La. Admin. Code tit. 28 § XLI-507

Current through Register Vol. 50, No. 11, November 20, 2024

Section XLI-507 - Fiduciary Funds

A. Fiduciary Funds are used to account for assets when a governmental unit is functioning either as a trustee or as an agent for another party; they are commonly referred to as trust and agency funds.

1. Trust Funds. These funds are used to account for assets held by a school district in a trustee capacity for others (e.g. members and beneficiaries of pension plans, external investment pools, or private purpose trust arrangements) and therefore cannot be used to support the school district's own programs. Trust funds are generally accounted for on the economic resources measurement focus and the accrual basis of accounting. Trust funds include pension trust funds, investment trust funds, and private purpose trust funds (as described below).

a. Pension Trust Funds. This fund is used to account for resources that are required to be held in trust for members and beneficiaries of defined benefit pension plans, defined contribution plans, other post employment benefit plans, or other benefit plans. Typically, these funds are used to account for local pension and other employee benefit funds that are provided by a school district in lieu of or in addition to any state retirement system.

b. Investment Trust Funds. This fund is used to account for the external portion (i.e., the portion that does not belong to the school district) of the investment pools operated by the school district.

c. Private Purpose Trust Funds. This fund is used to account for other trust arrangements under which the principal and income benefit individuals, private organizations or other governments.

2. Agency Funds. This account is used for funds that are held in a custodial capacity by a school district for individual, private organizations or other governments. Agency funds may include those used to account for student activities or taxes collected for another government.

La. Admin. Code tit. 28, § XLI-507

Promulgated by the Board of Elementary and Secondary Education, LR 26:463 (March 2000), amended LR 36:1507 (July 2010).

AUTHORITY NOTE: Promulgated in accordance with R.S. 17:6(A)(10).