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RCSI ANNUAL REPORT 2014-2015
80
over half of the operating costs were
represented by staff costs. The College
employed, 980 full-time equivalent
staff, an increase of 3% on 2013
levels, supporting such student facing
initiatives as small group teaching,
student services and simulation
programmes.
Cost management is a continual
focus for the organisation to ensure
it continues to seek efficiencies in
business practices with the increased
use of technology and centralised
support infrastructures. Work is
underway regarding the application of
Lean management principles and the
potential to redirect staff time to more
value added activities, particularly in the
support functions.
A strong operating surplus was
generated, broadly unchanged over
last year at
28m or 20% of income,
as a result of the dual strand process
of continuing income growth and
effective cost management. The various
investment initiatives under the quality
agenda will see the cost base rise, but in
a planned and measured way.
The College continued its capital
investment programme which is focused
around improving the educational infra-
structure and student facing facilities.
In 2014, the programme accelerated
with the commencement of a significant
development of a state-of-the-art
education building on York Street. This
builds on the investments over the last
number of years in student residences,
library and laboratory facilities and ICT
infrastructure.
Free cash flow was broadly breakeven
in the year, slightly down on 2013 levels
with the advancement of the capital
investment programme.
The net asset value of the organisation
has continued to strengthen year on
year providing a firm foundation on
which to grow. At 30 September, 2014,
the value stood at
162m, showing a
positive movement in the year. This
improvement is accounted for by the
strong annual operating performance
together with the unrealised net gains in
respect of improved property valuations
as the market recovers in Ireland and a
positive currency impact as a result of a
stronger US dollar. There was a negative
movement in the defined benefit
pension scheme deficit as bond yields
continued to fall.
Conclusion
2013/14 was another strong year
financially for the College. Significant
progress has been made over the last
number of years improving the operating
model, and the results delivered in
the year demonstrate the ability of the
funding model to support the strategic
plan.
Despite the progress made, we need to
continually be conscious of the potential
negative effects of the uncertainties in
the markets in which we operate. We
need to be vigilant in our approach in
the assessment of growth opportunities,
to continually look for efficiencies in
our operations and consider always the
long-term effects of decision making on
the funding model. We see the continued
volatility in markets and continue to
monitor the business risks of market
competition, interest rate and currency
risks, inflationary pressures and ensuring
regulatory compliance. We work to
reduce, where possible, the volatilities in
the funding model, build contingencies
to guard against uncertainties in the
external environment and retain a level
of flexibility in our planning to enable
us to be responsive to a changing
environment.
The key financial priorities for the year
ahead include:
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Financial performance continuing to
deliver a financial performance in line
with strategic plans;
The College
continued its
capital investment
programme
which is focused
around improving
the educational
infrastructure and
student facing
facilities.
ROYAL COLLEGE OF SURGEONS IN IRELAND
Year ended 30 September 2014
Annual operating statement
Year
2014
millions
2013
millions
Operating income
138
129
Operating costs
(110)
(102)
Operating surplus
28
27
Capital programme
(27)
(24)
Surplus of income over expenditure
1
3
Balance Sheet
Net assets
162
88