What Is the Fund Balance

The fund balance in any given fund is essentially what is left over after the fund’s assets have been used to meet its liabilities. Fund balance is required to be reported in two components—reserved and unreserved.

Is fund balance the same as equity?

But what it truly is is the difference between your assets and your liabilities, which in the public sector would be your equity, but in the governmental funds that is called your fund balance,” Hall said. … It’s the measure of financial health of an individual fund.”

What is the difference between fund balance and cash balance?

Just like it sounds, cash balances show the amount of cash you have on hand. … The first is that a fund balance is the life-to-date net worth of a fund, measured by total assets minus total liabilities. A budget balance, on the other hand, is the amount that remains of the budget that was set for a specific time period.