Scouts Act Accounting for Scouting

1
Scouts ActAccounting for Scouting

• A Quick Guide to Preparing Scout Group Accounting
  Records for new Treasurers
• Presenter Gerard Prior, Kambah Group Treasurer
• Time 530 pm 630 pm 24th May 2006
• Venue  ACT Branch Office, 89 Kitchener Street
  Garran

2
Objectives

• Have a better understanding of the role of the
  Group Treasurer
• Be able to prepare and maintain the records
  necessary to complete the Annual Financial Return
• Know where to turn for help

3
Roles and responsibilities

• keeps a true and proper record of the finances of
  the Group Committee
• presents a financial statement at each meeting of
  the Committee
• receives all monies on behalf of the Committee
  and all of its members when acting in the name
  of, for, or on behalf of, the Association
• operates and maintains accounts of Group
  Committee (including sub-committees) including
  receipt of money, issuing receipts, banking,
  presenting accounts for payment to Group
  Committee meetings
• arranges annual audit of all accounts of the
  Group and presents statements of each account in
  the required format through Group Leader to
  District.
• ensures that all accounts are operated as per
  rules, i.e. must have at least two signatures
• oversees the operation of Section accounts only
  insofar as the way in which the books and
  accounts are being maintained
• ensures that a budget is produced
• arranges collection of Branch and Group Fees and
• maintains the Group Inventory.

4
Key Duties

• Issue invoices for Branch and Group Fees
• Collect bills and present to Group Committee for
  payment
• Bank money received and
• Prepare financial reports
• Annual Budget
• Committee Meeting Reports
• Annual Return

5
Where do we start?

• The Annual Return
• A good place to start
• Opening Account Balances
• Sources of Income
• Expenses
• Closing Account Balances

6
What accounts do we need?

• Group Account
• Section Accounts
• Joeys
• Cubs
• Scouts
• Venturers
• Keep their own accounts but may ask for your help
• Other
• Fundraising

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Income

• Branch Membership Fees
• Payable to Branch for each youth member and each
  warranted leader
• Group Fees
• Levied to cover all the expenses of the group
• Fundraising
• For a variety of purposes
• Hall Hire
• Long term or occasional but there are insurance
  requirements
• Donations
• Scouts ACT is registered to receive donations -
  Require special treatment talk to Branch
• Other (Interest, Sale of equipment)

8
Expenses

• Section Expenses
• Branch Membership Fees
• Property Expenses (Hall maintenance utilities)
• Property Insurance
• Leader Expenses
• Secretarial/Administration
• Fundraising Expenses
• Purchase of equipment and assets
• Interest on loans
• Hall improvements
• Other

9
Primary records

• Bank Statement
• Shows all deposits and withdrawals
• Deposit book
• Deposit slips, or invoices if you bank online
• Bills/Invoices/Petty Cash Receipts
• Cheque book

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Your records

• Income
• Receipt book
• Receipts issued for all money received (including
  direct deposits)
• Expenses
• Expenses must be approved by the Group Committee
• Presented at Committee meeting
• Cover yourself when issuing funds on behalf of
  the Group
• Seek annual authorisation for direct debits
• Other withdrawals for example cheque account
  three signatories with any two to sign
• Petty cash expenses kept to a minimum receipts
  presented at committee meeting
• KSG use a payment sheet, noting who payments are
  to, what payments are for, when payments were
  approved by the Group Committee, the cheque
  number (direct debit reference or petty cash) and
  the amount

11
Keeping accounts

• Petty Cash account
• Section account
• Group accounts
• Fundraising account
• Base your accounts on the Annual Return
• How you keep your accounts is up to you
• Exercise book
• Cash Journal (available from your newsagency)
• Excel or similar spreadsheet package
• MYOB or similar accounting package
• Keep a paper trail you, your President and your
  auditor can follow
• Keep it simple - dont create accounts you wont
  use

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Preparing Financial Reports

• Committee report
• Base it on the Annual Return
• Income received, Expenses paid, Expenses to
  approve, Income Statement (year to date), Group
  Balances
• Annual Return
• Simply your Income Statement (to 31 December)
• Budget
• What were your main expenses last year?
• How many youth members did you have?
• Income Expenses Net Income (try for zero or
  positive)
• You may be able to automate the process
• If you use a spreadsheet package and write some
  formulas or use an accounting package, these
  reports may be produced automatically.
• But if your scout group is small, and you have
  few transactions to process, is it worth the
  effort?

13
Auditing

• Section 1.3 of the Group Annual Return
• The Committee should be questioning you as you
  go. So at the end of the year, there are no
  surprises.
• The auditor may (usually does) find problems
• This is usually because accountants do things in
  particular ways. If you explain what you have
  done, they can then advise what you perhaps
  should have done.
• Auditor verifies that the Income and
  Expenditure Account and Summary of Group Funds
  present fairly the financial position of the
  Group and the results of its operation
• To do that, they need a paper trail to follow.
• Need an auditor contact Branch

14
Resources

• Documents
• Supporting the Group Treasurer a guide to the
  role (Scouts Australia)
• The Group Business Plan Guidelines for
  Developing an Integrated Youth Program, Parent
  Support Program and Financial Plan (Scouts ACT)
• Talk to Branch
• If they cant help, they will put you in touch
  with someone who can