What must be included in an ending fund balance?

• A. Cash on hand only
• B. Projected revenues for next year
• C. Unspent prior year budget authority
• D. Revenues, Expenditures, Beginning and Ending balances and one time monies

Answer: (D)

The key idea is that ending fund balance shows what resources are actually available to carry into the next period, and it reflects more than just cash at year end. It comes from the starting resources (beginning fund balance), plus what the fund brought in during the year (revenues), minus what was spent (expenditures), and includes other financing activities such as one-time monies that affect the fund’s resources. Because of all these moving parts, the ending fund balance is properly described as incorporating revenues, expenditures, the beginning balance, and any one-time monies that influence the funds, with the ending balance itself being the result of those elements.

That’s why the other options fall short: focusing only on cash on hand ignores incoming revenues and outflows; projecting next year’s revenues alone ignores current year activity and the starting balance; and only mentioning unspent prior year budget authority omits ongoing revenues, expenditures, and other funding that shape the actual available resources.