Weird Stake Disbursements

I am in the USA. I have been a clerk in one other stake (on the ward level) and have never seen what is happening in my current stake. I admit I am a little concerned and want to know if others have seen similar setups.

My current stake tends to mess with the budget allocation percentages every quarter to try to give more money at the beginning of the year and less at the end but they often forget to change things and then manually move money to and from the various wards for underpayments and overpayments. This was annoying and made financial planning heck but it was just something we tolerated. For next year they have announced an exact budget amount for each ward which they are giving at the beginning of next year (reduced if you have overage from this year) and not through the allocation system (which is set to 0% in all categories).

I am concerned that this might violate some kind of audit process as the money is not being tracked normally. Maybe I am way off. Is this kind of approach something other clerks here have seen in the past? I don’t suspect any malfeasance or anything I am just worried this approach could cause problems later on. Am I way off base?

jonmmurdock wrote:For next year they have announced an exact budget amount for each ward which they are giving at the beginning of next year (reduced if you have overage from this year) and not through the allocation system (which is set to 0% in all categories).

The budget allowance belongs to the stake. They are charged with distributing it to the wards and branches in whatever method they choose. The percentage system that automatically makes the distribution is the easiest way to do that. It seems to me that what is being proposed (and what has happened in the past) is a form of obsessive compulsive disorder. But that's my personal opinion.

The only problem I see is how the stake is going to give you a year's worth of budget allowance in January when they don't have it. The budget allocation comes quarterly. The only way they can give you a year's budget allowance now is if they have a huge surplus from years past. Normally, unneeded budget allowance is returned to the Church when the amount becomes significant.

Is it possible that the stake is setting a budget up front that they do not plan to change, but will be distributing the allowance quarterly? That seems more likely to me.

As for their distribution method, the funds are still tracked and audited as the stake receives the allowance and distributes it to the units, so there should not be any audit problems in that regard. It just seems to me that they are doing things in a really hard way when the church has a process in place to do it so simply. I hope at least that the stake is transferring the budget allowance to you and not writing checks to transfer the funds.

And I am glad I am not the stake financial clerk.

lajackson wrote:And I am glad I am not the stake financial clerk.

No kidding. Having the stake give the wards a fixed value up front means the stake budget will have to absorb any difference between planned and actual disbursements sent from church headquarters. Given that the disbursements in the second half of the year will be based on reports that haven't been submitted yet, that would require a certain amount of gazing at a crystal ball in normal times.

But this is far from normal times. Add in the effects on the local membership, with a wildcard of predicting how CHQ is going to handle the attendance reports, and that's more faith then I'd want to attempt.

I have been a Ward Financial Clerk, Stake Financial Clerk and now the Stake Clerk (total time about 18 years). I have tracked my Stake expenses for the past 5 years to see how much funds the stake requires and working with the Stake President over finances have set up a stake budget with a little fluff factor for the unknowns and then set up the percentages for the Wards. We have treated all the Wards equally on how much the stake will retain. Also, when given your quarterly allotment you will need to estimate your yearly expenses. The Wards need to do the same. It is hard for an organization to work on quarterly amounts but that is why they need to provide an organization budget for review and approval. Yes, we have wards/organizations that have a hard time in planning and budget but it is a necessary step and YES the budget is based on attendance submitted by the Wards. It will be interesting to see how CHQ will adjust the numbers.

I guess the bottom line is knowing what the history of expenses needed at the stake level to help drive ward budgets. This is my opinion. It has successfully worked for our Stake. The other part of the equation is training and support for your financial clerks and Bishoprics and associated organizations.

Thank you for taking your calling seriously.