Fund Accounting

WELLCOME!!

Finance TrainingFebruary 2008
Fund Accounting
DEF:-
Fund accounting is a system, used by most non-
profit organizations, that stresses accountability
rather than profitability.
This system classifies resources for accounting
and reporting purposes into funds that are
controlled in accordance with specific activities,
objectives and regulations.
Each fund is a separate accounting entity with a
self-balancing set of accounts for recording
assets, liabilities, revenue, expense and fund
balance.
Fund Accounting
A more simple explanation is that all
accounting is recorded based on the
source and purpose of the funding; i.e.
Each grant contract is accounted for
separately,
Fund Accounting (CONTD)
Funds received for a broad purpose,
for example Medical Programs, are
accounted for as a separate fund,
Funds received with no restrictions as
to use are accounted for as a
separate fund Unrestricted.
Fund Accounting
Fund Accounting in IRC
Within the accounting system IRC tracks
all expenditures, revenue and cash
receipts by grant (funding source) using
the T1 (grant code). Broader programs
are tracked using a T3 (Project Code).
Every transaction is recorded using the
applicable grant code.
Fund Accounting
The types of funding received by IRC
include:
Temporary Restricted Funding (TRS)
Unrestricted funding (U1000)
Donor Grants and Contracts (Restricted or
Designated) (GOs, GBs, DFS, ECS, etc)
Permanently Restricted Funds Donor
Endowments.
Fund Accounting
In-Country Grant Files
The majority of IRCs funds come from
donor contracts, or grants, that fund
specific activities.
Each contract places requirements and
restrictions on the use of the donor funds;
Financial reports must be prepared for
each grant and each grant is subject to
audit by the donor and by IRCs own
auditors.
Fund Accounting
For accounting, financial management and
audit purposes the finance group should
maintain a grant file for each grant.
Fund Accounting
The file should contain the following, which
needs to be retained until the audit period
expires (normally seven years).
Donor Contract
IRC Proposal
Final and Interim Financial Reports with
supporting worksheets as applicable
Final Program Report
Fund Accounting
Correspondence from or to the donor in regard
to: waivers, extensions, programmatic changes
etc.
Cash receipt and exchange information as
applicable
Detailed listing of expenditures charged to the
grant (SUN report or file)
Listing of assets purchased under the grant, and
disposal information if applicable.
Any related audit reports.

Fund Accounting

THE END>>>>>>>>>>>>>>>