Compliant and Sound Financial Practices

Unit Finances Do not take handling money lightly. The Treasurer must be honest, above board with all transactions, and willing to undergo close scrutiny. Mismanagement of money will damage reputations and relationships – resulting in possible investigations and other legal action. Concurrence of money use should be discussed and approved in advance. Treasurer should be available at most all unit meetings.

Unit Checking Account Every unit needs a checking account. Banks demand a federal tax number to open an account. Never use your own social security number! Due to the charter agreement and tax laws, units are subordinate to the charter partners if chartered partners agree to subordinate. The unit carries the same tax status as the charter partner. Plan A Use the charter partners tax number Its legal, but some chartered partners have concerns If your charter partner is a business, go directly to Plan B. DO NOT Use Business EIN. Plan B Get your unit an Employer Identification Number (EIN) The Application (SS-4 Form) must be carefully completed. Select online SS-4 application for ease / speed of processing

Unit Checking Account If you need an EIN ---Be sure to apply for SS-4 ONLINE. Approximate Instructions: Line 1 Name of charter organization (legal name of applicant) e.g. Lake Conroe Forest Owners Association Troop 491 Line 2 Not applicable Line 3 Care of Name (committee chairperson, treasurer, or COR) Lines 4, 4a Mailing address, city, state, Zip code Lines 5, 5a Address if different from line 4 Line 6 County and state Lines 7a, 7b Name of principal officer (use COR or Committee chairperson) and tax ID, if you have one.

Unit Checking Account Instructions: (continued) Line 8a Type of entity Check Other (specify) and put Boy Scout Troop, Cub Scout Pack, etc. Note that the General Exemption Number for the Council may NOT be used for a unit. Line 9 Reason for applying: check Banking Purpose Line 10 Leave blank Line 11 Enter closing month of accounting year: use charter end month - December Lines 12 & 13 Leave blank Line 14 Check Other and put Youth program development

Unit Checking Account Instructions: (continued) Line 15 Put N/A Line 16a Check appropriate box (probably No) Lines 16b and c As needed or leave blank Third Party Designee Name and position of contact person (Committee chairperson or COR). Remember that the tax-exempt status of the pack, troop, or crew is consistent with the tax status of the charter organization. The EIN is only an identification number and does not provide special status. Your unit should not use Form 1023 to apply for recognition of exemption. This necessitates incorporation, annual tax filings, updates to the secretary of state, minutes of meetings and annual audits, many other compliance items and penalties for non-compliance.

Unit Checking Account Good Practices Always have two signatories (not the treasurer). Always have two statement reviewers Always do a monthly summary of income and expenditures against the budget and report it to the committee. Always use a receipt book, with duplicates for every money (income) transaction Use carbon-copy type checks for outgoing, and require receipts for all reimbursables. Have person submitting it to sign the receipt. All expenditures must be authorized by the committee chairperson and/or committee. Using an accounting software package may or may not work for your unit. A spreadsheet is fully acceptable, with some suggestions: Use separate tabs for different events (e.g. summer camp, popcorn, scout account, dues status, donations, scholarships, etc.

Unit Budgeting The unit should have a budget Allows for visible money management Determines fundraising needs Provides for unit leader to plan activities and purchases Budget should have separate account line items for most all significant expenditures and income Dues Donations Fundraisers (separate one for each) Other Income Scholarships Unit equipment Advancement Training Recognition Campouts/Activities Hospitality/parties Other Expense

Unit Finance Q & A Q. Can a unit (pack or troop) solicit funds? A. Soliciting funds from within the unit is acceptable, but no other solicitation is allowed. Q. What projects does the Sam Houston Area Council offer for unit money earning? A. The council offers two projects annually to help units to raise necessary funds. 1. Scout Fair Ticket Sales kickoff in February. Participating units earn up to 45% sales commissions Scouts earn prizes and recognition No need to file a Unit Money Earning Application Uniforms may be worn by participants 2. Popcorn Sales kickoff in September Units earn up to 30% sales commissions Scouts earn prizes and recognition No need to file a Unit Money Earning Application Uniforms may be worn by participants

Unit Finance Q & A Q. Can a unit elect to earn money in ways other than listed above? A. Yes, units can apply to raise funds using a Unit Money Earning Application form. An online version of the Unit Money Earning Application is on samhoustonbsa.org website. Q. Are signatures required for the online Unit Money Earning Application form? A. No, however council grants approval with the understanding that Chartered Partner and Unit Committee approval is secured. Q. Is there a paper Unit Money Earning Application form? A. Yes, they may be used.

Unit Finance Any Questions? Thank you!