Excess Budget funds stake sweep

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cjbeckert
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Excess Budget funds stake sweep

#1

Post by cjbeckert »

How are other stake finance clerks interpreting the CHQ letters addressing excess budget funds dated 7 Dec 2022 and 15 Jan 2023? We thought we understood the intent of the first letter and took actions accordingly. But the wording of the 2nd letter has me wondering if we misunderstood the first letter.

Based on the 7 Dec letter, our understanding was:
1) Wards complete their 2023 budget. Excess budget funds would appear as Available to Assign on the Budget > Assign Budget tab in LCR-F. If that amount was less than 50% of the ward’s 2022 Budget Allowance and there was a future need for it, the ward may retain. (Though if there's a future need for it, shouldn't it already be parked in a budget category?). If not, then transfer the funds to the stake. Any amount Available to Assign (excess) over 50% would be transferred to the stake regardless of future need.
2) Stake receives any excess ward budget funds to use, redistribute, or forward to CHQ as appropriate. The stake follows the same process as the ward in completing the stake budget and any Available to Assign (excess) funds retained for future needs must be less than 50% of the stake’s 2022 Budget Allowance (parent unit’s share). Otherwise, transfer to CHQ.

The wording of the 15 Jan 2023 letter has me rethinking that understanding, specifically the letter’s 2nd paragraph, and more specifically the last sentence of the 2nd paragraph. It sounds like the upcoming stake sweep is based on the stake’s 31 Dec balance (consolidated, not parent unit as viewed in LCR-F > Overview > Income and Expense Summary) and should not exceed 50% of the total 2022 budget allocation given to the stake. If this is the case, using the 31 Dec end balance to calculate the 50% excess amount instead of the budget’s Available to Assign amount will result in funds being swept that have already been earmarked in the 2023 budget.

Is this how you read the stake sweep will occur? For excess are we (stake) looking at 2022 Budget category's End Balance or funds still Available to Assign in the Budget tab? And which stake Budget balance will be adjusted: stake (parent unit) or stake (consolidated)?
eblood66
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Re: Excess Budget funds stake sweep

#2

Post by eblood66 »

I'm believe the new letter is talking about the End Balance for the year.

My interpretation of the original letter is that we should figure out our budget needs for 2023 and return everything above what we have specific plans for. But regardless of our 2023 budget and future plans, we should not have a carry over from year-to-year that is more than 50% of the annual budget allocation. That max 50% does not depend on what we have entered into the 2023 budget but just on how much we received for 2022.

The new letter is now saying that if a stake still has more than that 50% it will be automatically transferred to CHQ.

But I don't know for certain.
thawkins3
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Re: Excess Budget funds stake sweep

#3

Post by thawkins3 »

I would think there could be exceptions, especially in a stake’s case. I plan to call Tuesday and ask. For example, historically our stake tries to take the Youth to Palmyra for youth conference, once every four years. That requires saving $5,000 to $7,000 a year I would think there would be an exception available, if carry over funds triggered 50% of the budget.

Also, a Stake may have an account for coordinating council funds that they have been assigned to hold and then pay, such as public affairs. Any ideas about exceptions, and how the exception is requested?
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cjbeckert
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Re: Excess Budget funds stake sweep

#4

Post by cjbeckert »

thawkins3 wrote: Sun Jan 15, 2023 2:16 pm For example, historically our stake tries to take the Youth to Palmyra for youth conference, once every four years. That requires saving $5,000 to $7,000 a year I would think there would be an exception available, if carry over funds triggered 50% of the budget.
We do the same rotating between Palmyra, Kirtland, and Nauvoo every other year. In off years we budget half just to hold it for next year then budget full amount on travel years. If they're sweeping year-end account balances without regard to the new year budget earmarks, then a portion of the funds will disappear.
thawkins3 wrote: Sun Jan 15, 2023 2:16 pm Any ideas about exceptions, and how the exception is requested?
Not a clue. The letter doesn't give any provision for exceptions. As usual, it seems we're left with insufficient details to act on so we'll figure it out as we go, by trial and error.
Last edited by cjbeckert on Sun Jan 15, 2023 3:18 pm, edited 1 time in total.
BlairEsplin
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Re: Excess Budget funds stake sweep

#5

Post by BlairEsplin »

I interpret the letter to mean that any amount left at the end of 2022 that exceeds 50% of the 2022 budget allowance will automatically be taken by church headquarters.

This is a big problem for our stake. Our stake has a trek every four years and a youth conference every four years between the trek years. Stake girl’s camp is every other year on non trek non youth conference years. We have to save money every year to carry over until it is needed.

Our annual budget allowance is around $18,000. Our trek budget is $24,000. If we are not allowed to carry over all of our surplus funds in surplus years we will not be able to cover our expenses in trek years. If we are not allowed to keep our surplus funds we will basically not be able to have any more treks.
russellhltn
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Re: Excess Budget funds stake sweep

#6

Post by russellhltn »

Reading General Handbook 34.6.2.3, it indicates that you can carry over funds for activities "that are planned for the next year". (Emphasis added) It doesn't seem to provide an exception for activities done only every 4 years.

I suspect the best route is for the stake president to bring this up with his coordinating council. Presumably neighboring stakes are in the same situation and would support a united effort to kick it up higher. He can try contacting support, but I'm skeptical if they can do much more than explain the process.
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BlairEsplin
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Re: Excess Budget funds stake sweep

#7

Post by BlairEsplin »

russellhltn wrote: Sun Jan 15, 2023 3:23 pm Reading General Handbook 34.6.2.3, it indicates that you can carry over funds for activities "that are planned for the next year". (Emphasis added) It doesn't seem to provide an exception for activities done only every 4 years.

I suspect the best route is for the stake president to bring this up with his coordinating council. Presumably neighboring stakes are in the same situation and would support a united effort to kick it up higher. He can try contacting support, but I'm skeptical if they can do much more than explain the process.
I had an “emergency” meeting in the hall this morning with my stake President regarding this letter. His plan it to bring it up in the coordinating council meeting.

I hope there is swift broad reaction to the letter which will bring about a revision of the policy.
thawkins3
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Re: Excess Budget funds stake sweep

#8

Post by thawkins3 »

I would be surprised if an administrative policy trumped a trek, which is spiritual. I suspect the second letter was in response to many units not forwarding excess funds up the line. Many had the opportunity, and now the school master takes over.
russellhltn
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Re: Excess Budget funds stake sweep

#9

Post by russellhltn »

thawkins3 wrote: Sun Jan 15, 2023 9:23 pm I would be surprised if an administrative policy trumped a trek, which is spiritual.
I see this as "policy verses tradition". I know the church news always plays them up, but there's nothing in the Handbook about holding a trek.

I think there's a fair chance what will come back down is "reduce and simplify". Perhaps a shorter time period, or a closer but less historical route. It wouldn't be the first time that beloved grand traditions have been done away with.

Do bring it up with the coordinating council, but be prepared if the answer that comes back isn't the one you wanted to hear.
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BlairEsplin
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Re: Excess Budget funds stake sweep

#10

Post by BlairEsplin »

thawkins3 wrote: Sun Jan 15, 2023 9:23 pm I would be surprised if an administrative policy trumped a trek, which is spiritual. I suspect the second letter was in response to many units not forwarding excess funds up the line. Many had the opportunity, and now the school master takes over.
The point is that if the funds are being saved for a future event they are not surplus. However, according to the letter the funds exceeding 50% of the budget allowance will be taken without regard for what they are being saved for.
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