COM 0770.000 2020-2022 - Laserfiche WebLink

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COUNTY OF HAWAII Notes to the Basic Financial Statements June 30,2021 reported amounts of revenues,expenditures, and other financing sources and uses during the reporting period. Actual results could differ from those estimates. Fund Balances When both restricted and unrestricted fund balances are available for use,it is the County's policy to use restricted fund balance first,then unrestricted fund balance. Furthermore, committed fund balances are reduced first, followed by assigned amounts, and then unassigned amounts when expenditures are incurred for purposes for which amounts in any of those unrestricted fund balance classifications can be used. The County reports the following classifications: Nonspendable Fund Balance—Nonspendable fund balances are amounts that cannot be spent because they are either not in spendable form,or, for legal or contractual reasons, must be kept intact. The County has inventory and prepaids included in their nonspendable fund balance. Restricted Fund Balance—Constraints placed on the use of these resources are either externally imposed by creditors(such as through debt covenants),grantors,contributors or other governments or are imposed by law(under the Hawaii Revised Statutes or County of Hawaii Charter). Committed Fund Balance—Committed Fund Balances are amounts that can only be used for specific purposes as a result of constraints imposed by the County Council via ordinances and the County Code and can only be undone via the same manner. The committed fund balance of the General Fund includes the portion of fund balance committed to budget stabilization. The budget stabilization portion is authorized under County Code §2-219 to §2-223 and additions are made via the County budget or subsequent budget amendments. The fund balance may only be used when there is a reduction in budgeted revenue and the director of finance determines that such use is necessary to prevent a reduction in the level of public services. Assigned Fund Balance—Assigned fund balances are amounts that are constrained by the County's intent as determined by the Mayor but are neither restricted nor committed. The County's only assigned fund balances are in the General Fund and Capital Projects Fund and the majority consists of the portion of fund balance that is intended to balance the subsequent year's budget,which is conveyed by the Mayor via his approval of allotment requests and his approval of the current year's fund balance amount to be included in the submittal for next year's annual budget ordinance. Unassigned Fund Balance—This is the residual classification of the General Fund. The General Fund is the only fund that could potentially report a positive unassigned fund balance. - 59 -