General fund balance is the amount by which all the assets of the District's General (Operating)Fund, exceed all the liabilities of the fund. The fund balance does not represent the District's cash position.
The Board recognizes that management of the District's funds necessitates the development of an adequate end of year fund balance. The general fund operating reserve:
- Provides adequate working capital sufficient to meet the District cash-flow requirements, thus minimizing any cash-flow (short term) borrowing during the annual operating cycle;
- Functions as a safeguard to fund unanticipated expenses that the District might incur or to fund unrealized revenue, which may occur but shall not be considered available to meet recurring operating expenses; and
- Demonstrates fiscal responsibility resulting in high credit rating which will help to reduce the District's debt service rate.
Use of the General Fund Balance must be approved by the Board. Committed funds are used first, followed by assigned and then unassigned amounts.
Annually, the Board (through the Finance Committee) will review the fund balance to determine the allocation between non-spendable, restricted, committed, assigned, and unassigned fund balance accounts. The Business Manager or District Administrator is delegated authority to assign fund balance as directed by the Board..
The District's goal is to maintain a fund balance of 25% to 33% of the District's annual expenditures in accordance with generally accepted accounting practices
It shall be the policy of the District that the District fund balance exceeding the minimum amount required for the day to day operations of the District established by the Board may be invested as permitted by law.
Fund balance in excess of 33% may be spent on one-time expenditures, including but not limited to property tax relief, and shall not be committed to ongoing expenses. In the event the fund balance falls below 25%, reductions in expenditures will be prioritized to consider those which have the least impact on the ongoing educational program.
Fund 73 shall be maintained with sufficient assets to provide for accrued liabilities over the next three year period.
LEGAL REF.: Sections 65.90(5)(a) Wisconsin Statutes
Wisconsin Uniform Financial Accounting Requirements (WUFAR)
First Reading: May 21, 2013
Second Reading: June 4, 2013
Approved: July16, 2013
For the Board: Tom Steiner, President; Lynn Jaeger, Vice President; Cole Marshall, Clerk; Bill Barhyte, Treasurer;Dean Troyer, Member