What is an "available" resource in the context of governmental funds?

In the context of governmental funds, an "available" resource refers to those funds that are collectible within the current period and can be used to pay liabilities. This definition aligns with the requirements set forth by governmental accounting standards, specifically for recognizing revenues and managing budgets.

The focus on resources that are collectible within the current period ensures that governments maintain an accurate and responsible approach to their financial reporting and budgeting. If resources can be collected during the fiscal year, they can be utilized for immediate obligations, such as payment of salaries, services, and other expenses, thus reflecting the current financial health of the governmental entity.

This definition underscores the importance of liquidity in governmental funds, where recognition of revenue is tied to the availability of cash or receivable resources that can be converted to cash within the existing fiscal cycle. Available resources must be measurable and realizable in the near term to ensure fiscal responsibility and transparency in public financial management.