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Topic: Business
Number of pages / Number of words: 3 / 652
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When this happens it is known as a fund balance. This occurs when a fund has cash that remained unspent after all budgeted expenditures have been made. The equity or surplus of funds can be attributed to revenues that were higher than originally budgeted or expenditures were actually lower than projected...

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The remaining surplus in a fund is classified as either unreserved or reserved. Unreserved funds are allowed to be used any way the government wants without any legal restrictions. Whereas, reserved funds are legally set aside for a specific purpose.

As you can see the world of governmental accounting can be very complicated...

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