Civil Air Patrol
Command Council
Meeting
1-2 March 2013
Arlington, VA
Investments Report
Overview

As of February 2011, the Investment Manager is Summit
Financial Resources, Inc.


Performance



Nearly all legacy investments have been liquidated and we operate with
Summit’s investment strategy
Q 4 2012 return after fees – 1.1% vs 1.2% for the weighted benchmark.
2012 returns after fees – 9.9% vs 10.9% for the weighted benchmark.
Excluding legacy assets, the returns were 11.1%
Currently manages funds for California, Nevada and Oregon
Wings as well.
Investments Report
As of December 31, 2012
* Includes legacy investments
Since inception begins 1 Mar 11
Investments
Full Year 2012
Restricted
Beginning Value
171,043
Unrestricted
4,210,905
Additions
Withdrawal 1
0
(1,347)
793,776
(373,316)
Interest & Dividends
Investment Fees
Realized/Unrealized G(L)
2,964
(1,347)
15,475
80,602
(33,318)
393,101
Market Value
1
188,135
Except for $34,663 for fees, all other transfers are inter-company related
5,106,416
Appropriated Budget Execution
Annual Distribution
As of 15 Feb 2013
INITIAL DISTB.
EXECUTED
%
O&M
$ 22,231,000*
$ 10,156,114
46
DDR
$
75,000
$
55,968
75
MIPRS
$ 1,971,784
$
569,196
29
(Other AF Assigned Missions)
* Original FY13 AF Funding $23.743M
All figures based on current distribution
Straight-line 38%
Historical 40%
Appropriated Budget Execution
Aircraft Procurement
FY-11
Budgeted
2,424,000
Expensed
2,424,000
Balance
-0100%
Vehicle Procurement
FY-11
Budgeted
902,000
Expensed
889,335
Balance
12,665
As of 15 Feb 2013
FY-12
8,990,000
8,665,796
324,204
FY-13
2,541,000*
98%
FY-12
917,000
917,000
-0-
99%
100%
*Proposed FY13 Funding – Funds have not been received to date.
FY-13
932,000*
Appropriated Budget Execution
Quarterly Distribution
INITIAL ALLOC.
$22,231,000
As of 15 Feb 2013
CURRENT DISTRB.
$ 12,000,000
Approximately half of our requested distribution of $23.743M
Current Obligations (Encumbered)
Actual Expensed
Projected Expenses (Thru 3/31)
Balance Remaining (1.5 Months)
1,060,202
9,095,912
1,054,199
789,687
Corporate Budget Execution
As of 15 Feb 2013
FY-12
FY13
Corp Budget
$2,476,526
$ 2,510,719
Income
$ 725,131
$
29%
Expenses
$
811,507
33%
* Includes Deferred Revenue from prior year
Straight-line Execution 38%
Historical Income = 32%
Historical Expense = 34%
760,561*
31%
$ 1,489,181
41%
FY13 Corporate Budget - INCOME
As of 15 Feb 2013
$2,510,719
1%
3%
Cadet Programs &
Encampments
3% 4%
3%
Senior Activities
PA & Membership
Development
49%
Operations
36%
Special Events
Other Funding Sources
Interest & Misc Income
FY13 Corporate Budget - EXPENSES
As of 15 Feb 2013
Cadet Programs &
Encampments
$2,510,719
Senior Activities
32%
Aerospace Education
45%
Operations
5%
5%
10%
Legislative & Corp.
Development
4%
O&M
FY13 Appropriated Budget
As of 15 Feb 2013
FY13 - APPROPRIATED
$22,231,000
Aerospace Education
10%
Cadet Programs
19%
Professional
Development
50%
7%
10%
Missions
Wing Admin &
Bookkeepers
4%
General Overhead
FY13 Consolidated Budget
As of 15 Feb 2013
Consolidated Budget
$24,741,718
Aerospace Education
8%
22%
Cadet Programs
7%
13%
46%
5%
Sr. Professional
Development
Missions
Wing Admin &
Bookkeepers
General Overhead
Historical Perspective – FY 12 Funding
Source
Federal & Prog. Inc
State & Local
Dues
Contributions (cash)
Fundraising (Units)
Events & Activities
Interest & Investment
Other
Total
Amount
$40,086,928
$3,217,674
$2,507,314
$1,172,898
$1,237,574
$2,332,824
$793,926
$1,248,946
$52,598,084
%
76%
6%
5%
2%
2%
5%
<2%
2%
100
FY12 Funding Sources
Total funds
$52,598,084
6%
2%
5%
76%
2%
5%
2%
2%
Federal & Program Income
Contributions (Cash)
Fundraising (Units)
Interest & Investments
State and Local Gov't
Dues
Events & Activities
Other
Limited Funding Sources
 CAP’s reliance on federal funding has presented the
organization with challenges in the current national
budget crisis
 Projected budget shortfalls will impact programs and
staffing
 For CAP to be relevant in the future, CAP will need
to broaden our sources of funding, evaluate the cost
of services to other agencies, look for efficiencies and
expand fundraising efforts
Millions
Changes in Appropriated Funding
28.5
27
25.5
24
22.5
FY 12 Funding
FY 13 Fin Plan
21
FY 13 CRA
19.5
18
16.5
15
FY 12 Funding
FY 13 Fin Plan
FY 13 CRA
Impact of Funding Reduction
 CAP’s FY13 AF Fin Plan is $23.743M, a reduction of
$4.095M
 CAP’s current operating budget is $22.231M under
the Continuing Resolution, a reduction of $5.607M
 The actual effects of sequestration on the budget are
unknown at this time, but reductions are anticipated
Budget Challenge
 Civil Air Patrol will be challenged to establish budget
priorities in order to position the organization for the
future
 During the next few years CAP must become more
efficient and more strategic in developing financial
goals
 CAP can and will remain a strong, relevant
organization to our communities and to United States
Air Force
FY12 Audit
 Civil Air Patrol’s FY12 audit is nearing completion
 Earliest time in CAP’s history to complete the audit
 Wing data was included in the audit through SmartVault
and QuickBooks
 CAP anticipates another unqualified audit opinion on
the organization’s financial operations
Financial Initiatives
 CAP wings have set a standard for utilizing paperless
processes
 Direct pay to members for missions has been
embraced by many wings and is required in some
wings
 Within the next 6 months we will begin researching
the potential of collection of squadron dues with NC
Wing
Financial and Logistics Initiative
 Currently Wings conduct their annual inventory from Jan
through March
 Wings have an additional audit requirement to verify their
assets at year end for audit purposes
 FM and LG are working to establish a single inventory and
eliminate the duplication of effort
Financial Performance
 Wings are steadily continuing to improve in financial
management
 Several wings have begun to use online bill pay and to
accept credit cards through QuickBooks
 One Wing has begun to use Sertifi for their units
Accountability Matrix
Jan 2010 –Feb 2013
40
35
30
25
20
15
10
5
0
Low
Successful
High
Vanguard Funds
Vanguard Funds have been distributed to each Region
for the past two years to provide support to cadet
programs