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PORT EDWARDS PUBLIC SCHOOLS

Board of Education Policy

FUND BALANCE

The Board of Education places the responsibility of administering the budget, once adopted, with the Superintendent. The Superintendent shall monitor the Fund 10 fund balance and shall report the balance to the Board at the end of each budget year. It is a goal of the Board that the general fund balance be maintained at a level sufficient to avoid short-term borrowing for cash flow purposes. The fund balance shall not fall below 10% of the operating budget in the unassigned fund.

If, during the fiscal year, it appears to the Superintendent that the fund balance will be less than estimated, the Superintendent will bring forward for Board consideration, recommendations to protect the fund balance and/or consideration of short-term borrowing. Such recommendations shall be in accordance with requirements of the law.

Annually, fund balances will be reported in the categories established by the Governmental Accounting Standards Board (GASB) Statement 54 as follows:

· Nonspendable Fund Balance

· Restricted Fund Balance

· Committed Fund Balance

· Assigned Fund Balance

· Unassigned Fund Balance

The Board will impose constraints on any funds placed in the committed and assigned classifications.

When an expenditure is incurred for purposes for which both restricted and unrestricted (committed, assigned or unassigned) amounts are available, it shall be the policy of the District to consider restricted amounts to have been reduced first. When an expenditure is incurred for purposes for which amounts in any of the unrestricted fund balance classifications could be used, it shall be the policy of the District that committed amounts would be reduced first, followed by assigned amounts and then unassigned amounts.

Adopted: 01/09/12

Reviewed:

Revised: