NC Wing Proposal to Consolidate All Unit Finances Into Wing Finances Larry J. Ragland, Col., CAP Commander Rich London, Capt., CAP Finance Officer

At the Unit Current Situation –Units maintain own bank accounts and finance records –Units submit own financial reports to Wing –Units operate iaw CAPR on cash basis –Units depend on volunteer finance officer Problem –Poor compliance because of misunderstandings of requirements and inadequate time and training

At the Wing Situation –Wing operates iaw CAPR on accrual basis –Wing consolidates all unit financial reports –Wing subject to audit each year –Wing has Administrative Assistant to help on daily basis Problem –Inconsistency and inaccuracy in unit reports

At National Situation –National operates on accrual basis –National consolidates Wing reports –National subject to audit and Congressional reporting Problem –Qualified audit opinion because units not audited and not on accrual basis

NC Wing Proposal Bring all unit financial transactions to Wing Receiving and disbursing of funds Accounting Reporting

Methodology at the Unit 1.Each unit writes a check to Wing for its entire bank balance and then closes bank account(s) 2.Each unit closes its books and submits its report for the year on CAPF Thence each unit forwards bills, payment vouchers, and receipts to Wing as received Units can be provided with deposit slips in order to make deposit and then must provide detail to Wing finance officer

Methodology at the Wing 1.Unit funds deposited in separate bank account from main Wing account(s) –May be at the same bank that Wing uses 2.Wing classes each transaction with unit designator in Quickbooks Pro 3.Wing processes all unit transactions –Units forward all bills and receipts to Wing –Wing pays all bills from consolidated bank account and provides squadrons with report of transactions 4.Wing makes all reports and is audited

Who Controls the Money? The Squadron does. The Wing writes the checks based on disbursement orders from the Squadrons’ Finance Officer, Commander and/or Finance Committee.

Advantages Unit –Out of the accounting and reporting business –Still “manage” own funds by determining own expenditures and instructing Wing Wing –All accounting and reporting accomplished by Wing iaw CAPR in lieu of units using CAPR National –As close to accrual accounting for units as you can get –Wing audit includes all unit transactions Unqualified opinion in Wing audit Step toward unqualified opinion in national audit

Discussion Point Bringing unit finances to Wing will increase Wing’s work load NC Wing has a very capable Administrative Assistant working full time who processes incoming transactions on a daily basis Work load will actually decrease because of automatic reporting in QuickBooks that is a natural byproduct of handling all transactions at Wing.

Timing In order for this to work, it must be implemented at the beginning of the fiscal year Time is of the essence if we are to start on October 1, 2006 for FY’07

Timing National is moving to have all Wings centralize their finances. NC Wing should show their leadership by becoming the next Wing in CAP to improve financial reporting by consolidating finances at the Wing level.

Questions?