Central School District is awarded a $400,000 federal grant to implement and test a new way of teaching middle school math. The award stipulates that the district must provide a 20 percent match.
a. In what fund-type ( e.g., general, special revenue, capital projects, etc.) should the district report the receipt of the $400,000 from the federal government?
b. How should the offsetting fund balance be classified (e.g., restricted, committed, etc.)?
c. The District transfers its required match of $80,000, from the general fund to the fund in which the $400,000 is reported. How should the fund balance offsetting this $80,000 be classified? Explain and justify your responses.