Missing Batch

What is the correct resolution for an audit exception involving a completely missing donation batch? No donation slips, no copies of the bank deposit slips, nothing but a re-printed copy of the Batch Donation reports? The unit financial statement shows the batch was received by the bank, but the ward can't locate the documents.

allenjpl wrote:What is the correct resolution for an audit exception involving a completely missing donation batch?

Assuming the reprinted Batch Donation report matches the bank statement, this means the batch is in MLS and also made it to the bank.

Under the direction of the stake audit committee chairman, I would ask for another thorough search of the clerks office, particularly in the bottom of the file cabinet or behind it where the paperwork is normally stored.

I would interview the two who prepared the deposit and ask them to recall where the paperwork may have been placed. If they were two who normally handled finances, this would be most unusual. If they were two who did not normally handle finances, they may have misplaced the paperwork or put it in the clerks box or somewhere it was not normally placed.

I would perhaps do the following, but only if I sensed any irregularity. I would use the donation report to verify with a few members that the amount they contributed matches the report, and that their checks have cleared their bank accounts. I would verify the amount of any cash contributions with the members to verify that it was recorded correctly.

If there were any discrepancy at all in any of this, I would ask the bishop to request that any member who contributed bring in their copy of the donation slip, which could be checked off on the donation report. And if anyone brought in a yellow slip that did not show on a batch report, I would run the red flag up through the audit committee chairman and stake president to the Finance Department for further instructions.

Best case, they lost the paperwork, everything is okay and no one will be missing credit for any donations when they come to tithing settlement. Worst case, irregularity and cash is missing.

As for officially closing out the audit item, your only recourse is a report on what you have done, or a really big note from those involved, much as you might do for that missing Fast Offering rent payment receipt.

It would have to be a really good note in this case. I would hate to be the bishop having to write it, but we would still love him.

Could it be in the other drawer in the file cabinet, the one with the stamp and deposit slips?

This is probably the best excuse I have ever seen to clean out the clerk's office. [grin]

lajackson wrote:I would ask for another thorough search of the clerks office, particularly in the bottom of the file cabinet

I'd remove all the drawers and look in the area where it would be if it went "over the side" of the drawer.

lajackson wrote:

allenjpl wrote:What is the correct resolution for an audit exception involving a completely missing donation batch?

Assuming the reprinted Batch Donation report matches the bank statement, this means the batch is in MLS and also made it to the bank.

As long as they match everything is good.

lajackson wrote:Under the direction of the stake audit committee chairman, I would ask for another thorough search of the clerks office, particularly in the bottom of the file cabinet or behind it where the paperwork is normally stored.

I would interview the two who prepared the deposit and ask them to recall where the paperwork may have been placed. If they were two who normally handled finances, this would be most unusual. If they were two who did not normally handle finances, they may have misplaced the paperwork or put it in the clerks box or somewhere it was not normally placed.

A thorough search of the clerks office would be in order if nothing turned up and the Batch report matched the Monthly statement I see no need to go any further. I would place a note with a new printed batch report stating what happened and signed by the two who worked the batch and the bishop and call it good.

lajackson wrote:I would perhaps do the following, but only if I sensed any irregularity. I would use the donation report to verify with a few members that the amount they contributed matches the report, and that their checks have cleared their bank accounts. I would verify the amount of any cash contributions with the members to verify that it was recorded correctly.

If the statement and the batch report total matches then all checks cleared and all cash balance. Having someone who is on the batch report to verify amounts accomplishes nothing.

lajackson wrote:If there were any discrepancy at all in any of this, I would ask the bishop to request that any member who contributed bring in their copy of the donation slip, which could be checked off on the donation report. And if anyone brought in a yellow slip that did not show on a batch report, I would run the red flag up through the audit committee chairman and stake president to the Finance Department for further instructions.

There is no way to know if the slip brought in should have been in this batch and many members don't even keep there slip. This also accomplishes nothing.

lajackson wrote:Best case, they lost the paperwork, everything is okay and no one will be missing credit for any donations when they come to tithing settlement. Worst case, irregularity and cash is missing.

Tithing settlement would be the only place where one would catch any irregularities such as missing cash, and even then you would not know what batch report it was to be in although you could get close if the member had a slip. However, just because there is a slip does not mean that the Bishop even received an envelope. Although it could be sign that maybe there is some problems especially if there were several cash donations missing though out the year.
The paper work missing is not enough to cause to much alarm as long as the computer generated batch report and the statement match.

lajackson wrote:As for officially closing out the audit item, your only recourse is a report on what you have done, or a really big note from those involved, much as you might do for that missing Fast Offering rent payment receipt.

It would have to be a really good note in this case. I would hate to be the bishop having to write it, but we would still love him.

Just a note stating that a search was accomplished and the paper work did not turn up and what procedure have been but in place to ensure this does not happen again, should be enough. It does not have to be a really big note but should be signed by the persons who processed the Batch, everyone who helped search and the Bishop. Sometimes things happen and all you can do is you best on fixing the problem and move on.

Gary_Miller wrote:

lajackson wrote:I would verify the amount of any cash contributions with the members to verify that it was recorded correctly.

If the statement and the batch report total matches then all checks cleared and all cash balance. Having someone who is on the batch report to verify amounts accomplishes nothing.

It will determine if any cash is missing and was not deposited. I would not wait until tithing settlement to check this.

lajackson wrote:It will determine if any cash is missing and was not deposited.

How would it determine if any cash is missing?

If the batch report matches the deposit report on the monthly financial statement then the two reports balance and there would be no way of knowing if cash is missing.

lajackson wrote:I would not wait until tithing settlement to check this.

If you don't want to wait until tithing settlement then the only other thing to do is pass out donation reports to all the members and ask them to report any problems. That is the only way you can find out if there are problems.

Gary_Miller wrote:

lajackson wrote:It will determine if any cash is missing and was not deposited.

How would it determine if any cash is missing?

You could print out YTD donation reports for the members who donated cash in the batch that is missing documentation and ask them to verify the donations. Or you could ask some of them.

Sister Jones, we are verifying our financial records. How much did you donate Sunday?
$200.
Thank you very much.

Sister Jones is listed on the batch report with a $20 donation. You have a problem.

OK, now I see where your coming from, I just did not look at it that way.

But if there were a real problem then Sister Jones who donated $200 in cash wouldn't even show up on the batch report and the total would match with the bank amount still.

Gary_Miller wrote:

lajackson wrote:I would not wait until tithing settlement to check this.

If you don't want to wait until tithing settlement then the only other thing to do is pass out donation reports to all the members and ask them to report any problems. That is the only way you can find out if there are problems.

Well tithing settlement usually starts mid November and you are supposed to pass out donation reports 30 days prior, so it sounds like you don't have to wait very long

JonesRK wrote:But if there were a real problem then Sister Jones who donated $200 in cash wouldn't even show up on the batch report and the total would match with the bank amount still.

Or her donation could be in a whole different batch.

That why I said the best way would be to send a donation report to all members.

lajackson wrote:

Gary_Miller wrote:

lajackson wrote:It will determine if any cash is missing and was not deposited.

How would it determine if any cash is missing?

You could print out YTD donation reports for the members who donated cash in the batch that is missing documentation and ask them to verify the donations. Or you could ask some of them.

Sister Jones, we are verifying our financial records. How much did you donate Sunday?
$200.
Thank you very much.

Sister Jones is listed on the batch report with a $20 donation. You have a problem.

This could potentially happen on every batch that is processed regardless of whether or not the paperwork was lost. It would just be quicker to find the discrepancy if you had the paperwork. I guess the fact that it is lost raises red flags.

If the counselor and the clerk review the slips after the donations are entered in MLS, this would never happen. I always read off what I entered in MLS and the counselor checks each donation slip to make sure it matches.

JonesRK wrote:Well tithing settlement usually starts mid November and you are supposed to pass out donation reports 30 days prior, so it sounds like you don't have to wait very long

True. And according to the Notice dated October 24, 2013, Tithing Settlement begins on or after November 15, 2013. Clerks are instructed to print and give to members the Tithing and Other Offerings Statements at least one week before tithing settlement begins.

Therefore, a week from today, any possible irregularities resulting from the Mystery of the Missing Batch have the potential to be completely resolved. [grin]

According to the online information you should begin passing out the initial donation reports a full month ahead of Nov 15. That means Oct 15 is when those are supposed to be started. It isn't just a week ahead but instead is supposed to be a full month ahead of when tithing declaration begins which is Nov 15.

jirp wrote:According to the online information you should begin passing out the initial donation reports a full month ahead of Nov 15.

Actually the online training states the process begins one month before tithing settlement. There is no requirement to begin on November 15th. Rather that date is the earliest tithing settlement may begin. But if the bishop does want to begin on November 15th then yes, a good date to distribute Tithing and Other Offerings Statements is October 15th. But if it begins on December 1st than a good date to begin distributing is November 1st.

The online training provides guidelines to help the bishop, his counselors, the executive secretary, and the clerks plan the process. The only requirements regarding dates is that tithing settlement should not begin before November 15th and that it be completed by December 31st.