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
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KICK THEM OUT - SPIN. MISREPRESENTATION. GREED. EVEN LIES

This covers the board and management of CPA Australia
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Brett Stevenson
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KICK THEM OUT - SPIN. MISREPRESENTATION. GREED. EVEN LIES

Post by Brett Stevenson » Thu Jun 01, 2017 8:01 am

SPIN. MISREPRESENTATION. GREED. EVEN LIES

KICK THEM OUT
They all need to go. This is a disgrace on the organisation and the profession.
Note the timing of the release of this shameful document - 1 day after the deadline for new directors nominations.
Too tricky by half.

PIGS AT THE TROUGH (pages 14, 15 and 26 says it all)
the board
can you believe the greed and arrogance of these people who purport to oversee the organisation on behalf of the members.
Remember this is for 6 to 10 days per year. And these were voluntary positions prior to the beginning of Alex Malley’s reign (apart from the President).
President/Chairman on $312,000
Deputy President (two of these of course) on $130,000 each
Directors (nine of these) on $99,000 each
And to top it off three of them (Carlin, Petty, Dolin) get an extra $70,000 each,and one (Wade) gets an extra $100,000. A gift from CPA Australia Advice.
This is unbelievable.
Check out the table on page 26
Graeme Wade received $359,000 as a director in 2016. No wonder he’s the chief salesman and go-to man when members ask questions on these issues.
Don’t call me Graeme, I’ll just hang up. This is unconscionable.
Richard Petty $277,000
Tyrone Carlin $255,000. No wonder you are resigning Mr Carlin.
Michele Dolin $169.000.
And on and on it goes.
Have these people no shame.
Remember these are the very same board who assured us in their memo of 16th March 2017 that no director received more than the maximum prescribed in the constitution.
Don’t you just love that little
"Article 45 of the CPA Australia Ltd Constitution does not apply in relation to Director fees associated with subsidiaries of CPA Australia Ltd.”
on page 14
as there way of excusing the indefensible.
The gall of these people.
Just establish a few more subsidiaries to give themselves pay increases beyond the constitutional limit.
This is 'out Enroning' Enron.
It's what I would call an ‘off the balance sheet’ remuneration increase.
I would also call it a device to not comply with the constitution.

the three senior executives -
CEO Alex Malley on $1.8 million. Wow.
A league of his own in terms of remuneration excess.
More than double what the CAANZ CEO earned.
No wonder he has built up a property portfolio of $11.1 million in recent years.
It is an example of personal accountability being thrown out the door, and taking what you can.
How he can show hi s face in public is beyond my understanding.
COO Adam Awty on $950,000 Obscene.
Even more than the CEO of CAANZ.
Can you believe these guys.
Jeff Hughes on $900,000 Scandalous
I can tell you this Jeff don't ever phone me because I would just hang up.
This is a disgrace.

the senior managers - Have a look at page 15, even the next 17 managers are in on the act. Wow.
Have a look at the salary bands of this little merry band of ‘managers’.
In the 2016 Annual Report they are called the Business Effectiveness Leadership Team - what a joke.
They are very effective in lining their own pockets.
This is why CPA Australia needs a major overhaul not just at board level but at the organisational level also.
Just stop and think about the size of these salaries for 17 managers below the 15 purportedly Key Management Personnel.
This is pigs at the trough on every level.

Look at the annual report
At this point I suggest all members go the the annual report and look at these pages to put some faces to these names
Photo gallery of shame I would say
The Board - pages 58 and 59 of the annual report.
The Executive and Management - page 50 of the annual report (and there are another 9 missing from the photo)

I have a lot of my own work to do today but let me say I shall be back to this.
Let me highlight just a couple of quick ones.

Member Growth
page 1.
"Over the last four years, more than 45,000 members have joined CPA Australia”
How can that be true.
The membership at end of 2012 (annual report) was 144,000. Now it is a reported 160,000 (which we know is really only 155,000). Thats an increase of 16,000.
I have looked at the Members Register, and the increase in the last four years in it was 32,780.(7130,7892,8143,9642)
How to explain the difference?
Apart from the obvious lies and misrepresentation it suggests an attrition rate for new members of 50%
Let me take 2016 as an example, and members please go and check my calc’s and logic.
The total membership stayed the same from 2015 to 2016 at 155,000.
The members register showed an increase in new members of 9,642.
Well, where did they go? I suggest that most new members are not retained.
They brag of a retention rate of full members of 98.3%.
I suggest the retention rate for new members is the reverse. Maybe 10% to 20%.
This is both a lie and a complete misrepresentation of the true reality of member growth at CPA Australia.

CPA Australia Advice
page 22. Have a look at this.
We have now invested $12,400,000 in this venture.
But what were we told at 31Dec 2017? Its in note 18 of the annual report p.90.
Just of the interest free loan of $5.6million.
Nothing of the $2.8 million capital contribution. As a matter of fact if you look at Note 20 (page 91) it quite specifically says the capital investment was $1.
What gives here.
Perhaps the auditor can explain this but to me it looks like the accounts need to be modified.
And now they have decided to provide another $4 million (a loan, an equity contribution, a what, we don’t know).
And no detail on the revenue and expenses. This is a rort.
And meanwhile the directors and senior executives are paid from this off balance sheet slush fund.
The directors of CPA Australia need to pretty quickly get their act together before this becomes a major financial disaster.

Frequently Asked Questions section
pages 7 to 25
I dont know who they employed as their PR consultant to sell tis to us. But I would say sack them before wasting any more money.
These are Dorothy Dixers at best, all under the guise of commonly asked questions.
All the hard questions, such as those submitted and ignored at the AGM, are still being ignored.
I cant wait to rip into the Corporate Governance a section.
That is just a total misrepresentation of the reality of what is happening at CPA Australia.
Lets just take their justification for effectively disenfranchising the members by not allowing them to vote for directors. Its on page 9.
"The 2006 governance review also considered direct election of Directors by members, but highlighted the risks of “factional-based decision-making” and
the consequent potential for negative impacts on the organisation’s ability to be nimble in an increasingly complex and competitive operating environment.”
That is pure unadulterated crap.
If that was the recommendation by Khoury Cameron Ralph (who did the governance review) then I suggest they need to rethink what governance is all about.
I am guessing that is the way the post Malley regime have justified not giving the members a direct vote.
I have never read such crap in my life in governance.
Maybe we should not vote for our Members Of Parliament because it will make us less nimble and too factional. Really.
And our board seriously put their name to this.

I have other work to do today but I am sure other members will rip into this and show it for what it is - SPIN. MISREPRESENTATION. GREED. EVEN LIES

Cheers

Brett


Brett Stevenson CPA BComm MDiv
bstevenson100@gmail.com

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nakedadmin
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Re: KICK THEM OUT - SPIN. MISREPRESENTATION. GREED. EVEN LIES

Post by nakedadmin » Thu Jun 01, 2017 8:30 am

Brett Stevenson wrote:
Thu Jun 01, 2017 8:01 am
Member Growth
page 1.
"Over the last four years, more than 45,000 members have joined CPA Australia”
How can that be true.
The membership at end of 2012 (annual report) was 144,000. Now it is a reported 160,000 (which we know is really only 155,000). That's an increase of 16,000.
I have looked at the Members Register, and the increase in the last four years in it was 32,780.(7130,7892,8143,9642)
How to explain the difference?
Apart from the obvious lies and misrepresentation it suggests an attrition rate for new members of 50%
Let me take 2016 as an example, and members please go and check my calc’s and logic.
The total membership stayed the same from 2015 to 2016 at 155,000.
The members register showed an increase in new members of 9,642.
Well, where did they go? I suggest that most new members are not retained.
They brag of a retention rate of full members of 98.3%.
I suggest the retention rate for new members is the reverse. Maybe 10% to 20%.
This is both a lie and a complete misrepresentation of the true reality of member growth at CPA Australia.
I guess it implies that if 45,000 joined then 29,000 left. Which implies a retention ratio of about 95% but they brag it's over 98%. So the retention ratio they quote must only be applied to full members.

So I guess that with 90,000 full members (and it's probably less) there would be about 1,500 leaving each year to have a retention ratio of 98.3%. That means about 5,700 ASAs leave each year. If they are joining at the rate of 11,250 per year thats a retention ratio of 50%. Good value for our marketing spend?
The Naked Webmaster

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Red_Ferrari
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Re: KICK THEM OUT - SPIN. MISREPRESENTATION. GREED. EVEN LIES

Post by Red_Ferrari » Thu Jun 01, 2017 12:02 pm

.
The sponsorship of the NBL is what tipped me over. It was an outrageous & disgusting waste of the membership's money .. and today's Rear Window in the AFR tells us that the CPA programme is outsourced to PDL Academy which is owned by [read the attached article to find out]. These dudes just don't get it.

As for the 32 page info memorandum to members, not one word as to who requested it, and not one word that they were forced to supply it under Section 202B of the Corporations Act. I wonder how much was paid to the marketing consultants who wrote that spin, and what Deloitte charged to (unnecessarily) audit the remuneration numbers. It should be zero, as they would've already gone through those numbers as part of their EOY procedures for the Dec 2016 annual accounts (the disclosure note with the lump sum aggregated figure). Tyrone Carlin has seen the writing on the wall and done the right thing and resigned .. the others should do likewise.
.
Attachments
z AFR Thu 1-6-17 p49 REAR WINDOW ... CPA Australia spreads the love to key powerbrokers.pdf
(1.27 MiB) Downloaded 106 times
z AFR Thu 1-6-17 p1 ... CPA Australia's Alex Malley's pay revealed as$1.79m, chairman stands down.pdf
(1.82 MiB) Downloaded 80 times

raleighcpa
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Re: KICK THEM OUT - SPIN. MISREPRESENTATION. GREED. EVEN LIES

Post by raleighcpa » Thu Jun 01, 2017 1:43 pm

Let's kick them out.

Where do I sign?

Exmember
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Joined: Fri Jun 02, 2017 7:35 pm

Who do they represent?

Post by Exmember » Fri Jun 02, 2017 7:55 pm

I resigned from CPA some years ago which was somewhat sad given the work I had put in place to become a member including HD in all CPA exams. About 10 years ago I found myself out of a job at a time when there were few accounting jobs around (a situation which seems to have only gotten worse). I phoned CPA after I received a letter saying my membership would be cancelled through non payment of fees. I explained my situation and was told that I could get a 50% reduction in fees. I then asked if there was any help they could give to which the response was "have you considered seeing a recruitment consultant?" and the guy on the phone then looked on Seek and said he didn't understand how I could be out of a job as there were thousands of accounting jobs advertised (well my last role was as a Finance Manager in Melbourne so probably accounts payable in Sydney wasn't going to cut it). I realised that these guys had no clue what the real world was about.

Anyway I kept paying my fees and got a job in the education sector teaching accounting as there were just no jobs in accounting I was short listed for. First to local students and then to international students. I quickly realised that the international had no real interest in learning and PR was the end game. Then I read that CPA has written a letter to the Government asking that accountants be kept on the skilled shortage list. "What skills shortage" I asked. I couldn't find an accounting job and I knew many other CPA's in the same position yet our member body is wanting to let even more accountants into the country. Is it not the job of a member organisation to look after the interests of its members? How can flooding an already over supplied market be in the interests of CPA members? I resigned on the spot sending a letter to CPA saying I was disgusted and criticizing the decline in member admission standards over the years (is it true you don't even need a unit in tax to now became a member) Some time later on the train I was chatting to someone who was studying for their CPA exam.I asked what his accounting job was and couldn't believe it when he said he was actually a logistics manager but he qualified to become a member under some special pathway. I had to laugh when around 2 years later I received a letter from CPA inviting me to reinstate my membership at no cost.

So today I learn of the salary of Alex and how his bonus is calculated on how many new members have joined. Now I know why CPA wrote to the Government wanting no change to the skilled shortage list. Its a total disgrace.

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The Nude CPA
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Re: KICK THEM OUT - SPIN. MISREPRESENTATION. GREED. EVEN LIES

Post by The Nude CPA » Fri Jun 02, 2017 11:36 pm

Red_Ferrari wrote:
Thu Jun 01, 2017 12:02 pm
...and today's Rear Window in the AFR tells us that the CPA programme is outsourced to PDL Academy which is owned by [read the attached article to find out]. These dudes just don't get it.
That first article is a pretty damn good indication of the culture within the upper echelons of CPA Australia.

Pigs.

A massive clean out of 'key personnel' is needed; otherwise, any attempted correction will be a waste of time.

Insider
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Re: KICK THEM OUT - SPIN. MISREPRESENTATION. GREED. EVEN LIES

Post by Insider » Sat Jun 03, 2017 4:34 pm

Even this disclosure is dubious. I doubt that the salary number for Malley includes various expenses carried by CPA on his behalf. Notably his apartment in Melbourne and the costs of flying him to his various committees in New York and London etc. I wonder also about his on costs like the personal driver and so on. Has anyone twigged yet to the cost of bribing the astronaut to come to Australia? Over a million. True story. And then there's Richard Petty's various side engagements and use of the Hongkong office resources. We can only wonder at how much money has been sucked out of CPA by this little cabal.
These guys should be worried because this latest disclosure is incomplete. Their continued cover up of the true extent of their greed will become a more serious matter once members really poke the facts.

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Re: KICK THEM OUT - SPIN. MISREPRESENTATION. GREED. EVEN LIES

Post by theallseeingeye » Sun Jun 04, 2017 12:34 am

I find these remuneration revelations deeply disappointing and excessive. More so since my local division was telling me for years there was no money for funding regular get-togethers (think wine and cheese networking once a quarter) - we were told it had to be a CPD event , that we members must pay extra for , and it had to break even as well. Which seemed like undeniably good business logic for a not-for-profit ....until this week's revelations.

So here's the thing: My understanding is that the various Divisional Presidents and Branch Committees are all people giving their time voluntarily ,is that correct? Attending branch meetings , preparing for Congress, giving speeches/CPD events to members, representing CPAA at industry and university events, plus travel time.

If all these men and women have been diligently supporting the brand unawares of this ....how are they feeling right now about these revelations? If they are as disappointed as I am, how can they possibly reconcile continuing to work with the leadership of CPAA and yet face the rank and file?? I couldn't.

(And please , let's not have the "they are part of the problem" accusations - maybe some are, but I know good people serving on committees who don't deserve that label, I am sure they must be as shocked as the rest of us)

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