How much money in the Troop Treasury?

[Eagle94-A1]

Our old SM finally retired.Honestly he should have retired a few years back as his health has been failing for some time now. But the COR/CC would not agree with selecting the current SM because he was no longer active with the church since getting married. Between the old SM's wife, and our past IH stepping in, we got a new SM.

 

Our challenge is the old SM is addicted to Scouting. He is on the committee, and attends meetings regularly. The troop was using his property to camp so that he could "still be somewhat involved." But after the accident he had getting the campsite ready, we are not going there anytime soon.

 

Wife told me that is now I am going to be when I get that age.  I hope I know when to call it quits.

[Col. Flagg]

 

Wife told me that is now I am going to be when I get that age.  I hope I know when to call it quits.

 

As our District Commissioner always says, "Retired unit leaders are always welcome on district committees."

[fred johnson]

The money we had in excess was slowly used up for special outings and for subsidizing events.

 

That was the right decision.

[frankpalazzi]

I've said it before. and I'll say it again.

 

Raise what you need.

 

Spend what you raise.

 

End of discussion. Pretty simple.

Edited July 7, 2017 by frankpalazzi

[Back Pack]

Good accounting, reporting and auditing is even simpler.

[Stosh]

The money raised is of no value in the bank.

[Back Pack]

The money raised is of no value in the bank.

But it is of value in emergencies where taking advantage of a discreet amount of savings allows the unit to purchase that new gear that just went unexpectedly on sale, that Philmont slot that opened up at the last minute or that unexpected expense of replacement (of gear or such) due to an act of God.

 

Let's not throw the baby out with the bath water. Personal Mgmt even teaches us to save and invest wisely, keep good records and audit to maintain credibility. It does NOT teach us to live paycheck to paycheck.

[Col. Flagg]

@@backpack is right. A Scout being thrifty does not mean existing without savings from which to draw. In fact, that is very prudent assuming -- as he points out -- that there are controls in place to monitor account. 

 

Funds have been pilfered during fundraising events, so not keeping a savings account does not guarantee the money raised isn't being funneled in to some committee person's personal bank account. 

 

Good financial controls are always a smart idea.

[Stosh]

A

 

But it is of value in emergencies where taking advantage of a discreet amount of savings allows the unit to purchase that new gear that just went unexpectedly on sale, that Philmont slot that opened up at the last minute or that unexpected expense of replacement (of gear or such) due to an act of God.

Let's not throw the baby out with the bath water. Personal Mgmt even teaches us to save and invest wisely, keep good records and audit to maintain credibility. It does NOT teach us to live paycheck to paycheck.

 

A small contingency fund for emergencies is not the same as literally thousands of dollars in a CD account.  The rainy day these people are holding out for would be a major hurricane or massive multiple tornadoes.  The point being, there are many Cub Scout units out there with huge balances in the bank.  I know this because the Cub Pack I worked with in the early 1990's had over $5,000 in their "savings" account.  The troop I was ASM for for 13 years averaged between $8,000 - $10,000 in their CD account.  This is why people have insurance.

[Col. Flagg]

@@Stosh, if that troop owns a trailer, then 8-10k is a drop in the bucket to purchase a new one. If it needs an emergency fix, that money would go pretty fast.

 

I agree that there's a limit to the amount a unit should hold in savings, but that will differ from troop to troop. But to say that ANY savings is a bad idea is simply not true for most units.

[The Blancmange]

if that troop owns a trailer, then 8-10k is a drop in the bucket to purchase a new one. If it needs an emergency fix, that money would go pretty fast.

 

 

 

Equipment of that sort of value should be insured. (There are other threads discussing this, and whose name it should be in). 

[Col. Flagg]

Equipment of that sort of value should be insured. (There are other threads discussing this, and whose name it should be in). 

 

Troops might have high deductibles in order to lower their rates, so insurance may only cover so much. If they have lower deductibles then they need to keep money in the bank to pay the higher rate. In either case, savings is needed to pay x amount. And if one needs a new trailer insurance does not enter in to the equation.

[blw2]

or one could argue that for the relatively small amount of property that a troop has (even including a trailer), that they could self insure.

[frankpalazzi]

But it is of value in emergencies where taking advantage of a discreet amount of savings allows the unit to purchase that new gear that just went unexpectedly on sale, that Philmont slot that opened up at the last minute or that unexpected expense of replacement (of gear or such) due to an act of God.

 

Let's not throw the baby out with the bath water. Personal Mgmt even teaches us to save and invest wisely, keep good records and audit to maintain credibility. It does NOT teach us to live paycheck to paycheck.

Personal Management is not the same as Troop Management.  In your annual budget planning, the oldest/most worn equipment should be replaced.  Have enough in reserve for the September post-summer Camp COH.  Camping, Awards, equipment, etc.  Every fundraiser has a definite purpose.  "We are raising money in order to ___________."  If you can't fill in that blank, don't do the fundraiser.  Don't have an "emergency fund"?  There's the purpose for a fundraiser, but the money is ONLY used for that purpose--it's kept "aside" on paper and declared as Emergency Funds in the Treasurer's report. In Personal Management, investing and saving is encouraged.  Why a scout troop would invest/risk their hard-earned money is beyond my understanding.  Scouts have no "skin in the game" if their money is sitting in a CD or an investment portfolio.  Saving is fine, but it should have a purpose. For example, purchasing a trailer.   In Troop Management, "thrifty" means "spend wisely".  There is no retirement fund in Troop Management.

 

So, your fundraiser(s) went much better than expected and you have quite the surplus?  Spend it off by subsidizing some high-adventure trips, or summer camp! How about some custom Troop hats or T-shirts for the boys?  But SPEND it!!!!  Like Stosh said, money in the bank does the boys no good.  A five-figure bank account in a scout troop or Cub Pack is nothing more than an ego-boost for the treasurer.  Raise what you need, and put the money to work for your boys.

 

BSAs Unit Budget Plan is the way to go.  Go by the book, and no one can call you out. (Miss you Tom!)

Edited July 12, 2017 by frankpalazzi

[Back Pack]

Nice post. Still does not refute the wisdom of troops having savings.