Disciplinary figures boost ICAEW profits
Fines income and falling disciplinary costs prove welcome for ICAEW's 2011 numbers
A £5m TURNAROUND from the ICAEW’s sponsorship of accountancy’s watchdog helped to bolster the institute’s 2011 figures.
The ICAEW posted an overall £4.1m profit for 2011, compared to £1.8m in 2010.
It received £1.6m in fines, recovered disciplinary bills of £800,000 and levied firms £1.5m in relation to supporting the Accounting and Actuarial Discipline Board (AADB). Costs of supporting the AADB were £2.7m – giving a net income of £1.2m.
In 2010 the institute made a net loss of £3.7m in relation to its income and expenditure relating to the AADB – mainly relating to £5.1m in expenditure.
Income at the institute climbed to £82.4m in 2011, from £76.4m a year earlier. Members’ fees and subs rose 4.7% to £37.7m. Other income, including income from students and commercial initiatives, climbed £4.3m to £44.7m.
The corporation tax bill was £100,000. As a mutual, the majority of the institute’s income is not subject to CT. It is taxed only on its commercial income.
The overall pension deficit climbed to £6.6m, from £5.7m. The value of plan asset rose to £127.5m, but the value of obligations increased to £134.1m.
Trade receivables increased to £6.8m for the year, from £5m in 2010. Impairment for receivables fell to £400,000, from £600,000 a year earlier.
Chief executive Michael Izza was the highest paid executive, picking up £477,000, from £450,000 in 2010.
The number of ICAEW employees rose sharply during the year, to 713 from 664. Staff wages climbed to £31.1m, from £29.1m.
