1. The State of ‘N’ operates a Public Employees Retirement System (PERS) for all employees of the state. The pre-closing trial balance of the PERS as of June 30, 2019, follows: (in OMR)

Account	Debit	Credit
Cash	32,000
Accrued Interest Receivable	66,400
Investments	3,886,400
Equipment and Fixtures	50,400
Accumulated Depreciation—Equipment and Fixtures		6,200
Accounts Payable and Accruals		66,800
Net Assets Held in Trust for Pension Benefits, July 1, 2018		3,154,000
Member Contributions		224,200
Employer Contributions		395,600
Interest and Dividend Income		399,400
Annuity Benefits	107,800
Disability Benefits	28,000
Refunds to Terminated Employees	57,600
Administrative Expenses	17,600
Total	4,246,200	4,246,200

The fair value of investments increased by 117,600.

Required:

a. Prepare a statement of changes in plan net assets for the State of ‘N’ Public Employees Retirement System for the year ended June 30, 2019, in as much detail as possible. (4.5 marks)

b. Explain how the State of ‘N’ (the employer) would report its participation in the state PERS at the fund level and at the government-wide level. (2.5 marks)