CHAPTER TWELVEENROLLMENT FEES, INSURANCE PROGRAMS, AND FINANCES1210 - Authority 1210.1 Annual enrollment fees for adult leaders and cadets are established by the National Board of Directors. These fees include administration/insurance fees and regional director allowance assessment in the case of cadets, and insurance fees only for adult leaders. Only adult enrollments may be made for more than one year intervals, if the individual so desires, Insufficient bank funds nullify enrollments and individuals are not insured. 1210.2 No officer, midshipman, instructor or cadet may participate in any NSCC activity until his/her enrollment fees have been paid and forwarded to National Headquarters, and their ID card received by the unit. 1211 - Transmittal of Fees 1211.1 Enrollments/re-enrollments will be recorded on the Adult Leader Enrollment Registration Form (NSCADM 006) or Cadet Enrollment Registration Form (NSCADM 007) as appropriate, and forwarded with enrollment fees to National Headquarters. Initial enrollments will be effective on the date the unit received the ID card back from National Headquarters. The responsibility for prompt submission rests with the commanding officer. 1212 - Refund/Transfer of Enrollment Fees 1212.1 Enrollment fees paid by cadets who subsequently drop from the program will not be refunded or transferred to another cadet. Parents/guardians should be informed of the policy during the initial interview with the commanding officer. Funds credited to one cadet by NHQ can never be transferred to another cadet or refunded. 1212.2 Transfer of NLCC cadets with unexpired ID cards, to the NSCC, will be given credit for remaining enrollment time. To complete transfer, appropriate NSCC fees for one year are forwarded to National Headquarters, along with the complete Cadet Enrollment Registration Form (NSCADM 007). A new ID card will be issued for one year plus the time remaining on their NLCC ID card. 1213 - Continuous Enrollment 1213.1 Cadet enrollment will be continuous. Late payment of enrollment fee will not effect enrollment dates; fees when paid, will go back to expiration date of previous enrollment. Cadets granted leave of absence, who have allowed their enrollment to expire, will have their reenrollment date set to the date of the cadet's leave of absence is terminated. 1220 - General 1220.1 NSCC insurance programs were established to provide accident coverage for cadets and adult leaders, and liability coverage for adult leaders and sponsoring organizations. 1220.2 The National Board of Directors approves the insurance underwriter, the amount and type of insurance. 1221 - Accident Insurance 1221.1 NSCC participates in a group accident and health policy underwritten by Nationwide Insurance Company. The policy is a "secondary" accident insurance policy. That is, the individuals' own policy will pay first before the NSCC Nationwide policy becomes operable. Individuals who do not have an insurance policy, will be covered under the Nationwide policy as the primary policy. The Nationwide policy covers accidental bodily (defined as a sudden, unexpected occurrence from an external force resulting in bodily harm or physical trauma) sustained while participating in authorized NSCC/NLCC activities, and while traveling to and from such activities. Coverage for sickness, requiring medical/surgical treatment, or pre-existing medical conditions are not provided by the policy. Unit commanding officers will capture the cadet's family's health insurance information and enter it on the member's service record documents annually and on the Request for Training Authority (Cadet) (NSCTNG 001) or Request for Training Authority (Officer) (NSCTNG 002) form when member applies for training authorization. 1221.2 Enrollment in the accident program is mandatory for all NSCC personnel except for those serving on active duty in a branch of the armed forces. 1221.3 Commanding Officers/Commanding Officers of Training Contingents will report all cases of accident/illness to National Headquarters as soon as circumstances permit. Telephone reports (collect) are desired for cases involving serious accidents/illnesses. A copy of the NSCC Accident Report Form (NSCADM 022) will be placed in the members service record and mailed to NHQ. 1221.4 Claims for benefits will be submitted to Nationwide Insurance National Headquarters for processing using the Nationwide Insurance Accident Report Form. Proof of loss (original, itemized medical bills) must be forwarded to Nationwide Insurance National Headquarters as soon as possible. Claims cannot be processed without this completed information. All claims must be submitted within one year from date of accident/illness. 1221.5 Parents/guardians will be briefed on the accident policy by the commanding officer, and will sign the back of the back of the NSCC/NLCC Cadet Application and Agreement Form (NSCADM 001) that they have been briefed on the accident insurance coverage. Parents will be advised of the deductible fee. 1221.6 Unit Commanding Officers should insure that the training and activities that their unit participates in are within the coverage of the Corps insurance policy and are authorized in the Advancement and Training Manual. Particular scrutiny should be given to unscheduled events, or those that are reactionary to an extreme, that may put unit members in danger and violate the trust parents placed upon the Corps for the health and safety of the cadets. 1222 - Liability Insurance 1222.1 NSCC has a comprehensive general liability insurance policy, very broad in scope, covering the NSCC, its members and volunteers, the Navy League, its sponsoring Councils and members when involved with NSCC matters, underwritten by the Cincinnati Insurance Company. Members and volunteers, for coverage to apply, must incur liability arising out of activities performed on behalf of the Naval Sea Cadet Corps. The policy covers bodily injury and property damage with limits of liability of $1,000,000 for each occurrence and $2,000,000 aggregate with an "umbrella" policy in the amount of $5,000,000. Basic coverage includes bodily injury, property damage and personal injury caused to a third party because of the insured's negligence. 1222.2 NSCC "unit owned" watercraft, buses, trucks, and automobiles are not covered by NHQ insurance. 1222.3 Protection is provided sponsoring organizations and adult leaders while acting in the scope of their duties in NSCC. Meetings and both NHQ and unit training sites are automatically covered under the national policy. Other activities/organizations may be named "additional insured" such request should be submitted to National Headquarters. 1223 - NLCC Coverage 1223.1 The NLCC is considered to be part of NSCC and fully participating in the NSCC insurance programs. 1224 - NSCC Vehicle / Boat Coverage 1224.1 Vehicles/boats will be titled/registered in the name of the unit as a separate entity. Titling/registering in the name of an individual, or in the name of a regional individual is not permitted. 1224.2 General comprehensive liability policy will be obtained, with coverage for personal injury and property damage liability, in the amount of $1,000.000 or more. The policy is to be issued to the title/registered owner (unit) with the "U.S. Naval Sea cadet Corps and its affiliates" names as an additional insured. A copy of the policy will be forwarded to Sea Cadet Headquarters yearly (no later than 15 August) along with the NLCC/NSCC Vehicle/Boat Survey Form. Section 3: Identification Cards 1230 - General 1230.1 NSCC identification cards will be issued only by National Headquarters. Unit identification cards/letters, temporary or otherwise, are not authorized. 1230.2 There are two types of identification cards: cadet and officer, midshipman and instructor. Upon receipt of enrollment fees, properly completed and legible enrollment forms (and supporting documentation in the case of adult leaders) the appropriate identification card will be prepared and sent to the unit commanding officer for delivery. Section 4: Identification Numbers 1240 - General 1240.1 Each cadet, officer, midshipman and instructor will be assigned an identification number (normally their Social Security Administration Number) upon enrollment. This number will remain the same throughout the individual's affiliation with NSCC. As part of the identification process, there is a letter identifier (statue or type) assigned to each member, which will remain constant unless there is a status change (midshipman to officer, etc.), at which time a new status letter will be assigned. 1240.2 The letter indicates status (cadet, officer, etc.). Letters designating the various enrollment categories (status) are: A - NSCC officer, male and female (not on active duty) 1250 - Council (Sponsoring Organization) Responsibility 1250.1 The sponsoring Navy League Council (or other sponsoring organization) should strive to ensure that adequate funds are available to the unit commanding officer for proper operation of the unit. This is to be a cooperative effort through donations, fundraising, grants, fees, etc. Units are not expected to be fully funded by there sponsoring organization, as the unit is expected to raise money on their own. 1251 - Control of Revenues and Expenditures 1251.1 Control of revenues and expenditures is vested jointly in the unit commanding officer. 1251.2 Means employed in raising funds for operation of the unit must not reflect discredit upon, or be in conflict with, the policies of the Navy League of the United States or NSCC. 1251.3 Use of the NSCC Insignia/Logo by units for fund raising purposes may be authorized providing the items are not listed in the Agreement between PROMO, Inc. and the NSCC and are not, therefore, competing with PROMO, Inc for sales. a. Authorization to use the NSCC Insignia/Logo for fund raising purposes must be granted by NHQ. Units desiring to do so must:
b. NHQ tax designator is not an umbrella number, and is for NHQ use only. 1251.4 Dues assessed to cadets over and above the enrollment fees levied by National Headquarters must be approved by the units' Regional Director and NHQ Representative. 1251.5 Expenditures expected in the operation of the unit will be defined and included in the unit's budget as required by Paragraphs 1271.1 and 1271.2. 1260 - Accounting Requirements 1260.1 Unit bank accounts will be established to facilitate audit and accounting of unit funds. All accounts will have two signatories, the commanding officer and another designee. The cosigner may be the committee chairman of the sponsoring organization. It may not be a spouse or relative of the commanding officer. In addition to signers from the unit/sponsoring organization, the Regional Director will also have access to the account and have signature authority. 1260.2 Unit accounts will be established in the name of the unit as part "of the U.S. Naval Sea Cadet Corps". Under no circumstances will a NSCC account be opened in the name of an individual. 1261 - Unit Finances 1261.1 The commanding officer is responsible for all unit finances and shall ensure that an annual financial audit/review is conducted (no exceptions) in cooperation with the sponsoring organization. The report will be made available for the annual unit inspection with a copy submitted to NHQ. An annual financial report will be made regardless of a unit being inspected or not. The actual administration of the unit finances can be delegated at the discretion of the commanding officer who must ensure absolute fiscal integrity of all funds. There will be no co-mingling of unit and personal/business funds and all expenditures shall be fully justified for official NSCC unit use only. 1261.2 Unit financial accounting shall be carefully maintained using a NSCC/NLCC Annual Unit Budget/Audit Report Form (NSCADM 018), and records must be kept current and made available at any time for review by the sponsoring organization, Regional Director, or NHQ Representative. 1261.3 Receipts must be kept for all transactions and an accounting of all income and expenses shall be documented. All financial records are the property of the unit. 1261.4 When a change of command occurs, an audit of the unit's finances must be part of the turnover process and all files will be turned over to the incoming commanding officer. 1261.5 Unit financial files will be kept for a period of five years after which they can be destroyed. 1261.6 Uniform deposits, if collected, will be held in a special account and refunded to cadets, in full or in part, upon return of issued uniform items. 1262 - Summer Training Accounts 1262.1 The following policies will apply to the financial accounting for all summer training: a. Upon approval of a summer training evolution, summer training accounts will be opened in the name of the U. S. Naval Sea Cadet Corps or NSCC organizational title and not an individual NSCC officer, with the exception of cases discussed in the NSCC/NLCC Escort Officer Handbook or as approved by NHQ. b. The Commanding Officer of the Training Contingent (COTC) will be responsible for all finances including submission of the final Two Week Training Audit report (NSCTNG 010) to NHQ. Prior to closing out an account or before the final report is submitted to NHQ, an audit/review of the account shall be made by two persons handling the account with both signing the audit. The NSCC Regional Director in the area or the NHQ Representative for the geographic area where the training is held may also manage the account. Actual administration of the account can be delegated at the discretion of the COTC. c. The Regional Director or NHQ Representative will be named as a signatory on the account, providing NHQ access to the account at all times. d. All summer training accounts will be dual signature. Under no circumstances will a spouse or relative be one of the two signatories on the account unless specifically approved by NHQ. The individuals having access to the account are: The Commanding Officer of the Training Contingent, his designated co-signatories and will include the NHQ Representative, and/or Regional Director. e. Funds collected from cadets are to be used exclusively for training at that site and will not be used for individual unit or regional expenses. Prior approval from the Executive Director is necessary for any deviation from this requirement. f. Receipts must be included for all expenses, Actual receipts are necessary for the NSCC Headquarters annual audit. g. As long as the training account is active, a copy of the monthly bank statement must be retained by the COTC. h. Reports will be submitted to NHQ within 30 days of completion of training. If it appears that accounts will not be reconciled within 30 days, NHQ must be notified of the delay and given the reason. 1270 - Fiscal Year 1270.1 The NSCC fiscal year coincides with the training year, commencing annually on 1 January and ending on 31 December. 1271 - Budget 1271.1 A proposed budget will be prepared by the commanding officer and submitted prior to the beginning of the fiscal year to the NSCC Committee Chairman and the sponsoring organization President for approval. The budget, as approved, will be forwarded to National Headquarters along with the annual inspection report. The NSCC/NLCC Annual Unit Budget and Audit Report Form (NSCADM 018) will be used. Local, minor modifications to this form are authorized. 1271.2 Councils, or other organizations, wishing to form a unit will prepare a tentative budget for that portion of the fiscal year remaining and submit it to National Headquarters along with their request to form a unit. 1280 - General 1280.1 Unit accounts will be audited annually upon completion of the fiscal year by the NSCC Committee Chairman. The results of the audit will be verified by either the sponsoring organization, NSCC Regional Director, or by the NHQ Representative along with the Annual Inspection/Evaluation Report. The NSCC/NLCC Annual Unit Budget and Audit Report Form (NSCADM 018) will be used. The Inspection/Evaluation Report will be considered incomplete without the NSCC/NLCC Annual Unit Budget and Audit Report Form (NSCADM 018). If a unit is not officially inspected, the unit must still be audited and the audit submitted to NHQ annually. 1290 - General 1290.1 NSCC officers, midshipmen, cadets and instructors do not receive pay and/or allowances. NSCC Regional Directors receive allowances in accordance with provisions of Chapter FOUR, Section 0432 of these Regulations. 1290.2 NSCC members and families are entitled to claim certain expenses in relation to participation in the Sea Cadet Corps on individual income taxes. Consultation with a tax advisor/preparer for specifics is advisable. 12100 - General 12100.1 NSCC at the national level has been designated a 501(c)(3) organization under the provision of the IRS Code. As such, contributions to the NSCC national program are tax deductible as charitable contributions. The tax exempt status granted NSCC at the national level does not extend to NSCC/NLCC units or to regional staffs. Units desiring to apply for tax exempt status must submit a request directly to the Internal Revenue Service (IRS). Information and application packets are available and from the Internal Revenue Exempt Organizations Offices, Information and telephone numbers for those offices will be published by an NSCC Information Letter. Tax-exempt status may make units eligible for financial support through organizations such as United Way. 12100.2 Monies expended by individuals in connection with NSCC/NLCC activities (cost of uniforms, travel expenses, etc.) may be listed as deductions in personal income tax returns. |