Williamsville Central School District

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FISCAL Accounting & Reporting

Adoption Date: 1/11/2011, Revised: 5/24/2011
5000 - Non-Instructional/Business Operations

5515 RESERVE FUNDS

Reserve funds (essentially a legally authorized savings account designated for a specific purpose) are an important component in the District's financial planning for future projects, acquisitions and other lawful purposes. To this end, the District may establish and maintain reserve funds in accordance with New York State Laws, Commissioner's Regulations.  The District will also consider rules and/or opinions issued by the Office of the New York State Comptroller, when they are not in conflict with law.

Any and all District reserve funds shall be properly established and maintained to promote the goals of creating an open, transparent and accountable use of public funds. The District may engage independent experts and professionals, including but not limited to, auditors, accountants and other financial and legal counsel, as necessary, to monitor all reserve fund activity and prepare any and all reports that the Board may require.

Government Fund Type Assignment (GASB 54)

The District shall comply with the reporting requirements of Article 3 of the General Municipal Law of the State of New York and the Governmental Accounting Standards Board (GASB) issued Statement Number 54, Fund Balance Reporting and Governmental Fund Type Definitions.  The Board authorizes the Superintendent for Finance and Management Services to complete the following actions as necessary to comply with GASB 54 requirements:

  1. If the District must use funds for emergency expenditures the Board shall authorize the Assistant Superintendent for Finance and Management Services to expend funds first  from funds classified under GASB 54 as unassigned funds as defined by this statement.  The use of restricted funds as classified by GASB 54 will occur after the exhaustion of unassigned funds unless the expense meets the legal purpose of a particular restricted reserve fund and the use of those monies is recommended by the Assistant Superintendent for Finance and Management Services and is approved by a majority vote of the Board of Education.
  2. The Board authorizes the Assistant Superintendent for Finance and Management Services to make a determination of the assigned amounts of fund balance.  Assigned funds represent amounts intended to be used for a specific purpose.  For example the amount appropriated to reduce the tax levy as determined through the budget process and finalized when the tax rates are established would be considered an assigned fund balance.
  3. Committed fund balances are amounts as approved by the Board of Education that will be place in legal reserves, and thereby restricted, but as of the end of the fiscal year the dollar amount is unknown.  As such the Assistant Superintendent of Finance and Management Services is authorized to establish a funding plan with specific dollar amounts to be determined subsequent to the District’s fiscal year end.  The amounts must be approved by a majority vote of the Board of Education at a regular meeting or special meeting called for this purpose prior to the release of the audited financial statements for that respective fiscal year.
The Board of Education will periodically review all reserve funds. The District will also prepare and submit an annual report of all reserve funds to the Board of Education. The annual report shall include the following information for each reserve fund:

  1. The type and description of the reserve funds;
  2. The interest earned by the reserve funds;
  3.  Capital gains or losses resulting from sale of investments of the reserve funds if applicable;
  4.  The sum total increase and sum total decrease in the reserve funds as of the fiscal year end;
  5.  The ending balance in the reserve funds at fiscal year end;
  6.  A summary statement that provides projected use and need of the reserve funds.
 The Board shall utilize the information in the annual report to discuss reserve fund balances and  to adequately maintain necessary reserve funds for the District’s long-term financial planning.  The Board will be mindful of its role and responsibility as a fiduciary of public funds when acting on reserve fund issues.

The Superintendent shall develop any necessary and/or appropriate regulations to implement the terms of the Board's policy.

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