5000 - Non-Instructional/Business Operations
5511 MAINTENANCE OF FUND BALANCE
The Board of Education recognizes that the maintenance of a fund balance is essential to the financial integrity of the District insofar as it helps mitigate current and future risks and assists in ensuring stable tax rates. Consistent with this understanding, the Board adopts the following standards and practices.
Classification of Funds
The District will ensure that funds are classified consistent with Governmental Accounting Standards Board (GASB) Statement Number 54, Fund Balance Reporting and Governmental Fund Type Definitions. Consequently, fund balance amounts will be categorized as non-spendable, restricted, committed, assigned, or unassigned.
Unassigned Fund Balance
Maximum Unassigned Fund Balance
In order to support normal operating costs and provide fiscal stability for the District, the Board of Education will also strive to ensure that the unassigned fund balance does not exceed 4% of the current year's budgeted expenditures. If it is anticipated that such balance will exceed the 4% ceiling, the Board of Education and/or their designee will evaluate current commitments and assignments in order to determine the final distribution of fund balance in any fiscal year. The District will ensure unexpended surplus funds are used to reduce taxpayer liability in conformance with Real Property Tax Law Section 1318.
The District will adhere to the reporting requirements of Article 3 of the General Municipal Law of the State of New York, and the practices set forth in GASB Statement Number 54.
Refer also to Policies
- #5110 -- Budget Planning and Development
- #5512 -- Reserve Funds