Financial Manager's Checklist

Accounting System

All Financial Managers are required to use QUICKBOOKS as their accounting software. You will be required to share financial information with the Assistant Director forStudent Management and the residents of your house on a regular basis. See New Financial Protocols for more details.

SOS Payroll Service

All Row houses that employ a cook must utilize the SOS payroll service. Each pay period the SOS will distribute the paychecks of all cooks, taking into account the proper withholding for FICA, state, and federal taxes, State Unemployment (SUI), and State Disability Insurance (SDI). Payroll Deposits are to be paid by the second Friday of each quarter. For more information about SOS, please contact Nick Peters at (nikolas@best.com) or (650) 723-3103.

Billing Individual Members

Notify each resident or Eating Associate in writing, of the actual amount owed for board (and rent for fraternities). Allow a reasonable (4-6 weeks) advance notice of the amount and date the house bill is due. The earlier you notify your residents, the more successful you will be in collecting the house bill. See Guidelines for Collection of Rent/Board Bills.

Budget Preparation and Reporting

Prior to each quarter establish a quarterly budget in consultation with your house staff. Your residents should approve the final budget. A copy of your budget is to be submitted to the Assistant Director for Student Management at the Row Office at the beginning of each quarter. Present a complete financial report at each house meeting. Be prepared to review financial records with the Assistant Director for Student Management or house residents, if requested.

Collection of Bills

Let the residents of your house know what your policy will be regarding extensions for payment of house bills. When payment is past due it is your responsibility to let the resident know that they are delinquent and that you reserve the right to place a registration hold for future quarters if an agreeable payment plan is not reached. Some flexibility is recommended since some students have limited control over the timing of the receipt of certain income sources. Never allow debt to accrue for more than one quarter without placing a registration hold through the Row Office.

Deposit for Cleaning/Damages and Keys

Collect a deposit from each resident of your house to cover potential bills for cleaning/damage or key replacement. The key deposit will be returned when the resident's keys are returned at the end of the school year or when they move out of the house. Most houses collect a deposit of $50 to $100 along with the Fall Quarter board bill.

Filing Tax Returns

Only those houses which are incorporated, have their own Taxpayer ID# and file tax returns annually, are allowed to have an interest-bearing checking account. Organizations that incorporate as nonprofit organizations are not automatically exempt from tax. The organization must apply for tax exempt status. Once the application for tax exemption has been approved, each year the house must file a Federal form 990. In the majority of houses, no tax return filing is required. The basic rule of thumb is, IF YOU ARE NOT INCORPORATED AND YOUR GROSS RECEIPTS ARE NOT MORE THAN $25,000 IN ANY GIVEN YEAR, THEN YOU DO NOT NEED TO FILE A FORM 990. Failure of your house to follow basic tax laws could result in the loss of your residential program and could mean serious problems for Stanford University as a non-profit organization. Copies of all tax returns filed by houses should be submitted to the Assistant Director for Student Management.

Handling of Funds

Each house (except co-ops) may have two checking accounts, a house account and a kitchen account. Your checking account should be set up to accept at least two different signatures in case the main signator is unable to sign. Signature cards are required by all banks for checking accounts. Determine what other house officer will have signature authority. Consider requiring two signatures on all checks over a certain amount. Your house policy on dual signatures should be on file in the Financial Manager's Binder.

House Debt and Reserves

House debt is not allowed to be carried forward from one year to the next. If debt remains at the end of the academic year, all residents from the previous year will be responsible for paying a portion of the total house debt through the University NSI bill. Members of Fraternities and Sororites remain collectively responsible for past debts of their chapters.

Each house should carry a reserve of 10% of their Fall Quarter Budget. This money should allow for start up funds each quarter before board bill income is received and provide a buffer in case of emergencies. Any house without such a buffer should contact the Assistant Director for Student Mangement. Houses with a reserve much greater than 10% need to develop a plan for that money.

House Funds

The University Alcohol Policy states that the unlawful distribution of alcohol is prohibited on the Stanford campus, this includes Stanford undergraduate residences where the majority of the residents are not California's legal drinking age of 21. If house funds are to be used toward the purchase of alcohol, the University Alcohol Policy must be abided by in all instances.

In keeping with the definition of a non-profit organization, all excess house funds must be channeled back into the operation of your house and contributions to charitable organizations are not allowed.

Quarterly Financial Reports

You will be required to provide the Assistant Director for Student Management a financial report at the end of each quarter which shows your actual vs. expected income/expenditures and explaining any major variance. In addition you will be required to fill out an End Quarter Report which shows your accounts receivable, accounts payable and remaining balance in your account.

Quarterly Group-Billed Rent (Fraternities and Chi Theta Chi)

Group-billed rent is due the last day of the first month of each quarter. The dates for the 2001-2002 academic year are October 31 2001, January 31, 2002, and April 30, 2002 and July 31, 2001 (for Sigma Chi and Chi Theta Chi only). The bill will be mailed to your house by the Controller's Office and the rent payment should be returned to the Controller's Office using the envelope enclosed with the rent bill. The rent bill is sent as a courtesy notice and regardless of whether or not you receive the rent bill, your rent is due on the dates specified above. Click here to find out your rent rate for this year.

Receipts

Always keep receipts for all house purchases. If your policy is to reimburse residents for house purchases, always require a receipt. Let your residents know what your reimbursement policy will be. You may wish to establish a petty cash fund for reimbursements of $50 or less.