GENERAL FUND RESERVE
SCOPE AND DEFINITIONS
The General Fund Reserve policy applies to reserves in the general fund only, and not any other funds of the Bossier Parish School Board. Within this policy, reserves are defined as the excess of assets over liabilities in the general fund. Reserves shall be categorized as:
use imposed by third parties)
(imposed by the Bossier
itself by formal action
of decision making authority, which
itself to earmark fund for
an intended use, usually
Unassigned (residual fund balance remaining after considering the other four categories)
The purpose of the General Fund Reserve policy shall be to:
contingencies, such as
natural disasters, unpredicted one-time
revenue shortfalls, or other events
needs that were
stability and flexibility
to respond to unexpected
interest expense by building
then using them for intended
purposes or to
income by investing reserves; and
Ensure cash is available to sustain services when revenues are unavailable.
RESERVE TARGET LEVELS
The Bossier Parish School Board shall maintain unassigned general fund reserves of 12% of general fund budgeted expenditures and is committed to an unassigned general fund reserve target of 15%.
FUNDING AND REPLENISHING THE TARGET AMOUNT
Funding of the general fund balance target will generally come from excess revenues over expenditures and 3% of increased collections from ad valorem taxes renewed to the original millage rates.
AUTHORITY OVER RESERVES
The School Board maintains authority over fund balance reserves and approves both the assignment and use of reserves. The Superintendent shall be responsible for monitoring reserve levels and reporting results of operations, including a statement of revenues and expenditures periodically throughout the year.
New policy: March 17, 2016
Ref: La. Rev. Stat. Ann. §§17:88, 17:89, 17:89.1, 39:1304
Board minutes, 3-17-16
Bossier Parish School Board