4/15/11

The Governmental Accounting Standards Board (GASB) released Statement 54 -"Fund Balance Reporting and Governmental Fund Type Definitions" on March 11, 2009, which is effective for fiscal year 2011.  Prior to June 30, 2011 or August 31, 2011, depending upon the school district's fiscal year end, a resolution is to be adopted by the board of trustees that "commits fund balance to specific purpose[s]..., but the amount[s], if any, which will be subject to the constraint, may be determined in the subsequent period." The committed amounts may be determined when the audited fund balance amounts are known after the fiscal year end. 

It is also a best practice for the board of trustees to set a goal for the minimum fund balance percentage(s).  

The example below was adapted from the resolution adopted by the board of trustees of the Leander Independent School District in January 2011. 

Example Fund Balance Resolution (39.50 KB)

Example Fund Balance Resolution Attachment (211.71 KB)