FP allocation amounts become due for transfer from the FBO No. 1 Acct to the Org’s Main Account immediately following FBO approval of the FP and allocation figure.

The FBO is generally watchful of the FP routing and handling lines and prevents any undue delays.

With the FP approved and allocation amount established, the FBO issues his transfer check AT ONCE, rapidly obtaining the needed A/G co-signature (or Exec Dir in the absence of the A/G or AGF) and delivers the check to the hands of the Treas Sec.

The Treas Sec gives his receipt and sees that the allocation check is banked AT ONCE to the Org’s Main Account.

When the FP check has cleared and been credited to the Org’s Main Account by the Bank, the FP as approved may be activated by Division 3. NOT BEFORE.

Checks drawn or POs activated against an FP for which the allocation check has not yet been deposited or cleared amounts to spending money which is not there, and violates earlier policies and falsely affects the Org’s Cash-Bills Stats.

FP allocation amounts become due for transfer from the FBO No. 1 Acct. to the Org’s Main Account immediately following FBO approval of the FP and allocation figure.

FSM commissions and any refunds due for payment follow the same principle.

The FBO is generally watchful of the FP routing and handling lines and prevents any undue delays.

Dept 8 prepares all forms and related data and applies via the Treas Sec to the FBO AT ONCE when such payments are due. The FBO rapidly verifies and immediately issues a check to cover valid FSM commissions due and a separate check to cover any refunds payable. His transfer voucher lists the names and amounts.

With the FP approved and allocation amount established, the FBO issues his transfer check AT ONCE rapidly obtaining the needed Finance Enforcement Officer cosignature (where there is no FEO the D/FBO cosigns or if no D/FBO either, then the CO/ED may be a cosigner) and delivers the check to the hands of the Treas Sec.

Org Officers signing FSM or refund checks have the usual check signing data to hand plus the FBO’s transfer voucher showing that the Org Main Acct has received funds to cover the checks presented.

The Treas Sec gives his receipt and sees that the allocation check is banked AT ONCE to the Org’s Main Account.

A check signer who fails to verify this point for himself risks signing checks against funds not there or allocated to other purposes.

When the FP check has been cleared and been credited to the Org’s Main Account by the bank, the FP as approved may be activated by Division 3. NOT BEFORE.

Cash-Bills as reported by Div 3 includes sums actually on hand in the 3 org accounts (Main, Reserve, HCO Book) vs Bills due and purchases newly ordered.

Checks drawn or POs activated against an FP for which the allocation check has not yet been deposited or cleared amounts to spending money which is not there and violates earlier policies and falsely affects the org’s cash/bills stats.

Thus a check signer accepting checks without evidence of FBO transfer also risks a falsely reduced Cash-Bills Stat which gives an untrue picture of the org’s actual financial position.

FSM commissions due for payment follow the same principle.

Dept 8 prepares all forms and related data and applies via the Treas Sec to the FBO AT ONCE when such payments are due. The FBO rapidly verifies and immediately issues a check to cover valid FSM commissions due. His transfer voucher lists the names and amounts. FSM commissions are NEVER held up for once-a-week check signing and where the FSM has personally brought his selectee into the org and is due a commission it MUST be paid at once with the FSM Account check given directly into the hands of the FSM by the org.

Org officers signing FSM checks from the FSM Account must see a copy of the FBO transfer voucher, the selectee invoice and a copy of the selection slip before they may sign the FSM commission check.

As it would cause delays on FSM commission payments to require that the transfer from the FBO No. 1 Account be in the org FSM Account before an FSM payment check can be issued, the FSM Account is started with a balance equal to an average of one full week’s commissions. After that, the routine of transferring the amounts for commissions paid each day will keep the account maintained at a level that commissions can be paid with no danger that they will not clear the bank. When the volume of commissions increases in range the org Dir of Disbursements should CSW to the FBO to transfer additional funds to the FSM Account to ensure that its basic level is kept sufficiently high to handle the traffic. The FBO would then transfer the additional funds from his FBO No. 1 Account to the org’s FSM Account. The exact administration of the FSM commission line is covered in HCO PL 5 April 1979RA, NEW FSM (INSTANT PAYMENT) ACCOUNT.

[Note: HCO PL 28 November 1972, FSM Selection Routing Form, in the 1972 Year Book, adds FBO actions of verifying FSM commissions and transferring them to the Org’s Main A/C to the earlier Selection Routing Form as set out in HCO PL 9 January 1967, FSM System Administration in Organizations, Volume 3-page 337, Volume 6-page 334.]

That the FSM Account is handled as above does NOT mean that it may be used as a “float” to pay out FSM commissions on a bypass of the FBO.

A check signer who fails to verify that the FBO transfer has been done before signing checks against that transfer risks signing checks against funds not there or allocated to other purposes.

Cash/bills as reported by Div 3 includes sums actually on hand in the org’s accounts versus bills due and purchases newly ordered.

Thus a check signer accepting checks for FP activation without evidence of FBO transfer also risks a falsely reduced cash/bills stat which gives an untrue picture of the org’s actual financial position.