Finance Manual

The American Legion

Revised 10/31/2009

Finance Manual

TABLE OF CONTENTS

Chapter 1 Accounts Payable .............................................................................................................................. 1

1.1 Dual Control System ...................................................................................................................... 1

1.2 Invoices and Check Requests ........................................................................................................ 1

1.3 Approval Procedures ..................................................................................................................... 1

1.4 Process and Delivery of Checks ..................................................................................................... 2

1.5 Emergency Checks ........................................................................................................................ 2

1.6 orp C orate Visa Card ...................................................................................................................... 3

1.6.1 Credit Card Request Process .................................................................................................................. 3

1.6.2 Credit Card Use ............................................................................................................................................ 3

Chapter 2 Accounts Receivable ........................................................................................................................ 7

2.1 ubm S ittal Schedule ....................................................................................................................... 7

2.1.1 Monthly Deadline ....................................................................................................................................... 7

2.2 Payment of Accounts .................................................................................................................... 7

2.3 Accounts Receivable Adjustments ................................................................................................ 7

2.4 Request to Bill ............................................................................................................................... 8

2.5 Finance Invoices ............................................................................................................................ 8

2.6 Statement of Account ................................................................................................................... 8

Chapter 3 Budgets & Projections – NOT UPDATED ................................................................................ 12

3.1 Overview ..................................................................................................................................... 12

3.2 Process and Timing ..................................................................................................................... 12

3.3 On‐Line Computer budgeting ..................................................................................................... 13

3.4 End‐of‐Year Projections .............................................................................................................. 13

Chapter 4 Chart of Accounts – NOT UPDATED .......................................................................................... 15

Chapter 5 Contracts, Leases, and Maintenance Agreements .............................................................. 43

5.1 Record Retention ........................................................................................................................ 43

5.2 Authority to Sign ......................................................................................................................... 43

5.3 Responsibility of Control ............................................................................................................. 43

Chapter 6 Furniture & Fixtures ..................................................................................................................... 44

6.1 Overview ..................................................................................................................................... 44

CHAPTER 1 0BACCOUNTS PAYABLE PAGE I

6.2 Purpose Of Capitalizing ............................................................................................................... 44

TABLE OF CONTENTS

6.3 Useful Life Guidelines.................................................................................................................. 45

6.4 Purchases .................................................................................................................................... 45

6.5 Emergency Purchases ................................................................................................................. 46

6.6 Resolution Purchases .................................................................................................................. 46

6.7 General Information ................................................................................................................... 46

6.8 ispo D sal Of Assets ....................................................................................................................... 47

6.8.1 Disposal Procedures ................................................................................................................................ 47

6.8.2 Lost or Stolen Assets ............................................................................................................................... 48

6.9 Transfer Of Assets ....................................................................................................................... 48

Chapter 7 Miscellaneous .................................................................................................................................. 51

7.1 Dunn & Bradstreet ...................................................................................................................... 51

7.2 Write Offs .................................................................................................................................... 51

7.3 Journal Entries (Corrections to Responsibility Detail Report) ..................................................... 51

7.4 end S ing Flowers .......................................................................................................................... 51

7.4.1 Notification .................................................................................................................................................. 51

7.4.2 Death of an Employee or Immediate Family Member ............................................................... 52

7.4.3 Employee Illness ....................................................................................................................................... 52

7.4.4 Other Flowers............................................................................................................................................. 52

Chapter 8 Payroll ................................................................................................................................................ 53

8.1 Area of Responsibility/Scope ...................................................................................................... 53

8.2 Pay Periods .................................................................................................................................. 53

8.3 Pay Days ...................................................................................................................................... 53

8.4 Direct Deposit ............................................................................................................................. 54

8.5 Overtime ..................................................................................................................................... 54

8.6 Leave Without Pay ...................................................................................................................... 55

8.7 dva A nce Of Wages ...................................................................................................................... 55

8.7.1 Approved Amounts And Repayment Method ............................................................................... 55

8.7.2 Early Release of Pay ................................................................................................................................. 55

8.8 Early Distribution of Payroll Checks ............................................................................................ 56

8.9 Final Pay Checks .......................................................................................................................... 56

PAGE II CHAPTER 1 0BACCOUNTS PAYABLE

Chapter 9 Purchasing ........................................................................................................................................ 61

TABLE OF CONTENTS

CHAPTER 1 0BACCOUNTS PAYABLE PAGE III

9.1 Dual Control System .................................................................................................................... 61

9.2 Purchasing Procedures ................................................................................................................ 61

9.3 urch P ase Order or Check Request .............................................................................................. 61

9.3.1 Request for Purchase (RFP) ................................................................................................................. 61

9.3.2 Blanket Purchase Orders: ...................................................................................................................... 62

9.4 Emblem Sales Puchase ................................................................................................................ 63

9.4.1 Emblem Internal Transactions ........................................................................................................... 63

9.4.2 Request for Purchase, Emblem .......................................................................................................... 63

9.5 Furniture and Fixtures ................................................................................................................. 64

9.6 Office Supplies ............................................................................................................................ 64

9.7 Subscriptions ............................................................................................................................... 64

9.8 nvoi I ces ....................................................................................................................................... 64

9.8.1 Statement vs. Invoices ............................................................................................................................ 64

9.9 Coding ......................................................................................................................................... 64

Chapter 10 Travel and Expense Reports .................................................................................................... 66

10.1 Overview ..................................................................................................................................... 66

10.2 Travel Profile ............................................................................................................................... 66

10 .3 Authorized Staff Expenses .......................................................................................................... 66

10.3.1 Per Diem ....................................................................................................................................................... 66

10.3.2 Hotel/Motel Accommodations ............................................................................................................ 67

10.3.3 Personal Auto Transportation ............................................................................................................ 67

10.3.4 Auto Rental .................................................................................................................................................. 67

10.3.5 Miscellaneous Expenses ........................................................................................................................ 67

10 .4 Travel Order ................................................................................................................................ 68

10.4.1 Travel Estimates ....................................................................................................................................... 68

10.4.2 Travel Order Authorization Form ...................................................................................................... 68

10.4.3 Changes To Previously Approved Travel Order .......................................................................... 70

10.4.4 Cancellation Of Previously Approved Travel Order ................................................................... 71

10.5 Staff Expenses And Reporting ..................................................................................................... 71

10.6 Call‐in Expenses And Reporting .................................................................................................. 71

CHAPTER 1 ACCOUNTS PAYABLE

1.1 DUAL CONTROL SYSTEM

The American Legion National Headquarters uses a dual control system for accounting procedures involving the purchase of goods and services. This system provides that (1) any expenditure $500 or greater must be approved by the National Adjutant or his designated representative, and (2) no employee may approve payment of an invoice which has been invoiced in that employee’s name.

1.2 INVOICES AND CHECK REQUESTS

All purchases that do not require prepayment require completion of a Request For Purchase form to generate a Purchase Order prior to initiation of the transaction. Invoices that are associated with issued purchase orders should be handled through the Purchasing office according to procedures outlined in Chapter 9 of this Finance Manual. Items involving prepayment require the submission of an approved Check Request form (Exhibit 1–1 – Check Request) and include the following:

If an invoice or other documentation exists for expenditures not associated with an issued purchase order, it should be coded, approved and routed to Finance for payment; there is no need to complete a check request form if such documentation exists. Check Requests are used only when the vendor will not issue an invoice and requires payment upon receipt of goods or services and there is no other documentation available.

Check Requests for seminars, banquets or luncheons must fully describe the reason for the expenditure, list those who will be in attendance, and describe where and when (date) the function is to take place.

Check Requests for education and/or seminars must be approved by the Division Director then routed to Human Resources for final approval since the course fee is charged to H/R’s Education and Training account 16‐5653.

Invoices pertaining to subscriptions should have the subscription addressed and carried in the name of the organization or division, not in the name of an individual.

1.3 APPROVAL PROCEDURES

All accounts payable documentation must be coded with valid area and account numbers, approved by the authorized person, and routed to Finance for processing. A listing of active areas and account numbers are listed in Chapter 4 of this manual. Any materials that need to be sent with checks should be attached to the invoice or check request to let Finance know that it needs to be sent with approved check. If the Division Director is unavailable the payable should be given to the

CHAPTER 2 1BACCOUNTS RECEIVABLE PAGE 1

next in line who is authorized to sign for approval.

When authority to approve expenditures is given to someone within a division, Finance must be notified in writing. Finance maintains a list of people authorized to sign and our auditing firm verifies this list both in December and February when they are on‐site to audit the Legion’s

financial records. Divisions should check with the Finance division if they are unclear who has authority to sign within r d thei ivision.

1.4 PROCESS AND DELIVERY OF CHECKS

Checks are usually printed Tuesdays and Thursdays and presented to the National Treasurer for approval and release. Checks are usually delivered in the building the same day prior to close of business (4:30pm) and mailed outside the building the following morning. Occasionally this schedule will vary. All questions relating to process and delivery of checks must be directed either to the National Finance Director, the Deputy Director or the Assistant Director in charge of Accounts Payable. Do not call the Junior Accountant (Payables) with questions relating to process and delivery of checks.

Employees requiring a check on a certain day should so indicate on their check request or other source document. All requests must be in written form. Whenever possible, the Finance Division should be given at least 24 hours notice when such requests are made. If it is not possible to provide such notice, the request should be personally presented to the Finance Division by 9:00 am the day checks are issued. Check requests for same day service delivered after 10:00 am will be considered to be “emergency situations” and their handling will be according to the below procedure governing emergency checks.

Normal processing procedures entail the Finance Division mailing checks directly to vendors or payees. Related documents that should be mailed with the checks should be attached to the invoice or check request in such a way that Finance personnel will know to send with the check. If a check is to be hand delivered, the Division Director may request by memorandum that the check be delivered directly to his or her office instead of mailed by the Finance Division. When this is deemed necessary, do not attach original documentation that is to be delivered with the check.

Travel Advance checks will be distributed two to three days prior to the employee’s departure. See Travel and Expense Report procedures in Chapter 10 of this manual for details concerning Travel Order preparation and Travel Advances.

1.5 MER ENCY CHECKS E G

Emergency situations are determined either by National Officers, Executive Directors, or the National Finance Director. When a check is required in an emergency situation that precludes the use of normal procedures, the request should be presented to the National Finance Director. Approval to issue emergency checks will be granted only in cases of genuine emergency. Situations

PAGE 2 CHAPTER 2 1BACCOUNTS RECEIVABLE

caused by improper planning are not thought to be emergencies.

In the absence of the National Treasurer, either the National Adjutant or National Judge Advocate may execute such a check in Indianapolis; either the Executive Director or Office Manager ‐ Administration may execute such a check in Washington DC. These are the only officers or employees authorized to sign emergency checks. In their absence, it will not be possible to issue a check.

1.6 CORPORATE VISA CARD

The American Legion has a Visa corporate credit account with First National Bank Of Omaha (FNBO). These cards are issued to employees who travel extensively and must be approved by the National Adjutant.

1.6.1 CREDIT CARD REQUEST PROCESS

Use of an American Legion Corporate credit card must be approved by the Division Director, Executive Director and National Adjutant. A letter or e‐mail requesting the card must be sent to, and approved by, the individuals listed above. Once approved, the letter or e‐mail is sent to the Deputy Finance Director in the Indianapolis Office for processing. Upon receipt of the new Visa card, the employee must complete and sign an Acknowledgement Receipt (Exhibit 1–2 – Credit Card Receipt), forwarding it to the Deputy Finance Director.

1.6.2 CREDIT CARD USE

The American Legion Credit Card is to be used for official business only. When using the card the following steps must be followed:

1) At the time of charge, retain the customer copy and write on the back of this copy pertinent information, i.e., who, what and why, concerning this official expenditure.

2) The employee will receive, at his/her business address, a monthly Visa statement from First National Bank Of Omaha. Within three working days of receiving this statement, a monthly Corporate Credit Card Expense Report form (Exhibit 1–3 – Credit Card Expense Report) must be completed and submitted, with the Visa statement, corresponding receipts, customer copies, etc. to his/her director for approval. If more than one form is required, the total amount of the monthly invoices should be posted on the last page only. Directors will forward all forms to the Executive Director. The Executive Directors will in turn submit these statements and their own to the National Adjutant for approval.

3) Once approved, the statement will be sent to the Finance Division for payment to FNBO.

4) If personal charges are mistakenly charged to the business account a personal check must be attached to the monthly Visa statement for the amount of the personal charges.

5) Disputed Charges ‐ If a charge in excess of $2.00 is disputed, a letter of dispute should be written to First National Bank, explaining what charges are being disputed, the amount and the reason why you are disputing the charge. The account number and the individual’s name that is on the account should also be included in the letter. This letter should be attached to the Monthly Visa Charges Expense Report. The Finance Division will forward it to FNBO. Finance will keep a log of all past and current disputed charges, the associated dates of activity and the disposition of these disputes.

6) Office Supplies – The credit card should not be used for office supplies if at all possible.


Office supplies should be purchased through Purchasing

EXHIBIT 1–1 – CHECK REQUEST


EXHIBIT 1–2 – CREDIT CARD RECEIPT



EXHIBIT 1–3 – CREDIT CARD EXPENSE REPORT

CHAPTER 2 ACCOUNTS RECEIVABLE

2.1 SUBMI TAL SCHEDULE T

The Accounts Receivable system is processed daily. Checks received prior to 10:00 a.m. will be processed and deposited the same day.

2.1.1 MONTHLY DEADLINE

Documentation must be received in the Finance Division no later than 11:00 AM on the last working day of the month in which a receivable is to be booked. (Year‐end closing is an exception).

2.2 PAYMENT OF ACCOUNTS

The Finance Division will accept payment by either check or cash when accompanied by an invoice or Credit Slip (Exhibit 2–1 – Credit Slip). Cash remittances for Finance invoices must be paid using ONLY the exact amount of change.

Money, either in the form of cash or check, without documentation or invoice must be accompanied by a Credit Slip. The credit must be turned in with the money and filled out completely. The follo inw g itemizes the components of the Credit Slip:

1) Remitter and Address ‐ Person or organization turning in funds, including address

. 2) Reason For Credit ‐ Complete description of the items. Segregate cash from checks.

3) Account ‐ Four digit General Ledger account number the funds are to be charged. 4) Area ‐ Two digit identification number of the Accounting Unit (Division) to be charged.

eck) in 5) Amount – Amount of the funds turned in by individual account and type (cash or ch

dollars and cents.

6) Requested by and Date ‐ The name of the person requesting the credit slip and date. 7) Approved By and Date ‐ Authorized signature of approval by the Director, Deputy Director,

or Assistant Director and date of approval.

2.3 ACCOU TS RECEIVA DJUSTMENTS N BLE A

Adjustments to accounts receivable and redirecting of received funds are accomplished with a Debit/Credit Memo (Exhibit 2–2 – Debit/Credit Memo). The debit/credit memo is used to adjust receivable accounts by funds received via payroll deduction, adjust a receivable account for overpayment, or to redirect funds for payment of more than one receivable account (such as a

able). single payment for a Legion receivable and an Emblem Sales receiv

The ll ponents of the Debit/Credit Memo; fo owing itemizes the com

1) Date ‐ Date of request.

2) e

CHAPTER 3 2BBUDGETS & PROJECTIONS PAGE 7

To ‐ Name of person in Finance Division or Emblem Sales adjusting th receivable. 3) Action ‐ Specify either “debit” or “credit.”4) Explanation – Explanation of reason for adjustment including invoice number that

adjustment applies to.

5) Name/Account ‐ Name and account number for entity receiving adjustment. 6) Amount ‐ Amount to adjust in dollars and cents.

General Ledger account number to be

7) Area/Acct # ‐ Two digit division and four digit revised.

8) Name ‐ of person initiating the Debit/Credit Memo. 9) Date – Date Debit/Credit memo is prepared. 10) Authorized signature ‐ Authorized signature of approval by the Director, Deputy Director,

or Assistant Director.

2.4 REQUEST TO BILL

The Request‐to‐Bill form (Exhibit 2–3 – Request to Bill) is used by a division to invoice individuals, corporations, or departments. The form is completed as follows and turned into the Finance Division.

1) Date ‐ The date of request. ar

d. 2) geAcct ‐ The account and area to which the money is to be credited or ch

s of the entity being bille reason for the billing.

d. 3) Bill to: ‐ Enter the complete name and addres

4) Reason for billing ‐ Complete description of the

5) $ ‐ Amount of the billing in dollars and cents.t s

p6) Name ‐ of person initia ing the Reque t to Bill. 7) Date – Date Debit/Credit memo is pre ared. 8) Authorized signature ‐ Authorized signature of approval by the Director, Deputy

Director, or Assistant Director.

2.5 FINANCE INVOICES

American Legion Finance Invoices are generated by a Request to Bill form for various personal charges. Examples for these charges are: UPS postage, flowers, airline tickets, COBRA & life insurance, etc. These invoices of amounts due are Payable Upon Receipt. Individual accounts are reviewed on a semi‐monthly basis and individuals/entities with open amounts due are typically of Past Due balances. The notification will either be in the form of copies of the original invoice marked “Past Due” or by email from the Finance Director. The top of the form should be retain for your records, detach the bottom section along the perforation and return with your payment to the Finance Division.

2.6 STATEMENT OF ACCOUNT

The accounts receivable Statement of Account is used for both internal and external billings. The statements are released during the first week of each month to reflect open accounts with activity during the preceding month. Internal statements are sent for staff receivables, which have not been paid following transmittal of a Finance Billing. External statements are sent directly to that department or vendor. American Legion staff will receive a Finance Billing invoice for amounts due The American Legion. Amounts not paid properly upon receipt will be reflected on a subsequent

PAGE 8 CHAPTER 3 2BBUDGETS & PROJECTIONS

Statement of Account.

EXHIBIT 2–1 – CREDIT SLIP


EXHIBIT 2–2 – DEBIT/CREDIT MEMO

PAGE 10 CHAPTER 3 2BBUDGETS & PROJECTIONS


EXHIBIT 2–3 – REQUEST TO BILL

CHAPTER 3 BUDGETS & PROJECTIONS – NOT UPDATED

3.1 OVERVIEW

The American Legion National Headquarters uses a Zero Based Budgeting System, which is defined as a process of preparing a financial budget that starts with no authorized funds, and whereby all income and expenses must be justified for a budget year. The American Legion’s budgeting process commences in May of each year and continues until final budget approval by the NEC during the Fall Meetings. In addition to the annual budget, twice a year each division submits a 12‐month projection. The July submission projects the end‐of‐year financial status utilizing six‐months actual information, with the September projection incorporating eight months of actual data.

3.2 PROCESS AND TIMING

1) The budgeting process commences in mid‐to‐late May when the divisions receive a cover letter (Exhibit BP‐1) and an e‐mail containing a set of Excel budget worksheets (Exhibits BP‐2 & BP‐3). Upon completion, one set of these worksheets is signed by the Division Director and returned to the division’s Executive Director for review and approval; the other set of worksheets are kept by the division for their records. In addition, each preparer receives a financial report that summarizes their division’s prior year actual and budgete info a

d expenditures, as well as, their 2006 approved budget (Exhibit BP‐4). Additional rm tion can be delivered upon request. a. The cover letter discusses in detail the budget process for a given year to include

g n tprojected uidelines o certain accounts, due dates, Excel workshee instructions and furniture and fixtures requests.

b. A budget worksheet set consists of two sections. The first is an “Account Worksheet” (white sheet), (Exhibit BP‐2) used for justifying each responsibility account. The Account Worksheet includes an area in the bottom left where Finance includes prior year budget and actual, current year budget, and current year 5 & 8‐month actual data. The worksheet also includes a large Account Detail Description area at the bottom to enter justifications for amounts included on the worksheet. This section plays an important role in the approval process and should include as much detail as possible. The second is a “Budget Summary” (green), (Exhibit BP‐3) summarizing all the detail pages.

2) The budget worksheets are to be submitted by mid‐to‐late June to each division’s Executive Director for review and approval. Once the Executive Director has reviewed and approved a divisions proposed budget it is then forwarded to Finance for entry into the Lawson accounting system and creation of a Budget Report for the organization through the Report Writer module.

3) Division Director review with the National Finance Director occurs during the last week of

PAGE 12 CHAPTER 4 3BCHART OF ACCOUNTS

July. This review is to substantiate proposed budget amounts, explanations, and documentation.

4) The second week of August is scheduled for “in‐house” review by the National Finance Director, Executive Directors, and the National Adjutant of the proposed budget to meet organizational goals prior to submittal to the Finance Commission at National Convention.

5) National Convention is the time and place for submittal of the requested budget to the Finance Commission. If necessary, further changes are then made and the proposed budget readied for re‐submittal to the NEC through the Finance Commission during the Fall Meetings.

6) Late September the Budget, including any changes directed by the Finance Commission during National Convention, undergoes final review by the National Adjutant, Executive Directors, and National Finance Director.

7) Final Approval of the Budget for the next year occurs at the Fall Meetings from the NEC Budget, it cannot be through the Finance Commission. Once the NEC has approved the

changed. 8) The approved Budgets ar r. e submitted to each division in Late Octobe

3.3 ON‐LINE COMPUTER BUDGETING

In addition to the handouts, the budget worksheets are available on Excel. The Excel spreadsheets will be delivered to the Division Director via e‐mail about the same time as the handouts are delivered. The spreadsheet files will be named as xx_comp.xlt, (i.e., division 91 will be saved as 91_comp.xlt). The divisions are encouraged to save their files under a different name using the xls extension. This will ensure they have a clean copy if they need it.

Once a division has completed their budget, the spreadsheet can be printed out for signature and sent to their Executive Director. Please use green paper (blanks are provided) for the Budget Summary. The same spreadsheet can then be sent to Finance via e‐mail for upload into the Lawson system. Please e‐mail all spreadsheets to the Finance Assistant Director in charge of Budgeting. The spreadsheet sent to Finance will be crosschecked with the approved version from the Executive Director to ensure no changes have been made.

The worksheet is set up so that all data entered into the detail pages will roll up into the Summary page. There is no need to enter data into the Summary page. Also, all necessary formatting has been completed. The "Budget Summary" section of the spreadsheet is password protected to remind the users that data input into the Account Worksheets will roll up into the Budget Summary

n section. Whe entering data into the

spreadsheet, all income figures (4000 series) should be entered with a negative (minus) sign preceding the number. Expenses (5000 and 6000) series are entered as positive numbers.

Many divisions like to customize their spreadsheets. That is not a problem as long as the integrity of the spreadsheet is not lost in the process. Finance will do what we can to help maintain that customization from year to year. For example, division 30 would like to have four detail worksheets for account 5610. The last 5610 worksheet will total all four worksheets and pass totals to the summary sheet.

CHAPTER 4 3BCHART OF ACCOUNTS PAGE 13

3.4 END‐OF‐YEAR PROJECTIONS

A projection report is completed by all divisions summarizing by account a division’s best estimate of their expected total income and expense at year‐end. Projection reports are completed twice a year.


1) The first End‐of‐Year Projection (First Run) is completed in July. The purpose is to provide an annual update and comparison to Budget utilizing six months actual data. The projection will be preceded by a Projection Memorandum (Exhibit BP‐5) from the National Adjutant detailing the submittal deadline and any specific directions.

2) The second End‐of‐Year Projection (Second Run) completed in September utilizing eight months of actual data. This second run is the last status check or comparison to the annual budget for the current year.

To a vides the following information: ssist in completing the projections, Finance pro

a) Prior year 12 month actual and budget b) Current year annual budget c) First six month actual for first run and first eight month actual for second run, and the

remaining budget

The projections are sent to Finance for entry into the Lawson accounting system. The finished product is then sent back to the division for their final review. After a division has reviewed their projections they are then forwarded to the Finance Director and a projection report is produced at the organizational level for administrative review. This information is made available to the National Adjutant and the Executive Directors.

The First Run (six month) End‐of‐Year Projection is presented to the Finance Commission during the National Convention in August. The Second Run (four month) End‐of‐Year Projection is presented to the NEC during Fall Meetings.

Expenditures which are expected to exceed the approved budget by more than 5% require explanation by separate memorandum, as will income expected to fall short of expected budget by 5%.

There is no spreadsheet option for the projection report.

CHAPTER 4 CHART OF ACCOUNTS – NOT UPDATED

The Chart of Accounts of The American Legion consists of four digit accounts for the identification of assets, liabilities, income, and expenses. The listing also includes two or three digit numbers specifically identifying the divisions (Accounting Units) at Indianapolis‐700 N. Pennsylvania, Indianapolis‐Building #2, and Washington D.C..

Each division, according to need, is assigned its own set of Income and/or Expense accounts. In some cases these are the same accounts used by other divisions, so it is necessary that the division number be appended to the account number to distinguish which division is responsible for the transaction. The Asset and Liability accounts are specifically controlled by the Finance Division.

All financial transactions including check requests, credit slips, invoices, expense reports, etc. must be assigned a specific account and division number to be properly recorded in the accounting system. Unique transactions which do not seem to fit within the parameters of existing accounts should be discussed with the Finance Director.

Contents

Pages

Section A - Listing of Divisions: XI-2

Section B - Index of Accounts: XI-3

Section C - Listing of Accounts: Assets XI-4 thru XI-10 Liabilities XI-10 thru XI-16

Income XI-16 thru XI-22

Expenses XI-22 thru XI-38

CHAPTER 5 4BCONTRACTS, LEASES, AND MAINTENANCE AGREEMENTS PAGE 15

Section A

CHART OF ACCOUNTS

LISTING OF DIVISIONS

ACCTG. UNIT

ACCOUNTING UNIT NAME ACCTG.UNIT

ACCOUNTING UNIT NAME

INDIANAPOLIS‐BUILDING #1 WASHINGTON, DC 01 National Officers 60 Admin Svs‐Washington, DC 03 Committees & Commissions 61 Human Resources 05 Flag Education 62 Maintenance 63 Stenographic 10 Admin Svs. ‐ Bldg. 1, 700 N Penn 64 Mail/Messenger 12 Library/Museum 13 Maintenance 70 Admin.‐Veterans Affairs & Rehab.14 Printing & Document Processing 71 Insurance Activities 16 Human Resources 72 Claims Service 73 Field Service 20 Admin. ‐ Americanism & C&Y 74 Economic Matters 21 American Legion Baseball22 Youth Activities 80 Legislative 23 Education & Scholarship 82 Nat'l Sec./Foreign Relations 24 Children & Youth 84 Media Relations 30 Internal Affairs INDIANAPOLIS‐BUILDING #2 31 Membership & Post Activities 90 Admin. Svs. ‐ Bldg. 2, Ft. Harrison 32 Paid‐Up‐For‐Life 91 Information Technology (IT) 33 Direct Membership Solicitation (DMS) 92 HPC, Inc. 93 Marketing Ser Group Facility 40 Admin. ‐ American Legion Magazine 94 Emblem Sales41 Editorial 95 Natl Disc Prescription Prog 42 Advertising 96 Non Member Donor 43 Manufacturing & Distribution 97 Natl. Health Insurance Programs44 Internal Publications 101 FNBO Financial Programs 50 Finance 54 National Convention 58 Public Relations


Section B

CHART OF ACCOUNTS

INDEX OF ACCOUNTS

ACCOUNT NUMBERS

PAGE REFERENCE

GENERAL CATEGORIES

ASSETS 1000 - 1199 4 - 4 Bank Accounts & Other Cash 1200 - 1299 4 - 5 Receivables & Accrued Interest 1300 - 1399 5 - 6 Inventories 1400 - 1599 6 - 8 Deferred Charges 1600 - 1699 8 - 9 Investments 1700 - 1799 9 - 10 Fixed Assets & Depreciation 1800 - 1899 10 - 10 Non - Expendable Fund Assets LIABILITIES 2100 - 2199 10 - 11 General Liabilities 2200 - 2499 11 - 14 Employee & Other Liabilities 2500 - 2599 14 - 15 Special Purpose Fund Liabilities 2600 - 2699 15 - 15 Designated Fund Liabilities 2700 - 2799 15 - 15 Appropriated and Unappropriated Fund

Liabilities 2800 - 3000 15 - 16 Non - Expendable Fund Liabilities INCOME 4000 - 4099 16 - 16 Transfer Income 4100 - 4199 16 - 16 Dues Income 4200 - 4299 16 - 16 Emblem Income 4300 - 4399 16 - 17 Magazine Income 4500 - 4599 17 - 19 Other Income 4600 - 4999 19 - 22 Restricted Income EXPENSES 5100 - 5199 22 - 23 Cost of Goods Sold 5200 - 5299 23 - 23 Salaries & Employee Expenses 5300 - 5399 23 - 24 Magazine Expenses 5400 - 5499 24 - 25 Travel Expenses 5500 - 5599 25 - 26 Commission & Committee Expenses 5600 - 5699 26 - 28 Operational Expenses 5700 - 5799 28 - 30 General Office Expenses 5800 - 5899 30 - 30 Occupancy & Usage Expenses 5900 - 5999 30 - 32 Allocation Accounts (Finance use only) 6000 - 6499 32 - 38 Special Project Expenses


Section C

CHART OF ACCOUNTS

LISTING OF ACCOUNTS

ASSETS

Bank Accounts and Other Cash

1110 Petty Cash-Cashier - The amount of checks that are cashed are credited to this account. A check is then issued to replenish account. A $6,000 balance is maintained.

1111 Petty Cash-Cafeteria - $150 balance.

1112 Petty Cash-Emblem Sales - $200 balance in Salesroom.

1113 DC Check Cashing Deposits - $500 balance petty cash fund.

1114 DC General Account - $15,000 balance in checking account.

1115 Nat'l Commander's Checking Account - A $2,500 balance is maintained. The Nat'l Commander uses these funds and prepares detailed expense reports. Upon approval of these expense reports, a check is issued to replenish account.

1116 American Air Travel Deposit - $425 deposit with American Airlines which is required by them for handling our Universal Airline charge account.

1117 DC Finance Agent Account - Utilized every February to issue checks for Washington Conference expenses and September Legislative Meetings. It is funded as needed. This account also holds funds used to support Boys Nation. Account balance is $15,000.

1120 General Account-Bank One - Primary Checking Account, all receipts, cash, checks, and credit cards deposited to this account. Funds all other bank accounts.

1160 Payroll Account-Peoples Bank - Disburses all employee's payroll funded as needed from Account 1120.

1170 Special Escrow Account-NDB - Account houses the current principle and interest for an on by a court to refund subscriptions paid for but not received - "Better amount given the Legi

Times" Magazine. Receivables & Accrued Interest


1220 Accounts Receivable-Emblem - All receivables due to the Legion for sales of Emblem merchandise and are kept in the aging detail module.

1222 Open Accounts Receivable-Emblem - Receivables due the Legion from the sale of Emblem merchandise. Usually small amounts from under payment of sales orders that are shipped without receiving full payment.

1224 Other Accounts Receivable-Emblem - Account set aside for future use by Emblem. 1225 Charge Card Receivable-Emblem - Pass through account that houses the timing difference for

credit card sales from the time the sale is processed to the time the deposit is made. 1226 Charge Card Receivables-VISA - Pass through account that houses the timing difference for

Visa credit card sales from the time the sale is processed to the time the deposit is made. 1227 Charge Card Receivables-M/C - Pass through account that houses the timing difference for

MasterCard credit card sales from the time the sale is processed to the time the deposit is made.

1228 Charge Card Receivables-Novus - Pass through account that houses the timing difference for Novus credit card sales from the time the sale is processed to the time the deposit is made.

1229 Charge Card Receivables-Other - Pass through account that houses the timing difference for other credit card sales from the time the sale is processed to the time the deposit is made.

1230 Accounts Receivable-Magazine - Total receivables due for advertising in the Legion Magazine.

1240 Other Accounts Receivable-Legion - General Receivables from Finance billings by all divisions for their services, i.e. MIS has us invoice a department for tapes.

1241 Receipts Not Applied - Customer receipts not applied to a particular invoice. 1245 Internal Transaction Receivable - An internally used account to expense items to their division

and credit Emblem Sales. 1252 Accounts Receivable Default Account - Account is used to collect any receivable assigned a

wrong customer number. 1260 Accrued Affinity Income - This is the year end accrual of 4th quarter royalty income from our

Affinity Card Program. 1270 Accrued Interest-Long Term - Interest income accrued on General Fund investments. 1275 Accrued Interest-Reserve Fund - Interest income accrued on Reserve Fund investments. 1285 A

inInventories

ccrued Interest-Depreciation Fund - Interest income accrued on Depreciation Fund vestments for the DC office.


1310 Emblem Inventory-Legion - Emblem merchandise is purchased and debited to this account when check is written to pay for merchandise. When the customer is billed for the merchandise the account is credited. This account is for merchandise received at Nat'l then sold/shipped to the customer.

1311 Legion Drop-Ship Inventory - Emblem merchandise is purchased and this account is debited when the check is written to pay for the merchandise. The Emblem merchandise is sold and this account is credited when the customer is billed. This account is for merchandise that is shipped from the supplier directly to the customer.

1312 Emblem Inventory-Auxiliary - Auxiliary Emblem merchandise is purchased and this account is debited when the check is written to pay for the merchandise. Auxiliary Emblem merchandise is sold and this account is credited when the customer is billed for the merchandise. This merchandise is received from vendor and then shipped to customer.

1313 Auxiliary Drop-Ship Inventory - Auxiliary Emblem merchandise is purchased and debited to this account when check is issued to pay for merchandise. The merchandise is sold and the account is credited when the customer is billed for the merchandise. This account is for merchandise that is shipped to customer directly from supplier.

1315 Emblem Advanced Inventory - Prepaid Inventory 1317 Inventory Value Variance - A holding account for the rounding of the value of inventory

items from 4 decimal places (.0000) to 2 decimal places (.00). 1318 Inventory Value Variance - A holding account for the rounding of the last cost of an inventory

item from 4 decimal places (.0000) to 2 decimal places (.00). 1320 Magazine Paper Cover - Paper for the Magazine cover is purchased and this account is

debited when the check is written to pay for the paper. The account is credited by a journal entry each month by the actual amount used.

1321 Magazine Paper Body - No activity. 1325 Paper-Internal Publications - Paper is purchased and this account is debited when the check

is written to pay for the paper. The account is credited by a journal entry each month by the actual amount used.

1330 Label Inventory - Inventory purchased for label program.

1340 Equipment Inventory - Equipment purchased then sold to related entities (aux., HP, etc.) 1350 Magazine Manuscripts - This inventory account is debited when a check is written to pay for

a manuscript. Each month the account is credited for the actual manuscript used. 1351 Magazine Art and Photos - This inventory account is debited when a check is written to pay

for art for the Magazine. Each month a journal entry credits the account for the actual art used for the Magazine.

1352 Magazine Cartoons - This inventory account is debited when a check is written to pay for a cartoon for the magazine. Each month a journal entry credits the account for the actual cartoons used for the Magazine.

1353 Magazine Parting Shots - This inventory account is debited when a check is written to pay for g Shot. Each month a journal entry credits the account for the actual Parting Shots r the Magazine.

a Partinused fo

Deferred Charges


1409 Prepaid Expenses-Indianapolis - Holding account for liquid refreshment charges in our Indianapolis office. Actual charges are expensed accordingly as incurred in current year.

1410 Prepaid Expenses-DC - Holding account for liquid refreshment charges in our DC office. Actual charges are expensed accordingly as incurred in current year.

1411 Prepaid Insurance - Holding account for insurance coverage for the next year. Is expensed accordingly in current year.

1412 Prepaid Maintenance Agreements - Holding account for maintenance agreement expenses for the next year. Actual charges are expensed accordingly as incurred in current year.

1413 Prepaid Emblem Catalog - Holding account for next year's Emblem catalog charges. Charges are expensed in current year.

1415 Prepaid Cafeteria - Holding account for next year's Cafeteria charges. Charges are expensed in current year. $2,500 standing inventory.

1416 Future National Commander - Expense and income charges incurred for Commander elect prior to taking office. Upon election, 5408/01 and 5409/01 are charged accordingly.

1420 Travel Advance-Indianapolis - Advance funds given to Indianapolis Headquarters' staff prior to business travel. Upon return travel and submitting an approved expense report, 1420 is credited and an expense account is debited.

1425 Travel Advance-DC - Advance funds given to Washington, DC Headquarters' staff prior to business travel. Upon return travel and submitting an approved expense report, 1425 is credited and an expense account is debited.

1432 Non-Stock Special Order - Not used, this account is required for the Purchase Order system. 1433 Services - Not used, this account is required for the Purchase Order system. 1435 Office Supplies-Indianapolis - General office supplies to stock Purchasing store. As stock is

used, end-of-month journal entry reflects charges to divisions. 1436 Invoiced, Not Received - Legion default account if quantity approved is greater than quantity

received on a purchase order. 1438 Office Supplies-DC - General office supplies for Washington, DC Headquarters. As stock is

used by divisions, end of month journal entry reflects charges. 1442 Postage Meter #7000322 - Postage meter in basement shipping room hold $9,000 of postage.

As mail is processed through meter, it is charged accordingly, 5720/area. When postage is replenished, 1442 is debited.

1443 Postage Meter #6765047 - Postage meter in Emblem shipping room holds $9,000 of postage. End-of-month journal entry reflects actual postage used on machine, debiting 5720/52 and crediting 1443.

1485 Special Holding Account - Account used as necessary for any special purpose outside our normal accounting.

1488 Year End Prepayments - Used to account for expense (debits) properly assigned to the next accounting year.

1520 FASB-Retirement - when figure is determined by our actuaries, we debit this account and credit 5240/50.

1540 Prepaid Membership - Membership expenses paid this year that are attributable to the next membership year.

1551 Prepaid-DMS Printing - Printing expenses attributable to the next membership year. 1552 Prepaid-DMS List Rental - Rental expenses attributable to the next membership year. 1553 Prepaid-DMS Materials - Materials expenses attributable to the next membership year. 1554 Prepaid-DMS MIS Charges - MIS charges attributable to the next membership year. 1556 Prepaid-DMS Postage - Postage expenses attributable to the next membership year. 1557 Prepaid-DMS Outside Services - Service expenses attributable to the next membership year. 1558 Prepaid-DMS R & D - Research and Development expenses attributable to the next

membership year. 1559 Direct Renewal - Renewal expenses attributable to the next membership year. 1560 Direct Renewal Postage - Renewal postage expenses attributable to the next membership

year. 1561 Prepaid Internal Affairs - Internal Affairs expenses paid this year that are attributable to the

next membership year. 1576 Prepaid-Revenue Enhancement Postage - Postage expense attributable to the next

membership year. 1577 Prepaid-Revenue Enhancement Outside Services - Service expenses attributable to the next

membership year. 1581 Postage Due Deposits - Account contains $25,000 in order to reimburse miscellaneous

(account 10) and business reply postage charges (account 428). As actual postage due occurs, it is charged to divisional postage account accordingly.

1582 Postage Permit 431 Deposit - Account contains $25,000 in order to reimburse mailing charges for the Internal Affairs Division. As actual mailings occur through Permit 431 account, they are charged to Internal affairs postage expense account.

1584 Postage Permit 719 Deposit - Account contains $25,000 in order to reimburse bulk mailing charges. As actual mailings occur through Permit 719 account, they are charged to divisional postage account.

1586 Postage Permit 354 Deposit-Dispatch - Account contains $5,000 in order to reimburse Dispatch subscription mailings. When mailings occur, account 5720/09 is charged.

1590 Non Member Donor List Rental - Prepaid list fees on behalf of the Non Member Donor program.

1591 Non Member Donor Printing - Reserve for expenses for the small batch printing of brochures and bulletins. Charges are expensed to account 5610/35 as incurred.

1592 Non Member Donor Materials & Mailing - Reserve for the cost of preparing materials for mailing.

1593 Non Member Donor 3rd Class Postage - Reserve for 3rd class postage during the coming year. Actual postage is charged to account 5727/35 accordingly.

1594 NA

Investments

on Member Donor Freight/Express - Reserve for the cost of bulk/large package shipments. ctual cost is expensed to 5729/35 as incurred.


1610 Restricted Fund-Income Cash - All trust income, expense and any other moneys deposited to this trust are collected and accounted for here.

1611 Restricted Fund-Principal Cash - Reflects moneys from sales and purchases of investments. In addition, principal and interest payments made by The American Legion are reflected in this account.

1615 Restricted Fund-Investments - Represents total investments in the Restricted Fund. 1616 Restricted Fund-Accrued Interest - Accrued interest payable to Restricted Fund earned from

investments. 1618 Restricted Fund-Expenses - Details all expenses incurred by Restricted Trust. 1620 Reserve Fund-Income Cash - All trust income and any other moneys deposited to this trust are

collected and accounted for in 1620. 1621 Reserve Fund-Principal Cash - Reflects moneys from sales and purchases of investments. 1625 Reserve Fund-Investment - Represents total investments in the Reserve Fund. 1628 Reserve Fund-Expenses - Details all expenses incurred by Reserve Trust. 1630 Invested Depreciation - Total investments set aside for depreciation of DC building. 1636 MBNA-Life Insurance Investments - Life Insurance investments held at MBNA National Bank. 1637 MBNA-Life Insurance Income - Interest earned on investments held at MBNA National Bank.. 1638 Bank of New Yorkt Investments - Life Insurance investments held at Bank of New York. 1639 Bank of New York Investments earnings - Interest earned on investments held at Bank of New

York. 1650 Samsung Scholarship Investment - Investment account for Samsung Scholarship funds. 1651 Samsung Scholarship Income - Interest earned on investment. 1652 Buick Scholarship Investment - Investment account for Buick Scholarship funds. 1653 Buick Scholarship Income - Interest earned on investment. 1654 Baseball/Gatorade Investment - Investment account for Gatorade Scholarship funds. 1655 Baseball/Gatorade Income - Interest earned on investment. 1662 Security Agreement-Bank One - Overnight or weekend investments made with Bank One

commonly called "REPO'S” or sweep account. 1664 Short Term Investments - General Fund investments. 1680 Investment in Haynes & Pittenger - Original investments adjusted by ongoing gain or loss. 1690 Investment in CFA

1994. Fixed Assets & Depreciation

- Start up operating capital and additional expenditures per Res. #20, May,

1710 Land - This account represents purchase cost of land in DC for office building. 1720 Building-DC - Cost associated with construction & remodeling of DC office. 1725 Reserve for Depreciation-DC - Reflects the monthly depreciation cost of our DC office

building. 1730 Furniture & Fixtures-Nat'l - This account reflects the purchase cost of all furniture and

electronic equipment located at 700 N Penn and Park 100. 1731 Asset Clearing Account - Purchases of assets are charged to this liability. (Asset account can

not be used in Accounts Payable.) End-of-month clears liability and charges asset account. 1735 Reserve for Depreciation-F & F Nat'l - Reflects the monthly depreciation expense of our

office furniture and electronic equipment located at 700 N Penn and Park 100. 1771 Work in Progress/Computer/Clearing Account - Capitalized costs for Resolution #6, May

1993 & Resolution #12, 1994, that are not entered through the Fixed Assets system. 1790 Furniture & Fixtures-DC - This account reflects the purchase cost of all furniture and

electronic equipment located at 1608 K Street, Washington, DC. 1795 Reserve for Depreciatio

furniture and electronic n-F & F DC - Reflects the monthly depreciation expense of our office equipment located in Washington DC.


Non‐Expendable Fund Liabilities

1840 Overseas Grave Decoration Fund-Cash - Checking account balance. 1845 Overseas Grave Decoration Fund-Investments - Represents total investments in the Overseas

Decoration Fund. 1846 Overseas Grave Decoration Fund-Accrued Interest - Accrued interest payable to Overseas

Decoration Fund earned from investments. 1848 Overseas Grave Decoration Fund-Expenses - All expenses incurred by Overseas Decoration

Fund. 1870 Paid Up For Life-Income Cash - PUFL trust income, expense and any other moneys deposited

to this trust at National City Bank are collected and accounted for in 1870. 1871 Paid Up For Life-Principal Cash - Reflects moneys from sales and purchases of investments. 1875 Paid Up For Life-Investments - Represents total investments in the Paid Up For Life Trust

Fund. 1876 Paid Up For Life-Accrued Interest - Accrued interest payable to the Paid Up For Life Fund

earned from investments. 1878 Paid Up For Life-Expenses - Details all expenses incurred by Paid Up For Life Trust Fund.

LIABILITIES

General Liabilities


2110 Accounts Payable National - Houses all approved invoiced payments due by the Legion. 2112 Received, Not Invoiced - Default accrual account for received, not invoiced items. 2115 Special Holding Account - Used to accumulate known liabilities (credits) not specified by

other accounts. 2117 C&Y Advance Nat'l Auxiliary - Used to account for prepaid contributions. 2118 Sons of The American Legion Liability - Accumulates the excess SAL dues over expenses on a

year to year basis. 2125 Paid Up For Life Membership - Used to account for funds from PUFL memberships prior to

their monthly deposit to the Trust account. 2126 Paid Up For Life Time Payments - Used to account for receivables due the Legion for time

payments to be made for PUFL memberships. 2133 IBM Lease Obligation, Current Portion - Current portion of Lease on AS400 320 & 30S. 2135 Unprocessed Emblem Cash - Liability for cash received on orders for Emblem merchandise

until that order is processed. 2136 Emblem Unused Credits - Used to accumulate credits on cash we are holding for orders

processed but not yet completed. Ex. back orders, etc. 2137 Emblem Refunds - Used to accumulate funds due to be refunded to customers that are in excess

of set limit. 2138 Potential Emblem Obsolete Inventory - Used to accumulate the cost of outdated and potentially

obsolete inventory. 2139 Emblem Convention Deposits - Used to control cash and accounting for sales made during the

various conventions attended by Emblem Sales. 2140 Unused Charge Card Credits - Used to accumulate credits on charge cards being held for

orders processed but not yet completed. 2160 Prepaid Advertising - Used to accumulate the Legion liability for amounts prepaid for

advertising in the Magazine. 2170 Dues Paid in Advance - Next years membership dues paid in advance. 2171 Sons of The American Legion Dues Paid in Advance - Next years SAL dues paid in advance.

2172 Unearned Magazine Subscriptions - Accumulates this years and next years liability for Magazine subscriptions.

2173 Membership Dues - Used to accumulate Traditional and PUFL dues income and distribution on a monthly basis.

2174 DMS Dues to Allocate - Used to accumulate DMS dues income and distribute on a monthly basis.

2175 DMS Dues Paid in Advance - Used to accumulate the liability for next years DMS income. 2185 Accrued Vacation Pay - Each employees available vacation hours are multiplied by their

hourly wage. This results in a liability to the employees for vacation hours earned. 2190 Employee Withholdings-Disability - Amounts withheld from employees pay to purchase

additional Disability insurance paid to Indianapolis Life Insurance Co. 2194 Advance Subscriptions-Dispatch - Accumulates Legion liability and paid subscriptions which

fall into the next year.

Employee & Other Liabilities


2230 Employee Taxes Withheld - Amounts withheld from employees pay for the employees Federal, FICA, and State taxes.

2232 Employee Credit Union Withholdings - Amounts withheld from employees pay and paid to the HALE Federal Credit Union.

2233 Employee Savings Bonds Withholdings - Amounts withheld from employees pay and held until balance sufficient to purchase US Savings Bond.

2234 Employee United Way Withholdings - Amounts withheld from employees pay and paid to the United Way.

2236 Employee Withholding-Parking - Parking expenses paid by employees through payroll deduction.

2237 Employees' League Withholdings - Amounts withheld from employees pay (Indpls employee amount is paid to Employees' League; DC employee amount is paid to Fun & Flower Fund).

2239 Employee Withholdings-Other - Amounts withheld from employees pay for garnishments then paid to court ordered agency.

2240 Payroll Taxes Payable - The American Legion accrued taxes, which include employer FICA, Federal and State Unemployment taxes.

2241 Employee Indpls Life Withholdings - Amounts withheld from employees pay to purchase additional life insurance. The amounts are disbursed to Indianapolis Life.

2242 Employee Jackson Life Withholdings - Amounts withheld from employees pay to purchase additional life insurance. The amounts are disbursed to Jackson Life.

2243 Employee 401K Savings Withholdings - Amounts withheld from employees pay from contributions to 401K. The amounts are disbursed to National Bank of Detroit, Trustee for The American Legion Salary Savings Plan.

2245 Other Taxes Payable - Cafeteria and Emblem salesroom sales tax collected is credited to this account each day. Once a month the money is journalized into 2293, and then a check to Indiana Dept. of Revenue is issued.

2250 Accrued Sales Commission-Auxiliary - The Auxiliary commission on Emblem merchandise is journalized each month and paid to National Treasurer, American Legion Auxiliary every quarter.

2255 Accrued Sales Commission-Dept’s - The commission on Emblem merchandise due each American Legion department is journalized each month and then paid to each department at the end of the year.


2257 Accrued Affinity Card Commission - Used at year-end. Accrues all 4th quarter royalties due the departments for Affinity card usage. The money is paid to the departments quarterly.

2258 MBNA/Affinity Liability - Money is received from MBNA (1 cent per each Affinity Card transaction). The Legion matches the amounts received from MBNA. The money is used for promotion/activation.

2259 Rx America Contribution - Holding account to carry over unused Rx America promotion funds to the next year.

2260 COBRA Insurance - Each month individuals wishing health insurance under the COBRA regulations are billed. These amounts are then journalized to account 5230/50 to offset the health insurance expenses.

2286 PUFL Cash Offset - Account used to reconcile the timing differences from the time PUFL new time payments are deposited to the time the data is entered to the system.

2287 Washington Office Voucher Pass Through - Debited when the DC account is reimbursed and credited by a journal entry to expense out each individual check.

2288 Cash Receipts Offset - Holding account for Emblem Sales cash receipts from receivables. 2289 Emblem Cash Offset - Holding account for Emblem Sales cash from checks. 2291 Miscellaneous Liability - Miscellaneous payments, refunds and reimbursements not

accounted for through other processes. 2292 Employee Purchases Liability - Personal purchases made by staff debit 2292, and staff is

billed for purchase crediting 2292. 2293 Credit Adjustment Account - Credit memos from vendors for returned items are credited to

2293 with the debit charged to the original invoice of purchase. 2294 Accounts Receivables Liability - Holding account for Accounts Receivable: bad check

charges, expense account charges. Liability is reversed on end-of-month journal entry. 2295 Prorate Liability - Personal charges for telephone and office supplies are charged to this

account on end-of-month journal entry. Invoice billing offsets liability. 2296 Payroll Liability - Account for special one time deductions. 2297 Staff Liability - Holding account for Headquarter’s staff liabilities. 2298 G/L & F/A Liability - Holding account for timing difference of bank funds. End-of-month

journal entry offsets. 2299 System Liability - Holding account for miscellaneous end-of-month journal entries. 2311 Sales Tax-California - California Emblem sales. California Sales & Use taxes are

calculated at month-end based on these sales. 2312 Sales Tax-Idaho - Idaho Emblem sales. Idaho Sales and Use tax are calculated at quarterly

intervals based on these sales. 2313 Sales Tax-Indiana - Indiana Emblem sales. Indiana Sales and Use taxes are calculated at

month-end based on these sales. 2314 Sales Tax-Maine - Maine Emblem sales. Maine Sales and use taxes are calculated at

month-end based on these sales. 2315 Sales Tax-Massachusetts - Massachusetts Emblem Sales. Massachusetts Sales and Use tax

are calculated at month-end based on these sales. 2316 Sales Tax-Nebraska - Nebraska Emblem sales. Nebraska Sales and Use taxes are calculated

at month-end based on these sales. 2317 Sales Tax-North Dakota - North Dakota Emblem sales. North Dakota Sales and Use taxes

are calculated at month-end based on these sales. 2318 Sales Tax-DC - District of Columbia Emblem sales. DC Sales and Use taxes are calculated

at month-end based on these sales. 2385 Credit Card Transfer - Holding account for improper personal purchases made against the

corporate MasterCard accounts. Invoice billings to individuals offset the charges.

2403 IBM Lease Obligation-Long Term - L/T portion of lease obligation for IBM AS400 320 & 30S

FUND BALANCES

Restricted (Special Purpose) Fund Balances

Oratorical Fund Balance

2502 Oratorical Contest Prizes - Future liability of Legion for scholarships awarded. Life Insurance Fund Balances

2506 Nat'l Life Ins Investment-MBNA - Accumulates amount of deducted life insurance funds invested with MBNA for programs.

2508 Bank of NY-Life Insurance - Accumulates amount of deducted life insurance funds invested with Bank of NY for programs.

Other Restricted Fund Balances

2510 National Emergency Fund - Accumulates amount available for distribution. 2533 Boy Scout Scholarship - Future liability for scholarships awarded. 2534 Baseball Scholarship-Gatorade - Disbursement account at Bank One for scholarships

awarded. 2535 Boys Nation Memorial - Account set up in 1984 for money collected during Boys State

Conference and is used for scholarship to Boys Nation President ($500 per year until depleted).

2537 Buick Baseball Program - Receipts from Buick, payable to Posts to be used for Post sponsored American Legion Baseball. Receipts are generated from Legionnaires purchases of Buicks.

2538 Baseball Scholarships-Buick - To record Buick raffle scholarship funds received less scholarships paid from the National Convention.

2545 Special Escrow Account - Legion liability to the court for funds allocated for the refund of unfilled subscriptions to "Better Times" Magazine.

2550 Samsung Scholarship Fund Balance - Self explanatory. 2552 Buick Scholarship Fund Balance - Self explanatory. 2554 Gaterade Scholarships - Holding account at Union Federal before transfer to account 2534. 2570 J. H. Wilcox Trust - Clearing account, money comes in from Trust, then sent to the designated

Post. 2572 Seiberts Estimate for C&Y - Set up in 1986 for money received as a result of the sale of

property willed to C&Y. 2590 Korean War Memorial Fund - Accumulates contributions and expenses associated with the

establishment of the Korean War Memorial. 2596 Vietnam Assistance Program - Income related to the Vietnam assistance program. 2597 Vietnam Assistance Program - Expenses related to the Vietnam assistance program. 2598 WW II Memorial 2599 WW II Memorial Exp

Designated Fund Balances

Income - Income related to the World War II Memorial. ense - Expense related to the World War II Memorial.

The Restricted Fund Balances


2615 Restricted Fund Balance - The total of income/(loss) the fund has incurred since inception.

2618 Restricted Fund Receipts - Year to date income/(loss) figure. At the end of the year this amount is folded into Res ricted Fund balance. t

The Reserve Fund Balances2619 Restricted Fund-CFA - Citizens Flag Alliance operating funds.

2625 Reserve Fund Balance - This is the surplus account for the Reserve Fund, the running total of income/(loss) the fund has incurred since inception.

2628 Reserve Fund Receiis folded into Reserv

Appropriated Fund Balances

pts - Year to date income/(loss) figure. At the end of the year this amount e Fund balance.

2710 Reserve for Convention - Funds set aside for National Convention expenses. 2715 Convention Stabilization Fund - Funds set aside to support National Convention busing and

exceptional expenses. 2720 Reserve for Computer - Funds set aside for purchase of computer and associated equipment. 2730 Reserve for Insurance 2780 Washington Building -

Unappropriated Fund Balances

Stability - Funds set aside for health insurance cost. Modification/upkeep of DC building.

2790 Surplus - This is the ownLegion. The running tot

Non‐Expendable Fund Liabilities

er's equity account or total assets over liabilities for The American al of income/(loss) the organization has incurred since inception.

2845 Overseas Grave Decoration Fund-Principal - Money originally contributed to Overseas Decoration Trust at inception.

2846 Overseas Grave Decoration Fund-Earnings - The total of income/(loss) the fund has incurred since inception.

2848 Overseas Grave Decoration Fund-Receipts - Year to date income/(loss) figure. At the end of the year this amount is folded into Overseas Decoration Fund earnings account.

2875 Paid Up For Life-Fund Balance - The total of income/(loss) the fund has incurred since inception.

2876 Paid Up For Life-Dues Withdrawal - Dues payments taken from Trust for membership. 2878 Paid Up For Life-Receipts - Year to date income/(loss) figure. At the end of the year this

amount is folded into Paid Up For Life Fund balance account. 3000 Error Suspense - Used by system to hold transactions.

INCOME

Transfer Income

4090 SamDues Income

sung Scholarship Income - To record transfers in from Union Federal Investment account.

4110 National Dues-Current Year - American Legion membership dues @ $9.00 per capita. 4120 Nation

receiveEmblem Income

al Dues-Prior Year - American Legion membership dues for previous years dues d from members wishing to reinstate their lapsed membership for continuous years.


4210 Emblem Sales-National - Income from sales of Legion merchandise. 4211 Emblem Sales-Legion Drop Ship - Income from sales of drop shipped Legion merchandise.

4212 Emblem Sales-Auxiliary - Income from sales of auxiliary merchandise. 4213 Emblem Sales-Auxiliary Drop Ships - Income from sales of auxiliary drop shipped

merchandise. 4214 Emblem Sales-Other - Income from sales of SAL merchandise. 4216 Emblem Sales-Special Order - Income from special order merchandise sales. 4220 Emblem-Shipping Income - Income derived from shipping charges on Emblem Sales. 4222 Emblem-Payment Variance - Amount from adjustments to sales or returns invoices not

accounted for elsewhere. properly4231 Emblem

Magazine IncomePurchase Discounts - Discounts taken on purchases by Emblem.

4310 Membership Subscriptions - Income from membership dues currently at $3.00, for the manufacture and distribution of the Legion Magazine.

4320 Other Subscriptions - Amount received for non-member and promotional subscriptions. 4325 Production Income - Income from production adjustments to advertiser's copy and from

creation of advertising clients reply cards. 4330 Advertising Income - Income from the sales of advertising space in the Legion Magazine. 4331 Advertising Discounts - An income contra account or debit account used to offset discounts

given in association with the handling of Magazine advertisements. 4335 Home Shopper Income - Income produced from catalog inserts.

Other Income


4501 MBNA-Gold Reserve Income - Administrative fee earned from the American Legion Members Revolving Loan Program with MBNA.

4502 MBNA-New Gold Reserve - Administrative fee earned from new accounts established with The American Legion Members Revolving Loan Program with MBNA.

4503 MBNA-Gold Reserve Renewals - Administrative fee earned from renewal fees for established accounts with The American Legion Members Revolving Loan Program with MBNA.

4506 MBNA-CD Income - Administrative income from CD deposits at MBNA National Bank. 4510 Interest Income - Interest on all general investments and loans. 4511 Security Agreement Income - Interest on "REPO'S." 4512 Reserve Fund Income - Interest on this fund. 4514 Depreciation Fund - Interest on this fund. 4515 Emblem Inventory Interest - Interest charged to Emblem for holding inventory. 4516 NOW Account Interest - Interest on checking accounts. 4517 Birthday Life Income - Funds received from Union Fidelity. 4518 Money Market Income - Income from this program received from National Bank of Detroit. 4529 AS/400 Service Income - Includes work such as; Group 1 postal sorts, merge/purge, etc.

Typically, this would be a job coming from HP or the Auxiliary, where we had to run applications like Group 1 programs to prepare data for mailing.

4530 Department List Income - Work that we do for the Departments, for example, extracts for state papers and other mailings.

4531 Purchase Discounts - Discounts taken on purchases by all divisions except Emblem. 4532 VISA-Net Sales - Administrative fee earned from Affinity Card net sales. 4534 VISA-Takeones - Administrative fee earned from Affinity Card "take one" promotional

program.


4536 VISA-Renewals - Administrative fee earned from renewal fees for established accounts with The American Legion Affinity Card Program with MBNA.

4537 VISA-New Accounts - Administrative fee earned from new accounts established with The American Legion Affinity Card Program with MBNA.

4539 Business Card Income - Fee's from new Business Card accounts and from their renewals. 4540 Cafeteria Sales - Self explanatory. 4542 Annuity Income - Self explanatory. 4544 Convention Program Income - Self explanatory. 4546 Commemorative Bottle Income - Self explanatory. 4548 Laser Income - Work that has been produced on the laser printers for internal (related income)

jobs, i.e. DMS, Renewals & Fund Raising. Primary source of jobs is HP Direct. 4549 Label Program Income - Self explanatory. The related COGS account is 5150 and the related

inventory account is 1330. 4550 Miscellaneous Income - All income not covered under other income accounts. Shouldn't be

recurring income. 4551 Direct Renewal Income - Income from American Legion Departments inserting special

materials in direct dues billing notices. 4552 DMS Income - American Legion Direct Membership Solicitation acquisition dues @ various

amounts depending on solicitation and package. 4553 Revenue Enhancement Income - Income derived from American Legion departments

participating in Revenue Enhancement Programs being administered by HP Direct. Primarily Label program and Christmas cards.

4554 Vacation Family Benefit Plan - Income accrued from various affinity membership plans including: Avis/National Car Rental, Eye Care Plan of America, and Discount Prescription Drug program.

4555 Firing Line Income - Derived from both individual and bulk subscriptions for the Firing Line publication. Income offsets cost of production and mailing.

4556 Fund Raiser Income - Used when the occasion arises for special fund raising activity not covered by existing accounts.

4557 GEOTEL Income - Income derived from VETS 1-900 telephone number from Reunion notices and other electronic communication services.

4558 Insert Income - Income from departments for the insertion of their department magazine within the Legion Magazine. (Will be deleted in 1994.)

4559 Book Income - Sale of books, such as "Voices, Letters from WWII." 4560 Life Insurance Income - Income from Legion insurance activities that is used to support

Legion sponsored programs. 4562 Allocation of Dues - Debit for American Legion membership dues @ $9.00 and credited to

Area 31, Account 4110. 4563 Banquet Ticket Sales - Income from banquet ticket sales at National Convention. 4564 Booth Income - National Convention booth income. 4565 Oratorical Ticket Sales - Income from the sales of oratorical contest tickets. 4568 Laser Income O/S - Outside business produced on the laser printers that qualify as unrelated

income. 4570 A L Institute Income - Sales of materials associated with the American Legion Institute

Educational Program. 4571 Discount Prescription Program Income - Income received from prescription transactions as

follows: $.50 per script from network stores; $.60 per script at American Drug Stores (Osco and Sav-on); and $.75 per script for mail order scripts.

4572 Discount Prescription Program Promotion Contributions - Advance money RxAmerica has given us for program expenses.

4578 Publications Income - Income derived from the sale of the Dispatch for issued produced and distributed in the current year.

4580 Nat'l Auxiliary Contribution - For the past several years, the National Auxiliary has contributed $20,000 to assist with Commission program activities and for production of materials used by the American Legion Auxiliary in carrying out Children & Youth programs.

4585 SAL Income - Sons of The American Legion membership dues @ $2.00 per capita. 4589 WWII Committee Income - Established in 1994 in anticipation of income from the sale of

WWII memorabilia. 4590 PUFL Administration Income - Income from PUFL Trust @ 1-1/2% of value of trust on June

30 and received in October as outlined by resolution establishing Trust Fund. 4591 Internet Income - Income generated from services to departments Posts. subsidiary

organizations, and individuals. 4595 Pamphlet Income - Legislative pamphlet. 4598 Rental In4599 Gross Inc

Restricted Income

come - Income generated from the rental of computer equipment. ome – Subs


4605 Foreign Vocational Training - Donations for assistance for handicapped Vietnam veterans per Resolution No. 5, May 1996.

4610 Festival Income - Income derived from the Festival staged each year at the National Convention.

4620 C&Y Endowment Fund - This account receives interest income from the Endowment Fund Corporation on a quarterly basis. The money is to provide grants to veteran families that need help from the Temporary Financial Assistance Program.

4630 Rehab-Endowment fund - Income received from the Endowment Fund. 4640 Baseball Income - Income is derived from two sources: $100,000 from Major League

Baseball; and from National Tournament income, which is usually $104,000 to $114,000 per year. (Regional and World Series contracts dictate the amount.)

4650 Contributions & Bequests - Contributions and bequests from Legionnaires and corporations including an annual contribution from the Eight and Forty organization to assist with Commission activities and materials. Over the last few years, the amount received from the Forty & Eight has varied.

4660 Baseball Scholarship Income - Income received from Stokely Van Camp/Quaker Oats for "Gatorade Scholarships" ($10,000 annually). Funds are transferred at the end of year to a restricted liability account and held for players who request funds at a later date.

4670 Junior Marksmanship Income - Income in this account results from the sale of target sets to those youth entering our annual Junior Shooting Sports Program National Tournament. A very small amount of income is realized from the sale of Club Leader's Administrative Manuals.

4677 Nat'l Network Program Income - Income received from general use under the Network Program.

4679 Network TFA Program - Income received for use as temporary financial assistance under the Network Program.

4680 Flag Income - Income received in conjunction with Flag Education and the Flag Amendment Program.

4682 Flag Alliance Income - Income from organizations in the Citizens Flag Alliance. 4684 Flag Corporate Income - Corporate donations outside the alliance. 4686 Flag Promotional Materials Income-Income from video sales, replenishment of materials, etc. 4705 Flag Raiser Income #100 - Income from fund raisers by project number.


4710 Flag Raiser Income #101 - Income from fund raisers by project number. 4715 Flag Raiser Income #102 - Income from fund raisers by project number. 4735 Flag Raiser Income #106 - Income from fund raisers by project number. 4740 Flag Raiser Income #107 - Income from fund raisers by project number. 4745 Flag Raiser Income #108 - Income from fund raisers by project number. 4755 Flag Raiser Income #110 - Income from fund raisers by project number. 4760 Flag Raiser Income #111 - Income from fund raisers by project number. 4780 Flag Raiser Income #115 - Income from July 4th “1000 Words” mailing. 4781 Flag Raiser Income #116 - Income from fund raisers by project number. 4783 Flag Raiser Income #118 - Income from fund raisers by project number. 4784 Flag Raiser Income #119 - Income from fund raisers by project number. 4789 Flag Raiser Income #124 - Income from fund raisers by project number. 4790 Flag Raiser Income #125 - Income from fund raisers by project number. 4792 Flag Raiser Income #130 - Income from fund raisers by project number. 4793 Flag Raiser Income #131 - Income from fund raisers by project number. 4794 Flag Raiser Income #145 - Income from fund raisers by project number. 4795 Flag Raiser Income #146 - Income from fund raisers by project number. 4796 Flag Raiser Income #152 - Income from fund raisers by project number. 4797 Flag Raiser Income #153 - Income from fund raisers by project number. 4798 Flag Raiser Income #140 - Income from fund raisers by project number. 4799 Flag Raiser Income #160 - Income from fund raisers by project number. 4810 Non Member Donation Income - Non member donations income to help offset program

expenses. 4899 Carry-Over Income - Flag Raiser income carry-over account. 4900 Flag Raiser Income #161 - Income from fund raisers by project number. 4901 Flag Raiser Income #157 - Income from fund raisers by project number. 4902 Flag Raiser Income #168 - Income from fund raisers by project number. 4903 Flag Raiser Income #173 - Income from fund raisers by project number. 4904 Flag Raiserÿÿÿÿome #169 - Income from fund raisers by project number. 4905 Flag Raiser Income #171 - Income from fund raisers by project number. 4906 Flag Raiser Income #174 - Income from fund raisers by project number. 4907 Flag Raiser Income #177 - Income from fund raisers by project number. 4908 Flag Raiser Income #176 - Income from fund raisers by project number. 4909 Flag Raiser Income #175 - Income from fund raisers by project number. 4910 Flag Raiser Income #181 - Income from fund raisers by project number. 4911 Flag Raiser Income #197 - Income from fund raisers by project number. 4912 Flag Raiser Income #192 - Income from fund raisers by project number. 4913 Flag Raiser Income #193 - Income from fund raisers by project number. 4914 Flag Raiser Income #191 - Income from fund raisers by project number. 4915 Flag Raiser Income #201 - Income from fund raisers by project number. 4916 Flag Raiser Income #202 - Income from fund raisers by project number. 4917 Flag Raiser Income #204 - Income from fund raisers by project number. 4918 Flag Raiser Income #205 - Income from fund raisers by project number. 4919 Flag Raiser Income #179 - Income from fund raisers by project number. 4920 Flag Raiser Income #196 - Income from fund raisers by project number. 4921 Flag Raiser Income #206 - Income from fund raisers by project number. 4922 Flag Raiser Income #208 - Income from fund raisers by project number. 4923 Flag Raiser Income #209 - Income from fund raisers by project number. 4924 Flag Raiser Income #207 - Income from fund raisers by project number.

4925 Flag Raiser Income #210 - Income from fund raisers by project number. 4926 Flag Raiser Income #211 - Income from fund raisers by project number.

EXPENSES

Cost of Goods Sold

5110 Cost of Goods Sold-Legion - Cost of Legion merchandise sold through Emblem Sales. 5111 Cost of Goods Sold-Legion Drop Ships - Cost of Legion drop shipped sales and cost of goods

sold by Cafeteria. 5112 Cost of Goods Sold-Auxiliary - Cost of Auxiliary merchandise sold by Emblem Sales. 5113 Cogs-Auxiliary Drop Ships - Cost of auxiliary drop sales. 5114 Inventory Adjustments - Tracks Emblem inventory shrinkage from conventions. 5116 Cost of Goods Sold-Special Orders - Cost of Legion special order sales through Emblem Sales. 5118 Cost of Goods Sold-Cafeteria - Cost of cafeteria supplies. 5119 Tools, Dies, and Set-up Charges - Expenditures to make dies for jewelry, tapes for embroidery,

and art work for merchandise design. 5120 Sales Commissions - Commission expense for sales of magazine advertising and auxiliary

Emblem merchandise. 5125 Sales Commissions-Departments - Commission expense from sales of Legion Emblem

merchandise. 5130 MBNA-Department Commissions - Royalty money paid to departments participating in The

American Legion Affinity Card Program. 5145 Purchase Order amoun5150 Cost of Goods Sold-La

Salaries & Employee Expenses

Invoice Cost Variance - Default account used to record any difference between invoice and ts. The account is zeroed out monthly. bel Program - Cost of inventory sold for label program.

5210 Salaries - Gross wage and vacation expense excluding overtime wages. 5211 Overtime Salaries - Gross wages paid to employees at 1.5 times their hourly rate. 5212 Change in Vacation Accrual - The earned available vacation on the books times the hourly

wage of each employee. Debited when vacation is earned and credited when used. This tracks the change in account 2185/00, Accrued Vacation Payable.

5220 Payroll Tax - Tax expense - Federal and State Unemployment taxes and Employer portion of FICA. Expensed immediately and account payable established.

5230 Health Insurance - Expenses paid to insurance companies and National Bank of Detroit Trust offset by employee and Cobra participants receipts.

5235 Life Insurance - Expenses paid by The American Legion for additional employee life insurance, offset by the term insurance amounts withheld from employees pay.

5240 Retirement Contribution - The net periodic pension cost as calculated by McCready and Keene, our actuaries, according to FASB '87.

5250 Contract E5260 Contract E

Magazine Expenses

mployee Salaries - Gross wages paid to Contract employees. mployee Benefits - Benefits paid to Legion employees working on a contract basis.


5310 Production Expense - Charges incurred in the scanning of film of The American Legion Magazine.

5311 Magazine Negatives & Positives - Printing film work expenses incurred for current issue of The American Legion Magazine.

5312 Magazine Inserts - This account is used to expense items associated with the production of a catalog which is inserted in the Magazine to solicit retail sales of non-emblematic items. (Home Shopper)

5313 Magazine Printing & Binding - Printing & binding charges for monthly American Legion Magazine.

5314 Magazine Paper Cover Used - Special paper charges used for the cover of The American Legion Magazine.

5315 Magazine Paper Body Used - Paper charges for the body of The American Legion Magazine. 5316 Magazine Manuscripts Used - Manuscript expenses incurred for the current month issue of

The American Legion Magazine. 5317 Magazine Arts & Photos Used - Artwork, photography and research expenses used in current

issue of The American Legion Magazine. 5318 Magazine Labeling - Labeling expenses for The American Legion Magazine. 5319 Magazine 2nd Class Postage - Postage expenses in conjunction with mailing The American

Legion Magazine. 5320 Magazine Cartoons Used - Cartoons expenses from previous month's charges of The

American Legion Magazine. 5321 Magazine Parting Shots Used - Jokes/humor expensed from previous month's charges of The

American Legion Magazine. 5322 Talking Magazine - Expenses incurred for the cassette version. (American Printing House for

the Blind) 5323 Magazine Foreign Postage - Postage charges for The American Legion Magazine mailed to

Foreign countries. 5325 Insert P

departmTravel Expenses

ostage - Used to expense additional Magazine postage due to the insertion of a ent magazine. (Delete in 1994)

5408 National Commander's Air Fares - Air fare charges incurred by National Commander and aide.

5409 National Commander & Aide Travel - Other travel expenses incurred by National Commander and aide.

5410 Staff Travel - Travel expenses incurred by National staff on business. This account also includes charges for job candidates who travel for interviews. It includes shipment of household goods for new employees relocated from other geographic areas. It also includes staff travel and per diem for staff to training away from National Headquarters.

5411 National Officers Travel - Travel expenses incurred by National and DC Headquarters' National Officers on business.

5413 Dues and Fees - Membership dues and fees for organizations and clubs incurred by staff for business purposes.

5414 Local Staff Travel - Travel expenses incurred by DC Headquarters' staff on business within local vicinity.

5415 National Vice -Commanders' Travel & Expense - All expenses incurred by National Vice Commanders.

5416 Staff Air Fares - Air fare charges incurred by National and DC Headquarters' staff on business. Includes any airfares required to bring candidates for employment for interviews or for

ide of the National Headquarters. relocation. It also includes air travel to training outs5418 Flag Committee Expense - All callins on the commi

Commission & Committee Expenses (All Self‐Explanatory)ttee and Department Leadership teams.


5501 Nat'l Executive Committee

5502 Commanders' Advisory Committee 5504 Americanism Commission 5505 Committee on Education 5506 Counter Subversive Act Committee 5507 Children and Youth Commission 5508 Convention Commission 5510 Distinguished Guest Committee 5511 Economic Commission 5512 Employment Committee 5513 Veterans Preference Committee 5514 National Finance Commission 5515 Life Insurance Trust Committee 5516 Emblem Committee 5517 Foreign Relations Commission 5518 Internal Affairs Commission 5519 Constitution & By-Laws Committee 5520 Membership & Post Activities Committee5521 Resolution Assign Committee 5522 Trophies Awards & Ceremonies 5523 Legislative Commission 5524 National Security Commission 5525 Aerospace Committee 5526 Civil Defense Preparedness Committee 5527 Law & Order Committee 5528 Merchant Marine Committee 5529 Military Affairs Committee 5530 Naval Affairs Committee 5531 Public Relations Commission 5532 American Legion Magazine Commission 5533 Veterans Affairs & Rehab Commission 5534 National Cemetery Committee 5535 Americanism Council 5536 Foreign Relations Council 5537 Legislative Council 5538 National Security Council 5539 Dept Cmdr & Adj Conference 5541 Veterans Plan & Coordinating 5542 21st Century Ad Hoc Committee 5546 Policy Coord5548 Dept Histori

Operational Expenses

ination Action Group ans Committee


5602 Interest Expenses - Used in MIS for interest on operating lease payments on IBM 320 and 305. 5603 List Rental - Non member donor list rental. 5608 Dispatch Printing - Printing charges incurred to print the Dispatch. 5609 Dispatch Labeling - To record HP charges for Dispatch labeling. 5610 Printing - Outside printing expenses, excluding the magazine and Dispatch. 5611 Advertising Expense - Emblem catalog expense. 5612 Need-A-Lift & Guides - Cost of publishing & shipping booklet. 5613 Convention Program - Expense incurred.


5614 Commemorative Bottles - Expense incurred. 5616 Awards for Economics - State employer awards and Disabled Veterans Outreach Programs

(DVOP). 5617 4th Estate & Special Awards - Located in Public Relations Division. 5618 Legislative Awards - Distinguished Public Service Award, Dept. Awards and Special

Congressional Awards. 5619 Video Expense - Audio/video expenses incurred in P.R. Division only. 5620 Printing Supplies - Supplies/equipment in Admin. Communication Section. 5621 E A Blackmore Museum - Expenses incurred for museum (4th Floor). 5625 Employer of the Year Award - $1,000 each for three categories. 5627 Special Awards - Miscellaneous awards given that are not covered in some other account. 5629 Boy Scout Scholarships - Self-explanatory. 5630 Awards Grants and Scholarships - Self-explanatory. 5631 Recognition Awards - Determined by a special committee and distributed after each calendar

year as part of the Merit 2000 program. 5632 TFA Grants - Temporary financial assistance grants. 5634 TFA Disaster Relief Fund Disbursements - Used to account for approved disaster relief

payments. The Fund's receipts are accounted for in account 4625. 5636 Chaplains Program - Materials for Chaplain's Prayer Manual and Chaplain's Handbook. All

expenses for Chaplain's Conference held in August. 5639 Special Program Promotions - Expenses incurred promoting Buick, such as labeling of goods. 5640 Publicity & Promotion - The account used to expense the cost of activities performed in

furtherance of various Legion programs and positions. 5642 Regional Tournaments - Includes travel for baseball teams and national representatives to

regional, plus signs, shirts, patches, etc. 5643 World Series - Includes travel for baseball teams and national representatives to World Series,

plus signs, shirts, patches, etc. 5644 Baseball Expense - Purchase of baseballs. 5645 Trophies & Awards - All trophies and awards granted in association with The American

Legion Baseball Programs. 5646 Magazine Promotion - Contest fees, microfilm, plaques, gifts to promote the Magazine. 5647 Publishers Information Services - Publishing and distributing statements defining advertising

rates and circulation data. 5648 ROTC Medals - Cost of all ROTC medals awarded and issued by The American Legion

National Security and Foreign Relations Division. 5649 Bad Debt Expense - Write off account (restricted to action of Finance Commission). 5651 Directors' Fund - Membership, donations on other expenses on a State level used only the

Executive Directors. 5653 Education & Training - Costs associated with tuition and fees for any training, seminar or

classroom type. That cost does not normally include travel, transportation or per diem for National Headquarters staff but may include these for instructors. Staff charges are filed against divisional staff travel or airfare accounts.

5654 Corporation Fund - Memberships, donations or other expenses in the corporate name, not individual, and on a National level.

5657 Court Record Service - Court reporter at National Convention. 5658 Inventory Interest Expense - Interest charged by Finance for inventory on hand. 5661 DMS List Rental - Cost of renting lists used to solicit Legion membership through direct

mailings. 5662 Materials & Mailings - Packages in DMS & Revenue Enhancement.

5665 Equipment Operating Lease - Cost of equipment leased under any operating lease signed by The American Legion. Currently we have six operating lease agreements related to this account: X/L Datacomp schedules D & E, financed through Citicorp Leasing; X/L Datacomp schedule F & G, financed through Norwest; Commonwealth Leasing; Commonwealth Equipment; General Electric; and IBM.

5670 Receptions - Self-explanatory. 5675 Prescription Drug Program Royalties - Royalties paid to Departments based on prescriptions

sold. 5680 Employment Fees - All fees associated with searching for and hiring qualified personnel. 5685 Insurance - Paid to S. A. Van Dyk, Inc. (agent). 5688 Data Services - Beginning in 1993, MIS was instructed to invoice HP Direct for Group 1

services as a sub-contractor to HP regardless of the HP client. For example, Internal Affairs contracts with HP for DMS merge/purge and laser printing, MIS will invoice HP for these services. HP Direct will then invoice Internal Affairs who should be turn charge the merge/purge processes to this account. The same theory holds for Direct Renewal and other HP contracted services by The American Legion.

5690 Taxes - Taxes such as D.C. Personal Property, Sales & Use, etc. 5692 Cafeteria Materials & Supplies - Used to track expenses for non-capitalized purchases for

ions. cafeteria operat5695 R & D - Resear

General Office Expensesch and Development located in Area 01-National Officers.


5710 Office Stationery/Supplies - Office supplies used by staff in a business capacity. 5711 Labels Forms - Labels, forms, computer paper used for printers and other machines. 5713 Special Communication to Congress - Used in Legislative Division. 5715 Microfilm - Microfilming charges for library archives. 5717 Photography - Photo processing and film expenses. 5720 1st Class Postage - Includes all U.S. Postal Service First Class mail and priority mail. 5721 Post Office Notices - Change of address notices from post office of American Legion mailings. 5722 Mail Center Freight - Inbound freight charges to National Headquarters. 5725 Reference Materials & Subscriptions - Books, magazines, newsletters and subscriptions used

for business purposes. 5726 2nd Class - U.S. Postal Service only. 5727 3rd Class - U.S. Postal Service under 16 oz. (Parcel Post). 5728 4th Class - U.S. Postal Service over 16 oz. (Parcel Post). 5729 Freight/Express - Includes freight companies, United Parcel Service (UPS), Federal Express,

etc. No U.S. Postal Service expenses are charged in this account. 5730 Telephone - Expenses incurred through telephone bills for National and DC Headquarters. 5733 FAX Usage - Fax machine used by staff of a business capacity expensed accordingly at

month-end. 5735 Computer Supplies-Users - Computer ribbons, discs and other computer related supplies used

by divisions other than MIS division. 5736 Computer Supplies-MIS - Computer ribbons, discs and other computer related supplies used by

the MIS division. 5738 Laser Supplies - Supplies purchased for laser jet printers. 5739 SFTWR Acquisitions & Upgrades - Used to expense software acquisitions and upgrades that

fall below the $300 Fixed Asset criteria. 5740 Outside Services and Fees - Services provided by outside companies for American Legion

business. 5741 Consulting Fees - Self Explanatory.

5742 Maintenance Agreement Expense - To record the monthly amortized expense of Prepaid Maintenance Agreements from the holding account 1412.

5743 Auditors Fees - Services provided by outside audit firms for The American Legion. 5744 Actuaries Fees - Fees charged by actuaries for the business of The American Legion. 5750 Shipping Supplies - Materials purchased for sending shipments outside The American Legion. 5765 New Product Development - Test and develop new revenue enhancement products. 5770 Res 6 Software Expenses - Expenses associated with Finance and Emblem software

conversion. 5780 NSF Charges/Invento

Occupancy & Usage Expensesry Adj - Irreconcilable charges to be written off American Legion books.

5802 Rent Expense - Rent at Park 100. 5810 Utilities - Electrical, water, steam, gas, etc. 5811 Janitorial & Maintenance Supplies - General supplies. 5812 Repairs & Upkeep - General maintenance accounts. 5813 Disposal of Assets - Located in Area 50-Finance; used when a inventory asset is sold, missing

or thrown away. 5816 Janitorial & Other Contracts - Self-explanatory. 5820 Machine Rental - Self-explanatory. 5821 Machine Maintenance - Self-explanatory. 5822 Laser Rental - Self-explanatory. 5830 Vehicle Expense - Maintenance of truck in Indianapolis we own. 5840 Depreciation - Based on equipment 5 years and all other 7 years. 5841 Building Maintenance - Maintenance to Washington, DC building. 5850 FA Tax Credit & Recapture - Fixes Asset module requires set up this account. Since

non-profit, we don't use.

Allocation Accounts (All 5900's accounts are Journal Entry only)


5910 Employee Benefits Allocation - Charged to all areas with a salary budget includes payroll taxes, health/life insurance and retirement.

5911 Legal Services Allocation - Fee charge for Judge Advocates services. 5912 Accounting Services Allocation - The account used internally for charging various Legion

Divisions for services rendered to them by the Finance Division. 5913 MIS Services Allocation - Anyone in the organization who uses any centralized computer

namely one of the AS/400's, the RS/6000, or one of the three servers will be charged for their usage based on a five year payback of the cost of the system. We use CPU minutes as the basis for usage allocation. Usage is defined as actual processor requests made by the user. This means, a user is only charged for requests made to the computer, not for time logged in. Therefore, if a user logs in at 8:00 a.m., does nothing on the system all day and logs out at 4:30 p.m., that user will only be charged with the sign-on and sign-of. The costs are: AS/400-$5.1333/min, RS/6000-$3.25/min, Network-$.0000615/min. Any request from a division for Group I services such as, Dispatch, labels, Firing Line labels, adhesive labels, etc. are also charged to this account.

5914 Input Services Allocation - This charge is for data entry performed at Park 100. For example, membership dues payments both scanning and manual entry, DMS entry, address changes, transfers, dead stops, fund raising donations, etc. Each item entered has a piece rate which is charged proportionately to the divisions. For example, membership entry gets charged at $.18 per piece, 80% is charged to Internal Affairs, 20% is charged to Magazine. The $.18 accounts for all MIS labor and overhead charges including CPU charges.

5915 Nat'l Convention Allocation - Account used to transfer Emblem cost at Convention to Emblem Division.

5916 Affinity Allocation - Account used at year end to transfer net income to program area. 5917 Birthday Life Allocation - Account used to transfer net income in Area 08 to various program

areas. 5918 Life Insurance Committee Allocation - Charge back to Area 15. 5919 Maintenance Services Allocation - Fee for maintenance services. 5920 Employee Benefits - All income from account 5910. 5921 Legal Services - Offset credit from account 5911. 5922 Accounting Services - Offset credit from account 5912. 5923 MIS Services - Offset credit from account 5913. 5924 Input Services - Offset credit from account 5914. 5925 Nat'l Convention - Offset credit from account 5915. 5926 Affinity - Offset credit from account 5916. 5927 Birthday Life - Offset credit from account 5917. 5928 Life Insurance Trust Committee - Offset credit from account 5918. 5929 Maintenance Service - Offset credit from account 5919. 5930 Money Market Allocation - Transfer income to Area 70. 5931 Affinity Administrative Fees Allocation - The account used internally for charging the Affinity

Program for services rendered by the Finance Division. 5932 Prescription Drug Program Allocation - To allocate income to Division 70, account 5942, for

program use. 5934 Programming Services Allocation - This account is used for programming and technical

support services requested by the divisions. For example, a division requests to enhance the membership system or other applications supported by MIS. This account is also used for requests submitted to the HELP desk for client services support or technical support. For example, if the Library Director wants a new software program loaded on his PC, an MIS technician would charge their time to the Library for the install.

5940 Money Market Allocation - Offset credit from account 5930. 5941 Affinity Administrative Fees - Offset credit from account 5931. 5942 Prescription Drug Program - To receive income from the allocation account 5932/06. For

VA&R use. 5944 Programming Se

Special Project Expensesrvices - Offset credit from account 5934.


6015 A L Institute Expense - All expenses for this program. 6025 Boys Nation Expense - All expenses for this program. 6028 Oratorical Scholarship - Scholarships, workshops, contests, and conferences. 6029 Oratorical Conferences - Travel expenses for the Regional Chairman during Oratorical

Chairman’s Conference. 6030 Oratorical Admin Expenses - Expenses for the administration of the Oratorical program. 6031 Oratorical Contests - To record the costs of staging Oratorical contests. 6035 Firing Line Expense - All expenses for this program except postage. 6037 Firing Line Postage - Self-explanatory.


6045 Pamphlet Expense - Account in Legislative Division only. 6050 Environmental Health Studies - Consulting fees to study the health impact on veterans and

veterans families from exposure to toxins. 6051 Persian Gulf Task Force - Expenses incurred to study the health impact on veterans of the

Persian Gulf. 6055 SAL Expense - All expenses for this program except postage. 6056 SAL Postage - Self-explanatory. 6058 GEOTEL - Expense incurred with Military Reunions Promotion in the Magazine. 6065 Uniform Groups Expense - Judges at National Convention. 6070 Junior Marksmanship Expense - All expenses for this program. 6075 Vacation Family Benefit Plan - Expenses associated with The Benefit Plan. 6077 National Network Program Expense - Expenses associated with the general purposes of the

National Network Program. 6079 Network TFA Program - Grants in conjunction with and under the rules of the Network

Temporary Financial Aid Programs. 6080 Miscellaneous Flag Expense - Self Explanatory 6085 Paid Up For Life Administrative Expense - Expense of administration of the PUFL program. 6090 Affinity Administrative Expense - All expenses for this program except Department

commissions. 6093 Annuity Administrative Expense - Expense of the administering the Annuity Program. 6095 Birthday Life Administrative Expense - All expenses for this program except salaries,

promotion and benefits. 6097 Kirke-Van Orsdel Deposits - Funds received via EFT from KVI for Legion insurance

activities - Legions portion of premiums paid. 6098 KVI Transfers - Reserves - Amounts transferred from The American Legion to KVI. 6100 Annuity Transfer - Balancing account used to zero out the Annuity Program Division at year

end. 6101 Healthcare Transfer - Reserves - Excess amounts transferred to Boatman’s. 6102 Prescription Drug to Reserve - Net Surplus to reserve for future use. 6103 Birthday Life to Reserve - Net Surplus to reserve for future use. 6104 MBNA to Reserve - Net Surplus to reserve for future use. 6105 Foreign Vocational Training Expense - Expense related to the program for assistance for

handicapped Vietnam veterans per Resolution No. 5, May 1996. 6110 Annual Baseball Conference - All expenses to Baseball Chairman's Conference held in

September such as travel, per diem, banquet, etc. 6115 Baseball Scholarship Expense - Expense account for the $10,000 received from Gatorade for

the scholarships given to the selected most valuable players of the eight regional tournaments ($1,000 to each player) and the selected George Rulon Player of the Year at the American Legion World Series ($2,000 to the recipient).

6117 Research/Polling - Expense used for research on flag amendment. 6118 Alliance Newsletters - Cost for flag campaign newsletter, including materials and printing. 6119 Alliance Newsletter Postage - Postage for flag newsletter. 6120 Membership Workshops - January planning session and July's actual conference. 6121 Fund Raising Expense - Used to track expenses to raise funds for the Flag Campaign. 6123 Agency -Promotion Materials - Materials created for flag campaign by agency such as

pamphlets, videos, fact sheets, slides, etc. 6125 Agency -Travel/Client Services - Travel and entertainment by agency for flag campaign. 6127 Agency -Services & Fees - Professional services and administrative charges for flag campaign.


6130 National Information Conferences - Formerly Nat’l Leadership Conference, all expenses except staff.

6140 Champions to World Series - Expense account for all expenses incurred in taking the American Legion Baseball World Series Champions to the Major League World Series Tournament, to include travel, hotel accommodations, meals, tickets. Eighteen (18) players and two coaches are taken to two games of the Major League World Series. Twenty-eight (28) tickets are purchased for each of the seven games. The extra tickets are resold and the money is put back in the Miscellaneous Income Account for Baseball.

6145 Litigation Account - Outside legal expenses incurred through Baseball Program. 6150 Dept Service Officers Training Conference - February conference in DC and July conference

in Indianapolis. 6152 Direct Mailers List Rental - Cost of renting lists for flag campaign. 6153 Direct Mailers Printing - Printing and laser expense for flag campaign. 6154 Direct Mailers Fulfillment - Cost of handling cash, checks, and white mail for flag campaign. 6155 Direct Mailers Mail Preparation - Insert and preparing pieces for USPO for flag campaign. 6156 Direct Mailers Creative - The creative work for flag campaign materials. 6157 Direct Mailers Services/Fees - Consultation for flag campaign. 6160 Reception to Congress - February reception on the Hill. 6161 Legislative Hearings - Reception in September. 6165 Veterans Day - For expenses associated with Veterans Day observance as necessary. 6166 Washington, DC Conference Expense - Expenses such as telephones, copies, signs, furniture,

gratuities which occur during Conference. This doesn't include Reception. 6167 Inaugural - Used every four years for Presidential Inaugural. 6170 COVA Expense - Court of Veterans appeals. 6175 National Commanders' Incentive Award - Expenses are in Area 31. 6176 Agency-Political - Grassroots work including activities such as the June 1-2 training seminar,

preparing profiles and conducting political research. 6177 Agency-Legal Scholars Meeting - All activities surrounding the planning and coordination of

the legal scholars meeting including scholars fees, travel expenses, meeting room rental, caterers and materials development.

6178 Agency-Toll-Free Flag Team Hotline - Professional time and expenses spent on the development and implementation of a flag team hotline to direct activities in the field.

6179 Agency-Federal Government Relations - Professional fees for communications with Members of Congress and White House.

6180 Agency-Media Events - Professional fees and expenses related to media announcements, press conferences, editorial boards, interviews, spokesperson training, etc.

6181 Agency-Media Materials Development - Professional fees and expenses related to the development of media materials, including: pamphlets, videos, fact sheets, slides, etc.

6182 Agency-Coalition Building Events - Professional fees and expenses related to the May 19 Summit and future coalition-building events.

6183 Agency-Coalition Building Outreach/Recruitment - Professional fees and expenses associated with building the CFA coalition and recruiting additional supporters, including notables and celebrities.

6184 Agency-Convention Seminar - Professional fees and expenses related to The American Legion Convention seminar.

6185 National Commanders' Special Program - Self-explanatory. 6186 21st Century As Hoc Committee Expense - Administrative expenses (excl. call-in expenses)

related to support of the Ad Hoc Committee. 6188 75th Anniversary - Self-explanatory.


6189 WWII Committee Expense - Established in 1994 in anticipation of expenses from the sale of WWII memorabilia.

6190 Funds Trans CFA - Flag raiser funds transfer account. 6194 Direct Renewal Postage - Third class postage. 6195 Direct Renewal Expense - All expenses except postage. 6197 Outside Legal Fees - Litigation fees. 6198 Miscellaneous Legal Expenses - Legal expenses not directly associated with outside legal

expenses. 6199 Non-Budgeted Expenditures - This account is located in the Finance area and is

self-explanatory. 6205 Fund Raiser Expense # 100 6210 Fund Raiser Expense # 101 6215 Fund Raiser Expense # 102 6225 Fund Raiser Expense # 104 6230 Fund Raiser Expense # 105 6235 Fund Raiser Expense # 106 6240 Fund Raiser Expense # 107 6245 Fund Raiser Expense # 108 6250 Fund Raiser Expense # 109 6255 Fund Raiser Expense # 110 6260 Fund Raiser Expense # 111 6265 Fund Raiser Expense # 112 6280 Fund Raiser Expense # 115 6281 Fund Raiser Expense # 116 6283 Fund Raiser Expense # 118 6284 Fund Raiser Expense # 119 6289 Fund Raiser Expense # 124 6290 Fund Raiser Expense # 125 6292 Fund Raiser Expense # 130 6293 Fund Raiser Expense # 131 6294 Fund Raiser Expense # 145 6295 Fund Raiser Expense # 146 6296 Fund Raiser Expense # 152 6297 Fund Raiser Expense # 153 6298 Fund Raiser Expense # 140 6299 Fund Raiser Expense # 160 6300 Samsung Scholarship Expense - To record funds disbursed from the Legion to recipients. 6301 Samsung Administrative Expense - Expenses of administering the scholarship program. 6302 Gross Expense Subs - To record all expenses incurred in conjunction with HPC. 6305 BVA Special Expenses - To record all expenses incurred for BVA projects. 6310 Distinguished Guest Expense 6312 Banquet Expense - To record banquet expenses at National Convention. 6314 Booth Expense - To record booth related expenses at National Convention. 6320 Staff Airfares - Convention - Self explanatory. 6322 Staff Housing - Convention - Self explanatory. 6324 Staff Per Diem - Convention - Self explanatory. 6330 Miscellaneous - Convention - Self explanatory. 6332 Parade - Convention - Self explanatory. 6334 Equipment/Furniture Rental - Convention - Self explanatory.


6336 Convention Freight - Self explanatory. 6338 Convention Center Miscellaneous - Self explanatory. 6340 Stage/Sound/Lighting - Convention - Self explanatory. 6342 Decorating - Convention - Self explanatory. 6344 Audio/Visual - Convention - Self explanatory. 6400 Fund Raiser Expense # 161 6401 Fund Raiser Expense # 157 6402 Fund Raiser Expense # 168 6403 Fund Raiser Expense # 173 6404 Fund Raiser Expense # 169 6405 Fund Raiser Expense # 171 6406 Fund Raiser Expense # 174 6407 Fund Raiser Expense # 177 6408 Fund Raiser Expense # 176 6409 Fund Raiser Expense # 175 6410 Fund Raiser Expense # 181 6411 Fund Raiser Expense # 197 6412 Fund Raiser Expense # 192 6413 Fund Raiser Expense # 193 6414 Fund Raiser Expense # 191 6415 Fund Raiser Expense # 201 6416 Fund Raiser Expense # 202 6417 Fund Raiser Expense # 204 6418 Fund Raiser Expense # 205 6419 Fund Raiser Expense # 179 6420 Fund Raiser Expense # 196 6421 Fund Raiser Expense # 206 6422 Fund Raiser Expense # 208 6423 Fund Raiser Expense # 209 6424 Fund Raiser Expense # 207 6425 Fund Raiser Expense # 210 6426 Fund Raiser Expense # 211

CHAPTER 5 CONTRACTS, LEASES, AND MAINTENANCE AGREEMENTS

5.1 RECORD ETENTION R

Original documents of all contracts, leases, and maintenance agreements must be sent to the Finance Division for safekeeping unless directed otherwise by the National Adjutant. It is the responsibility of the applicable division to obtain the documents from the vendor and deliver them to the Finance Division. Each division must also ensure that any amendments, supplements, or other critical documents are also filed in the Finance Division with the original agreements. While it is the responsibility of each division to monitor significant dates such as expiration (below), the associated letters/documents of cancellation must be sent to Finance to complete the record history.

5.2 AUTHORITY TO SIGN

All contracts, leases and maintenance/service agreements with The American Legion must be executed (signed) by the National Commander, National Adjutant or a designated officer of The American Legion.

5.3 RESPONSIBILITY OF CONTROL

It is the responsibility of the division impacted by the contract, lease or maintenance agreement to continuously monitor agreements performance, term status and payments.

Information Technology (IT) is responsible for maintenance agreements on computer and related quipment.

CHAPTER 7 6BMISCELLANEOUS PAGE 43

e

CHAPTER 6 FURNITURE & FIXTURES

6.1 OVERVIEW

Furniture and Fixtures includes all capitalized assets of The American Legion. All purchases are capitalized if:

• Estimated useful life is more than one year and;

• nd; • Cost is $500 or more;

Item is tangible (software is considered a tangible item) a• Item is not held for sale in the normal course of business.

6.2 PURPOSE OF CAPITALIZING

The purpose of capitalizing an asset is to spread the original expense of the purchase over several years to coincide with the economic or useful life of the asset. This expense, known as depreciation expense, is recorded monthly/annually over the useful life of the asset. This depreciation expense is posted to account 5840. For example, a division purchasing a chair costing $840 will have $10/month posted to their general ledger account 5840 for 84 months (7 years). Whereas a chair

ntire amount posted to account 5710, Office Supplies. costing $200 will have the e

Advantages To Capitalizing

There are several financial advantages related to capitalizing the cost of qualified assets. The first advantage of capitalizing costs is the ability for The American Legion to recognize the economic life of major asset acquisitions as opposed to expensing the full cost of the asset in the period the asset is acquired.

The second advantage of capitalizing costs is the ability to track expensive equipment. An asset that has been capitalized is given an asset number (tag) and is entered into the accounting system. All tagged equipment is assigned to a division and is the responsibility of that division to track the assets whereabouts. To assist divisions in tracking their equipment, each asset is also given a location code which is broken down by position, common area or storage area within each division. This streamlines the verification process in that the assets for each location are printed on a separate page. That page can then be distributed within the division to each person to verify their own assets. However, this does not relieve the division Director or their designated representative of responsibility for the verification process. Semi‐annually, Finance will send out an inventory listing to each division listing all capitalized assets assigned to that division. A cover letter will

due date. accompany the listing providing direction such as

The division that the asset is assigned to also collects the depreciation expense. If an asset is transferred to another division then the new division will collect all depreciation from that point

t

PAGE 44 CHAPTER 7 6BMISCELLANEOUS

forward until the asset is again transferred or until the asse becomes fully depreciated.

The third advantage of capitalizing relates to insurance values and premiums. The inventory control roster maintained by Finance provides a comprehensive listing of The Legion’s major expenditures for equipment. This report is used by our insurance carriers to calculate annual premiums.

6.3 USEFUL LIFE GUIDELINES

Assets purchased by the American Legion are capitalized and depreciated over the following time periods:

• Computers, servers and software ‐ 3 Years Monitors and all other computer related equipment ‐

• All other equipment, furniture and fixtures ‐ 7 Years • 5 Years

6.4 PURCHASES

There are three processes in which to obtain approval for furniture & fixture purchases: per approved budget, per resolution, and on an emergency basis. Prior approval for purchases of furniture & fixtures is mandatory except in rare cases where an emergency arises. In all cases, a Purchase Order (confirming purchase order for emergencies) is required.

Annual Budget ‐ Upon submission of your annual budget to your Executive Director, usually in late July, your annual “request for furniture & fixtures” for the next fiscal year should be enclosed under a separate F&F memorandum. This written request should only include equipment meeting the criteria in the overview section above. Upon review by the Administration, these items will be submitted by your Executive Director to the National Finance Commission and National Executive Committee in the Fall meetings. If approval is obtained, you will be informed by your Executive Director.

Once approval is obtained it is likely that direction will be given on the timing of your purchase. This is especially true for computer equipment. Divisions are not authorized to purchase computer equipment directly. Although the division determines the need and completes the “request for furniture & fixtures” memorandum to their Executive Director, the Information Technology (I.T.) Division will place the order and provide setup. Divisions are to use I.T.’s expertise when determining need. I.T. can help determine the necessary “specs” based on intended use. This practice will ensure a division is purchasing the right amount of product for the money. In all cases, approved purchases cannot be made until January 1 of the nex year. t

Before a division can purchase their equipment, a Request For Purchase (RFP) (Exhibit 6–1 – Request for Purchase) must be completed. Then, the RFP and a copy of the approved F&F memorandum from your Executive Director is to be sent to Purchasing. The final purchase price and asset number will not be known until the invoice and product is received. An RFP will not be processed by Purchasing without a copy of the approved F&F memorandum from your Executive Director. Once all documentation is in order, a Purchase Order will be created and an order will be placed. When the product is received by Purchasing, an asset control number will be attached and the asset number recorded by Purchasing on the control sheet. The invoice should be received by Purchasing first. Purchasing will record the price on the Asset Control Sheet (ACS), (Exhibit 6–2 – Asset Control Sheet) and forward both the invoice and ACS sheet to the division for proper

n. Both docu o n


authorizatio ments are to be sent back t Purchasi g for payment.

Purchasing should be the receiving section for incoming products. However, on occasion, sometimes it is more practical for another division to receive products directly from the vendor. In this case, Purchasing must be notified in advance. Upon receipt of the product, the packing slip should be sent back to Purchasing where it will be compared with the purchase order. When the

invoice is received it will be matched up with the purchase order and sent to the division along with the asset control sheet for authorization. After the division authorizes payment by signing the invoice and asset control sheet, they should be returned to Purchasing for payment.

6.5 EMERGENCY PURCHASES

Only National Officers and Executive Directors can approve emergency purchases. Emergency purchases are purchases of furniture and fixtures which have not been formally approved by the NEC through the Budget process. In this case the procedures are the same as if the purchase had been approved by the NEC except that an Emergency Request Memorandum is attached to the RFP instead of the approved F&F memo. Such emergencies might be demos purchased, unplanned

. breakdowns not needing immediate replacement and contract options

In rare circumstances a purchase must be made without prior written approval. Such an occurrence might include the purchase of hardware to bring the network back on line. In these cases it is imperative that proper documentation is completed as soon as possible after placing the order. In this case a “confirming PO” must be completed. A confirming P.O. is requested by writing “Confirming” at the bottom of the RFP and tells the purchasing department to create a P.O. but do not place the order. The confirming RFP and Emergency Request Memorandum is forwarded to Purchasing. As soon as the equipment is received, the packing slip is also forwarded to Purchasing. When Purchasing receives the invoice it will be matched up with the Purchase Order and emergency request form. The ACS and invoice will then be forwarded to the division for approval.

Another situation in which a confirming purchase order should be completed is at the end of a contract or lease and the decision has been made to purchase the item. In this case the purchase is already known in advance and the product is already in possession. All that is needed is to formalize the purchase with a confirming P.O. and authorized signatures. Another situation is when a product is being used as a “demo” only with no “strings” attached. The decision to purchase the product should be well known in advance and again the product is in possession. All that is needed is a confirming P.O. and an approval to purchase this asset from an authorized signer.

6.6 RESOLUTION PURCHASES

A purchase by resolution already has authority from the NEC. One of the differences is that the authority in a resolution can transcend years whereas the approved F&F is good for only one year. This makes resolutions more suitable for long term projects or when tracking the cost of a project is desired. The request per resolution must meet all of the same signature requirements, National Adjutant or Executive Director, as an approved purchase per budget and must also include the signature of the individual officially responsible for tracking the resolution.


6.7 GENERAL INFORMATION

For all purchases except computer equipment, Purchasing shall complete the Asset Control Sheet. However, in an attempt to streamline the time a division spends on asset verification, the asset control sheet has a place to show user and location. This field should be used. The location supplied by the division on the ACS is recorded into the F&F database by Finance. If the user and location is not known by Purchasing that field will be left blank and forwarded with the invoice to the division for completion and authorization. A template can be found on the network.

Quite often, a piece of equipment is purchased which adds to the life of an asset but is useless as a stand alone item. In this case, the new purchase is given the same asset number as its host asset but is given an extension, i.e. 1,2,3.

Employees on occasion are authorized to have Legion computer equipment at home. In this case, before anything can be taken home, a “Request To Sign‐Out Legion‐Owned MIS Assets” must be obtained from the I.T. Division. The form must be completed in entirety and approved by the employee’s division Director, their Executive Director, and the National Adjutant before the equipment can be taken home. A copy of this is maintained by Human Resources in the employees personnel file with the original going to Finance. When the equipment is returned a receipt is given to the employee for their records. This however does not apply to laptops which are authorized for temporary use by employees. In the case of laptops the employee must have approval from their director by way of memo (i.e. and E‐mail with return receipt acknowledgment).

6.8 DISPOSAL OF ASSETS

Overview ‐ Disposals of American Legion assets require completion of the Disposals section of the Asset Control Sheet (Exhibit 6–2 – Asset Control Sheet). No asset can be disposed of without proper authorization. Questions concerning the potential disposing of assets should be directed to the Purchasing. The following lists conditions which necessitate disposal of an asset when the item is:

Broken beyond repair • • item Broken and repair is more costly than purchasing a new• not repair nor replace Broken and a decision is made to

• • Stolen or lost

• Donated to another organization Sold, abandoned or retired

• Disassembled and used f reor spa parts.

6.8.1 DISPOSAL PROCEDURES

The disposal process is initiated by the Director, but a Director cannot authorize an asset disposal. To initiate the process, the Division Director completes the top section and Section II of the Asset Con ltro Sheet including

1) the asset user’s namcation co

e de 2) the asset lo

3) reason for disposal 4) signature.

a thAnother page can be att ched if more room is needed to explain e reason for disposal.

The completed asset control sheet is forwarded to the Purchasing or their authorized representative for approval. There may be times when the Purchasing will need to seek out expert advice on proposed disposals, i.e. computer equipment. In such cases, the advising division can


make a recommendation but only the Purchasing can authorize the disposal.

The asset sheet is forwarded to Finance by the Purchasing for removal from the accounting system.

The process to replace an asset cannot begin until the asset control sheet has been completed for the disposed asset and received by Finance.

Note: If the item still has book value greater than $500 then the disposal needs to be approved by the National Adjutant or his rep atresent ive.

6.8.2 LOST OR STOLEN ASSETS

If the asset is stolen, lost or damaged then the following steps should be taken:

If the item was damaged in a car accident or stolen from an employees vehicle or home then that person should file a claim with the employee’s insurance company. If the accident was the fault of a third party then a claim should be filed with that party’s insurance company.

If the above situation does not apply or the insurance carriers refuse to reimburse The American Legion then it is the responsibility of the Division Director to contact the Finance Division. Finance will in turn contact the our insurance carrier.

6.9 TRANSFER OF ASSETS

Transfers of all furniture and equipment require completion of Section III of the Asset Control Sheet (Exhibit 6–2 – Asset Control Sheet). Transfers must be approved by the transferring and receiving directors via signatures on the Asset Control Sheet. The new user name and location code should be entered for the receiving division. Once the asset is transferred, the receiving division director is accountable for the item and will also collect any depreciation during the time which the asset is in that division.

Maintenance is not authorized to move equipment without an Asset Control Sheet. Only after the Control Sheet has been completed and signed can Maintenance proceed with relocating the equipment. It is the responsibility of the originating division to complete the asset control sheet.

POINTS TO REMEMBER FOR TRANSFERS

• Recording a transfer to another division on the quarterly report returned to Finance will not suffice

•


The division initiating the transfer is responsible to ensure the asset control sheet is turned into Finance

• Location of asset being transferred is important. Employee positions are used as a basis for as many location codes as possible. If an asset will not be assigned to an employee then the location will be either a common area or storage area. Please be sure that the location used on the asset control sheet is one of the ones on your listing

EXHIBIT 6–1 – REQUEST FOR PURCHASE



EXHIBIT 6–2 – ASSET CONTROL SHEET

CHAPTER 7 MISCELLANEOUS

7.1 DUNN & BRADSTREET

The American Legion Uses the services of Dunn & Bradstreet Corporation (D&B), which is an information company that rates businesses and their associated credit standing. These records are maintained in the Advertising area of The American Legion Magazine Division.

If you wish to obtain a credit rating, financial background and/or history of a company for professional use, you must submit your request in writing to the Asst. Ad Manager. It is mandatory that you have the company’s phone number including area code, and their name and address.

7.2 WRITE OFFS

The American Legion will rarely give up in its attempt to collect a valid debt owed it by either an individual or corporation. When such a situation does exist, all means of collection have been exhausted, and a write off is desired, a memo to the National Treasurer (copy to the Finance Director lowing information; ) should be submitted with the fol

• Name of the company/individual,

• ct the debt. • Amount of the invoice, invoice number, and reason for the debt,

A detailed description of the steps that were taken, with dates, to colle• Your recommendation and the account/area numbers to be charged.

7.3 JOURNAL ENTRIES (CORRECTIONS TO RESPONSIBILITY DETAIL REPORT)

When it occurs that a transaction is assigned and/or posted erroneously, for whatever reason, and an adjustment or correction is necessary, submit a memo signed by a Director/Supervisor to the Finance Director with the following information;

• redited, The account/area number that was incorrectly debited

•

or c• The description printed on the Monthly Divisional Report,

The reference number and amount of the transaction, • The account/area number that should be debited or credited.

7.4 N RS SE DING FLOWE

CHAPTER 8 7BPAYROLL PAGE 51

7.4.1 NOTIFICATION

All notices of death of an employee or their immediate family, or illness of an employee should be directed to the Human Resources Division. Flowers sent by the American Legion National Headquarters are authorized by the Executive office. Human resources will notify the Executive office, prepare notifications, and make all authorized arrangements. To ensure complete accuracy, provide Human Resources personnel with full names of employees and/or specific family member, dates, and addresses.

PAGE 52 CHAPTER 8 7BPAYROLL

7.4.2 DEATH OF AN EMPLOYEE OR IMMEDIATE FAMILY MEMBER

The Employees’ League and Executive Office of the American Legion National Headquarters will send condolence flowers in consideration of the death of an employee and or their immediate family (parent, spouse or child).

7.4.3 EMPLOYEE ILLNESS

In the instance of the hospitalization of an employee, flowers will be sent by the Employees League during circumstances where the employee will be away from work through hospitalization or recuperation for more than two weeks.

7.4.4 OTHER FLOWERS

Flowers for other situations including flowers sent by a division for any reason may be ordered by the respective division through the Purchasing area and are considered the personal responsibility f the respective Division for payment. o

CHAPTER 8 PAYROLL

8.1 AREA OF RESPONSIBILITY/SCOPE

The scope of the Payroll function of the Finance Division is to process all payroll information including hours worked, gross wages, federal and state withholding taxes, pre‐tax deductions, distribute payroll checks, etc. and answer all questions of a procedural/how‐to nature. Employee payroll questions should first be directed to their division’s Time Keeper or their Director/Supervisor prior to contacting payroll. Policy questions must be directed to the Human Resource Division.

8.2 PAY PERIODS

Employees are paid twice a month. On the 15th of the month and the last day of the month. The 15th paycheck, covers the payroll period from the 1st to the 15th, and the second paycheck covers the payroll period from the 16th to the last day of the month.

Full time employees and temporary employees are paid on the same day. However, they are paid differently. Full time employees wages are based on their annual salary divided by 24 pays and employees are paid through the end of the day on payday (fifteenth and last work day of each month). Exceptions (adjustments) to the employees base semi‐monthly pay amount including overtime, PTO, RSP, LWOP, etc. are reflected on the next pay period following the actual occurrence. If an employee is hired in the middle of a pay period they will receive a percent of the semi‐monthly pay based on the number of days worked during the pay period. All full time employees both exempt and non‐exempt are salaried.

Temporary employees are paid one pay in arrears for actual hours worked as reported on their timesheets. Typically, hours worked by a Temporary Employee from the 16th of the month to the end of the month are paid on the 15th and hours worked from the first of the month to the 15th are paid on the last day of the month.

Since their pay is based on actual information and is dependent the information reported and processing time, the pay they receive on any particular payday can vary between one, two, or three weeks. Typically, a Temporary Employee will be paid for hours worked during the week and a half before the specific payday. Therefore current hours will be received on the next payday. Thus, Temporary Employees will usually not be paid on the first payday they work. Temporary employees are paid only for actual time worked on the job.

CHAPTER 9 8BPURCHASING PAGE 53

8.3 PAY DAYS

For payroll purposes, The American Legion workweek begins on Sunday and ends with Saturday. Employees are normally paid by corporate check or by direct deposit to their checking or savings accounts on the fifteenth and last workday of each month. Employees are paid through the end of the day on payday (fifteenth and last work day of each month). This normal schedule will vary if a regular payday falls on a Saturday, Sunday, or holiday. If the payday falls on these days, paychecks will be issued on the first regular working day immediately prior. It is the responsibility of each employees specific Director/Supervisor to distribute the pay.

New full time employees, once the National Adjutant approves the paperwork, will be paid on the first payday following their hire date regardless of the length of time employed. If an employee is hired in the middle of a pay period they will receive a percent of the semi‐monthly pay. All full time employees are salaried.

New Temporary Employees will typically receive their first paycheck on the second payday after their hire date. Refer to topic 8.2 Pay Periods above for the explanation of the basis of pay. It is the responsibility of the Director/Supervisor to have the employment forms, The American Legion National Headquarters Personnel Form Add papers (Exhibit 8–1 – Personnel Action Form) completed and submitted to the Human Resource Division prior to pay for all new employees.

Each payday every employee receiving pay on that day regardless of pay method will receive a Statement of Earnings itemizing current and year‐to‐date information on pay received, deductions, taxes, and other information including current and total available PTO hours.

8.4 DIRECT DEPOSIT

As a convenience for all employees, The American Legion will enroll any full‐time employee in its Direct Deposit/EFT program at no charge. Under Direct Deposit, employee’s paychecks will be automatically deposited into their banking institution accounts so that the funds will be available for withdrawal on regularly scheduled paydays. Employees enrolled in this program continue to receive earnings statements on each payday.

Benefits of Direct Deposit are: elimination of lost or stolen paychecks; convenience of multiple accounts with different banks; deposits may be divided between checking and savings accounts; automatic deposit of funds while on vacation, and elimination of personal trips to the bank and battling inclement weather among others.

To enroll for Direct Deposit an authorization form must be prepared and signed by the employee (Exhibit 8–2 – Automatic Deposit Form). The forms are available in Human Resources and Finance. The nine‐digit bank routing number and account number are needed. It is helpful and eliminates many errors if a VOIDED CHECK containing this information is attached to the form. A separate form is needed for each bank account. The entire check must be deposited. Therefore the total percent allocation of all forms/accounts must equal 100% or the last bank account should state “100% of the remaining”. This will insure all future increases in pay will be deposited. The initial set up takes at least one test transmission. Pay information is processed a week before the

. actual payday, therefore all changes in Direct Deposit account numbers take two pays to process

When changing banks or accounts please notify the Finance Division a minimum of three weeks prior to the desired account activation. Due to the two pay processing time this allows sufficient lead‐time to activate the new bank/account and ensure the check is deposited in the correct account(s).

PAGE 54 CHAPTER 9 8BPURCHASING

8.5 OVERTIME

Overtime is paid to all non‐exempt salaried employees when they are authorized by their direct supervisor to work more than 40 hours. OT is calculated at the end of the week for all hours over

40 (not for hours worked over eight in a day) and is paid in the amount equal to 1.5 times the employee’s annualized salary divided by annual hours in the current year.

Paid Time Off (PTO), Reserve Sick Pay (RSP), Overage Reserve Sick Pay (ORSP) do not count as hours worked. For full‐time employees holiday hours count as hours worked, but PTO, RSP, ORSP do not. If an employee has PTO, RSP, ORSP or LWOP hours, any additional hours worked is paid at the regular rate until he has worked enough hours to replace the hours.

8.6 LEAVE WITHOUT PAY

A Leave Without Pay form (Exhibit 8–3 – Leave Without Pay and/or FMLA Notification) should be submitted to the Human Resources Division (copy to Finance) as soon as it is likely that an employee will be on Leave Without Pay (LWOP) for two or more weeks and has exhausted all available sick leave and vacation hours. This will place the employee on Leave Without Pay Status and take them off automatic payroll and EFT. The employee on LWOP Status must receive actual checks and not participate in electronic deposit. A check will be issued with current time card information.

The LWOP form will provide notification for the current payroll period to be adjusted for LWOP and employee being in a deficit payroll statureduce the chance of the s upon returning to work.

A Return to Work form (Exhibit 8–4 – Return to Work Notice) should be turned in when the employee returns to work, or when the probability of receiving future checks is good. EFT will resume automatically. If the return to work form is received a week or less prior to payday, the first check will not be via EFT.

8.7 ADVANCE OF WAGES

In a case of emergency, employees may request advance payment of earned or unearned wages. Each request must be submitted to the employee’s Division Director and Executive Director for approval. Requests for advances must be written, include the specific reason for the request, and be presented to th loe emp yee’s Division Director.

8.7.1 APPROVED AMOUNTS AND REPAYMENT METHOD

Approved payroll advances are not long‐term loans with intermittent salary reductions for repayment. The advance cannot exceed the net amount due the employee at the next pay date, and the employee must sign a form authorizing the total amount of the advance to be deducted at the next pay date.


8.7.2 EARLY RELEASE OF PAY

Paychecks can be released early only if the Finance Director (or his assigned representative) receives a written request approved by the employees Director (or the Human Resources Director in their absence). The request must specifically state the reason for the need for early release. Directors must have their request approved by the Executive Director or National Adjutant. An employee can request early pay in writing without approval if they will be on official Legion business and the proper travel forms have been submitted to the Finance Division.

If a manual payroll check employee is going on vacation or business trip over the payroll date, and the proper authorization is presented to the Finance Division, the employee can (1) give the Finance Division a deposit slip and we will mail in the check for deposit when it is available or (2) receive their check early with no change in the check date. If the Finance Division mails in the check for deposit there is not guaranteed deposit date for the check.

Direct Deposit payroll employees, when going on vacation or business trip over the payroll date, and the proper authorization is presented to the Finance Division, are given their Direct Deposit stub early. However, their payroll amount is not credited to their financial institution until the date that payroll is posted. In an emergency situation, an Advance of Pay check can be issued through Accounts Payable and repaid to The American Legion with the next payroll check. Remember electronic pay deposit (EFT) eliminates the hassles of requesting pay early, because the money is automatically deposited to your bank account(s).

8.8 EARLY DISTRIBUTION OF PAYROLL CHECKS

Employees who will be on PTO leave during the period in which a regularly scheduled payday occurs may request that their check be presented to them on the last day they will be at their workstation prior to commencing their PTO leave. Such requests should be in writing and presented to their Division Director at least one week in advance of the requested payment date.

8.9 FINAL PAY CHECKS

Final Pay is generated by completed Termination Papers ‐ The American Legion National Headquarters Personnel Form (Exhibit 8–1 – Personnel Action Form). It is the responsibility of the Director/Supervisor to complete Termination papers. These forms are found in Human Resources and returned to Human Resources. Please make sure the exact date and time of termination is noted. The Termination paper remarks should note any pay for accrued vacation along with any special pay arrangements such as severance and specify if two weeks notice was given. These forms must be signed by their respective Division Director and the National Adjutant.

The final check, if applicable will be issued on the next payday and sent to the Director/Supervisor nless otherwise directed. u


EXHIBIT 8–1 – PERSONNEL ACTION FORM


EXHIBIT 8–2 – AUTOMATIC DEPOSIT FORM


EXHIBIT 8–3 – LEAVE WITHOUT PAY AND/OR FMLA NOTIFICATION



EXHIBIT 8–4 – RETURN TO WORK NOTICE

CHAPTER 9 PURCHASING

9.1 DUAL CONTROL SYSTEM

The American Legion uses a dual control system for accounting procedures involving expenditures. This system provides that (1) any expenditure $500 or greater must be approved by the National Adjutant or his designated representative, and (2) no employee may approve payment of an invoice which has been invoiced in that employee's name.

9.2 PURCHASING PROCEDURES

All purchases made by The American Legion National Headquarters require issuance of a purchase order prior to initiation of the transaction. The Purchasing Director and National Finance Director are the sole agents authorized by the National Adjutant to make purchases for The American Legion. If a staff member authorizes a purchase for the Legion without prior approval, that individual can and/or will be held responsible for the charges involved in that purchase.

Purchase orders are necessary not only for materials, but also for services. Any commitment of monies requires issuance of a purchase order. No confirming Purchase Orders will be issued on purchases already made unless the purchase was made during an emergency and justification is submitted.

9.3 PURCHASE ORDER OR CHECK REQUEST

A Check Request is used only when the vendor will not issue an invoice and requires payment upon receipt of goods or services. (Exhibit 1–1 – Check Request)

9.3.1 REQUEST FOR PURCHASE (RFP)

When it is necessary to request any purchase, a Request for Purchase form, (Exhibit 6–1 – Request for Purchase) must be filled out, submitted for approval. The approved RFP can then be sent to Purchasing for creation of the Purchase Order. This Request for Purchase form is used for all purchases outside The American Legion. The RFP can be obtained from the Intranet under Forms & Templates – Purchasing/Doc. Processing – Request for Purchase. It can also be located in Microsoft Word – Files – New – Legion Templates – Purchase Request. In order for the form to calculate correctly, you must answer “yes” if asked to enable macros.

Completing the Request for Purchase form: Refer to the information line for assistance in completing the f

CHAPTER 10 9BTRAVEL AND EXPENSE REPORTS PAGE 61

orm. Use the “Tab” key to move from field to field.

1) Routing: Hit the space bar to select the routing of the form. Route the request to Purchasing if the total request is under $500. Should the total exceed $500, an "X" should be placed in the box marked "NATIONAL ADJUTANT". All requests for $500 or more require the approval of National Adjutant or Executive Director or their appointed representative prior to being forwarded to the Purchasing section. A Director may approve a request for purchase if it is under $500.

2) Division Information: Enter the name of the division making the request with the corresponding division area number and account number in the provided spaces. These fields must be completed to ensure accurate coding. Incorrect account and area numbers only cause a delay in procuring the product.

Vendor I ddress and fax number. Contact th

3) nformation: Enter the vendor name, telephone number, ae P

urchasing Administrative Assistant if this information is not known.

4) Quantity: Fill in the quantity or number of items to be purchased. 5) Description: Make the information in the "Description" section of the form complete and

accurate so that the Purchasing will know exactly what is being requested. When appropriate, samples should be attached.

6) Stock #: The stock number section should be completed to assist the Purchasing in procuring the correct item. If the stock number is not known, contact the Purchasing Division prior to submittal of the form so they may supply you with the information. The stock num hase form ber may be entered in the "Description" section of the Request for Purcif the supplier’s identification number will not fit in the “Stock No.” section.

Unit CAdmi r.

7) ost: Enter the Unit Cost from the catalog or other source. The Purchasing nistra de

tive Assistant will enter any discounted price while entering the Purchase Or

8) Units: Enter the unit category as listed in the information area (i.e.: EA, BOX, CTN, PKG).Total Cost: Th9) e total cost will be automatically calculated if you enabled macros. If the form is done manually, ensure the total cost for the item is entered. Shipping Cost: Input this informatio t, 10) n if it is applicable and the amount is known. If noleave this field blank.

11) Needed For, Needed By, Deliver To: In the information fields enter what the item is “Needed For” (i.e. Inventory, office supplies, etc.), “Needed By” (a reasonable date the item(s) are needed), and “Deliver To” (the person or area which the items are to be delivered).

12) Purchase Authorization: One of the fields of “Operating Budget”, “Emergency Request”, or “ Resolution” must be selected. Refer to Section VIII for procedures for the purchase of Furniture and Fixtures. If the item/service is not included in the Approved Operating Budget, the memorandum t ncy o the respective Executive Director requesting the EmergePurchase or a copy of the Approved Resolution must be attached.

13) Requested By/ Approved: The Division Director or his representative must sign all Requests for Purchase. As previously stated the National Adjutant or his representative must approve all requests over $500.00.

Routing the Request for Purchase: the original copy of the Request for Purchase is sent to the Purchasing after the necessary signatures have been obtained. The origination division should retain a copy.

Once the approved Request for Purchase has been received in the Purchasing Office, a purchase order will be issued to the vendor. The division will receive a pink copy of the P.O. marked "Division." This should be re i of the Request for Purchase. tained n the files along with division copy

PAGE 62 CHAPTER 10 9BTRAVEL AND EXPENSE REPORTS

9.3.2 BLANKET PURCHASE ORDERS:

Blanket purchase orders are used when there is a reoccurring item used from the same vendor every month or week. Examples include maintenance agreements, lease agreements, packing materials, film work for the Legion magazine, and purchases from HPC and Promotion

Management. When submitting the Request for Purchase form for a blanket purchase the requesting division should indicate the following information:

Quantity Section: I1) ndicate either the number to items to be purchased or the number of purchases. (Ex. ‐ If the purchase is to occur twice a month for one year enter 24)

2) Description Section: Specify that this is to be a Blanket Purchase and supply a description of the purchase su or

rchase ch as coffee purchases for one year. Supply an estimated cost per item

cost per pu which ever is applicable. Stock No. Section: Supp e blank if not applicable.

3) ly the stock number if it is a specific item or leav

4) Estimated Cost Section: Enter the estimated cost of the total purchase.

The Purchasing office will monitor the progress of the Blanket Purchase and notify the division when the blanket order is close to expiration. The actual total purchase amount cannot exceed the initial approved blanket order. When notified, the division must submit a new RFP for a Blanket Purchase to continue the items or purchases.

9 EMBLEM SALES PUCHASE .4

9.4.1 EMBLEM INTERNAL TRANSACTIONS

When ordering merchandise from National Emblem Sales for business purposes, a Request for Purchase Form must be completed (see intranet). This request should include all necessary info arm tion on the form not to exclude:

ailable 1) Complete description with stock number if av

harged 2) Estimated Cost

3) The account and area numbers to be c4) Authorized signature 5) Administrative approval if over $500

When the order is filled, the National Emblem Sales invoice will be sent to the division making the purchase. Emblem Finance will charge the area and account designated on the Request to Purchase. If there is a correction to be made, it should be submitted via email to National Emblem Sale is F nancial Manager. The email should include the following:

1) The account/area that was incorrectly debited or cre2) The Emblem invoice number and amount of the trans3) The account/area

dited action

that should be debited or credited


9.4.2 REQUEST FOR PURCHASE, EMBLEM

A request to purchase from National Emblem Sales is to be processed using the Request for Purchase Form located on the intranet. If the total purchase price is under $500, route the RFP to National Emblem Sales. Should the total exceed $500, an “X” should be placed in the box marked National Adjutant. All requests for $500 or more require the approval of the National Adjutant or Executive Director or their appointed representative prior to being forwarded to National Emblem Sales. A Director may approve a request for purchase if it is under $500.

9.5 FURNITURE AND FIXTURES

Refer to Chapter 6 Furniture & Fixtures.

9.6 OFFICE SUPPLIES

All generally used office supplies are carried in stock in the Supply Room located in the Purchasing office. Needed office supplies may be obtained during normal business hours.

A "requisition" form is used in obtaining office supplies. This form, is kept on hand in the supply room and should be filled out and signed at the time supplies are drawn.

It is necessary to submit a Request for Purchase for office supplies needed but not carried in stock.

9.7 SUBSCRIPTIONS

Subscriptions requiring prepayment with a supplied invoice should be coded approved and sent to Accounts Payable for payment. Subscriptions not requiring prepayment or those without an invoice should be sent to Purchasing with a Request for Purchase Form to generate a Purchase Order.

9.8 INVOICES

All incoming invoices received must be routed to Purchasing first so the green purchase order may be attached to the invoice. The invoice is then sent to the originating division for review and coding.

Rev iew for the following:

1) accuracy of the invoice 2) receipt of merchandise or service

nce Division to understand the purchase and

3) appropriate documentation enabling the Fina

properly record the expense

nt n Indiana)

4) availability of discounts for prompt payme5) sales tax (No sales tax should be charged i6) National Adjutant's approval, if required

The invoice must then be return P ysed to urchasing within 5 working da for processing.

9.8.1 STATEMENT VS. INVOICES

A number of companies will send a statement at the end of the month. Those statements are clearly marked as such and should not be coded, but send directly to Purchasing.


9.9 CODING

All invoices must be coded with an appropriate account number and area of responsibility. Expenditures assigned to these accounts must have been approved as a part of the current year's


budget for each area of responsibility. In the absence of such approval, the National Adjutant must have approved the expenditure on the Request for Purchase. Once this approval is obtained, the respective division has the responsibility to designate the account and area of responsibility to hich the expenditure will be charged. w

CHAPTER 10 TRAVEL AND EXPENSE REPORTS

10.1 OVERVIEW

Certain positions at the American Legion require employees to travel, whether on a regular or infrequent basis. This section sets forth the rules that govern such travel, and these rules govern all travel completed by American Legion employees. Questions regarding interpretation of these rules or special circumstances should be directed to the National Finance Director.

10.2 TRAVEL PROFILE

The travel profile provides a means to put employee’s travel preferences in the system so they will be available every time an airline ticket is made. This profile is used for anyone who travels 3 – 4 times per year. Your address and phone number is stored so that you can be notified directly by the airlines in case of change in departure times or flight cancellations. Frequent flyer program numbers are also stored so that you will get credit for all flights booked through The American Legion. Payment information is also defaulted so that the cost is automatically put on your corporate credit card or the company Visa credit card.

10.3 AUTH EXPENSES ORIZED STAFF

10.3.1 PER DIEM

Per diem covers meals when travel requires overnight stay or when official in‐town business mandates meal expenditures. Full per diem is based on a two‐tier schedule of higher and lower

ollows (as f 1/1/08). cost cities as f o

$55 per day ‐ Baltimore, Boston, Chicago, Dallas, Los Angeles, Miami, New Orleans, New York, n Francisco, Washington, D.C. and National Convention. Philadelphia, San Diego, Sa

$50 per day ‐ All other cities

Partial per diems are dependent on departure and arrival times of 10:00 am and 3:00 pm, and meals supplied by third parties or meals that are paid for by The American Legion in another fashion.

The allowable partial per diem based on arrival and departure time (before adjustments for supplied meals) is as follows.


Cit te y RaBefore 10:00a

Between 10:0 and 3 p 0a :00 Afte 00p r 3:

Depart Home Station $55 $55 ( Day)full $45 $31 $50 $50 ( Day)f ull $41 $29Arrive Home Station $55 $10 $24 $55 (full day) $50 $9 $21 $50 (full day)

The adjustment amounts to per diem for meals supplied by third parties are as follows.

Cit tey Ra Bre astakf Lunch Dinner $55 $10 $14 $31$ 0 $9 $12 $295

10.3.2 HOTEL/MOTEL ACCOMMODATIONS

The cost of lodging is reimbursable. Where you stay is at the discretion of your Director. All efforts to place you in convenient and acceptable accommodations will be made as long as the price is within reason for that area.

Reimbursement in this category is intended to reimburse travelers on authorized American Legion business for the actual expense of hotel accommodations while away from the home station. Gratuities or tips to friends, relatives, etc. for accommodations in lieu of staying at a hotel/motel are not reimbursable.

10.3.3 PERSONAL AUTO TRANSPORTATION

If you are authorized to travel via automobile, you will also be reimbursed for parking lot fees and tolls. The mileage reimbursement rate as of January 1, 2009 is $0.485 per mile.

When air travel is authorized and employee parks vehicle in long‐term/business parking the employee will be reimbursed mileage to the airport, long‐term/business parking fees and mileage home. It the employee is dropped off at the airport the employee will be reimbursed the round trip mileage to the airport and short‐term parking fees.

Short‐term parking will not be reimbursed if the employee parks his vehicle at the airport for the time he/she is out of town. Additiona ot reimbursable. lly, traffic violations are n

10.3.4 AUTO RENTAL

Auto rentals must be made for . the employee by the Travel Coordinator

10.3.5 MISCELLANEOUS EXPENSES

Other reasonable or authorized expenses necessary to conduct official business such as tips (including those to skycaps and doormen), reasonable telephone charges, fax/copy, etc are reimbursable. Miscellaneous expenses do not include gratuities or tips to friends, relatives etc. for accommodations in lieu of staying at a hotel/motel. Tips for maid service are not reimbursable.


The rule of thumb for tipping skycaps and bellmen is $1 per bag handled.

Checked Luggage and Carry‐On Bags ‐ Employees traveling on official Legion business are allowed to check up to two bags within the weight limits prescribed by the particular airline(s) on which they are traveling. If a charge is levied for checking two bags, The American Legion will pay that charge. Obtain a receipt, if available, and list the amount under this expense category on your expense report (Exhibit 10–2 – Expense Report). The employee is responsible for any fees charged by the airline for bags over the prescribed weight limits and/or any fee incurred for checking more than two bags.

Employees are responsible for determining how many bags the airline will allow them to check, the weight limit per bag, and ascertain what is allowed as a carry‐on bag, then pack accordingly. It is recommended that you check the various airlines web‐sites prior to flying to determine their baggage policy.

10.4 TRAVEL ORDER

10.4.1 TRAVEL ESTIMATES

Before you can complete the travel order, you will need information regarding the estimated cost of travel. The Travel Coordinator needs the following information in order to research your travel costs – dates of travel, city to travel to and the timeframes that you need to work with (time you can leave, time you need to be there or back, etc.). If a rental car is required, you need to provide drop off locations and times so that an estimate for this cost can also be obtained. Email is the preferred means of communication to accomplish this.

Once you have received these estimates, time is of the essence because an airline reservation can only be held for twenty‐four hours and the Travel Coordinator cannot complete the ticket until the approved travel order is received. If the twenty‐four hours pass, the estimate previously given is no longer valid as ticket prices likely will have changed and airfare prices typically increase closer to travel.

10.4.2 TRAVEL ORDER AUTHORIZATION FORM

A travel order template is located in the Finance section of the Legion’s intranet page (Exhibit 10–1 – Travel Order Authorization Form).

The travel order form must be completed and approved prior to submittal to the Convention and Meetings Division for travel booking and processing. The form must be completed in its entirety, signed by the employee and submitted to his/her division director for approval. The National Adjutant, or his designated representative, must approve all authorized travel for American Legion employees. The travel order must be complete and accurate, as it is an official document and may be used to process an insurance claim should an accident occur while an employee is traveling on official business. While the travel order should be submitted in a timely manner to obtain the lowest possible travel cost, it should not be submitted more than two months prior to the requested dates of travel unless specifically requested otherwise, such as travel orders for national convention.

NOTE – Proper prior planning is critical to keep costs low for travel. Airfares typically rise as you get closer to the date of travel, so booking the reservation and printing the tickets outside of twenty‐one days before travel will save the organization a lot of money. Typically there are no

ate of travel. discounted fares available for booking within fourteen days of the d

The following provide ompleting the travel order. s instruction for c

Date/


For/Division Self explanatory.

NOTE ‐ You must use your legal name on this official document.

Destination ‐ List the travel destination or destinations if more than one city. Cities stopped in for other than just making a connection should also be identified.

For the following purposes ‐ Specifically identify the purpose of the trip including intermediate stopovers. May be relied upon to establish the business purpose of the trip in case of an insurance claim.

Leaving/Returning ‐ Enter the dates and times you will be leaving and returning to home station. If flying, flight departure and arrival time must be listed.

NOTE ‐ Any vacation time in conjunction with approved business travel must be stated on the travel order form and be approved according to the policies for vacation approval. If the travel arrangements necessary to accommodate vacation time result in a higher cost than what would be incurred if straight business travel took place, the employee will be responsible for paying this difference in cost, to include airline ticket, re . ntal car, parking, etc. differential

It is desirable that the employee travel by ‐ Enter mode of transportation.

Airline Cost ‐ Enter cost of airline tickets, if applicable. If you are flying, this amount must be filled in. Enter any clarifying comments in the Notes column.

NOTE: See Miscellaneous Expenses (Section G below) for the American Legion’s Policy regarding checked luggage and carry‐on bags.

Automobile Cost ‐ Enter the cost of a rental car or mileage cost for personal vehicle travel, if applicable. Enter any clarifying comments in the Notes column.

NOTE ‐ If travel by personal auto is requested, other modes of transportation will be looked at to determine if travel by such is less expensive. If personal auto is required, please annotate the reasons why.

NOTE ‐ If travel is by rental car, the car should be paid for on the corporate credit card if the employee has been issued one. All automobile rentals are required to obtain the following insurance to protect themselves and the company: Loss damage waiver which is coverage for loss or damage to the rental car; liability insurance supplement; personal accident insurance and personal effect insurance coverage. Should you get into an accident in a rental car while on official Legion business, complete all forms and reports required by the rental car company, and notify FNBO using the 800 number listed in your benefits brochure. You must also notify the National Finance Director of the situation.

Per Diem ‐ Enter per diem amount for business travel. Per diem is calculated on the departure and arrival times supplied above. Enter any clarifying comments in the Notes column.

NOTE ‐ If you are flying, per diem is calculated on the official flight departure and arrival times listed on your itinerary.

Miscellaneous Expenses ‐ Enter estimated reimbursable miscellaneous expenses, such as taxis, tips, parking, airline charges for up to two bags, etc. Amount must be reasonable for the city you are tra


veling to. Enter any clarifying comments in the Notes column.

NOTE: See Miscellaneous Expenses (Section G) for the American Legion’s Policy regarding checked luggage and carry‐on bags.

Hotel/Motel ‐ Enter estimated reimbursable hotel or motel room costs. Enter any clarifying comments in the Notes column. If the hotel or motel costs will be paid for on a corporate credit card or on a master bill, this cost should not be included in the amount of advance requested. If the cost is to be paid for by personal credit card or cash, it should be included in the amount of advance requested.

Total Approved Expe ve. nse ‐ Template will show total of all expense amounts entered abo

Amount of Advance Enter the advance amount requested to cover reimbursable cash expenditures. This is the amount of the check that you will receive prior to leaving for travel. It typically will be the total of expected cash expenditures listed in the above sections, and does not include anything that will be paid for on a corporate credit card or master account.

Date Advance Check is Needed ‐ Enter the date that you need your advance check and airline tickets. Typically, this will be two or three working days prior to departure. Please remember that checks are printed on Tuesdays and Thursdays and typically are delivered before the end of the working day in the downtown building, the next days van run to Building 2 or sent overnight to the Washington office on Tuesdays and Thursdays after the check run.

Calling the Finance Division the day the check should be written and requesting it prior to the normal check run distribution will not result in receiving your advance early. The check run has to be approved by the National Treasurer and it is your responsibility to know that checks are written every Tuesday and Thursday, and are typically delivered by the end of the day.

Approval Signatures ‐ The travel order must be signed by the employee and approved by his/her director and the National Adjutant, or his designated representative, prior to submission to the

rsonal files. Finance Division. It is recommended that you keep a copy of this document for your pe

When the Finance Division receives the approved travel order and completes all travel arrangements, the employee will receive a copy of their flight itinerary from the Travel Coordinator.

NOTE Conference and Travel provides a couple of 800 numbers for travelers to call in case of emergency; these are printed on the air itinerary that you receive. Please note that The American Legion is billed $16.00 each and every time these numbers are called. These numbers are to be used only in the case of a true emergency. If you need assistance during regular working hours please call the Travel Coordinator. If you need assistance after working hours or on the weekend please make every effort to resolve the issue with airline personnel in the airport, as they normally can assist you with most issues.


10.4.3 CHANGES TO PREVIOUSLY APPROVED TRAVEL ORDER

Changes to approved travel plans including changes in departures or arrival dates, destinations, requested travel advance amount or check delivery date required that the travel order be revised. It is suggested that you obtain the originally submitted travel order from the finance division and make the corrections as needed and write the word “Revised” at the top of the form. If significant changes occur, the Executive Director or National Adjutant will need to sign off again. If changes in travel are due to personal and not business reasons, additional costs incurred may be the responsibility of the employee.

10.4.4 CANCELLATION OF PREVIOUSLY APPROVED TRAVEL ORDER

If it becomes necessary to cancel previously approved travel, the employee must notify the travel coordinator immediately, preferably by e‐mail. The travel coordinator will handle processing of the airline tickets in order to receive credit for them, and will ensure that any advance check due the employee will be cancelled in the system.

10.5 STAFF EXPENSES AND REPORTING

All American Legion Employees who travel on official business are required to submit an employee expense report form. The purpose of the form is to report and document any official business expenditures that occurred during their trip and to clear any distributed travel advances. The expense report must be completed, approved and submitted to the Finance Division no later than three working days after return from their official trip. An expense report template is located in the Finance section of the Legion’s intranet page (Exhibit 10–2 – Expense Report).

The following provides instruction for completing the expense report. Detailed instructions are also included as page two of the expense report template.

Total Cash Ex ve. pense ‐ Template will automatically show total of all cash expenditures listed abo

Less able. Advance ‐ List the check number and amount of the travel advance received, if applic

Due ‐ Template will automatically show the amount due to or from The American Legion.

Due American Legion ‐ If the advance is greater than the expense, a check must be attached to reimburse The American Legion for this difference. The check should be attached before submitting the report for approval. If reimbursement is via cash, submit the exact amount of reimbursement.

Due Staff Member ‐ If the expense is greater than the advance, the Finance Division will process the expense report and generate a check run. check payable to the employee in the next scheduled

Area/Account Number/Amount ‐ Enter the area and account number, along with the corresponding amounts, that the cash expenses should be charged to. The total listed under this section must equal th e Total Cash Expense from above; charged expenses should not be listed here.

Staff Member/Date ‐ Sign and date the expense report and submit to your director or supervisor. It is strongly recommended that you keep a copy of this document for your personal files.

Approved/Date ‐ The expense report must be approved by your director (executive director for director’s expense reports ) and dated prior to submission to the Finance Division for processing.

Total Approved Expense ‐ The template will list the total cash and company credit expense for this trip.


10.6 CALL‐IN EXPENSES AND REPORTING

For call‐ins (volunteers) to be reimbursed for their travel expenses while attending annual meetings, the National Convention or other official American Legion business, they must:

• djutant or National Have written authorization, usually prior to trip, from the National ACommander.

• nteer Expense Report (Complete The American Legion ‐ Official VoluVolunteer Expense Report).

• Answ

Exhibit 10–3 –

er roll call on the 1st day of all meetings.

IMPORTANT ‐ Immediately upon completion of the roll call, the staff liaison must submit a roll call form to both the National Adjutant and the Finance Division. This is required before reimbursement checks can be distributed to callins. Call‐ins not answering roll call or listed as “not present” on the roll call list will not be issued expense reimbursement.

When the call‐in expense report is completed it must be presented to a member of the Finance Division for review. This is to verify the listed costs and determine if an extra day per diem is due. The airline ticket must be reviewed for proof of the savings to The American Legion before the additional day of per diem will be authorized as prescribed by resolution #17 from the National xecutive Committee. E


EXHIBIT 10–1 – TRAVEL ORDER AUTHORIZATION FORM


EXHIBIT 10–2 – EXPENSE REPORT



EXHIBIT 10–3 – VOLUNTEER EXPENSE REPORT

Documents

Finance Manual