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What is a capital project fund under GASB?

The Capital Projects fund is a governmental fund that is used for tracking the financial resources used to acquire or construct major capital assets. The capital project fund accounts for and reports financial resources that are legally restricted and contractually required for the acquisition of capital assets.

The primary purpose of this fund is to ensure that expenditures of capital projects are receiving legally required capital resources.

Some examples include public buildings, bridges, roads and highways, park improvements, and sewer systems.


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  • What are the different types of governmental funds?

    There are five main types of government funds, which includes the general fund, the capital projects fund, the permanent fund, the special revenue fund, and the debt service fund. 1) The General Fund: The General Fund is used to account for ordinary operations of a governmental unit and is financed from taxes as well as other general revenues. All funds coming from the general fund are “current” fund and will not contain long-term assets or liabilities. The General Fund will be used for administrative and operational tasks of the governmental entity. 2) Capital Projects Fund: The Capital Projects Fund is a governmental fund that is used for tracking the financial resources used to acquire or construct major capital assets. 3) Permanent Fund: The Permanent Fund is a fund used to report resources that will legally restrict the entity to the extent that income, and not principal, will be used to support the governments programs or the benefit of the general public. 4) Special Revenue Fund: The Special Revenue Fund is a set up to account for revenues from specific taxes to finance certain governmental activities. 5) Debt Service Fund: The Debt Service Fund is set up to account for payment of principal and interest on both short-term and long-term debt for government entities.