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
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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 partner’s tax number
• It’s 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!