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19 <br />BOCC Approved <br />10/21/2008 <br />i <br />3.2. Accumulated Fund Balance Above Cash Flow Purposes - In the event <br />that either school district accumulates more than the percentage amounts <br />allowed for cash flow purposes, the respective Boards of Education will <br />develop a plan in place for spending the accumulated fund balance surplus <br />for non - recurring purposes. The Board of Education will share that plan with <br />the Board of County Commissioners <br />3.3. Fund Balance Appropriation Occurring Outside the Normal Annual <br />Budgeting Process — Appropriation of fund balance is a budgetary action <br />that rests with elected bodies of each school system. It is highly desired that <br />fund balance appropriations be limited to non - recurring expenses. Both <br />school districts have historically appropriated fund balance as a part of their <br />normal budgeting process, and this practice will remain until additional <br />revenue is available to eliminate the use of fund balance. The Board of <br />Education should note and explain significant deviations in the normal <br />budgetary appropriation as a part of the budget narrative accompanying the <br />recommended and adopted budgets. <br />If the Board of Education finds it necessary to appropriate fund balance, <br />outside the normal annual budgeting process, the Board of Education shall <br />highlight the appropriation in their next fiscal year's budget request. The <br />County Commissioners are not obligated to increase local current expense in <br />order to fund recurring items for which the Board of Education appropriates i <br />fund balance outside of the normal budgeting process. <br />4. Undesignated Fund Balance — Undesignated fund balance may be allowed to <br />accumulate above the cash flow percentages under certain circumstances. <br />School Boards will develop a detailed plan for future use of accumulated fund <br />balance. Boards of Education are to use undesianated fund balance to address <br />unforeseen events or opportunities. In these instances, it is the responsibility of <br />the Board of _Commissioners to work with the School Boards to address the <br />extraordinary issues. <br />5. Extraordinary Emergency Needs — There may arise a time in the future when <br />one or both school district(s) experience(s) an unforeseen extraordinary <br />uninsured event that greatly compromises how the district(s) serve(s) children. <br />In such instances, there may be a need for the school district(s) to use some or <br />all of its fund balance. In such instances, the Board(s) of Education is(are) to <br />take appropriate action to correct the problem, and following necessary <br />budgetary action by the Board of County Commissioners, the County will <br />reimburse the School Board(s) for the necessary expenditures. <br />6. Policy Review - The School /County Collaboration Work Group shall review this <br />policy every 18 months to determine if changes to the policy are necessary. <br />• <br />