How should this grant be treated? This is possibly the most common question we get asked by schools. While we would love to be able to give one simple answer in this newsletter, unfortunately it isn’t that easy. We can however offer some general advice that may assist.
Fact: There seems to be an increasing range of grants being made to schools for various reasons.
- If the grant or funds are provided for a specific project or purpose, then they should only be used for that purpose;
- Look to the grantor for confirmation as to how it should be treated and accounted for;
- Set up your recording so that the receipt and use of grant funds can be clearly identified in your accounting system;
- Ensure the receipt and use of grants is monitored regularly and reported to the Board of Trustees. The Board is ultimately responsible for correct treatment and reporting of these grants.