Module 10: Fiduciary Funds & Permanent Funds Flashcards
Actuarial cost method
a means of allocating the total cost of expected pension benefits over the total years of employee service
agency funds
a fund used to account for assets that a government holds temporarily for other parties
agent
a party that acts on behalf of another
defined benefit pension plan
a pension plan that specifies the pension benefits to be paid to retirees, usually as a function of factors such as age, years of service, and compenstation
defined contribution plan
a pension plan that specifies the amount of contribution to an individual’s retirement account instead of the amount of benefits to receive
endowment
a sum of cash, investments, or other assets, generally received as a gift, of which only the income, not the principal may be expended
escheat property
a fiduciary fund used to account for escheat property (private property that has reverted to a government due to lack of heirs or claiments)
fiduciary funds
the trust and agency funds used to account for assets held by a government unit in a trustee capacity or as an agent for individuals, private organizations, other governmental units, or other funds
investment trust fund
funds maintained by government to account for investment pools maintained for other governments
pension contribution
the amount paid into a pension plan by an employer (or employee), pursuant to the terms of the plan, state law, actuarial calculations, or some other basis for determination
pension obligation
the portion of the actuarial present value of total projected benefits estimated to be payable in the future as a result of employee service to date
pension trust fund
a trust fund used to account for the assets accumulated by a pension plan. Pension trust funds, like nonexpendable trust funds, are account for on an accrual basis.
permanent funds
Per GASB stmt #34, trust funds in which the beneficiary is the government itself rather than outside parties. Permanent funds are categorized and accounted for as governmental funds
private purpose trust fund
a fund maintained by the government to account for assets held for the benefit of outside parties
Public Employee Retirement Systems (PERS)
A pension plan maintained for govt employees
temporarily restricted net assets
resources that must be used either for a specified purpose or when specified events have occurred. In the context of NFP FS, one of the three main categories into which resources have to be categorized
Nonexpendable
A donation with a stipulation that only earnings can be used, not the principal/corpus
An endowment requires that the principal is preserved for ______.
EVER
A ____ endowment is one that the principal can be expended after a certain number of years
Term