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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CPA Australia Advice Pty Ltd

This covers the board and management of CPA Australia
certified sane
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CPA Australia Advice Pty Ltd

Post by certified sane » Thu Jun 01, 2017 4:58 pm

In addition to the other outrageous findings of you good people I also draw your attention to the cost of this white elephant to our organisation. Rather than lobby the government to allow qualified members to continue advising clients on topics like superannuation, CPA established this company to milk more funds from us.
Now they use it as the reason for a $900,000 hike in KMP remuneration. According to their directors remuneration schedule they have paid board members $380,000 for board remuneration. This leaves $520,000 paid to 3 KMP for 2016 with their justification being CPA Australia Advice Pty Ltd.... An extra $10,000 per week shared between 3 already full time people that failed to do their job in the first place.
Shame!

Why have KMP costs
increased by $0.9m (2016
– $5.5m, 2015 – $4.6m)
Following the establishment and operation of a new business, the wholly-owned
subsidiary CPA Australia Advice Pty Ltd, the KMP cost for 2016 includes the
additional payments made to the Directors and executives of CPA Australia
Advice.



CPA Australia Advice Pty Ltd Director Payments
Tyrone Carlin $70,000
Michele Dolin $70,000
Richard Petty $70,000
Graeme Wade $100,000
Suzanne Haddan $70,000

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Better Call Saul
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Re: CPA Australia Advice Pty Ltd

Post by Better Call Saul » Thu Jun 01, 2017 8:17 pm

A few key findings:-
  • it has 14 full-time equivalent staff members but yet the wage bill is $3.8 million, including that paid to directors and executives
  • the directors received $380,000 for CPA Advice work, and the executives $620,000, with only six meetings held it cost $63,000 a meeting
    and $113,000 for the executives
  • making a loss of $5.7 million in 2016 on top of $1.7 million 2015
  • cumulative losses of $7.4 million, and no sign that there is ever going to be a return on investment
  • CPAA has made $20m available of which $8.4m has been drawn at 31/12/16 with another $4m loaned in February 2017
  • I don't know how president Tyrone Carlin could work one day a week, is paid by both companies and received $254,000 in less than 12 months for his trouble
  • one of the directors of CPA Advice, Suzanne Haddan, has her own financial services business Baldry Financial Services with it's own financial services license. Suzanne Haddan was also on the advisory committee setting up CPA Advice. This does not seem to be disclosed in the CPA Advice accounts as a disclosure of related party matters or potential conflict of interest
  • the money lost in CPA advice over 18 months is equal to the total surplus for the financial year 2016 of CPA Australia. Meaning our surplus for 2016 was 50% down due to CPA Advice burning money

Accountability
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Re: CPA Australia Advice Pty Ltd

Post by Accountability » Thu Jun 01, 2017 8:30 pm

Yep and they also failed to lodge accounts by 30th April as required by ASIC until presumably prompted by a post on this website on the 15th May.

Accounts were subsequently lodged 16th May.
Great Coy Sec work there.

Revenue $44,000.
Classic slam dunk there by Wade. LOL LOL :lol:

I'd fall of my chair laughing if it wasn't so corrupt.

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Better Call Saul
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Re: CPA Australia Advice Pty Ltd

Post by Better Call Saul » Thu Jun 01, 2017 8:52 pm

  • Late lodgement of the CPA Australia Advice Pty Ltd financial statements Form 388
  • These were lodged on 16th of May 2017 with ASIC.
  • The lodgement date is more than four months after the end of the financial year and therefore the form has been lodged late by the Company Secretary.
  • The audit certificate was completed 24th of February 2017 and signed by the auditor on that date.
  • WHY THE GAP IN TIME?
  • The only possible concern members might have is that the late disclosure and publication of the subsidiary's financial statements has prevented members analysing the information either prior or during the recent AGM of 27 April 2017.

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nakedadmin
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Re: CPA Australia Advice Pty Ltd

Post by nakedadmin » Thu Jun 01, 2017 10:45 pm

Better Call Saul wrote:
Thu Jun 01, 2017 8:17 pm
  • it has 14 full-time equivalent staff members but yet the wage bill is $3.8 million, including that paid to directors and executives
  • the directors received $380,000 for CPA Advice work, and the executives $620,000, with only six meetings held it cost $63,000 a meeting
    and $113,000 for the executives
Good points Better Call Saul, so excluding the Directors and execs the average CPAA Advice employee gets $200,000 p.a. But it didn't even get going until half way through the year so it's probably not a full year as well.
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Better Call Saul
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Re: CPA Australia Advice Pty Ltd

Post by Better Call Saul » Thu Jun 01, 2017 10:55 pm

This table tells us there are some heavy hitters behind the scenes who must be filling up their 40 hours a week doing the Daily Telegraph crossword.

OR maybe they are down the CPA coffee shop noshing on the bagels?

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GenYCPA
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Re: CPA Australia Advice Pty Ltd

Post by GenYCPA » Fri Jun 02, 2017 1:54 am

If anybody wants to see the financial statements of CPA Australia Advice Pty Ltd for your own analysis (attached again here - also attached in other thread by Red_Ferrari). I have also included a summary of key figures.
Attachments
CPAAA Summary Figures.xlsx
(12.97 KiB) Downloaded 90 times
2d3838363233373630383.pdf
(643.27 KiB) Downloaded 64 times
Robert McDowall CPA | Partner | Arabon Accountants
CPA Australia Queensland Divisional Councillor

https://www.linkedin.com/in/robert-mcdowall/
Join the conversation on the CPA Members Group on LinkedIn https://www.linkedin.com/groups/103561

Not_A_CPA
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Re: CPA Australia Advice Pty Ltd

Post by Not_A_CPA » Fri Jun 02, 2017 8:15 am

GenYCPA wrote:
Fri Jun 02, 2017 1:54 am
If anybody wants to see the financial statements of CPA Australia Advice Pty Ltd for your own analysis (attached again here - also attached in other thread by Red_Ferrari). I have also included a summary of key figures.
At a quick glance it seems ironic CPA are having a CA certified firm to audit their annual statements.

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Stomper
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Re: CPA Australia Advice Pty Ltd

Post by Stomper » Fri Jun 02, 2017 8:56 am

GenYCPA wrote:
Fri Jun 02, 2017 1:54 am
If anybody wants to see the financial statements of CPA Australia Advice Pty Ltd for your own analysis (attached again here - also attached in other thread by Red_Ferrari). I have also included a summary of key figures.
So the majority of the loss is salary and wages and professional services.

I'm too enraged to make any more comment about this clusterf***

deaneus
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Re: CPA Australia Advice Pty Ltd

Post by deaneus » Fri Jun 02, 2017 9:00 am

certified sane wrote:
Thu Jun 01, 2017 4:58 pm
Rather than lobby the government to allow qualified members to continue advising clients on topics like superannuation, CPA established this company to milk more funds from us.
Exactly. A disgrace - what's the point of having a member body, if instead of fighting for us, it simply turns around and bilks us instead?

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Red_Ferrari
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Re: CPA Australia Advice Pty Ltd

Post by Red_Ferrari » Fri Jun 02, 2017 10:17 am

.
Links to the accounts of CPA AA are in this post, over in the Weekly Roundup Forum:

http://cpamembers.org/viewtopic.php?f=14&t=212 at Thu Jun 01, 2017 7:32 pm

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The Nude CPA
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Re: CPA Australia Advice Pty Ltd

Post by The Nude CPA » Fri Jun 02, 2017 9:51 pm

nakedadmin wrote:
Thu Jun 01, 2017 10:45 pm
Better Call Saul wrote:
Thu Jun 01, 2017 8:17 pm
  • it has 14 full-time equivalent staff members but yet the wage bill is $3.8 million, including that paid to directors and executives
  • the directors received $380,000 for CPA Advice work, and the executives $620,000, with only six meetings held it cost $63,000 a meeting
    and $113,000 for the executives
Good points Better Call Saul, so excluding the Directors and execs the average CPAA Advice employee gets $200,000 p.a. But it didn't even get going until half way through the year so it's probably not a full year as well.
More like $250k p.a., isn't it? I took the 14 FTE employees as including Malley, Awty and Hughes (the 3 carried over from 2015).

So, ($3.8m - $1m) / (14 - 3) = $254.5k

What's more is that CPAA does some 'administrative work' for CPAAA, so what the hell are these employees actually doing?

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The Nude CPA
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Re: CPA Australia Advice Pty Ltd

Post by The Nude CPA » Fri Jun 02, 2017 10:02 pm

Better Call Saul wrote:
Thu Jun 01, 2017 8:17 pm
A few key findings:-
  • the directors received $380,000... with only six meetings held
Two of the directors only attended five of the meetings, so they essentially pocketed $11.6k for doing nothing!

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The Nude CPA
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Re: CPA Australia Advice Pty Ltd

Post by The Nude CPA » Fri Jun 02, 2017 10:19 pm

Better Call Saul wrote:
Thu Jun 01, 2017 8:17 pm
A few key findings:-
  • one of the directors of CPA Advice, Suzanne Haddan, has her own financial services business Baldry Financial Services with it's own financial services license. Suzanne Haddan was also on the advisory committee setting up CPA Advice. This does not seem to be disclosed in the CPA Advice accounts as a disclosure of related party matters or potential conflict of interest
MASSIVE conflict of interest and/or failure to disclose!

What's more is that her firm not joining CPAAA doesn't say much for our little project...

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Brett Stevenson
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Re: CPA Australia Advice Pty Ltd

Post by Brett Stevenson » Fri Jun 02, 2017 10:30 pm

Yes, it's a useful calc.
I just took off the directors total (4by70k, 1 by$100k = $380k)from the $3.8m to give $3.4m and then divide that by 14 to give roughly $243,000 average.
The obvious message whatever the exact amount is, is that they certainly are not 'running a tight ship' for a start up.
And gee whiz why shouldn't the current cpa key management personnel get a share of the spoils as well.
Graeme Wade is on the $320,000 presidents remuneration for most of 2016 (to Oct when he passed the baton to Tyrone Carlin) but let's top that off with a $100,000 chairmans role at cpa aust Advice. Mustn't let our chief defender and advocate go hungry now.
But didn't we tell the members that no director received more than the maximum the constitution allowed.
We did, but we can get around that. Let's use the same sort of approach we used for the NBL sponsorship ( you remember where we called it a commercial arms length transaction with no conflict of interest even though a Graeme was the Chairman of the NBL). Well let's just say CPA Australia Advice isn't bound by s.45 of the constitution even though it's fully owned and financed by CPA. That's just a legal technicality. The members won't care, and if anyone complains we'll just call them rogue members and unfriendlies, and if we stick together we can minimise their impact.
I hardly need to mention Richard Petty, or Tyrone Carlin, or Michel Dolins Remuneration from
CPA Australia Advice - its the same as with Graeme.
It's another $380,000 for us, so let's not disclose too much.
And that's the CPA leadership in action.

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The Nude CPA
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Re: CPA Australia Advice Pty Ltd

Post by The Nude CPA » Sat Jun 03, 2017 12:24 am

Yeah, let's create a subsidiary and rip $1m in remuneration out of it before it's even generated $100k in revenue, let alone turned a profit...

Sounds like a good business plan! :x

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nakedadmin
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Re: CPA Australia Advice Pty Ltd

Post by nakedadmin » Sat Jun 03, 2017 9:18 am

The CPAA Advice financial statements were signed off by the auditor and management on 24 February. They were not lodged with ASIC till May, after the AGM.

The CPA Australia financial statements, Director and executive remuneration includes the payments to CPAA Advice Directors. But the Director of CPAA Advice that is not a Director of CPA Australia is not listed in the names of the KMP.

Both financial statements state that the Directors are paid under Article 45 (the Auditor General percentage caps).

So did Deloitte work with CPA Australia to hide this from the members. Or could they somehow have overlooked that one of the KMP was not listed. If Haddan was listed then questions would have been asked.

The s202B request we put in was before the CPAA Advice financial statements were lodged with ASIC. At that stage there was no way of knowing the Directors were also getting fees from CPAA Advice and that CPAA Advice had this other Director.

This raises the question about why was Haddan's name not included in the KMP. I'm hardly willing to accept it was accidentally overlooked by both parties that would have had the list of Directors and what they were each paid adding up to the total that was disclosed.
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The Nude CPA
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Re: CPA Australia Advice Pty Ltd

Post by The Nude CPA » Sat Jun 03, 2017 1:52 pm

nakedadmin wrote:
Sat Jun 03, 2017 9:18 am
The CPA Australia financial statements, Director and executive remuneration includes the payments to CPAA Advice Directors. But the Director of CPAA Advice that is not a Director of CPA Australia is not listed in the names of the KMP.
Great pick up.

It's damn embarrassing whether it was an oversight or a purposeful omission.

belle
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Re: CPA Australia Advice Pty Ltd

Post by belle » Sat Jun 03, 2017 4:17 pm

What really gets up my nose is the financials for the year ended 31/12/2016 .
How can CPA Australia Advice Pty Ltd generate only rounded $44,000 in licence fees yet spend $3,798,000 in employee benefit expense as well as $549,000 in professional services expense and technology expense $807,000 ( Total Loss for the Year $5,683,000)
This is nothing short of a scandal and the directors should have been shown the door YESTERDAY. These include Wade, Carlin, Dolin ,Petty and Haddan and the executive circle from CPA Australia
This information has been extracted from ASIC by two members of the CPA Members Forum . We all members thank you for your hard work !!!!!

JWheldon
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Re: CPA Australia Advice Pty Ltd

Post by JWheldon » Sun Jun 04, 2017 4:11 pm

Ladies and gentlemen of CPA Australia,

Lets not forget the auditor of CPA Austalia, Mr Mark Stretton of Deloitte Touche Tohmatsu. Why did he sign off the accounts as giving a true and fair view and complying with the accounting standards, when so many issues, which Brett and other hard working CPA members have clearly highlighting.

Maybe members should send questions directly to Mr Stretton and see what response he provides the members of CPA Australia, given he is supposed to be providing us the members with some type of assurance.

Did any members see Mr Stretton at the AGM??

Did any members hear Mr Stretton about the audit and the reports at the AGM????

Lets put questions to Mr Stretton about CPA Australia Advice, which he audited. Why weren't items that were published in the financial report of CPA Australia Advice disclosed, in the related party disclosure of the CPA Australia financial report?

Alex Malley, Jeff Hughes, Adam Awty , Graeme Wade etc seem to have forgotten that CPA Australia is an accounting Not-for- Profit organisation, and that the members are accountants.

Its time for young members to read the information on this site and get involved and learn what the accounting industry does and what accountants do and help take back the organisation. There seems to be two CPA Australia's, one with thousands of members and the other with a small few who believe their own wealth creation is the prime objective.

Keep investigating and telling the members what is really going on.

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