This is what I have in my notes:
The 5 fund balance classifications are:
-Non-spendable Fund Balance: Funds that cannot be spent due to legal or contractual restrictions or are not in spendable form (Inventory, pre-paids, N/R)
-Restricted Fund Balance: Funds that are either externally restricted for a specific purpose or restricted by law.
-Committed Fund Balance: Fund committed for a specific purpose by formal government action.
-Assigned Fund Balance: Funds that are neither restricted nor committed, but they are constrained by the governments INTENT to be used for a specific purpose. Includes all positive amounts in the other funds that are NOT restricted, committed, or non-spendable and amounts in the general fund that are assigned to be used for a specific purpose.
-Unassigned Fund Balance: Represents the general fund’s fund balance that is not restricted, committed, or assigned to a specific purpose.
Haha… not really a good explanation. let me check the Becker final review explanations:
B. Restricted
Restricted fund balances represent resources whose use has been limited by such extemal sources
as creditors (e.g., debt covenants), contributors, other govemments, laws, constitutional provisions, or
enabling legislation.
C. Committed
Committed fund balances represent resources that can only be used for specific purposes pursuant
to constraints imposed by formal action of the govemment's highest level of decision-making
authority.
AUD: 84
REG: 84
BEC: 79
FAR: 83
.