Acton-Boxborough Regional School District Notes to Basic Financial Statements Year Ended June 30, 2024
Hayward roads. The annual payment is $183,333 through July 1, 2029, with a final payment of $90,800 on July 1, 2030. At June 30, 2024, the present value of the remaining future payments was $1,190,800.
NOTE 9 – GOVERNMENTAL FUND BALANCE CLASSIFICATIONS
GASB Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions, establishes a hierarchy for fund balance classifications and the constraints imposed on the uses of those resources. GASB 54 provides for two major types of fund balances, which are nonspendable and spendable. Nonspendable fund balances are balances that cannot be spent because they are not expected to be converted to cash or they are legally or contractually required to remain intact. Examples of this classification are prepaid items, inventories, and principal (corpus) of an endowment fund. In addition to the nonspendable fund balance, GASB 54 has provided a hierarchy of spendable fund balances, based on a hierarchy of spending constraints. • Restricted: fund balances that are constrained by external parties, constitutional provisions, or enabling legislation. • Committed: fund balances that contain self-imposed constraints of the government from its highest level of design making authority. • Assigned: fund balances that contain self-imposed constraints of the government to be used for a particular purpose. • Unassigned: fund balances of the general fund that is not constrained for any particular purpose. Massachusetts General Law Ch. 71 §16G½ allows for the establishment of a Stabilization fund for any purpose for which regional school districts may borrow money or for such other district purpose as the commissioner of elementary and secondary education may approve. The stabilization fund may be appropriated by vote of two-thirds of all of the members of the regional district school committee. At year-end, the balance of the capital stabilization fund totaled $664,734 and is reported as restricted fund balance within the General Fund.
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