[SchoolFinance] Reserve Account

[Patti Riggs]

We went through this last year and our auditor said to set it up reserves
as a separate fund "1010" and use "1000" as the external reporting code to
satisfy the State's requirement that it be included under the general fund.

When I emailed the State to make sure it worked on their level, this was
the response I received:

"Masking a code for tracking purposes makes perfect sense. This way, you
have specific detail for your needs and we see this in the 1000 fund as we
expect."

Patti Riggs
Finance Manager
Regional School Unit #24
2165 US Highway 1
Sullivan ME  04664
 (207) 460-7165

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On Mon, Jul 24, 2023 at 7:39 AM Lisa Harkin <lharkin at kitteryschools.com>
wrote:

> Agreed with Pete Orne, keep it on the Balance Sheet.
> Unfortunately, the person before me set up completely new funds, so I kept
> things consistent.
>
> Yes, I have asked our auditors, many times, I'm sure they are sick of me
> asking but I am def going to ask if I can move the balance out of the
> separate funds and onto our Balance Sheet, like Pete has done.
>
> Thanks!
>
>
> On Fri, Jul 21, 2023 at 1:57 PM Pete Orne <pete.orne at fivetowns.net> wrote:
>
>> What I finally went with is a "Restricted Account" to show that those
>> previously undesignated funds must be used for a certain purpose.  This is
>> an equity account like your Undesignated Fund Balance.
>>
>> In the handbook (Sep 2022 version), on page 7-10 you'll see 7200 are
>> restricted fund balances, so 1000.0000.0000.37200.000 would be a generic
>> restricted account.  You'll see there are more descriptive accounts for
>> Capital Reserves (37210), Special Ed (37240) and other funds (372?0).
>>
>> A journal entry moving undesignated to restricted is all you need.
>>
>> When you use the funds you'll want to move the money to the appropriate
>> fund to track the use.
>>
>> Please let me know if you have any questions.
>>
>> Pete
>>
>> Pete Orne, SFO
>>
>> Business Manager
>>
>> Camden Rockport/Five Town CSD
>>
>> 22 Knowlton St.
>>
>> Camden, ME 04843
>>
>>
>>
>>
>>
>>
>> *pete.orne at fivetowns,net <pete.orne at fivetowns,net>*
>>
>>
>> * <pete.orne at fivetowns,net>*
>>
>>
>> * <pete.orne at fivetowns,net>*
>>
>>
>> On Fri, Jul 21, 2023 at 11:54 AM Alice Tucker <
>> atucker at cherryfieldschool.org> wrote:
>>
>>> Good Morning;
>>> I have never dealt with a reserve account before and the school
>>> board/town voted to put a certain amount from our carryover into a reserve
>>> account for unexpected expenditures for 2023-2024.  Can anyone tell me how
>>> to do the accounting for this?  I have looked at the accounting handbook
>>> but could not figure it out.
>>>
>>> *Alice Tucker*
>>> Administrative Assistant
>>> Cherryfield School Department
>>> 207-546-7770
>>> _______________________________________________
>>> SchoolFinance mailing list
>>> SchoolFinance at maillist.informe.org
>>> http://maillist.informe.org/mailman/listinfo/schoolfinance
>>
>> _______________________________________________
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>
>
>
> --
> Lisa Harkin
> 207-651-3407
> Finance Manager
> _______________________________________________
> SchoolFinance mailing list
> SchoolFinance at maillist.informe.org
> http://maillist.informe.org/mailman/listinfo/schoolfinance
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