Debit / Gift Card

Discuss questions around local unit policies for budgeting, reconciling, etc. This forum should not contain specific financial or membership information.
rwood90
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Debit / Gift Card

Postby rwood90 » Sun Aug 12, 2012 8:44 pm

is there any policy or advice on using a prepaid Debit Card for cash advance??

jdlessley
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Postby jdlessley » Sun Aug 12, 2012 9:15 pm

When you say cash advance are you talking about an advance disbursement? If not, what is the purpose?
JD Lessley
Have you tried finding your answer on the LDS.org Help Center page or the LDSTech wiki?

rwood90
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Postby rwood90 » Sun Aug 12, 2012 10:57 pm

for any advance disbursement done by the unit.
The issue came up today in leadership training at Stake Conference.
If the advance request was for $500, Instead of handing member a check for $500
Could a "prepaid debt card - be given to RS president to purchase food for needy family. when done, the receipts and remaining card is truned in.
However could apply to say "Other-Girl's Camp" leader needs to buy food for camp, Use the Debit card, turn in card when done with receipts.
Was brought up by Assistant area auditor - SP asked me to check into it before our Stake jumps on "the card"

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aebrown
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Postby aebrown » Mon Aug 13, 2012 5:03 am

rwood90 wrote:for any advance disbursement done by the unit.
The issue came up today in leadership training at Stake Conference.
If the advance request was for $500, Instead of handing member a check for $500
Could a "prepaid debt card - be given to RS president to purchase food for needy family. when done, the receipts and remaining card is truned in.
However could apply to say "Other-Girl's Camp" leader needs to buy food for camp, Use the Debit card, turn in card when done with receipts.


That seems like a lot of extra work. First, the ward/stake has to go purchase the card and then deliver it. Then if there is extra money left on the card, how does the ward/stake get that extra money back into the unit account? You can't just "deposit" the card; you'd have to make an extra trip to the bank to turn the balance back into cash that could then be deposited.

rwood90 wrote:Was brought up by Assistant area auditor - SP asked me to check into it before our Stake jumps on "the card"


Why did the AAA bring it up? Is he suggesting that there are benefits in doing it this way, rather than a check? If so, what are those benefits?
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rwood90
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Postby rwood90 » Mon Aug 13, 2012 5:08 am

Alan, we share the same thoughts. His comment was it was more convenient (as you noted & I noted to SP- it isn't). Comment was the card was kept for next need rather then going back to bank. That would be an audit item to me, the advance isn't cleared off in MLS & your keeping books outside MLS to track the bank card.

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aebrown
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Postby aebrown » Mon Aug 13, 2012 5:42 am

rwood90 wrote:Alan, we share the same thoughts. His comment was it was more convenient (as you noted & I noted to SP- it isn't). Comment was the card was kept for next need rather then going back to bank. That would be an audit item to me, the advance isn't cleared off in MLS & your keeping books outside MLS to track the bank card.


Keeping the card for some other purpose is definitely an audit exception. See question #18:

18. Does the documentation for advances show that unspent money was redeposited in the ward's bank account?
If the total advance amount is more than the attached receipts or invoices, the leftover money should have been returned and redeposited into the ward's bank account. If any unspent money was not returned and redeposited, mark "No."
Questions that can benefit the larger community should be asked in a public forum, not a private message.

jdlessley
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Postby jdlessley » Mon Aug 13, 2012 10:56 am

I have the same misgivings of any benefits about a prepaid card as has been mentioned by aebrown. I am surprised the assistant area auditor even recommended the use of a prepaid card without detailing how to properly use it and stay within church policies and procedures. There are so many types of prepaid cards available that any recommendation to use a card should include information about the type of card to use and details about specific recommended cards to use.

There are prepaid cards that permit recovery of unused money. They fall into the semi-closed system and open system type of cards. Getting that money back even for those cards adds an additional work load in time and effort. Additionally these cards have fees. There are fees to set up the card and there are fees to recover the money and there may even be fees just to use the card. These types of prepaid cards are not intended to be used once and money returned and then the cycle repeated for the next need. The cost incurred for this type of use would be significant. Any cost in my mind would be unacceptable. Also an open system type of card involves and account. Church policy does not permit units to have accounts outside the one already being used.
JD Lessley
Have you tried finding your answer on the LDS.org Help Center page or the LDSTech wiki?


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