Permanent fund
Encyclopedia
In the United States, a permanent fund is one of the five fund
types established by GAAP classified as a government fund. Put simply a permanent fund may be used to generate and disperse 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 being used to pay for accounting services for a perpetual endowment of a government-run cemetery or financial endowment
s 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.
Fund Accounting
Fund accounting is an accounting system emphasizing accountability rather than profitability, used by non-profit organizations and governments...
types established by GAAP classified as a government fund. Put simply a permanent fund may be used to generate and disperse 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 being used to pay for accounting services for a perpetual endowment of a government-run cemetery or financial endowment
Financial endowment
A financial endowment is a transfer of money or property donated to an institution. The total value of an institution's investments is often referred to as the institution's endowment and is typically organized as a public charity, private foundation, or trust....
s 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.
See also
- The Petroleum Fund of Norway
- Permanent University FundPermanent University FundThe Permanent University Fund is one of the methods by which the State of Texas funds public higher education within the state. A portion of the returns from the PUF are annually directed towards the Available University Fund , which distributes the funds according to provisions set forth by the...
- funds universities in TexasTexasTexas is the second largest U.S. state by both area and population, and the largest state by area in the contiguous United States.The name, based on the Caddo word "Tejas" meaning "friends" or "allies", was applied by the Spanish to the Caddo themselves and to the region of their settlement in...
from oil revenue. - The Alaska Permanent FundAlaska Permanent FundThe Alaska Permanent Fund is a constitutionally established permanent fund, managed by a semi-independent corporation, established by Alaska in 1976, primarily by the efforts of then Governor Jay Hammond...
provides annual dividends to residents of the State of AlaskaAlaskaAlaska is the largest state in the United States by area. It is situated in the northwest extremity of the North American continent, with Canada to the east, the Arctic Ocean to the north, and the Pacific Ocean to the west and south, with Russia further west across the Bering Strait... - Public companyPublic companyThis is not the same as a Government-owned corporation.A public company or publicly traded company is a limited liability company that offers its securities for sale to the general public, typically through a stock exchange, or through market makers operating in over the counter markets...
- Crony capitalismCrony capitalismCrony capitalism is a term describing a capitalist economy in which success in business depends on close relationships between business people and government officials...
- Government Accountability Office investigations of the Department of DefenseGovernment Accountability Office investigations of the Department of DefenseGovernment Accountability Office investigations of the Department of Defense are typically audits in which the Government Accountability Office , the United States Congress’ investigative arm, studies how the Department of Defense spends taxpayer dollars...
- Federal Accountability ActFederal Accountability ActThe Federal Accountability Act is a statute introduced as Bill C-2 in the first session of the 39th Canadian Parliament on April 11, 2006, by the President of the Treasury Board, John Baird...
(Canada)
External links
- GAO History Government Accounting Office
- PDF - Capital Asset Accounting System (Permission to quote granted in the document)
- - Above document must now be purchased