Audit Reports on CAP Website

[FW]

Copies of the official audit report  for the last 3 years are now on the "Gocivilairpatrol.com" website.  They include the "unaudited" units below wing level.  When this year's audit is completed, the report will include the "audited" units below wing level.  It will be the first time our audit will be this inclusive and completely "unqualified".  

[NIN]

Copies of the official audit report  for the last 3 years are now on the "Gocivilairpatrol.com" website.  They include the "unaudited" units below wing level.  When this year's audit is completed, the report will include the "audited" units below wing level.  It will be the first time our audit will be this inclusive and completely "unqualified".  

Well, we hope "unqualified."   If something else shows, that may require "qualification" of the audit. 

But yeah, lets hope that all this mucking around with Wing Banker actually achieves one of its intended effects, the magical "unqualified audit."

[lordmonar]

I found it!

[davidsinn]

Could someone explain to use working stiffs what the qualified and unqualified audits mean in layman's terms? Also why it's a "Good Thing."

[jimmydeanno]

QUALIFIED AUDIT: An audit report in which some qualification of the financial statements is required because the auditor feels there is a limitation on the scope of the audit examination or because the auditor disagrees with the treatment or disclosure of a matter in the financial statements.

In short, we can't account for all our money so people who donate to us don't know what we actually have or that we keep track of our money.  Most people don't like donating to organizations that don't disclose their financial situations (or rather don't even know it.)

UNQUALIFIED AUDIT: An acceptable audit, indicating that the agency is in opinion compliance with generally accepted accounting principles.

In short, we know where our money is and where it's going.  This opens us to more grants from people who only give money to organizations with "unqualified audits."

[Phil Hirons, Jr.]

Only in accounting

UNQUALIFIED AUDIT = GOOD

QUALIFIED AUDIT = BAD

[davidsinn]

Thanks for the explanations guys.

[jimmydeanno]

Only in accounting

UNQUALIFIED AUDIT = GOOD

QUALIFIED AUDIT = BAD

Only because the 'qualified audit' has qualifying statements to it.  "This is your financial situation...unless you take this into consideration..."  People don't like the "except" part.

The unqualified has no stipulations it's just, "This is your financial situation. Period."

[D2SK]

In the spirit of clarification, a qualified audit opinion is not a "bad audit".  A qualified audit opinion merely is pointing out that the financial statements are fairly represented, but there are one or two areas that do not comply with GAAP.

A bad audit would be identified as an Adverse Opinion. This is issued when the auditor determines that the financial statements of an auditee are materially misstated and, when considered as a whole, do not conform with GAAP.

[jimmydeanno]

GAAP

= Generally Accepted Accounting Practices

[RADIOMAN015]

FANTASTIC :clap:  I am extremely happy & proud that we (CAP) posted our financial statements on line for all to see.  This indicates to me increased transparency in the organization.

Of course, looking at the financial statements, especially the revenue & expense side (page 6), I take it that "Expenses with Units Below Wings", is basically the unaudited expenses, allocated per the units into the major functional program services?     In the Statement of Activities page 4, "Revenue from CAP Organizations", I would guess that this would be unit funds received from local dues, etc?    

It looked like a lot of units that had large funds balances available at the end of FY 2006, to action to "spend down" considerably in FY 2007 ($4.1M over revenue (page 11) , which I've got to wonder was because of potentially unfounded mistrust of centralized banking concept?

I would think that future statements will probably show expenses below wing appropriately intergrated into the "Statement of Functional Expenses" (page 6), BUT I would hope that "units below wing" would still have a footnote and/or supplemental statement.

Furthermore, it would be interesting on the membership side of the website IF each wing's financial report statement was also published for members to see.  Do some wings do this?

Again though, a mighty salute to those responsible for lobbying to get these financial statements posted publically :clap:
RM   

[Cecil DP]

The difference in Qualified and Unqualified Audits is why CAP moved to the Wing Banking Program. Prior to this every unit below Wing had to submit an annual finance report, which all had to be combined at Wing, and than merged again by the National Headquarters. Often several units in each wing would be late or not submit a report. Therefore there was no accounting for any funds (or deficits) in that unit. If even one unit wasn't accounted for-it was a qualified report.

[Eeyore]

For those of us that can't seem to navigate the new website, where exactly on the site are the reports located?