Troop/ Group Banking Policies and Procedures

Introduction
Thank you for your support and taking on a role with troop/ group banking. To better support you in this role and to protect our Girl Scouts funds, the following are GSSOAZ’s policies and procedures as they relate to troop/group bank accounts and finances.

With your guidance, your Girl Scouts will learn money management skills that will serve them throughout their lives. Your Girl Scout troop will plan and finance its own activities, and you’ll coach your girls as they earn and manage troop funds. Troop activities are powered by proceeds earned through council-sponsored product program activities (such as the Girl Scout Cookie Program), group money-earning activities (council approved, of course!), and any dues your troop may charge.

Remember that all funds collected, raised, earned, or otherwise received in the name of and for the benefit of Girl Scouting, belong to the troop and must be used for the purposes of Girl Scouting. Funds are administered through the troop and do not belong to individuals.

Record Keeping

One critical task for each troop, no matter what grade level, is to maintain excellent records and establish a clear accounting system for all money earned and spent. As the troop’s troop leader or treasurer, you are responsible for ensuring money is spent wisely and maintaining accurate and complete records. This includes retaining copies of all receipts in a binder or folder, and tracking all income, too.

Troop funds are the benefit of all Girl Scouts in the troop and most of the funds should be spent in the year the funds are earned. Unless the troop has a long-term plan for spending the funds- like start-up money for an activity next year or a travel trip that they are saving up for. All funds expended should benefit all Girl Scouts in the troop equally.

• All troop bank accounts must be opened at a council approved bank.
  
  • Wells Fargo or National Bank
  • Each bank has its own process for opening an account. Your council membership team will assist you with councils bank account certificate of authorization
• All bank accounts must be opened using GSSOAZ’s tax id number and under GSSOAZ’s name utilizing your Troop Number as the name on the account.
• All bank account signers must be currently registered members of GSSOAZ and have a current background clearance on file.
• A minimum of two signers are required to open account. These signers may not be related or live in the same dwelling. These volunteers provide oversight to ensure funds are spent according to the guidelines outlined in Volunteer Essentials.
• All bank statements must have the “lead signers” address.
  • If bank statements are not coming to your address, you must adjust this.
• Being aware of your Girl Scouts troop finances is imperative. This includes a monthly review of your charges, fees and activities to ensure accuracy.
• No checks and / or withdrawals may be made out by the person receiving the monies. In the event a bank account signer is receiving reimbursement funds from the troop account, the other signer on the account must initiate this transaction and verify the reimbursement with supporting receipts.
  • Additionally, no check may be written out to “cash.”
• All Troop/ groups are required to submit a year end Troop Financial Report (TFR) annually, no later than September 30, regardless of the amount of account activity during the year.
• Troop/group accounts are for troop/groups that meet the minimum membership requirements to have a troop.
• GSSOAZ reserves the right to process ACH (Automated Clearing House) direct electronic debits and credits to or from troop/ group accounts at any time.

Managing Troop Funds

• Funds should only be used for troop/ group expenses/ activities, which may include: badges, patches, uniforms, books, supplies, registration fees, activity fees, camp and similar troop/ group expenses.
• Your Girl Scouts should learn and be involved in the management of troop funds utilizing girl led planning. At the beginning of each year, decide on programming, experiences and how troop funds are to be both earned and spent.
• Troop/ group funds never become the property of a Girl Scout or their family.
• Troop/ group funds belong to the troop for the expressed use of funding programming for the troop and may not be used for personal gain or expenses.
• Deposits should be made in a timely fashion, never hold onto monies, as you are responsible for them.
• All monies must be deposited in the bank account before ever being spent.
  • Receipts must be kept from deposits.
  • Receipts must be used when accepting payments to track monies.
• Individuals listed on an account are responsible for all account activity. Responsibilities include but are not limited to, account maintenance, keeping accurate records, retaining receipts, and any overdraft fees.
  • Girl Scout account financial records (e.g. bank statements, finance reports, bank receipts, cash disbursements, etc.) must be retained for seven years.
• Donations received by your troop/ group that exceed $750.00 must be submitted to GSSOAZ where it will be held in your name until you request, via check request, its use for programmatic expenses.
  August 2022
• Donations received under $749.99 may be directly deposited into your troop/ group account without first being routed through council.
  • Keep all supporting information, as these donations must appear on the year end Troop Financial Record (TFR)
• Troop/ Group funds should never be used to fund “family” experiences.
• GSSOAZ reserves the right to audit accounts at any time. Receipts should be easily accessible upon request.

Virtual Forms of Payment for Cookies

• The use of online payment vendors such as Paypal, Venmo, Apple Pay, Zelle are prohibited and may not be attached to your troop/ group bank account- per GSUSA guidelines.

Dormant Bank Accounts

• Bank accounts with no activity for 12 months will be closed and troop/ group proceeds absorbed into the disbanded troop account.
  • These proceeds will be held by council for one year.

If the Troop/ Group Disbands

• Upon disbanding the troop, complete the “Disbanded Troop” form and submit to Troop support.
• Funds remaining in the account should never be divided or given directly to the Girl Scouts or families in your troop.
• Prior to disbanding and after all expenses have been paid, it is suggested to have one final outing to officially close the troop and or send everyone to camp. Any funds remaining will be absorbed into the disbanded troop account.
• If any of your Girl Scouts are remaining in Girl Scouting, the troop funds should be evenly disbursed via check to their new troop.
• All items and troop inventory purchases via troop funds, must be turned into Council upon disbanding.

Girl Scouts of Southern Arizona Policy Updates

GSSoAZ recently updated its policies for troop/group/service unit bank accounts and the use of Third-Party Service Organizations (TSO) such as Pay Pal, Venmo, Square (etc.) for volunteers. The updates are as follows:

• No TSOs (money payment apps) with the exception of Square are allowed to be attached to troop accounts.
• Square is to be set up under the Council’s tax ID when being used for Girl Scouting purposes. Troop bank accounts are to be directly linked as the depository bank for TSOs. Girl Scouts of Southern Arizona has approved the Square as the TSO vendor, as their application allows each troop/group to setup their account with the Council’s tax ID with deposits going directly to the troop/group account. This application (Square) can be used for booth sales and to collect other monies from parents and/or the public as outlined in the Blue Book of Basic Documents (i.e. girls may not fundraise, etc.)
• When setting up your square account please indicate Girl Scout troop xyz, utilize 86-0098917 EIN for GSSoAZ

Tax Law Updates

Changes effective January 1, 2022, and 1099-Ks from TSO Vendors (money payment app) are as follows:

• Effective 1/1/2022 you may receive a 1099-K for payments received for product sales or other parental payments (dues, events, etc.) for your troop from a third-party payment organization such as Square, when using a personal account.

Using Personal Money Payment Apps

Volunteers may not use a personal money payment app (TSO), such as a Venmo, Paypal, Zelle, Apple Pay. If your troop is currently utilizing these services, these must be deactivated and removed from your troop account.

Note: If using Digital Cookie as the payment processor - No changes needed, and you should not receive a 1099-K

If you are participating in the Digital Cookie Program, consider using the Digital Cookie online app for processing any credit/debit card payments for in person/booth sales. The app is easy to use and there is a new function for OCR, optical scanning of cards, to improve the contactless payment process.

• In addition to these great benefits, the Council pays the processing fees which are about a fourth of the cost to use Square.
• Council will not be covering square fees going forward, for cookies, as has been the case in the past.

Thank you for adhering to these banking procedures and policies. GSSOAZ reserves the right to step in and close accounts if there is misappropriation of funds or policy violations.

 

Updated August 2022