Scout Finances and the Role of the Unit Treasurer

Unit Finances: What needs to be funded? Units will often manage an annual cash flow from $10,000 - $20,000 Funding is managed for Membership items (hats, neckerchiefs, epaulets, position patches, handbooks,…) Awards and recognition items (pins, patches,… Rank Advancements (rank patches, merit badges, adventures…) Events (Courts of Honor, Pinewood Derby, Bike Rodeo,…) Activity reservations Transportation Camping and other gear and supplies, gear and trailer insurance, trailer registration Training Adult Registration

Fundraising All unit fundraising must comply with the BSA Fundraising Policies and Procedures (http://www scouting org/filestore/financeimpact/pdf/CFD-Manuals/Policies_and_Procedures pdf) Contributions Fundraising Advertising Commercialism Use of the Uniform Gambling Local Council Control Unit Money-Earning Projects Pyramid Sales Product Sales Scouting Public Display Activities Raising Funds

Fiscal Policies and Procedures Unit funds should be deposited into a checking or savings account that requires two signatures on every check or withdrawal. Unit Leaders can have a petty cash fund that is accounted for with receipts each month. All units need a tax ID number The Unit Committee is responsible for unit finances. A treasure is assigned the responsibility of managing the finances and is accountable to the committee. Chartering Organizations own each unit and its assets. Units should report financial health to chartering organizations at least annually.

Fiscal Policies and Procedures Equipment inventory should be reported to the chartering organization annually. All unit equipment should be insured by the unit or the chartering organization. Units may deposit funds with the lcouncil Upon dissolution of a unit, the unit committeeshall apply unit funds and property to the payment of unit obligations. Chartered Organizations should secure the property and hold assets in trust, as agreed upon, pending reorganization of the unit or for the promotion of the program of the Boy Scouts of America. Units are not legal entities. Units are ‘tax-exempt’ ony if the chartering organization is tax exempt and includes the unit.

Scout accounts Despite what you might’ve heard, the Boy Scouts of America’s rules do allow for individual Scout accounts. But it’s not that simple.

Scout accounts Sales of popcorn and the like are an important part of Scouting. They teach Scouts to be thrifty and to manage money. They give families who might not otherwise be able to afford Scouting a chance to experience it. But money earned from fundraisers must primarily be used in a way that benefits the entire unit. The nonprofit status of the BSA and of the unit’s chartered organization is at stake.

Scout accounts An example would be if a Scout is part of a unit, and the unit raises money to offset the costs of Scouting for the entire unit. Nothing wrong with that. If they use it as a means to pay down the cost for the unit and each member to go to summer camp, nothing wrong with that. On the other hand, when a Scout goes out and sells a lot of popcorn, and the unit designates that money that he raises to be used only for that Scout and only for activities that benefit that Scout, we get into an issue of whether or not the IRS would consider that to be a substantial private benefit. The IRS isn’t going to go after the typical young Cub Scout that’s selling popcorn, and it helps to pay for his uniforms or helps to pay for his summer camp. But to the extent we have people that are raising significant funds, and those funds are being used for costs that would normally be parental obligations in connection with Scouting, we’re getting into an area where the IRS has been and is paying more attention.

Scout accounts What does “substantial private benefit” mean? The idea of a large sum is important. The IRS limits “individual benefit” to 2% of the gross amount of fund raising/sales per scout. (if you sold $10,000 in popcorn and $5000 in cards then individual benefit limit per scout is $300). As long as the unit controls the funds, and as long as the funds are used for scouting purposes, then there likely will not be a concern about personal benefit. 

Scout Accounts Call the council office with any additional specific questions or concerns.

Treasurer Responsibilities Handle all troop/team/crew funds. Pay bills on recommendation of the Scoutmaster/Team Coach/Crew Advisor and authorization of the unit committee. Maintain the unit's checking and savings accounts. Train and supervise the troop Scribe, Team Secretary or Crew Treasurer in record keeping. Keep adequate records in the Troop/ Team Record Book. Supervise money-earning projects, including obtaining proper authorizations. Supervise the camp savings plan. Lead in the preparation of the annual troop/team/crew budget. Lead the Friends of Scouting campaign. Report to the unit committee at each meeting. Receive unit income each week from the troop scribe, team secretary or crew treasurer.

11/4/2017 Good Practices of the Unit Treasurer https://meritbadge.org/wiki/index.php/Treasurer_-_Good_Practices Keep it simple. Don't require large corporation policies and procedures. We're all volunteers with very full lives. Divide and conquer the accounting so that each step is a smaller easier process. Make it easy to re-create financial records when things get messed up. Make it easy to trace the money spent and the money received. Automate Simple units such as small Cub Scout packs without "scout accounts" can probably survive using Excel. Larger units or units with Scout Accounts might consider adopting TroopLedger, QuickBooks or Excel with a scouting template. The provided link contains additional good practices regarding monthly reports, bank account setup, check and cash processing, record keeping, collections, receipts, and some basics of accounting

Good Practices of the Unit Treasurer https://meritbadge.org/wiki/index.php/Treasurer_-_Good_Practices Keep up to date - Units repeatedly get in trouble when the treasurer falls weeks or months behind in their record keeping. Reimburse quickly - You will quickly lose volunteers if you don't reimburse them for weeks or months. Be supportive - We're all volunteers. Though the treasurer can be one of the hardest jobs in a unit, every volunteer job is significantly harder than doing nothing. Help each other get things done and succeed. Don't burn your volunteers - If they incur a "reasonable" expense, get them reimbursed in a timely way. If it's not reasonable, you have a different issue. Watch the rumors - Misunderstandings easily occur over money, hurt reputations and drive away volunteers.

Budgeting Provide supporting information before the annual planning session. Prior year expenses by category Recommended changes in categories Budgeting assumptions (unit growth and retention, advancements, camp outs, gear replacement, consumption of supplies, etc) Provide a balance statement Provide a summary of past income /expense and balance statements to evaluate budgeting results. Create an estimated budget to review and approve by the committee

Regular Reporting Report on Expenses in the prior period Report on actual expenses year-to-date versus the budget, by category Report on balances in bank accounts, including sub-accounts for scout accounts Report on any outstanding issues and their status (late payments, missing payments, budget issues, etc.)

Bank Accounts Ensure your banking policy is aligned with your Chartering Organization Don't hesitate to switch banks. It's cheaper to switch to the right bank than to stay in a less than perfect match. Avoid fees. Some banks have community service checking accounts that do NOT require a minimum balance, do NOT charge a monthly fee and do NOT charge other fees such as fees for too many checks being deposited (fundraisers). Ask if the online PDF bank statements will include images of the checks written against the account. This allows you to read the name on the check and the "comments" field. Most banks allow access to check images one-by-one when on-line. Some have them printed on mailed paper statements. But it is extremely useful to have the images on the on-line bank statements themselves because you can save them to PDF files and email to your co-leaders. You may want to change banks to get this capability as it promotes open easy communication and traceability. Have at least two registered signers for the checking account. Three or more signers is preferred.