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Civil Air

Patrol

2010 Financial Report

GOVERNANCE 3
PUBLIC TRUST
TOP-NOTCH LEADERS

EMERGENCY SERVICES 7
SEARCH AND RESCUE
DISASTER RELIEF
HOMELAND SECURITY
PROFESSIONAL DEVELOPMENT

2010

TECHNOLOGY & EQUIPMENT 11


CUTTING-EDGE TECHNOLOGY
SAFETY-FIRST TRAINING

YOUTH PROGRAMS 15
YOUTH LEADERSHIP TRAINING
AEROSPACE EDUCATION

COMMUNITY SERVICE 19
SERVICE PROJECTS
DRUG DEMAND REDUCTION
CHAPLAIN CORPS

FINANCIAL STATEMENTS 23

This publication meets the Annual Report to Congress


requirement llisted in Title 36 of the United States Code.
Cover photo courtesy of Golden Isles Magazine

INDEPENDENT AUDITORS REPORT


STATEMENT OF FINANCIAL POSITION
STATEMENT OF ACTIVITIES
STATEMENT OF FUNCTIONAL EXPENSES
STATEMENT OF CASH FLOWS
NOTES TO FINANCIAL STATEMENTS

Civil Air Patrols Mission

Statement

Supporting Americas communities with emergency response, diverse aviation and ground services,
youth development and promotion of air and space power.

n anticipation of its 70th anniversary in December 2011, Civil Air


Patrol is celebrating its glorious past, when civilian volunteers chased

enemy submarines from Americas shores during World War II, and

embracing its future in todays fast-paced, technologically driven world.


Despite a lean economy, CAPs membership continues to grow at a steady
rate, now more than 61,000 members strong, an increase of 4.4 percent over last
year and a 7.1 percent increase in the past decade. Like CAPs founding
members, these are volunteers who put service above self and have chosen CAP
as a way to help their communities and their nation.
Thanks to a combination of perseverance and technology, CAP is proud to
announce its third consecutive unqualified audit this year, outlined in
comprehensive detail in this report. This achievement not only signifies CAPs
careful and competent handling of state, federal and donor dollars but also pays
tribute to all who place their trust in this nonprofit organization.
While CAP remains committed to its original congressionally mandated
missions to provide emergency services, cadet programs and aerospace education,
the organization is increasingly taking on new challenges, including helping train
military members before they deploy overseas to combat locations and providing
even more community services. All of this further reflects CAPs commitment to
remain relevant and necessary in an ever-changing world.

Public

Trust
Leaders in

Air Force,

Business,
Education.

CAP builds

leaders. Members of
the New York Wing
received some
leadership tips and a
great photo
opportunity with U.S.
Secretary of State
Hillary Clinton when
she attended a smalltown parade in
upstate New York.

Board of

Governors

Leaders in
Air Force,
Business,
Education,
CAP

The work of Civil Air Patrol


is directed by its 11-member
Board of Governors. The boards
distinguished members are
leaders from across the nation,
drawn from the ranks of CAP
volunteers as well as U.S. Air
Force senior officers and
civilians working in the fields of
education, aviation and
emergency management. Board
members meet periodically
throughout the year to guide the
organization by establishing
strategic policies and long-range
plans and programs.

Lt. Gen. John D. Hopper


Jr., USAF (Ret)

Chairman
Board affiliation:
U.S. Air Force
CAP/Air Force/Aviation
background:
USAF retired
Air Force Command Pilot with
more than 4,000 flying hours
C-130 Pilot, Vietnam War
Career:
CEO, Air Force Aid Society
Education:
Masters degree, Logistics
Management, Air Force
Institute of Technology
Bachelors degree, U.S. Air
Force Academy

Brig. Gen. Richard L. Anderson,


CAP

Vice Chairman
Board affiliation:
Civil Air Patrol
CAP/Air Force/Aviation
background:
USAF retired
Former CAP National
Commander (1993-1996)
Current Secretary, CAP
National Advisory Council
(former National Commanders)
Former National President,
Spaatz Association
CAP Command Pilot with
2,100 flying hours
Federal Aviation Administration
commercial pilot certificate
30 years of Air Force service in
Missile/Space Operations and
Political-Military/International
Affairs
Career:
Representative, 51st House
District, Virginia General
Assembly; elected 2009
Colonel, U.S. Air Force; retired
2009
Education:
Masters degree, Public
Administration, Webster University
Bachelors degree, Political
Science, Virginia Polytechnic
Institute
Graduate, Air War College
(residence); Air Command and
Staff College (residence); and
Armed Forces Staff College
(residence)

Brig. Gen. Charles L. Carr Jr., CAP

Board affiliation:
Civil Air Patrol
CAP/Air Force/Aviation
background:
USAF retired
CAP National Vice Commander, with
previous service as Great Lakes
Region Commander and Ohio Wing
Commander
CAP Pilot with an instrument rating
Master rating in CAPs Personnel
and Finance professional
development specialty tracks
Career:
Co-owner of ABC Academy Daycare
Center in Columbus, Ohio
More than 16 years in retail sales
and management
Master Sergeant, Superintendent of
Security Police, U.S. Air Force;
retired after 23 years of service
Education:
Management courses, University of
Maryland
Military training, including NCO
Leadership School, Command NCO
Academy, U.S. Air Force Senior NCO
Academy, Military Police
Investigations and U.S. Customs

Maj. Gen. Amy S. Courter, CAP

Board affiliation:
Civil Air Patrol
CAP/Air Force/Aviation
background:
CAP National Commander,
preceded by long list of previous
CAP service, including Michigan
Wing Commander; Chair of Cadet
Programs, Professional
Development and Infrastructure
committees; and Co-Founder and
Director of Civic Leadership
Academy
Career:
Self-employed since 2005,
management consulting
Former Vice President,
Information Technology and
Telecommunications, Valassis
Education:
Bachelors degree,
Psychology and Education,
Kalamazoo College
Secondary school teaching
certification in Psychology,
Computer Science and
Mathematics

Maj. Gen. Garry C. Dean,


USAF

Board affiliation:
U.S. Air Force
CAP/Air Force/Aviation
background:
Air Force Command Pilot
with more than 4,000 flight
hours in T-38 and F-15
aircraft
Career:
Major General, U.S. Air
Force, currently serving as
Commander, 1st Air Force,
and Commander,
Continental U.S. North
American Aerospace
Defense Command
Region,1st Air Force and Air
Forces Northern
Previous service with
Oregon Air National Guards
142nd Fighter Wing;
Georgia Air National Guard;
and 12th Tactical Fighter
Squadron at Kadena Air
Force Base, Japan
Education:
Bachelors degree,
Computer Science, U.S. Air
Force Academy
Air Command and Staff
College, Air War College
and Joint Task Force
Commanders Course

Paul L. Graziani

Board affiliation:
Industry, Government,
Education
CAP/Air Force/Aviation
background:
Software Developer
analysis software for
land, sea, air and space
Board Director:
PASSUR Aerospace
U.S. Geospatial
Intelligence
Foundation
Federation of Galaxy
Explorers
Board of Governors
member:
Civil Air Patrol
Aerospace Industries
Association
Associate Fellow,
American Institute of
Aeronautics and
Astronautics
Formerly served on
Advisory Board for Penn
State Great Valley
Life Director, Space
Foundation
Career:
CEO and Co-Founder,
Analytical Graphics Inc.
Education:
Bachelors degree,
Biology, LaSalle College

Lt. Gen. Nicholas B.


Kehoe, USAF (Ret)

Board affiliation:
U.S. Air Force
CAP/Air Force/Aviation
background:
USAF retired
Air Force Command
Pilot with more than
3,600 flying hours in
trainer and fighter
aircraft
F-4 pilot with 555th and
390th Tactical Fighter
squadrons, Thailand and
South Vietnam,
respectively
Career:
President,
Congressional Medal of
Honor Foundation
Lieutenant General, U.S.
Air Force; retired 2000,
with most recent service
as Inspector General,
Office of the Secretary of
the Air Force, Pentagon
Education:
Bachelors degree,
Science, U.S. Air Force
Academy
Royal Air Force Air War
College, England

Lt. Col. Edward (Ned) F. Lee, CAP

Board affiliation:
Civil Air Patrol
CAP/Air Force/Aviation
background:
U.S. Army retired
National Cadet Adviser, with long list
of previous service, especially with
Cadet Programs, including Director
of Civic Leadership Academy,
faculty member at Cadet Officer
School and extensive work with
Drug Demand Reduction Program
Gen. Carl A. Spaatz Award, highest
honor for cadets
Career:
Supervising Judge, California
Superior Court, Santa Clara County
California Army National Guard,
called to active duty after 9/11
attacks and performed service in
Panama, Ukraine and Japan
Former Police Detective
Education:
Juris Doctorate, Hastings College of
Law, University of California
Bachelors degree, University of
California at Irvine
Associate degree, Golden West
College

Financial Report 2010 6/9/11 11:43 AM Page 6

Maj. Gen. Susan Lewellyn Pamerleau, USAF (Ret)

Board affiliation:
Industry, Government, Education
CAP/Air Force/Aviation
background:
USAF retired
Director, Personnel Force Management, U.S. Air Force,
Pentagon
Commander, Air Force Personnel Center, Randolph
AFB, Texas
Commandant, Air Force ROTC, Maxwell AFB, Ala.
Chief, Resource Allocation Division, U.S. Air Force,
Pentagon
Chief of Staff, Plans and Policy Division International
Military Staff, NATO, Brussels, Belgium
FAA private pilot license
Career:
Director, Government Personnel Mutual Life Insurance
Co.
Previously in top leadership positions with United
Services Automobile Association
Service as Director/Trustee on various boards,
including Air Force Aid Society, Arnold Air Society and
Silver Wings, University of Wyoming Foundation Board,
National Benevolent Association and National City
Christian Church Foundation
Education:
Bachelors degree, Sociology, University of Wyoming
Masters degree, Public Administration, Golden Gate
University
Honorary Doctorate, Phillips University
Industrial College of the Armed Forces, National
Defense University, Washington, D.C.
Advanced Executive Programs J.L. Kellogg School of
Management, Northwestern University; JFK School of
Government, Harvard University; Wharton School,
University of Pennsylvania

Brig. Gen. S. Sanford Schlitt,


USAF (Ret)

Board affiliation:
Industry, Government, Education
CAP/Air Force/Aviation
background:
Previous service as Air Force
Association Chairman of Board for
Aerospace Education and Chairman of
Aerospace Education Council
Founder of CyberPatriot, Air Force
Associations national high school cyber
defense competition
Career:
Chairman of AFA Board of Directors
Senior Managing Director of mortgage
investment trust, with other private
business ventures, including startups
Prior service as member of Board of
Directors of several nonprofits and forprofit entities, including NASDAQ-listed
firm
Chairman or member of executive
committee and committees on
governance, audit and finance for
several for-profit and nonprofit entities
Previous service as Senate staff
member for U.S. Sens. Hubert H.
Humphrey and Walter Mondale
Candidate for U.S. Congress in 1980
Education:
Bachelors degree, American University
Extensive professional development
study

Maj. Gen. John M. Speigel,


USAF (Ret)

Don R. Rowland

Board affiliation:
Executive Secretary
Executive Director, Civil Air
Board affiliation:
Patrol
U.S. Air Force
CAP/Air Force/Aviation
CAP/Air Force/Aviation
background:
background:
USAF retired
USAF retired
Rated pilot with 3,400
Numerous Air Force technical
flying hours
and command positions
Helicopter pilot in Pacific
Air Force long-range planning,
Background in search and
including Airlift Master Plan and
rescue and aircraft system
Total Force Plan
acquisitions
Career:
Career:
Lockheed Martin, Information
Twenty-six years at CAP
Systems and Global Services
National Headquarters,
Major General, U.S. Air Force;
including service as Senior
retired 2005, with most recent
Director, Director of Plans
service as Director of Personnel
and Requirements and
Policy, Deputy Chief of Staff for
Director of Strategic
Personnel, Headquarters U.S.
Communications and Plans
Air Force; commanded at every
U.S. Air Force, both as Pilot
level in Air Force, including
and in System Requirements
service at Pentagon and in
for Special Operations at
South Korea
Scott AFB
Education:
U.S. Coast Guard Exchange
Masters degree, Journalism,
Education:
Texas A&M at Commerce
Masters degree, Management,
Masters degree, National
Webster University
Security and Strategic Studies,
Bachelors degree, Biology,
Naval War College
University of West Florida
Bachelors degree, Business
U.S. Coast Guard SAR School
Administration, Texas A&M at
at Governors Island, N.Y.
Commerce

Emergency

Services
that support

search and rescue,


disaster relief
and homeland

efforts

security

nationwide.

Ever vigilant, always

prepared, Civil Air


Patrols 61,000-plus
members are there to
help their fellow citizens.
They willingly leave
hearth and home to
battle the elements in
times of natural disaster,
to courageously and
untiringly search for the
lost and always to protect
America.

High-Profile

Missions

Gulf oil spill response


Midwest flooding
Air intercepts
Counterdrug
Fire patrols

Civil Air Patrols role in the Gulf of Mexico


oil spill response in 2010 CAPs single largest
mission since World War II led the
organizations 2010 emergency services missions
in numbers, length and intensity. Involving 287
volunteers from 10 wings over 118 days, the
mission confirmed CAP volunteers ability to
support a major, extended operation that
included a record demand for thousands of aerial
photos each day. The digital photos were used to
help assess the spilled oils potential effect on the
coastline, barrier islands, wetlands, fishing
industry, businesses and tourism.
2010 also saw CAP credited with saving 113
lives across the nation the 10th-highest
number of saves in the organizations 69-year
history. Meanwhile, CAP provided disaster relief
during very heavy spring flooding, from the
upper Midwest to the Northeast. CAP aircrews
digital photography of the damage was used
extensively to assist emergency responders on
the ground.
Aircrews from numerous CAP wings assisted
law enforcement agencies in seizing $1.36 billion
in illegal drugs and drug money, and various
wings nationwide performed more than 150
critical homeland security missions by simulating
hostile aircraft for U.S. Air Force and Air
National Guard fighters.
Additionally, CAP members performed
other critical missions for the Department of
Defense, other federal agencies and state and
local governments. CAP crews escorted naval
vessels, performed fire patrols over DoD
reservations and supported combat deployment
preparation training.

A triple boom line protects prime property of the Grand Hotel Marriott Resort at
Point Clear, Ala., where the eastern shore of Mobile Bay meets the Gulf of Mexico.
Civil Air Patrols role in the Gulf oil spill response included documenting the integrity
of booms along the coastlines of four Gulf states Alabama, Florida, Louisiana and
Mississippi. During the four-month mission, CAP aircrews launched more than 1,000
flights, logging nearly 2,500 hours in more than 50 of the organizations signature
red, white and blue planes. In all, CAP volunteers put in more than 20,000 hours in
support of the oil spill recovery mission. CAPs support of this mission saved the
federal government millions of dollars.

Using permanent facilities opened at


Camp Atterbury, Ind., CAP provides yearround training to more than 900 members
at the National Emergency Services
Academy Center for Operations
Excellence. Professional development is
also offered annually at the wing and
region levels, ensuring CAPs volunteers
are prepared with the professional-quality
skills and knowledge required to perform
their missions.

Many of Civil Air Patrols 52 wings


now have working partnerships in
place with state emergency
operations centers as well as other
state and regional emergency
responders. During a natural or
manmade disaster, CAPs role in
those partnerships often includes
providing aerial reconnaissance for
state environmental agencies. For
example, during the Gulf oil spill
response in 2010, the Mississippi
Wing made daily flights for the states
Department of Marine Resources and
Department of Environmental Quality,
surveying the waters along
Mississippis coastline.

Drug interdiction missions remain a top Civil Air Patrol


priority. In 2010 nearly 11,000 hours were flown, which
often resulted in drug finds like this one (in marked circle)
near a Delaware neighborhood. CAP aircrews were
involved in missions that helped locate $1.36 billion in
illicit drugs.

When Civil Air Patrol ground teams arrived at the scene of this Navy
helicopter crash in West Virginia, the chance of survivors looked bleak.
Miraculously, all 17 on board were alive, though most were injured. CAP
volunteers worked for 20 straight hours in snowstorm conditions, much of
the time in darkness, on a remote mountainside to extract the victims and
transport them to medical facilities. In Arizona, enduring similar weather,
members saved 54 people stranded by a sudden snowstorm. CAP
totaled fewer search and rescue flying hours but saved more lives in
2010, thanks in part to members radar and cell phone forensics
expertise, which helped reduce the search area size, allowing CAP to
locate survivors more quickly.

Fire-watch patrols, like this one near Eglin Air Force Base, Fla., help protect property as well as warn
businesses and homeowners of potential wildfire threats. Other community support missions provided by
CAP include sundown patrols to search for stranded boaters along the nations coastlines and over many
of its inland lakes and waterways, as well as air escorts for ships along critical waterways.

Like clockwork, spring 2010 brought flooding


to much of the upper Midwest, Ohio Valley and
Northeast. CAP members were on the scene,
working from the air to take photographs used to
make critical decisions about threats to lives and
infrastructure. Thousands of photos taken by
CAP aircrews were made readily available on
digitized maps, providing near real-time
assistance to emergency managers handling the
disasters. On the ground, other CAP volunteers
helped with sandbagging and delivering
essential supplies.

Some Civil Air Patrol wings


use their planes as mock
targets to train Air Force and
Air National Guard fighters
during practice intercept
missions. The exercises were
among CAPs 154 air defense
missions in 2010, in which its
citizen volunteers flew nearly
2,000 hours. An excellent
example of these missions
occurred in the Northeast when
CAP units supported naval
station security exercises by
simulating hostile aircraft. Such
exercises with CAP help
ensure U.S. air defense units
responsible for intercepting
aircraft threats are prepared.

10

CAP executed 100 percent of its federal budget for the fourth
year in a row by using sound management practices as well as
tools like the Web Mission Information Reporting System (WMIRS),
an online system providing electronic mission approval and aircraft
discrepancy reporting. WMIRS has increased safety and
accountability and greatly reduced mission paperwork.

Technology

& Equipment

cuttingedge tools
with

to deliver top

performance.

With a versatile fleet of 550

aircraft and numerous ground


assets, Civil Air Patrols citizen
volunteers perform real-world
missions at a very attractive cost
only $150 per flying hour.
Members of the U.S. Air Force
auxiliary are true patriots who
volunteer to serve and professionally
execute their duties with
excellence every day, making CAP
a true force multiplier in service to
communities across the nation.

High-Tech

Tools

Full motion video


Infrared cameras
Narrowband radios
ORMS
Tsunami speakers
Glass cockpit
Safety training

12

Civil Air Patrol members fly and maintain a


fleet of more than 550 aircraft, many equipped
with sophisticated Garmin glass cockpit
technology and the latest in digital radio
equipment needed to communicate easily with
ground teams at all times. Recently, two CAP
planes were modified with special full motion inflight video equipment used to help train U.S.
military ground forces in remotely piloted aircraft
operations before they deploy overseas.
High-tech tools used for emergency services
include the latest in aerial photography equipment,
as well as infrared cameras for nighttime searches.
Other tools are more basic, yet vital to those who
use them like the loudspeakers affixed to all
eight of the Hawaii Wings airplanes that warn
island residents of pending tsunami threats.
CAPs equipment is effectively and efficiently
managed from acquisition to disposal through a
national, Web-based property and accountability
database. Members stay mission-ready by acquiring
the knowledge, skills and expertise required to
operate this equipment through participation in
top-notch professional development training in
their own units as well as at the wing, region and
national levels. Others travel to train at various
facilities, like the National Emergency Services
Academy at Camp Atterbury, Ind.; CAP National
Headquarters at Maxwell Air Force Base, Ala.; and
the Cessna Aircraft Co. factory in Independence,
Kan.
Members safety in providing emergency
services and disaster relief in their communities is a
top priority, as reflected in CAPs consistently low
accident and incident rates.

After implementing a variety of safety initiatives,


including new Web-based training programs, CAP
reduced powered aircraft accidents by 50 percent
in 2010. CAPs 1.78 accidents per 100,000 flying
hour rate is almost four times better than general
aviations 15-year average. This is noteworthy,
since CAPs flying is usually much more
demanding than most of general aviations.

Geospatial Information
Interoperability Exploitation
Portable Go-Kits, now available
to Civil Air Patrol, add state-ofthe-art communications and full
motion in-flight video to CAPs
emergency services toolkit
arsenal.

Civil Air Patrols modern-day fleet of


aircraft received a boost when 12 new
state-of-the-art Cessna 182Ts were
added. Three of those planes are turbocharged models that will be used by
wings that operate in higher elevations.
All are equipped with Garmin G1000
glass cockpit technology, recognized as
the industrys best. The all-glass, jet-like
cockpit with Garmin technology provides
improved situational awareness for CAP
pilots as well as a terrain avoidance
system, which helps ensure safety.

Tsunami loudspeakers
attached to Hawaii Wing
aircraft were put to the test
following earthquakes in Chile
and, most recently, Japan.
Aircrews flew predetermined
routes around the remote
shoreline areas of Hawaii,
broadcasting a voice warning
via a speaker system attached
to the outside, lower portion of
the fuselage.

Civil Air Patrols expertise in aerial photography got a workout in 2010, first with
spring flooding over an extensive part of the Midwest and Northeast and then with the
response to the oil spill in the Gulf of Mexico. CAPs aircraft provided the perfect vantage
point for photos, geo-stamped with the date and GPS coordinates, for officials to use to
assess damages and deploy assets. During the oil spill response, multiple CAP aircrews
took thousands of photos along the Gulfs shoreline every day for months.

Civil Air Patrol added 99 vehicles like this 12-passenger


van to its ground fleet, replacing a large number of vehicles
identified as too costly to repair as well as vehicles from CAPs
100-oldest list. These additions improved the overall safety and
reliability of the vehicle fleet. Safety is a top priority for CAP, and
2010 was one of the organizations safest years ever, with no
injuries or fatalities.

13

A FLIR Ultra 8500 Infrared Camera system being


tested by the North Dakota Wing will aid CAP in future
search and rescue missions. This cutting-edge
technology, accessible through a portable computer,
allows aircrews to see and accurately measure heat
patterns, dissipation, leakage and other temperature
factors on the surface below, as seen in these images.
FLIR should result in more effective aerial searches,
especially at night, and decrease recovery times.

Civil Air Patrol contributes to national defense through the use of


specially outfitted CAP aircraft. These aircraft participate in exercises
that provide U.S. combat forces the precise training they need to work
in overseas locations. Using this cutting-edge 21st century technology
is just one way CAP is playing an active role in homeland security.

More than 500 repeaters have been installed and


brought online throughout the U.S. to facilitate CAPs
narrowband radio transition. The transition is part of a recent
multimillion-dollar communications upgrade that makes it
easier for CAPs aircrews and ground teams to respond to
emergencies. The digital repeater network is also available
for Department of Defense use when required.

14

In January 2010, Civil Air Patrol


deployed the new Operational Resource
Management System, a national Webbased property management and
accountability database. ORMS allows
CAP to more easily manage and control
the organizations assets throughout
their life cycles, from acquisition to
disposal. It also automates virtually all of
CAPs property administration
processes, producing a near-paperless
approach to management of CAP
resources and helping cultivate a culture
of accountability that extends throughout
the organization.

Youth

Programs
that mentor

CAP cadets
and

promote

aerospace education.

Civil Air Patrol inspires

youth through its


programs for cadets and
aerospace education.
Against a backdrop that
emphasizes the
importance of
maintaining our nations
strong air and space
capabilities, CAP guides
young people in
exploring careers,
learning how to lead and
discovering joy in serving
others.

Youth

Programs

Cadet programs
Leadership skills
Pilot training
Aerospace education

Civil Air Patrols programs for youth are No. 1 in the nation literally!
Six Florida Wing cadets took top honors in the All Services Division in
the Air Force Associations CyberPatriot III competition, beating 480 teams in
the nations largest high school cyber defense competition. Also, Col. Eric
Boe, perhaps CAPs most famous former cadet, piloted his second NASA
mission to the International Space Station, inspiring aerospace career
aspirations for youth across America.
Student interest in careers in science, technology, engineering and math
was further inspired by CAPs Aerospace Education Members, teachers
nationwide who are provided textbooks, lesson plans, learning aids and handson activities designed to nurture the skills of Boes protgs.
CAPs Cadet Program annually grooms the leadership skills of thousands
of cadets who command the respect and success associated with a global
learning environment. The Cadet Program molds the next generation of
citizens by providing K-12 youth with top-notch, year-round instruction that
emphasizes patriotism and service. Guided by CAPs Learn to Lead texts, cadets
choose from among more than 30 special activities, including clinics on how
to pilot an airplane, programs for travel abroad and a variety of camps that
teach everything from business to engineering to civic career choices.
Judging by the Cadet Programs growth up 9.5 percent from the past
year to a total of 26,157 cadets in 2010 young people and their parents find
the program to be very attractive.
A variety of partnerships, such as the one CAP enjoys with the Air Force
Association, annually recognize CAPs outstanding cadets with various awards
and other types of motivational support.

In self-paced study, CAP cadets learn the art of leadership


and advance in rank. Formal classroom instruction is augmented
by hands-on experiences where cadets can apply leadership
principles to real-world challenges. First learning how to follow
and then leading small groups, cadets ultimately experience
command and executive-level leadership.

16

Cadets in CAP can choose from many special


activities opportunities that are not always
available to other youth. These cadets were part
of CAPs 2010 International Air Cadet Exchange,
where participants experienced other cultures,
often making lifelong friends. Another premier
special activity is CAPs Civic Leadership
Academy, held each spring in Washington, D.C.;
participating cadets are invited to the State
Department, FBI, CIA and other top government
agencies. With a curriculum that emphasizes
persuasive leadership, they practice skills needed
to be consensus-builders in their communities.

Cadets particularly
enjoy learning how to fly.
Flight academies, held
annually in eight locations
across the country, allow
participants to solo, an
important step in obtaining
a pilots certificate. Cadets
fly in powered and glider
aircraft even hot-air
balloons and, in the
process, develop a love of
aviation at no cost to
themselves. CAP flew
more than 28,000 cadet
orientation flights in 2010.

In addition to what they learn from texts


and in the field, CAP cadets are immersed
in a culture of respect, patriotism and
service. Look for CAP cadets, like these
from the Maryland Wing, to advance to
leadership positions in business and
industry, government and the military.

When CAP visits their classrooms,


younger students, accompanied here
by Cappy, the Civil Air Patrol mascot,
are introduced to the wonders of flight
and the importance of air supremacy to
our nation. The Aerospace Connections
in Education Program reaches almost
11,000 students in 27 states. A second
program, the Aerospace Education
Excellence Award Program, grows with
K-12 students as they advance in grade
level. Reaching 44,000 students at 840
schools and 483 CAP squadrons in
2010, the program focuses on the
dynamics of aerospace and lights the
way for students to consider careers in
STEM science, technology, engineering
and math fields.

Nothing quite captures the imagination like the wonder of


flight. These Wisconsin Wing cadets are transfixed by scale
model planes flying overhead. Curricula in both Cadet
Programs and Aerospace Education teach the principles of
flight, often through the use of model planes and rockets.

17

Financial Report 2010 6/9/11 11:57 AM Page 18

The Connecticut Wings Rachel


Manzer, CAPs 2010 Aerospace
Education Teacher of the Year, is one
of 1,600 CAP Aerospace Education
Members. The program provides
teachers across America with CAP
lesson plans and materials,
professional development and
orientation flights. These flights
provide firsthand knowledge of the
applicability of STEM instruction as it
relates to flight and motion, motivating
participants to share their newfound
knowledge with their students. In
2010, more than 350 teachers were
flown, ultimately touching the lives of
over 21,000 students.

Civil Air Patrols Team Wilson was awarded


the Commander-in-Chiefs Cup during the Air
Force Associations CyberPatriot III competition.
The Central Florida-based team defeated four
Junior ROTC units from across America to win
the first-place award in CyberPatriots All Service
Division. The six members of Team Wilson are,
front row, from left, Cadet 2nd Lt. Shawn Wilson,
Cadet 1st Lt. Josh Dovi and Cadet Senior
Airman Reid Ferguson; back row, Cadet Tech.
Sgt. Michael Hudson, Cadet Chief Master Sgt.
Evan Hamrick and Cadet 1st Lt. Isaac Harding.
This years two-track CyberPatriot competition
also included public-, private- and home-school
students competing in a new Open Division.
More than 660 teams nationwide registered for
the competition.

18

CAP members strive to be role


models for our countrys youth, and no
one does a better job of that than CAP
senior member, NASA astronaut and
U.S. Air Force Col. Eric Boe, who began
his exploration of aviation as a CAP
cadet. Boe served as pilot for the final
space voyage of the shuttle Discovery,
which was launched in February to
service the International Space Station.

Community

Service
that honors Americas

veterans and
provides assistance
to those in need.

The work of Civil Air

Patrols volunteers is never


done, as evidenced by the
ways in which members touch
the lives of the citizens of
their communities each and
every day, well beyond their
legislative missions of
emergency services, cadet
programs and aerospace
education. These everyday
heroes are Americas nextdoor neighbors and friends,
citizen volunteers who are
always there to provide civic
and humanitarian support and
assistance.

Community

Service

Service projects
Chaplain Corps
DDR

20

By far, CAPs largest national community service


project is Wreaths Across America, in which participants
lay remembrance wreaths on veterans graves each
December. Since CAPs initial involvement in 2006, the
number of wreaths placed by various organizations has
blossomed from a few thousand to more than 219,000,
with ceremonies often featuring CAP color and honor
guards now conducted at more than 500 locations in
the United States and another 24 abroad. CAP helped
obtain sponsorships for more than 39,000 wreaths in 2010.
Civil Air Patrol members also meet the needs of the
communities they serve in numerous other ways. From
simple gestures that have a profound effect, such as
collecting and disseminating care packages to veterans,
supporting local civic events or providing disaster relief
support for Japan CAP members can always be counted
on to provide assistance.
Such service is nurtured by CAPs Chaplain Corps,
the largest chaplaincy in the world, with more than 500
chaplains and 300 character development instructors. In
the past six months alone, the Chaplain Corps performed
13,856 activities encompassing 63,171 hours, 429,133
miles driven and $268,827 in out-of-pocket expenses.
CAP also has a long history as an active leader in the
War on Drugs. Besides a zero-tolerance policy for both its
cadets and senior members, CAP takes its Drug Demand
Reduction Program into Americas schools and is an active
participant in the Just Say No program.
Civil Air Patrols partnerships with other civic-minded
organizations continue to grow as a result of the
exceptional service provided by CAPs 61,000-plus
members, many of whom are annually recognized with
prestigious national awards. Recognition is further
generated each year on Legislative Day when wing
commanders carry the phenomenal story of CAPs service
to Capitol Hill.

For a sixth year members of


CAPs Ohio Wing participated in a
Flag Day ceremony where more
than 1,700 flags were honorably
retired. This is just one example of
the myriad of patriotic projects CAP
members routinely take on in
communities across America. CAP
honor guards with the Alaska Wing,
for example, often fly great distances
to attend veterans funerals, and
CAP color guards and cadets are
frequent participants in local holiday
parades and at civic functions.

The good works of CAP members


do not go unnoticed. The expertise of
Capt. Justin Ogden, center, of CAPs
Virginia Wing was recognized last fall
by the National Aeronautic Association
with the Public Benefit Flying
Distinguished Volunteer Award. By
studying cell phone forensics, Ogden
can pinpoint the location of the phone
and often its missing user within
a matter of yards. This important
skill/technology has helped save
numerous lives over the past several
years. CAPs Maine Wing was also
recognized recently when the U.S.
Navy bestowed its Aegis Excellence
Award on the wing for its role in safely
escorting the newly constructed USS
Jason Dunham on a final test of the
destroyers equipment. Also, members
of a West Virginia Wing search and
rescue ground team were honored by
both the Navy and CAP for their heroic
actions in saving the lives of 17 military
personnel whose helicopter crashed in
unforgiving terrain and extremely
adverse winter weather conditions.

CAP Chaplain Lt. Col. Marcus Taylor,


right, served as welcome relief for U.S.
Coast Guard Chaplain Lt. Joseph Johnson,
who, before Taylors arrival, was
singlehandedly working the Coast Guards
Deepwater Horizon Mobile Sector Incident
Command Center. Taylor set up his office
at a table in a corner of a breakroom at the
Incident Command Post, where more than
1,500 people, mostly Coast Guard and BP
employees, worked to contain and control
the oil spill. Chaplains assigned to the Gulf
mission conducted regular worship
services, including communion, and made
themselves available at work sites for
impromptu counseling.

At the unit level, members of the


Puerto Rico Wings Lajas High School
Cadet Squadron pitched in to help
refugees of the Haitian earthquake with
a food drive. Whether within the borders
of the U.S. or not, CAP members can be
counted on to draw on their emergency
services training to provide relief efforts.

Spearheaded by members of Emerald City Cadet


Squadron, the South Carolina Wing collected donations to
purchase everyday supplies, which were loaded into
backpacks and then personally delivered to veterans
recovering at Walter Reed Army Medical Center in
Washington, D.C., and Bethesda Naval Hospital in Maryland.

21

CAP has worked diligently to develop


partnerships with other aviation and
patriotic organizations. At CAPs 2011
Winter National Board meeting, CAP
National Commander Maj. Gen. Amy S.
Courter formalized an agreement with the
Armed Forces Benefit Association
represented by retired Air Force Gen.
Ralph E. Eberhart, the associations
chairman and president to offer CAP
members and their spouses term life
insurance with no aviation exclusions.
Here, Courter presents Eberhart with From
Maine to Mexico, which chronicles CAPs
World War II service. Another recent
agreement was signed with the Academy
of Model Aeronautics, opening up the
AMAs model airplane programs to CAP.

Following the magnitude 9.0 earthquake and


tsunami in Japan, cadets and seniors from Yokota
Cadet Squadron, in addition to putting in 12-14 hour
days at their military duties, volunteered to help
evacuate Department of Defense dependents, feed
and shelter more than 600 passengers from airlines
unable to land in Tokyo and assist the Red Cross in
canteen duties, serving food and carrying in supplies.
Here, Cadet Master Sgt. Michael Visnyei, cadet
commander, provides Red Cross assistance.

As part of CAPs annual Legislative Day visits to Capitol


Hill, a contingent from the South Carolina Wing visited the
office of U.S. Rep. Joe Wilson, R-S.C., to present him a
CAP coin, which he holds, and a newsletter highlighting the
wings accomplishments over the past year.

22

Financial

Statements
that reflect

accountability
and fiscal

integrity.

Civil Air Patrol

celebrated its third


consecutive unqualified
audit opinion in 2010, a
testament to the
organizations financial
accountability and its
emphasis on fiscal
integrity and responsibility.

CAP Financial

Statements

Accountable
Unqualified
Transparent

INDEPENDENT AUDITORS REPORT

To the Board of Governors


Civil Air Patrol
Maxwell Air Force Base, Alabama
We have audited the accompanying statement of financial position of Civil Air Patrol (a nonprofit
organization) as of September 30, 2010, and the related statements of activities, functional expenses,
and cash flows for the year then ended. These financial statements are the responsibility of Civil
Air Patrols management. Our responsibility is to express an opinion on these financial statements
based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United
States of America and the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States. Those standards require that
we plan and perform the audit to obtain reasonable assurance about whether the financial statements
are free of material misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes assessing the
accounting principles used and significant estimates made by management, as well as evaluating
the overall financial statement presentation. We believe that our audit provides a reasonable basis
for our opinion.
In our opinion, the financial statements referred to above present fairly, in all material respects, the
financial position of Civil Air Patrol as of September 30, 2010, and the changes in its net assets and
its cash flows for the year then ended in conformity with accounting principles generally accepted
in the United States of America.

24

Financial Report 2010 6/9/11 11:56 AM Page 25

In accordance with Government Auditing Standards, we have also issued a separate report dated
June 1, 2011, on our consideration of Civil Air Patrols internal control over financial reporting and
on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant
agreements and other matters. The purpose of that report is to describe the scope of our testing of
internal control over financial reporting and compliance and the results of that testing, and not to
provide an opinion on the internal control over financial reporting or on compliance. That report is
an integral part of an audit performed in accordance with Government Auditing Standards and
important for assessing the results of our audit.

Montgomery, Alabama
June 1, 2011

25

CIVIL AIR PATROL


STATEMENT OF FINANCIAL POSITION
SEPTEMBER 30, 2010

ASSETS
CURRENT ASSETS
Cash and cash equivalents

13,258,278

Short-term investments

4,282,402

Accounts, grants and loans receivable

4,099,541

Inventories

205,560

Prepaid expenses

372,186

Total current assets

22,217,967

NONCURRENT ASSETS
Cash - restricted

2,069,027

Long-term investments

382,885

Unconditional promises to give

7,882,753

Property and equipment, net of accumulated depreciation

81,178,438

Total noncurrent assets


TOTAL ASSETS

26

91,513,103
$

113,731,070

LIABILITIES AND NET ASSETS


CURRENT LIABILITIES
Accounts payable and accrued expenses
Current maturities of long-term debt
Deferred revenue

Total current liabilities

3,414,920
5,729
398,787
3,819,436

NONCURRENT LIABILITIES
Noncurrent maturities of long-term debt

27,217

TOTAL LIABILITIES

3,846,653

NET ASSETS
Unrestricted:
Undesignated
Board designated

20,317,819
4,457,845
24,775,664
85,015,727
93,026

Temporarily restricted
Permanently restricted
Total net assets
TOTAL LIABILITIES AND NET ASSETS

See independent auditors report and notes to financial statements.

109,884,417
$

113,731,070

27

Financial Report 2010 6/9/11 11:57 AM Page 28

CIVIL AIR PATROL


STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED SEPTEMBER 30, 2010
UNRESTRICTED

TEMPORARILY
RESTRICTED

PERMANENTLY
RESTRICTED

TOTAL

OPERATING REVENUES AND OTHER SUPPORT


Governmental appropriations and grants
Other program revenue
Membership dues
Governmental contributions
Contributions
Fundraising
Registration fees and events
Publications and advertising
Sale of materials, supplies and surplus property
Interest income
Investment income
Other
Net assets released from restrictions
Total operating revenues and other support

26,623,557
3,133,717
3,041,094
5,929,755
1,706,944
1,093,084
770,154
24,940
138,402
77,371
252,781
826,001
14,342,018

8,792
522,213
14,999,616
149,225
288
7,285
7,700
(14,342,018)

96
949
-

26,632,349
3,655,930
3,041,094
20,929,371
1,856,169
1,093,084
770,154
24,940
138,402
77,755
261,015
833,701
-

57,959,818

1,353,101

1,045

59,313,964

3,358,862
6,685,661
1,649,241
669,892
677,243
22,855,925

3,358,862
6,685,661
1,649,241
669,892
677,243
22,855,925

35,896,824

35,896,824

OPERATING EXPENSES
Program services:
Aerospace education and training
Cadet programs
Communication maintenance
Counterdrug
Drug demand reduction
Emergency services
Total program services

28

See independent auditors report and notes to financial statements.

UNRESTRICTED

TEMPORARILY
RESTRICTED

PERMANENTLY
RESTRICTED

TOTAL

OPERATING EXPENSES (Continued)


Supporting services:
Fundraising
Management and general
Membership development
Strategic communications

306,819
16,503,098
3,075,519
183,309

306,819
16,503,098
3,075,519
183,309

Total supporting services

20,068,745

20,068,745

Total operating expenses

55,965,569

55,965,569

1,994,249

1,353,101

1,045

3,348,395

284,874
263,207

(85,352)
11,930

3,885

199,522
279,022

Total nonoperating gains and losses

548,081

(73,422)

3,885

478,544

CHANGE IN NET ASSETS BEFORE PRIOR


PERIOD ADJUSTMENTS

2,542,330

1,279,679

4,930

3,826,939

39,341

(57,586)

(250,897)

2,581,671

1,222,093

(245,967)

3,557,797

22,193,993

83,793,634

338,993

106,326,620

Change in net assets from operations


NONOPERATING GAINS AND LOSSES
Gain (loss) on disposition of property and equipment
Net unrealized and realized gain on investments

PRIOR PERIOD ADJUSTMENTS


CHANGE IN NET ASSETS
NET ASSETS AT BEGINNING OF YEAR
NET ASSETS AT END OF YEAR

See independent auditors report and notes to financial statements.

24,775,664

85,015,727

93,026

(269,142)

109,884,417

29

CIVIL AIR PATROL


STATEMENT OF FUNCTIONAL EXPENSES
FOR THE YEAR ENDED SEPTEMBER 30, 2010

Program Services
Aerospace
Education
and Training
Advertising
Aircraft maintenance
Awards
Bad debts
Bank and credit card expense
Cadet activities
Conference
Contingency
Cost of goods sold
Depreciation
Equipment maintenance
Facility maintenance
Fundraising events
Insurance
Interest expense
Legal and accounting
Lobbying
Maintenance and equipment rental
Miscellaneous
Mission support
Payroll taxes and benefits
Professional services
Professional development
Postage
Printing and publications
Salaries
Senior activities
Supplies
Telephone
Travel
Vehicle maintenance

30

Cadet
Programs

Communication
Maintenance

Counterdrug

Drug Demand
Reduction

Emergency
Services

1,815
47,860
93,274
99,784
34,915
43,973
53,714
1,070,920
8,650
3,945
51,302
1,934
156,202
154,590
88,157
10,867
4,704
866,788
155,487
157,984
69,721
102,221
80,055

2,418
199,235
122,248
2,611
2,413,547
172,383
139,659
58,628
71,621
1,399,521
11,535
5,260
2,578
86,032
34,899
9,694
77,596
6,274
463,187
786,854
91,962
421,178
106,741

363
19,763
11,051
132,874
204,793
1,729
789
271,410
385
62,435
114,361
36,965
941
267,626
472,407
13,795
20,218
17,336

606
97,227
32,937
14,658
17,904
341,320
2,884
1,315
645
15,268
4,907
3,622
1,568
26,887
36,467
22,991
22,000
26,686

242
39,433
13,209
5,863
7,161
136,528
1,152
526
257
15,196
31,181
3,194
1,499
628
104,050
259,704
9,196
37,550
10,674

3,629
4,994,654
158,270
226,306
6,572,296
125,800
2,267,485
17,301
7,890
4,583
75,169
5,646,236
239,901
209,745
6,305
21,833
9,412
1,071,225
361
551,769
146,736
331,974
167,045

3,358,862

6,685,661

1,649,241

669,892

677,243

$ 22,855,925

Supporting Services
Fundraising

Management
and General

Membership
Development

Strategic
Communications

Total

254,232
6,090
10,651
35,846
-

18,313
1,377
2,701
17,849
34,115
237,243
15,015
2,815,016
74,295
1,667,079
1,078,021
3,104
316,016
12,000
169,257
44,304
1,609
1,249,117
531,185
106,377
86,297
6,630
5,624,163
17,206
948,470
581,547
716,310
128,482

40,523
12,713
4,216
29,235
276,545
14,667
17,904
529,975
2,884
1,315
5,307
326,896
318,613
8,541
20,539
1,568
1,288,115
70,806
23,753
54,718
26,686

22,104
160,418
74
713
-

306,819

$ 16,503,098

3,075,519

183,309

$ 55,965,569

See independent auditors report and notes to financial statements.

90,013
5,340,353
230,936
22,065
36,726
2,640,485
1,078,170
15,015
174,574
9,536,152
501,273
7,617,621
254,232
1,124,156
3,104
337,056
18,090
496,552
130,579
5,663,113
2,151,337
1,394,574
222,268
259,218
192,143
9,747,887
173,054
3,284,535
959,701
1,706,882
563,705

31

CIVIL AIR PATROL

STATEMENT OF CASH FLOWS


FOR THE YEAR ENDED SEPTEMBER 30, 2010

INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS


CASH FLOWS FROM OPERATING ACTIVITIES
Change in net assets
Prior period adjustments
Adjustments to reconcile change in net assets to net cash provided by operating activities:
Depreciation
Net unrealized and realized gain on investments
Gain on disposition of property and equipment
Changes in operating assets and liabilities:
Receivables
Prepaid expenses
Inventories
Unconditional promises to give
Accounts payable and accrued expenses
Deferred revenue
Net cash provided by operating activities

3,557,797
269,142
9,536,152
(279,022)
(199,522)
(2,047,805)
(117,817)
(173,897)
(1,868,300)
(2,960,705)
111,238
5,827,261

CASH FLOWS FROM INVESTING ACTIVITIES


Proceeds from sale of property and equipment
Purchase of property and equipment
Proceeds from sale of investments
Purchase of investments
Net cash used by investing activities

32

328,046
(9,509,581)
1,033,359
(870,121)
(9,018,297)

See independent auditors report and notes to financial statements.

CASH FLOWS FROM FINANCING ACTIVITIES


Payment of borrowings
Release of contractually restricted cash

(5,201)
4,275,499

Net cash provided by financing activities

4,270,298

NET INCREASE IN CASH AND CASH EQUIVALENTS

1,079,262

CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR


CASH AND CASH EQUIVALENTS AT END OF YEAR

12,179,016
$

13,258,278

Cash paid during the year for interest

3,104

Cash paid for income taxes - unrelated business income

12,160

SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION

See independent auditors report and notes to financial statements.

33

CIVIL AIR PATROL


NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2010

1.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES


Nature of Activities
Civil Air Patrol (the Organization or CAP), a civilian auxiliary of the United States Air Force (USAF), is a private nonprofit
corporation chartered July 1, 1946, under federal law. Civil Air Patrols principal activities are to provide voluntary contributions
of private citizens, and adequate facilities to assist in meeting local and national emergencies, to promote aerospace education
and training, and to provide a cadet training and motivation program. The Organizations activities are supported primarily by
governmental appropriations, contributions and grants, membership dues, and program fees.
CAP is organized into eight geographic regions. These regions are subdivided into Wings by the states falling within their
boundaries. Additionally, the District of Columbia and Commonwealth of Puerto Rico have CAP Wings. These 52 Wings are
then subdivided into groups depending upon size.
Basis of Accounting
The financial statements of the Organization have been prepared on the accrual basis, and include the accounts and financial
transactions of the National Headquarters and the Regions, Wings and Units below Wing level of Civil Air Patrol. All material
transactions between the divisions of the Organization have been eliminated.
Financial Statement Presentation
The Organization is required to report information regarding its financial position and activities according to three classes of
net assets: unrestricted net assets, temporarily restricted net assets, and permanently restricted net assets. Contributions are
recorded at their fair value in the period received.

34

1.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)


Use of Estimates in the Preparation of Financial Statements
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of
America requires management to make certain estimates and assumptions that affect the amounts reported in the financial
statements and accompanying notes. Significant estimates in these statements include useful lives for depreciation, contributed
facilities and allocation of expenses by function. Actual results could differ from those estimates.
Advertising
Advertising costs are expensed as incurred. Total advertising costs expensed for the year ended September 30, 2010, was
$90,013.
Cash and Cash Equivalents
The Organization considers all highly liquid investments with a maturity of three months or less when purchased to be cash
equivalents. Cash and cash equivalents for purposes of the statement of cash flows exclude temporarily and permanently
restricted cash and cash equivalents.
Investments
Investments in marketable securities with readily determinable fair values and all investments in debt securities are reported at
their fair values in the statement of financial position. Unrealized and realized gains and losses are included in the change in
net assets in the statement of activities as nonoperating gains and losses. Investment income reported as operating revenues
consists of interest and dividend income from investments. Investment income and gains restricted by a donor are reported as
increases in unrestricted net assets if the restrictions are met (either by passage of time or by use) in the reporting period in
which the income and gains are recognized.

35

CIVIL AIR PATROL


NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2010

1.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)


Accounts, Grants and Loans Receivable
Accounts, grants and loans receivable consist primarily of amounts due from members, CAP organizations and governmental
agencies, related to exchange transactions with those parties.
Unconditional promises to give that are expected to be collected within one year are recorded at estimated net realizable value.
Unconditional promises to give that are expected to be collected in future years are recorded at the present value of their
estimated future cash flows. The discounts on those amounts are computed using risk-free interest rates applicable to the years
the promises are received. Amortization of the discounts is included in contribution revenue. Conditional promises to give are
not included as support until the conditions are substantially met.
The Organization uses the allowance method to determine uncollectible receivables. The allowance is based on prior years
experience and managements analysis of specific receivables.
Inventories
Inventories for use and sale are stated at the lower of cost or market, with cost determined by the first-in, first-out method.
Property and Equipment
Property and equipment are recorded at cost or, if contributed, at fair value at the date of donation. If donors stipulate how long
the assets must be used, the contributions are recorded as restricted support. In the absence of such stipulations, contributions
of property and equipment are recorded as unrestricted support. Depreciation is computed using the straight-line method over
the estimated useful lives of the asset. It is the Organizations policy to capitalize property and equipment with a fair value or
cost over $5,000.

36

1.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)


Compensated Absences
Employees of the Organization earn and accrue annual leave. The cumulative amount of unused annual leave is included in
accounts payable and accrued expenses in the statement of financial position.
Deferred Revenue
Deferred revenues include advance payments of membership dues and fees. Dues are considered exchange transactions and
are recorded as revenues in the applicable membership period.
Income Tax Status
CAP has received notification from the Internal Revenue Service recognizing it as a tax-exempt organization under Section
501(c)(3) of the Internal Revenue Code. However, certain types of income may be subject to tax from unrelated business
income as defined by the tax code. The accompanying financial statements include a provision for estimated taxes on 2010
unrelated business income in the amount of $14,898.
On October 1, 2009, CAP adopted new guidance pertaining to accounting for uncertainty in income taxes. There was no effect
on net assets as a result of the implementation. As of September 30, 2010, the Organization has no uncertain tax positions that
qualify for recognition or disclosure in the financial statements and no interest and penalties related to income taxes. CAP has
filed its tax returns through September 30, 2009. The tax returns of Civil Air Patrol for years ended September 30, 2007, and
thereafter are subject to audit by the taxing authorities.

37

CIVIL AIR PATROL


NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2010

1.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)


Contributions
All contributions are considered to be available for unrestricted use unless specifically restricted by the donor. Amounts received
that are designated for future periods or restricted by the donor for specific purposes are reported as temporarily restricted or
permanently restricted support that increases those net asset classes. However, if a restriction is fulfilled in the same time period
the contribution is received, the Organization reports the support as unrestricted.
Contributions of utilities and use of long-lived assets are recorded at fair rental value, and contributed materials for use are
recorded at fair value.
Functional Expenses
The costs of providing the various programs and other activities have been summarized on a functional basis in the statement
of activities. Accordingly, certain costs have been allocated among the programs and supporting services benefited.

38

1.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)


Fair Value Measurements
FASB ASC 820, Fair Value Measurements and Disclosures, establishes a framework for measuring fair value. That framework
provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy
gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements)
and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy under FASB
ASC 820 are described as follows:
Level 1

Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets
that the Organization has the ability to access.

Level 2

Inputs to the valuation methodology include:


quoted prices for similar assets or liabilities in active markets;
quoted prices for identical or similar assets or liabilities in inactive markets;
inputs other than quoted prices that are observable for the asset or liability;
inputs which are derived principally from or corroborated by observable market data by correlation or other means.
If the asset or liability has a specified (contractual) term, the Level 2 input must be observable for substantially the
full term of the asset or liability.

Level 3

Inputs to the valuation methodology are unobservable and significant to the fair value measurement.

The fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to
the fair value measurement. Valuation techniques used need to maximize the use of observable inputs and minimize the use of
unobservable inputs.

39

CIVIL AIR PATROL


NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2010

1.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)


Subsequent Events
Management has evaluated subsequent events through June 1, 2011, which is the date the financial statements were available
to be issued.

2.

CASH
Cash which has been either restricted by the donor or designated by the governing board of the Organization is presented below:
Contractually restricted by the USAF for:
Future aircraft maintenance, modernization and procurement
Administrative and other operational expenses
Counterdrug administration
Restricted by donors for:
Cadet scholarships and activities
Aerospace scholarships and activities
Construction of facility
Other activities
Total restricted cash
Designated by the governing board for:
Cadet scholarships and activities
Facility maintenance
Other activities
Total designated cash

40

1,082,724
43,591
15,971
147,061
15,302
590,415
173,963
2,069,027
74,953
74,943
319,434
469,330

2.

CASH (Continued)
Cash unrestricted and not designated
Total cash
Statement of financial position presentation:
Cash and cash equivalents
Cash restricted
Total

3.

12,788,948

15,327,305

13,258,278
2,069,027

15,327,305

71,119
961,489
177,582
253,054
2,707,026
495,017

4,665,287

INVESTMENTS
Investments are presented at fair market value. Below is a summary of investments by major types:
Annuities
Common stock
Corporate bonds
Municipal bonds
Mutual funds
Real estate investment trusts
Total

41

CIVIL AIR PATROL


NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2010

3. INVESTMENTS (Continued)
The composition of the return on investments is as follows:
Investment income
Net unrealized and realized gain on investments
Total

261,015
279,022

540,037

Investments which have been either restricted by the donor or designated by the governing board of the Organization are presented
below:

Description
Restricted by donors:
Clara Livingston Fund
Historical Fund
Wirtschafter
Wing and Region investments restricted for
cadet scholarships and aerospace education
Designated by the governing board:
Reserve investments
Scholarship Fund

42

Cost
$

174,609
2,220
10,122

Unrealized
Appreciation
(Depreciation)
$

(9,698)
(122)
(561)

Fair Value
$

164,911
2,098
9,561

216,713

(10,398)

206,315

403,664

(20,779)

382,885

3,634,055
852,923

(403,698)
(94,765)

3,230,357
758,158

4,486,978

(498,463)

3,988,515

3. INVESTMENTS (Continued)

Description
Investments unrestricted and undesignated
Total

Cost

Unrealized
Appreciation
(Depreciation)

Fair Value

303,046

(9,159)

293,887

5,193,688

(528,401)

4,665,287

4,282,402
382,885

4,665,287

Statement of financial position presentation:


Short-term investments
Long-term investments
Total
Investments have been restricted for the following specific purposes:
Clara Livingston Fund Investments restricted for the Cadet Program.
Historical Fund Investments restricted to defray costs of the historical committee.
Wirtschafter Fund Investments restricted for cadet scholarships.
The governing board has designated unrestricted investments for the following specific purposes:

Reserve Investments Reserve investments are intended for use only in cases of extreme emergency and only when approved
by a resolution of three-fourths of the National Executive Committee.
Scholarship Fund Investments designated in a quasi-endowment sense to provide cadet scholarships.
43

CIVIL AIR PATROL


NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2010

4.

ACCOUNTS, GRANTS AND LOANS RECEIVABLE


Accounts, grants and loans receivable are due from the following:
USAF
Others
Total

5.

3,369,548
729,993

4,099,541

7,882,753

UNCONDITIONAL PROMISES TO GIVE


Unconditional promises to give are due in less than one year and consist of the following:
Restricted unconditional promises to give:
Restricted for the purchase of aircraft and vehicles

As of September 30, 2010, the Organization received from the USAF conditional promises to give of $827,670 that are not
recognized as assets in the statement of financial position. The promises are conditioned upon the Organization entering into
legally binding USAF approved purchase orders for equipment.

6.

INVENTORIES
Inventories for use and sale consist of the following:
Educational materials

44

205,560

7.

PROPERTY AND EQUIPMENT


Property and equipment consist of the following:
Land
Building and improvements
Aircraft
Computers
Vehicles
Office furniture and equipment
Building under capital lease
Office equipment under capital lease
Communication and other equipment
Construction in progress
Deposits on aircraft
Equipment not placed into service

566,571
5,971,330
120,145,337
2,902,334
19,719,751
229,980
253,148
9,995
19,487,295
562,592
480,000
1,882,249
172,210,582
91,032,144

81,178,438

Accumulated depreciation
Net property and equipment

As of September 30, 2010, improvements with a book value of $235,819 have been made to leased facilities. These
improvements are located at the Virginia Wing and North Carolina Wing in the amounts of $111,404 and $124,415, respectively.
Depreciation expense for the period ending September 30, 2010

9,536,152

Property and equipment donated directly or indirectly by the Department of Defense (DOD) can only be used for mission
accomplishment, must be kept a minimum of one year before disposal action, and must be returned to the donor unless a waiver
is granted, or unless the equipment is classified by the donor as nonreturnable.
Property and equipment purchased with funding from the DOD is restricted for mission support. Disposition of these assets
requires approval and instructions from CAP USAF. As of September 30, 2010, property and equipment restricted for specific
purposes amounted to $161,714,138, less accumulated depreciation of $86,815,310, resulting in a balance of $74,898,828.
45

CIVIL AIR PATROL


NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2010

8.

ACCOUNTS PAYABLE AND ACCRUED EXPENSES


Accounts payable and accrued expenses are scheduled as follows:
Accrued payroll and payroll taxes
Vendor payables

1,181,544
2,233,376

3,414,920

256,252
142,535

398,787

Total obligations
Less current maturities of long-term debt

32,946
5,729

Noncurrent maturities of long-term debt

27,217

5,728
6,135
6,580
7,052
7,451

32,946

Total

9.

DEFERRED REVENUE
Deferred revenue is detailed as follows:
Prepaid membership dues
Other
Total

10. NOTE PAYABLE


The Organization has a note payable secured by a building with a book value of $461,382. The note has an
interest rate of 6.95% with monthly payments of $653, and matures on September 30, 2015.

The future scheduled maturities of long-term debt are as follows:


Years ending September 30:
2011
2012
2013
2014
2015
Total
Total interest expense related to the above note is $3,104 for the year ended September 30, 2010.
46

11. NET ASSETS


Unrestricted Net Assets - Designated
The governing board has designated unrestricted net assets for:
Reserve funds
Scholarships
Other
Total

3,549,791
833,111
74,943

4,457,845

14,580
14,552

Temporarily Restricted Net Assets


Temporarily restricted net assets are available for the following purposes or periods:
Aerospace education activities:
Scholarships
Other
Cadet program activities:
Scholarships
Other

317,227
119,071

Other general activities:


Subsequent years use of property, equipment and inventories
Support, maintenance and modernization of aircraft fleet
Other
Total

78,457,872
5,171,866
920,559
$

85,015,727

Scholarships
Other

78,103
14,923

Total

93,026

Permanently Restricted Net Assets


Permanently restricted net assets are restricted for:

47

CIVIL AIR PATROL


NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2010

12. OPERATING LEASES


The Organization conducts a portion of its activities from leased facilities. Land, storage, office and hangar space is leased
under operating leases ranging from month-to-month periodic leases to fifty (50) year term leases, expiring at various dates up
to 2027. Many of these operating leases require no rental payments, or payments at less than fair rental value. Some of these
leases have options to renew with automatic increases in rental payments, while other leases may be canceled during the lease
term. Also, a facility is leased from a governmental municipality with a lease term (including automatic renewals) expiring in
2044. The Organization also leases various other equipment which is classified as operating leases. The majority of the leases
require the Organization to pay taxes, insurance, and repairs and maintenance. In most cases, management expects that, in the
normal course of activities, leases will be renewed or replaced by other leases.
The following is a schedule by years of future minimum rental payments required under operating leases that have initial or
remaining noncancelable lease terms in excess of one year as of September 30, 2010:
Years ending September 30:
2011
2012
2013
2014
2015

181,738
112,050
109,803
108,000
72,000

583,591

5,462,480
8,879,538

14,342,018

Total rental expense for all operating leases is $114,678 for the year ended September 30, 2010.

13. NET ASSETS RELEASED FROM RESTRICTIONS


Net assets released from restrictions are summarized as follows:
Satisfaction of purpose restrictions
Expiration of time restrictions
Total

48

14. EMPLOYEE BENEFIT PLAN


The Organization sponsors a 401(k) and defined contribution plan for the benefit of its employees, substantially all of whom
are eligible to participate after meeting minimum qualifying standards. Under the plan, employees may elect to defer a portion
of their salary, subject to Internal Revenue Code limits. The Organization may contribute a discretionary amount to the plan
with immediate vesting. Organization contributions to the plan were $367,004 for the year ended September 30, 2010, and are
included in payroll taxes and benefits in the statement of functional expenses.

15. RELATED PARTY TRANSACTIONS


Civil Air Patrol is an auxiliary of the USAF. The USAF can significantly influence the management and operating policies of
the Organization by the restrictions on its contributions and contractual restrictions placed on exchange transactions.
Accordingly, the USAF is a party related to the Organization. The Organization conducts emergency missions authorized by
the USAF and receives reimbursement as an exchange transaction. Additionally, the Organization receives contributions of
property, equipment, and use of facilities and utilities at no charge from the USAF to enable the Organization to continue
programs and activities.
A description of significant related party transactions with amounts is presented below:
Transactions Providing Revenue:
From the USAF for:
Governmental appropriations
Contributions for:
Use of facilities and utilities
Property, equipment and inventories
Total

22,051,336
2,009,416
14,966,060

39,026,812

2,009,416

Transactions Incurring Expenses:


Expenses with the USAF for:
Facilities

49

CIVIL AIR PATROL


NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2010

16. CONTINGENCIES AND COMMITMENTS


Legal Proceedings
There were legal proceedings against the Organization that arose in the normal course of business. While it is not feasible to
predict or determine the outcome of these cases, the majority of these potential legal damages are adequately covered by
insurance or by adequate defenses. It is the opinion of management that the outcome will not have a material adverse effect on
the financial position of the Organization.
Self-Insured Accident Benefits
The Organization has established self-insured accident coverage for its senior and cadet members which provides benefits in
the event of injuries or death incurred on authorized CAP activities. The benefits have been set at $10,000 for accidental death,
and $8,000 per accident for medical expenses. Management has not arrived at an estimate of this risk retention exposure.
Accordingly, no provision for liability has been established in the accompanying financial statements. Management believes
exposure not to be significant at September 30, 2010.

17. FAIR VALUE MEASUREMENTS


The level of an asset or liability within the fair value hierarchy is based on the lowest level input that is significant to the fair
value measurement. The following table presents the financial instruments subject to fair value measurement by valuation
hierarchy level as of September 30, 2010.
Level 1
Annuities
Common stock
Corporate bonds
Municipal bonds
Mutual funds
Real estate investment trusts

50

Level 2

Level 3

Total

71,119
961,489
177,582
253,054
2,707,026
-

495,017

71,119
961,489
177,582
253,054
2,707,026
495,017

4,170,270

495,017

4,665,287

17. FAIR VALUE MEASUREMENTS (Continued)


The Organizations Level 3 investments consist of investments in real estate investment trusts (REIT). These investments are
valued at estimated fair value, based upon the Organizations interest, as determined in good faith and reported by the REIT.
The following table presents a roll forward of the amounts for the year ended September 30, 2010, for Level 3 inputs:
Beginning
Balance
Real estate investment trusts

482,838

Net
Acquisitions
(Dispositions)
$

32,101

Net
Gains
(Losses)
$

(19,922)

Ending
Balance
$

495,017

18. CONCENTRATIONS
Concentration of Support
The Organization receives a substantial amount of its support from federal and state governments. A significant reduction in
the level of this support, if this were to occur, may have an effect on the Organizations programs and activities.
Concentration of Credit Risk
The Organization maintains its cash in bank accounts, which at various times during the fiscal year exceed the federally insured limits.
As of September 30, 2010, the Organizations uninsured cash balances totaled $7,695,194.

51

CIVIL AIR PATROL


NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2010

19. PRIOR PERIOD ADJUSTMENTS


The accompanying financial statements reflect adjustments resulting from a restatement of beginning net assets as of September
30, 2010, as follows:

Correction of investments at national headquarters


Correction of investments at Wing locations

Unrestricted

Temporarily
Restricted

Permanently
Restricted

39,341

(6,008)
(51,578)

(250,897)

(6,008)
(263,134)

39,341

(57,586)

(250,897)

(269,142)

Total

The above adjustments have no effect on the results of the current years activity.

20. SUBSEQUENT EVENTS


Subsequent to September 30, 2010, CAP received notification that a portion of its 2012 Federal funding would be reduced by
$4,449,000. CAP is optimistic this funding will be restored. However, the 2012 appropriated budget has been prepared and
approved considering the anticipated reduction.

52

Citizens Serving Communities


Civil Air Patrol National Headquarters
105 S. Hansell St., Bldg. 714
Maxwell AFB, AL 36112

www.gocivilairpatrol.com

CIVIL AIR PATROL

U.S. Air Force Auxiliary

Citizens
Serving
Communities
2010 Statistics
Volunteer Members:
35,183 adult members
25,950 cadets
37,149 voting-age members
7,038 aircrew personnel
30,682 emergency responders
Squadrons:
1,538 locations nationwide

CAPs signature red, white and blue aircraft became part of the Gulf
landscape for much of 2010 as aircrews surveyed for oil spill damage
with specialized aerial photography equipment (inset). This photo
shows a triple oil containment boom line protecting prime property of
the Grand Hotel Marriott Resort at Point Clear, Ala., where the eastern
shore of Mobile Bay meets the Gulf of Mexico. CAPs role included
documenting the integrity of booms along the coastline.

Aircraft:
550 single engine
42 gliders
2 balloons

With historic Gulf oil spill, CAP tackles


largest mission since World War II

Vehicles:
975 vehicles
Interoperable Communications:
668 VHF-FM repeaters
943 VHF-FM fixed stations
7,675 VHF-FM mobile stations
980 HF fixed stations
140 HF mobile stations
Missions:
1,016 search and rescue missions
615 finds
113 lives saved
249 counterdrug missions
827 other state support missions
Cadet Flying (CAP, AFROTC & AFJROTC):
30,162 cadets flown
19,910 hours flown
Total Hours Flown:
112,305
Finances:
$3.1M in state funding
$26.4M federal operations and
maintenance funding
$151M value of volunteers hours

ominating Civil Air Patrols missions for 2010 was its historic response to the
Gulf oil spill, considered to be the U.S. Air Force auxiliarys largest mission
since World War II. In effect for 118 consecutive days, CAPs oil spill response
involved 278 CAP volunteers, working more than 20,000 hours both in the air and on the
ground. In all, 54 CAP aircraft flew 1,011 air sorties for a total of 2,387 flight hours.
CAPs primary role was aerial photography, a task for which its aircraft are ideal.
CAPs professional aircrews took and delivered tens of thousands of digital images, which
helped officials assess the oils potential effects on the coastline, barrier islands, wetlands,
fishing industry, businesses and tourism. On each of their 1,011 flights, CAP crews captured
an average of 3,000 photos. Disaster officials used these photos to trace the oils movement
so they could make key decisions about where to send cleanup and containment assets.
Working side-by-side with the U.S. Coast Guard at the Mobile, Ala., incident
command post, CAP proved it could efficiently and effectively adapt to changing
requirements. A rotating schedule was established for CAP volunteers, who came from
multiple states, in tandem with overlapping incident commander assignments, so
CAPs base of operations was always fully staffed. Its members developed new
software to process the extraordinary volume of daily photos, each encoded with GPS
coordinates and the date and time it was taken. The photos were stitched into
panoramas and reviewed daily to allow rapid, coordinated decision-making. The
images also proved crucial as a historical record of the spill.
As the mission evolved, CAP aircraft also became a popular and cost-effective
choice for quickly moving officials from one area to another and for inventorying
equipment at various staging areas.
Coast Guard Capt. William Drelling, deputy commander of Sector Mobile, told
CAPs national commander, Maj. Gen. Amy S. Courter, I want you to know how much
good work CAP did for us, and at a fraction of the cost 10 cents on the dollar.

National commander Maj. Gen. Amy S. Courter (courtera@earthlink.net)


National vice commander Brig. Gen. Charles L. Carr Jr. (ccarr@cap.gov)
NHQ address: 105 S. Hansell, Bldg. #714, Maxwell AFB, AL 36112; Phone: Toll Free 877-227-9142; Website: www.gocivilairpatrol.com

Congressionally chartered mission No. 1: Emergency Services

he role of Civil Air Patrol in the Gulf oil spill


response CAPs single largest mission since World
War II led the organizations 2010 emergency
services missions in numbers, length and intensity. Involving more
than 278 volunteers from 10 wings over a 118-day period, the oil
spill response reaffirmed CAP volunteers ability to support a
major, extended operation that included a crushing demand for
thousands of aerial photos each day.

Civil Air Patrols expertise in aerial photography got a workout in 2010


with the organizations response to the Gulf oil spill. CAPs low-andslow aircraft provide the perfect vantage point for photos officials use
to assess damages and deploy assets. During the oil spill crisis,
thousands of photos were taken by multiple CAP aircrews along the
Gulfs shoreline every day for months. CAP devised special software
to speed the processing time for this enormous quantity of photos to
just a handful of hours, while a private company under contract to the
federal government threaded the photos together to provide a bigpicture view. Above, a representative of the U.S. Coast Guard
discusses oil spill data with CAP members.

When Civil Air Patrol ground teams arrived on the scene


of this Navy helicopter crash in West Virginia, the
chance there would be survivors looked bleak.
Miraculously, all 17 on board were alive, though most
were injured. CAP volunteers worked for 20 straight
hours in blizzard conditions, often in darkness, on a
remote mountainside to extract the victims and
transport them to medical facilities. In Arizona, enduring
similar weather, CAP members helped save 54 people
stranded by a sudden snowstorm. While CAP totaled
fewer search and rescue flying hours in 2010, more lives
were saved. That is due, in part, to advances made by
CAP members in radar and cell phone forensics, which
helped reduce search areas and allowed CAP to locate
survivors more quickly.

2010 also saw CAP credited with saving 113 lives across the
nation the 10th-highest number of saves in CAPs 69-year
history. Meanwhile, CAP provided disaster relief during
unprecedented flooding in the Midwest and the eastern half of the
country, assisted law enforcement agencies in seizing $1.36 billion
in illegal drugs and drug money and performed critical homeland
security missions by posing as intercept and enemy targets for Air
Force fighters.

Like clockwork, spring 2010 brought flooding to much of the Midwest, Ohio
Valley and Northeast. CAP was on the scene, working from the air to take
photographs used to make critical decisions about threats to lives and
infrastructure; on the ground, members helped with sandbagging and
delivery of essential goods and services. 2010 was also marked by CAPs
response to another emergency: The Hawaii Wings airborne warnings about
a possible tsunami triggered by an earthquake in Chile drew rave reviews
and widespread publicity.

The Surrogate Predator ball attached beneath a Civil Air Patrol planes wing allows the
aircraft to function as a tool to train U.S. military personnel before they deploy overseas
to combat zones. CAP planes outfitted this way participate in air warrior exercises
known as Green Flag, based in Louisiana and Nevada. Using this cutting-edge 21st-century
technology is just one way CAP plays an active role in homeland security. CAP aircrews
also act as mock targets on air defense missions, provide air escorts for Navy ships along
waterways and assist border patrol efforts.

Congressionally chartered mission No. 2: Cadet Programs

ivil Air Patrol inspires youth to be responsible citizens.


Cadets serve their communities by helping with CAPs
real-world humanitarian efforts. In addition, they gain
an appreciation for Americas role in the global community by
serving as goodwill ambassadors abroad or hosting aviation-minded
youth from around the world. During visits to Washington, D.C.,
cadets display their respect for America and commitment to public
service. Responsible citizenship is the cornerstone of cadet life.

As a testament to its relevance and appeal, the cadet program


grew 9.5 percent over the past year, from 23,888 cadets in 2009 to
26,157 in 2010. Whether as members of school- or communitybased squadrons, cadets, ages 12-20, benefit from a complete
curriculum that teaches respect, leadership, community service and
aerospace education. The opportunity to fly is a major attraction
for cadets, and 28,608 took advantage of orientation flights in
2010, a 10 percent increase over 2009.

Cadets in Civil Air Patrol enjoy opportunities not readily available for many youth. For instance,
these cadets are visiting the U.S. Capitol in Washington, D.C., while taking part in CAPs Civic
Leadership Academy. Participants study the federal government and explore public service careers
during an unforgettable week in the nations capital. With a curriculum emphasizing persuasive
leadership, cadets develop skills they will need to become consensus-builders in their communities.
As a capstone activity, cadets visit Capitol Hill and help articulate CAPs value to America.

Civil Air Patrol develops youth through self-paced study of the


art of leadership. Cadets learn how to lead through formal
classroom instruction and a laboratory of hands-on experiences
where they apply leadership principles to real-world challenges.
Through a graduated curriculum, they first learn to follow, then
to lead small groups, ultimately experiencing command and
executive-level leadership, advancing in rank and earning honors
along the way. Topics include how to think critically, communicate
effectively, make decisions, motivate and manage conflict. Selfdiscipline and teamwork are also emphasized.

Civil Air Patrol cadets experience flight firsthand


through the efforts of CAP adult volunteers, aviation
enthusiasts eager to share their love of flying. Often,
it is through CAP that a young person receives the
first flight of his or her life. Aviation education is
delivered in both the classroom and the cockpit.
Cadets gain an understanding of the complex forces
that cause an aircraft to achieve lift and other
fundamental topics, such as navigation, engines and
aerospace history.

Eager to show off their aerospace knowledge, physical fitness and precision on the
drill field, cadet drill teams and color guards vie against one another in competitions
at the state, regional and national levels. Rising to the occasion with good
sportsmanship, cadets amaze spectators with their skill and esprit de corps. The
competitions are varied, but this activity is all about character. Each year, 144 cadets
earn the right to compete for national honors, and about 800 more compete locally.

Congressionally chartered mission No. 3: Aerospace Education


ivil Air Patrols aerospace education program includes
history, aerospace principles and the relevance of
flight in todays world. Even nonmember youth
benefit from the program, which is offered in schools nationwide
through textbooks, lesson plans, learning aids and hands-on

The Air Force Association, Civil Air Patrols


leading educational partner, provides annual
assistance for promoting aerospace education in
CAP units and Americas classrooms. Each year
this affects more than 50,000 young people.
AFAs support also includes the opportunity for
CAP cadets to participate in the organizations
CyberPatriot competition, shown above, a
national cyber defense challenge that provides
youth with hands-on learning in a fun
environment.
This year, CAP tripled its
participation in CyberPatriot, accounting for
nearly one-third of the 476 teams in the AllServices Division. CAP placed second and third
nationally in last years competition.

activities. Also, teachers are provided orientation flights and


educator memberships to enhance their students learning
experiences while inspiring interest in careers in science,
technology, math and engineering.

CAPs Aerospace Connections in Education program provides grade-level specific, inquirybased aerospace instruction for K-6 students. Almost 150 ACE lessons are aligned with national
standards of learning and use the aerospace theme to promote science, technology,
engineering and math (STEM) subjects, as well as character development and physical fitness.
The ACE program supplements the schools core curricula, adding educational rigor and
relevance. The program is being implemented in more than 400 classrooms in 27 states,
annually exposing some 11,000 youth to STEM-related careers.

Aerospace Education Excellence is an engaging, hands-on


program designed for CAP units and K-12 classrooms
across the country. Five volumes of AEX activities help
make the study of science, technology, engineering and
math exciting and meaningful. The program, which affects
about 35,000 youth annually, inspires the aerospace work
force of tomorrow.

Teacher members of CAP are


supported in the classroom
with more than 20 national
learning standards-aligned
educational products, as
well as opportunities for
awards, grants, professional
development and a unique
CAP teacher orientation flight
program. These flights provide
firsthand knowledge of the
applicability
of
STEM
instruction as it relates to flight
and
motion,
motivating
participants to share their
newfound knowledge with
their students. Since its
inception in 2005, the program
has impacted more than 1,500
teachers and 60,000 students.
In 2010, more than 350
teachers were flown, ultimately
touching the lives of more than
14,000 students.

NATIONAL HEADQUARTERS
CIVIL AIR PATROL
UNITED STATES AIR FORCE AUXILIARY
MAXWELL AIR FORCE BASE, ALABAMA 36112-6332

24 January 2011

MEMORANDUM FOR BOARD OF GOVERNORS, NATIONAL BOARD & ADVISORS


SUBJECT: 2010 Year in Review
1. Numbers tell the story for Civil Air Patrols calendar year 2010, which included these
highlights:
First and foremost, CAP was credited with saving 113 lives in fiscal year 2010, as our
members launched search and rescue operations that both tested and proved their mettle;
CAP saw its membership grow to more than 61,000, despite tough economic times;
Participating in its largest single mission since World War II, CAP took tens of thousands
of aerial photos over 118 days helping the Federal government to identify and mitigate
damages from the Gulf oil spill;
At the request of Air Combat Command, CAP initiated a second Surrogate Predator
operational base in Las Vegas, NV. Both this Green Flag mission base and the one in
Alexandria, LA provided outstanding live Predator training support to DoD forces before
they deployed overseas into combat areas;
CAP executed 100% of its Federal budget for the fourth year in a row by using sound
management practices as well as tools like the Web Mission Information Reporting
System (WMIRS);
Other WMIRS tools like electronic flight release and aircraft discrepancy reporting have
increased safety and accountability while greatly reducing the paperwork required;
CAP implemented the Operational Resource Management System (ORMS). This new
system and its implementing regulation, CAPR 174-1, provide guidance and standards on
acquiring, controlling, managing and disposing of all CAP property. It is a major step
forward for achieving 100% equipment accountability. The first annual inventory was
conducted successfully nationwide using the new system;
CAP earned a second unqualified A+ audit opinion through enhanced emphasis on
accountability and the desire to be transparent in fiscal matters, and expanded the audit of
equipment and non-expendable assets at both Wing and unit levels to ensure all corporate
assets are accurately accounted for;
Thanks to more advance planning, CAPs premier community service project, Wreaths
Across America, continued its upward trend in the number of remembrance wreaths
placed on veterans graves, this year seeing totals up to 219,000. CAP was responsible
for placing 39,000 of these wreaths;
Safety, a number one priority with CAP, enjoyed the lowest number zero! for vehicle
accidents and fatalities.
2. In the midst of this very active year, CAP reclaimed its national headquarters building
following a year and half of refurbishment. Employees moved back into a modernized facility in
August with a formal ribbon-cutting held in October. The national headquarters staff also hosted
the National Executive Committee and Board of Governors members for their fall meetings.
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3. Despite a marked increase in lives saved for 2010, CAP continues to experience a shift in its
missions from classic search and rescue to more homeland security and disaster relief.
4. It is a tribute to CAPs leadership, members and employees that CAP has successfully adapted
to a changing world while maintaining and even improving its cost-effectiveness and quality of
services and programs, as evidenced by the following achievements in CAPs key missions
emergency services, cadet programs and aerospace education accompanied by important
achievements in support services:
Operations Achievements
o CAP aircraft flew 112,305 flying hours in FY10, of which 74% were flown on Air
Force Assigned Missions.
o Over 150 personnel supported the Deepwater Horizon response over the course of
almost 4 months. Aircrews, operating out of bases in Florida,Alabama, Missisppi
and Louisiana, took hundreds to more than a thousand photos each day as they flew
more than 1,000 sorties and almost 2,400 hours in support of the United States Coast
Guard and response agencies from the gulf coast.
o Though SAR flying hours dropped to 2,506 hours, those hours were much more
effective. In an average year CAP is typically credited with saving 80 lives, but in
FY10 CAP was credited with saving 113 lives. Ironically, part of the reason less
hours were flown and more saves were credited were due to advances being made in
radar and cell phone forensics by CAP members reducing the search areas and
helping locate survivors sooner.
o CAPs participation in Air Force exercises remained high, flying over 1,900 hours of
air defense missions. This helps to ensure Air Force units across the country
responsible for intercepting low and slow aircraft threats are prepared to do so by
practicing with CAP on target simulation missions.
o Drug interdiction missions also remained a high priority. 10,727 hours were flown
on these missions, and though not all reports are in, early estimates are that CAP
crews were involved in operations locating over $1.3B in illicit drugs.
o CAP continued to fly 60-80% of AFNORTHs scheduled sorties each day and flew a
multitude of missions for Air Force installations across the country, including 757
flying hours on low-level route survey, and 461 flying hours on range support and
fire patrol missions.
o AFROTC flying increased 13% from FY09 to fly 3,200 hours in FY10.
o AFJROTC flying also went up in FY10. CAP flew 34% more for AFJROTC, flying
1,374 hours.
o CAP cadet orientation flights also rose over 9%. CAP flew 28,608 cadets and 12,898
hours in FY10. A reorganization of the Glider Program should provide more cadets
with the opportunity to experience glider flying.
o Using the permanent facilities opened at Camp Atterbury just a few years ago, CAP
provided training to more than 900 members at the National Emergency Services
Academy (NESA) Center for Operations Excellence during the main summer schools
and other training sessions held throughout the year. Facility upgrades are already
making a huge impact, and the facilities continue to be developed and expanded.
o The National Technology Center in Richmond, VA moved into new facilities last
summer, and this will allow them to provide mission critical tech support for
operational equipment and serve as a COOP site for the NOC and AFRCC for
decades to come. Though there is still work to be done to complete the narrowband
transition, over the last year communications team members at all levels made great
strides. Over 500 repeaters have been installed and put online throughout the country
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-- over 96% of the repeaters -- and the remaining repeater installations should be
complete in FY11.
Cadet Program Achievements
o Cadet membership increased to 26,100 youth nationwide--a 9.6% increase over 2009
and a whopping 18% increase over 2008. This increase is attributed to numerous
improvements in Cadet Program management made over the past two years by the
CAP HNQ staff in partnership with the CAP volunteer Directors of Cadet Programs,
and, especially, commanders at all organizational levels of CAP.
o Cadet orientation flying hours increased from 11,801 hours in 2009 to 12,898hours in
2010--up 9.3%. Flying remains a tremendous motivator in the Cadet Program.
o In 2010, Phase I and II cadets began studying the new, engaging, academic
standards-based Learn to Lead textbooks. The new curriculum also includes a Cadet
Drill Guide, Activity Guide, Curriculum Guide and a full library of ready-to-use
lesson plans. The new Learn to Lead textbooks for Phase III and IV cadets will be
published in late 2011.
o More than 1,300 cadets and senior members participated in over 30 National Cadet
Special Activities this past summer. These national activities focus on leadership,
aerospace careers, flying, Air Force careers and character development.
o CAPs participation in CyberPatriot, the Air Force Association sponsored
competitive educational program designed to nurture the next generation of cyber
warriors, increased from 50 teams in 2009 to 150 teams for the 2010-11 program. Of
the 12 teams awaiting the 4th stage of the competition to be held in conjunction with
the AFA Warfare Symposium in February 2011, 4 of the teams are from CAP. The
5th and final stage of the competition will be held at the CyberFutures Conference in
Maryland in early April 2011.
o Four cadets and two escorts attended the 2010 National Character and Leadership
Symposium sponsored by the U.S. Air Force Academy. This event is the premiere
venue for young adults to engage national figures on matters of ethics and moral
leadership.
o Cadet Officer School (COS) expanded the reach of its program in two innovative
ways this past year. First, 10 AFJROTC cadets attended and graduated from the
school--a partnership that both organizations plan to continue. Secondly, CAP
launched Falcon Flight, which challenges COS alumni to return to COS and share
their experiences with the new class.
o CAP hosted the annual planning conference for the International Air Cadet Exchange
Association. Delegates from 15 nations met in Seattle, where CAP volunteers
supplemented their planning sessions with tours of Boeings headquarters and the
Museum of Flight, as well as a cruise through Puget Sound. During the 2010 IACE
program itself, CAP sent 70 cadets and escorts overseas and welcomed 70
international youth in this exciting program that promotes goodwill and
understanding through a common love of aviation.
o Over 500 CAP cadets, staff and families attended the 2010 National Cadet
Competition at the Evergreen Aviation Museum in McMinnville, Oregon. The RMR
(Utah Wing) Drill Team and the SER (Florida Wing) Color Guard took top honors.
o Over $300,000 in college and flight scholarships were made available to CAP cadets
in 2010. The application process has been much easier through the use of an
electronic application process.
o In 2010, the Cadet Program and the Drug Demand Reduction Program reorganized
to form a stronger partnership to support CAP cadets. Accordingly, DDR officers are
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now under the umbrella of the Cadet Program, and plans are underway for two new
activities in 2011; the Red Ribbon Leadership Academy and National Character Day.
DDR field operations in 2010 enabled 593 squadrons, 8,615 cadets and 6,548 seniors
to raise drug awareness by partnering with local agencies across the nation. Also in
2010, DDR expanded its educational outreach programs to include support to DoD
STARBASE Academies located on Air Force installations across the nation.
The new Quality Cadet Unit Award program is underway. Squadrons that fulfill 5 of
8 objective criteria automatically qualify for the award. The first set of winners will
be determined in early January 2011. This program is designed to encourage cadet
units to focus on key Cadet Program fundamentals.

Aerospace Education Achievements


o More than 1,200 CAP squadrons and classroom teachers participated in CAPs 2010
K-12 Aerospace Education Excellence (AEX) Award program. The program
reached more than 35,000 cadets/students nationwide. AEX uses an aerospace theme
to enhance standard subjects taught in schools and to promote science, technology,
engineering and math (STEM) subjects and careers.
o The K-6 Aerospace Connections in Education (ACE) program has increased
significantly for the 2010-2011 school year. During academic year 2009-2010, 62
schools participated. For 2010-2011, 82 schools are currently participating, with
more anticipated. The student load has increased 77% thus far--from 6,500 students
in 2009-2010 to over 11,500 students in 2010-2011. The ACE Program provides a
grade-level specific curriculum that integrates an aerospace theme to promote STEM
academics, character education and physical fitness for living a healthy and drug-free
lifestyle.
o In a major academic effort between the NHQ AE staff and volunteers, the 2nd
edition of the 6 Aerospace Dimensions modules were completed and published in
2010. The Dimensions modules support Phases I and II of the aerospace education
pillar in the Cadet Program. The new modules updated and expanded the first edition
which was published in 2000.
o Twenty new Satellite Tool Kit (STK) scenarios were developed in 2010 to provide
CAP members with step-by-step instructions on how to use this outstanding satellite
software program which includes orbital mechanics and space operations. The
program license was donated to CAP members by Analytical Graphics.
o CAPs Teacher Orientation Program (TOP) Flights increased from 250 teachers
flown in 2009 to 320 teachers flown in 2010. Teachers return to their classrooms
after these flights and share their CAP flying experience with approximately 15,000
students.
o 3 Aerospace Education Officer Schools were conducted in 2010, with almost 100
squadron, group, wing and region AE officers from 31 wings attending. Graduates of
these schools return to their CAP organizations with a formal Aerospace Education
Plan of Action to implement in the coming year for cadet and senior members
assigned to their units, as well as in outreach efforts to the general public via the
classrooms of America.
o CAP has developed several organizational collaborative initiatives to promote
aerospace education opportunities to students, teachers and CAP cadets:
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The Air Force Association takes the lead in partnership support by providing
over $22,500 annually to fund grants for AE projects in CAP units and AEM
classrooms, as well as by supporting the CAP K-6 ACE Program; involving CAP
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cadets in the AFA CyberPatriot program competition; recognizing a Cadet of


Excellence from each CAP squadron and a National CAP AE Cadet of the Year;
mutually promoting each others organizational memberships; and promoting the
Arnold Air Society and Silver Wings 250 chapters' endorsement of the CAP K-6
ACE Program curriculum for use across the nation in the ROTC Joint National
Project entitled the "Elementary STEM Orientation (ESO) Program."
The Department of Defense STARBASE Program has endorsed CAPs AE
Membership program to promote to teachers attending the STARBASE
Academies on Air Force installations across the country. These academies are
distributing CAP AE, DDR and Cadet Program materials to the 5th grade
through middle school students attending the academies.
FLIR Systems, Inc., the world leader in thermal imaging equipment, provided
financial support to the CAP K-6 ACE program.
AFJROTC and CAP are sharing aerospace materials, resources and opportunities
between the two organizations to benefit the cadets and the instructors.
CAP is working to build grass roots venues to promote CAP's AE and Cadet
Programs via the Teacher Orientation Program (TOP) Flight initiative at state
and regional National Science Teachers Association conferences, with state
Aeronautics Departments, and through NASA education centers.
CAP joined forces with the Academy of Model Aeronautics (AMA) to combine
resources and personnel to perpetuate interest in and knowledge about remote
control aircraft and unmanned aerial vehicles (remotely piloted aircraft) for CAP
cadets.
CAP earned a $10,000 grant from the LightSpeed Foundation.

Safety Achievements
o CAPs safety awareness and program management has significantly improved with
the addition of NHQ safety staff working in conjunction with the National Safety
Team (NST). The NST is comprised of the National Safety Officer and volunteer
assistants assigned as subject matter experts for flight and ground safety.
o CAP has achieved a 50% reduction in powered aircraft accidents in FY10. The last
reported NTSB rate for U.S. General Aviation (2008) was 7.11 per 100,000 flying
hours, whereas CAPs rate for FY10 was 1.78.
o FY10 showed a 100% reduction in vehicle accidents (zero), a 67% reduction in
bodily injury accidents, a $500,000 reduction in repair costs and ZERO fatalities.
o Numerous online and classroom training courses were added to CAPs safety
education program, including computer based safety education technology, a safety
education tracking program and a hazard reporting system. A Safety Officer College
is also slated for FY11 at Kirtland AFB.
o Safety marketing and awareness has continued to expand with the addition of safety
advertising in the Volunteer magazine. The Safety Beacon newsletter has also been
re-invented with a new format and improved content.
o The following safety regulations have received important updates:
-

Safety apparel policy updated to meet DOT standards


NTSB reporting requirements updated to comply with 49 CFR Part 830
Safety education and risk briefing policy improved
Introductory safety education requirements updated
Cadet safety officers approved for addition at all levels
Mishap definitions expanded to promote close-call reports

Professional Development Achievements


o The new CAP Officer Basic Course graduated over 2,100 students in 2010, over 4
times the number of ECI-13 graduates in 2009 (469). As a result, the number of
Level II completions in the CAP Professional Development (PD) Program more than
doubled in 2010-- from 660 in CY09 to 1,452 in CY10.
o With assistance from the Wyoming Wings Colonel Stan Skrabut, the CAP NHQ PD
staff expanded the online version of the Squadron Leadership School and developed
an online version of the Corporate Learning Course. These online courses provide an
option for CAP members who are unable to attend in residence.
o The National Staff College (NSC) and Wing Commander Course (WCC), conducted
annually at Maxwell AFB, were great successes this past year--NSC had 70 students
graduate and WCC had 17 graduates. Additionally, this past year both courses were
supplemented by an online read ahead website and other preparatory activities for
students. These executive-level courses prepare graduates for increased command
and staff performance at various organizational levels in CAP.
O New guidance and tools were made available in 2010 for all Professional
Development Officers. The revision of CAPR 50-4 will help testing officers better
understand and implement test administration. Also, CAPP 50-9, New Horizons, was
published to assist cadets transitioning to senior member status. A Professional
Development Resource Center containing DVDs and lesson plans on topics such as
leadership, management, communication, team building, problem solving, etc, was
created at CAP NHQ and is available for loan to CAP units.
Chaplain Corps Achievements
o CAP continues to have the largest volunteer chaplain corps in the world, numbering
close to 900 chaplains and character development instructors. To provide increased
administrative support to this important program, responsibility for assisting the CAP
Chaplain Corps was transferred in 2010 from the CAP Operations Directorate to the
CAP Educational Programs Directorate and placed in the Professional Development
Division.
o Personnel files for chaplains and character development instructors were scanned for
electronic storage, facilitating rapid retrieval of data pertinent to assignments,
promotions and other personnel actions.
o Weekly application status reports were developed to track the progress of pending
chaplain and character development instructor application packets received by NHQ.
o A new Flight Time: Values for Living pamphlet (CAPP 265-2, Vol 3) was developed
by the Chaplain Corps and published this past year to support the professional
development of CAP cadets and senior members.
o CAPs Chaplain Corps assisted with the Deepwater Horizon Gulf oil spill disaster.
As an example, one CAP wing chaplain served as CAPs representative on the Joint
Forces Ministry Team at the Deepwater Horizon incident command post for more
than 4 months.
E-Learning Achievements
o The new CAP Officer Basic Course, as well as courses for IG and Finance, were
launched and administered during 2010 using the Blackboard Learning
Management System (LMS). Also, the low-cost, high-volume Moodle LMS was
added as an option for increased online enrollment capacity. Moodle will also be
made available for hosting specialized wing and region courses.

The CAP e-Learning staff supported the Cadet Program staff by organizing the 2010
Civic Leadership Academy curriculum and placing the curriculum on the Blackboard
LMS for pre-course preparation by prospective students.
o The online CAP Knowledgebase not only provided job performance support for
CAP members, but also handled thousands of general inquiries about CAP and its
missions. The system is available 24/7 and is updated daily. Major upgrades were
made to the CAP Knowledgebase in 2010 to accommodate up to 50,000 site visits
per month.
o

Logistics/Mission Resources Achievements


o 2010 was a year filled with big challenges and successes for the logistics directorate.
In addition to heavy mission tasking, LG helped facilitate the move back into the
renovated headquarters building by moving furniture and computers, ordering
furniture and audio visual equipment, and ensuring that the telephone system was setup and ready when the move was complete.
o Contracting (LGC) executed over 1,000 actions involving nearly 4,500 line items
totaling some $23 million of which nearly 90% was competitive and 55% went to
small, disadvantaged and woman-owned firms. Numerous other important contracts
were awarded including 12 new aircraft, nearly 100 vehicles, 330 laptops for field
use, new furnishings for the remodeled NHQ facility, a state-of-the-art audio visual
system for the NHQ conference room and 17 five-year consolidated aircraft
maintenance contracts including 6 renewals. LGC also awarded five-year follow-on
contracts for printing and distribution of the Volunteer Magazine, DDR Promotional
Items, Program Travel, Audit Services and Network Security. New contracted
services in 2010 included auditing the 401k plan and investment management. All
five-year contracts contain at least one option for an additional five years, which will
lead to many long-term relationships with key service providers.
o In FY10, 37 new vehicles were purchased with the annual vehicle buy. For the
second year in a row, the Air Force provided end-of-year funding to purchase an
additional 62 vehicles bringing the yearly buy total to 99. This years buy replaced a
large number of vehicles that were identified as too costly to repair and vehicles from
the 100 oldest list, improving the overall safety and reliability of the CAP vehicle
fleet. The buy also reduced the average vehicle age to 10.0 years.
o In the aircraft division, the fleet continued to get modernized by adding 12 new stateof-the-art Cessna 182T aircraft equipped with Garmin G1000 equipment. Three of
these were turbo 182Ts that went to Rocky Mountain, Southwest and Pacific
Regions. The initiative to refurbish some of the older aircraft also continued this
year. Refurb candidates were selected from older, but better, aircraft and equipped
with new engines, the CAP paint scheme and upgraded interiors. To top it off, a new
avionics package was added, complete with the Garmin 430 GPS, XM weather and
Aspen EFD 1000 Pro Evolution Flight Display. Initial efforts focused on Cessna 172
aircraft, but this year we also completed one Cessna 182 and have two Cessna 206s
in the program, bringing the total number of aircraft in our refurb program to 11.
Board of Governors members were able to see a refurbished aircraft up close at their
December meeting held at NHQ.
o In FY10, we were able to get all but one wing into the consolidated maintenance
program, bringing the total number of aircraft to 540.
o In Early October, two of our members traveled to Lackland AFB to assist AAFES in
reducing a 12-week backlog in cadet uniform shipments.
o Our small but remarkable mailroom staff was impressive during the National
Headquarters building renovation. They provided two daily mail runs to four
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separate locations, picking up and dropping off mail and other distributions. In
addition to regular quarterly mail-outs, the mailroom packaged and processed
requests for more than 300,000 recruiting items, over 26,000 AE items and more than
250,000 CAP forms, pamphlets and certificates. They played a major role in setting
up and moving back into the renovated headquarters building, and had the facility in
inspection condition for the NHQ open house and ribbon cutting ceremony.
Plans and Requirements/Information Technology Achievements
o Initial work on a new membership system for eServices began. The new system will
integrate with an off-the-shelf association management system called Personify.
When launched, the new system will improve membership reporting and provide
better synchronization with NHQ accounting software.
o The CAP Online Safety Education application is now available in eServices. The
application presents various safety courses and provides a way to track all required
safety training for CAP members. Successful passage of a short quiz at the end of
each element automatically logs completion and updates members safety education
records. The CAPWATCH download also contains the new information. The
application also permits commanders and safety officers to input safety briefing
attendance for several members at a time.
o The National Check Pilot Standardization Course is now available for check pilot
upgrades and continuation training. The course includes all courseware, videos and
exams necessary to gain and maintain the check pilot qualification.
o Cadet leadership and aerospace testing is now available in eServices. Cadets have
the opportunity to take most individual achievement tests online in a secure
environment at a time and place of their choosing. Use of the Cadet Online
Achievement Test System is not only convenient for the cadet, it also frees up
approximately one hour on the squadrons training schedule each month. The new
testing system also reduces the squadrons administrative burden, since test scores
are automatically posted to the Cadet Promotions Application in eServices.
o Expanded G1000 study material is now available through eServices and the
Stan/Eval web page. This material is for CAP pilots who are checking out in the
C182 NAV III so they are better prepared for both the ground course and flight
training.
o Operations Qualifications was updated to version 2.0, which includes a new look and
feel with a more responsive user interface. Additionally, every member has access to
any member's Ops Qual information. The information is read-only for those without
edit permissions. The requirement to download the font for the 101 card barcode has
been eliminated, and scanned copies of ES and pilot documents can now be uploaded
into the system. There are also numerous new hover-overs to provide detailed
information regarding validators and approvers and associated dates. Lastly, the
Flight Release Officer Support Report is now real-time and no-longer reflects day-old
information.
o Permissions for certain applications within eServices are now tied to members duty
positions. The Applications Assigned by Duty Position report located under the
Restricted Apps and WSA Info section in eServices shows which duty positions
will automatically receive permissions to applications. The Duty Assignment
module, located on the restricted side of eServices, has also been upgraded. New
features include temporary duty assignments and a new user interface.

Public Awareness Achievements


o CAPs dynamic news website, VolunteerNow (www.capvolunteernow.com), marked
its first year in operation in September 2010. It features a state-of-the art design
highlighting the achievements of Civil Air Patrol in a multimedia format. The site
also captures headline news about CAP from print, broadcast and on-line media
outlets across America. As of November 2010, VolunteerNow was receiving 45,854
visits a month -- up nearly 140 percent from a year earlier. Most recently, it
surpassed the 500,000-mark in visits.
o CAPs second consecutive unqualified audit was published in a viewbook-style
Financial Report. Similar to the publication that debuted in 2009, it featured
financial statements for the fiscal year as well as a lively overview of our core values
and primary missions, heavily illustrated with photos. Its appealing photos and
writing make it perfect for telling the CAP story, whether to would-be recruits,
possible donors and supporters or potential clients for our services.
o With the Financial Report replacing CAPs Annual Report to Congress, CAP visitors
to Capitol Hill were provided with wing-specific four-page handouts to share with
their legislators. The first page included highlights of the wings year, supported by a
photograph, and wing statistics, including the number of aircraft, senior and cadet
members, budget, saves, etc. The other three pages were devoted to CAPs
congressionally-mandated missions of emergency services, cadet programs and
aerospace education.
o Though CAPs award-winning magazine, Volunteer, was trimmed back to four issues
per year, it remains our premier external communications resource. The fall issue
was expanded by eight pages to provide more comprehensive coverage of CAPs
response to the Gulf oil spill, considered by many to be our largest single mission
since World War II. Multi-story segments on a single topic, such as the oil spill
response, are formatted so they can be easily reproduced as stand-alone handouts for
recruiting and publicity purposes. The Volunteer can now also be viewed online at
www.capvolunteernow.com in a digital format that allows for hotlinks and the
insertion of video clips.
o Wreaths Across America (WAA), CAPs largest community service project,
continues to grow with CAPs help. This year, remembrance wreaths for veterans
were placed at more than 500 cemeteries and memorials nationwide, as well as at 26
abroad. The total number of wreaths placed by CAP grew to 39,000. This represents
approximately 10 percent of all the wreaths placed nationwide by WAA. Thanks to
early planning spearheaded by Colonel Dan Leclair, Maine Wing commander,
several additions were folded into CAPs involvement with Wreaths Across America
this year. Early attention for the event was accomplished with the distribution of
thank-you cards to veterans around Memorial Day. In addition to a second bridge
ceremony with Canada, other ceremonies were added in the D.C. area at the Korean,
Vietnam and World War II memorials, as well as at the Pentagon.
o On the media front, CAP was the subject of more than 8,500 print, broadcast and
electronic stories during the year. National Headquarters Public Affairs support to
the field included creation of nearly 30 hometown releases designed to market and
promote who we are and what we do at the local level. CAPs story is getting out!
o A Public Affairs Summit led by CAP National Commander Maj Gen Amy Courter
was held in October. The two-day event included a review of CAPs long term goals
and objectives; analysis of key stakeholders, media sources and themes; and review
of CAPs National Marketing Plan. This information was used by participants to
develop an updated comprehensive public relations plan, with action strategies and
timelines for implementation shared by NHQ, CAP volunteers and USAF.
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5. While we can be proud of a full and demanding 2010 when CAP successfully met its challenges,
2011, the year of CAPs 70th anniversary, will test us even further. The new year holds the promise
of long-delayed recognition for CAP, whose early members stepped up during World War II to
defend Americas shores while providing the genesis for our organization. Legislation will be
reintroduced in both the U.S. Senate and the U.S. House of Representatives to award CAP with the
Congressional Gold Medal, Congresss highest award. To achieve that goal, however, CAP must
take the lead to secure the necessary support from our Congressional representatives. Two-thirds of
the members of each house must agree to co-sponsor the legislation to advance it to committee and
eventual enactment. With CAPs signature determination, we can make this happen for our surviving
World War II-era members or the families of those already gone, as well as for CAP, the best
volunteer organization in America!
Sincerely,

AMY S. COURTER
Major General, CAP
National Commander

DON ROWLAND
Executive Director

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