Interunit transfer issues with the OTHER account

Discuss questions around local unit policies for budgeting, reconciling, etc. This forum should not contain specific financial or membership information.
natecottle
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Joined: Wed Jun 04, 2014 9:04 am

Interunit transfer issues with the OTHER account

Postby natecottle » Tue Jun 23, 2015 8:55 pm

Wards in our stake have used interunit transfers to pay for a girls camp the stake paid a portion of. While the stake has expended most of those funds, there are still some that are outstanding. The issue is that our audit is upcoming before some of these expenses will be charged. We will not have a zero balance in the other account and that may be an issue in our audit. Is there any way to move money received in Other subcategory to Budget subcategory?

Also, why if we allow inter-unit transfers can they not come into the budget and not the other category? It makes me want to go back to asking each ward for a check so that I have the freedom to deposit it into the right category in our budget. I would love some help.

russellhltn
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Re: Interunit transfer issues with the OTHER account

Postby russellhltn » Tue Jun 23, 2015 9:45 pm

natecottle wrote:While the stake has expended most of those funds, there are still some that are outstanding. The issue is that our audit is upcoming before some of these expenses will be charged. We will not have a zero balance in the other account and that may be an issue in our audit.

Anyone who says the "Other" account has to have a zero balance before everything is settled needs a good whack across the knuckles remedial training.

Yes, you don't want to be carrying a unresolved balance for ages, but if the financial situations is "in progress" (and not perpetually "in progress") I think a mandate to be zero misses the point.

I think you'd be creating a bigger issue if you were to transfer funds from other to budget - because that smells of improper increase of the budget. It would take more work to assure that's not the case.
Have you searched the Wiki?
Try using a Google search by adding "site:tech.lds.org/wiki" to the search criteria.

bastahmer
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Location: Hilliard, OH, USA

Re: Interunit transfer issues with the OTHER account

Postby bastahmer » Sat Jun 27, 2015 2:58 pm

I have been a Stake Clerk, Ward Financial Clerk and Stake Auditor (not all at the same time, of course) and the issue with the "Other" account has never been about having a zero balance. The issue is that the funds are received and used for an authorized, allowable purpose within a reasonable amount of time. That reasonable amount of time can cross audits and even years - as long as the unit leader is aware of what it is and there is a plan to use the funds (or return them), there should be no audit issue.


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