he District shall strive to maintain a balance in the general fund that closely approximates the optimum fund balance amount prescribed by TEA, as reported in the annual financial and compliance report. T
he District’s Fund Balance Policy is found in Board Policy CE(Local) available at http://pol.tasorg/Policy/Download/637?filename=CE(LOCAL).pdf
Districts use the General Fund to pay expenses related to instructing students.
Within the General Fund: Assets – Liabilities = FUND BALANCE
The amount reported as district’s un-audited fund balance is a snapshot.
Fund balances will fluctuate daily. F
und balances shall be comprised of several components:
“Nonspendable, “Restricted”, “Committed”, “Assigned”, or “Unassigned.”
By resolution, the Board may commit a portion of the fund balance for a specific purpose.
The committed portion of the fund balance should be spent for the purposes specified; however, the commitment may be amended by the Board at any time.
The Superintendent or designee shall be authorized to assign a portion of the fund balance as may be required to meet the financial needs of the District.
Fund balances are the culmination of the board’s financial decisions over many years.
A savings account
A rainy day fund
The result of unduly high taxes
Lower interest rates on district bonds
Unforeseen expenditures & disasters
Ongoing support for educational programs
The Government Finance Officers Association (GFOA) recommends an unassigned fund balance of “no less than two months of…regular general revenue operating expenditures.”
The Texas Education Agency’s (TEA) optimum fund balance calculation requires school districts to add two months of cash disbursements to amounts needed to cover any cash flow deficits.
McAllen ISD General Fund Balance at end of fiscal year 2016-2017 was $86,762,732.
The unassigned portion of McAllen ISD’s Fund Balance at end of fiscal year 2016-2017 was $53,429,288.
Our district’s fund balance meets the TEA standard.
n June 19, 2017, the Board of Trustees approved the 2017-2018 school year budget.
This budget uses $5,251,415 for carry forward projects (projects that were started in prior fiscal years).