$7 Million Surplus, Annual Membership Fee Increases, No Add Benefits to Members

[justice4CPA]

Every year, CPA makes millions of dollars of surpluses to build up its war chest. There are NO clear plans (long-term and short-term) as to the intent of this war chest.

To fund this war chest, members like us have to pay an ever increasing membership fees.

Our Asian counterparts are 'forced' to pay the same AUD equivalent.

How can we stop these increases? There MUST be a limit as to how much membership fees we need to pay, even if they are paid by our employers (for some).

I suspect these fee increases are needed to pay for the executive salaries and the wasteful marketing expenses that have no membership benefits to individuals.

Check out also the amount of money spent on the IT and membership systems.

Check out also the entertainment allowances of CPA executives!

Members are NOT CPA's cash cow!

[Drain_The_Swamp]

There clearly needs to be an external examination of how members' money is being used. It is clear that fees are too high and that there is enormous feather-bedding and waste. My guess is that you could halve membership fees with no appreciable decline in 'services.'

[JJF]

How much did the AGM in Singapore cost us?

Did all the little kiddies fly economy? Bet it was business class!!

When was the last time the "LinkedIn influencer" ever advocated for any issue that impacts us as CPAs?

[Disgrace 101]

And the majority of the surplus, $4m is derived from the investment portfolio, an "excellent performance" according to management, smoke and mirrors I would suggest.

Any why does a members services organisation have a $69m investment portfolio? The deputy cfo couldn't explain the purpose at the AGM, another overpaid employee at head office???

Though he did let it slip that Pitcher Partners managers the investments, god knows how much we pay them for the privilege.

I would be more than happy to manage my portion of the $69m investment portfolio myself without countless parties (CPA AUS, Pitcher Partners ++) clipping the ticket.

[nakedadmin]

An association of accountants that runs an AFSL licensee is engaging an accounting firm to manage the investments. There could be some benefit to this but I wonder what the fee is. Best way to save the fee is to not collect the money they don't need.

http://www.pitcher.com.au/about/corporate-overview
"Pitcher Partners is a national association of independent firms. The association is represented by Pitcher Partners Melbourne, Pitcher Partners Sydney, Pitcher Partners Perth, Pitcher Partners Adelaide, Pitcher Partners Brisbane and Pitcher Partners Newcastle."

So we don't know which one of the above anyway.

[GreenVisor]

nakedadmin I tried to send you a message on this server, but it didn't send to self or outbox. Is that functionality working ?
Thanks.

[Better Call Saul]

Keep up the good work everybody. What is becoming clear is that the "balance sheet" and ability to create serious positive cash flow (minus CPA Advice) has made the Board focus on quantity rather than quality. Quantity means power, influence and opportunity. There is no room for democracy to get in the way while CPAA head towards $100m in the bank and a public IPO.

[MarkG]

Here's a view on the over billing and over spending of over $30m each year.

It is based upon a review of 2006 (pre constitutional changes) and 2010 (start of impact of "brand").

Regarding compensation in 2006, from the PRINCIPLE 9: REMUNERATE FAIRLY AND RESPONSIBLY the report stated,
- "In 2006, directors did not receive remuneration”
- "total remuneration of the five highest paid executives (non- directors) is between bands A$200K– A$300K and A$400K
- "individual bonus up to a maximum of 7%”

Apart from the well publicised executive and board amounts, it seems there has been an escalation in pay. From 2006 to 2016 pay has DOUBLED from $30m to $60m while FTE has only increased from 426 to 470.

More to follow, particularly rebutting the claim that member increase is attributable to the brand and marketing.

Tally ho.

[Heisenberg]

Here's a view on the over billing and over spending of over $30m each year.

Interesting figures Mark. Thanks for putting them up.