A few years ago, we decided to put money aside for new playground equipment. We took the funds desiganted for this project and put them in a CD. This year we received a donation from a corporation and did the same thing. This way we know what those CDs are for and the money is not mixed in the general checking account. It also made it very easy for the treasurer to report how much had been put aside for the playground, because all she had to do was look at the CD statements.
We have the same situation in our PTSO. We have a budget surplus of a little over $10,000.00. We were anticipating this surplus due to a WOW! on our Jog A Thon.
We voted in May to carry over 50% of the surplus and deposit the remaining 50% in the PTSO savings account. The money we deposit in that account stays there until we as a PTSO decide where the money may best be spent. Last year we voted to transfer $10,000.00 back into our general fund to purchase playground equipment.
Traditionally we carry over only $1500.00 on a line item that says Reserve for Contingencies. But for the past 4 years we have had generous surplus amounts. We keep the current year budget specific to funds for that year and show the carry over in our treasurer's reports and balance reports.
I know, everyone should have such a problem. Our group really lucked out last year and had a large cash surplus. I know the usual method is to hold over $5000 in start up money. It's sort of old fashion, we work on a 365 day fiscal year we can't wait around all summer holding onto our covented $5000. That budgeted money never has an actual, it goes towards monies that may be used before the next big fundraiser. We'd like to put the money towards grants or a large goal. But how to show it on the books. It appears on our Treasurer's report with the ending cash balance, but how to show that we have it to spend. If we were a for-profit company we'd hand it out to the stock holders or Owner's Equity, but of course we are not. Is there a niffy name of a line item to dump this into? Any ideas from the Treasurer/accounting folks. Thanks.
