1. In accordance with the governmental accounting standard,
GASB Statement No. 54, the School Board recognizes the following
five categories of fund balance for financial reporting purposes:
a. Nonspendable Fund Balance – non-cash assets
such as inventories or prepaid items.
b. Restricted Fund Balance – funds legally restricted for
specific purposes, such as grant, food service and expendable
c. Committed Fund Balance – amounts that can only be used
for specific purposes pursuant to a formal vote of the School
d. Assigned Fund Balance – amounts intended by the Board
for specific purposes. The Board can choose to delegate this authority
to the Superintendent or Business Administrator, depending on
the situation. Items that would fall under this type of fund balance
could be encumbrances.
e. Unassigned Fund Balance – residual spendable fund balance
after subtracting all of the above amounts.
2. Committed Fund Balance. The School Board,
as the government’s highest level of decision-making
authority, may commit fund balance by a formal vote prior
to the government’s fiscal year-end for that fiscal
year. Future modification or rescission of committed funds
must likewise be accomplished by a formal vote of the School
Board prior to fiscal year-end.
3. Assigned Fund Balance. The School Board expressly delegates
to the Superintendent, through the Business Administrator,
the authority under this policy to assign funds for particular
4. Spending Prioritizations:
a. When an expenditure is incurred that would qualify
for payment with either restricted or unrestricted funds, it will
be paid from restricted funds.
b. When an expenditure is incurred that qualifies for payment
from either of the three unrestricted fund balance categories,
it will be applied in the following order:
1) Committed, 2) Assigned, and 3) Unassigned.
5. Deficit Fund Balance. At year end if any
of the special revenue funds (ie. food service, vocational
education funds, etc.) has a deficit unassigned fund balance
then the Superintendent is authorized to transfer funds from
the general fund to cover the deficit, providing the general
fund has money to do so.
6. The School Board will turn back any unassigned general
fund balance at year-end to offset the next fiscal year’s
tax rate for the Town.
7. Annual Review. Compliance with the provisions of this policy
shall be reviewed as a part of the annual budget adoption
RSA 32, Municipal Budget Law
RSA 33, Municipal Finance Act
RSA 35, Capital Reserve Funds
Governmental Standards Board Statement 54 (GASB 54)
First Read: 24 May 2012
ADOPTED: 24 May 2012
Reviewed, March 24, 2016
Reviewed, April 27, 2017