ICAI in red after cost of inquiries

The cost of inquiries into the activities of its members put the Institute of Chartered Accountants in Ireland (ICAI) into deficit last year. The institute's financial report shows that €2.5 million was provided for in the 2001 accounts in relation to three "public concern cases". This produced a deficit for the year of €1.4 million, which has absorbed the institute's reserves and left it with an opening deficit of €200,000 for 2002.

The Blayney Inquiry and the associated appeal process has cost the ICAI more than €3 million. Of this, €1.9 million is provided for in the 2001 accounts. The inquiry, which followed evidence about certain members during the McCracken (Dunnes Payments) Tribunal, is currently being delayed by legal action taken by Mr Paul Carty, a retired former general manager of Deloitte & Touche, and the accountancy firm. The matter is due for mention in court next Monday.

The three public concern cases ongoing during 2001 were:

the Appeal Committee arising out of the Blayney Inquiry;

an ongoing committee inquiring into matters to do with Powerscreen International plc;

an inquiry subsequent to the DIRT inquiry by the Dáil Committee of Public Accounts.

In the last case, Prof Ian Percy found there was no prima facie case against the auditors involved. The ICAI has abandoned its policy of seeking a breakeven budget. It plans to build up a €6 million reserve fund over the coming five years and has increased subscriptions for 2002 by 20 per cent.