Fund Balance Policy

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Undesignated Fund Balance

To provide for unforeseen expenses or emergencies and to provide working capital in the first several months of the fiscal year, until sufficient revenues are available to fund operations, the City of Greensboro maintains some unappropriated or undesignated fund balance. These funds are generally referred to as "Available Fund Balance."

The North Carolina Local Government Commission recommends that local governments maintain an undesignated fund balance in the General Fund equal to at least 8 percent of the adopted General Fund budget. This provides working capital equal to roughly one month's worth of expenditures in the General Fund.

The City of Greensboro strives to maintain an undesignated fund balance of 9 percent in the General Fund. This practice is noted in the annual budget document as a basic budget policy to which the budget process annually adheres.