Our Finances

Financial statements

The financial statements for Gasóga na hÉireann / Scouting Ireland have been prepared in accordance with the Statement of Recommended Practice (Accounting and Reporting by Charities) applicable to charities preparing their accounts in accordance with the Financial Reporting Standards applicable in the UK and Republic of Ireland (FRS 102) (effective from 1 January 2015).

These financial statements cover the activities of Gasóga na hÉireann / Scouting Ireland at a national level, including national events, Jamborees and National Scout Centres, except for Castle Saunderson which is included within a related entity, Scouting Ireland Campsites and Facilities CLG. The activities of the Scout provinces based in the Republic of Ireland are included in the financial statements of Scouting Ireland (Association). The activities of the northern Scout province are included in the financial statements of The Scout Foundation (N.I.) CLG.

Financial highlights

We cannot consider the financial position for 2020/2021 without considering the impact of Covid, which has had a significant adverse impact on membership fees, fundraising income, National Scout Centres income and national events income. These restrictions also severely impacted the activities of Groups at a local level. With that in mind, let us have a look back at last year:

• Our total income of €3.932m was down €0.819m on last year (2019/20: €4.751m) which included a €0.948m decrease in membership income over 2019/20 to €1.823m.

• Our expenditure on charitable expenditure was €4.357m, down €2.066m on last year (2019/20: €6.423m). This includes expenditure for legal provisions of €0.884m (2019/20: €2.060m).

• There was an operating loss of (€0.465m) (2019/20: (€1.727m)). As a result of this operating loss, general funds are now a negative (€5.332m) (2019/20: (€4.889m)).

• Capital expenditure for the year was €0.074m (2019/20: €0.153m).

Income

Whilst our income streams have been consistent in the past, due to Covid, it has been a challenging year, in particular for our membership and fundraising income and our National Scout Centres. However, as a result of the lifting of Covid restrictions our future prospects are now more promising and we anticipate membership numbers will increase.

Total income for the year amounted to €3.932m (2019/20: €4.751m) a decrease of 17%. This is mainly due to the fact that the membership income fell by €0.948m, fundraising income fell by €0.079m, and National Scout Centres income fell by €0.060m. We did however receive an uplift in grant funding. We are grateful to the Department of Children, Equality, Disability, Integration and Youth for the funding provided during the year of €1.367m (2019/20: €1.216m), which included our core grant and other grants for governance expenditure, the WSM 2021, a youth climate grant and a capital grant. We were also delighted to secure our first grant from The Department of Foreign Affairs -Irish Aid of €0.044m to engage young people in development education programmes as well as securing a grant from the Department of Rural and Community Development of €0.100m, which was made available to support organisations who were financially impacted by Covid.

During the year we received a donation from the Outdoor Adventure Store of €0.085m (2019/20: €0.004m) to support capital works in our Castle Saunderson National Scout Centre.

Expenditure

Expenditure on charitable activities

Expenditure on charitable activities is the largest element of expenditure and has been analysed into five categories. 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 include those activities which assist leaders and other adults involved in Scouts. Support and services to the movement includes those activities, such as insurance and safeguarding of children, which underpin the activities of Scout Groups. Hosted events include WOSM / WSF and European Scout Region activities and events which are supported by Scouting Ireland. Each of these five categories includes both direct costs and support costs. Support costs are those functions that assist the work of the charity but do not directly undertake charitable activities. The expenditure on charitable activities decreased by €2.066m to €4.357m (2019/20: €6.423m).

The costs of raising funds and other expenditure during the year amounted to €0.039m (2019/20: €0.055m), bringing total expenditure for the year to €4.397m (2019/20: €6.478m), a decrease of €2.081m.

18% 4%

33%

20%

25%

Support & Services to Members

Adult Support & Training

Development of Scouting

Youth Programme

Hosted Events

Fixed Assets

Capital investment during the year amounted to €0.074m (2019/20: €0.153m). During the year we invested in some new IT equipment.

Reserves

Reserves provide time to adjust to changing financial circumstances. They also provide parameters for future budgeting and strategic plans and contribute towards decision making. Restricted and unrestricted reserves at the end of the year decreased by €0.465m. Restricted funds are those received which have been earmarked for a special purpose by the donor or the terms of an appeal. 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 Directors for a particular purpose. On the 31st of August 2021, the unrestricted reserve was in a deficit position of (€5.332m) (2019/20: (€4.725m)). The Directors wish to increase the current level of reserves so that they are holding 3 Page | 43

to 6 months operating costs plus cover for additional potential costs. The Directors recognise that it will take time for membership numbers to recover to pre Covid levels which will have a resultant impact on income and therefore their ability to increase reserves in the short term.

Remuneration policy

The Directors consider the Board of Directors and the Senior Management Team (the Chief Executive Officer and Managers) as comprising the key management personnel of the charity in charge of directing and controlling, running, and operating the Company on a day-to-day basis. The Directors give of their time freely and no Director received remuneration in the year. Details of Directors’ expenses are disclosed in note 11 of the accounts. The pay of the Senior Management Team is reviewed annually by the CEO which takes into account market comparators, cost of living increases and the financial position of the Organisation. The Governance, Compliance, Renumerations and Nomination subcommittee is responsible for recommending to the Board any change to the CEO’s salary. The remuneration benchmark is the mid-point of the range paid for similar roles. In view of the nature of the charity, salaries are benchmarked against pay levels in other charities of a similar size run on a voluntary basis.

Forward Financial Forecast

The principal risk to the viability of the company continues to be changes in external circumstances such as a resurgence in Covid or adverse macro-economic events. At the time of approving the financial statements the Covid Pandemic is still present, however restrictions were lifted on the 22nd January 2022. This has allowed normal Scouting activities to resume and there are clear plans for resurgence and growth in our membership numbers. We look forward to returning to national and international events over the next 12 months, including the World Scout Jamboree 2023 in Korea.

The Directors have considered the viability of the company including detailed financial and cashflow projections. Based on these cashflow forecasts the Directors are satisfied that the business will remain cash positive. Therefore, the Directors have a reasonable expectation that the company has adequate resources to continue in operational existence and continue to adopt the going concern basis for accounting in preparing the financial statements of the company.