Information for Member Network Treasurers

Information for Member Network Treasurers

For the purposes of this document, the term ‘Group’ is used to refer collectively to all Member Networks; ie, Interest Groups, Local Sections, Analytical Division Regions and Education Division Regions.

Groups are formed in accordance with a trust deed and must adhere to the rules approved by RSC governance boards.

Groups that are joint-funded with other professional bodies should contact the Networks and Networks finance team for clarity on which professional body’s rules it is accountable to.

1 - Bank accounts

Treasurers must ensure that their Group bank accounts are never overdrawn. Surplus funds should be placed in a deposit account if economical to do so; the RSC offers the facility to receive surplus funds for depositing on behalf of aGroup (in multiples of £1,000).

All current accounts must be with NatWest Bankline and set-up via RSC Networks Finance. A dual signature mandate applies, requiringtwo of the Group’s three officials to sign cheques.Changes to signatories are managed by the RSC.

2-Bookkeeping

It is recommended that statements are reviewed at least once per month to identify unexpected transactions and to maintain an awareness of uncleared cheques.

Paperwork relating to payments (invoices, receipts, vouchers etc.) must be filed for the statutory period of six years.

An Excel cashbook template (with instructions)is provided to assist Treasurers withrecording the finances. Whilst utilisation of the cashbook is optional, it is highly recommended as it can both simplify and speed-up the year-end accounts production.

3 - Annual Accounts

Under the Charities Act 2006, the RSC must include all Groups’ results in its annual financial statements. Therefore,each group is expected to submit a set of accounts every financial year (1st Januaryto 31st December). The accounts and associated appendices should be provided to the RSC Finance Department as soon as possible after the year-end (and by 14th February at the latest) to enable consolidation within the RSC financial statements.

For Groups with gross income below £100,000, the accounts should be prepared on a receipts and payments basis; ie, only transactions on the bank statement should be analysed, not ‘uncleared’ items.

If gross income exceeds £100,000, accounts must be prepared on an accruals basis, meaningincome and expenditure is recorded in the year it relates to, not the year it appears on the bank statement. Groups who exceed the threshold should continue to use this accounting method in future years.

The RSC provides an Excel workbook template to ensure consistency in the reporting and compiling of the accounts. To help prevent the formulae and links between worksheets from being inadvertently corrupted during the course of accounts preparation, much of the workbook is password protected.Although many treasurers are capable of adjusting our file without complications, but with over 120 individuals submitting files, this ensures consistency in format. We also recommend that all input is keyed manually, not copied or cut & pasted. For help with, or feedback on, the workbook, please contact Networks Finance.

The workbook includes the following appendices:

Appendix A – The Audit Programme Checklist is a set of steps that the auditor should perform (see section 4 for further details of the audit).

Appendix B – Although treasurers are expected to keep track of differences between their cashbook and bank statement, a formal Bank Reconciliation is only required from Groups with annual gross income exceeding £100,000.

Appendix C – The auditor is expected to provide their details and sign this formal Audit Report.

Appendix D – Details of Prepayments and Accruals affecting the year-end accounts must be provided (only applicable if gross annual income exceeds £100,000).

Appendix E –If a Group has acquired any items of value (eg, equipment, trophies) then the Fixed Assets schedule should be completed.

Appendix F – This is where the years’ cash movements should be analysed based upon categories determined by the RSC. Additional guidelines are provided on the worksheet. This page requires three signatures; treasurer, chairman and auditor. If the Cashbook is used then the appendix F summary is automatically populated. The links to the cashbook can be overwritten if the cashbook is not used.

Appendix G – The categories in appendix F are automatically summarised further (for RSC accounting purposes only), so no input is necessary.

Appendix H –Where appendix F reports ‘other’ transactions that do not fit into specific categories, further detail must be provided on H.

To finalise the accounts:-

• The RSC auditors require a copy of the bank statements that can confirm the year-end balance.
• Any appendix with signature requirements must be posted to the RSC so that our auditors can see pen on paper; ie, we cannot accept scanned copiesor photocopies.
• The completed Excel file should be returned by email to enable the efficient uploading of the numbers into the RSC accounting system.

4. Annual Audit

It is a requirement that the accounts are audited; the type of audit is dependent upon the level of gross income:-

• Up to £10,000 (honorary audit) - This can be performed by a member of the committee or a competent person approved by the committee.
• £10,000 to £100,000 (independent examination) - This must be carried out by someone independent1 of the Group and with the ability and practical experience to carry out a competent examination of accounts.
• £100,000 (independent profession audit)

1The nominated auditor must have neither involvement in the Group’s day to day decision-making nor a connection to anyone that does; ie, they must not be a child, parent, grandchild, grandparent, brother or sister, spouse, civil partner, business partner or employee.

To avoid unnecessary delays, it should be noted that audited accounts can be submitted to the RSC Finance Department before being approved at your AGM. We recommend making an advanced ‘booking’ with your auditor to ensure that this job is not treated as low priority at a time when they might be busy with other year-end jobs.

5. VAT

Although Groups share the RSC’s charity number, they do not form part of the RSC’s VAT group and therefore must not quote the RSC’s VAT number on any sales invoices they produce. Groups should only charge VAT if they have independently registered with HMRC.

A separate guide is available to help answer your VAT questions; Please contact the RSC Finance Department if you are considering registering / deregisteringfor VAT or for any other VAT related queries.

6. Grants

Only after the year-end accounts have been received, can grants be paid. The payment will be transferred directly into the Groups’ bank accounts by BACS. Queries relating to the grant calculation and payment should be directed to .

7. Guidance on Activities

Member Networks are established as independent Charitable Trusts and the RSC requires them to beself-financing. This means that the cost of all Group activities must be met from the Group’s ownfunds.

Please refer to the Networks Handbook for detailed information on the administration of the Groups. Links to aselection of finance-specific matters are provided below;

• Group expenditure - should be in accordance withthe RSC’s charitable objectives as laid out in our charter;
• Committee expenses –for further information, please go to;
• Sales invoices - the RSC charity number should appear on any promotional material (including sales invoices). Useful information is available at the Brand Centre;

Contact

RSC Guidelines for Member Network Treasurers24 November 2016