COA: Boy Scouts spending less on scouting activities despite huge income

Rappler.com

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COA: Boy Scouts spending less on scouting activities despite huge income
State auditors find that Boy Scouts of the Philippines spent only P9.15 million on scout-related programs despite collecting P202.79 million from members

MANILA, Philippines – The Boy Scouts of the Philippines (BSP) spent only P9.15 million ($195,000)* on scout-related programs despite making P202.79 million ($4.32 million) in collections from new students from January 2013 to May 2014, a recent Commission on Audit (COA) report found.

The Value for Money Audit part of BSP’s financial records, released on Monday, October 26, stated that the organization had been spending less on programs directly related to its mandate.

In 2013, state auditors found that the BSP’s disbursements totaled to P8.541 million ($182,050) or 4.61% of the last full year income of P185.441 million ($3.951 million).

During the first 5 months of 2014, meanwhile, only P611,074 ($13,036) was spent on scout-related programs out of the collection of P17.346 million ($369.662).

The audit team also noted that the non-submission of expense reports and other financial papers hindered COA from finding how BSP used its collections.

“It is unclear and not adequately disclosed in the Annual Reports/Financial Statements the exact purpose or the particular projects/programs that were for the benefits of its members,” COA explained.”Thus, it casts doubts on whether BSP adequately, effectively, and properly carried out the organization’s mandated function or purpose.”

In a May 2015 report, COA also questioned the lack of record of any income or collection by the BSP from a joint-venture project with property developer Alphaland. 

Neglected mandate?

BSP’s primary purpose, according to COA, is the “welfare, benefit, and propagation” of the scouting movement in the country. Income then should be geared toward attaining this goal.

Under Republic Act 7278 – the amended Commonwealth Act 111 – the agency’s main trust is “to promote the ability of boys to do useful things for themselves and others, to train them in scout craft and to inculcate in them patriotism, civic consciousness and responsibility, courage, self-reliance, discipline and kindred virtues, moral values, using the method in common use by the Boy Scouts.”

However, state auditors “doubt the financial orientation” of organization given the utilization of funds generated.

“In this case, the Audit team is in doubt of the BSP’s financial orientation since the net income was significantly higher than the funds utilized for the purpose of scouting programs directly affecting boy scouts,” COA pointed out.

COA clarified that despite organizing jamborees across the country and sending delegates to international gatherings of boy scouts, the BSP charged participants with fees to cover their expenses. The fees range from P500 ($11) to P1,000 ($22).

The generated income from the participants could have covered members who are unable to afford the activities, as COA noted that there were no disclosed programs that sought to help “less fortunate but deserving members” to the scouting-related activities.

“Had these excess funds been utilized during those years for new programs or activities, then many Boy Scouts would have benefited and may have helped alleviate the status of scouting on poor regions or localities,” the report stated.

Not just projects

The BSP management said that COA has to realize that there are expenses related to the scouting activities.

“It failed to appreciate the need to procure various material, supplies, equipment, among others, which are relevant and required in assisting the management and personnel in running the various scouting activities of the BSP,” the organization said.

It added that the BSP is applauded by other scouting organizations in the Asia-Pacific Region – a proof that it is “effective and efficient” in the implementation of its various programs – and continues to adopt World Standard Policies.

However, COA maintained that adoption of policies is an “entirely different realm” from implementation and, as of June 2015, they have not received any report on the accomplishments of BSP on its adoption of these policies and programs.

State auditors suggested that the BSP should “regularly or at least on an annual basis” submit its plans, programs, and activities to ensure that it carries out its mandated purpose. – Rappler.com

 *US$1 = P46

 

 

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