Certain Rules in this Section do not apply, without modification, in parts of the British Isles outside England and Wales.
Every Scout Group is a separate educational charity and is under a statutory obligation to keep proper books of account.
The Charities Acts apply directly only in England and Wales, but similar legislation applies elsewhere in the British Isles.
The Group Executive Committee must ensure that proper financial planning and budgetary control is operated within the Group.
The Group Scouters' Meeting must be consulted on the financial planning of the Group's activities.
All expenditure not specifically delegated to the Group Scouters' Meeting or Section Leaders must be approved by the Group Executive Committee to ensure that the Group can meet any liability so incurred.
When entering into any financial or contractual obligation or commitment with another party, the persons concerned should make it clear to the other party that they are acting on behalf of the Group and not in a personal capacity.
A statement of accounts must be prepared annually and be scrutinised, independently examined or audited as appropriate in accordance with these Rules.
The Group must ensure that signed copies of the annual report and accounts are sent to the District Treasurer within the 14 days following the Group's Annual General Meeting at which the annual report and accounts were considered and approved.
If called upon to do so, the Group Treasurer must also send a copy of the latest statement of accounts to the County Treasurer or Headquarters.
If the Group is a registered charity a copy of the annual report and accounts must also be sent to the Charity Commissioners within ten months of the financial year end.
The annual statement of accounts must account for all monies received or paid on behalf of the Group, including all Sections, Committees and the Group Scout Fellowship.
If the gross income or expenditure is above the limits laid down in the factsheet Guidance on Accounting and Auditing Requirements the statement of accounts must be in the form of a Statement of Financial Activities (SOFA) with balance sheet. The factsheet is available from the Scout Information Centre.
If the gross income or total income is less than the limits laid down in the factsheet an annual receipts and payments account together with a statement of assets and liabilities may be prepared instead.
If the Group is a Registered Charity, the annual report and accounts must include its charity number, particulars of any land occupied and assets which form part of a permanent endowment together with details of any receipts or payments forming part of such an endowment.
A permanent endowment is an asset, e.g. a property held by the Group, which may not be sold or disposed of.
The particulars of the trustees in whom such assets are vested also must be shown.
The annual statement of accounts may be in the format of one of four model annual statements available from the Scout Information Centre. These models are suitable for:
receipts and payments accounts for a single fund unit ie where there are no special funds whose use is restricted;
receipts and payments accounts for a multi fund unit ie where there are special funds in addition to a general fund;
accruals (SOFA) accounts for a single fund unit;
accruals (SOFA) accounts for a multi fund unit.
The appropriate model will depend upon the gross income in the financial year and whether the Group has any special funds whose use is restricted to particular purposes rather than the general purposes of the Scout Group.
At each Annual General Meeting of the Group Council an auditor, independent examiner or scrutineer, as appropriate must be appointed.
Each Group can decide if they need an auditor, independent examiner or scrutineer, by reference to the factsheet Guidance on Accounting and Auditing Requirements.
The auditor, independent examiner, or scrutineer must carry out an external examination of the accounts in accordance with the requirements of the Charities Act 1993.
A report to the trustees (the Group Executive) must be completed in accordance with one of the models in the specimen accounts referred to in the factsheet Guidance on Accounting and Auditing Requirements as appropriate to a scrutineer, an independent examiner or an auditor.
A scrutineer, or independent examiner is required to carry out the work programme defined in the factsheet Guidance on Accounting and Auditing Requirements.
