Agenda - 11-09-2010 - 1 - Laserfiche WebLink

Browse Search

ORANGE COUNTY • BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: November 9, 2010 Action Agenda Item No. 1 SUBJECT: GASB Statement No. 54 Fund Balance Reporting and Governmental Fund Type Definitions DEPARTMENT: PUBLIC HEARING: (YIN) No Financial Services ATTACHMENT(S): INFORMATION CONTACT: 1. PowerPoint -GASB 54 Fund Balance Reporting and Governmental Fund Type Frank Clifton, 919-245-2306 Definitions Clarence Grier, 919-245-2453 2. Draft Fund Balance Policy • PURPOSE: To discuss the implementation of Government Accounting Standards Board (GASB) Statement No. 54 Fund Balance Reporting and Governmental Fund Type Definitions, and the implications on the financial reporting of the County. BACKGROUND: Fund balance refers to the difference between assets and liabilities in the governmental funds balance sheet. This information is one of the most widely used elements of state and local government financial statements for analysis. One central importance of the credit reviews performed by municipal bond analysts; fund balance information also is used by oversight bodies, federal, state, county and local legislators to assess the financial heath of an organization. Additionally, financial statement users examine fund balance information to identify the available liquid resources. that can be used to repay long-term debt, reduce property taxes, add new governmental programs, expand existing ones, or enhance the financial position of the government. GASB has found that its usefulness and the value of fund balance information provided is significantly reduced by misunderstandings regarding the message that it conveys, and the inconsistent treatment and financial reporting practices of governments. In March 2009, in order to improve how fund balance information is reported and enhance its decision-usefulness, GASB issued Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions. CJ