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What is Fund Balance? Fund Balance is what is left after the fund's assets have been used to meet its liabilities. An increase in Fund balance could be generated by: ‐ Projects planned for and not completed therefore $ spent is less than budgeted ‐ Found a way to reduce costs so that $ spent was less than budgeted ‐ Received unanticipated revenues bringing in more $ than budgeted Classifications of Fund Balance (GASB 54) Nonspendable Restricted Committed Assigned Unassigned • Not in spendable • Restrictions • Constrained to a • Intend to use for • General Fund form imposed by specific purpose a specific only • Ex. Prepaid grantors, set by Town purpose • To be used for items, bondholders, or Board • Ex. Street any purpose that inventories laws/regulations • Ex. Equipment lighting, garbage benefits the • Ex. Grant $ must Reserve, collection whole town be used for a Drainage specific project Reserve Reserve funds are essentially a legally authorized savings account for particular specific purposes (ex. Equipment Reserve, Buildings Reserve, Drainage Reserve) 16