University of Maryland Fiduciary Fund and Preparation of Journal Entries Worksheet

Description

Part A
Fund TypeType of Fiduciary Fund a.Tri-Centennial Fund. Accounts for money raised or contributed by several local area governments and other organizations. The purpose is to ensure availability of resources to celebrate the United States Tri-Centennial in 2076.b.Perpetual Care Fund. Accounts for endowed gifts and investment earnings dedicated to perpetual care of the city’s cemeteries.c.Poudre River Public Library District Fund. Accounts for cash and investments held by the city on behalf of Poudre River Public Library District.d.School Impact Fee Fund. The city collects school impact fees as part of the cost of building permits issued. Money must be remitted periodically to the local school district, a legally separate government that is not a component unit of the city.e.Cultural Services and Facilities Fund. Accounts for revenues received from the Lincoln Center performing arts facility, the city museum, and General Fund subsidies used to promote cultural activities for city residents.f.Payroll Fund. The city has established a fund in which all payroll deductions are reported.g.Telephone Commissions Fund. The city collects commissions on pay telephones used by jail inmates. The funds are used to provide inmates such benefits as library resources and fitness equipment.h.Block Grant Fund. The state receives federal funds for the homeless which it passes through to local not-for-profit organizations. The only responsibility the state has is to contribute an additional amount of funds (match) to the federal grant.i.Health Benefits Fund. The county has agreed to pay a portion of the health insurance premiums for employees when they retire. Contributions for the benefit are paid into this fund.RequiredIndicate which of the following are fiduciary funds. If not a fiduciary fund, identify which type of fund should be used to account for the activities.Part BEvergreen County acts as the disbursing agent for a state grant for the performing arts. The state is responsible for determining which local governments are eligible for the grant money and for following up to ensure that the recipients comply with the requirements of the grant. The county receives the grant funds and disburses them according to the schedule provided by the state. When the county was asked to participate, the county’s attorney was concerned that the county might be held responsible for any disallowed costs. The state agreed to accept responsibility for any disallowed costs, so the county decided to act as the agent for the state for this grant.The schedule for the grant funds for 2017 is shown below. City of Boulder$2,100,000 Aspen Township1,400,000 Snowton900,000 Firtree Village600,000 Total$5,000,000
Prepare the general journal entries necessary to record Evergreen County’s receipt of the money on December 31, 2017 (the end of its fiscal year) and disbursement of the grant funds on January 2, 2018

Explanation & Answer:
3 pages

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