Appendix G USPS POLICIES

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United States Power Squadrons Operations ManualPage G-1Appendix GUSPS vestment PolicyTeaching Boating Safety CoursesOn-the-water policyBoating Education and Operator TrainingNon-USPS Boating Course ExaminationsReimbursement of Travel and ExpensesSquadron AuxiliariesElectronic onLobbyingWhistleblowerConflict of InterestGrants and External Funding ProceduresVSC Vessel and Owner Data ProtectionAdministration of MOUsA Chart describing the Liaison and Lobbying functions appears at the end of this appendix.G.1 - INVESTMENT POLICYThe funds of USPS are divided into two general categories consisting of “Operating” and“USPS Investment” funds. The size of the operating fund shall be set annually by the Treasurer soas to sustain the day-to-day operations of USPS.The funds should be readily available to headquarters in the form of checking accounts and shortterm CDs.The finance committee shall determine suitable investments for reserve funds so as to obtain arate of return consistent with security of the funds.These recommendations shall be given to the Treasurer.The reserve funds and their management arethe direct concern of the finance committee. Thesefunds are further divided into three categoriesbased on the degree of investment safety:1) Insured deposits - low risk insured investments such as savings accounts, certificates ofdeposit and bank money market funds;2) U. S. Treasury Notes and U. S. Treasurybonds which are guaranteed by the U. S. Government;The finance committee should be aware of thecurrent trends in interest rates in order to recommend a maximum yield for each type of invest-ment. Trends and predicted trends should becarefully reviewed to determine the best maturityperiods of the investments.3) Stock or equity investments - these highrisk investments are best handled by full time managers who are responsive to the day-to-day fluctuations in the securities markets. Currently, theseinvestments are in the form of mutual funds whichhave full time managers. Another approvedmethod of participating in the equity markets isthrough a managed portfolio. Selected fundsshould be switchable from one investment type toanother without significant fees and by telephonenotification. Normally, the Finance CommitteeChairperson would advise the headquarters manager or deputy manager to make the switch, but incase of an emergency, the assistant chair of thefinance committee or the Treasurer may adviseheadquarters to make the switch.Allocation of assets should have the FinanceCommittee approval. The allocation of investmentsmay be changed from time to time.A minimum standard of asset allocation shouldbe:1) Insured deposits and fixed income at least20%; and2) Equity investments of not more than 80%;2020

Page G-2United States Power Squadrons Operations ManualG.2 - USPS STATEMENT OF POLICY ON TEACHING BOATING SAFETY COURSESUnited States Power Squadrons’ responsibilities include:1) Scheduling and administering boatingsafety courses through USPS administrative structure;2) Continuing to conduct and administer theboating safety courses in accordance withNASBLA guidelines and course requirements;3) Providing the state a listing of America’sBoating Course graduates (with the approval of thegraduates) utilizing state provided forms withintwo weeks of course completion;4) Utilizing state pamphlet(s) covering stateboating laws in the conduct of America’s BoatingCourse,5) Requesting participation of state boatinglaw agency personnel in the conduct of the classescovering state boating regulations and laws;6) Providing the state information as to thedate, time and location of boating safety courses,and the name and telephone number of a contactperson;7) Providing each student successfully completing America’s Boating Course with a USPSCertificate of Completion;8) Refraining from having USPS memberscollect or handling any state monies other thanlocal taxes;9) Refraining from associating any state feeother than local taxes in any manner with the feescharged for textbooks, materials and other coursesupplies and those charged to defray any custodialor classroom usage fees;10) Providing a principal USPS point of contact to work directly with the state boating lawadministrator, or designated representative, in theexecution of the program.The State’s responsibilities:1) Recognize successful completion of America’s Boating Course as meeting state boating education requirements;2) Provide up to 10 examination questions onstate specific laws and regulations;3) Provide state pamphlets and other materials for each student attending America’s BoatingCourse;4) Provide state forms for use in reportingAmerica’s Boating Course graduates to the state;5) Issue a state boating safety certificate toeach person who successfully completes America’sBoating Course and requests state certification;6) Provide a listing of state boating lawagency personnel available to make presentationsat boating safety courses;7) Provide initial orientation workshops to allUSPS instructors covering state and local boatinglaws and regulations;8) Provide for USPS instructors periodicupdates concerning changes in state boating lawsand regulations;9) Maintain a database of state certified students, including those reported by USPS as graduating from America’s Boating Course;10) Provide a duplicate state boating safetycourse completion certificate for all students listedin the state database in the event of a lost certificate;11) If a fee is required by the state, the stateshall provide a state approved form that a graduatecan utilize in requesting state certification.2020

United States Power Squadrons Operations ManualPage G-3G.3 - ON-THE-WATER POLICYThe new “watercraft” endorsement, by theinsurance carrier (Commercial General LiabilityPolicy) enables squadrons to have on-the-watertraining. A description of this coverage may befound at http://www.uspsboatinsurance.com.G.4 - USPS POSITION ON BOATING EDUCATION AND OPERATOR LICENSINGUSPS, the largest private boating organization,continues to believe that voluntary boating education is the best and most efficient method of promoting boating safety. The current USPS BoatingCourse (approved by NASBLA) or its equivalentshould be considered the minimum standard. USPSwill continue to vigorously promote, advertise andteach the Boating Course to the public and willcontinue to encourage all governmental organizations and agencies to accept this educational standard. USPS will continue to cooperate with allgovernmental and safety organizations to promoteboating education and safety.1) The members of United States PowerSquadrons believe the best way to achieve boatingsafety is through boater education;2) USPS members support state mandatoryboating education for young boaters and personalwatercraft operators;3) USPS members believe that any statelicensing of recreational boat operators should bebased upon strong educational requirements;4) USPS members believe that all boatingsafety courses should be NASBLA approved andinclude proctored examinations;5) USPS members will continue to provideeducational support in all states.G.5 - APPROVAL OF NON-USPS BOATING SAFETY COURSE EXAMINATIONS ASFULFILLING EDUCATIONAL REQUIREMENTS FOR USPS MEMBERSHIPApproved at the 2013 Annual Meeting; Bylaw 3.6was changed from:Section 3.6 Any person who is able and willing to contribute time, energy and skills to theobjectives of USPS or their squadron and haspassed an examination approved by the Board ofDirectors may be admitted to active membership inUSPS under such conditions as these Bylaws andthe Governing Board may prescribe.Section 3.6 Any person who is able and willing to contribute time, energy and skills to theobjectives of USPS or their squadron may beadmitted to active membership in USPS under suchconditions as the Bylaws and the Governing Boardmay prescribe.This approved bylaw change makes this policy(G.5) null and void and thus has been deleted fromthis appendix.G.6 - REIMBURSEMENT OF TRAVEL AND RELATED EXPENSES POLICYUPDATED EFFECTIVE 10/24/20Reimbursement CodePosition Qualifying for ReimbursementDistrict Educational Officers or Voting RepresentativesADistrict Commanders or Voting RepresentativesChairperson of General and Standing CommitteesChairperson of Department Committees or Programs or Voting Representatives2020

Page G-4United States Power Squadrons Operations Manualcharged to the individual requesting reimbursement. The federal per diem rate in effect for eachmeeting location would be considered a maximumreimbursement if this rate is less than the actualcost. The Treasurer's Department has responsibilityfor this policy and welcomes members’ questions.Assistants to the NEO and SecretaryMerit Mark Area MonitorsNational ChaplainsNational ParliamentarianBBoard of DirectorsReimbursement Policy for all ReimbursementCodesCNational PhotographerNational Medical OfficerAides Assigned to National Executive Officer,National Educational Officer, National Administrative Officer, National Secretary and NationalTreasurerDGoverning Board Emeritus Members - Membersreceiving their 50th Merit Mark at a National Meeting.EC/C Representatives at District ConferencesC/C Representatives traveling to meetings outsideUSPS National MeetingsCommittee members at site visitationsFNational Flag LieutenantNational Meetings – It is the broad intent ofUSPS policy to limit total travel costs to the lesserof the actual costs incurred or 200. Total travelcosts include: Intercity travel, by air, automobile, bus, vesselor other mode Travel to and from home to airport Airport parking Travel to and from airport to meeting site On-site parking at meeting locationThe maximum reimbursement for travel relatedexpenses to attend the Annual and GoverningBoard meetings shall not exceed 200.00 per meeting. Two eligible members traveling togethermay both claim the travel allowance providedthe total requested reimbursement does notexceed the maximum of 200 each. Limitationsfor certain types of travel related expenses are setforth below, but the grand total of such expensescannot exceed 200.00.Inter-city Transportation - Annual and GoverningBoard meeting inter-city reimbursement for airfare, train fare, auto mileage, personal plane mileage/hangar space, and personal vessel mileage/slipfee is included in the 200 limitation stated above.Members of Committee on --------------------Refer to the Reimbursement Policy for all Reimbursement Codes and to subsequent pages that giveadditional policy for a specific position, as identified by the Reimbursement Letter Code.Unusual Travel Situations: There are occasionswhen it is cost-effective to combine trips or travelby auto when several persons are traveling. Theseshould be cleared with the National Assistant Treasurer beforehand.The Chief Commander has authority to makeexceptions to this policy.It is the intent of this USPS policy to not pay forany of the above items in excess of actual costsAir/Rail/Bus - Airfare will not be reimbursed ifairline travel miles were used. We can/do recognize that miles do equate to a dollar amount andthat amount can be considered a donation toUSPS/ABClub by checking the donation box.The donation can also be filed with your taxesand if needed, a written acknowledgment can beprovided. Lowest advance purchase (35 days priorto travel) of non-refundable fares. Travel agent andtrip insurance fees are not reimbursed. In the eventa trip must be cancelled for unforeseen circumstances reimbursement for some or all of the costmay be made at the discretion of the Chief Commander.2020

United States Power Squadrons Operations ManualAuto - 0.35 cents per mile plus tolls betweenmember's closest home and meeting site. The mileage reimbursement should not exceed the 200limitation stated above. If one or more memberswho are qualified for reimbursement share thesame auto, only the owner is eligible for reimbursement. Parking at the meeting site will bereimbursed at the self-parking rate and is limited tothe number of days the member is allowed lodgingreimbursement.Personal Plane/Vessel - 0.35 per mile betweenmember's closest home and meeting site plus up to 12 per day for hangar space/slip fee. The totalreimbursement should not exceed the 200 statedabove.Internet Access - Prior authorization required bydepartmental vice commander who will then notifythe appropriate budget officer.Local Transportation - Personal cars can be usedfrom home to airport where the cost is less thanother options. Reimbursement will be at 0.35 permile, plus tolls and long term parking fee for oneday plus the authorized reimbursement nights. Airport shuttle or hotel courtesy cars should be used ifavailable at the meeting site. Taxis can be used ifshuttles or courtesy cars are not available. Expensereimbursement will be at the lowest cost availableat each individual meeting.Lodging and Meals - No reimbursement can/willbe made to individuals who use hotel rewardpoints for their stay or stay at a non-authorizedalternate hotel for Annual Meeting or Governing Board. USPS/ABClub does not receivecredit for those nights and missing our contractual room nights results in a financial penalty toour club. An exception to the Alternate hotel isonly if we exceed the contractual room countsand the hotel has no more available rooms andNational Meetings Committee designates a secondary hotel for the AM/GB. No reimbursementwill be made for cost of meals en route or for personal charges, that is,. laundry, telephone and hotelservices. No reimbursement will be made for lodging en route to or from a meeting. If two memberswho are qualified for reimbursement share thesame room at either the Annual Meeting or theGoverning Board Meeting, both members are entitled to the current room allowance as long as thePage G-5sum of both allowances does not exceed the cost ofthe room. If the daily room cost is less than the sumof the two per diem allowances, then the reimbursement to each member is 50% of the dailyroom cost.Submission of Requests for ReimbursementRequests for reimbursement must be on formBUD-2A and forwarded to the appropriate budgetofficer for approval within 30 days of travel. TheBUD-2A must be accompanied by original receiptsor electronic copies of original receipts. Travelagency statements are not acceptable. Any unusualtravel arrangements or routing should be explainedand attached to the BUD-2A form.Tipping - Tipping is not reimbursable.Reimbursement Policy for Specific CodesCode – ATransportation - Travel to the Annual Meeting andGoverning Board Meeting will be reimbursed up tothe maximum of 200 per meeting.Lodging and Meals - The USPS Board of Directorssets the number of reimbursable days for a nationalmeeting. Two days are allowed for the AnnualMeeting and two days for the Governing BoardMeeting.A reimbursement of 50 per day will be allowedfor the hotel room when staying at the USPS designated hotel.Additional days may be pre-approved by an appropriate Vice Commander and reported to the Assistant National Treasurer.Code – BTransportation -Travel to the Annual Meeting andGoverning Board Meeting will be reimbursed up tothe maximum of 200 per meeting. Reimbursement may be made for USPS Board membersattending national meeting of outside organization's meetings or other functions authorized by theChief Commander.Lodging and Meals - Hotel room expense will bereimbursed at BOD meetings not held at the Governing Board or Annual Meeting. Meals will bereimbursed only for meetings held at locationsother than the national meetings.2020

Page G-6United States Power Squadrons Operations ManualCode – CCode – EFour days are approved at both the Annual andGoverning Board Meetings for those listed on pageG-4.Transportation - C/C Rep to a District Conference:The officer will be reimbursed for the meetingassigned. Meetings outside USPS could be for theofficer only at the discretion of the Chief Commander.Transportation - Travel to the Annual Meeting andGoverning Board Meeting will be reimbursed up tothe maximum of 200 per meeting.Lodging and Meals - A 50 per day room allowance for a maximum of four days for both theAnnual Meeting and Governing Board Meeting.Lodging and Meals - Hotel room will be reimbursed for the host hotel. Meal expense is not reimbursed for the Chief Commander's representativesat District conferences.Code – FCode - DGoverning Board Emeritus Members - Membersreceiving their 50th Merit Mark at a National meeting.Transportation - Up to 200.Lodging and Meals - Up to two nights hotelaccommodations at the USPS rate when staying atthe host hotel.Six days are approved at both the Annual and Governing Board Meetings for the Committee on Nominations and National Flag Lieutenant.Transportation - Travel to the Annual Meeting andGoverning Board Meeting will be reimbursed up tothe maximum of 200 per meeting.Lodging and Meals - A 50 per day room allowance for a maximum of six days for both theAnnual Meeting and Governing Board MeetingG.7 - USPS REVISED POLICY INVOLVING SQUADRON AUXILIARIESApproved by the BOD 12/09/87The increasing costs of insurance and the newtax bill have caused careful reexamination of manyUSPS activities. Insurance premiums are based, ingreat part, on two major considerations: the number of members covered and the activities expectedand covered. The new tax bill specifies whatdeductions taxpayers may take for contributions toand on behalf of 501(c)(3) organizations.Questions as to whether or not auxiliaries arecovered by USPS' blanket insurance policy, and ifwork for an auxiliary entitles one to take a taxdeduction have been raised. To properly assess therisks inherent in including auxiliary activities in theinsurance coverage, the number and location of theauxiliaries, the number of members of the auxiliaries and the activities usually undertaken by thoseauxiliaries must be known. The phrase “engaged inauthorized USPS activities” cannot be relied on inan attempt to provide insurance coverage for theauxiliaries without knowing what is involved, norcan there be a to review of each auxiliary activityone-by-one. In order to extend 501(c)(3) “taxdeduction” privileges to auxiliary members, a listof auxiliaries must be submitted to the InternalRevenue Service annually.Because of a lack of information, we startedover from ground zero in 2004.Except as modified by the following, the statements and procedures regarding auxiliaries setforth in section the Operations Manual are herebyreaffirmed.Any squadron which has or desires to have anauxiliary should submit the following to the squadron activities committee in order for the auxiliaryto be a recognized auxiliary:1) A copy of the application to the squadronexecutive committee to form or authorize an auxiliary, and the approval by the squadron executivecommittee of such application;2020

United States Power Squadrons Operations Manual2) An agreement by the squadron that its recognition and sponsorship of the auxiliary will berevoked if the auxiliary engages in any program oractivity or adopts any bylaw or policy which iscontrary to the policies and best interests of USPS;3) A copy of the bylaws or proposed bylawsof the auxiliary containing a statement that the auxiliary recognizes the authority of USPS to revokerecognition of the auxiliary if the auxiliary engagesin any program or activity in which a squadronmay not engage or the auxiliary engages in anyprogram or policy which is contrary to the policiesand best interests of USPS. Model Bylaws for Auxiliaries of Squadrons of United States PowerSquadrons is available from the Squadron Activities Committee;4) A list of the general activities engaged inby the auxiliary or participated in by auxiliarymembers as a group, which list shall be up-datedand filed with the squadron activities committeeannual

United States Power Squadrons Operations Manual Page G-1 2020 Appendix G USPS POLICIES [G.1] Investment Policy [G.2] Teaching Boating Safety Courses [G.3] On-the-water policy [G.4] Boating Education and Operator Training [G.5] Non-USPS Boating Course Examinations [G.6] Reimbursement of Travel and Expenses [G.7] Squadron Auxiliaries [G.8 .

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