CPA Far Quiz
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STATE AND LOCAL GOVERNMENTS
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A school district reports a General Fund and a Special Revenue Fund for a federal nutrition program. The district initially recorded the federal grant as revenue when cash of $600,000 was received; at year-end, only $520,000 of allowable program expenditures had been incurred, and $80,000 remains unspent and must be returned if not used for allowable costs. Under GASB standards for nonexchange transactions (including GASB Statement No. 33), how should the district report the $80,000 in the Special Revenue Fund at year-end?
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