What is a “pass-through” agency-fund and under what conditions is it appropriate to use such a fund?...

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What is a “pass-through” agency-fund and under what conditions is it appropriate to use such a fund?  GASB standards require that investments be reported at fair value. Explain the GASB reporting requirements related to fair value. How do these requirements differ from reporting requirements for corporate entities?
	
Document Preview: Pass Through Agencies and GASB Investment Reporting Submit your responses to the following questions in a 1-2 page summary MSWord document. Label each question clearly. For computations done in an Excel spreadsheet, please copy and paste your work into your MSWord document. For written answers, please make sure your responses are well written, use APA formatting and use at least one citation from a credible source. What is a “pass-through” agency-fund and under what conditions is it appropriate to use such a fund?GASB standards require that investments be reported at fair value. Explain the GASB reporting requirements related to fair value. How do these requirements differ from reporting requirements for corporate entities?

Robert · Accepted Answer

PASS-THROUGH AGENCY FUND AND FAIR VALUATION 
“Pass-through” agency fund is one of the most common types of fiduciary funds; 
fiduciary funds can either be expandable or nonexpendable. These funds are most commonly 
used for the outside parties instead of government itself such as employees and their survivors, 
individual citizens, other governments etc. As per the GASB statement no. 34 these funds always 
follow full accrual basis for the purpose of accounting, as these funds are not spent on the 
government they are not included in the government-wide statements. Fiduciary funds are further 
classified in four categories which are as follows:- 
 Investment trust fund 
 Pension trust fund 
 Agency funds 
 Private-purpose funds 
These funds are required to prepare the following statements as per the guidelines of 
GASB:- 
 Statement of fiduciary Net assets 
 Statement of changes in fiduciary Net assets 
To be very specific agency funds are the simplest forms of funds, nature of these funds is 
custodial in nature i.e. it can be spend for the outside parties and not the government itself. 
Assets of agency funds are always equal to its liabilities with no measure of the result of 
operation. The funds is managed to account for the assets held by a government unit on behalf of 
government.

What is a “pass-through” agency-fund and under what conditions is it appropriate to use such a fund? GASB standards require that investments be reported at fair value. Explain the GASB reporting...

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