1981-29 Accounting For Year End Encumbrances For Kodiak Island Borough School District.'1 ''1 ) .) I
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KODIAK ISLAND BOROUGH
RESOLUTION NO. 81 -29 -R
A RESOLUTION OF THE KODIAK ISLAND BOROUGH ASSEMBLY ACCOUNTING FOR
YEAR END ENCUMBRANCES FOR KODIAK ISLAND BOROUGH SCHOOL DISTRICT.
WHEREAS, the Kodiak Island Borough is required by Alaska Statute,
Title 29, Section 33.050, to establish, maintain and operate a system of public
schools on an areawide basis under the provisions of A.S. 14.14.060; and
WHEREAS, an annual appropriation is made by the Borough to the School
District's General Fund with total resources in a fiscal year equal in amount
to the expenditures and encumbrances incurred; and
WHEREAS, it is the recommendation of Arthur Young g Company, Auditors,',
that authority to complete transactions outstanding at year end be provided;
and
WHEREAS, the Governmental Accounting, Auditing, and Financial
Reporting Manual (Statement #1) defines encumbrances outstanding at year end
as the estimated amount of expenditures ultimately to result if unperformed
contracts in process at year end are completed and that encumbrances outstanding
at year end do not constitute expenditures or liabilities; and where appro-
priations lapse at year end, even if encumbered, the governmental unit may
intend either to honor the contracts in progress at year end or to cancel them;.
that if the governmental unit intends to honor them, (a) encumbrances
outstanding at year end should be disclosed in the notes to the financial
statement or by reservation of fund balance, and (b) the subsequent year's
appropriation should provide authority to complete these transactions; and
WHEREAS, it is the intention of the Kodiak Island Borough to honor the
. contracts in progress at year end of the Kodiak Island Borough School District;
and
WHEREAS, the annual appropriation to the Kodiak Island Borough School
District lapses at year end.
THEREFORE BE IT RESOLVED that the annual appropriation of the Kodiak
Island Borough School District include the amount of the outstanding obligations
at year end as a reservation of fund balance, and that the subsequent annual
appropriation include a supplemental appropriation in the amount of the
outstanding obligations at year end of the previous fiscal year.
PASSED AND APPROVED this � lE day of c 72 %act, 1981.
KODIAK ISLAND BOROUGH /
ATTEST:
By ' / `L) -
lioroug ,
l ark
',I Resolution 81 -29 -R
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By '
Borough :Mayo