662.3 - GENERAL FUND BALANCE
The Auburndale Board of Education recognizes that adequate financial reserves and designations are necessary for the sound fiscal management of a school system. The Board further recognizes the need for a portion of the General Fund Balance to be recorded as “Unreserved Designated.” The Unreserved Designated portion of the General Fund Balance will be used to:1. provide adequate working capital sufficient to meet the District’s cash-flow requirements, thus minimizing any cash-flow (short-term) borrowing during the annual operating cycle:
2. function as a safeguard to fund unanticipated expenses that the District might incur or to fund unrealized revenue which may occur but shall not be considered available to meet recurring operational expenses.
In understanding of these financial obligations, the Board of Education shall continually strive to develop operating budgets, which will add sufficient funds each year to the operating fund balance to maintain an adequate level of fund balance.
Adopted: July 22, 1999
Posted: 11/15/2007 11:49:51 am