NESFA Treasury Procedures: Automatic Monthly Transactions

There are a number of transactions which are done monthly and which the Treasurer needs to initiate:

• NESFA-MCFI rental donation: MCFI pays NESFA on a voluntary basis a donation each month which is calculated to be a fair rental for the user of NESFA's facilities. As of January 2003 it is $175. Debit the MCFI cross-charge account and credit IN-Donations.
• Boskone CH rental: Boskone pays NESFA $300/month for its use of the Clubhouse in accordance with SR 2.7(7)(b). Debit the AS-Bnn cross-charge account and credit the IN-Boskone account. Because this is a purely internal transaction, this is not rental income for tax purposes. The Boskone CH rental is always to the Boskone held that fiscal year (see SR 2.7(9)), so from 1 May 2002 to 30 April 2003, the CH charge is to Boskone 40 held in February 2003, and on 1 May 2003 it switches to B41 which will be held in February 2004.
• Building depreciation: We are depreciating the building and major improvements to it on a 20-year straight-line basis. The monthly amount is currently $640. Debit EX-Build Dept and credit LI-BuildingDepr.
• Equipment depreciation: We have an unusual (though acceptable) scheme for depreciating equipment: We depreciate by 3% of the depreciated total each month. This is roughly equivalent to a 3.5-year depreciation schedule, but avoids us needing to keep track of individual items purchases times and prices. To do this transaction:
  • Set the Peachtree accounting period to the month in question
  • Run the report "Depreciation detail" in the "Financial Statements" section of the Peachtree reports
  • This will provide a depreciated value for all equipment. Compute 3% of that
  • and credit LI-EquipDepr and debit EX-Equip Depr

In each case, the Treasurer must create appropriate paperwork to document the transaction and file it.