A county was awarded a $900,000 expenditure-driven grant for a capital project that is expected to take three years to complete. As of the end of Year 1, the county had incurred expenditures of approximately $50,000. The county has applied for reimbursement from the grantor and the grant receivable is considered to be available. The county should recognize Capital Projects Fund revenue at the end of Year 1 in the amount of

Question

Quizplus · Accepted Answer

The county has incurred expenditures of $50,000 in Year 1, which is a legitimate expense for the capital project. As the grant receivable is considered available, the county can recognize revenue equal to the amount of expenses incurred. Therefore, the county should recognize Capital Projects Fund revenue at the end of Year 1 in the amount of $50,000.

A County Was Awarded a $900,000 Expenditure-Driven Grant for a Capital