Orange County NC Website
Browse       Search
2 <br />The statement must be retroactively applied to July 1, 2010. Therefore, we must change our • <br />fund balance categories and fund types to comply with the new standard. <br />The new categories for the reporting of fund balance are as follows: <br />^ Nonspendable <br />^ Restricted <br />^ Committed <br />^ Assigned <br />^ Unassigned <br />The General Fund is the only fund that can have unassigned fund balance. <br />Additionally, the statement changed the definitions of the governmental fund type descriptions. <br />The statement makes clear that special revenue funds are created only to report a revenue <br />source (or sources) that is restricted or committed to a specified purpose, and that the revenue <br />source should constitute a substantial portion of the resources reported in the fund. <br />The capital project fund type has been clarified to focus on the broader, more consistently <br />understood concept of capital outlays, and to better capture the breadth of capital activities in <br />today's environment. Capital Reserve Funds will be reclassified and reported as either part of <br />the General Fund, Debt Service Fund or Capital Projects Fund. <br />We have determined that all of our capital reserve funds (County Capital Reserve and School • <br />Capital Reserve) will be grouped for reporting purposes with their related capital project fund <br />(County Capital and School Capital Funds). <br />Governments are required to implement the new standard for fiscal years ending June 30, <br />2011. <br />FINANCIAL IMPACT: There is not a financial impact of implementing the new accounting <br />standard. <br />RECOMMENDATION(S): The Manager recommends that the Board receives the information <br />presented and advise staff on the implementing of the new standard and recommended fund <br />balance policy. <br />LJ <br />