Chapter 8: House Finances
General
- The house financial systems will be structured to emphasize continuity of the cooperative over time, simplify understanding of the financial obligations by members and prospective members, and simplify procedures for calculating rebates and assessments.
- Periods for Closing: Books shall be closed at the end of Fall/Winter and Spring/Summer contract periods. Savings on all except non-re-batable charges shall be rebated and losses assessed. Upon completion of a house closing the ICC shall submit corrected copies of the income and expense statement of each house to the respective house for posting.
House Accounting
- House Bookkeeping Standards: As stated in Bylaw 6.3, “The co-ops [houses] shall be responsible for ... H) maintaining house books according to standard ICC operating procedures...” Therefore, the Finance Committee may adopt such procedures as they see necessary to ensure the accuracy and timeliness of House Finances. See Finance Committee Policies for Standard of Bookkeeping for House Treasurers.
- Reimbursement of Out-of-Pocket Expenses by Members: Houses shall repay members for out-of-pocket expenses for which receipts are provided (e.g., urgent ingredients for a meal, eating utensils urgently needed by the house) by issuing checks.
- House Bank Account: The finance office will maintain a bank account for each house. The signatories to this account shall be the finance staff and the House Treasurer.
- House Budget: The House Treasurer, with assistance from other house officers, shall be responsible for compiling a house budget for the upcoming contract period. The house budget must be approved by the house in accordance with house policies. Failure by the Treasurer to submit a budget to the ICC Finance office within 21 calendar days of the start of the fall and winter contract period can result in a fine levied upon the house. The initial amount of the fine is $30 for missing the deadline and the total fine will increase by $3 for each business day that the budget is delayed, with a total fine cap of $99. If a Treasurer fails to provide a house approved budget by established deadlines, the Vice President for Finance will send email notification to the house’s President and Board Representative regarding the House Treasurer’s fine, the house will be given the previous year’s budget plus 5%, and the staff may cease transfer of funds to house accounts.
- Periodic Budget Review: The house treasurer is responsible for ensuring the house budget is set at an appropriate amount. To ensure this after the initial budget is created the house treasurer is required to review their house budget at the beginning of January for it to be effective in February. If there are any issues with the budget those problems should be brought to the finance office for any adjustments that need to be modified before January 21st.
- Treasurer Reports: The House Treasurer is responsible for reporting expenses incurred by the house that are covered by the house budget. The house expense reports are to be submitted to the ICC Finance staff by the 15th of each month and on a monthly basis. Failure to submit expense reports to the ICC Finance staff can result in a fine levied upon the house Treasurer. Treasurers will be given a grace period of 14 days for their first missed deadline per fiscal year, and will be fined $25 if the report is not submitted within that grace period. Further missed deadlines will incur a fine of $5 per day that the report is delayed, with a maximum cap of $50. If a Treasurer fails to provide monthly treasurer reports by established deadlines, the Vice President for Finance will send email notification to the house’s President and Board Representative regarding the house Treasurer’s fine, and the staff may cease transfer of funds to house accounts until the treasurer is up to date on reports.
- Receipts: To reconcile the house spending each month, treasurers must collect and provide either paper or electronic receipts for each purchase made by the house to the Finance Department.
- The first missing receipt of the contract period will result in a warning to the house. Any subsequent missing receipts will result in a $25 house fine that can be levied onto the treasurer or onto whomever lost/did not provide the necessary receipt.
- If any member, including the house treasurer, fails 3 times to provide a receipt for any house credit card transactions, then the member will lose house credit card privileges for an amount of time determined by the Finance Committee and the largest amount spent between the three transactions will be fined directly to the member.
- Any reimbursement check written by the treasurer must have a corresponding itemized receipt with the same check amount, or the treasurer will be fined $50.
- Each house treasurer has a grace period of one month after the completion of treasurer training before the fines are enacted. It is the responsibility of house treasurers to notify house members of the standing rules regarding receipts.
- Any member fines will be discussed and voted on by the Finance Committee via a certification process outlined in the Finance Committee Policy.
- Receipts: To reconcile the house spending each month, treasurers must collect and provide either paper or electronic receipts for each purchase made by the house to the Finance Department.
- House Variance Reports: To ensure that house treasurers monitor spending in their houses and that members are being charged an accurate monthly amount, treasurers are required to complete monthly variance reports.
- Monthly Variance Report: The house treasurer is responsible for reporting monthly variance statements to their respective house at house meetings. The Finance Committee will provide an excel spreadsheet for generating monthly variance reports. The variance reports are important because they provide houses with information on how much they are spending relative to what they budgeted.
- Treasurer Notifications: The house treasurer must send out a notification (e.g. Email) once a month between the 2nd and 6th informing any housemate that has not yet paid their charges that late fees will be applied on the 6th.
Member Accounts
- Deposits of Member Payments: All member payments will be deposited in a central account.
- Distribution from Central Account:
- At the end of each fiscal month, the house treasurer will prepare a report of amounts spent, including a reconciled checking account; the report will be supported by documentation for all checks.
- The ICC will reimburse the house for the total amount reported spent for the previous fiscal month.
- The ICC finance office will send a monthly report on member charges charged and paid to the house treasurer, house president and Finance Committee.
- A house may choose to pass on certain incidental charges to individual members (for example, missed training fines, roof policy violation fines, missed receipt fines, etc.).
- Payments by Members Boarding at Houses Other than Their Rooming House: Members at all non boarding houses shall pay both their room and board charges at their rooming house. Distribution of boarding charges to the appropriate house shall be handled by the office; boarding charges shall be deducted from the amounts deposited by each house in the central account after money due to the ICC is deducted. Boarding houses affected by this shall receive monthly statements detailing which members had their boarding charges paid for by this method.
House Debts at the End of a Period
The ICC implements the following bad debt system:
- Room and Board Collection Policy: The ICC will attempt to collect any debt over the share amount left by a departing member for 12 months, after which it will be written off as bad debt will be and divided equally among all ICC members.
- Financial Periods for Expensing Debts: Fall/Winter and Spring/Summer are two separate periods. Each period is protected from the past periods’ bad debt, as each period is expensed for its entire debt.
- Assessments in Excess of the Share Deposit: If a house receives an assessment in excess of the share deposit for a financial period, the uncollectible amount of the assessment shall be considered a loan from the ICC. (The uncollectible amount of the assessment is the total debt owed to the house less the amount owed by current ICC members less the amount collectible from share deposits.) Until this loan is paid in full, the ICC shall receive as payments on this loan:
- Any debt collections from former members of the house in the time period in question
- $1 per member per month from future members of the house
No Shows
If someone fails to claim their contracted housing assignment at the beginning of any contract period, or lives in the ICC for 2 weeks or less while having a contract, the person is liable for all house and ICC charges until replaced. However, in the event of nonpayment, the house will not be responsible for the ICC charges. The ICC Staff will be responsible for collecting these charges.
House Amenities Fund
- Money collected by the ICC from the houses for amenities funds shall be held in trust by the ICC for the house as the House's Amenities Funds. Money shall accrue to the funds from:
- Budgeted house amounts and other house revenue as determined by the house.
- For King, money paid by former members on accounts which have already been expensed as bad debts.
- Spending Guidelines: A house may spend their amenities funds on any physical assets for the house. Physical assets are non-consumable items such as entertainment equipment, interior decorating and additional physical assets to the house.
Landscaping
Houses are eligible for landscaping funds as determined by Maintenance policy.
Members with Debts
- Late Fees: On the 6th of the month, any member who carries a balance will be assessed a $15 late fee. The fee shall be waived for a member who is on an approved payment plan. The Finance Committee may waive this fee at their discretion, as outlined in the Finance Committee Policy. All money resulting from late fees shall be recorded as ICC late fee income and shall be used to offset the cost of operating the ICC.
- Payment Plan Restriction: Plans must adhere to guidelines outlined in the Finance Committee policy.
- Missed Payments for Members on Payment Plan: If a member misses a payment in their payment plan by more than three business days without prior notification to the Vice President for Finance and the Finance Department, they shall be fined $15 and the ICC shall resume the eviction procedures. The eviction process for the member will resume where it was last left off, in terms of days and tier of eviction.
- The Vice President for Finance and Finance Coordinator Lead will be responsible for follow up on payment plans.
- Eviction Overview, Procedures, and Guidelines
- The eviction procedure begins on the 6th day of missed payment and continues until 51 days after a missed payment. If a member in the eviction process lowers their balance to $0, any future debt would begin the eviction process from day 1 tier 1. If a member is evicted, their debt will remain their responsibility. Anyone fully evicted from the ICC will be barred from signing any future contracts, and any existing or upcoming contracts shall be null and void.
- The ICC Acts for Members in Protecting them from Accumulation of Excessive Debt. If the member does not pay by the 5th of the month, the ICC shall begin eviction procedures, as outlined in SR Chapter 10. If the eviction process proceeds to legal action, any costs shall be assessed to the member. The house member can stop the eviction procedures in two ways:
- By making payment to reduce their debt to the amount or
- By having a payment plan approved by the Finance Committee.
- Eviction Tiers: The eviction process shall consist of 3 tiers and will continue until the member takes an action:
- Tier 1: 15 DAYS AFTER NO ACTION: The notice to quit is posted on the member’s rent manager account. The House Treasurer notifies the member and explains the ICC eviction tiers and the ways to avoid eviction if unable to pay full amount.
- Tier 2: 36 DAYS AFTER NO ACTION: The member is assessed a late fee of $15. The notice to quit is filed with a lawyer and the court eviction proceedings begin. The member is notified by the House President[s], over email and in person, with the fact that in two weeks there will be a full eviction. The Housing Department must also contact the member to notify them that after 51 days (15 days from the notice) there will be a full eviction from the residency if no action is taken.
- Tier 3: 51 DAYS AFTER NO ACTION: After 51 days of no member action, the ICC General Manager is responsible for providing the member a 7 day notice before filing for eviction on the basis of non-payment. After the 7 days they will then obtain a Landlord/Tenets Summons from the District Court, and have the House President give them the summons. The ICC General Manager, and/or lawyer will be responsible for attending the summons at the court, and should collect the prior emails from the House Treasurer and House President[s] involving notifications of eviction tiers. If the court allows eviction, the member will have the designated time to remove their personal items from the property. If the member fails to remove their personal items from the property after 3 days beyond their designated time, the ICC General Manager or designated employee will coordinate with a county deputy to remove the member’s personal items to a location where they can later be collected. In the case that a deputy does have to come to the house, the House President[s] or Board Representative[s] will be responsible for notifying the house of the day and time of their arrival. Any legal and/or other expenses incurred during the Tier 3 eviction process will be the responsibility of the evicted member.
- Former Member Debt: As the ICC continuously strives to provide affordable housing, it is imperative that we stay financially responsible. As such, the Finance Coordinator Lead will present cases of former member debt to the Finance committee. The Finance Committee, working alongside employees at the ICC, shall collect the debts of former members in any way seen fit. Any policies for former member debt collection will be outlined in the Finance Committee Policy.