Governmental Permanent Funds Account
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A Governmental Permanent Funds Account is a governmental funds account whose balance must be held in perpetuity but whose earnings can be expended.
- Context:
- It can be composed of a Bookkeeping Sub-Sub-Sub-Sub-Account, such as a ...
- Example(s):
- …
- Counter-Example(s):
- See: Funds Account, Financial Endowment, Fund Accounting, GASB Statement.
References
2016
- (Wikipedia, 2016) ⇒ http://wikipedia.org/wiki/permanent_fund Retrieved:2016-2-23.
- In the United States, a permanent fund is one of the five governmental fund types established by GAAP. It is classified as a restricted true endowment fund for governments and non-profit organizations. Put simply, a permanent fund may be used to generate and disburse money to those entitled to receive payments by qualification or agreement, as in the case of Alaska citizens or residents that satisfy the rules for payment from their permanent fund from State oil revenues. It was first introduced through GASB Statement 34. The name of the fund comes from the purpose of the fund: a sum of equity used to permanently generate payments to maintain some financial obligation. Also, a fund can only be classified as a permanent fund if the money is used to report the status of a restricted financial resource. The resource is restricted in the sense that only earnings from the resource are used and not the principal. For example, a fund can be classified as a permanent fund if it is being used to pay for accounting services for a perpetual endowment of a government-run cemetery or financial endowments towards a government-run library.
A common misconception is that permanent funds are required for special-purpose government entities that solely engage in business-type activities. However, this is not the case. According to Statement 34, that special-purpose government entity needs only to report the net balance of the restricted resources.
- In the United States, a permanent fund is one of the five governmental fund types established by GAAP. It is classified as a restricted true endowment fund for governments and non-profit organizations. Put simply, a permanent fund may be used to generate and disburse money to those entitled to receive payments by qualification or agreement, as in the case of Alaska citizens or residents that satisfy the rules for payment from their permanent fund from State oil revenues. It was first introduced through GASB Statement 34. The name of the fund comes from the purpose of the fund: a sum of equity used to permanently generate payments to maintain some financial obligation. Also, a fund can only be classified as a permanent fund if the money is used to report the status of a restricted financial resource. The resource is restricted in the sense that only earnings from the resource are used and not the principal. For example, a fund can be classified as a permanent fund if it is being used to pay for accounting services for a perpetual endowment of a government-run cemetery or financial endowments towards a government-run library.
- (Wikipedia, 2016) ⇒ http://en.wikipedia.org/wiki/fund_accounting#State_and_local_government_funds Retrieved:2016-1-7.
- Permanent funds account for public infrastructure improvements financed by special levies against property holders. Sidewalk and alley repairs often rely on special assessments.
2007
- http://www.gasb.org/cs/ContentServer?pagename=GASB/GASBContent_C/UsersArticlePage&cid=1176156735732
- QUOTE: Permanent funds account for resources that cannot be expended, but must be held in perpetuity. Generally, these resources are invested and a government may spend the earnings, often for a purpose specified by the provider of the resources.