The City of Monticello, Iowa
IN THE NAME AND BY THE AUTHORITY OF THE CITY OF MONTICELLO, IOWA
RESOLUTION #16-129
Approving Fund Balance Policies Pursuant to GASB 54
WHERAS, the Governmental Accounting Standards Board (“GASB”) has issued Statement 54 (“GASB 54”), a new standard for governmental fund balance reporting and governmental fund type definitions that became effective in governmental fiscal years starting after June 15, 2010, and
WHEREAS, The City of Monticello is required to implement GASB 54 requirements, and to apply such requirements to its financial statements beginning with the fiscal year 2010-2011; and
WHEREAS, During the FY ’16 financial audit of the City of Monticello it was brought to the attention of City staff that the City of Monticello should adopt policies consistent with GASB 54, and to begin the application of GASB 54 policies and requirements to the City of Monticello financial statements, specifically in regard to moneys that are maintained in “Assigned Funds” which are defined as those funds where there are funds constrained by the government’s stated intent to use those funds for a specific purpose, but which are neither restricted nor committed, both being more restrictive and in some cases subject to legally binding restrictions or obligations, and
WHEREAS, The City Council finds the adoption of policies to ensure compliance with GASB 54 to be appropriate.
NOW THEREFORE BE IT RESOLVED THAT the City Council of the City of Monticello does hereby adopt the following policy:
FUND BALANCE POLICY
Fund balance measures the net financial resources available to finance expenditures of future periods.
The Unassigned General Fund Balance may only be assigned by the City Clerk and/or City Administrator pursuant to authority delegated by the City Council.
Fund Balances of the City of Monticello may be committed for a specific source by Resolution of the Monticello City Council. Amendments, modifications, and/or the discontinuance of the committed fund balance must also be approved by Resolution of the Monticello City Council.
In circumstances where an expenditure is to be made for a purpose for which amounts are available in multiple fund balance classifications within the same fund, the order in which resources will be expended is as follows: restricted fund balance, followed by committed fund balance, assigned fund balance, and lastly, unassigned fund balance.
IN TESTIMONY WHEREOF, I have hereunto subscribed my name and caused the Great Seal of the City of Monticello, Iowa to be affixed hereto. Done this 19th day of December, 2016.
Dena G. Himes, Mayor
Attest:
Sally Hinrichsen, Monticello City Clerk