-
When a new grant arrives, the obligation should be captured as soon as the award is formally accepted. The important thing is to record the award and its conditions properly rather than simply waiting for the cash to reach the bank. Depending on the accounting framework and grant terms, this may involve accounts such as grant receivables or deferred revenue. I would also break the grant budget into clear cost categories so spending can be tracked against the award. That discipline helps prevent the unpleasant discovery that restricted funds have been spent on something else.