New ward finances set up

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cjbeckert
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New ward finances set up

#1

Post by cjbeckert »

Our stake will be creating a new 3rd ward out of two very large existing wards. As stake finance clerk, is there anything I need to do help set up the new ward financially or does CHQ handle everything? Will the new ward receive starter funds from the two existing wards or will it have to wait for it's first quarterly allocation to begin covering expenses? I'm already receiving questions about how to set up the new ward finances but am getting/finding no guidance or instruction myself. How does this process work?
russellhltn
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Re: New ward finances set up

#2

Post by russellhltn »

cjbeckert wrote:Will the new ward receive starter funds from the two existing wards or will it have to wait for it's first quarterly allocation to begin covering expenses?
The stake will need to instruct the two wards to transfer funds/cut checks to to the new ward. Unless the new ward has it's first meeting tomorrow, it's first quarterly report won't be until 2nd Quarter, which means it's first allocation from CHQ won't happen until the start of the 4th quarter.
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cjbeckert
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Re: New ward finances set up

#3

Post by cjbeckert »

russellhltn wrote:The stake will need to instruct the two wards to transfer funds/cut checks to to the new ward.
I assume the SP will determine the amount after input from the affected bishops.
russellhltn wrote:Unless the new ward has it's first meeting tomorrow, it's first quarterly report won't be until 2nd Quarter, which means it's first allocation from CHQ won't happen until the start of the 4th quarter.
It's being stood up tomorrow in a special combined meeting of the two existing wards which means its first meeting on its own will be after GC. Since the new ward won't receive it's own allocation until Q4 it sounds like the two existing wards will have to send over a portion of their Q2 and Q3 allocations when they receive them. And that amount, whether determined to be an actual dollar figure or a percentage of the allocation, will be determined by the SP.

Thanks for the insight. I'll work with the SP to determine how much each ward provides and make sure it happens.
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Re: New ward finances set up

#4

Post by russellhltn »

cjbeckert wrote:I assume the SP will determine the amount after input from the affected bishops.
That would be my assumption as well. I'd guess it would be based on the split of "active members" (those whose attendance was factored into the budget received from SLC). They might also need to split any "left over" from 1st quarter.

In addition, the stake might consider a bit extra from their funds to set up the office supplies.

The bottom line is wards are dividing up an existing membership - there are no new members. So, no additional funds now or in the future. The only thing that changes is how the funds are divvied up.

Of course, the two existing wards will probably need to revise their budget. Many times, event costs don't scale exactly on a per-person basis. As such, the 2 old wards may find they need to "simplify" their events as well as plan for fewer people. Quorums and auxiliaries will probably have to revise their budgets and event planning as well.
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jonesrk
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Re: New ward finances set up

#5

Post by jonesrk »

What our stake has done for the 2 quarters after the split is just set the percentage that the affected wards will receive to zero and then the stake transfers the correct amount to each of the wards involved. We notify them of the plan so they aren't suprised when they allocation doesn't show up automatically. I believe that the stake has also given the ward some money for startup, but I'm not sure on that.
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cjbeckert
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Re: New ward finances set up

#6

Post by cjbeckert »

jonesrk wrote:What our stake has done for the 2 quarters after the split is just set the percentage that the affected wards will receive to zero and then the stake transfers the correct amount to each of the wards involved.
That sounds like an interesting idea. The stake can then do the calculations and have more positive control pushing out the funds to where they need to be. I wouldn't have to stay on top of the other 2 wards to make sure it happens and in the right amount.

My only concern about this approach is the Q2 projected allocation report came out on 1 March with the percentages still set to current levels, before I knew this was happening. Actual allocations should deposit first week of April (this week) so I'm thinking it may be too late to change percentages to zero and keep all the funds at the stake level.

Anyone know when the cut-off date is to change allocation percentages for an upcoming quarter and have them take effect?
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Re: New ward finances set up

#7

Post by lajackson »

cjbeckert wrote:Anyone know when the cut-off date is to change allocation percentages for an upcoming quarter and have them take effect?
I have no idea, but I would do it today and see if it takes. Best case, it works. Worst case, you have to rearrange this quarter but next quarter is set.
Tglover12
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Re: New ward finances set up

#8

Post by Tglover12 »

How do you set up a local bank account for the new unit? Our ward has been created for a week now, but members are unable to make donations and receive physical currency donations.
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Re: New ward finances set up

#9

Post by russellhltn »

Tglover12 wrote:How do you set up a local bank account for the new unit? Our ward has been created for a week now, but members are unable to make donations and receive physical currency donations.
Normally, I believe Church Headquarters sets that up. If not, then they send directions.

But first the big question - has the leadership sent in the paperwork? Until CHQ gets official word that the deed has been done, they won't pull the trigger on their side.

There's also another potential complication: The church avoids making any kind of change to the systems in the 3 weeks surrounding General Conference. I don't know if that includes adding new units or not.
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jonesrk
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Re: New ward finances set up

#10

Post by jonesrk »

russellhltn wrote:
Tglover12 wrote: There's also another potential complication: The church avoids making any kind of change to the systems in the 3 weeks surrounding General Conference. I don't know if that includes adding new units or not.
As far as I know adding new units still happens. That is just data :). The changes are app updates or config changes.
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