15
Case Study No. 1
•PRT submits an application for a state park facility grant (funds are available for the period October 1, 2000 through September 30, 2005.  PRT’s application and spending plan are approved.
•Grant award - $5,000,000
•At June 30, 2001 - $1,250,000 received
•On July 20, 2001 – $500,000 is received
This is a derived tax revenue.

The city should recognize assets and revenues for each night a guest stays in a hotel room in the City.

The requirement to use tax proceeds for the convention center is a purpose restriction, which requires net assets be reported as restricted until they are expended for construction.