11.09 - GASB 54 - Laserfiche WebLink

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� City of P'equat Lakes - MEMORANDUM To: Pequot Lakes City Council From: Nancy Malecha, Finance Administratar/Deputy City Clerk Date: October 2, 2012 Subject: GASB 54 On November 1, 2011, the City Council adopted Resolution 11-22 - Establishing Fund Balance Reporting as Required by GASB 54 which defines fund balances for several City funds. During the 2011 audit process, it was noted that a few of the City's funds were not included in the original Resolution. Therefore, I am requesting approval of the attached resolution establishing fund balance reporting in accordance with GASB 54 regulations for the Bobber Water Tower Fund and the Library Fund. The following explains the fund balance definitions. • Non-Spendable - Amounts that cannot be spent because they are either not in spendable form (i.e. prepaids, inventory, long-term receivables) or there is a legal ar contractual requirement to be maintained intact. • Restricted — Externally enforceable limitations of use (i.e. limitations imposed by `" creditors, grantors, statutes, etc...). • Committed — Self-imposed limitations set in place prior to the end of the year. These limitations must be imposed by the highest level of decision making authority at a local government (i.e. city council). Must also have a similar formal action by the same level of decision making authority to remove or modify the commitment. • Assigned — Self-imposed limitations of fund balance resulting from intended use. These limitations can be established after year end, up to the date of issuance of the audit report and the authority to determine assigned fund balance can be delegated to someone other than the governing board. • Unassigned — Is the residual classification for the general fund. Any negative residual amounts in other governmental funds would be reported as negative unassigned in that particular fund. Thank you. �