Agenda Item # 2
Columbus Consolidated Government
Council Meeting
June 28, 2011
Agenda Report # 655
TO: Mayor and Councilors
SUBJECT: Fund Balance Policy
INITIATED BY: Finance Department
Recommendation: Approval is requested of a resolution adopting the Fund
Balance Policy.
Background: GASB Statement No. 54 was issued to establish consistency between
governments in fund balance reporting. The proposed Fund Balance Policy is in
compliance with the requirements of GASB Statement No. 54. GASB Statement No.
54 should be implemented no later than the first fiscal year beginning after
June 30, 2010.
Analysis: Fund Balance classifications were previously reserved and
unreserved. Under GASB 54, the Fund Balance classifications will be
nonspendable, restricted, committed, assigned and unassigned. Implementation
of GASB Statement No. 54 is required for the FY11 Columbus Consolidated
Government?s Comprehensive Annual Financial Report.
Financial Considerations: The Fund Balance Policy states the target is to
maintain an Unrestricted Fund Balance of up to 90 days but shall not be less
than 60 days. In the event the balance drops below the minimum level of 60
days, the City Manager will be required to develop a plan to replenish fund
balance in the next year?s budget.
Legal Considerations: City Council has the authority to set aside amounts as
Committed Fund Balance by
June 30th each year and the Finance Director has the authority to set aside
amounts as Assigned Fund Balance.
Recommendations/Actions: Approve a resolution adopting the Fund Balance Policy.
A RESOLUTION
NO. _____
WHEREAS, the Governmental Accounting Standards Board issued Statement No. 54,
Fund Balance Reporting and Governmental Fund Type Definitions; and,
WHEREAS, GASB Statement No. 54 requires the adoption of a Fund Balance Policy;
and,
WHEREAS, GASB Statement No. 54 must be implemented for financial reporting for
FY2011; and,
WHEREAS, the target is to maintain an Unrestricted Fund Balance of up to 90
days but shall not be less than 60 days; and,
WHEREAS, in the event the balance drops below the minimum level of 60 days, the
City Manager will develop a plan to replenish fund balance in the next year?s
budget.
NOW, THEREFORE, THE COUNCIL OF COLUMBUS, GEORGIA HEREBY RESOLVES:
That the attached Fund Balance Policy is hereby adopted.
Introduced at a regular meeting of the Council of Columbus, Georgia, held on
the ____ day of _________, 2011 and adopted at said meeting by the affirmative
vote of members of said council.
Councilor Allen voting __________.
Councilor Baker voting __________.
Councilor Barnes voting __________.
Councilor Davis voting __________.
Councilor Henderson voting __________.
Councilor Huff voting __________.
Councilor McDaniel voting __________.
Councilor Turner-Pugh voting __________.
Councilor Thomas voting __________.
Councilor Woodson voting __________.
____________________________ _________________________
Tiny Washington, Clerk of Council Teresa Pike Tomlinson, Mayor
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