BOfficial Change in Fund Balance Classification
Item Details
- Meeting
- January 16, 2017 – Board of Education Meeting
- Category
- 11. Action Items
- Type
- Action item
- Recommended action
- Move to approve the transfer of $1,000,000 in fund balance from the Facilities Maintenance portion of the “Restricted” classification, to the “Unassigned” classification of fund balance.
Motions
Move to approve the transfer of $1,000,000 in fund balance from the Facilities Maintenance portion of the “Restricted” classification, to the “Unassigned” classification of fund balance.
Moved by Penny Vadla · Seconded by Marty Anderson
Yes: Bill Holt, Dan Castimore, Joe Arness, Lynn Hohl, Marty Anderson, Mike Illg, Penny Vadla, Tim Navarre, Zen Kelly
Public Content
Background Information:
Each fiscal year the Kenai Peninsula Borough (KPB) appropriates in-kind funding for the maintenance of school buildings by the KPB Maintenance Department. If all of the appropriated funding is not used, the remainder is placed in the Facilities Maintenance portion of the KPBSD Fund Balance. Those funds have historically been placed in the “Restricted” classification of our fund balance because their usage was restrained for specific use by the KPB Maintenance Department in the maintenance of school buildings. At the end of FY16, the amount accumulated in Facilities Maintenance was $2,288,499.
At their December 6, 2016 meeting, the KPB Assembly took specific action to remove any restrictions on $1,000,000 currently held in Facilities Maintenance in the “Restricted” classification, and to allow the transfer of those funds to the “Unassigned” classification of our fund balance to allow for KPBSD usage of the funds.
It is important to note that this is only an internal transfer between Fund Balance classifications and is not a change or increase in overall funding from KPB to KPBSD. The attached chart illustrates the effect of this transfer.
Administration is recommending that the KPBSD School Board take official action to transfer $1,000,000 in fund balance from the Facilities Maintenance portion of the “Restricted” classification, to the “Unassigned” classification.