# Presentation: 141699

## Wing Banker SolutionConsolidating Unit Finances Into Wing Finances

- C. Warren Vest, Lt Col, CAP
- Director of Finance, Virginia Wing
- Robin M. Vest
- Wing Financial Analyst, National Headquarters
- (Lt Col, CAP)

## Wing Banker Solution

- What is the problem?
- What is the solution?
- What are the advantages and disadvantages?
- What is involved in the implementation?

## At the Unit

- 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, OMB standards, and Congressional reporting
- Problem
- Auditors consider unit funds, taken together, to be material
- Qualified audit opinion because units not audited and not on accrual basis

## Independent Auditors’ Report (Pg. 1)	
Type of reports issued: Qualified
Reason for qualifications: Financial statements do not include the accounts and financial transactions of units below Wings
Note 2, pg. 10 (assets of $4,801,692; revenue of $7,070,052)

- Type of reports issued: ***Qualified***
***Reason for qualifications*****: **Financial statements do not include the accounts and financial transactions of units below Wings
- Note 2, pg. 10 (assets of $4,801,692; revenue of $7,070,052)

- 2005 Financial Audit Opinion and Results

## Wing Banker Solution 

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

## Advantages

- Unit
- Out of the accounting and reporting business
- Unit still manages 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
- Unqualified opinion in national audit

## Disadvantages

- Unit members may resent wing because they can no longer touch and feel their own money
- More work at wing
- In a large wing with units conducting numerous financial transactions, the transition will be more difficult

## Implementation 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 final 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 headquarters

## Implementation at the Unit	

- Maintain unit Finance officer
- Maintain unit Finance Committee
- Unit has to instruct wing
- what bills to pay and should
- continue following the approval
- requirements in CAPR 173-1

## Implementation 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
- This step is the key to the whole process!
- Wing processes all unit transactions
- Units forward all bills and receipts/deposits to wing
- Wing pays all bills from unit funds account at wing
- Wing makes all reports and is audited

## Implementation Steps

- Open new bank account for unit funds
- Create new account in QBPro for bank account
- Create more new accounts in QBPro
- One for each unit
- One for wing headquarters (optional)
- One for “unclaimed deposits”
- Make these subaccounts under the new bank account
**NOTE: You do not need any new liability,**
**capital, income or expense accounts.**

## Receiving a Unit Bill

- Make sure you get adequate documentation
- To identify the unit
- To identify the expense
- Book it normally as an account payable making sure to class it to the unit
- NOTE: If the unit is paying a corporate
- aircraft expense, you cannot class it both
- by N-number and by unit. Class it by unit.

## Receiving a Unit Deposit

- Make sure you get adequate documentation
- To identify the unit
- To identify the income
- Book it normally as account receivable or income received making sure to class it to the unit
- Deposit it in proper unit subaccount
- You cannot mix receipts for different units together in one deposit

## Paying a Unit Bill

- Make sure you have necessary approvals
- Unit, wing, and maybe Finance Committee
- Open bill payment screen
- Select all bills for only one unit
- Select that unit’s subaccount for source of funds
- Close bill payment screen
- Repeat previous step for each unit with bills to pay

## Printing Checks

- On checks to print screen select all checks paying only unit bills
- Load checks for the unit funds bank account in the printer
- Print checks
**NOTE: Your best opportunity to make**
**a mistake is loading the wrong checks**
**into the printer.**

## Reconciling Bank Statement

- You will find a deposit that you know nothing about
- Book it as “Miscellaneous Income”
- New sub-account under acct 5420000 called “Unclaimed Unit Deposits”
- Class it to “VA???” or something indicating unit is unknown
- Credit it to “Unclaimed Deposits” subaccount

## Reconciling Bank Statement

- Proceed with reconciliation in normal manner
**NOTE: All activity in unit subaccounts**
**will roll up into the primary account that**
**matches the bank account.**
- Once you identify your “unclaimed deposit,” either correct original entry or make adjusting journal entry

## Reporting to Units

- Report Navigator
- Accountant & Taxes
- Transaction Detail by Account
- Modify Report
- Filters
- Date (define period of interest)
- Account (select unit subaccounts)
- OK

## Questions?