Fundraiser

Sorry but this will be a long explanation. Our YW did a fundraiser for camp. They had a farmer that sold them oranges. In turn, they sold those oranges to family, friends, ward members, etc. Donation slips were filled out for each donation. However, before they brought all the money into the Bishopric, they used some of it to pay for the original product. The amounts total. The question is, how do we put the donations into the system when the actual money won't match the donations? Since they used some of it to purchase the product.

It was explained to them at the start to get the total from the farmer and then we would cut him a check directly. Either they didn't understand or forgot. The difference would be about $800 between what was collected (entered on the donation slips) and what was given to the Bishop. We have receipts from the farmer to show the amount they paid and it matches. Just not sure how to correctly account for all of this. Anyone have any ideas?

My. You've got quite the mess there. I'm not sure you can record this without some discrepancy. Here are the options I can think of:

Option 1: This is the only semi-clean option I can think of. You cut a check to the farmer and then ask the farmer to accept the check and return the cash (or provide his own check) in return. This way you can deposit the amount listed on the donation slips and have an expense going to the correct party. But I imagine no one wants to go to the farmer and ask that.

Option 2: Cut a check to a member (preferably whoever actually paid the farmer) as a reimbursement using the farmers receipt as documentation and a note describing the situation. Then have the member cash the check and return the cash which can then be deposited with the rest. The problem here is that you're reimbursing a member for an expense they didn't actually pay for. But the deposit and expense amounts come out right and it's documented. This could be improved if the member was willing to contribute the cash before receiving the check. That would turn the reimbursement into a real reimbursement.

Option 3: Deposit the funds you have but adjust the amounts entered from the slips downward to compensate for the missing funds. Of course, this will definitely be one or more audit exceptions if the batch is audited.

Whichever way you go I'd discuss it with the stake audit committee and get the approval of the Stake President before proceeding.

Note that the problem would probably have been avoided if the money had been gathered by a member of the bishopric directly and deposited immediately as is the policy. I know that people often think this doesn't apply to fundraisers because it can be inconvenient. But there are good reasons for it as this situation illustrates.