Tuesday, October 23, 2018

ICAEW's Deficit - Deja Vu

Members may be forgiven for thinking that the £2M deficit that the ICAEW is forecasting is a one off.

Not so!

As a loyal reader has pointed out, we have been down this route before in October 2001.

AccountancyAge at the time reported a £2M deficit, brought about by amongst others the costs of regional restructuring and, of course, improvements in the ICAEW bunker in Moorgate!

Monday, October 22, 2018

ICAEW's Forecast Profit Turns To Loss

It seems that the student recruitment drive, the continuing investment in renovating Moorgate Place and transforming business systems across the organisation have resulted in the ICAEW facing a potential budget deficit for 2018 after five years of surpluses.

Economia reports that instead of the predicted surplus of £200,000 out of a budget of £106m for the year, additional costs have pushed the figure to a deficit of just under £2m.

You would have though that the ICAEW, given its well qualified membership, could get its financial projections right!

Chief operating officer Vernon Soare described the situation as “highly unusual”. He stressed the strength of ICAEW’s balance sheet and made it clear that the organisation was “not in financial crisis”.  

Much of the cost, he said, could be attributed to the “investment phase” which has covered extensive restructuring and updating of the Grade 1 listed Chartered Accountants’ Hall, as well as the ongoing digital transformation.

The ICAEW would not be seeking to cover the deficit by increasing member subscriptions beyond the usual annual rise.

Which is all very well and jolly, but I would ask why is it group think within the ICAEW bunker that we have to have a rise every year anyway; as though it is written into stone the membership are milch cows for the milking?

Regarding the refurbishment of the ICAEW bunker in London, that is all very nice too; but I wonder what the membership who don't reside/work in/near London feel about that?