Handling Expenses¶

This page provides detailed procedures for handling ward expense reimbursements through the LCR Expenses system, including best practices to prevent common audit exceptions.

Overview¶

Ward financial clerks are responsible for processing expense reimbursements for approved ward expenses. While the LCR Expenses system provides workflow automation, clerks must manually verify compliance with Church financial policies because the system has known limitations.

The LCR Expenses System: Critical Flaws¶

Expense Approval Requirements¶

Every expense reimbursement MUST meet all these criteria:

Step-by-Step Processing Procedure¶

Step 1: Receive Expense Request¶

When an expense request comes in through LCR:

1. Open the request in LCR Expenses module

2. Note the requester name and amount

3. Check submission date (should be timely, not months old)

Step 2: Verify Documentation¶

Before looking at approvals, verify the documentation:

Documentation Checklist:
☐ Receipt image attached
☐ Receipt is legible (can read all line items)
☐ Sales tax clearly shown
☐ Reimbursement form completed
☐ Purpose stated clearly
☐ Amount on receipt matches request amount

Step 3: Verify Approvals¶

Check that two proper approvals are present:

1. Count the approvals - Must be exactly two

2. Check the names - Both must be bishopric members

3. Verify payee exclusion - Payee's name cannot be an approver

Example approval check:

Step 4: Check for Duplicates¶

Before final processing, verify this isn't a duplicate:

1. Search recent reimbursements for same payee (last 2 months)

2. Compare amounts - Is there an identical or very similar amount?

3. Check dates - Does the receipt date match a previous reimbursement?

4. Review purpose - Is it possibly the same expense submitted twice?

Step 5: Process or Return¶

Once verification is complete:

If all requirements met:

1. Add comment in LCR: "Verified: documentation complete, two proper approvals, no duplicate"

2. Mark as "Approved for Payment"

3. Payment will be processed in next check run

If any issues found:

1. Set status to "Needs Information" or "Returned"

2. Add detailed comment explaining exactly what's needed

3. Notify payee (LCR should email automatically, but confirm)

4. Track for follow-up

Special Situations¶

Cash Advances and Gift Cards¶

Donations Incorrectly Submitted as Expenses¶

Sometimes members mistakenly submit donations through expenses:

Online Activity Registrations¶

When activity coordinators pay online with personal cards:

1. Receipt must show: Online confirmation, amount, activity name

2. Documentation: Screenshot of registration confirmation acceptable

3. Timing: Should be submitted soon after activity (not months later)

4. Budget check: Verify activity has budget available

Handling Donation Slips¶

Related to expense processing, proper donation handling:

Donation Requirements¶

Donation Discrepancy Procedure¶

If donation amount doesn't match what's written on the slip:

1. DO NOT deposit the donation

2. Give the donation to the bishop to hold securely

3. Contact the member to resolve the discrepancy

4. Once resolved, deposit and record correct amount

5. Document the resolution in clerk notes

Activity Donations (Camps, Trek, etc.)¶

Members often donate for camps, Trek, or activities:

Online Donations:

• System allocates to "General Offerings" by default

• Clerk must manually move to appropriate activity account in LCR

• Don't wait - reallocate immediately after reconciliation

Check Donations:

• Must have accompanying donation slip

• Member must sign slip

• Slip should designate "General Offerings" (to be reallocated)

• Memo line can note "For Girls Camp" for reference

• Clerk reallocates after recording

Monthly Best Practices¶

Weekly Review¶

Don't let expenses pile up. Review at least weekly:

• Process new submissions within 2-3 days

• Follow up on pending items

• Clear out old "Needs Information" requests

Monthly Bishop Review¶

During monthly financial review meeting:

• Show bishop summary of expense activity

• Flag any unusual patterns or concerns

• Verify all reimbursements were appropriate

• Discuss any policy questions

Audit Preparation¶

Keep yourself audit-ready:

• All receipts legible and complete

• All approvals proper (can be fixed retroactively if needed)

• No duplicates

• Purpose documented

• No old unsettled advances

Common Audit Exceptions and Prevention¶

Resources and Links¶

• Church Handbook - Chapter 34.7: Reimbursements

• LCR Expenses Module

• Financial Audits - Audit preparation guidance

• Budgets - Budget management procedures

Quick Reference Card¶

Print this for your desk:

EXPENSE APPROVAL CHECKLIST
--------------------------
☐ Legible receipt with line items and tax
☐ Reimbursement form completed
☐ TWO proper approvals
☐ Payee is NOT an approver
☐ No duplicate in last 2 months
☐ Amount matches receipt
☐ Purpose clear and appropriate
☐ Budget available

CASH ADVANCE RULES
------------------
☐ Two people receive
☐ Two people oversee spending
☐ All receipts documented
☐ Remaining funds returned
☐ Settled within 30 days

DONATION RULES
--------------
☐ Every donation needs slip
☐ Member must sign slip
☐ If amount ≠ slip, HOLD and call member
☐ Online donations → move to activity account
☐ Check donations → get slip first

Questions? Contact your stake financial clerk or refer to Church Handbook Chapter 34.