Accounting for activities using Other and Budget Categories

Discuss questions around local unit policies for budgeting, reconciling, etc. This forum should not contain specific financial or membership information.
sgoodrich
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Accounting for activities using Other and Budget Categories

Postby sgoodrich » Sun Apr 25, 2010 6:47 pm

How does one accurately account for activities that use both Budget funds and Other funds such as scout camp.

For example a ward budgets $400 to subsidize a scout camp. The scouts do a fundraiser which earns $300 and each scout pays an additional $50. The fundraiser money and paymenst from each scout are deposited into the Other:Scout Camp category lets say it equals $500. The total available funds for the camp are now $900.

I have heard different opinions and I have my own, but is there a best practice or an approved method for writing reimbursement checks?

Here are some scenarios. Each scenario could change based on whether the balance ends with a surplus or a deficit.

1. Write checks out of the budget category until it zero's out and then pull from the other category, returning any remaining funds to the scouts. If there is a deficit I suppose one could squeeze it out of the scouts or use more budget funds.

2. Transfer the entire $400 from budget to other and write checks only from the other category. If there is a surplus, transfer the money back to the budget, or return to the scouts. A deficit would require a similar action to the one above.

3. Start writing checks from the other category and only transfer funds from the budget category to the other category if there is a deficit.

Any thoughts?

jbh001
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Postby jbh001 » Sun Apr 25, 2010 8:35 pm

We wrote the check from the Other category so there was only one check for yearly scout camp. We then wrote a check from Budget to bring that Other category up to zero. We then count any subsequent donations to that Other category as going towards the next year's scout camp.

We fund all other activities from the Budget so we can get a more accurate picture of how much it truly costs to run that program, which helps the bishop have a better idea of how to allocate our unit's budget allotment among the various ward organizations.

jdlessley
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Postby jdlessley » Sun Apr 25, 2010 9:53 pm

sgoodrich wrote:How does one accurately account for activities that use both Budget funds and Other funds such as scout camp.

For example a ward budgets $400 to subsidize a scout camp. The scouts do a fundraiser which earns $300 and each scout pays an additional $50. The fundraiser money and paymenst from each scout are deposited into the Other:Scout Camp category lets say it equals $500. The total available funds for the camp are now $900.
You should have a good understanding of the instructions provided in the Church Handbook of Instructions, Book 1, in dealing with funding activities. The Budget Expenditures section begins on page 159. For annual camps and equipment outlined on page 160 there is a provision for fund raising which is addressed on page 161. Using that guidance you will find that the first source of funds for annual camps is to come from the ward budget, then from the participants, and finally from fund-raising if the stake president or bishop authorizes it. I mention this because budget funds do not subsidize annual camps - they are the primary source of funds. Additionally Scouts do not pay an additional amount beyond a fund raiser. That implies the opposite of the order the CHI provides in funding the annual camp(s). If there are any excess funds in the Other account sub-category after paying for the camp(s) they most likely would be from the fund raiser and not the Scouts' contributions.

If the camp(s) will accept two checks to cover the expenses then the first check should come from the allocated budget funds then the remainder by a check from the Other category sub-account identified for the camp(s). If only one check will be accepted then the check for the entire amount can be written from either the appropriate budget account or from the Other category sub-account. If the check is written from the budget account then the deficit of funds would be deposited from the Other category sub-account into the budget account using the procedures described in the wiki article Other category: How to deal with deficits.

The information in the wiki article describes how to bring a deficit in an Other category sub-account to zero. It is the last part that describes the process of getting funds from a budget account into an Other sub-account that is important. The same process applies in getting funds from an Other sub-account into a budget account.

There is no guidance directing which account, budget or Other category sub-account, is preferred in a situation where one check must be written with funds from both accounts. Personally I prefer the budget account since the first priority, according to the CHI, is from the budget. It also helps in future budget planning. I would then write a check from the Other category sub-account and deposit it into the budget account to cover the deficit. Any remaining funds in the Other sub-account would then be handled as per the instructions for Other category sub-accounts.
JD Lessley
Have you tried finding your answer on the LDS.org Help Center page or the LDSTech wiki?


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