101.4 - Statewide Accounting Policy - Restricted Assets

Policy Area: Accounting and Financial Reporting
Policy Sub Area: Account Classification
Authority:  GASB Codification Sections 1800 and 2200
Effective Date: 7/1/2006
Last Revision Date: 6/30/2017
Policy Owner/Division: Statewide Accounting


For governmental funds of the State primary government, the accounting classification of restricted assets will be handled at a statewide level. For year-end reporting, OSC staff will prepare worksheet entries on the fund level working trial balances to reclassify unrestricted cash and cash equivalents, investments, and receivables to restricted accounts. For proprietary funds of the State primary government and for component units, the accounting classification of restricted assets should be handled at the agency level. The chart of accounts includes the following restricted asset accounts: 

Cash, Cash Equivalents, and Pooled Cash - Current Restricted
11RXXX Accounts 

Cash, Cash Equivalents, Pooled Cash - Noncurrent Restricted
121XXX Accounts 
122121 Cash with Fiscal Agent – Noncurrent

Investments Outside the State Treasurer and Pooled Investments - Current Restricted
112125 - Restricted Investments
112152 - Allowance Fair Value Restricted Investments
112250 - Bond Proceeds - Restricted (For Use Only by State Treasurer and OSC Central Accounts) 

Investments Outside the State Treasurer - Noncurrent Restricted
122125 - Endowment Investments
122126 - Restricted Investments
122152 - Allowance Fair Value Endowment Investments
122153 - Allowance Fair Value Restricted Investments 

Receivables - Noncurrent Restricted
124100 - Restricted Due From Primary Government 
124200 Restricted Due From State of NC Component Unit



Accounting Guidance

Restricted assets are those assets whose use is subject to constraints that are either (a) externally imposed by creditors, grantors, contributors, or laws or regulations of other governments or (b) imposed through constitutional provisions when such constraints change the nature or normal understanding of the availability of the asset. For example, cash and investments normally are classified as current assets and a normal understanding of these assets presumes that restrictions do not limit the government's ability to use the resources to pay current liabilities. However, the following resources are not available for current operations and should be reported as restricted assets:


  • Resources restricted or designated for the acquisition/construction of the government's own capital assets. 
  • Resources legally segregated for the payment of principal and interest only (as required by debt covenants) and that cannot be used to pay other current liabilities. 
  • Temporarily invested debt proceeds. 
  • Nonexpendable resources of permanent funds. 

Related Documents (Memos/Forms)


Revision History

  • 6/30/2017 - Added accounts 122121 and 124200.  Added reference to GASB Codification Section 2200.  Added constraint criteria to ‘Accounting Guidance’ section. Minor formatting.