# Presentation: 162593

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

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

## 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

## 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

## 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

## NC Wing Proposal

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

## 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

## 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

## 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.

## 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

## Discussion Point

**Bringing unit finances to Wing will increase Wing’s 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.

## 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 FY’07

## 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.

## Questions?