Fund Balance Classification

Policy Interpretation

Nonspendable

 ·       Consumable Inventories

·       Prepaids

·       Property held for resale

·       Noncurrent loans and contracts receivable must be examined. These may be classified as nonspendable, restricted, committed or assigned based on the restrictions placed on the usage of the loan repayments.

Restricted

·       Resources are restricted for use by the:

o   Alaska Constitution

o   Federal government

o   Debt covenants

o   External parties

o   Grantors

·       Contract commitments

·       A restricted fund balance can never be negative.

Committed

 ·     School Board action is required to determine which funds are committed.

·     Commitments may only be changed or lifted by the Board taking the same formal action that imposed the constraint originally.

·     Commitments of fund balance must be in place before the end of the fiscal year. A committed fund balance can never be negative.

Assigned

·       The Superintendent or his designee is required to determine which funds are assigned.

·       Amounts that are not restricted or committed and intended to be used for the purpose of the fund.

·       Assignments can occur anytime before issuance of financial statements.

·       An assigned fund balance can never be negative. Assignments can never cause the overall fund balance to be negative.

Unassigned

·       A positive balance is only reportable in general fund.

·       May be negative (deficit) fund balance for other fund types.