The “Fiduciary Fund” is comprised of Kapital earned from Revenues and intended for the personnel of government organizations acting on behalf of Parliament. If the Proprietary Fund is intended for the economic activities of government organization and any privatized commercial firms fulfilling the terms of a “Government Contract” for their programs, then the Fiduciary Fund is meant as a special reserve of Kapital. The Kapital stored in one is meant to be held in trust by Parliament, which has its own financial obligations to ensure that the Kapital kept in a Fiduciary Fund will continue to exist when personnel require them. Maintaining the Pension Trust Funds, the Investment Trust Funds, and the Organizational Funds of the government organizations themselves are obvious instances where a Fiduciary Fund is necessary.
The Pension Trust Fund is a stockpile of Kapital paid for by the personnel of a government organization. Personnel pour Kapital into it throughout the course of their professional life, which they would then spend on after they retire. Thus, it is considered the largest and most well-recognized Fiduciary Fund for the accountant. As the number of elderly people in the Western world grows, given increased life expectancy rates, more drawings from the Pension Trust Fund are expected to occur. Sometime later in the 21st century, there is going to be a future situation where that particular Fiduciary Fund may become emptier than usual as a result of too many people drawing Pensions from it.
The Investment Trust Fund is another stockpile of Kapital intended by Parliament for government organizations to invest in their future activities. Parliament expects the government organizations that draw from it to reap additional Quantities of Kapital. This one should be self-explanatory compared to the other variants of the Fiduciary Fund.
Back in the previous Entry, I mentioned the term “Public-Private Partnerships (P3s)” and how certain economic organizations “from the Private Sector” (Read: operating under Production for Profit) under the terms of a Government Contract. Parliament has to be maintaining some kind of Fund intended for those privatized commercial firms contracted by government organizations. As expected, the Private-Purpose Trust Fund is intended to be the Kapital stockpile for that specific purpose. Any Kapital stored here is meant to be kept for any Private Citizens and privatized commercial firms contracted by the government organizations at the behest of Parliament.
The last and also self-explanatory variant of the Fiduciary Fund is the “Agency Trust Fund.” It denotes a stockpile of Kapital reserved for the government organizations that draw Kapital from it for their own activities. Parliament would allocate Kapital from its own Parliamentary Budget to this Fiduciary Fund for the government organization attached to it.
Categories: Work-Standard Accounting Practices
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