reimbursement for Building and Grounds damage

[whfpc]

Version 12
We had some damage to our over hang and will need to have it fixed. The person responsible is paying for these repairs and I need to know how to record this? I would normally pay the repair from B&G misc but I do not have an income for that account, it is a budget account we use for any misc payments that do not fall under the other 8-10 accounts we have for B&G. Since I received the payment before the work is done I shouldn't apply it to other income (or should I) and even if I do I don't have an expense for the other income?

Robin

[NeilZ]

Version 12
We had some damage to our over hang and will need to have it fixed. The person responsible is paying for these repairs and I need to know how to record this? I would normally pay the repair from B&G misc but I do not have an income for that account, it is a budget account we use for any misc payments that do not fall under the other 8-10 accounts we have for B&G. Since I received the payment before the work is done I shouldn't apply it to other income (or should I) and even if I do I don't have an expense for the other income?

Robin

Apply it as Miscellaneous Income to Operations, and expense it as normal. Just enter an explanation in the notes area of the transactions.

This is income, and it will be used to pay an expense.

[whfpc]

If I expense it as normal it will put us over budget in B&G. I am assuming m explanation will answer for me? I guess I am getting caught up in not going over budget??

Robin

[NeilZ]

If I expense it as normal it will put us over budget in B&G. I am assuming m explanation will answer for me? I guess I am getting caught up in not going over budget??

Robin

I'm just surprised that you don't have an account under B&G for Maintenance and Repairs over 1,000. We have such an account, and normally we 'fund' it in the budget for around 2,500, because most of the maintenance is usually under 1,000 its hardly ever used, but this covers any unexpected issues.

If something happens that is unusual, normally the church board knows about it, and has to approve spending over $500 anyway, so they know that it was an extraordinary expense.

I'm guessing that the same is also true in your congregation, so the explanation in the transaction will act as part of the audit trail, and documentation of the expense. I'd include that the church was reimbursed for the repairs, and the income is being shown under miscellaneous (or whatever you use) income.