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2016 financials - AAT - Jeff Hughes and Nicholas Diss directors

Are minimum disclosures appropriate for an organisation that is supposed be setting the standard. What disclosures should be happening.
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JWheldon
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2016 financials - AAT - Jeff Hughes and Nicholas Diss directors

Post by JWheldon » Sat Oct 07, 2017 9:33 pm

Here is something for the young members to look at.

Look at the 2016 financial accounts of the Association of Accounting Technicians (Australia) Ltd (The body of Professional Bookkeepers), and the related party disclosures and loans from both the Institute of Chartered Accountants and also from CPA Australia. Nicholas Diss and Jeff Hughes are directors of this organisation. The accounts show borrowings of $910,000 as at 30 June 2016 and was $960,000 as at 30 June 2015 on page 7 . Look at Key management personnel compensation of $156,621 on page 14. on page 16 Non-Current - Loan - secured $910,000. Sounds like Jeff Hughes and Nicholas Diss have lots of time. Should the directors fees received from AAT by both Jeff Hughes and Nicholas Diss, key management employees of CPA Australia, been disclosed to the members of CPA Australia???? They would argue no.

Extract below from accounts of AAT

"During 2007/2008 the directors negotiated a loan of $350,000 each, fully paid, from the Institute of Public Accountants, CPA Australia and the Chartered Accountants Australia and New Zealand. The principal sum repayment was deferred by a Deed of Variation of Loan Agreement dated 19 March 2012 and repayments commenced from July 2016. The above loan is subject to interest at a rate of 0.5% above the 90 day bank
bill rate, per annum.

Repayments
Interest is calculated from the date at which the principal sum was advanced and payable on the corresponding day of each successive month.
The total sum is repayable in full by 30 June 2021 and the company has the option to repay the amount earlier.
The repayment terms of the loan, in an agreement with CPA Australia on 11 May 2016 and the Chartered Accountants Australia and New Zealand on 29 June 2016, have been deferred from 1 July 2017 to 1 July 2018.

Security
The Institute of Public Accountants, CPA Australia and the Chartered Accountants Australia and New Zealand have a charge over the assets of the company registered with the Personal Properties Securities Act (PPSA) - registration number 201112151158563."

If you have a look at the 2016 annual accounts of CPA Australian on page 90, a non-current loan of $320,000 is receivable from AAT as at 31 December 2016, but the accounts of AAT as at 30 June 2016 showed a loan balance in total of $910,000. So did CPA Australia loan more money to AAT??? There appears to be a difference in disclosure. If you have a look at the accounts of the Institute of Chartered Accountants for 30 June 2016 under note 6 Trade and Other receivables, it shows that AAT owes $350,000. Yet the disclosure in the 2016 CPA Australia notes clearly differ, even though they are at 31 December 2016. The terms of the loan have changed in a period of six months.

Its sounds like a another bad project, which Jeff Hughes and Nicholas Diss are trying to run. Sounds like the money loaned will be written-off as a bad debt.

So, how much does AAT owe to CPA Australia, IPA and ICAANZ???? Maybe it doesn't really matter, this entity will probably need more money to operate, just like CPA Australia Advise. Hopefully all the members of CPA Australia, IPA and ICAANZ will hopefully not be told there is additional donations being made to AAT.
Attachments
CAANZ_2016_AnnualReport_2.pdf
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aat australia 2016 annual report final.pdf
(1.98 MiB) Downloaded 79 times

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Re: 2016 financials - AAT - Jeff Hughes and Nicholas Diss directors

Post by nakedadmin » Sun Oct 08, 2017 9:11 am

JWheldon wrote:
Sat Oct 07, 2017 9:33 pm
Its sounds like a another bad project, which Jeff Hughes and Nicholas Diss are trying to run. Sounds like the money loaned will be written-off as a bad debt.
Yes what the hell is the purpose of these three accounting bodies running a bookkeeping association. Anyway I think it would be fair to say that bookkeepers have voted with their feet on this one. It's like a mini CPAA Advice.
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JWheldon
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Re: 2016 financials - AAT - Jeff Hughes and Nicholas Diss directors

Post by JWheldon » Fri Dec 08, 2017 11:53 pm

AAT, CPA Australia Advice.

Purpose:-

(1) Aim to increase membership in areas they are not involved in

(2) Aim to increase revenue streams via membership, education courses etc

(3) Aim to increase directors fees, increase CEO remunerations and increase management team bonuses as they have achieved increase in targets of more members

Sounds like a network marketing scheme, the more members you have the more money they make, then the more money they can use for themselves.

The only problem is that these individuals running these actives are not bookkeepers/financial planners and not really focused on increasing or improving the promotion of these activities in a business fashion. They probably thought, BUILD IT AND THEY WILL COME.

Well they build it, they spent on it, and kept on spending on it, and losing money on it.

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Re: 2016 financials - AAT - Jeff Hughes and Nicholas Diss directors

Post by nakedadmin » Sat Dec 09, 2017 9:13 pm

Well I think AAT is funded by the three accounting bodies. What on earth for. It's not even a successful venture in terms of the uptake. With the weight of 3 accounting bodies behind it, 15 years history it has only 3,800 members.

http://aat.org.au/about-aat-australia/history.html
Established in Australia in 2002, AAT Australia is supported by the three professional accounting bodies – CPA Australia, the Institute of Chartered Accountants in Australia and the Institute of Public Accountants and has a membership base of over 3800 members.
I guess the each of the accounting bodies appoints a Director and that was Awty but now it's Hughes. It's not considered a related party so no disclosures about how much they pay in or what benefit (if any) gets paid to the CPA appointed Director of AAT. Just another thing that's wrong of so many.

Basically this project should be scrapped. It's not performing.

Not to mention the conflict of interest between funding an organisation that competes/has members that compete with CPAs.
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JWheldon
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Re: 2016 financials - AAT - Jeff Hughes and Nicholas Diss directors

Post by JWheldon » Fri Mar 30, 2018 11:51 pm

Have attached the 2017 financials for AAT for members to look at.

http://aat.org.au/about-aat-australia/a ... ports.html

Extract from 2017 financials. Mr Diss, would be the need individual to ask questions about CPA, given he has been their for 16 years.

"Nicholas Diss is the Deputy CFO of CPA Australia. He has been at CPA Australia for 16 years and has held roles as management accountant, finance
manager and general manager – finance and administration. In his current role, Nicholas is responsible for the global finance, administration
and planning functions which include management reporting, corporate planning, strategic risk management, budgeting, new market analysis and
entry, risk management, business continuity planning, member transactions and corporate and sustainability reporting.
Nicholas has been on the AAT Australia Board since 2012 and has a strong background in strategic and operational planning, large complex IT system
implementations, integrated reporting and leadership of multinational finance functions."

There is a loan Debt forgiveness of $340,000 as at 30 June 2017. The borrowings went from $910,000 to $620,000. Refer to note 13, where both ICAANZ and CPA Australia, have write-off $170,000 each. So why not write-off the balance of the loan, or treat the funds contributed to AAT as a sponsorship. Interesting the IPAA has "agreed to lend an additional principal amount of $299,988 for AAT to use towards principal repayments of the laon with the other two sponsoring bodies" "The loan of $620,000 is subject to variable interest at a rate of 0.5% above the 90 day bank bill rate per annum."

There appears a small issues of why the funds from ICAANZ and CPA Australia are treated as sponsors? Is the funds were sponsorship funds, then why not treat it as income, and not a loan?

Also look at Note 15: Related Party Transaction. No interest was paid to CPA Australia during the 2017 taxation year, but a principal repayment of $30,000 and not interest, yet the ICAANZ was paid a principal amount of $30,000 and interest of $7,243. Maybe this is a mistake in the financials, with regards to the disclosure concerning the interest, because CPA Australia received no interest during the 2017 taxation year? If you have a look at the cashflow statement, the interest paid for the 2017 taxation year was $14,932, which you would believe would include two lots of $7,243. What do the members think.

I would encourage members to read note 4: Income Tax Expense. Interesting reading.

Also have a look at Note 5: Key Management Personnel Compensation. It appears to indicate total remunerations paid to 1 key management personnel of the company. So is it correct to say that Jeff and Nicholas Diss are counted as one or are they same persons? Ha Ha. Something from the X-Files. Ha Ha.

Maybe they didn't get paid? What. That couldn't be correct, as the current Chairman of CPA Australia, Peter Wilson, did not like the idea of the directors of CPA Australia Advice, not get paid a directors fee, where they were also directors of CPA Australia.

Well be interested in other members thoughts.

All l can say, lets see what the CPA Australia financial accounts for 2017 will say.
Attachments
aat 2017 annual report final v2.pdf
(3.06 MiB) Downloaded 53 times

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