PUBLIC LIBRARY 863296 R R. THE SUPREME CHAPTER Supreme Archon-J. G. F. Holston, M.D., Zanesville, Ohio. Supreme Vice-archon-D. D. Turnacliffe, M.D., 1526 University Ave., St. Paul, Minn. Supreme Editor-W. A. Fansler, M.D., 100 Andrus Bldg., Minneapolis, Minn. Grand Eastern Praetor-Lawson G. Lowrey, M.D., Danvers State Hospital, Hathorne, Mass. Grand Southern Praetor-J. F. Gamble, M.D., First National Bank Bldg., Houston, Tex. DR. J. G. F. HOLSTON, Chairman. DR. GEORGE R. PRAY. THE COUNCIL ...Zanesville, Ohio. .Harrisonville, Mo. .Danvers State Hospital, Hathorne, Mass. ..Jackson, Mich. THE ACTIVE CHAPTERS EASTERN PROVINCE Alpha-University of Pittsburgh, Pittsburgh, Pa. Zeta-Baltimore College of Physicians and Surgeons, Baltimore, Md. Phi Psi-Medical College of Virginia, Richmond, Va. Chi-Georgetown University, Washington, D. C. Alpha Gamma-Syracuse University, Syracuse, N. Y. Alpha Delta-Medico-Chirurgical College, Philadelphia, Pa. Alpha Eta-University of Virginia, University, Va. Alpha Xi-Harvard University, Brookline, Mass. Alpha Omicron-Johns Hopkins University, Baltimore, Md. WESTERN PROVINCE Alpha Nu-University of Utah, Salt Lake City, Utah. SOUTHERN PROVINCE Rho-Medical Department, Vanderbilt University, Nashville, Tenn. Alpha Beta-Tulane University, New Orleans, La. Alpha Kappa-University of Texas, Galveston, Tex. Alpha Lambda-University of Oklahoma, Norman, Okla. NORTHERN PROVINCE Beta-University of Michigan, Ann Arbor, Mich. Delta-Rush Medical College (University of Chicago), Chicago, Ill. Alpha Zeta-Indiana University School of Medicine, Bloomington, Ind. CENTRAL PROVINCE Lambda-St. Louis University, St. Louis, Mo. Mu-Washington University, St. Louis, Mo. Xi-University of Minnesota, Minneapolis, Minn. Pi-University of Iowa, Iowa City, Iowa. Tau-University of Missouri, Columbia, Mo. Alpha Alpha-John A. Creighton University, Omaha, Neb. Che VOLUME XV MARCH, 1918 NUMBER 1 BOOKKEEPING AND FRATERNITY FINANCES LEROY A. CALKINS, Xi T HE problems of fraternity finances, a thorn in the side of many fraternity chapters, has a solution. Perhaps for the same reason that commercial efficiency is many years behind medical efficiency, fraternity finances are behind other phases of fraternity life. If so, should we not make a mighty effort to put them on the plane where they belong? At no time has such action been more necessary than at present, when the watchword of Maximum Efficiency and Maximum Production has found a firm place in military, scientific, and especially economic phases of life. At Xi Chapter we have found, or perhaps I should say, we are finding the solution of this problem. The system now in operation with us depends, I think, on four primary factors: 1. A careful, shrewd, conscientious steward. 2. A promptly energetic financial secretary, who is always on the job, and who is willing to give all the time necessary to keep his accounts collected, and recorded "right up to the minute." It must be said that the treasurer should discharge his duties just as concisely, in order to make the whole plan highly successful. We have, however, found the old saying, that it is easy to spend money when you have it to spend, to be very true; and, perhaps for that reason, the office of treasurer is more often creditably filled. 3. There must be a spirit of coöperation on the part of the personnel of the chapter. This coöperation consists, not only in a willingness to pay their accounts on time, but in advance, whenever necessary. If this spirit be not existent, it should be cultivated. 4. Lastly, and far from the least important, the chapter must utilize a system of bookkeeping which can be readily understood and well handled by its several successive financial secretaries. It is not to be supposed that every chapter will possess a member capable of handling a complex system of books, nor is such a system at all necessary. In many industrial activities it has been found that the simplest machine which will produce the goods, always in the end gives the greatest results and the greatest satisfaction. The same is true of the fraternity systems of bookkeeping. Our finances are in the best shape they have ever been in; and all due, I think, to the high grade of development of the above four factors. It shall be my purpose, in the course of this article, to outline briefly, in respect to the above factors, our system as now operated. In the first place, our steward, who is now in his second year of service, has every item in the supplies and culinary departments right under his thumb at all times. At present, and for several years past, we have attempted to serve good, satisfactory meals at a standard price of four dollars and fifty cents per week. Under our former system our matron, who was a very capable woman, did all the buying of food materials. Each year we had a deficit of from $200 to $300 on the table. As a result we tried the plan of allowing one man his board for managing this department. To say that the experiment has worked out well is putting it mildly. We have broken even ever since, in spite of the present war prices. This improvement has been due largely to two things. First we feel that our steward can get a little more for every dollar than any other man in the bunch; and, second, with improved promptness of collections he has been able to obtain cash discounts and to buy at wholesale instead of on a credit basis. Several other no less important methods have been developed in his régime. All meals are planned in advance with reference to the number to be served and the cutting of waste to a minimum. The cook and maids are always handled with gloves. Attempts are made to instil in them interest in their work instead of trying to hold them to any iron-clad rules. If any complaints arise they are made to the steward and not to the help. A complete record is kept at all times. Regular borders are easily accounted for. members who take only lunches, or perhaps a meal now and then, have tickets which are punched immediately after each meal in much the same manner as meal tickets are punched in a restaurant. At the end of every month a complete, minute invoice of all materials on hand, of expenses, and of income for the last month, is made out and kept as a permanent record in a file for the purpose. This record is reported at the next chapter meeting so that everyone knows just how many dollars and cents have been gained, or otherwise, during the preceding month. In this way the chapter has a check, if that be necessary, on the steward's success or lack thereof. One other thing, a little removed, has been done. A washerwoman is employed two days a week to do the soft washing for the men living in the house, and the house linen in addition. For this, each man pays a dollar per month, thereby saving each member a considerable laundry expense. This total amounts to more than enough to pay for the whole of the washing, house laundry included. By these methods, and perhaps many others which have not come to my attention, the steward's department has increased in efficiency at least a hundred per cent in the last few years. Those To be right up to the minute in the discharge of his duties has been the policy of our financial secretary, which is perhaps the paramount factor in the successful conduct of that office. This principle cannot be overemphasized nor the policy, in action, overdone. Several details of the work, as developed in our experience, are worthy of mention. In entering charges a strict plan of periodicity should be followed, e. g., a man starting to board in the middle of a month is first charged to the end of that month only. When the first of the next month. arrives all boarders are then charged for the complete month. By this means the secretary is saved considerable time and, also, there is much less danger of making errors in computation. Absolute promptness in entering charges will also be found to be time-saving practice. Collections and deposits are absolutely paralleled, i. e., every cent collected up to the time a deposit is made is deposited at that time. By this method collections and deposits are always balanced. A deposit is also made on the last day of each month so that balances of the whole set of books may be complete at that time. These balances are then promptly made and the summary of the same made on a special sheet (Form V) and sent to the secretary of the local alumni association. Naturally, the most important part of this work, as outlined, is the collections, for which the secretary possesses a special "Aid to Success" in the form of a sheet of paper which he carries at all times in his vest pocket. This paper contains a list of the members with the exact amount owed by each opposite his name. This list is revised as any payments or new charges are made so that it is absolutely correct all the time. No one is then able to run a bluff on the street corner or in the classroom for the secretary always has the "goods" right with him and does not need to consult the books each time. So energetic and persevering have been his attempts at collecting that everyone either digs or ducks when they see him coming. It has been found a good custom to be acquainted with the time each man gets his check from home or elsewhere as it is usually possible to get a greater part of it before it is broken. "Right up to the minute" both characterizes and summarizes the work of this officer. The spirit of coöperation on the part of the chapter personnel is a very large factor in financial success. The boys are always willing to pay in advance when convinced that such is necessary. During the present college year, board and room rent have been paid consistently one month in advance, with the result that every bill has been paid each month and the steward has been able in addition to buy in quantities and at wholesale and to take advantage of all cash discounts. So firmly founded has this habit of advanced payments become that it has almost assumed a competitive basis. Not many years ago, in order for me to be truthful, a few men tried to see just how large an account they could run, and get away with it. We also have a penalty system for delinquents. Delinquency consists in not paying the total bill for March (for example) before March 31. Each delinquent must explain before the assembled chapter at the next meeting why he has been delinquent and give his promise to pay at a definite future date. By a vote of those present this explanation and promise are then accepted or rejected. We have tried to be quite strict in this regard and so far have found it to cause little, if any, ill feeling or hardship to anyone. We had quite a number of such explanations the first few months after the adoption of this penalty, but it did not take long for them to dwindle down to the one or two necessary ones each month. I may add that this is not because our boys have plenty of money, because about twenty of our thirty-five actives are earning a large part of their expenses, and a few, all of their expenses throughout their course. All of these improvements, so far outlined, can be accomplished by any chapter, providing they have a proper system of accounting. This is not easily obtained. We tried several types, each equally insufficient and inaccurate to say nothing of being cumbersome. We now employ the Baker-Vawter System, with some modifications, and find it eminently satisfactory. It is composed of one large loose-leaf book containing five separate types of sheets. I shall list a few entries on each form of sheet, and thus hope to show at a glance what would take many pages to explain: From the foregoing, which may be taken as a month's accounts in miniature, it can be readily seen that the system is an extremely simple one, easily mastered with but very little study. If carefully followed, it presents at the end of a year, accounts which are very easily audited. Form One shows two things: 1. A constant balance between collections and deposits. 2. Each payment itemized exactly as on form two. The totals of these item columns for the month, presents, then, the entries for Part "B" (Receipts) of Form Five. Form Two shows where each member stands financially. Each account is balanced at the end of every month. After graduation each man's account throughout his active membership is thus shown on a very few pages. In our case this is forwarded to the secretary of our Alumni Association where it is filed away as a permanent record. Form Three shows the record of all cash disbursed, everything being paid by check. Each check is listed at the time it is written and the amount listed in the proper column according to the department for which it is spent. The totals of these columns form the items for Part "C" of Form Five. The bank balance is rigidly checked here and the monthly balance entered in Part "D," Form Five. Form Four shows the itemized liabilities with the progress or regress made during the month on each account. The total of the Balance Owing column is entered in Part IV (General Summary) of Form Five. Form Five is a general survey of the month's accounts, all on one page. It shows at a glance the financial status of the Fraternity as a whole, and that of each individual member. A copy of this sheet is forwarded each month to the secretary of the Alumni Association, and filed away by him as a permanent record. The above outline shows in brief the system as we use it. There are also special statement blanks, of which one is presented to each member at the beginning of each month. With this plan, plus a few modifications, a national Phi Beta Pi bookkeeping system could be readily formulated. In that event, the monthly reports might be made out in triplicate; one copy going to the Supreme Secretary, one to the district praetor, and one remaining with the local chapter. Each man's complete account could also be filed, at his graduation, with the Supreme Secretary. It has been suggested that the Supreme Chapter might even wish |