1. VETERANS OF FOREIGN WARS DEPARTMENT OF CALIFORNIA SCHOOL OF INSTRUCTION 2015-2016

2. INTRODUCTION Introduction by District Commander Set Goals and Expectations Have participation from Post Officers and Post Members Get Feedback

3. DEPARTMENT OFFICERS STATE COMMANDER-ROBERT MAGNER SENIOR VICE COMMANDER-DALE SMITH JUNIOR VICE COMMANDER-WAYNE WRIGHT ADJUTANT/QUARTERMASTER- NICK GUEST CHAPLAIN- MARY BANDINI JUDGE ADVOCATE- FRED HUFF SURGEON- DEB JOHNSON STATE INSPECTOR-CHUCK ANFUSO CHIEF OF STAFF-ALEX BROWN

4. The Post Quartermaster “A major factor in the success or failure of a Post is the ability and efficiency of the Quartermaster”

5. Post Quartermaster Chief Financial Officer of the Post. Custodian of all Post Property. Accountable to the Post, Department and National. Only one authorized to receive, handle, disburse and account for funds of the Post. There are no exceptions to this rule. No one within the Post can take this authority and responsibility from the Quartermaster. No Post member can mandate the expenditure of funds or disposition of Post Property unless properly authorized by the Post and executed by the Quartermaster.

6. Responsibilities & Qualifications  Responsibilities Custodian of the money and property of the Post. Guardian of its finances and the keeper of the financial records. Plays an important role in collecting and processing dues.  Qualifications Must be dependable, honest and capable. Must be able to perform basic math. Must understand basic banking procedures. Hardest worker in the Post.

7. Duties Duties of the Quartermaster are set forth in Section 218 (a)(5) of the Manual of Procedure. Among the duties of a Post Quartermaster, they shall: – Secure a bond – Collect all monies due the Post – Disburse funds – Receive annual dues – Provide required data to Post Trustee’s – Maintain a Dues Reserve fund – Maintain a Post Relief Fund – Comply with, and perform all duties required of him by the laws and usages of this organization, applicable By-Laws and order’s from lawful authority, and perform such other duties as are incident to such office

8. Control of Canteen Funds All Canteen money, property, assets, books and records must be placed in the care and custody of the respective Quartermaster. All Canteen money, property, assets, books and records shall be subject to the same rules and under the same procedure as any Post money, property, assets, books and records.

9. Insurance Any Post owning and operating a canteen or other facility available to members or guests must maintain general liability insurance, including, if necessary or appropriate, liquor liability insurance. Such insurance must be of a type and amount sufficient to protect the Post and must name, as additional insured's, the Veterans of Foreign Wars of the United States and the Department in which such Post is located.

10. Taking Over as Quartermaster Previous Quartermaster must be given a “Clean Slate” by the Post Trustees. Never, under any circumstances, accept the responsibility for Post funds before this is done. Once you take over officially, you will be the person “in the middle” if the books and records are not accurate. Ensure proper signature cards are on file with the bank. Make deposits at regular intervals, rather than letting checks and money accumulate. No bills should be paid in cash. All disbursements should be by check only. This assures an adequate, accurate record.

11. Clear & Accessible Records Financial record keeping must include complete and clear documentation of all financial transactions. It cannot be reiterated enough the importance of being prudent in the financial record keeping of your post, as it can determine the survival or failure of the post. Every financial transaction must be documented, so it can be easily traced in the event of an audit or inquiry.

12. Authority to Disburse A Quartermaster may NOT disburse funds without receiving proper authority from the Post. Bills are presented to the Post for action before they are paid unless they are included in an approved Post budget. Bills must be clearly explained to the membership. When the Post votes approval, it is the authority for the Quartermaster to disburse funds in the amount designated on that bill. Unless this is done, the Quartermaster is without authority to pay the bill.

13. Invoices Must be self-explanatory Whom the money is to be paid How much is to be paid and for what Must have the correct signatures as required by the By-Laws If payment is reimbursement, must be supported by the receipted bills All bills submitted for payment must have an invoice/receipt You can never have too much proof for the proper receipt and disbursement of funds

14. Financial Report The Post Quartermaster makes a report to the Post on its finances at each monthly Post meeting. This report is taken directly from the Quartermaster’s ledger. It is made out on Form 4208, Quartermaster’s Detail of Monthly Receipts and Expenditures It must be accurate and current

15. Action on the Quartermaster’s Report All financial transactions and the final action of the Post must be recorded in the minutes by the Post Adjutant. This is important because it is the Post’s official record showing the QM has brought the report before the Post. Suggested motions: – If the QM records have been audited by the Post Trustees: “Comrade Commander, I move to accept the QM report as presented.” – If the QM records have not been audited by the Post Trustees: “Comrade Commander, I move to accept the QM report subject to audit.”

16. Bonds Section 703 requires each officer accountable for funds or property must be bonded in a sum at least equal to the amount of the liquid assets on hand or as can be anticipated in the future. Most insurers issue what are called schedule bonds meaning the office is bonded, not the individual. Bonds do not cover money lost through burglary, careless handling, losing it, mysterious disappearance or mismanagement. The bond does not take the place of insurance in any way. It pays only for loss due to fraud or dishonest acts of the person/position bonded.

17. Online Membership System (OMS) OMS is a quick and easy way for you, as the Post Quartermaster, to handle all reporting of membership dues to National HQs as well as maintain information on members of your Post. By using OMS your information is updated within 1 business day. This saves time and money, no more postage. As QM you will have access to “View Account History” where you can see every transaction that you have submitted through OMS. Any questions or need help, call 1-800-963-3180.

18. Financial Reporting/Forms Section 218, Manual of Procedure states “The books and records of the Quartermaster shall be maintained in a legible and uniform format. Record keeping by electronic means may be used, provided a back-up and a hard copy is maintained.” The Receipts, Expenditure and Distribution Ledger #4204, better known as the Post Ledger or Quartermaster’s Ledger, is the most important financial record of the Post.

20. Financial Reporting/Forms The Ledger book contains various columns for the entry of the following information: 1.Post Deposits 2.Date 3.From or To 4.Reason 5.Receipt or Check Number 6.Cash and bank – Received or Expended 7.National and Department Dues – Received or Expended 8.Application Fees – Received or Expended

21. Financial Reporting/Forms cont. 9. Post General Fund – Received or Expended 10. Relief Fund – Received or Expended 11. Post Dues Reserve – Received or Expended 12. Additional blank columns for extra funds as may be required Each of these columns requires an entry at one time or another. The overall idea of these columns is to answer The following questions:

22. Financial Reporting/Forms cont. a.When? – This is answered by the entry in the DATE column. b.Who? – This is answered by the entry in the FROM OR TO column. c.Why? - This is answered by the entry in the REASON column. d.How? - This is answered by the entry in the RECEIPTS OR CHECK NUMBER column. e.How Much? - This is answered by the entry in the CASH & BANK column. f.Where to or where from? - This is answered by the entry in the VARIOUS FUND column. (Refer to QM Ledger Form provided)

23. Quartermaster Exercise #1 On 7/23/14, Chris Smith, a new member in your Post pays his dues of $45.00 to you. You write him receipt #13 for $45.00. Make the appropriate entries into the QM ledger.

24. Quartermaster Exercise #1 Cash & Bank Nat/Dept Dues Post General Fund Post Dues Reserve DateFrom/ToReasonRec/ChkReceived ExpendedReceivedExpended 7/23/14C. SmithNew Member #13$45.00$31.50$6.75

25. Quartermaster Exercise #2 On 7/23/14, John Boyd, a unpaid member of your post paid $45.00 reinstatement dues to you. You write him receipt #14 for $45.00. Make the appropriate entries into the QM ledger.

26. Quartermaster Exercise #2 Cash & Bank Nat/Dept Dues Post General Fund Post Dues Reserve DateFrom/ToReasonRec/ChkReceived ExpendedReceivedExpended 7/23/14J. BoydReinstated Member #14$45.00$31.50$6.75

27. Quartermaster Exercise #3 On 25 July 2014, you make check #110 out to the Water Company in the amount of $63.75 to pay the Post’s water bill. Make the appropriate entries in the QM Ledger.

28. Quartermaster Exercise #3 Cash & Bank Nat/Dept Dues Post General Fund DateFrom/ToReasonRec/ChkReceivedExpendedReceivedExpendedReceivedExpended 7/25/14Water Company Water Bill#110 63.75

29. Quartermaster Exercise #4 On 7/28/14 you write check #111 to pay your Canteen employee Christi Larson her bi-monthly wages in the amount of $1000.00. Make the appropriate entries in the QM Ledger.

30. Quartermaster Exercise #4 Cash & Bank Post General Fund Canteen Fund DateFrom/ToReasonRec/ChkReceivedExpendedReceivedExpendedReceivedExpended 7/28/14Christi Larson Wages#111 $1000.00

31. Quartermaster Exercise #5 On 7/28/14 you make check #112 in the amount of $63.00 to National Headquarters for your monthly dues transmittal. Make the appropriate entries in the QM Ledger.

32. Quartermaster Exercise #5 Cash & Bank Nat/Dept Dues Post General Fund DateFrom/ToReasonRec/ChkReceivedExpendedReceivedExpendedReceivedExpended 7/28/14National HQs Monthly Dues Xmtal #112 $63.00

33. Quartermaster Exercise #6 On 7/28/14 the Canteen Manager gives you the Weekly Receipts for the Post Canteen in the amount of $3200.00. You write out receipt #15 for them. Make the appropriate entries in the QM Ledger.

34. Quartermaster Exercise #6 Cash & Bank Post General Fund Post Canteen Fund DateFrom/ToReasonRec/ChkReceivedExpendedReceivedExpendedReceivedExpended 7/28/14CanteenWeekly Receipts #15$3200.00

35. Quartermaster Exercise #7 On 7/29/14 at a Post meeting, the membership votes to pay the dues in the amount of $31.50 for a member who is in distress. Make the appropriate entries in the QM Ledger.

36. Quartermaster Exercise #7 Cash & Bank Nat/Dept Dues Post General Fund DateFrom/ToReasonRec/ChkReceivedExpendedReceivedExpendedReceivedExpended 7/29/14Transfer Funds Hardship Dues $31.50 Post Dues ReservePost Relief Fund ReceivedExpendedReceivedExpended $31.50

37. Quartermaster Exercise #8 On 7/30/14 you make check #113 in the amount of $31.50 to National Headquarters for your monthly dues transmittal. Make the appropriate entries in the QM Ledger.

38. Quartermaster Exercise #8 Cash & Bank Nat/Dept Dues Post General Fund DateFrom/ToReasonRec/ChkReceivedExpendedReceivedExpendedReceivedExpended 7/30/14National HQs Monthly Dues Xmtal #113 $31.50

40. Financial Reporting/Forms Detail of Receipts and Disbursements Form #4208 is designed to assist Post QM’s in the listing of Receipts and Disbursements between and during Post meetings. All receipts and disbursements must be itemized in detail. Post Trustees must ascertain if all receipts and disbursements have been properly listed.

42. Quartermaster Exercise #9 In preparation for your upcoming monthly Post August meeting and using your completed QM Ledger worksheet for July, fill in the remainder of your QM Detail of Receipts and Expenditures Worksheet for July for presentation at your meeting.

43. Quartermaster Exercise #9 Rcpt No. Receipts (Detail Each) Ck No.Disbursements (Detail Each) 13Chris Smith (New Member)$45.00110Water Company$63.75 14John Boyd (Dues)$45.00111Cristi Lawson Wages$1,000.00 15Canteen Weekly Receipts$3200.00112Nat HQs Dues Transmittal$63.00 Fund Xtfr Dues Hardship$31.50Fund Xtfr Dues Hardship$31.50 113Nat HQs Dues Transmittal$31.50 Total Receipts$13,022.00Total Disbursements$7,188.28

44. Quartermaster Exercise #10 Using your completed QM Ledger Worksheet for the month of July, complete the Statement of Funds portion of your July Detail of Receipts and Disbursements Worksheet located at the bottom of the form.

45. Quartermaster Exercise #10 Statement of FundsCash Balance Last Report Receipts for This Period Disbursements For the Period Cash Balance This Period National and Department Dues$283.50 $0.00 Admission Fees$0.00 Post General Fund$1,341.32$469.50$508.28$1309.29 Post Relief Fund$134.89$0.00$31.50$103.39 Post Dues Reserve Fund$0.00$60.75$0.00$60.75 Post Home or Building Fund$710.00$0.00 $710.00 Post Canteen or Club Fund$0.00$12,050.00$6,200.00$5,850.00 Life Membership Fund$0.00$165.00 $0.00 Totals$2,186.21$13,022.00$7,188.28$8019.93

47. Financial Reporting/Forms Continued Miscellaneous Receipts Form #4200 must be issued for all funds including dues. – It is of the utmost importance that proper receipts are issued for all money received. – Commercial Receipt forms are also authorized for use by the Post Quartermaster. Ensure that the commercial form used has duplicate or triplicate capability.

48. Financial Reporting/Forms Continued Post Trustees’ Report of Audit #4214 – At the end of each quarter it is the duty and responsibility of the Post Trustees’ to complete this form and submit it to the Department QM.

49. Financial Reporting/Forms Continued The preparation and completion of the Post Trustee’s Report of Audit at the end of each quarter is the duty and responsibility of the Post Trustees. In those instances where, upon recommendation of the Post Trustees and authorization by the Post, qualified accountants are engaged to perform the quarterly audit. It still remains the duty of the Post Trustees to submit the completed audit to the Department Quartermaster.

51. Financial Reporting/Forms Continued Explanation of Audit Form #1-9 FUNDS – Listed are those funds most likely to be carried by a VFW Post or District. Any special funds may be added in the blank spaces. A “fund” is an account which normally has both income and expenditures. In most cases, just about all of your miscellaneous (community service, youth activities, officers expenses, etc) are chargeable to your general fund and most misc income (proceeds from fund raising activities, dues, etc) are credited to your general fund.

52. Financial Reporting/Forms Continued Explanation of Audit Form #10 NET CASH BALANCES AT BEGINNING OF QUARTER – The figures in this column are obtained from different funds as listed in your ledger. The individual items in this column as well as the total at the bottom of the column should be the same as the ending balances of the previous quarter.

53. Financial Reporting/Forms Continued Explanation of Audit Form #11 RECEIPTS DURING QUARTER – The figures in this column are obtained by adding the amount shown in your ledger for the three months. This should include items transferred into a fund from another fund during the quarter. #12 EXPENDITURES DURING QUARTER – The figures in this column are obtained by adding the expenditures for each month. Include items transferred out of another fund during the quarter.

54. Financial Reporting/Forms Continued Explanation of Audit Form #13 NET CASH BALANCE AT END OF QUARTER – The figures in this column are obtained by adding items 10 & 11 and subtracting item 12. #14 TOTALS – The figures in this line are obtained by adding the totals of items 10 & 11 and subtracting item 12 – you should arrive at the same figure by adding item 15.

55. Financial Reporting/Forms Continued Explanation of Audit Form #15 TOTALS – Total should equal item 10 plus item 11 minus item 12. #16 OPERATIONS – Answer questions as applicable.

56. Financial Reporting/Forms Continued Explanation of Audit Form #17 RECONCILIATION OF CASH & INVESTMENT Ending balance per statement: Enter ending balance shown on bank statement Less: Outstanding Checks: Total checks written on or before the date of the bank statement that have not cleared the bank.

57. Financial Reporting/Forms Continued Explanation of Audit Form Account Balance: Subtract outstanding checks and add deposits not posted from the ending balance per the bank statement.

58. Financial Reporting/Forms Continued Explanation of Audit Form Savings Account: Enter balance of any savings accounts. Cash on hand: Amount of money on hand that has not been included in “Deposits not posted” above. Total Cash: Add all amounts in this column.

59. Financial Reporting/Forms Continued Explanation of Audit Form Bonds & Other Investments: Enter value of bonds and other investments. Total Cash and Other Investments: Add bonds and Other Investments line to Total cash line. This figure should be the same as the amount in Box 15.

60. Financial Reporting/Forms Continued Explanation of Audit Form #18 TRUSTEES’ AND COMMANDER’S CERTIFICATE OF AUDIT – Enter the date the audit is prepared, the Post name and number and the quarter for which the audit is prepared. The Post Commander and Trustees must sign the Audit prior to submittal to the department.

61. Financial Reporting/Forms Continued Explanation of Audit Form #18 Continued: Enter the name of the Post Quartermaster, the name of the bonding company, the amount of the bond and the expiration date of the bond. It is the duty of the Post Trustees to conduct the quarterly audit. It is the duty of the Commander to see that audits are made.

62. Financial Reporting/Forms Continued Explanation of Audit Form Note: The completed form, with the signatures of the Post Trustees certifying its accuracy, together with the signature of the Post Commander, shall be forwarded to the Department Quartermaster prior to the end of the month starting the next quarter. The Post Trustees should also sign the general ledger at the ending point of the current audit period.

63. Quartermaster Exercise #11 Using your three completed handouts of Detail of Receipts and Expenditures worksheets for July, August and September, your blank Quarterly Audit handout, complete your Quarterly Audit for the 3 rd quarter. Your ending balance on your bank statement is $22,540.82 and outstanding checks is $2,833.20. You have no savings or cash on hand.

64. Quartermaster Exercise #11 FUNDS10. Net Cash Balance At beginning of Quarter 11. Receipts During Quarter 12. Expenditures During Quarter 13. Net Cash Balance At End of Quarter 1. National & Department Dues$850.00 $0.00 2. Admission Fees 3. Post General Fund$1341.32$1408.505$1524.84$1224.98 4. Post Relief Fund$134.89$0.00$94.50$40.3 5. Post Dues Reserve Fund$182.25 6. Post Building Fund$710.00 7. Post Canteen Fund$36.150.00$18,600.00$17.550.00 8. Life Membership Fund$495.00 9. Bonds and Investments not Credited to Funds 14. TOTALS:$2,186.21$39,066.00$21,564.84(15.) $19,687.37

65. Quartermaster Exercise #11 16. Operations17. Reconciliation of Fund Balances Have required payroll deductions been made?YesChecking Account Balance $22.540.82 Have payments been made to the proper State and Federal agencies this quarter? YesLess Outstanding Checks $2,833.20 Have sales taxes been collected and paid?YesActual Balance $19,707.62 Are Club employees bonded?Manager OnlySavings Account Balance Amount of Outstanding bills$Cash on Hand Value of real Estate$Total Amount of Liability Insurance$Bonds and Investments Owed on Mortgage and Loans$Total Value of Personal property$ Amount of Property Insurance$

67. QUESTION & ANSWERS

68. DEPARTMENT CONTACT INFORMATION Nick Guest nguest@vfwca.org@vfwca.org Steve Milano milano@vfwca.org Mary Kienlen kienlen@vfwca.org Erinn Thomas thomas@vfwca.org

69. WE APPRECIATE YOUR PARTICIPATION!