Seasons of the Year & Schar      7012-01  ZZar

                                                   - - - Rejoice in the Lord always ... again I say Rejoice !!! - - -

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                            TO:  Interested Schools                                                                                         FROM: Jim Bramer, Retired Auditor-CPA
                                                                                                                                                                  FILE:  7012-01/schar

                            RE:  Seasons of the Year & Schar                                                                       Originated:  January 2000                              


        The issue before the Christian School is unpaid School Accounts Receivable (Schar) at certain critical times, or seasons, of the year.

FACT PATTERN:

        Most Tuition based Schools have a School year that begins in September and ends in May/June. Tuition is paid in monthly installments ... with all Tuition, plus monthly incurred Fees,  paid prior to the end of the School year. A LATE PAYOR is a party who has not paid their Tuition and Fees bills as agreed.  In essence the School has supplied them with a SCHOOL PROVIDED LOAN to the extent of the total unpaid amount of Tuition and Fees due and not paid by the LATE PAYOR

T H R U S T:

           Click here for our Schar Seven Truisms list.  After February of each School year it is critical that there be administration of such Schar Truisms and related School financial policy as applicable to the LATE PAYOR.

Through February of a School Year:

  • Since the LATE PAYOR has not paid their bills to the School,  the School has loaned money to the LATE PAYOR and

  • The School Administration works out a prudent repayment plan with the LATE PAYOR. Including appropriate use of the School's (1) Emergency Fund.

During March, April, May and maybe June of a School Year:

            This is a crucial time of year for compliance with Schar policies. We believe that the during each School Board meeting in February that this governing body needs to freshly place within its minutes that there is no exception -- for whatever reasons and with whoever -- to the following:

  •   If the total LATE PAYOR unpaid amount is equal to three or more of their monthly payments;

  •   Each and every LATE PAYOR must borrow from some other source ---- not the school any longer --- and pay off the SCHOOL PROVIDED LOAN;.

  •   Or the necessary PayToStay action goes into effect, or the student does not receive grades and/or must leave the school.

Non-School borrowing sources:

  •   Whatever source the LATE PAYOR and School can find for them;

  •   Credit Union loans as lined up by the School for LATE PAYORs  and in some cases the School may, not known to the LATE PAYOR , stand behind the loan.

        *******************************************************

    (1) Emergency Fund help comes from money on hand specifically for that purpose. Such a fund can be funded from the School Budget (a distinct annual Budget line item and money is transferred to this Emergency Fund) or it comes via special fund raising endeavors. Of course, expenditures therefrom need to meet certain emergency definition and related criteria. Click here for more information on this topic.       


  Please click here for list of Schar resources on www.bcidot.org . The bulk of this Publication originated in January 2000 and was.   UPTD: June 04, 2010  

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