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

Do we have to do it?Do we have to do it?

YES!YES!YES!YES!

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:_____________________________

More sample formsMore sample forms

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