Disciplinary funding costs leap at the ICAEW
ICAEW's funding of the AADB more than doubles, as the disciplinary body's caseload grows
FUNDING OF accountancy’s disciplinary board by the ICAEW leapt during 2010 to more than £5m.
The institute, which has released its 2010 annual review, spent £5.1m in relation to the Accountancy and Actuarial Discipline board in 2010, a £3m increase on 2009. The institute received £1.7m from regulated firms during 2010.
“This reflects the funding required for their increasing caseload,” the institute said in its review.
The past year has proved busy for the AADB. Investigations have begun into firms’ work with Lehmans, JPMorgan, Connaught, Aero Inventory and BAE. Sources at the disciplinary board said late last year that its resources were stretched.
The ICAEW’s review also showed that its defined benefits pension scheme, which was closed on 30 June 2010, is expected to show a £22.6m deficit as of 31 March 2010 following the completion of an actuarial valuation.
Funding contributions of £6m a year for three years, followed by £3.5m a year, will be made until the deficit is eliminated.
The scheme’s deficit under IAS 19 at 31 December 2010 was £5.7m, from a £14.8m deficit a year earlier.
Student intake in 2001 for the ACA qualification was 5,652, up from 4,854 a year earlier and the highest number for 19 years. It also posted its highest intake of students from outside the UK, by proportion, of 24%.
Total income was £76.4m, £2.7m higher than in 2009. The retained surplus after tax for the year was £1.8m.
