This assignment covers chapter 8

This assignment covers chapter 8 and is due by 10:00 p.m on Monday, 4/4. To answer these questions, use the 2014 CAFR for the City of Los Angeles found atwww.lacity.org and the 2014 annual report for the Los Angeles City Employees’ Retirement System (LACERS). The web addressfor the pension fund (LACERS)can be copied from page 155 of the CAFR for the city. This assignment includes 10 questions. plus one extra credit question.
 
Instructions
Answer questions 1-7 and the extra credit using the CAFR for the City of Los Angeles. Answer questions 8-10 using the report for the LACERS pension fund.
 
 
 
QUESTION 1
1. The city has which of the following fund types (check all that apply)?
 
 
Investment Trust Fund
 
 
Pension Trust
 
 
Tax Agency
 
 
Agency funds that are not a tax agency.
1 points
QUESTION 2
1. Read the plan descriptions of the 3 pension plans operated by the City and match the pension plan with where the pension expense for those employees would be recorded.
 
Pensions
 
LACERS
 
DWP plan
 
A.
Governmental activities primarily
B.
Both governmental activities and business-type activities.
C.
Business activies
 
1 points
QUESTION 3
1. Which description below best describes the Pension and Other Postemployment Funds for the city of Los Angeles?
 
 
The assets equal the liabilities in this type of fund.
 
 
The Pension Funds have significantly less assets than they do liabilities, which is what I would expect.
 
 
The Pension Funds have significantly less assets than they do liabilities, which is NOT what I would expect.
 
 
The Pension Funds have significantly more assets than they do liabilities, which is what I would expect.
 
 
The Pension Funds have significantly more assets than they do liabilities, which is NOT what I would expect.
1 points
QUESTION 4
1. The value of investments held by the Pension Funds:
 
 
Remained the same value
 
 
Increased in value.
 
 
Changes in value cannot be determined by the financial statements.
 
 
Decreased in value.
1 points
QUESTION 5
1. Who contributed more to the pension plans in the current year?
 
 
the city.
 
 
the employees.
 
 
Cannot be determined from the CAFR.
 
 
the city and employees contributed equally.
1 points
QUESTION 6
1. The enterprise funds of the city have:
 
 
a pension liability that indicates the city pension plans are over-funded.
 
 
a pension liability that indicates the city pension plans are under funded.
 
 
no pension liability reported in the enterprise funds.
 
 
a pension liability that indicates the total amount owed to enterprise fund employees for pensions.
1 points
QUESTION 7
1. In addition to accumulating resources to pay pensions, the city is also accumulating resources to pay for health benefits upon retirement.
True
False
1 points
QUESTION 8
1. During the last3 years, the LACERS pension plan has become:
 
 
more overfunded
 
 
less underfunded
 
 
less overfunded
 
 
more underfunded
1 points
QUESTION 9
1. Which of the following had the greatest impact on the LACERS net pension liability?
 
 
Service cost
 
 
Interest cost
 
 
Benefit payments
 
 
Total contributions.
 
 
None of these had an impact on the net pension liability.
1 points
QUESTION 10
1. What is the rate of return earned by LACER plan assets in the most recent year?
 
 
247.3%
 
 
18.2%
 
 
72.6%
 
 
15.7%
1 points
QUESTION 11
1. Assume the city is considering transferring some of its pension fund assets to a new high interest investment pool sponsored by the State of California. How would this transaction be accounted for in the city of Los Angeles’ financial statements.
 
 
As an investment in the pension fund.
 
 
As an addition in a newly created Investment Trust Fund.
 
 
Both A and B
 
 
This transaction would not be reflected in any of the funds reported in the CAFR.