Reserve for Encumbrances

Purpose:

Allows outstanding encumbrances remaining at the end of a school year to be carried over to the next school year. Encumbrances represent bona fide obligations.

Account Code:

A821

Source of Funds:

Establishing or funding the reserve does not require board resolution or voter approval.

Ideal Balance:

Equivalent to actual identified obligations.

The amount in the reserve for encumbrances at the end of the school year is appropriated from existing fund balance to cover the financial obligations represented by the encumbrances.

Balance at June 30, 2021:

$648,772