Keith Barnhart, WFA Functions of a Wing Finance Committee

Primary Roles  Provide management and oversight of wing and unit funds  Use financial resources prudently to successfully accomplish CAP’s missions  Protect CAP assets  Establish a positive tone at the top

Stewardship of CAP’s Resources and Assets CAPR 1-1 para 3a: All members shall strive for effective accounting/reporting systems, internal controls, and take measures to ensure subordinate staff members are competent to perform their duties. All CAP members, especially commanders at all levels, will act in a fiduciary capacity toward the organization and its members.

Areas of Responsibility Ensure the wing is in compliance with all financial, regulatory and reporting requirements Budgeting Financial planning Financial reporting Risk Management Establish and monitor internal controls Assist and supervise subordinate units

Budgeting and Financial Planning Develop an annual balanced operating budget with input from the wing staff Determine budget levels (referred to as a “class” in QuickBooks ® ): by entire wing, by department, by activities, etc. Approve the budget Ensure the budget is entered into QuickBooks ® by 1 October of each year Monitor actual to budget amounts at least quarterly--revise if necessary to maintain a balanced budget Set financial goals and establish funding mechanisms to achieve them

Reporting Determine what and how much detail should be in the reports Actual transaction postings should match the budgeted categories and classes: establish procedures so the WA knows where each transaction should be classed Review wing financial reports monthly Ensure that CAP required financial reports are filed timely Report known or suspected fraud or irregularities to NHQ

CAP Required Financial Reports ReportDue Unit Cash ReportMonthly to Units Unit Budget to Actual ReportQuarterly to Units Fixed Asset PurchasesAs Necessary RafflesBefore the first sale of any ticket Grant ReportingAs Necessary CAPF 174-1: Unit Contributed Facility Worksheet 1 November each year CAPF 171: Unit Commander’s Financial Disclosure Statement 1 November each year Information for 1099sEach January

Risk Management What can go wrong? Fraud Use of funds/resources for purposes other than serving CAP’s missions Improper use of restricted funds Failed Fundraisers Not collecting amounts due to CAP No or unacceptable documentation Transactions not recorded or recorded improperly Lost or destroyed equipment

Risk Management What is the chance it will happen? What will be the impact on the wing? What can be done to reduce the risk? Is the reduced risk acceptable?

General Internal Controls Create, approve and update procedures to help ensure assets are protected Ensure that procedures are followed Establish separation of duties

CAPR Finance Committee Procedures  Meet at least once per quarter and maintain finance committee meeting minutes in writing  Complete quarterly Internal Financial Reviews within 45 days after the quarter  Review and evaluate the most recent Internal Financial Review--document corrective actions in the finance committee meeting minutes  Approve all expenditures in excess of $1,500 through Sertifi  Approve all credit card statements using Sertifi

CAPR Finance Committee Procedures  Ensure bank account signatures are current  Review and sign bank reconciliations  Authorize transfers of funds between accounts  Authorize and approve business meals and entertainment expenses  Determine if deactivated unit funds are to be held at wing HQ or transferred to another unit