Title
Approving commitment and assignment of fund balances and flow of resources in determining the composition of ending fund balance.
Body
WHEREAS, the Governmental Accounting Standards Board (GASB) has issued Statement No. 54, which changes the classifications used for fund balance reporting on balance sheets of Governmental Funds (Exhibit 1), and
WHEREAS, the Office of Financial Services has reviewed the classifications, and
WHEREAS, the GASB Statement 54 definition of special revenue funds states that special revenue funds are used to account for and report the proceeds of specific revenue sources that are restricted or committed to expenditures for specified purposes other than debt service or capital projects, and
WHEREAS, the GASB Statement 54 definition of the proceeds of specific revenue sources establishes that one or more specific restricted or committed revenues should be the foundation for a special revenue fund and expected to continue to comprise a substantial portion of the inflows reported in the fund, and
WHEREAS, the GASB Statement 54 definition of restricted fund balance describes that fund balance should be reported "as restricted" when constraints placed on the use of resources are either: (a) externally imposed by credits, grantors, contributors or laws or regulations of other government; (b) or imposed by law through conditional provisions or enabling legislation, and
WHEREAS, the GASB Statement 54 definition of committed fund balance describes that portion of fund balance that represents resources whose use is constrained by limitations that the government imposes upon itself at its highest level of decision making, and
WHEREAS, the Office of Financial Services has concluded and recommended that any commitment of funds' resources will initially only apply to special revenue funds and that each special revenue fund's revenues are neither restricted or the total amount of the restricted revenues do not qualify to be a "substa...
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