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Indian River County,Florida <br /> Notes To Financial Statements <br /> Year Ended September 30, 2012 <br /> NOTE 19 -FUND BALANCE <br /> GASB Statement 54, Fund Balance Reporting and Governmental Funds Type Definitions, requires the <br /> fund balance for governmental funds to be reported in classifications that comprise a hierarchy based <br /> primarily on the extent to which the government is bound to honor constraints on the specific purposes <br /> for which amounts in those funds can be spent. <br /> A. Categories <br /> There are five categories of fund balance for governmental funds under Statement 54: <br /> Nonspendable—Amounts that cannot be spent because they are not in spendable form or are legally or <br /> contractually required to remain intact. <br /> A <br /> Restricted — Use of these resources is based on the constraints imposed externally by creditors, <br /> S grantors, contributors, or laws and regulations of other governments; or imposed by law through <br /> ( constitutional provisions or enabling legislation. <br /> Committed—Amounts whose use is constrained by the approval of a County ordinance by the Board of <br /> County Commissioners. This category also includes existing resources on hand to satisfy the <br /> obligations that arise from contractual obligations entered into by the Board of County Commissioners. <br /> i Assigned — The Board of County Commissioners is the governing body authorized to assign fund <br /> balance amounts to be used for specific purposes. Amounts appropriated to eliminate a budgetary <br /> deficit in a subsequent year are reported in this category as well. <br /> l Unassigned — Residual amounts in the general fund that do not meet any of the other fund balance <br /> classifications. <br /> B. Fund Balance Policy <br /> On September 21, 2010, the County approved a Fund Balance and Reserve Policy that set forth the <br /> following reserves of fund balance in the General, Transportation, and Emergency Services District <br /> I Funds: <br /> Emergency/Disaster Relief Reserve—A balance of no less than 5% of budgeted operating expenditures <br /> Cfor the current fiscal year will be reserved only for the purpose of responding to natural and man-made <br /> disasters. Disasters include hurricanes, tropical storms, floods, wildfires, or terrorist activities. These <br /> funds can only be used to respond and provide relief after such a disaster. Funds will be replenished <br /> over a five-year period after the completion of the recovery from the disaster. <br /> I <br /> 93 <br />