Operations & FINANCIAL STATEMENTS

It was another good but eventful year for the operations of the College. We enjoyed an entirely clean audit, the results of which reflect that the books and financial systems of the College are sound and in good shape.

After 10 years at Bayer’s Road, the College moved to new premises at 175 Western Parkway in Hammonds Plains. Staying put was not a real option: we had outgrown the space which itself required a substantial refresh. We secured a 13-year lease on new and purpose-built space, with rental rates locked in at less per square foot than previous premises. The move came in on time and on budget and we are delighted with our bright new offices.

We enjoyed an entirely clean audit, the results of which reflect that the books and financial systems of the College are sound and in good shape.

We enjoyed an entirely clean audit, the results of which reflect that the books and financial systems of the College are sound and in good shape.

The financial statements are accurate but require some explanation, as they somewhat flatter our actual position in two respects.

The significant operating surplus is largely a function of costly hearings that were anticipated to take place in 2019 but have been pushed into 2020.

Our investment income is primarily an accounting rather than cash gain. The reported gain of $422,000 reflects a moment in time comparison from December 31, 2018 to December 31, 2019 of the market value of investments in our reserve fund. Consideration should be given to timing, as markets had dipped in late 2018 and rebounded during 2019. As such, our statement essentially reflects a trough to peak growth in market value. The two-year return of 5% is a more reasonable reflection of our return.

With respect to our Reserve Fund, based on legal and tax advice, we have targeted maintaining reserves of 60% of annual budget. We were pleased to be at target at the end of 2019. Our investments are made under the oversight of the Finance and Audit Committee. The fund balances investment in equities and fixed income instruments, in keeping with our policy for socially responsible investing.

A word about 2020: since December 31, 2019, the outbreak of COVID-19 and related global responses have caused material disruptions to businesses around the world, leading to an economic slowdown. At the time of writing this report, the fair value of the College’s investments during 2020 had declined by approximately $600,000. The pandemic has certainly underscored the need to have our Reserve.