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account of the point on the financial
journey, the nature of the organisation
and key challenges and risks to the
environment. Certain boundaries must
also be considered, including those set
down under banking covenants. Debt to
date has been an important enabler of
growth but the current policy
of debt reduction continues
with investment plans being
funded in the majority through
the College's reserves. A level
of caution is built into the
financial planning processes
to provide for the building of
reserves to guard against the
potential negative effects of
the surrounding environment.
Overall, we need to maintain
robust financial management
systems so that we remain
competitive in the long term.
Activities
The main sources of revenue earned
by the College are from those activities
that are core to the organisation's
mission education programmes and
research. It also generates a lesser but
still valuable source of income from its
endowment portfolio and fundraising
activities. These reserves, together with
funds raised through debt, provide the
main source of financing for projects of
a capital or working capital nature.

Compliance
From a financial reporting perspective,
the international reach of the
organisation requires compliance
under various accounting standards
including International Financial
Reporting Standards (IFRS), Irish
generally Accepted Accounting
Principles (gAAP), US gAAP and
Private Malaysian Reporting Standards.
The governance of financial matters at
the College is carried out through the
Finance and Audit Committees, which
report to Council.
Review of the year to
30 September 2013
Overall in 2012/13, the organisation
produced a solid financial performance.
In the year, income grew by just over
2% together with a planned increase
of 5% in the cost base, as outlined
in the organisational strategic plan
growth & Excellence 2013 - 2017. This
strong performance contributed to the
strengthening in the organisation's net
asset value.
The management and staff of the
organisation are the main contributors
to the delivery of this performance.
The dual strand process of
income growth and effective cost
management remains in place,
to support the drive of continual
improvement in the quality of the
education and training programmes
offered. This strategy has resulted
in a steady improvement in the
organisation's annual operating
performance over the last number of
years. The generation of surpluses
is required to meet commitments
under both the organisational
strategy and debt servicing.
In the external environment, we
saw the continuation of minimal
inflation, historically low interest rates,
limited liquidity in financial markets
and volatility in some of the markets
in which we operate. Discount rates
rose, which had the benefit of reducing
pension scheme liabilities and the
reporting of a lower deficit at year end.
A strong operating surplus of 27m at
21% of income was generated in the
year, marginally down on the prior year
level, as a result of the strategic plan
investment programme.
FINANCIAL STRATEgY
Support the organisational
strategy while ensuring
disciplined financial
stewardship of an
international institution
Income 2013 (% of total)
Education and Training
Research
Endowments & Fundraising
Income 2012 (% of total)
Education and Training
Research
Endowments & Fundraising
77%
14%
9%
78%
13%
9%
Income 2013 (% of total)
Education and Training
Research
Endowments & Fundraising
Income 2012 (% of total)
Education and Training
Research
Endowments & Fundraising
77%
14%
9%
78%
13%
9%
FINANCE