REMINDER ...... the overall
objective of the POOL-VEST system is to leave the
maximum amount possible in the highest yielding Bank Savings
accounts for the longest period of time.
This makes a lot of
Brad. OK, please share with me your recommendations as to the
financial institutions who can accommodate such POOL-VEST
my knowledge, most financial institutions offer such services, but a place for such
actions is at your Credit Union. who can serve you remotely, Bex. As indicated
we are biased along these lines since Jim Bee at one time was the Treasurer at
this �Evangelical Christian Credit Union,
Be sure we talk about you making
deposits of checks at the Ministry without you having to take them
to a Bank as described
HERE. My experience is that a
local �Bank of
America� bank can be the medium of moving physical deposits to 'ECCU '.
But, within context of this
POOL-VEST system, I
now need to dialog with you about the following:
E E P S Y S T E M S
A SWEEP arrangement at a
financial institution like ECCU involves the above CHECKING
ACCOUNT and your DIBS Bank Account. At the end of the
business day, the financial institution honors all of your checks or
charges, and automatically moves the necessary coverage amount
to/from the DIBS Account so that the CHECKING ACCOUNTS
balance has a certain agreed amount (like $10,000) at the end of the Bank's business day. If
nothing was in the DIBS for such CHECKING ACCOUNTS coverage
purposes, then the SWEEP system gets what is needed from the
pre-arranged Line of Credit (LOC) Bank loan account � or the
Ministry borrows money from ECCU, etc.
The obvious "plus" for the Ministry is that it
does not have to carefully manage (or 'guess') how long it
takes to honor checks written and then manually move balances to/from
the DIBS Account for CHECKING ACCOUNTS coverage, etc. The
obvious �minus� is that you have to pay for such services.
N U A L B R E C - S W E E P P R O C E S S
Therefore, I recommend that a Ministry includes in its
POOL-INVEST endeavor the following manual way to do what I call a
BREC-SWEEP process as it:
>> Combines the desirable
and SWEEP effort as discussed herein.
>> Must reconcile on a regular basis to insure that your records
jibe with that of the Bank, etc.
We call this a Bank
Reconciliation or BREC process.
>> Makes full use of the Online resources that enable the Ministry
to in essence have access at
any time to its Online Bank Statement.
>> You go Online and move money from/to your Bank accounts
mentioned in the
POOL-VEST section above.
I think I get the general
idea, Brad. But please set forth within this EXCH the steps that I
would take to accomplish this manual effort.
This is very doable at
"D & D"
Bex, because your Church already deals with ECCU as its Bank and it
uses the QuickBooks Pro (QBs) software. If a Ministry is not using
these resources, then it would need to make sure that their
financial institution and/or their accounting software is compatible.
I will need to walk you through most of this in person, but it
involves such steps as the following.
<< At ECCU and within your QBs
you set up the above three Bank Accounts:
Checking Account; 2>
DIBS Account and the 3> TIBS account
<< You begin with the
hypothetical PHOTO information that I mentioned above;
total pool is $50,000 and $15,000 is in an Emergency Fund.
<< You already have the $50,000
in the Checking Account at ECCU, and you should
now have the above
mentioned DIBS and TIBS accounts within ECCU and QBs.
<< You go Online and move from
your �Checking Account� the amount of $34,000 to
the DIBS account
and $15,000 to the TIBS account. This leaves $1,000 in the
Activity during Monday of a week:
<< The counters do their weekly job on Monday and continue to
go to the local �Bank of
America� branch and make a deposit of lets
<< But they deposit it to
your "DIBS" account at ECCU and NOT to the "Checking Account"
at ECCU as
they have done in the past.
<< Since you utilize the ATF
(After the Fact) features of the eFinFax system
<< You go Online and verify that the DIBS account at ECCU now
has $39,000 ($34,000
plus the weekly deposit of $5,000)
<< And you also note that you need to place into the QB system
some ATF transaction
data showing up within the Online Bank Statement
<< So you take the following
steps: a) You make a hard copy of the Online Bank Statement
you go to the supporting documents (e.g., duplicate copy of checks
that have the
attached check request and/or invoices, etc.) and b)
attach them to this hard copy print
out. c) then working from this
information you post it into QBs from said ATF deposit and
info. Of course, you distribute transactions to the appropriate QBs accounts.
<< The checks above totaled $600 and
of course reduced the aforementioned
the Checking Account to $400.
<< So you need to go back Online and move $600 from the DIBS
Account to the Checking
Account so that you again have the float
amount of $1,000.
Activity during the remainder of a week:
<< Daily you go Online and
discover what Online payments have taken place.
<< Periodically during the week you
manually write checks as much as possible and release
them in light of the $1,000 threshold balance in the Checking
Account. Be sure and discuss
with me the process if you find
it desirable to use QBs to write checks, etc.
<< You make a hard copy of the Online Bank
Statement and attached supporting documents thereto.
<< If you goof up and do not go Online and move enough from the
DIBS account to the Checking
Account then --
<< ECCU uses your Line of
Credit (LOC) to insure that checks are honored, etc. Of course,
are Bank Fees involved, so you do your best to not let this happen.
Activity during the remainder of the week:
week on Thursday you go Online
and pay off plastic or Credit Card Balances
<< Of course, there is no need to do this if you
use the preferable Debit Card plastic process since
functions via plastic as if you were writing a check.
<< You also make a hard copy of the Online Credit Card
Statement and attach supporting documents
<< You use information from
this source to distribute to the appropriate QB operating accounts.
COMMENT: Via the
and the integrated
ATF system you make sure each week that the balances shown by
the Online Bank Statements and the said balances within the QBs
system are the same. In essence, you do this in lieu of the
usual Bank Reconciliation process each week.