Capital projects funds do not report long-term obligations in the fund.

Question

Quizplus · Accepted Answer

Capital projects funds are governmental accounting funds used to account for financial resources that are designated for the acquisition or construction of major capital assets, except those financed by proprietary funds or for assets that will be held in trust. They do not report long-term obligations within the fund itself because such obligations are typically accounted for within the government-wide financial statements, specifically within the governmental activities column. Long-term debt related to capital projects is recorded in the government-wide statements and in the debt service fund, not in the capital projects fund.

Capital Projects Funds Do Not Report Long-Term Obligations in the Fund