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URGENT

FIGURING OUT THE 1 % LEVY AMOUNT NOVEMBER, 2000

We were not aware of how many different ways clubs figure out the 1% levy amount, and we should have printed examples of spreadsheets etc in the SasKIN, and put an example and explanation in with the Red Forms - this will definitely be a recommendation we make to Curtis and Sharon!

• Basically, 1% of each Service Project (fundraiser) that makes money (Revenue/Income minus Expenses) goes to the District 1% Levy Account-this is the NET SERVICE DOLLARS RAISED, PER PROJECT
• Most clubs transfer the allowable 15% from each service project that makes a profit, to their General Account, calling it a 'management fee' or 'transfer from Service to General'-clubs need to be reminded how to do this, too!
• Therefore in the end, the 15 % is divided, where 14% the club keeps, and the other 1% is the 1% Levy that gets sent in. (you could also take one-fifteenth (1/15th) of the 15% amount, and that is the 1% Levy amount-if the books are correct!)

THE 1% LEVY AMOUNT IS NOT :

• NOT the Total Service Dollars Income, minus Total Expenses (as that would include projects that lose money, and would also include donations the club made)
• NOT the Opening Account Balance, plus Total Income in Service Account, minus Expenses
• NOT 1% of the 15% transfer
• NOT to include projects that lost money

So, once again - figure out the Service Projects/fundraisers that made money (Income is more than Expenses, project by project) and add up, which is total Net Service Dollars. Multiply by 1% (0.01) and send as the 1% levy amount. This comes from the Service Account if no 15% transfer is made to the General Account, or it comes from the General Account if the 15% was done. Note, the 15% transfer must show up in the Expense column of the Service Account, and as an Income in the General Account, and these two figures must be the same!

If you have any questions or comments, please call Ivan or myself.

Thanks for helping us out!! Thanks again for KINve$ting In Our Communities!

Rosanne Robin 862-4926 or Ivan Stankowski 862-5425