References:

• HCO PL 29 Jan. 71 Rev. 27 Oct. 82 Finance Series 1R FLAG BANKING OFFICERS

The FBO collects the cash from Div III.

He verifies what he has received.

He gives a receipt for it.

The FBO collects the cash from Div III.

He writes it all down in his records, making a total list of what the monies are.

He verifies what he has received.

He makes out a bank deposit slip.

He gives a receipt for it.

He goes to the bank and he deposits the money in his (Company) No. 1 account.

He writes it all down in his records, making a total list of what the monies are.

He makes out a bank deposit slip.

Div III of the org passes on and finalizes its FP and hands it via Bu III to the FBO who verifies it by production for himself.

He goes to the bank and he deposits the money in his FBO No. 1 Account.

The FBO writes a transfer cheque from his (Company No. 1) bank account and just transfers the FP amount to the org’s bank account (Main Account).

The org’s own officers are signatories on their own bank account.

Exec Council of the org passes on and finalizes its FP and hands it to the FBO who verifies it by production for himself.

The FBO and the A/G of the org are signatories on the FBO account.

The FBO writes a transfer check from his FBO No. 1 Bank Account and just transfers the FP amount to the org’s bank account (Main Account).

The FBO has a second bank account (Company No. 2) to which he transfers money for International Management expenses.

The org’s own officers are signatories on their own bank account.

He transfers money from the first (Company No. 1) account to Management (not org) Reserves.

The FBO and the Finance Enforcement Officer of the org are signatories on the FBO account. Where there is no Finance Enforcement Officer, the D/FBO or CO or ED are cosignatories.

The FBO keeps an Invoice-Disbursements system on his No. 2, Flag Expense, account.

The FBO has a second bank account (FBO No. 2) to which he transfers money for management expenses.

The FBO never spends any money out of his No. 1 account. Money goes into it and is transferred out of it. Only transfer cheques are drawn on it (to Management Reserves or to Org Main Account).

He transfers money from the first (FBO No. 1) account to SO (not org) reserves.

The FBO keeps enough float in his No. 1 account to cover bounced cheques. Cheques bounce ONLY on that account.

The FBO keeps an invoice-disbursements system on his No. 2 Account.

The minute a cheque bounces or fails to clear the FBO reports the drawer for false report and personally contacts him to establish whether the cheque should be re-presented or another cheque drawn.

The FBO never spends any money out of his No. 1 Account. Money goes into it and is transferred out of it. Only transfer checks are drawn on it (to SO reserves or to Org Main Account).

This transaction does not go through the org Div III and is not entered on the org’s books. The org is left in the position of the customer’s friend. It is the FBO who is the customer’s devil.

The FBO keeps enough float in his No. 1 Account to cover bounced checks. Checks bounce ONLY on that account.

No Div III is ever touched, approached or harassed on bounced cheques by an FBO. It is an offense for him to do so.

The minute a check bounces or fails to clear, the FBO reports the drawer for false report and personally contacts him to establish whether the check should be represented or another check drawn.

Div III Collections have to do with collecting Qual credit invoices and Advance Payments and any other credit advanced by the org.

This transaction does not go through the org Div III and is not entered on the org’s books. The org is left in the position of the customer’s friend. It is the FBO who is the customer’s devil.

Div III collections have to do with collecting Qual credit invoices and advanced payments and any other credit advanced by the org.

Finance Banking Officer (International Management) Account No. 1. Signatories: FBO of the org and A/G of the org as well as International Officers. No org officers. Transfers only. Requires both signatories.

Finance Banking Officer (International Management) Admin Expense Account. Account No. 2. Signatories: FBO of the org, A/G of the org and International Officers. No org officers. Int Management Expenses, no org expenses. Requires both signatories.

FINANCE OFFICE (org name) NO. 1 ACCOUNT. Signatories: FBO of the org and Finance Enforcement Officer of the org as well as international officers. No org officers except as needed in the absence of the Finance Enforcement Officer and D/FBO. Transfers only. Requires both signatories.

Org Main Account. Receives only monies transferred from FBO Account No. 1, never from Cashier. Usual org signatories. The allocation received from the FBO goes into this account. All Org Expenses, salaries, etc are paid from this account.

FINANCE OFFICE (org name) NO. 2 ACCOUNT. Signatories: FBO of the org, Finance Enforcement Officer of the org and international officers. No org officers except as needed in the absence of the Finance Enforcement Officer and D/FBO. Management expenses, no org expenses. Requires both signatories.

Org Reserve Account. Receives any funds like building fund org is holding as reserves for the org as saved from allocations. Held by and signed on by the org officers.

ORG MAIN ACCOUNT. Receives only monies transferred from FBO Account No. 1, never from Cashier. Usual org signatories. The allocation received from the FBO goes into this account. All org expenses, salaries, etc., are paid from this account.

HCO Book Account. Used as per Pol. Any monies belonging to it collected by FBO, into his No. 1 Account and transferred to HCO Book Account by him. Usual org signatories.

ORG RESERVE ACCOUNT. Receives any funds like building fund org is holding as reserves for the org as saved from allocations. Held by and signed on by the org officers.

NO OTHER BANK ACCOUNTS.

HCO BOOK ACCOUNT. Used as per policy. Any monies belonging to it collected by FBO, into his No. 1 Account and transferred to HCO Book Account by him. Usual org signatories and D/FBO who is the holder of the checkbooks.

[Note: See also HCO PL 4 December 1972R, Issue II (revised 24 January 1973), FBO & Treasury Financial Reports, which amends the above Policy Letter. A copy can be found in the 1973 Year Book.]