ICAEW wipes out £1.2m deficit but misses student target 

While the total student intake was the highest ever, at 7,478, made up of 5,656 ACA students and 1,822 studying for the Certificate in Finance, Accounting and Business (CFAB), the ICAEW failed to hit its 2013 performance targets for attracting new students.

The numbers of CFAB students doubled, from 903 in 2012 to 1,822, but this was 100 less than the target total for this year. There was also a shortfall of around 800 in the total number of ACA students, with 5,656 signing up in the year compared to an expected 6,535, well below 2012’s total of 6,201. ICAEW has revised next year’s ACA student target down to 6,170, while it anticipates attracting more applicants for the entry-level CFAB qualification (2,190).

‘Our student intake was below the ambitious target set as the economic situation continued to weigh on recruitment in a number of significant markets. A number of developments in 2013 will provide us with tools to address this, together with a greater focus on developing recruitment to ICAEW qualifications,’ said ICAEW in a statement.

The total income was £87.6m, £4.9m higher than in 2012. The retained surplus after tax for the year was £2.2m, compared with a deficit of £1.2m the previous year.

The institute said this reflects membership income growth of £1.9m and income growth from its qualifications and regulatory areas, ‘together with a tight control over our cost base’. Membership grew to 142,334, beating the ICAEW’s target by 200.

The institute’s results include the receipt of fines and costs recovered from the Financial Reporting Council (FRC) conduct committee amounting to £1.3m, although the net case cost charge for 2013 was £2.8m compared with £1.8m the previous year.

The figures also include ‘the release of a provision of £1.8m made in 2012 in connection with uncertainty over outcomes of certain commercial matters resolved successfully in the year with revised terms’.

There was also progress in reducing the pension deficit with a £4.8m contribution towards paying down the current shortfall.

The institute will be looking at ways to use new technology such as ‘massive open online courses’ (MOOCs) to deliver professional qualifications.

There are also plans for ICAEW to extend its reach as more members move to alternative business structures and offer probate, and it says it will be looking at other areas of reserved legal services in 2014.

Deloitte offers flexible working to all staff

Deloitte has launched an ‘agile working programme’ with more flexible working arrangements in a bid to change the culture at the firm and encourage more women into leadership roles, saying this will lead to improvements in organisational performance.

As well as the right to request a formal flexible working arrangement, the Big Four firm will allow its 12,000 employees to request a block of four weeks unpaid leave each year, without reason or justification.

These developments will underpin wider measures to encourage a more flexible workplace, including the introduction of collaborative and adaptable working spaces, an environment that supports open conversations about agile working and improvements to technology.

David Sproul, chief executive of Deloitte, said: ‘We have set ambitious targets of 25% female partners by 2020 and 30% by 2030. In order to achieve these we must improve our pipeline of future female leaders by making Deloitte a place that offers the opportunity to be successful while maintaining a healthy work-life balance. This is about more than doing the right thing – a clear business imperative has been identified.’

Deloitte says it plans to go beyond the traditional flexible working allowances by giving employees the power to manage their own working practices. While it expects the changes to benefit women members of staff in particular, it says they will also help the firm attract and retain talent at all levels, increase productivity and commitment and make more effective use of office space with more hot-desking.

Emma Codd, managing partner for talent at Deloitte, said: ‘These changes are about striking the right balance between offering the tools to allow people to work wherever and whenever is best for them, trusting them to make the right decisions and judging them on output. The feedback we’re receiving from our people is already overwhelmingly positive.’

Aspen Waite extends reach with Pinder Cox merger in South West

Somerset accounting firm Aspen Waite has merged with Dorset accountancy practice, Pinder Cox, to strengthen its base in the West Country. Under the terms of the merger, Pinder Cox will become the Dorset branch of Aspen Waite and all members of staff will remain in post, with current managing director, Mark Stanton heading up the Dorset office.

The newly merged firm will be branded as Aspen Waite and will have six offices with 30 permanent employees and some self-employed staff.

The practice turnover after the merger is £1.8m on the accountancy side. In the wider group, which includes the legal practice, turnover is around £3m with another five executives and more self-employed affiliates.

Aspen Waite chief executive, Paul Waite said: ‘I am extremely proud to announce this merger. We believe in building a business around people and Pinder Cox has a great team.

‘While Aspen Waite may have its roots in Somerset, we have always been very active throughout the South and East. We have clients across the region, our largest being in Hampshire. Dorset is therefore very important to us, giving us representation throughout the South and South West. It is also a very interesting area for us, one which could benefit hugely from our multi-disciplinary services.’

Mark Stanton, managing director of Pinder Cox added: ‘This is a great step in the history of Pinder Cox. We already have a highly experienced team but, by combining forces with Aspen Waite, we will be able to offer our existing and future clients more services and expertise.

‘Although we will be part of a larger operation, we will continue to be a local firm helping clients grow their business and achieve their goals. We pride ourselves on our service and this merger gives us real opportunities to offer more and better.’

Diversity priority for incoming ICAEW president

The new president of the ICAEW, Arthur Bailey, has promised that the next year will see the institute undertaking work to shape the future of the profession, to ensure that accountancy practice remains relevant to modern business.

Speaking at his inaugural lunch, Bailey highlighted two initiatives to be launched this year, focusing on practice growth and recruitment.

The first, which kicked off in June, is a project called Tomorrow’s Practice, looking at how practice will change over the next few years. This will be followed by a tax assembly initiative to rethink the tax system for the 21st century.

Bailey also pledged to focus on encouraging young people of all backgrounds into chartered accountancy, after being inspired by his own start as a school-leaver in a local firm where he was mentored by senior staff.

‘Young people are the ones who are going to take this wonderful profession forward. That is why I’ll be focusing on what we are doing to increase access into chartered accountancy. I’m also pleased to see chartered accountancy go back to its roots, with ICAEW offering apprenticeships and new ways to train with authorised training principals,’ Bailey said.