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LA PORTE REDEVELOPMENT AUTHORITY <br />NOTES TO THE FINANCIAL STATEMENTS <br />SEPTEMBER 30, 2016 <br />NOTE 2. SIGNIFICANT ACCOUNTING POLICIES (Continued) <br />Measurement Focus (Continued) <br />Governmental fund types are accounted for on a spending or financial flow measurement focus. <br />Accordingly, only current assets and current liabilities are included on the balance sheet, and the <br />reported fund balances provide an indication of available spendable or appropriable, resources. <br />Operating statements of governmental fund types report increases and decreases in available <br />spendable resources. <br />Fund Balances <br />GASB Statement No. 54, Fund Balance Reporting and Governmental Fund -type Definitions, <br />requires the classification of fund balances in governmental funds using the following hierarchy: <br />Nonspendahle: amounts that cannot be spent either because they are in nonspendable form or <br />because they are legally or contractually required to be maintained intact. The Authority does <br />not have any nonspendable fund balances. <br />Restricted: amounts that can be spent only for specific purposes because of constitutional <br />provisions, or enabling legislation, or because of constraints that are imposed externally. The <br />Authority does not have any restricted fund balances. <br />Committed. amounts that can be spent only for purposes determined by a formal action of the <br />Board of Directors. The Board is the highest level of decision -malting authority for the <br />Authority. This action must be made no later than the end of the fiscal year. Commitments may <br />be established, modified, or rescinded only through ordinances or resolutions approved by the <br />Board. The Authority does not have any committed fund balances. <br />Assigned: amounts that do not meet the criteria to be classified as restricted or committed, but <br />that are intended to be used for specific purposes. The Authority has not adopted a formal policy <br />regarding the assignment of fund balances. The Authority does not have any assigned fund <br />balances. <br />Unassigned: all other spendable amounts in the General Fund. <br />When expenditures are incurred for which restricted, committed, assigned or unassigned fund <br />balances are available, the Authority considers amounts to have been spent first out of restricted <br />funds, then committed funds, then assigned funds, and finally unassigned funds. <br />-15- <br />