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GASB Statement No.54 defines five new components of fund balance that will replace the current existing three components. The five new components are: Nonspendable Fund Balance. That portion of a fund balance that includes an amount that cannot be spent because it is either (a) not in a spendable form, such as Repaid items, inventories of supplies, or loan receivable; or (b) legally not contractually required to be maintained intact, such as property acquired for resale. This category was traditionally reported as a "reserve" fund balance under the old standard Restricted Fund Balance. That portion of a fund balance that reflects constraints placed on the use of resources (other than nonspendable items) that are either (a) extremely imposed by creditors (such as through debt covenants), grantors, contributor, or laws or regulations of other governments; or (b) imposed by law through constitutional provisions or enabling legislation. This category was traditionally reported as "reserve" fund balance under the old standard. Committed Fund Balance. That portion of a fund balance that includes amounts that can only be used for specific purpose pursuant to constraints imposed by formal action of the government's highest level of decision making authority, and remain binding unless removed in the same manner. This category was traditionally reported as a "designated" fund balance under the old standard, Assigned Fund Balance. That portion of a fund balance includes amounts that are constrained by the government's intent to be used for specific purposes but that are neither restricted nor committed. Such intent needs to be established at either the highest level of decision making, or by a body (such as finance committee) or an official to which governing body has delegated the authority to assign amounts to be used for specific purposes. This category was traditionally reported as a "designated" fund balance under the old standard. Unassigned Fund Balance. That portion of a fund balance that includes amounts that has not been restricted, committed or assigned to specific purposes within the general fund. The General Fund is the only fund that should report this category in the fund balance. This category was traditionally reported as "undesignated" fund balance under the old standard. FISCAL IMPACT There is no direct impact of implementing GASB Statement No. 54. The amounts reported as the total fund balance in any given fund are not altered. Only the reporting of the individual components that make up the total fund balances are changed. General Fund fund balance at June 30, 2010, under pre -GASB 54 classifications compared to post -GASB 54 implementation are provided in Exhibit A. These new classifications are required to be used on external formal financial reporting documents, such as the Comprehensive Annual Financial Report (CAFR).