budgeting & wing banker program – unit commander’s course
TRANSCRIPT
Budgeting & Wing Banker Budgeting & Wing Banker Program – Unit Program – Unit Commander’s CourseCommander’s Course
Objectives:Objectives:
Discuss the importance of a unit budget.Discuss the importance of a unit budget. Determine budget requirements.Determine budget requirements. Unit’s responsibilities.Unit’s responsibilities. Unit’s responsibilities with Wing Banker Unit’s responsibilities with Wing Banker
Program.Program. Wing’s responsibilities to units with Wing Wing’s responsibilities to units with Wing
Banker ProgramBanker Program
Unit Commander’s Unit Commander’s ResponsibilityResponsibility
Finances -- One of your most important Finances -- One of your most important responsibilities.responsibilities.
Ensure that your unit is financially sound.Ensure that your unit is financially sound. Determine your unit’s assets and unit’s Determine your unit’s assets and unit’s
needs.needs. Obtain approval for fund raisingObtain approval for fund raising
Importance of Budgeting Importance of Budgeting at the Unit Levelat the Unit Level
You need to know how much money you You need to know how much money you have to spend.have to spend.
If you have If you have NONO money – you can not money – you can not spend any money spend any money
Plan a budget so that your squadron can Plan a budget so that your squadron can financially meet its goals and missions.financially meet its goals and missions.
Importance of Budgeting Importance of Budgeting – cont.– cont.
When you budget, you When you budget, you balancebalance what you what you have with where you want to be.have with where you want to be.
You determine what you need to meet You determine what you need to meet your objectives.your objectives.
Determining Your Assets Determining Your Assets and Needsand Needs
Assets – Assets – Two types of assetsTwo types of assets
Cash Cash Material AssetsMaterial Assets
Determine what you haveDetermine what you have Once you have determine your assetsOnce you have determine your assets Determine your needsDetermine your needs
Determining Your NeedsDetermining Your Needs
Do you have rent?Do you have rent? What are the utility bills?What are the utility bills? Will the squadron be having any Will the squadron be having any
activities?activities? What other projected expenses will the What other projected expenses will the
unit have? unit have?
Determine the Difference Determine the Difference
Determine the difference between Determine the difference between financial assets and needs for unit.financial assets and needs for unit.
Ok at this stage to want more than you Ok at this stage to want more than you project the unit has. project the unit has.
Take this opportunity to explore options. Take this opportunity to explore options. Options -- raising income and lowering Options -- raising income and lowering
expenses.expenses.
Determining Difference – Determining Difference – Exploring OptionsExploring Options
Look at Look at ALL WAYSALL WAYS the unit is receiving and the unit is receiving and spending money.spending money.
Are you paying too much?Are you paying too much? Is the unit receiving all monies it is entitled to Is the unit receiving all monies it is entitled to
on reimbursements?on reimbursements? Is squadron supplying members, without Is squadron supplying members, without
charge, for items that are costing the unit?charge, for items that are costing the unit? Ask Questions! In regards to where is the Ask Questions! In regards to where is the
money coming from and where is it going to, money coming from and where is it going to, and can this change.and can this change.
Budget & Raising FundsBudget & Raising Funds
Determine how much funds need to be Determine how much funds need to be raised to meet the cash requirements for raised to meet the cash requirements for budgetary requirements.budgetary requirements.
Budget needs to equal = zero – not a Budget needs to equal = zero – not a negative balance.negative balance.
CAPR 173-4 – Fund Raising/DonationsCAPR 173-4 – Fund Raising/Donations
Budget – FundraisingBudget – Fundraising
No matter how you raise funds for your No matter how you raise funds for your unit. unit.
Raise Funds IAW CAPR 173-4 Raise Funds IAW CAPR 173-4 Keep two things in mind.Keep two things in mind.
Budgeting – Fund RaisingBudgeting – Fund Raising
FIRST – You FIRST – You must obtain written must obtain written permission from the wing permission from the wing commander. commander.
As corporate officer of CAP representing As corporate officer of CAP representing the wing, he/she is the agent responsible the wing, he/she is the agent responsible for for ALLALL fund raising activities. fund raising activities.
Budget – FundraisingBudget – Fundraising
SECOND – Make yourself aware of the SECOND – Make yourself aware of the state and local fundraising laws and state and local fundraising laws and regulations.regulations.
This is not Monopoly – You do not get a This is not Monopoly – You do not get a “get out of jail free card”.“get out of jail free card”.
Budget - FundraisingBudget - Fundraising
Certain types of fundraising you Certain types of fundraising you cannot cannot do.do. CAPR 173-4 List these types.CAPR 173-4 List these types. Brainstorm on ideas to raise money.Brainstorm on ideas to raise money. Alternatives to fundraisers – Alternatives to fundraisers –
Cash Donations & ContributionsCash Donations & Contributions GrantsGrants Material Donations (Coordinate with Wing Logistics Material Donations (Coordinate with Wing Logistics
first, IAW CAPR 67-1)first, IAW CAPR 67-1)
Budget - FundraisingBudget - Fundraising
Wing commanders can accept donations Wing commanders can accept donations of property or cash in the amount of of property or cash in the amount of $5000 or less.$5000 or less.
Region commanders can accept Region commanders can accept donations worth between $5000 - donations worth between $5000 - $10,000$10,000
The Executive Director of CAP accepts The Executive Director of CAP accepts donations worth more than $10,000donations worth more than $10,000
Wing Banker Program Wing Banker Program and the Unitand the Unit
Why did NHQ and Wing go to Why did NHQ and Wing go to Wing Banker Program?Wing Banker Program?
In the Beginning…In the Beginning…
CAP has never received an Unqualified CAP has never received an Unqualified Audit Opinion because the funds at the Audit Opinion because the funds at the unit level are not auditedunit level are not audited
The NEC and the BoardThe NEC and the Board
of Governors recommended of Governors recommended
that CAP obtain an that CAP obtain an
unqualified audit opinionunqualified audit opinion
Why is a qualified audit Why is a qualified audit opinion a problem?opinion a problem?
““Qualified” means something positive in Qualified” means something positive in CAP (for ex: qualified check pilot)CAP (for ex: qualified check pilot)
A “qualified” audit opinion is not desirableA “qualified” audit opinion is not desirable An auditor is not able to express an An auditor is not able to express an
“unqualified” audit opinion when “unqualified” audit opinion when significant concerns may exist regarding significant concerns may exist regarding the corporation’s financial informationthe corporation’s financial information
An “unqualified” opinion is most desirableAn “unqualified” opinion is most desirable
Where no one has gone Where no one has gone before!before!
The Wing Banker ProgramThe Wing Banker Program
was endorsed by both was endorsed by both
the NEC and the the NEC and the
Board of GovernorsBoard of Governors
What does it accomplish?What does it accomplish?
It accounts for the funds and activity of all It accounts for the funds and activity of all units at the wing level units at the wing level
Provides greater accountability and Provides greater accountability and reporting of CAP appropriated and reporting of CAP appropriated and corporate fundscorporate funds
An unqualified audit opinion enhances An unqualified audit opinion enhances public trustpublic trust
Benefits to the UnitBenefits to the Unit
Allows units to focus on CAP missionAllows units to focus on CAP mission Decisions and control remain with the unitDecisions and control remain with the unit Unit does not have to file annual 173-2Unit does not have to file annual 173-2 An unqualified audit opinion provides public An unqualified audit opinion provides public
assurance that assets are accounted for and assurance that assets are accounted for and provides squadrons with opportunities to provides squadrons with opportunities to obtain additional funding through grantsobtain additional funding through grants
You are taking our You are taking our money!!money!!
No--The unit still has control of how the No--The unit still has control of how the funds are spentfunds are spent
The wing is acting as the bank, The wing is acting as the bank, accountant and reporteraccountant and reporter
Reports of activity and unit balances will Reports of activity and unit balances will be providedbe provided
Financial Management Web Financial Management Web Site at NHQ has lots of Site at NHQ has lots of
resources availableresources available
Overview of Wing Banker Overview of Wing Banker ProgramProgram
DepositsDeposits Check RequestsCheck Requests Savings AccountsSavings Accounts CDsCDs Other InvestmentsOther Investments ReportsReports Year-End Requirements Year-End Requirements
DepositsDeposits
Units may make their own depositsUnits may make their own deposits Bank dated deposit slip sent to the wingBank dated deposit slip sent to the wing Wing may require all funds to be sent to the Wing may require all funds to be sent to the
wing directlywing directly Cash should not be sentCash should not be sent Checks should be payable to Civil Air PatrolChecks should be payable to Civil Air Patrol Deposit form should indicate the depositor, Deposit form should indicate the depositor,
purpose or account #, check # or cash and purpose or account #, check # or cash and amountamount
Certificate of Certificate of Deposit/Investment Deposit/Investment AccountsAccounts
The unit may maintain the fundsThe unit may maintain the funds The funds must be recorded at the wing levelThe funds must be recorded at the wing level Bank/brokerage statements must be forwarded Bank/brokerage statements must be forwarded
to wing HQto wing HQ Any withdrawals must be properly approved Any withdrawals must be properly approved
and reported to wing HQand reported to wing HQ New terms/interest rates must be reported to New terms/interest rates must be reported to
wing HQ if funds are rolled overwing HQ if funds are rolled over
Savings AccountsSavings Accounts
If any units already have savings If any units already have savings accounts, a new, separate savings accounts, a new, separate savings account must be opened at Wing level. account must be opened at Wing level.
Interest earnings should be allocated.Interest earnings should be allocated. Statements must be forwarded to Wing Statements must be forwarded to Wing
HQ. HQ.
Bill PaymentBill Payment
The unit must provide supporting documentation to the wing
The unit must provide supporting The unit must provide supporting
documentation to the wingdocumentation to the wing
The unit must provide supporting The unit must provide supporting
documentation to the wingdocumentation to the wing
Directly from the UnitDirectly from the UnitDirectly from the UnitDirectly from the Unit Directly from the vendorDirectly from the vendorDirectly from the vendorDirectly from the vendor
Recurring expense authorizationRecurring expense authorizationRecurring expense authorizationRecurring expense authorizationApproved check request formApproved check request formApproved check request formApproved check request form
Expense AuthorizationExpense Authorization
The wing must ensure that the expense The wing must ensure that the expense has been approved by an appropriate has been approved by an appropriate personperson
The unit should notify the wing of who The unit should notify the wing of who can approve expensescan approve expenses
This person should be the unit finance This person should be the unit finance officer, the unit commander or a officer, the unit commander or a designated finance committee memberdesignated finance committee member
The wing may pay The wing may pay advancesadvances
The advance must be properly approvedThe advance must be properly approved Receipts must be provided to the wing Receipts must be provided to the wing
after the eventafter the event The member will be required to The member will be required to
reimburse the wing if the receipts are reimburse the wing if the receipts are less than the advanceless than the advance
Finance CommitteeFinance Committee
Approve expenses over $250Approve expenses over $250 Continue to function and record minutesContinue to function and record minutes Develop a budget Develop a budget Monitor the income and expensesMonitor the income and expenses
The Unit’s RoleThe Unit’s Role
DecisionsDecisions
ControlControl
Finance Finance CommitteeCommittee
UNITUNITUNITUNIT
Pay billsPay billsPay billsPay bills
Reconcile Reconcile checking checking accountaccount
Reconcile Reconcile checking checking accountaccount
Provide Provide reportsreports
Provide Provide reportsreports
Post Post ttransactionsransactions
Post Post ttransactionsransactions
The The WingWingThe The WingWing
Reports the Units will Reports the Units will receive from Wingreceive from Wing
Cash balance reportCash balance report Profit and loss reportProfit and loss report Reports can be sent electronicallyReports can be sent electronically
Reporting PoliciesReporting Policies
Submit the final CAPF 173-2 within one Submit the final CAPF 173-2 within one month of receiving the final bank month of receiving the final bank statementstatement
Include a copy of the final bank Include a copy of the final bank statement showing a zero balancestatement showing a zero balance
The final transaction should be recorded The final transaction should be recorded as an expense with Regions and Wings as an expense with Regions and Wings on the units bookson the units books
End of the Year ReportsEnd of the Year Reports
After submitting the final CAPF 173-2 After submitting the final CAPF 173-2 and other required documents, what and other required documents, what about the end of the Year finance report about the end of the Year finance report due to wing?due to wing?
No more End of Year Finance Reports No more End of Year Finance Reports due to wing or NHQ.due to wing or NHQ.
No more Quarterly Finance Reports due No more Quarterly Finance Reports due from unit to wing.from unit to wing.
The resultsThe results
The units can focus on their missionThe units can focus on their mission Consistent financial reportingConsistent financial reporting All funds and transactions are auditedAll funds and transactions are audited No annual CAPF 173-2No annual CAPF 173-2 Obtain unqualified audit opinionObtain unqualified audit opinion
Finance – Supplements, Finance – Supplements, OI and pamphlets.OI and pamphlets. Currently being reviewed by Wing and this Currently being reviewed by Wing and this
includes:includes: Bill paymentBill payment Expense authorizationExpense authorization AdvancesAdvances DepositsDeposits FormsForms ReportsReports Procedures for Wing Banker Program in the Procedures for Wing Banker Program in the
WingWing
Unit finance formsUnit finance forms
ShareShare Let the Wing know what forms are working Let the Wing know what forms are working
great in your unit.great in your unit. If your unit has a finance OI that works great – If your unit has a finance OI that works great –
Share.Share. Wing will let NHQ knows what unit forms and Wing will let NHQ knows what unit forms and
OI’s are “bench marks” for our wing with Wing OI’s are “bench marks” for our wing with Wing Banker Program.Banker Program.
We are all part of the same team.We are all part of the same team.
Sample formsSample formsCIVIL AIR PATROL
VERDE VALLEY COMPOSITE SQUADRON 205
PAYMENT VOUCHER
TO: FINANCE OFFICER DATE:_________________ REQUESTED BY:______________________ _______________________ Print Name Signature Required FOR: ________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
Note: APPROVAL BY FINANCE COMMITTEE MEMBER IS REQUIRED PRIOR TO SPENDING FUNDS PAYMENT WILL BE MADE AFTER PAYMENT VOUCHER, WITH RECEIPTS OR INVOICES ATTACHED, IS APPROVED BY TWO MEMBERS OF THE FINANCE COMMITTEE. FINANCE COMMITTEE MEMBERS: Capt Justin Case, 555-1111 – Finance Committee Chairman 1Lt George Left, 444-2222 – Finance Officer Lt Col Rosie Picture, 333-1111 – Asst Finance Officer Maj A. Payne, 555-2222, Finance Member
PAYMENT APPROVED BY:___________________________________________________________ Finance Committee Member ___________________________________________________________________________ Finance Committee Member
DATE PAID:______________ CHECK NO:_____________ CHECK AMOUNT:____________________ ACCOUNT NUMBER:_____________________________
Consolidated ReportingConsolidated Reporting
Civil Air Patrol is just the same as other large Civil Air Patrol is just the same as other large companies that have consolidated financial companies that have consolidated financial reports.reports.
While there are many units in Civil Air Patrol While there are many units in Civil Air Patrol and fifty-two wings and eight regions.and fifty-two wings and eight regions.
Only One entity called Civil Air Patrol.Only One entity called Civil Air Patrol. Consolidated Financial Reports vs. individual Consolidated Financial Reports vs. individual
financial reports.financial reports. Example of $100Example of $100
UpdatesUpdates
Recent changes/improvements.Recent changes/improvements. All units in Civil Air Patrol will be using All units in Civil Air Patrol will be using
Wing Banker Program within the next Wing Banker Program within the next three years.three years.
Thanks you, commanders.Thanks you, commanders.
Questions?Questions?
Call -- Wing Finance OfficerCall -- Wing Finance Officer Review the WBP Q@A section on the Review the WBP Q@A section on the
FM web pageFM web page Review the Wing Banker Solution Review the Wing Banker Solution
Instruction ManualInstruction Manual Review CAPR 173-1 and CAPR 173- 2Review CAPR 173-1 and CAPR 173- 2