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