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2010 Financial Report Civil Air Patrol

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2 0 1 0 F i n a n c i a l R e p o

Civil AirPatrol

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B

2010This publication meets the Annual Report to Congress 

requirement llisted in Title 36 of the United States Code.

Cover photo courtesy of Golden Isles Magazine 

GOVERNANCE • 3PUBLIC TRUSTTOP-NOTCH LEADERS

EMERGENCY SERVICES • 7SEARCH AND RESCUEDISASTER RELIEFHOMELAND SECURITY

PROFESSIONAL DEVELOPMENT

TECHNOLOGY & EQUIPMENT • 11CUTTING-EDGE TECHNOLOGYSAFETY-FIRST TRAINING

YOUTH PROGRAMS • 15YOUTH LEADERSHIP TRAININGAEROSPACE EDUCATION

COMMUNITY SERVICE • 19SERVICE PROJECTS

DRUG DEMAND REDUCTIONCHAPLAIN CORPS

 FINANCIAL STATEMENTS • 23INDEPENDENT AUDITORSʼ REPORTSTATEMENT OF FINANCIAL POSITIONSTATEMENT OF ACTIVITIESSTATEMENT OF FUNCTIONAL EXPENSESSTATEMENT OF CASH FLOWSNOTES TO FINANCIAL STATEMENTS

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Supporting Americaʼs communities with • emergency response, • diverse aviation and ground services,

• youth development and • promotion of air and space power.

Civil Air Patrol’s Mission StatementCivil Air Patrol’s Mission Statement

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

Patrol is celebrating its glorious past, when civilian volunteers chased

enemy submarines from America’s shores during World War II, and

embracing its future in today’s fast-paced, technologically driven world.Despite a lean economy, CAP’s 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 CAP’s 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 CAP’s

careful and competent handling of state, federal and donor dollars but also paystribute 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 CAP’s commitment to

remain relevant and necessary in an ever-changing world.

I   

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• CAP builds

leaders. Members ofthe New York Wing

received some

leadership tips and a

great photo

opportunity with U.S.

Secretary of State

Hillary Clinton when

she attended a small-

town parade in

upstate New York.

PublicTrust

Leaders in

Air Force,

Business,Education

PublicTrust

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• Lt. Gen. John D. Hopper

 Jr., USAF (Ret)

ChairmanBoard affiliation:   • U.S. Air ForceCAP/Air Force/Aviationbackground:   • USAF retired  • Air Force Command Pilot with

more than 4,000 flying hours  • C-130 Pilot, Vietnam WarCareer:   • CEO, Air Force Aid SocietyEducation:   • Masterʼs degree, Logistics

Management, Air ForceInstitute of Technology

  • Bachelorʼs degree, U.S. AirForce Academy

• Brig. Gen. Charles L. Carr Jr., CAPBoard affiliation:

• Civil Air PatrolCAP/Air Force/Aviationbackground:   • USAF retired  • CAP National Vice Commander, with

previous service as Great LakesRegion Commander and Ohio WingCommander

• CAP Pilot with an instrument rating  • Master rating in CAPʼs Personnel

and Finance professionaldevelopment 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 NCOAcademy, U.S. Air Force Senior NCOAcademy, Military PoliceInvestigations and U.S. Customs

Governors

   B  o  a  r   d  o   f

Leaders inAir Force,Business,Education,CAP

•Brig. Gen. Richard L. Anderson,CAP

Vice ChairmanBoard affiliation:   • Civil Air PatrolCAP/Air Force/Aviationbackground:   • 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 with2,100 flying hours

  • Federal Aviation Administrationcommercial pilot certificate

  • 30 years of Air Force service inMissile/Space Operations and

Political-Military/InternationalAffairs

Career:   • Representative, 51st House

District, Virginia GeneralAssembly; elected 2009

• Colonel, U.S. Air Force; retired2009

Education:   • Masterʼs degree, Public

Administration, Webster University  • Bachelorʼs degree, Political

Science, Virginia PolytechnicInstitute

  • Graduate, Air War College(residence); Air Command andStaff College (residence); andArmed Forces Staff College(residence)

The work of Civil Air Patrol

is directed by its 11-member

Board of Governors. The board’s

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.

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• Lt. Gen. Nicholas B.Kehoe, USAF (Ret)

Board affiliation:   U.S. Air ForceCAP/Air Force/Aviation background:   • USAF retired  • Air Force Command

Pilot with more than3,600 flying hours intrainer and fighteraircraft

  • F-4 pilot with 555th and390th Tactical Fightersquadrons, Thailand andSouth Vietnam,respectively

Career:   • President,

Congressional Medal ofHonor Foundation

  • Lieutenant General, U.S.

Air Force; retired 2000,with most recent serviceas Inspector General,Office of the Secretary ofthe Air Force, Pentagon

Education:   • Bachelorʼs degree,

Science, U.S. Air ForceAcademy

  • Royal Air Force Air WarCollege, England

• Paul L. Graziani

Board affiliation:• Industry, Government,

EducationCAP/Air Force/Aviationbackground:   • Software Developer –

analysis software forland, sea, air and space

  • Board Director: – PASSUR Aerospace – U.S. Geospatial

IntelligenceFoundation

 – Federation of GalaxyExplorers

• Board of Governorsmember: – Civil Air Patrol

 – Aerospace IndustriesAssociation

• Associate Fellow,American Institute ofAeronautics andAstronautics

• Formerly served onAdvisory Board for PennState Great Valley

• Life Director, SpaceFoundation

Career:   • CEO and Co-Founder,

Analytical Graphics Inc.Education:   • Bachelorʼs degree,

Biology, LaSalle College

• Maj. Gen. Garry C. Dean,

USAF

Board affiliation:• U.S. Air Force

CAP/Air Force/Aviationbackground:   • Air Force Command Pilot

with more than 4,000 flighthours in T-38 and F-15aircraft

Career:   • Major General, U.S. Air

Force, currently serving asCommander, 1st Air Force,and Commander,Continental U.S. NorthAmerican AerospaceDefense CommandRegion,1st Air Force and AirForces Northern

  • Previous service withOregon Air National Guardʼs142nd Fighter Wing;Georgia Air National Guard;and 12th Tactical FighterSquadron at Kadena AirForce Base, Japan

Education:   • Bachelorʼs degree,

Computer Science, U.S. AirForce Academy

  • Air Command and StaffCollege, Air War Collegeand Joint Task ForceCommanderʼs Course

• Lt. Col. Edward (Ned) F. Lee, CAP

Board affiliation:   Civil Air PatrolCAP/Air Force/Aviationbackground:   • U.S. Army retired  • National Cadet Adviser, with long list

of previous service, especially withCadet Programs, including Directorof Civic Leadership Academy,faculty member at Cadet OfficerSchool and extensive work withDrug Demand Reduction Program

  • Gen. Carl A. Spaatz Award, highesthonor for cadets

Career:   •  Supervising Judge, California

Superior Court, Santa Clara County  •  California Army National Guard,

called to active duty after 9/11attacks and performed service inPanama, Ukraine and Japan

  •  Former Police DetectiveEducation:   • Juris Doctorate, Hastings College of

Law, University of California  • Bachelorʼs degree, University of

California at Irvine  • Associate degree, Golden West

College

•Maj. Gen. Amy S. Courter, CAP

Board affiliation:   • Civil Air PatrolCAP/Air Force/Aviationbackground:   • CAP National Commander,

preceded by long list of previousCAP service, including MichiganWing Commander; Chair of CadetPrograms, ProfessionalDevelopment and Infrastructurecommittees; and Co-Founder and

Director of Civic LeadershipAcademy

Career:   • Self-employed since 2005,

management consulting  • Former Vice President,

Information Technology andTelecommunications, Valassis

Education:   • Bachelorʼs degree,

Psychology and Education,Kalamazoo College

  • Secondary school teachingcertification in Psychology,Computer Science andMathematics

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•Don R. Rowland

Board affiliation:   Executive Secretary  Executive Director, Civil Air

PatrolCAP/Air Force/Aviation background:   • USAF retired  • Rated pilot with 3,400

flying hours  • Helicopter pilot in Pacific  • Background in search and

rescue and aircraft systemacquisitions

Career:   • Twenty-six years at CAP

National Headquarters,including service as SeniorDirector, Director of Plansand Requirements andDirector of Strategic

Communications and Plans  • U.S. Air Force, both as Pilot

and in System Requirementsfor Special Operations atScott AFB

• U.S. Coast Guard ExchangeEducation:   • Master’s degree, Management,

Webster University  • Bachelor’s degree, Biology,

University of West Florida• U.S. Coast Guard SAR School

at Governors Island, N.Y.

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

Board affiliation:   Industry, Government, Education

CAP/Air Force/Aviationbackground:   • 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 Allocat ion Division, U.S. Air Force,

Pentagon  • Chief of Staff, Plans and Policy Division International

Military Staff, NATO, Brussels, Belgium  • FAA private pilot licenseCareer:   • Director, Government Personnel Mutual Life Insurance

Co.

• Previously in top leadership positions with UnitedServices Automobile Association

  • Service as Director/Trustee on various boards,including Air Force Aid Society, Arnold Air Society andSilver Wings, University of Wyoming Foundation Board,National Benevolent Association and National CityChristian Church Foundation

Education:   • Bachelor’s degree, Sociology, University of Wyoming

• Master’s degree, Public Administration, Golden GateUniversity

• 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 ofGovernment, Harvard University; Wharton School,University of Pennsylvania

• Brig. Gen. S. Sanford Schlitt,

USAF (Ret)

Board affiliation:   Industry, Government, EducationCAP/Air Force/Aviationbackground:   • Previous service as Air Force

Association Chairman of Board forAerospace Education and Chairman ofAerospace Education Council

  • Founder of CyberPatriot , Air ForceAssociation’s national high school cyberdefense competition

Career:   • Chairman of AFA Board of Directors  • Senior Managing Director of mortgage

investment trust, with other privatebusiness ventures, including startups

  • Prior service as member of Board ofDirectors of several nonprofits and for-profit entities, including NASDAQ-listedfirm

  • Chairman or member of executivecommittee and committees ongovernance, audit and finance forseveral for-profit and nonprofit entities

  • Previous service as Senate staffmember for U.S. Sens. Hubert H.Humphrey and Walter Mondale

  • Candidate for U.S. Congress in 1980Education:   • Bachelor’s degree, American University  • Extensive professional development

study

• Maj. Gen. John M. Speigel,USAF (Ret)

Board affiliation:   U.S. Air ForceCAP/Air Force/Aviationbackground:   • USAF retired  • Numerous Air Force technical

and command positions  • Air Force long-range planning,

including Airlift Master Plan andTotal Force Plan

Career:   • Lockheed Martin, Information

Systems and Global Services  • Major General, U.S. Air Force;

retired 2005, with most recentservice as Director of PersonnelPolicy, Deputy Chief of Staff forPersonnel, Headquarters U.S.Air Force; commanded at everylevel in Air Force, includingservice at Pentagon and inSouth Korea

Education:   • Master’s degree, Journalism,

Texas A&M at Commerce  • Master’s degree, National

Security and Strategic Studies,Naval War College

  • Bachelor’s degree, BusinessAdministration, Texas A&M atCommerce

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• Ever vigilant, always

prepared, Civil Air

Patrol̓ s 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.

that support

search and rescue

disaster reliefand homeland security

efforts nationwi

EmergencyServices

EmergencyServices

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Missions

    H    i   g    h  -    P  r  o

    f    i    l  eCivil Air Patrol’s role in the Gulf of Mexico

oil spill response in 2010 — CAP’s single largestmission since World War II — led theorganization’s 2010 emergency services missionsin numbers, length and intensity. Involving 287volunteers from 10 wings over 118 days, themission confirmed CAP volunteers’ ability tosupport a major, extended operation thatincluded a record demand for thousands of aerialphotos each day. The digital photos were used tohelp assess the spilled oil’s potential effect on thecoastline, barrier islands, wetlands, fishingindustry, businesses and tourism.

2010 also saw CAP credited with saving 113lives across the nation — the 10th-highestnumber of saves in the organization’s 69-yearhistory. Meanwhile, CAP provided disaster relief during very heavy spring flooding, from theupper Midwest to the Northeast. CAP aircrews’digital photography of the damage was usedextensively to assist emergency responders onthe ground.

Aircrews from numerous CAP wings assistedlaw enforcement agencies in seizing $1.36 billionin illegal drugs and drug money, and variouswings nationwide performed more than 150critical homeland security missions by simulatinghostile 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 andlocal governments. CAP crews escorted navalvessels, performed fire patrols over DoDreservations and supported combat deploymentpreparation training.

Gulf oil spill responseMidwest floodingAir interceptsCounterdrugFire patrols

• Using permanent facilities opened at

Camp Atterbury, Ind., CAP provides year-

round 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 CAPʼs volunteers

are prepared with the professional-quality

skills and knowledge required to perform

their missions.

• 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 Patrolʼs 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 organizationʼs 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. CAP ʼs support of this mission saved the

federal government millions of dollars.

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• 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 facili ties. 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 membersʼ radar and cell phone forensics

expertise, which helped reduce the search area size, allowing CAP to

locate survivors more quickly.

• Many of Civil Air Patrolʼs 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, CAPʼs 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 stateʼs

Department of Marine Resources and

Department of Environmental Quality,

surveying the waters along

Mississippiʼs coastline.

• 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 nation ʼs coastlines and over many

of its inland lakes and waterways, as well as air escorts for ships along critical waterways.

• 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.

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• 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 andAir National Guard fighters

during practice intercept

missions. The exercises were

among CAPʼs 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.

• 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.

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•With a versatile fleet of 550

aircraft and numerous groundassets, Civil Air Patrolʼs 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.

Technology& Equipment

with cutting-edge tools

to deliver top

performance.

Technology& Equipment

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Tools

    H    i   g

    h  -    T  e  c

    hCivil Air Patrol members fly and maintain a

fleet of more than 550 aircraft, many equippedwith sophisticated Garmin glass cockpittechnology and the latest in digital radioequipment needed to communicate easily withground teams at all times. Recently, two CAPplanes were modified with special full motion in-flight video equipment used to help train U.S.military ground forces in remotely piloted aircraftoperations before they deploy overseas.

High-tech tools used for emergency servicesinclude the latest in aerial photography equipment,as well as infrared cameras for nighttime searches.Other tools are more basic, yet vital to those whouse them — like the loudspeakers affixed to alleight of the Hawaii Wing’s airplanes that warnisland residents of pending tsunami threats.

CAP’s equipment is effectively and efficientlymanaged from acquisition to disposal through anational, Web-based property and accountabilitydatabase. Members stay mission-ready by acquiringthe knowledge, skills and expertise required to

operate this equipment through participation intop-notch professional development training intheir own units as well as at the wing, region andnational levels. Others travel to train at variousfacilities, like the National Emergency ServicesAcademy at Camp Atterbury, Ind.; CAP NationalHeadquarters at Maxwell Air Force Base, Ala.; andthe Cessna Aircraft Co. factory in Independence,Kan.

Members’ safety in providing emergencyservices and disaster relief in their communities is atop priority, as reflected in CAP’s consistently lowaccident and incident rates.

Full motion videoInfrared camerasNarrowband radiosORMSTsunami speakersGlass cockpitSafety training

• Geospatial Information

Interoperability Exploitation

Portable Go-Kits, now available

to Civil Air Patrol, add state-of-

the-art communications and full

motion in-flight video to CAPʼs

emergency services toolkit

arsenal.

• After implementing a variety of safety initiatives,

including new Web-based training programs, CAP

reduced powered aircraft accidents by 50 percent

in 2010. CAPʼs 1.78 accidents per 100,000 flying

hour rate is almost four times better than general

aviationʼs 15-year average. This i s noteworthy,

since CAPʼs flying is usually much more

demanding than most of general aviation ʼs.

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• Civil Air Patrolʼs modern-day fleet of

aircraft received a boost when 12 new

state-of-the-art Cessna 182Ts were

added. Three of those planes are turbo-

charged models that will be used by

wings that operate in higher elevations.

All are equipped with Garmin G1000

glass cockpit technology, recognized as

the industryʼs best. The all-glass, jet-like

cockpit with Garmin technology provides

improved situational awareness for CAP

pilots as well as a terrain avoidancesystem, which helps ensure safety.

• Civil Air Patrolʼs 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. CAP ʼs 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 Gulf ʼs 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 CAP ʼs

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 organization ʼs safest years ever, with no

injuries or fatalities.

• 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.

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• 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.

• More than 500 repeaters have been installed and

brought online throughout the U.S. to facilitate CAPʼs

narrowband radio transition. The transition is part of a recent

multimillion-dollar communications upgrade that makes it

easier for CAPʼs aircrews and ground teams to respond to

emergencies. The digital repeater network is also available

for Department of Defense use when required.

• In January 2010, Civil Air Patrol

deployed the new Operational Resource

Management System, a national Web-

based property management and

accountability database. ORMS allowsCAP to more easily manage and control

the organizationʼs assets throughout

their life cycles, from acquisition to

disposal. It also automates virtually all of

CAPʼs 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.

• 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.

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• Civil Air Patrol inspires

youth through its

programs for cadets and

aerospace education.

Against a backdrop that

emphasizes the

importance of

maintaining our nationʼs

strong air and space

capabilities, CAP guides

young people in

exploring careers,

learning how to lead and

discovering joy in serving

others.

that mentor

CAP cadets

and promoteaerospace education

YouthProgram

YouthProgram

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• 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.

Programs

    Y  o  u   t    h

Civil Air Patrol’s 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 Association’s CyberPatriot III competition, beating 480 teams inthe nation’s largest high school cyber defense competition. Also, Col. EricBoe, perhaps CAP’s most famous former cadet, piloted his second NASAmission to the International Space Station, inspiring aerospace careeraspirations for youth across America.

Student interest in careers in science, technology, engineering and mathwas further inspired by CAP’s Aerospace Education Members, teachersnationwide who are provided textbooks, lesson plans, learning aids and hands-on activities designed to nurture the skills of Boe’s protégés.

CAP’s Cadet Program annually grooms the leadership skills of thousandsof cadets who command the respect and success associated with a globallearning environment. The Cadet Program molds the next generation of citizens by providing K-12 youth with top-notch, year-round instruction thatemphasizes patriotism and service. Guided by CAP’s Learn to Lead texts, cadetschoose from among more than 30 special activities, including clinics on howto pilot an airplane, programs for travel abroad and a variety of camps thatteach everything from business to engineering to civic career choices.

 Judging by the Cadet Program’s growth — up 9.5 percent from the pastyear 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 CAP’s outstanding cadets with various awardsand other types of motivational support.

Cadet programs

Leadership skillsPilot trainingAerospace education

• Cadets in CAP can choose from many special

activities — opportunities that are not always

available to other youth. These cadets were part

of CAPʼs 2010 International Air Cadet Exchange,

where participants experienced other cultures,

often making lifelong friends. Another premier

special activity is CAPʼs 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 neededto be consensus-builders in their communities.

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• 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 pilotʼs certificate. Cadets

fly in powered and glider

aircraft — even hot-air

balloons — and, in the

process, develop a love of

aviation at no cost tothemselves. 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 mili tary.

•When CAP visits their classrooms,

younger students, accompanied hereby 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.

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18

• Civil Air Patrol’s Team Wilson was awarded

the Commander-in-Chief’s Cup during the Air

Force Association’s CyberPatriot III competition.

The Central Florida-based team defeated four

Junior ROTC units from across America to win

the first-place award in CyberPatriot’s 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 year’s 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.

• The Connecticut Wing’s Rachel

Manzer, CAP’s 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, motivatingparticipants 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.

• CAP members strive to be role

models for our country’s 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 toservice the International Space Station.

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• The work of Civil Air

Patrol̓ s 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 Americaʼs next-

door neighbors and friends,

citizen volunteers who are

always there to provide civic

and humanitarian support and

assistance.

CommunityServicethat honors Americ

veterans a

provides assistato those in need.

CommunityService

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20

Service

    C  o  m

  m  u  n

    i   t  yBy far, CAP’s largest national community service

project is Wreaths Across America, in which participantslay remembrance wreaths on veterans’ graves eachDecember. Since CAP’s initial involvement in 2006, thenumber of wreaths placed by various organizations hasblossomed from a few thousand to more than 219,000,with ceremonies — often featuring CAP color and honorguards — now conducted at more than 500 locations inthe United States and another 24 abroad. CAP helpedobtain sponsorships for more than 39,000 wreaths in 2010.

Civil Air Patrol members also meet the needs of thecommunities they serve in numerous other ways. Fromsimple gestures that have a profound effect, such ascollecting and disseminating care packages to veterans,supporting local civic events or providing disaster relief support for Japan — CAP members can always be countedon to provide assistance.

Such service is nurtured by CAP’s Chaplain Corps,the largest chaplaincy in the world, with more than 500chaplains and 300 character development instructors. Inthe past six months alone, the Chaplain Corps performed13,856 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 itscadets and senior members, CAP takes its Drug DemandReduction Program into America’s schools and is an activeparticipant in the Just Say No program.

Civil Air Patrol’s partnerships with other civic-mindedorganizations continue to grow as a result of theexceptional service provided by CAP’s 61,000-plusmembers, many of whom are annually recognized withprestigious national awards. Recognition is furthergenerated each year on Legislative Day when wingcommanders carry the phenomenal story of CAP’s serviceto Capitol Hill.

Service projectsChaplain CorpsDDR

• For a sixth year members of

CAPʼs 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 veteransʼ 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 CAP ʼs

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. CAPʼs 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 USSJason Dunham on a final test of the

destroyerʼs 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.

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• CAP Chaplain Lt. Col. Marcus Taylor,

right, served as welcome relief for U.S.

Coast Guard Chaplain Lt. Joseph Johnson,

who, before Taylorʼs arrival, was

singlehandedly working the Coast Guard ʼs

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.

• 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.

• At the unit level, members of the

Puerto Rico Wingʼs 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.

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22

• CAP has worked diligently to develop

partnerships with other aviation and

patriotic organizations. At CAPʼs 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 associationʼs

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 CAPʼs

World War II service. Another recent

agreement was signed with the Academy

of Model Aeronautics, opening up the

AMAʼs model airplane programs to CAP.

• As part of CAPʼs 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

wingʼs accomplishments over the past year.

• 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, feedand 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.

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• Civil Air Patrol

celebrated its third

consecutive unqualified

audit opinion in 2010, a

testament to the

organization ʼs financial

accountability and its

emphasis on fiscal

integrity and responsibility.

 FinancialStatements

that reflect

accountabiliand fiscal

integrity.

 FinancialStatements

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24

Statements

    C    A    P    F    i  n  a  n  c

    i  a    l

To the Board of GovernorsCivil 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 Patrol’s 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 statementsare 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.

AccountableUnqualifiedTransparent

I NDEPENDENT AUDITORS’ R EPORT

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In accordance ith Government Auditing Standards, e have also issued a separate report dated

June 1, 2011, on our consideration of Civil Air Patrol"s internal control over financial reporting and

on our tests of its compliance ith certain provisions of las, 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 ith Government Auditing Standards and

important for assessing the results of our audit.

Montgomer!, Alabama

June 1, 2011

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2626

CIVIL AIR PATROLSTATEMENT 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 91,513,103

TOTAL ASSETS $ 113,731,070

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LIABILITIES AND NET ASSETS

CURRENT LIABILITIES

Accounts payable and accrued expenses $ 3,414,920Current maturities of long-term debt 5,729

Deferred revenue 398,787

Total current liabilities 3,819,436

NONCURRENT LIABILITIES

 Noncurrent maturities of long-term debt 27,217

TOTAL LIABILITIES 3,846,653

NET ASSETS

Unrestricted:Undesignated 20,317,819

Board designated 4,457,845

24,775,664

Temporarily restricted 85,015,727

Permanently restricted 93,026

Total net assets 109,884,417

TOTAL LIABILITIES AND NET ASSETS $ 113,731,070

See independent auditors’ report and notes to financial statements.

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CIVIL AIR PATROL

!A!EMEN! OF AC!I"I!IE

FOR !HE #EAR ENDED EP!EMBER 30, 2010

TEMPORARILY PERMANENTLY

UNRESTRICTED   RESTRICTED RESTRICTED TOTAL

OPERATING REVENUES AND OTHER SUPPORT

G// / /' */ $ 26,623,557 $ 8,792 $ - $ 26,632,349O+ * / 3,133,717 522,213 - 3,655,930M%+ ' 3,041,094 - - 3,041,094G// &/%/ 5,929,755 14,999,616 - 20,929,371C/%/ 1,706,944 149,225 - 1,856,169F/'/* 1,093,084 - - 1,093,084R*/ /' / 770,154 - - 770,154P%&/ /' '/* 24,940 - - 24,940 , /' 138,402 - - 138,402I/ /& 77,371 288 96 77,755I// /& 252,781 7,285 949 261,015O+ 826,001 7,700 - 833,701

 N ' &/ 14,342,018 (14,342,018) - -

! /* / /' + 57,959,818 1,353,101 1,045 59,313,964

OPERATING EXPENSES

P* &:A& '&/ /' //* 3,358,862 - - 3,358,862C' * 6,685,661 - - 6,685,661C/&/ ///& 1,649,241 - - 1,649,241C/'* 669,892 - - 669,892D* '/' '&/ 677,243 - - 677,243E*/& & 22,855,925 - - 22,855,925

! * & 35,896,824 - - 35,896,824

/'/'/ ' /' / //& /.

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TEMPORARILY PERMANENTLY

UNRESTRICTED RESTRICTED RESTRICTED TOTAL

OPERATING EXPENSES (Continued)

Supporting services:Fundraising $ 306,819 $ - $ - $ 306,819Management and general 16,503,098 - - 16,503,098Membership development 3,075,519 - - 3,075,519Strategic communications 183,309 - - 183,309

Total supporting services 20,068,745 - - 20,068,745

Total operating expenses 55,965,569 - - 55,965,569

Change in net assets from operations 1,994,249 1,353,101 1,045 3,348,395

NONOPERATING GAINS AND LOSSES

Gain (loss) on disposition of property and equipment 284,874 (85,352) - 199,522 Net unrealized and realized gain on investments 263,207 11,930 3,885 279,022

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

PRIOR PERIOD ADJUSTMENTS 39,341 (57,586) (250,897) (269,142)

CHANGE IN NET ASSETS 2,581,671 1,222,093 (245,967) 3,557,797

NET ASSETS AT BEGINNING OF YEAR  22,193,993 83,793,634 338,993 106,326,620

NET ASSETS AT END OF YEAR  $ 24,775,664 $ 85,015,727 $ 93,026 $ 109,884,417

See independent auditors’ report and notes to financial statements.

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CIVIL AIR PATROLSTATEMENT OF FUNCTIONAL EXPENSES

FOR THE YEAR ENDED SEPTEMBER 30, 2010

Program ServicesAerospaceEducation Cadet Communication Drug Demand Emergency

and Training Programs Maintenance Counterdrug Reduction Services

Advertising $ 1,815 $ 2,418 $ 363 $ 606 $ 242 $ 3,629Aircraft maintenance 47,860 199,235 - 97,227 - 4,994,654Awards 93,274 122,248 - - - -Bad debts - - - - - -Bank and credit card expense - 2,611 - - - -Cadet activities - 2,413,547 - - 39,433 158,270Conference 99,784 172,383 19,763 32,937 13,209 226,306Contingency - - - - - -Cost of goods sold 34,915 139,659 - - - -Depreciation 43,973 58,628 11,051 14,658 5,863 6,572,296Equipment maintenance 53,714 71,621 132,874 17,904 7,161 125,800Facility maintenance 1,070,920 1,399,521 204,793 341,320 136,528 2,267,485Fundraising events - - - - - -Insurance 8,650 11,535 1,729 2,884 1,152 17,301Interest expense - - - - - -Legal and accounting 3,945 5,260 789 1,315 526 7,890Lobbying - - - - - -Maintenance and equipment rental 51,302 - 271,410 - - 4,583

Miscellaneous 1,934 2,578 385 645 257 75,169Mission support - - - 15,268 - 5,646,236Payroll taxes and benefits 156,202 86,032 62,435 4,907 15,196 239,901Professional services 154,590 34,899 114,361 - 31,181 209,745Professional development 88,157 9,694 - - 3,194 6,305Postage 10,867 77,596 36,965 3,622 1,499 21,833Printing and publications 4,704 6,274 941 1,568 628 9,412Salaries 866,788 463,187 267,626 26,887 104,050 1,071,225Senior activities 155,487 - - - - 361Supplies 157,984 786,854 472,407 36,467 259,704 551,769Telephone 69,721 91,962 13,795 22,991 9,196 146,736Travel 102,221 421,178 20,218 22,000 37,550 331,974Vehicle maintenance 80,055 106,741 17,336 26,686 10,674 167,045

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

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Supporting Services

Management Membership StrategicFundraising and General Development Communications Total

$ - $ 18,313 $ 40,523 $ 22,104 $ 90,013- 1,377 - - 5,340,353- 2,701 12,713 - 230,936- 17,849 4,216 - 22,065- 34,115 - - 36,726- - 29,235 - 2,640,485- 237,243 276,545 - 1,078,170- 15,015 - - 15,015- - - - 174,574- 2,815,016 14,667 - 9,536,152- 74,295 17,904 - 501,273- 1,667,079 529,975 - 7,617,621

254,232 - - - 254,232- 1,078,021 2,884 - 1,124,156- 3,104 - - 3,104- 316,016 1,315 - 337,056

6,090 12,000 - - 18,090- 169,257 - - 496,552

- 44,304 5,307 - 130,579- 1,609 - - 5,663,113

10,651 1,249,117 326,896 - 2,151,337- 531,185 318,613 - 1,394,574- 106,377 8,541 - 222,268- 86,297 20,539 - 259,218- 6,630 1,568 160,418 192,143

35,846 5,624,163 1,288,115 - 9,747,887- 17,206 - - 173,054- 948,470 70,806 74 3,284,535- 581,547 23,753 - 959,701- 716,310 54,718 713 1,706,882- 128,482 26,686 - 563,705

$ 306,819 $ 16,503,098 $ 3,075,519 $ 183,309 $ 55,965,569

See independent auditors’ report and notes to financial statements.

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CIVIL AIR PATROLSTATEMENT 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 $ 3,557,797

Prior period adjustments 269,142

Adjustments to reconcile change in net assets to net cash provided by operating activities:

Depreciation 9,536,152

 Net unrealized and realized gain on investments (279,022)

Gain on disposition of property and equipment (199,522)

Changes in operating assets and liabilities:

Receivables (2,047,805)

Prepaid expenses (117,817)

Inventories (173,897)

Unconditional promises to give (1,868,300)

Accounts payable and accrued expenses (2,960,705)

Deferred revenue 111,238

 Net cash provided by operating activities 5,827,261

CASH FLOWS FROM INVESTING ACTIVITIES

Proceeds from sale of property and equipment 328,046

Purchase of property and equipment (9,509,581)

Proceeds from sale of investments 1,033,359

Purchase of investments (870,121)

 Net cash used by investing activities (9,018,297)

See independent auditors’ report and notes to financial statements.

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CASH FLOWS FROM FINANCING ACTIVITIES

Payment of borrowings $ (5,201)

Release of contractually restricted cash 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  12,179,016

CASH AND CASH EQUIVALENTS AT END OF YEAR  $ 13,258,278

SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION

Cash paid during the year for interest $ 3,104

Cash paid for income taxes - unrelated business income $ 12,160

See independent auditors’ report and notes to financial statements.

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34

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 nonprofitcorporation chartered July 1, 1946, under federal law. Civil Air Patrol’s 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 Organization’s 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.

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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 permanentlyrestricted 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.

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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 governmentalagencies, 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 management’s 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 Organization’s policy to capitalize property and equipment with a fair value or 

cost over $5,000.

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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 inaccounts 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.

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38

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 receivedthat 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.

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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.

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40

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 availableto 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 $ 1,082,724

  Administrative and other operational expenses 43,591

  Counterdrug administration 15,971

  Restricted by donors for:

  Cadet scholarships and activities 147,061

  Aerospace scholarships and activities 15,302  Construction of facility 590,415

  Other activities 173,963 

Total restricted cash  2,069,027

  Designated by the governing board for:

  Cadet scholarships and activities 74,953

  Facility maintenance 74,943

  Other activities 319,434 

Total designated cash  469,330

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2. CASH (Continued)

  Cash unrestricted and not designated   $ 12,788,948

  Total cash   $ 15,327,305

  Statement of financial position presentation:

  Cash and cash equivalents $ 13,258,278

  Cash – restricted 2,069,027

 

Total  $ 15,327,305

3. INVESTMENTS

Investments are presented at fair market value. Below is a summary of investments by major types:

 

Annuities $ 71,119

  Common stock 961,489  Corporate bonds 177,582

  Municipal bonds 253,054

  Mutual funds 2,707,026

  Real estate investment trusts 495,017

  Total  $ 4,665,287

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42

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 $ 261,015  Net unrealized and realized gain on investments 279,022

  Total  $ 540,037

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

 below:

  Unrealized

  Appreciation

  Description Cost (Depreciation) Fair Value

  Restricted by donors:

  Clara Livingston Fund $ 174,609 $ (9,698) $ 164,911  Historical Fund 2,220 (122) 2,098

  Wirtschafter 10,122 (561) 9,561

  Wing and Region investments restricted for

cadet scholarships and aerospace education 216,713 (10,398) 206,315

  403,664 (20,779) 382,885

  Designated by the governing board:

  Reserve investments 3,634,055 (403,698) 3,230,357

  Scholarship Fund 852,923 (94,765) 758,158

  4,486,978 (498,463) 3,988,515

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3. INVESTMENTS (Continued)

  Unrealized

  Appreciation

  Description Cost (Depreciation) Fair Value

  Investments unrestricted and undesignated $ 303,046 $ (9,159) $ 293,887

  Total $ 5,193,688 $ (528,401) $ 4,665,287

  Statement of financial position presentation:

  Short-term investments $ 4,282,402

  Long-term investments 382,885

  Total $ 4,665,287

  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.

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44

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 $ 3,369,548  Others 729,993

  Total   $ 4,099,541

5. 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 $ 7,882,753

As of September 30, 2010, the Organization received from the USAF conditional promises to give of $827,670 that are notrecognized 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 $ 205,560

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C

7. PROPERTY AND EQUIPMENT

Property and equipment consist of the following:

  Land $ 566,571

  Building and improvements 5,971,330  Aircraft 120,145,337  Computers 2,902,334  Vehicles 19,719,751  Office furniture and equipment 229,980  Building under capital lease 253,148  Office equipment under capital lease 9,995  Communication and other equipment 19,487,295  Construction in progress 562,592  Deposits on aircraft 480,000  Equipment not placed into service 1,882,249  172,210,582  Accumulated depreciation 91,032,144

   Net property and equipment   $ 81,178,438

As of September 30, 2010, improvements with a book value of $235,819 have been made to leased facilities. Theseimprovements 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 missionaccomplishment, 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 assetsrequires 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.

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46

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 $ 1,181,544  Vendor payables 2,233,376

  Total   $ 3,414,920

9. DEFERRED REVENUE

Deferred revenue is detailed as follows:

  Prepaid membership dues $ 256,252  Other 142,535

  Total   $ 398,787

10. NOTE PAYABLE

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

Total obligations $ 32,946

  Less current maturities of long-term debt 5,729

  Noncurrent maturities of long-term debt $ 27,217

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

  Years ending September 30:  2011 $ 5,728  2012 6,135  2013 6,580  2014 7,052  2015 7,451

  Total   $ 32,946

Total interest expense related to the above note is $3,104 for the year ended September 30, 2010.

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11. NET ASSETS

Unrestricted Net Assets - Designated 

The governing board has designated unrestricted net assets for:

  Reserve funds $ 3,549,791  Scholarships 833,111  Other 74,943

  Total   $ 4,457,845

Temporarily Restricted Net Assets

Temporarily restricted net assets are available for the following purposes or periods:

  Aerospace education activities:  Scholarships $ 14,580  Other 14,552

  Cadet program activities:  Scholarships 317,227  Other 119,071

  Other general activities:  Subsequent years’ use of property, equipment and inventories 78,457,872  Support, maintenance and modernization of aircraft fleet 5,171,866  Other 920,559

  Total   $ 85,015,727

 Permanently Restricted Net Assets

Permanently restricted net assets are restricted for:

  Scholarships $ 78,103  Other 14,923

  Total   $ 93,026

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48

CIVIL AIR PATROL NOTES TO FINANCIAL STATEMENTSSEPTEMBER 30, 2010

12. OPERATING LEASES

The Organization conducts a portion of its activities from leased facilities. Land, storage, office and hangar space is leasedunder operating leases ranging from month-to-month periodic leases to fifty (50) year term leases, expiring at various dates upto 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 leaseterm. Also, a facility is leased from a governmental municipality with a lease term (including automatic renewals) expiring in2044. The Organization also leases various other equipment which is classified as operating leases. The majority of the leasesrequire the Organization to pay taxes, insurance, and repairs and maintenance. In most cases, management expects that, in thenormal 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 $ 181,738  2012 112,050  2013 109,803  2014 108,000  2015 72,000

  $ 583,591

  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 $ 5,462,480  Expiration of time restrictions 8,879,538

  Total   $ 14,342,018

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14.  EMPLOYEE BENEFIT PLAN

The Organization sponsors a 401(k) and defined contribution plan for the benefit of its employees, substantially all of whomare eligible to participate after meeting minimum qualifying standards. Under the plan, employees may elect to defer a portionof their salary, subject to Internal Revenue Code limits. The Organization may contribute a discretionary amount to the planwith immediate vesting. Organization contributions to the plan were $367,004 for the year ended September 30, 2010, and areincluded 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 bythe 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 $ 22,051,336  Contributions for:  Use of facilities and utilities 2,009,416  Property, equipment and inventories 14,966,060

  Total  $ 39,026,812

  Transactions Incurring Expenses:

  Expenses with the USAF for:  Facilities $ 2,009,416

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CIVIL AIR PATROL NOTES TO FINANCIAL STATEMENTSSEPTEMBER 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 byinsurance or by adequate defenses. It is the opinion of management that the outcome will not have a material adverse effect onthe 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 inthe 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 believesexposure 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 valuationhierarchy level as of September 30, 2010.

Level 1 Level 2 Level 3 Total

Annuities $ 71,119 $ - $ - $ 71,119Common stock 961,489 - - 961,489Corporate bonds 177,582 - - 177,582Municipal bonds 253,054 - - 253,054Mutual funds 2,707,026 - - 2,707,026Real estate investment trusts - - 495,017 495,017

$ 4,170,270 $ - $ 495,017 $ 4,665,287

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17. FAIR VALUE MEASUREMENTS (Continued)

The Organization’s Level 3 investments consist of investments in real estate investment trusts (REIT). These investments arevalued at estimated fair value, based upon the Organization’s 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:

Net NetBeginning Acquisitions Gains EndingBalance (Dispositions) (Losses) Balance

Real estate investment trusts $ 482,838 $ 32,101 $ (19,922) $ 495,017

18. CONCENTRATIONS

Concentration of Support 

The Organization receives a substantial amount of its support from federal and state governments. A significant reduction inthe level of this support, if this were to occur, may have an effect on the Organization’s 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 Organization’s uninsured cash balances totaled $7,695,194.

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CIVIL AIR PATROL NOTES TO FINANCIAL STATEMENTSSEPTEMBER 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:

Temporarily PermanentlyUnrestricted Restricted Restricted Total

Correction of investments at national headquarters $ - $ (6,008) $ - $ (6,008)Correction of investments at Wing locations 39,341 (51,578) (250,897) (263,134)

$ 39,341 $ (57,586) $ (250,897) $ (269,142)

The above adjustments have no effect on the results of the current year’s 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.

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Citizens Serving Communities

Civil Air Patrol National Headquarters

105 S. Hansell St., Bldg. 714

Maxwell AFB, AL 36112

www.gocivilairpatrol.com

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With historic Gulf oil spill, CAP tackles

largest mission since World War II

D ominating Civil Air Patrol’s missions for 2010 was its historic response to the

Gulf oil spill, considered to be the U.S. Air Force auxiliary’s largest mission

since World War II. In effect for 118 consecutive days, CAP’s oil spill respon

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.

CAP’s primary role was aerial photography, a task for which its aircraft are ideal.

CAP’s professional aircrews took and delivered tens of thousands of digital images, whi

helped officials assess the oil’s potential effects on the coastline, barrier islands, wetland

fishing industry, businesses and tourism. On each of their 1,011 flights, CAP crews captur

an average of 3,000 photos. Disaster officials used these photos to trace the oil’s movemen

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 fro

multiple states, in tandem with overlapping incident commander assignments, so

CAP’s base of operations was always fully staffed. Its members developed new

software to process the extraordinary volume of daily photos, each encoded with GPScoordinates 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 

CAP’s national commander, Maj. Gen. Amy S. Courter, “I want you to know how muc

good work CAP did for us, and at a fraction of the cost — 10 cents on the dollar.”

CAP’s signature red, white and blue aircraft became part of the G

landscape for much of 2010 as aircrews surveyed for oil spill damawith specialized aerial photography equipment (inset). This ph

shows a triple oil containment boom line protecting prime property

the Grand Hotel Marriott Resort at Point Clear, Ala., where the east

shore of Mobile Bay meets the Gulf of Mexico. CAP’s role includ

documenting the integrity of booms along the coastline.

NHQ address: 105 S. Hansell, Bldg. #714, Maxwell AFB, AL 36112; Phone: Toll Free 877-227-9142; Website: www.gocivilairpatrol.com

U.S. Air Force AuxiliaryCIVIL AIR PATROL

  National commander  Maj. Gen. Amy S. Courter ([email protected])

  National vice commander  Brig. Gen. Charles L. Carr Jr. ([email protected])

Citizens

  Serving 

  Communities

2010 Statist ics

Volunteer Members:35,183 adult members25,950 cadets37,149 voting-age members7,038 aircrew personnel

30,682 emergency responders

Squadrons:

1,538 locations nationwide

 Aircraf t:550 single engine42 gliders2 balloons

Vehicles:975 vehicles

Interoperable Communications:668 VHF-FM repeaters943 VHF-FM fixed stations

7,675 VHF-FM mobile stations980 HF fixed stations140 HF mobile stations

Missions:1,016 search and rescue missions

615 finds113 lives saved

249 counterdrug missions827 other state support missions

Cadet Flying (CAP, AFROTC & AFJROTC):30,162 cadets flown19,910 hours flown

Total Hours Flown:112,305

Finances:$3.1M in state funding

$26.4M federal operations andmaintenance funding

$151M value of volunteers’ hours

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The Surrogate Predator ball attached beneath a Civil Ai r Patrol plane’s wing allows t

aircraft to function as a tool to train U.S. military personnel before they deploy overse

to combat zones. CAP planes outfitted this way participate in air warrior exercis

known as Green Flag, based in Louisiana and Nevada. Using this cutting-edge 21st-cent

technology is just one way CAP plays an active role in homeland security. CAP aircre

also act as mock targets on air defense missions, provide air escorts for Navy ships alo

waterways and assist border patrol efforts.

Congressionally chartered mission No. 1: Emergency Services

Like clockwork, spring 2010 brought flooding to much of the Midwest, O

Valley and Northeast. CAP was on the scene, working from the air to ta

photographs used to make critical decisions about threats to lives a

infrastructure; on the ground, members helped with sandbagging a

delivery of essential goods and services. 2010 was also marked by CA

response to another emergency: The Hawaii Wing’s airborne warnings abo

a possible tsunami triggered by an earthquake in Chile drew rave revie

and widespread publicity.

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.

Civil Air Patrol’s expertise in aerial photography got a workout in 2010

with the organization’s response to the Gulf oil spill. CAP’s low-and-

slow aircraft provide the perfect vantage point for photos offici als use

to assess damages and deploy assets. During the oil spill crisis,

thousands of photos were taken by multiple CAP aircrews along the

Gulf’s shoreli ne 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, whi le a private company under contract to the

federal government threaded the photos t ogether to provide a b ig-

picture view. Above, a representative of the U.S. Coast Guard

discusses oil spill data with CAP members.

T   he role of Civil Air Patrol in the Gulf oil spill

response — CAP’s single largest mission since World 

War II — led the organization’s 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.

2010 also saw CAP credited with saving 113 lives across the

nation — the 10th-highest number of saves in CAP’s 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.

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Congressionally chartered mission No. 2: Cadet Programs

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 p rinciples 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. Self-

discipline and teamwork are also emphasized.

Eager to show off their aerospace knowledge, physical fitness and precision on

drill field, cadet drill teams and color guards vie against one another in competitio

at the state, regional and national levels. Rising to the occasion with go

sportsmanship, cadets amaze spectators wi th their ski ll and esprit de corps. T

competitions are varied, but this activity is all about character. Each year, 144 cad

earn the right to compete for national honors, and about 800 more compete loca

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 CAP’s Civic

Leadership Academy. Participants study the federal government and explore publi c service careers

during an unforgettable week in the nation’s capital. With a curriculum emphasizing persuasive

leadership, cadets develop skills they will need to become consensus-builders in their communities.

 As a capstone activi ty, cadets visi t Capitol Hil l and help art iculate CAP’s value to America.

Civil Air Patrol cadets experience flight firstha

through the efforts of CAP adult volunt eers, aviat

enthusiasts eager to share their love of flying. Oft

it is through CAP that a young person receives

first flight of his or her life. Aviation education

delivered in both the classroom and the cock

Cadets gain an understanding o f the complex forc

that cause an aircraft to achieve lift and oth

fundamental topi cs, such as navigation, engines a

aerospace history.

C ivil Air Patrol inspires youth to be responsible citizens.

Cadets serve their communities by helping with CAP’s

real-world humanitarian efforts. In addition, they gain

an appreciation for America’s 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 t

26,157 in 2010. Whether as members of school- or community-

 based squadrons, cadets, ages 12-20, benefit from a complete

curriculum that teaches respect, leadership, community service a

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.

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CAP’s Aerospace Connections in Education program provides grade-level specific, inqui

based aerospace instruction for K-6 students. Almost 150 ACE lessons are aligned with natio

standards of learning and use the aerospace theme to promote science, technolo

engineering and math (STEM) subjects, as well as character development and physical fit ne

The ACE program supplements the school’s c ore curricul a, adding educational rigor a

relevance. The program is being implemented in more than 400 classrooms in 27 stat

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 tomor row.

The Air Force Association, Civil Air Patrol’s

leading educational partner, provides annual

assistance for promot ing aerospace education in

CAP unit s and Americ a’s classrooms. Each year 

this affects more than 50,000 young people.

 AFA’s su pp or t also inc lu des th e o pp or tu ni ty fo r 

CAP cadets to participate in the organization’s

CyberPatriot competition, shown above, a

national cyber defense challenge that provides

youth with hands-on learning in a fun

environment. This year, CAP tripl ed its

participation in CyberPatriot, accounting for 

nearly one-third of the 476 teams in the All-

Services Division . CAP placed second and third

nationally in last year’s competition.

Teacher members of CAP

supported in the classro

with more than 20 natio

learning standards-align

educational products,

well as opportunities

awards, grants, professio

development and a uniq

CAP teacher orientation fli g

program. These flights p rov

firsthand knowledge of

appl icabi l i ty of STEinstruction as it relates to fli

and motion, motivat

participants to share th

newfound knowledge w

their students. Since

inception in 2005, the progr

has impacted more than 1,5

teachers and 60,000 studen

In 2010, more than 3

teachers were flown, ultimat

touching the lives of more th

14,000 students.

Congressionally chartered mission No. 3: Aerospace Education

C ivil Air Patrol’s aerospace education program includes

history, aerospace principles and the relevance of 

flight in today’s world. Even nonmember youth

 benefit from the program, which is offered in schools nationwide

through textbooks, lesson plans, learning aids and hands-on

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.

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24 January 2011

MEMORANDUM FOR BOARD OF GOVERNORS, NATIONAL BOARD & ADVISORS

SUBJECT: 2010 Year in Review

1. Numbers tell the story for Civil Air Patrol’s calendar year 2010, which included thesehighlights:

  First and foremost, CAP was credited with saving 113 lives in fiscal year 2010, as ourmembers 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 thousandsof aerial photos over 118 days helping the Federal government to identify and mitigatedamages from the Gulf oil spill;

  At the request of Air Combat Command, CAP initiated a second Surrogate Predatoroperational base in Las Vegas, NV. Both this Green Flag mission base and the one inAlexandria, LA provided outstanding live Predator training support to DoD forces beforethey deployed overseas into combat areas;

  CAP executed 100% of its Federal budget for the fourth year in a row by using soundmanagement practices as well as tools like the Web Mission Information ReportingSystem (WMIRS);

  Other WMIRS tools like electronic flight release and aircraft discrepancy reporting haveincreased safety and accountability while greatly reducing the paperwork required;

  CAP implemented the Operational Resource Management System (ORMS). This newsystem and its implementing regulation, CAPR 174-1, provide guidance and standards onacquiring, controlling, managing and disposing of all CAP property. It is a major stepforward for achieving 100% equipment accountability. The first annual inventory wasconducted successfully nationwide using the new system;

  CAP earned a second unqualified A+ audit opinion through enhanced emphasis onaccountability and the desire to be transparent in fiscal matters, and expanded the audit ofequipment and non-expendable assets at both Wing and unit levels to ensure all corporateassets are accurately accounted for;

  Thanks to more advance planning, CAP’s premier community service project, WreathsAcross 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 responsiblefor placing 39,000 of these wreaths;

  Safety, a number one priority with CAP, enjoyed the lowest number – zero! – for vehicleaccidents and fatalities.

2. In the midst of this very active year, CAP reclaimed its national headquarters buildingfollowing a year and half of refurbishment. Employees moved back into a modernized facility inAugust with a formal ribbon-cutting held in October. The national headquarters staff also hostedthe National Executive Committee and Board of Governors members for their fall meetings.

NATIONAL HEADQUARTERS

CIVIL AIR PATROL UNITED STATES AIR FORCE AUXILIARY

MAXWELL AIR FORCE BASE, ALABAMA 36112-6332 

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3. Despite a marked increase in lives saved for 2010, CAP continues to experience a shift in itsmissions – from classic search and rescue to more homeland security and disaster relief.

4. It is a tribute to CAP’s leadership, members and employees that CAP has successfully adaptedto a changing world while maintaining and even improving its cost-effectiveness and quality ofservices and programs, as evidenced by the following achievements in CAP’s key missions –

emergency services, cadet programs and aerospace education – accompanied by importantachievements in support services:

  Operations Achievementso  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, Missisppiand Louisiana, took hundreds to more than a thousand photos each day as they flewmore than 1,000 sorties and almost 2,400 hours in support of the United States CoastGuard 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 inFY10 CAP was credited with saving 113 lives. Ironically, part of the reason lesshours were flown and more saves were credited were due to advances being made inradar and cell phone forensics by CAP members reducing the search areas andhelping locate survivors sooner.

o  CAP’s participation in Air Force exercises remained high, flying over 1,900 hours ofair defense missions. This helps to ensure Air Force units across the countryresponsible 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 flownon these missions, and though not all reports are in, early estimates are that CAPcrews were involved in operations locating over $1.3B in illicit drugs.

o  CAP continued to fly 60-80% of AFNORTH’s scheduled sorties each day and flew amultitude of missions for Air Force installations across the country, including 757flying hours on low-level route survey, and 461 flying hours on range support andfire 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, flying1,374 hours.

o  CAP cadet orientation flights also rose over 9%. CAP flew 28,608 cadets and 12,898hours in FY10. A reorganization of the Glider Program should provide more cadetswith 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 schoolsand other training sessions held throughout the year. Facility upgrades are alreadymaking a huge impact, and the facilities continue to be developed and expanded.

o  The National Technology Center in Richmond, VA moved into new facilities lastsummer, and this will allow them to provide mission critical tech support foroperational equipment and serve as a COOP site for the NOC and AFRCC fordecades to come. Though there is still work to be done to complete the narrowbandtransition, over the last year communications team members at all levels made greatstrides. 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 becomplete 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 numerousimprovements in Cadet Program management made over the past two years by theCAP 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 CadetDrill Guide, Activity Guide, Curriculum Guide and a full library of ready-to-uselesson 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  CAP’s participation in “CyberPatriot,” the Air Force Association sponsored

competitive educational program designed to nurture the next generation of cyberwarriors, increased from 50 teams in 2009 to 150 teams for the 2010-11 program. Ofthe 12 teams awaiting the 4th stage of the competition to be held in conjunction withthe AFA Warfare Symposium in February 2011, 4 of the teams are from CAP. The5th and final stage of the competition will be held at the CyberFutures Conference inMaryland 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 premierevenue 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 theschool--a partnership that both organizations plan to continue. Secondly, CAPlaunched “Falcon Flight,” which challenges COS alumni to return to COS and sharetheir 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 volunteerssupplemented their planning sessions with tours of Boeing’s headquarters and theMuseum 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 70international youth in this exciting program that promotes goodwill andunderstanding 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 anelectronic 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 newactivities 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 seniorsto raise drug awareness by partnering with local agencies across the nation. Also in2010, DDR expanded its educational outreach programs to include support to DoDSTARBASE Academies located on Air Force installations across the nation.

o  The new Quality Cadet Unit Award program is underway. Squadrons that fulfill 5 of8 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 cadetunits to focus on key Cadet Program fundamentals.

  Aerospace Education Achievements 

o  More than 1,200 CAP squadrons and classroom teachers participated in CAP’s 2010

K-12 Aerospace Education Excellence (AEX) Award program. The programreached more than 35,000 cadets/students nationwide. AEX uses an aerospace themeto 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 increasedsignificantly for the 2010-2011 school year. During academic year 2009-2010, 62schools participated. For 2010-2011, 82 schools are currently participating, withmore anticipated. The student load has increased 77% thus far--from 6,500 studentsin 2009-2010 to over 11,500 students in 2010-2011. The ACE Program provides agrade-level specific curriculum that integrates an aerospace theme to promote STEMacademics, character education and physical fitness for living a healthy and drug-freelifestyle.

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 in2010. 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 satellitesoftware program which includes orbital mechanics and space operations. The program license was donated to CAP members by Analytical Graphics. 

o  CAP’s Teacher Orientation Program (TOP) Flights increased from 250 teachers

flown in 2009 to 320 teachers flown in 2010. Teachers return to their classroomsafter these flights and share their CAP flying experience with approximately 15,000students. 

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 ofthese schools return to their CAP organizations with a formal Aerospace Education

“Plan of Action” to implement in the coming year for cadet and senior membersassigned to their units, as well as in outreach efforts to the general public via theclassrooms of America. 

o  CAP has developed several organizational collaborative initiatives to promote

aerospace education opportunities to students, teachers and CAP cadets:

-  The Air Force Association takes the lead in partnership support by providingover $22,500 annually to fund grants for AE projects in CAP units and AEMclassrooms, 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 ofExcellence from each CAP squadron and a National CAP AE Cadet of the Year;mutually promoting each others’ organizational memberships; and promoting theArnold Air Society and Silver Wings 250 chapters' endorsement of the CAP K-6ACE Program curriculum for use across the nation in the ROTC Joint NationalProject entitled the "Elementary STEM Orientation (ESO) Program."

-  The Department of Defense STARBASE Program has endorsed CAP’s AEMembership program to promote to teachers attending the STARBASEAcademies on Air Force installations across the country. These academies aredistributing CAP AE, DDR and Cadet Program materials to the 5th gradethrough middle school students attending the academies.

-  FLIR Systems, Inc., the world leader in thermal imaging equipment, providedfinancial 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 CadetPrograms via the Teacher Orientation Program (TOP) Flight initiative at stateand 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 remotecontrol aircraft and unmanned aerial vehicles (remotely piloted aircraft) for CAPcadets.

- CAP earned a $10,000 grant from the LightSpeed Foundation.

  Safety Achievements 

o  CAP’s safety awareness and program management has significantly improved with

the addition of NHQ safety staff working in conjunction with the National SafetyTeam (NST). The NST is comprised of the National Safety Officer and volunteerassistants assigned as subject matter experts for flight and ground safety.

o  CAP has achieved a 50% reduction in powered aircraft accidents in FY10. The lastreported NTSB rate for U.S. General Aviation (2008) was 7.11 per 100,000 flyinghours, whereas CAP’s 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 CAP’s safety

education program, including computer based safety education technology, a safetyeducation tracking program and a hazard reporting system. A Safety Officer Collegeis 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 beenre-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

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  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 ofLevel II completions in the CAP Professional Development (PD) Program more thandoubled in 2010-- from 660 in CY09 to 1,452 in CY10. 

o  With assistance from the Wyoming Wing’s Colonel Stan Skrabut, the CAP NHQ PD

staff expanded the online version of the Squadron Leadership School and developedan online version of the Corporate Learning Course. These online courses provide anoption 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 studentsgraduate and WCC had 17 graduates. Additionally, this past year both courses weresupplemented by an online “read ahead” website and other preparatory activities forstudents. These executive-level courses prepare graduates for increased commandand 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 betterunderstand and implement test administration. Also, CAPP 50-9, New Horizons, was

 published to assist cadets transitioning to senior member status. A “ProfessionalDevelopment Resource Center” containing DVDs and lesson plans on topics such asleadership, management, communication, team building, problem solving, etc, wascreated 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 increasedadministrative support to this important program, responsibility for assisting the CAPChaplain Corps was transferred in 2010 from the CAP Operations Directorate to theCAP Educational Programs Directorate and placed in the Professional DevelopmentDivision.

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 professionaldevelopment of CAP cadets and senior members. 

o  CAP’s Chaplain Corps assisted with the Deepwater Horizon Gulf oil spill disaster.

As an example, one CAP wing chaplain served as CAP’s representative on the JointForces Ministry Team at the Deepwater Horizon incident command post for morethan 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” LearningManagement System (LMS). Also, the low-cost, high-volume “Moodle” LMS wasadded as an option for increased online enrollment capacity. Moodle will also bemade available for hosting specialized wing and region courses. 

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o  The CAP e-Learning staff supported the Cadet Program staff by organizing the 2010

Civic Leadership Academy curriculum and placing the curriculum on the BlackboardLMS 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 itsmissions. 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. 

  Logistics/Mission Resources Achievementso  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 therenovated headquarters building by moving furniture and computers, orderingfurniture and audio visual equipment, and ensuring that the telephone system was set-up and ready when the move was complete.

o  Contracting (LGC) executed over 1,000 actions involving nearly 4,500 line itemstotaling some $23 million of which nearly 90% was competitive and 55% went tosmall, disadvantaged and woman-owned firms. Numerous other important contracts

were awarded including 12 new aircraft, nearly 100 vehicles, 330 laptops for fielduse, new furnishings for the remodeled NHQ facility, a state-of-the-art audio visualsystem for the NHQ conference room and 17 five-year consolidated aircraftmaintenance contracts including 6 renewals. LGC also awarded five-year follow-oncontracts for printing and distribution of the Volunteer Magazine, DDR PromotionalItems, Program Travel, Audit Services and Network Security. New contractedservices in 2010 included auditing the 401k plan and investment management. Allfive-year contracts contain at least one option for an additional five years, which willlead to many long-term relationships with key service providers.

o  In FY10, 37 new vehicles were purchased with the annual vehicle buy. For thesecond year in a row, the Air Force provided end-of-year funding to purchase anadditional 62 vehicles bringing the yearly buy total to 99. This year’s buy replaced a

large number of vehicles that were identified as too costly to repair and vehicles fromthe 100 oldest list, improving the overall safety and reliability of the CAP vehiclefleet. 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 state-of-the-art Cessna 182T aircraft equipped with Garmin G1000 equipment. Three ofthese were turbo 182Ts that went to Rocky Mountain, Southwest and PacificRegions. The initiative to refurbish some of the older aircraft also continued thisyear. Refurb candidates were selected from older, but better, aircraft and equippedwith new engines, the CAP paint scheme and upgraded interiors. To top it off, a newavionics package was added, complete with the Garmin 430 GPS, XM weather andAspen EFD 1000 Pro Evolution Flight Display. Initial efforts focused on Cessna 172aircraft, 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 theirDecember 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 inreducing a 12-week backlog in cadet uniform shipments.

o  Our small but remarkable mailroom staff was impressive during the NationalHeadquarters 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. Inaddition to regular quarterly mail-outs, the mailroom packaged and processedrequests for more than 300,000 recruiting items, over 26,000 AE items and more than250,000 CAP forms, pamphlets and certificates. They played a major role in settingup and moving back into the renovated headquarters building, and had the facility ininspection condition for the NHQ open house and ribbon cutting ceremony.

  Plans and Requirements/Information Technology Achievementso  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. Theapplication presents various safety courses and provides a way to track all requiredsafety training for CAP members. Successful passage of a short quiz at the end ofeach element automatically logs completion and updates members’ safety educationrecords. The CAPWATCH download also contains the new information. Theapplication 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 andexams necessary to gain and maintain the check pilot qualification.

o  Cadet leadership and aerospace testing is now available in eServices. Cadets havethe opportunity to take most individual achievement tests online in a secureenvironment at a time and place of their choosing. Use of the Cadet OnlineAchievement Test System is not only convenient for the cadet, it also frees upapproximately one hour on the squadron’s training schedule each month. The newtesting system also reduces the squadron’s administrative burden, since test scoresare 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 theC182 NAV III so they are better prepared for both the ground course and flighttraining.

o  Operations Qualifications was updated to version 2.0, which includes a new look andfeel with a more responsive user interface. Additionally, every member has access toany member's Ops Qual information. The information is read-only for those withoutedit 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 uploadedinto the system. There are also numerous new “hover-overs” to provide detailedinformation regarding validators and approvers and associated dates. Lastly, theFlight Release Officer Support Report is now real-time and no-longer reflects day-oldinformation.

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 positionswill automatically receive permissions to applications. The Duty Assignmentmodule, located on the restricted side of eServices, has also been upgraded. Newfeatures include temporary duty assignments and a new user interface.

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  Public Awareness Achievementso  CAP’s dynamic news website, VolunteerNow (www.capvolunteernow.com), marked

its first year in operation in September 2010. It features a state-of-the art designhighlighting the achievements of Civil Air Patrol in a multimedia format. The sitealso captures headline news about CAP from print, broadcast and on-line mediaoutlets across America. As of November 2010, VolunteerNow was receiving 45,854

visits a month -- up nearly 140 percent from a year earlier. Most recently, itsurpassed the 500,000-mark in visits.

o  CAP’s second consecutive unqualified audit was published in a viewbook-styleFinancial Report. Similar to the publication that debuted in 2009, it featuredfinancial statements for the fiscal year as well as a lively overview of our core valuesand primary missions, heavily illustrated with photos. Its appealing photos andwriting 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 CAP’s Annual Report to Congress, CAP visitorsto Capitol Hill were provided with wing-specific four-page handouts to share withtheir legislators. The first page included highlights of the wing’s 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 CAP’scongressionally-mandated missions of emergency services, cadet programs andaerospace education. 

o  Though CAP’s award-winning magazine, Volunteer , was trimmed back to four issues per year, it remains our premier external communications resource. The fall issuewas expanded by eight pages to provide more comprehensive coverage of CAP’sresponse to the Gulf oil spill, considered by many to be our largest single missionsince World War II. Multi-story segments on a single topic, such as the oil spillresponse, are formatted so they can be easily reproduced as stand-alone handouts forrecruiting and publicity purposes. The Volunteer can now also be viewed online atwww.capvolunteernow.com in a digital format that allows for hotlinks and theinsertion of video clips. 

o  Wreaths Across America (WAA), CAP’s largest community service project,continues to grow with CAP’s help. This year, remembrance wreaths for veteranswere placed at more than 500 cemeteries and memorials nationwide, as well as at 26abroad. The total number of wreaths placed by CAP grew to 39,000. This representsapproximately 10 percent of all the wreaths placed nationwide by WAA. Thanks toearly planning spearheaded by Colonel Dan Leclair, Maine Wing commander,several additions were folded into CAP’s involvement with Wreaths Across Americathis year. Early attention for the event was accomplished with the distribution ofthank-you cards to veterans around Memorial Day. In addition to a second bridgeceremony 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 tothe field included creation of nearly 30 hometown releases designed to market and promote who we are and what we do at the local level. CAP’s story is getting out! 

o  A Public Affairs Summit led by CAP National Commander Maj Gen Amy Courterwas held in October. The two-day event included a review of CAP’s long term goalsand objectives; analysis of key stakeholders, media sources and themes; and reviewof CAP’s National Marketing Plan. This information was used by participants todevelop an updated comprehensive public relations plan, with action strategies andtimelines 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 CAP’s 70 th anniversary, will test us even further. The new year holds the promiseof long-delayed recognition for CAP, whose early members stepped up during World War II todefend America’s shores while providing the genesis for our organization. Legislation will bereintroduced in both the U.S. Senate and the U.S. House of Representatives to award CAP with the

Congressional Gold Medal, Congress’s highest award. To achieve that goal, however, CAP musttake the lead to secure the necessary support from our Congressional representatives. Two-thirds ofthe members of each house must agree to co-sponsor the legislation to advance it to committee andeventual enactment. With CAP’s signature determination, we can make this happen for our survivingWorld War II-era members or the families of those already gone, as well as for CAP, the bestvolunteer organization in America!

Sincerely,

AMY S. COURTER DON ROWLANDMajor General, CAP Executive Director National Commander