2011 12-20 CCP - Laserfiche WebLink

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MEMORANDUM Date'. December 20, 2011 To: City Council From: Jessie Hart, Treasurer Re: Fund Balance Classifications The purpose of this memorandum is to integrate and further define the City's governmental fund balance classifications in compliance with Governmental Accounting Standards. Board Statement 54: Fund Balance Reporting and Governmental Fund Type Definitions. Governmental Fund Balance classifications are defined as follows: Non -spendable — resources that are "permanently precluded from conversion to cash." Such items include prepaid items; inventory, land held for resale; and long-term receivables that are not otherwise restricted, committed, assigned, or offset by deferred revenue. y Restricted — resources are "constrained to a specific purpose by enabling legislation, external parties, or constitutional provisions." Examples include fund balance related to unspent bond proceeds, tax increments, Debt Service fund balances, and park dedication fees. - Committed — resources that are constrained by Council action/resolution for a specific purpose. Fund balance commitments must be completed before December 31 st to be effective for that fiscal year and remain in effect until the commitment is changed or eliminated by Council action/resolution. Transfers of committed funds for other uses are authorized if approved with the annual budget process or other Council action/resolution. Assigned — resources that are "intended for a specific purpose by .. . Management." This would include any remaining positive fund balance in all funds other than the General Fund. The Council delegates the authority to assign fund balance to the Treasurer. Y Unassigned — remaining resources that are available for any purpose. Unassigned fund balance will occur only in the General Fund or in other funds with there is a negative fund balance that cannot be eliminated by reducing restricted, committed, or assigned fund balance. When both restricted and unrestricted resources are available for use, restricted resources should be used first, then unrestricted resources as they are needed.