1. (a) All money in the year-end fund balance of a district's school operating fund are subject to the 10 percent limit described in AS 14.17.505(a), except for money in the following six categories:

   1. (1) encumbrances;
   2. (2) inventory;
   3. (3) prepaid expenses, which may include fuel;
   4. (4) self-insurance;

   5. (5) federal impact aid received

      1. (A) in response to the application for impact aid submitted in the fiscal year that immediately preceded the current fiscal year; and
      2. (B) on or after March 1 of the current fiscal year that was awarded as a result of applications that were submitted before the application for impact aid for the current fiscal year;
   6. (6) unexpended annual student allotment money as provided under AS 14.03.310(c).
2. (b) A district shall include in the report required under 4 AAC 06.121(5)(A) a schedule that identifies the amount of money in the categories listed in (a) of this section.
3. (c) For purposes of AS 14.17.505(a), "unreserved portion of the year-end fund balance of a school operating fund" means the portion of the fund balance remaining after the deduction of the items listed in (a) of this section.

(Eff. 12/13/87, Register 104; am 8/5/90, Register 115; am 6/19/2011, Register 198; am 3/6/2015, Register 213)