Virginia Wing's "Wing Bank Solution"

[lordmonar]

You know, SAR-EMT1 has a good point.  I have had scout and cub packs as a scout master and cub master and the money we collected we kept and there was really no accounting to any national entity.  Now, the question is, how do they receive money from the United Fund, etc., with all of the individual cubpacks and scout troops running around with $1,000.00 to $5,000.00 in unaudited accounts?   Why did we (CAP) have to get an unqualified audit to get money from donors when the scouting organizations don't?  Or was this just an excuse?  the main problem as I see it is that the new Wing Banking Solution forces squadrons to maintain an unauthorized "slush" fund in violation of the Regs or members to extend credit to the squadron and await for reimbursement from Wing.

First off.  Individual packs and troops do not get direct operational funding from council or national level....so the council can produce an unqualified audit just by showing the donor their books.  Pack and troop funding is the property of the pack and/or troop not nationals or the local councils.  CAP could do this...but it would mean that ALL of a CAP unit's activities would have to be self funded.

Secondly.....just because the system may be slow does not "force" anyone to circumvent that system.  There is very little going on that would require a squadron to put out money "right now" vice waiting the 1-2 weeks it takes for the wing to cut a check.

[RiverAux]

Every CAP unit has a different federal EIN.  I have no clue as to whether this means anything from an auditing point of view. 

[lordmonar]

Every CAP unit has a different federal EIN.  I have no clue as to whether this means anything from an auditing point of view. 

1. Federal Tax ID Number. The Civil Air Patrol Employer Identification Number (EIN) 75-6037853 must be used to establish and maintain all bank accounts.

[RiverAux]

Every unit still has their own EIN identified in the CAPWATCH database so this must be a recent change. 

[SarDragon]

Which table is it located in?

[RiverAux]

Organization. 

There still may be other local uses for the EIN other than for bank accounts though I can't think of one at the moment. 

[lordmonar]

I don't know what that is about....the generic CAP EIN was in the last version of 173-1....Maybe they got the EINs for later use but they are not ready to issue them. 

Good thing, I'm not finance. 

[RiverAux]

They've been in CAPWATCH for Loong time and I remember having to request my unit's EIN for something about 6 years ago. 

[lordmonar]

Well we learn something everyday.

Here is just another example of the regs saying one thing and something else going on in the back ground.

So...the question is.....if I were to open a new account (and the WBP has not been implemented) or a donor asks for my EIN for tax purposes...which EIN should I be using.  The one the reg says to use or the one CAPWATCH says is assigned to my unit?

[SAR-EMT1]

The unit EIN , unless of course the donor wishes the gift to be used on a stategic level.

[SarDragon]

Organization. 

There still may be other local uses for the EIN other than for bank accounts though I can't think of one at the moment. 

What wing are you in? I can't find a single instance of an Organization table in any of the CAPWATCH downloads I have.

[SarDragon]

The unit EIN , unless of course the donor wishes the gift to be used on a stategic level.

Then you are responsible at the unit level for filing the Form 990 with the IRS. If you use the EIN from the 173-1, NHQ takes care of that.

[RiverAux]

You may require Wing level access to get the Organization table (just guessing).  It acually lists all the units in CAP, their names, charter numbers, and their EINs. 

[NIN]

Every CAP unit has a different federal EIN.  I have no clue as to whether this means anything from an auditing point of view. 

About a bazillion years ago (6? 8? Something like that) we all had to go out and get individual EINs.

That lasted about a year.  They tracked it in CAPWATCH.  It remains as legacy data.

[lordmonar]

The unit EIN , unless of course the donor wishes the gift to be used on a stategic level.

And where is the guidance for that??

Do you see my point?

[SAR-EMT1]

 Tax code, and I would think, common sense; would dictate that the individual units EIN would go a long way in earmarking said funds to use by that unit and therefore at a local level. The CAPwide EIN dictates that the funds be used by the NHQ personnel or other corporate Officers.

[lordmonar]

Tax code, and I would think, common sense; would dictate that the individual units EIN would go a long way in earmarking said funds to use by that unit and therefore at a local level. The CAPwide EIN dictates that the funds be used by the NHQ personnel or other corporate Officers.

Sorry but TAX CODE and Common sense are mutually exclusive terms.

[SarDragon]

Well, I found out some more info on the subject while looking through the current and most recently superceded versions of the CAPR 20-3.

The 1 May '98 version adds the requirement for units requesting a charter to obtain a Federal EIN.

The current 8 Nov '02 version specifically deletes the requirement.

"SUMMARY OF CHANGES
This revision deletes the requirement for each new unit to obtain an Internal Revenue Service Employer Identification Number. "

[brasda91]

Got a CC e-mail from our Wing Commander asking if the squadron commander received the Wing Banker Program packet.  Guess we're in line to begin the program........