Capital projects funds are governmental funds used to account for financial resources segregated for acquisition or construction of major general government capital facilities (those not financed and used by trust and proprietary funds).

Characteristics:

• Modified accrual accounting is applicable

• Encumbrance accounting is used for contracts and purchase commitments

• Formal budgetary accounting is usually not required

• A CPF exists for the life of the project. Fixed assets acquired or constructed are recorded in the general fixed assets account group.

• Required financial statements include

Debt service funds are governmental funds used to account for accumulation of the resources required for payment of general long-term debt principal and interest and for payment of those amounts

Characteristics:

• Modified accrual accounting (Exception: Unmatured interest normally cannot be recognized until due--unless resources have been provided by year end to cover payments due early in the next year)

• Formal budgetary accounting often is required for the DSF when term bonds are issued

• The general long-term liability is recorded in the general long-term debt account group, and not in the DSF

• Required statements

Accrual accounting procedures are applicable

• Revenue is recognized in the period in which it is earned and measurable

• Expenses (not expenditures) are recognized in the period incurred, if they are measurable

Liabilities of proprietary funds are fund liabilities

Lease agreements are accounted for under the provisions of FASB Statement 13.

Initial financing is typically provided from a capital contribution (residual equity transfer) or long-term advance from the governmental unit.

Required financial statements:

• Balance sheet

• Statement of revenues, expenses, and changes in retained earnings (or fund equity)

• Statement of cash flows

AGENCY FUNDS

• Accounted for under modified accrual accounting.

• Agency funds do not have revenues and expenditures. Accordingly, agency fund accounting is asset and liability accounting.

• Required financial statement--Statement of changes in assets and liabilities

• Trust fund resources of an expendable trust fund can be expended to meet the objectives of the trust.

• Modified accrual accounting is applicable and revenue and expenditure (not expense) accounts are used.

• Required financial statements:

A nonexpendable trust fund has a profit or capital maintenance objective. Accordingly, its principal must be maintained intact in order to meet the objectives of the trust.

Income may be expendable or nonexpendable.

Accounted for like proprietary funds types on the accrual accounting basis

• Revenues and expenses are recorded

• Depreciation is recorded on fund fixed assets

• Interest expense is recorded on fund long-term liabilities

COMPREHENSIVE ANNUAL FINANCIAL REPORT

Covers all funds and account groups of the reporting entity

Includes:

• General purpose (combined) financial statements by fund type and account group

• Combining statements by fund type (where a governmental unit has more than one fund of a given fund type) and individual fund and account group statements

• Introductory information, required supplementary information to demonstrate compliance with legal and contractual provisions, schedules, statistical data, and narrative explanations

GENERAL PURPOSE FINANCIAL STATEMENTS

May be issued separately from the comprehensive annual financial report

Include basic financial statements and notes to the financial statements, and other required supplementary information for the primary government and its component units

Basic financial statements

• Combined balance sheet for all fund types and account groups and discretely presented component units

• Combined statement of revenues, expenditures, and changes in fund balance - all governmental fund types and discretely presented component units

• Combined statement of revenues, expenditures, and changes in fund balances budget and actual - general and special revenue fund types (and other governmental fund types for which annual budgets have been legally adopted)

• Combined statement of revenues, expenses, and changes in retained earnings (or equity) - all proprietary fund types and discretely presented component units

• Combined statement of cash flows - all proprietary fund types and discretely presented component units