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Administrative Procedures
Responsibilities of the Treasurer

INDEX
Chart of Accounts Journals & Ledgers Receivables Payables Reports Files

[Bullet] Chart of Accounts | Home | Top | Index |

    INCOME
     
    0000Membership fees
    0010Member service fees
    0019Member administrative fees
    0020Member reimbursable expenses (nontax)
    0021Member donations (CASH)
    0130Interest income
    0140Tax refunds
    0200Goods sold
    EXPENSE
     
    1000Membership fee reimbursements
    1010Member service fee reimbursements
    1020Member expense reimbursements (nontax)
    1110Internet service fees
    1120Office expenses
    1130Bank fees
    1131PO Box fees
    1132Legal fees
    1140Tax expenses
    1150Advertising / promotion
    1151Class expenses
    1200Goods bought for sale

[Bullet] Journals & Ledgers | Home | Top | Index |

    CASH JOURNAL

    [Treasurer: Please define]


    MEMBER EXPENSES JOURNAL

    [Treasurer: Please define]


    INVENTORY JOURNAL

    [Treasurer: Please define]


    ACTIVE LEDGER (CHECKING ACCOUNT)

    [Treasurer: Please define]


    ESCROW LEDGER (RESERVE ACCOUNT)

    [Treasurer: Please define]


    MEMBER LEDGERS

    [Treasurer: Please define]

[Bullet] Receivables | Home | Top | Index |

    SERVICE APPLICATIONS (New or updated service)
            and
    PAYMENTS ON ACCOUNT (Existing service)

    In general, payments from Members will be received by the System Administrator via the GIAC PO Box, then conveyed to the Treasurer after initial processing (see System Administrator procedures). Membership applications and service payments received from any other source should be forwarded to the System Administrator for initial processing.

    ----------------

    1. Receive deposit advice and Member journal from System Administrator via fax

    2. Update Member ledger

      • Credit payment as of journal (postmark) date
      • Allocate payment to categories

    3. Update GIAC ledger(s)

    4. Update payment summary (Treasurer's Status Report)

[Bullet] Payables | Home | Top | Index |

    INTERNET SERVICES (last day of month)

    Monthly payments to the Internet Service Provider will be requested by the System Administrator based on:

    • GIAC and Member account status at the end of each service month
    • Satisfactory service availability during the service month

    ----------------

    1. Receive check request from System Administrator via fax or e-mail

    2. Verify check request

      • Payable to:  Chesapeake
      • Date of check:  Last day of month
      • Payment applies to:  Following service month
      • Domain name service:  $10.00
      • Web hosting service:  $10.00 each 10mb webspace
      • Member service:  $10.00 each connection account
      • Member service:  $2.00 each secondary mailbox started after July 1st of each year.

    3. Notify System Administrator about discrepancies via fax or e-mail

    4. Prepare check

    5. Remit to System Administrator:

      • Notify System Administrator about check availability via phone, fax or e-mail
      • Convey check to System Administrator via hand pickup

    6. Update GIAC ledger(s)

     
    Explanation of Payment Processing
    Escrow Ledger
    The escrow ledger is used to keep in reserve, as required by GIAC Bylaws, Membership fees and advance service payments for possible reimbursement to resigning Member(s). The full amount of any Member payment containing a portion to be held in reserve should be credited initially to the escrow ledger; any portion of the payment not to be held in reserve should then be transferred to the active ledger. (Example: Combined payment for basic service and invoiced pool webspace.)

    Active Ledger
    The active ledger represents the "earned" portion of GIAC cash assets; i.e., all amounts not required to be held in reserve. Any Member payment not containing a portion to be held in reserve should be credited directly to the active ledger. (Example: Separate payment for invoiced pool webspace or GIAC polo shirt). All disbursements are made from the active ledger.

    Service Applications
    The ISP does not charge GIAC for service started after the first day of a service month; calculate the ISP payment status of each Member account service as of the first day of the month. GIAC does not charge Members for service started in the last half of a service month; calculate the GIAC payment status of each Member account service as of the sixteenth day of the month.

    • If account service is started after the first and before the sixteenth of the month:
      • Pay the ISP for the new service beginning next service month.
      • Credit or transfer Member's first month's payment for the new service to the GIAC active account.
        • For each new basic service account, credit or transfer $12.00.
        • For each new secondary mailbox, credit or transfer $4.00.
        • For each new secondary website, credit or transfer $2.00.
        • For each new unit of user webspace, credit or transfer $12.00.
        • Keep setup fees in escrow until end-of-month.
    • If account service is started after the fifteenth of the month:
      • Pay the ISP for the new service beginning next service month.
      • Charge Member for the new service beginning next service month.

    Payments on Account
    See Escrow Ledger and Active Ledger above.

    End-of-Month Transfers
    As of the last day of the month, transfer amounts from escrow to the active account to cover the ISP payment for the next service month.

    • (See System Administrator's check request for details)

    As of the last day of the month, transfer "earned" amounts (GIAC's portion of Member service payments for the next service month) from escrow to the active account.

    • For each paid basic service account, transfer $2.00. (Some accounts may be free.)
    • For each secondary mailbox, transfer $2.00.
    • For each secondary website, transfer $2.00.
    • For each unit of prepaid pool webspace, transfer $2.00.
    • For each unit of prepaid user webspace, transfer $2.00.
     


    OTHER ADMINISTRATIVE EXPENSES (on demand)

    To date, only the following administrative expenses have been pre-approved for direct payment:

    • Internet Service Provider charges (detailed above)
    • Bank service charges
    • P.O. Box rental fees
    • Voice Mailbox fees


    MEMBER FEE REIMBURSEMENTS (on demand)

    In general, resignations by Members will be received by the System Administrator via the GIAC PO Box, then conveyed to the President and Treasurer after initial processing (see System Administrator procedures). Membership resignations and any other request for fee reimbursement received from other sources should be forwarded to the System Administrator for initial processing.

    • Member may elect to postpone reimbursement of membership fee until such time as share value equals its original value or until two years, whichever comes first.
    • Prorated reimbursement for partial month's service is not allowed.

    ----------------

    After receiving required approvals, reimburse any unused advance service payments, plus current share value of membership fee, less any amounts owed to GIAC (unbilled or unpaid webspace, past due service and administrative fees, goods purchased, etc.). Calculate share value and reimbursement amount as of last day of final service month.

    1. Receive resignation advice from System Administrator via e-mail (including information about any amounts owed by Member to GIAC)

    2. Calculate reimbursement amount

    3. Transmit reimbursement request to President via e-mail

    4. Receive reimbursement approval from President via e-mail

    5. Prepare check

    6. Mail check to resigned Member at account address


    MEMBER EXPENSE REIMBURSEMENTS (on approval)

    Member out-of-pocket expense will be reimbursed only if expense was approved in advance by the President. A receipt or other authorization signed by the President, showing the date and exact amount of the pre-approved expense should be submitted to the Treasurer (preferably via the GIAC PO Box) whenever possible.

    To date, only the following administrative expenses have been pre-approved for member reimbursement:

    • Routine operational postage expenses by Officers (e.g., Membership Kits to prospects, account password advices, remittances, etc., but not promotional or general membership mailings unless pre-approved)
    • Routine distribution of Internet software to Members @ $1.00/diskette

    ----------------

    1. Receive reimbursement request via PO Box or other source

    2. Transmit request to System Administrator via e-mail for information about any amounts owed by Member to GIAC

    3. Receive information from System Administrator via fax or e-mail about amounts owed by Member to GIAC

    4. Calculate reimbursement amount

    5. Verify pre-approval of expense by President

    6. If expense not pre-approved, transmit reimbursement request to President via e-mail

    7. Receive reimbursement approval from President via e-mail

    8. Prepare check

    9. If remitting System Administrator's expense:

      • Notify System Administrator about check availability via phone, fax or e-mail
      • Convey check to System Administrator via hand pickup

    10. If remitting other Member's expense:

      • Mail check to Member at account address


    OTHER EXPENDITURES

    All payments must be pre-approved by the President. No exceptions! The Treasurer shall accurately report to the President, upon request, the current financial position of the Cooperative and shall advise the President with regard to the affordability of proposed expenditures. Together, the President and Treasurer shall be responsible for maintaining the financial health of the Cooperative. Major expenditures (over $ 50 ) shall be approved only after consultation with the Board of Directors.

[Bullet] Reports | Home | Top | Index |

    JOURNALS & LEDGERS

    Prepare one printed copy (3-hole punched, if possible) of each journal and ledger for distribution to the President at the scheduled monthly meeting. This copy can also be made available for inspection, on request, by any Member at the monthly meeting.


    TREASURER'S STATUS REPORTS (4)

    Prepare printed copies (3-hole punched, if possible) of the following reports for distribution to each Officer at the scheduled monthly meeting. If requested, give verbal summary at the meeting.

    1. PAYMENT SUMMARY (as of last day of month)

    2. CALCULATION OF SHARE VALUE (as of last day of month)

      Assets = ( sum of )

      • Funds on deposit (active ledger)
      • Funds on deposit (escrow ledger)
      • Funds not deposited
      • Funds not collected
      • Petty cash
      • Estimated earned interest
      • Other assets

      Liabilities = ( sum of )

      • Member reimbursable expenses
      • Member service prepayments
      • Member mailbox prepayments
      • Member mailbox setups (this month)
      • Member website prepayments
      • Estimated taxes
      • Other liabilities

      Book Value = Assets - Liabilities

      Share Value = Book Value / Paid Memberships

      Share Deficit = Membership Fee - Share Value

      Total Deficit = Share Deficit * Paid Memberships

    3. HISTORY OF SHARE VALUE

    4. ESTIMATE OF MONTHLY CASH FLOW (next month)

      Recurrent Income = ( sum of )

      • Service fees (prepaid)
      • Mailbox fees (prepaid)
      • Website fees (prepaid)
      • Pool webspace (prepaid)
      • User webspace (prepaid)
      • Service fees (invoiced)
      • Mailbox fees (invoiced)
      • Website fees (invoiced)
      • Pool webspace (invoiced)
      • User webspace (invoiced)

      Recurrent Expenses = ( sum of )

      • Chesapeake / GIAC domain name service
      • Chesapeake / GIAC web hosting service
      • Cheasapeake / GIAC member service (prepaid)
      • Chesapeake / GIAC member service (invoiced)
      • Postage expense
      • PO Box rental
      • Bank service charge
      • Voice mailbox charge

      Estimated Monthly Cash Flow = Recurrent Income - Recurrent Expenses

[Bullet] Files | Home | Top | Index |

    PAPER FILES

    Maintain the following permanent files for reference by present and future GIAC Officers:

    • Bank Account Information
    • Tax Computations & Returns
    • Receipts
    • Any other files required by the Treasurer


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//www.greenbelt.com/giac/procs/tprocs.htm     Updated 1/20/00