Using a Capital Projects Fund: Checklist

Download the PDF here.

Before using a capital projects fund, the governing body should:

• Create a written long-range capital plan by documenting the following:
  • A list of specific projects
  • For each project, an estimate of:
    • Total cost
    • Amounts to be spent each year until the project is completed
• Place proposals on a meeting agenda to adopt the long-range capital plan and create the capital projects fund.
• Adopt the long-range capital plan and create the capital projects fund as a formal action of the governing body.
  • Include the capital plan in the meeting minutes.
• Transfer money into the capital projects fund as a part of the approved budget or as a separate agenda item.
  • It is not necessary to transfer the money into a separate bank account, although some entities choose to track their capital projects fund balance in this way.
• Ensure that purchases using money accounted for within a capital projects fund (and transfers into and out of the fund) are included in an adopted or amended budget.
• Budget line items for inter-fund transfers should have a description, such as:
  • In the capital projects fund, a revenue item:
    • “Transfers from General Fund”
  • In the general fund, an expenditure item:
    • “Transfers to Capital Projects Fund”
  • “Transfers to” amounts and “transfers from” amounts must match.
• During the year, perform accounting entries to reflect the movement of money between funds.
  • Purchases using capital projects fund money may be made directly from the capital projects fund or capital projects fund money may be transferred to other funds where purchase transactions are recorded.
• Update the long-range capital plan as needs and circumstances change.

Download the PDF here.