Drafts (Post-dated Checks) re Schar    7006-01   ZZar

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                          TO:  Interested Ministries                                                                                    FROM: Jim Bramer, Retired Auditor-CPA
                                                                                                                                                             FILE:  7006-01/Schar

                           RE:  Drafts (Post-Dated Checks) re Schar                                                    Originated:  September 2000                                      


    In the sample "Schar & Parents Q&A Memo", one of the monthly Schar payment options is "Schar Drafts"  ----  which is basically a series of post-dated checks. All of us realize that a check (or draft as now defined for this purpose) written out today, or April 25, xxxx, but dated  May 25, xxxx is an appropriate legal instrument; but, since it is a draft only, it isn't worth much until May 25, xxxx.  Please observe the following scenario:

  •   DAD or MOM go to the School today and register Tracy for the next school year. Their Tuition payment requirements are nine monthly payments of $200.00 during the School year. Any School fees incurred during the School year will be paid by DAD-MOM upon receipt of the charge notice.

  •   DAD-MOM choose to get a Schar Draft discount and make nine payments of only $190.00 per month.  

  •   This is the first time that DAD-MOM use the Schar Draft method and they want to try it out first. So they pay their Registration fee of $125.00 with a check dated today, or April 25, xxxx.  Then they write out three checks (Schar Drafts)  for $190.00 payable to the School dated September 10, xxxx, October 10 xxxx, and November 10 xxxx. 

  •   If, in November xxxx,  they feel good about this Schar Draft method for the balance of the school year, DAD-MOM  will provide the School with Schar Drafts of $190.00 for the remaining six months of the School year. Otherwise they pay $200.00 a month.

  •   The School is willing to offer the monthly $10.00 discount for this Schar Draft method because it adds efficiency to such matters; especially to the School. The School can post such future payments immediately to their Schar Accounting system and place the Schar Drafts in their safe.  At the Schar Draft date the School can by Email remind DAD-MOM of this (DAD-MOM need to make this request at the time of Registration) as they process the Schar Draft on to the School's Bank in the normal fashion.  Of course, existing policy as to bounced checks (formerly, Schar Drafts) apply here.

  •    At any time, and for whatever reason,  DAD-MOM can obtain their remaining $190.00 Schar Drafts from the School and return to making $200.00 monthly payments.

    It seems to us that this option is a WinWin situation for both the School and all DAD-MOMs.


    Please click here for list of Schar resources on www.bcidot.org .The bulk of this Publication originated in September 2000 and was UPTD: March 09, 2012

ABOUT  US   |  OUR PURPOSE   |  TABLE OF CONTENTS   |  SEARCH  MATTERS  |  HELP DETAILS   |  FUND ACCTG VIA COMPUTERS   |  GLOSSARY