mn treasurers handbook
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Minnesota National Guard
Family Readiness Group
Treasurer’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
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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.
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TABLE OF CONTENTS
SUBJECT PAGE
FRG Informal Funds Glossary of Terms 5
Family Program Funds Overview 6
Treasurer / Alternate Treasurer Job Description 9
FRG Bank Accounts:
When to Open a FRG Account 11
FRG Account Status & Employer Identification Numbers 11
Opening the Bank Account 12
The Checkbook 12
The Monthly Activities Report and Carrier Documents 13
Process of Payment 13
Reimbursement 14
Changing Treasurers 14
Closing an Account 14
Mismanagement of FRG Funds 15
If Unit is Transitioning 15
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APPENDIX:
Treasurer / Alternate Treasurer Duty Appointment Letter 17
Example - Completed IRS Form SS-4 18
Example - Letter to IRS to Request Trustee Change 19
Example - Authorization Letter to Open FRG Informal Fund Account 20
Example – Monthly Informal Fund Activities Report 21
Example – Carrier Document 22
Example - Memorandum for Transition of Checking Account 23
(when changing Treasurers)
Example – Certificate of Fund Transfer (Optional Form) 24
Example – FRG Member Reimbursement Request 25
Example – Permission Letter for Fundraiser 26
Example – FRG Fund Property Record 27
Example – Letter to Acknowledge Donations 28
Sample – How to Maintain the FRG Informal Funds Binder 29
FRG Informal Fund SOP Example 31
AR 608-1 Appendix J 36
Frequently Asked Questions 43
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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.
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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.
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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.
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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 FRG’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.
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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
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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 unit’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, unit’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
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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.
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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.
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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.
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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
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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.
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APPENDIX
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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
DEPARTMENT OF THE ARMY Organization Name
Organization Address City, State, Zip
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[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
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[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,
(COMMANDER’S NAME)
(Rank, Branch, Component)
Commanding
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NOTE: When I printed this page off, it is very dark and nearly unusable. You
would not be able to read anything that was written in the boxes.
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[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______________________________________________________________
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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
DEPARTMENT OF THE ARMY Organization Name
Organization Address City, State, Zip
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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
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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
---------------------------------------------------------------------------------------------------------------------
----------
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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 Date (Commander’s printed name and rank)
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APPENDIX D – SAMPLE FUND PROPERTY RECORD
FUND PROPERTY RECORD PAGE NO. __1__
FUND NAME 123 FA Family
Readiness Group
UNIT 123 FA
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)
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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
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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
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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.
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(Office Symbol)
2 May 2011
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.
DEPARTMENT OF THE ARMY Organization Name
Organization Address City, State, Zip
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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.
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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 individual’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:
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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 SOP’s will be maintained by the Commander, Family Readiness Group Deployment Assistant, Rear Detachment, FRG Leader, FRG Secretary, and FRG Treasurer.
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12. The point of contact for this SOP is the undersigned at ###-###-#### or email.
Commander’s Name Rank, Branch, Component Commanding
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AR 608-1 Appendix J
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