Understanding Quarterly Budget Allowance

Discuss questions around local unit policies for budgeting, reconciling, etc. This forum should not contain specific financial or membership information.
fauxden
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Joined: Sun Aug 03, 2014 9:11 am
Location: Ontario, Oregon

Understanding Quarterly Budget Allowance

Postby fauxden » Sat Jan 10, 2015 7:19 pm

Hi there,

I'm trying to understand the budget allowance.
I see the line Total budget allowance with General budget $X,XXX, followed by young men with XX, then young women, primary, YSA.
Then there is the line "Unit Deposit". The General budget is about ~400 less than the "total budget allowance". Is the total budget allowance the max amount possible? What is the difference? The difference exists between YM, YW, YSA also. They are all less. Could someone help me understand this?

Also, does money roll over from the previous year?

jdlessley
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Re: Understanding Quarterly Budget Allowance

Postby jdlessley » Sat Jan 10, 2015 8:25 pm

fauxden wrote:I'm trying to understand the budget allowance.

Have you read the article The Budget Allowance in the Help Center?

fauxden wrote:I see the line Total budget allowance with General budget $X,XXX, followed by young men with XX, then young women, primary, YSA.
Then there is the line "Unit Deposit". The General budget is about ~400 less than the "total budget allowance". Is the total budget allowance the max amount possible? What is the difference? The difference exists between YM, YW, YSA also. They are all less. Could someone help me understand this?

The budget allowance is what a unit would receive if the stake did not need to keep any funds for the stake budget. But because the stake has no source of funds except from a portion of the computed budget allowance for each unit within the stake, the units within the stake will not get 100% of the computed budget allowance. The unit budget allowance retained may be a percentage less than 100% for each of the five capitation areas: Sacrament meeting, Young men, Young women, Primary children ages 8-11, and Young single adults. The stake allocates a portion of the unit budget allowance for the unit and a portion for the stake. What each unit retains of the budget allowance is the unit budget allocation. You will find the percentage the stake is passing through to the unit on the quarterly unit budget allowance report found in the finance reports section of MLS. If you read that report you will see the percentages the stake is passing through for each of the five capitation areas.

fauxden wrote:Also, does money roll over from the previous year?

Yes. But your stake may manage the roll over such that they may require any excess to be remitted to them or they may allow all of it, or a portion of it, to be retained. Most stakes do not provide any funds to cover a roll over deficit. That is the budget management problem the unit has to deal with.
JD Lessley
Have you tried finding your answer on the LDS.org Help Center page or the LDSTech wiki?


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