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• <br />• <br />• <br />AGENDA ITEM 2A <br />STAFF ORIGINATOR Al Rolek <br />MEETING DATE November 28, 2011 <br />TOPIC Consider Fund Balance Policy - GASB Statement #54 — <br />Governmental Fund Balance Reporting and Governmental Fund <br />Type Definitions <br />VOTE REQUIRED <br />BACKGROUND <br />Simple Majority <br />The Governmental Accounting Standards Board (GASB) issued Statement #54 in 2009 with <br />implementation scheduled for financial statements issued for 2011. The objective of this <br />statement is to increase the usefulness of fund balance information by providing clearer <br />classifications that can be consistently applied to all governments. This statement establishes <br />classifications that comprise a hierarchy based primarily on the extent to which a government is <br />bound to observe constraints imposed upon the use of the resources reported in the funds. <br />Staff has prepared a fund balance policy which will comply with GASB Statement #54. The <br />approval of this policy will allow the city to properly implement this pronouncement for the <br />December 31, 2011 financial statements. Staff recommends approval of this policy. <br />OPTIONS' <br />1. Approve Fund Balance Policy as recommended by Governmental Accounting Standards <br />Board Statement #54. <br />2. Refer to Staff for further review. <br />RECOMMENDATION <br />Option 1 <br />P27 <br />