730 Procedure: Fund Balance

I.    When the general fund unappropriated balance is projected to decrease below 5% of the adopted general fund expenditure budget, the District will initiate one or more of the following measures to ensure that the year-end general fund unappropriated balance for the budget year in question does not fall below 5%.

A.    Reduce expenditures through implementation of cost containment measures.

B.    Seek opportunities to increase revenue, including considering appropriate fee increases and options to increase enrollment.

C.    If permitted by state law, request additional revenue from voters through an increase in the operating referendum or other financial options.

D.    A combination of the above options.

II.    When the fund balance in the general fund budget approaches 5%, the District will implement other budget control measures, which do not adversely affect delivery of instructional programs.

III.    The fund balance policy will not apply to the administration of the Food Service Operating fund and the Community Education Services fund which are guided by UFARS (Uniform Financial Accounting Reporting System).

IV.    Regular updating and reporting of the long-range budget projection by administration is an important component to management of fund balance.  Budget updates may help identify resources available for program enhancement or will determine if cost containment efforts are required.

Created/Revised
Revised:  6/7/11
Created:  3/15/05