Bank Interest Posted to the Other Category

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aebrown
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Location: Sandy, Utah

#11

Post by aebrown »

Quicky wrote:Here's an example of an interest payment gone awry: We have a prison branch in our stake. Obviously, they do not carry missionary funds in any account. We did, however, receive a $.01 interest payment to the non-existent missionary fund. It has shown up as an exception in every audit since. SLC said it would be too much trouble to fix the problem. I could have the branch write the stake a check for the 1 cent and mail it to the Stake Missionary fund and use a 44-cent stamp to do it. That is a wise use of resources! KQ
It's definitely worth well over 44 cents to eliminate all the work that various levels of the audit mechanism go to in order to process an exception every six months. I would certainly recommend that the branch write the check and be done with it. But the stake doesn't have to be involved, and you can save 44 cents. Just have the branch deposit the penny in any charitable category, such as General Missionary.

I would also think that an auditor could use some reasonable judgment and overlook a one cent exception, but that's a decision for the local audit committee to make. I doubt that our stake's audit committee is going to consider any of this interest money in the Other account to be an exception worth writing up.
Questions that can benefit the larger community should be asked in a public forum, not a private message.
quicky
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Joined: Sat Aug 28, 2010 2:16 pm
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#12

Post by quicky »

On reflection, I think the prohibition on 'parking' monies in Other accounts is an artifact of the years past practice of various wards trying to 'hide' monies that could not be carried over. With each ward now able to carry-over monies in a following years budget, I suspect the 'Other' account will be used more often for event accruals. KQ

It was CHQ who told us not to worry about the .01 in the missionary fund. I am still curious where it could have come from.
crislapi
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#13

Post by crislapi »

Quicky wrote:All the monies reside in SLC or an investment bank somewhere, the categories are merely an accounting method for keeping our heads straight with the funds.
I may be wrong (and consensus seems to agree) with my opinion. Regardless, this last statement is a poor argument. It does matter what money goes where and there are sections in the handbook and ample information here, in the wiki, and in the online trainings that testify to that.
Quicky wrote:Obviously, they do not carry missionary funds in any account.
Why not? Are prisoners not allowed to donate to the missionary fund? Ward missionary funds can be moved around by the stake to help other wards.
Quicky wrote:On reflection, I think the prohibition on 'parking' monies in Other accounts is an artifact of the years past practice of various wards trying to 'hide' monies that could not be carried over. With each ward now able to carry-over monies in a following years budget, I suspect the 'Other' account will be used more often for event accruals.
I'd agree, except you can now accrue the funds in your budget (if you are accruing budget money) in an appropriate subcategory. I guess I'm just a minimalist when it comes to using Other. I prefer to avoid/prevent problems by only using it when no other way will work.
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