Budgeting & Wing Banker Program – Unit Commander’s Course

1. Budgeting & Wing Banker Program – Unit Commander’s Course

2. Objectives: • Discuss the importance of a unit budget. • Determine budget requirements. • Unit’s responsibilities. • Unit’s responsibilities with Wing Banker Program. • Wing’s responsibilities to units with Wing Banker Program

3. Unit Commander’s Responsibility • Finances -- One of your most important responsibilities. • Ensure that your unit is financially sound. • Determine your unit’s assets and unit’s needs. • Obtain approval for fund raising

4. Importance of Budgeting at the Unit Level • You need to know how much money you have to spend. • If you have NO money – you can not spend any money • Plan a budget so that your squadron can financially meet its goals and missions.

5. Importance of Budgeting – cont. • When you budget, you balance what you have with where you want to be. • You determine what you need to meet your objectives.

6. Determining Your Assets and Needs • Assets – • Two types of assets • Cash • Material Assets • Determine what you have • Once you have determine your assets • Determine your needs

7. Determining Your Needs • Do you have rent? • What are the utility bills? • Will the squadron be having any activities? • What other projected expenses will the unit have?

8. Determine the Difference • Determine the difference between financial assets and needs for unit. • Ok at this stage to want more than you project the unit has. • Take this opportunity to explore options. • Options -- raising income and lowering expenses.

9. Determining Difference – Exploring Options • Look at ALL WAYS the unit is receiving and spending money. • Are you paying too much? • Is the unit receiving all monies it is entitled to on reimbursements? • Is squadron supplying members, without charge, for items that are costing the unit? • Ask Questions! In regards to where is the money coming from and where is it going to, and can this change.

10. Budget & Raising Funds • Determine how much funds need to be raised to meet the cash requirements for budgetary requirements. • Budget needs to equal = zero – not a negative balance. • CAPR 173-4 – Fund Raising/Donations

11. Budget – Fundraising • No matter how you raise funds for your unit. • Raise Funds IAW CAPR 173-4 • Keep two things in mind.

12. Budgeting – Fund Raising • FIRST – You must obtain written permission from the wing commander. • As corporate officer of CAP representing the wing, he/she is the agent responsible for ALL fund raising activities.

13. Budget – Fundraising • SECOND – Make yourself aware of the state and local fundraising laws and regulations. • This is not Monopoly – You do not get a “get out of jail free card”.

14. Budget - Fundraising • Certain types of fundraising you cannot do. • CAPR 173-4 List these types. • Brainstorm on ideas to raise money. • Alternatives to fundraisers – • Cash Donations & Contributions • Grants • Material Donations (Coordinate with Wing Logistics first, IAW CAPR 67-1)

15. Budget - Fundraising • Wing commanders can accept donations of property or cash in the amount of $5000 or less. • Region commanders can accept donations worth between $5000 - $10,000 • The Executive Director of CAP accepts donations worth more than $10,000

16. Wing Banker Program and the Unit • Why did NHQ and Wing go to Wing Banker Program?

17. In the Beginning… • CAP has never received an Unqualified Audit Opinion because the funds at the unit level are not audited • The NEC and the Board of Governors recommended that CAP obtain an unqualified audit opinion

18. Why is a qualified audit opinion a problem? • “Qualified” means something positive in CAP (for ex: qualified check pilot) • A “qualified” audit opinion is not desirable • An auditor is not able to express an “unqualified” audit opinion when significant concerns may exist regarding the corporation’s financial information • An “unqualified” opinion is most desirable

19. Where no one has gone before! • The Wing Banker Program was endorsed by both the NEC and the Board of Governors

20. What does it accomplish? • It accounts for the funds and activity of all units at the wing level • Provides greater accountability and reporting of CAP appropriated and corporate funds • An unqualified audit opinion enhances public trust

21. Benefits to the Unit • Allows units to focus on CAP mission • Decisions and control remain with the unit • Unit does not have to file annual 173-2 • An unqualified audit opinion provides public assurance that assets are accounted for and provides squadrons with opportunities to obtain additional funding through grants

22. Do we have to do it? YES!

23. You are taking our money!! • No--The unit still has control of how the funds are spent • The wing is acting as the bank, accountant and reporter • Reports of activity and unit balances will be provided

24. Financial Management Web Site at NHQ has lots of resources available

25. Overview of Wing Banker Program • Deposits • Check Requests • Savings Accounts • CDs • Other Investments • Reports • Year-End Requirements

26. Deposits • Units may make their own deposits • Bank dated deposit slip sent to the wing • Wing may require all funds to be sent to the wing directly • Cash should not be sent • Checks should be payable to Civil Air Patrol • Deposit form should indicate the depositor, purpose or account #, check # or cash and amount

27. Certificate of Deposit/Investment Accounts • The unit may maintain the funds • The funds must be recorded at the wing level • Bank/brokerage statements must be forwarded to wing HQ • Any withdrawals must be properly approved and reported to wing HQ • New terms/interest rates must be reported to wing HQ if funds are rolled over

28. Savings Accounts • If any units already have savings accounts, a new, separate savings account must be opened at Wing level. • Interest earnings should be allocated. • Statements must be forwarded to Wing HQ.

29. Bill Payment The unit must provide supporting documentation to the wing

30. Expense Authorization • The wing must ensure that the expense has been approved by an appropriate person • The unit should notify the wing of who can approve expenses • This person should be the unit finance officer, the unit commander or a designated finance committee member

31. The wing may pay advances • The advance must be properly approved • Receipts must be provided to the wing after the event • The member will be required to reimburse the wing if the receipts are less than the advance

32. Finance Committee • Approve expenses over $250 • Continue to function and record minutes • Develop a budget • Monitor the income and expenses

33. The Unit’s Role UNIT

35. Reports the Units will receive from Wing • Cash balance report • Profit and loss report • Reports can be sent electronically

36. Reporting Policies • Submit the final CAPF 173-2 within one month of receiving the final bank statement • Include a copy of the final bank statement showing a zero balance • The final transaction should be recorded as an expense with Regions and Wings on the units books

37. End of the Year Reports • After submitting the final CAPF 173-2 and other required documents, what about the end of the Year finance report due to wing? • No more End of Year Finance Reports due to wing or NHQ. • No more Quarterly Finance Reports due from unit to wing.

38. The results • The units can focus on their mission • Consistent financial reporting • All funds and transactions are audited • No annual CAPF 173-2 • Obtain unqualified audit opinion

39. Finance – Supplements, OI and pamphlets. • Currently being reviewed by Wing and this includes: • Bill payment • Expense authorization • Advances • Deposits • Forms • Reports • Procedures for Wing Banker Program in the Wing

40. Unit finance forms • Share • Let the Wing know what forms are working great in your unit. • If your unit has a finance OI that works great – Share. • Wing will let NHQ knows what unit forms and OI’s are “bench marks” for our wing with Wing Banker Program. • We are all part of the same team.

41. Sample forms

42. More sample forms

43. Consolidated Reporting • Civil Air Patrol is just the same as other large companies that have consolidated financial reports. • While there are many units in Civil Air Patrol and fifty-two wings and eight regions. • Only One entity called Civil Air Patrol. • Consolidated Financial Reports vs. individual financial reports. • Example of $100

44. Updates • Recent changes/improvements. • All units in Civil Air Patrol will be using Wing Banker Program within the next three years. • Thanks you, commanders.

45. Questions? • Call -- Wing Finance Officer • Review the WBP Q@A section on the FM web page • Review the Wing Banker Solution Instruction Manual • Review CAPR 173-1 and CAPR 173- 2