Unit Financial Statement
The Unit Financial Statement is a statement that is sent monthly to each unit of the Church in North America. It is transmitted electronically to units via MLS a few days after the end of the month, and can be viewed on the Finance screen under Financial Statements. The Action Items listed in the statement are used to help bring MLS records into agreement with financial records at Church Headquarters.
The Unit Financial Statement consists of several sections.
- Summary: Contains a beginning balance, the total income, the total expenses, the total transfers, and the ending balance for the ten categories covered by the statement. These categories are Tithing, Fast Offerings, Ward Missionary Fund, General Missionary Fund, Book of Mormon, Humanitarian Aid, Temple Construction, Perpetual Education, Budget, and Other.
- Action Items: Lists all outstanding items, including checks, deposits, and so forth. It also lists any problems such as a payment made by the disbursing bank that has no matching record recorded by the unit, or overdrawn funds. The clerk and the bishop should review these items, take action, and sign the statement showing that this has been done.
- Income Summary: Replaces the old Deposits section, showing the reference number, date, description, and amount of each deposit.
- Expense Summary: A combination of the old Checks Cleared and Miscellaneous Disbursements sections, showing the reference number, date, description, and amount of each expense.
- Detail: Lists in order the detail of transactions in each of the ten categories (see Summary above). Each category has a beginning balance, transactions, transfers, and ending balance.
The amounts in the Beginning Balance column should exactly match the values in the Ending Balance column of the previous month's Unit Financial Statement.
The values for all categories except Ward Missionary Fund, Budget, and Other should be 0. This is the case because all deposits to these categories are immediately removed ("swept") from the account by CHQ, and all expenses from these categories are automatically reimbursed.
All outstanding reconciliation items are listed here. Even though units no longer reconcile each month as they used to, there are outstanding items that need their attention.
- For checks that are outstanding more than one month, the clerk should contact the payee and have him or her either cash or return the check. Once a check goes six months without being deposited it is automatically escheated (in the United States).
- Any other outstanding items that are over a month old should be dealt with. Examples are deposits made to the bank that have no matching transmission batch, or overdrawn funds in one of the three categories that have a balance (ward missionary, budget, other).
- There is an area at the bottom of Action Items for the clerk and bishop to sign the statement. This indicates that they have looked through the statement and have taken care of any outstanding items that needed their attention. The auditor will look for these signatures.
The Income Summary lists all deposits for the month of the statement. The reference number is generated by headquarters. You will need this number if you have questions about a deposit. The date is the date the deposit was recorded at headquarters. The description for the Income Summary is the MLS batch ID number. The amount is the total amount of the deposit with all categories added together.
The Expense Summary lists all expenses for the month of the statement. This includes checks, charges from Church entities such as Distribution Services or LDS Social Services, and withdrawals made by the Missionary Department for full-time single missionaries serving from your ward.
The reference number can be the check number, the reference number generated by a Church entity, or a reference number generated by the Missionary Department for a missionary withdrawal amount. The date is the date the transaction was entered in the CUBS system. The description will be either the payee name for a check or a description of the transaction for a Church entity charge. Amounts will be in parentheses, such as (62.85.) This means it is a negative amount.
Each category has its own section under the heading "Detail." There are ten categories.
- Tithing - Shows each tithing amount deposited for each MLS batch date and then shows the same amounts transferred to CAO headquarters. This leaves an ending balance of zero.
- Fast Offerings - Shows each fast offering amount deposited for each MLS batch date. Then it shows each fast offering expense, the recipient, the fast offering code (housing, medical, etc.), and the purpose. Finally, it lists transfers to and from CAO headquarters that bring the ending balance to zero.
- Ward Missionary Fund - Shows each ward missionary amount deposited for each MLS batch date and then shows the expenses as withdrawals from the ward missionary fund to the Missionary Department. There may also be some transfers listed, such as the interest for the checking account being transferred into the ward missionary fund. The ward missionary fund typically has a balance of funds at the end of each month.
- General Missionary Fund - The general missionary fund is used to support missionaries worldwide and is not used by the local unit. Therefore, all funds are transferred to CAO headquarters. This section shows each general missionary amount deposited for each MLS batch date and then shows the same amounts transferred to CAO headquarters. This leaves an ending balance of zero.
- Book of Mormon - The Book of Mormon fund is used to print copies of the Book of Mormon for worldwide distribution and is not used by the local unit. Therefore, all funds are transferred to CAO headquarters. This section shows each Book of Mormon amount deposited for each MLS batch date and then shows the same amounts transferred to CAO headquarters. This leaves an ending balance of zero.
- Humanitarian Aid - The Humanitarian Aid fund is used to help in disaster relief and other worthy causes worldwide and is not used in the local unit. This section shows each humanitarian aid amount deposited for each MLS batch date and then shows the same amounts transferred to CAO headquarters. This leaves an ending balance of zero.
- Temple Construction - The Temple Construction fund is used to construct temples for the Church. This fund is not assigned to specific temples. If the First Presidency wishes members to donate to a specific temple, they will send a letter explaining how to use the “Other” category to do this. This section shows each temple construction amount deposited for each MLS batch date and then shows the same amounts transferred to CAO headquarters. This leaves an ending balance of zero.
- Perpetual Education - The Perpetual Education fund is used as a loan fund for returned missionaries and other members who want to better their education but lack the funds or opportunities to do so. The funds are loaned at a low rate and are expected to be repaid. These funds are not used by the local unit. This section shows each perpetual education amount deposited for each MLS batch date and then shows the same amounts transferred to CAO headquarters. This leaves an ending balance of zero.
- Budget - Budget funds are provided to stakes and wards based on attendance at sacrament meeting and the number of attending young men, young women, Primary-age children, and young single adults. Budget funds are used to finance the activities of the local units. Members are not expected to pay to participate in Church activities. An exception is made for annual camps for Scouts and young women. The budget category should have a beginning and ending balance each month.
- Other - The “Other” category is used for pass-through funds that are collected and used for a specific purpose and provide tangible benefits, such as products or services. Examples of uses for the “Other” fund are annual young women and Scout camps, Church magazines, and optional enrichment activities. The “Other” category typically has a beginning and ending balance each month.
In addition, there is a section that lists expenses that were reimbursed by headquarters.
Fund Balances over the Last 12 Months
There is a graph for each of the three funds that can have an ending balance (Budget, Ward Missionary Fund, Other). This can be used to see trends in income and spending.
This section lists changes in interest rates for the account and the day on which the changes occur.