GASB Statement No. 54 and   	Iowa School Districts<br />
Agenda<br />Provide a brief overview of GASB Statement No. 54 “Fund Balance Reporting and Governmental Fund Type Definitio...
GASB Statement No. 54<br />Why?<br />Two overall changes to financial reporting:<br />Revised/Clarified definitions of gov...
GASB Statement No. 54<br />General Fund:  to account for and report all financial resources not accounted for and reported...
GASB Statement No. 54<br />Debt service funds:  financial resources that are restricted, committed, or assigned to expendi...
GASB Statement No. 54<br />Nonspendable<br />Restricted<br />Committed<br />Assigned<br />Unassigned<br />6<br />
GASB Statement No. 54<br />Nonspendable: Not in a spendable form<br />Cannot ever be spent:  inventories or prepaid items<...
GASB Statement No. 54<br />Restricted-externally imposed<br />External:  Creditors, grantors, contributors or laws or regu...
GASB Statement No. 54<br />Unassigned<br />Only allowed a positive unassigned fund balance in the General Fund<br />Other ...
Stabilization Arrangements<br />Formally setting aside amounts for use only in certain specific circumstances<br />Reporte...
Implementation<br />Establish District policies<br />Committed fund balances-need Board approval prior to June<br />Assign...
Implementation<br />Student Activity Special Revenue Fund<br />Reported as restricted net assets on government wide statem...
Implementation<br />Debt Service Fund<br />Reported as restricted net assets on government wide statements<br />Source of ...
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General Fund example<br />FY 2010 Fund Balance=$7,935,158<br />Any Nonspendable? Prepaid items <br />Any Restricted?  Fede...
Sarah Bohnsack, Partner<br />563.343.9595<br />Sarah@governmentalservice.com<br />Mia Frommelt, Partner<br />913.660.3931<...
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GASB Statement no. 54

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Bohnsack & Frommelt, LLP presentation on GASB Statement 54 at Red Oak, Iowa for IASBO Chapter

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GASB Statement no. 54

  1. 1. GASB Statement No. 54 and Iowa School Districts<br />
  2. 2. Agenda<br />Provide a brief overview of GASB Statement No. 54 “Fund Balance Reporting and Governmental Fund Type Definitions”<br />Governmental Fund Types<br />Fund Balance Categories<br />Discuss Implementation in Iowa School Districts<br />2<br />
  3. 3. GASB Statement No. 54<br />Why?<br />Two overall changes to financial reporting:<br />Revised/Clarified definitions of governmental funds<br />Changed fund balance reporting<br />Effective for June 30, 2011<br />No effect to the proprietary funds (enterprise funds or internal service funds) or fiduciary funds<br />No effect to government-wide statements<br />3<br />
  4. 4. GASB Statement No. 54<br />General Fund: to account for and report all financial resources not accounted for and reported in another fund<br />Special revenue funds: specific revenue sources that are restricted or committed to expenditure for specified purposes other than debt service or capital projects<br />Student Activity Fund<br />Management Levy Fund<br />Capital projects funds: financial resources that are restricted, committed, or assigned to expenditure for capital outlays, including the acquisition or construction of capital facilities and other capital assets<br />Physical Plant and Equipment Levy Fund-previously reported as a special revenue fund is now a Capital Projects Fund, Fund 36.<br />Capital Projects Fund<br />4<br />
  5. 5. GASB Statement No. 54<br />Debt service funds: financial resources that are restricted, committed, or assigned to expenditure for principal and interest<br />Permanent funds: financial resources that are restricted to the extent that only earnings, and not principal, may be used for the District’s programs<br />5<br />
  6. 6. GASB Statement No. 54<br />Nonspendable<br />Restricted<br />Committed<br />Assigned<br />Unassigned<br />6<br />
  7. 7. GASB Statement No. 54<br />Nonspendable: Not in a spendable form<br />Cannot ever be spent: inventories or prepaid items<br />Cannot currently be spent: Long-term portion of loans receivable or assets held for sale<br />If the proceeds must be used for a specific purpose, classify based on the constraint<br />Other long-term receivables are usually offset by the deferred revenue liability and there is no fund balance as a result<br />Legally or contractually required to be maintained intact-permanent fund principal<br />7<br />
  8. 8. GASB Statement No. 54<br />Restricted-externally imposed<br />External: Creditors, grantors, contributors or laws or regulations of other governments, such as the State<br />Difference between restricted fund balance and restricted net assets on the government-wide<br />Committed<br />Highest level of decision-making authority (Board)<br />MUST be committed by the Board prior to year-end, must be documented<br />Assigned<br />May be established by the governing body itself or the governing body may delegate this to an official (Superintendent or Business Manager) or another body within the organization (Finance Committee)<br />Cannot be negative<br />8<br />
  9. 9. GASB Statement No. 54<br />Unassigned<br />Only allowed a positive unassigned fund balance in the General Fund<br />Other governmental funds may report deficit balances as unassigned<br />Remember, cannot report an assignment for an amount to a specific purpose if the assignment results in a deficit unassigned fund balance<br />Classification<br />Determine nonspendable amounts first.<br />Apply the District’s policy for whether restricted or unrestricted amounts have been spent when an expenditure is incurred and both types of resources are available.<br />Next, apply the District’s policy for use of committed, assigned or unassigned.<br />Deficit position: Eliminate any amounts assigned and if residual is still negative, then report a deficit unassigned amount<br />9<br />
  10. 10. Stabilization Arrangements<br />Formally setting aside amounts for use only in certain specific circumstances<br />Reported as restricted or committed<br />The formal action taken for setting aside the amounts specifies the circumstances for use and organization must prove non-routine nature<br />If the formal action is not sufficient, the fund balance is reported as unassigned<br />10<br />
  11. 11. Implementation<br />Establish District policies<br />Committed fund balances-need Board approval prior to June<br />Assigned fund balances-need to determine the body or official authorized to make assignments and the policy that delegated entity is to follow<br />Flows: In what order will the resources be used?<br />Start now with the prior year audit reportand determine the fund balance reporting<br />Draft the footnote disclosures based on the policies that have been adopted<br />11<br />
  12. 12. Implementation<br />Student Activity Special Revenue Fund<br />Reported as restricted net assets on government wide statements<br />Fund balance is restricted<br />Management Levy Special Revenue Fund<br />Reported as restricted net assets on government wide statements<br />Source of revenue is the levy annually certified by the District<br />Fund balance is restricted<br />PPEL Capital Projects Fund<br />Reported as restricted net assets on government wide statements<br />Source of revenue is the levy annually certified by the District<br />Fund balance is restricted<br />Capital Projects Fund<br />Reported as restricted net assets on government wide statements<br />Statewide sales and service tax <br />Fund balance is restricted<br />12<br />
  13. 13. Implementation<br />Debt Service Fund<br />Reported as restricted net assets on government wide statements<br />Source of revenue is the levy specifically approved by voters<br />Fund balance is restricted<br />General Fund<br />Categorical funding-restricted<br />May have Committed and/or Assigned<br />13<br />
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  16. 16. General Fund example<br />FY 2010 Fund Balance=$7,935,158<br />Any Nonspendable? Prepaid items <br />Any Restricted? Federal and state programs<br />Any Committed? None<br />Any Assigned? Federal and state programs<br />What is the Unassigned Balance?<br />16<br />
  17. 17. Sarah Bohnsack, Partner<br />563.343.9595<br />Sarah@governmentalservice.com<br />Mia Frommelt, Partner<br />913.660.3931<br />Mia@governmentalservice.com<br />17<br />

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