ANNUAL REPORT AND ACCOUNTS 2010 - ICAEW

ANNUAL REPORT AND ACCOUNTS 2010HIGHLIGHTS OF FACULTY ACTIVITY IN 2010BUSINESS WITH CONFIDENCEicaew.com/fmfac

NOTICE OF ANNUAL GENERAL MEETING 2011Notice is hereby given that the 17th annual general meeting of the Finance and Management Faculty will be heldat 18:00 on 16 June 2011 in the Boardroom at Chartered Accountants’ Hall, Moorgate Place, London EC2R 6EA,for the following purposes.1. To receive the annual report and financial statement of the Finance and Management Faculty, for the yearended 31 December 2010.2. To receive a report on faculty committee membership changes from May 2010 to May 2011.3. To receive a report of the results of the elections to the faculty committee in 2011.4. To answer questions about the activities of the Finance and Management Faculty.The formal proceedings begin at 18:00. Refreshments will be available.CHRIS JACKSONHead of facultyT +44 (0)20 7920 8525Notes: A member of the faculty is entitled to attend the meeting and, on a poll, vote in person, or vote by proxy. The headof the Finance and Management Faculty must receive your proxy instruction at Chartered Accountants’ Hall, Moorgate Place,London EC2R 6EA by noon on 14 June 2011. You can get a form of proxy from the head of the faculty at the same address.Even if you have voted by proxy, you can still attend the meeting and vote in person, but you must tell the head of facultybefore the meeting that you intend to do this.2 Finance & Management Faculty Annual Report And Accounts 2010

CHAIRMAN’S REPORTalso seen steady growth with the faculty’s LinkedIncommunity, which now boasts a network of 644finance and management professionals.‘I am pleased to report another successfulyear for the faculty as we supportedmembers through 2010.’2010 has clearly been a difficult year for financeand management professionals dealing with theinevitable challenges presented by the downturn.While the outlook remains uncertain with the end ofstimulus packages and the gradual impact of publicsector cuts, there is hope that government plans tosupport the private sector will bring about muchneeded growth in the future. Throughout this periodof transition, the faculty has been quick to respondto the changing needs of members, providingpractical advice and support on a range of topics.In addition to the faculty’s highly-regarded andwell-established events programme covering subjectssuch as practical financial modelling and masteringforecasting, the faculty introduced a roadshow onthe subject of influencing and negotiating skills,which visited seven UK locations. Another particularhighlight of the year was the evening we arrangedwith Lucy Kellaway. The journalist and FinancialTimes management columnist revealed some ofmanagement’s silliest expressions and discussed her‘pyramid of piffle’, which ranks HR at the top andaccountants at the bottom.I have been particularly impressed with the specialreports issued in 2010. The reports, which providean in-depth look at a major topic, such as starting abusiness or finance transformation – the outsourcingperspective, are a useful source of information for abroad range of businesses.I am also delighted to report that good progress hasbeen made with the electronic delivery of servicesto members, which is particularly beneficial to ourgrowing international membership. We are buildingon the success of our extensive web resource andmonthly electronic bulletins to provide webcastsand edited recordings of faculty events. We haveThe faculty has continued to drive theFinanceDirection thought leadership programme,which encourages debate around the challengesfacing the finance function and its leadership, thefinance director, or CFO. The focus in 2010 wasto present and discuss ideas on finance functioneffectiveness with various stakeholder groups.Our work facilitated successful engagement withacademic and practitioner audiences from the UK,US, Europe and Asia.Despite all of this good work, the faculty hasnot been immune to the economic climate andgrowing membership has been a challenge. Facultymembership numbers at the end of 2010 were 8,131(8,758 in 2009) which under the circumstances isrespectable. We are acutely aware of the pressuresfacing members in the current environment andas a result held the faculty subscription rate for thesecond year running. The faculty finances remain inrobust health thanks to a combination of increasedevent revenue and cost savings, which were achievedwithout reducing the quality of services.Looking forward to 2011, I expect it will be anotherbusy year for the faculty. It is clear that membersand their businesses will continue to be stretched inmany ways and challenged to adapt to new marketconditions. The faculty will endeavour to be asresponsive as ever, providing timely and appropriatepractical support and technical advice to supportmembers through these uncertain times. Our aimis to continually evaluate and evolve our service tomeet the needs of members and we would of coursewelcome your feedback (fmfac@icaew.com).Underpinning much of what the faculty provides formembers is the work of the faculty committee andof course the faculty staff. I would like to take thisopportunity to express my sincere thanks to thevolunteers who have contributed so much time andeffort to the faculty’s success in 2010, and the facultyteam for making it all happen.Carolyn BreshChairman, ICAEW Finance and Management FacultyFinance & Management Faculty Annual Report And Accounts 20103

HIGHLIGHTS FROM 2010MEMBERSHIPIndividual faculty membership in 2010 was 8,131 and the faculty also had the support of three corporate memberfirms through the faculty’s corporate membership scheme.TECHNICAL EXCELLENCE• The Finance Direction thought leadership initiative engaged academic and practitioner audiences from theUK, US, Europe and Asia to discuss ideas on finance function effectiveness.• The faculty submitted ICAEW REP 115/10: Competent and versatile: how professional accountants in businessdrive sustainable organisational success.PROFESSIONAL DEVELOPMENTFACULTY EVENTSThe faculty held 22 events in 2010 including four events specifically for the Women in Finance network and aroadshow which visited seven UK locations and attracted 457 delegates.Faculty events covered a wide range of topics including:• Influencing and negotiating skills workshopsRick Payne and Tony Powell• Positive politics at workSiobhan Soraghan• Difficult people made easyNancy Slessenger• Managing your team more effectively –Women in Finance networkRachel Daniel• Influencing and negotiating skills roadshow(seven locations)Rick Payne and Tony Powell• Mastering forecastingSteve Morlidge• Practical financial modellingJohn Tennent• Work endurance in the 21st century –Women in Finance networkSiobhan Soraghan• Business/tax challenges for the new governmentAnita Monteith and Ian Young• Further practical financial modellingJohn Tennent• Customer profitability analysisJohn Petty• Achieving your potential –Women in Finance networkToni Eastwood, Sarah Hunt and Vicky Annis• An evening with Lucy KellawayLucy Kellaway• Financial reporting updateAndy Simmonds and Brian Shearer• Networking to suit you –Women in Finance networkClare Concannon• Finance transformation –the outsourcing perspectiveCarole Murphy4 Finance & Management Faculty Annual Report And Accounts 2010

PUBLICATIONSThe faculty published 11 issues of the Finance & Managementmagazine, which contains a wide range of news, views andarticles on many topical issues. The faculty also published fourspecial reports, which provide an in-depth look at a major topic.Topics covered in the faculty’s special reports included:• starting a business• IFRS – A briefing for chief executives, audit committees andboards of directors• developing a vision for your business• finance transformation – the outsourcing perspective.Topics covered in faculty publications included, for example:• gorgeous dashboards• how to succeed in a senior finance role• mastering forecasts• how to hire the ‘A-players’• beating silos into shape• practical financial modelling• why do so many balanced scorecard implementations fail?• measuring the success of the board• the constraints on strategy• an evening with Lucy Kellaway• behavioural economics – the challenge of seeking investment• winning KPIs in SMEs.Finance & Management Faculty Annual Report And Accounts 20105

FINANCIAL STATEMENTYEAR ENDED 31 DECEMBER 2010Note 2010 2009 restated£000 £000IncomeFaculty subscriptions 632 695Events income 41 20Sponsorship and advertising 47 47Interest on funds held 5 25Miscellaneous income 1 –Total Income 726 787ExpenditureEmployment costs 365 367Events, conferences, roadshows 47 41Newsletter, publications, mailings 251 266Marketing and PR 11 2Travel and subsistence 4 2Internal recharges 117 164VAT 8 6Miscellaneous 2 3Defrayment of costs by ICAEW for faculty activities which benefitall ICAEW members(210) (201)Total Expenditure 595 650Surplus for the year 131 137Share of IAS19 actuarial gain/(loss) 1 39 (64)Surplus brought forward from previous year 483 410Surplus carried forward 653 483Carolyn BreshChairmanThe presentation of the financial statements has been revised to reflect the income and expenditure more accurately. 2009 figures have beenre-analysed in line with this presentation, this has no impact on the reported result.Note 1 Under International Financial Reporting Standards, ICAEW is required to recognise the surplus on its defined benefit pension scheme infull. The faculty’s share of the 2010 actuarial gain was £39k (2009: loss of £64k).ACCOUNTANTS’ REPORT TO MEMBERS OF THE FINANCE AND MANAGEMENT FACULTYWe have examined the financial information for the year ended 31 December 2010 set out above and tested, on a sample basis, items ofincome and expenditure shown therein.This financial information has been properly extracted from the books and records of ICAEW, of which we are auditors and on whose financialstatements we have issued an unqualified audit opinion on 15 March 2011.Grant Thornton UK LLPChartered Accountants and Registered AuditorLondon6 Finance & Management Faculty Annual Report And Accounts 2010

COMMITTEE AND OTHER GROUP MEMBERSHIP(AS AT 31 JANUARY 2011)FACULTY COMMITTEECAROLYN BRESH, EVERYMIND (CHAIR)TONY POWELL, CONSULTANT (DEPUTY-CHAIR)PAUL CHAN, CONSULTANTJOHN FERGUSON, CHARITY TRUSTEEDANIEL HOLDEN, SECURE TRADING LTDHELEN JESSON, PITNEY BOWES INTERNATIONALSIMON JONES, BTLEONARD JONES, PRACTICAL CAR AND VAN RENTALPROFESSOR BOB SCAPENS, MANCHESTER BUSINESS SCHOOLJUDITH SHACKLETON, TELECITYGROUPDR PHILIP SMITH, TURNAROUND PROFESSIONAL (C)*PATRICIA SPREULL, PENSION TRUSTEE DIRECTORHELEN STEVENS, INSEAD ALUMNI ASSOCIATIONMICHAELA TALBOT, DAXBOURNE INTERNATIONAL LTDJONATHAN TELLER, CONSULTANT (C)ROB THOMPSON, RBSNICOLA VEALL, FSA(C) Member of council* Faculty representative on councilFACULTY STAFFCHRIS JACKSON, HEAD OF FACULTYchris.jackson@icaew.comPublicationsEMMA RIDDELL, TECHNICAL MANAGERemma.riddell@icaew.comThought leadershipRICK PAYNE, FINANCE DIRECTION PROGRAMMErick.payne@icaew.comMembership and eventsCAROLINE WIGHAM, SERVICES MANAGERcaroline.wigham@icaew.com(maternity leave)AUDE BEZLER, SERVICES MANAGERaude.bezler@icaew.comFinance & Management Faculty Annual Report And Accounts 20107

ICAEWChartered Accountants’ HallMoorgate Place LondonEC2R 6EA UKT +44 (0)20 7920 8486F +44 (0)20 7920 8784E fmfac@icaew.comicaew.com/fmfacTECPLM10270 04/11