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2016 financials - AAT - Jeff Hughes and Nicholas Diss directors

Posted: Sat Oct 07, 2017 9:33 pm
by JWheldon
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.

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

Posted: Sun Oct 08, 2017 9:11 am
by nakedadmin
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.

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

Posted: Fri Dec 08, 2017 11:53 pm
by JWheldon
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.

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

Posted: Sat Dec 09, 2017 9:13 pm
by nakedadmin
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.