Date: 11/8/2006 6:15:00 AM
Category: Accounting and Auditing
Subject: non-profit trust - HRA account
Posted By: Vicki McCarthy (City of Grapevine )

Message:  Our City has a Health Retirement Account in which the City is required to place a fixed dollar amount each year in the account for the employees that participate in this medical plan. This year we established a non-profit trust account to hold these funds in order to avoid taxation per Chapter 222 of the Texas Insurance Code. Now we are determining if this account will need to be reflected as a non-profit trust in the fiduciary fund. Does any other city have this type of account? If so, how do you report on your financials?