Question: A state finance director is concerned that the draft financial statements prepared for the states Capital Projects Funds present large (millions of dollars) excesses of

A state finance director is concerned that the draft financial statements prepared for the state’s Capital Projects Funds present large (millions of dollars) excesses of expenditures over revenues even though all of the funds are well within their appropriations and none are expected to have deficit balances when the projects are completed.
(a) Why are such excesses reported?
(b) What do you suggest?

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