No, provisions in Am. Involuntary participation occurs when the treasurer of one local government is mandated by State statute to also serve as treasurer of a second local government, and the treasurer pools the money of both governments for investment purposes Q4. If the local government commingles that entity's money with its own for investment purposes, yes. If it keeps the entity's investments separate from its own and returns the interest from those investments to the entity, it is providing an individual investment account rather than an external investment pool. When the entity participates in either an external investment pool or an individual investment account, its assets will appear as part of an investment trust fund and not as an agency fund in the GPFS of the local government.
School districts invest and allocate interest to auxiliary services money.
Auxiliary services money is reported as a special revenue fund and is considered part of the internal investment pool. A governmental entity that participates in an external investment pool is required to disclose whether the fair value of the position in the pool is the same as the value of the pool shares. Obviously no conclusion about the value of pool shares can be reached when the pool does not issue shares. A statement that each participant is allocated a pro rata share of each investment at fair value along with a pro rata share of the interest that it earns may serve as an alternative disclosure. This means, however, that fair value must be used to allocate investment gains and losses among participants frequently enough to insure that every participant shares equitably in both fair market gains and losses.