cbrown wrote:I’ve just re-read this post for the fourth time and realized I gave you a piece of bad information. If you re-read the very first entry, you will see that I have an asset account, 1371. That is the account I was referring to. I have The unrealized gain/loss account closing 1371, not the 3310-101 fund balance account. How does that change your answer?
OK .. now I'm really confused.
Please list all the asset accounts you have currently for this restriction
If it was setup properly you would have something like this
01-1370-000 - Restricted Asset - setup to use restricted money - Reporting Level 5 - Asset #1
01-1371-000 - Unrealized Gain/Loss - setup to use restricted money - this is used to track any gains/losses - Reporting Level 6 - Asset #1
And list the Net Assets/Fund Balance accounts used.
If the setup is correct, you should see a Fund Balance account for the Asset, and a separate Fund Balance account for the Unrealized Gains/Losses
Say:
01-3310-000 - Restricted Net Assets/Fund Balance - Asset #1 -
01-3311-000 - Restricted Net Assets/Fund Balance - Unrealized Gains/Losses - Asset #1
When you created the asset account you should have DEBITed the 1370-000 and CREDITed the 3310-000 the amount of the investment.
When you get a quarterly statement you would then DEBITed the 1371-000 and CREDITed the 3311-000 the amount of the adjustment (using a negative number if needed)
At the end of the year you would "roll up" the unrealized gains/losses to 1370 and 3310. In all cases when you maintain these assets you manually debit or credit the fund balance account.
I made it really easy for us as all our endowments are in a separate endowment fund. All the mutual funds as well as the unrealized gains/losses are listed as assets, but I also update the 3110-000 unrestricted net asset account when we get a quarterly statement. At the end of the year, I
roll up the unrealized amounts to its releated mutual fund asset account. I don't need to touch the 3110-000 account it already has the totals of the two accounts. When I redeem any funds, I just credit the mutual fund asset, and debit the checking, again no need to touch the 3110-000 account.
When I transfer funds to operations, all I need to do is a simple transfer transaction from EF checking to 01 checking using transfer accounts.
Now for the restricted asset, I do the same with any gains/losses. Since there would be no 'redemption' as they're permanently restricted, all I do is update that asset and its related fund balance accounts as I remarked at the top ... roll up to the main asset account, and from the 3311 to the 3310. This way the starting 2019 fund balance should each the starting 2019 asset balance on that restricted account.
As you do, any interest we get from that restricted account gets deposited directly into the operations fund account.