Merry Christmas to Peter Wilson. When it was suggested that Peter Wilson should be independent of the old board so that we can have a fresh start Peter responded with "That's your issue". Summary of the meeting here: viewtopic.php?f=23&t=594
A good summary of where we are up to by Joe Aston of the AFR, linked to from here: viewtopic.php?f=5&p=4137#p4137
If you are new to this website read the story so far: viewtopic.php?t=321#p1793
Check out some of the AFR articles, too many to list and check out some of the ABC reports: http://www.afr.com/business/accounting/ ... 215-h055ej http://www.afr.com/business/accounting/ ... 211-h02x1d http://www.abc.net.au/news/programs/the ... s,/8626662
Please join this website to participate in discussions. Also join our email list at http://eepurl.com/cWsgfb
Image

Independent Review Update

A weekly round up of the issues and progress
michaelk
Posts: 20
Joined: Mon Jun 05, 2017 8:34 am

Independent Review Update

Post by michaelk » Mon Jul 03, 2017 3:13 pm

Finally, some kind of development! Interesting that Angus has opted to resign from the review, yet CPA did not cite this being an perception issue.

https://www.cpaaustralia.com.au/media/m ... -July-2017

This part of the terms of reference gets me excited

"A consultative group of members will be formed, comprising Divisional Presidents, or their representatives, and other members as the independent panel deems appropriate."

Brett, I'm sure that you fit this profile.

User avatar
The Cyclist
Posts: 90
Joined: Fri Apr 07, 2017 2:11 pm

Re: Independent Review Update

Post by The Cyclist » Mon Jul 03, 2017 3:24 pm

Mr McPhee said: “I can assure CPA Australia members this will be an inclusive review with mechanisms for members to share their perspectives. We want to fully understand the issues and look at ways to move forward.”
I can only hope this proves to be true and that change does occur. However until the rump of the board and the senior executives that were complicit in the disgrace that has engulfed CPAA then there really isn't any way to "move forward".

deaneus
Posts: 188
Joined: Mon Apr 03, 2017 9:09 pm

Re: Independent Review Update

Post by deaneus » Mon Jul 03, 2017 3:32 pm

On 16 June 2017 the Board of CPA Australia announced an independent panel to conduct a review of claims raised by members and other stakeholders.

These include concerns relating to:
• Governance, including election of directors, term limits, independence of the Representative Council and compliance
• Remuneration, including disclosures, compliance with laws and accounting standards and benchmarking processes
• Marketing strategy and expenditure, including consistency with Board approved strategy and appropriateness of expenditure
• Other matters the reviewers consider appropriate.

The independent panel will consider the claims raised by members and stakeholders in relation to governance, remuneration and marketing strategy and expenditure. It will, among other things:
• Review claims raised by members and other stakeholders
• Assess Board and management compliance with the CPA Australia Constitution, By-Laws and policies
• Assess whether the current Constitution, By-Laws and policies align with best practice and member expectations
• Make recommendations for improvements

Okay everyone, get your pencils sharp, it's letter-writing time. Governance - tick. Remuneration - tick. Marketing - tick. Compliance with the constitution - tick.

After four ticks, you get to say "boom". Which might be what happens to the remainder of the board.

Time4Change
Posts: 104
Joined: Mon Jun 05, 2017 2:20 pm

Re: Independent Review Update

Post by Time4Change » Mon Jul 03, 2017 3:38 pm

What I don't understand or what amuse me, The current board sets the strategic plan and in collaboration with the executive team signed and ensured it is roll out. So is Dickson telling us that he is investigating his own strategic plan and wasn't he the man that say 23 directors stands by Alex and I Dickson also stand by Alex who is just rolling the strategic plan!!

Irrespective of, these directors have to stand down for any of those independent reviews to have any weigh. We are in a hold because of them in the first place, not because of us members. You failed your duty that have tarnished and dragged the CPA brand down. Please just accept it and stand down.

passedfc
Posts: 113
Joined: Mon May 29, 2017 3:14 pm

Re: Independent Review Update

Post by passedfc » Mon Jul 03, 2017 3:48 pm

Quick Response to the review terms of reference :
Outrageous !!!
This is the old board and executive in full protection mode .
Until they are removed no amount of review can cleanse the stench in CPA.
Nothing short of a full forensic audit will satisfy.
The potential for a nice little white wash review with a smack here and there is my cynical view.
With all due respect to the eminent panel a tinker to the constitution and election of directors etc will do nothing to remove the culture that exists.
'''...... claims that impact on the reputation of the organisation ... " Really !!! how about facts !!
.... recommendations to come to the 2018 AGM .....
Sorry too late ...

User avatar
Stomper
Posts: 205
Joined: Tue May 02, 2017 9:55 am
Location: Sydney, NSW, Australia

Re: Independent Review Update

Post by Stomper » Mon Jul 03, 2017 3:52 pm

passedfc wrote:
Mon Jul 03, 2017 3:48 pm

Sorry too late ...
It would have been nice to have seen the following......

"Until the completion of the Independent Review the Board will forgo all fees, including those from CPA Advice"

Lyn CPA
Posts: 4
Joined: Tue Jun 27, 2017 8:27 am

Re: Independent Review Update

Post by Lyn CPA » Mon Jul 03, 2017 4:05 pm

As a CPA member, I honestly think all the current board members and senior management team should be replaced to allow the CPA a fresh start. Under the current board, the credibility has already lost. No matter what’s the outcome of this or that independent review, under the current the board, what change are they going to make??? I don't trust them.

Lyn CPA
Posts: 4
Joined: Tue Jun 27, 2017 8:27 am

Re: Independent Review Update

Post by Lyn CPA » Mon Jul 03, 2017 4:07 pm

Only wasting more money from the members!!

passedfc
Posts: 113
Joined: Mon May 29, 2017 3:14 pm

Re: Independent Review Update

Post by passedfc » Mon Jul 03, 2017 4:14 pm

Agree Lyn
This is a thin attempt .. to fob off the issues
Read the terms of reference .. ... " consistant .. with Board Approved Strategy ... !!! BS !!
We already know the rep Council cant be independent...
Scope:
Review claims..........
Compliance with Constitution...
Where are all our articulate forum members to put words to this ...

passedfc
Posts: 113
Joined: Mon May 29, 2017 3:14 pm

Re: Independent Review Update

Post by passedfc » Mon Jul 03, 2017 4:14 pm

Agree Lyn
This is a thin attempt .. to fob off the issues
Read the terms of reference .. ... " consistant .. with Board Approved Strategy ... !!! BS !!
We already know the rep Council cant be independent...
Scope:
Review claims..........
Compliance with Constitution...
Where are all our articulate forum members to put words to this ...

incitem3
Posts: 17
Joined: Sun May 21, 2017 3:39 pm

Re: Independent Review Update

Post by incitem3 » Mon Jul 03, 2017 4:19 pm

Wow, what we have here is the board hiring a panel to review itself. The terms sound good but are vague in details. I presume the preliminary results will be reviewed by the board before release to the members. Considering what they have done so far to prevent any objections to their conduct they appear to be setting up a white wash of what has happened. How can this panel be seen as independent when the board is the ones that engaged them. If the panel is going to do a review to see if the board followed the polices that the board put in place, then I don't see that this is going to address the governance problems and resulting corruption of remuneration levels and self promotion. Waiting until the agm in 2018 is also not acceptable for a change.

We need to continue with a spill motion through ASIC to get rid of the existing Board. I don't expect much to come of this "independent review" and shame on McPhee, McCluskey and Crabtree to lend their reputations to this B of D corrupt causes as I expect these are not foolish people and surely can understand what is happening here. I presume the board is paying them a lot of our fee money as these panel members creditability and reputations are in severe risk of being tarnished.

chuck_meister
Posts: 96
Joined: Fri Mar 31, 2017 8:58 am

Re: Independent Review Update

Post by chuck_meister » Mon Jul 03, 2017 4:22 pm

I'm glad that Angus Houston recognised the implications. Poor form
from CPA not to even mention this in the update.

I really bad feeling about the outcome of the review. The review will
come up with a whole lot of recommendations. Of which the remaining
rump of a board will be motivated to cherry pick the most palatable ones
so they can be "seen" to acting and responding. There is nothing stopping
any recommendation from not being adopted. Especially any that lay the
direct responsibility.

I still hope we can force a EGM first.

Time4Change
Posts: 104
Joined: Mon Jun 05, 2017 2:20 pm

Re: Independent Review Update

Post by Time4Change » Mon Jul 03, 2017 4:34 pm

Let not lose focus which is exactly what the board is trying to do, pretending to do a review. We don't need a review, we need a full investigation that is not bias and for that to occur they all have to step down and if as they say " we haven't done anything wrong" then the investigation will show so. But seriously mid September is to late and AGM 2018 way to late by that time CPA Australia probably won't have any value. Those issue are critical and if they can't abide by Section 202B of the Corporation Act and can't hold the PSC limited liability and still haven't admit to us members that ASIC is investigating CPA, what hope do we have in those useless review of claim.

We need to press on with the spill motion and we members should be the one that decide the next avenue of our association not the current board that failed us so badly.

User avatar
The Nude CPA
Posts: 254
Joined: Sat May 06, 2017 4:21 pm

Re: Independent Review Update

Post by The Nude CPA » Mon Jul 03, 2017 4:58 pm

I think we need to step back and acknowledge that, while not ideal, at least something is happening and that's a step in the right direction.

Suggesting that the review will come up with nothing is a little unfair to those on the panel and is questioning their integrity before they've even done anything; a lot of eyes will be on them and critical of the review outcome, which gives me some confidence. I agree that the ToR is quite vague, but hopefully the review panel members will run with that leeway.

Having said that, I still feel our best move is to keep pushing forward on the spill motion.

Steve Hamilton
Posts: 34
Joined: Mon Jun 19, 2017 11:49 am

Re: Independent Review Update

Post by Steve Hamilton » Mon Jul 03, 2017 5:03 pm

We obviously weren't getting value for money in the $6.7 million a year or whatever it will end up being,
with the current board and exec team if they need to do a review.....

Also unfair to Houston in not mentioning the real reason for his withdrawal. Playing the same old games at board level. Never admit you are wrong!

Can the cost of the review be deducted from the board's fees going forward?

Still just an exercise in putting off the inevitable, which is the resignation of the remains of the current board. It has already cost $4.9 million in the Malley human sacrifice to keep their jobs. Just a pity we have to pay for it.

Wish the rest of the board would show some integrity and just quit. Save the organisation the cost of the review.

deaneus
Posts: 188
Joined: Mon Apr 03, 2017 9:09 pm

Re: Independent Review Update

Post by deaneus » Mon Jul 03, 2017 5:08 pm

Steve Hamilton wrote:
Mon Jul 03, 2017 5:03 pm
Wish the rest of the board would show some integrity and just quit. Save the organisation the cost of the review.
I'd want the review anyway, if only to stress to the new board, changes in governance that need to take place.

The convoluted board elects the rep council who elects the board rubbish for one.

User avatar
The Nude CPA
Posts: 254
Joined: Sat May 06, 2017 4:21 pm

Re: Independent Review Update

Post by The Nude CPA » Mon Jul 03, 2017 5:13 pm

deaneus wrote:
Mon Jul 03, 2017 5:08 pm
Steve Hamilton wrote:
Mon Jul 03, 2017 5:03 pm
Wish the rest of the board would show some integrity and just quit. Save the organisation the cost of the review.
I'd want the review anyway, if only to stress to the new board, changes in governance that need to take place.
Definitely. I thought the review panel members have the necessary credentials to make appropriate recommendations.

There is no reason why we can't also continue pushing for the removal of the remaining directors and executives anyway.

User avatar
Stomper
Posts: 205
Joined: Tue May 02, 2017 9:55 am
Location: Sydney, NSW, Australia

Re: Independent Review Update

Post by Stomper » Mon Jul 03, 2017 5:38 pm

Straight from the Yes Minister handbook...

https://youtu.be/5FRVvjGL2C0

passedfc
Posts: 113
Joined: Mon May 29, 2017 3:14 pm

Re: Independent Review Update

Post by passedfc » Mon Jul 03, 2017 5:51 pm

Yes sorry Nude and Deaneus....
You both are very active forum members .. and I respect all your comments...
BUT I remain the cynic with this review.
I do not trust this board or group of executives
Read it and strip away the rhetoric.
consultations.. ??? yes matters as per the terms of reference..
... a consultative group will be formed.... ( managed and controlled by us ... !!)
Yes the independent reviewers.. eminent and all ...may have the skills and ability ... but bound by the TOR.
As previously stated.. remember what the board is trying to do.. carry out review... concede some points .. and move on..
.. get a few of those rogues in the review .. and then we will be ok...
the press may already have found more interesting things to pursue..
we must press on with the removal of the board ... this review is an attempt for them to legitimise themselves as the people to fix up the mess they created..
Maybe I am too bloody minded for this forum.. but as an ex CFO i am outraged and the only thing that will allow CPA to refresh is to remove the rot.
already the US CPA are circling... along with the CAs

User avatar
Red_Ferrari
Posts: 76
Joined: Fri Apr 28, 2017 12:42 pm

Re: Independent Review Update

Post by Red_Ferrari » Mon Jul 03, 2017 5:59 pm

According to this article in AFR online, there's and AGM later this year .. but it was held in Singapore the other month.
Angus Houston withdraws from CPA Australia review panel
Jul 3 2017 at 3:36 PM | by Edmund Tadros and Patrick Durkin

Angus Houston has made a shock exit from the review of CPA Australia after admitting the scale of the crisis at the accounting body had caught him by surprise. The former chief of the defence force also said he was stung by criticisms of his integrity over his previous praise of former CPA chief executive Alex Malley.

CPA has also been forced to make major changes to the review panel after an outcry over the reporting structure and members of the original panel. It has added in three governance experts and a commitment to deliver any report and recommendations to members. The review will now be led by former Commonwealth Auditor-General Ian McPhee, with an expanded panel including experienced directors Su McCluskey and Maryjane Crabtree. Professor Bob Baxt will also act as an expert adviser on governance for the panel.

The terms of reference will include examining issues such as governance at the accounting body - how directors are elected and the independence of the body's representative council, the level of pay given to directors and executives and CPA's marketing strategy and marketing spend.
All these issues, and more, have been raised by unhappy CPA members who have watched in horror as seven directors of the accounting body resigned and Mr Malley was sacked with a $4.9 million payout in the past month. Last week saw confirmation that all CPA public practice members will lose their legal shield from multimillion-dollar lawsuits from October due to a legal conflict of interest with the body's loss-making advice arm.

A preliminary report with recommendations will be delivered to members by Friday, September 15. Members will be able to vote on changes to the body's constitution at an annual general meeting later this year.

Sir Angus has withdrawn from the review just 10 days after it was first announced, although he said he had "been thinking along those lines for some time" as the CPA crisis escalated and the obvious requirements of the review grew. "Just before [CPA chairman] Jim Dickson asked me to take on the chair, people were calling for an independent review but then things escalated and quite clearly the independent review was not just going to do a simple independent review it was going to have to do a full-blown, comprehensive and complete governance review and, of course, that is what is indicated now in the terms of reference and I think that's absolutely what is required," he told The Australian Financial Review. Sir Angus said he had "multiple commitments to complete over the next few months which leave little time for another major undertaking". He said 900 nominations arrived in a suitcase on Monday for the Order of Australia, he had an overseas trade delegation, board meetings as chair of Airservices Australia, as well as an upcoming Senate appearance and a host of speeches. "It's not as if I am going off on a holiday if that's what you are wondering," he said.

He said his record shows he had "always called it as he sees it" but pointed to criticism by CPA members in Financial Review articles and letters that were critical of his appointment. "The letters to the editors ... there were three that were very damning of my appointment to do the review ... there was a time when I would push on through but I thought I don't have time and it will be a longer process that might be involved so now is a good time to pull out. You don't make those sort of decisions lightly and I weighed things up over a period of days," he said.

Notes from one CPA member meeting seen by the Financial Review summed up the criticisms of many CPAs. The member stated that if he had wanted military advice he would go to a general, but if he wanted competent governance advice he would go to an expert corporate lawyer or a company secretary.

In a letter to Mr Dickson dated last Monday, Sir Angus wrote: "My independence to conduct such a review has been called into question because of my endorsement of 'The Naked CEO' and a television interview that I did with Alex Malley. After almost 20 years and some of the most testing of circumstances in public life my independence and integrity have never ever been an issue. I stand on my record." Mr Dickson said questions about the way the accounting body has been run could not 'go unanswered'. "We cannot allow questions of governance to go unanswered. Members, staff and the Board all deserve a robust independent analysis of the questions and assertions that have been raised in recent times and CPA Australia eagerly awaits those findings," he said in a statement.

"The independent panel has the qualifications and experience to make an honest assessment and, with member input, help CPA Australia become a stronger and more transparent organisation. Panel head Mr McPhee said the review would welcome views from all CPA members. "I can assure CPA Australia members this will be an inclusive review with mechanisms for members to share their perspectives. We want to fully understand the issues and look at ways to move forward," he said.

Post Reply