HINCKLEY-FINLAYSON PUBLIC SCHOOLS
FUND BALANCE POLICY
POLICY # 705
PURPOSE
The purpose of this policy is to define a district financial posture of maintaining an adequate fund balance in the unreserved general operating funds. * A fund balance allows the district to meet unforeseen contingencies such as enrollment shifts, unfunded state and federal mandates, economic downturns, increased utility costs, inflation, and salary settlements.
*The unreserved general operating fund balance is defined as the sum of the balances in the general, food service and community services funds.
GENERAL STATEMENT OF POLICY
It is the policy of this school district that adequate fund balances be maintained in the unreserved general operating funds. It is the policy of this school district to supplement the food service and community service funds with general fund money when those funds run a deficit.
FUND BALANCE ADEQUACY
The Board of Education’s goal is to maintain an unreserved general operating fund balance of not less than 25% of the general operating expenditures for each fiscal year.
If, as a result of budget planning, administration projects that the unreserved general operating fund balance will decrease below the 25% goal, the superintendent shall apprise the Board of this prior to budget adoption
If the superintendent projects that the unreserved general operating fund balance will decrease below 15% threshold, then the Board will initiate one of the following measures for the budget year in question to ensure that the balance does not fall below 15% reserve.
REPORT
This fund balance policy will be reviewed periodically.
Cross References: MSBA Service Manual, Chapter 9, Public School Finance
Approved 04/13/2015
re-approved 4/11/2016
Re-Approved 12/12/2016
Re-Approved 12/12/2017
Recommend for renewal 4/9/2018
FUND BALANCE POLICY
POLICY # 705
PURPOSE
The purpose of this policy is to define a district financial posture of maintaining an adequate fund balance in the unreserved general operating funds. * A fund balance allows the district to meet unforeseen contingencies such as enrollment shifts, unfunded state and federal mandates, economic downturns, increased utility costs, inflation, and salary settlements.
*The unreserved general operating fund balance is defined as the sum of the balances in the general, food service and community services funds.
GENERAL STATEMENT OF POLICY
It is the policy of this school district that adequate fund balances be maintained in the unreserved general operating funds. It is the policy of this school district to supplement the food service and community service funds with general fund money when those funds run a deficit.
FUND BALANCE ADEQUACY
The Board of Education’s goal is to maintain an unreserved general operating fund balance of not less than 25% of the general operating expenditures for each fiscal year.
If, as a result of budget planning, administration projects that the unreserved general operating fund balance will decrease below the 25% goal, the superintendent shall apprise the Board of this prior to budget adoption
If the superintendent projects that the unreserved general operating fund balance will decrease below 15% threshold, then the Board will initiate one of the following measures for the budget year in question to ensure that the balance does not fall below 15% reserve.
- Reduce expenditures
- Study ways to generate additional revenue.
- A combination of budget cuts and study to generate additional revenue.
REPORT
This fund balance policy will be reviewed periodically.
Cross References: MSBA Service Manual, Chapter 9, Public School Finance
Approved 04/13/2015
re-approved 4/11/2016
Re-Approved 12/12/2016
Re-Approved 12/12/2017
Recommend for renewal 4/9/2018