Fiduciary Financial Statements. Ray County administers a tax agency fund, an investment trust fund, and a private purpose trust fund. The tax agency fund acts as an agent for the county, a city within the county, and the school district within the county. Participants in the investment trust fund are the Ray County General Fund, the city, and the school district. The private purpose trust is maintained for the benefit of a private organization located within the county. Ray County has prepared the following statement of fiduciary net assets.

RAY COUNTY

Statement of Fiduciary Net Assets

Fiduciary Funds

June 30, 2011

(in thousands)

 

Trust Funds

Agency Funds

Total

Assets

 

 

 

Cash and cash equivalents

$ 104,747

$ 788

$ 105,535

Receivables

12,166

87,858

100,024

Investments:

 

 

 

Short term investments

241,645

 

241,645

Bonds, notes, and stock

992,226

 

992,226 1,439,430

Total assets

1,350,784

88,646

Liabilities

 

 

 

Accounts payable

61,447

 

61,447

Net Assets

 

 

 

Held in trust for:

 

 

 

Organizations

193,400

 

193,400

County

219,187

10,638

229,825

City of Leetown

383,578

23,048

406,626

Leetown School District

493,172

54,960

548,132

Total net assets

$1,289,337

$88,646

$1,377,983

Required

The statement as presented is not in accordance with GASB standards. Using Illustration A1–10 as an example, identify the errors (problems) in the statement and explain how the errors should be corrected.