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Scouts Canada has released its 2002 Annual Report. In it, the auditors have produced a financial statement, wherein they doubt that the National Council can continue for more than another year.
"These financial statements have been prepared on the basis of accounting principles applicable to a going concern basis, which assumes that The Boy Scouts of Canada National Operation will continue in operation for the foreseeable future and be able to realize its assets and discharge its liabilities and commitments in the normal course of business. There is significant doubt about the appropriateness of the use of the going concern assumption because the National Operation has incurred a deficit in its operating fund from normal operations of $814,000 for the year ended August 31, 2002 and has an operating funds deficiency of $2,466,000 at August 31, 2002. In addition, membership in Scouts Canada has been declining and effective September 1, 2001, Scouts Canada is self-insured for child abuse coverage. The ability of the National Operation to continue as a going concern is dependent on obtaining adequate funding from retail services sales and membership fees to finance its past deficits and future operations and to provide appropriate self-insurance coverage. There is no certainty that this will be sufficient to permit the National Operation to continue beyond August 31, 2003."
From: Scouts Canada 2002 Annual Report
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