Unrestricted Net Assets

[CoveBaptist]

Is there a report to show me everything that closes to 3110?

I have run my year end Balance Sheet by Fund and I have money showing on my Balance Sheet as Unrestricted Net Assets (3110) that is really Restricted Funds. The money we have in our Building Fund MM (which is restricted) is showing under 3110. How did this happen and how do I correct this? I'm assuming it has to do with some account I have set up to close incorrectly to 3110.

Plus the 3110 Fund balance showing for our Regualr Money Market off by a random number (few hundred Dollars) My Grand Total for 3110 overall is the total of my un-restricted funds (checking and Regular MM) plus my Building Fund MM (which should be restricted) but the individual fund totals are off plus I have the Buiding Fund showing as Unrestricted ???? What do I do????

[JohnDMeyers]

It depends on what your transaction was that put the money into the Building Money Market (which I am assuming is an asset account).

You can run the report called Account Close To, which is 4th up from the bottom in Fund Accounting Reports. However, it will all come back to what you did to get the money into that account.

I am thinking that you may have transferred money from a checking or savings account like this:
CR 01-1110-000 checking $50,000
DB 01-1180-000 building mm $50,000

The problem with that is that the money in the checking account was likely unrestricted. This one transfer transaction does not involve a change from unrestricted to restricted. However you did it, simply undo it, and create two accounts in the 9000s transfer area. In my example, 9170 closes to 3110, and 9180 closes to 3210 (restricted)

The transfer will then look like this:
CR 01-1110-000 checking $50,000
DB 01-9170-000 unrestricted transfer $50,000 -->closes to 3110

CR 01-9180-000 restricted transfer $50,000 -->closes to 3210
DB 01-1180-000 building mm $50,000

[CoveBaptist]

You are probably right - the initial transfer as well as several subsequent transfers were done that way. Many of which were in years that have already been closed.

What can I do to get it all right now - and move forward using the transfer accounts (which I have had set up over the last year or so)?

[JohnDMeyers]

Since the transfers were made in past years, the unrestricted net asset is incorrect.

One way to correct the problem is directly moving the money in net assets. i.e.
CR 01-3110-000 $50,000
DB 01-3210-000 $50,000

I generally don't like to do this. It will have unintended consequences. For example, as restricted money is released, there will be no restricted income to release it from, and you will get a negative amount in 3210 after a while. You may decide that is ok.

In order to avoid that, it may be better to move some current-year income from unrestricted to restricted to correct the errors of years gone by. This is also up to you to decide. I think I would try to do it this way. Your income-and-expense amount and budget will suffer in the current year, however, but technically, they benefited in years gone by because the money was not properly restricted.

In order to reassign income, you don't have to do all $50,000 (in my example) in one year. You could move only the amount that you use in one year. So, if you use $10,000 this year, restrict $10,000 of income to make up for the errors of years gone by, like this:

DB 01-4010-000 unrestricted income $10,000 --> closes-to 3110
CR 01-4210-000 restricted income $10,000 --> closes-to 3210

Just some suggestions. If all my wordiness is confusing, let me know.

[CoveBaptist]

I did the adjustments to income for this past year as we are at year end and I'm closing out the records for CY12. This seemed the best time to hopefully have a fresh start for the new year. Everything looks good right now! I'll keep an eye on the accounts as I make transactions that would affect these balances to see if all is working out properly!

Thanks so much for the help!