Use of Fast Offering funds to finance community food pantry

While performing a first time review of the new electronic Unit Financial Statement (THANK YOU, THANK YOU, I've eagerly anticipated this all year!!), an Action Item in the Fast Offering Analysis tab pointed me to an issue of MRN missing for FO recipient. Looking further I found the ward had reimbursed a member for multiple donations made to the local community food pantry and listed the pantry as the FO recipient.

When getting background info about the transactions, the bishop responded that a ward member volunteering there had brought to his attention the dire need the pantry was in. The bishop directed the member to monitor the needs weekly and make donations to help fill the needs. He then directed 3 ward members with "immediate needs" to use the local pantry instead of waiting for the bishop storehouse (BSH) delivery truck which comes about every other week (BSH is about 1.5 hour drive away). The bishop also said the ward made donations from their annual BSH allotment as well.

As a finance clerk there are a number of things that seem irregular with these transactions, primarily the loss of accountability as to who was assisted and how the funds were used. In a sense it kept assistance received "off the books" for the member(s) receiving assistance. Its always been my understanding that FO funds are used to benefit a specific individual not a charitable organization. Also, I'll concede BSH allotments amounts are not on my finance clerk radar, at least not at the stake level though I am able to see unit orders completed and their cost. (I was not aware there were allotments for the BSH or how those funds could be diverted elsewhere.)

Am I missing some guidance somewhere allowing FO funds to be used to finance community welfare organizations? Usually when there is an "immediate need" that can't wait for a BSH order to be filled a ward leader would grocery shop with/for the member to fill the immediate need and then the leader would be reimbursed with the member listed as the FO recipient. Is there a process allowing funds that would normally go to the BSH to be diverted to a local pantry instead when a member is directed to use the pantry instead?

cjbeckert wrote:I found the ward had reimbursed a member for multiple donations made to the local community food pantry and listed the pantry as the FO recipient.

This question would best be answered by the chairman of the stake audit committee (a counselor in the stake presidency), the chairman of the stake bishops welfare council, and the stake president. The bishop might wish to counsel with them to determine the best way to follow established welfare processes and Fast Offering accounting procedures in this situation.

I agree this appears to be inappropriate. As an auditor in the past, I would have written this up as an exception that would need to be resolved. Members that are helped with FO funds should also be on a Self-Reliance Plan. If the Audit Committee is not sure how to answer this question, then they could go to the Area Auditor for guidance.

There are separate funds for charitable organizations that should have been applied to the food pantry, through LDS Charities and the Area Humanitarian Grant. Earlier in the year there would have also been a stake bishop's storehouse grant that stake's could apply for. In the notes, the Bishop could note that members are using this pantry as a reason for wanting to apply for the Humanitarian grant of Bishop's storehouse supplies, but should not have used the fast offering funds for this. The Regional Welfare and Self-Reliance manager would be familiar with this process, as would the local Bishop's storehouse.

Our Elders Quorum President regularly (1x or 2x per year) coordinates through the stake with out Bishop's Storehouse to deliver food to our local food pantry. The last time, they sent a large box truck and dropped half at our local community food bank and the other half at another community food bank about an hour away. We arranged volunteers to unload the truck and help put the items away for the food pantry. If there are other needs in the interim, members of the three wards in our community participate in community food drives to help with the need.