Questions about Other Funds

Discuss questions around local unit policies for budgeting, reconciling, etc. This forum should not contain specific financial or membership information.
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aebrown
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Re: Questions about Other Funds

#11

Post by aebrown »

wallaced wrote:We just went through our semi-annual financial audit, and found two subcategories in our Other account that have negative amounts. I know that the funds for both have been expended as intended, but am confused as to why we have the negative numbers. Can this be corrected through the ward budget? Any suggestions are appreciated.
The first thing to do is to do an analysis of each subcategory. Look at all the income records and all the expense records. Make sure that they are all properly categorized, and that no other income or expense records that should have been categorized with that particular subcategory have some other category. Also make sure that no income or expense for that particular purpose is still pending.

Once you've done all that, if you still have a negative balance, it can be entirely appropriate to use budget funds to cover the deficit. This is often the normal course of action for, say, a scout camp, where funds are raised for a portion of the camp, but the expenses exceed the raised funds. Budget funds cover the remainder.

If by chance you end up with a surplus after your analysis and corrections have been made, then you should follow the advice earlier in this topic about how to deal with a surplus.
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