Which item is always included in the operating statement of a governmental fund?

In governmental accounting, the operating statement for a governmental fund focuses on the financial resources available for current operations and how those resources are used. The inclusion of capital outlay in the operating statement is significant because it reflects the expenditures made for acquiring or improving fixed assets that are vital for service delivery, such as buildings, infrastructure, and equipment. These capital outlays are recorded as expenditures, highlighting how much was spent to maintain and enhance the government's operational capacity during that period.

While depreciation and amortization expenses are important financial concepts, they typically pertain to government-wide financial statements rather than individual governmental fund operating statements. Governmental funds use the modified accrual basis of accounting, which does not report depreciation as an expense in the annual operating statement, as it focuses more on the flow of current financial resources rather than the accrual of costs.

In summary, capital outlay is a relevant and necessary component of the operating statement in a governmental fund, providing insight into the government's investments in long-term assets that support its mission and operations over time.