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•Legally or contractually required to be maintained intact (e.g., principal of a sinking <br /> fund) <br /> RESTRICTED FUND BALANCE <br /> •Amounts constrained to being used for a specific purpose by: <br /> •External parties (i.e., creditors, grantors, contributors, or laws or regulations of other <br /> governments <br /> •Imposed by law through constitutional provisions or enabling legislation - RSS <br /> COMMITTED FUND BALANCE <br /> Amounts whose use is constrained by limitation that the government imposes upon itself <br /> •Constraint on use imposed by the government's highest level of decision making authority <br /> •Same type of action required to remove or change the specified use <br /> •Action to constrain resources should occur prior to end of fiscal year <br /> ASSIGNED FUND BALANCE <br /> •Amounts intended to be used for specific purposes. Intent is expressed by the governing <br /> body itself, or an official delegated by the governing body (appropriated fund balance for next <br /> year expenditures). <br /> COMMITTED VS. ASSIGNED <br /> •Both constrained to being used for specific purposes by actions taken by the government <br /> itself <br /> •Assignment is not required to be made by the government's highest level of decision making <br /> authority <br /> •Same action is not required to remove or modify an assignment <br /> UNASSIGNED FUND BALANCE <br /> •Available for any purpose <br /> •General fund should be the only fund that reports a positive unassigned fund balance <br /> •Deficit balance possible in any governmental fund <br /> ENCUMBRANCES <br /> •Encumbrances should not be displayed as restricted, committed, or assigned categories. <br /> •Amounts are classified as restricted, committed, or assigned based on the source and <br /> strength of the constraints placed on them—encumbering those amounts does not further <br /> affect them. <br /> NOTE DISCLOSURE <br /> Description of authority and actions that lead to committed and assigned fund <br /> Balance for Committed Fund Balance: <br /> —The government's highest level of decision making authority and the formal action that is <br /> required to be taken. <br /> •For Assigned Fund Balance: <br /> —The body or official authorized to assign amounts to a specific purpose. <br /> —The policy established by the governing body pursuant to which that authorization is given. <br />