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What is the fund balance of a local government?

What is Fund Balance? Fund balance is an accounting term to describe the difference between a funds assets and liabilities. For cash basis entities (the majority of local governments in Washington), fund balance represents the net cash after all revenues have been deposited and all expenses have been paid.

What is a general fund balance?

Fund balance and net assets are the difference between fund assets and liabilities reflected on the balance sheet or statement of net assets. Because of the current financial resources measurement focus of governmental funds, fund balance is often considered a measure of available expendable financial resources.

What type of account is general fund?

General Fund This includes the Budget Stabilization Account and accounts used to finance local projects, which are generally funded with bond proceeds and do not result in an asset owned by the state. Other Accounts in the General Fund - Used for accounts that have no balances or activity.

What are the three categories of funds used in governmental accounting?

The acquisition, use, and balances of the governments expendable financial resources and related current liabilitiesexcept those accounted for in proprietary fundsare accounted for through governmental funds (general, special revenue, capital project, debt service, and permanent funds).

How is fund balance calculated?

Fund balance and net assets are the difference between fund assets and liabilities reflected on the balance sheet or statement of net assets.

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What is the appropriated fund balance?

Appropriated Fund Balance The amount of fund balance (assigned, restricted or unassigned) that management desires to legally authorize as a financing source to help fund specific expenditures. Requires legal action by the Board, to authorize the use of fund balance for a specific purpose.

What does fund balance mean?

Fund balance (Equity) is essentially the difference between assets and liabilities. In general, it is the balance remaining after the assets have been used to satisfy the outstanding liabilities.

What is the budget fund balance?

With budget balances and fund balances, there are two key differences. The first is that a fund balance is the life-to-date net worth of a fund, measured by total assets minus total liabilities. A budget balance, on the other hand, is the amount that remains of the budget that was set for a specific time period.

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