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Accessing funds deposited locally
Posted: Sun Feb 12, 2012 12:59 pm
by colbyj
If a ward cuts a check to the stake, and the stake deposits that check, will these newly deposited funds be added to the overall stake budget? Essentially, will the stake be able to draw funds from the amounts deposited by the stake?
A concern is that if a ward cuts a check to the stake and the stake deposits those funds, then those funds get "swept up" by the church and the stake no longer is able to draw on them.
How does this work?
thank you
Posted: Sun Feb 12, 2012 1:26 pm
by aebrown
colbyj wrote:If a ward cuts a check to the stake, and the stake deposits that check, will these newly deposited funds be added to the overall stake budget?
When the stake deposits funds from a ward to a Budget category, it simply increases the remaining balance for that subcategory. So it increases the funds available to spend.
We normally wouldn't say that it increases "the overall stake budget" -- that is a figure that is determined during the budgeting process, where the stake president approves the annual amounts to be spent by category. Such a deposit acts more like a credit against the expenses.
colbyj wrote:Essentially, will the stake be able to draw funds from the amounts deposited by the stake?
Yes.
colbyj wrote:A concern is that if a ward cuts a check to the stake and the stake deposits those funds, then those funds get "swept up" by the church and the stake no longer is able to draw on them.
No, there is no "sweeping" of Budget funds. Under the former accounting system (prior to CUBS -- it was called CFAR), money deposited to a Budget category was swept out of the account, but even then a deposit had the effect of crediting the Budget Allowance, which was the essential balance, not the actual cash balance, which was always zero.
The bottom line is that you need have no such concerns. The stake will have access to the deposited funds.