fund balance policy review tuesday, march 11 th 2014
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Fund Balance Policy Review Tuesday, March 11 th 2014. Christopher M. Quinn , MACC, CPA, CFE, CGFO, CGMA Finance Director. Purpose of Policy. Establish level of “Working Capital” (cash) in operating & other funds Hedge against sudden decreases in revenue or unexpected expenditures - PowerPoint PPT PresentationTRANSCRIPT
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Fund Balance Policy Review
Tuesday, March 11th 2014
Christopher M. Quinn, MACC, CPA, CFE, CGFO, CGMAFinance Director
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Purpose of Policy
Establish level of “Working Capital” (cash) in operating & other funds
Hedge against sudden decreases in revenue or unexpected expenditures
Provide guidance for increasing/decreasing levels of fund balance
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Why Update? Changes in GASB terminology
Net Assets = Net Position
Changes in operations or goals of specific funds
Newly established funds to include in the policy
Existing funds not previously included
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Proposed Changes “Net Position” terminology
Tennis Center & Golf Course operations
Establish policy for existing internal services funds
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Tennis & Golf FundsAuditor suggested we consider policy changes to reflect actual operations.Option 1 Eliminate minimum level of fund balance required Support as needed from General Fund
Option 2 Incorporate into General Fund as part of our Parks
& Recreation budget, Examples: Pool, Indian Trails Sports Complex
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Internal Services Funds Fleet Fund
Minimum level set at total amount of estimated fleet replacements, divided by estimated average life
Consistent with current practice
Estimated Fleet Replacements $15,029,238Average Life (years) 7.25
Minimum Fund Balance $2,072,998
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Internal Services Funds Self Insured Health Fund
Minimum level set at 50% of difference between expected cost & maximum cost
Consistent with current practice
Maximum Plan Cost $3,818,896Expected Plan Cost $3,254,774 Difference $564,122
x 50%Minimum Fund Balance $282,061
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Next Step
Approve Resolution updating the Fund Balance Policy
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Questions?