Member contributions report , when member reimbursed for club expense?

Cynthia Johansson on

For one part of our club's audit this year, our committee
reviewed the report showing member contributions and
withdrawals for the year.

One member had paid for our Bivio subscription with a check
of $99. Once the check was in the mail, I entered the check
in the suspense account as an expense. I then credited the
member with a payment of $99.00 as soon as the check was
cashed, in effect "reimbursing" her in club units. The
expense was allocated as our partnership agreement
specifies.

Did I credit this member properly, and does it make sense
that the $99 this member paid (to cover a club expense)
shows up as if she made an additional payment? My concern is
that if she was reimbursed in "club units" already, should
this dollar amount also show up as a contribution? Or
perhaps the dollar amount corresponds to the # of club
units, and dollars and units are really two sides of the
same coin?

Hope I am making sense,
Cynthia
1st Year as Treasurer

iras1 on

You entered everything correctly. It might be easier to see this if you consider the situation if the transactions were reversed. The member made a payment of $99 which purchased units. The club then wrote a check for $99 to pay for bivio and allocated the expense in accordance with its PA. You would be in the same situation. The club would have the same amount of cash as it did before the transactions, one member would have an extra $99 worth of units, and the club would have another year of bivio.

Ira Smilovitz

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In a message dated 02/24/10 23:26:01 Eastern Standard Time, skyfox@bivio.com writes:

For one part of our club's audit this year, our committee
reviewed the report showing member contributions and
withdrawals for the year.

One member had paid for our Bivio subscription with a check
of $99. Once the check was in the mail, I entered the check
in the suspense account as an expense. I then credited the
member with a payment of $99.00 as soon as the check was
cashed, in effect "reimbursing" her in club units. The
expense was allocated as our partnership agreement
specifies.

Did I credit this member properly, and does it make sense
that the $99 this member paid (to cover a club expense)
shows up as if she made an additional payment? My concern is
that if she was reimbursed in "club units" already, should
this dollar amount also show up as a contribution? Or
perhaps the dollar amount corresponds to the # of club
units, and dollars and units are really two sides of the
same coin?

Hope I am making sense,
Cynthia
1st Year as Treasurer

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