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<br />R-12-03 <br /> <br />A RESOLUTION ADOPTING A FUND BALANCE CLASSIFICATION POLICY. <br /> <br />WHEREAS the Governmental Accounting Standards Board (hereinafter the <br />"GASB") has adopted GASB Statement No. 54 establishing criteria for reporting of Fund <br />Balance for governmental funds and Governmental Fund Type definitions in February <br />2009, effective for periods beginning after June 15, 2010; and therefore effective for <br />fiscal year 2011 and thereafter; and <br /> <br />WHEREAS it is a formal requirement of GASB Statement No. 54 that Fund <br />Balance Classification policies and procedures be disclosed as part of year end financial <br />statement preparation for fiscal year 2011 and thereafter. <br /> <br />NOW, THEREFORE, BE IT RESOLVED by the Council of the City of <br />Portsmouth, Virginia. <br /> <br />That the City Council hereby approves and adopts the attached Fund Balance <br />Classification Policy <br /> <br />CITY OF PORTSMOUTH, VIRGINIA FUND BALANCE <br />CLASSIFICA nON POLICY <br /> <br />I. Definitions <br /> <br />Nonspendable Fund Balance <br />Amounts that cannot be spent due to form, including inventories, prepaid <br />amounts, long-term amounts of loans and notes receivable and property held <br />for resale, unless proceeds are restricted, committed or assigned, as well as <br />funds legally or contractually required to be maintained intact. <br /> <br />Restricted Fund Balance: <br />Amounts that can be spent only for specific purposes, as stipulated by external <br />resource providers, by constitution or through enabling legislation that is <br />legally enforceable by an external party. Enabling legislation that creates a <br />revenue stream must also stipulate the purposes for which that revenue can be <br />used. Restrictions may only be changed by parties external to the City of <br />Portsmouth, Virginia. <br /> <br />Committed Fund Balance: <br />Amounts committed for specific purposes by formal action of the <br />government's highest level of decision- making authority. These amounts are <br />not subject to legal enforceability by external parties, as in restricted; <br />however, those amounts cannot be used for any other purpose unless the City <br />Council remove or change the limitation by taking the same form of action it <br />employed to previously impose the limitation. <br /> <br />Assigned Fund Balance: Amounts that are intended by the government to be <br />used for specific purposes_but are neither restricted nor committed. Intent <br />should be expressed by (a) the governing body itself, or (b) a subordinate <br />