Annual & Quarterly Performance Reporting Requirements and Annual Budget & Accounting Policy

Operation Military Embrace, Inc.
EIN/TIN 56-2656711

Annual & Quarterly Performance Reporting Requirements

The President/Executive Director shall prepare Quarterly Performance Reports, a Semi- Annual Performance Report and an Annual Performance Report for review and acceptance by the Board of Directors defining the performance of the corporation against its Annual Budget, the Mission Statement and its Purposes. These Performance Reports shall be posted on the corporation’s website for viewing by the general public and other interested parties.

Annual Budget

The Annual Operating Budget shall be presented to and approved by vote of the Board of Directors and shall be used to determine financial performance metrics and milestones for the corporation.

Accounting Policy Accounting Policy:

The books of the corporation shall be kept on an accrual basis and in adherence to GAAP/GAAS and FAS Rules for non-profits.

Expenditures made in direct support of individual corporate Purposes shall be recorded as direct expenses.

Manpower and G&A-type expenditures made to indirectly support individual/specific corporate Purposes shall be allocated to the appropriate category of Purposes based on a reasonable determination made by the President/Executive Director when such expenditures become material. Until such time as a state of materiality is reached in the judgment of the President/Executive Director, indirect support expenditures shall be reflected in corporate G&A.

Revenue received and expenses incurred in the year preceding a Special Event (such as an early spring charity golf tournament fundraiser), shall be deferred into the year that the Special Event is to be held.

In-Kind Revenue/Valuation – Gift cards shall be recorded as revenue in the face amount of the gift card and shall be expensed to the specific category of Purposes that the gift card was intended to support. Other items such as new clothes, personal care items and such intended for the BAMC free P-X shall be recorded as revenue at a value that represents the known retail value for the items and such items shall be expensed to the Brooke Army Medical Center Support Purpose with distribution of the items taking place at the free P-X operated by “OME” in the Okubo Day room of Brooke Army Medical Center. “OME” shall not retain any inventory as all in-kind goods are to be distributed in the year of receipt.

The books shall be retained at 21307 Cypress-Rose Hill, Tomball, Texas 77377- 5928 under the care of the Secretary and shall be open for inspection by the Public subject to an interested party making prior arrangements to inspect/audit the books.

The corporation shall have its offices at 21307 Cypress-Rose Hill, Tomball, Texas.

The corporation shall reimburse President/Executive Director Jerry P. Reed for all personal expenditures made in support of OME, such as Internet access/membership fees, long-distance calls and FAX transmissions, the dedicated corporate cell phone, mileage for trips and travel in support of OME and its Purposes including mileage to and from formal presentations made to churches, business groups, etc., to raise the public’s awareness about OME and its work and other personal and/or travel expenses as incurred.

Corporate Mileage Reimbursement Rate: $.585/mile. The mileage reimbursement rate is set at a level intended to help recoup actual costs to operate, maintain and insure a vehicle especially in light of the tremendous volatility in the energy markets with crude oil fluctuating between $65 - $120/BBL.

Capitalization Policy

All capital expenditures shall be approved by majority vote of the Board of Directors.

Fixed Assets (excluding computers and peripherals) costing $5,000.00 or more shall be capitalized. All expenditures < $5,000 shall be expensed in the current period.

Computers and Peripherals costing $1,000.00 or more shall be capitalized.