Information
On this page, you can find...
HOW F.P.A. OPERATES
OUR CREDIT POLICY and...
OUR FINANCIAL SERVICE
HOW F.P.A. OPERATES
F.P.A. is a prime national example of inter-fraternity cooperatives at its best! Fifty-some fraternities and sororities work together through their own non-profit buying and management association creating a buying power which could not be possible for a single chapter. F.P.A. also provides a channel through which much can be accomplished for the Greek community.
Who Can Join?
Any officially recognized student organization at the University of Minnesota.
Who Governs?
The member fraternities and sororities govern through the following:
1. Annual Meeting - Total Membership. "Voting Delegates" from all chapters elect their Board of Directors and give direction.
2. Board of Directors - Provide interim governing. Cosists of:
3 appointed men or women
8 elected men or women at the annual meeting (5 must be students)
7 ex-officio (non-voting) members (F.P.A. staff, U of M Greek Advisor, and the IFC and Panhel Treasurers)
How Does It Work?
Bids are extended to merchents. These bids are evaluated in consideration of price, service, quality, delivery minimums, etc. Contracts are awarded by the Board of Directors for a period of one year.
Members are provided information regarding the contracts awarded through a merchant directory which is a list of approved vendors for quick reference and telephone numbers.
Monthly Statement of Purchases
Members are billed at the beginning of each month for purchases made through the end of the previous month. Prompt payment is necessary and a penalty is charged for late payment. Please refer to the credit policy on the next page. A 6% service charge is added to the monthly statement to cover F.P.A.'s operating expenses. Any profit generated by F.P.A. is returned to its members at year-end in the form of a patronage dividend with allocation of such based upon the member's use of F.P.A.'s services.
Credit Policy as adopted by the Board of Directors of Fraternity Purchasing Association on August 2, 1970, effective October 1, 1970, amended October 6, 1971, February 3, 1982, September 13, 1983, July 23, 1986, December 9, 1987, and August 21, 1991. The new amendment is effective September 1, 1991.
1. According to Article X of the by-laws of F.P.A., each patron shall be required to make and maintain an advance deposit with the Association. The amount of this deposit shall be determined by the Board of Directors with the maximum deposit to be two times the average monthly billing of the highest three months from the previous year.
2. All bills are due upon receipt of the monthly statement from F.P.A. Billings paid in full by the designated due date will EARN interest for a 30 day period.
3. F.P.A. will extend credit, if absolutely necessary and by request of the patron, for a 60 day period or to a maximum of $4,000.00. Once these limits have been reached, the patron will be notified in writing by F.P.A., requesting payment within a stated period of time to once again bring its organization in compliance with our credit policy. Failure to meet these requirements may result in suspension of credit privileges which will only be reinstated upon receipt of all amounts due and a guarantee in a form satisfactory to F.P.A. from the orgaization's housing corporation guaranteeing timely payment of the amounts due on account of purchases made and services performed during the next 12 month period.
4. All accounts shall be CHARGED interest on their unpaid balance as of the 15th day of the month, and the last day of the month. Payments received by the designated due date will be credited as of the 15th day of the month.
5. Interest shall be earned at the rate of 6% per year and will be charged at the rae of 12% per year.
6. Interest earned or charged shall be included into the account quarterly: January, April, July, and October.
7. Each fall quarter and any time there is a change in the office of the treasurer, treasurers of all organizations will be required to return the attached form to the F.P.A. office, showing their understanding of the Board's Credit Policy.
8. Each treasurer who responds requesting further explanation of the policy shall be contacted by a Board member to have the policy explained, or the treasuer may contact the F.P.A. staff for an explanation of the policy.
F.P.A. examines and reviews organization financial records, prepares the monthly or quarterly financial reports and fiscal year-end statements, and mails copies to the designated people in the organization.
F.P.A. prepares all the required government forms - monthly, quarterly, annually.
F.P.A. advises and recommends proper procedures for recording transactions to simplify the record-keeping: Assists in budget preparation, Consults with the officers, alumni, and national representatives, and Provides additional information as requested. F.P.A. also sponsors and presents workshops for Chapter treasurers and Alumni representatives.
F.P.A. maintains a supply of forms needed for keeping the financial records.
The above services are billed at an hourly rate.
Computerized Billing
F.P.A. expanded its Financial Services beginning Fall Quarter 1987 to include computerized billing of individual members of the fraternities and sororities. The information received and reports generated have eliminated much of the need for manual bookkeeping procedures by the Chapter Treasurer. This leaves the treasurer more time for the important duties of collecting the receivables and monitoring the budget. Orientation meetings are held with the treasurer of each organization prior to the organization implementing this system. There are presently 24 organizations receiving such services. Please call F.P.A. for additional information on use of this system.
Bookkeeping Service
A bookkeeping service is available for the recording of the financial transactions on the required forms by F.P.A. personnel at a fee of one half the hourly auditing fee.
Alumni House Corporation Financial Service
F.P.A. also provides financial services for Alumni housing corporations. This is done at an hourly rate based upon the kind of service performed. Services include preparation of checks and depositing of receipts, record-keeping, annual (or more frequent) preparation of financial statements, and preparation of proper income tax returns. Please advise your Alumni groups of the availability of this service.
Address Label Service
F.P.A. has the ability to maintain an organization's mailing list. Potential clients include alumni associations as well as chapters. Charges include a start-up fee in addition to a per label charge when labels are printed. Please call F.P.A. for additional information.
