HomeMy WebLinkAboutResolutions - R-12-019 - 08/06/2012 - RESOLUTION ESTABLISHING FUND BALANCE POLICIES AS RRESOLUTION R-12-019
Establishing Fund Balance Policies as Required by GASB 54
WHEREAS, the Governmental Accounting Standards Board ("GASB") has adopted Statement 54
("GASB 54"), a new standard for governmental fund balance reporting and governmental fund type definitions
that became effective in governmental fiscal years staring after June 15, 2010, and
WHEREAS, the City of McHenry, Illinois wishes to comply with GASB 54 as required beginning with
the previous May 1, 2011 — April 30, 2012 fiscal year;
NOW THEREFORE BE IT RESOLVED, that the City of McHenry, Illinois hereby adopts the
following policy:
FUND BALANCE POLICIES
Fund balance measures the net financial resources available to finance expenditures of future periods.
The City of McHenry's Unassigned General Fund Balance will be maintained to provide the City with sufficient "
working capital and a margin of safety to address local and regional emergencies without borrowing. The
unassigned General Fund Balance may only be appropriated by resolution of the City Council.
Fund Balance of the City of McHenry may be committed for a specific source by formal action of the City
Council. Amendments or modification to the committed fund balance must also be approved by formal action of
the City Council. Committed fund balance does not lapse at year-end.
The McHenry City Council delegates authority to assign fund balance for a specific purpose to Carolyn Lynch,
Finance and Accounting Manager, with the advice and consent of the Finance and Personnel Committee.
For purposes of fund balance classification, expenditures are to be spent from restricted fund balance first,
followed in order by committed fund balance, assigned fund balance and lastly, unassigned fund balance.
Carolyn Lynch, Finance and Accounting Manager, has the authority to deviate from this policy if it is in the best
interest of the City of McHenry, with the advice and consent of the Finance and Personnel Committee.
This policy should be revisited each year for review.
The above Resolution is adopted this 61h day of August, 2012.
AYES: Santi, Glab, Schaefer, Blake, Wimmer, Peterson, Condon
NAYS: None
ABSENT: None
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Mayor
ATTEST:
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City Clerk