Income & Expenses: INPAS Standard Template

[This page is currently being updated]

This template was originally developed using draft INPAS guidance and should be reviewed against the final 2025 edition of INPAS.

The NPO is responsible for ensuring that its financial reports comply with all applicable INPAS requirements. Using the template alone does not guarantee compliance.

INPAS requires accrual-based financial reporting. When using an Income & Expenses accounting template, the NPO must ensure that all relevant assets, liabilities, receivables, payables, accrued income and expenses are correctly recognised and reported in accordance with INPAS.

Recording transactions by fund

In this template, funds are identified using segments (:Fund A, :Fund B, :Fund C). Projects are tracked using cost centres CC2 and donors using cost centres CC3.

For the following examples, add the fund segment only after the code entered in the Category column. Do not also add it after the Account code, as this can result in duplicated amounts on the segment account card.

Receiving a restricted donation without delivery obligations

The organisation receives EUR 1'000 for Fund A and Project 1, with no enforceable delivery obligation:

• Date: 2024-01-15
• Description: Fund A restricted donation without delivery obligations
• Income: 1000.00
• Expenses: leave empty
• Account: Bank
• Category: Grants restricted Project 1:Fund A
• CC2: Project 1
• CC3: Benjamin Foster

Paying expenses for Fund A

The organisation pays EUR 300 for costs incurred in Project 1:

• Date: 2024-01-22
• Description: Fund A project expense paid by bank
• Income: leave empty
• Expenses: 300.00
• Account: Bank
• Category: Expenses Project 1:Fund A
• CC2: -Project 1
• CC3: leave empty

The resulting surplus attributed to Fund A is EUR 700.

Receiving a grant with delivery obligations

The organisation receives EUR 800 in advance for Fund B, before fulfilling the enforceable delivery obligations specified in the grant agreement:

• Date: 2024-02-05
• Description: Fund B advance subject to enforceable delivery obligation
• Income: 800.00
• Expenses: leave empty
• Account: Bank
• Category: Grant oblig. liability:Fund B
• CC2: Project 2
• CC3: Olivia Reynolds

In this example, the Category column refers to a liability account in the Accounts table rather than an income category. The amount is not yet recognised as grant revenue.

Checking fund movements and net assets

Use reports subdivided by segment to analyse income, expenses and relevant assets or liabilities attributed to each fund.

The amount shown on a segment card is not automatically the fund's net asset balance. In the example above, Fund B shows a negative segment balance of EUR 800.00 because the advance is recorded as a liability. This does not represent a deficit in the fund's net assets. The organisation must reconcile the opening and closing balances of each fund using the required accounting information.

Do not record an additional payment from the bank to a restricted-fund account merely to allocate the donation to that fund. This would incorrectly reduce the bank balance without an actual payment.

This template must also be used consistently with accrual-based financial reporting. Additional year-end adjustments and reconciliations may be necessary to prepare financial statements in accordance with INPAS.