CAP Audited Financial Statement FY 2010 Now Available

[RiverAux]

While traveling around CAP web pages I have seen a couple that have had minutes of their finance committee posted.  Don't think I've ever come across a financial statement. 

[RADIOMAN015]

The whole purpose of the WBP is to ease the audit trail for CAP; from the squadron to NHQ. Everything trackable is done; even reported "in kind" donations.

The only reason any "in kind" donation would be tracked, in the first place, is when the donor requests a receipt for tax purposes.  If it isn't asked for, it isn't tracked.   I've learned from our Auditors, these type of donations are "insignificant" when, compared to the totality of our assets across the nation (now over $113,000,000).

I think the appropriate statement here is: "Don't sweat the small stuff"!

With all due respect, the "management accountant" side of me, basically looks at what is a true program cost.  I'm sure you will agree that at below wing level, it is the membership that is directly supporting that units' operations.  So if for our 1400 squadrons IF we get VERY conservatively $1000.00 yearly in "in kind" donated support (which a consolidated total would be $1.4 million, not a small dollar overall when compared with CAP's non government member provided budget), which would be everything from someone buying & donating office supplies, buying gas for a trip in the squadron van, or someone letting CAP use their building (even in a joint use non lease type agreement), although not "booked", is in fact supporting the CAP program.   Just because you don't pay for something out of appropriated funds or the wing banker program doesn't mean that it isn't a legitimate program cost even if it is a quick "in/out" (revenue/expense) transaction or a no cost use of facilities.
RM       
 

[SamFranklin]

Just because you don't pay for something out of appropriated funds or the wing banker program doesn't mean that it isn't a legitimate program cost even if it is a quick "in/out" (revenue/expense) transaction or a no cost use of facilities.

Okay, sure.  But everyone knows that nonprofit groups receive the casual support you're mentioning.

Why should we go to incredible lengths to document my casual, off-the-books donation of $40 in gas for the van? My little donation obviously isn't that critical to my own interest, so why is it to yours or CAP?

The purpose of the report is to show where the cash goes, not report where all the different types of support come from, nor total the real cost of the program.

[peter rabbit]

someone letting CAP use their building

It is my understanding that NHQ uses the annual Contributed Facilities Worksheet each squadron completes to account for that particular item.

It does not address the 'in-kind' member contributions you mentioned. To attempt to do that in a way that could be used in audited financial report would be questionable as to the cost/benefit. Do you really want to ask a sample of members to produce more paperwork that shows how much they contributed in-kind? I could because I track my mileage and out-of-pocket expenses to deduct each year, but I'd hate to ask that of a representative sample of members - then have to compile it, pay for the auditors to review it, etc.

I do believe it is important that we disclose some unit and wing financial information to members on at least an annual basis. So far, no one has commented that they have seen financial reports at those levels. I suspect that even few finance committee members have seen them. How can we say we are accountable or transparent in our finances if few members see them?

[bosshawk]

A question that hasn't been asked but that should be is: how many of the organizations 56000 members would read a financial report if it was placed in front of them?  Probably not many.  Although I was often a member of the unit Financial Committee, I would fall asleep if offered a monthly or yearly financial report to read.

[RADIOMAN015]

Just because you don't pay for something out of appropriated funds or the wing banker program doesn't mean that it isn't a legitimate program cost even if it is a quick "in/out" (revenue/expense) transaction or a no cost use of facilities.

Okay, sure.  But everyone knows that nonprofit groups receive the casual support you're mentioning.

Why should we go to incredible lengths to document my casual, off-the-books donation of $40 in gas for the van? My little donation obviously isn't that critical to my own interest, so why is it to yours or CAP?

The purpose of the report is to show where the cash goes, not report where all the different types of support come from, nor total the real cost of the program.

I'd look to Financial Accounting Standards Board Rules 116 & 117 as far as the contribution of "in kind" items and the expectation of reporting.  Non Profit's are a different animals, audited statements are looking for in kind as well as actual revenue & expenses.   Ensuring complete program costs are captured & reported are usually very important to non profits.

Most people do keep track of what they are contributing to an organization -- I don't think it would be a big thing to have a worksheet for each member that shows date, expense (what it was) and what program it was used for (Emergency Services, Cadet Program, Aerospace Education, Radio Communications etc) and just attach a copy of the receipt.  End of each month, submitted to wing for general journal adjusting entries. Revenue ID's as "Member Contributed In Kind Support)  Perhaps National could pick a wing and just run a test for 1 fiscal year to see how that would affect the books in that wing.

Also as your example above, in my squadron likely that $40.00 would get reimbursed to the member (because some members are having a difficult time financially) so it would show up as a functional expense to a specific program.   So a donation in kind not being reported actually does affected the statement of activities (revenue & expense), when comparing local squadrons operations.

RM

[FW]

RM, our auditors understand "in kind" donations very well.  Civil Air Patrol does track in kind donations which are reported as such.  The remainder is considered insignificant as per general accounting standards and practice (their words; not mine).   

There is no way we can account for every penny or "in kind donation" made. Members will give "off the books" and, won't want any thanks other than having their squadron work.  We get it. 

I agree with those who look at the balance between member wants and organizational needs.  And, IMO, the level of reporting you seem to be asking for would not contribute significantly to what we now have.

[cap235629]

$40 in gas for the van?

I want your van and where did you find such a cheap price on gas???

[AirDX]

Most people do keep track of what they are contributing to an organization -- I don't think it would be a big thing to have a worksheet for each member that shows date, expense (what it was) and what program it was used for (Emergency Services, Cadet Program, Aerospace Education, Radio Communications etc) and just attach a copy of the receipt. 

When I contribute money to an organization, I keep track of it for tax purposes.  I've had between $2000 to $4000 per year on my tax return in donations over the last few years to various organizations.

I DO NOT keep track of the pocket change stuff I do for CAP (and a couple of other organizations I belong to) such as picking up a ream of paper on my way through Office Depot, or a printer cartridge, or a package of shop rags for the hangar from Costco, or wax for the airplane from Kmart, or whatever minor item it happens to be.  I won't start keeping track of it, either.  It's just more hassle than it's worth.