Financial Information

• The RSC Groups are established as independent Charitable Trusts and the RSC requires them to be self-financing. This means that the cost of all Group activities must be met from the Group’s own funds.
• “Guidelines for Treasurers” on the responsibilities of Group Treasurers in relation to trust records, annual accounts, VAT and related matters are provided by the Finance Department in Cambridge. 

Subscriptions

• Subject to a minimum set by RSC Council (currently £5.00), Groups are able to set the membership subscription at a level which enables the group to meet its commitments, including Committee expenses. Those Groups organising successful conferences often generate funds which can then be used to subsidise other Group activities.
• Member subscriptions are paid, in the first instance, via the Membership Department. Once a year in February/March the RSC transfers, in full, these subscriptions to the individual Groups via BACS. This will not be paid until the group’s Annual Financial Statement has been received by the RSC. 

Bank Accounts

• Each Group holds its own Bank Account and can carry funds over from year to year enabling them to manage their affairs on an on going basis. Likewise, they can also retain any surpluses from conferences.
• There are a number of general rules that should be adhered to regarding drawing cheques, changing cheque signatures and maintaining the bank accounts. These general rules are detailed in the “Guidelines for Treasurers”. 

BACS

• Groups are asked to use payment by BACS (bank transfers). The advantages of using this method are that funds are available without cheque clearance delays, the possibility of cheques being lost or delayed in the post is removed and there is no need to bank cheques. 

Recording, Reporting and Auditing Accounts

• Accounts can be recorded in a simple cash analysis book that shows on one side ‘Payments’ and on the other side ‘Receipts’. There is more detailed help in the “Guidelines for Treasurers”.
• Legislation stipulates two different bases related to turnover on which accounts should be prepared. 
• The RSC’s account year-end is 31 December and therefore all Groups should adhere to the 31 December year-end. All accounts should be with the Finance Department no later than 14 February so that they can be incorporated into the RSC’s annual accounts as required by legislation.
• Annual accounts must be audited. The type of audit to be performed varies with the levels of gross income. This is explained in more detail in the “Guidelines for Treasurers”.
• Audited Accounts can be submitted to the RSC before being accepted at a group AGM. 
• Legislation requires trustees to prepare a report to accompany annual accounts. More details of this for the above points can be found in the “Guidelines for Treasurers”. 

VAT and TAX

• Each Group is established as a separate Trust and this allows financial autonomy. Because the Trusts reflect the same objectives as the RSC they are deemed, by Inland Revenue, to enjoy charitable status for taxation purposes. However, if a Group has an annual turnover that exceeds £61,000 for the tax year 2006/2007 it may be obliged to register for VAT.
• The RSC is anxious to ensure that Groups are affected as little as possible by the somewhat complex responsibilities of trusteeship, tax and VAT registration etc. To this effect, additional advice or help may be obtained by contracting the Finance Department in Cambridge.
• A guide to “VAT as It affects Interest Groups” has been prepared by the RSC British Carbon Group based on direct experience of these matters.