DATE: July 11, 2017
TO: Board of Supervisors
SUBMITTED BY: Oscar J. Garcia, CPA
Auditor-Controller/Treasurer-Tax Collector
SUBJECT: Administrative Policy Regarding Fund Balance
RECOMMENDED ACTION(S):
TITLE
Adopt Administrative Policy No. 74 - Fund Balance Policy
REPORT
Approval of the recommended action will authorize the County Administrative Officer to establish a policy to implement Governmental Accounting Standards Board Statement No. 54 - Fund Balance Reporting and Governmental Fund Type Definitions (GASB 54).
ALTERNATIVE ACTION(S):
If the recommended action is not approved, the County of Fresno will have to revert to the default policy for governments that do not establish a policy in accordance to GASB 54.
FISCAL IMPACT:
There is no increase in Net County Cost associated with this action.
DISCUSSION:
The Administrative Policy delegates authority to the County Administrative Officer (CAO) to establish a fund balance policy in accordance with GASB 54. It states the highest level of decision-making authority as a 4/5th vote by the Board of Supervisors. In addition, the Board of Supervisors delegate the authority to assign fund balance to the CAO.
The fund balance policy provides a goal for the minimum fund balance level in the General Fund Reserve and the five different fund balance classifications and definitions. It also identifies the spending order of fund balance and the authority to commit and assign fund balance as well as guidance for reporting encumbrances.
ATTACHMENTS INCLUDED AND/OR ON FILE:
Administrative Policy No. 74
Management Directive 780
CAO ANALYST:
Debbie Paolinelli