Question: Carry temp restricted balances to next FY?

by elizabeth
(SC)

We have several temporarily restricted accounts, for example "Youth Summer Trip" where the money is designated (NTD) towards a youth trip and the costs for that trip come directly from that account rather than a budget line item.

At the end of the fiscal year, I always have balances in the accounts that will not be used until the next fiscal year.

In the past I have made journal entries to transfer the balances into the next FY, just wondering if this is correct or if anyone has advice.

We started using Aplos a few years ago and they have strongly stated that I should not be carrying temp. restricted balances.

Comments for Question: Carry temp restricted balances to next FY?

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Sep 20, 2021

Tracking Restricted Balances in Aplos
by: Vickey

If I am understanding correctly.... you are fine with how you are tracking those temporary restricted balances =)

I'm assuming you are using an income or expense account and assigning the donations/collections AND the related expenses the that one account.

I use the same method with some of my clients ...when we don't want it to "affect" the budget =)

Maybe Aplos is thinking you are still using the old "3" fund accounting classifications (Unrestricted, Temporary Restricted, and Permanently Restricted)?

But I believe that you are just trying to find a way to track those types of "restricted" monies without creating "funds" in Aplos ....which you very much want to keep limited as there is no way to "delete" those or even make them "inactive" =(

Sep 21, 2021

Carry temp restricted balances to next FY
by: Anonymous - MN

I use the method that Vicky confirmed to you is a good way handle funds from one accounting year to the next.

I had not thought of using a Journal to move from '20 to '21, mainly because I am fluent in using Journals, but it sounds like a good idea. My simple way has been to date my reports for that account to when the first deposit was made. Not real clean but it has worked

Sep 30, 2021

thanks
by: elizabeth

Thank you for the response. Just to clarify, I use a "temp. restricted" income account for the trip income, and a temp. restricted expense account to track the expenses. At the end of our FY, I do not allow the balance of those two to be negative (I will instead charge a budget account the difference). But occasionally I end up with more in the income account than expenses to balance out. That income needs to carry over to the next FY but Aplos will just have it close to a balance sheet (Temp. Restricted Fund) account. So I have been debiting that Temp Restricted Fund and crediting the temp. restricted income account the surplus amount at the start of the FY.
Sorry for all the detail but if anything is off in that, please let me know. Thankful for this resource!

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