The purpose of the fast offering donated by members is to sustain life, not lifestyle. It is to meet immediate needs and to help a person become self reliant in the longer term.
I feel that the individual may be slightly disingenuous in his account, in as much as we are only getting his perception of his interaction with his bishop.
If it was a "comprehensive financial review" then it is possible that the bishop in this instance felt that there were other options available to the member, as has been stated: family, possible change in outgoings etc. none of this was shared in the story.
Yes, each bishop has their own style or way of bishop-ing, but the vast majority are doing their best in a voluntary role.
Note: I may have a slightly biased perspective, having served as a bishop.