That is because there is a problem. Keeping the funds in the parent category is will get the unit an audit exception for sure. Funds in the other category is suppose to be for a specific purpose therefore should have their own sub-category.russellhltn wrote:Agreed. But I think some people see a balance in "other" and immediately assume there's a problem. I'm saying that the parent category of "other" could carry a balance for years and not be a problem as long as all the sub-accounts are compliant.Gary_Miller wrote:The audit sees it as a problem if the funds in the other category is not designated for a specific purpose and spent in a reasonable amount of time.russellhltn wrote:I don't see as carrying a balance in "Other" category is a problem as long as the individual sub-accounts that represent specific activities are closed in a reasonable length of time after the event.
Correct, but I don't think "should" is the correct word it leads to the belief that there are options. In this instant the correct word would be "must".russellhltn wrote:I understand what you are saying, but in the context of this thread, it might be misunderstood.Gary_Miller wrote:The whole principle is to use the Budget allowance for every thing including camps.
I'm saying that to keep one's books clean, all funds collected should go into a specific "other" sub-account.
There is no need for a transfer when you write the check out you just ensure that you charge to the proper category. If the funds in the other is intended to be used for the purpose of the expense then use the other account. If there is not enough funds in the other to cover the total expense put the rest of the expense in the proper budget category.russellhltn wrote:Between transfers from budget and expenses charged to the "other" sub-account, the account is brought back to zero. If that's done then it's easy to see that all funds raised went toward the event. But if there's ever a transfer from "other" to budget, then the scope of inquiry has to expand to see if the expenses paid from budget for the event covers the transfer. If it does not, then not ALL of the fund-raising went into the event - some ended up enlarging someone's budget.
All funding for an activity should be ran through the budget allowance. Unless the Bishop decides there is insufficient budget funds and funds are then collected from individual participants or through a fund raiser for the specific Camp or other authorized purpose, at which time you should put the expense against the specific other category.russellhltn wrote:By all means, use as much budget to fund the activity as possible. But if one runs all the funding though the budget account, then you can end up with less-than-transparent bookkeeping.
There should never be any expenses in the other category unless there is enough funds in the specific other category to cover the expense.