N9G “TOOLBOX”

What is the N9G Tool Box? The N9G tool box provides the field with helpful information on a wide range of subjects. The tool box provides information to CNIC Regions & Installations; keeping them “audit-ready” at all times. We have provided each of you with a tool box, just make sure as we provide you a tool monthly, you keep it in your tool box!

Topics that will be filling your Tool Box Monthly Cost of Goods Sold developed by Inez Holt November Cash & Cash Handling developed by Dierk Jaeger December Managers Financial Review developed by Connie Milton January NAF Personnel developed by Sandy New February Contracts developed by Dierk Jaeger April Reconciliation May Assets InventoryJune

Contracts Catering, Marina, & Vehicle Storage In keeping with the overall role of MWR to provide free and discounted recreation to military personnel and their families, it is the responsibility of MWR management to ensure positive internal controls are maintained.

Contracts Catering, Marina, & Vehicle Storage The facilities provided or available vary from Installation to Installation. Three of the areas that provide discounted services to all authorized patrons are: The facilities provided or available vary from Installation to Installation. Three of the areas that provide discounted services to all authorized patrons are: Catering and Conference Centers for command functions, weddings, festivities etc. Marinas for boat rentals, wet slip berthing, and off season storage facilities. Auto vehicle storage for working on your vehicle long term or keeping your vehicle in storage while on deployment or other reasons. Catering and Conference Centers for command functions, weddings, festivities etc. Marinas for boat rentals, wet slip berthing, and off season storage facilities. Auto vehicle storage for working on your vehicle long term or keeping your vehicle in storage while on deployment or other reasons. All of these areas present their own unique differences; however, they all require contracts for Positive Internal Controls. All of these areas present their own unique differences; however, they all require contracts for Positive Internal Controls.

Contracts Internal Controls Internal control is a system of policies and procedures that operate within accounting. These internal controls protect MWR from fraud, waste, and abuse Ensures that the financial records are timely and accurate, Above all………………. Ensures that all legal and regulatory requirements are being met.

Contracts Internal Controls

Contracts are a primary tool used to protect MWR, NGIS, CMWR, its employees, and authorized patrons. Contracts

Basic Reasoning for contracts:  The parties must be competent.  The parties must be authorized patrons so as to be binding on both parties.  The contract must provide for an obligation-an exchange of something that is of value. The action must be offered and accepted.  The contract action(s) must be lawful.  All terms must be included in the contract, including the date of effect. Contracts Bind the Parties  MWR requires their agreements to be in writing to benefit from enforcement and collection of outstanding receivables if necessary.

Contracts Know Who You Are Dealing With  Contracts are binding between MWR and individuals.  It is important that management and/or employees of MWR facilities sign contracts to be binding (part of the competency test).  Parties doing business for another must identify the person signing the contract.

Contracts “Catering” IAW CNICINST and DOD R, volume 13:  Catering contract controls shall exist to ensure that all transactions, including private party/event contracts, have been properly processed.  It is important to ensure that any new process (i.e., manual or automated) includes a system of internal controls that properly accounts for all contracts.  Only a limited number of catering software packages are approved for use in MWR activities; CATEREASE is widely used throughout MWR. CNIC HQ (N946) should be contacted for further information and directions.

Catering Contracts

All scheduled private/catered parties and group functions require the proper completion and execution of a pre-numbered private party contract. The contract will be signed and dated by the MWR food and beverage activity manager or designated representative and the party sponsor, who must be an authorized patron of the MWR food and beverage activity. The party or function should not be made definite without a signature; the signature can be physical, electronic, or if the patron specifies that he/she is agreeing to all terms of the contract. Management will advise the patron signing the contract that he or she will be held responsible for meeting the total costs agreed upon and will ensure that the status of personnel attending is per the signed contract.

Catering Contracts

 Local policies should be established regarding event cancellation and refund of deposits. When a cancellation is made and accepted by the MWR food and beverage activity, and no expenses are incurred by the activity as a result of the cancellation, management may exempt the sponsor from all charges. Otherwise, all expenses incurred, as a result of preparation for the function will be charged to the sponsor.  The MWR activity must account for contracts prior to the function to ensure adequate safeguard and separation of the administrative and financial functions.  Catering manager should not be the sole person entering contracts, administrating contracts (making changes), accepting cash, making deposits etc.

Catering Contracts  Once management activates a contract (i.e., once a contract is assigned to a patron), one copy will be immediately forwarded to the business office along with a copy of the DAR, and or payment receipt.  If any changes are made to the contract that modifies the total dollar value, authorization must be received from the patron via signed updated contract or an from the patron specifying and authorizing the modifications. This updated contract along with any and all supporting documentation will be forwarded to the accounting office for tracking.

Catering Contracts  After the function has taken place, management will forward a second copy of the contract with a Daily Activity Report (DAR) or for SAP/AIMS locations, the automated Daily Activity Report may be used. This policy pertains to SAP/AIMS locations that are equipped with a Point of Sale (POS) System that automatically interfaces the daily accounting information into the SAP/AIMS Financial System to the MWR support services business office. MWR Support Services Business Office will monitor numerically sequenced contracts. Any discrepancy will be brought to the attention of the MWR Food and Beverage Manager for resolution. Further investigation may be required by the MWR Base Program Director.

Marina Contracts MWR Marina programs are available at certain locations and provide services such as slips, moorings, and storage facilities. Marina patrons are required to meet applicable local, State, National/Federal requirements, safety standards, licensing, and/or certification, insurance and registration.

Marina Contracts

Specific requirements for Marina Boat Mooring and Storage Contracts include but are not limited to the following:  Marine insurance including hull and machinery and $100K/$300K minimum liability coverage throughout this lease  Boat and trailer registration as required by the state of mooring or storage  Coast Guard certification of worthiness as required by state of mooring

Marina Contracts

Contracts Vehicle Storage As with marina contracts, auto or vehicle storage contracts require the same level of control and tracking to prevent the possibility of waste, fraud and abuse.

Contracts Vehicle Storage Storage contracts are to be pre-serialized by someone other than the Auto Hobby Shop or designated storage management, employees; preferably accounting or a contract generated by the marketing department in numerical sequence if available.  Management monitors the daily transaction logs, questioning all reversals, credits, voids, and refunds.  At the end of each month management should run the Household Trial Balance report for their specific location. This will show who is outstanding (AR) as well as show possible conflicts in the billing process  Someone other than the cashier walks the storage facility on a weekly basis validating the occupancy against the locally maintained or in-house daily report. This will ensure that all patrons have paid in advance of their stay and collect from anyone that may have come in with a friend or stored vehicles/trailers not actually listed. This will also make it very difficult for someone to collect cash and dispose of the contract. (pocketing the $)

Contracts Vehicle Storage

Contracts