Questions

2) Is it mandatory to use a capital project fund, or does the type of financing and funding determine which fund should be used?

3) let's start to summarize and delve deeper into how capital project funds are used.  There is often confusion between debt service and capital project funds.

· what method of accounting do they use?

· how are bond proceeds recorded in the capital projects fund?

· how are debt proceeds (other borrowing) recorded in the capital projects fund?

· are debt proceeds used to pay the principal and interest on debt recorded in a capital project fund or elsewhere?

4) When does GAAP require the use of a debt service fund? Are there instances when a governmental entity is not required to use a debt service fund?

5) Think about the repayment source for bonds, and whether that helps determine which fund to use.