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Outline of Proposed Single Family Office (SFO) Plan of Action
John J. Gryzmala 

Maintain Family confidentiality.

Review of historical documentation
The first undertaking is to review, schedule and understand all of the current financial, investment, tax and accounting structures in place.  An ongoing mission statement and business plan should then be documented including any open issues, tax status, legacy planning and new or revised investment strategies. A list of trusted advisors and Trustees of all Trusts is needed.

Schedule of all current investments by the family and all related family entities
Including Family, Trusts, GRATS, children, Foundations etc.  This schedule should include a complete list of investments:
Date of purchase
Yield and fees charged
Cost basis
Current market value
Risk classification
File maintenance for all assets

Current investment status:
To be discussed

Tax planning
Review all existing Wills, Trusts and other estate planning vehicles to assure that the current status matches the wishes of the family (part of the Mission Statement/Business Plan).

Assist in tax planning and filing throughout the year and at year end.
Explore other options to maximize tax savings in conjunction with Estate planning issues.

Future investment plan (3 to 5 year time frame-part of business plan)
Muni’s, BB or better rated corporate bonds, bank debt, etc.
Source investment options within risk framework possibly including such firms as Bernstein, Chase, Vanguard, PIMCO, Breckinridge and others.Decide on asset classes, percentage allocation and maximum percentage allocated to any one manager.In 3 to 5 years PE might become a large piece of the investment portfolio.
Audit of investments and due diligence should be prepared regularly.

Cash flow budgets and reporting should be prepared and reviewed at least monthly.
Comparison of budgeted expenditures to actual with variance analysis to ensure cost control.

Accounting systems and operations
General ledger maintenance and account analysis.
Accounts payable and cash disbursements, approval of all invoices.
Review/improve the expense efficiency, vendor negotiations.
Record keeping for the above.

Bank account and cash management
Interface with banks to oversee, monitor and facilitate bank accounts, reconciliation and cash management.
List of all bank accounts and authorized signatories.

Operating controls
Maintain/implement appropriate internal controls to safeguard the assets of the family.

Preparation of family financial statements
Including all assets of the family, not merely investments, plus any payables, liabilities or contingencies.

Residences, construction, management and staffing
Review and plan for all staffing requirements and residence expenditures with appropriate budgets. 
Maintain contact list of vendors.

All insurance policies should be reviewed to insure that all aspects of the family are properly covered and at the appropriate values:
Art collection
Life insurance
Personal, Employment practice, Errors & Omissions, D&O, and workers comp. liability.

I assume that your company has D&O, errors &omissions and other business insurance in place to protect the family.
File maintenance for the above.

Schedule of real estate (plus autos, art and other non-investment assets)
This should including files for the original contracts, appraisals, proofs of payment, improvements, contents and mortgages if any. 
Review of ownership options to secure property.

Files for each employee should be maintained to including hire date, personnel notes, salary history, confidentiality agreements, W-9, employment contracts, job responsibilities, resumes and background checks.
An employee manual should be prepared to standardize family privacy policy, guidelines, vacations, medical leave, terms of employment, termination and conduct.
A list of all current and proposed positions, with job descriptions is suggested.

Work with payroll providers to coordinate the ongoing processing and distribution of payroll.
Coordinate the tax and employee filings.

Financial staff supervision
To ensure timely and accurate transparent reporting.

Special projects
Legal structure of the SFO, might be one or more entities in more than one tax jurisdiction.  Private Trust Company, RIA (registered Investment Advisor), or LLC creation to maximize tax deductibility.

Central asset reporting and aggregation software could be purchased.

Are there any avenues to explore for the further sheltering of assets from creditors/ law suits?  I.e. offshore vehicles, asset protection trusts.

Concierge services.

Interface with your company staff on personal, tax, K-1, family medical coverage, life insurance or other financial matters.

Legal-ongoing review of any pending legal issues and regular reporting of status.

Philanthropic planning.

Governance planning.

Family security and contingency plans.

© Galaxy Family Resources, LLC. - 2010

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