Expenses

Discuss questions around local unit policies for budgeting, reconciling, etc. This forum should not contain specific financial or membership information.
drepouille
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Re: Expenses

#11

Post by drepouille »

I would treat this similarly to an "advance". The member can return the 9 cent difference the same way excess advance payments are returned.
Dana Repouille, Plattsmouth, Nebraska
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aebrown
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Re: Expenses

#12

Post by aebrown »

sah22 wrote:I actually have the same question. I am the financial clerk but was out of town when the bishopric cut a check. When I came back to look at how they performed things I noticed that we overpaid by 11 cents because the person who turned in the receipt got a little dyslexic on the tax. The member claimed 1.76 but the receipt was for 1.67. The check had been cashed. Now I don't know what to do. I was going to get 11 cents from member and update the expense in the computer but it doesn't let me. What do I do?
The responsible thing to do in this case is nothing. We're talking about 9 cents here. There's a general accounting principle of materiality, and this amount is not even close to material. I appreciate your attention to detail, but any change you try to make will cost you, the member, and the Church far more than 9 cents in time and actual costs. I'd just make a note on the documentation for the expense about the discrepancy, declare it to be immaterial, and move on. No reasonable auditor would have a problem with that.
drepouille
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Re: Expenses

#13

Post by drepouille »

aebrown wrote:I'd just make a note on the documentation for the expense about the discrepancy, declare it to be immaterial, and move on. No reasonable auditor would have a problem with that.
I agree with you in principle, but I have seen a few unreasonable auditors, as I am on the stake audit committee. As long as ward and stake leaders are aware of this issue, and document it prior to the next audit, an unreasonable auditor will be on the wrong side if he attempts to cite it as an audit exception, and will be left to kick against the pricks.
Dana Repouille, Plattsmouth, Nebraska
sah22
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Re: Expenses

#14

Post by sah22 »

Thanksforresponses. I will do that but it still messes up church tax records. They will have claimed 11 cents for tax exemption.
russellhltn
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Re: Expenses

#15

Post by russellhltn »

There might be a way to adjust the expense that fixes the tax portion without changing the total.
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sah22
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Re: Expenses

#16

Post by sah22 »

Not that i could find. That's why i came here.
drepouille
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Re: Expenses

#17

Post by drepouille »

drepouille wrote:
aebrown wrote:I'd just make a note on the documentation for the expense about the discrepancy, declare it to be immaterial, and move on. No reasonable auditor would have a problem with that.
I agree with you in principle, but I have seen a few unreasonable auditors, as I am on the stake audit committee. As long as ward and stake leaders are aware of this issue, and document it prior to the next audit, an unreasonable auditor will be on the wrong side if he attempts to cite it as an audit exception, and will be left to kick against the pricks.
Oddly enough, a very similar thing happened in my ward yesterday. A Cub Scout leader had purchased several items for the Pinewood Derby, and submitted several receipts, split among three reimbursement forms. I told my finance clerk to combine the three reimbursement forms, and just print one check. He did not double check the amounts written on the forms against the attached receipts.
I have learned through experience that Rule #1 is to never trust the numbers written on reimbursement forms, but to verify the amounts against the receipts, and to verify the math.
A reimbursement for $4.30 was requested, but the receipt showed a sales amount of $4.28, with two cents returned as change. Since my assistant had already printed the check, I simply wrote an explanation for the variance on the check stub and the expense form, and asked the bishop to sign to show his approval.
I also sent an email to the other members of the stake audit committee (of which I am a member), and they agreed that it is not worth the cost of printing a second check or creating a donation transaction of 2 cents to balance the books.
Dana Repouille, Plattsmouth, Nebraska
djbjorkman
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Re: Expenses

#18

Post by djbjorkman »

I have the same problem, but I don't see any solution above. The amount recorded in MLS is incorrect ($XXX.XX), but the check was issued and already cashed for $YYY.YY. So what do we do now? I can't edit the expense in MLS (except to void it... but again, the check is already cashed). Any help?

[Moderator edit: Replaced digits with letters.]
drepouille
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Location: Plattsmouth, NE

Re: Expenses

#19

Post by drepouille »

If you underpaid, then write another check. If you overpaid, ask the member to return the amount of the overage. When you receive and deposit the returned overage, choose Anonymous as the donor name.
Last year, we overpaid our EQP by $2.00, and he was happy to return the overage in a donation envelope.
Dana Repouille, Plattsmouth, Nebraska
jdlessley
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Re: Expenses

#20

Post by jdlessley »

Rather than use a donor name of Anonymous use the ward name since the original funds came from the ward.
JD Lessley
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