2. Depending on the type of fund, monies are received at different points during the year. For example, Endowment Income and Expense funds receive the major portion of their funding in July. Earnings funds, on the other hand, usually receive revenues at regular intervals during the year. Thus an Endowment Income and Expense fund that has negative "equity with encumbrances" in the early part of the fiscal year is probably of concern, whereas an Earnings fund can begin the year with negative "equity less encumbrances" because it will earn money during the year to offset the commitment