USA Vacation Leave a Restricted fund?

[Dante]

Hello!

The problem I am trying to resolve has a few different points, but the main one I need to establish is whether or not accrued vacation leave is considered a restricted fund? Once it has been accrued and set into that fund, can that money be used for other expenses that do not include those for which the money was set aside?

I've tried searching all around but I can't find anything definitive to say that it is a restricted or unrestricted fund. I really need something legal that I can base the opinion on.

Any help would be grand!
Also, I don't deal with accounting issues on a regular basis, so I apologize if my terminology is a little off.

Thanks,

Dante

 

[kirby]

Usually that account is not restricted. To find out, look at your audited financial statements and see if there is anything written indicating the account is restricted. if nothing stated, then it is not.

The account balance should be equal to the liability for unpaid accrued vacation. So if management uses the account for something else then they are not reporting the account per GAAP. That is a problem.