All of the following are examples of Capital Expenditures ex

All of the following are examples of Capital Expenditures except which?

Purchase of a new patrol car for the police department.

Retro-Pay to union employees following an extended period of time between an expired contract and the ratification of a new contract.

Expansion of a water treatment plant.

2.The GFOA lists which of the following as a \"Best Practice\" when compiling a Capital Plan? (pick all that apply)

State and Local governments should develop a multi-year capital plans to ensure effective management of capital assets.

A good capital plan utilizes cash reserves prior to current revenues.

Recommend that all governments regularly engage in long-term financial planning.

Governments should establish and incorporate policies and processes for capital project monitoring and reporting.

A good capital plan links to the Master or Comprehensive Plan.

A good capital plan notes what effect (if any) the capital project will have on the operating budget

d A 3-mile sewer main extension necessary for new residential development

Solution

1) All of the following are examples of Capital Expenditures except which?

Answer - Option (B) - Retro-Pay to union employees following an extended period of time between an expired contract and the ratification of a new contract.

2) The GFOA lists which of the following as a \"Best Practice\" when compiling a Capital Plan?

Answer: A, C, D, E, F

Option (A) - State and Local governments should develop a multi-year capital plans to ensure effective management of capital assets.

Option (C) - Recommend that all governments regularly engage in long-term financial planning.

Option (D) - Governments should establish and incorporate policies and processes for capital project monitoring and reporting.

Option (E) - A good capital plan links to the Master or Comprehensive Plan.

Option (F) - A good capital plan notes what effect (if any) the capital project will have on the operating budget.