Wing Banker Program In the Beginning

Wing Banker Program

In the Beginning… • CAP has never received an Unqualified Audit Opinion because the funds at the unit level are not audited • The NEC and the Board of Governors recommended that CAP obtain an unqualified audit opinion

Why is a qualified audit opinion a problem? • “Qualified” means something positive in CAP (for ex: qualified check pilot) • A “qualified” audit opinion is not desirable • An auditor is not able to express an “unqualified” audit opinion when significant concerns may exist regarding the corporation’s financial information • An “unqualified” opinion is most desirable

Where no one has gone before! • The Wing Banker Program was endorsed by both the NEC and the Board of Governors

What does it accomplish? • It accounts for the funds and activity of all units at the wing level • Provides greater accountability and reporting of CAP appropriated and corporate funds • An unqualified audit opinion enhances public trust

Benefits to the Unit • • Allows units to focus on CAP mission Decisions and control remain with the unit Unit does not have to file annual 173 -2 An unqualified audit opinion provides public assurance that assets are accounted for and provides squadrons with opportunities to obtain additional funding through grants

Do we have to do it? YES!

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

We are motivated! How do we get started? Start Here

Tell me more!! • • • Plan and timetable New bank accounts Quick. Books set-up Unit instructions The unit’s role Wing procedures

The Banking Plan! • How and when should the units be notified? • Which bank should we use? • Do we need to open a checking and savings account? • When should we order new checks and deposit slips? • How and when should deposit slips be distributed to the units? • Who will create the new Check Request and Deposit Remittal forms and how will they be distributed?

The Accounting Plan! • When will the necessary sub-accounts and classes be created in Quick. Books®? • Who will verify that all accounts have been closed and final CAPF 173 -2’s have been received? • Who will develop and write the procedures for processing income and expenses, as well as periodic reporting to the units? • If units have certificates of deposit or investment accounts should they be maintained at the current bank or moved to another bank? • Who will be the authorized requestors and approvers at each unit?

Checking Accounts • Wing should open a new checking account. • It is recommended the wing open the least number of banks that will be necessary. • New checks and deposit slips must be ordered. • Signature cards should use the same members authorized on the other wing checking accounts.

Savings Accounts • Should we open a separate savings account? • If any units already have savings accounts, a new, separate savings account must be opened at Wing level. • Interest earnings should be allocated.

Certificate of Deposit/Investment Accounts • The unit may maintain the funds • The funds must be recorded at the wing level • Bank/brokerage statements must be forwarded to wing HQ • Any withdrawals must be properly approved and reported to wing HQ • New terms/interest rates must be reported to wing HQ if funds are rolled over

Initial QB Set-up • Create an account for the new unit checking account and any CD’s or savings accounts • Create sub-accounts under the unit checking account for each unit • Create classes for each unit • Create aircraft and vehicle sub-classes

Wing Policy for the Units • The wing should develop instructions for the units on how to implement the Wing Banker Solution • These instructions should be published as a policy.

Banking Policy • Determine the deadline for closing bank accounts • Move the funds to the unit account at the wing before year end • Move savings funds to the wing separately from checking funds • Unit finance committee should decide on how to handle investments and CD’s • No petty cash!

Reporting 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

Accounting Policies • • Bill payment Expense authorization Advances Deposits

Bill Payment The unit must provide supporting documentation to the wing Directly from the Unit Directly from the vendor Approved check request form Recurring expense authorization

Expense Authorization • The wing must ensure that the expense has been approved by an appropriate person • The unit should notify the wing of who can approve expenses • This person should be the unit finance officer, the unit commander or a designated finance committee member

The wing may pay advances • The advance must be properly approved • Receipts must be provided to the wing after the event • The member will be required to reimburse the wing if the receipts are less than the advance

Deposits • Units may make their own deposits • Bank dated deposit slip sent to the wing • Wing may require all funds to be sent to the wing directly • Cash should not be sent • Checks should be payable to Civil Air Patrol • Deposit form should indicate the depositor, purpose or account #, check # or cash and amount

The Unit’s Role Finance Committee Decisions UNIT Control

Finance Committee • • Approve expenses over $250 Continue to function and record minutes Develop a budget Monitor the income and expenses

Unit Reports • Cash balance report • Profit and loss report • Reports can be sent electronically

Post transactions Pay bills The Wing Reconcile checking account Provide reports

The results • • • The units can focus on their mission Consistent financial reporting All funds and transactions are audited No annual CAPF 173 -2 Obtain unqualified audit opinion

Updates • Recent changes/improvements

Questions? • Call your WFA • Review the WBP Q@A section on the FM web page • Review the Wing Banker Solution Instruction Manual • Review CAPR 173 -1 and CAPR 173 - 2