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Draft Presented at Joint Meeting of Board of County Gommissioners and Boards of Education on 04i'22i08 <br />3.1.2. grange County Schools -The level of fund balance for cash flow <br />purposes will be at a minimum of 3 percent. <br />3.2. Fund Balance for Contingency Purposes -School districts will be allowed <br />to accumulate up to an additional 1.5 percent in fund balance for contingency <br />purposes. <br />3.3. Accumulated Fund Balance Above Cash Flow and Contingency <br />Purposes - In the event that either school district accumulates more than the <br />percentage amounts allowed for cash flow and contingency purposes, the <br />respective Board of Education will have a plan in place for spending the <br />accumulated fund balance surplus far non-recurring purposes. The Board of <br />Education will share that plan with the Board of Gounty Commissioners <br />3.4. Fund Balance Appropriation -Appropriation of fund balance is a budgetary <br />action that rests with elected bodies of each school system. It is highly <br />desired that fund balance appropriations be limited to non-recurring <br />expenses. Both school districts have historically appropriated fund balance <br />as a part of their normal budgeting process, and this practice will remain until <br />additional revenue is available to eliminate the use of fund balance. Any <br />significant deviations in the normal budgetary appropriation should be noted <br />and explained as a part of the budget narrative accompanying the <br />recommended and adopted budgets. <br />If the Board of Education finds it necessity to appropriate fund balance, for <br />recurring expenses, after the original fiscal year budget is adopted, the Board <br />of Education should notify the Board of County Commissioners and provide a <br />funding plan that identifies revenues sufficient to cover for future years' <br />appropriations, if necessary. The Gounty Commissioners are not obligated <br />to increase local current expense in order to fund recurring items for which <br />the Board of Education appropriates fund balance outside of the normal <br />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 should have a detailed plan for future use of accumulated fund <br />balance. Boards of Education are to use Undesignated Fund Balance to address <br />extraordinary issues. <br />