accounting paper

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Net Assets, Controlling Interest

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Net Assets, Noncontrolling Interest

AUDIT COMMITTEE of the

Executive Board of the Boy Scouts of America Francis R. McAllister, Chairman

David Biegler Ronald K. Migita Dennis H. Chookaszian David Moody

Report of Independent Auditors

To the Executive Board of the National Council of the Boy Scouts of America

We have audited the accompanying consolidated financial statements of the National Council of the Boy Scouts of America and its affiliates (the National Council), which comprise the consolidated statement of financial position as of December 31, 2016, and the related consolidated statements of revenues, expenses, and other changes in net assets, of functional expenses and of cash flows for the year then ended.

Management’s Responsibility for the Consolidated Financial Statements Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation and maintenance of internal control relevant to the preparation and fair presentation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

Auditors’ Responsibility Our responsibility is to express an opinion on the consolidated financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial statements. The procedures selected depend on our judgment, including the assessment of the risks of material misstatement of the consolidated financial statements, whether due to fraud or error. In making those risk assessments, we consider internal control relevant to the National Council’s preparation and fair presentation of the consolidated financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the National Council’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the National Council of the Boy Scouts of America and its affiliates as of December 31, 2016, and the changes in their net assets and their cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Other Matter We previously audited the consolidated statement of financial position as of December 31, 2015, and the related consolidated statements of revenues, expenses, and other changes in net assets, of functional expenses and of cash flows for the year then ended (not presented herein), and in our report dated April 11, 2016, we expressed an unmodified opinion on those consolidated financial statements. In our opinion, the information set forth in the accompanying summarized financial information as of December 31, 2015 and for the year then ended is consistent, in all material respects, with the audited consolidated financial statements from which it has been derived.

April 6, 2017

PricewaterhouseCoopers LLP, 2001 Ross Avenue, Suite 1800, Dallas, Texas 75201 T: (214) 999-1400, F: (214) 754-7991,

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Not-for-Profit Entities (Topic 958) – Presentation of Financial Statements of Not-for-Profit Entities.

Leases (Topic 842).

Revenues from Contracts with Customers (Topic 606)

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