As dis-cussed in the textbook, there are a variety of custodial and trust funds that can be reported by state and local governments. To provide an indication of the various purposes for which custodial and trust funds are created, examine the Comprehensive Annual Financial Report for the City of Boston. 

Required

Use the City of Boston’s most recent CAFR report (www.cityofboston.gov/ auditing/) to answer the following questions.

a. Has the City of Boston adopted the GASB Codification language for custodial funds, or is it using an older term, agency funds?

b. What custodial/trust columns are provided on Boston’s statement of fiduciary net position?

c. What custodial/agency funds does Boston use? Based on the limited information provided, do all funds appear to meet the definition for custodial funds? Explain.

d. What trust funds does Boston use? Based on the limited information, do the funds appear to meet the definitions for trust funds? Explain.