What does a capital projects fund account for?

A capital projects fund is specifically designed to account for major capital expenditures, which include the financial resources needed for the acquisition or construction of capital assets. This fund is utilized by governmental entities to ensure that significant projects, such as the building of infrastructure or large-scale renovations, are adequately funded and tracked over time.

The reason the correct choice highlights "major capital expenditures, excluding enterprise funds" is that capital projects funds generally apply to governmental funds rather than proprietary funds like enterprise funds. Enterprise funds are used for activities that operate in a manner similar to private businesses, such as water or electricity services, which do not rely on the capital projects fund for funding capital assets. This distinction is crucial as it helps in organizing and reporting financial information accurately within different segments of government operations.

In contrast to the correct choice, minor capital expenditures are often accounted for in different funds or through operational budgets rather than a specific capital projects fund. Furthermore, focusing solely on operating costs would miss the broader purpose of a capital projects fund, which aims to plan for significant investments rather than recurring operational expenditures. Similarly, classifying all types of expenditures regardless of their nature does not align with the specific objectives and guidelines for capital projects funds, which emphasize tracking the funding and spending on substantial assets.