“citizens serving communities”1 wing banker program consolidating unit finances into wing...

“Citizens Serving Communities” 11

Wing Banker ProgramWing Banker Program

Consolidating Unit FinancesConsolidating Unit FinancesInto Wing FinancesInto Wing Finances

C. Warren Vest, Lt Col, CAPC. Warren Vest, Lt Col, CAP

Director of Finance, Virginia WingDirector of Finance, Virginia Wing

22“Citizens Serving Communities”

Wing Banker SolutionWing Banker Solution What is the problem?What is the problem? What is the solution?What is the solution? What are the advantages and What are the advantages and

disadvantages?disadvantages? What is involved in the implementation?What is involved in the implementation? How are we doing so far?How are we doing so far?


At the UnitAt the Unit SituationSituation

Units maintain own bank accounts and finance Units maintain own bank accounts and finance recordsrecords

Units submit own financial reports to wingUnits submit own financial reports to wing Units operate iaw CAPR 173-1 on cash basisUnits operate iaw CAPR 173-1 on cash basis Units depend on volunteer finance officerUnits depend on volunteer finance officer

ProblemProblem Poor compliance because of misunderstandings of Poor compliance because of misunderstandings of

requirements and inadequate time and trainingrequirements and inadequate time and training


At the WingAt the Wing SituationSituation

Wing operates iaw CAPR 173-2 on accrual Wing operates iaw CAPR 173-2 on accrual basisbasis

Wing consolidates all unit financial reportsWing consolidates all unit financial reports Wing subject to audit each yearWing subject to audit each year Wing has Administrative Assistant to help on Wing has Administrative Assistant to help on

daily basisdaily basis ProblemProblem

Inconsistency and inaccuracy in unit reportsInconsistency and inaccuracy in unit reports


At NationalAt National SituationSituation

National operates on accrual basisNational operates on accrual basis National consolidates wing reportsNational consolidates wing reports National subject to audit, OMB standards, and National subject to audit, OMB standards, and

Congressional reportingCongressional reporting ProblemProblem

Auditors consider unit funds, taken together, Auditors consider unit funds, taken together, to be materialto be material

Qualified audit opinion because units not Qualified audit opinion because units not audited and not on accrual basisaudited and not on accrual basis


Independent Auditors’ Report Independent Auditors’ Report (Pg. 1)(Pg. 1) Type of reports issued: Type of reports issued: QualifiedQualified

Reason for qualificationsReason for qualifications: : Financial Financial statements do not include the accounts and statements do not include the accounts and financial transactions of units below Wingsfinancial transactions of units below Wings

Note 2, Note 2, pgpg. 10 (assets of $4,801,692; revenue of . 10 (assets of $4,801,692; revenue of $7,070,052)$7,070,052)

2005 Financial Audit2005 Financial Audit Opinion and ResultsOpinion and Results


Wing Banker Program Wing Banker Program

Bring all unit financialBring all unit financial

transactions to wingtransactions to wing

Receiving and disbursing of fundsReceiving and disbursing of funds

AccountingAccounting

ReportingReporting


AdvantagesAdvantages UnitUnit

Out of the accounting and reporting businessOut of the accounting and reporting business Unit still manages own funds by determining own expenditures Unit still manages own funds by determining own expenditures

and instructing wingand instructing wing WingWing

All accounting and reporting accomplished by wing iaw CAPR All accounting and reporting accomplished by wing iaw CAPR 173-2 in lieu of units using CAPR 173-1173-2 in lieu of units using CAPR 173-1

NationalNational As close to accrual accounting for units as you can getAs close to accrual accounting for units as you can get Wing audit includes all unit transactionsWing audit includes all unit transactions

• Unqualified opinion in wing auditUnqualified opinion in wing audit• Unqualified opinion in national auditUnqualified opinion in national audit


DisadvantagesDisadvantages Unit members may resent wing because Unit members may resent wing because

they can no longer touch and feel their they can no longer touch and feel their own moneyown money

More work at wingMore work at wing In a large wing with units conducting In a large wing with units conducting

numerous financial transactions, the numerous financial transactions, the transition will be more difficulttransition will be more difficult


Implementation at the UnitImplementation at the Unit

Each unit writes a check to wing for its entire bank Each unit writes a check to wing for its entire bank balance and then closes bank account(s)balance and then closes bank account(s)

Each unit closes its books and submits its final Each unit closes its books and submits its final report for the year on CAPF 173report for the year on CAPF 173

Thence each unit forwards bills, payment Thence each unit forwards bills, payment vouchers, and receipts to wing as receivedvouchers, and receipts to wing as received

• Units can be provided with deposit slips in order to Units can be provided with deposit slips in order to make deposit and then must provide detail to wing make deposit and then must provide detail to wing headquartersheadquarters


Implementation at the UnitImplementation at the Unit

Maintain unit Finance officerMaintain unit Finance officer Maintain unit Finance CommitteeMaintain unit Finance Committee

Unit has to instruct wingUnit has to instruct wing

what bills to pay and shouldwhat bills to pay and should

continue following the approvalcontinue following the approval

requirements in CAPR 173-1requirements in CAPR 173-1


Implementation at the WingImplementation at the WingUnit funds deposited in separate bank account Unit funds deposited in separate bank account

from main wing account(s)from main wing account(s) May be at the same bank that wing usesMay be at the same bank that wing uses

Wing classes each transaction with unit designator Wing classes each transaction with unit designator in QuickBooks Proin QuickBooks Pro

This step is the key to the whole process!This step is the key to the whole process!

Wing processes all unit transactionsWing processes all unit transactions Units forward all bills and receipts/deposits to wingUnits forward all bills and receipts/deposits to wing Wing pays all bills from unit funds account at wingWing pays all bills from unit funds account at wing Wing makes all reports and is auditedWing makes all reports and is audited


Implementation StepsImplementation Steps Open new bank account for unit fundsOpen new bank account for unit funds Create new account in QBPro for bank accountCreate new account in QBPro for bank account Create new subaccounts in QBProCreate new subaccounts in QBPro

One for each unitOne for each unit One for wing headquarters (optional)One for wing headquarters (optional) One for “unclaimed deposits”One for “unclaimed deposits” Make these subaccounts under the new bank accountMake these subaccounts under the new bank account

NOTE: You do not need any new liability,NOTE: You do not need any new liability,

capital, income or expense accounts.capital, income or expense accounts.


Receiving a Unit BillReceiving a Unit Bill Make sure you get adequate Make sure you get adequate

documentationdocumentation To identify the unitTo identify the unit To identify the expenseTo identify the expense

Book it normally as an account payable Book it normally as an account payable making sure to class it to the unitmaking sure to class it to the unit

NOTE: If the unit is paying a corporateNOTE: If the unit is paying a corporateaircraft expense, you cannot class it bothaircraft expense, you cannot class it bothby N-number and by unit. Class it by unit.by N-number and by unit. Class it by unit.


Receiving a Unit DepositReceiving a Unit Deposit Make sure you get adequate Make sure you get adequate

documentationdocumentation To identify the unitTo identify the unit To identify the incomeTo identify the income

Book it normally as account receivable or Book it normally as account receivable or income received making sure to class it to income received making sure to class it to the unitthe unit

Deposit it in proper unit subaccountDeposit it in proper unit subaccount You cannot mix receipts for different units You cannot mix receipts for different units

together in one deposittogether in one deposit


Paying a Unit BillPaying a Unit Bill

Make sure you have necessary approvalsMake sure you have necessary approvals Unit , including Unit Finance Committee if over $250Unit , including Unit Finance Committee if over $250

Open bill payment screenOpen bill payment screen Select all bills for only one unitSelect all bills for only one unit Select that unit’s subaccount for source of fundsSelect that unit’s subaccount for source of funds Close bill payment screenClose bill payment screen

Repeat previous step for each unit with bills to Repeat previous step for each unit with bills to paypay


Printing ChecksPrinting Checks

On “checks to print” screen select all On “checks to print” screen select all checks that pay only unit billschecks that pay only unit bills

Load checks for the unit funds bank Load checks for the unit funds bank account in the printeraccount in the printer

Print checksPrint checks

NOTE: Your best opportunity to makeNOTE: Your best opportunity to makea mistake is loading the wrong checksa mistake is loading the wrong checks

into the printer.into the printer.


Reconciling Bank StatementReconciling Bank Statement You will find a deposit that you know nothing You will find a deposit that you know nothing

aboutabout Book it as “Miscellaneous Income”Book it as “Miscellaneous Income”

New sub-account under acct 5420000 called New sub-account under acct 5420000 called “Unclaimed Unit Deposits”“Unclaimed Unit Deposits”

Class it to “VA???” or something indicating unit Class it to “VA???” or something indicating unit is unknownis unknown

Credit it to “Unclaimed Deposits” subaccountCredit it to “Unclaimed Deposits” subaccount


Reconciling Bank StatementReconciling Bank Statement Proceed with reconciliation in normal Proceed with reconciliation in normal

mannermannerNOTE: All activity in unit subaccountsNOTE: All activity in unit subaccountswill roll up into the lead account thatwill roll up into the lead account that

matches the bank account.matches the bank account.

Once you identify your “unclaimed Once you identify your “unclaimed deposit,” either correct original entry or deposit,” either correct original entry or make adjusting journal entrymake adjusting journal entry


Unit ReportUnit Report


How Are We Doing?How Are We Doing? Virginia Wing received approval to try the Virginia Wing received approval to try the

program on an “experimental” basis in program on an “experimental” basis in August 2005 and started the transition on August 2005 and started the transition on September 1, 2005September 1, 2005

All Virginia Wing units were in the program All Virginia Wing units were in the program by the end of FY 2006by the end of FY 2006

Virginia Wing was audited by Wilson Price Virginia Wing was audited by Wilson Price for FY 2006 and received an unqualified for FY 2006 and received an unqualified opinion that included all unit funds opinion that included all unit funds


Other WingsOther Wings Originally the transition was planned to Originally the transition was planned to

incorporate all wings over three years, FY 2007 incorporate all wings over three years, FY 2007 through FY 2009through FY 2009

Numerous wings volunteered to transition earlyNumerous wings volunteered to transition early By June 4, 2007 twenty-four wings (46%) had By June 4, 2007 twenty-four wings (46%) had

begun the transitionbegun the transition All wings are now expected to complete the All wings are now expected to complete the

transition by the end of FY 2007, two years transition by the end of FY 2007, two years earlier than originally plannedearlier than originally planned


Wing Action ItemsWing Action Items Already accomplished (31 July 2007)Already accomplished (31 July 2007)

Open bank account(s) for unit fundsOpen bank account(s) for unit funds Create checking/savings subaccounts in Create checking/savings subaccounts in

QBProQBPro Create classes in QBProCreate classes in QBPro Distribute forms, deposit slips, procedures, Distribute forms, deposit slips, procedures,

etc.etc. Answer units’ questionsAnswer units’ questions


Unit Action ItemsUnit Action Items Write last checks to vendors – 15 August Write last checks to vendors – 15 August

20072007 Deposit or transfer remaining funds to Deposit or transfer remaining funds to

wing – 31 August 2007wing – 31 August 2007 Submit authorized approval list and Submit authorized approval list and

policies to wing – 31 August 2007policies to wing – 31 August 2007 Submit zero balance bank statement(s) to Submit zero balance bank statement(s) to

wing along with final CAPF 173-2 wing along with final CAPF 173-2 – 31 October 2007– 31 October 2007


Questions?Questions?

“citizens serving communities”1 wing banker program consolidating unit finances into wing...

Documents

wing iaw capr

large wing

unit reportscitizens

unit financialtransactions

uniteach unit

bank accountseach unit

wing auditunqualified

financial audit opinion