Accounting (in-)accuracy?

Discussion in 'Zidisha | Fostering Peer2Peer Entrepreneurship' started by HaveMilesWillTravel, Nov 19, 2014.  |  Print Topic

  1. HaveMilesWillTravel
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    HaveMilesWillTravel Gold Member

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    Has anyone recently tried to withdraw funds? Seems the page or perhaps Zidisha's accounting is broken.

    https://www.zidisha.org/lender/funds

    Went to the bottom of the page and entered paypal address and amount to withdraw. Hit submit and got this error:

    zidisha_error.png

    Reduced the withdrawal amount to 14.72 and it went through (not gotten the money yet, of course).

    To someone who in a previous life wrote accounting software this is... disturbing.
     
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  2. mattsteg
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    mattsteg Gold Member

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    Superman iii?
     
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  3. pshuang

    pshuang Silver Member

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    Doesn't seem particularly odd to me. They're rounding for display most of the time to the cents precision level, but are not rounding when it comes to checking your requested withdrawal amount against your actual balance. So after your withdrawal your account probably says you have $0.00 balance but you really have $0.00252. If you are somehow repaid $0.00249 then your balance would probably be displayed as $0.01 but you wouldn't be able to withdraw a penny.
     
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  4. HaveMilesWillTravel
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    HaveMilesWillTravel Gold Member

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    The minimal accountable unit for USD is $0.01. No bank will track your account balance with greater accuracy because, well, it makes no sense.
     
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  5. CMK71

    CMK71 New Member

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    Not directly on point, but HaveMiles's post made me wonder if Zidisha's books are audited annually. The accountant job description suggests that this is an "optional additional job responsibility," but it is not clear to me whether the description is current.

    This site's spam filter prevents me from posting the link, but it is easy to find (for the moment) by Googling "Zidisha accounting audit."
     
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  6. CMK71

    CMK71 New Member

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    And, for those interested, citizenaudit.org has Z's 2013 tax return for tax-exempt organizations available for viewing.
     
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  7. HaveMilesWillTravel
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    HaveMilesWillTravel Gold Member

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    I assume that job description is for maintaining Zidisha's books. I.e., their revenue (donations) and their expenses (Julia's salary as the only employee and whatever else they may be spending money on).

    I sure hope they don't co-mingle the lender money into their accounts. That's not theirs to use for running their business and needs to be held in a separate account for the benefit of the lenders (as its their money, not Zidisha's).
     
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  8. icurhere2
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    icurhere2 Gold Member

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    Did mention on another thread when I posted the link to the 990; I'm fairly confident the structure and financial operations have many areas that would not be viewed favorably if audited.
     
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  9. HaveMilesWillTravel
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    HaveMilesWillTravel Gold Member

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    Right. The whole "Any cash payouts are promotional gifts offered solely at Zidisha's discretion" in their terms of use make me think that they don't actually separate lender money from corporate money and it's just one account that they manage at their (Julia's) discretion.

    This is very much an example where I regret not reading the T&C more closely. Then again, since they change them as they see fit (see forced auto-lending policy, basically confiscation of lender money), that "promotional gifts" phrase may very well not have been in there.
     
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  10. HaveMilesWillTravel
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    HaveMilesWillTravel Gold Member

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    As I was thinking about 1099s this Saturday morning, I started wondering if Zidisha would actually be required to issue 1099-MISCs to people who receive those "promotional gifts" (what we think of as "our money repayments") from them.

    What a mess.
     
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