NC Wing Proposal to Consolidate All Unit Finances Into Wing Finances

1
NC Wing Proposal to Consolidate All Unit Finances
Into Wing Finances

• Larry J. Ragland, Col., CAP
• Commander
• Rich London, Capt., CAP
• Finance Officer

2
At the Unit

• Current Situation
• Units maintain own bank accounts and finance
  records
• Units submit own financial reports to Wing
• Units operate iaw CAPR 173-1 on cash basis
• Units depend on volunteer finance officer
• Problem
• Poor compliance because of misunderstandings of
  requirements and inadequate time and training

3
At the Wing

• Situation
• Wing operates iaw CAPR 173-2 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

4
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

5
NC Wing Proposal

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

6
Methodology at the Unit

• Each unit writes a check to Wing for its entire
  bank balance and then closes bank account(s)
• Each unit closes its books and submits its report
  for the year on CAPF 173
• 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

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Methodology at the Wing

• Unit funds deposited in separate bank account
  from main Wing account(s)
• May be at the same bank that Wing uses
• Wing classes each transaction with unit
  designator in Quickbooks Pro
• 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
• Wing makes all reports and is audited

8
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.

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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 173-2 in lieu of units using CAPR 173-1
• 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

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Discussion Point

• Bringing unit finances to Wing will increase
  Wings 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.

11
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 FY07

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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.

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Questions?