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GASB Statement No. 54 and   	Iowa School Districts GASB Statement No. 54 and   	Iowa School Districts

GASB Statement No. 54 and Iowa School Districts - PowerPoint Presentation

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GASB Statement No. 54 and Iowa School Districts - PPT Presentation

Agenda Provide a brief overview of GASB Statement No 54 Fund Balance Reporting and Governmental Fund Type Definitions Governmental Fund Types Fund Balance Categories Discuss Implementation in Iowa School Districts ID: 429230

restricted fund gasb balance fund restricted balance gasb statement revenue funds capital committed government assets levy resources wide net

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Slide1

GASB Statement No. 54 and Iowa School DistrictsSlide2

AgendaProvide a brief overview of GASB Statement No. 54 “Fund Balance Reporting and Governmental Fund Type Definitions”

Governmental Fund Types

Fund Balance Categories

Discuss Implementation in Iowa School Districts

2Slide3

GASB Statement No. 54

Why?

Two overall changes to financial reporting:

Revised/Clarified definitions of governmental fundsChanged fund balance reporting

Effective for June 30, 2011

No effect to the proprietary funds (enterprise funds or internal service funds) or fiduciary funds

No effect to government-wide statements

3Slide4

GASB Statement No. 54

General Fund: to account for and report all financial resources not accounted for and reported in another fund

Special revenue funds: specific revenue sources that are

restricted or committed to expenditure for specified purposes other than debt service or capital projects

Student Activity Fund

Management Levy Fund

Capital projects funds: financial resources that are restricted, committed, or assigned to expenditure for capital outlays, including the acquisition or construction of capital facilities and other capital assets

Physical Plant and Equipment Levy Fund-previously reported as a special revenue fund is now a Capital Projects Fund, Fund 36.

Capital Projects Fund

4Slide5

GASB Statement No. 54Debt service funds: financial resources that are restricted, committed, or assigned to expenditure for principal and interest

Permanent funds: financial resources that are restricted to the extent that only earnings, and not principal, may be used for the District’s programs

5Slide6

GASB Statement No. 54Nonspendable

Restricted

Committed

AssignedUnassigned

6Slide7

GASB Statement No. 54Nonspendable

: Not in a spendable form

Cannot ever be spent: inventories or prepaid items

Cannot currently be spent: Long-term portion of loans receivable or assets held for sale

If the proceeds must be used for a specific purpose, classify based on the constraint

Other long-term receivables are usually offset by the deferred revenue liability and there is no fund balance as a result

Legally or contractually required to be maintained intact-permanent fund principal

7Slide8

GASB Statement No. 54Restricted-externally imposed

External: Creditors, grantors, contributors or laws or regulations of other governments, such as the State

Difference between restricted fund balance and restricted net assets on the government-wide

Committed

Highest level of decision-making authority (Board)

MUST be committed by the Board

prior to year-end, must be documentedAssigned

May be established by the governing body itself or the governing body may delegate this to an official (Superintendent or Business Manager) or another body within the organization (Finance

C

ommittee)Cannot be negative

8Slide9

GASB Statement No. 54Unassigned

Only allowed a positive unassigned fund balance in the General Fund

Other governmental funds may report deficit balances as unassigned

Remember, cannot report an assignment for an amount to a specific purpose if the assignment results in a deficit unassigned fund balance

Classification

Determine

nonspendable amounts first.

Apply the District’s policy for whether restricted or unrestricted amounts have been spent when an expenditure is incurred and both types of resources are available.

Next, apply the District’s policy for use of committed, assigned or unassigned.

Deficit position: Eliminate any amounts assigned and if residual is still negative, then report a deficit unassigned amount

9Slide10

Stabilization ArrangementsFormally setting aside amounts for use only in certain specific circumstances

Reported as restricted or committed

The formal action taken for setting aside the amounts specifies the circumstances for use and organization must prove non-routine nature

If the formal action is not sufficient, the fund balance is reported as unassigned

10Slide11

ImplementationEstablish District policies

Committed fund balances-need Board approval prior to June

Assigned fund balances-need to determine the body or official authorized to make assignments and the policy that delegated entity is to follow

Flows: In what order will the resources be used?

Start now with the prior year audit report

and determine the fund balance reportingDraft the footnote disclosures based on the policies that have been adopted

11Slide12

Implementation

Student Activity Special Revenue Fund

Reported as restricted net assets on government wide statements

Fund balance is restrictedManagement Levy Special Revenue FundReported as restricted net assets on government wide statements

Source of revenue is the levy annually certified by the District

Fund balance is restricted

PPEL Capital Projects Fund

Reported as restricted net assets on government wide statements

Source of revenue is the levy annually certified by the District

Fund balance is restrictedCapital Projects FundReported as restricted net assets on government wide statements

Statewide sales and service tax

Fund balance is restricted

12Slide13

ImplementationDebt Service Fund

Reported as restricted net assets on government wide statements

Source of revenue is the levy specifically approved by voters

Fund balance is restrictedGeneral FundCategorical

funding-restricted

May have Committed and/or Assigned

13Slide14

14Slide15

15Slide16

General Fund example

FY 2010 Fund Balance=$7,935,158

Any

Nonspendable? Prepaid items Any Restricted? Federal and state programs

Any Committed? None

Any Assigned? Federal and state programs

What is the Unassigned Balance?

16Slide17

Sarah Bohnsack, Partner563.343.9595

Sarah@governmentalservice.com

Mia Frommelt, Partner

913.660.3931

Mia@governmentalservice.com

17