On the positive side, he reported that the Union had cashed in its long-term investment and the surplus realised is reflected in other income.
Costs overall were lower than those suffered in the 2007/08 season due primarily to the absence of costs for the Autumn matches and the effects of the first full year with the Lansdowne Road stadium closed.
He did note increases in professional game costs arising from inflation in the international market and in administration and overheads due to costs associated with the Union's new offices and professional fees.
In relation to the Union's balance sheet, Gace indicated that the amounts advanced in respect of the Thomond Park development were included.
He also drew attention to cash balances of over €52m which included phased payments of €51m received in respect of corporate boxes and premium tickets.
These funds would be used to fund the Union's share of the cost of redeveloping Lansdowne Road.
In summing up the result for the year, Grace said: "The result was a reasonable one given events on and off the field during the year. The Union remains on target to achieve its strategic financial goals.
"With the longer term in mind, the Union would be looking at value for money across all areas and also ensuring that all risks have been properly identified, assessed and addressed."
He finished by thanking all those who had helped him in his first year as Honorary Treasurer, paying particular tribute to the outgoing President Der Healy and his immediate predecessor in the role of Honorary Treasurer, John Lyons.
For photos from the IRFU's annual Council Meeting in Dublin, please click here.
For a list of the 2008/09 IRFU Committee and Officers, click here.