The Township of Thomasville's General Fund has the following net resources at year end:
•$66,000 of prepaid insurance
•$375,000 rainy day fund approved by the township governing board with specific conditions for its use
•$2,500 of supplies inventory
•$61,000 state grant for snow removal
•$150,000 contractual obligations for the purchase of equipment
•$200,000 to be used to fund government operations in the future
•Outstanding encumbrance of $80,000 for the purchase of furniture & fixtures
-What would be the total Nonspendable fund balance?

Question

Quizplus · Accepted Answer

Nonspendable fund balance includes resources that cannot be spent because they are either not in a spendable form or are legally or contractually required to be maintained intact. This includes the $66,000 of prepaid insurance, $2,500 of supplies inventory, and outstanding encumbrance of $80,000 for the purchase of furniture & fixtures. Therefore, the total Nonspendable fund balance is $68,500 ($66,000 + $2,500 + $80,000).

The Township of Thomasville's General Fund Has the Following Net