6631 Fiscal Management – Fiscal Accounting and Reporting – Fund Balance Management

Fund Balance Management

Fund balance measures the net financial resources available to finance expenditures of future periods. The District’s Unassigned General Fund Balance will be maintained to provide the District with sufficient working capital and a margin of safety to address local and regional emergencies without borrowing. The unassigned General Fund Balance may only be appropriated by resolution of the Board of Education.

Fund balance of the District may be committed for a specific source by formal action of the Board of Education. Amendments or modifications to the committed fund balance must also be approved by formal action of the Board of Education. Committed fund balance does not lapse at year-end. The formal action required to commit fund balance shall be by Board resolution or majority vote.

The Board of Education delegates authority to assign fund balance for a specific purpose to the Business Official of the District.

For purposes of fund balance classification, expenditures are to be spent from restricted fund balance first and then unrestricted. Expenditures incurred in the unrestricted fund balances shall be reduced first from the committed fund balance, then from the assigned fund balance, and lastly, the unassigned fund balance.

References: Governmental Accounting Standards Board, No. 54

Presentation: 11/16/11
First Vote: 12/7/11
Second Vote: 12/21/11

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