Minutes 01/10/2012 - Laserfiche WebLink

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January 10. 2012 Recommended Action: . Adoption of the resolution. Vision Principle: Bold New Directions. Next Steps Following Council Action: . Report in accordance with GASB No. 54 starting with fiscal year 2011 and thereafter. . Ensure that the GASB No. 54 spending plan is in accordance with the Fund Balance Classification Policy as adopted by Council. Motion by Mr. Whitehurst, and seconded by Mr. Heretick, to adopt the following resolution, and was adopted by the following vote: "RESOLUTION ADOPTING A FUND BALANCE CLASSIFICATION POLICY. WHEREAS the Governmental Accounting Standards Board (hereinafter the "GASB") has adopted GASB Statement No. 54 establishing criteria for reporting of Fund Balance for governmental funds and Governmental Fund Type definitions in February 2009, effective for periods beginning after June 15, 2010; and therefore effective for fiscal year 2011 and thereafter; and WHEREAS it is a formal requirement of GASB Statement No. 54 that Fund Balance Classification policies and procedures be disclosed as part of year end financial statement preparation for fiscal year 2011 and thereafter. NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Portsmouth, Virginia. That the City Council hereby approves and adopts the attached Fund Balance Classification Policy CITY OF PORTSMOUTH, VIRGINIA FUND BALANCE CLASSIFICATION POLICY I. Definitions Nonspendable Fund Balance Amounts that cannot be spent due to form, including inventories, prepaid amounts, long-term amounts of loans and notes receivable and property held for resale, unless proceeds are restricted, committed or assigned, as well as funds legally or contractually required to be maintained intact. Restricted Fund Balance: Amounts that can be spent only for specific purposes, as stipulated by external resource providers, by constitution or through enabling legislation that is legally enforceable by an external party. Enabling legislation that creates a revenue stream must also stipulate the purposes for which that revenue can be used. Restrictions may only be changed by parties external to the City of Portsmouth, Virginia. Committed Fund Balance: Amounts committed for specific purposes by formal action of the government's highest level of decision- making authority. These amounts are not subject to legal enforceability by external parties, as in restricted; however, those amounts cannot be used for any other purpose unless the City Council remove or change the limitation by taking the same form of action it employed to previously impose the limitation. Assiqned Fund Balance: Amounts that are intended by the government to be used for specific purposes_but are neither restricted nor committed. Intent should be expressed by (a) the governing body itself, or (b) a subordinate high-level body or official possessing the authority to assign amounts to be used for specific purposes. Included in this category is any fund balance carry-forward used to balance the subsequent year's budget.