Last year, the institute’s deficit leapt from only £650,000 to a massive £8m, knocking a severe dent in its reserves.
The news comes at a difficult time for the institute – members will be asked to vote on a 20% increase on subscriptions in the summer.
At the same time, the institute’s council is debating whether to pay office holders. Traditionally, office holders such as the president have only been able to claim out-of-pocket expenses while working for the institute.
Peter Smith, the institute’s treasurer, said the deficit had been budgeted for, but that a number of one-off factors, such as the £2.1m cost of the joint disciplinary scheme, had given rise to further expense.
The downturn in the stock market wiped nearly £1m off the institute’s equity portfolio and its investment income fell by £0.4m.
Earlier institute councillors agreed a balanced budget for this year. Smith said: ‘On an operating level, we will be fair and square this year.’
The £15m raised from the sale of ABG, the institute’s publishing arm, fell outside the accounting period but will go into the institute’s reserves, which fell from £35m to £26m last year.
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