The ACFR should contain a statement of revenues, expenses, and changes in net position for which funds?

• A. Governmental funds only.
• B. Fiduciary funds only.
• C. All funds.
• D. Proprietary but not governmental funds.

Answer: (D)

In government reporting, fund statements align with the nature of each fund type. The statement of revenues, expenses, and changes in net position is the income-oriented format used for proprietary funds, which operate on an accrual basis similar to private-sector accounting. It shows operating and nonoperating revenues and expenses and how those affect net position.

Governmental funds use a different format focused on current financial resources, presenting a statement of revenues, expenditures, and changes in fund balance rather than a net position change. Fiduciary funds report on changes in fiduciary net position with their own specific statement type, not a revenues/expenses change-in-net-position format.

Therefore, the statement of revenues, expenses, and changes in net position is appropriate for proprietary funds but not for governmental funds (and not for fiduciary funds), making proprietary funds the correct focus for this statement in the ACFR.