Question

What type of legal requirements would you anticipate that capital project funds to have?  Explain.

Answer 1

Solution. Firstly, capital project funds refer to the large amount of capital invested in large scale activity/project for benefiting society at large. Types of legal requirements that anticipate capital project funds are enlisted below:

a)Need to comply with set rules and regulations while acquisition of or constructing such determined capital project. This involves reporting under legal considerations of underlying contributions required or made during such capital project.

b)To work and report in accordance with set reporting standards along with informing on special revenue funds accounts for other detailed reasons/factors. They are recorded and reported under governmental accounting procedures.

c)Complying with period funding method while accounting and working for such project. Huge amount of asset and capital are invested in these projects, which requires regulated reporting each quarter, half year or yearly basis, to track on financial resources usage and cost benefit ratio information thereby.