The $1,000 Question
Posted: Sat Oct 03, 2009 10:35 pm
This is a true story. The amounts have been changed to protect the confused.
The Sunday deposit was prepared and entered into MLS in the amount of $3,900 and then transmitted.
The bank deposit slip was written for $3,800 ($100 less) because the total was not correctly added or copied from the MLS printouts. The deposit slip, checks, currency, and cash were deposited in the bank.
Hq recorded the deposit on the Church Unit Financial Statement at $3,900, the amount transmitted by MLS.
The bank accepted the deposit at $3,800 and then corrected it. When it was proofed, the deposit only contained $3,200. The bank charged the $600 back to Church Hq.
When the bank charged back the $600 shortage, Hq charged $600 to the Other account on the CUFS and asked the unit to investigate.
Upon further review, it was determined that one of the checks in the deposit was written for a numerical amount of $1,700 and for a written amount of One Thousand Dollars. The clerks recorded the check as $1,700 in MLS and the bank processed the check as $1,000.
Based on the review, the clerks made an adjustment to the batch, changing the check in the contribution from $1,700 to $1,000 which caused a $700 adjustment to the Tithing category.
Nothing happened to the Other account on the CUFS, so one of the clerks called Hq. Following the phone call, Hq recorded a $700 credit in the Other account on the CUFS.
Several audits later, the auditor wrote up the unit for listing a "deposit adjustment" in the amount of $100 in the Other account.
End of story. My assignment is to deal with the $100.
Having been assigned to wrap my brain around this matter, I have come to the following conclusions. Since my brain does not do this well, I am presenting this situation here to ask if my thinking is correct.
1. The bank credited Hq with what was declared to be a $3,800 deposit, added it up at $3,200 because of the poorly written check, and charged back $600 for the deposit. The bank is happy and the bank account is correct. No further action with the bank is required.
2. In MLS, a deposit of $3,900 was recorded and changed to $3,200 because of the poorly written check, causing a $700 adjustment to the Tithing category. MLS is happy and the deposit is now correctly recorded in MLS. No further action with the batch is required.
3. On the CUFS, Hq charged $600 to the Other account because of the bank charge back. After the unit investigated and corrected the batch by reducing the Tithing contribution by $700, Hq credited $700 to the Other account on the CUFS.
I think that the unit got an extra $100 and owes it to the Church.
Do you agree? If so, does the unit write a $100 check on the Other account and mail it in, or will a call to Hq allow them to charge $100 to the Other account on the CUFS and resolve the matter?
Other than that I think the clerks are certifiable (different thread, sorry), what do you suggest?
Would your answer change if I added that this all happened two years ago and that the $100 in the Other account is just now being identified? (I don't think the answer changes.)
Thanks for helping me wrap my brain around this one. It has been a long time since I worked on the financial side of things. I appreciate the help.
The Sunday deposit was prepared and entered into MLS in the amount of $3,900 and then transmitted.
The bank deposit slip was written for $3,800 ($100 less) because the total was not correctly added or copied from the MLS printouts. The deposit slip, checks, currency, and cash were deposited in the bank.
Hq recorded the deposit on the Church Unit Financial Statement at $3,900, the amount transmitted by MLS.
The bank accepted the deposit at $3,800 and then corrected it. When it was proofed, the deposit only contained $3,200. The bank charged the $600 back to Church Hq.
When the bank charged back the $600 shortage, Hq charged $600 to the Other account on the CUFS and asked the unit to investigate.
Upon further review, it was determined that one of the checks in the deposit was written for a numerical amount of $1,700 and for a written amount of One Thousand Dollars. The clerks recorded the check as $1,700 in MLS and the bank processed the check as $1,000.
Based on the review, the clerks made an adjustment to the batch, changing the check in the contribution from $1,700 to $1,000 which caused a $700 adjustment to the Tithing category.
Nothing happened to the Other account on the CUFS, so one of the clerks called Hq. Following the phone call, Hq recorded a $700 credit in the Other account on the CUFS.
Several audits later, the auditor wrote up the unit for listing a "deposit adjustment" in the amount of $100 in the Other account.
End of story. My assignment is to deal with the $100.
Having been assigned to wrap my brain around this matter, I have come to the following conclusions. Since my brain does not do this well, I am presenting this situation here to ask if my thinking is correct.
1. The bank credited Hq with what was declared to be a $3,800 deposit, added it up at $3,200 because of the poorly written check, and charged back $600 for the deposit. The bank is happy and the bank account is correct. No further action with the bank is required.
2. In MLS, a deposit of $3,900 was recorded and changed to $3,200 because of the poorly written check, causing a $700 adjustment to the Tithing category. MLS is happy and the deposit is now correctly recorded in MLS. No further action with the batch is required.
3. On the CUFS, Hq charged $600 to the Other account because of the bank charge back. After the unit investigated and corrected the batch by reducing the Tithing contribution by $700, Hq credited $700 to the Other account on the CUFS.
I think that the unit got an extra $100 and owes it to the Church.
Do you agree? If so, does the unit write a $100 check on the Other account and mail it in, or will a call to Hq allow them to charge $100 to the Other account on the CUFS and resolve the matter?
Other than that I think the clerks are certifiable (different thread, sorry), what do you suggest?
Would your answer change if I added that this all happened two years ago and that the $100 in the Other account is just now being identified? (I don't think the answer changes.)
Thanks for helping me wrap my brain around this one. It has been a long time since I worked on the financial side of things. I appreciate the help.