Our stake has just created two new wards plus adjusted boundaries of most other wards in the stake, necessitating transfers of budget funds. The amounts have been calculated, but we have several new clerks, so I'd like to provide as much information as I can. Unfortunately, I'm not very knowledgeable on the finance side.
It appears that you can't just draw funds from the general budget category, so which category should these funds be taken from? And when a ward receives budget funds, which category should they be deposited into?
Discuss questions around local unit policies for budgeting, reconciling, etc. This forum should not contain specific financial or membership information.
3 posts • Page 1 of 1
mtwerner wrote:We have just created two new wards plus adjusted boundaries of most other wards, necessitating transfers of budget funds. I'm not very knowledgeable on the finance side, but we have quite a few new clerks and I'd like to provide as much information as I can.
It appears that you can't just draw funds from the general budget category, so which category should the funds be taken from? And when a ward receives budget funds, which category should they be put into?
We normally do not write checks against the special Budget:Budget Allocations category, but this seems like the perfect situation to use it. For the wards that are giving up funds, I'd recommend that they write the check from that category. Those amounts will show up on the "Local Unit Adjustment" line of budget reports, showing that the total allocation for that ward has been reduced by that amount. Those wards will need to redo their budgets (View/Edit Budget) for this year, since they won't have as much money available. So, for example, if they are sending in $1000, they might reduce the budget by $100 for each of 10 subcategories to compensate for the $1000 check they write to the stake.
Then the stake collects all those funds into some category. I'd recommend Budget:Administration, but not Budget:Budget Allocations, since that category should be used at the stake level for allocations that come to the stake unit itself. The stake then writes checks out of that category to the wards that are receiving funds. The wards that are receiving these funds deposit them into Budget:Budget Allocations (that's the same category that the quarterly allocations are always deposited into). Those wards need to set their budgets, based on these received funds and the estimated amount to be received at the beginning of the 4th quarter.
Questions that can benefit the larger community should be asked in a public forum, not a private message.
Who is online
Users browsing this forum: No registered users and 2 guests