Disciplinary costs see institute post £1.6m deficit
The ICAEW has plunged to a £1.6m loss, following an increase in the funding required for the Joint Disciplinary Scheme
ICAEW headquarters
The institute’s annual review, out this week, revealed the deficit, which
also coincided with a significantly increased cost base. It recorded a surplus
of £5.4m last year before taking the JDS costs into account, which fell to
£1.75m before JDS costs this year.
The costs of Chris Dickson’s disciplinary scheme roughly doubled on 2006, the
ICAEW said.
The institute said the loss would be funded by ongoing operations and
reserves. ‘We won’t be going to members [to ask for money],’ a spokesman said.
Despite a rise in income of 8.5%, the institute has also had to spend more on
the ACA qualification, global expansion and sending out Accountancy
magazine to members.
ICAS recently said it had also had to increase its contribution to the JDS,
too, with the costs of the
Equitable Life case
thought to have driven up the disciplinary body’s costs.
ICAS increased its contribution to the JDS by £367,000 for 2007.
The institute revealed it had increased its budget due to the scale of the
case, which lasted for 66 days.
The tribunal is looking at why Ernst & Young auditors gave an ‘unqualified’
audit opinion on Equitable Life’s accounts from 1990 to 2000 when, the JDS case
alleges, the accounts were not prepared in line with company law rules.