Which GASB54 fund balance classification signifies funds with no constraints, available for any purpose in the general fund?

• A. Unassigned (any purpose; general fund)
• B. Assigned (specific purpose without board action)
• C. Committed (set aside by board for specific purpose)
• D. Restricted (external)

Answer: (A)

In GASB 54, fund balance classifications show how much constraint there is on resources. The balance that indicates no constraints and is available for any purpose in the general fund is unassigned. It’s the residual category for the general fund: money that isn’t restricted, committed, or assigned for a specific purpose and is still spendable. Restricted balances come from external sources, committed balances come from formal actions by the government’s governing body, and assigned balances reflect management’s intended use. Therefore, unassigned is the correct and best description for funds with no constraints in the general fund.