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79
REVIEW OF THE YEAR
TO 30 SEPTEMBER,
2014
In 2013/14, the organisation delivered
a solid financial performance in
terms of its annual operating model
and strengthening net asset value
position, providing a firm foundation
for the continued support of its
mission of driving positive change
through education and research in the
healthcare environment worldwide.
The main sources of revenue earned
by the College are from those activities
that are core to the organisation's
mission being degree awarding
activities, professional postgraduate
training programmes and research. It also
generates income from its endowments,
fundraising and other ancillary activities.
The majority of the income earned
continues to be from the degree-
awarding activities as outlined in the
chart.
In the year, income at
138m showed
a 7% growth on 2013 levels. This
improvement was achieved mainly
through strong student recruitment
levels, growth in research income and
various activities relating to accreditation
projects, National Office for Clinical
Audit and RCSI's appointment as the
operational body for the Irish Institute
of Pharmacy. Student numbers stood at
3,733: 2,196 undergraduates and 1,537
postgraduates.
RCSI receives minimal public and state
funding with less than 18% earned from
such sources during the year. It makes
a significant annual contribution to the
local economy. It is estimated that RCSI
generates about
25m annually through
employment and other taxes, with an
equivalent amount accruing from the
multiplier effect of international students
to the economy. With its ranking in the
top 50 most international universities in
the world, RCSI also contributes to the
building of Ireland's reputation as an
international centre for education.
Operating costs increased by just under
8% to
110m year-on-year, marginally
higher than the rise in the income
growth rate. The organisation continued
to benefit from a low interest rate
environment and minimal inflation levels
with the increase in costs mainly due
to strategic initiatives across the three
themes of people, programmes and
campus infrastructure. A key component
in the delivery of any service is staff
and in the higher education sector staff
costs represent a significant percentage
of the total cost base. In 2014, just
general financial management targets
while ensuring the organisational
strategic funding requirements can
be met. Robust assessment of new
opportunities and consideration of
the long term effects of decisions are
necessary to ensure the sustainability
of the model and the longevity of the
organisation.
FINANCE
It is estimated that
RCSI generates
about
25m annually
through employment
and other taxes, with
an equivalent amount
accruing from the
multiplier effect of
international students
to the economy.
Robust financial management
>
The funding model must take account
of a number of financial commitments
of the organisation including those
set out under banking facilities,
the nature of funding sources and
retaining a level of flexibility to
allow responsiveness to a changing
environment. There is a strong focus
on generating a positive net cash
inflow annually to ensure RCSI can
meet its commitments in respect of
day-to-day expenses, working capital,
debt servicing and infrastructural
investment. A level of caution is built
into the financial planning processes
to guard against the potential
negative effects of unforeseen events
to ensure the sustainability of the
model and its competitiveness in the
long term.
Supporting the organisational strategy
>
The organisation's strategic plan
outlines the investment ambitions
around the continual enhancement
of the quality of the programmes
and the supporting infrastructure,
together with its growth ambitions.
The financial planning framework
identifies the appropriate funding
source and mix from debt
financing, cash generated through
annual operations, reserves, and
philanthropy. To date, debt has been
an important enabler of growth. The
current plans are that the majority
of the investments will be funded
through reserves built up over the last
number of years. Over the medium
term, it is intended to develop a
stronger capability in philanthropy.
Income 13/14
138m
6%
12%
Endowment, fundraising and ancillary
Professional post graduate training programmes
External Research
Degree awarding activities
13%
69%