Orange County NC Website
BOCC Approved <br /> 10/21/2008 <br /> School Districts Local Current Expense Fund Balance Policy <br /> Joint Policy Between <br /> Orange County Board of County Commissioners <br /> Chapel Hill Carrboro City Schools Board of Education <br /> Orange County Schools Board of Education <br /> 1. Guidelines <br /> The School Budget and Fiscal Control Act (SBFCA) establishes accounting, <br /> budgetary and fiscal control guidelines for School Systems. The SBFCA is <br /> codified in G.S. Chapter 115C, Article 31, beginning at G.S. 115C-422. This <br /> act parallels the statutes established for Local Government with a few <br /> exceptions. <br /> 2. Definitions <br /> 2.1.Total Fund Balance — The difference between a school system's total <br /> assets and its total liabilities at the end of the fiscal year. <br /> 2.2.Fund Balance Available for Appropriation —The sum of a school system's <br /> assets held in cash and investments minus the sum of the school system's <br /> liabilities and encumbrances at the end of the fiscal year as outlined in G.S. <br /> 115C-425 of the SBFCA. <br /> 2.3.Designated Fund Balance — The amount of the available fund balance that <br /> has been appropriated for the budget year through budgetary action of the <br /> School Board. <br /> 2.4.Undesignated Fund Balance - The difference between Fund Balance <br /> Available for Appropriation and Designated Fund Balance. <br /> 3. Policy <br /> 3.1.Fund Balance for Cash Flow Purposes — Each school district will make a <br /> good faith effort to maintain a level of undesignated fund balance that will <br /> ensure sufficient funds are available to address its cash flow needs. The <br /> following levels are to be maintained for cash flow purposes only: <br /> 3.1.1. Chapel Hill Carrboro City Schools - The targeted level of <br /> undesignated fund balance for cash flow purposes will be at a <br /> minimum of 5.5 percent of budgeted expenditures. <br /> 3.1.2. Orange County Schools — The targeted level of undesignated fund <br /> balance for cash flow purposes will be at a minimum of 3 percent of <br /> budgeted expenditures. <br />