In July our stake had two units receive letters, instructions, and mailing packets to start using for donation deposits rather than continuing to use their current banks (which had depository accounts). I called Salt Lake and asked about this change and was informed that the Church has been closing Depository Bank Accounts since the beginning of the year. It is just our stakes turn in the barrel to undergo this change.
I have read the instructions sent to the two units and it seems pretty straight forward except for the actual handling of how the Church will close the accounts. Further, when it comes to how the unit will handle the first (and perhaps several following) reconcilliations I am somewhat befuddled as to how that will be managed.
Following are the instructions on the last page of the letter both units within our stake received regarding how to close the account.
1. Church Headquarters will contact the bank and close your local depository account. We instruct the bank to send you a copy of the check that closes the account, for your records.
2. These funds will be returned to Church headquarters by charging your Budget category. You may have less than compensating balance because of bank charges. You may have more than the compensating balance if the bank has paid interest on your account. Depending on the amount, these funds will appear on your financial statement as an offset to the original $1100.00 compensating balance. Any excess will be applied to the Ward Missionary category. All bank service fees can be reimbursed by sending copies of your bank statements, which show the charges, to the Finance Department. Remember that he Unit's local depository account will be closed by Church headquarters.
What has me befuddled is the first sentence in the second paragraph. Just how will the unit do their reconcilliations. I don't remember the depository account data being part of the MLS reconciliation process (have only done a couple two years ago when helping a new clerk in the branch that had the depository account). What further befuddles me is what if the unit doesn't have enough funds in "their budget account - which is allotted by the stake" to cover $1100? I called Salt Lake (specifically the office that sent out the letter and is handling this change) but to be honest I am still confused as to how this is all supposed to work out. The individual I talked to explained about debiting the account and then reimbursing the account when the bank sends the "Depository Account funds" to Salt Lake. So what does this look like on the unit finance statement?
I am sure this will all work out, but am wondering if any of you stake clerks (and ward or branch clerks) have gone through this process. How did it work? Any complications? Reason I ask, is that as the stake clerk I am sure I will get asked a few questions about it - especially the reconcilliation process in trying to balance a budget subtraction and addition if I understood Salt Lake correctly (which is a big assumption on my part)! I tried explaining this to the Stake Presidency both before and after calling Salt Lake and I still couldn't explain how the reconcilliation and movement of funds was supposed to work out for the units.
Helpen alstubelieft (have to practice my Dutch every so often )