One of the most critical is the difference between unrestricted net assets and restricted net assets. Now that you know the concept, look at your organization’s balance sheet again with fresh eyes. Keep in mind that, unfortunately, net assets is often not broken out properly in internally generated balance sheets.

This does not impact the process of recording encumbrances in USAS for budgetary purposes. For more information, see Encumbrance Reporting and Lapsing of Appropriations (APS 018) (FPP A.019). If an agency has a fund that does not close to the unassigned fund balance, the fund balance allocation process is different. Includes net position held by the University’s Technology Transfer Office (TTO).

Future Proof Retail

Many of the General Revenue-Dedicated funds have a committed fund balance. GASB 54 significantly changed the focus of fund balance reporting in two major areas — fund balance classifications and fund type definitions. For more information on the fund unrestricted net position type definitions, see Governmental Funds. Includes assets held by the University Treasurer to fund the short- and long-term needs of the University. Approximately 40% of the balance is in the form of unrealized gains, which is a non-cash asset.

All uses of bond proceeds do not have to be categorized to determine how much of the debt actually relates to assets that have been capitalized. Unless a significant portion of the debt proceeds is spent for noncapitalizable purposes, the entire amount should be considered “capital-related.”
If debt is issued to refund existing capital-related debt, the new debt is also considered capital-related. Even though the direct connection between the capital assets and the debt issued to finance the construction or acquisition has been eliminated, the replacement debt assumes the capital characteristics of the original issue. Unamortized deferred amounts from refunding “follow the debt” in calculating net position components for the statement of net position.

General Programmatic Reserves – PEPC

Include encumbered funds in the restricted, committed or assigned category based on the constraints placed on them. Governmental fund balance classification is reported in Note 32 — Governmental Fund Balances. Includes recording of inventory and prepayment expenditures per accounting standards.

• For example a grant to a college that may be used only for educational purposes should not be considered restricted, since the purpose of the grant is as broad as that of the college itself.
• The differences may seem like petty semantics, but each is based in a logical purpose.
• When completing Federal Form 900, nonprofits must report expenses functionally, broken down into the categories of Program, Management and General Activities, and Fundraising.
• GASB Concepts Statement No. 4 defines deferred outflows of resources, deferred inflows of resources and net position.
• It also separates deferred outflows of resources and deferred inflows of resources from assets and liabilities.