Sarasota County, Florida Notes to Financial Statements September 30, 2024 measurement of the SBITA liability. The future SBITA payments are discounted using the interest rate implicit in the SBITA contract. If the interest rate is not available, the County uses its incremental borrowing rate. X. IMPLEMENTATION OF GOVERNMENTAL ACCOUNTING STANDARDS STATEMENTS The County implemented the following GASB Statements during the fiscal year ended September 30, 2024: (1) GASB Statement No. 100, “Accounting Changes and Error Corrections – an Amendment of GASB Statement No. 62”, provides clarity of GASB Statement No. 62 by improving the accounting and financial reporting requirements for accounting changes and error corrections, which will result in greater consistency in application in practice. In turn, more understandable, reliable, relevant, consistent, and comparable information will be provided to financial statement users for making decisions or assessing accountability. In addition, the display and note disclosure requirements will result in more consistent, decision useful, understandable, and comprehensive information for users about accounting changes and error corrections. This Statement is effective for the fiscal year ending September 30, 2024. Y. FUND BALANCE REPORTING AND GOVERNMENTAL FUND-TYPE DEFINITIONS Fund Balances are limited to the governmental funds and are reported in the Governmental fund financial statements in the following classifications: Non Spendable Fund Balance - Amounts that are (a) not in spendable form or (b) legally or contractually required to be maintained intact. Restricted Fund Balance - Amounts that can be spent only for specific purposes stipulated by (a) external resource providers such as creditors (by debt covenants), grantors, contributors, or laws and regulations of other governments; or (b) imposed by law through constitutional provisions or enabling legislation. Committed Fund Balance - Amounts that can be used only for the specific purposes determined by a formal action of the Commissioners, the County’s highest level of decision making authority, with formal action occurring prior to fiscal year-end. Commitments may be changed or lifted only by the Commissioners taking the same formal action (resolution) that imposed the constraint originally. Assigned Fund Balance - Includes spendable fund balance amounts, pursuant to the Financial Reserves Policy Resolution 2022-198, established by the Chief Financial Management Officer or their designee that are intended to be used for specific purposes that are neither considered restricted or committed. Unassigned Fund Balance - Represents the residual surplus fund balance in the general fund in excess of the four components described above (nonspendable, restricted, committed, or assigned balances). Governmental funds, aside from the general fund, are not permitted to carry a positive unassigned fund balance, but may include a deficit balance for situations in which expenditures exceed non spendable, restricted, committed, or assigned fund balances for those specific purposes. The County spends restricted amounts first, when both restricted and unrestricted fund balances are available, unless prohibited by legal documents, grant agreements or contracts. Additionally, the County uses committed fund balance, followed by assigned fund balance and then unassigned fund balance when expenditures are incurred for purposes for which amounts in any of the unrestricted fund balance classifications could be used. 93
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