When this report previews, you will see a report with sections for each fund broken up into assets and liabilities (and possibly Equity if you have Equity account balances) with a Fund balance at the end.
The Fund Balance is determined by the following formula:
Total Fund Balance/Equity = Total Assets – Total Liabilities
The first step in this formula is figuring out the Total Assets. This amount is the asset account balances as of the selected month plus the Dedicated Funds Receivable.
The Dedicated Funds Receivable is the sum of all Dedicated Accounts with a negative balance. Since the monies in those dedicated accounts are reserved for specific purposes, those negative balances must be paid back. Therefore those balances are added back to the total assets.
The next part of the formula is figuring the Total Liabilities. This amount is the liability account balances as of the selected month plus the Dedicated Funds Payable.
The Dedicated Funds Payable is the sum of all Dedicated Accounts with a positive balance. These amounts are monies that need to be paid out for specific purposes. This makes them liabilities where the total Fund balance is being considered.
» Note: If you have Equity Accounts in Finance that have balances on them, you will see another section in the report titled “Equity.” This equity subtotal is assumed to be money that is being reserved for a certain purpose and therefore is not considered part of the actual Fund balance. So, the equity is subtracted from the “Totals for Fund Balance” line on the report but not the Total Fund Balance / Equity line.