Club Audit Items - ADR Fees, Cash Liquidation - club_cafe

Club Audit Items - ADR Fees, Cash Liquidation

Leonard J Delmolino on

In performing our year end club audit, I came across a
couple of items that I'm not familiar with - they are very
small amounts and I simply want to have a better
understanding of what they are. One is an expense item
labeled "ADR Fees" and the other is an income item labeled
as a "Cash Liquidation" (looks like some kind of dividend).

Thanks in advance for your help!

Len Delmolino
Treasurer, Oak Point Investment Club

Laurie Frederiksen on

On Fri, Feb 3, 2012 at 1:58 PM, Leonard J Delmolino wrote:

In performing our year end club audit, I came across a
couple of items that I'm not familiar with - ... One is an expense item
labeled "ADR Fees" and the other is an income item labeled
as a "Cash Liquidation" (looks like some kind of dividend).

Hi Len,

Here is a definition of an ADR.

http://www.investopedia.com/terms/a/adr.asp#axzz1lLcKjGQR

An ADR fee is charged by the ADR custodian and passed through to your broker and then to you. It is a deductible club expense.

You should probably pursue the item you are referring to as a "Cash Liquidation". If any of your stocks went through some sort of reorganization this year, it may be Cash in lieu of fractional shares. You'll want to make sure that is correctly entered as a stock sale and not a dividend.

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Laurie Frederiksen
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