CIMA's deficit increases to £2.5m
CIMA has today revealed a deficit of over £2.5m, as an axed IT project and restructuring and relocation costs cancelled the benefits of increases in membership and income.
In what it terms an ‘exceptionally difficult year due to the impact of the external market,’ CIMA’s expenditure grew by more than £2m. But it was the ‘exceptional charges’ of £2.5m that proved to be the thorn in the institute’s side.
In October the institute halted IBIS, a £1.6m IT project designed to add functionality to the membership system. According to CIMA: ‘The potential for added value had been diminished due to advances in technology and changing business requirements.’
The institute also spent £568,000 on reviewing its operating processes and £299,000 on its managing processes. It said the costs were due to ‘increasing emphasis on regulatory matters and member development.’
CIMA incurred another cost of £126,000 from relocating to bigger offices from Portland Place to Chapter Street. Refurbishing costs for the new premises cost the institute £3.3m.
The expenses came as CIMA saw its income from membership fees increase by over £1m whist overall income rose from £23m to £25.6m.
CIMA president Bruce Epsley said: ‘2002 will be a year when we raise the profile of our distinctive perspective on business and accounting issues and continuously develop and promote our unique qualification.’
