Difference in Budget Allocation Report and Income/Expense Report

[ffrsqpilot]

I tried to do a search on this question but didn't find anything pertinent. Maybe I haven't been paying attention, or just never noticed it before but there is a difference in the "Remaining Budget" and "Ending Balance" on these two different reports. I believe however that they should be the same amount - otherwise why have Budget Categories in the Income and Expense Report.

Our Stake Primary President gave me a couple of reimbursement forms last night and this morning I went in to print the checks. As a favor I wanted to update her on what her remaining budget was. After I printed the checks and did a send/receive I went to the Income and Expense "Detail" Report and printed out the information for our Primary President. What printed out was not what I knew was remaining in the budget. The Income and Expense Report "Detail" shows $0.00 as Ending Balance while the Budget Report shows just over $261.

As a check I did a review of another category "Young Women" to see if something similar occurs. Indeed it does - there is a difference between the bottom line on these two reports. For example: (I am using actual numbers so this makes sense)

Budget Allocation Report (1 Jan 2009 - 18 Jun 2009) Young Women

Allocation (Budget allocation for 2009) $1500.00
Donations $0.00
Expenses (Total) -$317.99
Transfers $0.00
Remaining Budget (As of 18 Jun 2009) $1182.01

However when I use the Income and Expense Detail Report for Young Women this is what I get:

Beginning Balance (Balance as of 1 Jan 2009) $0.00
Donations blank
Expenses -$317.99
Transfers $317.99
Ending Balance $0.00

It is obvious that when a budget allowance is entered into the budget that it does not show up in the Beginning Balance on the Income and Expense Report. Is there a reason that this doesn't happen?

I guess the bottom line is - if I want our Auxillary Presidents to have the right balance in their budget I need to use the Budget Report. I would only use the Income and Expense Report to give accurate balances to categories listed in the "other" account.

Is this what was intended or is there a reson for this.

Jim

[aebrown]

I tried to do a search on this question but didn't find anything pertinent. Maybe I haven't been paying attention, or just never noticed it before but there is a difference in the "Remaining Budget" and "Ending Balance" on these two different reports. I believe however that they should be the same amount - otherwise why have Budget Categories in the Income and Expense Report.

You ended up explaining the bottom line pretty well. The fundamental difference between Budget and other categories is that there is a Budget Allowance for the Budget category, which doesn't apply to any other category.

There are basically three kinds of categories:

1. Tithing, Fast Offering, and special zero-balance subcategories of Other (donation categories such as Humanitarian Aid or Perpetual Education Fund, and expense categories at the stake level such as Scout Registration or Missionary Host Family). For these categories, every donation is balanced by a transfer out, and every expense is balanced by a transfer in. Thus their Ending Balance will always be 0.
2. Other and all its non-special subcategories, and Ward Missionary. These are the balances you actually carry in your unit checking account.
3. Budget. This category works like the first group of categories in that its Ending Balance will always be 0. But the way the Budget Allowance is handled requires a separate accounting, unique to this category.

The Budget Allowance is not an actual transfer of funds. A stake or ward is not given money each quarter or year. Rather an amount is allocated to the stake by the Church, and the stake in turn allocates a portion of its allocation to each ward, reserving a portion for its own use.

Because money is not actually transferred as part of the Budget Allowance, the Income and Expense Report cannot possibly show anything regarding the allowance, including remaining budget. You're certainly right that the Income and Expense Report is not all that useful for the Budget category, although if it does show an Ending Balance other than 0, that certainly lets you know that you need to fix something!

That is why there is a separate Budget Report. The Budget Report takes into account the Budget Allowance for each subcategory (assuming you have properly entered those amounts using Edit Budget), and can then tell you based on income (if any) and expenses what portion of the Budget Allowance remains.

So the basic rule is: use the Budget Report for the Budget category; use the Income and Expense Report for all other categories.

[russellhltn]

Yes. It's been that way since the FIS days. Ward Missionary and the Other account works just like a personal bank account. Money comes in, money goes out, and each transaction affects the balance.

On the other hand, Budget (and Fast Offering) are both "magic purse" accounts. Any money spent is magically replaced when the check is processed so the balance should always be zero. So to track the Budget expenses, you have to use the Budget Report. That's probably one of the more difficult concepts for new Financial Clerks to figure out. It's sure a lot different then how one handles their own bank accounts.

[ffrsqpilot]

Thanks once again Alan.

I knew that if there was a balance other than $0.00 in a budget category when you look at the Income and Expense report that something was wrong. I just never thought about the two reports being that different. I always use the Income and Expense Report for giving Auxillary Presidents updates on items like Girls Camp or Boys Camp etc. This is the first case I guess where I used the Income and Expense Report to give an update on an Auxillary Budget. It just struck me strange that the bottom line on the two reports would be different. However Alan's explanation makes perfect sense.

Obviously I need to pay more attention!