GASB 54: The New Fund Balance Reporting Requirements. Marcia Taylor, CPA, CGFM Rob Lent, CPA, CFE, CGFM Willy McKain, CPA. Wednesday, July 22, 2009. Need for the Project. Fund balance – widely recognized as one of most used elements in financial statements What is available to be spent?
Marcia Taylor, CPA, CGFM
Rob Lent, CPA, CFE, CGFM
Willy McKain, CPA
Wednesday, July 22, 2009
Fund balance classification
Nonspendable fund balance(inherently nonspendable)
Not in spendable form or requirement to maintain intact
Restricted fund balance(Externally enforceable limitations on use)
Constitutional provisions or enabling legislation
Committed fund balance(Self-imposed limitations)
Formal action by end of period
Highest level of decision making
Assigned fund balance(Limitation resulting from intended use)
Less formal action
Highest level of decision making or designated body or official
Unassigned fund balance(Residual net resources)
Governmental fund type definitions
Which of the following would be reported as restricted fund balance?
Which of the following would never be a positive balance in a special revenue fund?
How would a limitation on spending imposed by a resource contributor be categorized?
The governing body of a city with a 6/30 FYE votes early in July to require that specified resources be spent only for a specified purpose. How should that constraint be reflected in fund balance?
What is the key difference between restricted and committed?
Assigned fund balance is designed to reflect the intent of:
How may a stabilization (“rainy day”) fund be reported?
The basis for establishing a special revenue fund should be:
A capital projects fund may be established to account for the acquisition of which of the following?
The term nonspendable fund balance essentially covers the same items encompassed by the traditional term reserved fund balance.