This is true even though the reserve funds are intermingled with the accounts of the church. On the other hand, they also know the total amount spent on training by the church since both the youth group training expense and all other training expenses are included in the church books as part of total training costs for the church for that year. This method of accounting for special reserves tells the Board the true annual cost of running the church, including specially raised gifts. We did, however, increase both the revenue and expenses of the church with these funds. Such adjustments to the adopted budget should not require review and approval by the Board.
Nothing is done to change the value of the building on the balance sheet.
Such simple reasoning, of course, flies in the face of the very transaction we are documenting. I would be loath to take the value of every church building in the denomination greater than 25 years of age to zero, fearing we would then lose the basis for further savings.