Final answer:
Depreciation of general capital assets is not recorded in governmental funds but is accounted for in the government-wide financial statements. The Census Bureau and the annual Census of Governments track investments and government spending, including on physical capital equipment and services.
Step-by-step explanation:
With regard to the depreciation of general capital assets, depreciation is not traditionally recorded in any of the governmental funds such as the General Fund, Special Revenue Funds, Debt Service Funds, Capital Projects Funds, or Permanent Funds. These funds focus on the near-term inflows, outflows, and balances of spendable resources rather than on the need to record depreciation for long-term assets. Instead, depreciation is accounted for in the government-wide financial statements, specifically within the Statement of Net Position and the Statement of Activities, which are prepared on the accrual basis of accounting. Governmental activities at this level report capital assets, including infrastructure and equipment, and record depreciation over the useful life of these assets.
For investment tracking, the Census Bureau conducts regular surveys on construction and capital equipment expenditure. The information about state and local governments is primarily collected through the annual Census of Governments, which helps in understanding the financial position and spending of governmental entities. Moreover, a substantial portion of spending by governments on services, which includes payroll expenses, is monitored via records from state governments and the Social Security Administration.