Step by Step

The Financial Statement for Wards and Stakes

Policy and Principles

The Unit Financial Statement should be reviewed monthly by each bishop and stake president and by a clerk. It is available in LCR a few days after the end of each month. This statement displays a unit’s financial activities including donations, balances, and fast offerings. Action items listed on the statement are suggestions and reminders to the unit to help manage any outstanding financial items. These items can suggest how to bring unit records into agreement with financial records at Church headquarters.

LCR Procedures

Once the Unit Financial Statement is created, leaders will see a reminder tile on their LCR Finance Overview page. This tile will remain on the Overview screen until all of the unit’s financial statements and corresponding tabs have been verified as reviewed.

Leaders can view a list of ward or stake financial statements, review the information, and mark as completed by following these steps:

In LCR, navigate to Reports.
Click Financial Statements.
The status of each Financial Statement will be displayed:
- Review Statement—Statement has not been reviewed.
- Secondary Review Required—Statement needs a second reviewer.
- Reviewer name and date reviewed will be displayed if all tabs have been reviewed for this statement.
Click one of the listed Unit Financial Statements.
- The Donation Summary tab is the default tab view.
- The Balances or Fast Offerings Analysis tabs may also be selected after landing on the Donation Summary tab page.
Click a category, reference number, or recipient to view more details. A stake needs to first expand the category and then click on a specific unit.
Review each category, reference number, or recipient for accuracy.
- Click a category, reference number, or recipient to view more details. A stake needs to first expand the category and then click on a specific unit.
Click the link to view a graph showing 13-month averages.
Review each action item and follow the instructions.
Review comments made by other leaders who have reviewed this report. Add additional comments as necessary.
Click the checkbox on each tab to agree that the donations in the report appear consistent and reasonable, the balances and expenses appear accurate, and the fast-offering expenses and recipients appear appropriate.
Click Continue on each of the first two tabs reviewed, and click Submit on the final tab reviewed to complete the process.

Once the Submit button has been selected, the user’s name and date submitted will appear on the Financial Statements screen.

After all tabs on all financial statements have been completed and submitted, the reminder tile on the Finance Dashboard will no longer appear.

Overall Structure

The Unit Financial Statement consists of three sections: Donation Summary, Balances, and Fast-Offering Analysis. Each section has different elements: Information, Action Items, Comments, and a sign-off checkbox.

Sections

Donation Summary

Information

Donation Summary shows money donated to the different categories during the month. Each category lists donations made online and in person. The total for each category is listed along with the total for all categories (Tithing, Fast Offerings, General Missionary Fund, Ward Missionary Fund, Humanitarian Aid, General Offerings, Budget, and Local). A stake will be able to view all its units.

Action Items

Action items on the Donation Summary tab emphasize possible concerns a leader may need to address: 1) Missing Deposit Reports, 2) Missing Bank Deposits, and 3) Missing Weekly Financial Reports. A stake will be able to view all the action items of its units.

Comments

Use the comments section to add comments and view comments from other leaders about information on this tab.

Balances

Information

The Balances tab lists the budget categories (Ward Missionary Fund, Budget, and Local). The beginning balances, financial activity, and ending balances are displayed. The Ward Missionary Fund and Local categories can be expanded to show subcategories. A stake will be able to view the Ward Missionary Fund, Budget, and Local categories for each of its units.

Action Items

Action items on the Balances tab emphasize possible concerns a leader may need to address: 1) Outstanding Expenses, 2) Unreported Expenses, 3) Ward Missionary Overdrawn, 4) Budget Overdrawn, and 5) Local Overdrawn. A stake will be able to view all action items of its units.

Comments

Use the comments section to add comments and view comments from other leaders about information on this tab.

Fast-Offering Analysis

Information

Fast-Offering Analysis shows fast-offering assistance (Monetary and Bishops’ Orders) provided during the month and a list of assistance recipients have received over the last 12 months. (By default, the “Include ‘Out of Unit’ Participants” box is enabled; a leader may choose to deselect the box to view only current ward members.) The stake can view each of its unit’s fast-offering assistance.

Action Items

Action items on the Fast-Offering Analysis tab emphasize possible concerns a leader may need to address: 1) Recipients without Membership Number, 2) Payee and Recipient Are the Same, 3) Outstanding Expense (fast offerings only), and 4) Payee or Recipient Is Also the Unit Leader (stake view only). A stake will be able to view all action items of its units.

Comments

Use the comments section to add comments and view comments from other leaders about information on this report.

Sacred Funds, Sacred Responsibilities

Priesthood leaders have a responsibility to shepherd both members and the sacred funds of the Church.

Watch this video to learn more.

Frequently Asked Questions

Does this apply to branches and districts?

What if I don’t have a clerk? Can a counselor be used as the second approver?

I cannot see the fast-offering expenses of a former ward member. I know that I authorized some expenses for that member. Why can I not see the expenses?

I have a ward member who has received fast-offering assistance in the last year but was in a different unit when they received the assistance. Why can I not see the expense on my report?

Recipients and the amount of assistance will only be displayed in the “Fast-Offering Assistance by Recipient over Last 12 Months” section if they have received assistance in your unit in the last 12 months. If the assistance was received in the last 12 months but in another unit, the expense will not be displayed here. It can be found on the Participants menu in LCR Finance. However, if the recipient receives assistance in your unit, the expense will appear on the financial statement, along with any other assistance received in ANY unit if the assistance was within the last 12 months.

When reviewing the financial statement information and action items as a bishop, what are some examples of items to focus on?

What are some warning signs for a bishop to be aware of when reviewing the financial statement?

Budget and Local Category warning signs:

1. The bishop did not approve each expense before it was paid.

2. The bishop or clerk is not familiar with or does not know the purpose of each expense.

3. The bishop or clerk does not feel confident that the expense was properly approved.

4. The bishop or clerk does not feel confident that the expense has proper support documentation.

5. The bishop or clerk does not recognize the payee.

6. The purpose or the account code does not make sense.

7. Payments are being made to the bishop, other leaders, or their family members.

Fast Offerings warning signs:

1. The bishop did not approve each expense before it was paid.

2. The bishop or clerk is not familiar with or does not know the purpose of each expense.

3. The bishop or clerk does not feel confident that the expense was properly approved.

4. The bishop or clerk does not feel confident that the expense has proper support documentation.

5. The bishop or clerk does not recognize the recipient.

6. The bishop or clerk does not recognize the payee.

7. The purpose or the account code does not make sense.

8. Payments are being made to the bishop, other leaders, or their family members.

9. A fast-offering payment for the benefit of the bishop or an immediate family member does not have written authorization from the stake president.

10. Total payment amounts for a member’s medical expenses exceed the amount bishops have the authority to approve, and the required written approvals have not been obtained.

When reviewing the financial statement information and action items as a stake president, what are some examples of items to focus on and what are possible solutions?

1. Fast-offering payments and whom they were for. The stake president should help train and support the bishop in following proper welfare principles.

2. Fast-offering payments made payable to recipients or others rather than to providers of goods and services.

3. Fast-offering payments to the bishop or his immediate family without the stake president’s written approval.

4. The temporal circumstances of all those who handle the funds of the Church.

5. High increases in fast-offering expenses.

6. Checks written to the bishop, his wife, or family members.

7. A high number of audit exceptions or repeat audit exceptions.

What are defalcations and how can they be prevented?

Improper uses of Church funds (defalcations) have tragic consequences for those involved. Defalcation is defined as embezzlement or misappropriation of Church funds by a priesthood holder when he:

Is in a position of authority or fiduciary responsibility.

Intentionally does so.

Benefits personally (or members of his family benefit).

Defalcations can often be prevented if bishops, stake presidents, and their clerks review the Unit Financial Statements each month and stake presidents meet with each bishop to review his ward’s financial data each month.

Last Updated On 4 Apr 2024