Number
110992
Version
ORIGINAL
Reference
Sponsor
THE CHAIR
Title
Resolution approving a financial reporting policy related to the City’s financial reserves composition in compliance with the Governmental Accounting Standards Board Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions.
Analysis
This resolution approves the City’s fund balance reporting policy related to the classification and utilization of fund balance. Fund Balance Reporting and Governmental Fund Type Definitions (GASB 54) abandons the reserved, unreserved, and designated classifications of fund balance and replaced them with five classifications: nonspendable, restricted, committed, assigned, and unassigned. The five classifications serve to inform readers of the financial statements of the extent to which the City is bound to honor constraints on the specific purposes for which resources in a fund can be expended.
Body
Whereas, Governmental Accounting Standards Board Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions (GASB 54) requires that fund balance classifications indicate the level of constraints placed upon how resources can be spent and identify the sources of those constraints. An individual governmental fund may include nonspendable resources and amounts that are restricted, committed, or assigned, or any combination of those classifications. The general fund may also include an unassigned amount; and
Whereas, Fund balance reported as “nonspendable” represents fund balance that is not in a spendable form such as prepaid items, inventory, or legally or contractually required to be maintained intact such as an endowment; and
Whereas, Fund balance reported as “restricted” consists of amounts that can be spent only on the specific purposes stipulated by law or by the external providers of those resources; and
Whereas, Fund balance reported as “committed” are self-imposed limitations set in place prior to the...
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