Accounting for Current Funds

Current unrestricted funds relates to funds Spent at the discretion of the governing board and are
Similar in function to the general fund

Current restricted funds is Everything that has legal, contractual or external restrictions and
These funds are currently available, but have limits on how they can be used

Accounting for board designated funds include the following:

General concept -Funds can be restricted by the governing board, the restrictions are internal and
voluntary as opposed to externally restricted funds, The funds can be unrestricted at the will of
the board, and They should not be included in restricted funds

Hospitals include General funds that can be set aside by the board for a limited use and The
limited use assets are listed as part of the general fund

ONNOs are The board designated funds can be included in the footnotes, They can be
reclassified as reserve funds similar to appropriated retained earnings

Colleges and universities Can be accounted for like ONNOs, Can be transferred to other funds
-Loans to loan funds
-Investments to endowment funds
-Plant expansion to plant funds

Mandatory and nonmandatory transfers - Mandatory transfers – from the current fund to other
funds
a. Binding legal agreements such as debt retirement or interest
b. Grant agreements, usually matching grants or gifts

Nonmandatory transfers
a.Made at the discretion of the board
b. Have a variety of objectives such as plant additions or quasi endowments

Revenue and support from fund raising events – only the net funds provided are reported