The Government Accounting Standards Board (GASB) issued Statement 54 “Fund Balance Reporting and Governmental Fund Type Definitions” in February 2009 and is effective with the 2011 reporting year. These new requirements will mean the Council needs to officially set a fund balance policy and provide the required definitions.
GASB 54 separates fund balances into five categories. Under the old standards, there were three categories; Reserved, Designated and Undesignated. The new categories are more descriptive and focus on how the City plans to use the funds. The resolution provides the definitions for the new classifications and sets a fund balance policy.
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