Party Expenses - Revision history

LibertarianCFO: /* Accounting */ Correct final balance in Chequing

2018-02-10T03:04:36Z

Accounting: Correct final balance in Chequing

← Older revision		Revision as of 03:04, 10 February 2018
Line 159:		Line 159:
	\|		\|
	\| <span style="color:#ff0000;">-75</span>		\| <span style="color:#ff0000;">-75</span>
	\| 75		\| <span style="color:#ff0000;">-25</span>
	\| 75		\| 75
	\| 1,025		\| 1,025
	\|}		\|}

LibertarianCFO: /* Accounting */ Negative numbers red

2018-02-10T03:02:32Z

Accounting: Negative numbers red

Show changes

LibertarianCFO: /* Accounting */

2018-02-08T21:49:51Z

Accounting

← Older revision		Revision as of 21:49, 8 February 2018
Line 30:		Line 30:

	== Accounting ==		== Accounting ==

			A Petty Cash advance is not treated as an expense. The Petty Cash is an asset of the Party until it is spent. Since it is not under the control of the Treasure it is considered as an Account Receivable. It is money owed to the Party by the Trustee.

			When the Treasurer receives an expense statement from the Trustee, the expenses will be recorded as reductions in Accounts Receivable. If the Petty Cash is to be replenished, the new advance will increase the Accounts Receivable.

			'''Sample Petty Cash '''

			#Assume the Executive has approved a budget of $1,000 (on January 8) for some task that will take several months.  In efect, an amount of $1,000 has been set aside in the chequing account and in the Expense Budget.
			#On February 1 a cheque is issued to the dsignated Trustee for $300, transfereing the funds from Chequing (reducing the balance) to Accounts Receivable (increasing the balance).
			#On March 30 the Trustee submits an expense statement and supporting documentation for expenses of $200, which is charged to various expenses and reduces the amount outstanding in Accounts Receivable (A/R)
			#April 1 the Treasurer issues a cheque to the Trustee in the amount of the expenses reported, charging it to A/R, and replenishing the Trustee's Petty Cash Account.
			#



			{\| class="wikitable" style="text-align: right;"
			\|-
			! Date
			! Description
			! colspan="2" \| '''Accounts Receivable'''
			! colspan="2" \| '''Chequing'''
			! colspan="2" \| '''Expenses'''
			\|-
			\|
			\|
			\| '''Transaction'''
			\| '''Balance'''
			\| '''Transaction'''
			\| '''Balance'''
			\| '''Transaction'''
			\| '''Balance'''
			\|-
			\| 8-Jan
			\| '''Approved Budget'''
			\|
			\|
			\|
			\| '''1000'''
			\|
			\| <span style="color:#ff0000;">'''-1000'''</span>
			\|-
			\| 1-Feb
			\| Initital Advance
			\| 300
			\| 300
			\| <span style="color:#ff0000;">-300</span>
			\| 700
			\|
			\|
			\|-
			\| 30-Mar
			\| Expenses reported
			\| <span style="color:#ff0000;">-200</span>
			\| 100
			\|
			\|
			\| 200
			\| <span style="color:#ff0000;">-800</span>
			\|-
			\| 1-Apr
			\| Reimburse Petty Cash
			\| 200
			\| 300
			\| -200
			\| 500
			\|
			\|
			\|-
			\| 30-Jun
			\| Expenses reported
			\| <span style="color:#ff0000;">-150</span>
			\| 150
			\|
			\|
			\| 150
			\| <span style="color:#ff0000;">-650</span>
			\|-
			\| 1-Jul
			\| Reimburse Petty Cash
			\| 150
			\| 300
			\| <span style="color:#ff0000;">-150</span>
			\| 350
			\|
			\|
			\|-
			\| 31-Aug
			\| Expenses reported
			\| -275
			\| 25
			\|
			\|
			\| 275
			\| -375
			\|-
			\| 1-Sep
			\| Reimburse Petty Cash
			\| 275
			\| 300
			\| -275
			\| 75
			\|
			\|
			\|-
			\| 31-Oct
			\| Expenses reported
			\| -325
			\| -25
			\|
			\|
			\| 325
			\| -50
			\|-
			\| 1-Nov
			\| Balance of Budget
			\| 50
			\| 25
			\| -50
			\| 25
			\|
			\|
			\|-
			\| 30-Nov
			\| Expenses reported
			\| -25
			\| 0
			\|
			\|
			\| 25
			\| -25
			\|-
			\| 10-Dec
			\| Pay final expenses
			\|
			\|
			\| -25
			\| 0
			\| 25
			\| 25
			\|}

LibertarianCFO: /* Petty Cash Procedure */ Explanation of procedure

2018-02-08T17:10:06Z

Petty Cash Procedure: Explanation of procedure

← Older revision		Revision as of 17:10, 8 February 2018
Line 21:		Line 21:
	This method works provided the individual incurring the expenses (on behalf of the Party) has a credit card with a sufficient credit limit, or adequate funds in their bank account. Otherwise the delay before being reimbursed is unacceptable and would prevent them from taking on the responsibility. This can be overcome by the ...		This method works provided the individual incurring the expenses (on behalf of the Party) has a credit card with a sufficient credit limit, or adequate funds in their bank account. Otherwise the delay before being reimbursed is unacceptable and would prevent them from taking on the responsibility. This can be overcome by the ...
	== Petty Cash Procedure ==		== Petty Cash Procedure ==
			Any member of the Party tasked with completing an item with an approved budget may request a "Petty Cash" advance. Such a request should be made at least one week and preferably two weeks before the cash will be required. The individual receiving the advance (the "Trustee") must obtain receipts and invoices for all expenses.

			For ongoing tasks (e.g. New Member Kits, Thank You Cards) the advance should be sufficient to cover expected expenses for 2-3 months. As the Petty Cash gets low and if additional expenditures are expected, the Trustee should provide an [[Expense Statement]] or email listing and totaling the expenses incurred and all receipts and invoices (originals or scanned copies) to the Treasurer. The Treasurer will then issue a cheque in the amount of the reported expenses as an advance to replenish the Petty Cash fund, obtain a second signature and send/deliver it to the Trustee. The Treasurer should not issue a cheque that would exceed the budget by more than 10%(?).

			If it appears that the expenses required to complete the task will exceed the approved budget, a motion should be made to approve an increase in the budget or to terminate the task. The Treasurer should not issue a cheque to replenish Petty Cash until the increase is approved. The Trustee should advise the Executive prior to a meeting if an increase is required before the next meeting.

			If the task is nearing completion, the Treasurer should only issue a cheque for the amount required to complete the task. If the task is completed, a cheque should only be issued for the amount not already covered from Petty Cash advances. If the full amount of the Petty Cash has not been spent (i.e. cheques issued is greater than expenses reported) the Trustee must return the unused portion to the Party.

			== Accounting ==

LibertarianCFO: Initial draft, current procedures, intro to Petty Cash procedure

2018-02-08T03:31:31Z

Initial draft, current procedures, intro to Petty Cash procedure

New page

All Party Expenses must be paid from the Party's chequing account. This account is with TD Canada Trust. The home branch for the account is at Jane Street and Bloor Street West in Toronto.

In order to reduce the risk of malfeasance(?), every cheque must be signed by two people, preferably members of the Executive Committee. Since about 2010 the Leader, Recording Secretary and Treasurer have had signing authority. Three people were given signing authority in case one is unavailable. As a matter of practice, the "Payee" does not sign the cheque. In order to change who has signing authority, all three new signatories must attend at the home branch together to sign the required documents. At the Convention on November 4, 2017 the Recording Secretary and Treasurer have been replaced.

Because of the requirement for two signatures, the ATM card cannot be used to withdraw cash from the Party's account. It is only used to deposit cash and cheques. This also limits our ability to obtain a credit card from TD Canada Trust.

There are two procedures currently in use for obtaining two signatures on cheques;
# The Treasurer (or other person with signing authority) prepares the cheque(s) and takes it/them to a meeting, such as Pub Night, where one or both of the other individuals with signing authority will be present to sign them.
# If such a meeting is not happening soon, the Treasurer prepares the cheques and mails them to one of the other authorized signers, who signs them and forwards them to the Payees. (The Treasurer usually includes stamped envelopes addressed to the Payees.)

Some expenses may be "pre-authorized" by the Party to be taken directly from the Party's account by the Payee. The Executive Committee must approve such an arrangement. Currently the only pre-authorized payment (PAP) is the monthly cell phone charge.

The Treasurer must have an invoice or expenses statement before preparing a cheque. For example, Paragon dpi sends the Treasurer an invoice after printing our quarterly newsletter and return envelopes (and delivering them). So to for our insurance company and the company that provides our mail box. However, many of the expenses must be paid in cash or by credit card;
* PayPal Pro (the service that allows donors to pay by credit card instead of PayPal) will only accept payment by credit card.
* Facebook advertising also will not accept a cheque from the Party.
* Stamps and courier services
* Office supplies such as paper and ink cartridges

Typically the person responsible for conducting party business, such as publishing ''Bulletin'', 'Boosting' Facebook posts, preparing and mailing New Member Kits, mailing Nomination Packages to Candidates or Official Receipts to donors must pay for the materials and (later) be reimbursed by the Party. The individual incurring such expenses must provide the receipts or invoices to the Treasurer. These may be original documents or scanned. They may be listed on a covering email or on an Expense Statement. Expenses must have been approved by the Executive. Many are covered under the Operating Budget (''Bulletin'', postage, Insurance, Telephone, Internet, etc.) or approved spending motions (e.g.election campaigns, fundraising campaigns).

This method works provided the individual incurring the expenses (on behalf of the Party) has a credit card with a sufficient credit limit, or adequate funds in their bank account. Otherwise the delay before being reimbursed is unacceptable and would prevent them from taking on the responsibility. This can be overcome by the ...
== Petty Cash Procedure ==