Using the annual report obtained for Exercise 1–1, answer the following
questions:
a. Look at the Statement of Fiduciary Net Assets. Which fund types are
includ ed? Is the Statement prepared in a format in which Assets 
Liabilities  Net Assets? Are net assets shown as being held in trust for
employee benefits and other purposes? Look at the Statement of Changes
in Fiduciary Net Assets. Has the government refrained from including
agency funds in that statement? Are increases and decreases shown as
additions and deductions, rather than revenues and expenses? What are
the main additions? What are the main deductions?
b. Are agency funds included in the Statement of Fiduciary Net Assets? If
so, look to the notes or combining schedules and list the individual agency
funds. Has the government limited itself to agency funds that are held for individuals, organizations, or other governments—not for other government
funds? Do agency funds report only assets and liabilities, not net
assets? Does the government report a Statement or Schedule of Changes
in Assets and Liabilities for agency funds?
c. Does the government have private-purpose funds? If so, list them. Describe
the purposes for which they exist. Can you tell if any of those funds are
endowments, and have resources permanently restricted? How much income
was generated by each of the private-purpose funds, and how much
was released for use? Does the government report escheat property as
private-purpose funds? If so, indicate the nature of the process by which
property is released and for what purposes.
d. Does the government report investment trust funds? If so, describe the
nature of the external investment pool. Which other governments are
included? Has your government refrained from including its own investments
in the investment trust funds?
e. List the pension funds included in the financial statements. From the
notes, list the other pension plans that are available to employees of your
governmental unit. Are those plans agent plans or cost-sharing plans?
Defined contribution or defined benefit? Are required disclosures made
in the notes for all pension plans, whether or not the plans are included
as trust funds? Are the two RSI schedules included in your report (when
defined benefit plans are reported)? Look at the actuarial status of the
plans and comment about the potential impact of pensions on the financial
condition of the government.
f. Look at the note disclosures regarding investments. Are investments
reported at fair value? Do the notes disclose the realized gains or losses
on investments? Do the notes categorize investments based on risk?
When the government creates internal investment pools for management
purposes, does the government report the individual investments
and income from those investments in the funds that provided the
resources?