“34. Finances and Audits,” Selections from the General Handbook (2023).

“34. Finances and Audits,” Selections from the General Handbook

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34.

Finances and Audits

34.0

Introduction

Tithes and offerings allow the Church to pursue the Lord’s work of salvation and exaltation (see 1.2). These funds are sacred. They represent the sacrifice and faith of members of the Church (see Mark 12:41–44).

34.2

Ward Financial Leadership

34.2.1

Bishopric

The bishop has the following responsibilities for ward finances. He delegates some of this work to his counselors and clerks.

The bishop:

Teaches and inspires members to pay a full tithe and give generous offerings (see 34.3).
Ensures that ward funds are properly handled and accounted for (see 34.5).
Reviews the financial statement each month and ensures that any issues are resolved promptly.
Ensures that organization leaders and clerks learn their responsibility for sacred Church funds.
Prepares and manages the annual ward budget (see 34.6).
Meets with ward members annually to receive their tithing declaration.

34.2.2

Ward Clerks

The bishop assigns the ward clerk or an assistant ward clerk to help with ward financial record keeping. Clerks carefully follow current policies to safeguard Church funds and ensure that Church records are accurate.

The clerk has the following responsibilities:

Record and deposit any funds received with a member of the bishopric.
Review the financial statement each month and ensure that any issues are resolved promptly.
Help the bishopric prepare the annual ward budget (see 34.6.1 and 34.6.2).
Ensure that members have access to their statements of contributions and assist as needed.

Clerks should hold the Melchizedek Priesthood and have a current temple recommend.

34.3

Contributions

34.3.1

Tithing

Tithing is the donation of one-tenth of one’s income to God’s Church (see Doctrine and Covenants 119:3–4; interest is understood to mean income). All members who have income should pay tithing.

34.3.1.2

Tithing Declaration

The bishop meets with each member during the last few months of each year to receive his or her tithing declaration.

All members are invited to meet with the bishop to:

Declare to the bishop their status as tithe payers.
Ensure their contribution records are accurate.

Whenever possible, all members of a family, including children, should attend together.

34.3.2

Fast Offerings

Church leaders encourage members to live the law of the fast. This includes giving a generous fast offering (see 22.2.2).

Guidelines for using fast-offering funds are provided in 22.5.2.

34.3.3

Missionary Funds

Contributions to the ward missionary fund are used primarily to meet the contribution commitments of full-time missionaries from the ward.

Contributions to the General Missionary Fund are used by the Church in its overall missionary efforts.

34.3.7

Contributions Cannot Be Refunded

When tithes and other offerings are given to the Church, they belong to the Lord. They are consecrated to Him.

Stake presidents and bishops inform those who contribute tithes and offerings that these contributions cannot be refunded.

34.4

Confidentiality of Tithing and Other Offerings

The amount of tithing and other offerings paid by a donor is confidential. Only the bishop and those who are authorized to handle or view these contributions should have access to this information.

34.5

Handling Church Funds

The stake president and bishop ensure that all Church funds are properly handled. Bishoprics and clerks are encouraged to review the video “Sacred Funds, Sacred Responsibilities” at least once a year.

34.5.1

Companionship Principle

The companionship principle requires two persons—a member of the bishopric and a clerk, or two members of the bishopric—to be actively involved when recording and disbursing Church funds.

Leaders should protect and never share their passwords (see 33.9.1.1).

34.5.2

Receiving Tithing and Other Offerings

The Lord has given bishops the sacred trust of receiving and accounting for the tithes and other offerings of the Saints (see Doctrine and Covenants 42:30–33; 119). Only the bishop and his counselors may receive tithes and other offerings. Under no circumstances should their wives, other members of their families, clerks, or other ward members receive these contributions.

34.5.3

Verifying and Recording Tithing and Other Offerings

Contributions should be verified and recorded on the Sunday they are received. A member of the bishopric and a clerk, or two members of the bishopric, open each envelope together. They verify that the funds enclosed are the same as the amount written on the Tithing and Other Offerings form. They record each donation properly. If the funds and the written amount differ, they contact the donor as soon as possible to resolve the discrepancy.

34.5.4

Depositing Tithing and Other Offerings

A deposit should be prepared after ensuring the amounts recorded match the funds received.

Where a 24-hour bank depository is available, the bishopric member and another Melchizedek Priesthood holder deposit the funds in the bank on the same day the funds are opened and verified.

Where a 24-hour bank depository is not available and the bank is closed on Sunday, the bishop designates a Melchizedek Priesthood holder to make the deposit the next business day. He should:

Ensure that the funds are kept secure until they are deposited.
Obtain a deposit receipt showing the date and the amount of the deposit.

34.5.5

Safeguarding Church Funds

Members who are responsible for Church funds must never leave them in the meetinghouse overnight or leave them unattended at any time, such as during meetings and activities.

34.5.7

Managing Stake and Ward Payments

No stake or ward expenses may be incurred or paid without the presiding officer’s authorization.

Two authorized leaders must approve each payment. One of them must be a member of the stake presidency or bishopric. Although counselors may be authorized to approve payments, the stake president or bishop must review each payment. Leaders should not approve a payment to themselves.

The stake president’s written approval is required before a bishop may use fast offerings or approve a bishop’s order for himself or his family. Written approval from a member of the Area Presidency is required before a bishop may use fast offerings or approve a bishop’s order for the stake president or his family. See 22.5.1.2 for guidelines.

A member requesting reimbursement provides a physical or electronic copy of any receipts or invoices. He or she also includes the purpose, amount, and date of the purchase.

If funds are advanced, the member submits a payment request form, noting the purpose, amount, and date. After the expense has been paid, the member then (1) provides receipts or invoices for the funds spent and (2) returns any unspent funds. Returned funds should be redeposited.

34.5.9

Keeping Financial Records

Each stake and ward should keep current, accurate financial records.

For information about the use and retention of records and reports, clerks should refer to instructions from Church headquarters or the area office. Financial records should be retained for at least three years plus the current year.

34.6

Budget and Expenditures

The budget allowance program provides general Church funds to pay for the activities and programs of stakes and wards.

Most activities should be simple and have little or no cost.

34.6.1

Stake and Ward Budgets

Every stake and ward prepares and operates an annual budget. The stake president manages the stake budget, and the bishop manages the ward budget.

Guidelines are listed below:

Review the amounts spent during the previous year to make sure that recurring expenses are considered.
Ask organizations to estimate their budget needs in detail.
Compile the budget using approved budgeting practices.

34.6.2

Budget Allowance

34.6.2.1

Allocation of Budget

Budget funds are allocated quarterly based on attendance in the following categories:

Sacrament meeting
Young men
Young women
Primary children ages 7–10
Young single adults

It is important to report attendance accurately and on time (see 33.5.1.1).

34.6.2.2

Appropriate Use of Budget

Stake presidents and bishops make sure budget allowance funds are spent wisely.

Stake and ward budget funds should be used to pay for all activities, programs, manuals, and supplies.

34.6.2.3

34.7.5

Loss, Theft, Embezzlement, or Misappropriation of Church Funds

The stake president or chairman of the stake audit committee should be notified promptly if:

Church funds have been lost or stolen.
A leader has embezzled or misappropriated Church funds.