Finance and governance

Report by Jennifer Cullinane, Director of Finance

Established under Royal Charter in 1784, RCSI is an independent, not-for-profit, international health sciences university, postgraduate training body and research institution.

Over time, RCSI’s activities have evolved to include medical and healthcare education through Undergraduate and Postgraduate courses, research programmes and various community outreach activities. Having received designation as a statutory degree-awarding body in 2010, RCSI was granted university status as RCSI University of Medicine and Health Sciences in December 2019.

RCSI is also a recognised college of the National University of Ireland (NUI). Educational programmes at RCSI are accredited by various bodies, including Quality and Qualifications Ireland (QQI) and the Irish Medical Council (IMC).

RCSI is currently ranked first in the world for UN SDG Goal 3 ‘Good Health and Well-Being’ in the Times Higher Education Impact Rankings 2025.

Key activities

As a registered charity, RCSI works to advance its education and research objectives which align with our four strategic themes of health and societal impact, education and student success, research and innovation, and foundations for sustainable impact.

RCSI fosters collaboration, including joint initiatives with other higher education institutions, community outreach programmes, student clinical placements and an academic hospital partnership in support of its mission ‘to educate, nurture and discover for the benefit of human health’.

The education, training and research activities of RCSI span three continents, Europe, Asia and Africa, with operations in Ireland, Bahrain, China and Malaysia. RCSI oversees postgraduate training in surgery in Ireland and maintains close links and common training curricula with sister Royal Surgical Colleges in England and Scotland.

Since 2007, in collaboration with Irish Aid, RCSI has supported the College of Surgeons of East, Central and Southern Africa (COSECSA) to improve the standards of surgical care in East, Central and Southern Africa by advancing surgical education, training and examinations.

The RCSI Faculties of Radiologists and Radiation Oncologists; Dentistry; Nursing and Midwifery; and Sports and Exercise Medicine provide oversight, education and examination in their respective disciplines. The Irish Institute of Pharmacy provides continuing professional development for pharmacists throughout Ireland.

As one of Ireland’s largest indigenous services exporters, RCSI contributes significantly to the Irish economy, employing more than 1,400 people in Ireland, with an estimated additional 2,400 indirect jobs across the Irish economy supported through the expenditure of staff and students.

Financial governance

As the governing body of the institution, the RCSI Council is responsible for the organisation’s financial affairs. Certain functions are delegated to both the Finance and Audit and Risk Committees. RCSI’s financial objective is to ensure robust financial stewardship, recognising the increasingly competitive market environment and current geopolitical risks. RCSI is a signatory to the UN Principles for Responsible Investment and aligns its efforts with the UNSDGs.

RCSI operates a primarily self-funding model, receiving approximately 17% of revenue from public sources. In line with its charitable remit, all surpluses generated, after funding day-to-day operations, strategic investments and debt servicing, are reinvested to support RCSI’s educational, research and societal goals. An appropriate level of reserves is maintained to enable continued investment in strategic opportunities, including programme development, and to ensure responsiveness to external pressures, such as inflation.

Review of the year to 30 September 2024

RCSI delivered a steady financial performance during the year to 30 September 2024, in line with approved plans and bank covenant requirements.

Consolidated statement of revenue and expenditure

Revenue increased by 6% year-on-year, primarily driven by steady growth in education and research programmes.

Undergraduate and Postgraduate training activities accounted for 86% of revenue, with 12% from externally funded research and 2% from other revenue sources, mainly rental agreements. RCSI’s student body represents more than 100 nationalities, with more than half of all students and trainees attending under a sponsorship agreement or other support.

Operating costs increased by 7% on the prior year, reflecting inflationary effects, increased activity from growth initiatives and investments in staff under the RCSI Strategic Plan 2023-2027 Innovating for a Healthier Future. Robust procurement processes ensure the most economically advantageous terms are achieved. Recent sustainability initiatives under the Green Campus initiative and a solar farm project have resulted in reduced energy consumption, aligned with RCSI’s Climate Action Roadmap goals to reduce greenhouse gas emissions by 51% and improve energy efficiency by 50% by 2030.

Unrealised non-operating losses amounted to €5m, due to annual re-measurements, including property revaluations and currency impacts. The value of the defined benefit pension scheme, as measured under accounting standards, remained in a surplus position of €11m, though deficit funding continues under actuarial measures.

RCSI’s capital programme remains in line with approved plans. Significant campus infrastructure projects are funded through an appropriate balance of debt and cash reserves, while annual investments align with asset write-down levels. Net interest at €6m represents debt service costs and deposit interest earned.

Balance sheet

RCSI’s net asset value of €419 million remains strong as of 30 September 2024. A net increase of 3% arises from a steady financial performance and capital infrastructure investments, offset by working capital movements and investment property market valuations. This value comprises a high-quality asset base of campus infrastructure, long-term borrowings and a low revaluation level, providing a firm foundation to support the delivery of RCSI’s mission.

The RCSI Group includes a number of subsidiary investments that support its mission. In Ireland, these include West Green Management Company Ltd, which provides property management services, and RCSI Travel DAC, to facilitate the delivery of international programmes. Globally, RCSI operates a medical university in Bahrain, in Malaysia partners with University College Dublin under a joint venture arrangement for RCSI-UCD Malaysia Campus and collaborates with Soochow University for the International College of Pharmaceutical Innovation (ICPI) in China.

Consolidated balance sheet

Conclusion

Overall, RCSI continues to deliver a steady financial performance in line with approved plans and bank covenant requirements.

Risks are managed through a comprehensive risk control framework, which includes mitigation strategies for existing and emerging risks. Key risks include cybersecurity threats, inflationary pressures and broader market and geopolitical volatility. Despite these challenges, RCSI operates in a sector with strong demand for healthcare education.

I would like to acknowledge the contribution of Council, external board members, SMT colleagues and all RCSI staff, including the finance team, for their commitment to the delivery of the RCSI mission in a financially sustainable manner, in line with the RCSI values of respect, collaboration, scholarship and innovation.