Code No.: 804.5
GOVERNMENTAL ACCOUNTING PRACTICES AND REGULATIONS
Policy: School district accounting practices will follow state and federal laws and regulations,
generally accepted accounting principles (GAAP) and the uniform financial accounting system
provided by the Iowa Department of Education. As advised by the school district’s auditor,
determination of liabilities and assets, prioritization of expenditures of governmental funds and
provisions for accounting disclosures shall be made in accordance with governmental accounting
In Governmental Accounting Standards Board (GASB) Statement No. 54, the board identifies
the order of spending unrestricted resources applying the highest level of classification of fund
balance – restricted, committed, assigned, and unassigned – while honoring constraints on the
specific purposes for which amounts in those fund balances can be spent. A formal board action
is required to establish, modify and or rescind a committed fund balance. The resolution will
state the exact dollar amount. In the event, the board chooses to make changes or rescind the
committed fund balance, formal board action is required.
The Board authorizes the Superintendent to assign amounts to a specific purpose in compliance
with GASB 54. An ‘assigned fund balance’ should also be reported in the order of spending
unrestricted resources, but is not restricted or committed.
It is the responsibility of the superintendent to develop administrative regulations implementing
this policy. It is also the responsibility of the superintendent to make recommendations to the
board regarding fund balance designations.
Legal Reference: Iowa Code §§ 257.31(4); 279.8; 297.22-.25; 298A (2013).
Code No.: 804.5