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Question:
A paper for a government / nonprofit accounting class.
PENSION TRUST FUND
Harvey City has only one Agency Fund and Trust. The city maintains and administers a defined benefit pension plan for police department and fire department personnel. The map is financed from contributions by the city and from investment income.
The fiduciary fund used in the case is a Pension Trust Fund. Compare the primary forms of accountability as among the Special Revenue Funds and General Fund, (2) Capital Projects Funds, and (3) Trust and Agency Funds.
Is it possible and/or permissible to account for more than one type of trust or agency relationship within a single Trust Fund or Agency Fund? Explain.
How could internal (interfund or intragovernmental) Agency Funds be used to facilitate a governmental unit's financial management and accounting processes?
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