UK Recognition of grant expenditure through an agent

[Megan Williams]

Hi,

We're co-funding a grant with another organisation but making a payment to the organisation before the award of the grant. if the grant is awarded it'll be paid out but if not we receive the cash back. We are half the board deciding on applicants and therefore we still have control over the money.

when the cash goes out we would
CR cash
DR ??

Thanks

 

[Julia Satin]

To clarify, do I understand you correctly that you are making the payment to the organisation that is expected to award the grant to a grantee in order to pay that grant in full from one source. Say you paid £50 and then this organisation is expected to award a grant of say £150, in order to pay out total of £200 to a grantee?
If this is the scenario then until the money are paid out to the grantee,
you should record Dr other creditors.