Which of the following is a fiduciary fund?

• A. General fund
• B. Investment trust fund
• C. Internal service fund
• D. Enterprise fund

Answer: (B)

This question hinges on understanding which funds are considered fiduciary in GASB. Fiduciary funds hold assets in a trustee or custodial capacity for others and are not assets available to the government’s own programs. Among fiduciary funds, investment trust funds specifically account for the external portion of a government’s investment pools that are held and invested on behalf of other governments or nonprofit organizations.

General fund, internal service fund, and enterprise fund are not fiduciary. The general fund is the government’s main operating fund for general activities. An internal service fund is a proprietary fund used to account for services provided internally within the government. An enterprise fund is a proprietary fund used for a government’s business-type activities.

Therefore, the investment trust fund is the fiduciary fund.