We bleat on about high reserves and excessive investments so it should be no surprise to find a conservative profession like the Institute of Chartered Accountant should have tucked away 25 years worth of current expenditure in it’s own benevolent association reserves.
2016 Accounts (the latest available)
- Uncommitted reserves of £117m are covered by cash, debtors and investments.
- The average expenditure over 5 years is £3.7m (although last year it increased to £4.6m) equal to 31 or 25 years expenditure even assuming no new income!
- The investment management fees and costs of generating investment income are not an insignificant £184,000 pa. How much more hidden in the transactions and cost of fund management is not stated.
- Dividends and interest on investment were £2,221,000 gross resulting in a cost equal to 8.3%.
- ‘The Trustees say they continue to monitor the level of reserves and acknowledge that, although substantial, they’re appropriate at their current levels….’ Let us hope this does not presage a flurry of inappropriate new vanity ventures.
Despite a recent PR puff piece we will have to wait another 6 months to get an update on the financial position for these Chartered Accountants in need!