87-JIMs JRNL for the months of Mar & Apr2010

FROM: Onliner

Very good ---- how would you go about accomplishing all of this, Jim?

FROM: Jim Bramer

First, let me acquaint you with some contemporary SCHAR matters mentioned within the editorial when you Go Here. There you will notice that usually the Parent is the "SCHAR PAYER", or the entity paying for the schooling, but this person could be any one who assumes the responsibility for these payments.- including post High School students. I would like to see a School use the following "SCHAR PLASTIC" method:

>>   The "SCHAR PAYER" has ONLY a monthly SCHAR relationship. The School will not allow any prepayments for the entire year or semester.   This way the inflow is for the current month only and there is no need to do any accounting for any prepaids or unearned income, etc. You will also notice below how the SCHAR amount due is always paid on time --- or there is no unpaid amount balances or a need for an "Aged SCHAR" reporting system.

>>   This is possible via what I will call a "SCHAR PLASTIC" system that includes the following:

-- The preference is for the School to use this system via the eCheck (or Debit Card) process, as the School is the one who writes a "SCHAR PAYER" check equivalent for the said monthly amount due. Again please note that this payment action is by the School ---- not by the "SCHAR PAYER." Of course, the School has the appropriate internal Finance Policies and has written information for the "SCHAR PAYER" re this so that it has all the needed Plastic information to enable this system and is able to give the "SCHAR PAYER" advance notice of this action. If the "SCHAR PAYER" does not have money in their bank to cover this eCheck then it automatically reverts to the Credit Card method below.

-- The alternative is for the School to originally accommodate the "SCHAR PAYER" and add the monthly amount to their Credit Card balance via this "SCHAR PLASTIC" system. If they make this choice, the "SCHAR PAYER" would agree to timely pay off their Plastic balance --- or the "SCHAR PAYER" would not have unpaid debt problem, etc.  Some Schools would have the "SCHAR PAYER" sign a vow along these lines. Please Go Here for an example. But if there is any late or delinquent Credit Card issues, then the Credit Card Company deals with it and not the School.

-- This "SCHAR PLASTIC" method enables the School administrative staff to concentrate on Christian School matters and not function as a bill collector. Even more importantly, the School does NOT have to remove a Student because their SCHAR bill isn't paid.

>>     So a required part of the semester registration process is for every "SCHAR PAYER" to provide the School with the needed "SCHAR PLASTIC" information. Some may prefer to have a unique "SCHAR PLASTIC" for only this "SCHAR PLASTIC" purpose. Some Credit Unions like ECCU could help provide this for applicable "SCHAR PAYERs" as part of the Semester Online registration process.

>>     As part of this registration effort the School determines what is the monthly "SCHAR PLASTIC" amount. Or it would determine the amount for the semester's Tuition/Fees, less any Scholarships or Offsets, and come up with monthly School income and expense amounts. This "SCHAR PLASTIC" monthly amount would then flow through the SCHAR computerized accounting system and timely account and show the income (tuition and fees) and expenses (Scholarships, etc.) when earned/occurred as appropriate. Here are some factors in doing this:

--     At the first of the semester the School posts this monthly amount all at one time using the "post dating" process; or you enter the monthly transactions now and post date them for the applicable upcoming months, etc.

--     Or you post the monthly charge and the payment transaction at the same time --- almost like a cash sale flowing through the SCHAR system.
--     Schools using QBs would make full use of the Memorized batch entry feature whereby a transaction is saved (Memorized) and then it is re-dated with a large part of the transaction being posted over and over again.
--   Larger Schools will likely take such steps via a weekly batch process --- like 100 posting/depositing per week, etc.

>> Of course, any additional School fees earned during the year would be charged to the SCHAR system at the time and paid via the applicable monthly "SCHAR PLASTIC" process.

>>   Most any integrated "School Accounts Receivable" computerized system would accommodate this proposed "SCHAR PLASTIC" system, but, as you probably have already noticed, my preference is the use of the QuickBooks (QBs) Pro system.

FROM: Onliner

Wow, such a "SCHAR PLASTIC" system would meaningfully respond to a lot of my preferences and reduce a number of my indicated "School Accounts Receivable" management concerns. Thank you for mentioning this.

	F I N A N C I A L I S S U E S:	*Green*	*Yellow*	*Red*

1>	*There is not enough income for the Board* authorized**	____	____	____
	expenses of the General Purpose Fund-GPFund.
2>	The financial record keeping is not good. Such info is not	____	____	____
	timely nor is it understood by those who should know.
3>	The GPFund is prone to borrow from non discretionary funds	____	____	____
	(especially donor designated Special Purpose Funds
	SPFunds) in order to meet expenses.
4>	Staff members are not getting paid timely	____	____	____
5>	*The rent (or mortgage payment)* is behind**	____	____	____
6>	The withheld payroll taxes are not paid timely	____	____	____
7>	Unpaid bills are 60 to 90 days old	____	____	____
8>	Operations are being funded by sale of assets	____	____	____