quarterly Budget for Auxillaries in UK

[Michaeljefferyjones]

We have a new Bishop and he is questioning how the budgets are allocated(and quite rightly so)
With the previous bishop's a cheque for a set amount is given the the leader say Primary at the beginning of each quarter. Before the end of that quarter receipts and any monies left are returned.
The money goes on a donation slip and the yellow copy together with the receipts are put into the same folder as when the cheque was issued.
However the Bishop would like the Leaders to make their purchases and then bring the receipts in and then be reimbursed.

However the Leaders, some are on low incomes and cannot afford to follow this method.
Can you advise me what is Church policy on this. If method one is ok, then the new Bishop will accept payment of cheque first then wait for receipts.
Thanking you in anticipation for your help
Michael (Ward Clerk)

[russellhltn]

I don't think the UK is handled differently.

Advances are acceptable, but I've only heard of it for a specific event (like a social) and not for a whole quarter.

Handbook 1: 14.6.7 says that petty cash funds are not allowed.

[Michaeljefferyjones]

No petty cash is used just the cheques-If method one is not used that the clerk or a member of the Bishopric will have to go with the leader to make purchases and The Clerk or the Bishopric would then have to be reimbursed as all leaders are are on low income. This will cause considerable problems.

Thanks Michael

[russellhltn]

No petty cash is used just the cheques

But by giving them their quarterly budget in advance, that seems like a petty cash fund to me. It's just held by the auxiliary instead of the clerk.

[simonawright]

In this regard the UK is no different to the U.S. Normally cheques are issued when receipts are received. As already stated advances can be made for those who would struggle to carry the cost of any purchase but I would expect that to be the exception rather than the rule, we tend to do it if the amount of a specific expense is going to be large.

From what has been said by the OP the unit might not have a choice if they are to keep the financial burden at tolerable levels for the leaders.

It sounds like this has been happening for some time and I am curious what the auditors and the audit committee chairman feel about this arrangement.

[lajackson]

From what has been said by the OP the unit might not have a choice if they are to keep the financial burden at tolerable levels for the leaders.

It sounds like this has been happening for some time and I am curious what the auditors and the audit committee chairman feel about this arrangement.

I believe in this case the audit committee chairman should be aware if this is more than an occasional practice. He can consult with the stake president, and the stake president with his area leaders if this is a practice that needs to be used more often than occasionally due to the financial circumstances in your particular location.