Audit Exception Help

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ffrsqpilot
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Audit Exception Help

Postby ffrsqpilot » Fri Apr 10, 2009 10:56 am

I have searched through the site and can't find an exact answer to the issue I am looking for. Thus, I thought I would open up the question for discussion.

One of our units has an audit exception that seems to be a recurring problem. It has to do with not having proper documentation for fast offering expenditures. Specifically, it has to do with not having proper documentation for rental disbursements. Apparently it is difficult to always get documentation back from landlords showing they have received payment or require payment. Proper documentation doesn't seem to be a problem when paying utility bills, or such, but getting documentation back from landlords seems to be a problem - at least for this unit. The stake president has counseled with the Bishop and I have discussed the matter with the clerk but the unit has now been written up for the same issue.

So, do any of you have a method or sure fire way of getting documentation from landlords before (or after) you have disbursed funds? I know it seems like it should be simple enough to not make a payment if you don't have documentation, but for this unit it seems to be a recurring issue as this is the second time they have received audit exceptions and it always happens on rental properties.

RossEvans
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Postby RossEvans » Fri Apr 10, 2009 11:41 am

Pilotfly wrote:So, do any of you have a method or sure fire way of getting documentation from landlords before (or after) you have disbursed funds? I know it seems like it should be simple enough to not make a payment if you don't have documentation, but for this unit it seems to be a recurring issue as this is the second time they have received audit exceptions and it always happens on rental properties.


In our unit we have used two methods, because most landords will not provide proper receipts.

1) Keep a copy of the lease on file.

2) Provide a small form -- about 1/4 sheet of paper -- along with the check, to be given to the landlord. We write in the amount, the date, the beneficiary's name, and payee's name, and ask that as a courtesy for our records it be signed and returned in a stamped, self-addressed envelope. (Normally we just use the gray tithing envelopes.) We don't get 100 percent response from landlords, but we get most of them back.

jdlessley
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Postby jdlessley » Fri Apr 10, 2009 4:44 pm

The two alternatives boomerbubba listed are good. The second document is referred to as a suitable substitute.

A suitable substitute is permitted for those situations in which a receipt or invoice is not available. Item 26 of the unit audit checklist states:
If an original receipt, or invoice is lost, the substitute documentation should include a written explanation of the payment purpose, a statement or description of the goods or services acquired, the period the payment applies to, the name of the person who was assisted (for fast-offering payments), corroborating signatures (such as signatures of payees and beneficiaries), and so on.
Since it may be difficult to get a signature of a landlord on a suitable substitute, this should not prevent the beneficiary from providing all the other information and their signature.

It is the responsibility of the beneficiary of the fast offering expenditure to provide the documentation. This would include providing the suitable substitute. It can be hand written with all the required information and signatures.
JD Lessley
Have you tried finding your answer on the LDS.org Help Center page or the LDSTech wiki?

jimr17
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Postby jimr17 » Sat Apr 11, 2009 4:30 pm

Pilotfly wrote:...getting documentation back from landlords seems to be a problem - at least for this unit. The stake president has counseled with the Bishop and I have discussed the matter with the clerk but the unit has now been written up for the same issue.

So, do any of you have a method or sure fire way of getting documentation from landlords before (or after) you have disbursed funds? ...

We also had this problem, and the Bishop, for whom I was serving as clerk, thought of an excellent solution. He told the recipients that he would not be able to help them the next month unless they brought back a receipt for the funds he had already disbursed. His attitude was that as the caretaker of the Lord's funds he had a responsibility to be sure the funds were used appropriately and obtaining signed receipts was part of that.

As suggested, we provided the recipient with a form that the landlord could sign - along with information about the landlord's name/address.

Interestingly, the people who claimed they were unable to get a receipt somehow figured out a way to get the landlord or the management company to acknowledge the receipt of the funds once future help was on the line. One even mentioned to me that he just thought they wouldn't do it and was nervous asking for it because of language barriers, but once he brought the form in and actually asked, they were happy to sign the receipt and he had no problems at all.


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