What is the minimum level of detail required for expenditures presented in the governmental fund statement?

The minimum level of detail required for expenditures presented in the governmental fund statement is a combination of function and character. This requirement is rooted in the need for transparency and accountability in governmental financial reporting.

The "function" refers to the broad category of services or activities for which the expenditures are being incurred, such as education, public safety, or transportation. This categorization allows users of the financial statements to see how funds are allocated across different governmental functions, providing insight into the government's priorities and resource distribution.

On the other hand, "character" relates to the timing or nature of the expenditures, such as whether they are current operational expenditures, capital outlays, or debt service. This distinction is significant because it provides stakeholders with an understanding of how funds are being utilized in the short term versus long-term investments.

By requiring both function and character, governmental fund statements ensure a comprehensive view of how expenditures are organized and reported, facilitating better analysis and decision-making by users of these financial statements. This level of detail helps users assess the efficiency and effectiveness of government spending, aligning with the principles of public accountability in financial reporting.