ICAI Publishes 2007 Annual Report

by Jason Gorringe, Tax-News.com, London

18 April 2008

The Institute of Chartered Accountants in Ireland (ICAI) has published its Annual Report and Financial Statements in advance of the Institute AGM to be held on Friday 9th May in Belfast.

Commenting, ICAI Chief Executive, Pat Costello, revealed that:

"ICAI's financial results for 2007 have continued the positive trend of previous years. Despite significant investment in Institute resources, including capital developments in both Belfast and Dublin (total capital spend of approx. EUR23mn), it is a significant achievement to maintain membership subscription increases at a modest level."

"Our current financial position has allowed us to raise subscription fees by only 2% in 2008, a reduction in real terms which hopefully can be repeated in future years."

Highlights for 2007 included:

• Membership at year end reached 16,691 (growth of nearly 6%), confirming ICAI's position as the leading accountancy body in Ireland
• New student recruitment reached 1,714 (the second year running that student numbers have increased by 10%)
• Further strengthening of reserves, with net ICAI reserves increasing by EUR5.4mn during 2007 to EUR20.6mn.
• 15% increase in operating income.
• Net operating surplus at EUR4.3mn compared to EUR2.6mn in 2006, an increase of 65%
• EUR 17.8mn of costs incurred on site acquisition and development of new ICAI Dublin headquarters and training centre in Pearse St, Dublin.
• Establishment of the Chartered Accountants Regulatory Board (CARB), an operationally independent board to regulate ICAI members, chaired by Dr. Liam O'Reilly.

Mr Costello announced that:

"The continuing increase in student intake was also particularly pleasing, especially as 15% of new students now come from a non-business graduate background."

"On a representational level ICAI has continued to be particularly active including our leadership role in the campaign for a reduced rate of Corporation Tax for Northern Ireland."

"Notwithstanding these positive results, a slowing economy will obviously present challenges in the year ahead. Against the background of slowing economic activity, ICAI has committed to further investment in capital projects associated with its Dublin headquarters."

He concluded: "However, ICAI's 5 year strategy to build reserves to six months of operating expense has been substantially exceeded in 2007 and this will stand us in good stead for the period ahead."

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