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

A Scorecard to monitor performance of the new Board

Key contributor Jen Dalitz topics for discussion
Post Reply
User avatar
jendalitz
Posts: 51
Joined: Thu Mar 30, 2017 5:20 pm

A Scorecard to monitor performance of the new Board

Post by jendalitz » Thu Oct 12, 2017 11:32 pm

Folks I've taken the feedback from our almost 4,000 Spillers and used it to collate this scorecard which has been sent to the Board today - you can my letter to our new President on my blog at https://jendalitz.com/advocacy/gets-measured-gets-done/

A summary of the Scorecard is as follows. I welcome your thoughts. And I encourage you all to write to the board if you haven't already done so to express your views. It's very important they know that we're still here!

Cheers
Jen Dalitz

Scorecard for refreshed board of CPA Australia
For assessment by the CPA Spillers prior to the 2018 AGM

1. Governance measurements
a. Remove Representative Council and reinstate direct member voting for Directors.
b. New Board members who served on Divisions or Representative Council during Malley reign and failed to speak out should leave the Board.
c. Director terms limited to 6 years. Reduced to 8 members.
d. Board not permitted to establish commercial businesses without reference to AGM.
e. CEO term limited to 5 years.
f. Directors Dolan, Petty, Wade to be removed as directors of CPA Australia Advice effectively immediately.
g. “Double-dipping” remuneration to executives of both CPA Australia and CPA Australia Advice to cease with immediate effect.
h. Life membership of Alex Malley, Graham Wade and Richard Petty to be revoked.

2. Remuneration measurements
a. Disclose to all members the details of firms to be engaged in remuneration benchmarking project prior to publishing their findings.
b. Board to commence action against former Directors to recover Malley’s “unreasonable” $4.9 termination payment.
c. Full end to end organisation review of roles, responsibilities and remuneration to be undertaken with significant reduction in executive remuneration in line with appropriate market rates for a not-for-profit member organisation.
d. Ongoing disclosure of all director and KMP remuneration, that members must approve by resolution at AGM.

3. Marketing recommendations
a. Full review of Rabbitoh’s sponsorship – who attended the corporate box? - with view to recovering full amount from Malley/Board due to “personal interest” element.
b. Remove any directors with links to current “sponsorship” arrangements.
c. Create new Marketing Director position on executive team to evaluate all future marketing spend with appropriate business case analysis.

4. Member services & engagement recommendations
a. New Chairman to issue public apology to whistleblower members referred to as “rebel” or “rogue” by executive and past board, in prominent national media and in an all-member communication to all CPA Members.
b. CPA’s PSC Scheme restored.
c. Creation of Member Advocacy role reporting direct to CEO as the “Voice of the Member”.
d. New strategy to be focused on servicing and supporting, not growth alone, and to be put to AGM for member approval.
e. Members to receive a reduction in member fees for FY2018 reflective of significant accumulated surpluses held on balance sheet.
f. Annual report to disclose greater level of detail above and beyond minimum reporting requirements and include performance against a five year forecast.

5. CPA Australia Advice measurements
a. CPA Australia Advice to be shut down.
b. No additional funds to be loaned from CPA Australia to CPA Australia Advice.

User avatar
nakedadmin
Site Admin
Posts: 599
Joined: Thu Mar 23, 2017 4:38 pm
Location: Iceland

Re: A Scorecard to monitor performance of the new Board

Post by nakedadmin » Fri Oct 13, 2017 12:37 am

All good stuff.
The Naked Webmaster

Magnet
Posts: 49
Joined: Mon Jun 19, 2017 10:18 am

Re: A Scorecard to monitor performance of the new Board

Post by Magnet » Fri Oct 13, 2017 3:02 pm

Great stuff Jen!

Fantastic to let them know that we are still here, will be watching and are 4000 members strong so will rattle a few cages if we have to!

User avatar
Brett Stevenson
Posts: 396
Joined: Fri Mar 24, 2017 10:43 am

Re: A Scorecard to monitor performance of the new Board

Post by Brett Stevenson » Fri Oct 13, 2017 4:25 pm

I think what is implicit in quite a few of these actions is that it will involve looking at some pretty serious matters regarding directors duties.
So, for example, to try to recoup any of the Malley $4.9 million termination payout, it will involve asking some very serious questions about the six board members (Dickson, Portelli, Wade, Petty, Dolin, Youngberry) fiduciary duties and perhaps a closer look at the section 180's of the Corporations Act. Breaches of these duties is no small matter.
I suggest that is why the IRP are not recommending action.
You can all guess at the motivations and reasons behind that.
To me, this termination payment, and the CPA Advice fiasco especially, are reasonably clear-cut cases for further legal action.
And I hardly think I am Robinson Crusoe in that regard.
One would like to think ASIC will pursue these (and other matters) but that is wishful thinking it would seem if their past performances and almost total silence is any indicator.
So, really the only other option to take action is CPA itself. and it should.

So, where does that leave the new board?
Lets hope they gain some ticker, and are prepared to act and do the right thing. Unfortunately the IRP, the past board and DC Presidents and possibly other influential CPA members are saying lets contain the damage to CPA, and protect the brand and the organisation.
I personally think that is terrible and really misguided advice.
If CPA does not make a strong stand now on these matters then I think it will never recover and/or it will be just a weak membership organisation with no professional grunt and clout. Loss of credibility in the marketplace is no small matter, and that is where CPA Australia is now placed. To suggest that no action be taken against the persons responsible for that loss does not bode well. I, for one will be unlikely to renew unless there is some significant and definite change. Everyones motivators for being a CPA are their own, but I reckon the common denominator must be an organisation with integrity in what it professes and does. Turning a blind eye does not do that for me.

So, I would like to see not only these actions developed by the Spillers Group acted upon, but others as well. But implicit in that action is the deeper and more serious implications on past and current directors and officers of CPA Australia.
That I believe is what is necessary and why I do not believe the IRP will recommend what it should.

How can anyone at board level approve the $1.5 million paid to the already overpaid directors and senior managers of CPA Australia for their service to CPA Australia Advice which in the same period had a total revenue of just $47,000 without some one asking what in the blue blazes were you thinking?
Those board members need to be held to account for that decision.
I suggest the new board have a glance at s.181-184 of the Corporations Act, and ask a few serious questions.
I then suggest they take a good look at what their duties and responsibilities are to CPA Australia and the membership.
For the new board to not act could actually be a breach of their duties.
Mmm, now that's food for thought for the new directors.

I would suggest Jim Dickson and Sharon Portelli will need to be excused from the board meetings while these matters are discussed And that is important for the new board to understand in relation to this period from now to 31st December.

User avatar
nakedadmin
Site Admin
Posts: 599
Joined: Thu Mar 23, 2017 4:38 pm
Location: Iceland

Re: A Scorecard to monitor performance of the new Board

Post by nakedadmin » Fri Oct 13, 2017 8:48 pm

Brett Stevenson wrote:
Fri Oct 13, 2017 4:25 pm
Unfortunately the IRP, the past board and DC Presidents and possibly other influential CPA members are saying lets contain the damage to CPA, and protect the brand and the organisation.
CPA Australia and those running it are acting like they are afraid of people finding out how crap they are.

Do the right thing and don't fear for your reputation. Your reputation will follow.
The Naked Webmaster

JWheldon
Posts: 241
Joined: Wed May 24, 2017 6:43 pm

Re: A Scorecard to monitor performance of the new Board

Post by JWheldon » Sat Oct 14, 2017 12:31 am

It is interesting to see that a Not For Profit, which was originally established for a good purpose is being run akin to a listed profit business, with a strategy of minimum disclosure, extreme remunerations, and keeping the stakeholders in the dark with poor financial accounts and audits which are no-longer deemed appropriate for this sector. This sector says a lot about good governance to the members of the public and the media, but behind the scenes, it appears totally different.

Also interesting that the board keep saying that CPA Australia is over 100 years old, but the Australian Society of Accountants was established in 1952, with other organisations before that. Sometimes the truth is stranger then fiction. CPA Australia has been good at stretching the truth, just like they did when the posted in their annual reports, that their financial accounts were an award winner.

If CPA Australia is a business, which the Presidents keep stating, where the board objectives and strategy are akin to a full profit operation, then maybe CPA Australia should go down the road which RACV took, and list??? Then the members can have a vote and return on equity and hold the management and board to account? Maybe this is what Graeme Wade, Richard Petty and others, really wanted as the next move for CPA Australia. The State Presidents and committee members have indicated that they were kept in the dark, as Head Office had taken control of everything. The State Presidents etc have been replaced and only just a useless title with a small compensation.

The Not For Profit sector has a history of these type of entities listing, due to the fact that they have grown to big, and no longer believe in their original objectives, but now believe in one of a full profit operation.

CPA Australia is certainly not a charity, like some other entities describe themselves as. One would see CPA Australia as a full profit education business, which competes with and in conjunction with Universities and other ventures in this space.

CPA Australia board, have acted liked a full profit business, except with fewer rules, disclosed as little as possible to the market at large, made staff and management complete non-disclosure agreements, and remunerated board and management like a full profit business. They have treated the entity like their own personal cash cow, for which they could do what they wanted and didn't have to explain to any one. Then when serious questions were asked,about the operation and compliance, they attempted to shut down the conversation, akin to a entity in the history books, that had a lot to hide. When the truth started to be dragged out of them, they resigned due the disgrace of the facts being brought to light by the members, and eventually got rid of the CEO. Almost a movie or a TV series in the making.

This CPA Australia operation is a good teaching example for younger accountants, to see the bad, the good, and probably the worse with regards to accounting and accounting standards. Maybe the accounting boards, and audit boards will start to act in the best interest of the public?

Lets hope that the accounting boards and audit boards stop being silent and start voicing their opinions and concerns.

theallseeingeye
Posts: 86
Joined: Sat Jun 03, 2017 4:23 am

Re: A Scorecard to monitor performance of the new Board

Post by theallseeingeye » Sat Oct 14, 2017 11:03 pm

JWheldon wrote:
Sat Oct 14, 2017 12:31 am
CPA Australia board, have acted liked a full profit business, except with fewer rules, disclosed as little as possible to the market at large, made staff and management complete non-disclosure agreements, and remunerated board and management like a full profit business. They have treated the entity like their own personal cash cow, for which they could do what they wanted and didn't have to explain to any one. Then when serious questions were asked,about the operation and compliance, they attempted to shut down the conversation, akin to a entity in the history books, that had a lot to hide. When the truth started to be dragged out of them, they resigned due the disgrace of the facts being brought to light by the members, and eventually got rid of the CEO. Almost a movie or a TV series in the making.
Bang on. This is exactly the summary I have been carrying in my head for some time now.

Post Reply