5.1. SR 11-08-2010 - Laserfiche WebLink

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• Assigned fund balance -amounts intended to be used by the government for specific purposes; intent can be expressed by the governing body or by an official or body to which to governing body delegates the authority. This indicates that resources in other governmental funds are, at a minimum, intended to be used for the purpose of that fund. • Unassigned fund balance -amounts that are available for any purpose. Positive unassigned amounts will be reported only in the general fund. If another governmental fund has a fund balance deficit, then it will be reported as a negative amount in the unassigned classification in that fund. NEW FUND BALANCE CLASSIFICATIONS Class if cations Essentially what is now RESERVID Essentially what is now UNRESERVED - DESIGNATID - tJNDESIG3VATID NONSPENDABLE RESTRICTID COMMITTID ASSIGNID UNA SSIGNID Statement 54 also clarifies certain terms used in the definitions of governmental fund types that have led to confusion. It makes clear that, for financial reporting purposes, a special revenue fund may only be created to report a revenue source (or sources) that are restricted or committed to a specified purpose, and that the revenue source should constitute a substantial portion of the resources reported in the fund. The basic definition of the debt service fund type remains essentially unchanged. However, the definition of the capital project fund type has been broadened to encompass capital outlays in general, not just the acquisition or construction of major capital facilities. Governments are required to implement Statement 54 for fiscal years first ending June 30, 2011, which would be December 31, 2011 for the City of Elk River, and early implementation is encouraged. The Finance Department has decided to early implement Statement 54 for the fiscal year ending December 31, 2010. In preparation for this, all the funds and fiznd classifications have been reviewed and reclassifications will be made to comply with the new fund type definitions (see the following chart for special revenue fund reclassifications). Also, Council will need to approve an updated general fund balance policy and the commitment of specific revenue sources in the special revenue funds.