Starting Balances for Other Accounting Funds

[NeilZ]

When I look at the Balance Sheet by Fund report it shows the the general fund total assets as 45,645.01, Missions as 11,116.68, School as -4654.15, Teen Fund as 3,202.99, Sports Fund as $996.13, and Building Improvement as 11,642.69. Those all total to the correct balance.

If what you show totals to the correct balance, then what are you trying to do exactly with the School Fund?

Are you trying to move funds to cover the negative amount? You really can't do that unless you have money coming in to do that. The money has already been paid out, you can't move funds from another account that isn't there.

Have you run a trial balance and what was the bottom line on that.

[ngaham]

When I look at the Balance Sheet by Fund report it shows the the general fund total assets as 45,645.01, Missions as 11,116.68, School as -4654.15, Teen Fund as 3,202.99, Sports Fund as $996.13, and Building Improvement as 11,642.69. Those all total to the correct balance.

If what you show totals to the correct balance, then what are you trying to do exactly with the School Fund?

Are you trying to move funds to cover the negative amount? You really can't do that unless you have money coming in to do that. The money has already been paid out, you can't move funds from another account that isn't there.

Have you run a trial balance and what was the bottom line on that.

I am just making sure that I entered the transactions correctly to achieve the negative balance on that accounting fund. I ran a trial balance and the bottom line is 0.00

[NeilZ]

If what you show totals to the correct balance, then what are you trying to do exactly with the School Fund?

Are you trying to move funds to cover the negative amount? You really can't do that unless you have money coming in to do that. The money has already been paid out, you can't move funds from another account that isn't there.

Have you run a trial balance and what was the bottom line on that.

I am just making sure that I entered the transactions correctly to achieve the negative balance on that accounting fund. I ran a trial balance and the bottom line is 0.00

The trial balance shows that everything is correct .. everything balances across ALL your funds. There shouldn't be a need to do anything else. You've obviously run the Accounting Fund Balances report, as you pointed out all the fund balances, including the school's negative balance.

You should be good.

[ngaham]

Ok. Do you suspect that in the future, if more expenses happen, there would be an issue? Also, in your opinion, is the best way to fix this to specifically raise the money for this?

[NeilZ]

Ok. Do you suspect that in the future, if more expenses happen, there would be an issue? Also, in your opinion, is the best way to fix this to specifically raise the money for this?

As long as you keep writing checks against the school funds without money coming in you're actually using funds from the other Accounting Funds to cover those checks.

That means that if you write a check for say $11,000 for building improvements, and you have 4000 in fund 01, and 11000 in the improvement fund, but show a -5000 in the school fund. You're going to write a check that you can't cover.

Because while you show 15000 in the operating & improvement fund, the school has actually used 5000 to cover its bills, which leaves you with 10000.

The church board is going to have to realize that its subsidizing the school, and needs to specifically move funds from somewhere else (or raise the funds) to cover that deficit.

Then the board will have to decide whether to raise the tuition or shut the school down.

[ngaham]

I follow what you're saying. If the church chose to have the unrestricted assets in the general fund cover that, then I would just issue a transaction to do so, correct?

[NeilZ]

I follow what you're saying. If the church chose to have the unrestricted assets in the general fund cover that, then I would just issue a transaction to do so, correct?

Exactly ... you'd transfer the funds in the same way you setup the starting balances.