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About Deduction Errors: If Too Much Is Deducted, Will the Commune Pocket the Money?

Zhang Mading1 min read

Some members ask: is the result of each deduction always exactly accurate? Can more or less than the correct amount be deducted? There is certainly some error.

Over- or under-deduction does occur. The main situations that cause error are:

— Changes in the number of people at the moment of deduction (between the point when the deduction amount is calculated and the point when the deduction is made, some people leave and new ones join)

— Rounding of decimals

Will the Commune over-deduct? In theory, possible. In practice?

To date the Commune has paid out 24,431,779 yuan to recipients (including review fee expenses), but actually raised 24,170,928 yuan. The actual fundraising was 260,851 yuan less than the amount paid to members—in other words, the Commune under-deducted by more than 260,000 yuan. That is, there was an error in the deduction, but the error was in a direction favorable to members.

Will members' money be over-deducted in the future?

Our goal in improving accuracy is balance, but we will not over-deduct. Over-deduction would bring the Commune no benefit—the accounts wouldn't balance—and the Commune cannot possibly transfer money out of the dedicated account. The Commune's goal is to be a Century Commune; it will not make this mistake.

Zhang Mading
Founder, KangAi Commune
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