1. Mid-Winter Conference Post Operations (Post Commanders)
21 January 2016

2. INTRODUCTION TO THE POST OPERATIONS MANUAL
The Post Operations Manual is divided into three sections. These sections should be used in conjunction with each other, since they are all part of good management.
The first section concerns itself with the planning of the physical structure of the facilities needed to accommodate an active, growing American Legion Post.
The second section concerns itself with the social part of an American Legion Post -the lounge. There are sections on government, duties of a manager, labor costs, beverage control, food service and other points of lounge operation.
The third section serves as a guide to the utilization of proven principles of financial accounting. This accounting serves the purpose of informing the members, officers, trustees, house committee and managers of the Post the results of the Post home operation and financial condition.
Many Posts have formed separate entities, such as Corporations, Building Associations, etc. Of course, it is necessary to maintain a separate set of books on each of these entities. A consolidated Balance Sheet should be prepared at the end of each Post’s fiscal year, including all entities controlled by the Post.
This Post Operations Manual is intended to be used as a guide to set up an accounting procedure for the smallest to the largest Post. In a small, newly organized Post, this initial duty might be assumed by the Post Adjutant.
In a larger Post operation the duty will normally be assumed by the Finance Officer working with the full time Manager.
Beyond that, however, it is hoped that this manual will be used by the House Committee, Board of Trustees and the elected officers o f the Post in the planning of their operations.
Recognizing the importance of lounge operations and efficient business management as important aspects of total Post activities has made it necessary to provide certain guides for the use of those members confronted with the challenging duties. This manual is presented to provide assistance and is not in itself an answer nor an end to all the problems that will confront those chosen to perform the tasks and duties of lounge management.

3. Agenda
The Facility
Social Quarters Operations
Budgeting
Accounting Procedures
Auditing Procedures

4. RUN IT LIKE IT’S YOUR OWN BUSINESS
RUN IT LIKE IT’S YOUR OWN BUSINESS!! Would I _______ if this were my business?

5. The Facility
If you have a facility or are thinking about acquiring one, you should consider the following:
What value does the facility bring to veterans?
Social Activities
Comradeship
What value does the facility bring to the community?
Meeting place for Boy Scouts, Blue Star Mothers, etc.?
Blood drives
Emergency Shelter

6. The Facility Does the facility act as a living memorial?
Obvious to community
Good repair
Is the facility an asset or liability?
Do you have a long term strategy for the facility?
Do you have a tactical plan for repairs and upkeep?
Do you have the resources to run the facility?
The facility should be funding Legion Programs and needs to be run as a business
Finance Officer and Canteen Manager should have business or accounting background
Utilize CPAs in the membership/community

7. Facility Standards
Members, family members, and community members should never be embarrassed to attend functions at the Facility
Abides by all laws pertaining to Private Clubs
Run like a business
Regular audits
Regular financial reports
On time payment of applicable taxes and fees
On time tax returns
Officer control of decisions (not outside parties)
Anyone handling money is bonded
Licenses are kept current
Wireless internet

8. Facility Standards Incorporation Property Tax Exemption
Every Post that owns property should be incorporated as a not for profit organization with the State
Property Tax Exemption

9. Social Quarters Operation
A Governance Structure is a must
Types of Governance structures:
House Committee
Board of Trustees
Post Officers and Trustees
The Manager can be an Officer, Chairperson of House Committee/Board of Trustees or hired employee. They are responsible for:
Ordering
Staffing
Accounting

10. Social Quarters Operation
Internal Control of Cash
Cash register/POS to track all sales and other cash
Drop Safe
Frequent bank deposits
Daily/Weekly reports
Account for all cash
Security System
Beverage Control
Sales should be 30-40% greater than cost of beverage purchases
Standard processes in place to control portions
Purchasing controlled and audited

11. Social Quarters Operation
Inventory Control
Usage is tracked
Process in place to control over-ordering
Excess inventory is locked up and tracked
Order frequently to reduce costs
Monthly physical counts
Labor Cost Control
Salaries/Wages should be no more than 20-35% of sales
Track sales per day to ensure it’s worth being open on certain days/hours
Process in place to allow staff to close early

12. Social Quarters Operation
Food/ Food Cost Control
Food costs should be no more than 35-45% of food sales
Carefully monitor cost of food to ensure break even or profit
Track sales per day to ensure it’s a benefit to serve food
Carefully monitor inventory to ensure no spoilage
Process in place to control portions
Abide by all Health Department regulations
Ensure staff is trained in all Health Department regulations for preparation

13. Social Quarters Operation
House Rules
The Social Quarters are not a bar and every effort must be made to ensure that the members are aware of the distinction
Post Officers should agree on the rules and those rules should be posted for everyone to see
Examples: No profanity, staff may refuse to serve, etc.
Rules should be consistently and fairly enforced; member may appeal at meeting
Recommended disciplinary action should be referred to the Executive Committee to ensure consistent actions

14. Budgeting
Regardless of whether you have a facility or not, an annual budget is extremely important:
Ensures you don’t spend what you don’t have
Allows you to keep stricter control on expenditures
Allows you to plan for long term projects
Enables financial transparency for members
Budget committee is appointed by the Post Commander/Executive Committee and should consist of:
Chairperson who is familiar with accounting system
2-3 members who have knowledge of accounting systems and processes/existing and upcoming programs
Finance Officer to act as an advisor

15. Budgeting Budget Committee Responsibilities
Review all expenditures from the previous year
Review all income from the previous year
Classify budget items separately; i.e. Social Quarter Operations, Boys State, Charities, etc.
Present Budget report to membership

16. Accounting Procedures
The Post Commander/Executive Board is responsible for ensuring that Accounting processes and audits are in place and are utilizing best practices
Reach out to a qualified CPA to review accounting procedures and make suggestions for improvement
Consider using accounting software such as Quickbooks
If at all possible, Finance Officer should be a legionnaire with a CPA
If not possible, ensure Finance Officer gets adequate training/hire a part-time CPA
Keep accounts for social quarters separate from other accounts/activities

17. Auditing Procedures A financial audit serves two purposes:
Identifies issues and allows Post to correct
Sends a signal that all financial transactions are reviewed to reduce likelihood of problems
Audit committee is appointed by the Post Commander/Executive Committee and should consist of:
Chairperson who is familiar with accounting system
2-3 members who have knowledge of accounting systems and processes
Finance Officer to act as an advisor

18. Auditing Procedures Audit Committee Responsibilities
Engage an outside CPA to audit financials, financial processes, and insurance
Review and correct findings of outside CPA
Review and implement procedure suggestions of outside CPA
Present Audit report to membership
Yearly audit in most cases

19. Conclusion
Many more details can be found in the Post Operations manual including examples
Monitoring and controlling the operations of the Post is crucial to the success of the Post’s Programs and Public Relations

20. Questions?
Post Operations Manual available on ohiolegion.com/forms