How do I create a template?

Select Add/Edit Supplier Invoice Templates found under the Data Entry tab in Accounts Payable. The system will assume that it’s the first template being created, and will default to new. Future templates will require a click on the “new” button (or File then New). Enter a template name, and then select a supplier. Use “100” as a basis to distribute monies against pre-defined g/l accounts, i.e. 30 16204.1 60 16204.2 10 16203.3 The purpose of the distribution is to create the calculation used by the system to distribute the total amount of the respective invoice. Once the template is created, go to Add/Edit Supplier Invoices and click on Load a Template (located on the toolbar – picture of a yellow cross with a window to the right of it). Select the template name and enter the amount of the respective invoice. Enhanced will use the “distribution” created in the template to distribute the total of the invoice to the various g/l account numbers. The template can be used as often as desired. Note: a/p templates don’t appear on the Operating Statement until they are posted.

Minnesota Fund Accounting | Enhanced Business Systems

When we think of traditional business accounting, the ultimate goal is determining profitability—calculating the “bottom line” to see if a company made money. However, when it comes to governments and public institutions, the primary goal shifts from profitability to accountability. This is where fund accounting comes into play. It is the specialized financial framework that ensures public money is tracked, protected, and spent exactly as the law intended.

What is Fund Accounting?

Instead of pooling all revenue into one massive bank account, fund accounting splits an organization’s resources into separate, self-balancing accounts called funds. Each fund has its own specific purpose, its own set of rules, and its own separate balance sheet.

You can think of fund accounting like the “envelope” budgeting system you might use at home. You might have one envelope for “Groceries,” one for “Rent,” and one for “Vacation.” You cannot legally reach into the “Rent” envelope to pay for your “Vacation.” Government funds work the exact same way, but on a legally binding, multi-billion-dollar scale.

Generally, these funds fall into three broad categories:

Governmental Funds: These handle the core tax-supported activities of the government (e.g., the General Fund, Special Revenue Funds, Capital Projects, and Debt Service Funds).
Proprietary Funds: These operate more like business entities, where the government charges a fee for a specific service (e.g., municipal water utilities or a state-run lottery).
Fiduciary Funds: These account for assets held by the government in a trustee capacity for others (e.g., state employee pension funds).

Why Fund Accounting is Crucial

Fund accounting is not just a bookkeeping preference; it is a vital mechanism for maintaining public trust and operational integrity.

Legal and Constitutional Compliance: Many revenue streams are legally restricted by state constitutions, statutes, or federal grant agreements. Fund accounting ensures that these legal mandates are mathematically enforced.
Transparency and Accountability: Taxpayers have a right to know how their money is being used. By compartmentalizing resources, governments can easily report on exactly how much was collected for a specific purpose and how much was actually spent on it.
Financial Control: It prevents the dangerous practice of commingling funds. If a government is running a deficit in its general operations, fund accounting stops it from quietly draining restricted reserves (like a highway trust fund) to cover the shortfall.

Why It Is Highly Useful for the State of Minnesota

For a state like Minnesota, which operates on a massive biennial (two-year) budget exceeding $70 billion, Minnesota fund accounting is the only way to keep the government functioning legally and transparently. The state relies heavily on this structure to manage a complex web of state taxes, federal grants, and dedicated revenues.

1. Managing the General Fund vs. Dedicated Revenues In Minnesota, the General Fund is the state’s primary operating engine, largely fueled by individual income taxes and sales taxes. It pays for broad, flexible needs like K-12 education, public safety, and Local Government Aid (LGA) distributed to cities across the state.

However, Minnesota also utilizes highly specific Special Revenue Funds. A perfect example is the state’s Natural Resources Fund and Game and Fish Fund, managed by the Department of Natural Resources (DNR). These funds are fueled by specialized fees—like hunting licenses, state park permits, and mining royalties. Fund accounting guarantees that a hunter’s license fee goes directly toward wildlife management and conservation, and cannot be redirected to fill potholes or fund general administration.

2. Honoring Voter-Approved Mandates (The Legacy Amendment) In 2008, Minnesota voters passed the Clean Water, Land and Legacy Amendment, which increased the state sales tax by three-eighths of one percent. The voters mandated that this money be split strictly among four areas: outdoor heritage, clean water, parks and trails, and arts and cultural heritage. Fund accounting is the exact financial mechanism that Minnesota Management & Budget (MMB) uses to physically isolate those fractions of a penny from the general sales tax, ensuring they are only dispersed to the authorized Legacy funds.

3. Federal Grant Compliance and Crisis Management When the federal government sends money to Minnesota—whether for highway infrastructure or nationwide legal settlements—it comes with strict strings attached. For example, when Minnesota counties recently received millions from a multistate opioid settlement, they were required to create separate, dedicated special revenue funds. Fund accounting ensures this settlement money is spent strictly on opioid addiction treatment and prevention, allowing the state to easily audit and verify compliance.

4. Long-Term Planning and Rigorous Auditing Because Minnesota operates on a two-year budget cycle (running from July 1 of an odd-numbered year to June 30 of the next), state economists must forecast revenues and expenditures far in advance. Fund accounting allows the state to isolate volatile revenue streams from stable ones, making it easier to predict shortfalls and maintain necessary budget reserves. Furthermore, it allows the Office of the State Auditor (OSA) to conduct rigorous, transparent audits of over 3,300 local units of government across the state to ensure financial integrity at every level.

Ultimately, fund accounting is the backbone of public financial stewardship. In a diverse and economically active state like Minnesota, it provides the necessary guardrails to ensure that whether a dollar comes from a federal grant, an income tax, or a state park pass, it is spent exactly how the law and the taxpayers demand.