ICAEW News

Arthur Bailey Wins VP Position

2012-02-07T10:12:00.001Z

Congratulations to Arthur Bailey, he has been elected to become the next vice president of ICAEW.

It is a pity that, despite representing the members and stating:

"One of my key priorities will be direct engagement with as many members as possible, in order to listen to their views and understand their concerns."

his electorate was limited to only those on Council, rather than the entire membership.

Engagement only works when the membership are actually engaged with by Council in "minor" matters such as elections.

Economia and The £30 Breakfast

2012-02-06T12:52:00.001Z

The new magazine from the ICAEW (Economia) thumped onto my doormat last week.

It seems the target market for the magazine is the upper income bracket of the profession, as there was an article recommending a place that charges £30 for breakfast.

To The Polls Ye Sons of Freedom!

2012-02-02T11:46:00.001Z

If anyone is interested, the contenders for position of ICAEW Vice President are:

- Arthur Bailey,
- Ian Davies,
- Nick Parker, and
- Nathan Steinberg

Did anyone actually know that these elections were taking place?

Those of you who are looking forward to vote will be sorely disappointed, the vote is closed to members (only council may vote).

Why are the members of the ICAEW not allowed to vote in these elections?

Poor old ICAEW, can't quite get this "new fangled" democracy thing can it?

Izza Rules Out CIPFA Merger

2012-01-26T11:47:00.000Z

ICAEW CEO, Michael Izza, has ruled out a merger with CIPFA.

He is quoted by Accountancy Age:

"There are no formal merger plans in the short, medium or long term."

He also expressed hope that one day CIMA would return to the Consultative Committee of Accountancy Bodies (CCAB).

Given that CIMA left CCAB because they feel that the fees charged to belong to CCAB were disproportionately high, it is unlikely that they will return to CCAB anytime soon.

CCAB will need to demonstrate that it is doing something useful.

ICAEW Granted Accreditation

2012-01-25T13:00:00.002Z

In July 2011 I wrote:

"The ICAEW plans to "break ranks" with fellow accredited bodies and offer statements of professional standing (SPS) to advisers who make a one-off payment rather than requiring them to join as members.

The ICAEW has applied to be an accredited body, and expects to be approved by the Financial Services Authority in December 2011."

The ICAEW has now been granted that accreditation:

"The Financial Services Authority (FSA) has granted ICAEW accredited body status under the FSA Retail Distribution Review (RDR). The RDR requires all retail financial advisors to obtain a statement of professional standing (SPS) from an accredited body by 1 January 2013 to continue to advise clients.

ICAEW will now be able to issue SPS to retail financial advisors who have met the FSA’s new qualification standards and also monitor their continuous professional development. This recognises ICAEW’s experience as a professional body and regulator of the accountancy profession.

Vernon Soare, ICAEW Executive Director, Professional Standards commented, “We are very pleased to be the first accountancy body to be granted accredited body status by the FSA. The Retail Distribution Review represents a significant change for retail financial markets and financial advisors and ICAEW will now play a part in delivering an enhanced regime for consumers.”

“We are committed to supporting our members and member firms in this period of change and providing them with new opportunities” Vernon continued. “This is part of a long term strategy to increase the services that ICAEW offers to members and also to build on our consumer focus.”

ICAEW expects to open its scheme for applications in April this year when applicants will need to provide evidence that they have fully met the RDR exam qualification standards, including any gap-fill requirements. Further details of the application process will be provided in due course. In the meantime, ICAEW members and employees of member firms should continue working towards achieving RDR approved or transitional qualifications, and meeting any gap-fill needs."

Shortlisted For Accountancy Personality of The Year

2012-01-23T14:36:00.002Z

My thanks to PQ Magazine for placing me on the shortlist for their 2012 awards, in the category of “Accountancy Personality of Year“.

CCAB Site Back Up

2012-01-12T14:25:00.002Z

The CCAB site is now back up and running, after being taken down for a revamp.

Oddly though, there seems to be no publicity out telling people it has been revamped (aside from me doing this for free here).

Wake Up ICAEW!

2012-01-12T10:33:00.002Z

Hat tip to Christie Malry for spotting this:

"I know it's common at this point of the year to write "2011" when you mean "2012".

But every single press release from ICAEW this year is dated 01 Jan 2011. Uh, is there any chance they could be dated when they were released, as is, er, the normal convention?"

Wake up ICAEW!!!

My Last Edition of Accountancy - Epilogue

2012-01-10T12:06:00.007Z

Re: "I wonder if I should preserve it for posterity?"

Answer: No, I have already binned it!

My Last Edition of Accountancy

2012-01-10T11:58:00.001Z

My last edition of Accountancy Magazine has arrived today.

I wonder if I should preserve it for posterity?

ICAEW Launches True and Fair Updated

2012-01-06T13:04:00.002Z

The ICAEW has launched a new website "True and Fair".

"This site is here to help you find out anything you would like to know about the process known as audit - or to use its full title 'Audit of Financial Statements'....

....www.trueandfair.org was created by ICAEW, a world leader of the accountancy and finance profession, as part of its public interest charter to advance the theory and practice of accountancy, finance, business and commerce."

Fair enough, but why not launch this as a CCAB initiative, given that CCAB is meant to "provide a unified voice on matters of common interest"?

FYI, the CCAB website is currently "under construction".

By the way, the ICAEW have not used the domain names www.trueandfair.com or www.trueandfair.co.uk, because they are owned by Omkar Joshi who is CEO of Company Reporting Ltd (a publishing business focused on financial reporting practices of public companies).

"Omkar's recent venture TrueandFair was acquired by Company Reporting Limited, a pan-European information service which reports on constantly changing corporate financial reporting practice; identifying actual year on year changes in the reporting practice and governance procedures of Europe's leading companies."

Here Comes Economia

2011-12-07T10:33:00.001Z

The ICAEW have recently announced the name of their new in house magazine that will replace "Accountancy".

It will be called Economia.

Quote:

"As you may be aware, in February 2012 we are launching a new member magazine to replace accountancy as part of the annual ICAEW membership. The new all member magazine is called economia.

Why have we chosen the name economia?

This is the name of the figure at the heart of our logo who has represented ICAEW since its inception over a hundred years ago. She embodies the values of the profession which are so important to chartered accountants today.

economia will reflect these values, providing the latest analysis and commentary on financial and accountancy news, essential technical updates and the most up-to-date business, management and economic trends. Plus, a whole lot more."

It is interesting to see that Wolters Kluwer have retained the brand name "Accountancy" for their magazine (which ICAEW members will have to pay for as from February 2012 if they still wish to receive it).

Christie Malry on FCAblog is worried about finding a decent URL, it seems the main ones are owned by non ICAEW organisations (why didn't the ICAEW check this first?).

I have checked and the Economia url is still available with the "xxx" adult extension, together with org.uk and me.uk.

As tempted as I am to buy them up, this time I will let that opportunity pass:)

Oh what the hell, I can't resist, I have now bought www.economia.org.uk!

Accountancy Asleep At The Wheel

2011-12-04T11:05:00.001Z

Kudos to Christie Malry, of FCAblog, for highlighting Accountancy's faux pas over their article about Anton Colella being appointed CEO of ICAS.

As Christie points out, Anton has been CEO of ICAS since 2006.

I dare say that Accountancy may not be delighted to have this error so publicly pointed out, and could possibly strike Christie from their subscription list.

Oh, hang on a minute, Accountancy will be charging for their services next year (as the ICAEW has parted ways with them). Therefore it is up to Christie and others as to whether they choose to continue to subscribe to the magazine (£79.20 per annum), and/or pay the absurd charge of £239 for access to their website.

Can you guess what they will choose to do children?

ICAEW's "Special Relationship" With HMRC

2011-11-24T11:16:00.001Z

In October I wrote on my HMRC site about the ICAEW's and HMRC's appeal for tax agent firms to allow HMRC to come and see how things are done at the coal face:

"Michael Izza, the CEO of the ICAEW, has issued a public call for tax agent firms to allow HMRC staff to come and see what it is like at the "coal face" and visit the firms to observe procedures etc. HMRC have assured the ICAEW that there are no risks to the firms (or the clients of the firms) if they allow HMRC staff to come and visit."

Later, that same month, I quoted Clapser:

"HMRC has committed to a big challenge. However, improvements can only be made with the input of the profession and it is therefore important that firms come forward to volunteer to host HMRC staff. Council members are strongly encouraged to do so, and take their opportunity to share their experiences."

I then stated:

"I would note one thing, not everyone is of the view that there is such a cosy relationship between HMRC and the profession.

Anthony Thomas, President of the Chartered Institute of Taxation (CIOT), recently debunked the nonsense that there is a "special relationship" between HMRC and the professional bodies, calling it a "myth" (akin to that "relationship" between the UK and US governments).

This view may ruffle a few feathers over at the ICAEW, where Michael Izza (the CEO) claims that "we (the ICAEW) now have a partnership with HMRC".

Moving forward to the present, I was more than gemused to read on Nichola Ross Martin's site that the "visit the coalface" idea has been done before (even to the extent of visiting the very same tax agent!).

Ironically, neither HMRC or the ICAEW seem to remember this!

Here is Nichola's article in full, in the hope that it jogs the memories of both HMRC and ICAEW.

"We have a case of déjà vu: as part of the latest Agent Strategy HMRC are visiting firms to see what it is really like in practice. Hold on, hasn't that been tried already? Read on and see if you can spot the difference.

In 2008 HMRC director’s general of business tax – Melanie Dawes visited West Country firm A C Mole and Sons to “see what it is like for us - and experience the practical effects of HMRC's Change Programme as we do…” Paul Aplin, a partner in the firm and chairman of the Institute of Chartered Accountants in England and Wales (ICAEW) Tax Faculty enthused on his blog “I think that it completely changed the way she viewed our issues.”

Roll on three years, we now learn that HMRC’s director general of personal tax – Stephen Banyard, has just returned from a visit to... West Country firm A C Mole and Sons, speaking to staff and receiving feedback. Paul Aplin, a partner in the firm but now ex-chairman of the ICAEW Tax Faculty reports, “I think he went away with a better understanding of the problems we encounter.”

So, assuming that Mr Banyard has not taken a leaf out of his boss’ book (Dave Hartnett, “the most wined and dined mandarin of Whitehall”) and was not really taking the opportunity for a day out of London sampling local cuisine, we must conclude that the visit was really useful. Sad to say that judging by the effect that Ms Dawes previous visit seems to have had it is unlikely to create any noticeable changes for tax agents. We all agree that service levels and standards have spiralled into a lamentable decline in the past three years.

Probably the most embarrassing thing for both HMRC and the ICAEW is that three years ago after the Dawes' visit, Paul had also managed to tete a tete with HMRC's Chairman Mike Clasper. ”When I met Mike Clasper, last week I told him what it was like at the coalface - the wasted time dealing with piles of incorrect PAYE coding notices and the frustration and embarrassment caused by incorrect penalty notices…We spoke one to one - no officials present - for almost an hour and a half and I felt that I received a fair hearing…”

Not that any of what happened three years ago appears to have had any effect on service standards or agent relationships.

The acid test is probably whether members of the Parliamentary Accounts Committee (PAC) who are investigating the rolling saga of the combination of HMRC’s Permanent Secretary’s blunders with large business, together with HMRC's value for money and falling service standards will take heed and give Mr Clasper a prod. Why on earth do a one to one with the ICAEW's top tax man and do nothing?

It is of course too late to ask Melanie Dawes, she has now jumped ship to the Cabinet Office following a previous grilling by the PAC in September. Mike Norgrave has just been appointed to take her place, obviously, he cannot be held accountable."

ICAS Unveils New Website and Logo

2011-11-22T12:04:00.001Z

ICAS has unveiled a new website and logo, four coloured circles, with an emphasis on the "CA" part of ICAS (ICAEW take note!), as part of a rebranding exercise, in order to increase engagement and improve communications with members.

The Road To Nowhere

2011-11-09T14:53:00.002Z

As noted on this site in July, the ICAEW is parting company with CCH wrt publishing a monthly magazine for its membership and will use another publishing house.

As from February 2012 Accountancy (as published by CCH) will be subject to a number of changes:

- Instead of being free to all ICAEW members, Accountancy will be £79.20 per annum (£99 to non-members)

- The previously free Accountancy website will now only be available for an annual subscription of £239

- The website address has switched from www.accountancymagazine.com to www.accountancylive.com.

Given that ICAEW members resent having to pay (within their subscriptions) for a magazine that is invariably binned still in its shrink wrap cover, I cannot see that they will be prepared to stump up an extra £79.20 per annum for another magazine covering the same issues that their new Institute magazine will presumably cover.

As for charging £239 to access the website, well that's just daft!

Carry On CCAB II - The Cost

2011-10-27T16:09:00.002+01:00

Accountancy Age reports that cost the changeover from "old" CCAB to "new" CCAB, as the previous corporate structure was liquidated by KPMG, was £10K.

Given that CCAB have not issued a press release since 2009, was this really worth it?

Carry On CCAB

2011-10-27T15:17:00.000+01:00

Accountancy Age reports that the Consultative Committee of Accountancy Bodies (CCAB) will continue operate without CIMA.

The ICAEW, ACCA, ICAS, CIPFA and Chartered Accountants Ireland will remain in it.

As I noted in March 2011 CCAB has been rather quiet, not having issued a press release since 2009; yet still charging fees to its members!

However, Michael Izza (CEO of the ICAEW and CCAB secretary) has stated that it will "provide a unified voice on matters of common interest" he went on to say that the the institutes took a "hard look" at whether it was worth continuing as the CCAB.

"Having soul-searched, we decided to carry on."

Does this mean the same frequency of press releases?

HMRC's Clasper at Council

2011-10-24T14:15:00.001+01:00

Mike Clasper (Chairman of HMRC) recently visited ICAEW Council.

Here is a summary of what he said (source ICAEW):

hmrc service standards and tax agent strategy

HMRC’s Chairman, Mike Clasper, and Brian Redford, Deputy Director, Business Customer & Strategy, attended the October Council meeting to discuss service standards and the recently published consultation on Tax Agent Strategy.

The decline in service standards is one of the biggest concerns currently being mentioned by the ICAEW membership. Following a highly critical report by the Treasury Select Committee published in July 2011, a meeting was held in September 2011 between HMRC’s senior management and the professional bodies and various charities to discuss what should be done to help make improvements. It was chaired by Mike Clasper and following the meeting a joint statement was published, setting out plans for HMRC to work with the professions and charities to make improvements. Tax Agents have a critical role to play and need a strong relationship with HMRC. At the moment there is a lack of trust that needs to be addressed.

There is understandable concern that promises have been made in the past to improve service standards but they have not been realised. However, the joint statement marks a turning point and shows that HMRC has picked up the challenge issued by the Treasury Select Committee to work with the profession to make improvements.

The biggest problems highlighted are post and telephone handling. The challenge for HMRC and the profession is to jointly understand the nature of the problem, develop solutions to improve the service and find performance measures that accurately reflect the customer experience.

Background

In the past, there have been different views as to how HMRC should recognise agents, with some feeling that the focus of attention should be on the tax payer. HMRC are now clear that strategically the role of the agent should be recognised in addition to the role played by the customer and there is a genuine intention on the part of HMRC to improve relationships with agents.

With the launch of HMRC in 2005, there was a loss of confidence in the organisation from customers as it was felt that it did not have a clear customer centric focus. The foundations for the merger were solid enough. It offered one tax authority for business which is a huge enabler for a customer-centric organisation, a system of dealing with large businesses that is globally competitive and a vast amount of knowledge about tax payers. However, the merger did not fully resolve the cultural differences between the two organisations and needed to deliver efficiency savings at the same time as facilitating a smooth transition from a local to a national organisation.

Following the merger, HMRC’s strategic objectives included:

- Closing the tax gap

- Focusing on the customer experience

- Providing value for money

- Operating with professionalism

In the 2010 spending review, along with all government departments HMRC was charged with cutting costs by a further 25%, but reinvestment back into HMRC was agreed with a primary focus on closing the tax gap and improving compliance.

In order to achieve HMRC’s strategic goals, there has to be a balance between three key and often conflicting aims:

1. The tax has to be collected

2. The customer experience has to be good

3. HMRC has to be efficient

2010 – A difficult year

Mike acknowledged that 2010 was a difficult year and had said so on the record, but that it had to be seen in context. For HMRC employees, existing systems and processes were becoming outmoded and as configured were not able to provide a single view of a PAYE customer on its systems and this required expensive manual intervention. The system designed to support PAYE was based on 13 regionally defined databases meaning that some people had several records, some of which had not been linked and led to bad data quality and inconsistency. Working with this dated system, people developed ways of getting the right result without inputting the right data which led to further problems. HMRC underestimated the problems that would arise in the move to the new national PAYE system (NPS) and the resources that were needed to tackle them. These problems were only made worse by the resulting high volume of telephone calls that taxpayers and agents made to HMRC.

A related problem was the growing backlog for reconciling PAYE exceptions, which by 2010 had reached 23 million open cases, a problem that dated back to 1983. It was proving impossible to tackle this backlog with the existing systems.

The current situation

Mike explained that over the last few months there had been a considerable turnaround in performance and customers were starting to see the benefits of the NPS investment and other operational changes. Customer contact has improved. This year 70% of calls, on average, are answered within 40 seconds which is a massive improvement on the previous year.

Postal response times are the best they have been since the merger. The average is less than 15 days – calculated from the day the post arrives at HMRC through to when it is posted on HMRC’s system and a response sent. However, Mike accepted that this is not translating to the customer experience and this needs to be addressed. HMRC is also working with its mail partners, Fujitsu and Royal Mail, to cut delays once correspondence leaves HRMC. But Mike acknowledged that there is more to do in improving the customer experience.

Internally, work is being done to improve professionalism and quality. Training and development is an essential part of this. HMRC is supporting professionalism through the establishment of ‘The Tax Academy’, accredited by Manchester Metropolitan University. This year, some 200 members of staff will commence their training through the academy for full technical training, although it is acknowledged that a wider section of the workforce will undertake other training and continuing professional development. HMRC recognise some 18,000 members of staff as tax professionals.

Teams have been empowered to improve their own processes through ‘Pacesetter’ methodology and already an improvement in productivity of up to 60% has been seen in some areas.

Work is also being done to cut down on the organisation’s hierarchy. There have been up to 14 approval levels, from frontline staff up to CEO. By March next year there will be no more than eight. The top four tiers of the organisation have also been reviewed. 45% of jobs have been competed with a number filled externally to revitalise the structure and overall numbers reduced.

Up to 8,000 members of staff are also moving from processing to compliance roles in the coming years, which will help to balance the three requirements to achieving strategic goals.

On the performance challenge, HMRC staff members have received the training needed to enable them to go out and observe Tax Agents in their own firms to get a first-hand view of the problems that they are experiencing. HMRC now needs the profession to volunteer to host their staff and help improve standards. At the moment, it was proving difficult to recruit volunteer firms and Mike requested that ICAEW did all they could to promote this initiative. Since the Council meeting a significant number of ICAEW members and others have stepped forward and the visits are will commence as planned.

Tax Agent Strategy

Allowing agents to ‘self serve’ through an online system should improve the process. By enrolling and understanding the business profiles of tax agents, it will be possible to tailor communication and support.

Through this system, HMRC will now be able to look at all interactions with agents. If there are consistent problems, they can then work with the agents to make improvements, a mutually beneficial process.

Conclusion

HMRC has committed to a big challenge. However, improvements can only be made with the input of the profession and it is therefore important that firms come forward to volunteer to host HMRC staff. Council members are strongly encouraged to do so, and take their opportunity to share their experiences.

For further information, please contact Frank Haskew, Head of the Tax Faculty, frank.haskew@icaew.com

The Alliance

2011-10-18T16:43:00.000+01:00

Congratulations to Anton Colella, the Chief Executive of ICAS, who has been elected Chair of the Global Accounting Alliance (the umbrella body which represents more than 775,000 accountants around the world).

Anton takes up the two-year non-executive position from November.

As I noted back in April 2006, the GAA proves that ICAS and ICAEW can work together!

I also noted the following:

"If you look up the registration of www.globalaccountingalliance.co.uk, you will see that it was registered on 15th September 2005 by the ICAEW.

This was before the merger motion was defeated in October 2005. This implies that the wheels were already in motion for the creation of the GAA.

Why then, if the ICAEW was working towards a global alliance at that stage, did they persist in telling the members that the most effective way of making our voice heard on the world/national stage was via merging with CIMA/CIPFA?

FYI, I have registered www.globalaccountingalliance.org.uk in my name, and will ensure that it redirects to this site in the next 48 hours."

Note, for reasons best known the the GAA and the ICAEW, the www.globalaccountingalliance.co.uk website leads nowhere now (even though it is still owned by the ICAEW).

Why is that then?

Details about the appointment (below) are provided by ICAS:

The Global Accounting Alliance (GAA) is an alliance of leading professional accountancy bodies. It was created to promote quality services, share information and collaborate on international issues. The GAA works with national regulators, governments and stakeholders to take a global lead for the profession. It is headquartered in Sydney.
The GAA operates in around 165 countries. Its members are The American Institute of Certified Public Accountants (AICPA)
Canadian Institute of Chartered Accountants (CICA)
Hong Kong Institute of Certified Public Accountants (HKICPA)
Institute of Chartered Accountants in Australia (ICAA)
Institute of Chartered Accountants in England and Wales (ICAEW)
Chartered Accountants Ireland (ICAI)
Institute of Chartered Accountants of Scotland (ICAS)
The Japanese Institute of Certified Public Accountants (JICPA)
New Zealand Institute of Chartered Accountants (NZICA)
South African Institute of Chartered Accountants (SAICA)
Institut der Wirtschaftsprüfer in Deutschland e.V. (IDW)

Anton Colella said, "It is a great honour to be appointed as Chair of such a prestigious global body, representing more than three quarters of a million accountants. This is an interesting and pivotal time for the accountancy profession. ICAS and the other 10 membership bodies of the GAA collaborate closely to ensure we speak together and are a leading voice on the key international issues that surround our profession. The shared expertise of the GAA is a gateway for accountants to grow and develop in what is becoming one of the first professions to be truly global.”

Anton was appointed Chief Executive of ICAS in 2006.

Ruffling Feathers

2011-10-17T11:01:00.000+01:00

Anthony Thomas, President of CIOT, may well have ruffled some feathers over at the ICAEW when he recently debunked the nonsense that there is a "special relationship" between HMRC and the professional bodies. He called it a "myth", akin to that "relationship" between the UK and US governments.

Over at the ICAEW, Michael Izza (the CEO) recently stated that "we (the ICAEW) now have a partnership with HMRC".

So, who is right?

Ethics

2011-10-04T16:27:00.002+01:00

Visit the ICAEW's Community page on Ethics.

As at the time of writing there were zero posts/comments!

'Nuff said!

Hat tip to Dennis Howlett for pointing that out.

This reminds me of an article about Ethics that I published in 2005.

Newsflash Ethics Coming Soon To ICAEW :)

@ICAEW_talk ICAEW Talk

@craigjwillis @dahowlett @finnern In my haste to set up the ethics blog, created the category before the blog was ready. It's coming soon

Membership Fees

2011-10-03T11:11:00.002+01:00

The FCABlog has a handy summary of the fees charged by the various accounting bodies in the UK.

The ICAEW and ICAS come out as the most expensive.

ICAEW Awarded Carbon Trust Standard

2011-09-22T15:09:00.001+01:00

ICAEW has been awarded the Carbon Trust Standard, and is the first professional accountancy body to achieve this certification.

"The Carbon Trust standard was achieved following a programme of recording, measuring, and managing ICAEW’s carbon emissions each year between April 2008 – March 2011.

As part of our programme ICAEW installed new lighting systems, controlled by movement sensors, developed a system of switching off plant and equipment during non-operational hours and installed energy efficient water cooling equipment. These changes on both ICAEW sites in the City of London and in Milton Keynes ensured the right carbon outputs for certification."

I trust that it was time and money well spent, as the Taxpayers' Alliance was of the view last year that the Carbon Trust should be shut down; as their letter (29 September 2010) to Chris Hune clearly states:

"Dear Mr. Huhne,

It has been reported that the Carbon Trust is under review and could be abolished. At the TaxPayers’ Alliance, we’ve done a lot of work on how to deliver spending cuts. Your department needs to find considerable savings and we feel that around £100 million that could be saved by abolishing the Carbon Trust should be one of them for a number of reasons.

The Carbon Trust doesn’t address a genuine market failure. If large businesses can genuinely save money by cutting their energy use, then they have an incentive to do so. Particularly with other policies – such as the Renewables Obligation – increasing energy prices and the introduction of the Carbon Reduction Commitment. If they need external advice to achieve that result, they can pay for it instead of taking money from ordinary taxpayers.

The quality of their advice is suspect. The Royal Borough of Windsor and Maidenhead, recognised as a pioneer for their energy saving work, felt that the advice they received was not reliable. The minutes of their Sustainability Panel record that:

“The Chairman went onto explain that he felt the Council had been sold a wonderful idea but that only a third of the predictions were going to occur which he felt boiled down to the original plan being wildly optimistic.”

The organisation is unaccountable and inscrutable. As the Freedom of Information Act does not apply to the Carbon Trust, taxpayers cannot find out how their money is spent. Staff remuneration is high. Their Chief Executive Tom Delay received remuneration of £237,797 in 2008-09. It is difficult to tell how many staff at the organisation receive high pay thanks to its complicated structure.

Three executive partners who manage investment funds for the Carbon Trust at the organisation’s investment management arm CT Investment Partners LLP (Peter Linthwaite, Jonathan Bryers and Adam Workman) appear to be very generously compensated. They paid £50,000 initially for their share in CT Investment Partners LLP and – between the three of them – are now getting £380,000
a year in profit in fees from the Carbon Trust. They work out of the same office and the National Audit Office has raised concerns at potential conflicts of interest, saying that there “is a risk that CAT Investment Partners staff could influence publicly funded research and development or incubator support for emerging businesses that they, in time, may back by way of investment and thus from which they may earn carried interest”.

The Carbon Trust has even expanded to other countries, as if it were a multinational company, through its Carbon Trust International programme. In August 2009 they were advertising for a Head of Carbon Trust USA position. They are working to promote the creation of similar organisations in other countries. This is clearly an inappropriate use of British taxpayers’ money.

The Carbon Trust is therefore subject to considerable mission creep, its main work does not address an actual market failure, it is extremely generous in how it remunerates its staff and fails to match up to the principles of transparency and accountability articulated by the Government. While it is possible to conceive of reforms that might improve the organisation, the best way of securing value for taxpayers is to abolish it outright.

Yours sincerely,

Matthew Sinclair
Director
TaxPayers’ Alliance "

Here's what the FCAblog thinks of this absurd waste of time and money:

"Er, wtf mates? Could you maybe go for a Plain English Standard next time, because that's the biggest load of management-speak cobblers I've ever read. "Quantify our footprint"? "Benchmark our performance"? This is obfuscation of the highest order.

If you really want to know what this all means, there's some documentation over at the Carbon Trust's website, including the full standard. Basically, ICAEW is using less carbon than it was in 2008. But carbon measurement is a curious science. For example, the graph of carbon emissions by country says that China is the 'worst' emitter. Yet most of China's emissions relate to production of goods which are then consumed elsewhere in the world. So while Brits throw lots of shit away, China gets the blame for it, carbon-wise. And the other big scam is carbon offsets, where you pay someone who might pollute to not pollute, so that you can instead. It's the discredited system of indulgences, reinvented for the 21st century.

Of course, saving money is A Good Thing. So why not just say that that's what they're doing - they're turning lights and the air conditioning off at Moorgate Place because it means the subscription won't have to go up as much next year? I'm sure members would love that.

One can only hope that more will be made clear when ICAEW publishes its annual review in spring next year. In the mean time, if you want to undertake a futile gesture, you can always 'vote down' the article on ICAEW's website. Go on, you know you want to..."

Diluting The Brand Via The Back Door

2011-09-21T15:26:00.001+01:00

The ICAEW has announced plans to work more closely with the Institute of Certified Accountants of Kenya (ICPAK) and has signed a Memorandum of Understanding (MoU).

The MoU enables qualified ICPAK members to apply for ICAEW membership subject to certain requirements, which include passing ICAEW’s Advanced Stage examinations and attaining a period of work experience with an ICAEW Authorised Training Employer.

ICAEW members can apply for ICPAK membership subject to passing Kenya tax and law papers delivered by Kenya Accountants and Secretaries National Board.

It seems that the ICAEW is intent on growth by numbers, irrespective of the fact that the method chosen dilutes the brand.