Re: District Finances
Jim Sleezer (JHS8@OSUVM1.BITNET)
Tue, 28 Sep 1993 11:08:33 CST
On Mon, 27 Sep 1993 23:28:15 CST Jon Eidson said:
>It is my understanding that a District cannot have a bank or finance
>account (ie have any money to spend).
I make a distinction between a bank account and a finance (fund) account.
Clearly, the rules say that a district may not maintain a separate bank
account. However, I see no restriction on a council including a fund account
for district activities. The key is management of the funds. The district
prepares a budget (event or annual) which is approved by council. As income
comes in, it is deposited to the council account (and credited to the specific
event or district FUND account). As expenses are incurred, they are paid
by council (and debited to the specific event or district FUND account). The
council manages the money and the district has funds available (just not cash
or checks they write themselves).
This has worked well almost everywhere I have been. A few councils have
required a positive balance in the account (i.e., until you have income, you
can't pay any bills) but if the budget is well prepared, you should be able
to spend against anticipated income. The fund accounting process is commonly
used when a council organizes a trip to Philmont or the Jamboree and I see
no reason why it shouldn't be suitable for district activities. Another
example is summer camp operation--it should be a separate line in the council
budget (and have it's own FUND account--but not a separate BANK account).
Well, I do see one reason, and it is probably the reason most districts want
to have their own funds. Councils sometimes use money intended for one purpose
to pay for another and a district's bills don't get paid on time and their
credit rating drops to zero. Cash flow is a problem for *several* councils.
And, there's probably a second reason. If a district makes money on an event
then district people want to keep the money for future use by the district.
They're afraid that *their* money might not be used just as they want it to be.
This should not be a problem if a council properly allocates some of its
monies to district operation. The district actually comes out ahead.
It's really not a case of a district having no funds, it is a case of where/
how those funds are receipted and disbursed.
Terry Howerton Sakima Group, Inc. SCOUTER Magazine Kansas City