Question

According to GASB Statement No. 34, a Capital Projects Fund statement of revenues, expenditures, and changes in fund balance—budget and actual is:

A. Required for each Capital Projects Fund.

B. Required to be presented as a basic financial statement for each major Capital Projects Fund with a legally adopted annual budget.

C. Required to be presented as a basic financial statement or required supplementary information for each major Capital Projects Fund with a legally adopted annual budget.

D. Not required, but may be presented as other supplementary information.

Answer 1

Solution: Required to be presented as a basic financial statement or required supplementary information for each major Capital Projects Fund with a legally adopted annual budget.

Explanation: GASBS 34 requires that a budget when compared to actual comparison schedule should be provided for the General Fund and for each main special revenue fund for which a budget is legally adopted. It further recommends that these schedules be provided as required supplementary information (RSI) that must be immediately placed following the notes to the financial statements