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FROM: Jim Bramer, Retired CPA-Auditor
Psalms 37:23-24 FILE: 7016-02/sch
RE: Electronic School Financial Ideals Originated: July 1997
Below is a transcript of another hypothetical Online conversation, or THRD, between Jim@bcidot.org and members of a M)inistry F)inance Team - MFTeam; the MFTeam members consist of PAT (Ministry Executive), LEE (Volunteer Board Treasurer), and FRAN (Ministry Computer Bookkeeper). Click here and go to List of threads (THRDs) at www.bcidot.org
- - - - - After March 2013, please take notice of the "Online SCHAR" system discussed at: http://www.bcidot.org/fwi/0944-13.html ---
Jim, I am the Principal of a private tax-exempt Christian School made up of about 500 pre-school and higher grade students. We have found your Email discussions with Onliners re School Finance topics of interest; please give me a little more of your School finance background.
Thank you, Pat. please go to 0001 for more of my biographical information, but it has been my privilege since the middle 1960s to primarily serve small to medium sized Ministries as a CPA-Auditor. At one time I served as ACSI's (Assn of Christian Schools, Int'l) CPA-Auditor; During the 1980s made contributions to various ACSI Publications; have also presented School Finance material at Calif ACSI conferences; was on the ECCU's (Evangelical Christian Credit Union) Board as Treasurer when the ACSI Credit Union combined with ECCU.
Hmmmmm, most interesting! Well, our Board Treasurer, LEE and I have recently been having some rather "platonic" discussions. With various financial electronic capabilities these days, we have been doing some dreaming about -- "wouldn't that be nice if we could do such and such" here at the School. Especially when we think about the ideal of our School incurring absolutely "NO" bad debts or we get paid for all of the Tuition and Fees due us.
Jim, based upon your perspective, please set forth what you think would be the "IDEAL" Christian School finance system for a School our size.
Hey, that's sounds great ... Also link to: 2014-07 0035-01 7888-01 and 7089-02. Please also click here and view a list via our Sitemap; most of the information shared below shows up on this list.
1> We reference Sch)ool A)ccounts R)eceivable as SCHAR; please go to 7010 for more details. By the way, I will reference people who owe money to the School as DAD-MOM even though we know that others sometimes assume that responsibility.
2> We believe that ECCU Credit Union has much to offer a School. Your School is apparently located in Florida but you can bank with ECCU; even though it is headquartered in Southern CA, as it readily services Schools throughout the world. Please note Footnote 1 ; in ideal information below; this proposed ECCU service is NOT believed to be currently available.
3> When you go to 0601 you will find that we are advocates of the financial software product known as QuickBooks (TM) (QB).
4> Please Go Here for a paper that was upgraded in the year 2010 on Contemporary SCHAR management. This dialog within a 2010 portion of a JIMs JRNL might also be of interest.
This all sounds VERY VERY interesting. First, tell us more about ECCU.
ECCU is now a good sized financial institution in the business of meeting the realistic needs of its members anywhere in the USA --- and the world ..... either individuals or Ministries. I encourage you to use ECCU's present resources and ask for more, (See Footnote 1) as needed. The more members who express such needs, the more responsive they can usually be
Good --- now tell us about SCHAR
OK .... the 'stuff' below has it's origin in our web pages
- - - - I D E A L S C H A R S Y S T E M - - -
The SCHAR time-line could involve the following:
DURING REGISTRATION - - - -
DAD/MOM arrange to pay their Tuition and Fees in any of the following ways....
>>>>> Pay their annual Tuition and Fees at the time of registration and receive a special discount.
>>>>> Pay their Registration Fees and agree to pay their annual Tuition (at least) and Fees in Monthly installments at a specific time of the month.
More DAD/MOM Options are:
A> Provide the School with Drafts, or post-dated checks. go to 7006 for more information, or.
B> Have the SCHOOL write a check on their Bank Account for the SCHAR account balance (up to an agreed limit), or....
C> The School pays their SCHAR account balance (up to an agreed limit) by automatically charging their PLASTIC Account (Credit Cards, like VISA, etc).
- - - - DAILY ACTION - - - -
When such a charge occurs, the SCHOOL posts any non Tuition fees ... like Hourly DayCare, Class event fees, etc..... to DAD/MOM's SCHAR account. At least weekly, the SCHOOL produces an Aged QB SCHAR report for follow-up to ultimately insure that the School has no Bad Debts. Any unpaid account balance that is 10 days late requires an assessment of the agreed LATE charge fee. Then the SCHOOL is paid the updated SCHAR account balance by charging DAD/MOM's PLASTIC. This, of course, is all timely communicated to DAD/MOM.
- - - - - MONTHLY ACTION - - - - - -
The School does NOT monthly do this at the same time, but at the Registration agreed time of each month ... any time between the 1st and 15th of a month. Do the following applicable tasks ...
---- Post the monthly Tuition amount due,
---- Be paid the unpaid SCHAR balances by either:
1> Writing EFT check on DAD/MOM's Bank Account, or
2> By charging DAD/MOM's PLASTIC account.
- - - - IDEAL 'SCHAR' COMMENT - - - -
If the foregoing QB's SCHAR system functions according to School Board's design and policy, then DAD/MOM have settled up what they owe the SCHOOL ... the SCHOOL has its necessary operating funds. Some DAD/MOMs may still owe something on their School Bill, but they owe it to someone other than the School. Accordingly, DAD/MOM, and especially the kids, can continue their healthy relationship with the SCHOOL.
It is very possible that at some point DAD/MOM's PLASTIC will NOT accept any more charges by the SCHOOL; please ask us for some more information on this topic.
Boy, Jim, it sure sounds like THAT setup would be a blessing !!! Is there anything that LEE or I could do to bring this to some form of reality?? Also, do you have any comments about ideal financial reports?
Yes. Use ECCU's present resources and ask for more, (See Footnote 1) as needed. ECCU is in the business of meeting the realistic needs of its members. The more members who express such needs, the more responsive they can usually be. Further, I would be willing do some Online 'PIONEERING" with you as to certain QB aspects of the above 'ideal'. Let's talk! As to financial report, let me share what follows; QB Samples are available for the asking.
---- Weekly, Daily, or upon request via QB:
> PHOTO .... a "Balance Sheet" type report, at a point in time, of how much is in the Banks (plus amount of Acct Rec Due you), amount of Operating liabilities you owe and then who belongs to the residual balance. As shown by groups of Special
Purpose Funds (SPFunds) and by the General Purpose Fund (GPFund).
>VIDEO (A to B) .... an "Income Statement" like report, for a period of time since the first of fiscal year, of the GPFund comparison of the A)ctual amount of expenses incurred to the related amount of authorized B)udget.
> Applicable weekly Church Bulletin fiscal information.
> Some of the above reports normally flow on a monthly basis.
> KITS .... a report of K)ey I)tem T)rend S)tatement information; or comparative fiscal data of at least the past twelve months for Church decision makers. Plus more complete fiscal reports of Operations (GPFund and SPFund) and the status of Land, Buildings & Equipment ... with related Liabilities. Please go to 7012 for a "Big Pix" sample.
----- Quarterly via QB system:
> Applicable Payroll tax return filings
----- After Six Months (or at any time):
> Readily make updates of Authorized Budgets within QB; due to change in Ministry plans and objectives.
----- Calendar Year End:
> Produce Forms W-2 and 1099 filings from QB records; Issue Annual Giving reports via the DonaMail System.
----- Fiscal Year Reports:
> Mostly from QB provided information.
Boy, Jim, LEE and I sure like much of what you have just shared. What can we do to bring this to some form of reality??
Please access 0079 for information about our QB101 service.
FOOTNOTE # 1 --- Not believed to be currently available.
Please Click Here for a list of more Christian School resources on www.bcidot.org. The bulk of this Publication originated in July 1997 and was UPTD: April 15, 2013