[Lnc-business] Functional allocation of expenses

[Tim Hagan]

I'd like to add ten minutes to the agenda for amending the Expense
Allocation section of the Policy Manual. This new wording reflects the
reality of how the functional expense allocations are being done with
the current system. 

Change Section 2.03, Subsection 7) Time Sheets and Expense Allocation to
read: 

Each non-director level employee shall submit their time sheet at least
once per pay period to reflect the number of hours worked. Time sheets
shall be reviewed and approved by the Executive Director prior to the
payroll being submitted for processing with the payroll company. 

On a monthly basis, payroll costs for each employee shall be allocated
to expense categories in proportion with approved time. Where
appropriate, an expense shall be allocated to one category. Expenses
that benefit more than one category or that are general administrative
in nature shall be allocated to a general administrative account in the
general ledger. Those expenses shall then be allocated on a monthly
basis to expense categories in proportion to the allocation of payroll
costs. 

The monthly reports will be used in coordination with the auditor in
preparation of the statement of functional expenses in the annual
audited financials. 

For your reference, the current subsection 7 is: 

Each employee shall submit a timesheet at least once per pay period to
reflect the number of hours worked, allocating such time to
corresponding categories specified in the annual budget. Time sheets
shall be reviewed and approved prior to employee time being entered in
the payroll system. Payroll costs for each employee shall be allocated
to expense categories in proportion with approved time. Separate general
ledger accounts shall be used for allocated payroll costs. 

Where appropriate, an expense shall be allocated to one category.
Expenses that benefit more than one category or that are general
administrative in nature shall be allocated to a general administrative
account in the general ledger. Those expenses shall then be allocated on
a monthly basis to expense categories in proportion to the allocation of
payroll costs. Separate general ledger accounts shall be used for
allocated general administrative costs. 

Monthly financial statements shall separately report allocations of
payroll and overhead to corresponding categories. 

---
Tim Hagan
Treasurer, Libertarian National Committee