Audit Issues Regarding Reimbursements to Bishops

Discuss questions around local unit policies for budgeting, reconciling, etc. This forum should not contain specific financial or membership information.
benbenavides85
New Member
Posts: 2
Joined: Wed May 01, 2013 5:49 pm

Audit Issues Regarding Reimbursements to Bishops

Postby benbenavides85 » Mon Aug 05, 2013 7:33 am

A couple of issues arose from a recent audit. Our Bishop was cautioned on any checks being written to himself or his wife. 1. Should his wife's reimbursement be treated any differently than that of any other member? As long as she obtains the approval of the organizational president and the Bishop is that not the proper process? 2. The Bishop prepays for vouchers to our local food bank to be distributed to members. He makes a copy of the voucher to include as a receipt, distributes the voucher to the member, and then requests the reimbursement. As he is not receiving welfare assistance we determined in the past that this would not violate any church principles. The auditors told the Bishop there was concern any time he received a check without authorization from the Stake President.

User avatar
aebrown
Community Administrator
Posts: 14692
Joined: Tue Nov 27, 2007 8:48 pm
Location: Sandy, Utah

Re: Audit Issues Regarding Reimbursements to Bishops

Postby aebrown » Mon Aug 05, 2013 7:55 am

benbenavides85 wrote:As he is not receiving welfare assistance we determined in the past that this would not violate any church principles. The auditors told the Bishop there was concern any time he received a check without authorization from the Stake President.

Your auditors are not reading the audit instructions properly. The audit instructions are quite clear that only fast-offering assistance to the bishop or his immediate family requires the additional approval from the stake president.

I'd recommend that you bring this to the attention of the audit committee chairman.

User avatar
gregwanderson
Senior Member
Posts: 696
Joined: Thu Apr 15, 2010 9:34 pm
Location: Huntsville, UT, USA

Re: Audit Issues Regarding Reimbursements to Bishops

Postby gregwanderson » Mon Aug 05, 2013 8:19 am

...but the "paper trail" shows that the Bishop received a check that came from Fast Offering funds. So, at first glance, it looks like the Bishop is the one receiving the Fast Offering Assistance. Are you able to clearly show the recipient's name in the "purpose" of the check or does the Bishop keep a supply of these vouchers on hand and, therefor, the specific recipient isn't easily determined when writing the check?

benbenavides85
New Member
Posts: 2
Joined: Wed May 01, 2013 5:49 pm

Re: Audit Issues Regarding Reimbursements to Bishops

Postby benbenavides85 » Mon Aug 05, 2013 8:23 am

The recipient, member receiving the voucher, is shown in the purpose field when the check is being made to the Bishop.

RossEvans
Senior Member
Posts: 1346
Joined: Wed Jun 11, 2008 8:52 pm
Location: Austin TX
Contact:

Re: Audit Issues Regarding Reimbursements to Bishops

Postby RossEvans » Mon Aug 05, 2013 8:28 am

benbenavides85 wrote:The recipient, member receiving the voucher, is shown in the purpose field when the check is being made to the Bishop.


If the category of the check is correctly set to one of the Fast Offering subcategories (in this case Food), there will be an additional field on the MLS check screen to fill in, which is the recipient. This should be the name of the member receiving the assistance.

jasonfitt
Member
Posts: 62
Joined: Fri Feb 04, 2011 8:42 am

Re: Audit Issues Regarding Reimbursements to Bishops

Postby jasonfitt » Tue Aug 06, 2013 2:17 pm

Somebody can correct me if I'm wrong, but you only need to get authorization from the stake president if the bishop is listed as the recipient, not the payee. If I'm not mistaken the paperwork that prints out after you process a fast offering check should show who the recipient is, and who the payee is. At first glance it should be obvious.

We recently had an audit and our bishop has also paid out of pocket for fast offering expenses, such as a utility bill, and he was rembursed from the fast offering funds. The auditor didn't see any problems with this as long as we povided documentation the bishop paid the utility company directly, and the member was listed as the recipient and not the bishop.

User avatar
gregwanderson
Senior Member
Posts: 696
Joined: Thu Apr 15, 2010 9:34 pm
Location: Huntsville, UT, USA

Re: Audit Issues Regarding Reimbursements to Bishops

Postby gregwanderson » Tue Aug 06, 2013 5:54 pm

jasonfitt wrote:Somebody can correct me if I'm wrong, but...

As far as I can tell, you are not wrong. The auditor should be able to figure this out.


Return to “Local Unit Finance”

Who is online

Users browsing this forum: No registered users and 1 guest