Welcome toWelcome to

““How to efficiently and correctly How to efficiently and correctly process your unit’s finances”process your unit’s finances”

Subtitled:Subtitled:

““I’m from Wing and I’m here to help”I’m from Wing and I’m here to help”

Captain Rich LondonCaptain Rich London

NC Wing Finance OfficerNC Wing Finance Officer

rlondon@servman.comrlondon@servman.com

Goals:Goals:

Explain why accurate financial reporting is so Explain why accurate financial reporting is so importantimportant

Explain how the “Wing Banker Solution” Explain how the “Wing Banker Solution” worksworks

Explain the procedures for depositing and Explain the procedures for depositing and withdrawing moneywithdrawing money

Explain why I am on your sideExplain why I am on your side

Understand this:Understand this:

We are all volunteers

Advantage:Advantage:

Usually passionate about helping

Disadvantages:Disadvantages:

• Usually have little spare time

• Must WANT to follow the rules; can’t be forced

A little background:A little background:

CAP nationally reports to Congress CAP nationally reports to Congress and the Air Forceand the Air Force

(Think of them as our parents)(Think of them as our parents)

The role of a parent:The role of a parent:

Set rules and expectationsSet rules and expectations

A parent’s expectations regarding A parent’s expectations regarding money:money:

Spend it wiselySpend it wisely

Be accountableBe accountable

We seek missions from Homeland We seek missions from Homeland Security and other Federal and Security and other Federal and

State agenciesState agencies

(Think of them as our customers)(Think of them as our customers)

What does financial reporting What does financial reporting have to do with our customers?have to do with our customers?

Think about how you choose a service Think about how you choose a service company to install or repair something for company to install or repair something for you.you.

Questions you ask yourself:Questions you ask yourself:

Are they qualified?Are they qualified?

Can they be trusted?Can they be trusted?

How does that apply to CAP How does that apply to CAP finances?finances?

First our obligation to our “parents”:First our obligation to our “parents”:

Congress and the Air Force expect us Congress and the Air Force expect us to spend our money wisely and be to spend our money wisely and be accountable in our reporting.accountable in our reporting.

Our obligation to our “customers”:Our obligation to our “customers”:

Are we qualified?Are we qualified?

Can we be trusted?Can we be trusted?

Why are we having this discussion?Why are we having this discussion?

Help the Wing accurately report the units’ financial status to National so our “parents” and “customers” will know what our resources are and know that we can be trusted with their money.

This requires an “Unqualified Audit”This requires an “Unqualified Audit”

Why haven’t we been able to get an Why haven’t we been able to get an Unqualified Audit?Unqualified Audit?

• The units conduct their finances on a Cash basis, the Wings and National are on an Accrual basis.

• The units do not file timely or accurate financial reports. (47% of units still haven’t filed their Year End 2006 NCWGF 37)

The solution:The solution:

Have the full-time Wing Administrator Have the full-time Wing Administrator handle the day to day accounting chore of handle the day to day accounting chore of posting the deposits and writing the checks posting the deposits and writing the checks – UNDER THE DIRECTION OF THE UNITS’ – UNDER THE DIRECTION OF THE UNITS’ FINANCE COMMITTEE.FINANCE COMMITTEE.

What does it accomplish?What does it accomplish?

It accounts for the funds and activity It accounts for the funds and activity of all units at the wing level of all 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 An unqualified audit opinion enhances public trustenhances public trust

Finances are an emotional topicFinances are an emotional topic

Don’t mess with people’s money!Don’t mess with people’s money!

Debunking some rumors:Debunking some rumors:

• The Wing wants to take our money.

• The Wing can’t be trusted with the money.

• Our Squadron won’t be able to get a check when we need one.

• This will cause more work for Wing.

Benefits to the UnitBenefits to the Unit

• Allows units to focus on CAP mission

• Decisions and control remain with the unit

• Unit does not have to file 173-2

• An unqualified audit opinion will be a catalyst for additional missions for squadrons nation wide

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

YES!YES!YES!YES!

You are taking our money!!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

How does the Wing Banker Solution work?How does the Wing Banker Solution work?

Unit sends a final year end report (NCWGF 37) Unit sends a final year end report (NCWGF 37) (available on the Wing web site)(available on the Wing web site)

Unit either sends a check to Wing or makes a deposit Unit either sends a check to Wing or makes a deposit directly and then files NCWGF 36directly and then files NCWGF 36

Unit sends properly signed check request (NCWGF Unit sends properly signed check request (NCWGF 35) to Wing by Wednesday to have check mailed out 35) to Wing by Wednesday to have check mailed out on Friday.on Friday.

Advantages to Unit Finance Officer:Advantages to Unit Finance Officer:

• No longer needs to complete quarterly or annual finance reports

• No longer needs to write and mail checks to vendors

Reporting PoliciesReporting 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

Questions?Questions?