Contributed Facilities & Utilities
As part of the annual audit NHQ requires each subordinate unit to submit a Contributed Facilities and Utilities worksheet to the wing FM before November 1 each year. The worksheet needs to include the type, square footage and the annual fair rental cost, if known, for all facilities for which CAP has exclusive use. Buildings, meeting rooms, storage facilities or room, hangars or hangar space and aircraft tie-downs are some types of facilities for which CAP may be charged nothing or less than the fair market rental rate. The fair market value of donated utilities must also be reported on the worksheet.
There has been past confusion over accurately reporting contributed facilities & utilities. The confusion primarily lies in what constitutes a contributed facility and what is the value of the contribution.
How do we determine if we have a contributed facility? First we must make a determination whether or not CAP has exclusive use of the facility. Second we must determine whether or not CAP is paying fair market value for the facility. To have a contributed facility, CAP must have exclusive use and must not be paying for that use or be paying less than fair market value.
Exclusive Use
• Can you lock the door of the facility and it remains locked until your next use? If yes, you likely have exclusive use.
• Does anybody outside of CAP use the facility when you are not using it? If yes, you likely do not have exclusive use.
Fair Market Value
• Does CAP pay any amount for the facility? If no, CAP is obviously not paying fair market value for the facility.
• If CAP is paying for the facility, is that amount similar to what anybody else would pay for the facility? If yes, CAP is paying fair market value for the facility. If no, the difference between what CAP is paying and what anybody else would have to pay is the amount of the contribution.
Examples of Contributed Facilities
• The municipal airport provides CAP with a separate hangar that houses a CAP aircraft and provides meeting and storage space.
• The VFW provides CAP with a meeting room for weekly meetings. The room is locked by CAP when they leave and remains locked until the next weekly meeting. No other group uses the meeting room.
• CAP has an assigned tie down at the municipal airport and pays $25 per month for it while all other customers pay $100 per month for the same size tie down.
Examples of Non-Contributed Facilities
• CAP meets on Tuesday evenings in a room at the local National Guard Armory. The Coast Guard Auxiliary meets in the same room on Thursday evenings.
• CAP rents a hangar at the municipal airport for $400 per month. All other rental tenants pay $400 per month.
Other Considerations
• CAP owned facilities are not contributed facilities.
• If a CAP squadron meets at wing headquarters in a facility that is contributed to that wing, the squadron does not need to report it as a contributed facility since wing headquarters will normally include the whole facility in its report.
• Contributed utilities are reported if CAP does not pay for utilities or pays less than the normal usage amount.
Determining Value of Contributed Facilities & Utilities
• The most accurate method is to know what other users are paying for the same type of facility. You can learn this by checking with the facility owner, other tenants or local real estate agents
• It is acceptable but less desirable to make an estimate of the value based on other data such as real estate classified ads, real estate websites and other expertise
The attached Contributed Facilities Worksheet must be completed annually and submitted to wing headquarters not later than 1 November. All squadrons must complete a form even if they do not have a contributed facility. This is the only way to ensure all squadrons have complied with the requirement. Meeting the 1 November deadline is extremely important since it allows wing headquarters to meet its deadlines and National Headquarters to meet its deadlines.