At the end of fiscal year $2019,$ Carson City had outstanding encumbrances of $$15,000.$ Although the city follows a policy of allowing outstanding encumbrances to lapse, it plans to honor the related purchase orders in fiscal year $2020.$ How should the city report the existence of the outstanding encumbrances in the financial statements if the encumbrances do not relate to a resource classified as restricted or committed?

Select one:

a$.$ It should be reported as Reserved for Encumbrances.

b$.$ It should be reported as Nonspendable fund balance.

c$.$ It should be reported as Unassigned fund balance.

d$.$ It should be reported as Assigned fund balance.