When a program buys something that will last for years, such as playground equipment, furniture, or a renovation, the cost is recorded as an asset on the balance sheet, not as an expense on the P&L. The cost reaches the P&L slowly through depreciation.

Harbor Oak installed a $32,000 playground in November. It appears under Playground & Outdoor Equipment on the balance sheet and adds about $267 a month of depreciation to the P&L for ten years.

This is why a cash-based budget and an accrual P&L will not match line for line in a year with a large purchase.