Board of Directors
Fund Balance Policy
The Board of Directors has recognized the need to establish a general operations reserve fund balance amount in order to comply with the Minnesota Uniform Accounting and Reporting Standards (UFARS). Four Directions Charter School will work toward maintaining a 20% fund balance as a percentage of yearly general fund expenditures for each school year. Excess year end cash will not be allocated in the following year budgets until the target fund balance is achieved, unless specifically directed by the Board of Directors.
The fund balance to be used is presented in the audited financial statement. The percentage will be calculated as follows:
> Prior Year Audited General Fund Balance;
> Current Year General Fund Surplus;
> Total Current Year General Fund Expenditures.
During the annual budget process, the Board of Directors will review the fund percentage in light of current state holdback provisions and other financial circumstances and will set annual goals to attain the targeted fund balance.
Adopted 10-29-08
