According to GASB, are Annual Budgets required for capital project funds?

According to the Governmental Accounting Standards Board (GASB), annual budgets for capital project funds are not explicitly mandated. This reflects the nature of capital project funds, which are typically used for the long-term funding and management of significant capital projects. While it is considered a best practice for governmental entities to adopt budgets for all funds to provide transparency and accountability, GASB does not require annual budgets specifically for capital project funds.

This lack of requirement allows municipalities flexibility in how they manage and report on capital projects. It recognizes that capital projects often span multiple years and may involve a variety of funding sources, making it more complex to adhere strictly to an annual budgeting cycle. Therefore, municipalities may use different approaches to manage resources for capital projects beyond the confines of an annual budget requirement.