Family Readiness Groups and Fund Raising MAJ Owen Speidel

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Family Readiness Groups and Fund
RaisingMAJ Owen Speidel
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Family Readiness Groups

• References
• DoD 5500.7-R The Joint Ethics Regulation
• AR 600-29 Fund-Raising Within the Department of
  the Army
• AR 215-1 Moral, Welfare, and Recreation
  Activities and Non-appropriated Funds
  Instumentalities
• AR 210-22 Private Organizations on Department of
  the Army Installations
• AFI 34-224 Private Organizations
• NDNGR 600-12 North Dakota National Guard Family
  Program
• National Guard Family Program Funding Guidance 27
  Jan05

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Family Readiness Groups

• Outline
• Fund Raising
• Guidance
• Issues
• Tips for success
• Audits

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Family Readiness Groups

• Fund Raising
• FSG are not in the business of collecting and
  maintaining funds but are established to provide
  activities and support that will enhance the flow
  of information, moral and esprit de corps within
  a unit.
• Fundraising is not the purpose of the FRG it is
  a means to an end, but not the end goal of
  self-reliant families.

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Family Readiness Groups

• Fund raising
• Why would FRG raise funds
• Defray Costs.
• Volunteer opportunities.
• Home coming events.

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Family Readiness Groups

• Issues
• Concerns about Fundraising
• Volunteers might break Federal government
  regulations.
• Volunteers might break State/Local Laws and
  regulations.
• Volunteers might embezzle funds.
• The Public might be mislead on the use of funds.

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Family Readiness Groups

• Issues
• Federal Regulations.
• 1,000 Threshold
• Private Organization vs informal Fund
• How the threshold is met
• ANG - Current Average Monthly Assets exceed
  1,000 for three months.
• ARNG When net worth (Assets minus Liabilities)
  exceeds 1,000.

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Family Readiness Groups

• Issues
• Private Organizations lose the
• Authority to use DoD -
• Office Space
• Desks
• Office supplies
• Agency/Unit name

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Family Readiness Groups

• Issues
• Federal Regulations.
• Solicitation (Joint Ethics Regulation)
• May not ask for specific donations from
  businesses.
• Endorsing or encouraging soldiers or families to
  patronize a particular business in prohibited.
• Use of Federal Government resources.
• DoD employees may not be used for fundraising.

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Family Readiness Groups

• Issues
• State and Local Laws.
• Private organization.
• Generally, not exempt from any state or local
  laws.
• Generally, not exempt from any tax/reporting
  requirements.
• FSG are not non-profit organizations.
• Solicitation.
• Gaming rules and regulations.

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Family Readiness Groups

• Issues
• Embezzlement.
• Inadequate internal controls
• Temptation
• Insinuations
• Good intentions. Ill take it as a loan and pay
  it back later.

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Family Readiness Groups

• Issues
• Misleading the public.
• Conveying that donations are deductible.
  Donations to the FRG are not deductible.
• Conveying that the funds will be used for needy
  families when they will be used for a welcome
  home celebration.
• Conveying that the National Guard is a needy
  organization.

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Family Readiness Groups

• Guidance
• Family Readiness Organizations money may be
• used to Readiness home coming celebrations or
• direct assistance to need families, such as a
• member having difficulties meeting a given
• expense for the month.
• (ND does have an emergency relief fund available)

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Family Readiness Groups

• Guidance
• Expenditures must benefit the entire
• membership in some way. (Special Events to foster
• service member and family cohesion and morale,
  FRG
• Volunteer training, meeting refreshments,
  deployment
• and reunion activities, childcare expenses during
  FRG
• events, postage and operating supplies in
  readiness of
• the FRG, and any authorized expense approved in
• advance and in accordance with the spending plan.

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Family Readiness Groups

• Guidance
• DOs
• Set up a ledger
• Be specific about expenditures
• Develop written guidelines for all expenditures
• Keep all receipts (set up an audit trail)
• Safeguard checkbook and records.
• Reconcile accounts monthly
• Prepare financial statement for monthly FRG
  meeting.
• Be sure members understand how FRG funds will be
  used.

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Family Readiness Groups

• Guidance
• Donts
• Never use the FRG funds for anything other than
  its intended purpose.
• Never overdraw the account.
• No interest bearing accounts.

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Family Readiness Groups

• Guidance
• Generally there are no restrictions on how the
• FRGs spend their money. However
• Raised Funds cannot be given to a military unit
  to purchase additional supplies or to fund
  additional training.
• A Government entity may not accept funds given by
  a Family Readiness Organization to augment its
  budget.
• You cant get around the rule by buying the
  supplies or funding the training for the unit.

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Family Readiness Groups

• Guidance
• Authorized Fund Raisers (not all inclusive)
• Bake Sales
• Sales of prepared Foods
• Cookbook Sales
• Car washes
• Fun Runs
• Dog washing Service
• Opportunity Auctions (Donated Goods and Services)

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Family Readiness Groups

• Guidance
• Prohibited Fund Raisers (Not all inclusive)
• Gambling
• Chain Letters and pyramid schemes
• Door to door solicitations
• Any activity that is immoral, pornographic,
  illicit and /or casts a negative light on the
  military
• Dispensing or acquiring controlled substances
• Any activity involving service members in
  uniform
• Any activity that violates a state or local
  ordinance
• Any activity or product that is dangerous or
  unduly risky.

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Family Readiness Groups

• Control Issues
• Volunteers are not government employees.
• Volunteers have little to no experience with
  governmental regulations.
• Funding
• Regulations says funds should be managed by one
  person. That works for informal (less 1,000)
• When funds get substantial there needs to be
  segregation of duties. (authorizing, recording
  and maintaining)

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Family Readiness Groups

• Approval Issues
• Should always have the commanders approval.
• Should always have Staff Judge Advocates (Legal)
  approval.
• Should always have Family Readiness Offices
  approval.
• Should always have Facilities managers approval.

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Family Readiness Groups

• Tips for success
• Training
• Volunteers
• Commanders
• Family readiness offices
• Early involvement by commander.
• Well defined missions/goals. (Have a plan)
• Establish an annual budget
• Seek approval before initiating actions.

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Family Readiness Groups

• Tips to success
• Book keeping and accountability
• Accounting software program. If appropriate.
• Request for reimbursement form (Approval process)
• Segregation of duties.
• Documentation/receipts.
• Monthly bank reconciliation
• Monthly financial statements.
• Provide an audit trail for every check written

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Family Readiness Groups

• Tips to success
• Monthly Financial reports
• Beginning Cash Balance 1,000
• Plus Revenues 1,000
• Less Expenses ( 500)
• Ending Cash Balance 1,500

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Family Readiness Groups

• Tips for success
• Depositing funds
• Funds should be deposited in the bank account as
  soon as possible.
• There should be some kind of dual count.
• There should be some kind of documentation of how
  much should have been deposited.
• Provide an audit trail for every deposit.

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Family Readiness Groups

• Tips to success
• Property accountability
• Mark property that belongs to the group.
• Make sure the whole group membership is aware of
  the intended purpose of the property.
• Have a well defined plan on how to dispose of
  property after it is no longer useful to the
  group
• Keep a list of property the group should have.

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Family Readiness Groups

• Audits
• We will randomly review Family Readiness Group
  accounting records.
• We will review
• Meeting minutes/Financial Statements
• Bank statements and reconciliations
• Ledgers/ Accounting records
• Approvals/ receipts
• Property records

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Family Readiness Groups

• Any questions?

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Family Readiness Groups

• Phone number - [phone]
• email - owen.speidel_at_nd.ngb.army.mil