The Financial Fund Balance report provides an overview of the assets and liabilities of a district by year and shows the district's Foundation Allowance, which is the district's per-pupil revenues for general operating expenses.

These data provide important insights about how districts' assets and liabilities balance. This report can be used to view, analyze, and compare fund balance data across districts, school years, and the state. It can also be used to see if a district is running a fund deficit (i.e., are liabilities more than assets in any given year).

Finances can be complex, so use caution about forming conclusions. For example, a district may be running a deficit in certain funds, but if you take into account all of their funds added together, their fund balance may be fine.

There are two different Fund Balance reports:

• The Fund Balance report illustrates the assets and liabilities of a district. The difference between the assets and liabilities is either the fund balance (when assets are greater) or the fund deficit (when liabilities are greater).
• The Foundation Allowance report simply shows the amount of revenue per student given to the district by the State of Michigan. In other words, it's the base amount of dollars the district receives in state support per student enrolled. This amount varies by district and by year.

Finance data are updated on MI School Data annually in February

Exploring the Financial Fund Balance reports can answer questions like:

The Financial Fund Balance report shows the difference between an entity’s assets and liabilities, which is called a fund balance, by fiscal year and fund type. The Foundation Allowance sub-report shows the per pupil amount allocated to each school district.

Financial statements of school districts in Michigan are prepared in conformity with U.S. Generally Accepted Accounting Principles (GAAP) for government units. These standards, which are accounting rules used to prepare, present, and report financial statements, are established by the Governmental Accounting Standards Board (GASB). 

The Michigan Public School Accounting Manual serves as the guide to uniform classification and recording of accounting transactions for public school districts. For a better understanding of the classifications, categories, and definitions used by districts and found in this report, refer to the manual at the Department of Education's website. The Appendix - Definitions of Account Codes is a useful reference. 

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