Local governments undertake capital projects to acquire, develop, improve or maintain various facilities, other infrastructure and/or equipment. These projects are generally large in scale, require large sums of money and are long-term. A capital projects fund is used to account for the financial resources supporting capital projects during the life of the project. This guide is intended to provide local officials with an overview of the use of capital projects funds and guidance on the fundamentals of accounting for capital projects. Accounting and reporting for capital projects can be a complex matter. As a result, we have developed several comprehensive examples and corresponding journal entries: Sample Capital Project #1 - Construction of a new office building (City) [pdf]; Sample Capital Project #2 - Purchase of a new highway truck (Town) [pdf]; Sample Capital Project #3 - Purchase of a new highway truck (Village) [pdf].