Fraternity-Testvériség, 1967 (45. évfolyam, 2-12. szám)
1967-04-01 / 4. szám
CONTROLLER S REPORT FOR THE YEAR 1966 (Excerpts) Mr. President, distinguished Members of the Supreme Council: I give account on the activities of my office grouped according to the spheres of duties assigned to the Controller. I. ACCOUNTING A) INCOME AND DISBURSEMENT BY FUNDS INCOME U.S.A. CANADA 1. Consolidated Fund .................... $2,070.006.77 $ 34,137.87 2. Sick Benefit Fund 18,444.60 414.33 3. Hospitalization Fund 48,218.12 263.04 4. Retirement Fund ....................... 20,069.73 — 5. Bethlen Home Contributions 26,518.60 741.60 6. Overremittances ......................... 12,746.62 299.65 7. Bonds Sold ........................... 387,555.61 — 8. Mortgage Payments ................. 1,033,724.49 2,294.04 9. Certificate Loan Payments..... 128,878.50 — 10. Trust Fund for Unpaid Claims i 57,466.62 5.007.84 11. Interest Refund on Bank Loan 145.83 — 12. Bank Loan ................................. 13. Rent Income ............................... 14. State Income Taxes Withheld 15. Canadian Exchange .................. 190,000.00 39,880.00 1,307.69 4,268.75 16. Advance for European Trip 4,648.00 — 17. Miscellaneous Income 435.97 — 18. Credit from U.S.A....................... — 59,268.75 Total ............................................. $4,044,315.90 $102,427.12 Balance from 1965 ........... 96,346.84 6,657.73 Total Income ............................... $4,140,662.74 $109,084.85 DISBURSEMENTS 1. General Expenses ....................... $ 480,966.38 $25,180.04 2. Consolidated Fund ................... 1,256,378.30 10,522.94 3. Sick Benefit Fund 15,289.84 102.00 4. Hospitalization Fund 48,232.70 290.00 5. Retirement Benefits Paid ....... 9,650.60 — 6. Bethlen Home Contr. Forwarded 27,573.50 — 7. Bonds Purchased ....................... 724,140.20 — 8. Accrued Bond Inter. Purchased 4,454.51 — 9. New Mortgage Loans ............... 808,669.88 58,000.00 10. Short of Branches ..................... 14,254.77 290.89 11. New Certificate Loans Remitted 118,927.84 300.00 12. Trust Fund Paid 38,493.19 — 13. Bank Loan Repaid ..................... 190,000.00 — 14. Improvements of Real Estates .. 187,907.21 — 15. Real Estate Expenses ............... 25,478.06 — 16. Investment Expenses ................. 35,181.78 — 17. New Bank Deposits ................... 656.67 — 18. State Income Taxes Forwarded 1,190.32 — 19. Deposit in Canada ..................... 59,268.75 — 20. Interest Expense ....................... 136.81 — 21. Advance for European Trip .... 4,648.00 — 22. Loan to Branch 69 ................... 1,000.00 — 23. Deer, by Adjust’nt in Book Value-Real Est......................... 1,556.43 — 24. Miscellaneous Disbursements .... 80.06 — Total ............................................ $4,054,135.80 $94,685.87 Balance for 1967 ....................... $ 86,526.94 $14,398.98 B) FINAL BALANCE (USA and Canada combined) DEBIT: 1965 1966 Cash—Checking Account .......$ 103,004.57 $ 100,925.92 Cash—Saving Account ........... 16,233.73 16,890.40 Bonds ........................................ 6,291,780.53 6,598,365.12 Mortgage Loans ....................... 6,589,223.08 6,449,874.43 Real Estate Owned ................. 694,261.33 882,168.54 Certificate Loans ..................... 465,256.82 455,606.16 Short of Branches 1,127.77 2,707.22 Petty Cash ................................. 400.00 400.00 Loan to Branch 69 ................. ........ 880.37 $14,161,287.83 $14,507,818.16 CREDIT: Consolidated Fund $13,771,334.47 $14,080,258.73 Sick Benefit Fund 125,718.49 129,185.58 Hospitalization Fund 45,744.41 45,702.87 Trust Fund 94,921.78 118,903.05 Bethlen Home Contributions 231.60 (81.70) Retirement Benefit Fund 123,054.02 133,473.15 D. C. Income Tax Withheld 241.06 358.43 Ir.come Tax Withheld ............. 42.00 18.05 $14,161,287^3 $14,507,818.16 We closed our books at the end of every month, and forwarded a Trial Balance to the Accountant. Keeping separate books, payroll and budget for the Canadian operation meant additional work for my office but with the new employee hired during the past year we coped with this task without difficulty. II. COLLECTION OF DUES The percentage system continued to be a great help in handling dues at the branches. Due however to the difference in actuarial basis between the present and previous systems (Percetange and Per Capita) we have to calculate deduction figures on the old basis also in the Home Office which detracts from the advantage of the procedure. Branch Handling Expenses in 1965 $80,940.47 Permissable on the Per Capita Basis 69,930.57 Overpayment ...............................................................$11,009.90 Branch Handling Expenses in 1966 $84,691.27 Permissable on the Per Capita Basis 69,973.75 Overpayment .................................................................$14,717.52 I wish to call your attention to two facts: a) The cost of collection increased again by $3,750.80 while the number of premium-paying certificates decreased; b) The gap between the actuarially permissable and actually paid branch handling expenses widened. If this trend continues we soon might reach a point where actuarial considerations will not permit further raise in branch deductions. The pressure for such raises is growing nevertheless, and we probably cannot solve this problem without introducing fundamental changes in our collection method itself. Our NET DUES INCOME has shown further growth. U.S.A. CANADA TOTAL Net Dues Coll, in 1966 $1,368,692,84 $30.867.12 $1,399,559.96 Net Dues Coll, in 1965 1,363,519.64 9,419.25 1,372,938.89 Increase in 1966 $ 5,173.20 $21,447.87 $27,621.07 Increase in 1965 ............... 16,636.00 9,419.25 26,055.25 While the combined income slightly improved the growth rate has shown diminishing tendency in the U.S.A. Beside insufficient amount of new business the ever-growing number of non-premium paying certificates are primarily responsible for the decline in assessments and slow growth of dues. Certificates Ins. in Force Non-Premium Paying on Dec. 31, 1965 4,448 4,470,339 Non-Premium Pacing on Dec. 31, 1966 5,016 5,104,908 Premium-Paying on December 31, 1964 33,089 Premium-Paying on December 31, 1965 32,847 Premium-Paying on December 31, 1966 31,664 The overwhelming majority of our branch managers performed a highly commandable job in collecting dues. Prepaid dues exceed arrearages by $73,467.50, thanks to the untiring efforts of our field people. 10
