MN Treasurers Handbook by 1/34 ABCT Family Readiness

Minnesota National Guard

Family Readiness Group

Treasurerâ&#x20AC;&#x2122;s Handbook Handbook intended for: ~FRG Treasurers ~Lead Volunteers ~Commanders ~ Units

Version II Published: May 2011

MN National Guard Family Program Office 8180 Belden Blvd Cottage Grove, MN 55016

Minnesota National Guard Family Readiness Program Treasurer’s Handbook

INTRODUCTION This handbook contains guidance, forms and examples to assist FRG treasurers, alternate treasurers, commanders and units to successfully and responsibly manage FRG informal funds. Family Readiness Groups are intended to assist families to be self–sufficient and resilient. Additionally, the FRG serves to enhance the military mission, be a conduit of official information to the families, provide mutual support and family cohesion, and refer families to resources in the event of an unmet need. As such, Family Readiness Groups (FRGs) are able to complete their mission without needing to raise funds and can choose not to have a FRG Checking Account (Informal Fund). However, other FRGs wish to expand their mission to participate in a number of events that may result in expenses. Units that wish to have a FRG Checking account and raise funds must proceed according to AR 608-1 Appendix J, Army Regulation 600-20, Paragraph 4-21, and Air, Army (as appropriate) and National Guard Bureau Funding Guidance. The Treasurer and alternate treasurer (AR 608-1 uses the term Fund Custodian and Alternate Fund Custodian) are appointed by the commander. Fund Custodian and Treasurer are interchangeable “one and the same”. These positions are to be filled by volunteers and are not a military member. For questions or assistance call the State Family Program Office at 651-268-8010 or the Senior Family Readiness Support Assistant at 651-282-4208.

Minnesota National Guard Family Readiness Program Treasurerâ&#x20AC;&#x2122;s Handbook

TABLE OF CONTENTS

SUBJECT

PAGE

FRG Informal Funds Glossary of Terms

Family Program Funds Overview

Treasurer / Alternate Treasurer Job Description

FRG Bank Accounts: When to Open a FRG Account FRG Account Status & Employer Identification Numbers Opening the Bank Account The Checkbook The Monthly Activities Report and Carrier Documents Process of Payment Reimbursement Changing Treasurers Closing an Account Mismanagement of FRG Funds If Unit is Transitioning

11 11 12 12 13 13 14 14 14 15 15

Minnesota National Guard Family Readiness Program Treasurer’s Handbook

APPENDIX: Treasurer / Alternate Treasurer Duty Appointment Letter

Example - Completed IRS Form SS-4

Example - Letter to IRS to Request Trustee Change

Example - Authorization Letter to Open FRG Informal Fund Account

Example – Monthly Informal Fund Activities Report

Example – Carrier Document

Example - Memorandum for Transition of Checking Account (when changing Treasurers)

Example – Certificate of Fund Transfer (Optional Form)

Example – FRG Member Reimbursement Request

Example – Permission Letter for Fundraiser

Example – FRG Fund Property Record

Example – Letter to Acknowledge Donations

Sample – How to Maintain the FRG Informal Funds Binder

FRG Informal Fund SOP Example

AR 608-1 Appendix J

Frequently Asked Questions

Minnesota National Guard Family Readiness Program Treasurer’s Handbook

FAMILY READINESS GROUPS INFORMAL FUNDS GLOSSARY OF TERMS The following Glossary of Terms is provided to help you be familiar with the language of a Treasurer. This list of terms is intended as a short summary of common terms. You may wish to identify additional terms and add them to the list. Carrier Documents: Expense Vouchers (receipts) and Receipt Vouchers (deposits) See appendix of this handbook for example. Cash: The treasurer should never hold cash in hand, except at times of “fundraising” when change is needed. Even then records and receipts of all transactions must be maintained. All funds should be managed through the FRG account. Date: The time at which a transaction occurs. Debt: An expense, which has occurred but not yet paid. Deposit: Money deposited in a bank. Donation(s): Family Readiness Groups may not solicit or give charitable donations of any kind. Unit commanders in conjunction with the Ethics Counselor may accept unsolicited donations to the FRG informal fund of $1000 or less. This donation counts as FRG income and impacts the FRG annual $5000 income cap. Donations can come in the form of cash or goods. The fair market value is used to determine the donation amount for goods. Note: goods count against your $5,000 income cap just the same as cash does. Expense: Cost associated with any project (i.e. supplies, equipment, etc.) or approved event. Family Assistance: A Unit and/or FRG response or referral or direct help to an individual. Family Readiness Group: An officially (command) sanctioned organization of family members (spouses, children, parents, brother, sister, boy/girl friend, significant other, civilian employers, community members, etc.) that provide mutual support and assistance for families and a network of communication between the families, the chain of command and community resources. Fundraising: A FRG activity to raise funds or increase the FRG account balance for a specific purpose. Income: Money received from a fundraiser or from a donation. (Cash or goods) Monthly Informal Fund Activities Report: An electronic or handwritten report will be maintained by the FRG treasurer. An example of which can be found in the appendix of this handbook. The report must be maintained as a historical document. This can then be more readily utilized by future treasurers and more easily monitored by commander. 5

Minnesota National Guard Family Readiness Program Treasurer’s Handbook Payee: One to whom money is to be paid. Treasurer Report: Report that is turned into the commander and FRG Leader every month. The report includes three (3) documents: Monthly Informal Fund Activities Report, copies of all Bank Statements and copies of the receipts and deposits since the last report. The report should be filed in the FRG Informal Funds Binder. Security: Reasonable measures taken to assure that FRG funds are not accessible to unauthorized persons. Volunteer Agreement: A Form DD2793 and a Code of Conduct and Confidentiality Statement signed by statutory FRG members, indicating they understand that their services and support are voluntary and not for pay. Signing these forms confirms the legal designation of VOLUNTEER should an accident or incident occur allowing coverage under the tort claims act. This precludes the individual from being sued, provided they are in compliance with the volunteer agreement and position description. The original is kept at the State Family Program Office. (Statutory volunteers are volunteers who have signed a volunteer agreement and serve in an official capacity in direct support of the National Guard Family Program.) Volunteer Reimbursement: Reimbursement based upon expenditures of personal funds in support of the unit’s FRG. Requests for reimbursement must include receipt(s). See appendix of this handbook for example of reimbursement form.

FAMILY READINESS GROUPS INFORMAL FUNDS OVERVIEW The mission of Family Readiness Group is to support, train and prepare families for mobilization and assist them with deployments. FRGs are not established for the purpose of being a fundraising organization, however Commanders may authorize Family Readiness Group members to establish an informal fund. The Commander appoints an FRG Treasurer to maintain the FRG account, but the ultimate responsibility for the account remains with the Commander.

The following conditions must be met in order to establish a FRG informal fund account. (In Accordance with Army Regulation 608-1 Appendix J, Army Regulation 600-20, Paragraph 4-21, Air, Army and National Guard Bureau Funding Guidance) a. Account is limited to the annual income cap of $5000. The FRG informal fund account may not exceed $5,000 income per year, nor shall it exceed $5,000 balance at any time. FRGs may not accept donations or fundraise until the informal fund balance drops below $5,000. b. Ensure the account’s use is limited to expenses consistent with the purpose and function of the fund Additionally, ensure that funds are utilized for the purpose they are raised, for example; newsletters, homecomings, Holiday Parties, etc. and are managed upholding military ethics and ideals.

Minnesota National Guard Family Readiness Program Treasurer’s Handbook c. Prior to pursuing any fundraising activity, there must be a specific purpose identified for the funds AND the Commander must give his/her approval in writing. d. Commanders complete an appointment letter for the treasurer and alternate treasurer.

File the letter in the FRG Informal Funds binder and a copy at the State Family Programs Office. The treasurer and/or alternate treasurer are responsible for maintaining simple accounting records and receipts which document transactions of FRG funds. e. The treasurer and alternate treasurer must sign a Form DD2793 and Volunteer Agreement and return to the State Family Program Office. This form states they are a statutory volunteer serving in an official capacity in direct support of the National Guard Family Program. f. Employer Identification number: Prior to opening a FRG account, file IRS Form SS4 to receive an Employer Identification Number (EIN #) to avoid use of personal Social Security Number when opening the account. Note: FRG Treasurer is identified as the EIN ” Trustee” on all EIN documents. g. Whenever there is a change in the Treasurer position, the IRS must be notified so that their records can be updated to reflect the new Trustee of the EIN. See appendix for sample letter. h. Open a non-interest bearing account in a federally insured financial institution. All checks for the account must require two signatures and have a place provided for both signatures. Debit/Credit cards are prohibited. i. Pay sales tax for items purchased, as Family Readiness Groups are not nonprofit organizations. j. FRG informal funds cannot augment other unit informal funds such as the unit’s “cup and flower” funds. FRG informal funds cannot be deposited or mixed with personal or unit funds. k. FRG informal funds cannot be used to purchase items or services which may be paid for using military funds or for items not related to family readiness such as service member farewell gifts. Funds cannot be given to a military unit to purchase additional supplies, equipment or to fund additional training. l. FRG Informal Fund Standard Operating Procedure (SOP). FRGs with an informal fund must have an organizing SOP that provides the following information: the FRG name, a description of the FRG’s purpose and function of the fund, and it must include the following statement, “This FRG informal fund is for the benefit of the FRG members only and is established exclusively for charitable purposes and to provide support to Soldiers and Family members as the Soldiers and Families adapt to Army life. It is not a business and is not being run to generate profits. It is not an instrumentality of the United States Government.” It must be signed by the treasurer and alternate treasurer, FRG Leader and the Commander. It is filed in the FRG Informal Funds Binder. See appendix of this handbook for an example of the SOP.

Minnesota National Guard Family Readiness Program Treasurerâ&#x20AC;&#x2122;s Handbook

FAMILY READINESS GROUPS INFORMAL FUNDS OVERVIEW Cont: m. FRGs (statutory volunteers) may only conduct internal fundraising with written command approval amongst their own members, in compliance with Army Regulation 608-1 Appendix J, Army Regulation 600-29, Fundraising within the Department of the Army, paragraph 1-5, and DOD 5500.7-R, Joint Ethics Regulation. These activities are done internally on a military installation such as an armory where fund raising participants are limited to unit military members and their families (by us, for us). They may not conduct external fundraising per National Guard Bureau and Department of the Army Guidance. (Note: Statutory volunteers are volunteers who have signed a volunteer agreement and serve in an official capacity in direct support of the National Guard Family Program.) n. FRG expenditures must benefit the entire FRG membership in some way. o. FRGs may not solicit or give donations or gifts, however Unit Commanders in conjunction with the Ethics Counselor may now accept/approve UNSOLICITED donations to the FRG informal fund of $1000 or less per event. This donation counts as FRG income and counts against the FRG $5000 annual income cap. FRGs offered large donations or gifts, refer to the State Family Program Office. p. The FRG Treasurer will provide a copy of the Treasurer Report to the commander and the FRG Leader monthly to keep them informed of the current status of the FRG account and to provide historical documentation for FRG account activity that can be presented for review. Original copies of all reports are filed in the FRG Informal Fund Binder. The report includes 3 items: which are (1) the Monthly Informal Fund Activities Report (see appendix of this handbook for example), (2) copy of all Bank Statements since the last report and (3) copies of the receipts and deposits since the last report. q. Remember the FRGâ&#x20AC;&#x2122;s purpose and always evaluate whether there is a need to engage in fundraising activities. Additionally, prior to pursuing any fundraising activity, there must be a specific purpose identified for the funds AND the Commander must give his/her approval in writing. There are numerous resources available without fundraising.

Minnesota National Guard Family Readiness Program Treasurer’s Handbook

POSITION DESCRIPTION - TREASURER / ALTERNATE TREASURER POSITION – (Volunteer Position)

I. Introduction. The treasurer and alternate treasurer are statutory volunteers serving in an official capacity in direct support of the National Guard Family Program. They will maintain simple accounting records and receipts for Family Readiness Group funds IAW Army Regulation 600-20, Para 4-21, Army Regulation 608-1 Appendix J, Air, Army and National Guard Bureau Funding Guidance. Should you have any questions or concerns accomplishing your duties as treasurer, contact the State Family Program Office at 651-268-8010. II. Major Duties and Responsibilities. A. Ensure the commander has completed the Treasurer Appointment Memorandum appointing you as the treasurer and appointing an alternate treasurer. Ensure it is filed in the FRG Informal Funds binder and a copy is sent to the State Family Program Office. Note: The Commander or FRG Leader cannot serve as treasurer or signatory on an FRG account. Military Personnel may be a signatory on the FRG checking account, as a backup. However they cannot be on the Forward Roster nor can they be authorized on the Unit Accounts. B. Sign Form DD2793 and Volunteer Agreement and return to the State Family Program office. C. Prior to opening a FRG account, file IRS form SS4 to receive an Employer Identification Number (EIN) to avoid use of personal Social Security Number when opening bank account. If SSN is used, checking account may be perceived as personal income by the Internal Revenue Service. Note: FRG Treasurer is identified as the EIN ”Trustee” on all EIN documents.

D. Open and maintain a non-interest bearing checking account in a federally insured financial institution. All checks for the account must require two signatures and have a place provided for both signatures. Debit/Credit cards are prohibited. E. Maintain Monthly Informal Fund Activities Report showing all transactions, both in and out for FRG funds. File and maintain receipts/deposits showing how funds were disbursed. F. Ensure payment of sales tax for items purchased by the Family Readiness Group, as it is not considered a nonprofit organization. G. Ensure the FRG informal fund account does not exceed $5,000 income per year, and also its balance does not exceed $5,000 at any time. Also ensure the account’s use is limited to expenses consistent with the purpose and function of the FRG Informal Fund. H. Help to ensure the FRG does not solicit donations or gifts. However, Commanders may now accept/approve UNSOLICITED donations in conjunction with the Ethics Counselor to the 9

Minnesota National Guard Family Readiness Program Treasurerâ&#x20AC;&#x2122;s Handbook FRG informal fund of $1000 or less. This donation counts as FRG income and is included in the FRG $5000 annual income cap. I. Help ensure FRG funds do not augment other unit informal funds such as the unitâ&#x20AC;&#x2122;s fund. The FRG funds cannot be deposited or mixed with personal or unit funds. J. Help ensure FRG funds are not used to purchase items or services which may be paid for using military funds or for items not related to family readiness such as service member farewell gifts. K. Help ensure FRG Standard Operating Procedure for FRG informal funds is accomplished. FRGs with an informal fund must have an organizing SOP that provides minimal information regarding FRG expenditures which need to be in accordance with the wishes of the majority of FRG members and all fundraisers must have Command approval in writing before proceeding. It must be signed by the Treasurer, Alternate Treasurer, FRG Leader and the Commander. It is filed in the FRG Informal Fund Binder. L. Provide a Treasurer Report monthly to the commander and FRG Leader. The report includes 3 items: which are (1) the Monthly Informal Fund Activities Report (see appendix of this handbook for example), (2) copy of all Bank Statements since the last report and (3) copies of the receipts and deposits since the last report and should be filed in the FRG Informal Funds Binder. M. Attend training to improve knowledge of Treasurer position updates and the family program. III. Chain of Command. Unit commander, unitâ&#x20AC;&#x2122;s FRG Leader.

IV. Qualifications Sought. A. Good mathematics skills and some record keeping knowledge B. Good personal character (honesty, integrity and responsibility.) B. Displays attention to details

V. Benefits. A. Meeting other family and Guard members B. Opportunities to attend family program conferences and workshops and network with other family program volunteers state and nationwide C. Gain a clear understanding of the Family Program and National Guard thereby improving preparedness for mobilization D. Improve/increase bookkeeping skills for present or future job opportunities 10

Minnesota National Guard Family Readiness Program Treasurer’s Handbook

TREASURER / ALTERNATE TREASURER POSITION DESCRIPTION: VI. Training. Training will be accomplished as needed to ensure the proper maintenance and responsible management of the unit FRG informal fund account

FAMILY READINESS GROUPS INFORMAL FUNDS FRG Bank Accounts When to open a FRG Account Whenever the FRG has funds they will be maintained in a bank account. The treasurer should never hold cash in hand, except at times of “fundraising” when change may be temporarily needed. Even then records and receipts of all transactions must be maintained. All funds should be managed through the FRG account. A bank account affords the best safeguards and tracking of the funds for the FRG, the treasurer and the command.

The Family Readiness Group Bank Account Status and EIN #s All Family Readiness Groups should open and manage all FRG bank accounts under the IRS status of “Banking Purposes Only.” To qualify for this status, the Treasurer must complete IRS Form SS4. This number is simply a number to identify the account for banking and IRS purposes and to avoid the use of personal Social Security Numbers when opening a bank account. Personal SSNs should never be used because the bank account could then be perceived as personal income by the IRS. Note: Treasurer (EIN applicant) is known as the “Trustee” by the IRS. The Trustee information must be updated with the IRS whenever a new Treasurer is appointed. A 147c Notice of change letter will be received approximately 15-30 days after the IRS receives the change request letter.

After you have obtained the Employer Identification Number (EIN #) and opened your account, ensure that you safeguard the IRS document assigning the EIN number as they will not issue duplicate EIN Certificates at any time and a copy will be requested should any correspondence regarding the number be required. Do not allow any individual to use the number for any other purpose. A completed example of SS4 is included in the appendix of this handbook. Note: The EIN is not a “non profit” or “tax exempt” identification number. Payment of sales tax for items purchased by the FRG is required. Donations made to the FRG are NOT tax deductible. EIN #s remain in the IRS files for 10 years. The IRS tracks account activity by annual reporting of income from the account. FRG accounts do not generate profits, therefore are not reported.

Minnesota National Guard Family Readiness Program Treasurer’s Handbook FRGs should contact the IRS if the EIN # is no longer in use. FRGs can also contact the IRS if they need to reactivate an EIN # after an extended period of inactivation or non reporting within that 10 year period.

Opening the Bank Account Open a non-interest-bearing checking account in a federally insured financial institution. All checks for the account must require two signatures (Treasurer and Alternate Treasurer) and have a place provided for both signatures. Debit/Credit cards are prohibited. A non-interest bearing “Family Readiness Group Account” should be free of service charges. When ordering FRG checks, use the FRG’s name, for example, B Co 2-135 Family Readiness Group and the unit’s address. Do not use personal addresses on FRG checks. Additionally, if the checkbook is kept at the unit, then all banking correspondence should be mailed to the FRG in care of the Unit at the Unit’s mailing address as well.

The Checkbook The Treasurer or the alternate treasurer: 

Ensures the account does not exceed the $5000 annual income cap and the account’s use is consistent with the purpose and function of the FRG Informal Fund. FRGs may not accept donations or fundraise until the informal fund balance drops below $5,000.



FRGs cannot solicit donations or gifts, however unit commanders in conjunction with the Ethics Counselor may now accept/approve UNSOLICITED donations to the FRG informal fund of $1000 or less. This donation counts as FRG income and is part of the FRG $5000 annual income cap. FRGs offered large donations or gifts, refer to the State Family Program Office. Donations can be in the form of goods or cash. If goods, fair market value is used to determine their amount to be applied to the $5,000 annual income cap.



Ensures receipts are maintained and attached to FRG volunteer reimbursement forms for all applicable transactions.



Distributes the FRG volunteer reimbursement form to any FRG members that need to be reimbursed for (FRG) approved expenditures. Ensures form completion and expenditure approval by the FRG prior to issuing a check.



Obtains second authorized signature after the check is written. No signatures on blank checks.

 The Commander or FRG Leader cannot serve as treasurer or signatory on an FRG account. Military Personnel may be a signatory on the FRG checking account, as a backup. However they cannot be on the Forward Roster nor can they be authorized on the Unit Accounts. 12

Minnesota National Guard Family Readiness Program Treasurer’s Handbook

The Monthly Informal Fund Activities Report and Carrier Documents The Activities Report provides a means of tracking the date, check number, description of the check, debt, credit, and balance of the FRG account. Another option to record transactions is to use Quicken accounting software. Keeping an Activities Report current allows a ready reference for all transactions and an easily identified account balance. There is also a section allowing verification that each check has cleared. The total amount of outstanding checks should be considered in determining a proof of balance consistent with the bank balance. An electronic or handwritten Activities Report MUST be maintained by the FRG treasurer. A copy of which can be found in the appendix of this handbook. The report must be maintained as a historical document. This can then be more readily utilized by future treasurers and more easily monitored by commanders. Carrier Documents are expense and receipt vouchers that can be created for all transactions. Expense Vouchers: On a blank sheet of paper put the date, check number, amount, and reason for expense on top center. Affix Invoice/Receipt (must identify what was purchased) and Cancelled check (if returned). If written to individual, you need two signatures, have them complete/sign the FRG Member Compensation Memo, and you must obtain receipt before reimbursement. Receipt Vouchers (deposits): On a blank sheet of paper put the date, check number, amount, and explanation, clearly indicating where the money came from, on top center. Affix deposit slip and file in proper chronological order. Note: Receipts and deposit slips can be filed individually in the Informal Funds Binder, however the Carrier Documents method is recommended. The Activities Report and Carrier Documents (or copies of the receipts and deposits) along with copies of all Bank Statements since the last report are required to be included in your FRG Treasurer report and should be filed in the FRG Informal Funds Binder.

Process of Payment The Treasurer or alternate treasurer ensures: 

All debts incurred by the FRG are paid in a timely matter.



The FRG does not assume liabilities that exceed its assets.



Sales tax is paid for items purchased as Family Readiness Groups are not non profit organizations.

Minnesota National Guard Family Readiness Program Treasurer’s Handbook 

FRG informal funds do not augment other unit informal funds such as the unit’s “cup and flower” funds. FRG informal funds can not be deposited or mixed with personal or unit funds.



FRG informal funds are not used to purchase items or services which may be paid for using military funds or for items not related to family readiness such as service member farewell gifts. Funds can not be given to a military unit to purchase additional supplies, equipment or to fund additional training.



FRG funds are NEVER used for personal loans!!

Reimbursement The Treasurer or alternate treasurer presents all bills and requests for reimbursement, along with appropriate receipts and documentation to the FRG Leadership and Commander at a formal meeting. They will review, discuss and vote on the payment of the bills and reimbursements. The FRG Secretary records the minutes of the meeting, with current date and signature and keeps it on file with other FRG minutes. (Optional form for volunteer reimbursement is in appendix of this handbook) It is highly recommended that the FRG approve what will be reimbursed and the dollar amount before the actual event or expenditure is made. When possible, the treasurer or alternate treasurer helps to ensure that the FRG has included all expenditures in their projected FRG budget. This is helpful to identify the projected annual programs, activities and training for the FRG to best evaluate the need for any fundraising.

Changing Treasurers When a treasurer resigns or a new treasurer has been appointed, ensure that all bank statements, Activities Spreadsheet, records of donations, receipts and any other records pertinent to the account maintenance have been relinquished to the new treasurer. To assist in a smooth transition refer to the appendix in this handbook for an example of a Memorandum for the Transition of a Checking Account. The IRS must also be notified of a Trustee update.

Closing an Account Once a FRG has filed an SS4 form with the IRS, gained an Employer Identification Number, and an account has been opened, every effort should be made to keep it open. If a prolonged period of inactivity within the FRG should occur (family members are no longer involved) the Commander may secure the account until a new FRG may be formed rather than close the account each time such inactivity occurs. However, the account should not be used until a new Treasurer is appointed. In that case, every effort should be made to reestablish the FRG as soon as possible. Additionally upon reestablishment, update the signature card at the 14

Minnesota National Guard Family Readiness Program Treasurerâ&#x20AC;&#x2122;s Handbook financial institution where the account is located. Previously approved account signatures should be removed from the signature card at the bank.

Mismanagement of FRG Funds If the Commander becomes aware of mismanagement of the FRG account rather than closing the account, new FRG members should be found to fill the Treasurer positions and any other FRG leadership positions that may have been involved. The Commander may face a decision at that time concerning the notification and involvement of appropriate legal authorities. An internal investigation should first be completed to determine the facts before any such action is taken.

If a unit is TRANSITIONING The FRG will rename their group to align with the new unit and group members. When a FRG name is changed, the IRS should be informed of the change for reporting purposes for the Employer Identification Number. If the unit is moving to a new location (town/city), FRG funds should either: remain with the unit or be depleted prior to the transition. This decision should be made in collaboration between the FRG and the command to determine the best course of action.

Minnesota National Guard Family Readiness Program Treasurerâ&#x20AC;&#x2122;s Handbook

APPENDIX

Minnesota National Guard Family Readiness Program Treasurer’s Handbook

DEPARTMENT OF THE ARMY Organization Name Organization Address City, State, Zip

Office Symbol

2 May 2011

MEMORANDUM FOR Name of Unit SUBJECT: Appointment of Name and Title of Volunteer

1. This is to confirm your appointment as Position Title of Name of Unit Family Readiness Group for a period of # of year(s), or as authorized by the Commander, beginning on Date.

2. Your activities as Position Title must be in accordance with DA PAM 608-47 and the Joint Ethics Regulation. Your Point of Contact on my staff is Name of RDC or MPOC. 3. Please accept my sincere thanks for accepting this position, a most important duty for our Family Readiness Group. Commander’s Name Rank, Branch, Component Commanding

Minnesota National Guard Family Readiness Program Treasurerâ&#x20AC;&#x2122;s Handbook

Minnesota National Guard Family Readiness Program Treasurer’s Handbook

[Unit Letterhead]

Office Symbol (600-20)

[Date]

Internal Revenue Service M/S 6273 ATTN: Entity Unit Ogden, UT 84201

SUBJECT:

Reporting Change in Trustee

To Whom it may concern: This letter is to request a change in Trustee for Banking Purposes Only EIN # [fill in #] for

[FRG NAME]. The Previous Trustee, [Previous FRG Treasurers name] will be replaced by [Name of new FRG Treasurer], [New Treasurer’s SSN] , effective [date]. [FRG Name and Unit Mailing address] If any questions, please contact [New FRG Treasurer or MPOC] at [Phone Number]. Thank you for your assistance.

Sincerely, (COMMANDER’S NAME) (Rank, Branch, Component) Commanding

Minnesota National Guard Family Readiness Program Treasurerâ&#x20AC;&#x2122;s Handbook

[Unit Letterhead] Office Symbol (600-20)

[Date]

Bank Name ATTENTION: New Business Accounts Bank Address City, State ZIP SUBJECT:

Authorization to open a new business checking account for the _____________________ Family Readiness Group (FRG) Informal Fund.

Dear New Accounts Manager: This letter is to authorize the following named individuals to open a checking account: Type Account: Ordinary business checking In the name of: ________________________ FRG Informal Fund. Mailing Address: (c/o _____________, Address, City, State, ZIP) Authorized signatories on the account are as follows: Name

Title

SSN

_____________

FRG Treasurer

_____________

Alternate Treasurer

_____________

Special Events Chair

(Opt)

If any questions, please contact ________________ at (Phone Number). Thank you for your assistance. Sincerely, (COMMANDERâ&#x20AC;&#x2122;S NAME) (Rank, Branch, Component) Commanding

NOTE: When INational printed Guard this page off, it is very dark and Treasurerâ&#x20AC;&#x2122;s nearly unusable. You Minnesota Family Readiness Program Handbook would not be able to read anything that was written in the boxes.

Minnesota National Guard Family Readiness Program Treasurerâ&#x20AC;&#x2122;s Handbook

[Date, Check #, Amount, Reason for expense/explanation of where money came from]

Affix Invoice/Receipt (copy is acceptable) Or Deposit Slip HERE

FUND MANAGER'S CERTIFICATION I certify that the foregoing represents a true and accurate record of all fund transactions for the period of the report. Commander/FRG Leaders initials________ FRG Treasurer's Signature and Date______________________________________________________________

Minnesota National Guard Family Readiness Program Treasurer’s Handbook DEPARTMENT OF THE ARMY Organization Name Organization Address City, State, Zip

Office Symbol (600-20)

[Date]

MEMORANDUM FOR (Enter Unit Designation) FRG Checking Account Transition Report SUBJECT: Transition of Checking Account to New Treasurer 1. The current balance as of (Enter today’s date) is (Enter balance). 2. The reconciliation of the account on (Enter Date) showed that (Enter Number) items with a balance of (Enter balance) have not yet been posted to the account and are still outstanding. 3. Documents accompanying this transition are: All bank statements, checkbook registers, receipts, records of donations and any other records pertinent to the checking account. (These stated documents as a minimum must accompany the transition). 4. I, (Enter Name of Outgoing Treasurer), accept responsibility for the fund balance as indicated above and relinquish all financial records and information to (Enter Name of Incoming Treasurer). 5. Your point of contact for this report is (Enter Outgoing Unit Treasurer’s Name and Phone Number).

FRG Outgoing Treasurer Signature Block DISTRIBUTION: Unit Commander Unit Family Readiness Group Leader Incoming FRG Treasurer

Minnesota National Guard Family Readiness Program Treasurerâ&#x20AC;&#x2122;s Handbook

CERTIFICATE OF FUND TRANSFER

Fund: _____________________ Unit/Organization: __________________

I certify, to the best of my knowledge and belief, that the balance of $________________, reflected on the current Monthly Transaction and Reconciliation Report or Record of Proceedings for period ending ________________, is true and correct.

_______________________ (Date)

______________________________ (Signature of Outgoing Manager)

I accept responsibility for the fund balances as indicated on the above referenced Transaction Report of Record of Proceedings beginning on _______________________. (Date)

________________________ (Date)

_______________________________ (Signature of Incoming Manager)

In the event the incoming fund manager is not satisfied that the fund balance and/or property inventory is accurate, the acceptance may be conditioned pending audit verification as remarked below. Remarks:

AGO Form 105-R (Sep 92) (May be locally reproduced)

Enclosure 6 24

Minnesota National Guard Family Readiness Program Treasurerâ&#x20AC;&#x2122;s Handbook

FRG Member Reimbursement Request I _____________________________ am requesting reimbursement for the following out of pocket purchase: Company/Business Name: ______________________________________ Item(s): ______________________________________________________ Justification: __________________________________________________ Amount Paid: ______________ Date: ___________ FRG Member Name:_______________________ Signature:_____________________________

APPROVED BY: FRG Treasurer: ____________________

FRG Council Member: ____________________

Signature: __________________________

Signature:________________________________

ATTACH RECIEPT(S) BELOW ------------------------------------------------------------------------------------------------------------------------------

Minnesota National Guard Family Readiness Program Treasurer’s Handbook

Sample Permission Letter for Fundraiser

Return Address 20 Jul 2002 XXXX NG Unit ATTN: ___________________ Anywhere Address City, State ZIP Dear Commander, The ___(Name) _______Family Readiness Group requests approval to conduct a__(type of fundraiser)______on ___(date)___________________from_______ to ______ hours. Attached find the Event/Fundraising Plan & Budget. Funds from this fundraiser will be used for __(i.e. Winter Party, purchase readiness materials)_____. POC is the undersigned, at 555-5555. The current balance in our FRG account is ______________ as of__(date)___. Enclosed find the Event/Spending plan/budget or expected cost of materials to be purchased/provided with above mentioned fundraiser funds. Sincerely,

FRG Chairperson ________________ FRG Commander’s Approval: ___________________________________________ Signature (Commander’s printed name and rank)

______________________ Date

Minnesota National Guard Family Readiness Program Treasurer’s Handbook APPENDIX D – SAMPLE FUND PROPERTY RECORD FUND PROPERTY RECORD FUND NAME 123 FA Family

PAGE NO. __1__ UNIT 123 FA

Readiness Group

DATE ACQUIRED

DESCRIPTION OF PROPERTY

COST

DISPOSITION

DATE

2 Nov 01

Calculator

15.99

Broken

July 03

4 Jun 02

2 drawer file

29.99

3 Aug 02

Per inventory (FRG Leader) (Signature of leader)

AGO Form 109-R (Jan 93)

Minnesota National Guard Family Readiness Program Treasurer’s Handbook EXAMPLE LETTER TO ACKNOWLEDGE DONATIONS

Unit Family Readiness Group Full Name Unit Address City, State Zip Name of Donor (Person, Business, Organization, etc.) Donor Address City, State Zip TO: (Name of individual Donor, Business or Organization Point of Contact): Regarding your Donation of:____________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ ___________________________________________________________ *If cash/check, write the actual amount above. If other than cash, name the item or services provided. Do not indicate dollar value for items or services. NOTE: Donations to the FRG do not qualify for tax deductions because the FRG is not a “Tax Exempt” or “Non Profit” Entity (301c). Our ___________________________________________Family Readiness Group gratefully acknowledges your contribution. Your contribution will assist us in accomplishing our goal of ______________________________. Thank you for your valuable assistance.

Sincerely,

(Signature) FRG Chairperson (Signature) FRG Treasurer

Minnesota National Guard Family Readiness Program Treasurer’s Handbook

Sample - How to Maintain the FRG Informal Funds Binder References •

AR 600-20, Army Command Policy, 27 April 2010

•

AR 608-1, Appendix J, Army Community Service, 19 September 2007

•

Family Readiness Plan

•

Family Readiness Group (FRG) SOP

FRG Binders •

The FRG is required to maintain two official binders that are to be kept at the TACC.

•

The first binder is the official FRG Binder.

•

The second binder is the official FRG Informal Fund Binder.

•

The Informal Fund Binder is divided into five sections.

•

FRG Key Leaders are expected to maintain their own binders to pass on to their replacements.

Informal Fund Binder Contents Section One •

Appointment Letters for Treasurer and Alternate Treasurer (the only two signatories on the account)

•

Copy of the FRG Charter (or Charter application if it hasn’t been approved yet).

•

Copy of the SS-4 (Employer Identification Number)

•

Copy of the official letter used to open the bank account.

•

Official paperwork from the bank involved in opening the account.

Section Two •

FRG Calendar & Upcoming Event Information

•

FRG Leader Roster

•

Other appropriate paperwork not included in the other sections of the binder

Minnesota National Guard Family Readiness Program Treasurer’s Handbook Section Three •

Monthly Meeting Minutes

•

Monthly & Annual Treasurer’s Reports

•

Account Ledger showing the allocation of all money in the account. According to regulations, all funds in the account must be designated in advance.

Section Four •

Monthly Bank Statements

•

Purchase & Fundraising Requests

•

Receipts for income and expenditures

Section Five •

Unit Family Readiness Plan & FRG SOP

•

MN Family Programs FRG Handbook including AR 600-20, Army Command Policy, 27 April 2010, and AR 608-1, Appendix J, Army Community Service, 19 September 2007

•

Other guidance memos from the chain of command

Adding to the Binder •

The RNCO/RDC and the Treasurer will work together to maintain the binder.

•

All account correspondence will be sent to the TACC. The RNCO/RDC will efax copies of this correspondence to the Treasurer.

•

The FRSA will provide updates of regulations for the binder.

The Checkbook •

The location of the checkbook is at the Unit Commander’s Discretion, but most will require that it be kept at the RDC/RNCO’s office

•

Checks are to be dual signature with the Treasurer and Alternate as the only signatories

•

The majority of checks will be written at monthly FRG business meetings

•

Small expenses, such as snacks for meetings should be reimbursed.

•

Most stores will not accept dual signature checks or pre-signed checks, so plans need to be made accordingly. 30

Minnesota National Guard Family Readiness Program Treasurerâ&#x20AC;&#x2122;s Handbook

DEPARTMENT OF THE ARMY Organization Name Organization Address City, State, Zip

2 May 2011 (Office Symbol)

MEMORANDUM FOR (Unit FAMILY READINESS GROUP) SUBJECT: Family Readiness Group (FRG) Informal Fund Standard Operating Procedures (SOP)

1. References: a. AR 600-20, Command Policy, 7 Jun 06 b. AR 608-1, Army Community Service, 21 Jul 06. c. AR 600-29, Fundraising within the Department of the Army, 7 Jun 10 d. AR 1-100, Gifts and Donations, 15 Nov 83 e. DOD 5500.7-R, Joint Ethics Regulations 2. Purpose. Provide procedures for managing the FRG Informal Funds. 3. Summary. The FRG informal fund is for the benefit of the Unit FRG members only and is established exclusively for charitable purposes and to provide support to Soldiers and family members as they adapt to Army life. It is not a business and is not being run to generate profits. It is not an instrumentality of the United States Government. 4. Scope. This SOP applies to the (Unit) Family Readiness Group which is comprised of all Soldiers, civilians, volunteers and family members assigned to the unit. 5. Commander/Rear Detachment Commander Authorizations: a. I authorize the FRG to maintain one informal fund. b. I will designate a fund custodian (treasurer) and an alternate, in writing, in the form of an Appointment Letter. 31

Minnesota National Guard Family Readiness Program Treasurer’s Handbook c. I authorize the opening of one FRG informal funds bank account and designate the fund custodian (treasurer) and an alternate to sign checks drawn on the account. d. All fundraising requests must be presented to me, with a complete plan on why the funds are needed, and for what purpose. No fundraising event will be authorized if the informal fund account has reached the annual Income cap of $5,000 or the account balance is $5,000. 6. FRG Leader acknowledges: a. I will provide oversight for the FRG Informal Fund, and inform the Commander of issues regarding the account. 7. FRG Treasurer and Alternate acknowledges: a. I will manage the FRG Informal Fund, and ensure that all deposits and expenditures are accurate, timely, and complies with all Army policies, including AR 608-1, and the Joint Ethics Regulations. b. I understand that I may be personally liable for any loss or misuse of FRG informal funds. c. I will establish a non-interest bearing bank account under the FRG’s name, as approved by the Commander. (or if already established, have it ratified by the Commander). d. I am responsible for preparing an informal fund report for the unit commander at the end of each month. The report will summarize the informal fund’s financial status, to include current balance, total income, and an itemized list of expenditures along with an explanation showing how the expenditures are consistent with the purpose of the FRG informal fund as established in this SOP. e. I will prepare an annual informal fund annual report for the unit commander and Brigade Commander (or first 06 in the unit’s chain of command). The annual report will summarize the informal fund’s financial status at the end of the calendar year, to include current balance, total income, and an itemized list of all expenditures made during the year, along with an explanation showing how the expenditures were consistent with the purpose of the FRG informal fund as established in this SOP. The annual report is due to the Brigade commander no later than 30 January of each year. 8. Procedures. The FRG formally agrees on the use of the FRG funds. a. The FRG's informal fund purpose and function are to provide support and recognition to ALL FRG members. The funds are to be used to provide meals and refreshments at FRG meetings and to fund FRG family social events. The use of FRG informal funds is to support the entire FRG family, and is not for Unit social events whereby the entire family is normally not included. b. All expenditures must be consistent with the provisions listed in this SOP, Army values, and AR 608-1, Appendix J. 32

Minnesota National Guard Family Readiness Program Treasurerâ&#x20AC;&#x2122;s Handbook c. FRG informal funds may not be deposited or mixed with appropriated funds, unit MWR funds, unit informal funds (i.e. cup and flower funds), or any individualâ&#x20AC;&#x2122;s personal funds. d. Estimated costs for future planned events will be earmarked within the ledger. 9. Informal Fund Account Management. a. Expenditures. (1) The FRG volunteer officers are appointed by the Commander in writing in an Appointment Letter. (2) FRG officers (leader, co-leader, secretary, and treasurer/alternate) must get approve for all expenditures of FRG Funds from the Commander in advance. (3) The treasurer will pay all expenditures with a check, when possible. The Treasurer/alternate and one other FRG volunteer officer will sign all checks, (i.e., leader, co-leader, treasurer, secretary). (4) A written receipt will be maintained for two years for all expenditures. (5) The treasurer/alternate will list all checks and subtract them from the check register balance immediately after writing the check. b. Deposits. (1) The treasurer or alternate will deposit all income received within one business day of receipt. (2) Deposit receipts will be maintained for two years. (3) Checking Account Reconciliation. (4) The treasurer will reconcile the checking account with the bank statement within three days of receipt. (5) Errors identified will be resolved immediately. The Treasurer will report any errors that he/she cannot resolve to the FRG Leader. (6) The Treasurer will prepare a financial statement monthly for each FRG meeting and for the commander, or upon request, following the procedures listed in reference (a). 9. Fundraising Requests. Note, Unit Commanders should be able to document that they have established the FRG infrastructure as required IAW AR 608-1, Appendix J prior to authorizing their FRGs a fundraising event. Unit Commander certifies prior to approving FRG informal fundraising that:

Minnesota National Guard Family Readiness Program Treasurerâ&#x20AC;&#x2122;s Handbook a. Volunteer support for the FRG is identified and volunteers have been registered IAW AR 608-1. b. Volunteer position descriptions are on file, volunteers are trained or subject to a training schedule. c. The FRG Budget SOP has been established for the FY and has been reviewed with FRG officers. d. FRG meetings are regularly scheduled (whether quarterly, semi-annually, or monthly, depending upon deployment); meetings should be well attended by both enlisted and officer families. e. Fundraising request must be for a specific purpose. Raising funds to purchase meals and refreshments for use at FRG meetings may be authorized. Raising funds to alleviate the costs of the Unit Ball for enlisted is not authorized for the FRG informal fund. f. Fundraisers may take place on-the-garrison only. g. Fundraising dates should not conflict substantially with CFC or AER fundraising dates. h. Fundraising requests must go through the servicing legal office, ethics counselor prior to being approved. i. Once the Unit Commander approves the FRG informal fund request to fundraise, normal Garrison Commander rules regarding the processing of all fundraising requests must be followed. j. FRG members may never engage in fundraising off-Garrison. 10. FRG Fund Cap. a. Gross annual receipts (income) for the FRG Informal Fund cannot exceed $5000 from all sources, i.e. fundraising, gifts, and donations. b. The Informal Fund balance should not exceed $5,000 at any one time. However, if the fund balance does exceeds $5,000, then no additional income from fundraising, donations or gifts will be accepted until the balance falls under than $5,000 after the additional income has been added. Also, the FRG will start spending the money to bring it below the mandated fund cap. c. Donations/Gifts. The Unit Commander may accept donations of money or tangible goods valued at $1,000 or less into the FRG informal fund account following consultation with the servicing ethics counselor. 11. Files. Hard and soft copies of the SOPâ&#x20AC;&#x2122;s will be maintained by the Commander, Family Readiness Group Deployment Assistant, Rear Detachment, FRG Leader, FRG Secretary, and FRG Treasurer. 34

Minnesota National Guard Family Readiness Program Treasurerâ&#x20AC;&#x2122;s Handbook 12. The point of contact for this SOP is the undersigned at ###-###-#### or email.

Commanderâ&#x20AC;&#x2122;s Name Rank, Branch, Component Commanding

Minnesota National Guard Family Readiness Program Treasurerâ&#x20AC;&#x2122;s Handbook

AR 608-1 Appendix J

Minnesota National Guard Family Readiness Program Treasurerâ&#x20AC;&#x2122;s Handbook