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WOSM institutional crisis

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WSF, BSA and SSR suspend their payments. Read more at scout.org.

Eduardo Missoni
Secretary General - Secrétaire Général
World Scout Bureau
Rue du Pré-Jérôme 5
P.O. Box 91
1211 Geneva 4 Plainpalais
SWITZERLAND
Phone (+41 22) 705 10 10
Fax (+41 22) 705 10 20
Email emissoni@scout.org
Web scout.org
Geneva, 2.11.2007
Circular No. 33/07
WOSM institutional crisis
For the past several weeks, the World Organization of the Scout Movement has been living through an institutional situation on which it is my duty to inform you.
1. On 15 October, an “open letter” was addressed by a number of National Scout Organizations (NSOs) to members of World Scout Committee (WSC) making a number of statements concerning the governance and the management of the World Organization of the Scout Movement (WOSM), and indicating to the WSC a number of specific actions to be taken. The letter was widely circulated among NSOs.
As an initial response to that letter, on 18 October the Chairman of the WSC informed NSOs of the action undertaken by the WSC to analyse the situation.
2. On 17 October, a letter was sent to members of the WSC by the Boy Scouts of America (BSA), signed by their International Commissioner, himself a member of the WSC, stating their point of view on some governance issues and informing the WSC, on that basis and without any previous notice, of their "irrevocable decision", to "suspend the payment of any and all funds (fees, grants, and task force support) to the WSB and its regional offices until the current Secretary General is replaced". The letter was widely circulated to NSOs together with the one mentioned in 1. above. The same position was adopted by Sweden. A number of other NSOs indicated, either verbally or in writing, that they would also consider suspending the payment of their fees.
3. In the same time-frame a letter dated 16 October of the World Scout Foundation (WSF) with analogous statements was sent to the Chairman of the WSC and copied to all Board members of the WSF. That letter was also widely circulated among NSOs. Without any advance notice, the letter also foresaw a proposal being made to the Board of the WSF to suspend payments of the WSF annual grant to WOSM until the WSC would correct a number of governance issues indicated in the letter; however, payments were in fact suspended at once.
4. The combined result of the above suspension of payments, representing approximately 40% of the whole budget of the World Scout Bureau (Central and Regional Offices), places the WSB in a dramatic situation. Even with early payments of registration fees by NSOs, it will be impossible for the WSB to deliver its services beyond a few months after which all WOSM activities shall be suspended, including the preparation of the World Scout Conference to be held in July 2008 in Korea. This places the World Organisation of the Scout Movement in front of an institutional crisis of a dimension never experienced before.
5. To tackle this situation, the WSC members will have an extraordinary meeting in Cairo, Egypt, on 12 November. You will be kept informed of further developments.
Yours truly,
Eduardo Missoni
Secretary General

posted by Chris 03:40, 8 November 2007 (UTC)[reply]

BSA letter that prompted resignation

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Date: October 17, 2007

To: Members of the World Scout Committee

From: Wayne M. Perry International Commissioner

Subject: Recent Decision of the Boy Scouts of America


I am writing you today in my capacity as the International Commissioner of the Boy Scouts of America (BSA) to inform you of an irrevocable decision the BSA made at its National Officers Meeting last night with respect to our participation in the World Organization of the Scout Movement (WOSM). This decision was made after a very careful review of numerous issues that have evolved since early 2004. We are fully aware of the impact this decision will have on the BSA and WOSM; however, it has been determined that no other course of action is available to take.

Let me begin by expressing how proud the BSA is of our long involvement in world Scouting. The BSA’s support and participation in WOSM has enabled us to use our resources to aid the Scouting movement throughout the world. The movement has in turn enhanced the richness of the BSA’s Scouting program. We sincerely believe we have helped make a difference and hopefully look forward to doing so again soon.

Perhaps a brief summary of our financial commitment to world Scouting can help frame the issues at hand. The most recent audited financial statements of the World Scout Bureau (WSB) dated September 5, 2007, shows that the BSA contributed 39.04 percent of the fees collected by the WSB. This 39.04 percent the BSA contributed does not include the some $2.5 million (USD) that the BSA, its donors, and its benefactors made in special grants to the WSB, its regional offices, and selected National Scout Organizations (NSOs) during this past year. Nor does the amount in fees paid include the large sums that were donated to the World Scout Foundation (WSF) by BSA Scouters, which were made as a result of the direct encouragement of the BSA. Additionally, the BSA continued to make program support materials available to selected NSOs at no cost.

The financial commitment made by the BSA outlined above also does not include the extensive time and financial commitments made by so many BSA volunteers and professionals who willingly attend and participate in the various task force and committee meetings of WOSM at the world, regional, or NSO level. BSA volunteers both give their time and pay their own way to these meetings (BSA volunteers do not receive travel or expense reimbursement from WOSM or the BSA). They do this out of a deep and personal commitment to WOSM.

Clearly, the BSA is by far the largest single financial contributor to WOSM of any member NSO, and we have an obligation to be certain these combined resources are utilized properly. Therein lies the core issue.

In return for these commitments, the BSA asks that the funds we provide to the WSB are (1) spent with a view of supporting the NSOs – especially NSOs in lesser developed countries – to grow and deliver a quality Scouting program to a maximum number of youth and (2) spent in an efficient manner with appropriate and transparent financial controls. The BSA has reluctantly come to the conclusion that under the current processes and leadership of the WSB, neither of these two goals has been nor will be achieved.

Therefore, the BSA has decided that it will suspend the payment of any and all funds (fees, grants, and task force support) to the WSB and its regional offices until the current Secretary General is replaced and appropriate processes instituted to restore the WSB to what we believe is its core mission in aiding NSOs to grow and deliver a quality Scouting program. (The BSA will continue to provide direct support to selected NSOs.)

Decisions of the WSB seem to be made with little regard to their effect on often-struggling NSOs. The WSB has focused on other priorities such as the “World Scout Scientific Congress” and its proposed new $14 million “World Scout Center” building in Geneva, but it has not completed its 2007/2008 budget for at least three months into the current fiscal year (which is better than last year’s budget, which was finalized five months into the fiscal year).

The recently disclosed multimillion-dollar WSB investment in the Picarquin Training and Events Center (dubbed a “World Scout Center”) has adversely impacted the Interamerica Region Office and the NSOs it is charged to serve. Scout use at the Picarquin Training and Events Center represents only 7 percent of the use (on a revenue basis) of the center. The recently released report on Picarquin by the WOSM Audit Committee discloses that Picarquin’s “ongoing operations result in a significant annual loss to the Interamerica Region” and that “a profit will not be feasible under the current financial structure of Picarquin.” We disagree with the Secretary General’s belief that “Picarquin makes money” and disagree with the desire to construct a hotel on the site (with the area around the site being rezoned as a proposed gambling center) as a way of salvaging his decisions.

The recently proposed “tax” of 7.5 percent on the income from future world Scout jamboree fees as a means of raising money would make it more difficult for youth to attend future jamborees. There also appears to be no need for the WSB’s effort to license World Scout Centers. The impact these two items will have on struggling NSOs is likely negative at best.

We at the BSA are not at a loss for opportunities for using our resources. The BSA has many places to utilize its resources to further the Scouting movement. We have a renewed focus on serving disadvantaged youth in the USA and around the world, which can effectively utilize the dollars we have previously contributed to the WSB. Despite these competing needs, the BSA would like nothing more than to resume the financial support for WOSM. Under current conditions, it is just not possible for us to be responsible stewards of the funds we have been entrusted with by the generous supporters of the BSA to entrust any further monies to the WSB.

We have thought hard and appreciate the magnitude of our decision. If the situation is not resolved, the BSA would be suspended from WOSM late next year for nonpayment of fees and thus would not be eligible to attend the upcoming world Scout jamboree in Sweden, the world Scout conference in Brazil, or other WOSM-sanctioned events. If this were to be the case, our Scouts and leaders would surely miss the opportunity for a wonderful interaction with Scouts and leaders from around the world; however, in light of the legal and practical circumstances faced by charitable organizations in the USA today, we have no other choice.

Like others that share these concerns, we look forward to working together with our fellow NSOs to bring the WSB back on track. We welcome the sharing of ideas on how to achieve this task, but we hope you understand that new leadership at the WSB is a prerequisite to the restoration of funding by the BSA.

posted --Jdurbach 17:22, 14 November 2007 (UTC)[reply]

See also

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posted Chris (talk) 15:39, 29 November 2007 (UTC)[reply]

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