ANNEX B NPF ACCOUNTING PROCEDURES FOR FAMILY RESOURCE CENTRES (FRC)


1.   The Military Family Support Program is a public program oriented
     towards the military family and is part of the Personnel Support Program
     (PSP) of the CF. However, this program, and the FRCs under it, are not
     NPF activities and therefore must:


     a.   incorporate as a not-for-profit organisation;


     b.   register with Revenue Canada (RC) for an employer number and
          with the applicable provincial agencies for Workers'
          Compensation and provincial Health Care deductions; and


     c.   register with RC for a non-government GST number.


2.   Should the FRC Board of Directors want the NPFAO to provide
     accounting services, a request is to be submitted to the BComd. If
     approved, a contract must be drawn up indicating the services to be
     performed and the accounting cost to be charged to the FRC. Accounting
     services are taxable for GST purposes and may be taxable under some
     Provincial Sales Tax legislation.


3.   If the NPFAO will be providing only custodial or banking services
     (ie. deposit facility and cheque writing), an External Trust account
     shall be set up.


4.   Prior to the NPFAO providing payroll services, the FRC must be
     registered under its own employer number. A separate company in ABACIS
     (XB or XC) shall be established for the FRC.


5.   Prior to the NPFAO providing full accounting services, the FRC
     must fulfil all of the requirements in paragraph 1 above. A separate
     company (XB or XC) shall be established for the FRC.


6.   As FRCs are not NPF activities, any financial statements or
     transaction listings are only to be provided to the FRC organization.


7.   Employees in activities which fall under the direction and control
     of the FRC are not NPF employees. When previous NPF activities are
     transferred to the control of the FRC, any NPF employees must terminate
     their NPF status and begin employment as an FRC employee.


8.   As PSP activities, any Base Fund subsidies or grants to FRCs are
     not alienations of NPF. However, it is recommended that funds be
     provided as expenditures (appropriate to the purpose of the
     subsidy/grant) are made.