Annual report
and accounts
2021-22
Scouts

## Annual report and financial statements 2021-22 

|**Contents**||
|---|---|
|**Welcome from our Chair**|3|
|**Resurging, innovating, and bringing people together**|4|
|**Better volunteering for a stronger movement**|6|
|**Our purpose and method**|8|
|**Vision and strategic objectives**|8|
|**Skills for Life**||
|**Our plan to prepare better futures 2018-2025**|9|
|Growth|11|
|Inclusivity|13|
|Youth Shaped|16|
|Community Impact|19|
|**Three pillars  of work**|22|
|Programme|23|
|People|26|
|Perception|27|
|Theory of Change|29|
|The impact of Scouts on young people|30|
|**Our finances**|31|
|**Trustees’ responsibilities**|36|
|**Independent Auditor’s Report to the**||
|**Trustees of  The Scout Association**|37|
|**Financial Statements**|40|
|**Our members**|66|
|**How we operate**|67|
|Our advisers|73|
|Our thanks|74|



3 



## Welcome from our Chair 

## **This was the year that Scouts bounced back.** 

After the challenges of the pandemic, I’ve been inspired by our young people doing what they do best – learning skills for life face-to-face, and especially outdoors. 

I was so impressed by the way our volunteers adapted to deliver Scouts online during the pandemic. But nothing truly beats meeting in person. It’s how friendships are forged, and memories are made. There’s no wood smoke to smell, or birdsong to hear, on a Zoom call. 

Our rapid growth this year is a testament to how quickly and safely our volunteer teams reopened their doors and welcomed young people again. We’re now back to 87% of our 2019 numbers, with nearly 60,000 young people joining in the past year. 

But there’s much more to do as we look forward to next year. We still have 90,000 young people on waiting lists, meaning many young people are still missing out on the opportunities we offer. 

## **Attracting new volunteers and youth members** 

With so many young people on waiting lists, we must focus relentlessly on attracting new volunteers, while supporting our current team. Growth can only be achieved with the right volunteer teams in place. Our #GoodForYou campaign highlights employability and wellbeing benefits of volunteering, and we’ll keep supporting recruitment locally and nationally into next year. 

We’ve continued our commitment to make our movement more inclusive, and bring Scouts to underrepresented communities. The launch of Squirrels for 4-6-year-olds was such a brilliant example of this, as we prioritised opening in the areas and communities most deeply affected by the pandemic. 

## **Young people taking the lead** 

It was fantastic to see so many Scouts taking leading roles in high profile events. A shining example of this was at the UN Climate Change Conference UK (COP26) in Glasgow in November 2021. An international team of Scouts led the youth day with Chief Scout, Bear Grylls. Together, they represented young people from 55 different countries who’d committed 100 million hours of action to stop climate change as part of our #PromiseToThePlanet initiative. 

Equally impressive was Cub Scout, Emily, who I watched with awe as she took part in a conversation with a 98year-old WWII veteran, Colonel David Blum, to mark Remembrance 2021 and the centenary of the Royal British Legion, with such self-possession. Hosted by our Joint President, HRH The Duchess of Cambridge, it was such a moving moment, and a chance to reflect on the sacrifices made by so many. 

One thing that I noticed immediately when I joined as Chair is that Scouts is a family. We look after each other – and welcome new members (myself included) so well. I’d like to thank the Board, the staff team, the volunteer team and the whole movement for supporting me so wonderfully in my first year. 

Scouts plays a vital role in giving young people skills for life, and the chance to shine. It brings communities closer, and make society stronger, too. We’ve so much to be proud of. 

There are exciting times ahead, and I know Scouts will make the very best of them. 


**Jennie Price CBE** Chair 

I have a strong personal commitment to our work on race equity. I think we’ve made a good start this year with our new Project Board, chaired by Yousif Eltom, leading the way to make Scouts welcoming to everyone. 

3 



## Resurging, innovating, and bringing people together 

This year will be one to remember (and this time, for all the right reasons). 

Not only did we see our biggest single year of youth membership growth since WWII, we launched Squirrels, our first new age range in 35 years. These are two fantastic signs Scouts is resurging after the setbacks of the pandemic. 

And how did we achieve all this? Through the incredible efforts of a volunteer and staff team committed to a single shared goal: to help more young people gain skills for life. That’s our ‘north star,’ and we succeed when we never lose sight of it. 

The pandemic hit us hard, with a 23% drop in our youth membership. The fact we’ve managed to grow by 16% in a single year tells you how much Scouts was missed and how much it’s needed, especially in areas that’ve been left behind. 

## **A great leap forward** 

The brightest news was the historic launch of Squirrels for 4-6-year-olds in September 2021. This was the culmination of two years piloting of early years Scouting, building on pioneering work in Northern Ireland. Already we have 8,000 Squirrels across 620 Dreys, doubling our targets. 

Even more importantly, we prioritised opening these Dreys in areas of deprivation, supporting young people and families hardest hit by the pandemic. Some of our youngest members have spent almost half their lives in lockdown. 

We know the opportunities to play, learn, make friends in the outdoors gives them a huge start in life. Our mantra remains: ‘Change the start of the story and you change the whole story.’ 

28% of our Squirrel Dreys have opened in lower-income areas. 34% are in Scout groups that already have 10% or more young people from Black, Asian and minority ethnic communities. This is just part of our commitment to being a more inclusive movement. 

## **Bringing people together** 

We offer young people skills, friendship and a powerful sense of belonging. And the way we bring people together contributes even more to closer communities and a stronger society. 

We’re proud to be a leading member of the Together Coalition, which promotes stronger connections across our communities. As part of this, we championed the national #ThankYouDay, celebrating the people (especially our volunteers) who make our communities better places to live. 

We can only achieve our aims with the right funding in place, in the communities that need it. This year, we were proud to help Scout Groups access £1.76million from the DCMS Youth Investment Fund to create, expand and improve facilities and services. Supporting our members with their applications helped 72% of those who applied secure much-needed funds. 

We offered a Recovery Fund for the second year in a row to help keep sections running, with a special focus on groups and units set up since the 2020 Census. Part of these funds came from the movement’s phenomenal fundraising efforts in 2020, and part from a generous donation from the Pears Foundation. In total, we were able to award just under £641,500 to local Scouts, supporting more than 7,500 young people. 

The task ahead is to return to prepandemic membership levels, and welcome in the 90,000 young people on our waiting lists. The key to this, as ever, is to attract more adult volunteers. These efforts have already begun with our #GoodForYou campaign, but even more important is improving our volunteering experience. Making volunteering easier and more enjoyable for everyone, and giving a warmer welcome, will have a transformative impact. 

## **Digital first, with people at the heart of what we do** 

The pandemic accelerated everyone’s use of digital ways of working, and we’re reaping the benefits of that now. We’re putting volunteers and young people at the heart of our digital services, making sure they’re enjoyable, engaging, and efficient. To cite just one example, volunteers download 40,000 activities from our planning tool each week, 

4 



supporting even more young people achieve their top awards. 

As Scouts, we’re as proud as ever to help other people. Through our ‘A Million Hands’ project, thousands of young people this year made an impact on the issues that matter most to them. Our young people chose the issues they’d like to focus on, from protecting our planet, through to tackling homelessness and improving mental health. We’re making a national difference to lives across the country. 

I’d like to thank our volunteer and staff teams for all their outstanding work. You do brilliant things every day, inspiring better futures, leaving such a bright legacy for generations to come. 

Let’s keep up that momentum and make next year even better. 


**Matt Hyde OBE** Chief Executive. 

5 



## Better volunteering for a stronger movement 

Our movement is powered by the kindness and commitment of our volunteers. The last year has shown that to be truer now than ever. In my first year as UK Chief Commissioner, after a lifetime in Scouts, it’s been a privilege to listen to, champion and support the team in our work helping more young people gain skills for life. 

As our youth membership resurges, we’ve seen yet more outstanding generosity from our volunteers. Not only have we welcomed back young people face-to-face after lockdowns, we’ve launched Squirrels, welcoming 4-6-year-olds for the first time. 

This would be an astonishing achievement in any year, but especially meaningful in a pandemic, when young people have needed us most. These new Squirrels are the future of a bigger, brighter and even more diverse movement, and society’s future young leaders in the making. 

## **Why safety always comes first** 

As we move towards adventurous, inperson activities again, it’s vital that training is up to date. Safety will always remain our priority, ensuring our Young People First code of conduct is always followed, and that risk assessments are always carried out. 

To represent our commitment to safety, we’ve expanded our HQ Safety team by adding new roles. We’ve supported Groups on their journey back to meeting face-to-face, helping them through each readiness level, right up to the present day. While the UK was living under restrictions, we made sure volunteers could finish their first aid training, by introducing new methods for completing modules. 

Safety and safeguarding training compliance has also been a point of focus. We’ve provided line managers with new guidance and tools to manage volunteers with overdue training locally. To highlight the importance of risk assessments, we’ve created new resources, templates, and support for volunteers. 

Our national safeguarding team have been busy, too. They’ve engaged with volunteers and other Scouts colleagues to progress key projects. These include Squirrels and wider Early Years 

projects, implementing and launching online Disclosure Scotland checks and advising on casework, delivering training for Commissioners and pilot Group Scout Leaders’ training, and the development of the Safe Scouting Learning Review Group. There’s also been proactive actions taken around disclosure compliance, and updating Compass records. 

## **International friendship** 

As vaccinations have enabled travel and large gatherings to happen more safely, it has been exciting to see international Scouting revive too. International volunteers from countries like Venezuela, Mauritius and Denmark are supporting at Scout Adventures. And we’re now seeing hundreds of youth members preparing and fundraising to represent the UK at World Scout Jamboree in South Korea in 2023. 

We never forget that we’re part of a worldwide family of 55 million Scouts. Our global movement encourages peace, tolerance and respect for all. We continue to stand in solidarity with those affected by the war in Ukraine, as well all those suffering through conflict or natural disaster in other parts of the world. We’re proud of the compassionate way our Scouts have responded, fundraising, packing emergency medical kits, delivering aid, and supporting refugees by extending the hand of friendship. 

## **Improving the way we volunteer** 

When what they give makes such a difference to young lives, we owe it to our volunteers to make the experience as easy, fun and rewarding as possible. We’ve identified three areas to focus on: a warmer welcome for all, more engaging learning and making volunteering more enjoyable every day. 

We’re improving digital systems that support volunteers, transforming how people join and train to become volunteers in Scouts to make it smoother and more flexible. This is about giving us the space to do what we as volunteers do best and enjoy most. This will continue to be a priority through the years ahead, with 2023 marking the first big step in the journey. 

6 



We’ve also looked closely at how we can make our organisation more welcoming and inclusive. This year, we launched a wide reaching Race Equity Review, engaging with over a 1,000 volunteers to create a powerful new vision for how Scouts will support race equity. 

It’s not enough simply to say we welcome everyone. We need to question the way we do things, listen to different voices, and have the courage to make changes where they’re needed. This is the only way we’ll bring about race equity in Scouts. None of this is easy, but we need to act with humility, and support each other on a positive journey of change. We’re doing this as a movement – to move with the times, and create a better experience for everyone. 

By making these changes, we’ll not only motivate our current volunteers, but we’ll help attract new ones, too. 

## **Looking ahead** 

As young people return to Scouts, and waiting lists grow, it’s vital we continue to welcome new volunteers. 3,000 adult volunteers join us since April 2021, following our national #GoodforYou campaign. Based on feedback that first time volunteers are more willing to come with someone they know, our #GoodForTwo offers activities that work well for volunteers introducing a friend, starting them on their own volunteering journey. 

However, we never forget that the most powerful recruitment happens locally. We need to have the right conversations, make new connections, and especially reach out to communities underrepresented in Scouts. Let’s continue to share our own stories of how Scouts has helped us shine bright, given us new friends, and made us who we are today. 

If we can share that spark, we can inspire a new generation of young people – and volunteers – with skills for life. 


## **Carl Hankinson** 

UK Chief Commissioner 

7 



## Our purpose and method 

Vision and strategic objectives 

Scouts actively engages and supports young people in their personal development, empowering them to make a positive contribution to society. 

In partnership with adults, young people take part in fun indoor and outdoor activities. They learn by doing, by sharing in spiritual reflection and by taking responsibility. They make choices, undertake new and challenging activities, and they live their Scout Promise. 

Scouts’ Trustees have a duty to report on our public benefit in this Annual Report. We’ve assessed our aims, activities and charitable objectives, which are to contribute to the development of young people in achieving their full potential as individuals, as responsible citizens, and as members of their local, national and international communities. We believe that we’ve met the Charity Commission’s public benefit criteria for both the advancement of education, and the advancement of citizenship and community development. Scouts follows two key principles set by the Commission with regard to public benefit: 

## **Our vision for the future** 

By 2025, we'll have prepared more young people with skills for life, supported by amazing leaders who are delivering an inspiring programme. 

## **1. Identifiable benefit** 

The way we help young people in their personal development and empower them to make a positive contribution to society. This benefit is directly linked to the purpose of Scouts. 

## **2. Public benefit** 

Scouts is a national movement, open to young people aged 4–25 and adults who are willing to make the Scout Promise. People in areas of deprivation are able to benefit from our programme, and accessing our benefits isn’t constrained by a member’s ability to pay their subscription. Locally, there are arrangements to waive subscriptions and other costs for those who face financial hardship. Nationally, there are funds available for uniform and the cost of activities so that young people aren’t excluded from Scouts on purely financial grounds. 

The benefits of Scouts are further demonstrated throughout this report. 

We'll be growing, more inclusive, shaped by young people, and making a bigger impact in our communities. 

We’re progressing our Skills for Life strategy that we began in 2018. Due to COVID-19, we’ve extended our strategy from 2023 to 2025, and we’ve reset our Key Performance Indicators. 

## **View our strategy at** 

scouts.org.uk/ourplan 

8 



## Skills for Life Our plan to prepare better futures 2018-2025 

9 



'Louis became a Beaver as soon as he was
old enough, and he's thrived from the start.
It's a place where he feels comfortable, and
has the same opportunities as his peers.
He gains important time away from us
where he can be independent, and still
feel safe and secure. We've been amazed
at his confidence and the way he joins in
with everything.,
Sarah, Louis, Mum, Beaver Scout
1st Byers Green

## Growth 

We grow when we offer a great programme for young people, create new spaces for young people to join, and recruit new volunteers to support them. 

We’ve bounced back from losing around 1 in 4 youth members during the pandemic, and the last 12 months represent our fastest growth since World War II. 

## **Our growth goals by 2025:** 

   - we’ll have 547,000 young people aged 4–18 in Scouts 

- 

- we’ll have 88,000 front line volunteers (Section Leaders,including Assistant Section Leaders and Section Assistants) 

- we’ll have 19,500 Young Leaders 

## **Progress on growth** 

This year, youth membership is up 16% to 412,986. This means 59,769 more young people are now gaining Skills for Life, who weren't last year. While growth has been strong in all sections up to aged 18, we’ve seen the strongest growth in Beavers, our section for 6- to 8-year-olds. 

Our waiting lists have grown to over 90,000 young people who’re hoping to join us. To create more spaces for these young people to join our movement, we need even more adult volunteers to support us to open new sections. Our current waiting list number is the equivalent of over 5,000 sections. 

We opened 389 new sections this year, but while we recover from the pandemic, we had to close 620. 

We’ve seen an increase of nearly 4,000 front line volunteers, Section Leaders, Assistant Leaders, and Section Assistant roles. Since there’s been a reduction in manager, governance and supporter roles, our overall volunteer numbers are down 2%. We think this is due to the changes we’ve made in recording numbers, as well as our continued efforts to ensure data accuracy and compliance. 

To help us grow, we’re rolling out a suite of resources. They aim to help with recruitment and retention of new volunteers and young people, and support with the opening of new sections. We’ll also continue to identify funding for supporting local growth over the coming year. 

## **What’s next** 

Thanks to volunteers’ efforts across the country, supported by our staff teams, we believe we’ll return to pre-pandemic membership numbers during 2024. To achieve this, we’ll need a concerted effort and resources. We think it’s vital for meeting our longer-term growth ambitions, and for delivering our other strategic priorities, such as our new section, Squirrels. 

Our main strategic challenge is having enough volunteers to support as many young people as possible. There’s a key interdependency between our ability to improve the experience our volunteers have with us, and our growth ambitions. These changes are to make volunteering easier and more fun, meaning we can better attract new volunteers, and keep our current ones onboard. 

11 



'He's absolutely loving it and I'm really
impressed. The leaders are really supportive
and welcoming, and it's been really good for
Toby. His confidence has grown so quickly.
I can't praise Squirrels enough. He's learning
new skills and is so proud to be a Scout and
wear his uniform.,
Jenna, Toby's Mum, Squirrel
2nd Howden Squirrel group

## Inclusivity 

Beginning with the first Scouts camp on Brownsea Island in 1907, our movement’s brought together young people from different backgrounds to share fun and adventurous experiences. 

Over the years, we’ve made great changes to become more inclusive. We’ve welcomed girls to each section, and made sure our LGBTQ+ young people and volunteers can be themselves, and are celebrated for who they are. 

We know there’s still more to do. We won’t stop until every young person in the UK sees a place for themselves in Scouts, and has the opportunity to join and thrive in our movement. 

## **Our Inclusivity goals By 2025:** 

- We’ll have opened 500 more sections in areas of deprivation, reaching young people who could benefit the most 

- The number of Black, Asian and Minority Ethnic adult volunteers will reflect wider society with a minimum taget of 5% 

from the first phase of the Government’s Youth Investment Fund, and hundreds of thousands from Amazon. 

All of this has meant that we’ve created an additional net 222 sections in the bottom 30% of the Index of Multiple Deprivation since 2018, with 278 left to achieve our target of 500 by 2025. 

## **Squirrels** 

In September 2021, we launched Squirrels, our new section for 4- and 5- year-olds. At this age, non-formal education can make a real difference, so we’re committed to providing Squirrels for young people who wouldn’t usually access Scouts. 

Progress has been fantastic so far. In the first six months, our amazing volunteers opened 140 Squirrel Dreys in areas of deprivation, and this number is still climbing. 

We’ve started Squirrel Dreys in some of our most ethnically diverse Scout groups, with 34% of them having 10% or more young people from Black, Asian and minority backgrounds. 

## **Race Equity** 


## **Progress on inclusivity** 

## **Creating and Protecting Scouting in lower income neighbourhoods** 

Our Regional Services Team has worked hard, alongside volunteers, to protect local Scouting impacted by the pandemic. They’ve created new provision, where possible, all in lower income neighbourhoods. Thanks to the Pears Foundation, Department for Culture, Media and Sport and individual donors, we raised and distributed £641,000 to local Scout Groups through our Recovery Fund. We also supported Groups to access £1.76m 


We’re aware that people from Black, Asian and minority ethnic backgrounds are underrepresented in Scouts, so we’ve been working hard to understand what’s causing this, and what needs to change. 

In 2020, we commissioned an external review into race equity at Scouts. The review looked at the experiences of staff and volunteers from Black, Asian and minority ethnic backgrounds. It was completed in 2021, and the review has provided us with a detailed set of learnings to work from. 

To keep the momentum up, and make sure we deliver on our promises, we’ve set up a Race Equity project. To oversee its work, we’ve created a project board, sponsored by Yousif Eltom, our volunteer UK Race Equity Advisor. 

We asked the movement about our vision for the project, and what our priorities should be, and we had a fantastic 1,300 responses. We’re now using these responses to set our strategy for embedding race equity across our movement. 

13 



## **Celebrating difference within Scouts** 

In October 2021, we marked Black History Month. We shared information for everybody to learn about Black history, and provided wider opportunities to learn and talk about race. As part of this, we shared stories of Black Explorers in history on social media. We also provided links on our websites for leaders, so they could run activities with their sections and celebrate Black History Month. 

Some of our amazing young people hosted two exciting webinars with inspiring role models. 

Emma Aggrey, an Explorer Scout, spoke to Rhiane Fatinikun (founder of Black Girl Hike), Hayley Bennett (co-founder of Community Nutmegs supporting women and non-binary people of colour), and Saray Khumalo (mountaineer and Scout Ambassador). They talked about the importance of seeing Black women in the outdoors, and the role organisations like ours play in getting young people outdoors to have new experiences. 

## **What’s next** 

Our Race Equity project will continue at full throttle. We’ll soon be publishing our plans for the project, along with regular progress updates. 

We’ll bring together all the fantastic inclusivity work that’s happening across the movement, under the umbrella of a new Equity, Diversity and Inclusion Programme of Work. This’ll make sure we’re thinking strategically, and maximising our opportunities to make Scouts even more inclusive. 

Finally, we’ll carry on working towards attracting more young Muslims into Scouts and overhauling our volunteer journey. This includes developing bespoke learning for all our amazing volunteers, so everyone knows how they can contribute and help make Scouts as inclusive as possible. 

Anes Ali, a Young Leader, had great Zoom chemistry with Dwayne Fields, explorer and Scouts Ambassador. They talked about the impact Scouts has on their lives. Dwayne described Scouts as ‘a safety net where young people can try things, be themselves, be confident, be daring, and become the person they should be.’ 

## **More inclusive recruitment** 

Thanks to the Pears Foundation and Aziz Foundation, we’ve continued developing our strategy to attract more young Muslims to Scouts. We’re learning from, and building on, the incredible success of the Muslim Scout Fellowship. 

We’re also thanking the Pears Foundation for our volunteer-focused partnership with Girlguiding. This partnership is for creating a digital platform to welcome potential volunteers from diverse backgrounds. We hope this platform will make our volunteer recruitment and learning more inclusive. 

14 



'Josh needs very little adjustment.
He needs a little bit of support, mentoring
and coaching with some of the finer skills,
but other than that, he's able to just get
on with it. The support's available, but it's
very rarely called upon. There are very few
problems that Josh and his patrol can't
overcome between them. He's amazingly
confident, and his ability to talk and make
new friends has blossomed in the time he's
been with us..
Piers Hallihan, Scout Leader
1st Cowbridge Scouts

## Youth Shaped 

Youth Commissioners across the country designed a new Scouts badge for the YouShape Award. The award is designed to help young people to Plan, Represent and Lead Scouting, and lets them decide what they want to change or shape in their Scouts experience. The award then encourages young people to make their changes happen, through requirements related to Planning, Representing and Leading. Young people decide themselves when they’ve met the requirements of the Award. To date, Scout Stores have sold 80,000 YouShape Awards. 

Every young person should shape their Scouts experience, and develop the skills they need to be great leaders. Creating opportunities for young people to use their voices is an important part of this. If young people shape Scouts, they’ll improve our movement, and become more likely to achieve their top awards. 

## **Our Youth Shaped goals** 

## **By 2025:** 

- 66% of young people aged 6- 18 will be influencing what happens locally in Scouting 

As well as shaping the programme, another Youth Shaped objective is to increase the number of young people in leadership positions. We now have 580 inspiring local Youth Commissioners, growing from 400 in 2018. 

- 57% of young people will be using their skills to run Scouting activities for other young people 

- 40% of young people aged 4- 14 will be achieving the top awards and 10% of those 14+ will be achieving top awards 

Our focus is still on supporting young people to take up leadership positions and achieve their top awards. As part of our focus on this, we now have youth representation on every national programme of work. 

## **Progress on Youth Shaped** 

In 2020/21, we asked young people and section leaders how much they thought young people were shaping their Scouts experience. 

We’ve got an active Community of Practice group that brings young people together to coordinate and inspire change. 

The results were a mixed bag, which isn’t a surprise, considering the impact COVID-19 had on Scouts. 

We’ve added new resources to support adult volunteers in delivering our youth shaped goals. This includes resources for young people turning 18, new programme resources, case studies to support the YouShape Award, and updates to existing resources on our new website. 

73% of young people thought they came together at least once a term to decide what activities to take part in. This has stayed roughly the same since 2018. However, 87% of section leaders thought the same, which is up from 60% in 2018. 

The National Role Pool is a group of young adults from across the UK who’d like to get involved in Scouts nationally, and it now has 40 members. They’re taking on various roles, from youth trustees on the UK Board, to members of subcommittees and project boards. 

Only 54% of young people thought they used their skills to help run activities for other young people. This is down from 95% in 2018. 49% of section leaders thought the same thing, which is the same percentage as 2018. 

Only 38% of young people thought their opinions influenced local decisions in Scouts, which is down from 50% in 2018. 40% of section leaders thought the same thing, decreasing from 53% in 2018. 


16 



## **What’s next** 

Youth Commissioners will work with our Early Years team to understand the effectiveness of Youth Shaped Scouting in our new Squirrels section, and how we can support Dreys to go even further. 

Local Youth Commissioners will focus on embedding the YouShape Award in programmes across the UK. This’ll work towards our goal for 250,000 young people to be shaping Scouts by 2025. 

We want the recovery of our membership numbers to include a boost in Young Leaders. This has fallen behind the growth of other sections. 

This year, we’ve appointed our third UK Youth Commissioner since we created the role in 2014. Ayesha Karim takes over from Ollie Wood in September2022. We’d like to thank Ollie for his dedication and hard work since he took the role in 2018. He’s achieved brilliant things, and we know Ayesha will do the same. 

Influencing at the highest levels of the movement, Ayesha will work towards our goal to have 50% of all young people shaping their Scouts experience by 2025. She’ll also shape the future of Youth Shaped Scouting in our next strategic plan. 

17 



'1 had a barbecue with Levi Roots and
with a Prime Minister at 10 Downing Street.
It's been quite a year, and not one I'll forget
in a hurry. I'm so proud to be a Scout and I'd
like to say a very big thank you to my leaders
and my family. My message to all Scouts is
keep smiling and keep helping others and
maybe you'll find yourself in 10 Downing
Street one day.,
Sarijane, Scout
23rd Camberwell Scouts

## Community Impact 

‘Helping to leave the world a little better than we found it’ has been in our DNA since 1907. Through social action, Scouts make a difference – not just to young people taking part, but to the entire community they’re helping. A vital part of any great Scout programme is the running of high-quality community impact projects, and these projects take planning and time. 

‘A Million Hands’ is our campaign to mobilise members, in support of a selection of themes chosen by our young people. The campaign provides ‘off the shelf’ resources for leaders, Young Leaders (aged 14-17) and young people themselves, making the delivery of the Community Impact Staged Activity Badges easier. Taking part in community impact projects is essential for young people hoping to achieve our top awards. 

The themes and partners for 2019–2025, as selected by young people, are: 

   - Better mental health for all, with Mind, Inspire and SAMH 

- 

- Supporting refugees and displaced children, with Save the Children 

- Understanding disability, with the National Autistic Society 

- Protecting our environment, with Ending homelessness, with Crisis and The Simon Community NI 

- Kindness in every community, with the British Red Cross 

As well as ‘A Million Hands’, we’ve responded to time limited opportunities, to empower young people to act on issues that matter to them. 

## **Our Community Impact goals** 

## **By 2025:** 

- At least 42% of young people will be making a positive impact in their community each year 

- 40% of young people aged 4-14, and 10% of those aged 14+, will be achieving the top awards. 

## **Progress on Community Impact** 

Despite COVID-19 restrictions stopping Scouts meeting face-to-face for part of the year, our young people still stood up and took practical action to help others. 30% of Scouts took part in a community impact activity at least once a term. 

- Our ‘A Million Hands’ partners reacted with speed, precision and passion to develop the ‘Twenty Minutes to Change the World’ video series. This online series of videos helped engage our members on big societal issues, even when they couldn’t meet face-to-face. 

- This video content is supported by 135 community impact activities on our Activity Finder. Over 60,000 people viewed this project, and over 1,563 became inspired to take action. 

- Community Impact Staged Activity badge sales have increased by 42%, rising from 14,628 in 2020 to 20,785 in 2021. It’s still a considerable way off the 41,917 badges sold in 2019, but it illustrates a positive trend of recovery and a great deal of promise for 2022. 

- Over the last year, our young people delivered over 12,010 acts of kindness in care homes. 

– We had over 10,000,000 impressions on social media for our ‘3 for Three’ mental health awareness campaign, encouraging 4,575 young people to become Wellbeing Champions. 

– We united with the World Organisation of the Scout Movement (WOSM) and our global membership to take part in ‘Promise to the Planet.’ This campaign encourages young people to help combat climate change. Our young people, staff and volunteers joined together with their counterparts from over 25 countries, and with expert partners in WWF, the Cabinet Office and the United Nations. They developed an 

19 



international environmental social action campaign, helping our members to take practical action, and use their voices to protect our shared home. From planet-friendly diets and changing transport habits, to afforestation and eliminating single-use plastic, our young people showed the world they’re playing their part, and that world leaders must play theirs, too. 

– As part of Promise to the Planet, young people went to the COP26 climate change conference in Glasgow with our Chief Scout, Bear Grylls. This was a historical moment in time, as countries agreed on many initiatives for reducing the impact of climate change. Scouts spoke at over 10 high profile events, in front of negotiators, politicians, sector leaders and change-makers. COP-26 helped profile Scouts as a serious player in the space of environmental action and sustainability. 

- Promise to the Planet resulted **What’s next** in over 100 million hours of action taken worldwide, There were 337 million opportunities to view the campaign in the media, and culminated in a visit from TRH The Duke and Duchess of Cambridge to a local Scout group. 

In 2022 and beyond, we’ll be supercharging our A Million Hands project, by working with our partners to offer physical, virtual and hybrid opportunities for young people. We’ll be communicating more often, in new and exciting ways. We’ll be following on from our Promise to the Planet campaign with an organisation environment and sustainability policy. We’ll provide additional opportunities for young people to take practical, hands-on action, and how use their voice to create change. 

- On top of this, we’ve embedded social action into our Squirrel section. This focuses on how Young Leaders (aged 14 to 17) can develop skills, and take the lead on designing and running social action projects with 4 and 5-year-olds. We’ll make sure we support more young people, especially those from deprived backgrounds, to develop skills for life through regularly helping their communities. 

This’ll mean, at a minimum, 40% of our members will take part in high-quality community impact activity at least once a term during 2022. 

The 10 young people who lead our work in this area (the Community Impact Group), supported by our UK Assistant Commissioner for Programme (Community Impact), continue to play a pivotal role. They’re making sure Scouts are a beacon of hope in dark times, and we’d once again like to thank them for their leadership, passion, and determination in another challenging year. 


20 



'By growing our own food, it couldn't
be greener because there is no transport,
pollution or packaging needed. I feel close
to nature by doing it, and it's really exciting
harvesting what we've grown. What we're
unable to produce ourselves, we get from
local organic farmers.,
Thomas, Cub Scout and environmentalist
1st Sid Vale Cub Scout Group

## Three pillars of work 

To reach our goals, more support is needed. Our three pillars of work – programme, people, and perception – are a plan of action to support members and extend our reach, so we impact the lives of more young people across the UK. 

22 



## Programme 

**Our aim:** A fun, high-quality – We provided a range of programme, consistently delivered and activities for Remembrance supported by simple digital tools. Day, in partnership with the Royal British Legion. 

## **Progress a year on** 

Our Activity Finder continues to go from 

– As a member of the Generation 




Green consortium, funded by the Department for Environment, Food and Rural Affairs, we launched a suite of activities and day/residential experiences. These inspire over 57,000 young people to become ‘Green Champions,’ by connecting with nature and taking action to preserve it. 

strength to strength. There’re now 1,500 activities to find, and 200 were added over the last 12 months. Around 50,000 volunteers use the Activity Finder every month, and give it a Net Promoter Score. A Net Promoter Score measures volunteers’ satisfaction with the Activity Finder, by asking if they’d recommend it to another volunteer. At the moment, the resources scores 34 out of a possible –100 to +100, which is considered ‘favourable’. 

- At the outbreak of the Ukranian crisis, we shared guidance and resources about talking to young people about international crises. 

The movement has also delivered some fantastic campaigns, kindly supported by partnerships: 

- Our new Money Skills activity badge, supported by HSBC, has been awarded to over 56,000 Beavers and Cubs. Media coverage of the badge has reached 29 million people. 

- We’ve supported a strong recovery for Duke of Edinburgh Award participation – there’s been a 170% increase in award completions. 

We still have a long way to go to make programme delivery as easy as possible for adult volunteers. The Scout Experience Survey found that: 

   - For the Paddle the Amazon event, supported by Jaffa and British Canoeing, 4,200 Scouts collectively paddled 7,400 miles. 

- 

      - While 47% of Section Leaders use HQ programme resources occasionally, only 20% use them ‘regularly’ or ‘always.’ This is up from 44% and 17% respectively in 2018. 

   - Hundreds of Explorers have completed their Leadership activity badge with the support of the British Army. 200 Explorers visited the Royal Military Academy Sandhurst, and hundreds more attended webinars and accessed tailored videos. 

- 

- We’re slowly improving, but Section Leaders only give HQ programme resources a Net Promoter Score of –33 out of a possible –100 to +100. This 

23 



We’ll: 

– 

rates whether they’d recommend the resources to other volunteers, and has increased from –44 in 2018. To improve these results, we plan to invest more in the usercentered approach that has slowly increased our popularity since 2018. 

## **What’s next** 

With our new UK Commissioner for Programme, we’ve prioritised: 

- Improving the support we give to Section Leader teams and line managers who help deliver programmes. 

- Embedding our Squirrels and Community Impact projects into regular programme delivery. 

- Increasing the number of young people taking part in nights away from home, and the Duke of Edinburgh Award. 

We hope this’ll increase the number of young people achieving our Top Awards – the Chief Scout and Queen’s Scout Awards. 

In the 20th anniversary of Explorer Scouts (14-18 year olds) and Scout Network (18-24 year olds), we’ll also start reviewing our programme for 14 to 24-year-olds. We’ll consider what the next 20 years will look like for older sections, and make sure our programme is impactful, relevant, and fun. 

We’ll continue to partner with charities and businesses to create brilliant programme materials, alongside young people, volunteers and external experts. 


## **Early Years** 

After a long piloting period, we’ve started a new provision for 4–6 year olds called Squirrels. We started Squirrels to help young people gain skills for life even earlier, at a time when it matters most, and where it’s most needed. 

Develop our Activity Finder and Programme Planning Tool, allowing volunteers and young leaders to rate content, access “off the shelf” programmes, and promote activities they (and our partners) love. 

Young people’s early years are amazing. Minds are fizzing, and energy and curiosity levels are sky high. It’s the time to fill our youngest members with ‘wow’ and wonder, engage them in nature, help them climb the tree of knowledge and fun – and who knows how far they’ll reach? 

– Support over 200 volunteers from HSBC to deliver the Money Skills badge in Beaver Colonies and Cub Packs. 

– Review how we talk and act on disability within our programme, making sure it’s in line with wider society. 

With Squirrels, we’re reaching young people who’d benefit the most from Scouts. Research suggests that, the earlier a young person accesses nonformal education, the more positive the impact on their prospects. Through our newest section, we believe we’ll reach into new communities, and provide Scouts for a more diverse range of people. 

- Train adult volunteers to deliver the Digital Maker staged activity badge, thanks to help from Raspberry Pi Foundation. There’ll also be opportunities for Scouts to enter national competitions. 

– Deliver a range of sciencebased activities by working with Global Action Plan. This’ll help young people better understand and act on air pollution. 

We’re hoping that, by 2023: 

   - 940 Squirrel Dreys will open, supporting over 12,000 young people. 

- Provide local Scout Groups with 20,000 free Warhammer kits to support the Model Maker badge. They’ll also go towards a new skills programme for Explorer Scouts to achieve their Creative Arts activity badge, Chief Scouts Award, and Duke of Edinburgh Award. 

- 30% of Squirrel Dreys will be in low-income areas (bottom 30% of the Index Multiple Deprivation - IMD 1-3). 

- More than 10% of Squirrels will be from Black, Asian and Minority ethnic communities. 


24 



## **Progress on Early Years** 

Following 18 months of piloting, the Centre for Research into Early Childhood said, ‘Participation in the Early Years Scout Programme, even over a short period of time, has had a positive and sometimes transformative impact on children’s development.’ We also consulted with over 1,400 young people, adult volunteers and parents/carers, to get their insights on our Early Years programme so far. 

After receiving positive feedback, our Trustee Board agreed to create an Early Years provision in Scouts. So far, we’ve: 

- Launched Squirrel Scouts in September 2021. 

- Secured incredible external coverage, with 830 pieces of media reaching 226 million people. We also received letters of congratulations, including one from our Patron, HM The Queen, and praise from the Prime Minister. 

- Boosted volunteer recruitment, since 45% of Squirrels volunteers are new to Scouts. 

- Externally tested the appeal of our Squirrels brand with people from low-incomeearning communities, and Black, Asian and ethnic minority backgrounds. Our brand won Gold for Best Creative Strategy, and Bronze for Best Visual Identity by a Charity in the Transform Awards Europe 2022. 

   - We’ve created an engaging programme and badge scheme, which secured outstanding feedback from our volunteers. 90% feel the curriculum is achievable, age appropriate, relevant, and exciting. This makes session planning easy for developing a range of skills and positive outcomes. 

- 

- Recruited and trained 60 volunteer cohort coaches, who support 10 new Squirrel Dreys. They’re helping the Dreys deliver a high quality and safe programme, and capture insights and ideas for improvements. 

   - Created an extensive range of online tools, including guidance, workshops, peer-topeer guidance, and webinars, to support the creation of our new provision. 2,000 adult volunteers have come along to these so far. 

- 

   - Provided £100,000 of local start-up grants for new provision, reaching priority communities. 

- 

   - Completed a successful merger of Northern Ireland Squirrels Association (NISA) with The Scouts. After 25 years of delivering a trailblazing, non-formal early years programme, we welcomed 80 Northern Irish Squirrel Dreys into our family of Scouts. 

- 

There’s significant demand for Squirrels, with over 23,000 young people already on local waiting lists. By recruiting more volunteers into Scouts, we can open more Dreys, and start bringing down our waiting lists. 

At the moment: 

- There are 560 Squirrel Dreys open. 

- 28% of Squirrel Dreys are in lower income areas (IMD 1-3). 

- 34% of Squirrel Dreys have 10% or more young people from Black, Asian and Minority ethnic communities. 

## **What’s next** 

- By learning as we go, we’ll open another 500 sections in 2022/23. 

- We’ll keep creating new resources to support the opening of Squirrels locally. We’ll still focus on extending Squirrels to our priority communities. 

- We’ll carry out robust testing and evaluation of alternative models of early years delivery. By doing so, we can find out how effective they are in increasing the number of low income, Black, Asian and Minority ethnic families taking part in Squirrels. 

- We’ll review the Squirrels Programme – embedding community impact, and deciding if we should include ‘Nights Away’ activities. 

- By 2033, we hope to welcome another 130,000 4–6 yearolds, supported by 40,000 adult volunteers. 

25 



## People 

**Our aim:** To have well trained, better supported, and motivated adult volunteers, as well as more young people from diverse backgrounds. 

## **Progress a year on** 

If we’re delivering great programmes and helping more young people get skills for life, we need to attract more volunteers to join us. It’s important that every volunteer has an amazing experience at Scouts, so they’re inspired to keep volunteering and supporting our young people. 

So far, we’ve spoken to over 5,000 people to find out what could make their volunteering experience better. We’ve listened to their ideas, and we’re using them to make volunteering the best it can be. 

Funded by Pears Foundation, we’ve partnered with Girlguiding to transform our approach to the crucial early stages of a volunteer’s journey. As part of this, we’re building a new digital tool to help make recruitment easier, and a new volunteer is in control of signing up. We’re working with a County to co-design these tools, and to make sure they’ll work on the ground. 

Working with volunteers every step of the way 

We’ve been sharing progress and testing ideas on our Testing Hub, to make sure we get things right. So far, over 950 people have given us feedback on our Testing Hub. On the ground, we’ll be trying out more of our new tools and support during 2022. 

## **Our approach** 

## **What’s next** 

## **To start with, we’ll focus on:** 

   - Helping to recruit more volunteers, and creating a warmer welcome for all 

- 

- Ensuring positive volunteering every day, by redesigning how we volunteer 

- Creating more engaging learning, and helping volunteers when they need it 

We’ve now agreed our approach for transforming these areas. We’ll prepare for 2023 by: 

   - Building the new recruitment and appointment tools 

- 

   - Designing our new team approach to volunteering, and 

- 

- Creating our new learning 

## Digital Transformation 

To underpin this, we’ve partnered with suppliers to build great digital tools. These tools will help us make volunteering easier, and reduce the time volunteers spend on admin. We’re creating a new digital membership system that’s easy to use, and it’ll be linked with a new digital learning platform. This platform means all learning will be in one, easy-to-find place. 

- To make all these changes possible, we’ll be working with local line managers. Currently, the focus is on: understanding the changes, helping them build the teams they need to support these changes locally, and getting local plans in place. 

– We’ll start piloting new tools with volunteers during the summer and autumn of 2022, to make sure they’re meeting everyone’s needs. 

– At the start of 2023, we’ll work with a small group of Counties, and support them to make changes in their area. This way, we can learn and make improvements. In the spring, we’ll roll out these changes and new tools to everyone. 

– We’ll keep supporting teams where they need it, and asking for feedback, so we can keep improving. 

We’ll also work on other areas of improvement. We’ll continue to update learning and look at other tools to make our ongoing volunteer experience better, such as reviews and awards. 

- 

Creating a warmer welcome for new volunteers together 

26 



## Perception 

**Our aim:** Scouts is understood, more visible, trusted, respected, and widely seen as playing a key role in society today. 

## **Progress a year on** 

## **Improving our perception** 

– We’re making sure the Scouts brand is frequently in the public eye in a positive and relevant way, and we’re consistently emphasising our Skills for Life message. As the pandemic continued into another year, we showed how Scouts learned skills for life in person, when possible. This included the start our new Squirrels programme for 4–6year-olds, our young people playing a leading role with their Promise to the Planet at COP26, and supporting the movement to recruit volunteers with our #GoodForYou campaign. 

- We’ve continued to create and share quality content online. This content shows the relevance of Scouts for building better futures, both for young people and for communities. 

- Our work has continued to attract awards. Our Squirrels brand won Gold in the Transform Awards Europe for Best Creative Strategy, and Bronze for Best Visual Identity by a Charity, along with our partner Supple Studio. 

- We proudly won Gold in the Charity Film Awards with our film ‘What Made Me’, an inspirational video featuring our amazing Scouts Ambassadors. 

– We had a highly successful collaboration with Royal British Legion for Remembrance 2021. This led to an emotional meeting between Emily, a 10-year-old Cub Scout, and Colonel David Blum, a 98-year-old WWII veteran and former Cub Scout. Our Joint President, HRH The Duchess of Cambridge, hosted 

the conversation. The meeting was filmed, and it got nearly 140,000 views on YouTube. This experience positioned Scouts at the heart of our society and national conversations, and explored how we learn from the past and look positively to the future. 

## **Supporting young people** 

– This year was exceptional for high profile stories and campaigns promoting our Skills for Life strategy. We generated 18,000 media items, giving every adult in the UK the chance to see 79 pieces of positive media coverage. 

- We proved that Scouts programmes are relevant for young people. An innovative partnership with HSBC helped 200,000 young people build financial capability, while they earned their Money Skills Badges. 

- Outstanding support from Zoom during the pandemic helped us continue promoting young people’s wellbeing. Successful partnerships with Mind, and new activities and resources, helped us broaden this support. 

- Scouts had the opportunity to build their digital skills and confidence, supported by our partnerships with Nominet and Raspberry Pi. 

## **Progressing our brand** 

Launching our new Squirrels section in September created one of our biggest ever days for public profile. With more than 830 media pieces, all adults in the UK had the chance to see our Squirrels story four times. Our Ambassadors amplified the launch, helping us connect directly with over 350,000 people on social media. We received supportive messages from our Patron HM The Queen, HRH The Duchess of Cambridge and the Royal Foundation for Early Years, as 

- 

27 



well as the Prime Minister. On the day, #SquirrelScouts was one of the top hashtags used by MPs. The launch also drove more volunteer and youth membership enquiries, and positively impacted Scout Stores sales and spontaneous philanthropic income. 

– The success of our Squirrels launch built on its awardwinning brand. The brand is inspired by nature, with skills for life at its heart. The brand is rooted in Scouts heritage, as Brownsea Island (where the first Scouts camp took place in 1907) is a haven for red squirrels. Our Squirrels have cheery red jumpers, and there’s a squirrel in the logo. The Squirrels identity bursts with joyful, youthful energy, working as well on social media as it does in a woodland. 

difference in the fight against climate change. At COP26 in November 2021, we secured a total of 425 media pieces – the equivalent of every adult in the UK seeing the story more than six times. COP26 also drove positive digital engagement on social media, and a 25% spike in our website visitors. 

## **Attracting, recruiting and retaining volunteers** 

- Our priority for the year ahead is to recruit more volunteers to support our young people, and build on our #GoodForYou campaign. We’ll work closely with volunteers and colleagues to increase our resources, which current volunteers can use to attract new volunteers. Thanks to this campaign, we understand what motivates people to volunteer with us, and we’ll build on its strengths over the next year. 

## **Scout Ambassadors and Chief Scout** 

– Our Chief Scout, and diverse team of Scouts Ambassadors, supported many events and campaigns. They amplified the launch of Squirrels, and our #GoodForYou volunteer recruitment campaign. Dwayne Fields and Saray Khumalo hosted webinars for Black History Month in October. Dwayne inspired 600 World Scout Jamboree volunteers, Steve Backshall recorded a special story for Squirrels, and Megan Hine filmed practical skills videos made especially for Scouts. All their media appearances, videos, interviews, opinion pieces, and social media influences drove our messaging, and thanked and inspired our members. 

- Our ground-breaking Promise to the Planet partnership with the World Organisation of the Scout Movement (WOSM), WWF and the Cabinet Office, brought 54 million young voices together as one. Over five months, young people across the world rolled their sleeves up and made a real 

28 



## Theory of Change 

Our Theory of Change shows the positive difference Scouts make in society. We welcome young people and volunteers from all backgrounds, and with us, they learn and share skills, enjoy an engaged and varied programme of activities, honour the Scout values and become active citizens of a connected community. We produce happier, more resilient citizens who work together towards greater social cohesion and an undeniably better world. 

A chart of the interactive elements of our Theory of Change is below 

29 



## The impact of Scouts on young people 

Our Scouts Experience Survey is an annual online survey we’ve used each year since 2018. Previously, we compared Scouts with non-Scouts across our Theory of Change outcomes. In 2020/21, we decided not to use a non-Scout comparison group because the experience of all young people through the previous year was so wideranging, within and outside Scouts. 

To compare effectively, we also need to deliver Scouts consistently. The pandemic moved Scouts activities to a mix of online and in-person (when restrictions allowed), or in some cases, Scouts couldn’t be delivered at all. This meant Scouts experiences varied a lot through 2020/21, so we’ve compared the 2021 survey to our 2019 results. 

Despite the challenges of a global pandemic, we found positive similarities between 2021 and 2019, suggesting Scouts would still score higher than nonScouts across four of six outcomes: 

**Adventure** – Scouts are just as likely as in 2019 to be more physically active to value the outdoors and have the courage to try new things. 

**Skills for Life** – Scouts were just as likely to enhance their problem-solving skills, be independent, and communicate effectively. 

**Leadership** – Scouts were just as likely to increase their teamwork skills, be responsible, and be trustworthy. By taking initiative, and acting as role models to help others make a positive difference, Scouts were just as likely to show leadership. 

**Connectedness** – Scouts in 2021 were just as likely to have meaningful friendships and relationships, care about other people, and have respect and trust for others, including those from backgrounds different to their own. 

Previous survey results have shown that young people in Scouts have a stronger sense of wellbeing than non-Scouts. They’re also good citizens, scoring higher than non-Scouts for playing an active part in their communities. 

These are two areas where we saw a key difference in 2021 compared to 2019: 

**Wellbeing** – a result of the COVID 19 pandemic, some Scouts reported feeling less happy, resilient and confident than they felt in 2019. The pandemic’s taken its 

toll on the mental wellbeing of many of our young people, as illustrated by our survey findings: 

- 11% decrease in happiness 

- 7% decrease on feeling worthwhile 

- 8% decrease on life satisfaction 

- 8% decrease in perseverance and grit 

- 4% decrease in confidence and self-esteem 

**Citizenship** – With limited social contact and opportunities for community engagement due to the pandemic, there were fewer opportunities for Scouts to be involved in the local, national, and international community. This is reflected in the 2021 results, which show that while in 2019 Scouts scored better than nonScouts on citizenship, some Scouts now feel less connected to their communities: 

- 10% decrease in responsibility to people in their local community 

- 8% decrease in responsibility to people in their national community 

- 8% decrease in responsibility to people in their international community 

- 41% decrease in playing an active role in their community (volunteering) 

Understanding the pandemic’s negative effects on young people is fundamental to supporting our young people as they start, or restart, their Scouts journey. 

Now we’re back together in person, we’re working to resolve many of these challenges. The social connection, community engagement, and sense of progression through Scouts, is needed more than ever. 

We can, once again, give our young people the chance to make new friends, connect with their local area, and ignite their journey of learning skills for life. 

After a challenging couple of years, we’re here to support young people to get back on their feet, make new memories, and rediscover their sense of adventure. 

30 



## Our finances 

## **Financial statements** 

The Association’s financial statements have been prepared in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102), and the Statement of Recommended Practice, Accounting and Reporting by Charities, applicable to charities preparing their accounts in accordance with FRS 102 (known as the Charities SORP (FRS 102)) and the Charities Act 2011. 

## **Consolidation** 

These accounts consolidate the results of The Scout Association and its six wholly owned trading subsidiaries: 

- Scout Shops Limited (trading as Scout Store) 

- Scout Insurance Services Limited (trading as Unity) 

- Scout Services Limited 

- Scout Products Limited 

- Scout Insurance (Guernsey) Limited (to the date of liquidation – 9 December 2021) 

- World Scout Shop Limited 

The remaining subsidiary trading companies covenant their annual distributable profits to their parent charity, The Scout Association. 

More information on these companies is included in note 12 to the financial statements. 

## **2021/22 financial overview:** 

This year has been a year of recovery with the return of face-to-face Scouting, and we’ve managed our finances well. At the forefront of our planning and actions, we’ve looked at how we keep Scouts going, and enable all our members to keep benefitting by acquiring skills for life. 

We’ve been able to do that with the dedication of our volunteers, and the drive of our staff. We’ve benefited from the support of our corporate partners as well as various charitable Trusts and Foundations, which is really appreciated in furthering our work. We’re also grateful for the generosity of individual donors particularly in supporting our 

new section Squirrels, and our Race Round the World fundraising campaign. 

During the year, we sold our investment property Baden-Powell House. This decision was made to strengthen our future cash position as we enter a period of recovery for the movement build our reserves, and continue delivering our strategy. 

Now face-to-face Scouts has resumed, we can plan with more optimism. However, to keep financial security, we need to continue to make changes. 

With that context, here’s a look back at the last year: 

- Our finances came under severe strain, but we managed them effectively to support Scouts. 

- Following the sale of BadenPowell House we presented our plans to apply the proceeds, as previously outlined in last year’s reserves policy. This is to apply a portion to budgeted losses while membership numbers recover to previous levels; to recapitalise Scout Stores following its recent losses during the pandemic and consider further investments in commercial operations and Scout Adventures; to deliver specific projects in support of the Skills for Life strategy; to satisfy any revised funding requirements following the next pension fund triennial funding review. 

– We raised our membership fee by £7.50 for 2021/22, and ring-fenced £1.50 of that to support groups in financial hardship.  The majority of the funds raised by the additional £1.50 were distributed to Scout Groups adversely impacted by the pandemic, due to a decline in member numbers. There is a residual amount of £199k from these funds. There’s a clear threeyear plan to build back and recover the membership numbers. 

31 



## **Financial results** 

The Association’s financial result reflects the activities mentioned above. The results for the year are shown in the Consolidated Statement of Financial Activities (SOFA) on page 40. 

There was an operating deficit, before investment and pension valuation changes, of £0.3m for the year compared with the previous year’s surplus of £0.6m. The result is made up of an unrestricted deficit of £0.9m, with an increase of £0.6m in restricted funds. 

Listed investment values fell giving a loss of £0.1m, compared with last year’s gain of £11.5m which reflected an uplift in the value of Baden-Powell House to its expected sales value. The sale for £46 million, was finally competed in August 2021. 

There continues to be significant movements in the actuarial measurement of the defined benefit pension scheme deficit. This year’s £3.2m gain largely resulted from movement in the value of assets and liabilities in the scheme as also reflecting the movement in interest rates as compared to last year’s £0.4m loss. 

Overall, the net movement in funds in the SOFA was £2.9m compared to £11.6m in 2021. 

## **Income** 

As shown in the graph below, total income for the year was £30.0m compared with £27.1m in 2021. The reasons are expanded on below. 

Last year, we noted that the past consistency and robustness of our income streams was now more uncertain. This 10-year graph shows the impact of the loss of income from activity centres, shop trading and conference centres last year, and the recovery we have made in 2021/22, especially in Scout Stores. 

Our member subscriptions are key for funding the support provided to members. Particularly with increasing safeguarding costs, the Trustees agreed a £7.50 increase in fees for 2021/22. The fee is paid for youth members only; adult members and members of Network are not required to pay a National Fee. There was a decrease in youth members of just under 7%, and with the fee increase, member subscriptions decreased by £0.9m to £11.3m. 

The continued and generous support of our donors is important and greatly appreciated by the Association. Despite the hard, uncertain economic conditions, legacies and donations increased by £1.0m to £3.0m. 

We were successful in lobbying for more government support for the youth sector, which led to the creation of the Youth COVID Support. This fund helps services to remain viable since they provide vital support to young people. 

Income from charitable activities is received from our activity centres and sales linked to our charitable purposes. These include camping, training, 

activities, and accommodation charges at Gilwell Park and the other National Scout Adventure Centres. With the easing of lockdown and increased faceto-face Scouts, this income saw a slight increase when compared to 2020/21. Charitable activities also includes insurance commissions earned by Unity Insurance, which also improved. There was an increase in charitable income of £0.8m to £3.2m. 

Our trading operations include the retail sales made by Scout Shops Limited and World Scout Shop Limited, and sponsorship and promotional income. 

Shops activity has improved, with sales up from £2.4m to £9.1m. 

We’ve continued to establish strong links with corporate sponsors and brought in £0.9m from these beneficial connections, up £0.1m on the previous year. 

Investment income increased slightly by £0.1m to £0.6m. 

## **Expenditure** 

Total expenditure was £30.2m compared with the previous year of £26.5m, an increase of £3.7m. Our spend on charitable activities was £23.3m, which was up on 20/21 by £1.1m. This is shown in the pie chart on page 33 under our activity headings, followed by a description of what we provide and achieve through these activities. 


**----- Start of picture text -----**<br>
60m Total Income 2022 - £30m  (2021 - £27m)<br>50<br>40<br>30<br>20<br>10<br>0<br>2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22<br>**----- End of picture text -----**<br>


Charitable activities - Periodic Jamborees Charitable activities 

Investment income & property sales Trading activities 

Grants, donations & legacies Membership subscription 

32 



## **Youth programme and activities** 

We know Scouts is needed more than ever, so we adapted our programme over the past year to make as many face-to-face activities as possible. Over 1,200 activities are now available on our website, including a large number of lockdown-suitable activities. We’re making a conscious effort to retain the blend of digital, indoor, and outdoor activities going forwards, as we’re aware these will be helpful for young people post-pandemic, too. 

## **Development of Scouting** 

Despite losing many adult and youth members during 20/21, we are already seeing a strong return of youth members. The 16% growth in youth members is the greatest we’ve seen since World War Two. 

We launched a new section, Squirrels, to extend Scouts to 4 to 6-year-olds. We’ve already created 600 sections, and by 2033, we hope to welcome 130,000 4 to 6-year-olds per annum, supported by 40,000 new adult volunteers. 

This, along with our national volunteer recruitment campaign #GoodForYou and commitment to improving volunteer experience, means we remain optimistic about our growth goals and the bright future of Scouts. 

## **Adult support and training** 

Our adult volunteers have been amazing this year, and we’ve done our best to support them in the way they deserve. 

We moved our inclusion support and events online, providing members with guidance, lived experience panels, expert speakers, and new programme ideas. 

To make sure the crucial early stages of a volunteer’s journey with us are the best they can be, we also began a partnership with Girlguiding, generously funded by Pears Foundation. This partnership is helping us improve the volunteer welcome journey, making it smoother and easier for all. 

In addition, we now have a continuous review process for our web content and our essential training. This makes sure both are clear and useful for our volunteers. As part of this, we’re offering a ‘blended learning’ approach: digital first, but with workshops and ‘on the job’ learning, too. 

## **Support and service to members** 

This year, we continued focusing on supporting members and communities most affected by COVID-19. 

Our four strategic objectives – Growth, Inclusivity, Youth Shaped and Community Impact – are fulfilled by activities in these four areas. Many of the actions and activities delivering strategic objectives are led by volunteers, with proportionately less financial expenditure than activities delivered by our salaried staff. Due to this, the Trustees feel these four headings used to analyse charitable activities provide a more meaningful 

and appropriate explanation of our income and expenditure. 

## **Charity funds** 

The Scout Association’s consolidated funds increased by £2.9m to £88.3m as of 31 March 2022. The value of endowment funds was £2.2m, restricted funds £4.0m, designated funds £25.9m, the pension reserve £(1.4)m, trading funds £0.4m, and general funds were £57.2m. 

All funds are described in more detail in note 19 to the financial statements with analysis of the movements in the year. 

## **Reserves policy** 

The Trustees annually review the reserves policy. They continue planning to hold reserves to protect the Association and delivery of its charitable programmes by allowing time to adjust to changing financial circumstances. Reserves are also held to support the development of Scouts. The policy ensures an equitable balance between spending the maximum amount of income raised as soon as reasonably possible after receipt, while maintaining an appropriate level of reserves for the uninterrupted operation of the charity. It also provides parameters for future budgeting and strategic plans, and contributes towards decision making. 

The reserves policy establishes an appropriate target for the level of general ‘free’ reserves. The target is based on a risk assessment of the probability and likely financial impact on 

Our spend on charitable activities in 2022 - £23.3m (2021 - £22.2m ) 


**----- Start of picture text -----**<br>
18%<br>40%<br>£23.3m<br>21%<br>20%<br>**----- End of picture text -----**<br>


Youth Programme and Activities Development of Scouting Adult Support and Training 

Support and Services to the Scouting Movement 

33 



the Association’s activities of unforeseen but possible events. This might be caused for example by a sudden decline in income coupled with an inability to reduce expenditure in the short term or a significant increase in litigation costs. The pandemic highlighted the risks to The Scout Association of short-term reductions in membership and commercial income due to the curtailment of face-to-face Scouts. At the same time it was essential to maintain member services to support such Scouting activities as were permissible and to maintain the nucleus of the movement to support future recovery. Consequently, the Trustees have determined that the appropriate free reserves target for The Scout Association is about one year’s worth of expenditure together with some medium term protection for the likely level of litigation taking into account the available commercial insurance cover. Combined this totals currently about £28m. 

The general free reserves for The Scout Association itself shown as of 31 March 2022 are £57.2m (excluding the reserve for the pension fund deficit). However, Trustees recognise there are a number of factors which will likely significantly reduce the free reserves over the next few years. In particular: 

- Budgeted losses while membership numbers recover to previous levels. 

– Potential impacts from the next pension fund triennial funding review and changes in pension regulation due in 2022, which may accelerate the funding requirements. 

- Further investment in commercial operations and Scout Adventures. 

After considering the above allocations, the residual funds will be deployed in delivering the Skills for Life strategy, and further investments will be made for delivering services to the movement. We’ll keep the movement informed as plans for these investments develop over the coming year. 

## **Forward financial forecast and going concern** 

The Trustees have considered the financial plans for the budget year of 2022/23 and projections for the following two years, looking at the cash and reserve projections. This covers a period of at least 12 months from the signing of these financial statements. 

The proactive actions initiated, and the clear plans for resurgence and growth of membership, provide a route to growth and stability of the finances of The Scout Association. The sale of assets has provided us with the resources to maintain a sustainable operating model and invest in growing our services. Our income streams, such as membership income and commercial revenues, are growing. We’ve cut costs and controlled them in line with income, while protecting critical safeguarding and safety functions and frontline support to volunteers. 

There’ll be future changes and there are residual risks. Over the short-term, though, we have the capacity to manage such exposures, as well as planning, monitoring, and managing cash flows accordingly. 

We set out the charity’s risk 

management approach, as well as the key risks faced, on page 68. Despite the volatility of social, economic and market conditions, the pension deficit has reduced over recent years, and a deficit plan agreed with the Pension Scheme Trustees is included in our budget. 

Taking all of the above into account, the Trustees have a reasonable expectation that the charity has adequate resources to continue operating for the foreseeable future. Accordingly, they believe the going concern basis remains the appropriate approach for preparing the financial statements for preparing the financial statements. 

## **Fixed assets** 

Capital investment plans were held back during the year, as we took stock of how we invested in infrastructure to support our strategic objectives and members. As we looked at our future use of properties, spend was limited to making sure we maintained safety compliance. 

## **Subsidiary companies** 

The Association’s trading subsidiaries are reviewed below. Each company is wholly owned and each – other than Scout Insurance (Guernsey) Limited, which was incorporated in the Bailiwick of Guernsey – is incorporated in England and Wales. 

## **Scout Shops Limited** 

Scout Store sells Scouts uniform and ancillary products mainly to members of The Scout Association, both directly and through District Scout Stores and other wholesale outlets. 

With the return of face-to-face Scouting, Scout Shops had a good year by way of turnover and margins. 

Turnover increased to £9.1m (2021: £2.2m) with the impact of the lockdown. 2019 sales were increased by the World Scout Jamboree. Profit before taxation for the year was £3.2m (2021: loss of £0.8m). With this gain, the parent charity agreed to a profit retention of £976,000 at 31 March 2022 to strengthen the balance sheet. The remaining profit of £2.0m after tax has been covenanted to The Scout Association. 

## **World Scout Shop Limited** 

Turnover of £0.2m remained the same as it was in the previous year, with a small gain of £0.01m (2021: loss of £0.01m). 

## **Scout Insurance Services Limited** 

Scout Insurance Services trades under the name of Unity Insurance Services. Its main activity is insurance broker, providing services primarily to The Scout Association, the Scout movement, to other charities and not-for-profit organisations, including Girlguiding UK. 

In the year to March 2022, turnover was £2.5m (2021: £2.2m) with a profit before tax of £1.0m (2021: £1.1m), which it covenanted to The Scout Association. 

## **Scout Insurance (Guernsey) Limited** 

Following the decision to wind up the operations and dissolve Scout Insurance (Guernsey) Limited, the assets and liabilities of the company were transferred back to The Scout Association in December 2021. 

34 



Prior to liquidation a loss of £0.4m was made. 

## **Scout Services Limited** 

Scout Services Limited’s principal activities are sponsorship and marketing services for The Scout Association, including the provision of conference facilities. 

With the enforced closure of the Gilwell Park and Baden-Powell House conference centres, there was a review of their long-term benefit and profitability. The decision led to the sale of BP House. 

Scout Services Limited produced a net gain of £0.2m (2021: loss of £0.8m) from turnover of £1.0m (2021: £1.0m) 

**Scout Products Limited** Scout Products Limited produced a net gain of £3k from turnover of £94k. 

## **The Scout Association Defined Benefit Pension Scheme** 

The most recent full actuarial valuation of The Scout Association Defined Benefit Pension Scheme was carried out as of 31 March 2019. The valuation showed a deficit of £6.5m and a funding level of 86%, which is an improvement from the 78% funding level at the March 2016 full valuation. Based on this valuation, the Trustees agreed a deficit recovery plan aimed at clearing the deficit by 2028. The Scheme closed to new members in the year ended 31 March 2001. During the year, process was completed to withdraw all current live members in the scheme, and this will be completed by June 2022. 

In the year to March 2022, the Scout Association contributed £0.6m to the Scheme (2021: £0.7m ). The Trustees regularly monitor the Scheme funding deficit to make sure general reserves provide adequate cover against the future liability. 

In accordance with Charity Commission guidance (‘Charity Reserves and Defined Benefit Pension Schemes’), the Trustees have reviewed the cash flow impact on the general reserves of the planned funding of the deficit, and these are included in the charity’s budget. 

The valuation of the Defined Benefit Pension Scheme at 31 March 2022 for the accounting purposes of Financial 

Reporting Standard 102 (FRS 102) showed a deficit of £1.4m (2021: £4.9m). 

## **Investment policy and performance** 

Since 2018, the fixed asset investments representing the targeted reserves have been held in the Cazenove Charity Multi-Asset Fund, which is ethically screened. 

Following the decision to increase the reserves target and after the sale of Baden-Powell House in the current year, we carried out a tender exercise to appoint another fund manager, Sarasin, to hold additional funds in an investment portfolio. 

The performance objectives are: 

– to maintain an optimum level of income tempered by the need for capital growth in order to safeguard future grant-making capacity, 

- and on a total return basis to outperform CPI + 4% on a rolling three-year basis 

The Association’s current asset investments represent cash holdings held in Royal London Asset Management Funds, on behalf of the Short Term Investment Service provided to the movement. As of 31 March 2022, total deposits by Scout Groups, Districts, Counties and Regions in the Short Term Investment Service were £11.2m (2021: £11.1m). We’ll be reviewing the operation of the Short Term Investment Service during the coming year. 

## **Remuneration policy** 

The Trustees consider that the Board of Trustees and the Executive Leadership Team (the Chief Executive and the Directors) comprise the key management personnel of the Charity. 

All Trustees give their time freely, and no Trustee received remuneration in the year. The Chief Executive (who is also a Trustee and a full member of the Board) is paid for his executive duties only. 

Details of Trustees’ expenses and related party transactions are disclosed in note 6c to the financial statements. 

The remuneration of the senior staff is reviewed annually by the People and 

Culture Committee (a subcommittee of the Board), considering market conditions, cost of living increases and the financial position of the organisation. The salaries of the Executive Leadership Team are benchmarked to make sure they’re commensurate with the size of the roles. 

The Executive Leadership Team members are entitled to employer pension contributions, and other benefits that are available to employees generally. In addition, enhanced medical insurance provision is provided. 

The Executive Leadership Team sets the salaries for all other employees. 

The remuneration benchmark is the mid-point of the range paid for similar roles, although a market rate supplement may also be paid where appropriate. 

35 



## Trustees’ responsibilities 

Trustees are responsible for preparing the annual report, including ‘How we operate’ on page 67, and the financial statements (in accordance with the Charities Act 2011 and United Kingdom Generally Accepted Accounting Practice). They’re also responsible for making sure the financial statements give a true and fair view of the state of affairs of the group and charity, and of the incoming resources and application of resources of Scouts for the year. In preparing these financial statements, Trustees must: 

- select suitable accounting policies and then apply them consistently 

- make judgments and estimates that are reasonable and prudent 

- state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements 

- prepare the financial statements on the going concern basis, unless it’s inappropriate to presume that the charity will continue in business. 

ongoing integrity of the financial statements contained there. 

## **Our controls include:** 

   - a strategic and operational plan and budget 

- 

- regular consideration by the Board, Finance Committee and Executive Leadership Team of financial results, variances from budget and other (nonfinancial) performance indicators 

- delegation of authority and segregation of duties identification and management of risks by the Board, its Committees and Executive Leadership Team 

- the Finance Committee monitors the effectiveness of any external audits. 

Trustees believe that the system of internal controls has been adequate to provide reasonable reassurance against material misstatement or loss. 


**Jennie Price CBE** Chair, The Scouts On behalf of the Board of Trustees 

Trustees are responsible for keeping adequate accounting records that show and explain the charity’s transactions, disclose with reasonable accuracy at any time the financial position of the charity, and that enable them to make sure that the financial statements comply with any applicable charity laws and, in particular, the Charities Act 2011. Trustees are also responsible for safeguarding the assets of the charity, and for taking reasonable steps for the prevention and detection of fraud and other irregularities. 

Financial statements are published on The Scout Association’s website in accordance with legislation in the United Kingdom governing the preparation and dissemination of financial statements, which may vary from legislation in other jurisdictions. The maintenance and integrity of the group’s website is the responsibility of the Trustees. The Trustees’ responsibility also extends to the 

36 



Independent Auditor’s Report to the Trustees of The Scout Association 

## **Opinion** 

We have audited the financial statements of The Scout Association (‘the charity’) and its subsidiaries (the ‘group) for the year ended 31 March 2022 which comprise consolidated statement of financial activities, consolidated and parent charity balance sheets, consolidated and parent charity statement of cash flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). 

In our opinion the financial statements: 

- give a true and fair view of the state of the group’s and of the parent charity’s affairs as at 31 March 2022 and of the group’s incoming resources and application of resources, including its income and expenditure for the year then ended; 

- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and 

– have been prepared in accordance with the requirements of the Charities Act 2011 and the Charities and Trustee Investment (Scotland) Act 2005 and regulations 6 and 8 of the Charities Accounts (Scotland) Regulations 2006. 

## **Basis for opinion** 

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have 

obtained is sufficient and appropriate to provide a basis for our opinion. 

## **Conclusions relating to going concern** 

In auditing the financial statements, we have concluded that the trustee's use of the going concern basis of accounting in the preparation of the financial statements is appropriate. 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity's or the group’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. 

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report. 

## **Other information** 

The trustees are responsible for the other information contained within the annual report. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. 

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. 

We have nothing to report in this regard. 

37 



## **Matters on which we are required to report by exception** 

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 and the Charities Accounts (Scotland) Regulations 2006 require us to report to you if, in our opinion: 

- the information given in the financial statements is inconsistent in any material respect with the trustees’ report; or 

- sufficient and proper accounting records have not been kept by the parent charity; or 

- the financial statements are not in agreement with the accounting records and returns; or 

- we have not received all the information and explanations we require for our audit. 

## **Responsibilities of trustees** 

As explained more fully in the trustees’ responsibilities statement set out on page 36, the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. 

In preparing the financial statements, the trustees are responsible for assessing the group and the parent charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so. 

## **Auditor’s responsibilities for the audit of the financial statements** 

We have been appointed as auditor under section 151 of the Charities Act 2011, and section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and report in accordance with the Acts and relevant 

regulations made or having effect thereunder. 

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. 

Details of the extent to which the audit was considered capable of detecting irregularities, including fraud and noncompliance with laws and regulations are set out below. 

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: 

www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report. 

## **Extent to which the audit was considered capable of detecting irregularities, including fraud** 

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We identified and assessed the risks of material misstatement of the financial statements from irregularities, whether due to fraud or error, and discussed these between our audit team. We then designed and performed audit procedures responsive to those risks, including obtaining audit evidence sufficient and appropriate to provide a basis for our opinion. 

We obtained an understanding of the legal and regulatory frameworks within which the charity and group operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the 

Charities Act 2011 and The Charities and Trustee Investment (Scotland) Act 2005 together with the Charities SORP (FRS 102). We assessed the required compliance with these laws and regulations as part of our audit procedures on the related financial statement items. 

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which might be fundamental to the charity’s and the group’s ability to operate or to avoid a material penalty. We also considered the opportunities and incentives that may exist within the charity and the group for fraud. The laws and regulations we considered in this context for the UK operations were the laws and regulations we considered in this context for the UK operations were General Data Protection Regulation and health and safety legislation. 

Auditing standards limit the required audit procedures to identify noncompliance with these laws and regulations to enquiry of the Trustees and other management and inspection of regulatory and legal correspondence, if any. 

We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be within the timing of recognition of income, provisions and the override of controls by management. Our audit procedures to respond to these risks included enquiries of management, internal audit, and the Audit Committee about their own identification and assessment of the risks of irregularities, analytical procedures and sample testing of income, sample testing on the posting of journals, reviewing accounting estimates for biases in particular the judgements and assumptions in respect of claims provisions, sample testing of movements within provision and inquiry of legal advisors, reviewing regulatory correspondence with the Charity Commission and other regulators, and reading minutes of meetings of those charged with governance. 

Owing to the inherent limitations of an audit, there is an unavoidable risk that 

38 



we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing noncompliance and cannot be expected to detect non-compliance with all laws and regulations. 

## **Use of our report** 

This report is made solely to the charity’s trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008 and Regulation 10 of the Charities Accounts (Scotland) Regulations 2006. Our audit work has been undertaken so that we might state to the charity’s trustees those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed. 


## **Crowe U.K. LLP** 

Statutory Auditor 4th Floor St James House St James Square Cheltenham GL50 3PR Date: 26 July 2022 

Crowe U.K. LLP is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006. 

39 



## Consolidated statement of financial activities 

## **For the year ended 31 March 2022** 

|||||**2022**|||2021|
|---|---|---|---|---|---|---|---|
||||**Restricted**|||Restricted||
||||**and**|||and||
|||**Unrestricted**|**Endowment**|**Total**|Unrestricted|Endowment|Total|
||**Notes**|**£'000**|<br>**£'000**|**£'000**|£'000|<br>£'000|£'000|
|**Income and endowments from:**||||||||
|**Donations and legacies:**||||||||
|Membership subscriptions||11,250|<br>-|**11,250**|12,190|<br>-|12,190|
|Other voluntaryincome|5.a|1,096|<br>3,705|**4,801**|4,373|<br>3,752|8,125|
|||12,346|<br>3,705|**16,051**|16,563|<br>3,752|20,315|
|**Charitable activities:**||||||||
|Youth programme||290|<br>-|**290**|110|<br>(29)|81|
|Development of Scouting||308|<br>-|**308**|107|<br>(29)|78|
|Adult support and training||308|<br>-|**308**|107|<br>(28)|79|
|Support and services to the||||||||
|members||2,343|<br>-|**2,343**|2,192|<br>-|2,192|
||5.b|3,249|<br>-|**3,249**|2,516|<br>(86)|2,430|
|Other trading activities|5.c|10,060|<br>-|**10,060**|3,482|<br>-|3,482|
|Investment income|5.d|581|<br>41|**622**|469|<br>74|543|
|Other income, property sale||(34)|<br>65|**31**|378|<br>-|378|
|**Total income**||26,202|<br>3,811|**30,013**|<br>23,408|<br>3,740|27,148|
|**Expenditure on:**||||||||
|**Raising funds:**||||||||
|Donations and Legacies||248|<br>31|**279**|274|<br>-|274|
|Tradingactivities|6.a|6,734|<br>-|**6,734**|4,075|<br>-|4,075|
|||6,982|<br>31|**7,013**|4,349|<br>-|4,349|
|**Charitable activities:**||||||||
|Youth programme||3,734|<br>507|**4,241**|3,435|<br>643|4,078|
|Development of Scouting||4,089|<br>694|**4,783**|3,759|<br>817|4,576|
|Adult support and training||4,032|<br>692|**4,724**|3,825|<br>817|4,642|
|Support and services to the||||||||
|members||8,269|<br>1,245|**9,514**|7,353|<br>1,528|8,881|
||6.b|20,124|<br>3,138|**23,262**|18,372|<br>3,805|22,177|
|||||||||
|**Total expenditure**||27,106|<br>3,169|**30,275**|22,721|<br>3,805|26,526|
|Net gains/(losses) on||||||||
|investments||(146)|<br>55|**(91)**|11,236|<br>219|11,455|
|**Net income/(expenditure) for the year**||<br>(1,050)|<br>697|**(353)**|11,923|<br>154|12,077|
|Transfers between funds||(87)|<br>87|**-**|(83)|<br>83|-|
|<br>**Other recognised gains/(losses):**||||||||
|Actuarial gains/(losses) on||||||||
|defined benefitpension scheme|7|3,202|<br>-|**3,202**|(441)|-|(441)|
|**Net movement in funds**|8|2,065|<br>784|**2,849**|11,399|<br>237|11,636|
|**Reconciliation of funds:**|19|||||||
|Fund balances brought forward||||||||
|at 31 March 2021||80,063|<br>5,376|**85,439**|68,664|<br>5,139|73,803|
|**Fund balances carried forward**||||||||
|**at 31 March 2022**||82,128|<br>6,160|**88,288**|80,063|<br>5,376|85,439|



The notes on pages 43 to 65 form part of these financial statements 

40 



## Balance sheet 

## **As at 31 March 2022** 

|**As at 31 March 2022**||||||
|---|---|---|---|---|---|
||||**Consolidated**||**The Association**|
||||**Restated**||**Restated**|
|||**2022**|2021|**2022**|2021|
||Notes|**£'000**|£'000|**£'000**|£'000|
|**Fixed assets**||||||
|Intangible fixed assets|9|**3,057**|2,981|**2,834**|2,699|
|Heritage assets|10|**3,553**|3,553|**3,553**|3,553|
|Tangible fixed assets|11|**18,100**|18,410|**17,967**|18,246|
|Investment in subsidiary companies|12|**-**|-|**400**|500|
|Investments|13|**49,429**|60,134|**49,429**|55,475|
|||**74,139**|85,078|**74,183**|80,473|
|**Current assets**<br>||||||
|Stocks|14|**1,154**|1,917|**99**|120|
|Debtors|15|**6,073**|6,571|**8,441**|11,021|
|Current asset investments|16|**10,865**|11,154|**10,865**|11,154|
|Cash & cash equivalents||**22,110**|9,897|**17,380**|5,643|
|||**40,202**|29,539|**36,783**|27,938|
|**Current liabilities**||||||
|Creditors - amounts falling due within|17|**(20,306)**|(17,830)|**(17,365)**|(16,122)|
|oneyear||||||
|**Net current assets**||**19,896**|11,709|**19,418**|11,816|
|<br>**Total assets less current liabilities**<br>||**94,035**|96,787|**93,601**|92,289|
|**Creditors - amounts falling due after**||||||
|**more than one year**|17|**-**|(2,400)|**-**|-|
|**Provisions for liabilities**|18|**(4,318)**|(4,026)|**(4,318)**|(4,026)|
|**Net assets excluding pension liability**<br>||**89,717**|90,361|**89,283**|88,263|
|<br>**Pension liability**|7|**(1,429)**|(4,922)|**(1,429)**|(4,922)|
|**Net assets**||**88,288**|85,439|**87,854**|83,341|
|<br>**The Association's funds**||||||
|Endowment funds|19|**2,194**|2,131|**2,194**|2,131|
|Restricted funds|19|**3,966**|3,245|**3,966**|3,245|
|Total restricted funds||**6,160**|5,376|**6,160**|5,376|
|General fund|19|**57,353**|57,162|**57,353**|57,162|
|Pension reserve|7,19|**(1,429)**|(4,922)|**(1,429)**|(4,922)|
|Designated funds|19|**25,770**|25,725|**25,770**|25,725|
|Non charitable tradingfunds|12,19|**434**|2,098|**-**|-|
|Total unrestricted funds||**82,128**|80,063|**81,694**|77,965|
|||||||
|**Total funds**||**88,288**|85,439|**87,854**|83,341|



Approved by the Board of Trustees on 21st July 2022 and authorised for release and signed on its behalf by: 


**Jennie Price Mike Ashley** Chair Treasurer 

The notes on pages 43 to 65 form part of these financial statements 

41 



## Statements of cash flows 

## **For the year ended 31 March 2022** 

|**For the year ended 31 March 2022**|||||
|---|---|---|---|---|
|||**Consolidated**||**The Association**|
||**2022**|2021|**2022**|2021|
||**£'000**|£'000|**£'000**|£'000|
|**a. Cash flows**|||||
|**Net cash (used)/provided by operating**|||||
|**activities(see b. below)**|**6,100**|(479)|**5,494**|2,159|
|Cash flows from investing activities:|||||
|Investment income|**618**|497|**625**|852|
|Proceeds from liquidation of subsidiary|**-**|-|**2,492**|-|
|Other deposit interest|**4**|46|**-**|-|
|Proceeds from the sale of property|**46,064**|416|**46,064**|416|
|Purchase of fixed assets|**(2,232)**|(709)|**(1,938)**|(645)|
|Proceeds of the sale of investments|**4,659**|2,304|**-**|1,000|
|Purchase of investments|**(40,000)**|-|**(40,000)**|-|
|**Net cashprovided by investing activities**|**9,113**|2,554|**7,243**|1,623|
|Cash flows from financing activities:|||||
|Loans (repaid)/drawn|**(3,000)**|3,000|**(1,000)**|1,000|
|**Net cashprovided by financing activities**|**(3,000)**|3,000|**(1,000)**|1,000|
|**Change in cash and cash equivalents in**|||||
|**the year**|**12,213**|5,075|**11,737**|4,782|
|Cash and cash equivalents at 1 April|**9,897**|4,822|**5,643**|861|
|**Cash and cash equivalents at 31 March**|**22,110**|9,897|**17,380**|5,643|
|**b. Reconciliation of net income/(expenditure) to cash flow from**||**operating activities**|||
|**Net income/(expenditure) for the reporting**|||||
|**period from the Statement of Financial Activities**|**(353)**|12,077|**1,314**|13,085|
|Adjustments for:|||||
|(Gains)/losses on investments|**91**|(11,455)|**91**|(11,449)|
|Investment income|**(618)**|(497)|**(625)**|(852)|
|Proceeds from liquidation of subsidiary|**-**|-|**(2,492)**|-|
|Other deposit interest|**(4)**|(46)|**-**|-|
|Funding of pension liabilities|**(617)**|(722)|**(617)**|(722)|
|FRS 102 Pension cost|**326**|371|**326**|371|
|(Profit) on sale of fixed assets|**(31)**|(378)|**(5)**|(378)|
|Depreciation charges|**2,397**|2,534|**2,014**|2,335|
|(Increase)/decrease in stocks|**763**|(190)|**21**|159|
|(Increase)/decrease in debtors|**535**|(13)|**2,589**|574|
|(Increase)/decrease in current investments|**243**|361|**243**|361|
|Increase/(decrease) in creditors|**3,076**|(1,295)|**2,243**|(99)|
|Decrease in investment in subs|-|-|**100**|-|
|Increase/(decrease) in provisions for liabilities|**292**|(1,226)|**292**|(1,226)|
|**Net cash (used)/provided from operating**|||||
|**activities**|**6,100**|(479)|**5,494**|2,159|
|**c. Analysis of cash and cash equivalents**|||||
|Cash in hand|**22,110**|9,897|**17,380**|5,643|
|**Total cash and cash equivalents**|**22,110**|9,897|**17,380**|5,643|



The notes on pages 43 to 65 form part of these financial statements 

42 



Notes to the financial statements 

## **1. Constitution** 

The Scout Association is incorporated by Royal Charter and is a registered charity whose purpose is 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. 

## **2. Scope of the financial statements** 

These financial statements cover the activities directly controlled by The Scout Association. The activities of the Scout Councils of Northern Ireland, Scotland and Wales together with Scout Counties, Areas, Regions, Districts and Groups are not reflected in these financial statements. Those bodies are separate autonomous charities that are affiliated to The Scout Association.. 

## **3. Accounting policies** 

The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are as follows: 

## **a. Basis of preparation of consolidated financial statements** 

The financial statements have been prepared in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102), and the Statement of Recommended Practice, Accounting and Reporting by Charities, applicable to charities preparing their accounts in accordance with FRS 102, known as the Charities SORP (FRS 102). 

The Scout Association meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note.. 

each of the subsidiary companies is 31 March. 

The Balance Sheets and Profit and Loss accounts of the subsidiaries have been consolidated on a line by line basis as required by the Statement of Recommended Practice. 

On acquisition of a business, all of the assets and liabilities that exist at the date of acquisition are recorded at their fair values reflecting their condition at that time. All changes to those assets and liabilities and the resulting surpluses that that arise after acquisition are charged to the postacquisition Statement of Financial Activities. 

The financial statements are prepared on the historical cost basis with the exception of investments, which are stated at fair value.. 

## **b. Going concern** 

Having reviewed financial plans and cash flow forecasts, the Trustees have a reasonable expectation that the charity has adequate resources to continue operating for the foreseeable future. Accordingly, they believe that the going concern basis remains the appropriate basis on which to prepare the financial statements. 

## **c. Recognition of income** 

_**National membership subscriptions**_ Membership subscriptions are payable in advance for a year to 31 March and are recognised in the year of membership benefit. 

## _**Legacies**_ 

Legacies are accounted for when the Association becomes entitled to them, where receipt is probable and where their value can be established with reasonable certainty. Where legacies include non-cash items these are included in income at the lower of probate value and market value at the date of receipt. 

## _**Insurance Income**_ 

Insurance broking commission is recognised at the date of inception of the policy. The amount recognised is the total brokerage due to the company less an overall provision for unearned commission. Profit related commission is recognised when it can be reliably calculated and forecast to be received. 

## _**Commercial activities**_ 

Income from conference centres, sponsorship, National Scout Adventure Centres, and other income is accounted for when the Association is entitled to the income, the amount can be quantified with reasonable accuracy and the probability of receipt of the income is more likely than not. 

## _**Investment income**_ 

Dividends are accounted for on a receipts basis. Interest is accounted for on an accruals basis and includes all amounts earned up to the balance sheet date. Associated tax recoveries are included for all amounts shown as income. 

## _**Gifts in kind**_ 

Properties, investments, heritage assets, other fixed assets and any other assets or services donated to the charity are included as donated income at their estimated market value at the time of receipt. 

## **d. Allocation of income and costs** 

All expenditure is accounted for on an accruals basis and is allocated as described below. 

## _**Activities for generating funds and fundraising trading: costs of goods sold and other costs.**_ 

Income and expenditure from Scout Store Limited, World Scout Shop Limited, Scout Services Limited. 

The financial statements consolidate the financial statements of The Scout Association and its subsidiary companies. The financial year end of 

43 



Notes to the financial statements (continued) 

## _**Charitable activities**_ 

This comprises income from the provision of services supporting the objects of the Association through operations including the Information Centre, insurance services, and Scouting magazine as well as the National Activity Centres. 20% of accommodation and training fees receivable at the Gilwell Conference Centre are also included under this heading, with the remaining income included in activities for generating funds. 

Charitable activities have been analysed under the following headings: 

   - Youth programme 

- 

   - Development of Scouting 

- 

- Adult support and training 

   - Support and services to members 

- 

The Association’s activities are largely financed by national membership subscriptions and by the surpluses 

generated by its trading subsidiaries rather than income from charitable activities. The activities have been classified as described in note 6. 

Where possible the income and costs relating to a department or cost centre are allocated in full to one of the above categories, but in practice many departments have an involvement in more than one activity. The other major allocations are set out below. 

||**Youth**<br>**programme**|**Development**<br>**of Scouting**|**Adult support**<br>**and training**|**Support and**<br>**services to**<br>**members**|
|---|---|---|---|---|
|World and European membership fees||||100%|
|Members records and awards|||40%|60%|
|Membership services|20%|20%|20%|40%|
|Safeguarding children||||100%|
|Public relations||100%|||
|Insurance||||100%|
|Short Term Investment Service||||100%|
|Regional Development Service||33%|33%|34%|
|Other National Activity Centres|34%|33%|33%||



## _**Support costs**_ 

These are costs incurred directly in support of the objects of the Charity. The costs are attributed to the activities that they support. Where a department supports all the Charity’s activities the costs have been apportioned pro-rata to the staff resources directly engaged in that activity. The percentages that apply are: 

Trading – 6% 

Youth programme – 20% 

Development of Scouting – 29% 

Adult support and training – 26% 

Support and services to members – 19% 

## _**Grants payable**_ 

Grants payable are included in the Statement of Financial Activities as expenditure in the period in which the award is made. Grants which have been approved by the Trustees and agreed 

with other organisations but which are unpaid at the year end are accrued. Grants where the beneficiary has not been informed or has to meet certain conditions before the grant is released are not accrued. 

## _**Governance costs**_ 

These are the costs associated with the governance arrangements of the Charity which relate to compliance with legal and statutory requirements of the Charity as opposed to those costs associated with fundraising. They include audit fees and the costs of Trustees’ meetings.. 

## **e. Intangible fixed assets** 

IT software is capitalised and written off over the term of the related contract, between 2 and 5 years. Systems Development is capitalised and once the project have completed they are written off over 5 years. 

Goodwill arising on acquisition of an undertaking is the difference between 

the fair value of the consideration paid and the fair value of the assets and liabilities acquired. It is capitalised and amortised through the Statement of Financial Activities over the Trustees’ estimate of its useful economic life which can range from 5 to 10 years. Impairment tests on the carrying value are undertaken at the end of the first full year after acquisition and in any other subsequent period if events or changes in circumstances indicate that the carrying value may not be recoverable. The cost of acquiring a brand licence is written off over the term of the related contract. 

## **f. Heritage fixed assets** 

The Association maintains a heritage collection of around 250,000 items. Through an active and innovative programme of collecting, interpreting and engagement, the Heritage Collection helps create connections between members of The Scout Association, both past and present, and the wider community. The Heritage 

44 



Notes to the financial statements (continued) 

Collection is managed by the Headquarters’ Heritage Service. To ensure its ongoing representation of Scouting’s story the Heritage Service continues to collect both historical and contemporary material. New acquisitions are normally made by donation with occasional low cost purchases. New material is acquired in accordance with The Scout Association’s Collecting Policy. 

Heritage assets are carried at fair value. The Association has made reference to the latest available external valuations in forming their assessment of period end fair value. Gains and losses on revaluation are recognised through ‘Other recognised gains’ in the Statement of Financial Activities. 

The Association will occasionally approve the disposal of elements of the Collection, this process is carried out in accordance with the Code of Ethics and industry best practice as dictated by the Arts Council England Accreditation Standard. Disposal will be judged against the Association’s Collecting Policy. Disposal will be carried out in line with the Disposal Policy and follow the Disposal Procedure. Disposal of accessioned material only takes place with the approval of the Trustees or their designated representative. Disposal of non-accessioned items takes place with the approval of the Director of Commercial Services. 

Expenditure that is in the Trustees’ view required to conserve or prevent further deterioration of individual items is recognised as expenditure when it is incurred. The Heritage Service actively seeks external funding to support the delivery of this work. 

## **g. Other fixed assets** 

Other fixed assets are stated at cost. Where land and buildings are acquired together it is assumed that the buildings represent 50% of the initial cost. Investment in systems development in support of the charity's strategy is capitalised as a tangible fixed asset. Depreciation is calculated to write off the cost of assets by equal annual amounts over their expected useful 

are not capitalised. No depreciation is provided on freehold land **.** 

## _**Depreciation rates used are:**_ 

Freehold property – 50 years, with 10 years for replacement elements 

Leasehold property – the shorter of the lease period or 50 years 

Furniture fittings and equipment – 4 to 5 years 

Motor vehicles – 5 to 10 years 

Gains or losses on the disposal of fixed assets are reflected in net income/expenditure for the year shown in the Statement of Financial Activities. 

Impairment reviews on fixed assets are carried out each year and any asset with a carrying value materially higher than its recoverable or useful value is written down accordingly. 

Fixed assets held for investment purposes are stated at market value on the balance sheet date. 

Any gains or losses on the disposal or revaluation of investment assets are as shown net gains/(losses) on investments in the Statement of Financial Activities. 

## **h. Investments** 

The Scout Association holds 

investments both in order to generate income for the support of charitable objectives and to provide assets to meet the need of reserves, identified in the reserves policy. Investments are stated at current market value on the balance sheet date unless there’s evidence of a different fair value. 

Gains or losses arising during the  year are disclosed in the statement  of financial activities and in the notes to the  financial statements. 

## **i. Current asset investments** 

The funds deposited by Scout Groups in the Short Term Investment Service are held on short-term deposit with an external investment manager. These short-term deposits are not held by the Scout Association for investments 

purposes and are included in the balance sheet at fair value as current asset investments. Movements in these funds are shown in the notes to the financial statements. 

## **j. Stocks** 

Stocks are valued at the lower of cost and estimated net realisable value. Cost is calculated using the current purchase price method and consists of the original cost of goods without any addition for overheads. 

## **k. Provisions** 

A provision is recognised in the balance sheet when the Association has an obligation as a result of a past event and it is probable that an outflow of economic benefits that can be reliably measured will be required to settle that obligation. 

## **l. VAT** 

The Association is partially exempt for VAT purposes and is not able to reclaim all the VAT it pays. It is not practicable to allocate irrecoverable VAT to the expenses and assets concerned, and irrecoverable VAT is written off. 

## **m. Leases** 

Significant assets held under finance leases and the related lease obligations are included at the fair value of the leased assets at the inception of the lease. Depreciation on leased assets is calculated to write off this amount on a straight-line basis over the shorter of the lease term and the useful life of the asset. 

Rentals payable are apportioned between the finance charge and a reduction of the outstanding obligations. 

All other leases have been treated as operating leases and the rentals written off as they are paid because of the insignificant amounts involved. 

## **n. Pension costs** 

Contributions payable to The Scout Association Pension Scheme are charged to the Statement of Financial Activities so as to spread the cost of pensions over the working lives of employees in the scheme. The pension 

lives. Assets costing less than £1,000 

45 



Notes to the financial statements (continued) 

charge is calculated on the basis of actuarial advice. 

The pension scheme liabilities are measured using a projected unit method and discounted at an AA sterling corporate bond rate. The pension scheme deficit is recognised in full on the balance sheet. 

The current service cost and net return on the scheme’s assets and liabilities for the year is allocated across the resources expended categories in the Statement of Financial Activities. The actuarial gain on the scheme for the year is included in the  gains/(losses) section of the Statement of Financial Activities. 

Contributions towards personal pension policies, which are defined contribution schemes, are charged to the Statement of Financial Activities as they are incurred. 

## **o. Financial assets** 

Financial assets, other than investments and derivatives, are initially measured at transaction price (including transaction costs) and subsequently held at cost, less any impairment. 

## **p. Financial liabilities** 

Financial liabilities are classified according to the substance of the financial instrument’s contractual obligations, rather than the financial instrument’s legal form. Financial liabilities, excluding derivatives, are 

initially measured at transaction price (including transaction costs) and subsequently held at amortised cost. 

## **q. Forward currency contracts** 

The Scout Association enters into forward contracts for the purchase of currency in order to manage its exchange rate exposure relating to the World Scout Jamboree and other overseas events. Hedge contracts are measured at fair value at each reporting date. 

Where there is a change in exposure at the balance sheet date, through movement in the forward exchange rate from the contract rate, that change is included in expenditure in the statement of financial activities. 

## **r. Judgements in applying accounting policies and key sources of estimation uncertainty** 

In preparing these financial statements, the Trustees have made the following judgements: 

The determination of whether fixed asset properties owned by the Scout Association are held for operational use, and so are classed as tangible fixed assets, or whether they are classed as investment properties. 

The determination of whether or not there are indications of impairment of the Scout Association’s tangible and intangible assets, including goodwill, taking into consideration the economic 

viability and expected future financial performance of the asset. 

The determination of appropriate provision for claims, supported by legal advice. 

The determination of appropriate financial and demographic assumptions in valuing the defined benefit pension liability in line with FRS 102 requirements, supported by actuarial advice.. 

## **4. Nature of funds** 

All funds are identified as identified as falling into one of three categories. 

## _**Endowment funds**_ 

Endowment funds are those received to be held as capital on a total returns basis with only the income available to be spent. Subsequent gains or losses on the disposal of the underlying assets of the fund become part of the capital. 

## _**Restricted funds**_ 

Restricted funds are those received which have been earmarked for a special purpose by the donor or the terms of an appeal. 

## _**Unrestricted funds**_ 

Unrestricted funds are those received, which are not subject to any special restriction. They are divided between general funds and designated funds. Designated funds comprise amounts set aside by the Trustees to be used for particular purposes. 

46 



Notes to the financial statements (continued) 

## **5. Income and endowments** 

## **a. Other voluntary income** 

||||**2022**|||2021|
|---|---|---|---|---|---|---|
|||**Restricted**|||Restricted||
|||**and**|||and||
||**Unrestricted**|**Endowment**|**Total**|Unrestricted|Endowment|Total|
||**£'000**|**£'000**|**£'000**|£'000|£'000|£'000|
|Legacies|311|1,079|**1,390**|119|235|354|
|Grants|-|1,768|**1,768**|3,926|2,152|6,078|
|Other donations|785|858|**1,643**|328|1,365|1,693|
|**Total**|1,096|3,705|**4,801**|4,373|3,752|8,125|



During 2022 the Association received one-off government grants to support the operation of the charity. Furlough grants of £6,514 (2021: £1,721,000) were received under the Covid-19 job retention scheme and grants of £66,971 (2021: £nil) were received under the Kickstarter scheme. 

## **b. Charitable activities** 

The income in this category is derived primarily from the Association's insurance broking subsidiary and its National Activity Centres. Many of the activities are not conducted with the principal intention of generating net income. Instead the Association's charitable activities are financed largely by fundraising activities and by membership subscriptions. 

||||**2022**|||2021|
|---|---|---|---|---|---|---|
|||**Restricted**|||Restricted||
|||**and**|||and||
|**Unrestricted**||**Endowment**|**Total**|Unrestricted|Endowment|Total|
||**£'000**|**£'000**|**£'000**|£'000|£'000|£'000|
|National events|70|-|**70**|-|-|-|
|Insurance broking|2,259|-|**2,259**|2,134|-|2,134|
|Advertising carried by_Scouting_|||||||
|magazine|-|-|**-**|3|-|3|
|National Centres|600|-|**600**|-|(86)|(86)|
|Other income|320|-|**320**|379|-|379|
|**Total**|3,249|-|**3,249**|2,516|(86)|2,430|
|**c. Other trading activities**|||||||
|||**Restricted**|||Restricted||
|||**and**|||and||
|**Unrestricted**||**Endowment**|**Total**|Unrestricted|Endowment|Total|
||**£'000**|**£'000**|**£'000**|£'000|£'000|£'000|
|Retail sales|9,086|-|**9,086**|2,442|-|2,442|
|Hostel and conference income|39|-|**39**|215|-|215|
|Sponsorship,promotions and royalties|935|-|**935**|825|-|825|
|**Total**|10,060|-|**10,060**|3,482|-|3,482|
|**d. Investment income**|||||||
|||**Restricted**|||Restricted||
|||**and**|||and||
|**Unrestricted**||**Endowment**|**Total**|Unrestricted|Endowment|Total|
||**£'000**|**£'000**|**£'000**|£'000|£'000|£'000|
|Listed investments|454|22|**476**|380|23|403|
|Short Term Investment Service|-|19|**19**|-|51|51|
|Other deposit interest|4|-|**4**|46|-|46|
|Rental income|123|-|**123**|43|-|43|
|**Total**|581|41|**622**|469|74|543|



47 



Notes to the financial statements (continued) 

## **6. Expenditure** 

## **a. Trading activities** 

|**6. Expenditure**<br>**a. Trading activities**|||||||
|---|---|---|---|---|---|---|
||||**2022**|||2021|
|||**Restricted**|||**Restricted**||
|||**and**|||**and**||
||**Unrestricted**|**Endowment**|**Total**|**Unrestricted**|**Endowment**|**Total**|
||**£'000**|**£'000**|**£'000**|**£'000**|**£'000**|**£'000**|
|Retail operating costs|6,133|-|**6,133**|3,227|-|3,227|
|Hostel and conference expenditure|280|-|**280**|589|-|589|
|Sponsorship, promotions and|||||||
|royalties|321|-|**321**|259|-|259|
|**Total**|6,734|-|**6,734**|4,075|-|4,075|



Hostel, conference and commercial trading expenditure includes support costs of £540,000 (2021: £509,000). The basis for the allocation of support costs is explained in note 6.c. 

## **b. Costs of charitable activities** 

|**b. Costs of charitable activities**|||||
|---|---|---|---|---|
|||||**2022**|
||**Direct**|**Grant funding**|**Support costs**|**Total**|
||**£'000**|**£'000**|**£'000**|**£'000**|
|Youth programme|2,159|247|1,835|**4,241**|
|Development of Scouting|1,875|247|2,661|**4,783**|
|Adult support and training|2,091|247|2,386|**4,724**|
|Support and services to members|7,523|247|1,744|**9,514**|
|**Total**|13,648|988|8,626|**23,262**|



|||||2021|
|---|---|---|---|---|
||**Direct**|**Grant funding**|**Support costs**|**Total**|
||**£'000**|**£'000**|**£'000**|**£'000**|
|Youth programme|1,974|406|1,698|4,078|
|Development of Scouting|1,707|407|2,462|4,576|
|Adult support and training|2,029|406|2,207|4,642|
|Support and services to members|6,861|407|1,613|8,881|
|**Total**|12,571|1,626|7,980|22,177|



Charitable activities have been analysed into four categories as explained in note 3.d. Costs are allocated using the principles explained in that note. 

Youth programme includes the various educational activities in which members participate. Development activities are those which are focused on growing our movement. Adult support and training includes those activities which assist leaders and other adults involved in Scouts. Support and services to the movement includes those activities that help ensure the safety and safeguarding of members, which underpin the activities of Scout Groups. 

48 



Notes to the financial statements (continued) 

|**Analysis of grants to local Scouting**|||
|---|---|---|
||**2022**|2021|
||**£'000**|£'000|
|Pears Community Match Fund|**-**|900|
|Race Round the World|**193**|534|
|Development|**184**|43|
|International Fund|**2**|-|
|Benevolent Fund|**10**|10|
|Admiralty Fund and Trinity House Fund (Sea Scouts)|**63**|85|
|Grants from legacies to local Groups|**176**|43|
|King George VI Leadership Fund|**3**|10|
|Hardship Fund|**351**|-|
|Other|**6**|1|
|**Total**|**988**|1,626|



Grants from restricted and designated funds administered by the Association are paid, in accordance with the terms governing those funds, to a large number of Scout Groups, Districts, Areas and Counties. 

|**Support costs allocation**|||
|---|---|---|
||**2022**|2021|
||**£'000**|£'000|
|Fixed asset depreciation|**2,397**|2,534|
|Irrecoverable VAT|**643**|422|
|Office accommodation and services|**904**|638|
|Central management|**690**|712|
|Human resources, legal and company secretarial|**1,129**|864|
|Finance and accounting|**724**|793|
|Information technology and business solutions|**2,143**|1,815|
|Movement in pension scheme deficit recognised in resources expended|**326**|371|
|Governance|**221**|340|
|**Total**|**9,177**|8,489|
|**Allocated to:**|||
|Costs of charitable activities|**8,626**|7,980|
|Expenditure on tradingactivities|**551**|509|
|**Total**|**9,177**|8,489|



Support costs comprise that expenditure which facilitates fundraising and charitable activity but which is not directly incurred in the conduct of those activities. The support costs itemised above have been apportioned to fundraising and charitable activities pro rata to the employment costs of staff directly engaged on the relevant activities. The percentage allocations are disclosed in note 3.c. 

## **c. Expenditure includes:** 

|**c. Expenditure includes:**|||
|---|---|---|
||**2022**|2021|
||**£'000**|£'000|
|**Auditor’s remuneration**|||
|Audit fees|**64**|77|
|Taxation compliance and grant income certificates|**22**|22|
|**Trustees’ expenses**|**4**|0|



During the year 15 Trustees (2021: 2 Trustees) were reimbursed £4,281 (2021: £300) for expenses, such as travel and subsistence, incurred in their attending meetings and in the carrying out of their duties. The Association provided accommodation for the Chief Scout and for others while they were on Scout business. 

49 



Notes to the financial statements (continued) 

## **7. Staff costs** 

|**7. Staff costs**||||||
|---|---|---|---|---|---|
||||**2022**||2021|
||||**£'000**||£'000|
|Wages and salaries|||**11,400**||11,179|
|Social security costs|||**1,209**||1,103|
|Defined contribution pension costs|||**815**||745|
|Otherpension costs|||**63**|<br>|76|
||||**13,487**||13,103|
|In addition, termination costs in the year|||**82**||601|
|Termination costs are accrued when agreed||||||
|||Headcount||Full time equivalent||
||**2022**|2021||**2022**|2021|
|**Activity**||||||
|The Scout Association|**259**|290||**246**|270|
|Scout Shops Limited/World Scout Shop Limited|**41**|43||**41**|41|
|Unity (Scout Insurance Services Limited)|**26**|21||**26**|21|
|Total|**326**|354||**313**|332|
|**Movement in The Scout Association full time equivalent**||||||
|**for 2021/2022:**||||||
|Programme of Works|||||5|
|NCS funded|||||(3)|
|Unrestricted|||||(26)|
|Total decrease|||||(24)|



The increase in staff numbers relates to 5 fixed term contract staff for Programme of Works and a reduction of 3 NCS funded positions. 

Staff numbers for our general funds are down by 26 reflecting the impact of the pandemic, and have since increased as activities across the movement recover. 

The number of employees whose total emoluments for the year exceeded £60,000 were as follows: 

||**2022**|2021|
|---|---|---|
|£60,001 to £70,000|**7**|4|
|£70,001 to £80,000|**3**|4|
|£80,001 to £90,000|**4**|3|
|£90,001 to £100,000|**2**|3|
|£100,001 to £110,000|**1**|-|
|£110,001 to £120,000|**-**|2|
|£120,001 to £130,000|**3**|1|
|£130,001 to £140,000|**1**|-|



The Chief Executive Officer, Matt Hyde, is also a Trustee, for which he is not paid. He received salary and benefits for his service as Chief Executive Officer of £131,011 (2021 £129,924). 

No other Trustee received remuneration for services to the Association. 

The key management personnel of the parent charity and its subsidiaries comprise the Trustees, the Chief Executive Officer, Director of Commercial Services, Director of Communications and Marketing, Chief Operating Officer, Director of Finance & Resources, Managing Director of Unity Insurance (SISL) and General Manager of Scout Shops and World Scout Shop. The total employer cost of the key management personnel of the Scout Association and its subsidiaries was £937,796 (2021 £896,702). 

50 



Notes to the financial statements (continued) 

## **Pension schemes** 

Pension provision for current staff is mainly provided through a defined contribution arrangement. The Scout Association Defined Benefit Pension Scheme ("the Scheme") is closed to new staff and has a small number of existing members. The Scheme provides benefits, on retirement, on leaving service or on death, based on final salary and length of service. 

The Scheme is subject to the Statutory Funding Objective under the Pensions Act 2004 and a valuation of the Scheme is carried out at least once every three years. As part of the process, the Association must agree with the 

trustees of the Scheme the contributions to be paid in order to address any shortfall against the Statutory Funding Objective and the contributions to be paid in respect of the accrual of the future benefits. 

The most recent comprehensive actuarial valuation of the Scheme was carried out as at 31 March 2019, and showed a deficit of £6,477,000, a funding level of 86%. The Scheme Trustees and The Scout Association have agreed a recovery plan with deficit contributions of £510,000 for the year to 31 March 2021. Then £500,000 each year until 2028, and an additional oneoff contribution of £500,000 to be paid by 30 September 2022. 

## **FRS102 valuation** 

These financial statements have been prepared in line with the requirements of FRS 102. The FRS 102 valuation is only in respect of the defined benefit Scheme. The principal FRS 102 actuarial assumptions, determined by financial markets and demographic conditions, are shown below. A later table shows the sensitivity of the liability to these assumptions. 

## **Principal actuarial assumptions** 

|**Principal actuarial assumptions**|||||
|---|---|---|---|---|
|||**31 March 2022**||31 March 2021|
|||**%**||%|
|Discount rate||**2.65**||1.90|
|Inflation - RPI||**3.65**||3.25|
|Inflation - CPI||**2.85**||2.45|
|Salary increases||**2.95**||2.55|
|Pension increase (RPI max 5.0%)||**3.55**||3.20|
|Pension increase (RPI max 2.5%)||**2.40**||2.35|
|Mortality||**95% of S3PA tables**||95% of S3PA tables|
|||**CMI 2021 projections**||CMI 2019 projections|
|||**1.25% p.a. long-term**||1.25% p.a. long-term|
|||**trend rate for pensioners**||trend rate for pensioners|
|||**1.50% p.a. long-term**||1.50% p.a. long-term|
|||**trend rate for non-**||trend rate for non-|
|||**pensioners**||pensioners|
|Retirement cash||**Members are assumed to**||Members are assumed to|
|||**take 20% of their pension**||take 20% of their pension|
|||**as tax-free cash**||as tax-free cash|
|**Balance sheet position**|||||
|||**31 March 2022**||31 March 2021|
||%|**£'000**|%|£'000|
|Equities|11%|**4,467**|26%|13,884|
|Diversified growth assets|35%|**14,184**|24%|8,468|
|Absolute return|0%|**-**|0%|6,307|
|Liability Driven Investments|18%|**7,282**|21%|6,152|
|Diversified credit|0%|**-**|0%|5,736|
|Corporate bonds|34%|**13,752**|28%|-|
|Cash|1%|**482**|1%|1,504|
|Fair value of assets|100%|**40,167**|100%|42,051|
|Present value of funded obligations||**(41,596)**||(46,973)|
|**Net defined benefit liability**||**(1,429)**||(4,922)|



51 



Notes to the financial statements (continued) 

## **Amounts recognised in the Statement of Financial Activities** 

|||**2022**|2021|
|---|---|---|---|
|||**£'000**|£'000|
|Current service cost||**(75)**|(81)|
|Administration costs||**(162)**|(187)|
|Interest on liabilities||**(876)**|(949)|
|Interest on assets||**787**|846|
|**Cost in total expenditure for theyear**||**(326) **|(371)|
|**Remeasurements over the period**||||
|Gain/(loss)on assets in excess of interest|**(1,370)**||4,678|
|Experience gain on liabilities||**-**|-|
|Gain/(loss) from changes to demographic||||
|assumptions||**581**|(174)|
|Gain/(loss) from changes to financial assumptions||**3,991**|(4,945)|
|**Actuarial gains/(losses)**||||
|**on defined benefitpension scheme**||**3,202**|(441)|
|**Reconciliation of the fair value of the Pension Scheme assets and liabilities**||||
||**31 March**|**2022**|31 March 2021|
|||**£'000**|£'000|
|Fair value of assets at the start of the year|**42,051**||38,646|
|Interest on assets||**787**|846|
|Administration costs||**(162)**|(187)|
|Contributions by members||**14**|18|
|Contributions by TSA||**617**|722|
|Benefits paid|**(1,770)**||(2,672)|
|Return on assets less interest|**(1,370)**||4,678|
|**Fair value of assets at the end of the year**|**40,167**||42,051|
|Actual return on assets||**(583)**|5,524|
||**31 March 2022**||31 March 2021|
|||**£'000**|£'000|
|Value of liabilities at the start of the year|**(46,973)**||(43,478)|
|Interest cost||**(876)**|(949)|
|Current service cost||**(75)**|(81)|
|Contributions by members||**(14)**|(18)|
|Benefits paid||**1,770**|2,672|
|Experience gain on liabilities||**-**|-|
|Changes to demographic assumptions||**581**|(174)|
|Changes to financial assumptions||**3,991**|(4,945)|
|Value of liabilities at the end of the year|**(41,596)**||(46,973)|



52 



Notes to the financial statements (continued) 

|**Adjustments to assumptions**||**Approximate effect on the liabilities**|
|---|---|---|
|||**£'000**|
|Discount rate|Plus 0.10% p.a.|**(647)**|
||Minus 0.10% p.a.|**663**|
|Inflation|Plus 0.10% p.a.|**313**|
||Minus 0.10% p.a.|**(316)**|
|Salary increase|Plus 0.50% p.a.|**182**|
||Minus 0.50% p.a.|**(171)**|
|Mortality|Long-term rate of improvement 0.25%|**(400)**|
||Long-term trend rate 1.25% for all members|**(262)**|
|Commutation|Members take 25% of their pension in cash|**(460)**|



## **Projected SOFA for year to 31 March 2023** 

|**Projected SOFA for year to 31 March 2023**||
|---|---|
||**£'000**|
|Current service cost|**67**|
|Administration costs|**162**|
|Interest on liabilities|**1,079**|
|Interest on assets|**(1,053)**|
|**Total**|**255**|



The estimate above assumes the following: 

- Ongoing cash flows to and from the Scheme are broadly unchanged from the current year's figures. 

- There have been no events (other than those notified to the Pension Scheme Actuary) that would give rise to a settlement/ curtailment/past service cost. 

## **8. Net movement in funds** 

The net movement in funds arises as follows: 

||**2022**|2021|
|---|---|---|
||**£'000**|£'000|
|The Scout Association|**4,513**|12,645|
|Subsidiaries|**(1,657)**|(1,009)|
|**Total**|**2,856**|11,636|



53 



Notes to the financial statements (continued) 

## **9. Intangible fixed assets** 

|**Consolidated**||||**Systems**||
|---|---|---|---|---|---|
||**IT software**|**Brand licences**|**Goodwill**|**Development**|**Total**|
||£'000|£'000|£'000|£'000|£'000|
|Cost||||||
|At 1 April 2021 – Restated|341|85|119|9,157|9,702|
|Additions|35|-|-|1,096|1,131|
|Disposals|-|(1)|-|(68)|(69)|
|**At 31 March 2022**|**376**|**84**|**119**|**10,185**|**10,764**|
|Depreciation||||||
|At 1 April 2021 – Restated|186|79|50|6,406|6,721|
|Charge for the year|76|3|29|878|986|
|**At 31 March 2022**|**262**|**82**|**79**|**7,284**|**7,707**|
|Net book values||||||
|**At 31 March 2022**|**114**|**2**|**40**|**2,901**|**3,057**|
|At 31 March 2021|155|6|69|2,751|2,981|
|**The Association**||||**Systems**|**Development**|
|Cost|||||£'000|
|At 1 April 2021 – Restated|||||8,782|
|Additions|||||1,058|
|Disposals|||||(68)|
|**At 31 March 2022**|||||**9,772**|
|Depreciation||||||
|At 1 April 2021 - Restated|||||6,083|
|Charge for the year|||||855|
|Eliminated on disposals|||||-|
|**At 31 March 2022**|||||**6,938**|
|Net book values||||||
|**At 31 March 2022**|||||**2,834**|
|At 31 March 2021|||||2,699|



54 



Notes to the financial statements (continued) 

## **10. Heritage fixed assets** 

## **a. Heritage assets** 

## **Consolidated and the Association Unrestricted Funds** 

**Scouting heritage, historical and contemporary assets £'000** 

## **Cost or valuation** 

At 1 April 2021 and 31 March 2022 

A valuation is provided for some of the key items in the Association’s collection, particularly those relating to the Founder, since the nature of these items permits sufficiently reliable valuation. The initial valuation was prepared by Lyon & Turnbull, members of the Society of Fine Art Auctioneers and Valuers, in 2011. A revaluation report was produced by Pall Mall on 1 April 2016. The valuation is planned in the financial year 2023. Any surplus or deficit on revaluation is charged to the net movement in funds on the Consolidated Statement of Financial Activities. Additional valuations will only be carried out for the purpose of lending items to other organisations and insurance. 

The Trustees consider that obtaining valuations for the remainder of the Collection would involve disproportionate cost due to the diverse nature of the material held and the lack of comparable market values. Other than the items that have been valued as described above, the Association does not recognise these assets on its Balance Sheet. It is the intention of The Scout Association to preserve these items indefinitely, therefore amortisation is not in our view appropriate. 

## **(b) Five year financial summary of heritage asset transactions** 

There have been no purchases, donations, disposals or valuations in the last five years. 

## **(c) Further information on heritage assets** 

The Association maintains a heritage collection of around 250,000 items. Through an active and innovative programme of collecting, interpreting and engagement, the Heritage Collection helps create connections between members of The Scout 

Association, both past and present, and the wider community. The Heritage Collection is managed by the Headquarters’ Heritage Service. To ensure its ongoing representation of Scouting’s story the Heritage Service continues to collect both historical and contemporary material. New acquisitions are normally made by donation with occasional low cost purchases. New material is acquired in accordance with The Scout Association’s Collecting Policy. 

The Heritage Service, supported by a small team of volunteers, is working to catalogue the Collection in line with The Heritage Collections Trust SPECTRUM standard and the national standard for archive cataloguing, this activity is an ongoing priority. Currently approximately 10% of the Collection is catalogued to these standards. 

The Association will occasionally approve the disposal of elements of the Collection, this process is carried out in accordance with the Code of Ethics and industry best practice as dictated by the Arts Council England Accreditation Standard. Disposal will be judged against the Association’s Collecting Policy. Disposal will be carried out in line with the Disposal Policy and follow the Disposal Procedure. Disposal of accessioned material only takes place with the approval of the Trustees or their designated representative. Disposal of non-accessioned items takes place with the approval of the Director of Commercial Services. In accordance with best practice the Heritage Service will always try to keep the item in the public domain by gifting it free of charge to other relevant museum collections or archives. If an appropriate museum or archive cannot be found the item may be considered for sale, any proceeds from such 

**3,553** 

a sale would be restricted to the care and preservation of the Collection. Expenditure that is, in the Trustees’ view, required to conserve or prevent further deterioration of individual items, including conservation work, is recognised as expenditure when it is incurred. The Heritage Service actively seeks external funding to support the delivery of this work. 

A small number of Collection items is displayed within the buildings and grounds of Gilwell Park but most of the Collection is held in storage. Included in the development plans for Gilwell Park is a new facility which would increase public access to the Collection, through a permanent display and a series of temporary exhibitions, as well as providing more appropriate storage for the Collection, ensuring its long term preservation. Currently access to the Collection is provided through the enquiries service, research appointments, the Gilwell Park Heritage Trail, the Scout Heritage website and exhibitions and activities organised with partner organisations. The Heritage Service continues to reach out to new audiences through activities including participation in the national Heritage Open Days scheme and programmes, including the UK Dementia Friendly Heritage Network. 

The Association maintains the heritage collection in a good condition, and no items currently require substantial conservation expenditure. The nature of some of the assets, such as early cine- film, means they will deteriorate over time and should be considered a priority for preservation by digitisation and specialist storage.. 

55 



Notes to the financial statements (continued) 

## **11. Tangible fixed assets** 

|**Consolidated**|||**Furniture,**|||
|---|---|---|---|---|---|
||**Freehold**|**Leasehold**|**Fittings and**|**Motor**||
||**Property**|**Property**|**Equipment**|**Vehicles**|**Total**|
|Cost|£'000|£'000|£'000|£'000|£'000|
|At 1 April 2021 – Restated|24,594|958|8,004|100|33,656|
|Additions|506|-|595|-|1,101|
|Disposals||-|(7)|(98)|(105)|
|**At 31 March 2022**|**25,100**|**958**|**8,592**|**2**|**34,652**|
|Depreciation||||||
|At 1 April 2021 – Restated|7,484|927|6,735|100|15,246|
|Charge for the year|615|1|795|-|1,411|
|Eliminated on disposals|-|-|(7)|(98)|(105)|
|**At 31 March 2022**|**8,099**|**928**|**7,523**|**2**|**16,552**|
|Net book values||||||
|**At 31 March 2022**|**17,001**|**30**|**1,069**|**-**|**18,100**|
|At 31 March 2021|17,110|31|1,269|-|18,410|
|**The Association**|||**Furniture,**|||
||**Freehold**|**Leasehold**|**Fittings and**|**Motor**||
||**Property**|**Property**|**Equipment**|**Vehicles**|**Total**|
|Cost|£'000|£'000|£'000|£'000|£'000|
|At 1 April 2021 – Restated|24,602|958|6,568|82|32,210|
|Additions|497|-|383|-|880|
|Disposals|-|-|-|(82)|(82)|
|**At 31 March 2022**|**25,099**|**958**|**6,951**|**-**|**33,008**|
|Depreciation||||||
|At 1 April 2021 – Restated|7,492|927|5,463|82|13,964|
|Charge for the year|607|1|551|-|1,159|
|Eliminated on disposals|-|-|-|(82)|(82)|
|**At 31 March 2022**|**8,099**|**928**|**6,014**|**-**|**15,041**|
|Net book values||||||
|**At 31 March 2022**|**17,000**|**30**|**937**|**-**|**17,967**|
|At 31 March 2021|17,110|31|1,105|-|18,246|



At the year end, The Scout Association had contractual commitments on capital projects totalling £825,661. 

56 



Notes to the financial statements (continued) 

## **12. Investment in subsidiary companies** 

|**12. Investment in subsidiary companies**||
|---|---|
||**£'000**|
|**Cost of shares**||
|Balance at 1 April 2021|500|
|Liquidation of Scout Insurance(Guernsey)Limited|(100)|
|Balance at 31 March 2022|**400**|



At 31 March 2022, the Association owns 100 per cent of the following unlisted companies: 

||**Country of incorporation**|**Company number**|**Issued share capital**|
|---|---|---|---|
|Scout Shops Limited|England & Wales|01101498|£200,000|
|Scout Insurance Services Limited|England & Wales|05038294|£100,000|
|Scout Services Limited|England & Wales|01920846|£100|
|World Scout Shop Limited|England & Wales|07767748|£100,000|
|Unity Insurance Services Limited (dormant) England & Wales||06093321|£1|
|Scout Products Limited|England & Wales|13214240|£100|



The Boards of Directors of Scout Shops Limited, World Scout Shop Limited, Scout Services Limited and Scout Insurance Services Limited have covenanted their companies' distributable profits to the Association. 

Following a request from the Trustees, the Board of Scout Insurance Guernsey Limited (which had operated as a captive insurance company) resolved to dissolve the company and transfer all liabilities and assets to the Association which occurred with effect from 9 December 2021. 

The principle activities of each subsidiary is as follows: Scout Shops Limited Sale and distribution of merchandise Scout Insurance Services Limited Insurance broker Scout Services Limited Sponsorship and marketing services for The Scout Association and other commercial activities 

World Scout Shop Limited Scout Products Limited 

Sale and distribution of World Scout Organisation branded merchandise Procurement and supply of Scout Shops products for The Scout Association 

57 



Notes to the financial statements (continued) 

## **12a. Investment in Subsidiaries** 

The summarised profit and loss accounts and balance sheet totals for the active trading subsidiary companies are shown below: 

||||||||**2022**|2021|
|---|---|---|---|---|---|---|---|---|
|||||**Scout**||**Scout**|||
||**Scout**|<br>**World**|**Scout**|**Insurance**|<br>**Scout**|**Insurance**|||
||**Shops**|<br>**Scout Shop**|**Services**|**Services**|<br>**Products**|**(Guernsey)**|||
||**Limited**|<br>**Limited**|**Limited**|**Limited**|<br>**Limited**|**Limited**|**Total**|Total|
||**£'000**|<br>**£'000**|**£'000**|**£'000**|<br>**£'000**|**£'000**|**£'000**|£'000|
|Trading income|9,049|<br>190|977|2,453|<br>94|(88)|**12,675**|6,215|
|Cost of sales|(5,859)|(68)|(531)|-|<br>(91)|(336)|**(6,885)**|(2,748)|
|Gross profit|3,190|<br>122|446|2,453|<br>3|(424)|**5,790**|3,467|
|Other income|-|<br>-|-|-|<br>-|3|**3**|101|
|Other costs and expenses|-|<br>(104)|(195)|(1,452)|-|-|**(1,751)**|(3,728)|
|Surplus/(deficit) before taxation|3,190|<br>18|251|1,001|<br>3|(421)|**4,042**|(160)|
|Taxation|(195)|<br>(1)|-|-|<br>-|-|**(196)**|-|
|Dividend/donation to the|||||||||
|Association|(2,019)|-|-|(999)|-|-|**(3,018)**|(983)|
|Net surplus/(deficit)|976|<br>17|251|2|<br>3|(421)|**828**|(1,143)|
|Netgain/(loss)on investments|-|<br>-|-|-|<br>-|-|**-**|5|
|Retained surplus/(deficit)|976|<br>17|251|2|<br>3|(421)|**828**|(1,138)|
|Surplus distributed on|||||||||
|liquidation|-|<br>-|-|-|<br>-|(2,492)|**(2,492)**|-|
|Consolidation adjustments|-|<br>-|-|-|<br>-|-|**-**|129|
|**Net movement in funds**|976|<br>17|251|2|<br>3|(2,913)|**(1,664)**|(1,009)|
|**Shareholders’ funds**|||||||||
|Share capital|200|<br>100|0|100|<br>-|-|**400**|500|
|Reserves|500|<br>1|(125)|54|<br>4|-|**434**|2,098|
|**Fund balances as at 31 March**|||||||||
|**2022**|700|<br>101|(125)|154|<br>4|-|**834**|2,598|
|**13. Fixed asset investments**|||||||||
|||||**Consolidated**|||**The Association**||
||||**2022**||2021|**2022**||2021|
||||**£'000**|£'000||**£'000**||£'000|
|**Listed investments**|||**24,429**|14,134||**24,429**||9,475|
|**Bank deposits**|||**25,000**||-|**25,000**||-|
|**Investmentproperties**|||**-**|46,000||**-**||46,000|
|**Market value at 31 March 2022**|||**49,429**|60,134<br>||**49,429**||55,475|
|**Listed investments**|||||||||
|||||**Consolidated**|||**The Association**||
||||**2022**||2021|**2022**||2021|
||||**£'000**|£'000||**£'000**||£'000|
|Market value at 1 April 2021|||**14,134**|14,751||**9,475**||8,793|
|Acquisitions at cost|||**15,000**||-|**15,000**||-|
|Disposal proceeds|||**(4,659)**|(2,304)||**-**||(1,000)|
|Netgain/(loss)on revaluation|||**(46)**|1,687||**(46)**||1,682|
|**Market value at 31 March 2022**|||**24,429**|14,134<br>||**24,429**||9,475|
|**Historical cost at 31 March 2022**|||**24,007**|16,951||**24,007**||9,007|



58 



Notes to the financial statements (continued) 

All the listed investments are classified as tier 1 in the fair value hierarchy, being quoted prices in an active market. The investments have a credit rating of at least A.  The listed investments are subject to market risk, with their value changing as market prices change. The Scout Association holds listed investments in support of the reserves policy and in 2021 Scout Insurance (Guernsey) Limited held investments for the purposes of insurance activities. 

The Association paid £25,015 investment management fees and commission charges to Cazenove Capital Management during the year (2021: £8,000). 

|**Investment properties**||**Consolidated and**|
|---|---|---|
|||**The Association**|
||**2022**|2021|
||**£'000**|£'000|
|Market value at 1 April 2021|**46,000**|36,200|
|Acquisitions at cost|**-**|5|
|Disposal proceeds|**(46,000)**|-|
|Netgain/(loss)on revaluation|**-**|9,795|
|**Market value at 31 March 2022**|**-**|46,000|
|**Historical cost at 31 March 2022**|**-**|5,190|



The investment property at 65 Queens Gate, Baden-Powell House was sold in August 2021 for £46 million. 

## **14. Stocks** 

|**14. Stocks**|||||
|---|---|---|---|---|
|||**Consolidated**||**The Association**|
||**2022**|2021|**2022**|2021|
||**£'000**|£'000|**£'000**|£'000|
|Goods for resale|**1,154**|1,917|**99**|120|
|**15. Debtors**|||||
|||**Consolidated**||**The Association**|
||**2022**|2021|**2022**|2021|
||**£'000**|£'000|**£'000**|£'000|
|Trade debtors|**1,815**|641|**896**|708|
|Amounts owed by subsidiaries|**-**|-|**4,190**|2,310|
|Prepayments and accrued income|**1,730**|3,333|**1,137**|3,691|
|Other debtors|**2,154**|825|**1,844**|280|
|Debtors due within one year|**5,699**|4,799|**8,067**|6,989|
|Debtors due in more than one year:|||||
|Amounts owed by subsidiaries|**-**|-||2,260|
|Other debtors|**374**|1,772|**374**|1,772|
||**6,073**|6,571|**8,441**|11,021|



Other debtors includes secured, interest bearing loans made to Scout Groups. These are repayable as shown below. 

|||**Consolidated and**|
|---|---|---|
|||**The Association**|
||**2022**|2021|
||**£'000**|£'000|
|Within one year|**126**|126|
|Between 2024 and 2030|**374**|572|
||**500**|698|



59 



Notes to the financial statements (continued) 

## **16. Current asset investments** 

The Association holds short-term deposits with Royal London Asset Management, and a bank current account with Barclays, which back amounts deposited by Scout Groups in the Short Term Investment Service. 

|||**Consolidated and**|
|---|---|---|
|||**The Association**|
||**2022**|2021|
||**£'000**|£'000|
|Market value at 1 April 2021|**8,586**|11,542|
|Net movement in deposits for the year|**2,325**|(361)|
|Net(loss)on revaluation at 31 March|**(46)**|(27)|
|Market value at 31 March 2022|**10,865**|11,154|



## **17. Creditors** 

|**17. Creditors**|||||
|---|---|---|---|---|
|||**Consolidated**||**The Association**|
||**2022**|2021|**2022**|2021|
||**£'000**|£'000|**£'000**|£'000|
|**Amounts falling due within one year**|||||
|Deposits by Scout Groups in the Short|||||
|Term|||||
|Investment Service|**11,287**|11,118|**11,287**|11,118|
|Trade creditors|**3,052**|2,257|**1,198**|986|
|Amounts owed to subsidiaries|**-**|-|**-**|1,002|
|Loans|**-**|600|**-**|-|
|Other creditors|**5,967**|3,855|**4,880**|3,016|
||**20,306**|17,830|**17,365**|16,122|
|**Amounts falling after more than one year**|||||
|Loans|**-**|2,400||**-**|
||**-**|2,400||**-**|



Scout Shops Limited arranged a £3m loan under the government Coronavirus Business Interruption Loan Scheme with Barclays Bank, secured by a guarantee from The Scout Association. The loan was repayable in quarterly instalments over 5 years commencing September 2021. Interest was charged at 2.3% above a floating base rate commencing in September 2021. The loan was prepaid in full in December 2021. 

60 



Notes to the financial statements (continued) 

## **18. Provisions for liabilities and contingent liabilities** 

||**Consolidated and**|
|---|---|
||**The Association**|
||**Claims provision**|
||**£'000**|
|**Movements for the year to 31 March 2022**||
|Balance at 31 March 2021|**4,026**|
|Provision utilised|**(892)**|
|Provision released|**(2,022)**|
|Additional provision|**3,206**|
|**Balance at 31 March 2022**|**4,318**|
|Movements for the year to 31 March 2021||
|Balance at 31 March 2020|<br>5,252|
|Provision utilised|<br>(1,022)|
|Provision released|(2,932)|
|Additional provision|<br>2,728|
|Balance at 31 March 2021|<br>4,026|



The Association puts young people first and their safeguarding and safety is paramount, but with the nature of our work there are claims made against the Scout Association. Taking account of legal advice, provision is made on a best estimates basis for those claims of which the Association is aware and for which it is assessed it is probable that the Association will be liable. Such claims are covered in part by commercial insurance policies and, in relation to the Association itself in the prior year, by insurance policies issued 

by Scout Insurance (Guernsey) Limited. The amount receivable from insurers to the extent that provision has been made is included in debtors. 

In addition it is the Association’s experience that incidents and/or claims may still be notified to the Association for events which occurred prior to 31 March 2022. Since the nature of any such incident or claim is not yet known, it is not possible for the Association to determine whether it is probable that the Association will be held liable or to 

estimate the amount of any consequential outflow of economic benefits. Therefore there exists an unquantifiable contingent liability in respect of such incidents and/or claims. As noted above the Association has arranged cover with commercial insurers for such claims and accordingly the Association is satisfied that any such claims that might arise would not present a significant financial risk to the Association. 

61 



Notes to the financial statements (continued) 

## **19. Fund Balances** 

## **a. Reconciliation of movement in funds** 

|**19. Fund Balances**<br>**a. Reconciliation of movement in funds**|||||||
|---|---|---|---|---|---|---|
||**Balance**|||||**Balance**|
||**1 April**||||**Gains and**|**31 March**|
||**2021**|**Income**|**Expenditure**|**Transfers**|**losses**|**2022**|
||**£'000**|**£'000**|**£'000**|**£'000**|**£'000**|**£'000**|
|**Group and charity**|||||||
|**Endowment funds**|||||||
|1914 Endowment Fund|1,029|-|-|-|27|**1,056**|
|King George VI Leadership Fund|763|9|(3)|-|20|**789**|
|All other funds|339|1|-|-|9|**349**|
||2,131|10|(3)|-|56|**2,194**|
|**Restricted funds**|||||||
|International Fund|153|6|(1)|-|-|**158**|
|Benevolent Fund|137|2|-|(100)|-|**39**|
|Benevolent Fund – Squirrels in the Nations|-|-|(10)|100|-|**90**|
|Cornwell Memorial|192|4|(3)|-|-|**193**|
|Gilwell Development|130|34|(21)|-|-|**143**|
|Pears Foundation Big Lottery Fund|151|-|(6)|(86)|-|**59**|
|Green Recovery Fund (YHA)|-|379|(369)|-|-|**10**|
|Mercers Early Years|104|90|(190)|-|-|**4**|
|Financial Capabilities (HSBC UK)|88|83|(29)|-|-|**142**|
|DofE Diamond Fund|24|-|(18)|-|-|**6**|
|Race Round the World|225|(28)|(193)|(4)|-|**-**|
|Pears Volunteer Onboarding|-|310|(277)|30|-|**63**|
|Nominet - Digital Skills Framework|131|120|(102)|-|-|**149**|
|Safeguarding during COVID-19 (NLCF)|-|53|(43)|-|-|**10**|
|Kickstarter (DWP) Project|-|67|(76)|-|-|**(9)**|
|Digital Skills (CAST)|2|-|-|-|-|**2**|
|Recovery Fund Nations Support (Pears)|-|100|(93)|-|-|**7**|
|Local Development Funds|713|1,394|(1,610)|136|-|**633**|
|All other funds|1,195|1,187|(126)|11|-|**2,267**|
||3,245|3,801|(3,167)|87|-|**3,966**|
|**Designated funds**|||||||
|Fixed assets|24,498|-|-|(144)|-|**24,354**|
|World Scout events|1,078|-|-|(18)|-|**1,060**|
|Future growth|-|-|-|8|-|**8**|
|Gilwell Park buildings|149|-|-|-|-|**149**|
|Hardship Fund|-|546|(351)|4|-|**199**|
|Capital development|-|-|-|-|-|**-**|
||25,725|546|(351)|(150)|-|**25,770**|
|**Unrestricted funds**|||||||
|General funds|57,162|18,989|(18,714)|63|(147)|**57,353**|
|Pension reserve|(4,922)|-|291|-|3,202|**(1,429)**|
||52,240|18,989|(18,423)|63|3,055|**55,924**|
|**Total charity funds**|**83,341**|**23,346**|**(21,944)**|**-**|**3,111**|**87,854**|
|**Group**|||||||
|**Non-charitable trading funds**|||||||
|Tradingsubsidiaries|2,098|6,667|(8,331)|-|-|**434**|
||2,098|6,667|(8,331)|-|-|**434**|
|**Total group funds**|**85,439**|**30,013**|**(30,275)**|**-**|**3,111**|**88,288**|



62 



Notes to the financial statements (continued) 

## **a. Reconciliation of movement in funds for 2020/21** 

||**Restated**|||||**Restated**|
|---|---|---|---|---|---|---|
||**Balance**|||||**Balance**|
||**1 April**||||**Gains and**|**31 March**|
||**2020**|**Income**|**Expenditure**|**Transfers**|**losses**|**2021**|
||**£'000**|**£'000**|**£'000**|**£'000**|**£'000**|**£'000**|
|**Group and charity**|||||||
|**Endowment funds**|||||||
|1914 Endowment Fund|864|-|-|-|165|1,029|
|King George VI Leadership Fund|788|9|(10)|(24)|-|763|
|All other funds|284|1|-|-|54|339|
||1,936|10|(10)|(24)|219|2,131|
|**Restricted funds**|||||||
|International Fund|148|5|-|-|-|153|
|Benevolent Fund|145|2|(10)|-|-|137|
|Cornwell Memorial|189|4|(1)|-|-|192|
|Gilwell Development|69|67|(6)|-|-|130|
|Pears Foundation Big Lottery Fund|429|164|(480)|38|-|151|
|NCS Partnership Project|110|(86)|(114)|90|-|-|
|Mercers Early Years|103|81|(80)|-|-|104|
|Financial Capabilities (HSBC UK)|79|71|(50)|(12)|-|88|
|DfE Diamond Fund|60|-|(36)|-|-|24|
|Race Round the World|-|742|(571)|54|-|225|
|Pears Community Match Fund|-|1,051|(1,051)|-|-|-|
|Nominet - Digital Skills Framework|-|131|-|-|-|131|
|Safeguarding during COVID-19 (NLCF)|-|98|(98)|-|-|-|
|COVID-19 Mass Testing Activities (DHSC)|<br>-|30|(30)|-|-|-|
|Digital Skills (CAST)|-|27|(25)|-|-|2|
|LXS Discovery Project|-|-|(24)|24|-|-|
|Local Development Funds|668|851|(1,001)|195|-|713|
|All other funds|1,203|492|(218)|(282)|-|1,195|
||3,203|3,730|(3,795)|107|-|3,245|
|**Designated funds**|||||||
|Fixed assets|26,231|-|-|(1,733)|-|24,498|
|World Scout events|1,080|-|(2)|-|-|1,078|
|Future growth|10|-|(21)|11|-|-|
|Gilwell Park buildings|149|-|-|-|-|149|
|Capital development|280|-|-|(280)|-|-|
||27,750|-|(23)|(2,002)|-|25,725|
|**Unrestricted funds**|||||||
|General funds|42,639|17,638|(16,265)|1,919|11,231|57,162|
|Pension reserve|(4,832)|-|351|-|(441)|(4,922)|
||37,807|17,638|(15,914)|1,919|10,790|52,240|
|**Total charity funds**|70,696|21,378|(19,742)|-|11,009|83,341|
|**Group**|||||||
|**Non-charitable trading funds**|||||||
|Trading subsidiaries|3,107|5,770|(6,784)|-|5|2,098|
||3,107|5,770|(6,784)||5|2,098|
|**Totalgroup funds**|73,803|27,148|(26,526)|-|11,014|85,439|



63 



Notes to the financial statements (continued) 

## **b. Endowment funds - Consolidated and the Association** 

Endowment funds include the 1914 Endowment Fund, the King George VI Leadership Fund and 8 (2021: 6) other funds administered by the Association. 

Income from the 1914 Endowment Fund and two others is unrestricted and credited to the General Fund. 

Income from two funds is restricted and income from the remaining fund is paid to an external Scouting beneficiary. 

## **c. Restricted funds - Consolidated and the Association** 

The main restricted funds are shown in note 18(a), comprising national and local development funds. 

Further details of the funds available, and the process of applying to them for grants, are to be found at www.scouts.org.uk/grants. 

## **d. Designated funds - Consolidated and the Association** 

The fixed asset fund represents the value of the Association's tangible fixed assets, goodwill & licences, and heritage assets. 

The World Scout Events Fund provides support to members attending World Scouting events, such as World Jamborees, the World Moot and the World Scout Conference. 

The Capital Development Fund represents capital projects that have been approved by the Finance Committee to improve the safeguarding and operations of the charity, where the future commitment has not been incurred at the year end. 

## **e. Analysis of net assets between funds** 

|**31 March 2022**|**Unrestricted**|**Restricted**|**Endowment**|**Total**|
|---|---|---|---|---|
||**£'000**|**£'000**|**£'000**|**£'000**|
|<br>Intangible fixed assets|3,057|-|-|**3,057**|
|Heritage assets|3,553|-|-|**3,553**|
|Tangible fixed assets|18,100|-|-|**18,100**|
|Investments|47,235|-|2,194|**49,429**|
|Current assets|24,949|15,253|-|**40,202**|
|Creditors|(9,019)|(11,287)|-|**(20,306)**|
|Provisions for liabilities|(4,318)|-|-|**(4,318)**|
|Pension liability|(1,429)|-|-|**(1,429)**|
||**82,128**|**3,966**|**2,194**|**88,288**|
|||||Restated|
|31 March 2021|Unrestricted|Restricted|Endowment|Total|
||£'000|£'000|£'000|£'000|
|Intangible fixed assets|2,981|-|-|2,981|
|Heritage assets|3,553|-|-|3,553|
|Tangible fixed assets|18,410|-|-|18,410|
|Investments|58,003|-|2,131|60,134|
|Current assets|15,176|14,363|-|29,539|
|Creditors|(9,112)|(11,118)|-|(20,230)|
|Provisions for liabilities|(4,026)|-|-|(4,026)|
|Pension liability|(4,922)|-|-|(4,922)|
||80,063|3,245|2,131|85,439|



64 



Notes to the financial statements (continued) 

## **20. Other financial commitments and authorised expenditure** 

||**2022**|2021|
|---|---|---|
||**£'000**|£'000|
|At 31 March 2022, the Group had the following minimum  lease|||
|payment obligations under non-cancellable operating leases.|||
|Not later than one year|**200**|140|
|Later than oneyear and not later than fiveyears|**429**|211|
|**Total**|**629**|351|



At 31 March 2022 there was no capital expenditure authorised but not committed (2021: £nil). 

## **21. Events occurring after the reporting period** 

There have been no material events occurring after the reporting period. 

## **22. Related party transactions** 

During the year 15 Trustees (2021: 2 Trustees) were reimbursed £4,281 expenses (2021: £300) for travel and subsistence, incurred in their attending meetings and in the carrying out of their duties. Note 6 refers to trustee remuneration. 

Transactions with the defined benefit pension scheme comprised agreed ongoing, deficit and administration payments of £617,000 (2021: £722,000) and in 2021 a one-off £2,000,000 deficit payment in accordance with the agreed deficit reduction plan. 

Transactions with subsidiaries: 

|Transactions with subsidiaries:||||||
|---|---|---|---|---|---|
||**Sales made by**|**Management**|**Purchases**|**Amounts due**|**Amounts due**|
||**TSA to**|**charges to**|**from**|**from related**|**to related**|
||**related**|**related**|**related**|**party at**|**party at**|
|**Entity**|**party**|**party**|**party**|**31 March 2022**|**31 March 2022**|
||**£'000**|**£'000**|**£'000**|**£'000**|**£'000**|
|Scout Shops Limited|-|70|-|1,632|-|
|Scout Services Limited|-|125|-|1,161|-|
|Scout Insurance Services Limited|-|-|110|1,340|-|
|Scout Products Limited|-|11|-|93|-|



## **23. Restatement of Systems Development** 

The balance sheet at 31 March 2021 has been restated to reflect the reclassification of Systems Development as Intangible Fixed Assets 

65 



## Our members 

## **Census results for the year ending 31 January 2022** 

|**Youth membership**|**Male**|**Female**|**Self-**|**Prefer**|**Total**|**Notes**|
|---|---|---|---|---|---|---|
||||**identify**|**not to say**|||
|Squirrel Scouts|2,293|1,050|1|4|3,348||
|Beaver Scouts|83,371|24,097|16|798|108,282||
|Cub Scouts|105,616|31,432|39|719|137,806||
|Scouts|88,948|32,683|150|554|122,335||
|Explorer Scouts|27,095|13,635|255|241|41,226||
|Network Members|5,522|3,263|11|58|8,854|1|
||312,845|106,160|472|2,374|421,851||
|**Adult membership (listing the main role category for each**||**adult volunteer)**|||||
|Section leadership team members|40,845|35,978|93|179|77,095||
|Plus Young Leaders|9,581|5,668|95|50|15,394|2|
|Manager roles|4,426|2,215|1|8|6,650|3|
|Governance roles|14,268|15,906|8|54|30,236|4|
|Support roles|15,164|10,319|9|55|25,547|5|
||74,703|64,418|111|296|139,528||
|**Total membership**|**387,548**|**170,578**|**583**|**2,670**|**561,379**||



## **Our operation comprises** 

|**Our operation comprises**||
|---|---|
|Squirrel Scout Dreys|382|
|Beaver Scout Colonies|7,544|
|Cub Scout Packs|7,921|
|Scout Troops|7,228|
|Explorer Scout Units, including Young Leader Units|3,037|
|Scout Networks|578|
|Scout Active Support Units|1,659|
|Groups|7,272|
|Districts|639|
|Counties, Regions (Scottish), Areas, Islands|90|



1. As well as the 8,854 Network members, 5,676 also have another ‘adult’ role (in a section, governance or support role). This means the total number of persons who are Network members is 14,530. 

2. Young Leaders (aged 14-18) are included in the Explorer Scout numbers above. However, they’re also members of their Section Leadership Team, so the total membership of Section Leadership Teams is 92,489. 

3. Manager roles have the responsibility and authority to ensure effective operation of their charity (the Scout Group, the Scout District, etc.), so our charitable objectives are met. They are Group Scout Leaders, District and County Commissioners and others. 

4. Governance roles form the membership of each charity's Board of Trustees or Executive Committee, together with any subcommittees. Each Board of Trustees is responsible for making sure the strategic direction of the charity is achieved. The 30,236 Governance roles don’t include the volunteers who have an Ex Officio Trustee role (for example Lead Managers, Youth Commissioners and others). 

5. Support roles are vital for supporting the line managers in the effective operation of Scouts, and contribute to the effective operation of each Colony, Pack, Troop, Unit and Network. 

66 



## How we operate 

The Scout Association exists by authority of a Royal Charter granted by King George V in 1912 and supplemented by further Charters granted by King George VI and Queen Elizabeth II. These Charters give authority to the Bye-Laws of the Association, which are approved by Her Majesty’s Privy Council. The Bye Laws, in turn, authorise the making of rules for the regulation of the Association’s affairs. The rules are laid out in the Association’s Policy, Organisation and Rules. 

This report and financial statements cover the activities directly controlled by the Association – charity numbers 306101 (England and Wales) and SCO38437 (Scotland). This includes its six wholly owned subsidiary companies – Scout Shops Limited, Scout Insurance Services Limited, Scout Insurance (Guernsey) Limited, Scout Services Limited, Scout Products Limited and World Scout Shop Limited (see note 12 to the financial statements for further information on these Companies). During the year, Scout Insurance (Gurnsey) Limited was liquidated. All processes were completed, and the assets and liabilities were transferred to The Scout Association as at 9 December 2021. 

The activities of the Scout Councils of Northern Ireland, Scotland and Wales together with Scout Counties, Areas, Regions (Scotland), Districts and Groups are not reflected in this report and accounts. These bodies are autonomous charities affiliated to the Association, which together form the Scout Movement in the United Kingdom. 

## **The Board of Trustees** 

The management of the Association’s business is vested in the Board of Trustees. The Board has 20 members: 

- 12 members nominated and elected by the Council of The Scout Association at the AGM: nine elected members and three elected youth members 

- 5 members appointed by the Council at the AGM on the recommendation of the Board: the Chair of the Board, 

the Treasurer and up to three others 

- 3 Ex-Officio Members, the Chief Executive and UK Chief Commissioner, and the UK Youth Commissioner. 

We provide an induction for all new Trustees and all Trustees take part in further training and development opportunities throughout the year. 

In 2021-22, this included a training and development session, which focused on one or more areas material to the Association’s business, including: 

1. Risk Management 

2. Safety 

3. Charity Finance and the associated responsibilities of the Board 

4. Race Equity workshops 

The Board’s responsibility includes policy making and oversight of risk management. It delegates the day-today management of the Association to the Chief Executive and UK Chief Commissioner, who work in partnership with the UK Chief Commissioner’s Team, (UK Leadership Team), the UK Youth Commissioner and his team, and the Executive Leadership Team. 

The Board also delegates certain functions to the six Committees which report to it (Strategy and Delivery, Finance, People and Culture, Nominations and Governance, Safeguarding, and Safety). The Board appoints Trustees to serve on these Committees annually, with the Committee Chair having a three-year term, subject to performance and their continuation as a Trustee. The Board met nine times formally during 2021/22. 

## **Policies and rules** 

The Association has a comprehensive set of policies and rules applicable to the movement, which are regularly reviewed by senior volunteers, senior management and staff employed across the UK. We’re committed to providing the best possible experience for everyone in Scouts, whether they’re young people or adult 

67 



volunteers. To help us achieve this, we work to a number of key policies, through which we can make sure that Scouts continues to develop in a way that’s safe, accessible and free from discrimination. 

throughout the year. The safety and safeguarding of young people involved in Scouts are our highest priorities. 

Other major risks to the organisation include: 

An agreed risk management framework is used by the movement, which enables local Executive Committees to deliver their risk management responsibilities based on guidance from the Charity Commission. 

Our key policies include: 

- Equal opportunities policy 

- Privacy and data protection policy 

- Religious policy 

   - Safeguarding policy 

- 

- Safety policy 

   - Vetting policy 

- 

- Youth member anti-bullying policy 

## **Risk management** 

The Board of Trustees is responsible for identifying, assessing and managing the risks of The Scout Association and its subsidiaries. The Board of Trustees and its committees operate a comprehensive risk management process to make sure that appropriate steps are taken to manage and mitigate governance, external, operational (including safety and safeguarding), legal/regulatory and financial risks. The undertaking of Scouts activities requires risk identification and its reasonable mitigation, to make sure our charitable objectives are achieved. 

The process involves the identification and grouping of the risks that the Association faces, both directly and indirectly, through the activities of the movement more generally. It includes evaluating the risks in terms of their potential impact and likelihood to occur, as well as considering the Association’s appetite for those risks, and identifying means whereby they can be mitigated and managed. 

Responsibility for risk management is assigned to members of the Executive Leadership Team, UK Leadership Team (senior volunteers) and Chairs of the Board’s reporting committees, as well as the Boards of its subsidiaries. 

The Board reviews its major risks 

- Public Trust – reputational damage due to public perception, historical issues or external factors. 

   - Growth 

- 

- Data security, specifically an information security breach 

   - Digital delivery and adoption 

- 

- Equity, Diversity and Inclusion 

- Management and Oversight of our federated structure 

In all cases, the above risks are either being mitigated or controlled. All risks have been reviewed and adapted in light of the COVID-19 pandemic. 

A recently identified risk is around ensuring we have the right working culture and employer offer to recruit and retain talent. The Board has referred this to the People and Culture Committee for consideration and oversight, and the risk will be added to the Corporate Risk Register. 

The overall risk framework is now overseen and regularly monitored by the Board. Individual significant risks will continue to be allocated to the appropriate Board committees. 

The risk framework, due in part to the impact of COVID-19, was thoroughly reviewed in March 2021. Revisions were made, which were approved by the Board. Since then, more detailed work has been done to make sure the framework provides an effective risk and control environment, utilised by all senior staff, UK Leadership Team and members of the Board and its committees. Work is ongoing to continuously review the framework, and individual risks to ensure they provide adequate information to the Board. This enables trustees to have the proper oversight and reassurance that risks are being effectively managed. 

## **Risk Appetite** 

The Board reviews the risk appetite of each corporate level risk annually to determine the individual tolerance level, and what happens when thresholds are breached. 

While accepting risk in Scouting activities can never be entirely eliminated, given the nature of the activities undertaken, we seek to minimise the potential for serious harm to be caused to young people and members to the greatest extent feasible. 

However, The Scout Association has a high appetite for opportunities for membership growth, and would be comfortable taking more risk in this area. 

## **Safeguarding** 

Safeguarding is the golden thread throughout Scouts. Our number one priority is keeping young people in our care safe from harm. 

We believe an open and transparent culture of challenge is how we protect our young people. Our Yellow Card Code of Practice for adults in Scouts is embedded in everything we do. We always make sure everyone knows about this card, including young people and parents. It’s a priority that they’re clear about the expectations and behaviours of our volunteers, and know exactly what to do if the code isn’t being followed. 

At Scouts, we have a centralised national safeguarding team. They deal with all safeguarding, welfare and suitability referrals, covering adults and young people. As part of our safeguarding processes, a key aspect of the team’s work is liaising closely with all statutory agencies. 

The safeguarding team’s made up of professionals who’ve been involved in safeguarding practice before. This includes social workers, ex-child protection police officers, probation 

68 



officers, early years practitioners and education professionals. 

We’re always striving to improve our team, and recent changes include: 

- More investment 

- Increasing our management capacity, ensuring there’s good quality supervision 

- Management oversight, and a robust quality assurance programme. This includes external scrutiny by an independent company who specialises in safeguarding 

- Building on our open culture of transparency and challenge 

As part of our safer recruitment processes, we’re still working with the Disclosure and Barring Service, Disclosure Scotland, and AccessNI. 

We refresh our safeguarding training and support material to make sure they’re current. Every three years, volunteers need to complete mandatory safeguarding training. This training is validated online, and each volunteer needs a 100% pass rate to get certification. Volunteers in commissioner roles do additional management safeguarding training. 

Each quarter, the Board of Trustees receives a safeguarding report. Scouts has a strong Safeguarding Committee, that’s chaired by a Trustee with extensive experience in safeguarding. The committee also has external safeguarding experts. 

The Safeguarding Committee is given regular performance data. They make sure it’s used effectively, to improve practice, make appropriate changes to training, and make sure lessons learnt are effectively implemented. 

We continue to engage with the wider sector, sharing best practice, and have presented at national conferences on our safeguarding arrangements and governance as examples of best practice. We also work in partnership with government bodies, so we’re always at the forefront of safeguarding practice. 

## **Safety** 

Along with safeguarding, safety is a golden thread throughout Scouts. Our number one priority is keeping young people in our care safe from harm. 

To achieve this, we have a range of measures in place. These include: 

- Our Safety Policy: As part of our key policies, our Safety Policy clearly outlines the commitment to safety expected from everyone in Scouts. It helps make sure everyone plays their part in keeping young people safe. The Safety Policy is reviewed each year, and it’s informed by wider sector best practice. 

– Safety Committee: Scouts has a Safety Committee, which reports directly to the Board of Trustees. It also reports to people whose responsibility it is to provide leadership, and oversee safety policies, procedures and rules that are provided to our volunteers. It’s chaired by an external appointee, who has significant professional experience of health and safety management, and who’s also a Trustee. The Safety Committee’s made up of different individuals, who all have extensive experience in health and safety across a number of sectors. 

– Each quarter, the Board of Trustees gets an update on safety matters, including 

– Incident statistics, training and compliance reports at their meeting. Each year, the Board is given a full report of Safety Committee activities, along with a detailed overview of trends and statistics. 

- We know it’s important to keep learning from experience, and making sure we have robust responses when incidents arise. All throughout the movement, this approach is embedded in our culture and systems. The 

Safety Committee has processes and procedures in place to gather data about incidents, and to consider that data carefully to make improvements. 

This year, we have increased investment in the Safe Scouting team, appointing a new Head of Safety, HQ Safety Manager and 3 further Safety and Compliance Officers. These appointments mean we can greatly increase our support across the movement, and develop our commitment to safe Scouting. We’ve led and supported a return to safe Scouting, while dealing with everchanging challenges posed by the COVID-19 pandemic. We also focus on the delivery of risk assessments. We’ve reviewed the Policy, Organisation and Rules, guidance and supporting templates, and we’ve delivered briefings and training sessions to support members. 

## **Fundraising: our approach** 

Section 162A of the Charities Act 2011 requires charities to make a statement regarding fundraising activities. 

The day-to-day management of all income generation’s delegated to the Executive Leadership Team, which is accountable to the Board of Trustees. 

We take the protection of our supporters and donors’ personal data very seriously: we never use personal data in any way that they don’t wish us to. We always provide them with the opportunity to change their minds if they no longer want to receive communications; we never share or sell their data; and we don’t contact anyone, if we know they don’t want us to. 

Although we don’t receive widespread fundraising from the general public, we do enter into Commercial Participator Agreements with commercial partners who sponsor a variety of our programmes, and this activity is fundraising for the purpose of section 162A of the Charities Act 2011. We also receive legacies, grant funding and donations, 

69 



which are presented in our accounts as ‘voluntary income’. We make sure that no one’s ever pressured to leave us a legacy or donate any funds. 

The charity, nor any person acting on its behalf, has been subject to any undertaking to be bound by any voluntary scheme for regulating fundraising. We’re a member of the Chartered Institute of Fundraising regulated by the Fundraising Regulator, and comply with the standards in the Fundraising Regulator’s Code of Fundraising Practice, as well as all other relevant legislation codes of practice and guidance. All staff involved in fundraising are made aware of, and the need to comply with, the requirements of relevant fundraising legislation and codes of practice. 

We’ve received no complaints on our fundraising activity. 

All our Commercial Participator Agreements include an obligation to make sure that they act at all times to protect vulnerable people from any intrusion to their privacy, and don’t make any unreasonable approaches to, or put undue pressure on, any vulnerable people to give money to the charity. This is included even if they’re not undertaking any direct public fundraising. 

We’re not aware of any failure to comply with the Fundraising Regulator’s Code of Fundraising Practice in relation to our fundraising activities, either by us, our staff, or our Commercial Participators. 

We monitor fundraising activities undertaken by our Commercial Participators. All contracts with Commercial Participators contain a provision for monitoring by us. This is usually undertaken by way of regular meetings between the parties and feedback on the progress of any fundraising activity, and an obligation to provide access to additional information and assistance as may be necessary to help us to demonstrate compliance with our duty to monitor. Where Commercial Participators are sponsors, but not undertaking any direct public fundraising, the requirement for access to additional information isn’t always deemed necessary. 

70 



Governance structure and Board membership – 1 April 2021 to 31 March 2022 

## **Founder** 

Robert Baden-Powell, OM, First Baron Baden-Powell of Gilwell 

## **Patron** 

Her Majesty The Queen 

## **Presidents** 

His Royal Highness The Duke of Kent, KG, GCMG, GCVO 

Her Royal Highness The Duchess of Cambridge, GCVO 

## **Vice Presidents** 

The Rt. Hon. The Earl of Airlie, KT, GCVO, PC 

Wayne Bulpitt CBE 

Peter Duncan 

George Purdy CBE 

Tim Kidd OBE 

## **Chief Scout** 

Lt Col (Hon) Bear Grylls RM OBE 

## **The Board of Trustees** 

The percentages indicate the number of eligible Board meetings each member attended. 

- 1 = Finance Committee Member 

- 2 = Strategy and Delivery Committee Member 

- 3 = Nominations and Governance Committee Member 

- 4 = People and Culture Committee Member 

- 5 = Safeguarding Committee Member 

- 6 = Safety Committee Member 

## **Trustees (voting)** 

Mike Ashley (100%) 1, 4 Treasurer 

Nigel Ball (100%) 3 (from September 2021) 

David Branagh (100%) 1, 3 

Craig Dewar-Willox (100%) 5 

Nicola Gamlen (100%) (until September 2021) 

Graham Haddock (100% %) 2, 3 

Carl Hankinson (100%) 2,3 UK Chief Commissioner (from September 2021) 

Gareth Jones (100%) 3 Vice Chair (from September 2021) 

Sharon Lee (100%) 6 (from September 2021) 

Dr Ann Limb CBE DL, (100%) 3 Chair of the Board (until September 2021) 

Ella MacLeod (100%) 1, 4 

Kieron Moir (100%) 2, 3, 6 Vice Chair of the Board (until September 2021) 

Jake Myatt (100%) 1 (from September 2021) 

Peter Oliver (100%) 2 

Caroline Pearce (75%) 4, 6 

Jennie Price CBE (100%) 3 Chair of the Board (from September 2021) 

Lexie Sims (100%) 4 (until September 2021) 

David Sandall (75%) 5 

Jane Simpson (100%) 6 (until September 2021) 

Busola Sodeinde (100%) 1, 4 

Liz Walker (100%) 3 

Rhiannon Wells (100%) 3 Michael Wood-Williams (100%) 1 

Ollie Wood (100%) 2, 3 UK Youth Commissioner 

Tim Kidd OBE (100%) 2, 3 UK Chief Commissioner (until September 2021) 

Matt Hyde OBE (75%) 2, 3 Chief Executive 

## **Right of attendance (non-voting)** 

The Chief Scout, the Deputy Chief Scout, the International Commissioner, any Country/Regional/ County/Area Commissioner or Chair and Chief Commissioner 

## **Invited to attend** 

Chloe Kembery 2 Director of Communications and Marketing 

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Mark Hislop 2 Director of Commercial Services 

Ross Maloney 2 Deputy Chief Executive and Chief Operating Officer 

Kris Murali 1, 2 Director of Finance and Resources Margaret Giles Company Secretary 

Apart from the Nominations and Governance Committee, all Board Committees have the Trustee members indicated above plus one or more nonTrustee members appointed for their specialist skills and at least one member who’s under the age of 25 years. 

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## Our advisers 

**Auditors:** Crowe U.K. LLP 4th Floor St James House St James Square Cheltenham GL50 3PR 

**Pension advisers:** ENTRUST Ship Canal House 98 King Street Manchester M2 4WU 

**Solicitors:** 

B **ankers:** Barclays Bank plc 1 Churchill Place London E14 5HP 

Bates Wells LLP 10 Queen Street Place London EC4R 1BE 

Kennedys **Investment Managers:** 25 Fenchurch Avenue Cazenove Capital Management London London Wall Place EC3M 5AD London EC2Y 5AU 

Sarasin & Partners UK Sarasin House 37-39 St Andrews Hill London EC4V 5DD 

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## Our thanks 

Scouts would like to thank all its volunteers and supporters for their commitment and contributions over the last year. Special thanks go to those mentioned here. 

We’d like to thank our Gilwell Fellows and supporters of Gilwell Park, UK Fellows, 1st Gilwell Park and Campfire Circle supporters, along with everybody that generously gives and raises money on our behalf throughout the year. 

## **With thanks to our valued partners:** 

Cadent, SGN, Northern Gas Networks and Wales & West Utilities 

Dungeons and Dragons 

Gas Distribution Networks 

GO Outdoors 

Gravity 

HSBC UK 

Institute of Electrical Engineering and Technology 

**Our additional thanks to:** Peter Brown FRSA FCA 

Dr Michael Kesseler 

Charles Wilson and Rowena Olegario 

## **Trusts and Foundations** 

Appreciation goes to all our valued funders: 

The Alpkit Foundation 

Aziz Foundation 

Bergman Lehane Trust 

Jaffa 

Lawn Tennis Association 

Magic the Gathering 

Manchester United Foundation 

Niantic 

Nominet 

Pets at Home 

Pokémon 

Raspberry Pi Foundation 

Rolls Royce Royal Airforce Royal Navy Royal Marines Stanley Black and Decker 

The British Army The Rail Industry UK Power Networks 

UK Space Agency Victorinox Walker Publishing Warhammer 

Department for Environment, Food and Rural Affairs 

Department for Digital, Culture, Media and Sport 

Department for Education 

Doris Field Charitable Trust 

Dudley and Geoffrey Cox Charitable Trust 

Everard Foundation 

Fowler Smith & Jones Trust 

Garfield Weston Foundation 

Islamic Relief UK 

Jack Petchey Foundation 

Leslie Sell Charitable Trust 

The Mercers’ Company Charity Masonic Charitable Foundation Muslim Charities Forum National Lottery Community Fund P F Charitable Trust 

Pears Foundation 

Peter Cruddas Foundation Privy Purse Charitable Trust Schroder Foundation Sir John Fisher Foundation 

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The Tanner Trust 

**Scout Adventurers** Darren Clarkson-King 

Trinity House 

The Duke of Edinburgh’s Award 

The Worshipful Company of Shipwrights Whirlwind Charitable Trust 

Youth United Foundation 

#iWill Fund 

## **Community Impact – ‘A Million Hands’ partners** The British Red Cross 

Crisis Inspire Mind National Autistic Society 

Save the Children 

Sean Conway Karen Darke MBE Joe Doherty Alastair Humphreys Laura Jones Rhys Jones Poldy van Lynden Mahroof Malik Robert McArthur Sal Montgomery Ben Saunders Phoebe Smith Mark Wood 

Scottish Association of Mental Health 

The Simon Community NI 

WWF 

**Other charity partners** British Youth Council 

Girlguiding UK 

National Council for Voluntary Organisations (NCVO) 

The Together Coalition 

## **Scout Ambassadors** 

Steve Backshall MBE 

Julia Bradbury 

Warwick Davis 

Chris Evans 

Dwayne Fields 

Megan Hine 

Helen Glover MBE 

Saray Khumalo 

Tim Peake CMG 

Anita Rani 

Ellie Simmonds OBE 

Ed Stafford 

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In 2019, we retained our Investors in People accreditation and achieved the prestigious Gold standard. The assessor highlighted that people really live by the organisation’s values and understand (and achieve) our strategy. Our accreditation lasts for three years: we’re working on how we set objectives and nurture ideas as we aim for Platinum, the highest level. The next review will be taking place in summer 2022. 

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## **The Scout Association** 

**Charity numbers** 306101 (England and Wales) SCO38437 (Scotland) 

**Registered address** Gilwell Park, Chingford London,  E4 7QW 

**Contact us** info.centre@scouts.org.uk 

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