Reconciling the Budget category
Since most of the financial activity in a ward involves the Budget category, it would be helpful to reconcile the Unit Financial Statement with Budget entries in MLS. Financial clerks can follow this method for doing this reconciliation.
- Make sure that you have Budget subcategories for all expenses. The parent category Budget should not be used for any expenses. Each of these subcategories should have an assigned allocation amount.
- Enter all expenses for the statement month.
- Generate a Budget Report from MLS (under Finance | Reports/Reconcile). Choose Summary (not Detail). For the Date Range choose Custom; when prompted, enter 1 Jan of the current year as the starting date, and the last day of the Unit Financial Statement month as the ending date. Press the Select All button to include all categories. Print the report. (Note: In some years, when Church HQ cuts the year off early, you will need to set the date earlier than 1 Jan if your unit wrote checks after the cutoff date but before the beginning of the current year.)
- Near the end of the Unit Financial Statement is a section titled Year To Date Summary, which contains lines for Total Deposits and Total Disbursements. Find these two amounts for the Budget category. Compare these amounts with the totals for Donations and Expenses at the bottom of the Budget Report you printed. If they match, you are done.
- If the Budget Report expenses are less than the total budget disbursements on the Unit Financial Statement, you should look at the current Unit Financial Statement for unrecorded expenses. Otherwise, you may want to repeat the above process for earlier months to narrow down your search. Enter expense records for any unrecorded expenses, then go back to step 3.
- You may want to file the printed Budget Report for future reference.