Policy: It is the policy of the District to maintain fund balance at a level appropriate to provided adequate working capital and to honor all prior commitments.

Nonspendable Fund Balance: Amounts that are not in a spendable form such as prepaid expenses, or are required to be maintained intact such as the corpus of an endowment fund.

Restricted Fund Balance: The Building Fund is restricted by statute to certain capital related costs. Amounts constrained to specific purposes by their providers such as creditors, grantors, or imposed by law through constitutional provisions or enabling legislation.

Committed Fund Balance: The District commits a portion of the Accrual Basis Fund Balance to honor the commitments made by the District for encumbrances (purchase orders) for which goods or services have not yet been received. The fund balance committed to encumbrances will be equivalent of the purchase orders rolled forward from the old year to the new year. The Director of Finance will determine the balance of committed fund balance as a part of the accrual conversion for the audit.

Amounts that are constrained by a government itself using its highest level of decision making authority (Board of Education); to be reported as committed, amounts cannot be used for any purpose unless the government takes the same highest level action (vote of Board of Education) to remove or change the constraint. Action to constrain resources should occur before the end of the fiscal year.

Assigned Fund Balance: The District has assigned a portion of fund balance in both the General and Building Fund for funding the cash flow needs during the first half of each fiscal year. The collection of property taxes occurs mainly in December through March. This creates a temporary cash flow deficit during the first part of each fiscal year. The assigned fund balance is used to finance this temporary cash flow deficit. The Treasurer and Director of Finance will determine the amount of assigned fund balance at the end of the fiscal year.

Unassigned Fund Balance – Fund balance represents the funds not restricted in use by statute nor encumbered by purchase orders, legal contracts. Amounts that are available for any purpose; these amounts are reported only in the General Fund.

Adopted by the Board of Education, December 12, 2011