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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, restricted funds are identified using the segments :Fund A, :Fund B and :Fund C. The unrestricted General Fund is identified using :General.

Projects are tracked through cost centres CC2, and donors through cost centres CC3.

For ordinary receipts and payments, the INPAS Income & Expense tutorial generally adds the fund segment to both the Account and Category columns. This allows the bank or cash movement and the corresponding income, expense or liability to be attributed to the same fund.

For transfers between funds, the Account and Category can contain different fund segments to identify the source and destination. Non-cash accounting adjustments can also use segments on both sides. The balance of an individual segment card must not automatically be interpreted as the net assets of that fund.

Receiving a restricted donation without delivery obligations

The organisation receives EUR 727 from Benjamin Foster for Fund A and Project 1:

• Date: 2026-01-10
• Income: 727.00
• Expenses: leave empty
• Account: Bank:Fund A
• Category: Grants restricted Project 1:Fund A
• CC2: Project 1
• CC3: Benjamin Foster

The donation is recognised as income attributable to Fund A.

Paying project expenses

The organisation pays EUR 307 for Project 1:

• Date: 2026-01-12
• Income: leave empty
• Expenses: 307.00
• Account: Bank:Fund A
• Category: Expenses Project 1:Fund A
• CC2: -Project 1
• CC3: leave empty

Considering these two transactions alone, the project shows a surplus of EUR 420.

Receiving an advance with delivery obligations

The organisation receives EUR 3,000 in advance for Fund B:

• Date: 2026-02-11
• Income: 3000.00
• Expenses: leave empty
• Account: Bank:Fund B
• Category: Grant oblig. liability:Fund B
• CC2: leave empty
• CC3: Olivia Reynolds

In this example, Grant oblig. liability is a balance-sheet account defined in the Accounts table, not an income category.

Although EUR 3,000 is entered in the Income column because money is received, it is recognised as a liability, not as grant revenue.

Recognising revenue after fulfilling delivery obligations

The association recognises EUR 1,200 after completing part of its obligations:

• Date: 2026-05-27
• Income: 1200.00
• Expenses: leave empty
• Account: Grant oblig. liability:Fund B
• Category: Grants restricted Project 2:Fund B
• CC2: Project 2
• CC3: leave empty

This is a non-cash accounting adjustment. It reduces the outstanding liability and recognises revenue without increasing the bank balance.

Recording unrestricted income in the General Fund

The tutorial includes an unrestricted donation receipt of EUR 25,000:

• Date: 2026-01-02
• Income: 25000.00
• Expenses: leave empty
• Account: Bank:General
• Category: Grants unrestricted:General
• CC2: leave empty
• CC3: Miles Thompson

The segment :General assigns the recognised income to the unrestricted General Fund.

Recording transfers between funds

The tutorial includes a permitted reallocation of EUR 900 from the General Fund to Fund A:

• Date: 2026-04-18
• Income: 900.00
• Expenses: leave empty
• Account: Bank:Fund A
• Category: Bank:General
• CC2: leave empty
• CC3: leave empty

This transaction changes the fund attribution of an existing bank balance. It does not represent an external bank receipt, create new revenue or change the association's total cash balance.

Both Account and Category refer to balance-sheet accounts, and the segment is used on each side to identify the source and destination funds.

The association must ensure that transfers between funds are permitted by the applicable restrictions.

Checking fund movements and net assets

Use reports subdivided by segment to analyse the income, expenses and relevant assets and liabilities attributed to individual funds.

The balance shown on an individual segment card is not necessarily the fund's net asset balance. Some transactions affect liabilities instead of income, and transfers or non-cash adjustments may involve two segment-attributed positions.

For example, the EUR 3,000 advance received for Fund B is initially a liability. It does not represent a deficit in the fund's net assets.

The organisation must reconcile opening balances, recognised income, expenses, permitted transfers, other changes and closing balances for each relevant fund.

INPAS requires accrual-based financial reporting. Additional year-end adjustments may be necessary to ensure that the financial statements are complete.