FILE:  DCF

GENERAL FUND’S FUND BALANCE

The Monroe City School Board, in its budget preparations, feels that the General Fund’s fund balance should not be excessive, nor should the fund balance be too low as to put the School Board in a financial position of not being able to meet its current obligations or being able to meet its unanticipated large dollar emergency obligations.  The School Board further feels that the fund balance should be large enough to continue the school system’s daily operations during a financial adjustment period for declining revenues and/or increasing expenditures.

Therefore, the School Board sets the maximum fund balance of the General Fund as not to exceed fifteen percent (15%) of the General Fund’s total annual expenditures and the minimum fund balance for the General Fund as not to drop below ten percent (10%) of the General Fund’s total annual expenditures.  Every effort should be made to maintain the General Fund’s fund balance within these limits.  The use of General Fund balance below the established minimum limit of ten percent (10%) shall only be for unanticipated or unforeseen events of a non-recurring nature and then only with the approval of the School Board.

Ref:     La. Rev. Stat. Ann. §§17:81, 17:88, 17:89

Monroe City School Board