Wiley GAAP for Governments 2020

8FIDUCIARY FUNDS

• Introduction
• Agency Funds
  • Pass-Through Grants
  • Special Assessments
• Pension (and Other Employee Benefit) Trust Funds
  • Deferred Compensation Plans
• Investment Trust Funds
• Private-Purpose Trust Funds
• GASB Statement 84 Fiduciary Activities
  • Identifying Fiduciary Activities
  • Fiduciary Component Units
  • Pension and OPEB Arrangements That Are Not Component Units
  • Other Fiduciary Activities
  • Control of Assets
  • Own-Source Revenues
  • Reporting Fiduciary Activities in Fiduciary Funds
  • Statement of Fiduciary Net Position
  • Statement of Changes in Fiduciary Net Position
  • Reporting Fiduciary Component Units
  • Effective Date
• Summary

INTRODUCTION

Governments are often required to hold or manage assets on behalf of others. NCGAS 1 recognized the need for fiduciary funds (known as trust and agency funds prior to GASBS 34), “to account for assets held by a governmental unit in a trustee capacity or as an agent for individuals, private organizations, other governmental units, and/or other funds.”

GASBS 34 updated the types of fiduciary funds to include the following:

1. Pension (and other employee benefit) trust funds.
2. Investment trust funds.
3. Private-purpose trust funds.
4. Agency funds.

The funds are reported under GASBS 34 only in fiduciary fund financial statements. They are not reported as part of the government-wide financial statements.

Each of these fund types is described below. In addition, Chapter 22 describes the accounting and financial reporting principles used by pension trust ...