Financial management
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Girlguiding UK is financed by:
- subscriptions
from members
- the surplus from its Trading Service
- income from investments and deposits
- other sources, e.g. grants, royalties, donations and
legacies.
A summary of Girlguiding UK's accounts is published in its
Annual Review. For a copy of the full accounts contact the
Finance and Business
Development Department at CHQ.
Those responsible for charity money are legally obliged to
maintain proper accounting records. Every District, Division and
County Commissioner and every Country or Region Chief Commissioner
is encouraged to appoint a Treasurer to manage the financial
affairs of the area for which she is responsible.
Individuals responsible for funds are required to undergo an
enhanced criminal record Disclosure check.
It is the responsibility of the Commissioner to see that the
accounts are examined or audited and forwarded for scrutiny or
filing as appropriate. Copies of the accounts should be made
available to Leaders and others in the area, and must by law be
provided to members of the public on request.
District, Division and County Commissioners, and Country or
Region Chief Commissioners, are responsible for the financial
soundness of their areas.
Local guiding
accounts
A unit is responsible for its own financial affairs, although it
may delegate some fundraising to a Friends of Guiding
group. The Unit Leader may delegate the record-keeping to
another responsible adult but she remains responsible for ensuring
that the accounts are properly maintained.
The Unit Leader:
- is entrusted with the safe keeping of the unit's funds
- is responsible for seeing that a proper account of the funds is
kept
- if delegating the accounts to a Unit Treasurer, must review
them herself on a quarterly basis
- must ensure that anyone managing unit accounts, who is not a
member of the unit leadership team, is registered on Go! as a Unit
Treasurer
- must ensure that the accounts are independently reviewed each
year
- must ensure that a simple annual report statement is written to
accompany the annual accounts.
The Unit Leader need not do all management of funds herself. In
the Senior Section, for example, the Look Wider team or equivalent
may manage the unit's funds and make decisions regarding their use.
However, the Leader is ultimately responsible for the accounts.
The local Commissioner must ensure that unit accounts are
prepared and formally examined in accordance with the Charities
Acts (and, in England and Wales, filed) when annual income exceeds
£25,000. Where annual income and expenditure is below £25,000
(£5,000 for Scotland) it is a Girlguiding UK requirement to have
the accounts independently reviewed each year.
The publication Helpful
information about finance details the minimum
standard of record keeping for units. This publication is updated
as required to reflect changes in:
- accounting recommendations made by the Charity Commission
- legal obligations
- the length of time for which accounts should be kept.
In Scotland
Charities' accounting is regulated by:
- the Law Reform (miscellaneous provisions) (Scotland) Act
1990
- the Charities Accounts (Scotland) Regulations 1992
- the Statement of Recommended Practice for Accounting by
Charities.
The requirements for annual year-end accounts differ from those
in England and Wales. Details and advice can be obtained from the
office of
Girlguiding Scotland (SHQ)
Gift Aid
Gift Aid can be claimed on annual and weekly subscriptions, and
is worth approximately 28 per cent of the total amount received.
Unit Leaders are encouraged to make full use of
Gift Aid or other appropriate sources of external funding to
supplement their unit funds.
Salvation Army affiliated
units
The rules and guidelines for Salvation Army affiliated unit
finances are given in Orders and Regulations for
Leaders of Salvation Army Affiliated Units in the United
Kingdom (available from the Salvation Army but not from
Girlguiding UK).
BGIFC units
Guidance on bank accounts, auditing and other financial matters
can be obtained from the BGIFC office.
Branch
Associations
Each Branch
Association is required to comply with its own country's
financial and accounting legislation. A copy of the completed
accounts must be sent to the Adviser for Branch Associations at CHQ
with the Association's annual census.
Annual report and accounts
(where income or expenditure exceeds £25,000)
An area's report and accounts must be prepared annually, and
examined or audited in accordance with the recommended best
practice of the Charities Acts, or, in Scotland and Northern
Ireland, the appropriate equivalent legislation on accounting
requirements.
A copy must be forwarded to the appropriate Commissioner
as follows:
- unit accounts to the District Commissioner (Division
Commissioner where no District exists)
- District accounts to the Division Commissioner (County
Commissioner where no Division exists)
- Division accounts to the County Commissioner
- County accounts to the Country or Region Chief
Commissioner
- copies of Country and Region accounts must be sent to the
Finance and Business Development department at CHQ; copies of
Scottish County accounts must be sent to Business Management and
Finance at SHQ for information and review.
In Scotland:
An area's accounts must be prepared annually in accordance with
the relevant Scottish legislation. A copy must be forwarded to the
appropriate Commissioner. The District Commissioner (or Division
Commissioner where no District exists) must ensure that unit
accounts are prepared and, where necessary, are formally examined
in accordance with the appropriate legislation when annual income
or expenditure exceeds £5,000.
Expenses
Members are encouraged to claim all legitimate expenses. To
comply with the law governing charities, only out-of-pocket
expenses that are actually incurred in connection with guiding
activities may be refunded out of unit funds. Any allowance based
on a standard scale must be consistent with expenses that would be
incurred, and should not be paid unless the expenditure is
incurred. All expenses must be properly accounted for and
audited.
Banking
All funds held on behalf of members of Girlguiding UK (other
than petty cash, which must be kept to a minimum for reasons of
security) must be:
- kept in the name of the unit, District, Division, County,
Country or Region in a bank or building society account (preferably
where bank charges are not levied). or
- invested on behalf of the area concerned.
There must be at least two signatures for a withdrawal from any
bank or building society account. The people who sign (signatories)
must not be related to one another. It is recommended that every
account has three signatories, with two being required to make a
withdrawal.
Members and recognised volunteers are encouraged not to use
their personal credit cards to purchase goods for guiding
activities.
Electronic
banking
Electronic banking is only allowed when dual authorisation is
provided by the bank as mandatory for all external payments. Banks
that currently supply this free of charge are The Co-operative
Bank, CAF and Unity Trust Bank.
Cash and
investments
See 'Property and other assets'
Assets from an inactive
unit
All unit or area equipment, property, cash and investments
belong to Girlguiding UK.
If a unit is inactive, its funds and property are held 'in
trust' by the District (or Division, where no District exists) for
up to one year, after which time the assets must be disposed of as
outlined below.
When a unit, area, Local Management Committee, Friends of
Guiding group or Trefoil Guild is disbanded, its assets must be
dealt with in accordance with the terms of the governing
constitution and/or trust deed.
If there is no such constitution or trust deed, the assets:
- are deemed to belong to Girlguiding UK
- are used for Girlguiding UK or Trefoil Guild purposes (as
appropriate) in the same area (except for units attached to HM
Forces where different arrangements may apply).
On disbandment, all property and the unit registration
certificate must be handed over immediately to the relevant
Commissioner acting on behalf of Girlguiding UK. Unless otherwise
stated in a constitution or trust deed the District, Division or
County Committee (as appropriate) assumes the responsibilities of
any disbanded unit or Friends of Guiding group. The local
Commissioner must ensure that full records are kept.
Page last updated: 1/13/2012