Wake County Schools finance committee reviews fund-balance categories, vaping settlement and risks from federal funding pause

Mr. Neer, a finance staff member, told the Wake County Schools Finance Committee that "there's a body called the Governmental Accounting Standards Board, GASB, that defines exactly what fund balance is for governmental organizations and agencies in this country," and said the district reports fund-balance classifications under GASB Statement No. 54.

The presentation, titled "Fund Balance 101," summarized the district's June 30, 2024 fund-balance statement and explained which portions represent cash available for new spending and which are reserved or represent noncash items. "These amounts —aren't all dollars— and most are not available to be utilized," Mr. Neer said, describing inventory and encumbrances that must be reported but are not spendable.

The memo reviewed each major category shown in the district's audited report. Items and amounts cited in the committee meeting included: roughly $4.9 million in nonspendable inventory (supplies, fuel, transportation parts); about $9.3 million categorized as "stabilization by state statute" (accounts receivable and carry-forward purchase orders); $11.3 million "assigned for special projects" (the largest drivers being targeted enrollment funds and vaping-settlement receipts); $15.58 million reserved for insurance (self-insured workers' compensation and claims); a $4.3 million pension reserve to address potential state invoiced liabilities; about $1 million in…