La. Admin. Code tit. 28 § XLI-1105

Current through Register Vol. 50, No. 11, November 20, 2024

Section XLI-1105 - Fund Balance Codes

A. These accounts identify the excess of a fund over its liabilities. Portions of that balance may be reserved for future use. (Per GASB 54, fund balance codes 790 through 798 are required for financial statements for periods beginning after June 15, 2010; codes used prior to fiscal year 2010-11 will be maintained for historical purposes.)

1. 711 Investment in Capital Assets, Net of Related Debt-this account is used to record the net asset component invested in capital assets, net of related debt, which represents total capital less accumulated depreciation less directly related to capital assets. This account is to be used in proprietary funds only.

2. 730 Reserved-Retained Earnings-The accumulated earnings of the proprietary funds that have been retained in the fund and that are reserved for a specific purpose. One example would be funds reserved for the future purchase of equipment.

3. 740 Unreserved-Retained Earnings-The accumulated earnings of the proprietary funds that have been retained in the fund and that are not reserved for any specific purpose.

4. 751 Reserve for Inventories-a reserve representing that portion of a fund balance segregated to indicate that assets equal to the amount of the reserve are tied up in inventories and are, therefore, not available for appropriation. The use of this account is optional unless the purchase method of accounting for inventory is used.

5. 752 Reserve for Prepaid Items-a reserve representing that portion of a fund balance segregated to indicate that assets equal to the amount of the reserve are tied up on prepaid expenses and are, therefore, not available for appropriation. The use of this account is optional.

6. 753 Reserve for Encumbrances-a reserve representing that portion of a fund balance segregated to provide for unliquidated encumbrances, including those automatically carried over from prior years by law. Separate accounts may be maintained for current and prior-year encumbrances.

7. 760 Reserved-Fund Balance-a reserve representing that portion of a fund balance segregated to indicate that assets equal to the amount of the reserve are obligated and are, therefore, not available for appropriation. This would include funds that have met the availability criteria, as well as any other provider provisions that may be required, but have not yet been expended. It is recommended that a separate reserve be established for each special purpose. One example of a special purpose would be restricted Federal programs.

8. 770 Unreserved - Undesignated Fund Balance-the excess of the assets of a fund over its liabilities and fund reserves.

9. 780 Unreserved-Designated Fund Balance-a designation representing that portion of the fund balance segregated to indicate that assets equal to the amount of the designation have been earmarked by the governing board or senior management for a bona fide purpose in the future, such as general contingencies or for equipment replacement.

10. 790 Nonspendable Fund Balance-amounts that are not in a spendable form (such as inventories and prepaid items) and other amounts that are legally or contractually required to be maintained intact (such as principal of a permanent fund).

11. 795 Restricted Fund Balance-amounts constrained to specific purposes by their providers such as grantors, bondholders, and higher levels of government, through constitutional provisions, or by enabling legislation.

12. 796 Committed Fund Balance-amounts constrained to specific purposes by a government itself, using its highest level of decision-making authority; to be reported as committed, amounts cannot be used for any other purpose unless the government takes the same highest-level actions to remove or change the constraint.

13. 797 Assigned Fund Balance-amounts a government intends to use for a specific purpose; intent can be expressed by the governing body or by an official or body to which the governing body delegates the authority.

14. 798 Unassigned Fund Balance-amounts that are available for any purpose; these amounts are reported only in the general fund.

La. Admin. Code tit. 28, § XLI-1105

Promulgated by the Board of Elementary and Secondary Education, LR 26:483 (March 2000), amended LR 27:1684 (October 2001), repromulgated LR 34:1388 (July 2008), amended LR 36:1533 (July 2010), LR 37:1386 (May 2011).

AUTHORITY NOTE: Promulgated in accordance with R.S. 17:6(A)(10).