cima annual review 2001

Annual Review

2001

01 Message from the President 04 Key Messages 08 Operational Review 14 Financial Summary 18 Council Members and Representatives

2001 has seen CIMA move forward in all areasof activity, strengthening its relevance to business,its value to members andits position as a preferredsupplier of financialmanagement skills andexpertise.

Message from the President

CIMA ANNUAL REVIEW 2001 01

Bruce EpsleyPresident

The number of members (57,618) and students (75,263) was at recordhighs, with total membership andstudents standing at 132,881 at the year-end. 26.4% of members and 34.6% of students are basedoutside the UK. 3,260 studentscompleted their exams and progressedto passed finalist status, while 3,377passed finalists were admitted tomembership.

Our key aim has remained constant, to protect and enhance employability of CIMA members and current andfuture students by: –

• Promoting our distinctiveperspective on business andaccountancy issues

• Continuously developing and promoting our uniquequalification as relevant andvaluable to business

• Adding value to membershipthrough a growing portfolio of career-enhancing services

• Building efficient and effectiveoperations to support all this work.

The CIMA perspectiveFounded on the collective knowledge and experienceof a professional body entirely focused onmanagement accounting, the CIMA perspective hasbeen directed towards all the key issues faced byFinance Directors and their staff across all businesssectors and sizes. CIMA has a strong business focus,which is grounded in our syllabus. We are thereforeable to comment objectively on accounting issuessuch as the development of international accountingstandards, and auditor independence where we haveinitiated a high level review.

CIMA has consistently supported the independentregulation of the accountancy profession. Recentevents have reinforced the need to restore publicconfidence in the profession and in auditing inparticular. In this context the establishment of theAccountancy Foundation, as an independentregulatory body, could not be more timely. CIMA hasparticipated in the development of the Foundation,along with the other accountancy bodies in the UKand Ireland, in the expectation that it will provide arigorous, robust and business focused frameworkwhich will oversee the regulatory regimes of theparticipating bodies. It must be noted however thatit does not prevent people who are not members of any of the bodies from using the title accountant– a significant weakness we would like to seeaddressed.

CIMA has also been active in the internationalprofession, through its Chairmanship of the Financialand Management Accounting Committee of theInternational Federation of Accountants, and hasstrengthened its partnerships with professionalbodies, particularly in the USA and Australia.

A distinctive qualificationIn 2001, we moved forward to examine the newsyllabus, which was designed to ensure continuingrelevance of the qualification to the employer. The new three-hour case study at the Final levelchallenges students to demonstrate their ability to apply textbook theory to the real-life businesssituations they will be faced with as CharteredManagement Accountants. This, coupled with our ability to offer the flexibility of computer basedassessment at the Foundation level, is clear evidenceof how we are developing the qualification tomaintain its relevance, improve accessibility andsecure future growth for CIMA, in both reputationand numbers.

Employer and CIMA support of students is central to their success in the exams. In the results for theNovember 2001 exams we saw clear evidence of this support with improved pass rates whilst examstandards of course remain unchanged.

02 CIMA ANNUAL REVIEW 2001

Message from the President continued

Adding value to membershipThe strength of CIMA is its members and studentsand over the past year we have increased the ways in which we can offer support, in the ever wideningrange of career paths available to CharteredManagement Accountants. Through our worldwidelocal networks, the website and our commercialactivities, we are providing an ever increasing rangeof targeted products and support services. Theseinclude a new range of technical briefings, aprogramme of over 90 Mastercourses, and, in theUK, a new programme of local events called Biz.Net.

We launched a round table to address the issue ofStrategic Enterprise Management, in which some ofEurope’s largest companies are involved. The aim ofthe round table is to investigate the most efficientway business can marshall the vast amounts ofavailable internal and external data to enableeffective strategic decisions to be made in today’srapidly changing business world. In September weheld Global Business Management Week whichaddressed "Harnessing creativity to increase thebottom line", a week of events around the world.

OperationsUnderpinning this front-line work has been majorchanges in our operations and infrastructure. In June,Charles Tilley joined CIMA as Chief Executive, frominvestment bank Granville Baird. In October, wemoved our London headquarters to Chapter Street,Westminster, to modern, open plan premises whichwill support efficient and effective business operations.

Financially, 2001 was difficult for CIMA as a result of exceptional costs. The impact of halting a major IT project was compounded by the costs of movingpremises and the downturn in equity valuationsadversely impacting the value of our investmentportfolio. We had a net reduction of assets of £5 million which comprised a restructuring andrelocation charge of £2.6 million and reductions of £1.4 million and £1 million in the values of our investment portfolio and Portland Place leases respectively.

Since the year-end our liquid reserves have beensubstantially increased through the disposal ofPortland Place.

Looking to the future, we plan to announcesignificant changes to our qualification range andstructure and to develop our Continued ProfessionalDevelopment programme. Internationally we will be seeking alliances to improve the employability ofour members in the major economies of the world.We will continue to actively contribute to thedebates on the public interest, which is so vital toretaining confidence in the profession, and on theimplementation of Company Law reform.

We will launch a major update of our website tofurther develop our communication with all ourmembers and students and to promote CIMAproducts and services across the internationalbusiness community. We are also looking at theworkings of Council, to ensure both effectivenessand efficiency in the members’ representation andgovernance of CIMA.

The status of CIMA has never been higher. 2002 will be a year when we continue to build the CIMAbrand and a sound foundation for our futureoperational infrastructure. Brand building, as we allknow, is expensive but rather than fall short on this,the challenge for CIMA is to generate the resourcesto enable us to go forward.

Bruce EpsleyPresident

Growth: membership and student numbers continue to rise



Distinction: the charteredmanagement accountancyqualification groundedsolely in business


Relevance: a qualificationthat is constantly evolvingto meet business needs

Support: adding value to membership throughtargeted products andservices



Accountability:commitment to regulationand the highestprofessional standards


The CIMA perspectiveThroughout the year, CIMA has been committed to developing public understanding of the role of the accountancy profession, through our timely and positive contribution to the debate on securingand maintaining public confidence.

CIMA, along with the other members of theConsultative Committee of Accountancy Bodies(CCAB), has made a commitment to independentregulation of the UK profession under the broadcriteria, ‘effectiveness, independence andtransparency’ set by the Department of Trade andIndustry. The Accountancy Foundation is the newbody which will regulate accountants in the UK. It is independent of the accountancy profession and its aim is to ensure that ethics and standards are framed and administered in the public interest. The Accountancy Foundation oversees a number ofBoards, – The Review Board, The Investigation andDiscipline Board, The Ethics Standards Board and The Auditing Practices Board. They will be able toscrutinise the activities of the participating bodies.For example, CIMA’s disciplinary processes will bereviewed to ensure that they are open, transparentand of a consistently high standard.

Preserving public confidence in the professionalpractice of all our members and students is a keytheme for 2002. Now more than ever, it is the role of company directors, rather than auditors, to ensuregood corporate governance by respecting the spiritand principles of international standards and bestpractice. Chartered Management Accountants arethe key customers of those offering audit servicesand CIMA is therefore keen and uniquely well placedto review the issues surrounding the independenceof auditors. We are therefore putting together ahigh-level panel to report on these issues beforeSeptember 2002. CIMA recognises that robustinternational standards are crucial to investorconfidence and the healthy functioning of capitalmarkets. We continue to provide input to the UK Accounting Standards Board in respect of thedevelopment of new UK standards and the movetowards international convergence. We have alsobeen actively involved, through the Fédération desExperts Comptables Européens (FEE), in the intendedmove by the European Union to the adoption ofInternational Financial Reporting Standards (IFRS) by 2005. The International Accounting StandardsBoard (IASB) came into being in April 2001. With its agenda and timetable now in place, CIMA'sactivities in this area will increase.

Internationally, CIMA has taken a leading role in thework of the Financial and Management AccountingCommittee (FMAC) of the International Federation of Accountants (IFAC). Under the chairmanship of Bill Connell, a member of CIMA Council, FMAC haspublished a wide range of material (all available freefor download on the IFAC web site at www.ifac.org)and has a full programme of work on a range oftopics. A Profession Transforming: From Accountingto Management (published in March 2001)documented the movement from accounting tomanagement and the responses to it of twelveprofessional associations in six countries. CFO2010 – The Role of the Chief Financial Officer in 2010,published in January 2002, featured ten interviewswith leading CFOs of global companies includingBOC, Jardine Matheson, Microsoft, Philips, Ericssonand Siemens.

Building the CIMA qualificationThe continuing demand for the CIMA qualificationamongst employers is clearly demonstrated by theupward trend in members and students over the past 5 years. During the year, 3,377 new memberswere admitted and 3,260 students successfullycompleted their exams. Some 73,000 papers weresat in the first exam of the revised CIMA syllabus.May 2001 saw the successful introduction of a threehour case study at the Final level and 7,757 studentssat this new and innovative form of assessment in2001, at over 200 exam centres throughout theworld. Post-exam guidance was issued for the firsttime to provide students and tutors with moreinformation on how marks were allocated, and fromNovember 2001 feedback reports on scripts at Finallevel were available.

The Student Services Centre dealt with almost300,000 queries from students, and local supportwas also provided through the CIMA officesworldwide.

A pilot study in the UK, introducing CIMA ComputerBased Assessment (CBA) for all five papers atFoundation level, was successfully completed in thefirst half of 2001 with very positive feedback fromboth students and employers. CIMA CBA allowsstudents to sit exams at any time of the year, in anysequence that suits the individual’s study programmeand to receive results and feedback immediately. In 2002, CBA centres will be established in all majorCIMA markets worldwide. CIMA is leading the wayin this field and this demonstrates our commitmentto adding value for students.

Operational Review

CIMA extended its collaboration with highereducation with the mid-year launch of ‘AccreditationThrough Partnership’ a unique scheme designed tofacilitate dynamic and sustained relationships witheducational institutions. The scheme was piloted inthe UK where institutions were invited to nominateacademic staff from accounting or business to act as CIMA ‘Advocates’. To date, 93 universities havesigned up to this new CIMA initiative. A keyobjective is to create pathways so that students atuniversity can see a clear route through their studiesto qualification with CIMA.

In South Africa, the qualification CharteredManagement Accountant has been awarded interimregistration on the National Qualification Frameworkat level 7. This is the equivalent of a Masters levelqualification and the highest level available forprofessional qualifications.

In Ireland, a CIMA MBA programme was developedin conjunction with Dublin City University andlaunched in February 2002, and a CIMA-basedMasters was introduced at University College, Dublin.

The CIMA Business Management Competition is an annual event which offers schools an insightinto business by providing an opportunity to developa product and supporting business plan. The themefor 2001 was ‘Who wants to be an Internetmillionaire?’, challenging students to develop anexciting and creative concept for an Internet basedcompany. The competition, which was sponsored byBT, attracted over 400 teams from 150 schools andwas won by Hertswood School, Hertfordshire, with a proposal for an online quiz competition.

The 2002 competition was launched in September2001 and is sponsored by 3M, who are askingstudents to develop marketing plans for a newproduct.

Products & servicesCustomers of the profession must be assured of the highest standards in the delivery of services and practitioners need to be able to demonstratecontinuing professional competence. In the past year, we have extended the range of products and services that supports this continuingprofessional development.

CIMA’s Technical Briefings were made available onthe CIMA website for the first time in 2001. Thesecover business and management topics and comprisetechnical material together with practical tips onapplication. For more specific advice CIMA membershave free access to the Technical Advisory Service,which on average handles more than 100 enquirieseach week.

Biz.Net was successfully launched in the UK in 2001.It is a series of forums at which high calibre speakersfocus on key business issues. To date these haveranged from the Secrets of Success through toEmotional Intelligence and Leadership Skills. Thesebuild on the success of branch events worldwide, of which there were over 300 in 2001. Organised by volunteer members, these have covered topics as diverse as The Role of the Finance Director andFootball Club Management and Finance.

A new product developed in 2001 for launch in2002 is CIMA Intuition, a range of e-learningproducts designed to help the user deal with everyday issues faced at work. Each product comprises a learning centre, core content and practicalapplication of theory, and a resource centrecontaining models, case studies, website referencesand downloads. The first five subjects offered areOverhead Cost Control, Risk in Investment Appraisal,Performance Management, Updates forManagement Accountants, and Financial Awarenessfor Non-Financial Managers.

CIMA Privileges, launched in 2000, was substantiallydeveloped and enhanced in 2001. The schemeprovides a range of exclusive offers on corporate,health, leisure, finance, and insurance products andservices to members, students and staff, all easilyaccessible through a dedicated website.

The internet is central to CIMA’s delivery ofinformation, products and services to members and students and all prospective customers of ourservices. In 2001, we saw a 350% increase in visitorsto our website, growing to an average of over 1.5million page impressions each month. Nevertheless,research has revealed a need to improve ease of useand content presentation, and the next generationwebsite, currently under development, will belaunched later in 2002.

The development of these and all our memberservices is based on our analysis of member needs,which in turn is dependent on our interaction withthe membership. More than 15% of membersworldwide responded to the 2001 Member Censusand provided a wealth of information which is beingused to drive all CIMA’s member-focused activity.


Operational Review continued


Key business issuesIn establishing the Strategic Enterprise Management(SEM) Round Table, we have created a forum wheresenior finance professionals, consultants andacademics can explore this key business process from the practical perspective. The Round Tableprovides a stimulating environment in whichcompanies, including Unilever, BBC, Powergen,Roche, Allied Domecq and Consignia can share andgain experience on this emerging business issue. To disseminate the work of the Round Table, welaunched a range of related products including a dedicated website, a survey of top companies, a book ‘Strategic Enterprise Management Systems – Tools for the 21st Century’ by Martin Fahy, and a range of events and networking opportunities. A US edition of the book was co-published with theAmerican Institute of CPAs.

In South Africa, CIMA contributed to the work of theKing Committee on Corporate Governance review.

CIMA sponsored nine research conferencesincluding the British Accounting Association;Management Accounting Research Group in Londonand Birmingham; Management Accounting Change,Siena, Italy; Management Control Systems, London;

Supply Chain Accounting, Sheffield; Irish Accounting& Finance Association, Waterford, Ireland; NewPublic Sector Seminar, Edinburgh. In October theCIMA Visiting Professor, David Cooper from theUniversity of Alberta, Canada delivered the CIMAlecture at the London School of Economics onPerformance Measures, Accounting and theRationalisation of Organisations. The findings of 8 CIMA funded research projects were publishedincluding, Management Accounting in a SocietyUndergoing Structural Change: A South AfricanStudy; Shareholder or Stakeholder Value: Thedevelopment of indicators for the control andmeasurement of performance; Benchmarking –Concept and practice: With particular reference tothe finance function; and Perceptions of Trade CreditControl in Mainland China and the United Kingdom.

The article written for Financial Management byCIMA’s inaugural Visiting Professor, Professor ReginaHerzlinger, The 4 x 4 report Effective Oversightreceived the FMAC Articles of Merit 2001 Award.

Three new research initiatives were launched onbudgeting, environment and sustainability, and riskmanagement and 10 new research projects werefunded. In 2002, CIMA will be commissioning fasttrack, directed research projects on subjects includingPrice Transparency in the Eurozone: the impact formanagement accountants and The Operating andFinancial Review requirements in the Company LawReview proposals.

With environmental issues presenting concerns for businesses globally, CIMA is working closely withthe UK Government’s Energy Efficiency Best Practiceprogramme. Eight Climate Change Levy seminarswere held in 2001, where topics discussed includedthe challenges to businesses and government of the levy, the role of the accountant in energy issues,purchasing energy and energy efficient goods, and the future of the Climate Change Levy itself. In addition CIMA has joined the United NationsExpert Working Group on EnvironmentalManagement Accounting.

Global Business Management Week in Septemberfocused the attention of companies worldwide on itstheme Harnessing Creativity to Increase the BottomLine. Two key challenges were addressed: how tonurture employee creativity to improve businessperformance, and how to measure its impact on the bottom line. Supporting Global BusinessManagement Week were four leading managementbodies (the Institute of Management, the CharteredInstitute of Personnel and Development, the Instituteof Directors and the Council for Excellence inManagement and Leadership), and the DesignCouncil, collectively representing over half a millionbusiness professionals worldwide and illustratingCIMA’s collaborative and multi-disciplinary approachto business issues.

The CIMA Business Management Event, a conferenceand exhibition held in London, was launchedsuccessfully in 2001, attracting over 100 delegates.Under the broad theme of Finance Driving Strategy,speakers included Sir Andrew Likierman, Head ofAccountancy Services, HM Treasury; David Kappler,Group Finance Director, Cadbury Schweppes;Douglas Flint, Group Finance Director, HSBC and Sir Nick Montagu, Chairman of the Inland Revenue.

Operational Review continued



The CIMA Southern African Regional Conferencewas held in Johannesburg and covered a range oftopics including Corporate Governance, the BusinessCase for Africa, H@cking and internet security.

The 23rd National Conference of the CIMA Sri LankaDivision, in May 2001, was on the theme Sri LankaInc. – Re-inventing for the new economy.

In Malaysia more than 80 Finance Directors andChief Executives attended the CIMA Strategic Eventon Turning Strategy into Reality – The New Role ofthe Finance Director.

Thriving on Globalisation was the theme of the 2nd CIMA Global Management Conference held in Singapore in September.

The CIMA/Financial Management Awards werelaunched in September to celebrate theachievements of CIMA members and businesspartners. The winners were:

Simon Laffin (Safeway), Business Leader of the Year;

Lehman Brothers, Employer of the Year;

Rob Hunter, Ministry of Defence, Young BusinessManager of the Year;

Reed Accountancy Personnel, RecruitmentConsultant of the Year;

Michael Warwick Nicholls, Niche RecruitmentConsultant of the Year.

In the USA, CIMA negotiated terms for members toapply for International Affiliate status of the AICPA,an arrangement launched in April 2002.

CIMA’s relationship with the Institute of CharteredAccountants of Australia was strengthened througha programme of joint activities and collaboration onCIMA's SEM project, seminars and events and accessto membership products and services.

Professional conductNew disciplinary provisions were introduced on 1 February, incorporating changes to accommodateregulatory developments and Human Rightslegislation. The procedure is now separated intothree stages (Investigation, Disciplinary, Appeal), withthe Disciplinary Committee now able to hold publichearings, and with lay members included on allcommittees. A comprehensive training programmehas also been launched and is ongoing.

The Investigation Committee considered 16 cases in2001. In 12 instances a prima facie case was found,the Committee adopting the new Consent Orderprocedure in 2 instances and making referrals to the Disciplinary Committee in the other 10 cases. In 1 other complaint considered by the Committeeno prima facie case was found, and 3 complaintsremain pending. A further 27 complaints are alsounder investigation.

The Disciplinary Committee considered 43 cases, ofwhich 32 were concluded. In 22 of the concludedcomplaints a prima facie case was found, in 5 ofthose a case was not proved, in 2 cases severereprimands were issued, in addition 6 studentregistrations were cancelled and 9 members wereexpelled. Currently 11 cases remain pending and 10 await consideration following referral from theInvestigation Committee under the new procedures.

The Appeal Committee has heard 5 appeals, 1 ofwhich was upheld.

AdministrationIn June 2001 Charles Tilley joined CIMA as ChiefExecutive. Immediately prior to CIMA, he wasDirector of Finance and Operations at investmentbank, Granville Baird, and prior to that, GroupFinance Director of Hambros PLC and a partner of KPMG.

In October 2001, CIMA moved its headquarters toChapter Street, Westminster, after more than 50years in Portland Place. The offices, which have been extensively refurbished to meet our specificneeds, provide a significantly improved workingenvironment that is already having a very positiveeffect. Modern, spacious and open plan, the newpremises make communications and interactionbetween departments easier and faster, and willenable us to improve the efficiency and effectivenessof our operations.

Since the AGM 2001, the Audit Committee has met on 3 occasions, and both its composition and terms of reference have been expanded inacknowledgement of its heightened role andincreased workload. RSM Robson Rhodes wereappointed as the Institute’s internal auditors and an internal audit plan is in place and the riskmanagement framework is under review.

CIMA’s Benevolent Fund provided assistance duringthe year in excess of £95,000, for over 50 membersand their dependants facing financial difficulties.

Council and the Executive Committee have met on 5 and 6 occasions, respectively, and Councilcommenced the institute year with a Strategy Forum.

Financial Summary


Financial Summary

CIMA’s income grew by 11% to £25.6m andexpenditure by 9% to £25.5m leaving a small surplusbefore taxation and exceptional items.

Total reserves were reduced by 38% due to arestructuring charge and adverse movements inrevaluation reserves.

Council statementThe following Income and Expenditure Account andConsolidated Balance Sheet are a summary of theinformation which appears in the full financialstatements which have been audited and given anunqualified opinion. The full financial statementswere approved by Council on 22 March 2002.

The summarised financial statements may notcontain sufficient information to allow for a fullunderstanding of the financial affairs of the institute.For further information, the full financial statements,including the auditors’ report which can be obtainedfrom www.cimaglobal.com, should be consulted.

Independent Auditors’ statement to the Councilof the Chartered Institute of ManagementAccountantsWe have examined the summarised financialstatements of the Chartered Institute ofManagement Accountants on pages 14 to 17.

Respective responsibilities of Council and AuditorsCouncil is responsible for the preparation of thesummarised financial statements in accordance withthe bye-laws of the institute and United KingdomAccounting Standards.

Our responsibility is to report to you our opinion on the consistency of the summarised financialstatements within the Annual Review with the full financial statements. We also read the otherinformation contained in the Annual Review andconsidered the implications for this statement if webecome aware of any apparent mis-statements ormaterial inconsistencies with the summary financialstatements.

Basis of opinionWe conducted our work in accordance with Bulletin1999/6 “The auditors’ statement on the summaryfinancial statement” issued by the Auditing PracticesBoard for use in the United Kingdom.

OpinionIn our opinion the summarised financial statementsare consistent with the full financial statements forthe year ended 31 December 2001.

CHANTREY VELLACOTT DFKRegistered AuditorsChartered AccountantsRussell Square House10-12 Russell SquareLondon WC1B 5LF22 March 2002


Financial reviewThe 2001 Annual Review includes an Income andExpenditure Account, Consolidated Balance Sheetand Statements from Council and the Auditors inrespect of the summarised financial statements.

Financially, 2001 was an exceptionally difficult yearfor CIMA due to the impact of external marketfactors and internal developments and problems.

Income from members rose by 17% of which 5% isattributable to an increase in membership. Incomefrom students and examination activities rose by 9%.Expenditure rose by 9%. Increasing emphasis onregulatory matters and member developmentresulted in higher expenditure. Accommodation costsincreased as a result of moving to premises offeringapproximately 50% more space than Portland Place.

The Institute moved from its Portland Place premisesto modern refurbished offices at Chapter Street,London SW1. The leases, which contained a numberof restrictive covenants, on the former offices weresurrendered to the landlord for a consideration of£5.3m of which £1.3m is deferred for up to twoyears. These leases were held as fixed assets with avaluation of £6.3m as at 31 December 2000. As at31 December 2001 the leases have been reclassifiedas a current asset with a realisable value of £5.24mand £1m recorded as a reduction of the revaluationsurplus.

The cost of refurbishing the Chapter Street premiseswas £3.3m net of recoverable VAT and has beenincluded in the balance sheet as a fixed asset as at31 December 2001. This asset is being written offover various periods up to the length of the lease,which is fifteen years. The cost of the move has beenwritten off as an exceptional item.

In order to fund the refurbishment of our new offices£2.6m of investments were realised at a historic costprofit of £0.6m which is included in investmentincome but this led to a fall of the investmentrevaluation reserve of £0.7m. The remaining portfolioof equity investments held by the institute suffered incommon with many other investors as a result of the16% drop in FTSE100 index in the calendar year.

These factors affected 2001 concurrently with theneed to make several major decisions onimprovements to the future operations andmanagement of the institute.

After very careful consideration, in October 2001,the decision was taken to halt IBIS, a major ITproject. It was started in 2000 to replace the existingmembership system and to add the functionality ofworkflow, scanning, web and email access. Althoughconsiderable work had been invested, the potentialfor added value had been diminished due toadvances in technology and changing businessrequirements, especially in the structure of exams.

A review of our operations is now underway in orderto enable the implementation of information andmanagement processes appropriate to our currentand future requirements.

Despite the overall reduction of £5m in net assets,the balance sheet of the institute remains strong andthe organisation is well placed to move forward fromthe base of its new, much more efficient, premises,stronger management and improving operationalprocesses.

A full set of financial statements for 2001 can befound on www.cimaglobal.com.

Consolidated Income and Expenditure Account


2001 2000 Year to 31 December £000 £000

IncomeFees and subscriptions:

Members 7,106 6,075Students 5,976 5,637Examination and exemption fees 6,940 6,210

Income from services 4,437 4,057Investment income 1,108 1,053

25,567 23,032

ExpenditureCouncil and Secretariat 1,319 1,481Members’ Services 1,171 421Joint activities with other accounting bodies 554 565Technical Services 645 512Research 129 76Branch Affairs 909 539International Affairs 1,769 1,768Educational activities 3,738 3,656Examinations 5,720 5,644Publications 1,110 1,160Management courses 1,439 1,303Journal production and distribution 1,632 1,744Mailing and communications 735 511Administration 2,408 2,033Property 1,173 501Depreciation 660 782Gift Aid to CIMA’s General Charitable Trust 360 658

25,471 23,354

Surplus/(Deficit) before Taxation and Exceptional items 96 (322)

Exceptional items:Restructuring charge 2,482 –Relocation costs 126 –

Deficit before Taxation and after Exceptional items (2,512) (322)Taxation 62 –

Operating deficit (2,574) (322)

Consolidated Balance Sheet


2001 2000At 31 December £000 £000

Reserves 8,152 13,122

Represented by:Fixed assets 4,669 8,271

Current assets:Listed investments 3,645 6,988Debtors and prepayments 1,178 1,320Property held pending disposal 5,241 –Stock of publications 297 170Short-term deposits – 1,000Cash in hand and at bank 953 1,141

11,314 10,619

Current liabilities:Creditors, accruals and provisions 4,978 3,749Subscriptions and fees received in advance 2,853 2,019

7,831 5,768

Net current assets 3,483 4,851

Total assets less current liabilities 8,152 13,122


Council Members and Representatives

Council and Executive Committee Members

Meetings Attended(Jan 2001 – Dec 2001)

Name Area Council Executive

Abbott J Co 5/5Armstrong A 5 5/5 4/4Babber G L 1 5/5 4/4Baird JH + 8 2/3Bellis-Jones R 1 3/5 Brady M J 9 3/5Bush D J 18 4/5Byrne H J DP 5/5 6/6Chater D E 4 5/5Christison I 3 5/5 6/6Clark A G # 19 2/2Coghlan J P Co 5/5Connell W E Co 3/5Cooper-Jones T J 11 3/5 5/6Davies R J J 11 5/5De Silva N S C # 14 2/2Epsley B P 5/5 6/6Farnworth W J 6 5/5Furber M L 10 5/5Glass G Mcl Co 5/5Grant J G 7 5/5Haggis I +Co 3/3Holloway P A 1 5/5Hoof S M 4 4/5Ighodaro C VP 5/5 6/6Jeans M H V IPP 5/5 6/6Joachim A E A + 19 3/3Kaye G R Co 3/5 3/6Kenworthy R F 6 5/5

Meetings Attended(Jan 2001 – Dec 2001)

Name Area Council Executive

Kleinman I 17 2/5Layhe P PP# 1/2Lim E S 16 3/5Lowth G M 3 2/5Lyle N PP# 2/2Marler D M 2 5/5May M R 12 5/5 6/6Mendis C H + Co 2/3Melvill D C PP# 1/2 1/2Millar A M Co 4/5Mitchell R C 2 5/5Moorhouse B J Co 2/5Nixon J W 5 4/5Palmer M 3 4/5Pereira F R X + 14 3/3Perry J J 4 5/5Pinder C 5 5/5 2/2Redrup P J H 3 4/5 2/2Robertson G B 7 4/5Rowlands W F 12 4/5Stanford D 6 5/5Strickland M C B 2 2/5Thackray A P 11 4/5Watson M A 11 5/5White J H Co 5/5 3/4Whitworth P R Co 5/5 4/4Windsor F 6 5/5 1/2Woronecki G V 12 4/5Yeung K K 15 2/5

Area

1 Central London & North Thames2 South West England & South Wales3 East Midlands4 West Midlands5 North East England6 North West England & North Wales7 Scotland8 Northern Ireland9 Republic of Ireland

10 East, West Central & Southern Africa11 Central Southern England12 South East England14 South Asia15 North Asia16 South East Asia17 Europe, North Africa & Middle East18 The Americas19 Australasia

Key

P PresidentDP Deputy PresidentVP Vice PresidentIPP Immediate Past President

PP Past PresidentC0 Co-opted

+ Newly elected/co-opted from AGM 2001

# Left Council at AGM 2001


Audit CommitteeChairman DS Mead ~ PPVice Chairman JA McNab ~ PPMembersCV Logue ~AP Miskin ~PJH RedrupRM Sykes ~Secretary DT Bills Assistant Secretary (SMT)

Appeal CommitteeChairman Sir Michael Craig-Cooper ~Vice Chairman PM Wright ~MembersA Armstrong PA Hewitt ~ PPDS Mead ~ PPWF RowlandsSecretary DT Bills Assistant Secretary (SMT)

Appointments CommitteeChairman MHV Jeans IPPMembersHJ Byrne DPB Epsley PWJ FarnworthJG GrantCA Ighodaro VPGV WoroneckiSecretary CB Tilley Chief Executive (SMT)

Benevolent Fund CommitteeChairman MA WatsonVice Chairman M PalmerMembersENC Eustance ~K Evans ~FK Guilfoyle ~SM Hoof KE Robbins ~Secretary P Rushton (S)

CIMA Enterprises Limited (CEL)Chairman R Hill ~ PPNon Executive DirectorsI KleinmanPR WhitworthManaging Director M Cheng (SMT)Executive Director RG Jelly (SMT)Company Secretary DT Bills (SMT)

Disciplinary CommitteeChairman GM LowthVice ChairmenR Brown ~MCB StricklandMembersJ Buchan LP Curphey LL Jacobs L RF KenworthyRC MitchellS Mines ~G Perry LN Smith LSecretary J Low Head of Professional Conduct (S)

Executive CommitteeChairman B Epsley PMembersHJ Byrne DPCA Ighodaro VPMHV Jeans IPP Committee Chairmen:A Armstrong TechnicalGL Babber Members’ ServicesI Christison InternationalTJ Cooper-Jones Student DevelopmentJH White Professional StandardsPR Whitworth MarketingGR Kaye Member Without

PortfolioMR May Elected Lay MemberSecretary CB Tilley Chief Executive (SMT)

General Charitable TrustChairman T Glancy PP~TrusteesK Dickin ~AP ThackraySecretary WJ HallDirector, Finance & Administration (SMT)

International CommitteeChairman I ChristisonVice Chairman DJ BushMembersMJ BradyWE ConnellIB HaggisAEA JoachimES LimMR May FXR PereiraJ Pond ~WF RowlandsAP ThackrayM WatsonGV WoroneckiKK YeungSecretary KM GrimshawDirector, Corporate Development (SMT)

Investigations CommitteeChairman M Palmer MembersD Cafferty ~R Carter ~G Mcl GlassI Jollie LR Lewis LAM MillarJJ PerryA Taylor LJ Vick LSecretary J Low Head of Professional Conduct (S)

Marketing CommitteeChairman PR WhitworthVice Chairman RF KenworthyMembersJ Callister ~JG GrantB Jelbert ~I KleinmanES LimJ McDaid ~A Ramosedi ~D StanfordSecretary KM GrimshawDirector, Corporate Development (SMT)

Members’ Services CommitteeChairman GL BabberVice Chairman GB RobertsonMembersDE ChaterPA HollowayDM MarlerC Macsween ~Major S Parkes ~D StanfordR Tidd ~MA WatsonKK YeungSecretary M Cheng Director, Members’ Services (SMT)

Professional Standards CommitteeChairman JH WhiteVice Chairman M PalmerMembersN Barakzai ~JP CoghlanSir Michael Craig-Cooper ~C Jenkins ~C Longhorn ~GM LowthJA McNab ~ PPC PinderPJH RedrupSecretary MJ LavinDirector, Professional Standards (SMT)

Student Development CommitteeChairman TJ Cooper-JonesVice Chairman ML FurberMembersH BairdR Boyes ~WJ FarnworthMK Hazell ~PA HollowaySM HoofGR Kaye I KleinmanES LimH MendisJJ PerrySecretary RG Jelly Director, Student Development (SMT)

Technical CommitteeChairman A ArmstrongVice Chairman AM MillarMembersR Bellis-JonesM Bromwich ~PPWE ConnellRJJ DaviesG Mcl GlassPA Hewitt ~PPMR MayJH Metcalf ~BJ MoorhouseMCB StricklandSecretary GR LeesDirector, Technical Services (SMT)

Key

P PresidentDP Deputy PresidentVP Vice PresidentIPP Immediate Past President

PP Past President~ Non-member of Council

(S) Staff(SMT) Senior Management TeamL Lay Member

Representatives on External Boards and Committees 2001-2002

Board or Committee CIMA Represented By

Consultative Committee of Accountancy Bodies (CCAB) * B Epsley P* HJ Byrne DP* CA Ighodaro VP

CCAB Ireland (CCABI) CP Sommerfield (RoI)WRG Kane (N Ireland)

Council of the Association of Accounting Technicians (AAT) * SM Hoof Professor T Hassall

* PR Whitworth CCAB Board of Accreditation of Accountancy Educational Courses (BAAEC) Professor RMS WilsonCCAB FEE Advisory Committee R Mallett SCCAB International Policy Accounting Sub-Committee I PedropillaiCCAB Professional Accountancy Qualifications Group * CA Ighodaro VP

RG Jelly SCCAB Advisory – FMAC DJ EdelshainUK Representative (and Chairman of) IFAC Financial Management Accounting Committee (FMAC) * WE Connell UK Representative on IFAC Information Technology * G Mcl Glass British Standards Institute (BSI)Quality Cost & Economics Committee P TarelliMS/2 P Layhe PPMS/3 GW GittusAccountancy National Training Organisation EF Bonner (Chairman)Local Authorities (Scotland) Accounts Advisory Committee (LA(s)AAC)Sector Board – Business & Finance JDH KellyScottish Vocational Education Council (ScotVEC) IE PiggottFinancial Executives GroupDirectors * HJ Byrne DP

* PJH Redrup Consultative Committee of Professional Management Organisations (CCPMO) Chief Executive SBusiness Studies Advisory Committee, Department of Education, Manx Government DAC DoranHM Customs & Excise Joint VAT Consultative Committee * GL Babber

Representatives on Regulatory BodiesFinancial Reporting Council RP ThorneFinancial Reporting Council – Review Panel N Stapleton

Professor D AllenRP Thorne

Auditing Practices Board DC Melvill PPAuditing Practices Board International Sub-Committee GR Lees S

R Mallett S

Representatives on University CourtsUniversity of Bath HL FairbrotherUniversity of Lancaster HJ OsburnLoughborough University RM Giffin PPUniversity of Surrey BR ChesterCranfield Institute of Technology JA McNab PPUniversity of Stirling DW DouglasUniversity of Sheffield * JW Nixon

Council Members and Representatives continued


Key

* Member of CouncilP PresidentDP Deputy President

VP Vice PresidentIPP Immediate Past President

PP Past PresidentS Staff

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cima annual review 2001

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