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Fund Balance Policy Review Tuesday, March 11 th 2014

Fund Balance Policy Review Tuesday, March 11 th 2014. Christopher M. Quinn , MACC, CPA, CFE, CGFO, CGMA Finance Director. Purpose of Policy. Establish level of “Working Capital” (cash) in operating & other funds Hedge against sudden decreases in revenue or unexpected expenditures

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Fund Balance Policy Review Tuesday, March 11 th 2014

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  1. Fund Balance Policy Review Tuesday, March 11th 2014 Christopher M. Quinn, MACC, CPA, CFE, CGFO, CGMA Finance Director

  2. Purpose of Policy • Establish level of “Working Capital” (cash) in operating & other funds • Hedge against sudden decreases in revenue or unexpected expenditures • Provide guidance for increasing/decreasing levels of fund balance

  3. Why Update? • Changes in GASB terminology • Net Assets = Net Position • Changes in operations or goals of specific funds • Newly established funds to include in the policy • Existing funds not previously included

  4. Proposed Changes • “Net Position” terminology • Tennis Center & Golf Course operations • Establish policy for existing internal services funds

  5. Tennis & Golf Funds • Auditor suggested we consider policy changes to reflect actual operations. • Option 1 • Eliminate minimum level of fund balance required • Support as needed from General Fund • Option 2 • Incorporate into General Fund as part of our Parks & Recreation budget, • Examples: Pool, Indian Trails Sports Complex

  6. Internal Services Funds • Fleet Fund • Minimum level set at total amount of estimated fleet replacements, divided by estimated average life • Consistent with current practice

  7. Internal Services Funds • Self Insured Health Fund • Minimum level set at 50% of difference between expected cost & maximum cost • Consistent with current practice

  8. Next Step • Approve Resolution updating the Fund Balance Policy

  9. Questions?

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