22 ' BULLETllsr 1*78, U. S. DEPAETMEISTT OF AGRICULTURE. 



14. Notice of meetings should be regulated by the by-laws. Notice 

 by publication and through the mail are the most common and best 

 methods. 



15. By-laws should contain measures of safety to regulate the 

 handling of all organization funds. 



16. Surety bond should be had for all employees handling funds. 



17. A good system of filing for correspondence is essential for every 

 office. 



18. Proper filing of accounting records is necessary, in order that 

 instant reference maj be afforded and that valuable information 

 regarding claims, accounts receivable, etc., may not be lost. 



19. A regular system for safeguarding the cash should be adopted 

 by all officers, and adhered to strictly. 



(a) All entries of cash should be explicit, and items supporting 

 such entries should be filed so that they are accessible for reference 

 and verification. 



. (b) No entries should be recorded in the cashbook which do not 

 relate to cash. 



(c) The full receipts of each day should be deposited in the bank, 



(d) All canceled checks should be filed in nmnerical order. 



(e) Duplicate checks should always be covered by indemnity bonds. 

 (/) Beconciliation should be made each month between cash or 



check register and bank pass-book balances. 



(g) Permanent record of these reconciliations should be made. 



(h) Checks, sales slips, receipts, etc., should be numbered with a 

 numbering machine. Any which are spoiled should be marked void 

 and left in the book. 



(^) A regular sj^stem should be used for the acknowledgment of 

 all cash sales, or miscellaneous cash items received. 



20. All petty cash payments should be made on the Imprest 

 System. 



21. A good plan for handling expense items is to carry a general 

 expense account, making a segregation in a columnar book. 



22. The wear and tear on an asset is a cost of doing business, and 

 the true condition of a business is not shown accurately upon the 

 books unless provision is made for depreciation in the value of the 

 assets. The extent of depreciation should be estimated as closely as 

 possible, and an amount to cover credited to a reserve for deprecia- 

 tion account at the end of the year. This allows for the replacement 

 of the assets. 



23. Cooperative organizations should make arrangements to set 

 aside specific amounts, or a percentage of profits, for the increase of 

 working capital. 



24. Annual statements should be prepared in such form as to bo 

 readily comprehensible to all members. These statements should be 



