MLS / How to transfer from "other" category into "budget"

Discuss questions around local unit policies for budgeting, reconciling, etc. This forum should not contain specific financial or membership information.
chriswoodut
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Re: MLS / How to transfer from "other" category into "budget"

Postby chriswoodut » Sun Jun 04, 2017 6:55 am

I really don't want to run a separate budgeting process parallel to MLS. I don't want the process to be convoluted such that I'm the only person that really understands it. I want to be able to provide reports to the organizations at ward councils so they know where they are at. If I do what is suggested, the only way to really provide reports is to run a parallel system. That's not optimal.

Writing a check from the ward to the ward and allocating it to the budgets makes more sense.

russellhltn
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Re: MLS / How to transfer from "other" category into "budget"

Postby russellhltn » Sun Jun 04, 2017 12:20 pm

chriswoodut wrote:Writing a check from the ward to the ward and allocating it to the budgets makes more sense.

I'd suggest talking with the stake or an auditor before doing that. Otherwise, you might find you've got problems when it comes time for the audit. Mingling donations for camp/fundraising with budget is a big red flag. Those funds are only to be spent on their specific purpose and can't be moved into the general budget.

It really shouldn't be that big a deal for the YW to see two accounts (budget and other). That's how it's run church-wide.
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chriswoodut
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Re: MLS / How to transfer from "other" category into "budget"

Postby chriswoodut » Sun Jun 04, 2017 12:30 pm

russellhltn wrote:
chriswoodut wrote:Writing a check from the ward to the ward and allocating it to the budgets makes more sense.

I'd suggest talking with the stake or an auditor before doing that. Otherwise, you might find you've got problems when it comes time for the audit. Mingling donations for camp/fundraising with budget is a big red flag. Those funds are only to be spent on their specific purpose and can't be moved into the general budget.

It really shouldn't be that big a deal for the YW to see two accounts (budget and other). That's how it's run church-wide.


I'm not really mingling funds as I have budget categories that are camp specific. Last year the stake clerk directed me to write a check to the ward.

My example is simplified so when mixing the ym camps in with a single fundraising other category for both organizations, it gets more awkward. The organization that has the first camp consumes most of the fundraising money.

As long as this is documented with a paper trail, I don't understand the concern. I also don't understand why people aren't using the budget tools the way a normal budget would work.

I fully admit I'm new, so maybe there is something I'm missing.

eblood66
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Re: MLS / How to transfer from "other" category into "budget"

Postby eblood66 » Sun Jun 04, 2017 3:01 pm

chriswoodut wrote:I'm not really mingling funds as I have budget categories that are camp specific.

Although that is true, you aren't using the accounts in the usual fashion which may raise questions from auditors, future stake leaders or future clerks (after you're released). In particular anytime you're sending funds from Other to Budget could raise questions.

chriswoodut wrote:My example is simplified so when mixing the ym camps in with a single fundraising other category for both organizations, it gets more awkward. The organization that has the first camp consumes most of the fundraising money.

I presume there is some agreement about how the funds should be split up. A camp Other account should be made for each one and the agreed amount transferred to each one.

chriswoodut wrote:As long as this is documented with a paper trail, I don't understand the concern.

Doing it in a non-standard way makes it harder for others to understand what happened if you aren't available.

However, you can probably do things pretty much the way you'd like by writing a check from budget to other before the first expense (for the amount to come from budget funds). Then pay all expenses out of the other account. Once all the expenses have been paid you can go back and adjust a portion of the 'donation' into the Other account back into the Budget account in order to zero the Other account. That way the only transfer is from Budget to Other (which is allowed) and all expenses are easily tracked and there is no question of whether Other funds were used inappropriately.


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