Budget Allocations

Discuss questions around local unit policies for budgeting, reconciling, etc. This forum should not contain specific financial or membership information.
khasay
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Budget Allocations

Postby khasay » Sun Jan 08, 2012 9:13 am

After our ward received the first quarter allocation, I estimated the allocation amounts for the remaining quarters in our budget. So, the budget we were working with during that quarter consisted of the carry over + actual allocation for the first quarter + estimates for the remaining quarters. In each of the quarters, the estimate was within $100 of the actual, so the adjustments were minor each time. I use an Excel spread sheet with percentages for each category, so adjustments are easy to make after actual allocations are made. During the last quarter, we were dealing with actual allocations for all four quarters. I know that some wards budget on a quarterly basis and do not estimate the remaining quarters. Which is preferred?

russellhltn
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Postby russellhltn » Sun Jan 08, 2012 11:45 am

I don't believe MLS support budgeting on anything other then a annual basis. The only way you'd be able to do quarterly is if you did things on a "cash" basis.

I believe all the guidelines point to annual budgeting. The only advantage I can see to quarterly is if you expect some wild variations though the year.
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dajoker
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Postby dajoker » Sun Jan 08, 2012 7:14 pm

RussellHltn wrote:I don't believe MLS support budgeting on anything other then a annual basis. The only way you'd be able to do quarterly is if you did things on a "cash" basis.


I do not believe this is true. Every quarter on the Stake level I submit a quarterly budget for each of the Wards. If I do not do this it appears that it takes the previous quarter's settings automatically.

With that said, I have seldom changed percentages on the Wards without changing it for all of them, and that's usually done at the start of the year so while it seems possible I do not think this quarterly feature is used almost ever, at least not by me. With the new Ward-based accounts I've heard some hint that if Wards start stockpiling funds from one year to another (which is now possible as I understand it) that the allocations may decrease what is given out to the Wards to keep them from building a warchest, at least without an good reason for that kind of thing which happens sometimes.

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aebrown
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Postby aebrown » Sun Jan 08, 2012 8:29 pm

dajoker wrote:
RussellHltn wrote:I don't believe MLS support budgeting on anything other then a annual basis. The only way you'd be able to do quarterly is if you did things on a "cash" basis.
I do not believe this is true. Every quarter on the Stake level I submit a quarterly budget for each of the Wards. If I do not do this it appears that it takes the previous quarter's settings automatically.


You're talking about two different definitions of the word "budget." RussellHltn is talking about the planning aspect of budgeting -- how much each auxiliary plans to spend in a given time period. He is right that MLS really makes it hard to do anything except annual budgeting. However, that's a good thing in my opinion, since the Handbook also directs that budgeting is done on an annual basis (see Handbook 1, section 14.7.1). MLS is very helpful as you set estimates for budget allocations in future quarters so that you have a reasonable estimate for the total allocations, against which the auxiliaries can make their plans.

On the other hand, dajoker is talking about the allocation aspect of budgeting. He's also correct that the stake determines the budget allocations that are distributed to the wards, and those allocations happen on a quarterly basis.
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