How do enter a refund your organization paid for unused grant money

Millie Steele

I am new to RE and I have no idea how to do this. We received a pledge and the full pledge payment from a foundation in 2011. Because the entire amount was not used toward the program, we wrote a check back to the foundation in 2013 for the unused amount of money. How do I enter this into RE? Any help would be appreciated. Do I do an adjustment to the original pledge and pledge payment?

JoAnn Strommen

Millie Steele:
I am new to RE and I have no idea how to do this. We received a pledge and the full pledge payment from a foundation in 2011. Because the entire amount was not used toward the program, we wrote a check back to the foundation in 2013 for the unused amount of money. How do I enter this into RE? Any help would be appreciated. Do I do an adjustment to the original pledge and pledge payment?

Yes, I think adjustments is a good option.  You can notate why the amount is changed and will have a clear, easy audit trail.

My 2 cents...

Lisette Depew-Kubie

Millie Steele:
I am new to RE and I have no idea how to do this. We received a pledge and the full pledge payment from a foundation in 2011. Because the entire amount was not used toward the program, we wrote a check back to the foundation in 2013 for the unused amount of money. How do I enter this into RE? Any help would be appreciated. Do I do an adjustment to the original pledge and pledge payment?

Since RE is not accounting software, it cannot record a "debit" or "refund", so I'm with JoAnn on this. Simply adjust the original pledge amount down and make sure to leave a note on the adjustment record for audit/historic purposes that explains why you adjusted it.

Melissa Graves 2

Millie Steele:
I am new to RE and I have no idea how to do this. We received a pledge and the full pledge payment from a foundation in 2011. Because the entire amount was not used toward the program, we wrote a check back to the foundation in 2013 for the unused amount of money. How do I enter this into RE? Any help would be appreciated. Do I do an adjustment to the original pledge and pledge payment?

If the agreement with the foundation included a possible refund of unspent money then this gift should not have been entered/counted until the money was spent. At this time I would say an adjustment would be the best route.

(sorry for late reply - just back from vacation)