Have you ever wondered how the fund balance of a self-supporting fund is computed and how this differs from the self-supporting fund’s cash balance? If so, see below for guidance:
- The fund balance of a self-supporting fund represents the difference between a fund’s total assets and total liabilities (i.e., what the fund “owns” vs. what the fund “owes”).
- While cash is an asset that is a piece of the fund’s overall computed fund balance, it is typically not the fund’s only asset. For example, in addition to cash, the self-supporting fund may also have other assets which contribute towards the fund balance, including accounts receivable, inventory for resale, and prepaid expenses.
- To find the fund balance of your self-supporting fund in Banner, go to Banner page FGITBSR (Trial Balance Summary). Once you enter your fund’s applicable chart and fund number, the computed fund balance will appear in the lower right-hand corner of the page at the end of the Current Balance column.
- If the computed fund balance is a credit, then your fund’s assets are greater than its liabilities. This is also commonly referred to as a “normal” or “positive” fund balance.
- However, if the computed fund balance is a debit, then that means your fund’s assets are less than its liabilities. This is commonly referred to as a “non-normal” or “negative” fund balance, and is denoted in Banner with a * in the last column.
Contact
For further details, contact UAFR's applicable subject matter experts within the Self-Supporting Funds section of UAFR's Who to Ask list.
