bupersinst 1710.16 - Fitness, Sports and Deployed Forces Support

BUPERSINST 1710.16
be opened with either banks or credit unions; very large deposits
may be kept with the BUPERS 65 Centralized Banking System. Large
ships with an average balance exceeding $50,000 in their
recreation fund will participate in the BUPERS 65 Centralized
Banking System.
11. Federal Deposit Insurance Corporation/Federal Savings and
Loan Insurance Corporation Coverage. Government regulations
stipulate that all nonappropriated fund investments and cash
deposits must be insured by the Federal Savings and Loan
Insurance Corporation (FSLIC), by the Federal Deposit Insurance
Corporation (FDIC), or backed by the U.S. Government. Funds are
insured by FSLIC and FDIC only up to $100,000.00 in any one
institution for any one Recreation Fund. Per appendix (b) of
reference (b), ships are required to follow the rules relative to
the protection of bank deposits, avoiding funds exceeding
$100,000.00 in any one financial institution. Activities shall
submit semi-annual reports to the Comptroller of the Navy
concerning uninsured deposits or deposits which exceed the limit
specified in Appendix B of reference (b).
12. Successor in Interest. Depositories must be notified in
writing that the Bureau of Naval Personnel is designated as the
successor in interest to a ship’s recreation fund and a copy of
the letter shall be forwarded to BUPERS (Pers-65). A letter,
containing the following information will suffice:
"This letter is to inform the First National Bank of
Ringsted, Iowa, that the Bureau of Naval Personnel (Pers-652),
Washington D.C. 20370-6500, is the Successor in Interest to the
Recreation Fund of USS Ringsted (CG-98)."
13. Petty Cash Fund. Purchases using ship’s recreation funds
are normally made with purchase orders and paid by check. Petty
cash funds provide an expedient method of making small cash
purchases or purchases in situations where the use of a purchase
order and check are impractical. Recreation funds are not
required to establish petty cash accounts. Chapters five and
eight of reference (b) provide detailed procedures in the
administration and use of petty cash.
14. Change Fund. Change funds may be maintained and
administered per chapters five and eight of reference (b).
Change funds will be maintained in minimum amounts, consistent
with the needs of the recreation fund. The purpose of the fund
is for making change and it should not be used to make refunds or
cash checks.
15. Cash Receipts. Cash receipts require the fullest possible
measure of control. Cash receipts of an entity relate to the
receipt of currency, coins, checks, bank drafts and money orders.
Enclosure (2)