Moving funds to cover a deficit and into an investment

[NeilZ]

We have some funds that were temp restricted as it is for repair of the church ceiling. It appears that we're waiting on some additional actions to be taken, and this will not happen soon. So we want to put this money in an investment until its needed.

However, we also need to pull funds from the investment to cover last year's operating fund deficit. So instead of putting the entire amount in the investment, we want to split the money.

So far we figured the transfers out:

BD-1110-000 Checking CR 24585.80
BD-9110-000 Tnsfr to DB 24595.80
BD-4830-000 Repair Release DB 24595.80
BD-4999-000 Released CR 24595.80


BD-1110-000 Checking CR 10753.17
BD-9110-000 Trnfr to DB 10753.17
BD-4830-000 Repair Release DB 10753.17
BD-4999-000 Released CR 10753.17

So far, so good.

However, now I need to reflect the move of the funds to the operating fund and have that move show up in reports, but not as income. Then there's the addition to the investment ... I need to show the money in the checking account under our investment fund, which shouldn't be a problem, but then I need to show the check to the investment company and the increase in the investment. Do I just credit checking and debit the investment?

As usual, any assistance is appreciated.

[JohnDMeyers]

Sorry, Neil. I couldn't follow everthing.

Is the $24,585.80 heading to the investment fund?
Is the $10,753.17 used to cover last year's shortfall?

Whichever was headed to the investment, you released it already. Why not keep it restricted until it is used toward the ceiling? In other words, just move it from checking to investment but not release it, yet.

[NeilZ]

Sorry, Neil. I couldn't follow everthing.

Is the $24,585.80 heading to the investment fund?
Is the $10,753.17 used to cover last year's shortfall?

Whichever was headed to the investment, you released it already. Why not keep it restricted until it is used toward the ceiling? In other words, just move it from checking to investment but not release it, yet.

John, yes that is the way. FWIW .. its a long story ... right now it is restricted, under our Building Fund, but that Fund has a surplus which would more than cover the $35K for the ceiling repairs. So, the finance committee wants to put this where it may gain some money. I released it so that we could then write the check, but I see what you're saying, however we don't have an release account setup for that in the investment fund.

[NeilZ]

So ... how do I (or where do I) move the funds so

A) it appears in the operations fund, but not as income, and
B) when the check is written to the brokerage, it's added to the investment.

I'm thinking in B, I should credit checking, and debit the investment asset, but I'm definitely not sure in A where to move it.

[JohnDMeyers]

If you use a transfer account, it's not technically income, but it shows up on an income/expense statement as a positive. I've gotten used to that, but I don't particularly like it.

We are getting so low return on our investment account that I transferred a large amount of money into checking from our investment account, just for convenience.

I heard about locking money for 2 years to get 3%, but we don't want to make that kind of commitment right now.

[NeilZ]

If you use a transfer account, it's not technically income, but it shows up on an income/expense statement as a positive. I've gotten used to that, but I don't particularly like it.

We are getting so low return on our investment account that I transferred a large amount of money into checking from our investment account, just for convenience.

I heard about locking money for 2 years to get 3%, but we don't want to make that kind of commitment right now.

OK ... sounds good .. we're getting better than 3% in our mutual fund ...