Other accouting - mis-deposited budget funds and future camp deposits

Discuss questions around local unit policies for budgeting, reconciling, etc. This forum should not contain specific financial or membership information.
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wrigjef
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Joined: Sun Mar 01, 2009 8:38 am
Location: Chesapeake, Virginia

#11

Post by wrigjef »

martyriker wrote:I've spent a couple of hours reading but couldn't come up with good answers to 2 questions I have about the Other accounts.

1) We have a multi ward Cub program and as the agent ward, we pay for expenses for the program from our Primary Budget (often made to payees in other wards) and request budget checks from other wards to share the costs . During our audit, we found that these checks were mistakenly deposited into the Other account. I'm directing the ward financial clerk to write a check from the Other account into our Budget account for the sum of these dollar amounts, reconciling the past error. Is that the right thing to do?
If it were me acting as agent, I would use an AMFA account. I would have the wards write checks from their budgets, including your own, and deposit them into an AMFA account that you set up for the specific purpose. When expenses come in, you just write them out of that AMFA account. If everything works out correctly, after the event and expenses, you will have a 0 bal in that AMFA account and can deactivate it. If you end up with more funds then were needed, you can run a report and determine which ward or wards paid too much and write checks back to them (for deposit back into their budget). This is what an AMFA account is for. Don't leave excess funds in an AMFA account unless there is a specific plan for expending those funds in a reasonable amount of time.
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