An advance of funds is handled similar to reibursements. Recording an advance in MLS is exactly the same as a reimbursement. However, an advance disbursement does not have a receipt, invoice, or bill at the time the reguest is processed. The form your stake uses for an advance disbursement request must identify the disbursement as an advance. It may be the same form used for reimbursements or it may be a separate form. Information on the form should include all the details of the disbursement as possible such as the purpose or activity for which the expense will be made, the retailer, vendor, or supplier to which the funds will be paid, the services or goods to be purchased, the amount disbursed, the name of the person or business receiving the funds, and the date the funds are disbursed. Of course the form must also include the approving signature of the stake president.
In some cases the advance disbursement amount is known and can be paid directly to the retailer, vendor, or supplier if they are willing to accept a check. If they will accept a check, then write the check out to the retailer, vendor, or supplier.
Sometimes the actual expense amount may not be the same as the amount disbursed. Any excess disbursement should be returned as soon as possible after the payment for the goods or services are paid and a receipt obtained. These excess funds are returned using a Tithes and Other Offerings slip and/or a form for this purpose. Identify the budget category the funds were originally drawn against and to which the excess will be deposited on the Tithes and Other Offerings slip and/or the form. The receipt and all other paper work such as the Tithes and Other Offerings slip and/or return of excess disbursement form are attached to the original disbursement paperwork.
If the expense exceeds the advance then a reimbursement request is processed. Because there will be only one receipt for both the advance and the reimbursement I recommend filing the paperwork for the advance and the reimbursement togther. The returned excess funds are processed as a donation to return the funds to the budget category the advace was drawn against. Do not use the member's name as the donor. Instead use the name of the retailer, vendor, or supplier as the donor name.
If the expense amount is the same as the advance then all that needs to be done for audit purposes is to attach the receipt to the original advance paperwork.
The timeline between incurring expenses for a stake activity and the end of the activity could in some cases be lengthy. When advances are made for expenses, the receipt should be turned in, and appropriate paperwork completed, as soon as the receipt is received and not wait until the activity is over. Waiting for the activity to be over before turning in advance disbursement receipts could result in an advance without a receipt for an audit.
JD Lessley
Have you tried finding your answer on the ChurchofJesusChrist.org Help Center or Tech Wiki? 