Banking
Sectional bank accounts
Many Groups keep separate bank accounts for each of their sections, while many others have just one for the whole Group. This decision is left to the Group Executive Committee, as is the extent to which the funds of each particular section are ring-fenced. Sections should not expect substantial financial independence, but the Committee would be wise to avoid de-motivating leaders if, for example, one section does the bulk of the fundraising.
If you do choose to have sectional accounts then they must be official accounts of the Scout Group, (for example '1st XXX Scout Group - Beaver Colony Account'), and need to be approved by the Executive. The bank must know that the account belongs to the Group.
The payment of money into such an account fulfills the requirement of 'paying the money into the Group's bank account', which would not be the case if it were opened and run by an individual leader.
If a Group operates sectional accounts, the Group Treasurer should be a signatory on the account and should receive statements, but need not always be one of the people who signs each cheque.
Funds
The amount of money that a Group should keep in its account is a tricky question. You will need enough for day-to-day running costs, along with the repair and replacement of equipment and a little extra for a rainy day. This will vary from Group to Group and from year to year.
You may also be holding funds that you have been raising towards a special trip or capital project. There is no limit on the amount of fundraising that you can do, but bear in mind that the Charity Commission would not be happy if the Group was holding a large amount of money that it could not use in the pursuance of the charity's aims.
Online banking
Policy, Organisation and Rules requires that, to safeguard charity funds from misuse, two signatures are needed to authorise any payment to a third party.
Internet banking would be fine if it allowed the electronic equivalent of this (dual secure logins to authorise transactions), but unfortunately the online banking currently available normally only allows control by a single person.
There is software available that enforces two-person operation of accounts (we use it at Gilwell), but it is currently expensive and would be a very large cost in the context of a single Scout Group. Hopefully one or other of the banks will soon produce a cheap or free equivalent.
Checking accounts
Who you should get to scrutinise your accounts depends on the income of the Group.
- Up to £10K: A Scrutineer, but at no time can a county use a Scrutineer.
- Between £10K and £25K: An Independent Examiner.
- Between £25K and £100K: An Independent Examiner with a qualification that the trustees believe is appropriate (if in any doubt, the trustees should seek guidance from the District/Area/County Treasurer.
- Between £100K and £250K: An Independent Examiner with a recognised CCAB qualification.
- Over £250K: A registered auditor to carry out an audit.