Do you have unrestricted gift funds in your unit that are used for a variety of expenses? If so, it’s important to ensure those expenses are recorded under the correct NACUBO function for accurate financial reporting.
For example, a unit may have an unrestricted gift fund with a default program code of 191000. If the unit uses a significant portion of that funding for scholarships, those scholarship expenses should instead be recorded under program code 191787 (rather than the default) to ensure proper financial reporting.
This can be accomplished in one of two ways:
- Create a new gift fund specifically for scholarship expenses.
- Assign this new fund a default program code of 191787, and fund it via a funds transfer from the unrestricted gift fund.
- Post the scholarship expenses directly to the unrestricted gift fund using the 191787 program code instead of the default.
- To ensure funding is available within the 191787 C-FOP, complete a funds transfer, debiting the unrestricted gift fund’s default program code and crediting the unrestricted gift fund’s 191787 C-FOP.
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For further assistance, search for “Gift Funds” in the Business & Finance Who to Ask list to find the appropriate subject matter experts.
