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
Download Presentation The PPT/PDF document "GASB Statement No. 54 and Iowa School..." is the property of its rightful owner. Permission is granted to download and print the materials on this web site for personal, non-commercial use only, and to display it on your personal computer provided you do not modify the materials and that you retain all copyright notices contained in the materials. By downloading content from our website, you accept the terms of this agreement.
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