Help for Exhibit F - Balance Sheet
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Total Assets is the sum of VT021, VT023 and VT048. This figure must agree with Total Liabilities and Fund Balance, VT098.
General Summary for ENTRY 24 through ENTRY 31 (SEE ALSO OSC BULLETIN APRIL 2011)
GASB Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions, is significantly changing the component classifications of fund balance for the governmental funds. The fund balance/net asset codes will need to be revised to incorporate the five new components of fund balance (i.e., nonspendable, restricted, committed, assigned, and unassigned). In addition, many of the previous classifications will no longer apply and should be removed (i.e., reserve for inventories, reserve for prepaid items, reserve for encumbrances, other reserved fund balance, designated fund balance, and unreserved fund balance). Finally, while the net asset codes (i.e., invested in capital assets - net of related debt, restricted net assets, and unrestricted net assets) are not being changed, there will need to be a shift in the numerical coding structure to incorporate all of the aforementioned changes.
Historically, fund balance for governmental funds has used two main categorizations - reserved and unreserved. Furthermore, unreserved fund balance could optionally be further sub-classified as designated or undesignated. All of these classifications focused on fund balance from the perspective of its availability for appropriation. In other words, fund balance classifications represented the appropriable or non-appropriable nature of the fund’s financial equity.
Under GASB Statement No. 54, the classification of fund balance will now be from the perspective of the underlying resources within fund balance. Simply put, these new components of fund balance will identify constraints on how resources can be spent and the sources of those constraints. The new components of fund balance will be nonspendable, restricted, committed, assigned, and unassigned. Each of these components has very specific definitions and there is little, if any, direct link between the ”r;old” components of fund balance and the new ones.
Total Restricted Fund Balance - The restricted fund balance classification should be reported when constraints placed on the use of resources are either (a) externally imposed by creditors, grantors, contributors, or laws or regulations of other governments or (b) imposed by law through constitutional provisions or enabling legislation.
Total Assigned Fund Balance - The assigned fund balance classification reflects amounts that are constrained by the government’s intent to be used for specific purposes, but meet neither the restricted nor committed forms of constraint. Also, the assigned fund balance classification is the residual classification for the special revenue, debt service, capital projects, and/or permanent funds (unless that amount is negative, which would require presentation as unassigned fund balance)
This entry must be NEGATIVE or 0.
Total Unassigned Fund Balance - The unassigned fund balance classification is the residual classification for the general fund only. It is also where negative residual amounts for all other governmental funds would be reported.
The total fund balance recorded here should agree with the value for the Ending Fund Balance, June 30, 2016 on Statement F1-Debt Service Fund Analysis of Fund Balance.
Sum of VT065 and VT095. In addition this value must agree with Total Assets, VT049.