Assignment Problem: Select a government entity such as a state or local government. Make sure the entity has a Comprehensive Annual Financial Report (CAFR). You should be able to find the CAFR on the website for the government entity.
Question 1: Select one of the more recently established (and larger) capital projects funds (a major fund, if possible). From where did the fund receive most of its resources?
Question 2: How many capital projects funds and debt service funds does your government entity maintain? How can you tell? Are any of these major funds? If so, for what purposes are they maintained? If any debt service funds are maintained, what types of obligations are they maintained?
Question 3: How are the capital projects and debt service funds reported in the government-wide statement of net position?
Question 4: Are the capital projects and debt service fund accounted for on the modified accrual basis or full accrual basis?
Question 5: Why do governments focus on all economic resources and use the full accrual basis in their government-wide financial statements?
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