Agenda - 09-25-2008 - Laserfiche WebLink

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ANul«..I 3 Draft Presented at Joint Meeting of Board of County Commissioners and Boanis of Education on 09/25/08 School Districts Local Current Expense Fund Balance Policy Joint Policy Between Orange County Board of County Commissioners Chapel Hill Carrboro City Schools Board of Education Orange County Schools Board of Education 1. Guidelines The School Budget and Fiscal Control Act (SBFCA) establishes accounting, budgetary and fiscal control guidelines for School Systems. The SBFCA is codified in G.S. Chapter 115C, Article 31, beginning at G.S. 115C-422. This act parallels the statutes established for Local Government with a few exceptions. 2. Definitions 2.1.Total Fund Balance -The difference between a school system's total assets and its total liabilities at the end of the fiscal year. 2.2. Fund Balance Available for Appropriation -The sum of a school system's assets held in cash and investments minus the sum of the school system's liabilities and encumbrances at the end of the fiscal year as outlined in G.S. 115C-425 of the SBFCA. 2.3. Designated Fund Balance -The amount of the available fund balance that has been appropriated for the budget year through budgetary action of the School Board. 2.4. Undesignated Fund Balance -The difference between Fund Balance Available for Appropriation and Designated Fund Balance. 3. Policy 3.1. Fund Balance for Cash Flow Purposes -Each school district will make a good faith effort to maintain a level of undesignated fund balance that will ensure sufficient funds are available to address its cash flow needs. The following levels are to be maintained for cash flow purposes only: 3.1.1. Chapel Hill Carrboro City Schools - The targeted level of undesignated fund balance for cash flow purposes will be at a minimum of 5.5 percent of budgeted expenditures. 3.1.2. Orange County Schools -The targeted level of undesignated fund balance for cash flow purposes will be at a minimum of 3 percent of budgeted expenditures.