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RCSI Committed to Education Excellence
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Arestructureofthedefinedbenefitpensionschemewasundertakenandafunding
proposal was approved by the Pensions Board that aims to balance the asset and liability
model over a ten year period
Workprogressedwithour3Upartners,DublinCityUniversityandNationalUniversityof
Ireland, Maynooth under the 2012 collaboration agreement.
Activities in Ireland
RCSI reported a strong fi nancial performance in the year ended 30 September 2012.
In 2011/12, the organisation reported an 11 per cent increase in income through the
attainment of student recruitment targets and the delivery of a number of new initiatives
including the management of the student residence facility. Effective management of the
cost base continued, with a marginal increase in costs of just 1 per cent. An increase in the
operating surplus in the year of 11m to 29m (2011: 18m) was reported.
Under accounting rules, annual independent valuations of the property portfolio and defi ned
benefi t pension fund are required. In the year, the value of the property portfolio was
impaired by net 3m, which was at a reduced level over that experienced in the prior year
(2011: 12m). The overall fall in property values brought their values in line with market rates.
Like many organisations, the College has seen property values fall by almost 60 per cent on
their peak values in 2008. Given the prime location of these properties, values are expected
to recover in the medium to long term and plans are being considered in this regard. All
properties are fully let. The restructure of member benefi ts in the College Defi ned Pension
Scheme, resulted in a once-off gain in the year but the overall pension defi cit increased as
a result of the valuation of accrued liabilities using market discount rates at 30 September
2012. The effect of both the property and pension valuations saw a net loss of 12m in the
year compared to a cost of 3m in 2011, resulting in an overall gain reported of 17m
(2011: 15m).
This continued strong fi nancial performance saw the organisation strengthen its net asset
position from 34m in 2010/11 to 50m at 30 September 2012 and resulted in a positive
cash fl ow in the year. Cash generated is needed to fund investment in core education
programmes, infrastructural investment and servicing of debt. Cash management continued
to be a key focus for the organisation and the policy of diversifi cation of cash holdings across
a number of fi nancial institutions was maintained, given the volatility in fi nancial markets.
The College continued its capital investment programme which was focused around
improving the educational infrastructure, undertaking signifi cant investment in student
residences and library facilities at a cost of 5m.
Ms Jennifer Cullinane
Director of Finance
The College continued its capital
investment programme which
was focused around improving
the educational infrastructure,
undertaking signifi cant investment
in student residences and library
facilities at a cost of 5m.