According to the accounting system of public institutions, except that the operating balance is negative and not carried forward, if the operating balance is eventually carried forward to the subject of "Public Offering of Fund-General Fund" regardless of whether it is a loss or not, then it will appear: if the operating income exceeds the income, the subject of "Public Offering of Fund-General Fund" may be negative. That is, according to the accounting system of public institutions, public funds can be negative.

However, in actual work, when filling in the annual departmental final accounts report software, if the public funds are filled in negative numbers, the audit will not pass.

The latest "Hospital Accounting System" stipulates that if the balance distribution account at the end of the year is a debit balance, it will be supplemented by public funds and no other distribution will be made; If the business fund is insufficient to make up for it, it shall be the accumulated uncompensated loss. When using public funds to make up for losses, debit the "public funds" subject and credit the "balance distribution" subject. Balance distribution should generally have no balance at the end of the year. If there is a debit balance at the end of the year, it is the accumulated uncompensated loss.

It can be seen that the new accounting system of public institutions has made it clear that public funds, as unrestricted funds, cannot be negative. If there are irreparable losses, record the losses in the account of "balance distribution" and list them in the item of "irreparable losses" in the balance sheet.

In addition, the operating balance loss is not carried forward.