Governmantal Accounty Standards (GASB) Pronouncement 54Masterpiece on the Mississippi
MCVM:jh
Attachment
cc: Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
Kenneth J. TeKippe, Finance Director
Michael C. Van Milligen
Dubuque
kittil
All- AmeticaCity
I'll®
2007
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Governmental Accounting Standards Board (GASB) Pronouncement 54
DATE: June 14, 2011
General Accounting Standards Board (GASB) has implemented a new standard
effective for Fiscal Year ending June 30, 2011, whereby governments are required to
identify the components that make up the general fund balance on the Comprehensive
Annual Financial Report.
I respectfully recommend the City Council delegate authority to the City Manager, or the
City Manager's designee, to assign general fund balance for intended purposes under
GASB 54.
Masterpiece on the Mississippi
TO: Michael Van Milligen, City Manager
From: Kenneth TeKippe, Finance Director
Subject: Governmental Accounting Standards Board (GASB) Pronouncement 54
Date: June 9, 2011
Introduction
The purpose of this memorandum is to request that the City Council delegate authority
to City Manager, Budget Director or Finance Director to assign general fund balance for
intended purposes under GASB 54.
Background
General Accounting Standards Board (GASB) has implemented a new standard
effective for fiscal year ending June 30, 2011, whereby governments are required to
identify the components that make up the general fund balance on the Comprehensive
Annual Financial Report as follows.
Non
Spendable
Fund Balance
Restricted
Fund Balance
Committed
Fund Balance
Assigned Fund
Balance
Unassigned
Fund Balance
Enclosure
Portion of net resources that cannot be spent because of their
form (e.g. inventories, prepaid expenses) or must be maintained
intact (e.g. principal of an endowment.
Limitation on uses imposed externally by creditors, grantors,
contributors, or laws and regulations of other governments, or
enabling legislation
Self imposed limitations made at the highest level of decision
making, that requires a formal action at the same level to
remove.
Limitation resulting from intended use, established by the
highest level of decision making, by body designed for that
purpose, or by official designated for that purpose
Total fund balance in the general fund in excess of non
spendable, restricted, committed and assigned fund balance
(i.e. surplus)
Dubuque
AN- America City
1
2007
Recommendation
I respectfully recommend that the City Council delegate authority to assign general fund
balance to the City Manager, Budget Director or Finance Director.
RESOLUTION NO. 195 -11
APPROVAL OF DELEGATION OF AUTHORITY TO CITY MANAGER, BUDGET
DIRECTOR OR FINANCE DIRECTOR TO ASSIGN GENERAL FUND BALANCE FOR
INTENDED PURPOSES UNDER THE NEW GUIDELINES OF GOVERNMENTAL
STANDARDS ACCOUNTING BOARD (GASB) PRONOUNCEMENT 54
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
DUBQUE, IOWA:
Section 1. Assigned fund balance describes the portion of fund balance that reflects
a government's intended use of resources. Such intent is established at either:
Governmental Standards Accounting Board (GASB) Pronouncement 54 requires that
the City Council approves the officials designated to assign fund.
Passed, approved and adopted this 20 day of June, 2011.
Attest:
• Highest level of decision making, or
• Body designated for that purpose, or
• Official designated for that purpose.
in S. Fir stahl, Acting CI y Clerk
Lynn V. Sutton, Mayor Pro -Tem