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80 RCSI Annual Report 2012/13
FInanCe
RCSI is a not-for-profit, independent academic
institution with charitable status. It operates primarily
a self-funding financial model which must generate
sufficient resources to cover both current and capital
funding requirements. The organisation continues
therefore to create its own future using disciplined
financial stewardship.
The College generates revenue from those activities that are core to the organisation's
mission, including education programmes and research, and those which provide a valuable
source of revenue such as that generated from its endowment portfolio and fundraising
activities. The organisation also raises funds through loan financing for projects of a capital or
working capital nature.
The College activities are carried out locally in Ireland and at a number of centres overseas.
From an accounting perspective, the international reach of the organisation requires financial
statements to be compiled under International Financial Reporting Standards (IFRS), Irish
(generally accepted accounting principles) GAAP and US GAAP.
Review of the Year
2011/12 was another busy year for the organisation. 2012 saw the continuation of the
economic challenges of the last number of years with limited liquidity in the market place,
recessionary market conditions and falling property values, offset somewhat by a low interest
rate environment.
The management and staff of the organisation continued to implement the financial strategy
of growing income and tightly managing costs, while maintaining service levels.
This strategy has seen the organisation's operating financial performance continue to improve
year on year and has provided a level of reserves to support the College's strategy and to
protect against the negative effects of external factors.
During the year a number of key activities were undertaken which included the following:
Theorganisationsuccessfullyrefinanceditsloanfacilitiesoncompetitiveterms
Workwascompletedonthedevelopmentoftheorganisation'sStrategicPlan2013-2017
with significant work done by the Finance team to produce a financial model to support
this strategy, over the next number of years. A key element within this plan centres on a
70m investment in a state of the art education facility on our Irish campus.
The management and staff of the
organisation continued to implement
the financial strategy of growing
income and tightly managing costs,
while maintaining service levels.