Sarasota County, Florida Notes to Financial Statements September 30, 2021 (4) Statement No. 93, “Replacement of Interbank Offered Rates” addresses the global reference rate reform and the replacement of Interbank offered Rates (IBOR) in its current form at the end of 2021. The goal of this statement is to address certain accounting and financial reporting implications of the replacement of an IBOR, the most notable of which is the London Interbank Offered Rate (LIBOR). Under this Statement, governments are required to amend to replace financial instruments for the purpose of replacing LIBOR with other reference rates, by either changing the reference rate or adding or changing fallback provisions related to the reference. This statement was fully implemented for fiscal year 2021 with no impact on the County’s financial statements. (5) Statement No. 97, “Certain Component Unit Criteria, and Accounting and Financial Reporting for Internal Revenue Code Section 457 Deferred Compensation Plans – an amendment of GASB Statements No. 14 and No. 84, and supersession of GASB Statement No. 32”, addresses (1) consistency and comparability related to the reporting of fiduciary component units; (2) mitigate costs associated with the reporting of certain defined contribution pension plans, defined contribution or postemployment benefit (OPEB) plans, and employee benefit plans other than pension plans or OPEB plans (other employee benefit plans) as fiduciary component units in fiduciary fund financial statements; and (3) enhance the relevance, consistency, and comparability of the accounting and financial reporting for Internal Revenue Code (IRC) Section 457 deferred compensation plans (Section 457 plans) that meet the definition of a pension plan and for benefits provided through those plans. This statement was fully implemented for fiscal year 2021, and did not have an impact to the County’s financial position or results of operations. W. 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 2019-172, established by the Chief Financial Management Officer or his 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 (non- spendable, 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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