Which of the following fund balance types is always restricted for future use?

The restricted fund balance is specifically designated for a particular purpose by external sources, such as laws, regulations, donors, or grantors. This type of fund balance indicates that the resources are not available for general use; instead, they must be utilized for the specific purpose intended. This restriction ensures that funds are allocated according to the stipulations set by external parties, making it crucial for compliance and accountability in financial management.

In contrast, the other fund balance types do not carry this level of enforced restriction. For example, the unassigned fund balance represents funds that are available for general use, giving the governing body flexibility in expenditure decisions. The committed fund balance is designated for a specific purpose by the government’s highest-level decision-making authority, but it can be changed or removed by the same authority. The assigned fund balance reflects amounts intended for a specific purpose by management or governing authority, but again, it does not have the same level of external enforceability as the restricted fund balance. Thus, the restricted fund balance stands out as the only type that is always constrained for future use as mandated by external guidelines.