Group financial management policy

We only spend money on activities that support Scouting.
Everyone involved in managing or spending Group funds must act honestly, keep good records and follow this policy.

The Trustee Board oversees all financial decisions.

2nd South Petherton Scout Group is part of the UK Scout Association, and a registered charity. We follow the Scout Association’s Policy, Organisation and Rules (POR), and Charity Commission guidelines.

We keep a main current account in the name of 2nd South Petherton Scout Group.

We keep at least three authorised signatories on the account. All payments need two unrelated signatories. The Group Treasurer must be a signatory on every account and receives monthly statements.

The Trustee Board must approve any new account, change of signatories or change in mandate. The Treasurer may move money between the Group’s accounts, but withdrawals and payments still need two signatures.

We keep only the money we need for daily costs in the current account and move surplus funds into an interest bearing account.

A list of current accounts is in Appendix 2: Schedule of Bank Accounts.

​Surplus funds are placed in recognised UK banks or suitable low‑risk cash investments.

We do not hold more than the Financial Services Compensation Scheme limit with any single bank.

The Trustee Board reviews these funds regularly. The Treasurer may move funds between accounts, but withdrawals and payments require two signatures.

A list of investment accounts is in Appendix 3: Schedule of Deposit Funds.

We aim to keep financial reserves equal to 12 months of operating costs.

This protects the Group if income drops or unexpected events occur.

We review the reserves level each year to make sure funds are healthy, safe and appropriate for the size of our Group.

We use pre-payment cards in place of petty cash.

Cards are issued to authorised leaders. The Group Treasurer loads funds onto each card through Online Scout Manager, and all transactions are automatically recorded in Online Scout Manager. Leaders then use the card for approved Scouting purchases, reconciling receipts and approvals within OSM. 

These cards ensure transparent, auditable financial management. They also avoid volunteers spending their own money.

No event should be run, where it is anticipated in resulting an overall financial cost to the Group, unless the running of that event has been approved in advance by the Trustee Board.

A fully detailed record of income and expenditure should be created and made available to the Group Treasurer with four weeks of the completion of the event. This will include all costs for an event (whether paid directly or reimbursed). The Accountancy Tools in Online Scout Manager make it easy to record event income and expenses clearly and consistently.

All fundraising done in the Group’s name must be approved in advance by the Trustee Board. All money raised must be given to the Treasurer as soon as possible and paid into a Group account. Together with a summary of income and expenditure.

Fundraising for another charity must also be approved in advance. Money must go into a Group account first before being passed on, so we have a full record.

Expenses linked to fundraising should be taken from the funds raised, unless the Trustee Board agrees otherwise.

We collect young member’s annual membership fees for the Scout Association and Somerset County, and pass them to East Somerset Scout District on time to secure any prompt‑payment discount. These membership fees are incorporated into the member subscriptions. Membership covers essential costs such as insurance and leader training, ensuring the Group can operate safely and in line with national requirements.

Young members must pay Group membership subscriptions (subs) as set by the Trustee Board. Subs ensure each young person is registered as a member of the Scout Association and covered by the Association’s insurance. Subs also cover programme costs and essential overheads.

We expect subs to be paid within the first two weeks of term. If subs are not received within four weeks of the due date stated in the first reminder, the Group may refuse admission to meetings, activities and events until payment is made. The Group Lead Volunteer, Treasurer and Section Team Leader will make this decision.

If subs remain unpaid at the end of term, the young person’s membership of the Group will cease unless the Treasurer has agreed an alternative arrangement, such as a payment plan in cases of financial hardship.

Families facing financial hardship are encouraged to speak with us at the earliest opportunity if they need help with costs. Any subsidisation for events must be agreed in advance, not once a debt has arisen. While we can often support young people to attend events, support is not normally available for subs. If a young person has outstanding subs, any payments made for events will be used first to reduce the subs debt. This may result in the young person being unable to attend the event if the event fee is no longer covered.

The Trustee Board’s Finance Sub‑committee reviews Group subscription fees (subs) each year. Subs may also be adjusted more often if major financial or economic changes (such as inflation or rising costs) affect the Group’s ability to run safely and sustainably.

The Group Treasurer prepares annual accounts in line with Charity Commission rules and Scout Association POR. The Trustee Board approves the accounts before they are presented at the Annual General Meeting.

The financial year ends on 31 March. Within 28 days of the AGM, the Group Treasurer sends the signed annual report and accounts to the District Treasurer.

All income and spending must be included.

Each year, an independent examiner checks the accounts from 2027.