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2017 CPA Report

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JWheldon
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2017 CPA Report

Post by JWheldon » Fri Apr 06, 2018 5:53 pm

Attached is the 2017 annual report for CPA Australia.

Another award winner for the Women's weekly. 124 pages, half fully of colorful pictures and diagrams, which add little value, but clearly aim to distract the reader from any real information relating to accounting. CPA Australia Advice? The report is very thin on CPA Australia Advice information.

The reports says Jeff Hughes resigned or was he terminated? Adam Awty did he resign or was he terminated?

Page 113 - Alex Malley $5,787,724. What a disgrace.

Jeff Hughes $809,161, and termination benefits $759,499 total $1,568,660. That should keep him cash flow positive for a little while, until the next part-time job.

Still lots of questions.

What do other members think?
Attachments
CPA annual-report-2017.pdf
(8.2 MiB) Downloaded 65 times

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nakedadmin
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Re: 2017 CPA Report

Post by nakedadmin » Fri Apr 06, 2018 10:08 pm

What a nice photo on the cover.
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JWheldon
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Re: 2017 CPA Report

Post by JWheldon » Sat Apr 07, 2018 1:04 am

Have attached the 2017 CPA Australia reports and notes summarised to a four pages, when you look through the full 2017 CPA Australia financial report.

When you look through the notes and then expand the expenses and revenue, you get a feeling that cost centers, with regards to expenses, looks very similar and others are creatively described, but don't really mean much. Still lots of questions about how the funds are being spent.

Now hopefully, many young members of CPA will look through the reports and ask lots of questions and attend the AGM, and hold the board to account. Also, hopefully it will help the younger members to understand the information, listed in the notes to the accounts.

Sounds like a lot of consultant and subcontractor fees, carefully allocated through the Profit and Loss. Where is the fringe benefits costs.

Other members were right about the cost of the Independent Review being about $1 million.

CPA Australia, paid sponsorship to Qantas.

Interested in members views with regards to the 2017 CPA Australia annual reports







CPA Accounts 2017 summary.pdf
(60.41 KiB) Downloaded 67 times

alizzia
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Re: 2017 CPA Report

Post by alizzia » Sat Apr 07, 2018 5:16 am

The treatment of the CPA Australia Advice loan on page 90 is not correct. It is saying the carrying value in the books is $8.44 million.

"On 1 June 2015, CPA Australia entered into a loan facility with its wholly owned subsidiary, CPA Australia Advice. The maximum amount that can be advanced under the loan facility is $20m; all amounts advanced are interest free and are repayable in full by 8 June 2025....As at 31 December 2017, the total amount advanced under the loan facility is $12.44m; the carrying value of the loan is $8.44m. The directors have assessed the loan and the investment in subsidiary and concluded that there is objective evidence of impairment...."

Why wasn't this written down to zero? The loan agreement isn't worth the paper it is written on. This entity doesn't have a snowflake's chance in hell of ever repaying back to the members what it borrowed. The full $12.44 million should have been written down, wiping out nearly all the year's surplus and increasing the loss on the Australian operation to $26.3 million. How Deloitte signed this off is beyond comprehension.

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nakedadmin
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Re: 2017 CPA Report

Post by nakedadmin » Sat Apr 07, 2018 2:07 pm

The loan will be consolidated out so it's all recorded as an expense. There is some parent entity disclosure. I think the following statement means they wrote it off for the purpose of the parent entity disclosure?

"The directors have assessed the loan and the investment in subsidiary and concluded that there is objective evidence of impairment"

We'll need to get the CPAA Advice statements.
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The Nude CPA
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Re: 2017 CPA Report

Post by The Nude CPA » Sun Apr 08, 2018 3:29 pm

nakedadmin wrote:
Fri Apr 06, 2018 10:08 pm
What a nice photo on the cover.
What about this one? Delightful, isn't it?

CPAA Annual Report 2008_Front Page.jpg
CPAA Annual Report 2008_Front Page.jpg (126.94 KiB) Viewed 2775 times

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nakedadmin
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Re: 2017 CPA Report

Post by nakedadmin » Sun Apr 08, 2018 4:47 pm

The Nude CPA wrote:
Sun Apr 08, 2018 3:29 pm
nakedadmin wrote:
Fri Apr 06, 2018 10:08 pm
What a nice photo on the cover.
What about this one? Delightful, isn't it?


CPAA Annual Report 2008_Front Page.jpg
Took me a while to figure out it was not an elaborate joke. For the benefit of others it's actually real.
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JWheldon
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Re: 2017 CPA Report

Post by JWheldon » Mon Apr 09, 2018 6:01 am

Have attached a breakdown of the membership numbers, as obtained from CPA Australia for the 2016 and 2017 years, and matched it against the revenue and costs as allocated by CPA Australia to each region.

Do the allocations of revenues and expenses for each region over the 2016 and 2017 look funny? It does not appear that costs are being correctly allocated or matched to regions appropriately.

Now, the allocation of membership with regards to Mainland China and Other Overseas regions, may be slightly adjusted, but the idea is the overall picture that it provides.

Something does not appear to look right.

What do others think?
membership-demographics-31 Dec 2016.pdf
(1.41 MiB) Downloaded 53 times
membership-demographics-31 Dec 2017.pdf
(418.96 KiB) Downloaded 64 times

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Stomper
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Re: 2017 CPA Report

Post by Stomper » Mon Apr 09, 2018 1:43 pm

It looks like only direct costs are allocated to each region - it would help if they had included details of the cost allocation methodology.

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nakedadmin
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Re: 2017 CPA Report

Post by nakedadmin » Mon Apr 09, 2018 6:30 pm

Thanks JWheldon, it's interesting to look at this on a revenue by member basis. It's obviously more than member fees that go into it. They have not released ASA numbers by region.
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Stomper
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Re: 2017 CPA Report

Post by Stomper » Wed Apr 11, 2018 10:11 am

I suspect the increased revenue per "member" is due to fees associated with migration assessment services.

Never mind the fact that Australia is awash with accountants with applicants outnumbering vacancies by a factor of 36.8 to 1

Meanwhile accountants remain on the skills shortage list
It is understood that universities, which derive income from international accounting students, and two of the major accounting bodies, which charge foreign accountants fees for membership and ­evaluating qualifications for migration, support keeping the occupation on the list.
https://www.macrobusiness.com.au/2018/0 ... lty-wages/

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The Nude CPA
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Re: 2017 CPA Report

Post by The Nude CPA » Thu Apr 12, 2018 10:19 am

Stomper wrote:
Wed Apr 11, 2018 10:11 am
Never mind the fact that Australia is awash with accountants with applicants outnumbering vacancies by a factor of 36.8 to 1
Got a source for that statistic? Not questioning it, just want to have a further look.

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Stomper
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Re: 2017 CPA Report

Post by Stomper » Fri Apr 13, 2018 1:29 pm

The Nude CPA wrote:
Thu Apr 12, 2018 10:19 am
Stomper wrote:
Wed Apr 11, 2018 10:11 am
Never mind the fact that Australia is awash with accountants with applicants outnumbering vacancies by a factor of 36.8 to 1
Got a source for that statistic? Not questioning it, just want to have a further look.
https://docs.jobs.gov.au/system/files/d ... ants_1.pdf

Since 2009, there have been consistently high applicant numbers for accounting vacancies.
o In 2017, there were, on average, 36.8 applicants per vacancy, compared with 14.3 across all
assessed occupations and 13.5 for all assessed professions.

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The Nude CPA
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Re: 2017 CPA Report

Post by The Nude CPA » Mon Apr 16, 2018 11:35 am

Stomper wrote:
Fri Apr 13, 2018 1:29 pm
The Nude CPA wrote:
Thu Apr 12, 2018 10:19 am
Stomper wrote:
Wed Apr 11, 2018 10:11 am
Never mind the fact that Australia is awash with accountants with applicants outnumbering vacancies by a factor of 36.8 to 1
Got a source for that statistic? Not questioning it, just want to have a further look.
https://docs.jobs.gov.au/system/files/d ... ants_1.pdf

Since 2009, there have been consistently high applicant numbers for accounting vacancies.
o In 2017, there were, on average, 36.8 applicants per vacancy, compared with 14.3 across all
assessed occupations and 13.5 for all assessed professions.
Thanks, Stomper.

There's definitely some interesting statistics in that research.

JWheldon
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Re: 2017 CPA Report

Post by JWheldon » Mon May 07, 2018 9:09 pm

Have added the 2017 CPA Australia Key Management Personnel information. Interesting issues as already raised by Naked Admin.

Question for members, don't committee members and state presidents get reasonable reimbursements? So shouldn't this payments be included in remuneration for for Robyn Erskine and Ric De Santi, given they were doing to key positions?

It is disappointing, that CPA Australia adjusted the disclosure with regards CPA Australia Advice directors.

What other consultancy fees/ research grants have been paid to related parties? Didn't Richard Petty and Alex Malley produce a research paper? Did they obtain grants from CPA Australia?

So have the 2017 accounts for CPA Australia Advice been lodged yet?
CPA Australia 2017 - Key Management Personnel.pdf
(38.52 KiB) Downloaded 33 times
Notes information.

(1) Includes anual leave entitlements accrued during 2017.
(2) Other short-term benefits include car parking, fringe benefits and associated fringe benefits tax payable.
(3) other long-term benefits include long service leave entitlements accured during the year.
(4) Remuneration for Suzanne Haddan was included as KMP in 2016 however, she in not considered a KMP of the group in 2017.
Her remuneration is therefore not included in 2017.
(5) By Mutual agreement with Mr.Carlin and the Company, no remuneration was payable for the period 1 April 2017 to 30 May 2017.
(6) Superannuation was overpaid by $365 in 2017 and is currently in the process of being recouped.
(7) In addition to the director fees paid to Mr. Youngberry for the period 15 June 2017 to 30 September 2017, consultancy fees were also paid
to PFM Advisory Services Pty Ltd ("PFM"), a company of which Mr. Youngberry is a director. Please refer to Note 18(e) for further details.
In April 2017 CPA Australia signed a statement of work with PFM engaging Timothy Youngberry as a consultant for the period 10 April 2017
to 10 July 2017. The scope of the agreement included working with the Learning and Developemnt Team at CPA Australia to manage and
deliver a project for a client of CPA Australia. A Total fee of $44,188 (exclusive of GST) for this consultancy work was paid to PFM.
The details of this contract were disclosed in the directors declaration of interest register prior to Mr Youngberry attending his first Board Meeting.
(8) During the independent benchmarking process, the directors agreed to defer receipt of remunerations from CPA Australia. Following
completion of the independent benchmarking process and the outcome thereof, director fees relating to the period 1 October 2017 to 31
December 2017 have been accured in the 2017 financial statements and reflected in the above table. All amounts are payable in early 2018.

During 2017, CPA Australia made a final payment of $100,000 to the National Basketball League under a commercial arm's length sponsorship agreement signed in 2016 covering Australia, China, New Zealand and other selected countries including India and the Philippines. Graeme Wade, a director of CPA Australia until 30 September 2017 is also a director of NBL Pty Ltd.

Director fees of $2,635 have also been accrued for Arun Nangia, a director of CPA Australia Advice (appointed 18 December 2017) and $1,516 for Andrew Heng, a director of CPA Austraila (M) Sdn, Bhd. All amounts are payable in early 2018.

(interesting the provisions are made, but no disclosure on KMP? CPA Australia Advice is a 100% subsidiary and the directors are in a key management position and related to CPA Australia.)

JWheldon
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Re: 2017 CPA Report

Post by JWheldon » Tue May 29, 2018 10:15 pm

Did any members see what the amount of FBT that was paid by CPA Australia in the financial report? Do not think it was disclosed, even though it was material.

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