Accounting Instructions for Pooled Fund Worksheet

This worksheet is submitted to PERAC's Compliance & Investments Unit

The accounting entries correspond to the numbers on the pooled fund worksheet. 

Please note: the form has been updated to reflect the new accounts, as addressed in PERAC Memo #9, 2019

1. To record a purchase, make the following cash book entry:
   Debit: Pooled Fund (use appropriate ledger)
   Credit: Cash
    
2. To record income as a result of investment income, realized or unrealized gains, make the following journal entry:
   Debit: Pooled Fund (use appropriate ledger)
   Credit: Investment Income (ledger 4821)
   Credit: Realized Gain (ledger 4884)
   Credit: Unrealized Gain (ledger 4886)
   
   If there are operating losses, realized or unrealized, make the following journal entry:
   Debit: Investment Income (ledger 4821)
   Debit: Realized Loss (ledger 4885)
   Debit: Unrealized Loss (ledger 4887)
   Credit: Pooled Fund (use appropriate ledger)
    
3. To record investment related fees* paid from the fund, make the following journal entry:
   Debit: Management Fees (ledger 5304)
   Credit: Carried Interest Expense (4701)
   Credit: Equalization Expense (4702)
   Credit: Miscellaneous Investment Expense (4703)
    
4. To record a sale (the amount of cash distributed to the system) make the following cash book entry:
   Debit: Cash
   Credit: Pooled Fund (use appropriate ledger)
    
5. To record a stock distribution (in the amount of the market value assigned by the fund manager to the stock distributed) make the following journal entry:
   Debit: Equities (ledger 1170)
   Credit: Pooled Fund (use appropriate ledger)

*If the management fee is paid from retirement system cash and not from the pooled fund, a cash book entry would be made on the disbursements page debiting management fees (ledger 5304) and crediting cash.