FLOTILLA FINANCE

Barbara Burchfield, State Liaison Officer-South Carolina (SLO-SC) JAN-2015

U. S. COAST GUARD AUXILIARY

DIVISION 12

FLOTILLA FINANCE

Guidelines, policies and suggestions for:

FSO-FN Responsibilities

FEIN

Nonprofit & Donations

Sales Tax

Flotilla Budget

Membership Dues

Audit & Inventory

FLOTILLA FINANCE FSO-FN Responsibilities

Prepare a budget

Pay approved bills with original receipts

Keep complete & accurate records of all

transactions

Keep complete records of all unit assets

Manage cash flow

FLOTILLA FINANCE FSO-FN Responsibilities

File new bank signature card with each

change in Unit Leader and/or FSO-FN

Collect and pay member dues

Report monthly financial status to FC

Prepare Form 7025 by January 31:

◦ Financial Report of Auxiliary Unit

◦ Inventory Report

FLOTILLA FINANCE

FEIN REQUIREMENT

Bank Account name is “U. S. Coast Guard

Auxiliary” followed by the unit designation

Example: “U. S. Coast Guard Auxiliary Flotilla 12-3”

Auxiliary units use FEIN 52-1500576

(Federal Employer Identification Number)

FLOTILLA FINANCE

NONPROFIT

The Coast Guard Auxiliary Association, Inc. is a

501(c)(3) nonprofit organization.

Flotilla units are not 501(c)(3) nonprofit organizations.

http://www.cgaux.org/

All Auxiliarists are members of the CGAA.

There are no fees or dues for CGAA membership.

FLOTILLA FINANCE

DONATIONS

Donations that need to be made to a 501(c)(3)

nonprofit organization need to go through the

Coast Guard Auxiliary Association, Inc.

Auxiliary Manual CONDTINST M16790.1G (series)

Chapter 5, Section H. Solicitations, Gifts & Donations

Donations to the Auxiliary are tax deductible

under Internal Revenue Code - IRC 170(c)

FLOTILLA FINANCE

SALES TAX

The U. S. Coast Guard Auxiliary is “ a non-

military organization administered by the

Commandant of the Coast Guard under the

direction of the Secretary of Homeland

Security”

Sales to the Auxiliary may not

be subject to sales tax.

FLOTILLA FINANCE

SALES TAX

Members of the Auxiliary who make purchases on behalf of the Auxiliary may request a Sales Tax Exemption letter from DSO-FN.

All transactions must flow through the flotilla bank account with original receipts.

Use of this exemption for personal purchases is considered tax evasion punishable by law.

FLOTILLA FINANCE

SALES TAX

$ave on flotilla purchases -

It all adds up!

FLOTILLA BUDGET

A budget approved by membership vote

complies with AUXMAN

Without approved budget each expense

requires membership vote for approval

Unit funds may only be spent or

committed by vote, unless stated in the

Standing Rules.

FLOTILLA BUDGET

Flotilla Procedures Manual identifies budget items as:

Fixed Expenses:

• Division, District and National dues

• Cost of the meeting place

Variable Expenses:

• Equipment

• Public education and training materials

• Flotilla fellowship

• Publishing newsletters and notices

• Authorized awards

• Flags, pennants and Auxiliary uniform accessories

• Other expenditures authorized in the Flotilla Budget

PREPARE A BUDGET

Form a Budget Committee

Ask leaders to submit their budgets

Estimate next years income & expense

Budget Committee reviews each item

Approval by flotilla membership vote

BUDGET EXAMPLE

2014 2015Actual Budget Notes for 2015 calculations

INCOME/EXPENSEINCOME

Public Education FeesABS course 900.00 1,500.00 50@$30

Total Course Fees 900.00 1,500.00

Dues IncomeAnnual Dues Income 1,530.00 1,530.00 34@$45 (2016 pre-paid dues)

New Member Dues Income 45.00 180.00 4@$45

Total Dues Income 1,575.00 1,710.00

Interest/Miscellaneous Income 5.00 5.00Total 5.00 5.00

TOTAL INCOME: 2,480.00 3,215.00

EXPENSESPublic Education Expense

ABS course materials 345.00 575.00 $115.00 x 5sets

Brochures/Refreshments 45.00 75.00Total PE Expense 390.00 650.00

Member Dues ExpenseNew member dues: 26.00 104.00 4@$26

Annual Dues - (pay the following year)Division 238.00 238.00 34@$7

District 238.00 306.00 34@$9

National 408.00 408.00 34@$12

Total Dues: 910.00 1,056.00

Other ExpenseShipmate of the Quarter 50.00 50.00Member Awards & Recognition 40.00 60.00Conference/Meetings 40.00 100.00 COW (4 GUESTS)

Total Other Expense: 130.00 210.00

TOTAL EXPENSE: 1,430.00 1,916.00

INCOME: 1,050.00 1,299.00

U. S. Coast Guard AuxiliaryFLOTILLA BUDGET 2015

MEMBERSHIP DUES

Flotillas are billed

annual dues for

all members

listed in AuxData

on January 1

MEMBERSHIP DUES

Dues are collected for

◦ Flotilla

◦ Division

◦ District

◦ National

New member dues are collected separately

for current year and next year.

New member dues are collected at the

time of application for the current year.

MEMBERSHIP DUES NEW MEMBER DUES for the Current Year (example)

Division, District and National dues are invoiced quarterly to the Flotilla:

Example based on $45.00 annual dues. Flotillas may choose to assess new member dues for the

current year by charging the full year, by the quarter or by the half-year.

JAN-MAR

75%

APR-JUN

50%

JUL-SEP

25%

OCT-DEC

0%

Division 5.25 3.50 1.75 N/C

District 5.25 3.50 1.75 N/C

National 9.00 6.00 3.00 N/C

Total Due: $19.50 $13.00 $6.50 N/C

Rate $45.00 100% 75% 50% 25%

To Flotilla 25.50 20.75 16.00 11.25

Collect: $45.00 $33.75 $22.50 $11.25

MEMBERSHIP DUES

ANNUAL DUES for NEXT year (example)

Flotilla 19.00

Division 7.00

District 7.00

National 12.00

Total: $45.00

MEMBERSHIP DUES

ANNUAL DUES

◦ JULY - Issue dues notice with a due date for payment of dues for next year.

◦ AUG – Issue 2nd request by letter after 30 days to members who have not paid. Include Form ANSC 7035. Include stamped, self-addressed envelope

FC should use all means to contact and retain members. (Flotilla Procedures Manual)

Keep copies and notes of all communications

MEMBERSHIP DUES

ANNUAL DUES

◦ SEP – Issue ANSC 7035 to member

◦ Your letter should explain disenrollment date for non-payment of dues

◦ Request AUX ID return

◦ Thank the member for their prior service

◦ Send by Certified Mail, Return Receipt Requested

◦ Include stamped, self-addressed envelope

Keep copies and notes of all communications

MEMBER DUES Member responds with payment

◦ Deposit the check

◦ Record the payment

◦ Void form ANSC 7035

MEMBER DUES Non-payment of Dues

What happens if a member does not respond

and does not pay member dues?

MEMBER DUES Dues & Member Transfers

When a member pays their

annual dues to a unit and

transfers before January 1st,

the dues collected should be

forwarded to the new flotilla.

MEMBER DUES Member is disenrolled & returns

If a member is disenrolled late and the paperwork is

not processed on time, the flotilla is responsible for

their annual dues.

If the member decides to pay, the flotilla will be billed

again when the member is reinstated.

National will no longer make corrections for members disenrolled and

returning to the Auxiliary.

MEMBER DUES Member is disenrolled & returns

What you can do about the double dues penalty:

◦ Penalty for late payment after disenrollment

◦ Appendices to Flotilla Standing Rules may be adopted

◦ Approval with 2/3 of the voting members present

MEMBER DUES Death of Member

FC submits ANSC 7035 to DCDR to report death

of a member.

Confirm the death and obtain obituary information

if possible for DSO-HR to report membership news.

AUDIT & INVENTORY Form 7025

DUE JANUARY 31

1) Financial Report of An Auxiliary Unit

2) Unit Inventory Record

Submit to Division Commander (DCDR)

AUDIT & INVENTORY Form 7025 – PAGE 1

PRIOR YEAR BALANCE

CURRENT YEAR

+ INCOME

- EXPENSE

= END OF YEAR BALANCE

AUDIT & INVENTORY Form 7025 – PAGE 2

Unit Inventory Record

Must be signed by

• outgoing FC

• incoming FC

• outgoing FSO-MA

• Incoming FSO-MA

• Audit Committee

AUDIT & INVENTORY Form 7025 - Unit Audit Committee

Audit Committee reviews all documents

• Approved budgets

• Monthly bank statements

• Bank year end reconciliations

• January bank statement (current year)

• Cancelled checks

• Receipts for all expenditures

• Check book and/or check register

• Copies of Forms 7025 with signatures

FLOTILLA FINANCE

FSO-FN information resources:

Flotilla Commander

Division 12 SO-FN

Flotilla Procedures Manual

Auxiliary Manual COMDTINST M16790.1G

Barbara Burchfield, State Liaison Officer-South Carolina (SLO-SC) JAN-2015

Thank you for your time and service