Many organizations have financial statements with the balance sheet in a single column format. A disaggregated balance sheet is a financial statement presentation format that shows balance sheet items – assets, liabilities, and net assets – in separate columns by restriction type. This is an acceptable format under Generally Accepted Accounting Principles (also referred to as GAAP), and is required by the CDP for organizations who receive a financial audit or review.
If you indicated your organization had an audit or review during the survey customization of your Cultural Data Profile, the Balance Sheet section, will be broken out into two restriction types: unrestricted and restricted.
Unrestricted items are any existing or promised funds that can be used for any purpose, or money dedicated to a specific project that is already in progress. On your balance sheet, this may include all or a portion of your cash, receivables, investments, and net assets. It is also likely to include all of your prepaid expenses, fixed assets and liabilities.
Restricted items are any existing or promised funds that the donor has specified can only be used for a particular purpose and/or in a particular time period, or funds that the donor has stipulated are not to be used, but added to an endowment, investment, or other income-generating fund. Some restrictions expire either when your organization begins working on the designated project, or you have reached the time period designated by the donor. At that time, funds are “released” from restriction, and become unrestricted. On your balance sheet, restricted assets may include all or a portion of your cash, grants and pledges receivable, and/or investments.
If your organization did not receive an audit or review from an independent accounting firm, the Balance Sheet section of your Cultural Data Profile will be presented in a single column, or aggregated format. You will have the opportunity to enter your Net Assets (Assets minus Liabilities) by restriction.