Auxiliary Budget Rollover

Discuss questions around local unit policies for budgeting, reconciling, etc. This forum should not contain specific financial or membership information.
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jarcher
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Auxiliary Budget Rollover

#1

Post by jarcher »

In our ward, we have a new Primary President that just asked me about her remaining budget for 2020. Upon reviewing the Primary Budget, the old Primary President used 41% of the annual budget. 59% of the budget is remaining for the new Primary President to use in this calendar year.

Her question to me which I, in turn, ask all of you is this: If she does not use the remaining 2020 budget does it "roll over" and get added to her 2021 budget, or does it just disappear?

For my own personal knowledge and understanding. If the budget does not "roll over" where does it go (Back to the General Ward Budget or Stake Budget)? How does that all work?

Any and all insights would be greatly appreciated!
wwoodford
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Re: Auxiliary Budget Rollover

#2

Post by wwoodford »

That is a question to ask of your bishop, not this group. If he has questions about the rollover of budget funds he should talk to your stake president. The church does not retrieve unused money from the unit accounts.
drepouille
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Re: Auxiliary Budget Rollover

#3

Post by drepouille »

The stake president can certainly ask the units in his stake to return part or all of their remaining budget to the stake. However, that is rare in my experience.

At the end of the year, all remaining budget funds return to the ward budget. It is up to the ward council to decide how to allocate the budget for the coming year. You add the remaining ward budget funds to your estimate of the next four quarterly budget allocations to approximate how much budget will be available for the coming year.

You can see how I approach the budgeting process here:
viewtopic.php?f=46&t=37691
Dana Repouille, Plattsmouth, Nebraska
drepouille
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Re: Auxiliary Budget Rollover

#4

Post by drepouille »

Handbook section 34.7.2.2
Unneeded budget allowance funds should not be spent. Unneeded ward funds are returned to the stake. Unneeded stake funds are returned to Church headquarters or the assigned area office. As an exception, stakes and wards may retain some unspent funds if they are needed for specific activities that are planned for the next year, such as a youth conference. However, significant portions of the stake or ward budget allowance should not be retained from one year to the next to cover travel expenses.
Dana Repouille, Plattsmouth, Nebraska
russellhltn
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Re: Auxiliary Budget Rollover

#5

Post by russellhltn »

As I understand it, here are the mechanics:

Auxiliary budgets (as in a spending plan) are reset at the end of year. There is no carry over.

The budget allocation the ward gets can be thought of as an actual account balance, and will by default carryover at the end of the year - just like how your personal bank account balance does.

However,

Stake presidents can see how much carry over there is in the ward allocation, and may ask for some of that to be returned to the stake or church headquarters. See the Handbook quote listed above. The bishop could decide to increase the primary's budget. So, the final answer resets with the leadership.

Note however, that budgets should NOT be handled based on "how much can I get", but "here's my plan, can I get it funded". See General Handbook 34.7.1 for details.

Also, while the Primary budget may show a surplus, there's a possibility that money may not really be there. Remember, the Primary budget is a spending plan, while the ward allocation are the actual funds. With all the changes this past year has brought, it's entirely possible the ward's allocation can not cover the remainder of the Primary budget due to unforeseen expenses.
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drepouille
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Re: Auxiliary Budget Rollover

#6

Post by drepouille »

Yes, exactly. As we approach the end of the year, we can see how good or bad our guesses for this year's budget allocations were.

I compared our current ward budget balance on the Income and Expense Summary with the remaining Budget Balance. I found that I had overestimated our income for this year by several hundred dollars. So the budget amounts I had allocated to the auxiliary organizations doesn't really exist -- it was just a planned amount, not actual money. So it is possible that "unspent" funds may simply not exist due to bad income estimates.
Dana Repouille, Plattsmouth, Nebraska
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jarcher
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Re: Auxiliary Budget Rollover

#7

Post by jarcher »

Thanks to each one of you for sharing your perspective on the proper protocol to follow. I'll go to the General Handbook as directed and immerse myself in the details. I am so grateful for the opportunity that this forum provides to glean wisdom from everyone's first-hand experience. You all are just so amazing and I appreciate being able to rely on you for advice.
BrianEdwards
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Re: Auxiliary Budget Rollover

#8

Post by BrianEdwards »

Another aspect to consider as we all take a look at our remaining budgets, is that very very often, the "current balance" is deceiving. There's two main reasons for this:
1) Members have forgotten to submit reimbursement requests. The eternal bane of financial clerks, trying to keep members from saving all their receipt reimbursements until December (or worse, until the next year)
2) Members choose not to request reimbursements. Some members will just "eat the cost" of activities, which skews future planning. If a Bishop sees an organization getting reimbursed for less than what they actually spend, he may give them a smaller budget in an upcoming year. Then a new Primary President who doesn't have the ability to "eat the cost" of activities, finds herself with less money to spend than what's needed.
So that's all to say that as you consider what currently shows as "unspent budget", you may want to dig a bit deeper to ensure that it's a true reflection of the Primary expenditures. If so then that's great!
waynecooke
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Re: Auxiliary Budget Rollover

#9

Post by waynecooke »

drepouille wrote:
It is up to the ward council to decide how to allocate the budget for the coming year.
I feel that this may be in error. Unless things have change since I first became Financial Clerk in 1997 ( continuous except for one three year break 2002 to 2005) it is the Bishop "to decide how to allocate the budget for the coming year." The instructions have been that each group President would submit to the Bishop his/her plans for the coming year. The Bishop would go over them, with an eye to the estimated money coming in, and then discuss his findings with the President. Then he, with the Clerk, would go into LCR/MLS and enter the numbers he was inspired to enter. The final decision is the Bishop's as he has total Ecclesiastical authority in the Ward.

Am I in error?
jdlessley
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Re: Auxiliary Budget Rollover

#10

Post by jdlessley »

waynecooke wrote:Am I in error?
Yes and no. The bishop regularly reviews budgets and expenditures with ward clerks and ward leaders, the ward council (General Handbook, 34.3.1). The bishop receives direction from, and counsels with, the stake president (General Handbook, 34.2.1). For the topic of this thread it would be appropriate and in accordance with the General Handbook to counsel with both the ward council and the stake president in regard to the excess budget funds at the end of the year.
JD Lessley
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