carrying an excess sover to next fiscal year

[sojorner]

WE have been running a declining deficit for several years. To offset this deficit we have been drawing from our reserves. The reserves are listed as an asset in a separate Accounting Fund (investments), and then the monies are transferred from that Accounting Fund to the General Fund. This current fiscal year we had a significant reduction in expenses due to a staff person retiring. Since we had already taken a small drawdown this yearand moved into the General Fund, we will have an 'excess'. I'd like to carry that over into next year and be able to show that in next year's budget report as an offset to the deficit,which will reduce the required drawdowns for next year. The reserves are set up such that when we take an amount, it is in fixed increments, and we cannot return monies to this asset. My thought was to transfer the excess to a 'board restricted fund' in the investments Fund, then next fiscal year, release that money and transfer it back into the general Fund .It then show up under transfers. IS there a better or alternative way to do this? I realize I could just let it remain in our cash asset and the unrestricted equity account - it would automatically carry over, but it wouldn't show up as an offset to the expected deficit next fiscal year.
Thanks.

[NeilZ]

WE have been running a declining deficit for several years. To offset this deficit we have been drawing from our reserves. The reserves are listed as an asset in a separate Accounting Fund (investments), and then the monies are transferred from that Accounting Fund to the General Fund. This current fiscal year we had a significant reduction in expenses due to a staff person retiring. Since we had already taken a small drawdown this yearand moved into the General Fund, we will have an 'excess'. I'd like to carry that over into next year and be able to show that in next year's budget report as an offset to the deficit,which will reduce the required drawdowns for next year. The reserves are set up such that when we take an amount, it is in fixed increments, and we cannot return monies to this asset. My thought was to transfer the excess to a 'board restricted fund' in the investments Fund, then next fiscal year, release that money and transfer it back into the general Fund .It then show up under transfers. IS there a better or alternative way to do this? I realize I could just let it remain in our cash asset and the unrestricted equity account - it would automatically carry over, but it wouldn't show up as an offset to the expected deficit next fiscal year.
Thanks.

That's not a bad way to do this, and satisfies your requirements.

[sojorner]

Thanks - wasn't sure if there might be a simpler way to do this.

[NeilZ]

Thanks - wasn't sure if there might be a simpler way to do this.

There is, but then it wouldn't show up on the Income & Expense account, but on the Accounting Fund Balance report. Wasn't sure where you wanted it to appear.