Advance for stake leader

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dheilner
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Advance for stake leader

Postby dheilner » Tue Jun 11, 2013 8:06 pm

A stake auxiliary leader is incurring some significant costs for an upcoming stake activity and has more expenses to come. As a stake, we would normally reimburse the leader as soon as possible, but the expenses are interfering with the leaders family finances, and the upcoming expenses would be hard for the leader to incur. The question is whether we might be able to give this leader an "advance" in this circumstance.

As specifically as possible, could I ask what needs to be done to go about this the right way. I imagine the stake presidency needs to sign a expense request form before the advance can happen. How do we do this in MLS and what would we need to do in MLS when we get the receipts? What will the auditors look for if this is outstanding still during the audit? Appreciate your help.

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Mikerowaved
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Re: Advance for stake leader

Postby Mikerowaved » Tue Jun 11, 2013 8:34 pm

There's some good information in this thread, appropriately titled Cash Advance.
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jdlessley
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Re: Advance for stake leader

Postby jdlessley » Tue Jun 11, 2013 10:00 pm

An advance of funds is handled similar to reibursements. Recording an advance in MLS is exactly the same as a reimbursement. However, an advance disbursement does not have a receipt, invoice, or bill at the time the reguest is processed. The form your stake uses for an advance disbursement request must identify the disbursement as an advance. It may be the same form used for reimbursements or it may be a separate form. Information on the form should include all the details of the disbursement as possible such as the purpose or activity for which the expense will be made, the retailer, vendor, or supplier to which the funds will be paid, the services or goods to be purchased, the amount disbursed, the name of the person or business receiving the funds, and the date the funds are disbursed. Of course the form must also include the approving signature of the stake president.

In some cases the advance disbursement amount is known and can be paid directly to the retailer, vendor, or supplier if they are willing to accept a check. If they will accept a check, then write the check out to the retailer, vendor, or supplier.

Sometimes the actual expense amount may not be the same as the amount disbursed. Any excess disbursement should be returned as soon as possible after the payment for the goods or services are paid and a receipt obtained. These excess funds are returned using a Tithes and Other Offerings slip and/or a form for this purpose. Identify the budget category the funds were originally drawn against and to which the excess will be deposited on the Tithes and Other Offerings slip and/or the form. The receipt and all other paper work such as the Tithes and Other Offerings slip and/or return of excess disbursement form are attached to the original disbursement paperwork.

If the expense exceeds the advance then a reimbursement request is processed. Because there will be only one receipt for both the advance and the reimbursement I recommend filing the paperwork for the advance and the reimbursement togther. The returned excess funds are processed as a donation to return the funds to the budget category the advace was drawn against. Do not use the member's name as the donor. Instead use the name of the retailer, vendor, or supplier as the donor name.

If the expense amount is the same as the advance then all that needs to be done for audit purposes is to attach the receipt to the original advance paperwork.

The timeline between incurring expenses for a stake activity and the end of the activity could in some cases be lengthy. When advances are made for expenses, the receipt should be turned in, and appropriate paperwork completed, as soon as the receipt is received and not wait until the activity is over. Waiting for the activity to be over before turning in advance disbursement receipts could result in an advance without a receipt for an audit.
JD Lessley
Have you tried finding your answer on the LDS.org Help Center page or the LDSTech wiki?

dheilner
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Re: Advance for stake leader

Postby dheilner » Wed Jun 12, 2013 6:40 pm

I'm in a much better place now based on these responses. Thank you. Do we know where actual guidance is in the church handbooks or websites? I've looked and am coming up short. I think the process described is right, so it's really just to try and convey it with authority to the stake presidency.

eblood66
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Re: Advance for stake leader

Postby eblood66 » Wed Jun 12, 2013 7:13 pm

dheilner wrote:I'm in a much better place now based on these responses. Thank you. Do we know where actual guidance is in the church handbooks or websites? I've looked and am coming up short. I think the process described is right, so it's really just to try and convey it with authority to the stake presidency.

I don't know of any place in the handbooks but advances are covered in the training video in the Expenses and Reimbursements article on the RKATS site. It talks about advances just before the 10 minute mark. It pretty much says what other responses in this thread have said.


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