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the pension expense, and any contributions to the pension systems madesubsequent to the measurement date. If presented, this item would be reported on the government-wide financial statements: In addition to liabilities, the statement of net position (not presented in this report) will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position that applies to a future period and so will not be recognized as an inflow of resources (revenue) until that time. The Village has one item that qualifies for reporting in this category. This item is related to pensions and, if presented, would be reported in the government-wide statements. This represents the effect of the net change in the Village’s proportion of the collective net pension liability (ERS and PFRS Systems) arid difference . during the measurement periods between the Village’s contributions and its proportion share of total contributions to the pension systems not included in pension expense. Compensated Absences — Village employees are granted sick leave and earn compensatory time in varying amounts. In the event of termination or upon retirement, certain employees are entitled to payment from accumulated sick leave and unused compensatory time at various rates subject to certain maximum limitations. Because Management does not present government-wide. financial statements, the balance for compensated absences is disclosed in the footnotes to these financial statements but is not reported as a liability per fund accounting. Payment of sick leave and compensatory time is dependent on many factors and, therefore, timing of - future payments is not readily determinable. Management believe, however. that sufficient resources will be made available for the future payment of compensated absences when such payments become due. Fund Balance Flow Assumptions ~ Sometimes the Village will fund outlays for a particular purpose from both restricted and unrestricted resources (the total of committed, assigned, and unassigned fund balance). In order to calculate the amounts to report as restricted, committed, assigned, and unassigned find balance in the governmental fund financial statements a flow assumption must be made about the order in which the resources are considered to be applied. It is the Village's policy to consider restricted fund balance to have been depleted before using any of the components of unrestricted fund balance. Further, when the components of unrestricted fund balance can be used for the same purpose, committed fund balance is depleted first, followed by assigned fund balance. Unassigned fund balance is applied last. Fund Balance Policies — Fund balance of governmental fundsis reported in various categories based on the nature of any limitations requiring the use of resources for specific purposes. The Village itself can establish limitations on the use of resources through either a commitment (committed fund balance) or an assignment (assigned fund balance). The committed fund balance classification includes amounts that can be used only for the specific purposes determined by a formal action of the Village’s highest level of decision-making authority. - The Village Board is the highest level of decision-making authority for the Village. that can, by adoption of an ordinance prior to the end of the fiscal year, commit fund balance. Once adopted, the limitation imposed by the ordinance remains in place until a similar action is taken (the adoption of another ordinance) to remove or revise the limitation. 18