.jpg)
GOVERNMENT-WIDE
STATEMENTS
Fiduciary funds are notincluded in the governmentwide financial statements. They appear in the CAFR asstand alone statements.
![Page 8: Fiduciary Funds](https://reader035.vdocuments.net/reader035/viewer/2022081513/55c2a711bb61ebfa088b473e/html5/thumbnails/8.jpg)
STATEMENT OF CHANGES IN FIDUCIARYNET POSITION
![Page 9: Fiduciary Funds](https://reader035.vdocuments.net/reader035/viewer/2022081513/55c2a711bb61ebfa088b473e/html5/thumbnails/9.jpg)
STATEMENT OF CHANGES IN FIDUCIARYNET POSITION
The Statement of Changes in Fiduciary NetPosition is not an income statement. Thereis no income statement equivalent forfiduciary funds because the assets do notbelong to the government. Therefore, theterms “revenue and expense” are not used. Rather, items on the statement are either“additions” or “deductions”.
![Page 10: Fiduciary Funds](https://reader035.vdocuments.net/reader035/viewer/2022081513/55c2a711bb61ebfa088b473e/html5/thumbnails/10.jpg)
AGENCY FUNDS
ASSETS = LIABILITIES
![Page 11: Fiduciary Funds](https://reader035.vdocuments.net/reader035/viewer/2022081513/55c2a711bb61ebfa088b473e/html5/thumbnails/11.jpg)
AGENCY FUNDS
ASSETS = LIABILITIES
Key point about agencyfunds – there is no netposition. Assets equalliabilities.
![Page 12: Fiduciary Funds](https://reader035.vdocuments.net/reader035/viewer/2022081513/55c2a711bb61ebfa088b473e/html5/thumbnails/12.jpg)
PENSIONSLIABILITY
VSTRUST FUND
KNOW THE DIFFERENCE!
![Page 13: Fiduciary Funds](https://reader035.vdocuments.net/reader035/viewer/2022081513/55c2a711bb61ebfa088b473e/html5/thumbnails/13.jpg)
PENSIONSLIABILITY
VSTRUST FUND
KNOW THE DIFFERENCE!
Do not confuse pension liability withthe pension trust fund. The trust fundis comprised of assets alreadycontributed to the plan. The liability isthe amount the government owes tothe plan.
![Page 14: Fiduciary Funds](https://reader035.vdocuments.net/reader035/viewer/2022081513/55c2a711bb61ebfa088b473e/html5/thumbnails/14.jpg)
WHO BENEFITS?PRIVATE PURPOSE
VSPERMANENT
KNOW THE DIFFERENCE!
![Page 15: Fiduciary Funds](https://reader035.vdocuments.net/reader035/viewer/2022081513/55c2a711bb61ebfa088b473e/html5/thumbnails/15.jpg)
WHO BENEFITS?PRIVATE PURPOSE
VSPERMANENT
KNOW THE DIFFERENCE!
A permanent fund is usedto account for assets thatbenefit the public or a largesegment of the population. Private-purpose fundsbenefit narrow groups.
![Page 16: Fiduciary Funds](https://reader035.vdocuments.net/reader035/viewer/2022081513/55c2a711bb61ebfa088b473e/html5/thumbnails/16.jpg)
WHOSE ASSETS?INVESTMENT TRUST
VSGOVERNMENTAL FUND
KNOW THE DIFFERENCE!
![Page 17: Fiduciary Funds](https://reader035.vdocuments.net/reader035/viewer/2022081513/55c2a711bb61ebfa088b473e/html5/thumbnails/17.jpg)
WHOSE ASSETS?INVESTMENT TRUST
VSGOVERNMENTAL FUND
KNOW THE DIFFERENCE!
The assets used to establish the investments cancome from many sources. Those sources includefunds of the managing government and the funds ofother unrelated governments. The portionrepresenting the managing government's money isnot accounted for in the fiduciary fund. Rather, agovernmental fund would be used. Assets ofunrelated governments are accounted for in aninvestment trust fund.
![Page 18: Fiduciary Funds](https://reader035.vdocuments.net/reader035/viewer/2022081513/55c2a711bb61ebfa088b473e/html5/thumbnails/18.jpg)
GASB REQUIRESFAIR VALUE
ACCOUNTING
![Page 19: Fiduciary Funds](https://reader035.vdocuments.net/reader035/viewer/2022081513/55c2a711bb61ebfa088b473e/html5/thumbnails/19.jpg)
DON'T SEPARATE
AND REALIZED
UNREALIZED
![Page 20: Fiduciary Funds](https://reader035.vdocuments.net/reader035/viewer/2022081513/55c2a711bb61ebfa088b473e/html5/thumbnails/20.jpg)
DON'T SEPARATE
AND REALIZED
UNREALIZED
Do not report unrealized gain &losses separate from realizedgains & losses in the financialstatements. Note disclosures areok, financial statementpresentation is not.
![Page 21: Fiduciary Funds](https://reader035.vdocuments.net/reader035/viewer/2022081513/55c2a711bb61ebfa088b473e/html5/thumbnails/21.jpg)
Theaccompanying
audio isavailable on
YouTube