BigHorn_2026CGProspectus_Appendices 11-20.pdf

Appendix 11: FS-2700-4h, Appendix B, Granger Thye Fee Offset Agreement

USDA Forest Service FS-2700-4h, Appendix B (V. 01/2014)

OMB 0596-0082

Authorization ID Contact ID Expiration

APPENDIX B

ANNUAL GRANGER THYE FEE OFFSET AGREEMENT

SPECIAL USE PERMIT

For Campground and Related Granger-Thye Concessions

AUTHORITY: Section 7 of the Granger-Thye Act, 16 U.S.C. 580d <Reference FSH 2709.11 chapter 50>

This Annual Granger-Thye (GT) Fee Offset Agreement is made by [ name ] (the Holder) and the U.S.

Department of Agriculture, Forest Service, [ name ] National Forest (the Forest Service), under section 7 of the G-T Act, 16 U.S.C. 580d, and clause IV.E of the special-use permit issued to the holder on [ date ] (the permit).

The total estimated annual permit fee is [ amount ]. [ ] percent of that permit fee may be offset by the cost incurred by the Holder for the Government maintenance, reconditioning, renovation, or improvement (MRRI) projects listed below in accordance with this agreement. Additionally, [ ] percent of that fee may be offset by the cost incurred by the Forest Service for the Government MRRI projects. Projects to be performed by the Holder shall be completed by the date specified and within the Holder’s fiscal year for the year the fee is due. The projects to be performed by the Forest Service or Forest Service contrator shall be completed by the date specified in the GT offset agreement. The Forest Service may modify the projects and dates as necessary, after consultation with the Holder.

The actual cost of each project that is satisfactorily completed as determined by the Forest Service may be offset against the holder’s permit fee. Due dates and cost estimates for completion of each project are enumerated below. Examples of allowable costs include salaries and wages, materials and supplies, and subcontracts that are direct costs of a G-T fee offset project and indirect costs based on an approved indirect cost rate. The total cost for Government MRRI projects to be performed under this agreement shall not exceed the annual fee.

Upon a determination by the Forest Service that a project has been satisfactorily completed by the holder, the holder shall submit documentation of its actual cost to the Forest Service and shall certify that the representations in that documentation are accurate and complete. The certification shall be signed and dated, and shall state that failure to sign the certification shall vitiate the fee offset claim. The Forest Service shall verify that documentation before giving any credit against the holder’s permit fee, and reserves the right not to grant any fee offset if any of the representations in the documentation is inaccurate or incomplete.

The Holder shall perform the work itemized below under this agreement.

Description of Project Due Date Estimated Cost Completion

Date Actual Cost

[itemize projects]

The Forest Service or Forest Service contractor shall perform the work itemized below under this agreement.

Description of Project Due Date Estimated Cost Completion

Date Actual Cost

[itemize projects]

Signed:

Holder or Holder’s Agent Date

Signed:

Authorized Officer Date

According to the Paperwork Reduction Act of 1995, an agency may not conduct or sponsor, and a person is not required to respond to a collection of information unless it displays a valid OMB control number. The valid OMB control number for this information collection is 0596-0082. The time required to complete this information collection is estimated to average 2 hours per response, including the time for reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of information.

The U.S. Department of Agriculture (USDA) prohibits discrimination in all its programs and activities on the basis of race, color, national origin, age, disability, and where applicable, sex, marital status, familial status, parental status, religion, sexual orientation, genetic information, political beliefs, reprisal, or because all or part of an individual’s income is derived from any public assistance. (Not all prohibited bases apply to all programs.) Persons with disabilities who require alternative means for communication of program information (Braille, large print, audiotape, etc.) should contact USDA’s TARGET Center at 202-720- 2600 (voice and TDD).

To file a complaint of discrimination, write USDA, Director, Office of Civil Rights, 1400 Independence Avenue, SW, Washington, DC 20250-9410, or call toll free at (866) 632-9992 (voice). TDD users can contact USDA through local relay or the Federal relay at

(800) 877-8339 (TDD) or (866) 377-8642 (relay voice). USDA is an equal opportunity provider and employer.

The Privacy Act of 1974 (5 U.S.C. 552a) and the Freedom of Information Act (5 U.S.C. 552) govern the confidentiality to be provided for information received by the Forest Service.

Appendix 12: Potential Government MRRI Projects

Potential Government Maintenance, Reconditioning, Renovation or Improvement (MRRI) Projects Included below are anticipated government maintenance, reconditioning, renovation or improvement projects. Items on this list could be changed, depending on use and condition of facilities, at the discretion of the Authorizing Officer. Note that costs are estimates, and actual costs may vary.

Many of the future projects consist of bringing the sites into compliance with the National

Quality Standards for Recreation Site Management, as described in Appendix 19. Projects may be derived from Appendix 3 – Inventory of Government Furnished Property. In addition, anticipate annual replacement of features that become irreparable or damaged. Items on this list could be changed, depending on use and condition of facilities, at the discretion of the

Authorizing Officer. Note that costs are estimates and actual costs may vary.

NOTE: This table represents a sample list of potential Granger-Thye Fee Offset projects for facilities in this prospectus. The Forest Service may find a need for higher priority projects and revise this list at any time.

Table 1. Potential MRRI Project List

Item/Project Quantity Estimated Cost Completion Date

Restrooms

Water/Septic Systems

Trash/Food Storage

Information Signage

Fire Rings and Grills

Picnic Tables

Roads and Trails

Appendix 13: Indirect Cost Reimbursement Letter

United States

Department of

Agriculture

Forest

Service

Washington Office 14th & Independence SW

P.O. Box 96090

Washington, DC 20090-6090

Caring for the Land and Serving People Printed on Recycled Paper

File Code: 2720/6500 Date: July 11, 2002 Route To:

Subject: Indirect Cost Reimbursement in Granger-Thye Permits

To: Regional Foresters

Issue. At the request of the National Forest Recreation Association (NFRA) we have evaluated how the Forest Service reimburses the indirect costs of permit holders who perform Granger-

Thye (GT) fee offset work. Holders are concerned that forests are inconsistent on whether and how indirect costs are allowed and what documentation is necessary to support a claim for indirect costs.

Background. Under Section 7 of the GT Act, and when authorized by a permit and GT fee offset agreement (GT agreement), the Forest Service offsets all or part of the permit fee paid by campground concessionaires with the cost of Government renovation, reconditioning, improvement, and maintenance performed at the concessionaire’s expense on facilities covered by the permit. When the holder performs the work, it is authorized by an attachment to the permit called a GT fee offset agreement. Alternatively, the Forest Service may enter into a collection agreement as authorized by Section 5 of the GT Act to perform work eligible for fee offset under Section 7.

Historical Practice. Typically the field has offset the holder’s direct costs for approved offset work, but reimbursement for the holder’s indirect costs has varied. Approaches have included limiting indirect costs to a maximum of 5 percent or 10 percent of the fee to be offset, limiting the type of indirect costs to be reimbursed, or reimbursement of a flat overhead rate without documentation. Review of this issue has shown that these methods are not appropriate, because holders should be reimbursed actual costs. There is a misconception among employees and holders that the Forest Service can reimburse a flat indirect cost rate without documentation.

There is often disagreement between forests and holders about what costs may be reimbursed.

Comparison. The Office of Management and Budget (OMB) has issued circulars to guide cost reimbursement for several types of business entities, including Circular A-87 for State and Local

Governments and Circular A-122 for Non-Profit Organizations. The Federal Acquisition

Regulation (FAR) Part 31 guides cost reimbursement for Commercial (For-Profit) Entities. We evaluated how cost reimbursement is conducted in other agency programs. Regulations at 7

CFR 3019.27 were updated in August 2000 to address the determination of allowable costs for grants and agreements in conformance with applicable OMB circulars. FSH 1509.11, Chapter

70, provides that administration of costs in grants and agreements for commercial entities is subject to FAR Part 31, Contract Cost Principles and Procedures. Adopting these cost standards for GT offset will create consistency among the program areas of special uses, contracting, and grants and agreements and conform to OMB guidance.

Conclusion. Offset of indirect costs is appropriate. Indirect costs are a customary charge in contracting and grants and agreements and should be eligible for offset under GT agreements.

Appendix 13: Indirect Cost Reimbursement Letter

Regional Foresters 2

The following guidance applies to reimbursement of actual costs to commercial entities holding

GT permits. The guidance (enclosed) is excerpted from FAR Part 31 and 48 CFR Part 9904 but has been tailored to address GT agreements. A simplified process for small concessions is included at the end of the document. Cost principles for non-profit entities and state or local governmental entities are not addressed. The guidance does not address the reimbursement of agency indirect costs. When the Forest Service performs the work, agency indirect costs will be assessed in accordance with FSH 1509.11, Chapter 33 and indirect cost rates established nationally (e.g., the FY2002 rate is 18 percent).

Implementation.

Before the holder’s indirect costs may be offset under a GT agreement, the holder must submit its indirect cost rate and supporting documentation for approval. Determination of an indirect cost rate should comply with the Cost Accounting Standards (CAS) and this guidance. When claiming cost reimbursement, the holder must certify that costs claimed comply with this guidance. Indirect costs based on approved Indirect Cost Allocation Rates (ICAR) should be reimbursed starting with 2002 permit fees. This advice for reimbursement of indirect costs is not retroactive to prior year permit fees.

For New Permits: Applicants must disclose accounting procedures and historic indirect cost allocation rates in response to a prospectus.

For Existing Permits: Holders must submit their ICAR to the authorized officer. Because the

ICAR will be the same for all permits held by a specific company, it is recommended that the regional external auditor review and approve the rate. Regional auditors should coordinate the review for companies operating in more than one region.

/S/ DAVID G. HOLLAND

/S/ TAMARA L. HANAN

DAVID G. HOLLAND TAMARA HANAN

Director, Recreation, Heritage, and Wilderness Resources

Director, Financial Policy and Analysis cc: Carolyn Holbrook

Appendix 14: Granger-Thye Fee Offset Certification

USDA Forest Service

Authorization ID OMB 0596-0082

Contact ID FS-2700-4h (03/06)

Expiration Date

APPENDIX G

Granger-Thye Fee Offset Claim Certification for

SPECIAL USE PERMIT

AUTHORITY: Section 7 of the Granger-Thye Act, 16 U.S.C. 580d

<Reference FSH 2709.11, chapter 50>

NATIONAL FOREST

RANGER DISTRICT

PERMIT NUMBER

Project Name Holder’s Fiscal Year (FY)

Total allowable costs may be offset under a Granger-Thye (GT) fee offset agreement to the extent they do not exceed the total annual fee for this permit. Total allowable costs of a GT project included in this GT claim are the sum of the direct GT project costs and indirect costs allocable to this GT project. Costs submitted under this GT claim will be accepted to the extent they are reasonable, allocable, and determined to be allowable, in accordance with the terms of the permit, GT agreement, and agency policy.

Direct GT Costs: Provide claimed GT costs by cost element and attach schedules to show the cost breakdown by cost element. Provide supporting documentation for the cost claim.

Indirect costs: Indirect costs must be computed based on Forest Service-approved indirect cost rate and may be added to the total direct GT costs. Attach the approved indirect cost rate for FY [ ] .

Approval of the fee offset claim is subject to all provisions in the Annual Granger-Thye Fee Offset Agreement

(FS-2700-4h, Appendix B) executed by the U.S. Department of Agriculture, Forest Service, [name] National

Forest, and [holder name] on [date of GT fee offset agreement].

DIRECT GT COSTS

Salaries and Wages $

Materials and Supplies $

Subcontracts $

Other (specify) $

Sum of Direct GT Costs $

INDIRECT COSTS ([ ]% x Direct GT costs) $

TOTAL GT COST CLAIM FOR PROJECT $

Subject to the penalties prescribed in the False Statements Act, 18 U.S.C. 1001, the holder certifies to the best of its knowledge that the representations in the documents supporting its claim for fee offset are accurate and complete. The Forest Service reserves the right not to grant the fee offset claim if any of these representations is inaccurate or incomplete. Failure to sign the certification shall vitiate the fee offset claim.

Signed: Date:

Name of Certifying Official

Title of Certifying Official

Appendix 14: Granger-Thye Fee Offset Certification

Burden Statement

According to the Paperwork Reduction Act of 1995, an agency may not conduct or sponsor, and a person is not required to respond to a collection of information unless it displays a valid OMB control number. The valid OMB control number for this information collection is 0596-0082. The time required to complete this information collection is estimated to average 1 hour per response, including the time for reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of information.

The U.S. Department of Agriculture (USDA) prohibits discrimination in all its programs and activities on the basis of race, color, national origin, gender, religion, age, disability, political beliefs, sexual orientation, and marital or family status. (Not all prohibited bases apply to all programs.) Persons with disabilities who require alternative means for communication of program information (Braille, large print, audiotape, etc.) should contact

USDA’s TARGET Center at 202-720-2600 (voice and TDD).

To file a complaint of discrimination, write USDA, Director, Office of Civil Rights, 1400 Independence Avenue, SW, Washington, DC 20250-9410 or call (800) 975-3272 (voice) or (202) 720-6382 (TDD). USDA is an equal opportunity provider and employer.

The Privacy Act of 1974 (5 U.S.C. 552a) and the Freedom of Information Act (5 U.S.C. 552) govern the confidentiality to be provided for information received by the Forest Service.

Appendix 15: Sample Collection Agreement for GT

Collection Agreement between

<Name of Holder> and

<Name> National Forest

Agreement Number: _________________

Cooperator Tax ID #: _________________

THIS COLLECTION AGREEMENT is made by (name of holder) and the U.S. Department of Agriculture, Forest

Service, ______________ National Forest (the FS), under Section 5 of the Granger-Thye Act, 16 U.S.C. 572.

WHEREAS, the holder operates a FS campground (or campgrounds) under a special-use permit dated ____;

WHEREAS (SELECT EITHER #1 OR #2) 1) THE HOLDER HAS A REQUESTED THE FS TO PERFORM AND

THE FS IS WILLING TO PERFORM UNDER A COLLECTION AGREEMENT OR 2) THE FS IS REQUIRING

THAT IT PERFORM UNDER A COLLECTION AGREEMENT, the following projects listed in the fee offset agreement: (List all agreed to and approved projects);

WHEREAS, the cost of those projects may be used to offset the permit fee in accordance with the fee offset agreement;

THEREFORE, in consideration of the above, the parties agree as follows:

A. The holder shall:

1. Make advance payments, in accordance with the permit, in amounts sufficient to cover the total cost of performing the Government maintenance and reconditioning work listed in this agreement, including overhead as determined by the FS up to ___ percent of project costs.

2. Pursuant to the Debt Collection Improvement Act of 1996, as amended by P.L. 104-134, furnish their tax identification number upon execution of this instrument. Cooperator also agrees that notice of the FS's intent to use such number for purposes of collecting and reporting on any delinquent amounts arising out of such person's relationship with the Government, has hereby been given.

B. The FS shall:

1. Deposit payments received from the holder under this agreement into the FS cooperative work fund.

2. Upon receipt of payment from the holder, perform the Government maintenance and reconditioning projects listed in this agreement.

3. Contributions authorized for use by the FS, which are not spent or obligated for project(s) approved under this instrument, will be refunded to the cooperator authorized for use for new projects by the cooperative.

C. It is mutually agreed that:

Appendix 15: Sample Collection Agreement for GT

1. No member of or delegate to Congress or resident commissioner shall receive any benefit that may arise from this agreement; provided, that this provision shall not apply to this agreement if it is made with a corporation for its general benefit.

2. This agreement in no way restricts the FS or the holder from participating in similar activities with other public or private agencies, organizations, or individuals.

3. Any holder contributions made under this agreement do not directly or indirectly convey FS endorsement of the holder's products or activities.

4. Modification of this agreement shall be made by in writing mutual consent of the parties and shall be signed and dated by both parties. The FS is not obligated to fund any modifications that are not made in accordance with this clause.

5. Either party(s), in writing, may terminate the instrument in whole, or in part, at any time before the date of expiration. The FS shall not incur any new obligations for the terminated portion of the instrument after the effective date and shall cancel as many obligations as in possible. Full credit shall be allowed for FS expenses and all non-cancelable obligations properly incurred up to the effective date of termination.

6. Unless terminated by written notice, this agreement shall remain in effect until the end of the initial permit term. If the permit term is extended, this agreement may be extended in writing for the same period as the permit term.

7. Per 16 U.S.C. 572, the United States shall not be liable to the holder or the holder's heirs, assigns, agents, employees, contractors, or lessees for any loss, personal injury, or death occurring in connection with performance of work under this agreement, and the holder on behalf of itself and its heirs, assigns, agents, employees, contractors, and lessees hereby waives any and all claims against the United States for compensation for any loss, personal injury, or death occurring in connection with performance of work under this agreement.

In witness where IN WITNESS WHEREOF, the parties have executed this agreement as of the last date written below.

Date [TITLE] for [HOLDER NAME]

Date Authorized Officer

______________ National Forest

Appendix 16: Sample Business Plan i

Business Plan Sample

For Campground Concessions

A Proposal in Response to the Campground Prospectus for:

on the National Forest

Name of Company:

Address:

Company contact:

Phone:

Appendix 16: Sample Business Plan ii

Contents

Part 1: The Business

1. Purpose and Goals:

2. Description of the Business:

3. Legal Structure:

4. Location of Your Business:

5. Market and Customers:

6. Competitive Analysis:

7. Management:

8. Personnel:

Part II: Financial Data

1. Capital-Equipment List:

2. Start-Up Expenses:

3. Sources and Uses of Financing:

Part III: Historical Financial Reports for Existing Business

1. Each applicant is required to submit all four items listed below

Part IV: Supporting Documents

1. Each applicant is required to submit all five items listed below

Part V: Appendices Legal Organization:

1. Sole Proprietorship

2. General Partnership:

3. Corporation:

4. Limited Partnership

5. Limited Liability Company (LLC)

Table 1. List of owners Table 2. Competitive Analysis Table 3. Capital Equipment List Table 4. Start-Up Expenses Table 5. Sources of Financing Table 6. Uses of Financing Table 7. Cash Flow Projection (or Cash Flow Budget) by Month: Year One Table 8. Start-Up Balance Sheet Table 9. Income Projection by Month: Year One

Appendix 16: Business Plan Sample

Part 1: The Business

1. Purpose and Goals:

A. What is your purpose in pursuing this business?

B. Define your business goals for the next year and what you foresee five years from now:

2. Description of the Business:

This section should describe the nature and purpose of the company, background on your industry, and what opportunities you see for your services.

A. Brief description of the business:

B. Briefly describe your knowledge of this industry:

C. List the products and services you will provide:

3. Legal Structure:

There are several ways in which your business can be legally organized.

A. How your company is legally organized? (Check appropriate box).

• Sole Proprietorship

• General Partnership

• Corporation "C" Corp or "S" Corp Limited Partnership

• Limited Liability Company (LLC)

• Other

B. Why is this legal organization most appropriate for your business?

C. Does your operation require a state registration number? YES. NO.

(If “Yes”, include a copy of the registration in the Supporting Documents.)

Include any appropriate information, including shareholder or partnership agreements, in the Supporting

Documents, and complete the following list of owners:

Table 1. List of owners

Name Address Social Security Number

(SSN)

Percent Ownership

4. Location of Your Business:

Describe the planned geographical location of the business and discuss the advantages and disadvantages of the site location in terms of wage rates, labor availability, closeness to customers or suppliers, access to transportation, state and local taxes, laws, and utilities.

Describe your approach to overcoming any problems associated with the location.

A. Planned geographical location:

B. Discuss advantages or disadvantages of the site location:

C. Describe your approach to overcoming any problems:

5. Market and Customers:

The purpose of this section is to present sufficient facts to convince the evaluation team that your service has a substantial market and can achieve success in the face of competition. Discuss who the customers are for your service. Where are the major purchasers for the service?

A. Describe your anticipated target market (e.g., age, income, hobbies, regional, national, international):

B. Describe the size of the current total market and potential annual growth:

C. Discuss your advertising campaign in terms of how, when, and where you will advertise, and estimated annual cost:

6. Competitive Analysis:

Make a realistic assessment of the strengths and weaknesses of your competitors. Compare the competing services on the basis of image, location, price, advertising, and other pertinent features. Discuss your key competitors and explain why you think that you can capture a share of their business. Discuss what makes you think it will be easy or difficult to compete with them.

A. Identify your key competitors:

B. Discuss their strengths and weaknesses.

C. Compare your product or service on key areas. For each area of comparison rank yourself and your selected competitors on a scale of 1 (high) to 5 (low). Remember: no ties.

Table 2. Competitive Analysis

Area of Comparison You Competitor A Competitor B Competitor C Competitor D

Image

Location

Price

Advertising

Service

Uniqueness

Other

D. Why do you think you can compete with your competitors and capture a share of the market?

7. Management:

The evaluation team is looking for a committed management team with the proper balance of technical, managerial, and business skills and experience which supports your proposal. Be sure to include complete resumes for each key management member in the Supporting Documents section.

(Use additional pages and attach as necessary)

A. List owners and key management personnel and their primary duties. If any key individuals will not be onboard at the start of the venture, indicate when they will join the staff.

B. Discuss any experience when the above people have worked together that indicates how their skills complement each other and result in an effective management team.

C. List the advisors and consultants that you have selected for your venture. Capable, reputable, and well- known supporting organizations can not only provide significant direct and professional assistance, but also can add to the credibility of your venture.

Accountant

Attorney

Banker

Insurance Broker

Advertising

Others

8. Personnel:

Explain how you plan to recruit, develop, and maintain your workers. List the number of employees you will have, as well as their job titles and required skills. (Use additional pages as necessary)

A. Identify essential employees, their job titles, and required skills:

B. Identify the source and your plan to recruit essential employees:

C. Discuss any training or retraining that you plan for your employees. Also, discuss any necessary first- aid certification or recertification, etc.:

Part II: Financial Data

1. Capital-Equipment List:

Capital equipment is defined as assets which have useful lives of more than one year. Examples include machines, equipment, vehicles, livestock, tack, gear, and computers. Describe the equipment, the quantity, whether the equipment is new or used (N/U), the expected useful life, and the cost. This includes equipment purchased from existing businesses.

Table 3. Capital Equipment List

Equipment Quantity New/Used Life Cost

Total Cost of Capital Equipment $0.00

2. Start-Up Expenses:

Start-up expenses are the various costs it takes to open your doors for business:

Table 4. Start-Up Expenses

Item Cost

Total cost of capital equipment

Beginning inventory of operating supplies

Legal fees

Accounting fees

Other professional fees

Licenses and permits

Remodeling and repair work

Deposits (public utilities, etc.)

Advertising

Insurance

Bonds

Advance permit fees

Other expenses:

Total Start-Up Expenses $

3. Sources and Uses of Financing:

A. Sources of Financing:

Table 5. Sources of Financing

Item Cost

Investment of cash by owners

Investment of cash by shareholders

Investment of non-cash assets by owners

Investment of non-cash assets by shareholders

Bank loans to business: short term (one year or less)

Bank loans to business: long term (more than one year)

Bank loans secured by personal assets

Small Business Administration loans

Other sources of financing (specify)

Total Sources of Financing $

B. Uses of Financing

Table 6. Uses of Financing

Item Cost

Buildings

Equipment

Initial inventory

Working capital to pay operation expenses

Noncash assets contributed by owners (use same amount as in Sources, above)

Other assets (specify)

Total Uses of Financing $

C. Monthly Cash Flow Projection:

The cash flow projection is the most important financial planning tool available to you. The cash flow projection attempts to budget the cash needs of a business and shows how cash will flow in and out of the business over a stated period of time. A cash flow deals only with actual cash transactions. Depreciation, a noncash expense, does not appear on a cash flow. Loan repayments (including interest), on the other hand, do, since they represent a cash disbursement.

NOTE: The Cash Flow Projection chart on the following page is required to be completed and submitted in the existing format.

Table 7. Cash Flow Projection (or Cash Flow Budget) by Month: Year One

A B C D E F G H I J K L M N

1 Oct. Nov. Dec. Jan. Feb. March April May June July Aug. Sept. Total

2 Cash Receipts

3 Sales Receivables

4 Wholesale

5 Retail

6 Other Services

7 Total Cash Receipts

8 Cash Disbursements

9 Cost of Goods

10 Variable Labor

11 Advertising

12 Insurance

13 Legal and Accounting

14 Delivery Expenses

Fixed Cash Disbursements*

16 Mortgages (Rent)

17 Term Loan

18 Line of Credit

19 Other

Total Cash Disbursements

22 Net Cash Flow

Cumulative Cash Flow

*Fixed Cash Disbursements

A B C D E F G H I J K L M N

27 Utilities

28 Salaries

Payroll Taxes and Benefits

30 Office Supplies

Maintenance and cleaning

32 Licenses

33 Boxes, Paper, etc.

34 Telephone

35 Miscellaneous

36 Total FCD/Year

37 FCD/Month

39 Cash on Hand

40 Opening Balance

41 + Cash Receipts

42 -Cash Disbursements

43 Total = New Balance

D. Start-Up Balance Sheet:

Balance sheets are designed to show how the assets, liabilities, and net worth of a company are distributed at a given point in time.

NOTE: The following Start-up Balance Sheet is required to be completed and submitted in the existing format.

Table 8. Start-Up Balance Sheet

Item Cost

Assets:

Current Assets $

Fixed Assets $

Less Accumulated Depreciation $

Net Fixed Assets $

Other Assets $

Total Assets $

Footnotes:

Liabilities: $

Current Liabilities $

Long-Term Liabilities $

Total Liabilities $

Net Worth or Owner’s Equity (Total assets minus total Liabilities) $

Total Liabilities and Net Worth

Footnotes:

E. Start-Up Income Statement Projection:

Income Statements (also called Profit and Loss Statements) complement balance sheets. The income statement provides a moving picture of the company during a particular period of time. For most businesses (and for most bankers), income projections covering one to three years are more than adequate.

If you are in a start-up situation, look for financial-statement information and income ratios for businesses similar to yours. The Robert Morris Associates' Annual Statement Studies and trade association publications are two possible sources.

NOTE: The following Income Projection Statement is required to be completed and submitted in the existing format.

Table 9. Income Projection by Month: Year One

A B C D E F G H I J K L M N

1 Oct. Nov. Dec. Jan. Feb. March April May June July Aug. Sept. Total

3 Sales

4 Wholesale

5 Retail

6 Total Sales

8 Cost of Material

9 Variable Labor

10 Cost of Goods Sold

12 Gross Margin

14 Operating Expenses

15 Utilities

16 Salaries

Payroll Taxes and Benefits

18 Advertising

19 Office Supplies

20 Insurance

Maintenance and Cleaning

22 Legal and Accounting

23 Delivery Expenses

24 Licenses

25 Boxes, Paper, etc.

26 Telephone

27 Depreciation

A B C D E F G H I J K L M N

28 Miscellaneous

29 Rent

Total Operating Expenses:

32 Other Expenses

33 Interest (Mortgage)

34 Interest (Term Loan)

Interest (Line of Credit)

Total Other Expenses:

37 Total Expenses:

Net Profit (Loss) Pre- Tax

Part III: Historical Financial Reports for Existing Business

1. Each applicant is required to submit all four items listed below.

1. Balance sheet (past three years)

2. Income statement (past three years)

3. Tax returns (past three years)

4. Current credit report from major credit bureau

Part IV: Supporting Documents

1. Each applicant is required to submit all five items listed below.

1. Personal resumes of business owners, officers, and partners

2. Personal financial statements of business owners, officers, and partners

3. Bank or investor letters of intent to finance project

4. Copies of business leases pertinent to this business

5. Copies of all pertinent existing permits or licenses applicable to this business (Submit only the face pages of all current concession permits)

Part V: Appendices

Legal Organization:

The more popular legal organizations and their reasons are outlined below

1. Sole Proprietorship

A sole proprietorship is a business owned by one person. This form of business is regulated by the state only in that some states requires you to register your trade name to do business as a sole proprietor. You do not have to register with the state if you are operating your business under your own full legal name.

(Note: You must be licensed where required, and pay all appropriate taxes.)

Advantages:

• Simple to start.

• Easy to dissolve.

• Owner makes all management decisions.

• Pay only personal income tax; business entity not taxed separately.

Disadvantages:

• Unlimited liability (owner legally liable for all debts, claims and judgments). Difficulty in raising additional funds.

• No one to share the management burden.

• Impermanence (company can't be sold or passed on; however, you may sell or pass on assets of the company).

2. General Partnership:

A partnership is an association of two or more persons to carry on as co-owners of a business for profit.

Some states require that you register your name if it is a trade name (not your full legal name). You must file state and Federal ``information returns,'' but business income and losses flow through to the partners' personal taxes. The business pays no separate income taxes. Partners may share the profits of the business

(and the losses) on an equal basis, or may pro rate the proceeds as set forth in a Partnership Agreement.

Whichever way you determine to share in the business, you need to have a written Partnership Agreement outlining the ownership, responsibilities, and eventualities of dissolution or liquidation for the business.

Advantages:

• Simple to start.

• Fairly easy to dissolve.

• Additional sources of capital from partners. Broader management base.

• More opportunity for each partner to specialize. Tax advantages: no separate income tax.

• Limited outside regulation, compared to a corporation.

Disadvantages:

• Unlimited financial liability for all general partners (some partners' personal debts can even be charged to the business).

• Difficulty in raising outside capital. Divided authority.

• Continuity problems (business dies when any partner leaves or dies, unless succession has previously been spelled out in a Partnership Agreement. Partnership terminates in the event of a personal bankruptcy on the part of any partner).

• Difficult to find suitable (compatible) partners.

• One partner may be responsible for the actions of another partner, regardless of whether that partner had prior approval.

3. Corporation:

There are two types of corporations generally recognized today: a regular "C'' corporation, organized under the laws of the state in which you do business; and an "S'' Corporation, so designated by the IRS and not necessarily recognized by your state.

A corporation is a business entity separate and distinct from its owner(s) or shareholder(s). You must file incorporation papers with the state of your choice. The corporation must file annual reports with the

Secretary of State, and may have to file separate quarterly income tax returns. The corporation exists forever, can be bought and sold, and is regulated by the state.

"C'' Corporation Advantages:

• Limited liability (as long as you act like a corporation which means having a separate checking account and phone number, paying interest on any borrowed money, keeping up a corporate record book, filing annual reports, meeting with your Board of Directors at least annually, etc.).

• Easier to bring in additional capital. Ownership is transferable.

• Company has continuous, perpetual existence.

• Possible tax advantages (seek adequate advice from a tax professional).

• Gives you more sense of permanence, thus more ``weight,'' in the business world.

“C'' Corporation Disadvantages:

• More expensive to organize. Highly regulated.

• Extensive record-keeping requirements.

• Double taxation (corporation pays its own income taxes; if you pay yourself a salary or a dividend, you also pay personal income taxes).

• Shareholders/Board of Directors may counter your management decisions.

"S'' Corporation Advantages

• Filing a Subchapter Selection with the Internal Revenue Service allows you to be taxed on your corporate profits through your personal tax return.

• You still maintain the limited liability of a corporation.

• If you have additional personal income against which to deduct company losses, or if your personal tax rate is lower than the corporate tax rate, this form may be advantageous for you. Again, please seek professional tax advice to make this determination.

“S'' Corporation Disadvantages

• There are some restrictions on "S" corporations, mainly in how you can sell your shares. You can have a maximum of 35 shareholders, all of whom must be U.S. citizens, and be individuals (not corporations).

• You must request permission from the IRS to be an "S" corporation, and generally, must maintain the calendar year as your fiscal year.

4. Limited Partnership

In a Limited Partnership, there are two kinds of partners: general partners, who carry full liability; and limited partners, who carry limited liability. Limited partners must make known, through filing with the

Secretary of state that they indeed are limited partners, and they may not participate in the day-to-day management of the business. Again, as in the "S'' Corporation, profits from Limited Partnerships are taxed through each partner's personal tax return. Limited partnerships are popular in industries where a great deal of ``up-front'' money is needed for projects that are expected to produce a high return, such as in real estate, energy, movie production, and sports teams.

5. Limited Liability Company (LLC)

While wearing the corporate form, essentially, an "LLC" is similar to a Limited Partnership, except the general partner also carries limited liability. Profits are taxed through individual owners' personal tax returns. The advantage of this form over an "S'' Corporation is that other corporations may be owners, and the "LLC" may also hold 100% ownership in subsidiary companies.

Be aware that LLC is a relatively new business form. Legal precedents have not been set to outline clearly all the legal and tax ramifications of this form of organization. If interested in becoming an “LLC” you are strongly urged to seek competent, professional legal and tax advice.

Appendix 17: FS-6500-24 Financial Statement

USDA Forest Service FS-6500-24 (V. 07/2012) OMB No. 0596-0082

FINANCIAL STATEMENT

(Ref. 36 CFR 223.7(e), 36 CFR 251.54(e)(2), Federal Acquisition Regulation 48 CFR 9.104-1.)

INSTRUCTIONS: Forest Service (FS) requires the respondent to provide the most recent fiscal year financial statement.

FS may also request the respondent to provide two additional years of financial data, on a case by case basis. If more space is needed to fully answer any item below, attach additional sheets. False or fraudulent financial reporting on this form is subject to a fine or imprisonment under 18 U.S.C. 1001(a).

1. NAME OF CORPORATION, LIMITED LIABILITY COMPANY (LLC.), PARTNERSHIP, OR PROPRIETORSHIP

(include any names the organization/firm operated under during past three years and specify the year operated for each name):

2. STATE

INCORPORATED

3. DATE INCORPORATED

4. ADDRESS OF PRINCIPAL PLACE OF BUSINESS (with

ZIP CODE)

5. IF PARTNERSHIP, NAMES OR PARTNERS, AND THEIR PARTNERSHIP INTERESTS

6. NAMES, TITLES, AND ADDRESSES OF CORPORATE OFFICERS AND DIRECTORS, WITH NUMBER OF SHARES

OF STOCK OWNED BY EACH

FULL NAME TITLE ADDRESS

(Number, Street, City, State, and ZIP CODE)

SHARES

OWNED

7. REFERENCES (At least three should be given, preferable banks):

Full Name ADDRESS

(Number, Street, City, State, and ZIP CODE)

USDA Forest Service FS-6500-24 (V. 07/2012) OMB No. 0596-0082

PART A. BALANCE SHEET

CURRENT YEAR PAST YEAR THIRD YEAR

(MO/DA/YR) (MO/DA/YR)

(MO/DA/YR)

YEAR ENDED

ASSETS

CURRENT ASSETS:

CASH

RECEIVABLES-TRADE

LESS ALLOWANCES FOR DOUBTFUL ACCOUNTS < > < > < >

INVENTORIES (LIST MAJOR CATEGORIES):

SUPPLIES AND MISCELLANEOUS

MARKETABLE SECURITIES

PREPAID EXPENSES

SUPPLIES INVENTORY

OTHER CURRENT ASSETS:

TOTAL CURRENT ASSETS

FIXED ASSETS:

LAND

BUILDINGS

MACHINERY AND EQUIPMENT

PLANT

LEASEHOLD IMPROVEMENTS

OTHER

LESS ALLOWANCE FOR DEPRECIATION < > < > < >

NOTE: Respondents may submit certified financial statements in lieu of answering PARTS A through C on the next pages. However, respondents must complete either certification statement PART D (1) or PART D (2) at the bottom of the last page.

USDA Forest Service FS-6500-24 (V. 07/2012) OMB No. 0596-0082

BOOK VALUE-FIXED ASSETS

OTHER ASSETS:

DEPOSITS-CASH

DEPOSITS-SECURITIES

TOTAL-OTHER ASSETS

TOTAL ASSETS

LIABLIITIES AND OWNER EQUITY CURRENT

YEAR

PAST YEAR THIRD YEAR

CURRENT LIABILITIES:

ACCOUNTS PAYABLE-TRADE

ACCRUED PAYROLL

ACCRUED PAYROLL TAXES AND INSURANCE

NOTES PAYABLE

INCOME TAXES-CURRENT

OTHER TAXES

CURRENT PORTION OF LONG-TERM DEBT

OTHER CURRENT LIABILITIES (SPECIFY):

TOTAL CURRENT LIABILITIES

OTHER LIABILITIES:

DEFERRED INCOME TAXES

LOANS FROM OFFICERS/PARTNERS

LONG-TERM OBLIGATIONS-LESS CURRENT AMOUNT

TOTAL OTHER LIABILITIES

TOTAL LIABILITIES

OWNER EQUITY:

CAPITAL STOCK OUTSTANDING

RETAINED EARNINGS (DEFICIT)

PARTNERS' INVESTMENT (DEFICIT)

USDA Forest Service FS-6500-24 (V. 07/2012)

TOTAL OWNER EQUITY

TOTAL LIABILITIES AND OWNER EQUITY

PART B. SUPPLEMENTAL DATA

THIS STATEMENT IS ON THE-CASH BASIS ACCRUAL BASIS

INVENTORIES ARE-LIFO FIFO COST OR MARKET WHICHEVER IS LOWER

NAMES OF CONTRACTORS OR SUB-CONTRACTORS USED (IF ANY):

PART C. INCOME STATEMENT CURRENT YEAR PAST YEAR THIRD YEAR

GROSS SALES

LESS-RETURNS AND ALLOWANCES < > < > < >

NET SALES

LESS-COST OF GOODS SOLD < > < > < >

GROSS PROFIT ON SALES

LESS-SELLING EXPENSE < > < > < >

NET PROFIT (LOSS) ON SALES

GENERAL EXPENSE:

OFFICERS SALERIES

LEGAL AND OTHER PROFESSIONAL EXPENSE

OFFICE EXPENSE

TOTAL GENERAL EXPENSE

NET OPERATING PROFIT (LOSS)

ADD-OTHER INCOME

LESS-INTEREST EXPENSE

INCOME TAXES < > < > < >

OTHER EXPENSE < > < > < >

NET AMOUNT OF OTHER INCOME AND EXPENSE < > < > < >

NET PROFIT (LOSS) FOR YEAR

NOTE: Offers must set forth full, accurate, and complete information as required in this Financial Statement (including any attachments). The penalty for making false statements in this Financial Statement is prescribed in 18 U.S.C. 1001.

PART D (1). CERTIFICATION FOR CORPORATIONS, LIMITED LIABILITY COMPANIES OR PARTNERSHIPS We, the undersigned, general officers (or members) of (Name of corporation, LLC. or partnership) being severally sworn, each declares that the above or attached financial statements are true and correct, and that it covers all of the financial affairs of said company (or) firm up to and including the date of 2 .

CERTIFYING OFFICIAL'S NAME AND TITLE

SIGNATURE (Sign in ink) DATE

USDA Forest Service FS-6500-24 (V. 07/2012) OMB No. 0596-0082

CERTIFYING OFFICIAL'S NAME AND TITLE

SWORN TO AND SUBSCRIBED before me this day of (Month/Year).

(Affix

Notary Seal)

SIGNATURE

TITLE

PART D (2). CERTIFICATION FOR INDIVIDUALS

I swear (or affirm) that the above or attached financial statements are true and correct to the best of my knowledge.

INDIVIDUAL'S NAME AND TITLE

SWORN TO AND SUBSCRIBED before me this day of (Month/Year)

(Affix Notary Seal) SIGNATURE

TITLE

Burden Statement

According to the Paperwork Reduction Act of 1995, an agency may not conduct or sponsor, and a person is not required to respond to a collection of information unless it displays a valid OMB control number. The valid OMB control number for this information collection is 0596-0082. The time required to complete this information collection is estimated to average 8 hours per response, including the time for reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of information.

The U.S. Department of Agriculture (USDA) prohibits discrimination in all its programs and activities on the basis of race, color, national origin, age, disability, and where applicable, sex, marital status, familial status, parental status, religion, sexual orientation, genetic information, political beliefs, reprisal, or because all or part of an individual’s income is derived from any public assistance. (Not all prohibited bases apply to all programs.) Persons with disabilities who require alternative means for communication of program information (Braille, large print, audiotape, etc.) should contact USDA’s TARGET Center at 202- 720-2600 (voice and TDD).

To file a complaint of discrimination, write USDA, Director, Office of Civil Rights, 1400 Independence Avenue, SW, Washington, DC 20250-9410, or call toll free (866) 632-9992 (voice). TDD users can contact USDA through local relay or the Federal relay at (800) 877-8339 (TDD) or at (866) 377-8642 (relay voice). USDA is an equal opportunity provider and employer.

The Privacy Act of 1974 (5 U.S.C. 552a) and the Freedom of Information Act (5 U.S.C. 552) govern the confidentiality to be provided for information received by the Forest Service.

�U.S. GPO: 1996-720-508

Appendix 18: FS-6500-25 Request for Verification

US DEPARTMENT OF AGRICULTURE, FOREST SERVICE

REQUEST FOR VERIFICATION

(Reference FSH 6509.18)

FS-6500-25 (V. 01/2014)

Instructions: Applicant - Complete items 1 thru 5. Forward directly to bank or lending institution.

Bank or

Lender - Please complete Items 6 thru 15. Return directly to Resource Audit Branch, CFO Office, Albuquerque Service Center, Forest Service.

101 B Sun Ave., NE, Albuquerque, NM 87109 Attn:

PART I - REQUEST

1. TO: Name and Address of Bank or other Lending institutions

2. FROM: (Name and Address of Applicant)

3. STATEMENT OF APPLICANT

TYPE OF ACCOUNT ACCOUNT NUMBER CURRENT BALANCE

CHECKING ACCOUNT

SAVINGS ACCOUNT

OTHER

I have applied for a timber sale contract or concessionaire permit (please cross one out) with the National Forest and state that my balance with the bank or lending institution named in Item 1 are as shown in Item 3. My signature below authorizes verification of the information. Your response is solely a matter of courtesy for which no responsibility is attached to your institution or any of your officers.

4. Signature of Applicant 5. Date

PART II - VERIFICATION

6. Does applicant have any outstanding loans? 10. Is the account less than 2 months old?

Yes No If yes, fill Item 7. Yes No If Yes, fill in Item 11.

TYPES OF LOANS MONTHLY PYMT PRESENT BALANCE 11. Date account was opened:

Secured

12. Payment Experience:

Unsecured Favorable Unfavorable

8. Is applicant's statement in Item 3 correct? If unfavorable, please explain in remarks.

Yes No If no, fill Item 9.

9. CHECKING BALANCES

CHECKING SAVINGS

13. REMARKS:

THE INFORMATION ON THIS FORM IS CONFIDENTIAL. IT IS TO BE TRANSMITTED DIRECTLY, WITHOUT PASSING

THROUGH THE HANDS OF THE APPLICANT OR ANY OTHER PARTY.

14. Signature of bank or lending official. 15. Date

False or fraudulent financial reporting on this form is subject to a fine or imprisonment under 18 U.S.C. 1001(a).

Burden Statement

According to the Paperwork Reduction Act of 1995, an agency may not conduct or sponsor, and a person is not required to respond to a collection of information unless it displays a valid OMB control number. The valid OMB control number for this information collection is 0596-0082. The time required to complete this information collection is estimated to average

0.5 hours per response, including the time for reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of information.

The U.S. Department of Agriculture (USDA) prohibits discrimination in all its programs and activities on the basis of race, color, national origin, age, disability, and where applicable, sex, marital status, familial status, parental status, religion, Appendix 18: FS-6500-25 Request for Verification sexual orientation, genetic information, political beliefs, reprisal, or because all or part of an individual’s income is derived from any public assistance. (Not all prohibited bases apply to all programs.) Persons with disabilities who require alternative means for communication of program information (Braille, large print, audiotape, etc.) should contact USDA’s TARGET Center at 202-720-2600 (voice and TDD).

To file a complaint of discrimination, write USDA, Director, Office of Civil Rights, 1400 Independence Avenue, SW, Washington, DC 20250-9410, or call toll free (866) 632-9992 (voice). TDD users can contact USDA through local relay or the Federal relay at (800) 877-8339 (TDD) or at (866) 377-8642 (relay voice). USDA is an equal opportunity provider and employer.

The Privacy Act of 1974 (5 U.S.C. 552a) and the Freedom of Information Act (5 U.S.C. 552) govern the confidentiality to be provided for information received by the Forest Service.

Appendix 19: National Quality Standards for Recreation Site Management

National Quality Standards for Recreation Site Management and Best Management Practices (Formerly known as Meaningful Measures Standards)

National Quality Standards for developed sites have been established for the Key Measures: Health and

Cleanliness, Safety and Security, Condition of Facilities, Responsiveness, Resource Setting. Critical

National Standards are identified with an asterisk (*). If not met, the resulting conditions pose a high probability of immediate or permanent loss to people or property.

Key Measure: HEALTH AND CLEANLINESS

• *Visitors are not exposed to human waste.

• *Water, wastewater, and sewage treatment systems meet federal, state and local water quality regulations.

• Garbage does not exceed the capacity of garbage containers.

• Individual units and common areas are free of litter including domestic animal waste.

• Facilities are free of graffiti.

• Restrooms and garbage locations are free of objectionable odor.

• Constructed features are clean.

Key Measure: RESOURCE SETTING

• *Effects from recreation use do not conflict with environmental laws (such as ESA, NHPA, Clean

Water, TES, etc).

• Recreation opportunities, site development, and site management are consistent with Recreation management system (ROS, SMS, BBM) objectives, development scale, and the Forest land management…