The Board of Commissioners took its highest level formal action to dedicate resources for a particular project in the Capital Projects Fund. Those resources cannot be redirected for another use unless an equivalent formal action is taken. As of the end of the fiscal year, a portion of these resources remain in fund balance. The proper fund balance classification for these resources would be

Question

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The resources were formally dedicated for a particular project by the highest level of formal action taken by the Board of Commissioners. As a result, these resources should be classified as "committed" fund balance, meaning they cannot be redirected for another use unless an equivalent formal action is taken. Nonspendable fund balance is typically used for amounts that cannot be spent, such as prepaid expenses or inventories. Restricted fund balance is used for resources that are restricted by external parties, such as grants. Assigned fund balance is used for amounts that are intended to be used for a specific purpose but are not required by formal action. None of these categories fit the scenario presented in the question.

The Board of Commissioners Took Its Highest Level Formal Action