4.02 4.2
LABOR AND POLICWund Balance Policy—Adopt- 11-16-15
RESOLUTION AUTHORIZING ADOPTION OF FUND BALANCE
POLICY IN ACCORDANCE WITH GASB STATEMENT NO. 54
RESOLUTION NO.: , 2015
INTRODUCED BY:
WHO MOVED ITS ADOPTION
SECONDED BY:
WHEREAS, in order to comply with the requirements of Governmental Accounting
Standards Board Statement No. 54, Fund Balance Reporting and Governmental Fund Definitions
(GASB54), the Town of Queensbury wishes to adopt a Fund Balance Policy, and
WHEREAS, the Town Budget Officer has prepared a draft Fund Balance Policy and it is
in form acceptable to Town Counsel, and
WHEREAS, the Town Board wishes to adopt such Fund Balance Policy In Accordance
With GASB Statement No. 54,
NOW, THEREFORE, BE IT
RESOLVED, that the Queensbury Town Board hereby adopts the Fund Balance Policy In
Accordance With GASB Statement No. 54 substantially in the form presented at this meeting, and
BE IT FURTHER,
RESOLVED, that the Town Board further authorizes and directs the Town Supervisor
and/or the Town Budget Officer to take any action necessary to effectuate the terms of this
Resolution.
Duly adopted this 16th day of November, 2015, by the following vote:
AYES
NOE S
AB SENT :
2
PAMELA\MISCELLANEOUS\Fund Balance Policy—11-16-15
Fund Balance Policy in Accordance with GASB Statement No. 54
A. Purpose.
The following Policy has been adopted by the Town of Queensbury in order to
comply with the requirements of Governmental Accounting Standards Board
Statement No. 54 (GASB 54), Fund Balance Reporting and Governmental Fund
Defmitions. Fund Balance is the difference between the total assets and total
liabilities in each fund and measures the net financial resources available to finance
expenditures of future periods.
B. Definitions.
1. Fund Balance — Consists of the measurement of available resources
and represents the difference between total assets and total liabilities.
2. Non-spendable—Consists of the amounts that cannot be spent because
they are in a non-spendable form.
3. Restricted — Consists of amounts that are subject to externally
enforceable legal purpose restrictions imposed by certain creditors,
grantors, contributors, or laws and regulations of other governments;
or through constitutional provisions or enabling legislation.
4. Committed (Unrestricted) — Consists of amounts constrained to
specific purposes by a government itself using its highest level
decision making authority (Town Board). The Town Board must take
formal action before the end of the fiscal year to add or remove a
constraint.
5. Assigned (Unrestricted) — Consists of amounts that are subject to a
purpose constraint that represents an intended use established by the
government's highest level decision making authority (Town Board).
In funds other than the general fund, assigned fund balance will be the
residual amount of fund balance.
6. Unassigned (Unrestricted) — This consists of all balances remaining
after considering the other four categories for the general fund and
could result in a surplus or a deficit. Use is least constrained in this
category. In funds other than the general fund, the unassigned
classification should only be used to report a deficit balance.
C. Classifications.
1. Non-spendable
• Prepaid items
• Encumbrances
2. Restricted
• Capital Reserves
• Debt Reserves
• Repair Reserves
• Insurance Reserve
• And other reserves allowed by State statutes
3. Committed (Unrestricted)
• The Office of State Comptroller (OSC) believes that in most cases,
local governments will not have committed fund balance to report
primarily due to the fact that reserves are allowed by State statues.
4. Assigned (Unrestricted)
• OSC believes that formal actions by the Governing Boards
(Resolutions, Ordinances, and Local Laws) constitute a constraint
of resources and will result in an assignment of resources.
• Encumbrances will typically be considered an assignment of fund
balance.
5. Unassigned (Unrestricted)
• All other unassigned fund balances.
D) Policy:
1 . Unrestricted Fund Balance
a. The Town Board will strive to meet a minimum level of
unrestricted fund balance in the General Fund of no less than
three months of regular general fund operating expenditures as
well as three months of highway and cemetery Fund operating
expenditures, as these funds are principally financed from
General Fund revenues.
b. The Town Board will strive to meet a minimum level of
unrestricted fund balance in the Wastewater and Water Funds of
no less than three months of regular operating expenditure plus
a reasonable amount of monies that will allow for regular
upkeep and maintenance of annually depreciating infrastructure.
C. In order to allow for long-term stabilization of the Town's
finances, the Town Board, from time to time, may transfer
moneys from fund balances exceeding the minimum amounts
listed in (a) and (b) of this paragraph, to appropriately
established reserves in the respective funds.
2. Reserves
a. The Town believes that reserves are essential to deal with
unforeseen emergencies, long term maintenance and
replacement of facilities and equipment or changes in economic
conditions. Accordingly, the Town Board shall strive to
maintain a level of reserves to guard its residents against service
disruptions.
b. Funding of reserves can come from surplus funds (excess of
revenues over expenditures or one-time revenues) or other
sources as designated by the Town Board.
C. All expenditures from or uses of reserves will require prior
Town Board approval by adoption of Use of Reserve
Resolution.
d. Reserves shall only be used for the purpose in which they are
intended. In the case of reserves for specific projects, if any
amount remains after completion of the project, the remaining
balance may be returned by Town Board action to the fund from
which it originated.