Policy 701.04:   Governmental Accounting Practices & Regulations

Original Adopted Date: 06/27/2016 | Last Reviewed Date: 06/19/2023

School district accounting practices will follow state and federal laws and regulations, generally accepted accounting principles (GAAP) and the uniform financial accounting system provided by the Iowa Department of Education.  As advised by the school district’s auditor, determination of liabilities and assets, prioritization of expenditures of governmental funds and provisions for accounting disclosures shall be made in accordance with governmental accounting standards.

In Governmental Accounting Standards Board (GASB) Statement No. 54, the board identifies the order of spending unrestricted resources applying the highest level of classification of fund balance – restricted, committed, assigned, and unassigned – while honoring constraints on the specific purposes for which amounts in those fund balances can be spent.  A formal board action is required to establish, modify and or rescind a committed fund balance.  The resolution will state the exact dollar amount.  In the event, the board chooses to make changes or rescind the committed fund balance, formal board action is required.

The Board authorizes the [superintendent or board secretary] to assign amounts to a specific purpose in compliance with GASB 54.  An ‘assigned fund balance’ should also be reported in the order of spending unrestricted resources, but is not restricted or committed.  

It is the responsibility of the superintendent to develop administrative regulations implementing this policy.  It is also the responsibility of the superintendent to make recommendations to the board regarding fund balance designations.   

Note:  This policy is an optional policy.  Should the board not adopt a policy implementing GASB54, the default is to reduce – committed, assigned and unassigned fund balances – in that order.  Adoption of a policy gives boards the ability to have greater control over their fund balances.


Legal Reference: Iowa Code §§ 257.31(4); 279.8; 297.22-.25; 298A.


I.C. Iowa Code Description
Iowa Code  § 257.31 Finance Program – Committee
Iowa Code  § 279.8 Directors – General Rules – Bonds of Employees
Iowa Code  § 297 School Houses/Sites
Iowa Code  § 298A School District Fund Structure

Cross References

Code Description
701.03 Financial Records