Which GASB54 fund balance classification is described as set aside by the board for a specific purpose?

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

Answer: (A)

In GASB 54, fund balances are categorized by how tightly the resources are constrained. The description “set aside by the board for a specific purpose” points to the committed category. This requires formal action by the government’s highest decision-making authority (such as a city council) to designate funds for a particular purpose, and it can only be reversed by the same authority. This is stronger than assigned, which reflects management’s or an official’s intended use without the same formal action. It’s different from restricted, which comes from external sources like laws or grant agreements, and from unassigned, which is the general, unrestricted balance in the general fund. So the board-set-aside concept aligns with committed.