The Governmental Accounting Standards Board (GASB) adopted Statement 54, a new standard for governmental fund balance reporting that became effective in governmental fiscal years starting after June 15, 2010

1) “Fund balance” shall mean the gross difference between governmental fund assets and liabilities reflected on the balance sheet.

The Shelby County Board of Education (SCBE) shall report governmental fund balances per GASB 54 definitions in the balance sheet as follows:

• Nonspendable
• Restricted
• Committed
• Assigned
• Unassigned

2) The SCBE shall approve all commitments by formal action. The action to commit funds must occur prior to fiscal year-end, to report such commitments in the balance sheet of the respective period, even though the amount may be determined subsequent to fiscal year-end. A commitment can only be modified or removed by the same formal action.

3) When it is appropriate for fund balance to be assigned, SCBE hereby delegates the responsibility to assign funds to the Superintendents or his/her designee. Assignments may occur subsequent to fiscal year-end.

4) The SCBE will utilize funds in the following spending order: Restricted Committed Assigned Unassigned

• Committed
• Assigned
• Restricted
• Unassigned