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Amber Delacruz,

Capital projects funds are funds that are invested in capital assets that serve communities critical needs with emphasis on infrastructure. An example of this would be building, roads, and bridges. Debt service funds are used to account for the payment of principal and interest in long term liabilities and other debt repayments. Lastly the permanent fund which acts a savings account that would create more money without the tax liability and then would be used for public services. In summary each of these funds are responsible for maintaining and reporting how these funds are utilized within their specific type. The difference between government wide financial statements and fund basis financial statements is that government wide statements look at government's expenses and revenues whereas fund bass statements look at three main categories, governmental funds, proprietary funds and fiduciary funds. The reason that the federal government accounting standards differ from state and local is so that there is accountability between the different entities and so that the decisions made regarding these funds are used for social and economic purposes.

Copley, Paul A. (2020). Essentials of Accounting for Governmental and Not-For-Profit Organizations (14th ed.). MCGraw Hill.