Our organization struggled with this recently and decided on a different
approach depending on the type of award. If the grant is from NIH and the
award allows for automatic carryforward of unobligated funds, we keep the same
account number throughout the project period. If the award does not allow for
automatic carryforward (CDC normally does not) then we establish new accounts
each year, however our accounting system allows us to number them
continuously by placing a letter at the end of the account A, B, C ... etc.
Normally, what drives how you account for the funds is the sponsor
financial reporting. CDC requires each year to be discretely presented and
obligations and unobligated balances cannot roll from one year to the next
without specific approval.

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Robert E. Burke, CPA
Corporate Controller
Health Research, Inc. (518)431-1200 ext 65