Cash Reserve Account on Church Balance Sheet

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My church balance sheet has 3 accounts under cash reserve (called reserve fund), e.g., reserved for roofing, pavement reserve, etc. The previous preparer told me that the balance of the reserve accounts cannot be changed, so the balance has always remained the same amount, e.g., $4,000, but the bank account balance is $1,000. In order to recon to bank account balance, there is another item ($-3,000) used to arrive at the ending balance of $1,000.

Can any one help me to understand whether the reserve accounts have to be stated $4,000 every year, and then make a negative adjustment to match the bank balance? How should accounting be done for the reserve fund? 

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Kate, there must be something I don't understand about your financial reports, because what your former preparer says simply makes no sense to me. The purpose of a financial statement is normally to give an accurate account of he current balances on a specified date. If the purpose is to maintain a permanent record of the original gifts (in this case $4000) some kind of running record can be kept. But the closing balance shown should be the actual balance held in the bank. Again, unless I simply don't understand your question.

Sounds like your reserve accounts should really be liabilities on your balance sheet. 

The account left on your balance sheet is what you would reconcile to the bank statement. 

So if you have $1,000 in your bank account that should reconcile to the cash account on the balance sheet. Then if you have $4,000 as a roofing liability you will know you must have used $3,000 that should have been reserved for roofing on something else.