Which GASB54 fund balance classification is described as assigned for a specific purpose without board action?

• A. Assigned (specific purpose without board action)
• B. Committed (set aside by board for specific purpose)
• C. Nonspendable (inventory, prepaids, not cash)
• D. Restricted (specific purposed externally imposed)

Answer: (A)

The money is designated for a specific use by management rather than by a formal board vote. In GASB 54, assigned fund balance is when the government intends to use funds for a particular purpose and the designation can be made by a designated official without requiring a board action. That’s why this description fits the assigned category: the purpose is clear, but the action to designate doesn’t need the governing body’s formal resolution.

This differs from committed funds, which require formal action by the highest level of decision-making authority to set aside the funds; restricted funds are limited by externally imposed constraints; and nonspendable funds are not in spendable form (like inventory).