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(Added December 30, 2007)
Members of the Association (other than Honorary Life Members, Honorary
Friends of the Association, Friends of the Association, and Honorary
Associate Members) pay annual membership dues. These funds pay for
activities of the Association, e.g., web site, newsletters, memorials,
bereavement activities. Some members pay their dues beyond the year required
to remain active. Members are encouraged to do this, because it reduces the
workload of the Treasurer and the Roster Chairman. However, the “dues paid
in advance” increases the current assets without recognizing the
implications of these advance dues, i.e., to deliver certain services in the
future.
Commencing with Fiscal Year 2007, a reserve will be set aside in the assets
of the Association to recognize that the Association has an implicit
obligation to deliver newsletter and web site services in future years to
the members who have paid “dues in advance.” The amount of this reserve
shall be adjusted each year in December, based on membership data at the end
of November. The amount reserved shall be determined by the current annual
costs of the newsletter and web site activities of the Association, e.g.,
for 2007 the amount shall be $2.50 for each member-year of advance dues. The
Treasurer will adjust this reserve, upward or downward, and reflect the
status in the financial records of the Association.
- Definitions:
• "Association" shall mean the C-7A Caribou Association.
• Categories of membership are as defined in the Association By-Laws.
- The Roster Chairman shall provide the Treasurer with the number of
member-years of “paid in advance” dues.
- The Treasurer shall adjust the reserve based on current data by
increasing or decreasing the “Advance Dues Liability” account in the
General Ledger of the Association to equal the value of the liability on
30 November of the current year. This value shall be determined using
the following formula:
| Advance Dues Liability
= |
[ the sum of current annual
website expenses +
the sum of current FY newsletter/flyer expenses
/ # active, dues paying members]
* (the sum of member-years of advance dues) |
Example: If current annual website expenses = $200, and
current FY newsletter/flyer expenses = $2000, and
# active, dues paying members = 800, and
the sum of the member-years of advance dues = 900
Then the Advance Dues Liability = $2,475.
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