CCP 06-26-2012 - Laserfiche WebLink

Home Browse Search

It City Of Report Number 12-148 1 NI1 VV Agenda Section VI-3 BRI( POI\ Council Meeting Date June 26,2012 the city that works for you REQUEST FOR COUNCIL CONSIDERATION ITEM DESCRIPTION: Adopt Revised Fund Balance Policy DEPARTMENT HEAD'S APPROVAL: CITY MANAGER'S APPROVAL: No comments to supplement this report Comments attached Recommendation: Adopt the revised Fund Balance Policy. Legislative History: The City's existing Fund Balance Policy was adopted on May 10, 2005. The Governmental Accounting Standards Board (GASB) is the independent organization that establishes and improves standards of accounting and financial reporting for U.S. state and local governments. GASB is recognized by governments as the official source of generally accepted accounting principles for state and local governments. Statement No. 54 of the Governmental Accounting Standards Board, Fund Balance Reporting and Governmental Fund Type Definitions was issued in February, 2009. Research found considerable differences in how governments interpret and apply the standards for fund balance reporting. The objective for this Statement is to improve the usefulness, including the understandability, of government fund balance information. It also clarifies the existing governmental fund type definitions to improve the comparability of governmental fund financial statements and help financial statement users to better understand the purposes for which governments have chosen to use particular funds for financial reporting. Financial Impact: The policy deals with accounting and financial reporting standards. Explanation: The purpose of this policy is to (1) improve clarity and consistency of the fund balance information provided; (2) formalize stabilization-like arrangements by establishing targeted and/or minimum fund balances; and (3) define and integrate the City's fund balance policy for its governmental funds to be in compliance with generally accepted accounting principles (GAAP) and Governmental Accounting Standards Board (GASB) Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions. The policy pertains only to the City's governmental funds. The City's governmental funds include the General Fund, special revenue funds, debt service funds and capital project finds. The City's governmental funds do not include enterprise funds (Water, Sewer, Stormwater, Street Lights and Golf Course) or internal service funds (Compensated Absences, Risk