I've been helping out with some charity accounts, basically there are balances on the balance sheet under restricted funds, deferred income & accrued income which is money underspent and not received within the accounting period. my question is do I move these balances from the restricted funds, Deferred income & accrued income into the grants section for each depatment in the P&L so I can see what is actually spent and being brought forward for this year.
Are you talking about statutory accounts or sage accounts (gather it is sage re departments) or a mixture of both? ie balance sheet stat a/cs p & l sage? I ask this because the restricted funds are usually extracted from accounts program into stat a/cs, whereas in sage unless you have line 50 with the ability to do dept bal sheet and P & l, it's all lumped together.
Sheila
Hi Sheila - Sorry should have explained better, I have entered all the opening balances from the statutory accounts onto Sage, they have never been done on Sage before, thenI entered all the transactions for the year into there relevant departments.
My problem is in the accountants accounts he is showing deferred income & accrued income - which in effect I am treating as prepayments & accruals. which leaves the restricted funds, this is actually money given in the previous year and not spent therefore brought forward and spent this year. if I leave the restricted funds in the balance sheet my department P&L balances look like they are overspent. should I then move it back into the P&L to offset expenditure?
Short answer yes, they should be treated as prepayments and accruals. However, with restricted funds it also depends on when the projects/funds are/were due to end and whether or not that was in the previous financial year if so underspends may need to be paid back to the funder and overspends would have to be transferred to core funding. HTH
Thanks Sheila in the end I reversed the prepayments & accruals but left the restricted funds in the balance sheet, basically did what I would do normally - printed the department P&Ls etc ran the year end which then pulled everything through, so in essence I got the figures I needed in the restricted funds.
