ICAEW posts loss as disciplinary funding bites
A net charge in contributing towards the AADB sees ICAEW post a deficit in 2012 - but student and membership numbers improve
A £3m SWING in funding the profession’s disciplinary watchdog has seen the ICAEW post a loss.
The institute faced a net charge of £1.8m in its contribution to the Accounting and Actuarial Discipline Board, an arm of the Financial Reporting Council, during 2012, compared to a £1.2m net credit a year earlier.
The consolidated deficit for the year ending 31 December 2012 was £0.9m, compared to a £4m (restated) surplus in 2011.
The numbers for 2011 were restated as the institute took on international pensions accounting standard IAS19 this year, earlier than planned.
Operating expenditure increased to £83.9m, a 5.5% increase. “We have continued to exert tight control over our costs, while investing in our strategy,” the ICAEW stated in its annual review.
Student intake was at its highest for 20 years, at 6,201. Membership grew 1.5% to 140,573.
Chief executive Michael Izza saw his remuneration climb to £501,000, up from £477,000 a year earlier. Like-for-like executive remuneration climbed to £1,227,000, from £1,185,000 in 2011. The latest figures now include commercial director Sharon Gunn, who was paid £191,000 – taking executive pay to £1,418,000 in 2012.
A desktop valuation of the ICAEW’s pension scheme showed a deficit of £24.9m, a reduction of £15.2m on the estimated deficit in 2011. A ‘red trigger’ event arose on the covenant arrangements for the scheme at the end of 2011 but was deemed temporary, and did not require the ICAEW to provide further funding contributions. No equivalent ‘red trigger’ occurred at the end of 2012.