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FRC makes significant savings

The Financial Reporting Council exemplified caution by falling short of its 2014/15 budget, according to the latest accounts provided by the reporting watchdog.

It spent £29.1 million for the year, £3.3 million less than expected.

The FRC’s costs for reviewing audit quality rose by 30% last year, due to an inflation in the quantity of reviews the body conducted, combined with an increase in the size of its team.

The rise in core expenses were in part due to relocating offices in an attempt to evade a substantial rent increase, while £1.6 million in staff costs combined with travel costs and expenses associated with an annual conference also factored into the rise.

While the FCA saw an increase in its revenue by £2.8 million, its costs showed a larger increase of £3.1 million. General reserves decreased by £198,000, close to three times the £65,000 figure budgeted for.

FRC Chairman, Sir Win Bischoff, said:

“Our primary mission is to maintain an effective regulatory framework for corporate governance and reporting in the public interest; one that supports the needs of investors and supports boards and the professions in meeting the necessary high standards. We measure success by the impact we make, not by our level of activity.”

Any firm with a budget would be happy to fall short and save money but that is sometimes easier said than done, and some companies even go over their budget without even being aware. An accountant in the Wirral can help firms in the peninsula ensure that their budget is being adhered to, potentially saving them from financial trouble.

Posted by Louise
August 6, 2015
Finance

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