Project cost accounting

[cbrown]

Neil, I've looked at this until I can't see the forest for the trees. We did a paving project last year for $35,500 and the donations fell short by $25,000. That left our unrestricted net assets 01-3110 in negative territory. We have a positive balance in our check of $40K, but we receive large pass-thru donations that could deplete that quickly. I'm clearly missing something simple but need some help. I have the project set up as temporarily restricted and expensed with proper restricted funds release, etc. Looking for some clues as to what more to look for. Thanks.

[cbrown]

Neil, before you spend time answering this, I may have found the problem. I have to run my close to reports and check that each expense account is closing to 3110. I'll post my solution.

[cbrown]

I found the problem. The Project expense account was set to close to the "Equity" account instead of 01-3110.

[NeilZ]

I found the problem. The Project expense account was set to close to the "Equity" account instead of 01-3110.

That should be correct, as you should release funds from the temp restricted 01-3xxx to cover those expenses coming out out of the 01-3110 .

[cbrown]

So at the end of the year my project cost overran donations by $25,000. It's a temp restricted account and the $25,000 is carrying over for the 2025 fiscal year. what should I have done to close it out in 2024 so it's zero for the next project? Thanks.

[NeilZ]

So at the end of the year my project cost overran donations by $25,000. It's a temp restricted account and the $25,000 is carrying over for the 2025 fiscal year. what should I have done to close it out in 2024 so it's zero for the next project? Thanks.

Ok ... you didn't say where the $25K is sitting. in the Temp Restricted Net Assets? Is it a negative number? Did the bills get paid out of the unrestricted net assets account?

I can't suggest anything without knowing more.