Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Fund Balance topic
No spam. Unsubscribe anytime.
Committee hears explanation of fund-balance policy; two-month reserve described as floor, not a ceiling
Summary
The committee discussed policy DFAC on fund balance, heard that a two-month operating reserve is standard practice, and noted the size of reserves can vary; legal counsel said the policy is appropriate and not a legal issue.
The Colleton County School District policy committee reviewed policy DFAC on the district fund balance and heard from legal counsel and a board advisor that a two-month operating reserve is a commonly recommended floor, not a spending ceiling.
Doctor Bagley told the committee that the general practice is to keep a two-month reserve to cover operating costs, including salaries and utilities. “More than that, y'all can do and figure out how you wanna handle it,” she said, adding that the policy establishes a floor rather than a maximum.
Trustee Nixon asked whether the policy should address how to handle an overage — i.e., funds above the required two-month reserve. Doctor Bagley said the policy does not need to dictate that; handling excess fund balance is a practical decision for the board. She cited another district as an example, saying Pickens County has about $41 million in reserve funds.
Miss Allison, the board attorney, said the DFAC policy is appropriate from a legal standpoint and does not require changes merely for review; minutes should reflect the review but changes are only needed if the committee decides to revise the policy.
No formal action was taken; the committee noted the policy's intent and left open any future board-level decisions about allocation of larger reserves.
