HomeMy WebLinkAbout20113228.tiff RESOLUTION
RE: APPROVE ADOPTION OF GASB 54 STANDARDS AND APPLICATIONS
WHEREAS, the Governmental Accounting Standards Board ("GASB") has adopted
Statement 54 ("GASB"), a new standard for governmental fund balance reporting and
governmental fund type definitions that became effective in governmental fiscal years starting
after June 15, 2010, and
WHEREAS, the Board of Weld County Commissioners elects to implement GASB 54
requirements, and to apply such requirements to its financial statements beginning with the
current January 1, 2011, through December 31, 2011, fiscal year;
NOW, THEREFORE, BE IT RESOLVED THAT THE BOARD OF WELD COUNTY
COMMISSIONERS ADOPTS THE FOLLOWING POLICY:
FUND BALANCE POLICY
Fund balance shall mean the gross difference between governmental fund assets and
liabilities reflected on the balance sheet.
• Weld County shall report governmental fund balances per GASB 54 definitions in the
balance sheet as follows:
o Nonspendable
o Restricted
o Committed
o Assigned
o Unassigned
• The Board 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.
• When it is appropriate for fund balance to be assigned, the Board delegates the
responsibility to assign funds to the Director of Finance and Administration or his/her
designee. Assignments may occur subsequent to fiscal year-end.
• The Board will utilize funds in the following spending order:
o Restricted
o Committed
o Assigned
o Unassigned
• Any remaining fund balance following all restrictions and commitments in the Health
Fund shall be assigned for the purpose of future heath programs for the benefit of
the citizens of Weld County.
C i 2011-3228
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ADOPTION OF GASB 54 STANDARDS AND APPLICATIONS
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• Any remaining fund balance following all restrictions and commitments in the Social
Services Fund shall be assigned for the purpose of future welfare programs for the
benefit of the citizens of Weld County.
• Any remaining fund balance following all restrictions and commitments in the Human
Services Fund shall be assigned for the purpose of future welfare, senior, and
employment programs for the benefit of the citizens of Weld County.
• The Contingency Fund shall maintain a minimum fund balance to cover a minimum
ten (10) percent of the annual expenditures and maximum of twenty (20) percent of
the annual total expenditures as determined by the Director of Finance and
Administration to provide: (1) a reasonable level of assurance that Weld County's
operations will continue even if circumstances occur where revenues are insufficient
in an amount that is equal to at least one-percent of annual expenditures to cover
necessary expenses for public safety, public welfare and public works; (2) there is a
major reduction in oil and gas assessed valuations; or (3) there are other unexpected
needs or emergency situations costing an amount that is equal to at least one-
percent of annual total expenditures that do not routinely occur. The Contingency
Fund shall be funded by property tax with a half-mill applied to the county's assessed
value annually, unless the Board of Weld County Commissioners adjusts the amount
in the annual budget process.
• The three-percent TABOR emergency reserve required by Article X, Section 20(5) of
the Colorado Constitution shall be a restricted fund balance in the General Fund in
an amount equal to six-million dollars or three-percent of the TABOR revenue limit,
whichever is greater.
2011-3228
F10053
ADOPTION OF GASB 54 STANDARDS AND APPLICATIONS
PAGE 3
The above and foregoing Resolution was, on motion duly made and seconded, adopted
by the following vote on the 19th day of December, A.D., 2011, nunc pro tunc January 1, 2011.
BOARD OF COUNTY COMMISSIONERS
WE,D COUNTY, COLOR// DO
ATTEST: ( 7 � /
"Barbara Kirkmeyer, Ch it
Weld County Clerk to the Board - �'—
�� Sean Con ay, Pro-Tem
Deputy CI-1 k to the Board �l' 4 L I/
0
e. li F. Garcia
APPD • F•RM: �oC
fir. ► vid . Long i
un . torney ��r _ F, �cv(.1<l yvCh C'i'`LOh
'ouglas Rademach-r
Date of signature: /-/
2011-3228
FI0053
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