Final answer:
Net resources of a governmental fund designated for a specific use by a governing body are reported in the 'assigned' fund balance.
Step-by-step explanation:
Net resources of a governmental fund that the governing body has specified for a particular use through ordinance or resolution are reported in the assigned fund balance. Governmental funds classify fund balances based on the extent to which the government is bound to honor constraints on the specific purposes for which amounts in the fund can be spent. When the governing body like a city council or county board designates resources for a specific purpose, it is not as binding as a legal requirement but indicates an intent to allocate funds for a predetermined purpose, such as public safety, environmental projects, or education initiatives. These constraints are placed by formal actions such as ordinances or resolution.