Regular Fire Board Meeting - June 24, 2020

Net Position/Fund Equity

Net Position on Government Wide Financial Statements – Exhibit A

Fund Equity, as defined in GASB Statement No. 34, “Basic Financial Statements for State and Local Governments” is defined as net position and is classified in the following categories: § Restricted—amounts constrained to specific purposes by their providers (such as grantors, bondholders, and higher levels of government), through constitu tional provisions, or by enabling legislation. § Unrestricted – this balance area is the amount of equity which is not included in the restricted fund balance and the Investments in Capital Asset balances. § Net Investment in Capital Assets – This consists of capital assets, net of accumulated depreciation and reduced by the outstanding balances of any bonds, notes or other borrowings that are attributable to the acquisition, construction or improvement of those assets. Beginning with fiscal year ended June 30, 2010, the District implemented GASB Statement No. 54, “Fund Balance Reporting and Governmental Fund Type Definitions.” This Statement provides more clearly defined fund balance categor ies to make the nature and extent of the constraints placed on a government’s fund balances more transparent. The following classifications describe the relative strength of the spending constraints: § Nonspendable fund balance—amounts that are not in a spendable form (such as pre-paid assets ) or are required to be maintained intact. § Restricted fund balance—amounts constrained to specific purposes by their providers (such as grantors, bondholders, and higher levels of government), through constitutional provisions, or by enabling legislation. § Committed fund balance—amounts constrained to specific purposes by the District itself, using its highest level of decision -making authority (i.e., District Board). To be reported as committed, amounts cannot be used for any other purpose unless the Board takes the same highest level action to remove or change the constraint. § Assigned fund balance — amounts the District intends to use for a specific purpose. Intent can be expressed by the District Board or by an officia l or body to which the District Board delegates the authority. § Unassigned fund balance—amounts that are available for any purpose. Positive amounts are reported only in the general fund. Fund Balances on Government Fund Financial Statements – Exhibit C

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