Financial Statements – 2012-2013

COURTLAND FIRE PROTECTION DISTRICT
BASIC FINANCIAL STATEMENTS
With
Independent Auditor’s Report Thereon
JUNE 30, 2013 AND 2012
COURTLAND FIRE PROTECTION DISTRICT
Audited Financial Statements
and Other Reports
June 30, 2013 And 2012
Table of Contents
Independent Auditor’s Report ………………………………………………………………………………………………. 1-2
Government-wide Financial Statements:
Statements of Net Position ………………………………………………………………………………………………… 3
Statement of Activities – Year Ended June 30, 2013 ……………………………………………………………. 4
Statement of Activities – Year Ended June 30, 2012 ……………………………………………………………. 5
Fund Financial Statements:
Balance Sheets – General Fund …………………………………………………………………………………………. 6
Reconciliation of the Balance Sheet to the Government-wide Statement
of Net Position – General Fund ……………………………………………………………………………………….. 7
Statements of Revenues, Expenditures, and Changes in Fund Balances –
General Fund ………………………………………………………………………………………………………………… 8
Reconciliation of the Statement of Revenues, Expenditures, and Changes
in Fund Balances to the Government-wide Statement of Activities –
General Fund ………………………………………………………………………………………………………………… 9
Statement of Revenues, Expenditures, and Changes in Fund Balance –
Budget and Actual – General Fund – Year Ended June 30, 2013 ……………………………………….. 10
Statement of Revenues, Expenditures, and Changes in Fund Balance –
Budget and Actual – General Fund – Year Ended June 30, 2012 ……………………………………….. 11
Notes to Financial Statements …………………………………………………………………………………………… 12-19
1
INDEPENDENT AUDITOR’S REPORT
To the Board of Directors
Courtland Fire Protection District
Courtland, California
We have audited the accompanying financial statements of the Courtland Fire Protection District as of and for the year ended June 30, 2013, and the related notes to the financial statements, which collectively comprise the District’s basic financial statements as listed in the table of contents.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
Auditor’s Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
2
To the Board of Directors
Courtland Fire Protection District
Opinions
In our opinion, except for the effects of the matter described in the “Basis for Qualified Opinion on General Fund” paragraph, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and the aggregate remaining fund information of the Pioneer Fire Protection District as of June 30, 2013, and the respective changes in financial position for the year then ended in accordance with accounting principles generally accepted in the United States of America.
Other Matters
Other Information
The Management’s Discussion and Analysis is not a required part of the financial statements but is supplemental information required by the Government Auditing Standards Board. Management has elected to omit the Management’s Discussion and Analysis.
Fechter & Company, Certified Public Accountants
April 15, 2015
Sacramento, CA
COURTLAND FIRE PROTECTION DISTRICT
Statements of Net Position
June 30, 2013 and 2012
2013
2012
ASSETS
Cash
153,682$
214,899$
Receivables:
Taxes and interest from county
1,175
585
Grant receivable
8,416
-
Capital assets, net
792,520
842,677
Total Assets
955,793
1,058,161
LIABILITIES
Accounts payable and accrued expenses
3,232$
88,957$
Total Liabilities
3,232
88,957
NET POSITION
Invested in capital assets
792,520
842,677
Unrestricted
160,041
126,527
Total Net Position
952,561$
969,204$ The accompanying notes are an integral part of these financial statements.
3
COURTLAND FIRE PROTECTION DISTRICT
Statement of Activities
For the Year Ended June 30, 2013
Program Revenues
Net (Expenses)
Operating
Revenue -
Grants and
Governmental
Expenses
Contributions
Activities
FUNCTION/PROGRAMS
Governmental Activities:
Public protection
158,726$
20,478$
(138,248)$
Total Governmental Activities
158,726$
20,478$
(138,248)
GENERAL REVENUES
Property taxes
120,458
Use of money
739
Other
408
Total general revenues
121,605
Change in net position
(16,643)
Net position at beginning of year
969,204
Net position at end of year
952,561$ The accompanying notes are an integral part of these financial statements.
4
COURTLAND FIRE PROTECTION DISTRICT
Statement of Activities
For the Year Ended June 30, 2012
Program Revenues
Net (Expenses)
Operating
Revenue -
Grants and
Governmental
Expenses
Contributions
Activities
FUNCTION/PROGRAMS
Governmental Activities:
Public protection
135,296$
53,654$
(81,642)$
Total Governmental Activities
135,296$
53,654$
(81,642)
GENERAL REVENUES
Property taxes
114,913
Use of money
490
Other
210
Total general revenues
115,613
Change in net position
33,971
Net position at beginning of year
935,233
Net position at end of year
969,204$ The accompanying notes are an integral part of these financial statements.
5
COURTLAND FIRE PROTECTION DISTRICT
Balance Sheets – General Fund
June 30, 2013 and 2012
2013
2012
ASSETS
Cash
153,682$
214,899$
Receivables:
Taxes and interest from county
9,591
585
Total Assets
163,273
215,484
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable and accrued expenses
3,232$
88,957$
Total Liabilities
3,232
88,957
Fund Balances:
Reserved for capital assessment projects
-
-
Unreserved:
Designated
Undesignated
160,041
126,527
Total Fund Balances
160,041
126,527
Total Liabilities and Fund Balances
163,273$
215,484$ The accompanying notes are an integral part of these financial statements.
6
COURTLAND FIRE PROTECTION DISTRICT
Reconciliation of the Balance Sheet to the Government-Wide
Statement of Net Assets – General Fund
June 30, 2013 and 2012
Fund balances – total governmental funds, June 30, 2013
160,041$
Amounts reported for governmental activities in the
statement of net position are different because:
Capital assets used in governmental activities are not
current financial resources and therefore are not reported
in the funds:
Net governmental capital assets
792,520
Net position – governmental activities, June 30, 2013
952,561$
Fund balances – total governmental funds, June 30, 2012
126,527$
Amounts reported for governmental activities in the
statement of net position are different because:
Capital assets used in governmental activities are not
current financial resources and therefore are not reported
in the funds:
Net governmental capital assets
842,677
Net position – governmental activities, June 30, 2012
969,204$ The accompanying notes are an integral part of these financial statements.
7
COURTLAND FIRE PROTECTION DISTRICT
Statements of Revenues, Expenditures, and
Changes in Fund Balances – General Fund
For the Years Ended June 30, 2013 and 2012
2013
2012
REVENUES
Taxes
120,458$
114,913$
Use of money
739
490
Other revenues
20,886
53,864
Total revenues
142,083
169,267
EXPENDITURES
Current:
Public protection
108,569
91,908
Capital outlay
-
67,692
Total expenditures
108,569
159,600
Net change in fund Balance
33,514
9,667
Fund balances at beginning of year
126,527
116,860
Fund balances at end of year
160,041$
126,527$ The accompanying notes are an integral part of these financial statements.
8
COURTLAND FIRE PROTECTION DISTRICT
Reconciliation of the Statement of Revenues,
Expenditures, and Changes in Fund Balances to the
Government-Wide Statement of Activities – General Fund
June 30, 2013 and 2012
Net changes in fund balances – total governmental funds for the
33,514$
year ended June 30, 2013. Amounts reported for governmental
activities in the statement of activities are different because:
Governmental funds report capital outlay as expenditures. In the
statement of activities, however, the cost of those assets is
allocated over their estimated useful lives as depreciation expense.
Capital outlay
-
Depreciation expense
(50,157)
Change in net position – governmental activities for the year
ended June 30, 2013
(16,643)$
Net changes in fund balances – total governmental funds for the
9,667$
year ended June 30, 2012. Amounts reported for governmental
activities in the statement of activities are different because:
Governmental funds report capital outlay as expenditures. In the
statement of activities, however, the cost of those assets is
allocated over their estimated useful lives as depreciation expense.
Capital outlay
67,692
Depreciation expense
(43,388)
Change in net position – governmental activities for the year
ended June 30, 2012
33,971$ The accompanying notes are an integral part of these financial statements.
9
COURTLAND FIRE PROTECTION DISTRICT
Statement of Revenues, Expenditures, and
Changes in Fund Balance
Budget and Actual – General Fund
For the Year Ended June 30, 2013
Variance
with Final
Budget
Budgeted Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
REVENUES
Taxes
445,975$
445,975$
120,458$
(325,517)$
Use of money
500
500
739
239
Other revenues
200
200
20,886
20,686
Total Revenues
446,675
446,675
142,083
(304,592)
EXPENDITURES
Current:
Public Protection:
Salaries and benefits
23,432
23,432
21,604
(1,828)
Services and supplies
57,625
57,625
86,965
29,340
Capital outlay
354,000
354,000
-
(354,000)
Total Expenditures
435,057
435,057
108,569
(326,488)
Net Change in Fund Balance
11,618$
11,618$
33,514
21,896$
Fund balances at beginning of year
126,527
Fund Balances at End of Year
160,041$ The accompanying notes are an integral part of these financial statements.
10
COURTLAND FIRE PROTECTION DISTRICT
Statement of Revenues, Expenditures, and
Changes in Fund Balance
Budget and Actual – General Fund
For the Year Ended June 30, 2012
Variance
with Final
Budget
Budgeted Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
REVENUES
Taxes
232,665$
154,472$
114,913$
(39,559)$
Use of money
500
2,800
490
(2,310)
Other revenues
4,300
2,000
53,864
51,864
Total revenues
237,465
159,272
169,267
9,995
EXPENDITURES
Current:
Public Protection:
Salaries and benefits
27,203
27,203
18,008
(9,195)
Services and supplies
124,137
69,685
73,900
4,215
Capital outlay
86,125
157,249
67,692
(89,557)
Total expenditures
237,465
254,137
159,600
(94,537)
Net change in fund balance
-$
(94,865)$
9,667
104,532$
Fund balances at beginning of year
116,860
Fund balances at end of year
126,527$ The accompanying notes are an integral part of these financial statements.
11
COURTLAND FIRE PROTECTION DISTRICT
Notes to Financial Statements
June 30, 2013 and 2012
12
NOTE 1: SIGNIFICANT ACCOUNTING POLICIES
The financial statements of Courtland Fire Protection District (District) have been prepared in conformity with accounting principles generally accepted in the United States of America as applied to government units. The Governmental Accounting Standards Board (GASB) is the accepted standard setting body for establishing governmental accounting and financial reporting principles. The most significant accounting policies of the District are described below.
A. Background
The District is an independent special district within the County of Sacramento and was established under Health and Safety Code Section 13801 on January 25, 1942. It is governed by a three member Board of Directors who are elected to four year terms. The District maintains two fire stations, one located in Courtland and the other in Hood. The staff consists primarily of volunteers. The District provides fire protection and rescue services to an area of approximately thirty-three square miles that has a population of approximately 1,300 residents. Automatic and mutual aid agreements exist with all other fire agencies within the County of Sacramento. Mutual aid agreements also exist with other counties and the State of California under the master mutual aid program administered by the Office of Emergency Services of the State of California. The Treasurer of Sacramento County serves as the District’s treasurer.
B. Basis of Presentation
Government-Wide Financial Statements
The government-wide financial statements (i.e., the statement of net position and the statement of activities) report information on all of the non-fiduciary activities of the primary government and its component units. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support. The District has no business-type activities.
The statement of activities demonstrates the degree to which the direct expenses of a given function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include 1) charges to customers who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Interest and other items not properly included among program revenues are reported instead as general revenues.
COURTLAND FIRE PROTECTION DISTRICT
Notes to Financial Statements
June 30, 2013 and 2012
13
NOTE 1: SIGNIFICANT ACCOUNTING POLICIES – continued
B. Basis of Presentation – continued
Government-Wide Financial Statements – continued
The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are reported when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows.
When both restricted and unrestricted resources are available for use, it is the government’s policy to use restricted resources first, then unrestricted resources as they are needed.
Fund Financial Statements
The accounts of the District are organized on the basis of funds. A fund is a separate accounting entity with a self-balancing set of accounts. Each fund is established for the purpose of accounting for specific activities in accordance with applicable regulations, restrictions, or limitations.
Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the District considers all revenues other than expenditure reimbursement grants to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. Payable balances consist primarily of payables to vendors.
Property tax revenues and interest earnings associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. All other revenue items are considered to be measurable and available only when cash is received by the District.
The District reports the following major governmental fund type:
General Fund – The General Fund is the general operating fund of the District and accounts for revenues collected to provide services and finance the fundamental operations of the District. The fund is charged with all costs of operations.
COURTLAND FIRE PROTECTION DISTRICT
Notes to Financial Statements
June 30, 2013 and 2012
14
NOTE 1: SIGNIFICANT ACCOUNTING POLICIES – continued
C. Budgets
Budgets are adopted on a basis consistent with generally accepted accounting principles and in accordance with the District’s policy and procedure. Budgetary control is exercised by major object. All budgetary changes during the fiscal year require the approval of the District’s Board of Directors. Unencumbered budget appropriations lapse at the end of the fiscal year.
D. Capital Assets
Capital assets for governmental fund types are not capitalized in the funds used to acquire or construct them. Capital acquisitions are reflected as expenditures in the governmental fund, and the related assets are reported in the government-wide financial statements. Capital assets owned by the District are stated at historical cost or estimated historical cost, if actual historical cost is not available. Contributed capital assets are recorded at their estimated fair market value at the time received. Capital assets are depreciated using the straight-line method over the estimated useful life, which ranges from 5 to 39 years.
It is the District’s policy to capitalize all land, structures and improvements and equipment, except assets costing less than $5,000. Costs of assets sold or retired (and related amounts of accumulated depreciation) are eliminated from the accounts in the year of sale or retirement.
E. Net Position
The Statement of Net Position presents the District’s assets and liabilities, with the difference reported as net position. Net position is reported in three categories.
Invested in Capital Assets – This category groups all capital assets into one component of net assets. Accumulated depreciation reduces the balance in this category.
Restricted Net Position – This category presents external restrictions imposed by creditors, grantors, contributors, laws or regulations of other governments and restrictions imposed by law through constitutional provisions or enabling legislation.
Unrestricted Net Position – This category represents net position of the District not restricted for any project or other purpose.
COURTLAND FIRE PROTECTION DISTRICT
Notes to Financial Statements
June 30, 2013 and 2012
15
NOTE 1: SIGNIFICANT ACCOUNTING POLICIES – continued
F. Reserved and Restricted Fund Equity
Reservations of equity show amounts that are not appropriated for expenditure or are legally restricted for specific uses. The reserves for special assessment projects represents amounts collected between 1994 and 1997 under a Special Assessment District that has now been dissolved. By law, these Assessment District funds may only be used for fire suppression purposes. Designations of unreserved fund balances in governmental funds indicate District management’s tentative plans for the use of financial resources in a future period. Such plans or intent are subject to change and have not been legally authorized or may not result in expenditures.
G. Property Taxes
The County of Sacramento is responsible for the collection and allocation of property taxes. Under California law, property taxes are assessed and collected by the County of Sacramento up to 1% of the full cash value of taxable property based on assessed values on March 1 of the preceding year, plus other increases approved by the voters and distributed in accordance with statutory formula. They become a lien on the first day of the year they are levied. Secured property tax is levied on January 1 and due in two installments, on November 1 and February 1. Unsecured property taxes are levied on July 1 and due on July 31. The District recognizes property taxes when the individual installments are due provided they are collected within 60 days after year end.
The County uses the Alternative Method of Property Tax Apportionment. Under this method of property tax apportionment, the County purchases the delinquent secured taxes at June 30 of each fiscal year. These taxes are accrued as intergovernmental receivables only if they are received from the County within 60 days after year end.
H. Implementation of New Accounting Principles
The District adopted the provisions of GASB Statement No. 63 (GASB 63), Financial Reporting of Deferred Outflows of Resources, Deferred Inflows of Resources, and Net Position. GASB 63 provides financial reporting guidance for deferred outflows of resources, deferred inflows of resources, and net position in a statement of financial position and related disclosures. It also identifies net position as the residual of all other elements presented in a statement of financial position, or the difference between (a) assets and deferred outflows of resources and (b) liabilities and deferred inflows of resources. As implied above, GASB 63 changes the previous classification of net position to net position, and consequently, the statement of net position to the statement of net position. The District had no deferred inflows or outflows of resources as of June 30, 2012 and 2013.
COURTLAND FIRE PROTECTION DISTRICT
Notes to Financial Statements
June 30, 2013 and 2012
16
NOTE 2: CASH
A. Investment Policy
California statutes authorize districts to invest idle or surplus funds in a variety of credit instruments as provided for in the California Government Code, Section 53600, Chapter 4 – Financial Affairs. The District does not have an investment policy that addresses its interest rate risk, credit risk, and concentration of credit risk.
B. Investment in the County of Sacramento’s Investment Pool
The District maintains its cash in Sacramento County’s cash and investment pool which is managed by the Sacramento County Treasurer. The District’s cash balances invested in the Sacramento County Treasurer’s cash and investment pool are stated at amortized cost, which approximates fair value. The amount invested by all public agencies in Sacramento County’s cash and investment pool is $153,682 at June 30, 2013 and $214,899 at June 30, 2012. Sacramento County does not invest in any derivative financial products directly. However, they do invest in Local Agency Investment Fund (LAIF), which does invest in derivative financial products. The Sacramento County Treasury Oversight Committee (Committee) has oversight responsibility for Sacramento County’s cash and investment pool. The Committee consists of ten members as designated by State law. The value of pool shares in Sacramento County that may be withdrawn is determined on an amortized cost basis, which is different than the fair value of the District’s position in the pool. Investments held in the County’s investment pool are available on demand to the District and are stated at cost, which approximates fair value.
C. Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. As of June 30, 2013 and 2012, the weighted average maturity of the investments contained in the County’s investment pool was approximately 212 and 210 days, respectively.
D. Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating issued by a nationally recognized statistical rating organization. The County’s investment pool does not have a rating provided by a nationally recognized rating organization.
COURTLAND FIRE PROTECTION DISTRICT
Notes to Financial Statements
June 30, 2013 and 2012
17
NOTE 2: CASH – continued
E. Custodial Credit Risk
Custodial credit risk is the risk that the government will not be able to recover its deposits or the value of its investments that are in the possession of an outside party. Custodial credit risk does not apply to a local government’s indirect deposits or investments in securities through the use of government investment pools (such as the County’s investment pool).
NOTE 3: CAPITAL ASSETS
Capital asset activity for the year ended June 30, 2013 was as follows:
Balance
July 1, 2012
Additions
Disposals/
Transfers
Balance
June 30, 2013
Capital Assets, Not Being Depreciated
Land
$
67,016
$
-
$
-
$
67,016
Total Capital Assets, Not Being
Depreciated
67,016
-
-
67,016
Capital Assets, Being Depreciated
Building and improvements
729,273
-
-
729,273
Equipment
797,091
-
-
797,091
Total Capital Assets, Being
Depreciated
1,526,364
-
-
1,526,364
Less Accumulated Depreciation for:
Buildings and improvements
(298,227)
(15,868)
-
(314,095)
Equipment
(452,476)
(34,289)
-
(486,765)
Total Accumulated Depreciation
(750,703)
(50,157)
-
(800,860)
Total Capital Assets Being Depreciated, Net
775,661
(50,157)
-
725,504
Total Capital Assets, Net
$
842,677
$
(50,157)
$
-
$
792,520
COURTLAND FIRE PROTECTION DISTRICT
Notes to Financial Statements
June 30, 2013 and 2012
18
NOTE 3: CAPITAL ASSETS – CONTINUED
Capital asset activity for the year ended June 30, 2012 was as follows:
Balance
July 1, 2011
Additions
Disposals/
Transfers
Balance
June 30, 2012
Capital Assets, Not Being Depreciated
Land
$
67,016
$
-
$
-
$
67,016
Total Capital Assets, Not Being
Depreciated
67,016
-
-
67,016
Capital Assets, Being Depreciated
Building and improvements
729,273
-
-
729,273
Equipment
857,898
67,692
(128,499)
797,091
Total Capital Assets, Being
Depreciated
1,587,171
67,692
(128,499)
1,526,364
Less Accumulated Depreciation for:
Buildings and improvements
(282,359)
(15,868)
-
(298,227)
Equipment
(553,455)
(27,521)
128,500
(452,476)
Total Accumulated Depreciation
(835,814)
(43,389)
128,500
(750,703)
Total Capital Assets Being Depreciated, Net
751,357
24,304
-
775,661
Total Capital Assets, Net
$
818,373
$
24,304
$
-
$
842,677
Depreciation expense of $50,157 and $43,389 for the years ended June 30, 2013 and 2012, respectively, was charged to the Public Protection function.
NOTE 4: INSURANCE
The District participates in the Northern California Special District Insurance Authority (NCSDIA), a public entity risk pool of special districts within Northern California, for workers compensation insurance and employers’ liability. NCSDIA is self-insured for the first $200,000 per occurrence and carries excess insurance through California Public Entity Insurance Authority up to $5,000,000 for employers’ liability and the statutory limit for workers compensation. Loss contingency reserves established by NCSDIA are funded by contributions from member agencies. The District pays an annual premium to NCSDIA that includes its pro-rata share of excess insurance premiums, charges for the pooled risk, claims adjusting and legal costs, and administrative and other costs to operate the NCSDIA. NCSDIA retains the ability to assess its members amounts in addition to annual premiums. NCSDIA has never made an additional assessment and is currently fully funded. No provision has been made on these financial statements for liabilities related to possible additional assessments. Comprehensive general and auto liability and property insurance are provided through commercial insurance. Settled claims have not exceeded insurance coverage in any of the past three fiscal years.
COURTLAND FIRE PROTECTION DISTRICT
Notes to Financial Statements
June 30, 2013 and 2012
19
NOTE 5: FUND BALANCES
In February 2009, the GASB issued Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions, which establishes accounting and financial reporting standards for all governments that report governmental funds. Under GASB 54, fund balance for governmental funds should be reported in classifications that comprise a hierarchy based primarily on the extent to which the government is bound to honor constraints on the specific purposes for which amounts in those funds can be spent. Fund balances are now broken out in five categories:
 Nonspendable Fund Balance – this fund balance classification includes amounts that cannot be spent because they are either not in spendable form (i.e. – prepaid expenses) or legally or contractually required to be maintained intact.
 Restricted Fund Balance – this fund balance classification should be reported when there are constraints placed on the use of resources externally (by creditors, grant sources, contributors, etc.) or imposed by law or enabling legislation.
 Committed Fund Balance – this fund balance classification can only be used for specific purposes pursuant to constraints imposed by formal action of the government’s highest level of decision making authority (i.e. – fund balance designations passed by board resolution).
 Assigned Fund Balance – this fund balance classification are amounts that are constrained by the government’s intent to be used for specific purposes, but are neither restricted nor committed.
 Unassigned Fund Balance – this fund balance classification is the residual classification for the general fund.
NOTE 5: SUBSEQUENT EVENTS
Management has reviewed events through April 15, 2015. No significant events have occurred that would substantially affect carrying balances of district assets or liabilities.