Entering fundraiser money

[mfmohlma]

I also think that you are reading the policy on surpluses a bit narrowly -- as I read it, as long as funds are to be used for the specific purpose, raised funds don't have to all be used in a particular calendar year or for a particular instance of the purpose.

But I raise that possibility not to get into a debate on the meaning of the policy, but simply to mention that there are other possible interpretations. Local leaders and auditors have the responsibility for making the definitive interpretations of the written policy for their particular units.

I kind of read it this way as well. I'll certainly check with the appropriate folks to make sure I've got it how they want it.

Speaking of auditors, after coming up for air after tithing settlement I printed out my first copy of the audit form. Alas, that's a topic for another thread.

[RossEvans]

I also think that you are reading the policy on surpluses a bit narrowly -- as I read it, as long as funds are to be used for the specific purpose, raised funds don't have to all be used in a particular calendar year or for a particular instance of the purpose.
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I would very much like to believe in a less restrictive interpretation. If we could have a revolving subaccount for scout camp and another for cub day camp, with balances carried forward, it would make life much easier.

But our auditor has dinged us in the past for carrying forward positive balances after the particular annual camps were paid for. Thus, we recently zeroed out the balances of these subaccounts before the end of 2008, writing the checks to CHQ as jdlessley described above because prorating all the refunds was not feasible.

[mfmohlma]

I would very much like to believe in a less restrictive interpretation. If we could have a revolving subaccount for scout camp and another for cub day camp, with balances carried forward, it would make life much easier.

But our auditor has dinged us in the past for carrying forward positive balances after the particular annual camps were paid for.

I think the key lies in audit checklist item 38, which describes "pass-through funds" and states that the "Other" category is "often used" for that purpose. The word "often" connotes to me "but not always". That word, taken with the reconciliation process called for in 37 and the wording of checklist question 22 might convince your auditor otherwise. It has convinced me (but since I'm a newbie, I've yet to be audited myself ).

[jdlessley]

I think the key lies in audit checklist item 38, which describes "pass-through funds" and states that the "Other" category is "often used" for that purpose. The word "often" connotes to me "but not always". That word, taken with the reconciliation process called for in 37 and the wording of checklist question 22 might convince your auditor otherwise. It has convinced me (but since I'm a newbie, I've yet to be audited myself ).

Auditors do not interpret Church policies or procedures. Before an audit cycle, auditors are trained or retrained as the case may be. That is when questions regarding issues such as this are brought up. In our stake, if questions such as this come up during an audit and has not been addressed in the pre-audit training we are instructed to call the audit committee chairman to receive further guidance. I have found that each stake president interprets carrying forward funds from fund-raisers differently. My current stake president does not allow carrying funds forward from one camp to the next. In contrast I had another stake president permit fund-raiser fund carry-over from one camp to the next.

[RossEvans]

I have found that each stake president interprets carrying forward funds from fund-raisers differently. My current stake president does not allow carrying funds forward from one camp to the next. In contrast I had another stake president permit fund-raiser fund carry-over from one camp to the next.

Since there does seem to be a variance of opinion, and we have a new stake presidency, I will suggest to our bishop that we inquire specifically through priesthood channels about what interpretation of policy applies to our ward. I will suggest to my bishop that we do so, lest we apply more restrictive rules than necessary. Given the original poster's question, it might be prudent if he does the same, lest he apply less restrictive rules than are required in his unit.

[russellhltn]

Just to throw another option into the mix: In our area there is a Regional Singles Conference. Each year, any money left over is kept to the next year as seed money to help pay for flyers, registration forms, and of those expenses incurred before any income from registrations. So in this case there's always a carry over, but in the long term there is no profit or surplus. It's simply a "seed" that is consumed and replenished each cycle.

[mfmohlma]

Given the original poster's question, it might be prudent if he does the same, lest he apply less restrictive rules than are required in his unit.

I will most certainly do so. Since this is the first fundraiser in quite some time I have about a year to get it right. Should be enough time.

Thanks all for your input!

[LSS-p40]

In the event you don't use all of the money from a fund raiser, you may hold it over for the next years' annual camp. Remember, these funds may be used to buy group equipment for those camps, such as tents, cook stoves, etc. The idea is that next year, you will have a fund raiser that won't raise as much money, and you will use the left over from the prior year if possible. People will not get tax donation credit for this, and unless the unit charged a person a specific amount (rather than a fund raiser) and didn't use all of it, then, yes, you could refund to that person.
The problem with the audit is when you can't account for the funds in the Other account and you spend them willy nilly. You have to spend the money for the purpose it was brought in for. If you aren't going to do that, then you have two options 1) send a check to headquarters as surplus funds, or 2) if you are in need in the Ward Missionary category, you can write a check from the sub account of Other and deposit it into Ward Missionary. Once you do that, you can not move it back to Other in the future.

Hope this helps.

[aebrown]

You have to spend the money for the purpose it was brought in for. If you aren't going to do that, then you have two options 1) send a check to headquarters as surplus funds, or 2) if you are in need in the Ward Missionary category, you can write a check from the sub account of Other and deposit it into Ward Missionary. Once you do that, you can not move it back to Other in the future.

This is interesting, but doesn't match what is taught in the Understanding and Using the "Other" Category online lesson. That says (on slides 24-25):

If there are excess funds in the “Other” category, and the funds do not have an identified purpose, you should first try to identify what the original purpose was. If you cannot identify the purpose, clear the funds by printing a check from the “Other” subcategory, payable to Corporation of the President. In the “Purpose” field, enter “Surplus ‘Other’ Funds.” Send the check to the address on the screen.
If the purpose of the excess funds is identified, and the funds were not used for the intended purpose, you can either:
Return the leftover funds to the member by printing a check payable to the member from the applicable “Other” subcategory.
Or obtain permission from the member to change the category of the donation from “Other” to a charitable category such as fast offering or humanitarian aid.

You described an option for transferring funds to the Ward Missionary fund, which I have not seen documented anywhere. What is the source for this policy?

If it is indeed policy, why is it not documented in the training lesson?

[LSS-p40]

This is interesting, but doesn't match what is taught in the Understanding and Using the "Other" Category online lesson. That says (on slides 24-25):



You described an option for transferring funds to the Ward Missionary fund, which I have not seen documented anywhere. What is the source for this policy?

If it is indeed policy, why is it not documented in the training lesson?

Sorry, I should have clarified "if the funds are unknown ", however if they were from a fundraiser that you can not identify the participants (most units usually can't, so it would be impossible to divide it up and give it back) and you aren't going to use it for the next year's camp or equipment, then you can put it into Ward Missionary, if there is a true need or send it to church headquarters as surplus funds.

This is an option we have given to units that have no idea where the funds came from and/or can't identify who contributed in the fund raiser, and are not going to use the funds for the next year and have a deficit and /or need in their ward missionary account. The important thing is you can not use these funds for other activities.



I'm sorry if I have confused the issue.