Method C: Multiple Library Source Funds
This method of handling a deposit account allows you to use multiple source funds for the deposit account. Because the deposit account prepayment is taken from several library funds, the expenditures are made directly against the source funds as items are received, and then secondarily recorded in the deposit account fund. An example of the need for this might be a deposit account set up with the U.S. Government Printing Office. The publications of USGPO cover a wide range of subjects, and libraries might need to expend against funds appropriate to each subject area without knowledge beforehand of what subject areas will be covered.
For information on how this method works, see the following.
Example Funds
To show how this method works, the examples below use "govpb", "music", and "bioag" to represent the source funds and "dpgpo" to represent the deposit account fund.
Setting Up the Funds
To set up the funds using this method, do the following.
- Create funds to use as the source funds if they do not already exist. These are the funds you expend against as items are received from the vendor.
- Create a fund for the deposit account if one doesn't already exist. Innovative recommends creating mnemonic codes like "dpgpo", with the beginning portion indicating it is a deposit account, for example, "dp", and the end portion specifying the vendor, for example, "gpo" for the U.S. Government Printing Office.
- When you make the prepayment to the vendor, use the Fund Adjustment Table to record a positive expenditure in the deposit account fund (dpgpo).
After you have completed the steps above, your source funds have their initial appropriations, and your deposit account fund has a negative balance (reflecting the amount of the prepayment). If your prepayment to the vendor is $100.00 and your library uses three source funds (with varying appropriation amounts), your fund balances will look similar to the following.
| Fund | Appropriation | Expenditure | Free Balance |
|---|---|---|---|
| govpb (source fund) | $500.00 | $0.00 | $500.00 |
| music (source fund) | $300.00 | $0.00 | $300.00 |
| bioag (source fund) | $400.00 | $0.00 | $400.00 |
| dpgpo (deposit account) | $0.00 | $100.00 | -$100.00 |
You can now begin processing items for your deposit account.
Processing Items
With Method C, items are processed in two separate steps. When you receive an item, do the following.
- Process the item using the standard invoicing functions. If you did not create an order record for the item, process the item using an x record, entering the fund against which you want to expend the amount of the item.
- Using the Fund Adjustment Table, enter a credit (a negative expenditure adjustment using a minus sign) in the deposit account fund (dpgpo) to reduce the amount in the expenditure column by the amount of the item received.
Deposit Account Balance
The balance in the deposit account is always a negative amount. It must be read as a plus figure to determine the amount of money that is actually left in the deposit account with the vendor.
After processing three items totaling $23.00, each of which was charged to a different source fund, your fund balances will look similar to the following.
| Fund | Appropriation | Expenditure | Free Balance |
|---|---|---|---|
| govpb (source fund) | $500.00 | $10.00 | $490.00 |
| music (source fund) | $300.00 | $8.00 | $292.00 |
| bioag (source fund) | $400.00 | $5.00 | $395.00 |
| dpgpo (deposit account) | $0.00 | $77.00 | -$77.00 |
Understanding the Balances in Fund Accounts Using Method C
The total of fund balances using Method C reflects the library's cash balance in its own account, excluding monies held by the vendor. The true balance of the deposit account is always the reverse of the balance listed in the deposit account fund record. In the example above, -$77.00 actually indicates that $77.00 remains in the vendor's account.
