294-99) OPEB Reserve FundĪmounts that are constrained by the Town’s intent to be used for specific purposes, but are neither restricted nor committed, should be reported as assigned fund balance. Use of the General Fund Emergency Reserve would be appropriate if the Town declared a state or federal emergency or declaration of a local emergency as defined in the Yountville Municipal Code Section 2.52.020: 2.52.020 Emergency defined:Īs used in this chapter, “emergency” means the actual or threatened existence of conditions of disaster or of extreme peril to the safety of persons and property within the Town caused by such conditions as air pollution, fire, flood, storm, epidemic, riot or earthquake, or other conditions, including conditions resulting from a labor controversy, which conditions are or are likely to be beyond the control of the services, personnel, equipment and facilities of the Town, requiring the combined forces of other political subdivisions to combat. The calculation and review of the 20% minimum will be part of the proposed budget each fiscal year. The Town’s General Fund balance committed for emergency reserves is established at a minimum of 20% of General Fund operating expenditures. Committed Fund Balance Emergency Reserve Fund PEG Fees can only be used to cover capital expenses for public access television, and are prohibited from being used for operating expenses. The Public Educational and Government Access Fund (PEG) has a restricted fund balance for PEG Fees, derived from a 1% charge that the Town’s cable franchise operator collects and remits to the Town. An example of non-spendable fund balance is a reserve for prepaid expense. Non-spendable fund balance is not specifically addressed in this policy due to the nature of the restriction. Unassigned Fund Balance (residual net resources) There are five separate components of fund balance, each of which identifies the extent to which the Town is bound to honor constraints on the specific purposes for which amounts can be spent. Fund balance is essentially the difference between the assets and liabilities reported in each governmental fund. Certain commitments and assignments of fund balance will help ensure accurate reporting of available resources and that there will be adequate financial resources to protect the Town against unforeseen circumstances and events such as revenue shortfalls and unanticipated expenditures. Definitions & Provisions This Fund Balance Policy establishes the procedures for reporting unrestricted fund balance in the General Fund financial statements. 54, Fund Balance Reporting and Governmental Fund Type Definitions. The policy authorizes and directs the Finance Director to prepare financial statements which accurately categorize fund balance per Governmental Accounting Standards Board (GASB) Statement No. This policy also provides definitions of other categories of fund balance for financial reporting and budgeting purposes. This amount and/or commitment may be changed with the adoption of a new fund balance policy resolution approved by the Town Council. The policy is establishing the Town’s formal commitment of a specific amount of the Town’s fund balance to be set aside specifically for emergency contingencies defined as a state or federal emergency or declaration of a local emergency as defined in the Yountville Municipal Code Section 2.52.020. Purpose The Town of Yountville’s fund balance policy defines the five fund balance categories established by GASB and how the Town will report each of the categories. The Town implemented GASB 54 in fiscal year ending June 30, 2011. GASB 54 requires a formal fund balance policy be adopted to fully define any constraints imposed upon the use of resources and how those constraints may be modified or eliminated. The five fund balance categories are clearly defined to make the nature and extent of the constraints placed on a government’s fund balance more transparent. The requirements of this statement are intended to improve financial reporting by providing five fund balance categories that will be more easily understood. Back to Table of Contents Background The Governmental Accounting Standards Board (GASB) issued Statement No.54 Fund Balance Reporting and Governmental Fund Type Definitions in February 2009.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |