Working with Your Accountant

GrantLink is a grant subledger that tracks spending and calculates indirect costs. Some GAAP-required entries must still be prepared by your accountant using data from GrantLink.

GrantLink's Role vs. Your Accountant's Role

Task	Who Handles It
Track grant awards and receipts	GrantLink
Allocate expenses to grants	GrantLink
Calculate and post IDC journal entries	GrantLink
Generate funder reports	GrantLink
Net Assets Released from Restrictions	Accountant
Revenue recognition timing decisions	Accountant
Year-end close and financial statements	Accountant

The Net Assets Released Entry

Under GAAP (ASU 2016-14), when donor-imposed restrictions are satisfied, you must reclassify net assets from "With Donor Restrictions" to "Without Donor Restrictions."

When to Book This Entry

• Monthly (recommended) or quarterly
• Based on actual expenses incurred for the restricted purpose
• Amount equals direct costs + indirect costs for the period

Sample Journal Entry

Account	Debit	Credit
Net Assets With Donor Restrictions	$X
Net Assets Without Donor Restrictions		$X

Or, using the Statement of Activities presentation:

Account	Debit	Credit	Column
Net Assets Released (Restricted)	$X		Restricted
Net Assets Released (Unrestricted)		$X	Unrestricted

Getting the Amount from GrantLink

For each restricted grant:

1. Go to grant Overview tab
2. Note the Total Spent for the period:
   • Direct Costs
   • Indirect Costs
   • Total = Release Amount

Or run a spending report across all restricted grants for the period.

Coordination Checklist

Share this with your accountant each period:

Monthly Tasks

• All expenses are allocated to grants
• IDC runs are calculated and posted for each active grant
• Fund receipts are recorded for all contributions received

Period-End (for Accountant)

• Get spending totals from GrantLink (direct + indirect by grant)
• Book Net Assets Released entries based on spending totals
• Verify release amounts don't exceed restricted balances
• Reconcile GrantLink grant balances to GL restricted net asset accounts

Year-End

• Final IDC runs posted for fiscal year
• All allocations complete
• Net Assets Released entries booked through year-end
• Grant status updated (closeout completed grants)

Revenue Recognition Considerations

GrantLink tracks when cash is received via fund receipts. GAAP revenue recognition may differ:

Contribution Type	GAAP Treatment
Unconditional contribution	Revenue when promised
Multi-year pledge	Revenue when pledged (with receivable, possibly discounted)
Conditional grant	Revenue when conditions are substantially met
Cost-reimbursement grant	Revenue as qualifying costs are incurred

Your accountant determines proper revenue recognition timing. GrantLink provides the supporting data.

Avoiding Double-Counting IDC Revenue

If you use both:

• IDC journal entries (crediting a recovery account), AND
• Claim invoices (with IDC line items)

Ensure you're not recognizing IDC revenue twice. Options:

1. IDC JE credits revenue — Don't include IDC on claim invoices as revenue
2. Claims include IDC revenue — Use IDC JEs for internal allocation only (contra-expense)

Discuss with your accountant to establish the right approach.

Account Mapping Recommendations

GrantLink Concept	Suggested QBO Account
Grant contributions (restricted)	Contribution Revenue – With Donor Restrictions
Grant contributions (unrestricted)	Contribution Revenue – Without Donor Restrictions
Indirect Cost Recovery	Revenue (for reimbursable) or Contra-expense (internal)
Net Assets With Donor Restrictions	Equity – With Donor Restrictions
Net Assets Without Donor Restrictions	Equity – Without Donor Restrictions

Reports to Share with Your Accountant

For Net Asset Release Entries

• Grant spending by period — Direct + indirect costs per grant

For Audit Preparation

• Transaction detail by grant — All allocated expenses
• IDC calculation history — Full breakdown of each run
• Fund receipt history — All contributions by grant

For Financial Statement Preparation

• Grant summary — Award, received, spent, remaining
• Budget vs. actual — By category per grant

Best Practices

1. Meet monthly — Review grant status and spending with your accountant
2. Share GrantLink access — Give your accountant read access to reports
3. Document decisions — Record revenue recognition choices
4. Reconcile regularly — Match GrantLink grant balances to GL accounts