Donation into a budget account ?

Discuss questions around local unit policies for budgeting, reconciling, etc. This forum should not contain specific financial or membership information.
RickWH-p40
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Donation into a budget account ?

Postby RickWH-p40 » Fri Feb 13, 2009 7:09 pm

Our ward was created during a stake reorganization in the middle of 2008, so this will be our ward's first full year. As such we began this year making budget allocations based on expectations that we would receive an amount that was close to what other similar-sized wards in our stake had been receiving in the past. Our bishop recently received word on how much we are actually getting and it is much less.

A member in one of our auxiliaries had already made some purchases for this year and was fully reimbursed. However, in light of the new ward budget amount, these expenditures will blow the entire auxiliary's budget for the year. Now, the member wants to pay the ward back for some (or all) of the amount that was reimbursed.

I know that donors are not supposed to make donations into "Budget" accounts, but seeing that this donation will be exactly offsetting an expense, I was wondering if in this case, it would be Ok. If not, how should it be handled?

Another related question: If members want to subsidize some of the expenditures that normally come out of Budget accounts, what is the best way for them to do so (outside of paying for things out of pocket directly)?

Thanks

jdlessley
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Postby jdlessley » Fri Feb 13, 2009 8:39 pm

There are no procedures that I know of to accomplish what you suggest and are in opposition to Church policy. You will find that the answers to your questions can be found by referring to the Church Handbook of Instructions. Take a look at page 159 of book 1.
JD Lessley
Have you tried finding your answer on the LDS.org Help Center page or the LDSTech wiki?

greggo
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Postby greggo » Mon Feb 16, 2009 8:10 am

RickWH wrote:A member in one of our auxiliaries had already made some purchases for this year and was fully reimbursed. However, in light of the new ward budget amount, these expenditures will blow the entire auxiliary's budget for the year. Now, the member wants to pay the ward back for some (or all) of the amount that was reimbursed.


There is certainly nothing in MLS that would stop you from processing a donation to the budget category (I have done it in the past to correct a mistake); however, I would explore other options.

It seams strange that the member would want to pay back the reimbursement, since the budget information was inaccurate through no fault of their own, and the bishop approved the reimbursement.

I would suggest that the Bishop readjust the budget allocations or just allow the one auxiliary go over budget this year. In any case, you can wait until it is foreseeable that the total ward budget as a whole is in jeopardy of being overspent before any "corrections" are made.

Now, if it is the case that procedures were not followed, and the bishop actually never approved the expense to begin with -- that would be a different story.

luvmy8dz-p40
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Postby luvmy8dz-p40 » Tue Feb 17, 2009 3:49 pm

RickWH wrote:Another related question: If members want to subsidize some of the expenditures that normally come out of Budget accounts, what is the best way for them to do so (outside of paying for things out of pocket directly)?

What I would do in this case is create an "Other" account into which the memner's donations can go and take the expenses from there.

lajackson
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Postby lajackson » Tue Feb 17, 2009 4:09 pm

luvmy8dz wrote:
Originally Posted by RickWH Image
Another related question: If members want to subsidize some of the expenditures that normally come out of Budget accounts, what is the best way for them to do so (outside of paying for things out of pocket directly)?
What I would do in this case is create an "Other" account into which the memner's donations can go and take the expenses from there.


While this is one technical solution, it still is not in keeping with the authorized budget guidelines. I think it might be wise to review that handbook reference below with your priesthood leaders.

jbh001
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Postby jbh001 » Fri Feb 20, 2009 9:46 pm

RickWH wrote:I know that donors are not supposed to make donations into "Budget" accounts, but seeing that this donation will be exactly offsetting an expense, I was wondering if in this case, it would be Ok. If not, how should it be handled?

Another related question: If members want to subsidize some of the expenditures that normally come out of Budget accounts, what is the best way for them to do so (outside of paying for things out of pocket directly)?
If the bishop is unsure about how to manage this special, unusual, and unforeseeable circumstance, he should consult the stake president (that is, if he still has questions after reviewing the handbook). The stake clerk, under the direction of the stake president, can then instruct the ward clerk on the technical side of accomplishing it.

As to your second question, those members that want to subsidize expenditures should consult the bishop as to how he wants to handle this. This then gives the bishop a nice teaching opportunity to inform these members whatever the current policy happens to be in the handbook.


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