2nd Sep, 2025 – 11:36 thecurrency.news
Scouting Ireland makes €11.9m legal provision to settle historic child abuse cases
New accounts for Scouting Ireland cover a period its directors describe as “tumultuous” as the 36,000-strong organisation admits it faces financial “headwinds”.
The accounts for Scouting Ireland for the 12 months to December 2024 and 16 months to December 2023 reveal the scale of the problems facing Scouting Ireland, which has endured a major boardroom shake-up during the period.
Four directors have resigned, with another four directors retiring. A further two directors were removed after they raised governance and financial concerns. Scouting Ireland also changed auditors from Grant Thornton to HLB Ireland during the period.
The accounts cover the period prior to the Charities Regulator appointing inspectors to Scouting Ireland in January 2025.
Decisions “not taken lightly”
In his chairperson’s statement, Richard Forde, a long-term scout who was appointed in September 2024, described the period to December 2024 as one of “significant challenge, transition and ultimately progress”.
He said the first half of 2024 “tested” the resilience of its corporate governance structures and the “strength” of the scout movement in Ireland. He said two unnamed board directors were “removed” during the period following an EGM, and this decision was “not taken lightly”.
Forde was referring to directors Jacques Kinane and Donnachadha Reynolds, who had raised concerns about the finances and corporate governance at Scouting Ireland. The Irish Times reported in April 2024 that the two men were “disappointed” that they were asked to step down and said they believed they were whistleblowers and that they looked “forward to our names being vindicated”.
Seven months after their departure, the Charities Regulator appointed inspectors to Scouting Ireland. Forde does not refer to the appointment of inspectors to Scouting Ireland, which took place after the period. He does, however, refer to an external corporate governance review by David Duffy, which he said had produced “key actionable tasks”.
He said Scouting Ireland was committed, going forward, to training, more clearly defined roles and “improved channels” of engagement with members. He said Scouting Ireland intended to “build on the lessons” of 2024.
A “tumultuous” time and financial “headwinds”
Scouting Ireland, which has 36,000 members in Ireland, has made a legal provision of €11.9 million for dealing with the fallout from historic child abuse cases.
The new auditors of Scouting Ireland agree with its directors that it is “appropriate” that it trades as a going concern for the next 12 months, but warn that it has a “concern about the company’s ability to continue as a going concern.
The accounts for Scouting Ireland for the 12 months to December 2024 and 16 months to December 2023 reveal the scale of the problems facing Scouting Ireland, which has endured a major boardroom shake-up during the period.
Scouting Ireland’s directors’ report described 2024 as “steady progression” and that there was low single-digit growth of members to 36,000 people, including 8,000 adults. Scouting Ireland said it was active in 400 communities. It described the year as “tumultuous” for directors, including the removal of two directors at an EGM in the Helix in north Dublin.
Scouting Ireland’s current directors claimed that there was a “cathartic healing” in the foyer of the Helix afterwards and that the debate that took place was respectful. Financially, the directors admitted that they faced “headwinds”.
Net expenditure of €1.4 million in 2024 compared with €3.65 million in the previous 16-month period. Legal Net expenditure of €1.4 million in 2024 compared with €3.65 million in the previous 16-month period. Legal provisions went up by €970,000, compared with €4 million for the previous 16-month period.
Income from charitable activities decreased by 27 per cent to €2.8 million (a pro rata decrease of three per cent after accounting for the different lengths of accounting periods), and membership income decreased by 17 per cent to €2.5 million (a pro rata increase of 11 per cent). Spending on charitable activities decreased by 35 per cent to €6.9 million, a pro rata decrease of 14 per cent.
Income from national scout centres decreased by 54 per cent to €650,000, a pro rata decrease of 39 per cent. Scouting Ireland said in its accounts that it was no longer using scouting facilities to house Ukrainian refugees, accounting for much of this fall.
Total income for the 12 months of 2024 was €5.5 million versus €7.1 million in the previous 16-month period, a decrease of 23 per cent, but on a pro rata basis, income was up marginally. Total expenditure for the 12 months of 2024 was €6.9 million, compared with €10.7 million in the previous 16-month period.
Timing of settlements with survivors of sex abuse
Scouting Ireland said that included in the financial statements were legal provisions of €11.87 million. It said that under accountancy rules, it had to account for “historical child sexual abuse concerns” in the legacy organisation. The directors said they were “satisfied” that this was an appropriate provision, but said this was reviewed annually based on legal advice.
Scouting Ireland also noted certain events that occurred post the accounts. This included a settlement with insurance company Allianz, which the directors said they were “satisfied” about.
Scouting Ireland’s directors also considered the organisation as a going concern, which included considering the “timing of likely legal settlements arising from litigation by survivors of historic sex abuse in scouting,” as well as the size of the provision required.
Scouting Ireland said it had taken legal advice on this matter. Its directors concluded that, based on an expected increase in members and prudent management of expenses, Scouting Ireland was in a position to meet its liabilities for a minimum of the next 12 months.
“A material uncertainty exists”
HLB Ireland, the new auditor of Scouting Ireland, said that based on the information it had, the directors’ decision to conclude the organisation could trade as a going concern was “appropriate”. HLB said, however, that it had a “concern about the company’s ability to continue as a going concern”.
It said this concern arose because Scouting Ireland had a deficit for the year of €1.48 million, and net current liabilities of €10 million. Scouting Ireland, it noted, had a cash balance of €1.99 million. It added: “These events and conditions indicate that a material uncertainty exists that may cast significant doubt on the company’s ability to continue as a going concern.”
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