Reference no: EM133062813

Question - Background - For each of the following indicate the fund (or funds), if any, in which you think the activity should be accounted for and reported. If you think the fund should be a fiduciary fund, then indicate the type of fund: if a governmental or proprietary fund, then so state. Provide a brief explanation for your response.

1. A state maintains an escheat fund for unclaimed property. Per the trust agreement establishing the fund, all property that is unclaimed after five years reverts to the state. In the past, approximately 60 percent of all property went unclaimed and hence reverted to the state.

2. Per a trust agreement, Green County maintains an investment pool to enable both the county itself and the various governments within the county to hold and invest liquid assets on a temporary basis. The aim of the fund is to enable the governments to maximize returns, minimize administrative costs and reap the benefits of professional asset management.

3. The City of Fairmont established a defined benefit plan for its employees. As required by GASB Statement No. 68, the city reports the unfunded liability of the plan on its balance sheet and discloses details of the plan in notes and RSI. The assets of the plan are held in various brokerage accounts and all investment decisions are made by a board of trustees elected by active and retired plan participants.