Fraternity-Testvériség, 1968 (46. évfolyam, 1-12. szám)

1968-04-01 / 4. szám

CONTROLLER’S REPORT FOR THE YEAR OF 1967

(Excerpts)

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

1. Consolidated Fund .................................................

2. Sick Benefit Fund .................................................

3. Hospitalization Fund .............................................

4. Retirment Fund .....................................................

5. Over-remittances ...................................................

6. Bethlen Home Contribution .................................

7. Bonds Sold ...............................................................

8. Mortgage Payments ..................-...........................

9. Certificate Loan Payments .................................

10. Trust Fund for Unpaid Claims .........................

11. Rent income .............................................................

12. State Income Taxes Withheld..............-.............

13. Canadian Exchange ...............................................

14. Real Estate Sold .....................................................

15. Saving Withdrawn .................................................

16. Loan to Branch 69 ................................................

17. Credit from U.S.A.............-.....................................

18. Incorrect Deposit on Bank Statement ..............

Total ..........................................................................

Balance from 1966

TOTAL INCOME ....................................................

DISBURSEMENTS

1. General Expenses ..........................................-.....

2. Consolidated Fund ................................................

3. Sick Benefit Fund ..........................................-.....

4. Hospitalization Fund .................................„.........

5. Retirement Benefits Paid .....................................

6. Shortage of Branches .............................................

7. Bethlen Home Dues Forwarded ..........................

8. New Certificate Loans Remitted..........................

9. Bonds Purchased ...................................................

19. New Mortgage Loans .............................................

11. State Income Taxes Forwarded ..........................

12. Real Estate Expenses .......-...................................

13. Investment Expenses .............................................

14. Accrued Interest .....................................................

15. Trust Fund Paid .....................................................

16. Deposit in Canada ................................................

17. Increase & Decrease in Book Value of Bonds

18. Deduction for Incorrect Deposit

(on Bank Statement) .............................................

Total ...........................................................................

BALANCE FOR 1968 .............................................

B) FINAL BALANCE

(U.S.A. and Canada combined)

DEBIT

Cash - Checking Account ..............................

Cash - Saving Account .....................................

Bonds ......................................................................

Mortgage Loans ..................................................

Real Estate Owned ...............-............................

Certificate Loans ................................................

Shortage of Branches ........................................

Petty Cash ............................................................

Loan to Branch 69 ............................................

CREDIT

Consolidated Fund ..............

Sick Benefit Fund ..............

Hospitalization Fund ..........

Trust Fund ..............................

Bethlen Home Contributions

Retirement Benefit Fund ..

D.C. Income Tax Withheld

Income Tax Withheld ..........

Interest on Loan Branch 69

U.S.A.

Canada

........$1,988,098.87

$ 43,027.29

....... 18,012.06

412.60

........ 49,462.13

169.07

........ 20,436.28

—

........ 5,353.24

86.51

........ 25,802.72

571.09

........ 390,379.49

—

........ 736,381.57

40,401.40

........ 102,316.23

—

........ 54,247.64

—

....... 31,160.00

—

........ 1,414.99

—

........ 7,475.00

—

....... 206,302.37

—

........ 16,890.40

—

....... 493.77

—

—

99,475.00

...... ...

212.34

........$3,654,226.76

$184,355.30

86,526.94

14,398.98

........$3,740,753.70

$198,754.28

........$ 501,569.87

$ 24,210.76

........ 1,067.066.62

2,609.51

........ 17,211.72

286.00

........ 47,363.18

310.00

........ 14,477.43

—

....... 5,577.56

87.11

....... 25,113.90

—

....... 127,782.53

—

........ 1,006,013.95

—

....... 649,931.17

100,000.00

........ 1,456.09

—

....... 21,267.66

—

........ 54,209.01

—

....... 7,089.05

—

....... 58,909.24

—

....... 99,475.00

—

....... 3,663.57

—

...... ...

212.34

........$3,708,177.55

$127,715.72

........$ 32,576.15

$ 71,038.56

1966

1967

S 100,925.92

$ 103,614.71

16,890.40

—

. 6,449,874.43

6,433,522.63

6,449,874.43

6,433,522.63

882,168.54

677,169.80

455,606.16

481,072.46

2,707.22

1,407.80

400.00

400.00

880.37

386.60

$14,507,818.16

$14,913,124.78

$14,080,258.73

$14,480,126.14

129,185.58

130,112.52

45,702.87

47,660.89

118,903.05

114,241.45- (81.70)

1,178.21

133,473.15

139,432.00

358.43

317.33

18.05

23.45

—

32.79

$14,507,818.16 $14,913,124.78

II. COLLECTION OF DUES

In general, monthly reports and collections were received in the Home Office on due time and in good order. The overwhelming majority of our branch and section managers deserve the deepest appreciation of the Council. The cost of collection continued to grow as the following comparision demonstrates:

TOTAL BRANCH

HANDLING EXPENSES

IN 1966 ...................................$84,690.70

Permissible under the

Per Capital Basis ................ 69,973.75

OVERPAYMENT ....... 14,716.95

TOTAL BRANCH HANDLING EXPENSES

IN 1967 ...................................$89,824.86

Permissible under the

Per Capita Basis ................. 69,141.17

OVERPAYMENT...................$20,683.69

Beside the evergrowing gap between the actuarially permissible and actually paid handling expenses this has the following shortcomings:

1) Lack of direct contact with the members;

2) Too many collection tools and aids, such as premium notices, receipt- books, branch collection cards, monthly reports, Home Office account cards, addressograph plates, etc. As many postings as many possible source of error.

3) Most of our branch people are not properly trained to cope with the problems of the management and pass the buck to the Home Office whenever the slightest complication presents itself.

Learning from the recent experience of a sister organization, we certainly do not advocate a direct Home Office collection system, but centratization to a lesser degree through sectionizing coupled with through training of the section managers seems the best way out of the present undesirable situation. At the same time monthly reports, receipt-books and premium notices should be abandoned and substituted by punch- cards to establish direct contact with the members. Fewer but well informed managers will render better services to our membership. Changes should be gradually carried out taking into consideration the many aspects of the fraternal life.

While gross assesments still have shown a slight increase during the year of 1967, our net dues income has decreased.

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