Statement from the Board 6 April 2018

Your new Board would like to update you on a number of matters.

1. Release of the 2017 Integrated Annual Report

The 2017 Integrated Annual Report is now available for members to view online. For members that have requested a hard copy these will be mailed to you shortly.

2017 was the most challenging and disruptive year in CPA Australia’s history. Through the efforts of many members CPA Australia has undergone considerable change. We have a completely new Board appointed solely by members of Divisional Councils, a new CEO appointed by the Board after a vigorous national and international executive search, and a commitment to transparency that means this year’s Annual Report has levels of disclosure that exceed anything that has been published previously.

The Annual Report includes an extended Statement of Profit or Loss with supporting notes, as well as disclosures on remuneration for directors and key management personnel.

Members will note we have delivered an operating surplus before tax of $10.5 million which gives the new Board and CEO a strong foundation for more investment in improving services and value to members. Recent action by the Board has resulted in members being able to access 28.5 hours of free CPD and we will shortly be providing more detail about a major promotional campaign to support our members in public practice.

Members will also note that the directors have assessed the loan and investment in CPA Australia Advice and concluded that there is objective evidence of impairment of the loan to CPA Australia Advice as at 31 December 2017. A full provision for impairment has been recognised. Details can be found on page 90 of the Annual Report.

2. CPA Australia advice post implementation review

The Independent Review recommended undertaking a post implementation review of CPA Australia Advice. PwC has been appointed to undertake this review and a Final Report is expected in June 2018.

PwC will review all aspects of the business rationale, conduct, operational principles and practices, as well as the business case and competitiveness of this subsidiary in both the immediate and longer term.

Until the review is complete and the report is received and considered, the directors will continue to operate CPA Australia Advice in accordance with the existing operating structure.

3. Annual General Meeting

The Annual General Meeting will be held on 22 May 2018 at the Melbourne Convention Centre at 5.30pm (AEST). Registrations will open at 4.30pm (AEST).

For the first time we are working with an external registry service, Link Market Services, to independently manage the distribution of the Notice of Meeting including a modern proxy form, lodgment of proxies, voting at the AGM and scrutineering of votes.

This has required the Board to make a minor change to By-Law Part 7 – Form of Proxy to ensure the Link form is compliant with CPA Australia’s By-Laws. This can be viewed on the website.

The AGM Pack including Notice of Meeting and proxy form will be distributed to all members at the end of the month.

Please keep your eye out for the AGM pack and make sure you have your say at the 2018 AGM where important constitutional changes will be decided.

4. Call for expressions of interest: Non-executive directors

At the end of the month CPA Australia will be calling for expressions of interest for non-executive directors. The Board undertook a tendering process to identify an appropriate executive search firm to manage the process resulting in the appointment of Russell Reynolds.

Advertisements will appear in INTHEBLACK, CPA Update, the website and in the Australian and international press.

Peter Wilson AM FCPA
For the CPA Australia Board of Directors