FY2012-18 Establishing Fund Balance Required by GASB 1 Introduced by: Borough Manager
2 Requested by: Finance Director
3 Drafted by: Finance Director
4 Introduced on: 01/19/2012
Adopted on: 01/19/2012
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6 KODIAK ISLAND BOROUGH
7 RESOLUTION NO. FY2012 -18
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9 A RESOLUTION OF THE KODIAK ISLAND BOROUGH ASSEMBLY
10 ESTABLISHING FUND BALANCE AND PRIORITIZATION POLICIES
11 AS REQUIRED BY THE GOVERNMENT ACCOUNTING STANDARDS
12 (GASB) STATEMENT NUMBER 54
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14 WHEREAS, the Government Account Standards Board -(GASB) has adopted Statement
15 Number 54, a new standard for governmental fund balance reporting and governmental fund
16 type definitions that is effective in fiscal year 2011; and
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18 WHEREAS, the Kodiak Island Borough wishes to comply with GASB 54 requirements, and
19 to apply such requirements to its financial statements beginning with the fiscal year 2011; and
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21 NOW, THEREFORE BE IT RESOLVED, THAT THE ASSEMBLY OF THE KODIAK ISLAND
22 BOROUGH hereby adopts the following policy to provide guidelines relative to classifying
23 fund balance and setting spending prioritization in accordance with GASB 54:
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25 Fund Balance Classification:
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27 Nonspendable Fund Balance: The amounts of fund balance that cannot be spent because
28 they are either (a) not in spendable form, such as consumable inventories or prepaid items, or
29 (b) required to be maintained intact legally or contractually.
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31 Restricted Fund Balance: The amounts of fund balance constrained for specific purpose by
32 external parties, such as contractors, or imposed by law through constitutional provisions or
33 enabling legislation.
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35 Committed Fund Balance: The amounts of fund balance constrained for specific purposes
36 imposed by formal action of the Borough Assembly. Commitments may only be changed by
37 the assembly taking the same formal action that imposed the constraint originally.
38 Commitments of fund balance must be in place before the end of the fiscal year.
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40 Assigned Fund Balance: The amounts of fund balance constrained for a specific purpose by
41 the Borough Assembly, such as departmental budgets. These amounts are not restricted or
42 committed, and are intended to be used for the purpose of the fund. An assigned fund
43 balance can never be negative.
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Kodiak Island Borough Resolution No. FY2012 -18
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46 Unassigned Fund Balance: The residual classification of fund balance that represents
47 amounts not assigned to other funds, and not restricted, committed, or assigned to specific
48 purposes within the general fund.
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50 Spending Prioritization: The Borough's spending policy is to spend restricted fund balance
51 first, followed by committed, assigned, and unassigned fund balance.
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53 ADOPTED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH
54 THIS NINETEENTH DAY OF JANUARY, 2012
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56 KODIAK ISLAND BOROUGH
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60 ATTEST: Je .me M. Selby, Borough Mayor
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63 1 A
64 Nova M. Javie C, Borough Clerk
Kodiak Island Borough Resolution No. FY2012 -18