CPA has reserves of over €1m

The Institute of Certified Public Accountants (CPA) has amassed reserves of more than €1 million in a drive to ensure public confidence in its capacity to carry out its regulatory functions.

The CPA has almost doubled its accumulated surplus in the past two years, according to its latest annual report.

CPA president Mr Alan Farrelly said the institute had achieved its objective of providing an annual surplus of 10 per cent of turnover in 2003.

The group has now decided that it has adequate reserves to meet regulatory requirements and will reduce its annual surplus target.

In 2003, the CPA had a surplus of €266,384, a rise of 15.6 per cent on 2002, on income that rose 19.3 per cent to €2.34 million.

In a year when the CPA again considered and rejected proposals to merge with the larger Institute of Chartered Accountants in Ireland (ICAI), it attracted a record number of new students.

A total of 555 students registered with the institute, a 37 per cent increase on the previous year and well above the previous high of 483, which was set in 2001.

The CPA now has 1,746 student members. However, the number of new members admitted in 2003 fell to 185, down on the 200-plus admitted in each of the previous three years.

The institute received 26 complaints against members last year, down on the 32 professional complaints registered in 2002.

The bulk were settled at an early stage but one member resigned and a further four cases have been referred for the disciplinary committee.

In addition, the institute is awaiting the consent of five members to reprimands from the investigation committee.

In four cases held over from 2002, one member resigned and one was reprimanded.

The CPA undertook a strategic review of the services on offer to members and students during 2003. Mr Farrelly said the review, which compared the CPA with more than 200 professional bodies in Ireland and Britain, would see the introduction of new services in 2004.

The CPA also reviewed its organisational structure and had since made certain changes within the executive team.