Today’ Today ’s Seminar s Seminar Part 1 Charity Governance • Charities, Trustees & Duties Charity Governance • Executive Committee Part 2 Perth Academy Scout Hall Perth Academy Scout Hall • Group Scout Council & AGMs • Annual Report & Accounts Sunday, 17 November 2019 Sunday, 17 November 2019 • Independent Examination Part 3 Presented by • Financial Controls Presented by Michael Brougham Michael Brougham • Tax & Gift Aid Dunfermline District Treasurer Dunfermline District Treasurer • Adult appointments 1 2 Charity Governance or Management? Charity Governance or Management? • Governance is ensuring that the charity is being properly Being a charity is a privilege, not a right and legally run and determining its future direction The charity test: • The primary role of charity trustees is governance • All activities must be charitable • Management/Operations is the actual running of the • The charity must provide public benefit charity Some of the benefits of being a charity • Trustees of small charities are often also involved in • Increased public confidence through regulation operational matters • Gift Aid on donations (inc membership subscriptions) • Good governance is essential to the proper running of • Tax Reliefs the charity. It may not be exciting, but it is vital that it is • More sources of funding not overlooked 3 4 Trustees Duties of Trustees Trustees Duties of Trustees • Act in the interests of the charity • Charity trustees are “the persons having the general control and management of the administration of the • Comply with the governing document (POR + SV) charity” • Avoid/manage conflicts of interest (including personal • Members of the Executive Committee are the Group’s relationships between trustees) charity trustees • Ensure that the charity operates in a manner consistent with its purposes and that: • Members must be legally eligible to serve as trustees (i.e. not disqualified for any reason) – all activities fall within the charity’s objects, aims or purposes • Any trustee who ceases to be eligible to be a trustee – the charity’s assets are only used for charitable must be removed immediately purposes 5 6 1
Duties of Trustees Duties of Trustees Duties of Trustees Duties of Trustees Charity trustees must comply with the law including: Charity trustees must: • Charities & Trustee Investment (Scotland) Act 2005 • act with the care and diligence that is reasonable to • Charities Accounts (Scotland) Regulations 2006 expect of a person who is managing the affairs of another person • Health & Safety law and regulations • Data protection law (GDPR) • ensure the charity is properly run and is solvent • Reporting “Serious Incidents” to OSCR • act as guardians of the charity’s assets There is extensive guidance on the OSCR website about • ensure the Committee is “fit for purpose” and members are working together the duties and responsibilities of being a charity trustee • apply a duty of care to staff, volunteers and beneficiaries If you fail to comply with your duties as a charity trustee then it is misconduct in the administration of the charity 7 8 Group Executive Committee Group Executive Committee Group Executive Committee Group Executive Committee • Ex Officio Members • Co-opted Members – GSL & AGSL – By the Executive Committee - cannot exceed number elected – BSL, CSL, SL & ESL (but only if they agreed at AGM) • Term of Office – Chair (nominated by the GSL / approved at AGM) – Other than the GSL & AGSLs, all members of the – Secretary & Treasurer (elected at AGM) Executive Committee retire at the next AGM, but are • Elected Members eligible to be re-appointed. – Elected at the AGM - suggested between 4 and 6 • Nominated Members – Nominated by the GSL / Approved at the AGM - cannot exceed number of members elected 9 10 10 Group Executive Committee Group Executive Committee Group Executive Committee Group Executive Committee • Records Appointment of Trustees – Essential that all changes in the Committee are • Potential trustees should be indentified before the AGM recorded in AGM/Committee meeting minutes (with and made aware of: the date of change) – the aims and purposes of Scouting • All Executive Committee members must: – the responsibilities and duties of being a trustee and – be recorded on Compass as such (except GSL, the role to be undertaken AGSL, Chair, Secretary & Treasurer) – the time commitment required – have a PVG disclosure (if the Group is a charity) – PVG and training requirements – complete Module 1 (Executive) & GDPR • Never appoint trustees “from the floor” of the AGM • Good practice for Executive Committee Members to • Start the PVG process once intention confirmed complete HMRC Fit & Proper Person Declarations 11 11 12 12 2
Group Executive Committee Group Executive Committee Group Scout Council Group Scout Council Meetings The Group Scout Council is the body to which the • Should be held as often as needed and must be quorate Executive Committee is accountable and consists of: • Set expectations re attendance • Section Leaders, Assistant Leaders & Section Assistants • Agenda should by agreed by the Chair & Secretary • Group Active Support Members • Circulate papers in advance of the meeting • Skills Instructors, Administrators & Advisers • Collective decision making • Patrol Leaders • Decisions validly taken are legally binding on all • Parents/Guardians of Beavers, Cubs & Scouts members of the Committee whether present or not. • District Commissioner & District Chair • DC and District Chair are not members, but do have the • Any other supporters admitted by the GSL, the Group right of attendance at Executive Committee meetings Executive Committee or the Group Scout Council 13 13 14 14 Group AGMs Annual Report & Accounts Group AGMs Annual Report & Accounts The AGM is a meeting of the Group Scout Council A single document comprising: It must be held each year, not later than six months from • Trustees’ Annual Report financial year-end for the following purposes: • Independent Examiner’s Report • Receive and consider the Annual Report of the Group • Financial Statements Executive Committee including the annual statement of – Statement of Receipts & Payments accounts – Statement of Balances • Approval of the Executive Committee’s nomination for – Notes to the Financial Statements the appointment of an Independent Examiner • Election of the Executive Committee for the following year Omit pence from the numbers A copy must be given to anyone who asks for one. 15 15 16 16 Annual Report & Accounts Annual Report & Accounts Annual Report & Accounts Annual Report & Accounts The main purpose of the report and accounts is to make Trustees’ Report sure the charity is publically accountable for its activities • A well written report should be an effective way of and how it has utilised its funds. Financial information promoting your Group, but it is not a “Newsletter”. alone does not provide the whole picture. • It should focus on “telling the story” of the Group • Include photographs, charts, tables where appropriate In particular, the Trustees’ Report should explain: • Include plans for next year • What the Charity has done – its outputs • Do not copy the one from the previous year! • What the Charity has achieved – its outcomes Reserves policy needs to explain: • The level of reserves needed and why they needed • What difference the Charity has made – its impacts and benefits • The amount of reserves at the year end • Action planned to correct any material difference 17 17 18 18 3
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