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Financial Statement of Funds

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FINANCIAL STATEMENT OF FUNDS

Identifying Information

Client Name:

Individual Corporation Limited Liability Company (LLC) Partnership Trust Other

Statement Date & Currency

Statement As Of:    Currency:

Summary of Funds

Opening Balance:

Total Receipts (during period):

Total Disbursements (during period):

Net Change:

Closing Balance:

Sources of Funds (Itemize each source)

Provide account name, institution, account type, last 4 digits, and available balance.

Planned Uses of Funds (Itemize)

List each intended use, payee, expected disbursement date, and amount.

Liabilities and Encumbrances

List material liabilities that would affect available funds (loan type, creditor, outstanding balance, payment status).

Supporting Documents (Select all attached)

Bank statements (most recent)
Letter of credit or banker confirmation
Escrow agreement
Promissory note(s)
Other supporting documents

Certification and Authorization

I, the undersigned, certify that the information contained in this Financial Statement of Funds is true, complete and accurate to the best of my knowledge. I acknowledge that this statement is provided to induce reliance by the recipient for the stated purposes and that any material misrepresentation or omission may result in legal or contractual remedies. I authorize the recipient and its agents to verify any information contained herein and to obtain copies of records necessary to confirm balances, account status, and supporting documentation.

I agree to notify the recipient promptly of any material change in financial condition that would affect the availability of funds disclosed in this statement prior to disbursement. This certification is given under penalty of perjury and other applicable remedies for false statements.

Printed Name:

Title / Capacity:

Signature:

Date:

Contact Phone:

Contact Email:

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What the Financial Statement of Funds Is and when it’s used

A Financial Statement of Funds documents the source, amount, purpose, and disposition of money used in a transaction or account period. It typically lists incoming and outgoing transfers, account identifiers, funding dates, and any restrictions or contingencies attached to those funds. Organizations use it to support audits, reconciliations, escrow releases, grant compliance, and internal approvals. The statement can be a standalone form or part of closing packages, grant reports, loan draws, or internal treasury reports and must be clear enough to reconcile with bank records and supporting documentation.

Why a precise Financial Statement of Funds matters

A clear statement reduces reconciliation errors, supports regulatory and tax reporting, and documents the chain of custody for funds. Accurate records protect parties from payment disputes and speed audit review and closing processes.

Why a precise Financial Statement of Funds matters

Who typically prepares and reviews this statement

Common preparers include treasury staff, accountants, escrow officers, grant administrators, and closing agents.

  • Accountants and controllers preparing reconciliations and audit schedules.
  • Escrow or closing officers documenting deposits, disbursements, and holdbacks.
  • Grant managers and nonprofit finance leads tracking restricted funds.

Reviewers include internal auditors, external auditors, lenders, grantors, and regulatory examiners who require documented fund flows.

Core elements to include in a professional statement

A complete Financial Statement of Funds is structured to make verification straightforward and to link each line item to supporting evidence.

Document Header

Title, version, effective date, and identifying information such as company name and statement period so reviewers know scope and applicability.

Account Details

Bank or account numbers (masked if public), institution name, and routing or escrow identifiers to connect items to bank records.

Funding Sources

Line-item list of fund origins (payments, loans, grants) with dates and reference numbers to support traceability.

Disbursements

Itemized outflows, payee names, check or wire references, and purpose descriptions to reconcile against invoices or closing instructions.

Balances and Totals

Beginning balance, additions, subtractions, and ending balance with clear arithmetic and subtotaling for each category.

Supporting References

Links or references to attachments (bank statements, invoices, authorization letters, escrow instructions) enabling audit verification.

Step-by-step: preparing and finalizing the statement

Follow these core steps to prepare, verify, and distribute a compliant Financial Statement of Funds.

  • 01
    Gather source documents: Collect bank statements, receipts, invoices, and authorization letters.
  • 02
    Populate the form: Enter every line item with dates, references, and amounts.
  • 03
    Reconcile totals: Ensure arithmetic matches supporting bank records.
  • 04
    Obtain approvals: Have authorized signers or approvers sign and date the form.

Configuring an online workflow for this statement

Set up a repeatable template and routing that matches your approval chain and audit needs.

Template Save a reusable form with required fields and validation rules.
Conditional Fields Show or hide fields based on fund type or signatory role.
Authentication Use email, SMS code, or stronger ID verification per policy.
File Format Store signed copies as PDF/A for long-term fidelity.
Routing Auto-send to approvers in sequence and to archive storage.

Typical destinations and recipients for completed statements

Identify where the final statement must be sent so routing is correct the first time.

  • Internal Finance: Controller and treasury teams for reconciliation and ledger posting.
  • Escrow Agent: For closing funds, send the statement to the escrow officer for release.
  • External Auditor: Provide signed statements and attachments during audit cycles.
  • Regulators or Grantor: Submit to oversight agencies or grantors where required by contract or law.

Digital submission and format requirements

Choose a platform that supports PDF, DOCX, secure storage, and audit trails.

  • File formats: PDF, DOCX supported
  • Integrations: Salesforce, NetSuite, Google Workspace
  • Authentication: Email, SMS, SSO

Ensure the chosen solution preserves an audit trail (timestamps, IP, signer identity) and supports secure export for archival and regulatory review.

Timing expectations and common internal deadlines

Set clear internal deadlines to avoid late reconciliations, missed approvals, or delayed closings.

At funding:

Prepare and initial the statement when funds are received.

Before closing:

Deliver final statement to escrow or closing agent prior to disbursement.

Monthly reconciliation:

Include statement in month-end reconciliations within standard close cycles.

Annual reporting:

Attach statements to year-end audit or tax file as needed.

On request:

Provide copies promptly to auditors, grantors, or regulators upon formal request.

Common preparation mistakes to avoid

  • Failing to include reference numbers that link line items to invoices or bank entries.
  • Using inconsistent dates that create reconciliation mismatches across documents.
  • Omitting signatory names or titles so signatures cannot be validated against authority lists.
  • Posting amounts without two-decimal precision or mixing currencies without conversion details.

Practical risks and potential consequences

Tax Exposure: Incorrect reporting may trigger IRS review or adjustment.
Audit Findings: Incomplete records can lead to audit exceptions and remediation costs.
Contract Delay: Missing documentation can delay escrow releases or loan draws.
Reputational Risk: Persistent errors undermine stakeholder trust.
Regulatory Penalties: Noncompliance in regulated industries can cause fines.
Fraud Allegations: Poor traceability raises suspicion and legal exposure.

Real-world examples of how statements are used

Two common scenarios show how a clear statement reduces friction and supports required approvals.

Escrow Closing Example

A buyer’s wire received and recorded on the statement

  • shows wire reference and date
  • The escrow officer matched totals to the bank statement and released funds the same day, avoiding a closing delay.

Grant Reconciliation Example

A nonprofit records grant receipts and restricted disbursements

  • ties each expense to grant line items
  • The auditor used the statement plus invoices to confirm compliance with grant terms and closed the audit without exceptions.

eSignature vendor comparison for signing Financial Statement of Funds

Pricing and core capabilities vary across eSignature providers; signNow is shown first for easy comparison. Confirm plan details with each vendor before procurement.

signNow DocuSign Adobe Sign PandaDoc HelloSign
Starting Price $8/user/mo $15/user/mo $14/user/mo $19/user/mo $15/user/mo
Free Trial 7-day free trial Varies Varies Varies Varies
Bulk Send Yes Yes Yes Yes Varies
Audit Trail Yes Yes Yes Yes Yes
HIPAA Compliant Yes Yes Yes No No

Frequently asked questions about Financial Statement of Funds

Answers to common questions about validity, signatures, supporting documentation, and retention for fund statements.


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