If the money is not properly spent, it must be returned. for a fund to be defined as major. Near the end of 2013, income of $600,000 is earned. The nonmajor funds are reported in aggregate in a separate column. Both criteria must be met in the same element (assets, liabilities, etc.) Reserved fund balance in the other governmental funds, therefore, communicates that an even more specific limitation has been placed on the resources—for example, resources in a broad capital projects fund may be reserved for a particular type of project (streets) or a specific project (city hall renovation). Construction will not begin until 2015. All income earned from these investments must be used to construct a small library in one of the local neighborhoods. During the due process leading to GASB Statement No.54,some suggested that the use of capital projects funds needed to be “tightened up”to exclude When the city enters into contract to acquire equipment, what journal entry should it make? Use of a capital projects fund is also generally necessary when construction of capital assets is financed with restricted resources, such as intergovernmental grants. However, major funds, as defined in the standard, are reported in separate columns, with nonmajor funds of that category reported in another column, labeled “other.” Reporting fund types (such as special revenue and capital projects) is no longer required for governmental funds in … Capital outlays that are financed by general obligation debt should always be reported in capital projects funds. However, GASB Statement 34 permits a government to designate a particular fund that is of interest to users as a major fund and to individually present its information in the basic financial statements, even if it does not meet the criteria.
struction of major facilities” (emphasis added), in practice, governments com-monly have used capital projects funds for the acquisition of capital assets other than facilities (e.g.,fire trucks). A. Deferred revenue of $600,000 must be reported in a Capital Projects Fund. 4.1.1.100 There are three required fund financial statements for proprietary funds: Statement of Net Position,
Proprietary Funds Financial Statements. Capital projects fund use a Construction Work in Progress account to record costs until the project is completed A city accounts for its capital acquisitions using encumbrances. The local government may choose to report any other funds as a major fund if they believe they are important to users.