Finance

Reviewing the Trial Balance by The Board and The Auditor

The Board, with the guidance of the Auditor, reviews the Trial Balance, no less frequently than once per quarter, with the objective of ensuring the good governance and good management of Merriment.

Reviewing the Trial Balance by The Treasurer

The Treasurer reviews the Trial Balance, no less frequently than once per month, with the objective of ensuring the good operation of Merriment, especially with respect to Revenue, Expenses, Accounts Receivable and Payable.

Reviewing Accounts Receivable and Payable by The Treasurer

The Treasurer reviews Accounts Receivable and Payable, no less frequently than once per month, with the objective of deciding when it is appropraite to: - issue statements of account via email using the “Statements” function. - contact a Member directly regarding their outstanding balance - warn a Member if a member’s outstanding balance is likely to trigger action under the Rules of Merriment - Part 5 – Period of inactivity prior to cancellation Rule 5.1(a).

Receipts

Using the Bank Statement Entry function, received funds are recorded as a Receipt against the Contact whose name and or contact label appears on the bank statement transaction.

That Receipt may then be allocated against any number of outstanding transactions across any number of Contacts. The most common outstanding transactions include: - Sale - Subscription - Sale - Accommodation Fees - Sale - Purchase of Shares - Sale - Accommodation Cancelation Fee

Payables

Payables consist of: - Invoices received electronically from utility suppliers with whom a supply arrangement has been agreed, eg Telstra, Country Energy etc - Invoices received at the co-op’s post office box and having been reviewed by the Secretary have been passed to the Treasurer. - Claims for reimbursement for authorised purchases for which full payment documentation has been provided - Accommodation refunds established under the booking policies and procedures set out on the “Bookings” page of the Website and authorised by the Booking Manager.

The Treasurer may further review such invoices and decide to review and/or investigate further before declaring the invoice authorised.

Payments

Payments originate with the recording of a Payment Authorisation document on the System, which include details including: - Name - Company - BSB/Account - Reference (typically a Supplier Invoice number) - Notes, as to the reason for the Payment

Once authorised by the Treasurer, Payments are made using the online Bank Account, to the BSB/Account quoted in the Payment Authorisation Document.

The Treasurer/Finance Manager will make payments only against authorised documentation and that documentation will be attached to the Payment transaction.

Using the Bank Statement Entry function, funds paid out are recorded as a Payment against the Contact to whom the payment has been made and the authorising documentation is attached to the Payment.

The payment may be allocated against any number of outstanding transactions across any number of Contacts. The most common outstanding transactions are: - SaleCredit - Accommodation Fees (typically when an Accommodation Bookings has been cancelled or credited) - Receipt (When too much money has been received)

The payment may also be allocated directly against a General Ledger Account, eg Firewood, Insurance, Lodge Supplies etc.

NOTE: Accommodation Fees: No Payments arising from Accommodation refunds should be allocated directly against the Accommodation Fees account, as the Booking system automatically raises Sale and SaleCredit transactions as part of the bookings process.

Any such refund Payment allocations must be made ONLY to SaleCredit transactions as the SaleCredit effectively documents the refund authorisation. (The corollary of this is that any Payment that is not allocated against a SaleCredit is effectively an unathorised Payment)

Purchases

Purchases on behalf of Merriment will not be made unless at a Board or Committee meeting prior to the purchase: - the purchase has been specifically authorised or - the item is part of an expenditure plan that has been reviewed and approved by the Board

Accommodation Bookings

The Booking Manager receives request for accommodation using the booking form available from the Website and processes the booking following the booking policies and procedures set out on the “Bookings” page of the Website. The Booking Manager records successful bookings using the “Bookings” function.

All communication, receipts, cancellations fees, payments etc for a Booking will take place via the one Member responsible for the booking.

For the avoidance of doubt, any communication, receipts, cancellation fees, payments etc from anyone other than the Member reponsible for a booking will not be accepted.

A typical member accommodation booking use case looks something like:

Member submits a booking request, including the names of those planning to attend and their membership status (Member, Child of Member, Non-Member, etc) and sends funds that match the pricing.

On receipt of the funds the booking is confirmed.

Over the next week or so, Member makes changes to their booking, changing the number, names and membership status of those planning to attend and sends additional funds or establishes credits or refunds that match the changed booking.

The booking remains unchanged until shortly before the planned occupancy date when once again the Member is likely to make changes to their booking, again changing the number, names and membership status of those planning to attend and again and sends additional funds or establishes credits or refunds that match the changed booking.

The system is designed to support the above use case and as such:

• When a booking is first entered, the booking is marked as “Not Invoiced”
• When the booking is “Invoiced”, the system marks the bookings as “Invoiced” and raises a “Sale - Accommodation Fees” and shows the amount of the booking as Outstanding. Any funds received for the booking can now be allocated against the Sale.
• If a booking is changed, the booking is again marked as “Not Invoiced” and no further action is taken
• When the booking is next Invoiced, the booking is again marked as Invoiced, a “SaleCredit - Accommodation Fees” for the amount of the original Sale is raised and a new Sale for the amount of the changed booking is raised.
• The Sale Credit can now be allocated against the new Sale as can any Receipt from additional funds received or Payment made, all of which should now balance.

NOTE 1: Cancellations Booking cancellations are made by deleting the Booking. If the Booking has not yet been Invoiced then no further action is taken. If the Booking has been Invoiced, then a SaleCredit will be automatically raised for the amount of the Booking.

• If the option taken by a Member is for a Credit, then the funds already received (Receipt) will have been allocated against the original Sale and so the SaleCredit raised will sit on the Member’s account as a credit.

• If the option taken by a Member is for a Refund with a Cancellation Fee, then a “Sale - Other Income” transaction must be raised MANUALLY for the amount of the Cancellation Fee. Assuming that the funds already received (Receipt) have been allocated against the original Sale, then refund Payment plus the Sale - Cancellation Fee can be allocated against the newly raised SaleCredit.

Subscriptions

Invoicing covers the period 1 July – 30 June.

The Treasurer invoices subscriptions in January of each year, using the “Subscription” function.

After verifying that invoicing has been successful the Treasurer sends any unsent invoices to members using the “Send Invoice” function