For what funds do budgetary comparisons need to be presented in connection with the basic financial statements?

• A. General Fund and major capital projects funds
• B. General Fund and major special revenue funds for which a budget is legally adopted
• C. All governmental funds with budgets
• D. Only the General Fund

Answer: (B)

Budgetary comparisons are included to show how actual results stack up against legally adopted budgets, providing accountability for how resources were planned and used. Under this framework, the basic financial statements must present budget-to-actual information for the General Fund and for each major special revenue fund that has a legally adopted annual budget. These funds are the ones that typically have formal, enforceable budgets and are therefore most relevant for comparing planned versus actual spending. Other funds that have budgets but are not major, or funds without legally adopted budgets, are not required to have budgetary comparison schedules in the basic financial statements (they may appear as supplementary information if applicable). So the best match is the General Fund plus the major special revenue funds with legally adopted budgets.