The FBO collects the cash from Div III.

He verifies what he has received.

He gives a receipt for it.

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

He makes out a bank deposit slip.

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

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.

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.

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

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

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

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

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).

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

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.

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

Div III Collections have to do with collecting Qual credit invoices and Advance 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.

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.

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.

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.

NO OTHER BANK ACCOUNTS.

[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.]