Reference no: EM131525799

Question: In December 2011, the Hamilton County Board of Commissioners established the Hamilton County OPEB Trust Fund. Retired employees of Hamilton County can participate in post-employment benefits through the Trust. The Trust is a single-employer defined benefit plan. The benefits provided are health insurance and life insurance. In December 2011, the County made a one-time contribution to the fund of $23,890,000. No other events took place in 2011. Fiscal Year 2012 transactions were as follows:

1. The County paid its actuarially determined annual contribution of $18,335,000.

2. Member (employee) contributions totaled $4,061,000. Of this, $4,020,000 was collected by December 31st and the remainder will be collected in January 2013.

3. Cash totaling $31,000,000 was invested in U.S. government securities.

4. Interest totaling $1,438,000 was earned on these securities. Of this amount, $1,431,000 was collected during the year.

5. Because the County offers a drug plan to retired employees, the federal government Medicare program provides a subsidy to the County. The County received $498,000 from this subsidy.

6. Benefit claims from employees totaled $10,903,000 for the year. By yearend, $9,575,000 had been paid to employees.

7. Administrative expenses totaled $552,000 (all paid in the current year). Hamilton County operates the Domestic Relations Agency Fund. The fund works with the State Government's Domestic Relations Court the purpose of which is to establish child support, enforce child support obligations, and locate absent parents to assure noncustodial parents contribute toward the support of their children. The Domestic Relations Agency Fund is used to account for receipts and disbursements of support payments collected by the County, which are ultimately owed to the State Government's Domestic Relations Court. The County ended the year 2011 with $40,000 of cash.
Fiscal Year 2012 transactions were as follows:

8. The County collected $475,000 from noncustodial parents.

9. The County remitted $477,500 to the State Government's Domestic Relations Court.

Required: Use the Excel template provided to complete the following requirements; a separate tab is provided in Excel for each of these steps.

a. Prepare journal entries to record the information described in items 1 to 9.

b. Post these entries to T-accounts.

c. Prepare closing journal entries. Post to the T-account provided.

d. Prepare a Statement of Changes in Fiduciary Net Assets for the year ending 2012. e. Prepare a Statement of Fiduciary Net Assets as of December 31, 2012.