P12-7 (Research Problem) Obtain copies of the Trust and Agency Fund financial statements of a state or local government. (Use the same CAFR you utilized for the prior three research problems -P7-7, P8-8, & P9-8/9)

1. Study the Trust and Agency Fund financial statements and compare them with those discussed and illustrated in this chapter, noting the following:

   1. Similarities

   2. Differences

   3. Other matters that come to your attention

2. Study the authoritative literature to determine the following:

   1. What is an investment pool?

   2. What is meant by the internal portion of an investment pool?

   3. What is meant by the external portion of an investment pool?

   4. How are the assets of the investment pool reported in the financial statements of the government that operates the pool?

3. Prepare a brief report on requirements a and b.