In the charity I have taken over the accounting for we have lots of restricted funds set up. I have two questions I would be very grateful for guidance on:

In recent years we have posted two sets of year end adjustments.

1.The first one is the regular year end adjustment which clears down the P&L and posts to the relevant restricted reserve.

2.Then we have posted a second manual adjustment which adjusts the reserves so that they agree to the statutory financial statements. This journal reclasses funds which are not truly restricted (but are just classed as such in the management accounts to facilitate tracking) to unrestricted as they appear in the financial statements. In other words we debit the "not true" restricted reserve and credit unrestricted reserves. 

My question is: 

For several years, when we posted the second manual adjustment, we debited and credited the relevant restricted/unrestricted reserves but did not link a fund to this manual reserves adjustment. This means that whilst the nominal codes for restricted reserves in the trial balance are correct, when I look at the list of charitable funds in SAGE, the balances on these funds bear no relation to the actual balance on the nominal account associated with the fund because only the nominal code reflects this manual adjustment, not the charitable fund balance. 

To illustrate:

In restricted reserve 10

Year 1 Ledger adj (200)

Year 2 Ledger adj (300)

Year 3 Ledger adj (400)

Year 3 Reserves adj 400

Balance (500)

In the associated nominal account

Year 1 ledger adj (200) 

Year 1 reserves adj 200 (no fund associated with the journal)

Year 2 ledger adj (300)

Year 2 reserves adj 300 (no fund associated with the journal)

Year 3 ledger adj (400)

Year 3 reserves adj 400 (fund 10 associated with the journal)

Balance Nil 

What can I do about this? I feel it is quite confusing and think it would be much more straightforward if I could scan down a list of charitable funds in SAGE that reflected the actual position. 

My thoughts on how to remedy this were to edit the reserves adjustment so that they are linked to a fund but not sure of the implications of going back potentially 7 years to do this. I had thought I could do a funds transfer to true up the position but don't know how to do this without impacting the associated nominal code which has already had the journal posted to it. 

Please could anyone advise me? 

Thank you