Allocated Fund Accounting

in an
Dimension Accounting
Environment
 Allocated Funds
• Part of the organization’s Fund Balance
• Formerly known as Reserve Funds

• These are funds set aside for a specific

purpose;
• They are usually administered by the
Executive Board
 Allocated Fund or Trust Fund?
• To determine which:
– Who administers the fund?
• Allocated Funds are administered by the Executive
Board
• Trust Funds are administered by a donor or any
entity or person other than the organization’s
Executive Board
 Allocated Funds in
Dimension Accounting
• Allocated Funds are now Resources, not
natural accounts
• Beginning Balances for Allocated Funds are
recorded in the Fund Balance section of the
GDCOA
• Each subsequent entry involving an
Allocated Fund must be recorded in the
P&L natural account
• Each transaction involving an Allocated
Fund must be tagged with:
– Fund
– Resource
– Restriction
– Any other dimension required by site
• Transfer transactions must also be tagged
with:
– Flag
– TFWW
 Types of Allocated Fund
• AFO – Allocated Fund Operating
• AFC – Allocated Fund Capital
 Ways of Funding
• Donation
• Transfer
 Funding Allocated Fund
through Donation
• Ledger Entry
Dr Cash Received
Cr Donated Income; Fund: 10
Function: XXXXXXX;
Restriction: 05;
Who: XXXXXX
• Example: a donation is received for the
Global Mission Allocated Fund
Dr Cash Received
Cr Donated Income; Fund:10;
Resource: AFOGLOBA01;
Restriction: 05; Who: XXXXXX
 Funding Allocated Fund
through Transfer
• This is the most common method of
funding Allocated Funds
• Record both debit and credit to the Transfer
Between Functions natural account
 Setup Requirements for
Transfer Funding
• The Transfer Between Functions natural
account must be set up to have:
– TFWW - Mandatory
– Flag - Mandatory
 Transfers from Unallocated to
Allocated Fund
• Rule of Thumb for Transfers from
Unallocated to Allocated Funds:
– Only possible pursuant to:
• A committee action
• A working capital of more than 100%
• A foreseeable expense
• An impossibility of the action being carried in a
single fiscal year
• Remember:
– The Restriction attached to the source of the
fund must be attached to the recipient fund to
protect the sacredness of tithes and donor or
committee specified restrictions
Transfer Ledger Entries
 Transfer from Unallocated Non-tithe
to Allocated Fund GC Session
Dr Transfer Between Functions
Fund: 10; Function: UFNT; Restriction: 01;
TFWW: AFOGCSES01; Flag: OUT
Cr Transfer Between Functions
Fund: 10; Function: AFOGCSES01;
Restriction: 05; TFWW: UFNT;
Flag: IN
 Transfer from Operating Allocated
Fund Global Mission to Operating
Allocated Fund Evangelism
Dr Transfer Between Functions
Fund: 10: Function AFOGLOBA01;
Restriction: 35; TFWW: AFOEVANG01;
Flag: OUT
Cr Transfer Between Functions
Fund: 10; Function: AFOEVANG01;
Restriction: 35; TFWW AFOGLOBA01
Flag: IN
 Alternative Funding Method
• NOTICE: SunPlus does not advise using
this method, as there is an element of
duplication in the treatment of the income
and expenses.
• This method has been provided to meet the
practices of some organizations during
system setup when the budget has been
voted and implemented.
 Funding an Allocated Fund by
Budgeting Expense

• If funding an Allocated Fund is recorded as

operating expense, the other side of the
entry must also be an income in the
Allocated Fund
 Ledger Entry
Dr Project Funding / Allocation Expense
Fund: 10; Function: UFTF;
Restriction: 31
Cr Project Funding / Allocation
Income
Fund: 10; Function
AFOGLOBA01; Restriction: 35
 Allocated Fund Funding Using
Project Funding / Allocation
Dr Project Funding / Allocation Expense
Fund: 10; Function: AFOEVANG01;
Restriction: 35
Cr Project Funding / Allocation
Income
Fund: 10; Function:
AFOGLOBA01; Restriction: 35