ICAEW membership has continued to rise, ending the year at 147,538, while 2016 was a record year for student numbers, which reached 25,822, up from 24,149 the year before.

Income from qualifications (learning and professional development income) increased by £1.4m, reflecting the record ACA and CFAB intakes in the past three years. 

Operational income was £100m, an increase of £3.1m compared with 2015, and the institute’s operational surplus was £0.8m (2015: £0.3m). In addition, ICAEW received £6.7m in fines and £3.8m of cost recoveries from Financial Reporting Council (FRC) disciplinary cases, the culmination of investigations conducted over a number of years which have been funded by ICAEW.

The annual report indicates that ICAEW membership income growth was £800,000. Net assets at 31 December 2016 were £46.7m, an increase of £3.5m over the 2015 net assets of £43.2m. Cash and cash equivalents ended the year at £11.9m, reflecting a net cash inflow of £1.6m in the year, after £1.8m contributions to reduce the pension scheme deficit and £5.4m cash contributions to FRC case costs.

Total cash and investments stood at £52.2m at the end of the year, an increase of £5.2m on 2015. The consolidated outcome for the year, including the results of ICAEW’s charitable trusts, was a surplus after tax of £11.4m (2015: £7.2m).

Revenue from members’ fees and subscriptions rose by 2% to £46m, which ICAEW said reflected the continued steady growth in membership and what it called ‘a modest increase’ in membership fees.

Regulatory (professional standards) income rose by £200,000, which ICAEW said was down to the changes in the number and mix of registered firms and fee increases to cover the cost of regulation. The institute’s commercial income increased to £11.6m, (up £0.6m on 2015).

ICAEW’s operating expenditure increased to £99.3m, excluding cost recoveries from concluded FRC cases, which the institute indicated related to the increase in student numbers pushing up direct costs, including exams.

Michael Izza, ICAEW chief executive, said: ‘2016 was a year of change for ICAEW. It was the final year of a strategy review that has seen us transform from being a UK body to becoming a truly international organisation with a growing membership and increasingly global student base.

‘Our marketplace has changed considerably over the last decade and it is vital that our strategy continues to evolve so that we remain relevant to our many audiences around the world.’

According to the annual report, over the course of the 10 year strategy ICAEW has grown its membership by 19,000 (15%), while student numbers are up by over 120%, including a seven-fold increase in those students outside the UK. ICAEW’s annual student intake has increased by over 75%, and the institute has established four international regions and now has offices in nine countries.

Izza said: ‘We have developed our vision alongside the launch of our new brand – to achieve a world of strong economies. This means that we will work with others to develop strong, accountable and open economies where people can trust data, leaders can make good decisions, public finances are transparent and businesses are accountable.’

ICAEW is holding a live video chat about its 2016 results with Michael Izza answering questions on 17 May.

ICAEW’s annual review is here.