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UseCases/FundAccounting.mdwn
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# Fund Accounting
 

	
 
Many non-profits, in particular a
 
[fiscal sponsor](http://en.wikipedia.org/wiki/Fiscal_sponsorship), use some
 
form of [fund accounting](http://en.wikipedia.org/wiki/Fund_accounting) to
 
handle accounting tracking of income and expenses for specific projects, or
 
funds.
 

	
 
In fiscal sponsors, these funds are typically classified by auditors and/or
 
accountants as "temporarily restricted assets", and spending of the assets
 
are governed by a fiscal sponsorship agreement
 
([[see examples below|FundAccounting#Other_Resources]]).
 

	
 
<a id="Fund_Report"></a>
 
## Fund Report
 

	
 
The "fund report" is a shorthand name for a Temporarily Restricted Net Assets
 
Report.  This report shows the temporarily restricted income, expenses and
 
assets.  (An example of such a report can be found on page 6 of
 
[Conservancy's FY 2011 Audited Financial statement](http://sfconservancy.org/docs/conservancy_independent-audit_fy-2011.pdf).)
 

	
 
<a id="Subset_of_the_Books"></a>
 
## Subset of the Books
 

	
 
Ultimately, any account system that truly supports fiscal sponsorship must
 
provide all functions, reports, editing, interaction and viewing to allow a
 
user to view a "subset" of the books that are specific to any given fund.  In
 
essence, the books of a fiscal sponsoring org are proper superset of all the
 
books of its projects.
 

	
 
Thus, an individual project contributor wants to:
 

	
 
- View the books for that project as an independent set, unencumbered by
 
  transactions for other projects.
 

	
 
- [[Generate reports|GeneratingReports]] for that project's financial
 
  data, and have those reports only include data specific to that project.
 

	
 
The non-profit administrators want to:
 

	
 
- View the entire set of books for the organization, treating all income,
 
  expenses, and assets as belonging to the entire org, and only seeing the
 
  differences treating the project funds merely as "temporarily restricted
 
  assets".
 

	
 
- Be able to perform operations that span the entire books, such as
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