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<br />ACCOUNTING POLICIES AND PROCEDURES <br /> <br />CITY OF SUNNY ISLES BEACH <br /> <br />BUDGETING <br /> <br />1. APPROPRIATION OF UNRESTRICTED FUND BALANCE <br /> <br />The actual amount of unrestricted fund balance (total of committed fund balance, assigned fund balance and <br />unassigned fund balance) is not known until the completion of the annual audit which takes place between <br />three to six months after the end of the fiscal year being audited. Therefore, these amounts will not be <br />reflected in the annual budget. <br /> <br />2. ESTIMATED BEGINNING FUND BALANCE. <br /> <br />In order to achieve the most accurate estimate possible, the City Manager or designee shall project both <br />Sources of Funds (revenues, prior years unrestricted fund balances carried forward and other financing <br />sources) and Uses of Funds (operating and non-operating expenditures), including accruals, for each <br />department in each governmental fund through September 30th of the then current fiscal year. These <br />projections will be shown in a separate column entitled "Projections" for each fund in the proposed, <br />tentative and final budget documents. The difference between the estimated actual sources of funds and <br />estimated actual uses of funds is the calculated estimated beginning fund balance for the subsequent fiscal <br />year. If planned for use in the subsequent fiscal year, committed and assigned fund balance may be <br />included in the estimated beginning fund balance. <br /> <br />3. ESTIMATED ENDING FUND BALANCE. <br /> <br />For the year being budgeted, a calculation of estimated ending fund balance shall also be made. This <br />calculation shall be the difference between the budgeted sources of funds and the budgeted uses of funds <br />as described above. <br /> <br />Since the uses of funds are restricted, committed or assigned in all other governmental fund types there is <br />no policy to the amount of ending fund balance unless the project is completed and the fund should be <br />closed. In this situation, a residual equity transfer will be made to zero-out any remaining fund balance. <br /> <br />If, after the annual audit, there is a balance in the unassigned general fund balance, this balance may be <br />used in one or a combination of the following ways: <br /> <br />a) Left in the general fund to earn interest and roll forward into the subsequent year's beginning <br />fund balance; <br /> <br />b) Appropriated by resolution of City Commission for a one-time expenditure or opportunity that <br />does not increase recurring operating costs; <br /> <br />c) Committed to establish or increase a formal stabilization arrangement or reserve (including but <br />not limited to economic stabilization, contingency reserves or disaster reserves); or <br /> <br />d) Appropriated for start-up expenditures of new programs undertaken at mid-year, provided that <br />such action is considered in the context of Commission-approved multiyear projections of <br />revenues and expenditures. <br /> <br />FUND BALANCE POLICY <br />