Escheat Transaction (recovered funds)

[smbc8008]

Funds from an unattended bank account were turned over to the state government in October 2023. The bank closed the account. We claimed the funds from the state and they were sent back to us in February of 2024. We deposited those funds into another one of our existing bank accounts at a different bank. The money sits in two different funds and we'd like to keep them in those same two funds when putting it into the second bank in PowerChurch. What type of transaction(s) need to be created to account for this series of events? It's not really an expense followed by income so I hesitate to write manual checks. It's similar to a transfer except there were several months between the credits and debits. Could I use "bank fees" and put the debits and credits there? Or would it be better to add a new line to the chart of accounts called "escheat"? Not sure what to do or how to categorize it.

[NeilZ]

Funds from an unattended bank account were turned over to the state government in October 2023. The bank closed the account. We claimed the funds from the state and they were sent back to us in February of 2024. We deposited those funds into another one of our existing bank accounts at a different bank. The money sits in two different funds and we'd like to keep them in those same two funds when putting it into the second bank in PowerChurch. What type of transaction(s) need to be created to account for this series of events? It's not really an expense followed by income so I hesitate to write manual checks. It's similar to a transfer except there were several months between the credits and debits. Could I use "bank fees" and put the debits and credits there? Or would it be better to add a new line to the chart of accounts called "escheat"? Not sure what to do or how to categorize it.

Were these funds already accounted for in Powerchurch?

[smbc8008]

Were these funds already accounted for in Powerchurch?

Yes.

[NeilZ]

Were these funds already accounted for in Powerchurch?

Yes.

If they are still listed under the previous bank account in Powerchurch, I'd just do a transfer to the new bank account. You said that it was covered in two separate funds, I'm assuming Accounting Funds ?? If so, just credit the old account IN THAT ACCOUNTING FUND, and debit the other bank account in that fund using the balance in that old account.

Just add as much detail in the note box of the transaction to describe why the transaction was being done.
Here's an example assuming that each fund showed 1000.00 in that old account.

First Accounting Fund:
01-1130-000 deleted bank account CREDIT 1000.00
01-1140-000 New bank account DEBIT 1000.00
NOTE: Money tranferred from account deleted by bank due to 'non-use'. Recovered funds then moved to new account.


Second Accounting Fund:
04-1130-000 deleted bank account CREDIT 1000.00
04-1140-000 New bank account DEBIT 1000.00
NOTE: Money tranferred from account deleted by bank due to 'non-use'. Recovered funds then moved to new account.

[smbc8008]

Thank you! One followup question: When would you date the transaction? It seems the date might have an affect on reconciliation in one account or the other since the funds were out of our hands for a period of time.

[NeilZ]

Thank you! One followup question: When would you date the transaction? It seems the date might have an affect on reconciliation in one account or the other since the funds were out of our hands for a period of time.

Use the date when the funds were returned, when you go to reconcile the old account, uncheck the box at the top of the reconciliation to show all transactions. As its probably the only one there, just clear it and finish the reconciliation. In the new account, the date would fall within the proper parameters.

[smbc8008]

Thank you very much Neil!!!