Resolving Diagnostic 25239 in Lacerte

If you're receiving the following Diagnostic:

• Total functional expenses, Form 990, Part IX, column (A), line 25, does not equal the sum of columns (B), (C), and (D).

This means that the total expenses reported in Column A of Form 990, Part IX, Line 25 do not match the sum of the individual components:

• Column B – Program Services
• Column C – Management and General
• Column D – Fundraising

The IRS expects Column A to always equal B + C + D on this line.

Example:
If you have the following on Line 10:
Column A = 10,000
Column B = 7,000
Column C = 2,000
Column D = blank

Then B + C + D = 9,000, which causes the error. You can either add 1,000 to Column D or adjust Column A to 9,000.

Follow these steps to resolve:

1. Navigate to Screen 34, Functional Expenses in the Exempt Organization module. This screen corresponds to Part IX of Form 990.
2. Ensure that the value in Column A (Total) equals the sum of Columns B, C, and D for each line.
3. If Column A is filled but Columns B, C, and D are blank or don’t add up to the same total, you’ll need to adjust them.
4. Fix common issues:
   • Remove manual overrides in Column A if they don’t match the other columns
   • Enter zeros where needed instead of leaving fields blank
   • Ensure rounding doesn't cause small mismatches
5. Recalculate and rerun diagnostics.

If you continue seeing the error, double-check for any mismatches on less obvious lines or rounding inconsistencies.