Reporting Requirements for Annual Financial Reports of State Agencies and Universities
Fund Balance/Net Position
GASB 54 provides guidance on the acceptable instances for when and how negative (debit) balances may be reported for governmental funds. The general fund is the only fund that reports a positive unassigned fund balance amount. In general, if the total fund balance is negative (exclusive of any nonspendable amount), report the negative balance as unassigned. For more information, see Governmental Funds.
No category of restricted net position can be a negative (debit) balance. If liabilities that relate to restricted assets exceed those assets, no balance is reported. The debit amount must be reported as a reduction of unrestricted net position. For more information, see Proprietary Funds.