The Honorary Treasurer, Professor George Ikkos highlights some key areas about College finances

Governance structure

• As a registered charity the College is regulated by the Charity Commission. Its accounts are professionally prepared by finance staff and audited by external auditors.
• Full members of Council are Trustees of the College. By legal definition Trustees are those persons who are responsible for the general control, management and administration of the charity. The Trustees are therefore personally responsible for the College’s affairs including finances.

Income

• The College has diversified income streams. Membership subscriptions account for approximately 26% while the remainder includes publications, exams, College Centre for Quality Improvement (CCQI), education & training.
• Faculties, Sections, Divisions, and Special Interest Groups (FSDSIGs) and CCQI funds are designated and they can retain their surpluses.
• The College’s Development Fund was established in 1994 to finance future general developments within the College (e.g. the Fair Deal campaign). This has been done by means of a 15% contribution from specified income generating activities.

Expenditure

• The College spent £3.5 million in 2010 on leading, representing and supporting psychiatrists. This has been through actively promoting psychiatry as a career, providing dedicated support to our members, Faculties, Sections and Divisions and representing the expertise of the psychiatric profession to government and other agencies.
• In the last two years efficiencies and economies have been made particularly in the area of travel where an estimated £150k has been saved annually since implementation. Turnover has increased by 138% over the last ten years while central college support department costs (e.g. Human Resources, Finance) have remained relatively static.

Balance sheet

• The College’s finances enjoy high liquidity with 83% of net assets held in cash and £2 million invested in a portfolio under a discretionary fund management agreement. 2010 was a successful year financially despite the economic recession.

New Building

• One of the biggest financial challenges the College faces is raising the significant sum needed to secure new premises beyond the expiry of the lease on 17 Belgrave Square in 2034. In addition to the running and maintenance costs of £540k, the ground rent payable on the current lease is only £500 per annum.
• The College hopes to raise the necessary funds through fundraising and increasing surpluses. At present the College has ring-fenced only £3.4 million for the needed funds for the new building.

• The College’s summarised accounts