Hard money is the funds that are appropriated for the College by the state. The term hard money comes from a traditional meaning that this source of funds is stable and secure. Hard money accounts will always start with a 2-1xxxx.
Soft money are funds with sources other than state appropriations.
The term soft money connotes that these funding sources may not be as stable or long lasting as hard money. There is not a transfer of money or cash from one account to the other. In this example, the original expenses occurred in 2-19999. When these expenses are moved out of the account, the balance available will increase. The expenses will then be charged to 3-16999, whose balance available will decrease.