- Context and clarification for members regarding recent media stories
- The strategic review was a bottom-up exercise with over 1,000 members consulted
- Reporting initiatives are in progress which will be reflected in the level of disclosure in CA ANZ’s next annual report
During April 2018, a number of articles were published in the Australian media which raised concerns regarding your membership body.
To ensure members are properly informed, outlined below is some background information to provide context and clarification regarding some of those matters reported on.
CA ANZ financial outcomes
The CA ANZ financial results for three financial years from 2014/15 to 2016/17 were a surplus of A$6.2 million followed by deficits of A$8.18 million and A$6.77 million respectively.
Over this period, your standard membership subscription was decreased with savings passed onto you in excess of A$25 million. This was a commitment made to members when CA ANZ was formed. The money saved by members through fee decreases exceeds the two years of deficits recorded in 2015/16 and 2016/17.
At their March meeting, your Board reviewed the latest financial forecasts for the organisation which indicates the achievement of a surplus for the year 2017/18, as foreshadowed in both the 2016 and 2017 Annual Reports.
At this same meeting, your Board approved an increase in the standard member subscription for the 2018/2019 year of A$30 to A$710. The subscription remains substantially below the rates charged by both ICAA and NZICA prior to the merger.
CPAA members becoming CA members
CA ANZ and CPAA have had a mutual recognition programme based on appropriate eligibility criteria in place for many years.
During 2017, CA ANZ management prepared the organisation for an increase in membership enquiries from CPAA members. This was the appropriate action at the time because some CPAA members were concerned about the potential loss of their limited liability cover.
During that period, just over 1,000 CPAA members joined CA ANZ. This is significantly more than the prior four years where the number was in the low double digits on average. The acquisition costs of those members were approximately 15% below the average acquisition cost for our new members coming into the CA Program.
Eligible CPAA members are welcome to join CA ANZ at any time.
Letter to the AFR
Read our correspondence to the Australian Financial Review (AFR)Read now
CA ANZ membership numbers for 2016/17 were reported as 117,112 as at the end of June. This number represents all classes of membership including those studying which are classified as “Provisional” members. The 2016/17 numbers excluded those Provisional members who failed to progress their studies. When applying the same methodology to the 2015/16 numbers, our total membership was 115,279. Therefore, your membership organisation grew by 2.2% when comparing 2016/17 over 2015/16.
Annual Report disclosure
The Board has acknowledged that disclosure and transparency of information provided in the CA ANZ’s annual report can improve. Reporting initiatives are in progress which will be reflected in the level of disclosure in CA ANZ’s next annual report.
Alliance with ACCA
In June 2016, CA ANZ announced an alliance with the Association of Chartered Certified Accountants (ACCA). At the time of making the announcement it was stated: “In the coming months extensive consultation will take place with our members and other stakeholders to determine and shape the alliance in creating exciting opportunities for our members.”
Consistent with what was announced at the time, the CA ANZ Board examined all potential options for the development of the alliance with ACCA over the medium to longer term. The Board conducted “soundings” with a range of influencers across your membership and defined a number of opportunities which has delivered many benefits including:
- Worldwide profile building of both brands through our combined network of global offices, and enhanced support to CA ANZ members where CA ANZ does not have a physical presence.
- Joint research, networking and technical events.
- Access to online resources, tools and educational products.
- Opportunity for dual membership of both bodies, subject to meeting the eligibility criteria of the other body. To date, almost 500 ACCA members have been accepted as dual members.
Your Board will continually look at opportunities to provide better services through alliances, joint ventures and other mechanisms.
In early 2018, the CA ANZ Board Chairman Murray Jack and President Jane Stanton communicated with you about the strategic review that was undertaken over the second half of 2017 and approved by the Board in November 2017.
The review was undertaken from the bottom up with over 1,000 members consulted across Australia, New Zealand, Asia and the United Kingdom on a face-to-face basis to obtain feedback and provide input into the CA ANZ strategy for the future.
As was announced to members, following the Board meeting in February this year, the initial development work on the creation of a new online community hub for members and enhancements to the CA Program were endorsed. This included a re-alignment of the structure of CA ANZ to ensure the organisation can support the development and delivery of these and other initiatives.
A further update was provided to members by CA ANZ CEO Rick Ellis in March which highlighted the creation of the new online community hub for members and reforming the way current and future learners enter and progress within our CA Program through developing more flexible pathways for entry to the CA Program while also reviewing the content, design and delivery.
Read about changes to Chartered Accountants Australia and New Zealand’s organisational structure.Learn more