Policy: 6022

Section: 6000 - Management Support

Title: Minimum Fund Balance

Status: Active

Adopted: September 30, 2014

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Minimum Fund Balance

The district recognizes the importance of maintaining a prudent fund balance in the general fund to ensure operational cash flow needs are met, to set aside resources for known obligations and to help protect against unforeseen circumstances. Accordingly, the district adopts this policy in regards to those portions of fund balance that are in spendable form but are not legally restricted as to their use from outside sources.

Annually, the superintendent or designee will present a general fund budget that includes a commitment of at least four (4) percent of prior year expenditures towards a minimum fund balance.

Cross Reference:
Policy 6020	System of Funds and Accounts
Policy 6040	Expenditures in Excess of Budget
Legal References:
RCW 28A.330.070	School district as self-insurer – Authority
RCW 28A.505	School Districts’ Budgets
RCW28A.505.130	Budget – Requirement for balancing estimated expenditures

Adoption Date: 09.30.14

Ferndale School District

Revised: