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2022-12-31-accounts

Gateshead District Scout Council Annual Report and Accounts 2022

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Contents

Contents

Welcome from the District Chair ..................................................................................................... 3 District Commissioner’s Annual Report 2022................................................................................... 4 Trustees’ Annual Report ................................................................................................................ 6 2023 – The Year Ahead............................................................................................................... 18 Annual Accounts ......................................................................................................................... 19

Photography Credits

Photographs bring our annual report to life and our thanks go to the members of the District whose photographs are used throughout this report.

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Welcome

Welcome from the District

Welcome once again to the Annual Report and Accounts for Gateshead Scouts (Gateshead District Scout Council).

For reasons summarised in the Trustee Report, due to circumstances beyond the control of the trustees, the Annual Report and Accounts for 2022 is somewhat late in being published.

2022 was nevertheless another successful year for Scouting in Gateshead and we are delighted to report on another year which saw further growth and development in the scout district.

As always, this would not have been possible without the dedication and hard work of our volunteers and of course our staff at Whickham Thorns Outdoor Activity Centre. I would like to thank them all for their continued support throughout another busy year.

increasingly important work which is necessary as we develop and grow and find ourselves quite rightly subject to additional regulation and best practice.

I would also like to thank all those external individuals and supporters (mentioned elsewhere) who have also helped us to move in the right direction in 2022. Over recent years Gateshead Scouts have received significant financial and other support from individuals and external organisations. It is that support which not only helps us to ‘keep the wheels on’, but to safely move things forward at pace.

At time of writing we know that 2023 has been another successful and busy year and that 2024 will be a year full of change and opportunities.

We look forward to the challenge of providing more and better Scouting to more young people in Gateshead, and continuing to work in the communities which support us, and which we in turn support.

I would especially like to thank my fellow trustees for their support in further improving the governance of the charity – this is

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District Commissioner’s Annual Report 2022

District Commissioner’s Annual Report 2022

The charity continued to support and provide youth activities in the nine scout groups across the District, despite the post-covid loss of adult volunteers which affected all groups to a greater or lesser extent. The challenge of adult recruitment remains a large one.

All scout groups reported waiting lists in the year but were unable to offer places to young people due to a lack of volunteer leaders.

Youth membership at the end of 2022 was recorded as 507. This reflects the successful work of groups to mitigate the long lasting impact of the pandemic. One group remains without a beaver scout colony due to adult shortages. However, another scout group -

the 9th Gateshead - opened its first ever explorer scout unit.

A key priority for 2022 was to reverse the effects of the pandemic and support young people to see themselves as part of a movement beyond their own group.

This has been successful and scout groups from across the District have continued to get involved in a variety of programme days, including indoor badge days at Cardinal Hume for the cub section; a first aid competition, a camping competition and outdoor events for the scouts and explorer sections. Groups have continued to take part in Durham Scout County events such as the Beaver Picnic, Cubboree and Confido.

The key development point for 2021/2 was the new district headquarters and thus the biggest event for the charity in 2022 was the move to the new District HQ at Victoria Road in Bensham.

This was a planned move to increase the space available for youth events, but also reflects a priority of the District to extend Scouting into areas of high social depravation.

The 7th Gateshead Scout will move in at the start of 2023 and the extra space and location makes them confident that they can grow their provision and increase the diversity of the group.

This move was made possible with the support of the Gateshead Keser Torah Primary School who found, purchased and renovated the former Methodist church on Victoria Road. exchanging it for Mitchell House (the previous district headquarters) as part of an asset swap.

Mitchell House was emptied in October 2022 and will start its new life as part of the Jewish Community assets in the area. At the end of 2022 Victoria Road was also being used by the Big Local Gateshead charity as an administrative base and their Friday Pop Up

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District Commissioner’s Annual Report 2022

Shop was a thriving part of the local community.

Whickham Thorns has had an excellent year. In line with its sub-committee constitution, as well as providing activities to Scouts, throughout 2022 the site was used for a range of activities in the local community to help Gateshead THRIVE.

The Department for Education HAF (Holiday Activities and Food) fund allowed us to provide a range of on-site and off-site school holiday food and activity provision for young people in the Gateshead area.

In addition, the site was used by a number of corporate partners who wanted opportunities

for staff volunteering, including Sage and Highways England.

The economic impact of the venture is also bearing fruit for the community. Two young people under 25 were undertaking apprenticeships with Gateshead Scouts at Whickham Thorns and another has secured a thirty hour a week role which allows her to pursue her passion for a career in the outdoors. The site has also been well used by schools across the region.

Andrea McGuigan

District Commissioner

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Trustees’ Report 2022

Trustees’ Annual Report

Year Ending 31st December 2022

The trustees take pleasure in presenting their annual report along with the financial statements of the charity (pages 19-20) for the year ended 31st December 2022.

In November 2022, the Chair of Gateshead Scouts became unavailable to support the work of the charity at short notice due to actions taken by third parties.

As allowed for under our Constitution, the District Commissioner assumed the role of District Chair for what was originally assumed to be a short period of time. However, due to circumstances beyond the control of the trustees, the expected return of the District Chair was significantly delayed.

During this period the trustees and other members of Gateshead Scouts focused on day to day governance and management of the District.

However, the extended absence of the District Chair resulted in delays in the preparation and publication of this annual report and accounts, resulting in the charity significantly missing

the filing deadline with the Charity Commission.

Based on a resolution of the trustees and in line with Charity Commission guidelines, the reasons for this delay have been fully reported to the Charity Commission in a serious incident report as it is considered that the late filing could result in reputational risk to the charity unless potential funders are reassured that this was a one-off issue.

The trustees would emphasise that normal accounting operations continued throughout this period and that the annual accounts (as published herein) were completed in a timely manner. The trustees do not consider that the absence of the District Chair during this period had any other adverse impact in the day-today work of the charity and do not consider that any other governance risks have arisen as a result.

At the time of preparing this annual report the trustees believe that there is no likelihood of the issue reoccurring and consider the risk of submitting late returns in future years to be low (this risk has been added to the charities risk register, with risk mitigation measures being put in place).

Additional Information

Principal Address

Charity Number

Gateshead Scouts Victoria Road Scout Centre Victoria Road Gateshead NE8 2SZ

1015159 (registered in England and Wales)

Scout Association Registration Number

10001695

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Trustees’ Report 2022

Constitution and Objects

Gateshead District Scout Council (informally known as ‘Gateshead Scouts’ and also referred to herein as ‘the Scout District’ or simply ‘the District’) is a registered charity in England and Wales (number 1015159).

Gateshead Scouts’ governing documents are those of The Scout Association. They consist of a Royal Charter dated 4th January 1912 (as amended by supplemental charters dated 28th March 1949, 18th February 1959, 5th May 1967 and 19th July 1991), which in turn gives authority to the Bye Laws of The Scout Association, the Policy, Organisation and Rules (POR) of the Scout Association; and also by a constitutional document approved by the District Scout Council on 24th September 2022 which defines the Scout District’s implementation of POR Chapter 4 ('The Scout District’) with respect to the operation of the District Scout Council and the District Executive Committee (which became known as the Trustee Board from April 2023 onwards).

With the agreement of the Charity Commission, in late 2022 the Charitable Objects of the charity were updated to align with those of the Scout Association and are now:

“To promote the development of young people in achieving their full physical, intellectual, social and spiritual potentials as individuals, as responsible citizens and as members of their local, national and international communities.”

It is expected that significant changes will be made to the charities constitution in 2024 as a result of the ‘transformation programme’ currently being undertaken nationally by the Scout Association, which will result in further structural changes to the organisation and operation of Scouting in Gateshead District.

Organisation

The trustees who have served during the year are shown below.

In accordance with the charity's constitution referenced above, the District Chair, District Commissioner, District Youth Commissioner,

Trustees for the Year 2022

Trustees - ex-officio

Trustees – nominated, elected and coopted

A. Scott

A. Bullock A. Oliver C. McIntyre

J. Askwith

J. Thompson K. Percy K. Thompson

P. Byrne

S. Johnson C. Westgate (from April 2022)

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Trustees’ Report 2022

Youth Membership Numbers - Last Five Years

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700
600
500
400
300
200
100
0
Jan' 2019 Jan' 2020 Jan' 2021 Jan' 2022 Jan' 2023
Beavers Cubs Scouts Explorers Network
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District Secretary, District Treasurer, District Explorer Scout Commissioner and District Scout Network Commissioner were all exofficio trustees.

Additional trustees are elected, nominated or co-opted to the District Executive Committee also in accordance with the charity's constitution referenced above.

The trustees regularly met face-to-face throughout the year and also communicate electronically to discuss specific matters in relation to the charity, and also make decisions electronically between face-to-face meetings, as allowed by the charity’s constitution.

There is one sub-committee to deal with specific matters relating to Whickham Thorns Outdoor Activity Centre, which operates in accordance with the relevant rules laid down in the Scout Association’s Policy, Organisation and Rules, and Terms of Reference approved by the trustees.

Membership

Committed to the communities in the east of the Metropolitan Borough of Gateshead (east of the River Derwent), in January 2023 the Scout District had 657 members (including all adults), which is a decrease of 30 when compared to the figure in January 2022.

As a reminder, core youth numbers declined in 2020 due to the Scouting programme being taken online for much of the year due to coronavirus lockdown measures and this was reflected in the youth membership figures shown for January 2021.

This decline continues to work through our youth membership numbers, and the ability to recruit more youth members continues to be constrained by the number of adults currently volunteering in the District.

Prior to the pandemic 224 adults were supporting Scouting in Gateshead but by the end of 2022 this number was down to 150. While some of this reduction was due to removing inactive volunteers from our membership systems, the replacement of

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Trustees’ Report 2022

adult volunteers leaving us during and after the pandemic continues to be a challenge, similar to that faced across the scouting movement and general charity sector.

Recruiting more adult volunteers is key to our ability to increase youth numbers to prepandemic numbers and hopefully beyond.

The charity again acknowledges the tremendous amount of voluntary support that is provided to all aspects of Scouting in the Scout District and especially in supporting the work of the district team.

As well as the activities undertaken by the Scout District (summarised below), the trustees would remind all readers that Scouting is successful mainly based on the day-to-day work that takes place in the scout groups and explorer scout units spread across the district.

Review of Activities / How We Benefit the Public

As trustees we understand and bear in mind the Charity Commission's guidance on public benefit.

Gateshead Scouts continues to meet the Charity Commission's public benefit criteria under both the ‘advancement of education’ and the ‘advancement of citizenship or community development’ headings.

In addition to the objectives of the charity above, we also offer support to adult members of the Scout Association volunteering in the Scout District.

The focus of the charity's activities continues to be the provision of Scouting and support for local communities throughout our geographical area.

It is here that the important work of developing young people to fulfil their potential takes place and the scout district merely provides a framework for safe Scouting and provides support to allow this fantastic work to take place.

The trustees extend their sincere thanks to all our young leaders and adult volunteers who have remained in Scouting, or who have joined us during 2022.

This is provided through the provision of:

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Trustees’ Report 2022

2022 saw the Scout District continue its recovery from the impact of the coronavirus pandemic, with a significant focus on reestablishing medium scale district led events and competitions.

The September 2022 Annual General Meeting once again saw the appointment and election of a renewed Executive Committee (trustee body), with all posts being filled and an updated constitution being adopted.

Review of Financial Results

Gateshead Scouts manage their finances through the use of commercial accounting software which is used in the preparation of financial reports including the annual accounts.

This software is used on an on-going basis, with the financial performance of Whickham Thorns Outdoor Activity Centre reviewed monthly by the Whickham Thorns subcommittee. on a quarterly basis using reports generated from the accounting system.

Trustees review the financial performance of Whickham Thorns Outdoor Activity Centre and other charitable activities

The trustees would like to once again thank Andy Oliver and James Heron for their ongoing work in preparing and presenting these financial reports for review.

As can be seen from the chart below, Gateshead Scouts have continued to see an increase in both incoming resources and resources expended.

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Income and Expenditure - 2018 to 2022
£300,000
£250,000
£200,000
£150,000
£100,000
£50,000
£-
2018 2019 2020 2021 2022
Incoming Resources Resources Expended
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Trustees’ Report 2022

This continues an established trend of generating a financial surplus over the last few years largely because of the continued operation of and surplus generated by Whickham Thorns Outdoor Activity Centre.

In 2022, activities income at Whickham Thorns increased to £169,491 (2021: £93,162). This did however necessitate an increase in overall employment costs to £83,878 (2021: £47,334) and an increase in Whickham Thorns activity expenses to £26,500 (2021: £5,982)

Covid 19 and Kick Start grants were significantly reduced in 2022 when compared to the previous year.

This resulted in a reduced surplus when compared to 2021, but the operation and financial performance of Whickham Thorns again proved to be of significant benefit to the financial state of the charity and continues to drive continued investment in and development of the core objectives of the charity.

Gateshead Scout Shop continues to generate a small surplus but is principally there to provide to service to our members and those of neighbouring scout districts.

As a result of this the Scout District was once again able to provide financial support to scout groups in the District by way of not charging for the Scout District’s support services in 2022 and by covering the cost of the Scout County levy for 2022.

This support continues to be of significant benefit to the scout groups in the district and directly helps to reduce the cost of Scouting for our young people.

During 2022 the cost of the District youth programme was subsidised by more than £1,600, reducing the cost of District events and competitions to our youth members and their families.

Compared with 2021, overall fund balances increased by just under £150,000. This is mostly due to the surplus generated by Whickham Thorns and by gains on a property exchange (see below).

A significant proportion of this is cash at bank and at hand is allocated in accordance with the reserves policy (below) and is set aside for other purposes.

In 2022 the district set aside an initial sum of £10,000 to provide direct financial support to our youth members most in need (see grant and loan making policies below).

The end of 2022 also saw us dispose of the previous district headquarters (Mitchell House) and complete the acquisition of a new (to us) district headquarters building – the former Methodist Church in the Bensham area of

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Trustees’ Report 2022

Gateshead, now renamed Victoria Road Scout Centre.

This exchange of buildings between Gateshead Scouts and the Gateshead Keser Torah Primary School was legally completed subject to contract at the end of 2022, with a risk assessment having been performed by the trustees in accordance with Charity Commission guidance. This risk assessment concluded that the exchange of properties was both in the financial interests of the charity and would better serve the charitable objectives of the charity.

The new centre has an appreciably greater book value that our previous district headquarters building (Mitchell House), is more suited to supporting the Scouting activities of the 7th Gateshead Scout Group and of the Scout District and has bought a

once treasured building back into community use.

Even after considering the cost of the exchange (approximately £10,000, plus legal and professional fees not seen in previous years), the trustees were in unanimous agreement that ‘giving away’ Mitchell House in exchange for the premises at Victoria Road was in the best short and long term interests of the charity and its members in terms of asset value, location and the ability to support Scouting activities in Gateshead District.

The Gateshead Keser Torah Primary School had recently undertaken a basic refurbishment of the Victoria Road building prior to the exchange, and it was not considered that a significant amount of additional money would be needed to be spent on the building in the immediate term.

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Trustees’ Report 2022

However, a medium term requirement to replace the main roof of the Victoria Road building was identified and it was understood that additional reserves would be needed for that purpose.

By the end of 2022 Gateshead Scouts were also in negotiation with the Woodland Trust to

Although available grants will be used wherever possible, much of establish a basic campsite in the west of Gateshead Borough. It was expected that this would also require appreciable investment in 2023 and 2024.the cash at bank and cash at hand is therefore ear-marked for the ongoing development of Whickham Thorns Outdoor Activity Centre,

restricted funds the trustees intend to adopt the Statement of Recommended Practice (SORP) applicable to charities from 2023 onwards.

Based on the above, the trustees are confident that our financial management is sound and that the risks associated with increasing income and expenditure are manageable given the controls which are in place.

Grant and Loan Making Policies

During 2022 the trustees completed the establishment of an ‘Access for All’ grant making policy intended to ensure inclusive

future work at the Victoria Road Scout Centre and the prospective camp site, all of which provide direct benefit to our members and the wider community.

We remain confident that as Gateshead Scouts continue our development and growth, the Scout District has the financial means to support such change.

access to all Scouting events and activities for young people and adults of limited financial means.

£10,000 was set aside to support our most financially challenged members so that they can receive financial support towards the cost of uniform, membership and Scouting activities.

In order to better manage and account for multiple projects requiring designated or

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Trustees’ Report 2022

Reserves Policy

Gateshead Scouts continue to review our reserves policy in light of the need to be able to maintain income generating operations at Whickham Thorns Outdoor Activity Centre, to be able to fulfil statutory obligations in respect of employed staff and to continue to meet costs associated with the operation of the new district headquarters building.

The charity continues to maintain reserves equating to 12 months operational expenditure for these purposes.

Investment Policy

In balancing the interests of the current and future members it is important to consider the balance between cash at bank / cash at hand and long term investments.

Gateshead Scouts does not currently hold any long term investments. This is felt appropriate given the intention that cash at bank and cash at hand will be used in the near to medium term to support maintenance and development activities at Victoria Road Scout Centre and the acquisition of a camp site.

This position will continue to be reviewed in light of development costs, grant opportunities and rising interest rates.

Risk Management

During 2022 risks continued to be managed on an on-going basis.

Gateshead Scouts follow the rules and best practices of The Scout Association, including the:

The trustees continue to maintain an organisation specific risk register which identifies the most significant safeguarding, safety, financial, operational and reputational risks to the charity. This allows risks to be identified, prioritised and mitigated to a level which is acceptable to the trustees.

It is however accepted that the risk that led to the late publication and submission of this annual report was not foreseen and while the likelihood of this issue reoccurring is considered to be low, this will be added to the risk register and suitable mitigation strategies developed.

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Trustees’ Report 2022

2022 saw a slight decline in the percentage of female members in the District (29% of the youth membership and 39% of the adult membership), but this is considered part of the year-to-year variation and is not a long term trend.

The overall ethnicity of our membership continues to reflect the communities from which our members are drawn, and we continue to review how we engage and work with ethnic minority groups in the Scout District, to ensure that Scouting is not only open to all, but available in all communities.

Responsibilities of The Trustees

Trustee Induction, Training and Declarations of Conflict

Most of our trustees are from a Scouting background and are therefore familiar with the objectives and operation of the charity.

In accordance with the requirements of the Scout Association, all trustees are required to undertake mandatory trustee training, which is part of The Scout Association’s adult training scheme.

All trustees are required to declare any related parties, to proactively declare any potential conflicts of interest, and to declare any unforeseen conflicts of interest as they arise.

In 2022 no significant conflicts or interest arose, and any minor conflicts of interest were declared and appropriately managed.

Diversity and Inclusion

Membership is open to all members of the public in accordance with our religious, equal opportunities and development policies, subject to our safety, vetting and child protection policies.

Law applicable to charities in England and Wales requires the trustees to prepare financial statements for each financial year, which give a true and fair view of the charity’s financial activities during the year and of its financial position at the end of the year.

In preparing these financial statements (below), the trustees are required to:

The trustees are responsible for keeping proper accounting records which disclose with

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Trustees’ Report 2022

reasonable accuracy at any time the financial position of the charity and to enable them to ensure that the financial statements comply with the Charities Act 2011.

The trustees are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Approval of the Trustees Report

Approved by the trustees on 7[th] May 2024 and signed on their behalf by: -

Trustee (Andrea McGugan - DC).

[hardcopy signature appended to the master record]

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Report of the Independent Examiner 2022

Independent examiner’s report to the trustees of

Gateshead District Scout Council

2023 – The Year Ahead

2023 – The Year Ahead

Gateshead Scouts usually look forward to the year ahead so that we can be measured against our short term objectives and ambitions in our next annual report.

However, given the lateness of preparing this annual report, 2023 has already passed and the trustees do not feel that it would be a useful exercise to ‘look ahead’ to a year that has already happened.

In our Annual Report for 2023 we will report fully on which objectives and ambitions for 2023, but in summary these were largely met.

We will of course be looking forward to 2024 in our Annual Report for 2023 as usual.

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Summary Balance Sheet as at 31 December 2022

Annual Accounts

Summary Balance Sheet as at 31 December 2022

FIXED ASSETS
CURRENT ASSETS
Scout Shop Stock
Accounts Receivable
Prepayments
Cash at Bank and In Hand
CREDITORS
Amounts falling due within one year
NETCURRENT ASSETS
NET ASSETS
REPRESENTED BY:
Accumulated Fund		 2022
£
£
215,034
7,223
10,882
-
268,093
286,198
3,249
282,949
497,983
497,983		 2021
£
£
114,051
6,536
10.474
222,286
245,286
9,242
236.044
350,095
350,095

Approved by the trustees on 7[th] May and signed on their behalf by:

District Commissioner (Andrea McGuigan):

Trustee (James Heron):

[hardcopy signatures appended to the master record]

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Summary Statement of Financial Activities - Year to 31 December 2022

Summary Statement of Financial Activities Year to 31 December 2022

INCOMING RESOURCES
Scout shop sales
Cost of Sales
Opening Stock
Purchases
Less closing stock
Membership fees
Donations
WTOAC activities income
Water activities
Room hire
Youth Programme
Grants received
Grants – Covid 19
Kick Start scheme
Refreshment sales
PAYMENTS – RESOURCES EXPENDED
Wages and salaries
WTOAC activities expenses
Refreshment expenses
Telephone
Insurances
Legal and professional
Light and heat
Repairs and renewals
Sundry expenses
Membership subscriptions paid
Training fees and materials
Bank charges
Youth programme
Depreciation
NET RESOURCES FOR YEAR
Gains of revaluation of property exchange
FUND BALANCES B/F
FUND BALANCES C/F		 2022
£
£
4,379
6,536
4,479
11,015
7,223
3792
587
2,2185
4,100
169,491
-
510
4,370
13,500
6,667
17,748
3,409
241,980
83,878
26,500
1,903
1,616
5,191
8,636
6,167
18,998
3,116
24,534
189
1,822
6,002
188,552
10,185
43,243
198,737
43,830
104,058
350,095
497,983		 2021
£
£
4,565
5,325
5,493
10,818
6,536
4,282		 2021
£
£
4,565
5,325
5,493
10,818
6,536
4,282
283
18,725
5,599
93,162
1,230
2,060
-
-
59,290
23,289
2,164
205,519
47,334
5,982
1,179
1,171
6,615
-
4,097
7,671
1,292
24,881
280
1,279
-
101,781
4,661
99,077
106,442
99,360
250,735
350,095
99,360
250,735
350,095

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Gateshead Scout District Annual Report and Accounts 2022

Gateshead District Scout Council

Victoria Road Scout Centre Victoria Road Gateshead NE8 2SZ. info@gatesheadscouts.org.uk

https://gatesheadscouts.org.uk/

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