TO: VNRs FINANCE
FROM: Jennifer Kliethermes, Bookkeeper
COPY TO: Advisers, Noble Rulers, House Directors,
Alumni Presidents, Regional Vice-Presidents
DATE: January, 2006
RE: IMPORTANT FINANCIAL INFORMATION
Some important information:
1. IRS Form 990 for non-profit groups is due four and one-half (4 ½) months after the end of your fiscal year.
2. Audits should be done at least once each year by an outside accountant. The audits should be done by June 1 and a copy sent to the AGR Home Office.
3. Monthly Financial Reports, including Accounts Receivable, Accounts Payable, Balance Statement, Income/Loss Statements must be sent to the Home Office and to your Adviser each month by the 20th. You may use the Reports in QuickBooks format if your chapter is using the program. Also, if you are using an accounting service, they may submit the forms to us monthly per your request.
4. Initiation forms with the $200 fee must be sent to the Home Office and postmarked within 48 hours of Initiation. If the initiation forms are not postmarked within 48 hours, the chapter will be fined $100 for each late form.
5. Your liability insurance premium which was $146 per brother will be increasing between 8% - 15%. The premium will not be set until the end of March, 2006. The premium is multiplied by the number of brothers as of July 1, 2005 and adjusted according to the number of collegiate brothers in the chapter for Fall 2005. You or your alumni treasurer will be billed April 1, 2006 for your liability insurance. If the entire premium is paid by April 30, you will receive a 10% discount or a 5% discount, if paid by June 30. The entire liability insurance premium is due on September 1, 2006.
6. Assemble your finance committee in the next few days (if you have not already done so) and review your current financial position. Submit a copy of your 2006-2007 budget to the Home Office by March 31, 2006. A budget form is available online under Undergraduate, Member Resources, Resourse Room, VNR-Finance, 4.30 Annual Budget..
Important Financial Information
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7. Chapters working towards winning the National Chapter Management Award or other awards will want to submit Monthly Balance Statements, a Profit/Loss Statement and the upcoming Fall/Spring Budget by March 31, 2006 to qualify for awards.
Statements
Statements are sent out the last day of every month. A statement is simply a review of any activity that has occurred on your account with the Home Office since your last statement. A statement is not a bill, and you need not send any money to the Home Office, unless you are carrying an unpaid balance. Please note that a statement includes payments, credits, and invoices to your account. The invoice reference numbers on your statement refers to anything for which you have been charged within the last billing period. These numbers will match those on invoices for that particular item. Keep in mind that payments made after the statement date will not be reflected until the next statement. Statements will not be sent to chapters whose accounts receivable balance is zero.
Invoices
Chapters will receive invoices throughout the year as well, but they will not arrive at any particular time. Rather, invoices are sent as items are ordered by the chapter, or if there is an automatic billing. In the case of automatic billings, the relevant officer will usually receive a letter at the same time that the VNR-Finance receives an invoice. For example, when you receive an invoice for the automatic billing of an alumni printout each Fall, the VNR-Alumni Relations receives the printout and a letter explaining the purpose of the printout. If another chapter member places an order, we assume that the chapter authorized him to do so, and you will receive the invoice for the order. For example, if the VNR-Membership Development orders 20 Golden Crescents, we assume the order was in the chapter's budget, and the order will be shipped in care of the VNR-Membership Development. Remember, invoices must be paid within 30 days of shipping.
Automatic Billing
The following items will be automatically billed to all chapters and colonies each year, as required by the National Constitution and Statutes. Your chapter should budget for these items so that it is able to meet these obligations in a timely manner, and avoid finance charges and/or fines.
January 15 1 Convention Registration Fee-Collegiate $280.00
1 Convention Registration Fee-Alumni $310.00*
* Alumni Corporation Only
Alumni Printout (in state) $ 0.05/name
Semi-annual Dues $ 60.00/member
Fidelity Bond** $ 60.00
** Only applicable chapters and alumni corporations
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September 15
Alumni Printout (chapter printout) $ 0.05/name
Semi-annual Dues $ 60.00/member
Interest and Fines
Finance charges are assessed on the last day of every month. If an invoice is not paid within thirty days, the amount is subject to interest at a rate of 18% APR, compounded monthly. This will continue until the invoiced amount is paid. A chapter with an unpaid invoice for semi-annual dues is subject to further fines. If semi-annual dues are not paid within 60 days of the invoice, a charge of $100 is assessed.
If a chapter carries a balance later than June 15, that chapter will be denied voting privileges during National Convention years, and will not be eligible for either national awards, matching funds, HRT assistance, or individual grants or scholarships in that year.
If you have questions about your account, please contact me at the Home Office.
Best wishes for a productive year!
Jennifer Kliethermes
Bookkeeper