;

The 89th Annual Report of the Committee of the Council of The Scout Association for the year ended 31st March 1998.

THE SCOUT ASSOCIATION

Incorporated by Royal Charter - Registered Charity No. 306101

• Introductory Information
• Message from the Chief Scout
• Census of Membership
• Introduction by the Chairman, Committee of the Council
• Annual Report

Note a copy of the Accounts of the Association can be obtained from Headquarters.

Bankers: Barclays Bank plc, Belgravia Knightsbridge Branch, PO Box 4578, 155 Brompton Road, London SW3 1XD

Auditors: Neville Russell, Chartered Accountants, Raffety House, 2-4 Sutton Court Road, Sutton, Surrey, SM1 4TN

Investment Managers: Cazenove Fund Management, 3 Copthall Avenue, London EC2R 7BH

Investment Powers: The Association's Royal Charter authorises it to invest funds of the Association not immediately required in pursuance of its objects and to use the services of a private investment manager or firm.

Insurance Brokers: Willis Coroon, London Ltd., 10 Trinity Square, London EC3B 3AX

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 Policy, Organisation and Rules of The Scout Association.

The Aim of the Association 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.

The Method of achieving the Aim of the Association is by providing an enjoyable and attractive scheme of progressive training, based on the Scout Promise and Law.

The formal Report and Accounts cover the activities directly controlled by The Scout Association (Charity Number 306101). The activities of the Scout Councils of Northern Ireland, Scotland and Wales together with Scout Counties/Areas, Districts and Groups are not reflected in the accounts. These bodies are autonomous charities which are affiliated to The Scout Association which together form the Scout Movement in the United Kingdom.

The management of the business of the Association is vested in the Committee of the Council. The Committee comprises twelve members elected by the Council of the Association at its Annual General Meeting and ex-officio and co-opted members. The total number of ex-officio and co-opted members must not exceed the total number of elected members.

Chairmen and members of sub-Committees are appointed annually by the Committee of the Council.

Ninety years of Scouting.

A recurring theme in this year's Report is the commitment that so many adults make to Scouting. This commitment has enabled the Scout Movement to contribute to the development of young people and their communities for over 90 years: Scouting is a Movement - it must never stand still.

Our aim is to make Scouting stronger and more vibrant as we move intr) the new Millennium. In order to achieve this we are seeking new ways of taking good Scouting to more young people.

One major initiative - Going for Growth - is aimed at encouraging the development of our Movement: Action is being taken to meet the changing needs of the Scout Troops and Venture Scout Units. We know that there are young people who want to join Scouting but are prevented from doing so because of a lack of places in Beaver Scout Colonies and Cub Scout Packs in local communities. The success of our future plans will depend upon our ability to encourage even more adults to give freely of their time to help us address this demand.

A cornerstone of the Movement's success has always been the willingness of many adults to volunteer their services for a great variety of roles whether as Leaders, Administrators or Supporters. To everyone who has made a contribution to Scouting over the last year - in whatever way - I offer my thanks and those of nearly 500,000 of our young Members.

W. George Purdy (Chief Scout)

For the year ended 31 March 1998

For the year ended 31 March 1998

Scouting happens locally. The challenge facing the Committee of the Council is to help it happen better, and in more localities.

During the year, we consulted widely about the best ways of delivering more effective support to local Scouting. The very great majority of those consulted asked for better and more accessible support - but not for decentralised support services. The Committee is very grateful to all those who took the time to consider the issues, and to respond to the consultation. In response, it has confirmed the strategy of support from the centre, facilitated by an enlarged Field Commissioner service, and provided through the enhanced use of information technology and the early development of an Information Centre as a "one-stop-shop". The target is largely to complete these developments next year.

Looking slightly further ahead, the Committee submitted to the World Organisation of the Scout Movement its formal indication of interest in running the 21st World Jamboree in the UK in the year 2007, the centenary of Scouting. After the end of the reporting year, we learned that our bid was the only one on the table at the closing date - but a detailed proposal has still to be put before the World Conference in 1999. We have also worked with the Guide Association on the early stages of ensuring that our site on Brownsea Island, the birthplace of Scouting, will be ready for the onslaught of visitors from around the world that it will undoubtedly face at that time. The Committee recorded its special thanks to Ken Stevens, who has chaired the Brownsea Island Committee so ably for the last ten years.

Towards the end of the year, we anticipated the planned retirement of Bryan Lees, our Director of Finance and Marketing, and secured the services of David McCarthy as Director of Finance designate. He will succeed Bryan Lees in August 1998. During 1998/99, we shall be completing our review the Association's senior staff structure, and considering the best disposition of our offices. Indeed, at the time of writing this introduction, that work is already under way.

Our Scouting family was enlarged in September 1997 by the launch of Friends of Scouting UK, a club for supporters of Scouting targeted particularly at those who, having once bee Scouts, still want to be associated with the Movement's work The Committee was delighted that Lt Col H R [Bill] Hall was prepared to take the lead in this endeavour. The further growth of Scouting among young people continued to be the focus of our Going for Growth initiative; and the Committee' work on coeducation has moved forward to the extent that Scouting in the UK can now genuinely claim to be beginning to be a truly co-educational Association.

As the year drew to a close, we were preparing for a unique gala occasion in London, graced among others by Her Majesty the Queen, the Duke of Edinburgh, King Constantine and Queen Marie of Greece, King Carl Gustaf of Sweden, and the Duke of Kent. We were joined by Scouting colleagues from around the world at a function designed to celebrate 90 years of Scouting in the UK and world-wide. The stewards were members of the Queen's Scouts Working Party, and the entertainers a small selection of our own, very talented, young people. It was terrific!

The special badge produced for that event said simply Prepared for the Future. We are: we will be.

Contribute: to give along with others; to give for a common purpose; to add towards a common result, to a fund etc.; to give or bear a part; to be a contributor.

Making a contribution ...

We are talking about encouraging young people, we are talking about enthusing young people, we are talking about training and educating young people. And what we are talking about most of all is bridging the gap between what they are and what they have it in themselves to become.

The report this year looks at some of the many ways in which Scouting contributes to society.

...to half a million young people

Scouting quietly celebrated the major milestone of its 90th birthday this year in a time of growth and change. Far from becoming stalled by tradition there is much vigorous development within the Movement. Nearly 10,000 Scout Groups in local communities throughout Britain help half a million youngsters - boys and girls - to develop their skills and to grow up with a sense of fundamental values which will last them a lifetime.

Besides this important birthday there were a number of significant highlights during the past year.

Seven hundred Queen's Scouts took part in the annual parade in Windsor Castle and the National Scout Service in St George's Chapel. HRH The Duke of Gloucester took the review and joined in the service using the opportunity to meet many of the young people who have demonstrated the highest standards of personal achievement.

The 90th birthday was kept low key as our resources are already being focussed on the centenary celebration in 2007 and plans are already well underway in the UK to mark this historic milestone with a huge international jamboree here in the founder country. The ambitious bid will be presented at the World Scout Conference in 1999 which takes place in Durban, South Africa. If successful, Britain will play host to some 50,000 Scouts from all over the world. It is estimated that the event will provide sponsors with an opportunity to contribute up to £10 million to show their support for young people world-wide.

Our Patron Her Majesty the Queen and HRH The Duke of Edinburgh attended a 'Celebration of Scouting' evening jointly, ' hosted by The World Scout Foundation and The Scout Association. During the evening, royalty, national and international guests representing business, commerce industry and show business were entertained by young people from across the UK whose talented singing, dancing and musicianship demonstrated the creative side of Scouting. The Celebration was preceded by a press conference at which plans to celebrate the centennial of Scouting in 2007 were announced.

... to all sections of the community

When parents from minority ethnic groups understand that the values of Scouting are fully compatible with their own faiths it has an appeal which wins their respect and support. British Scouts include Sikhs, Jews and Muslims.

Today there are many ethnic minority Scout groups and many more multi-cultural groups throughout the country. James Brown, Regional Community Development Officer for The Scout Association in Bradford says: We are slowly winning the battle against stereotypes. Armed with posters showing children from every ethnic background enjoying Scouting activities, he visits Hindu temples, mosques, community centres and inner city playgrounds.

Derek Twine, Chief Executive of the Association comments: We need to challenge people who see no more than a cartoon image of us. Children from Sikh, Jewish and Muslim backgrounds often say they didn't realise Scouting was open to them. The fact is, our fundamental ideals are true to what they were 90 years ago. It is just our style that has changed.

Rifat Sultana, 18, is a member of the Birmingham-Pakistani Scout development project, a partnership scheme which encourages young Asian people to join a mixed Scout Group for one year. The highlight for Members is a working trip to Pakistan. She says: I wasn't really aware of Scouting until /joined this project I didn't know it was something I could do. On the trip we gelled to become a very strong group. We're like a little family. Before this I never had English or black friends. Scouting is a way of mixing in. At the end of the day your background doesn't matter if you share experiences. I'm taking my A levels this year, but I definitely intend to keep up my Scouting. I love it.

Community development work continues with a great many projects extending from rural communities into the inner-city areas. Another highlight of the year was a special event at Gilwell Park where nearly 100 young people from Reading, Southall and Greenford became Members of The Scout Association through the Sikh (Fauj) Project. _Girls continue to make a significant and growing contribution during this, their eighth year as Members in all Sections. An outstanding example is Laura Woodward, 10, from Swindon, who received the Chief Scout's Commendation for Gallantry after rescuing her little brother from their blazing home.

Laura used lifesaving skills she had learned at a Cub Scout meeting six weeks earlier when the fire broke out in March last year. Laura led Thomas into a front bedroom, closed the door and told him to lie on the floor. The pair were then rescued by neighbours. Her dad Alan, Leader of Laura's 6th Swindon (St Saviour's) Cub Pack said: We're all very proud of her Laura added: I was a little bit frightened, but I remembered what I was told at Cubs.

This is but one example of how Scouting is about helping others and the principle was much in evidence this year.

Scouting is proud of cerebral palsy sufferer, Jonathan Strange, 15, from Leicester, who has succeeded in gaining his Chief Scout's Award. For four years Jonathan has been a Member of the lst Beaumont Leys Scout Troop. As part of his efforts to win the award he spent three weeks working on a farm near his home, feeding animals and cleaning the pond. His mother Ann said: He's very proud of the award, it's a great achievement for him. He has had to put in twice the effort that able-bodied youngsters would do to get it.

Youngsters with learning difficulties have been invited to enrol at the 15th Wallington Scout Group who are setting a proud example of just what Scouting can do. The only Group of its kind in the area it enables children aged 10 to 16 with learning difficulties to take part in a range of Scouting activities including outings to parks, bowling and swimming as well as visits to police and fire stations. Run by a team of volunteers at least one helper is needed per Member.

John Kitson, The Scout Association's National Commissioner for Special Needs comments: It is very encouraging to hear of the recently launched Scoutlink programme being put into action. This programme is designed for young people with severe learning difficulties to become Members and enjoy appropriate Scouting activities. There are already Groups providing this programme.

... to international understanding

Scouting's international links of friendship show the Movement at its very best, providing support when and where it is needed. The past year has been no exception with many international contributions by UK Scouts.

The Association has been supporting Russian and Eastern European Scouting since 1990. Banned for more than 70 years, Scouts are making a significant comeback in Russia and other parts of the former Soviet Union. Today there are more than 50,000 young people taking part in Scout activities in Russia. UK Scouts have provided a training course for Russian Scout Leaders at Youlbury International Scout Camp, Oxford.

Five Yate Cub Scouts raised £288.90 to aid the 999 Romanian Appeal which is based in Bristol. The five lads are all Members of the 1st Yate Windsor Drive Scout Group. The money was raised by a sponsored rock climbing expedition.

Also giving assistance to Romania were the Bawtry Venture Scouts. A group of 12 from the Unit aged 15 to 18 spent two weeks in Vasilas, 40 miles from Bucharest, where they helped to renovate a farmhouse that will be used by orphaned Romanian Scouts as a summer base camp. They dug a well, made bricks and built foundations. With £700 they took with them they bought a pump, timber, cement and roofing materials.

Welsh Scouting's International Team played host to 40 Venture Scouts from Slovenia, Hungary and Ireland as part of a project to encourage youngsters to experience life in Wales. This project is the brainchild of international Commissioner for Scouting in Wales, Alan Jones. The visitors tried their hand at a variety of local interests including crown green bowling and football against a village team.

Four Scouts from Brighton and Nottinghamshire were hailed as heroes in Moscow after a life-saving rescue of a Russian boy Vladimir Setkov. The UK Scouts - Leland Fieldsend, 18, Stuart Wordingham, 18, Kevin Fletcher, 17, and Jeremy Selwood, 24, were part of a group of 26 UK Scouts providing medical support at the second Russian Jamboree to mark the founding of Moscow 850 years ago. An ambulance donated by Nottingham based Ambulink International was also on hand.

The rescue took place after the 12-year-old Russian boy sustained serious back and respiratory injuries after plunging headfirst into a shallow lake and striking the bottom. The four helped to support the boy, put a neck brace on him and placed him in the ambulance. The ambulance driver said that the boy would have died but for the quick thinking and help of the Scouts. Now in a specialist spinal injury unit in Moscow, Vladimir is paralysed from the waist down. On arrival at hospital he had only 10 per cent breathing and was fighting for his life.

The UK Association was pleased to promote World Scouting by creating a special display stand at the Commonwealth Heads of Government Meeting in Edinburgh in October 1997.

Scouting can justly claim to have turned the world into a global village last October with the first Jamboree-on-the Internet, linking the 30 million strong World Scouting Movement in 218 countries.

Young people round the world exchanged messages and enthusiasm about Scouting during the 48 hour long event. Thanks to the rapid spread of the Internet people with a computer and Internet access can communicate for the cost of a local phone call. It is a communications medium which holds a great appeal for the young as our event proved.

This first Internet event took place at the same time as the 40th Jamboree-on-the-Air - an annual event in which 500,000 Scouts and Guides all over the world communicate via amateur radio.

To celebrate the 40th anniversary of Jamboree-on-the-Air, the World Scout Bureau, which is based in Geneva, Switzerland, moved its radio station to Reading for the weekend. Former Director of the Bureau's administration department, Len Jarrett, who organised the Jamboree for 39 years, flew over from Canada.

The man responsible for all this international radio chat, Les Mitchell was on hand to see his brainchild hit the big 40. Les, a keen amateur radio enthusiast joined the Scout Movement in the 1930s. But it was only in 1957 that his two lifelong passions - Scouting and radio - came together to form what is now a world-wide annual event.

Technology is playing an increasing part in the Movement's activities and the success of the Association's official ScoutBase website [http://www.scoutbase.org.uk/] is a credit to the team of more than 80 volunteers who keep it current and attractive. It has grown to the point where it is 'visited' by over 5,000 people each day. The associated list server facility makes it possible to email the latest news and information rapidly and at low cost to over 3,000 local Scouting contacts. It has also been instrumental in enabling Headquarters to locate people with specialised knowledge or experience very quickly.

One of the more unusual requests was to locate anyone who had attended the 1947 World Jamboree in France for a BBC Radio interview. It took only one hour to locate such a person.

Technology training in the Scout Section received major support when leading electrical retailer Comet launched a special resource pack aimed at helping Scouts achieve the Electronics Badge.
 

... to national issues

After consulting parents and Members, The Scout Association decided that its Membership should be allowed to continue shooting. The decision came after vigorous debate following the murder of school children in Dunblane and the subsequent legislation banning handguns.

Because of the moral and ethical issues raised by shooting, the Association carried out a survey during the summer. At the time it was felt that if a majority felt that shooting was inappropriate the activity would be stopped.

However, 70 per cent of those who responded favoured the retention of shooting as an optional activity. Among young people the number was 85 per cent and among parents 57 per cent.

Shooting is not a compulsory activity but there is an activity badge - Master at Arms - for Scouts aged between 10 and 15 which covers archery or fencing as well as shooting.

The decision not to ban shooting has been accompanied by a new set of guidelines for Leaders. Shooting at targets showing human or animal shapes is prohibited and all Scouts are forbidden from taking part in 'paintball activities' where participants shoot paint loaded weapons at each other. Written permission from parents or guardians will be required before Members under the age of 18 can shoot. _Child Protection remains a fundamental cornerstone of today's Movement and the Association's pioneering work has been acknowledged widely since the 1994 publication of the Young People First code of practice for all adults working in Scouting. The first National Child Protection Co-ordinator was appointed in 1997 to work with local Leaders to promote child protection through Scouting.

Perhaps the single most important issue faced by Scouting, during the past year has been to decide our position on the equal opportunities debate. Looking back on 1997, many will remember it as the time when Scouting grappled with the issue and boldly addressed it. The Association has given clarity to equal opportunities in Scouting. As the youth movement most widely reported in the media, our contribution to the debate on this issue did not go unnoticed.

In taking this stand the Association has educated a lot of people. The Movement is proud to have taken the enlightened view that it has. This is no small achievement.

The issue of equal opportunities goes back to our roots. It was Baden-Powell's vision that Scouting could enable friendship.... with one another irrespective of class or creed or country. It is as much a tribute to him as to Scouting that today the World Scout Movement unites 30 million people in 218 countries on an ever stronger basis of equal opportunity.

Our equal opportunities policies aim to provide Group Scout Leaders with the direction they need to tackle positively these issues at a local level. Human behaviour is not simply black or white, but a highly variegated set of greys, and so the equal opportunities policies do not suggest that the answers to difficult, sometimes controversial questions, are always clear cut or easy. But they do provide principles which help with the discovery of fair solutions in keeping with the values of Scouting.

... to education for the future

The major review of Scouting's core curriculum continues apace. The aim is to provide an enjoyable educational experience for Members which is relevant and enriching. It is inevitable that throughout 90 years the focus of the curriculum has changed. The current review will produce a programme which the Association believes will help recruit new Members.

The review is a massive undertaking as it attempts to encompass the views of everyone in Scouting including interviews with young people who have left the Movement recently. Beaver Scouts, Cub Scouts, Scouts, Venture Scouts, Leaders and Commissioners will all have their say.

Over 700 Members from 24 Counties aired their views during a specially conducted series of interviews designed to provide a major input to the Programme Review currently being undertaken.

The promised new programme will be exciting, motivating and above all educational. An important input in the process comes from a document drawn up by Chief Executive Officers of the world's largest non-formal education organisations which includes the Scout Movement. Titled The Education of Young People: A Statement at the Dawn of the 21st Century, much of its aims relate directly to Scouting and argues for an educational rather than purely recreational emphasis on activities.

How other people see us

Many around the world watched with mixed emotions the pictures of Scouts helping to clear up the flowers in front of Kensington Palace after the funeral of Diana, Princess of Wales. Whatever their feelings, it certainly presented another public image of Scouting making a contribution - and perhaps served as a reminder that Scouting is about people, especially young people.

Hardly a week goes by without the Movement being reported on national radio or television - even on Christmas Day 1997, Scouting had coverage - as six million viewers of Noel Edmond's show will confirm. It is encouraging to note that less than five per cent of the annual coverage is 'bad' and the remaining 95 per cent is worth millions of pounds as free advertising.

An article in The Times amusingly contradicted the goody-two-shoes image of Scouting. Scouts were employed as messengers by M15 in the First World War, but the lads proved too mischievous and were asked to leave, according to previously classified files. The behaviour of Scout volunteers was thought to be unacceptable. A report compiled after the war states: Boys were found to be troublesome. The considerable periods of inactivity which fell to their share usually resulted in their getting into mischief. Sounds familiar!

It seems that the Navy made a better employer for Scouts. When the Admiralty began to employ Scouts as 'coast watchers' the Scouts at MI5 were advised to take up this challenge, outdoor work being much more fitted to their energy. Indeed.

The media provided well deserved coverage on a number of outstanding Scouts - the following is one very good example of the type of editorial the Scouts regularly attract.

Simon Piercy of the 5th Blacon (Holy Trinity Scout Group received the Certificate of Meritorious Conduct from Chief Scout, George Purdy for his courage and dedication in the face of adversity. Simon was born with a kidney defect and had a kidney removed in 1993, but despite this he took part in a ScoutAbout just three weeks later

Simon, who had a 50/50 chance of survival used his time in hospital to work towards his Scout Award. Chester District Scout Commissioner, Geoff Reynolds said: Simon represents the best qualities displayed by young people today, being courteous, considerate, and actively contributing to the good of the community.

In 1998 thousands of national and international visitors to London's Tower Bridge were also given an insight into the size and development of the World Scout Movement through a week long exhibition at one of London's top tourist attractions. The World Scout flag was flown from the bridge during the week.

Within Scouting, the past year saw the launch of a new badge - the Public Relations activity badge which is being sponsored by British Energy. The aim is to generate sufficient understanding of PR amongst Scouts so that Members themselves can help to influence the image of Scouting by getting a more accurate message to the public.

To gain the badge Scouts have to undertake a variety of events including a five minute presentation, generate media coverage for a Scout event, assist with a Group or District promotional exercise and carry out a local survey to determine the image of Scouting.

The launch of the badge received widespread coverage by national newspapers, radio and television including the Chief Executive being interviewed on BBC2's Newsnight programme by Jeremy Paxman.

One of the first Scouts to gain this new badge was twelve year old Susan Carrol from Peterborough. Susan visited a number of PR companies, wrote press releases and gave a presentation at an annual general meeting. I learned a lot about the media, she said, but the presentation was really scary.

And at Headquarters in London

Following a £2m refurbishment, Baden-Powell House Hostel was reopened by our President HRH The Duke of Kent on 5th June 1997. Greatly improved hostel facilities are now available for thousands of Scouts, Guides and other visitors to London. The Hostel now offers 180 beds, 70 more than before.

The Duke met young Scouts and inspected the building which had been closed for some six months for its first major renovation since 1961. All of the bedrooms now have private facilities, double glazing and air conditioning. Many rooms offer facilities for visitors with special needs. There are state of the art conference facilities, training and meeting rooms and a new kitchen and refectory.

The six storey building at the corner of Cromwell Road and Queen's Gate was built as a lasting tribute to the memory of the Founder and was opened in 1961 by Her Majesty The Queen.

The building has a large 300 seat assembly hall and stage which frequently provides rehearsal facilities for leading choirs and orchestras. Sited at one of the best locations in London, the newly refurbished Hostel offers excellent facilities to anyone organising meetings, conferences or training courses.

Financial Matters

The Association's Annual Accounts and Balance Sheet are prepared in accordance with the Statement of Recommended Practice, Accounting by Charities, more often referred to as the Charities SORP. Last year, we introduced four main fund headings - General, Designated, Restricted and Endowment.

The Designated Fund combines the values of the Fixed Assets and the Special Purposes Fund, while the General Fund encompasses the day to day financial operations of the Association and its subsidiaries.

By using the Designated Fund, the General Fund remains free of the Fixed Asset figure which tends to confuse any assessment of the available funds of the Association, and thus the Special Purposes Fund has retained its separate identity, being held for exceptional expenditure on behalf of the Association. The uses to which this Fund might contribute are more clearly detailed in Note 17 to the
 

Financial Statements.

The Restricted Fund column includes the interest earned by the Short Term Investment Service. Two thirds of the restricted expenditure is interest paid to Scout and Guide Units who are depositors with the Service; the remaining payments relate to grants by funds, administered by the Association, which have been set up at the specific request of donors over a number of years.

The Endowment Fund is small in comparison. Although its capital may not be used, its income is available for the Association and this has been credited to the General Fund.

The only deviation from the Charities SORP is where the current statement of Accounting Practice SSAP24 relating to Pension Fund surplus is in conflict with the SORP We have adopted SSAP24 as being the more prudent approach.

Incoming Resources

The total incoming resources for the year amounted to £10.88 million and is some £535,000 above the comparable figure for last year.

Membership fee income, whilst virtually static, still represents a large proportion of our income.

The Subsidiary Companies' figures represent the total profits of Scout Shops Ltd., Scout Services Ltd., and Scout Insurance (Guernsey) Ltd., and further details on each of these operations are provided below.

Investment and other income amounting to £2.59 million includes donations, grants and insurance commissions and has benefited from increased dividends and the higher prevailing rates of interest. Legacies are shown separately.

Scout Shops Limited

Turnover for the year ended 31st January 1998 showed a growth of 4.2% over the previous year.

Higher sales from the shops supplemented by the recent addition of Norwich offset the lower wholesale and mail order deliveries from Lancing.

Gross margins were held at last year's level - no mean feat in such a competitive market with more and more players entering as time goes on.

The operating profit was only some £3,000 above the 1997 figure. However, the interest due on the Association's loan and bank overdraft was £63,000 higher.

Teach us. good Lord. to serve Thee as Thou deservest: To give and not to count the cost; As the 100% covenant payable to the Association is based on profits as calculated for Corporation Tax purposes, the actual amount due at £624,000 is lower than last year's by some £120,000.

However, whereas in 1997 the tax calculation resulted in a cumulative deficit on profit and loss of £60,000, this year a reversal has taken place and a surplus of £20,000 has resulted, thus reducing the cumulative deficit on profit and loss to, £40,000.

The covenant itself does not have to be paid over under the revised regulations introduced by the Finance Act 1997 until 9 months after the Accounting period.

This is of considerable benefit to Scout Shops over the previous procedure as profits had to be overestimated with the tax and cash payments being made prior to its year end. The 9 months moratorium eliminates the need to estimate the amounts and provides a financial buffer during Scout Shops' seasonal stock build up.

Following the Working Party's Report referred to in last year's Report, the Committee of the Council has agreed that the new covenant due to be executed in 1998 will be at the level of 85% of taxable profits to obviate the experience of 1997, where a large deficit was created by the use of a 100% covenant and the year by year variability of the tax calculation, and to allow some profits to be retained as reserves in the Balance Sheet.

Scout Insurance (Guernsey) Ltd.

Our captive insurance company continues to perform consistently and a profit equivalent to last year has been achieved.

The Guernsey Board has once again decided not to declare a dividend and has allocated a further £50,000 to a "General Liability Reserve Fund.

During the financial year the Association's loan of £100,000 was repaid. In such a litigious society the captive enables the insurance costs of Members to remain within bounds of afford ability.

Scout Services Ltd.

Another excellent year was accomplished by Scout Services Ltd., mainly due to the continuing success of sponsored badges.

During the year under review new sponsors were attracted to this unique form of sponsorship. They included Kidde International, a fire safety equipment manufacturer, who not only launched a national competition, but also provided informative fire safety posters for Scout Groups nationwide.

The Kennel Club also joined forces with Scouts and provided Leaders with pet training resource material, combined with the opportunity of seeing the best dogs in action at Crufts.

BNFL sponsored the Scientist Badge but requested that the money be used specifically to provide a Development Officer to assist in the furtherance of Scouting in Merseyside.

INA Bearings took on the sponsorship of the Scout Orienteering Badge.

Several water companies combined in a joint water conservation project to fund the aptly named "Waterwise" resource. This has proved to be a hugely successful venture and in addition to generating a substantial amount of income, it has provided most importantly an additional, interesting and educational activity for Cub Scouts nationwide.

Coca-Cola Great Britain Limited kindly donated a range of camping equipment to be held at Gilwell Park for use by Groups throughout Greater London to ease their resource and transport costs in providing outdoor experiences to their young members.

Friends of Scouting UK

A club named Friends of Scouting UK was established in September 1997. It is hoped that this club will enable former Members and current supporters to provide moral support to Scouting and to keep in touch with the Movement of today.

In return for a modest annual subscription the club offers many attractions ranging from discounted rates at Camping and Outdoor Centres to regular updates on Scouting today. It is of particular, but not exclusive, interest to adults who were at some time involved in the Movement and would like to hear more about Scouting today. In the first 6 months the Club has encouragingly recruited over 400 members and continues to grow.

Other Trading Activities

The trading activities figure of £2.218 million is the combined revenue from our charitable trading operations which are reviewed below - the costs of these operations are shown separately under the heading of Resources Expended.

The Resource Centre Team reacted positively to the staff restructuring and a surplus was realised even after servicing the costs of attending many roadshows up and down the country.

Scouting Magazine once again came in with a positive result albeit somewhat lower than last year.

The Gilwell Camp Site Management Team excelled, and a surplus in excess of last year's commendable performance was recorded.

The Conference and Activity Centre Trading was a disappointment. it has proved difficult to attract outside commercial clients to fill the vacant capacity not used by Scouting as the bedroom facilities are below par with the market's expectations. An overall deficit was recorded, but this absorbed the hitherto costs of the Bursar's Department which is now managed by Sutcliffes. The net figure is manageable and could be reversed on release of the bedrooms currently being used as offices.

Baden-Powell House Hostel again lost money, primarily due to the late completion of the refurbishment contract, the unexpected delay in attracting back our previous users, and the slower take up of the increased capacity. However as the financial year ended the Hostel was beginning to turn in positive results.

Hawkhirst Adventure Centre achieved one of its best years ever, assisted in part by an EU grant for environmental project work undertaken at the Centre.

Resources Expended

Most of the Association's activities and services are included under the Direct Charitable Expenditure heading. Reference has already been made to trading costs so we will now deal with the remaining costs under this heading.

The year on year increase in Other Direct Charitable Expenditure has been caused by a variety of factors, the main ones being inflation, albeit at a low level, higher insurance premiums for liability cover and Insurance Premium Tax.

The continuing lower claims experienced under the Members' Personal Accident and Medical Expenses Policy has enabled benefits to be improved once again at no cost to the Association. There are, however, a worrying number of volunteers who are not covered by the economically priced supplementary insurance policy which provides them with equivalent cover.

Finance was allocated to a wide range of new and existing initiatives to maintain the Scout training and programmes relevant and challenging to today's youths.

Ongoing costs were also incurred by our longer term Programme Review Group.

The Association's policy of investing in information technology has continued and a loan scheme has been introduced to assist in financing at District level to ensure participation and use can be made of available information resources.

Again, the strength of Sterling has enabled us to cap our liability for World and European Fees, which are denominated in Swiss Francs.

The unrecovered VAT figure, whilst lower than in previous years, remains a considerable burden. Our discussions with the Customs and Excise continue and the Government's review of Charity Taxation including VAT is awaited with interest.

The fundraising and publicity costs have more than doubled from a modest £69,000 to £145,000 - this is entirely caused by the setting up costs of the Friends of Scouting UK Club mentioned elsewhere.

The higher management and administration costs can be attributed to professional fees, where advice and additional specialised resources have been required on charity accounting surveillance and reporting, funding options for Scout Shops Limited, senior management recruitment, intellectual property and information technology.

The Net Incoming Resources for the Year Ended 31st March, 1998 amounted to £940,000, failing just below last year's figure of £1 million.

The total overall resources expended for the current year were sornewhat higher than in the previous year and reference has been made above to the main contributors to the increase. Excluding the Restricted Fund expenditure the increase was approx. 5% overall.

The total funds of the Association at 31st March, 1998 amounted to £29.5 million and show a substantial increase year on year of almost £4 million. Much of this can be attributed to the high market value of investments at 31st March, 1998.

Transfers Between Funds

The figure here relates to the net expenditure on Fixed Assets and the traditional transfers to the Special Purposes Fund under the Designated Fund heading of large legacies, Pension Fund surplus and the income accrued on it, plus surpluses realised on the disposal of investments.

Gains on Investment Assets

This figure represents the difference between the market value of our investment portfolios at the commencement of the financial year and the market value at the end of the financial year.

Only a small part of this figure has actually been realised on investments sold; the much larger portion has not been realised and is dependent on the buoyancy of the stock market either at time of said or financial year end.

I was bored in the evenings and I wasn't doing as much as I wanted to do so. I decided to give it a go and really enjoyed it. The Cubs were great but I love the Scouts.

The Scout Association Pension and Life Assurance Scheme

The Pension Scheme credit of £244,000 represents a one eleventh write back of the Pension Fund surplus and this practice is in accord with SSAP24.

As a result of the election for Member Nominated Trustees Messrs Cornelius and Grantham were elected. Maurice Cornelius is a pensioner and a former Field Commissioner. John Grantham is a current member of the scheme and the Association's Insurance Manager.

An actuarial valuation of the scheme as at 31st March 1998 is currently being processed by the Scheme's Actuary.

As the occupational scheme, with its fixed contribution rate, has not appealed to all members of staff, the Association has introduced a group personal pension scheme in conjunction with Scottish Widows.

Assistance and Guidance

Specialised guidance and advice has continued to be provided on National Lottery Grants and it was therefore pleasing to see that Scouting nationwide has been particularly successful. Other areas of advice include VAT, charity trading and the charity accounting regulations.

Loans During the year the Association advanced £216,750 to assist Groups, Districts and Counties to acquire or modernise local Headquarters buildings.

Grants The Association provided £124,903 in grants to assist Scouting at local level.

Co-Location

ubsequent to the end of the Financial Year, the Committee of the Council at its June 1998 Meeting reaffirmed its policy of co-locating the Headquarters offices on one site, Gilwell Park.

The decision on how best to fund this operation has not yet been taken but the Trustees of the Association have adequate funds at their disposal to facilitate this without recourse to outside borrowings. This Report can give only a flavour of what Scouting achieves each week for the lives of young people and their community. We have strengthened our contributions to the lives of others. We value the contribution of our volunteers and supporters, who make this possible.

With and on behalf of the Committee of the Council, I thank all those who have contributed to the success of the past year, and we look forward to our future Work with confidence.

Derek M Twine (Chief Executive & Trustee -- For the Committee of the Council)

29 July 1998