Policy, Organisation and Rules

5e.1.1.1 Obligations

1. Every Group, District and County has an obligation to keep proper books of account.

5e.1.1.2 Applicable legislation 
For charities in England and Wales, the Charities Act 2022 applies.   

Charities in Scotland must comply with the Charities and Trustee Investment (Scotland) Act 2005, the Charities (Regulation and Administration) (Scotland) Act 2023 and the Charities Accounts (Scotland) Regulations 2006 (as amended).   

Similar legislation applies elsewhere – see POR 5a.1.1.1.  

5e.1.1.3 Financial planning and budgetary control 
The Group, District or County Trustee Board must ensure that proper financial planning and budgetary control is operated (see POR 5c.1.6, 5c.2.6, 5c.3.6, 5c4.6, 5d.1.5, 5d.2.5, 5d.3.5).

5e.1.1.4 Consultation with Leadership Teams 
The Group, District or County Leadership Team, as appropriate, must be consulted on the financial planning of the Group’s, District’s or County’s activities.  

5e.1.1.5 Approval of financial commitments 
All financial commitments not covered within the Group, District or County Trustee Board’s budget or its contingencies must be approved by the appropriate Trustee Board to ensure that any financial liability incurred can be met.  

5e.1.1.6 Entering financial or contractual obligations 
When entering into any financial or contractual obligation or commitment with another party, the persons concerned must make it clear to the other party that they are acting on behalf of the charity and not in a personal capacity. Nonetheless, Trustees of an unincorporated association are personally liable (on a joint and several basis) for any obligations taken on by that association. In this respect Trustees have the benefit of a Trustee liability insurance policy purchased by The Scout Association (see POR Chapter 5g).

5e.2.1.1 Annual statement of accounts 
A statement of accounts must be prepared annually and be independently examined or audited as appropriate in accordance with these rules and the separate Guidance [POR 5e.3].  

The annual statement of accounts must account for all monies received or paid on behalf of the Group, District or County. As noted below in POR 5e.4, this must include all sections, teams and sub-teams within the Group, District or County. 

5e.2.1.2 Submission of annual reports and accounts
The Trustee Board must ensure that signed copies of the Trustees’ approved annual report and accounts, are submitted within the 14 days following the relevant AGM at which the Trustees’ annual report and accounts were received and considered.

1. Groups submit to the District. Districts must advise Groups where Reports and Accounts must be submitted to - these will normally be the District Treasurer and the District Trustee Board Administration [see POR 5b.3.3.13] (in Counties with no Districts, Groups submit to the County Treasurer and the County Trustee Board Administration [see POR 5b.3.3.13])
2. Districts submit to the County. Counties must advise Districts where Reports and Accounts must be submitted to - these will normally be the County Treasurer and the County Trustee Board Administration [see POR 5b.3.3.13].
3. All Counties (^[NI] Districts) must submit to UK Headquarters (email the copy of the annual report and accounts to [email protected]). This also applies to the Overseas Territories.
4. Counties in England, including the Crown Dependencies, must also submit to their Regional Lead Volunteer
5. Districts in Northern Ireland must also submit to Northern Ireland Headquarters
6. Regions in Scotland must also submit to Scouts Scotland
7. Areas in Wales must also submit to ScoutsCymru

5e.2.1.3 Reporting to Regulators

1. In countries other than Scotland, where a Group, District or County is a registered charity, it must submit a copy of its Trustees’ Annual Report and accounts to the appropriate charity regulator (see POR 5a.1.2) within ten months of the end of the financial year.
   The only exception is for registered charities in England and Wales with an annual income of less than £25,000 – these are not required to submit these documents.
2. In Scotland, if the Group, District or Region is a registered charity, the Trustees’ Annual Report and Statement of Account must be submitted to the regulator within nine months of the financial year end, and must include:
   • a Trustees’ Annual Report
   • an Independent Examiners’ Report
   • a Receipts and Payments Account
   • a Statement of Balances (including a list of assets and liabilities)
   • Notes to the Accounts.  

5e.2.1.4 Restricted & Permanent Endowment Funds

1. If the Group, District or County has either restricted or permanent endowment funds then these (and associated income and expenditure and assets and liabilities) need to be shown separately in the accounts.   
2. Restricted funds are those which the Trustees can only use for a specified purpose and they cannot change that purpose without approval (normally from the person(s) who provided the funds).   
3. A permanent endowment is an asset, for example a property which must not generally be sold or disposed of.   
   The rules regarding utilisation of income generated from permanent endowments or the circumstances where it may be possible to dispose of permanent endowments are not straightforward.   
   There is guidance on the Charity Commission website but Trustees may also wish to take professional legal advice. The particulars of the Trustees in whom such assets are vested also must be shown.  

5e.2.1.5 Annual statement model templates (except Scotland) 
The annual statement model templates for use in countries other than Scotland are available for download from Accounting and Reporting. These models are suitable for:  

1. receipts and payments accounts for a single fund unit, such as when there are no special funds whose use is restricted (see more detail) 
2. receipts and payments accounts for a multi fund unit, such as when where there are special funds in addition to a general fund (see more detail) 

For accruals (SORP) accounts, guidance and templates are available from www.charitysorp.org 

It is expected that most Districts and Groups with gross income below £250,000 in the year will choose the Receipts and Payments basis.  

Based on historical experience most Counties are compelled, or choose, to follow the accruals accounts basis.  In addition, Districts and Groups with high levels of income or particularly complex operations may opt for the Accruals Accounts basis.   

5e.2.1.6 Annual statement of account model templates (Scotland)
The annual Statement of Account in Scotland must be in the format of one of two model annual statements available from Scouts Scotland. These models are suitable for Receipts and Payments accounts and Fully Accrued (SORP) accounts.  

The appropriate model may depend upon the gross income in the financial year and whether the Group, District or Region has any special funds whose use is restricted to specific purposes rather than the general purposes of the Group, District or Region.

5e.2.2 Trustees’ Annual Report 

5e.2.2.1 Content 

1. All Groups, Districts and Counties must produce a Trustees’ Annual Report. The content of the Trustees’ Annual Report will depend to an extent on the requirements of the charity regulator (POR 5a.1.2). 
2. In the past there has been significant variety in the level and type of information included within this reporting. The SORP, while only applying to accruals accounts, seeks to address this by suggesting standard headings that should be included in the Trustees’ Annual report.  
   The headings relevant to most Groups, Districts and Counties are:  
   
   • Reference and administration details   
   • Structure, governance and management  
   • Objectives and activities  
   • Achievements and performance  
   • Financial review  
   • Plans for future period and other optional information  
3. The Specimen Trustees’ Annual Report uses these headings and it is recommended that these are used by all Groups, Districts and Counties whether or not they are registered charities and whether they are producing receipts and payments or accruals accounts.  
4. The names of all Trustees must be shown and where they have not served throughout the financial year the date of their appointment or resignation must be given.  If any Trustees are also members of sub-teams of the Trustee Board this should be noted by their names e.g. Chair of the Fundraising Sub-team. 

5e.2.2.2 Presentation of accounts
The accounts presented must include all receipts and payments other than where it is clear that the Group, District or County is acting purely in an agency capacity for another part of the movement and as such never “owns” the money concerned¹. 

An agency arrangement occurs when one party (the agent) makes a payment to a third party on behalf of somebody else, with the explicit understanding that the agent is not the ultimate beneficiary of the payment.  A key indicator of acting in purely in an agency capacity is that the relevant Group, District or County only makes payment to the extent that amounts are received and has no responsibility to ensure that this occurs. In that context: 

1. Membership Subscriptions are NOT collected on an agency basis as amounts levied by District, County or Country or UK Headquarters are obligations of the relevant entity and are payable regardless of whether they are collected from the level down. This may also apply to other situations where the Group, District or County is invoiced for a payment and is obligated regardless of whether it is recovering the costs from elsewhere. In these cases, the receipts and payments must be presented “gross”. 
2. There may however be other arrangements which are made on an agency basis. For example, for a District Camp where each young person pays the camp fee to the Group who passes on the fees to the District but in the event of non-payment it would be the individual who is liable directly to the District for the fees. 

5e.3.1.1 Appointment of Independent Examiner or auditor
At each AGM of the Group, District or County Scout Council an auditor or independent examiner, as appropriate, must be appointed. Each Group, District or County must decide if it needs an auditor or independent examiner by reference to the tables below. Information about the qualifications for the person scrutinising the accounts are also shown below.

Charity Trustees are encouraged, as a matter of best practice, to formalise their relationship with the independent examiner or auditor by setting out the services that are expected via a letter of appointment. This will enable both parties to understand and appreciate the extent of the work and duties involved in the independent examination process.

For Scouts members of the Federation, the letter of appointment may be achieved by exchange of emails. It should lay out briefly:

• What the Independent Examiner or Auditor is being engaged to do   
  
• The date that has been jointly agreed that the examination of accounts will be complete

And include a link to the template for the examiner's report to the Trustees.

a) England and Wales

Gross income thresholds	Type of accounts	Minimum external scrutiny
£0 - £250,000²	Receipts and payments & Statement of Assets and Liabilities	An Independent Examiner (POR 5e.3.1.1(a.a))
£250,001 -   £1 million¹	Accrual in accordance with the SORP	An Independent Examiner who is a member of a recognised professional body (POR 5e.3.1.1(a.b))
>£1 million¹	Accrual in accordance with the SORP	A registered Auditor  (POR 5e.3.1.1(a.c))

There is more detail at the independent examination of charity accounts: guidance for trustees.

a. Qualifications: where gross income does not exceed £250,000¹

The Scout Council should appoint as an Independent Examiner³ an independent person that they reasonably believe possesses sufficient financial awareness, numeracy skills and relevant experience to carry out the work and make the judgements required.

The Charity Commission for England and Wales suggests that the examiner may work in a role that involves financial management, such as setting and managing budgets and reviewing financial reports, or that requires knowledge of accounting systems, such as maintaining financial records and internal controls.

To ensure no conflict of interest, person(s) appointed as an Independent Examiner⁴ must not hold any role in the individual Group, District, or County whose accounts they are scrutinising. Further, the appointed person should avoid any compromise on their independence by not being ‘connected’ to the Trustees (including ex officio Trustees) of the charity through:

• a family relationship. For example, the parent or child of a Trustee
• a financial or commercial relationship with a Trustee
• a financial or commercial relationship with the Group, District, or County. For example, someone who represents a body that funds the or contracts with the charity to provide services. 

Note that if, despite the income not exceeding £250,000, accrual accounts are prepared voluntarily then the Charity Commission for England & Wales recommend that these are examined by an Independent Examiner who is a member of a recognised professional body (POR 5e.3.1.1(a.b) below).

The Scout Council may instead choose to appoint a Registered Auditor.

b. Qualifications: where the gross income in the year under review exceeds £250,000 but does not exceed £1 million¹

The Scout Council should normally appoint an Independent Examiner, who must be a member of one of the following bodies⁵:

• Institute of Chartered Accountants in England & Wales
• Institute of Chartered Accountants of Scotland
• Institute of Chartered Accountants in Ireland
• Association of Chartered Certified Accountants
• Association of Authorised Public Accountants
• Association of Accounting Technicians
• Association of International Accountants
• Chartered Institute of Management Accountants
• Chartered Governance Institute of UK & Ireland
• Chartered Institute of Public Finance and Accountancy
• Association of Charity Independent Examiners
• Institute of Financial Accountants
• Certified Public Accountants Association

There is more detail available on gov.uk.

To ensure no conflict of interest, person(s) appointed as an Independent Examiner⁶ must not hold any role in the individual Group, District, or County whose accounts they are scrutinising.  Further, the appointed person should avoid any compromise on their independence by not being ‘connected’ to the Trustees (including ex officio Trustees) of the charity through:

• a family relationship. For example, the parent or child of a Trustee 
• a financial or commercial relationship with a Trustee
• a financial or commercial relationship with the Group, District, or County. For example, someone who represents a body that funds the or contracts with the charity to provide services. 

Alternatively, the Scout Council may appoint a Registered Auditor (see POR 5e.3.1.1(a.c) below).  

Important: a Registered Auditor must be appointed if the charity’s income exceeds £250,000 and its gross assets exceed £3.26 million.

c. Qualifications: when must a Registered Auditor be appointed?

The Scout Council must appoint a Registered Auditor if one of these conditions are true for the year under review:

• the gross income exceeds £1 million
• the gross income exceeds £250,000 and gross assets exceed £3.26 million

To ensure no conflict of interest, person(s) appointed as an Auditor must not hold any role in the individual Group, District, or County whose accounts they are scrutinising. Further, the appointed person should avoid any compromise on their independence by not being ‘connected’ to the Trustees (including ex officio Trustees) of the charity through:

• a family relationship.  For example, the parent or child of a Trustee
• a financial or commercial relationship with a Trustee
• a financial or commercial relationship with the Group, District, or County. For example, someone who represents a body that funds the or contracts with the charity to provide services. 

b) Scotland

Gross income thresholds	Type of accounts	Minimum external scrutiny
£0 - £250,000¹	Receipts and payments & Statement of Assets and Liabilities	An Independent Examiner (POR 5e.3.1.1(b.a))
£250,001 - £500,000¹	Accrual in accordance with the SORP	An Independent Examiner who is a member of a recognised professional body (POR 5e.3.1.1(b.b))
>£500,000¹	Accrual in accordance with the SORP	A registered Auditor   (POR 5e.3.1.1(b.c))

These requirements apply to all Scottish Groups, Districts and Regions, whether or not they are registered with OSCR. 

Whether or not the Group, District or Region is registered with OSCR, the auditor or independent examiner must carry out an external examination of the accounts in accordance with the requirements of the Charities and Trustee Investments (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended) and the Charities (Regulation and Administration) (Scotland) Act 2023. 

a. Qualifications: Where gross income in the year under review does not exceed £250,000¹

The Scout Council will normally appoint as an Independent Examiner an independent individual who is someone the Trustees consider is able to carry out an independent examination in line with the relevant requirements. The Trustees should satisfy themselves that the person appointed has the necessary knowledge and skills to be able to carry out the engagement, which may depend on the complexity of the Group, District or Region’s operations and accounts.

OSCR suggests that the types of people whom Trustees could consider as having the required skills and experience might include:

• full or associate members of the Association of Charity Independent Examiners
• qualified accountants currently in employment
• retired accountants
• other people familiar with financial matters who can demonstrate familiarity with the current reporting requirements for Scottish charities.

If accrual accounts are produced voluntarily, the requirements in POR 5e.3.1.1(b.b) below must be followed.

To ensure no conflict of interest, person(s) appointed as an Independent Examiner⁷ must not hold any role in the individual Group, District, or County whose accounts they are scrutinising. Further, the appointed person should avoid any compromise on their independence by not being ‘connected’ to the Trustees (including ex officio Trustees) of the charity through:

• a family relationship.  For example, the parent or child of a Trustee 
• a financial or commercial relationship with a Trustee
• a financial or commercial relationship with the Group, District, or County. For example, someone who represents a body that funds the or contracts with the charity to provide services. 

Alternatively, the Scout Council may appoint a Registered Auditor.  

It is a requirement to appoint a Registered Auditor if accrual accounts have been prepared and the gross assets exceed £3.26 million.  

b. Qualifications: Where gross income in the year under review is more than £250,000 but does not exceed £500,000¹

The Scout Council will normally appoint an Independent Examiner who must be⁸:

• a member of one of the following bodies:
  • The Institute of Chartered Accountants of Scotland
  • The Institute of Chartered Accountants in England & Wales
  • Chartered Accountants Ireland
  • The Association of Chartered Certified Accountants
  • The Association of Authorised Public Accountants
  • The Association of Accounting Technicians
  • The Association of International Accountants
  • The Chartered Institute of Management Accountants
  • The Institute of Chartered Secretaries and Administrators
  • The Chartered Institute of Public Finance and Accountancy
  • The Institute of Financial Accountants

OR

• A full member of the Association of Charity Independent Examiners

OR

• the Auditor General for Scotland

OR

• a person appointed by the Accounts Commission for Scotland

To ensure no conflict of interest, person(s) appointed as an Independent Examiner⁹ must not hold any role in the individual Group, District, or County whose accounts they are scrutinising. Further, the appointed person should avoid any compromise on their independence by not being ‘connected’ to the Trustees (including ex officio Trustees) of the charity through:

• a family relationship. For example, the parent or child of a Trustee 
• a financial or commercial relationship with a Trustee
• a financial or commercial relationship with the Group, District, or County. For example, someone who represents a body that funds the or contracts with the charity to provide services. 

Alternatively, the Scout Council may appoint a Registered Auditor.  

A Registered Auditor must be appointed if your gross assets exceed £3.26 million.

c. Qualifications: Where the gross income in the year under review exceeds £500,000¹

The Scout Council must appoint a Registered Auditor to carry out an audit.

To ensure no conflict of interest, person(s) appointed as an Auditor must not hold any role in the individual Group, District, or County whose accounts they are scrutinising. Further, the appointed person should avoid any compromise on their independence by not being ‘connected’ to the Trustees (including ex officio Trustees) of the charity through:

• a family relationship.  For example, the parent or child of a Trustee
• a financial or commercial relationship with a Trustee
• a financial or commercial relationship with the Group, District, or County. For example, someone who represents a body that funds the or contracts with the charity to provide services. 

c) Northern Ireland

Gross income thresholds	Type of accounts	Minimum external scrutiny
£0 - £250,000¹	Receipts and payments & Statement of Assets and Liabilities	An Independent Examiner (POR 5e.3.1.1(c.a))
£250,001 - £500,000¹	Accrual in accordance with the SORP	An Independent Examiner who is a member of a recognised professional body (POR 5e.3.1.1(c.b))
>£500,000¹	Accrual in accordance with the SORP	A registered Auditor   (POR 5e.3.1.1(c.c))

Find out more detail at Accounting and reporting essentials 

a. Qualifications: Where gross income in the year under review does not exceed £250,000¹

The Scout Council will normally appoint as an Independent Examiner an independent person whom they reasonably believe possesses the requisite ability and practical experience to carry out a competent examination of the accounts. The Charity Commission for Northern Ireland suggests that the key to a successful independent examination is in the examiner having the relevant skills and experience to undertake a competent examination and in all those involved having an understanding of:

• the responsibilities of the examiner and the Trustees in relation to the scrutiny, preparation and filing of accounts
• what an examination involves
• who may undertake an examination.

Note that if, despite the income not exceeding £250,000, accrual accounts are prepared voluntarily then the Charity Commission for Northern Ireland suggests that Trustees consider appointing an Independent Examiner who is a member of a recognised professional body (see POR 5e.3.1.1(c.b) below.

To ensure no conflict of interest, person(s) appointed as an Independent Examiner¹⁰ must not hold any role in the individual Group, District, or County whose accounts they are scrutinising. Further, the appointed person should avoid any compromise on their independence by not being ‘connected’ to the Trustees (including ex officio Trustees) of the charity through:

• a family relationship. For example, the parent or child of a Trustee 
• a financial or commercial relationship with a Trustee
• a financial or commercial relationship with the Group, District, or County. For example, someone who represents a body that funds the or contracts with the charity to provide services. 

There is further information available from the Charity Commission for Northern Ireland.

Alternatively, the Scout Council may appoint a Registered Auditor.

b. Qualifications: Where gross income in the year under review is more than £250,000 but does not exceed £500,000¹

The Scout Council will normally appoint an Independent Examiner, who must be a member of one of the following bodies¹¹:

• Institute of Chartered Accountants in England & Wales
• Institute of Chartered Accountants of Scotland
• Institute of Chartered Accountants in Ireland
• Association of Chartered Certified Accountants
• Association of Authorised Public Accountants
• Association of Accounting Technicians
• Association of International Accountants
• Chartered Institute of Management Accountants
• Institute of Chartered Secretaries and Administrators
• Chartered Institute of Public Finance and Accountancy
• Full Member of the Association of Charity Independent Examiners
• Institute of Financial Accountants
• The Certified Public Accountants Association

To ensure no conflict of interest, person(s) appointed as an Independent Examiner¹² must not hold any role in the individual Group, District, or County whose accounts they are scrutinising. Further, the appointed person should avoid any compromise on their independence by not being ‘connected’ to the Trustees (including ex officio Trustees) of the charity through:

• a family relationship. For example, the parent or child of a Trustee 
• a financial or commercial relationship with a Trustee
• a financial or commercial relationship with the Group, District, or County. For example, someone who represents a body that funds the or contracts with the charity to provide services. 

There is further information available from the Charity Commission for Northern Ireland.

Alternatively, the Scout Council may appoint a Registered Auditor.

c. Qualifications: Where the gross income in the year under review exceeds £500,000¹

The Scout Council must appoint a Registered Auditor to carry out an audit.

To ensure no conflict of interest, person(s) appointed as an Independent Examiner¹³ must not hold any role in the individual Group, District, or County whose accounts they are scrutinising. Further, the appointed person should avoid any compromise on their independence by not being ‘connected’ to the Trustees (including ex officio Trustees) of the charity through:

• a family relationship. For example, the parent or child of a Trustee
• a financial or commercial relationship with a Trustee
• a financial or commercial relationship with the Group, District, or County. For example, someone who represents a body that funds the or contracts with the charity to provide services. 

There is further information available from the Charity Commission for Northern Ireland website.

d) Groups, Districts or Counties located outside the United Kingdom

All Scout Councils in the Channel Islands, the Isle of Man, the Groups and Districts of British Scouting Overseas and each of the five Overseas Territories must arrange for scrutiny of their accounts in line with the local guidance from their charity regulator (POR 5a.1.2).

Use the guidance from the appropriate charity regulator (POR 5a.1.2) for appointment of Independent Examiners or Auditors in the Channel Islands, the Isle of Man, British Scouting Overseas and each of the five Overseas Territories.

If the Scout unit’s charity regulator does not offer relevant guidance, the guidance for England (POR 5e.3.1.1(a)) must be followed.

To ensure no conflict of interest, person(s) appointed as an Independent Examiner¹⁴ must not hold any role in the individual Group, District, or County whose accounts they are scrutinising. Further, the appointed person should avoid any compromise on their independence by not being ‘connected’ to the Trustees (including ex officio Trustees) of the charity through:

• a family relationship. For example, the parent or child of a Trustee 
• a financial or commercial relationship with a Trustee
• a financial or commercial relationship with the Group, District, or County. For example, someone who represents a body that funds the or contracts with the charity to provide services. 

5e.3.1.2 Report by the Independent Examiner or auditor
In countries other than Scotland, a report to the Trustee Board must be completed by the independent examiner or auditor in accordance with the requirements of the charity’s regulator (See POR 5a.1.1.2). Templates for reports by Independent Examiners are downloadable from Accounting and Reporting.

In Scotland, a report to the Trustee Board must be completed in accordance with one of the specimen accounts referred to in the Scouts Scotland Guidance as appropriate to an independent examiner or an auditor.

5e.4.1.1 Administration of funds 

1. Any section, team or sub-team or other activity (for example a Campsite, Scout Show or Scout Shop) that is not a separate charity must, to the extent authorised by the relevant Trustee Board, administer sums allocated to it. 
2. Subscriptions paid by members of any section, or on their behalf, must be handed to the designated Treasurer or their nominee as soon as possible after receipt.  
3. The receiving Treasurer or their nominee must make the necessary records and pay the money into the agreed bank account(s) as soon as practicable.  

5e.4.1.2 Maintenance of cash accounts 
Each section, or other approved activity (for example a Group camp) which receives or handles any cash must keep a proper cash account which must be produced, together with supporting vouchers and the cash balance, to the respective Group, District or County Treasurer at least once in each period of three months.

5e.4.1.3 Teams with their own bank accounts 
If a section, team or sub-team or other activity has their own bank account, then the transactions (and relevant support) should be provided to the appropriate Group, District or County Treasurer at an agreed frequency. All such transactions must also be consolidated into the Group, District or County annual accounts by the appropriate Treasurer(s) prior to their scrutiny by the Independent Examiner or Auditor.  

5e.5.1.1 Banking arrangements 
All banking arrangements for a member of the Federation must be approved by its Trustee Board. In line with POR 5e.5.1.2, bank accounts should be held in the name of the charity, or one of its teams or sub-teams.

For Explorer Units partnered with a Group, their operational banking arrangements may be made by the Group if:

1. The arrangement is recorded in a Partnership Agreement between the District, the Group, and the Unit. 
2. The agreement documents the operational financial relationship between a District, a Group and an Explorer Unit (see POR 4c.1.3.2).

There is guidance available regarding Network section finances.

5e.5.1.2 Receipt of funds
In line with POR 5e.5.1.1, all monies received by or on behalf of a Group, District or County (including from supporters), must be paid into a bank account, National Savings account or building society account held in the name of a Group, District or County or one of their teams or sub-teams. 

Monies received on behalf of a Group, District or County or any of their teams or sub-teams must not be paid into a personal bank account.  

5e.5.1.3 Account operation 
The account(s) should be operated by the respective Treasurer and other members authorised by the relevant Trustee Board.  

5e.5.1.4 Authorisation of payments
A minimum of two unrelated persons authorised by the Trustee Board must approve all banking withdrawals and payments.   

The authorised signatories must be approved by each respective Group, District or County Trustee Board, whether or not the authorised signatories are Trustees.   

5e.5.1.5 Sharing of accounts between charities 
Bank accounts must be operated within one charity. As separate charities, Groups, Districts and Counties must not share or mix their bank accounts with each other, or with other charities.  

5e.5.1.6 Payments for Scout related activities
Payments for Scout-related matters should be made from a Scout bank account wherever practicable.  

If necessary, payments for Scout-related costs may be made from an individual’s personal bank account or credit card but the relevant Treasurer or administrator should reimburse, based on provision of appropriate receipts.

5e.5.1.7 Cash received at activities 
Cash collected at activities may only be used as permitted in the relevant Trustee Board’s cash handling and expenses policy. 

5e.5.1.8 Surplus funds 
Funds not immediately required should be transferred into a suitable savings or investment account held in the name of the charity. 

5e.5.1.9 Advance payments
Trustee Boards may give volunteers or staff members “cash” in advance if:

1. clear limits are set by the Trustee Board. 
2. a process is in place to receive evidence of expenditure. 

This could include the use of preloaded ‘expenses’ cards or credit cards (with strict limits). Such cards must be:

1. issued in the name of the Group, District or County 
2. approved by the Group, District or County Trustee Board 
3. issued to named individuals to ensure that each card holder is clear about their responsibility for use of the card issued to them is clear.   

As with all other commitments, Trustees will be jointly and severally liable for expenditure incurred on such cards. 

The Trustee Board must agree a card use policy¹⁵. Details are included here. 

5e.6.1.1 Powers of investment 
The Scout Association’s own particular powers of investment are specified by its Royal Charter and apply only to The Scout Association itself and not to Groups, Districts and Counties. Unless therefore the powers of investment are specified in the formal Trust Instrument creating or governing any given Group, District or County, such powers of investment are governed by the relevant legislation: 

1. In England and Wales – the Trustee Act 2000 
2. In Northern Ireland – the Trustee Act (Northern Ireland) 2001 
3. In Scotland – the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended) and the Charities (Regulation and Administration) (Scotland) Act 2023 

5e.6.1.2 Investments are held in trust 
Investments held on behalf of Groups, Districts or Counties must be registered in such a way as to show they are held on trust for that body and they are not the private property of the individuals, if any, appointed as trustees in relation to that investment. 

5e.6.1.3 Use of special investment funds 
Groups, Districts or Counties are advised to make full use of special funds which are established for investment by charities and which pay dividend income gross. In the (currently unlikely) event that any tax is deducted at source the tax should be reclaimed from HMRC by the relevant Treasurer.   

Note that this will not apply in the case of those units operating in Scotland which have chosen not to register with OSCR who will, subject to the de minimis rules, be liable to corporation tax on such income. 

5e.7.1.1
Statements of account and all accounting records must be preserved for at least six years from the end of the financial year in which they are made, or for such longer period as HMRC or other relevant body require. 

Electronic storage of accounting records is appropriate and allowed. The Trustees should ensure that records are appropriately secured, backed up and accessible even if members leave Scouts.

5e.8.1.1 UK Headquarters membership subscription
To meet the costs of UK Headquarters’ services to the movement and the costs of organising and administering The Scout Association, and to meet The Scout Association's obligations to World Scouting, the Board of Trustees of The Scout Association requires a UK Headquarters’ Membership Subscription to be paid for each member aged under 18 at the time of the annual membership census. 

The amount of the membership subscription is decided annually by The Scout Association’s Board of Trustees. It applies to the whole of the United Kingdom, and to all members of The Scout Association who live outside the United Kingdom.  

The Board of Trustees also decides what proportion, if any, of the membership subscription is to be retained by the Country Scout Councils of Northern Ireland, Scotland and Wales towards the costs of their own Country Headquarters services. 

5e.8.1.2 Local membership subscriptions
In addition, to meet local costs, the local Group, District and County may also charge a membership subscription.  

In the case of Explorer Units partnered with a Group and operating using Operating Model 3 then the Group will charge the membership subscription to each Explorer, and will pay the District membership subscription for each Explorer. The District Trustee Board must be aware of the membership subscriptions charged by the Group for Explorers. 

5e.8.1.3 Collection and payment of membership subscriptions 

1. Every Group, District and County is responsible for the collection and payment of the UK Headquarters’ membership subscriptions together with any Country, County and District subscriptions in accordance with the numbers returned on the annual census return.  
2. Payments should be remitted to the District, County or Country Headquarters or UK Headquarters in line with the relevant Treasurer’s instructions and not later than the date annually notified locally.  
3. Membership subscriptions may be collected from youth members or their parents by a method decided by the relevant Trustee Board.   

5e.8.1.4 Gift Aid or similar schemes
Each United Kingdom Group and District is very strongly encouraged to use the HMRC Gift Aid scheme for membership subscription payments made in respect of youth or other members by UK taxpayers.   

In this connection it must be noted that those units operating in Scotland which are not registered with OSCR are NOT charities in Scottish law and cannot recover Gift Aid. For this reason, Scottish units are encouraged to carefully consider the advantages of registering as a charity.  

Outside England, Northern Ireland, Scotland and Wales, some governments operate their own scheme similar to gift aid. Where such a scheme exists, its use is very strongly encouraged. 

5e.9.1 Disposal of Group, District or County assets at amalgamation 

5e.9.1.1

1. If two or more Groups, Districts or Counties amalgamate, the retiring Treasurers must prepare a statement of account at the date of the amalgamation.  
2. The statement, together with all Group, District or County assets, supported by all books of account and vouchers, must be handed to the Treasurer of the Group, District or County formed by the amalgamation.  
3. If the receiving Treasurer considers it necessary, after consultation with the Trustee Board, they must ask the Trustee Board to appoint an appropriate person to examine the accounts.  

5e.9.2 Disposal of District or County assets at splitting  

5e.9.2.1

1. POR 5e.9.2 does not apply to Groups. 
2. If a District is split into two or more separate Districts, or into parts which will be amalgamated with other Districts, the assets of the District should be divided into proportions approximately represented by the member numbers of each part after splitting.  
3. If a County is split into two or more separate Counties, or into parts, which will be amalgamated with other Counties, the assets of the County should be divided into proportions approximately represented by the member numbers of each part after splitting.  
4. These proportions of the District or County assets should then be transferred to the Districts or County, which become responsible for those parts of the old Districts or County.  
   This should normally be done under the supervision of UK Headquarters.  

5e.9.3 Disposal of assets at closure of a Group, District or County 

5e.9.3.1

1. It is important to note that closure of a Group, District or County may be the result of a merger of Groups or Districts or Counties.  In these situations, two or more charitable entities are closed and are replaced by one new charity. 
2. If a Group, District or County is closed, the Treasurer must prepare a statement of account at the effective date of closure.  
   • For a Group, the statement, together with all assets, must be handed to the District Treasurer as soon as possible after the closure date and must be supported by all books of accounts and vouchers.  
   • For a District, the statement, together with all assets, must be handed to the County Treasurer as soon as possible after the closure date and must be supported by all books of accounts and vouchers.  
   • For a County, the statement, together with all assets, must be handed to the Country and UK Headquarters as soon as possible after the closure date and must be supported by all books of accounts and vouchers.  
3. The Treasurer must ensure that the statement of account is properly independently examined or audited as appropriate. 

5e.9.4 Assets and liabilities remaining after closure of a Group, District or County 

5e.9.4.1 Policy statement underpinning this section 5e.9.4
In the unlikely event that liabilities remain after the closure of a Group, District, or County then - to the extent that these liabilities exceed the value of any assets (including those already transferred under POR 5e.9.3) - there is no automatic transfer of those net liabilities to another entity.  

Any such outstanding net liabilities will therefore be the responsibility of the Trustees of the closed Group, District, or County. However, the relevant District, County, or Country Headquarters may, at their discretion, choose to provide financial support where their Trustees consider it to be in the best interests of their charity. 

5e.9.4.2 Net assets 
Net assets are where, after closure, total assets are greater than total liabilities: 

1. Net assets of a Group automatically pass to the District Scout Council which may use or dispose of these at its absolute discretion solely for the purposes of scouting.  
2. Net assets of a District automatically pass to the County Scout Council, which may use or dispose of these at its absolute discretion solely for the purposes of scouting. 
3. Net assets of a County automatically pass to the Country Headquarters, which may use or dispose of these at its absolute discretion, solely for the purposes of scouting.  

5e.9.4.3 Net liabilities 
Net liabilities are where, after closure, total assets are less than total liabilities: 

1. If after the closure of a Group there are net liabilities, then these remain the responsibility of the closed Group’s Trustees. 
2. If after the closure of a District there are net liabilities, then these remain the responsibility of the closed District’s Trustees. 
3. If after the closure of a County there are net liabilities, then these remain the responsibility of the closed County’s Trustees. 

However, the relevant receiving District, County, or Country Headquarters may, at their discretion, choose to provide financial support where their Trustees consider it to be in the best interests of their charity. 

5e.9.4.4 Other considerations following closure 

1. If there is any reasonable prospect of the Group, District or County being revived, the disposition of these assets and liabilities may be delayed by the respective Trustee Board for such a period as it thinks proper with a view to returning them to the revived Group, District or County.  
2. The Trustee Board of the receiving entity must ensure the preservation of the statements of account and all accounting records of the Group, District or County which has been closed. This will be within the timeframes indicated within the receiving entity’s Data Retention Policy but should normally be at least six years. 

¹ Transition: Changes in POR normally take effect from their date of publication in POR. However, the formal change to the presentation of accounts described in this POR 5e.2.2.2 must be implemented to reflect the financial year which ends during 2027.
Groups, Districts and Counties that wish to adopt this change earlier may do so at their discretion.  

²The SORP is currently under review and we anticipate that the updated edition will be available during 2026. On this basis, we expect POR in Autumn 2026 to reflect the updated SORP.  
Until POR is updated, the thresholds and other guidance in this edition of POR must be followed.

³The transition guidance noted as part of POR 5e.3.1.1(a) also applies here.

⁴Transition: Changes in POR are normally effective from their date of publication. However, the formal change from Scrutineer to Independent Examiner is effective from the AGM of the Group, District or County held during 2026 because this is when the Independent Examiner or Auditor is appointed. However, in practice this is essentially a change in title only, with no significant alteration in responsibilities—so it can reasonably be implemented immediately. This change applies only in England and Wales.

⁵https://www.gov.uk/government/publications/independent-examination-of-charity-accounts-trustees-cc31/independent-examination-of-charity-accounts-trustees#appendix

⁶Transition: Changes in POR are normally effective from their date of publication. However, the formal change from Scrutineer to Independent Examiner is effective from the AGM of the Group, District or County held during 2026 because this is when the Independent Examiner or Auditor is appointed.  
However, in practice this is essentially a change in title only, with no significant alteration in responsibilities—so it can reasonably be implemented immediately. This change applies only in England and Wales.

⁷Transition: Changes in POR are normally effective from their date of publication. However, the formal change from Scrutineer to Independent Examiner is effective from the AGM of the Group, District or County held during 2026 because this is when the Independent Examiner or Auditor is appointed.  
However, in practice this is essentially a change in title only, with no significant alteration in responsibilities—so it can reasonably be implemented immediately. This change applies only in England and Wales.

⁸https://www.oscr.org.uk/guidance-and-forms/independent-examination-a-guide-for-independent-examiners/section-4-who-can-act-as-an-independent-examiner/

⁹Transition: Changes in POR are normally effective from their date of publication. However, the formal change from Scrutineer to Independent Examiner is effective from the AGM of the Group, District or County held during 2026 because this is when the Independent Examiner or Auditor is appointed. 
However, in practice this is essentially a change in title only, with no significant alteration in responsibilities—so it can reasonably be implemented immediately. This change applies only in England and Wales.

¹⁰Transition: Changes in POR are normally effective from their date of publication. However, the formal change from Scrutineer to Independent Examiner is effective from the AGM of the Group, District or County held during 2026 because this is when the Independent Examiner or Auditor is appointed.  
However, in practice this is essentially a change in title only, with no significant alteration in responsibilities—so it can reasonably be implemented immediately. This change applies only in England and Wales.

¹¹https://www.charitycommissionni.org.uk/media/1411/20190703-arr07-guidance-for-independent-examiners-v20.pdf   (section 3.1)

¹²Transition: Changes in POR are normally effective from their date of publication. However, the formal change from Scrutineer to Independent Examiner is effective from the AGM of the Group, District or County held during 2026 because this is when the Independent Examiner or Auditor is appointed.  
However, in practice this is essentially a change in title only, with no significant alteration in responsibilities—so it can reasonably be implemented immediately. This change applies only in England and Wales.

¹³Transition: Changes in POR are normally effective from their date of publication. However, the formal change from Scrutineer to Independent Examiner is effective from the AGM of the Group, District or County held during 2026 because this is when the Independent Examiner or Auditor is appointed.  
However, in practice this is essentially a change in title only, with no significant alteration in responsibilities—so it can reasonably be implemented immediately. This change applies only in England and Wales.

¹⁴Transition: Changes in POR are normally effective from their date of publication. However, the formal change from Scrutineer to Independent Examiner is effective from the AGM of the Group, District or County held during 2026 because this is when the Independent Examiner or Auditor is appointed.  
However, in practice this is essentially a change in title only, with no significant alteration in responsibilities—so it can reasonably be implemented immediately. This change applies only in England and Wales.

¹⁵Transition:  Amendments to POR take effect from their date of publication. The revisions relating to expense cards have been developed around regulatory guidance. Trustee Boards that have already authorised the use of expense cards should align their practices with these rules as soon as practicable, and no later than 31st December 2026.