Loading...
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.