ICAA Annual Report 2003

ICAA Annual Report 2003 >
The Institute of Chartered Accountants in Australia
CONTENTS
1
>
Highlights
2
>
Organisational profile
4
>
The ICAA board
5
>
Our strategic plan
6
>
President’s report
8
>
Management report
10
>
Standards and Public Affairs
14
>
CA Program and Admissions
16
>
Continuing Professional Education
18
>
Marketing
20
>
Member Relations
22
>
Support Services
Financial statements
26
>
Financial commentary
29
>
Statement of Financial Position
30
>
Statement of Financial Performance
31
>
Statement of Cash Flows
32
>
Notes to the financial statements
46
>
Directors’ declaration
47
>
Independent audit report
48
>
Board Commitees & Regional Councils
ANNUAL REPORT 2003
The Institute of Chartered Accountants in Australia
Incorporated in Australia Members’ Liability Limited, ABN 50 084 642 571
ICAA Annual Report 2003
HIGHLIGHTS
Over the past year, the ICAA’s activities covered a wide range of areas – broadening services to
members, improving standards, promoting the brand and working with industry and regulators.
> Obtained commitment from all Australian Governments for the substantial liability
reforms which we, other professions, and the large accounting firms, have been
campaigning for in response to the crisis in professional indemnity insurance.
> Launch of the CA brand campaign, including advertising and new corporate identity.
> Independent review of the CA Program produced very positive results.
> Landmark member-based campaign to reform tax administration.
> Undertook review of Quality Review Program to ensure a best practice program against
international standards.
> Lobbied the Federal Government intensively for due recognition of the role and skills of
accountants in the Financial Services Reform Act.
> Conducted our first corporate reporting forum with CPAA, attracting local and
international leaders from Parliament, the profession, regulators and business.
> The Prime Minister announced at an ICAA/SIA lunch his Government’s commitment to
principles-based, light touch reform, which is to be reflected in CLERP 9.
> As part of our response to diminished confidence in business and the profession, acted
on the report of our HIH taskforce to review the HIH Royal Commission report.
> CA Masters project continued, with 35 exemptions negotiated with universities for CA
Program graduates.
> Released Scope of Audit report, looking at the role of auditors and corporate governance
issues, and providing thought leadership for this critical segment of the profession.
> Completed the first Quality Review of all members with a Certificate of Public Practice.
> Rolled out a new CPE strategy and products in each state and increased numbers and
satisfaction at Business Forums.
> Inspector-General of Taxation approved and appointed by Government.
> ICAA participated on ASX Corporate Governance Council and contributed to the drafting
of its guidelines.
> ICAA restructured its management to reflect changes in the profession and business, and
to inject a commercial focus into its operations.
> ICAA celebrated its 75th anniversary.
>1
ORGANISATIONAL PROFILE
As the role of the modern CA broadens
and develops, so too does the role of the
ICAA. Today we focus on leadership, on
protecting the standards and reputation
of the profession, and on influencing the
policies and regulations that affect our
industry. This year, as we celebrate our
75th anniversary, the ICAA is a much
more proactive body, working to maintain
the reputation of our members and to
increase their profile in the community.
What is the ICAA?
The Institute of Chartered Accountants in
Australia is the professional body that
trains, governs and supports Australia’s
CAs. It is responsible for setting and
upholding the high professional, ethical
and technical standards that give the CA
designation its value.
The ICAA also protects and represents
members’ interests in dealing with
governments, business, academia, the
media and other professional organisations.
CAs’ roles are diversifying, and while
40% of today’s Chartered Accountants
work in accounting practices, 39% have
moved away from the traditional sphere
and work in the corporate sector as
advisers to all kinds of business.
CAs are also getting younger. 56% are 40
or under – and 22% are under 30.
More women are choosing a career in
chartered accounting – nearly 25% of
practising CAs are women. But this is set
to grow: currently 50% of CA candidates
are women.
Our key functions
> To educate new CAs via the CA Program.
> To maintain professional standards
through the provision of Continuing
Professional Education and by enforcing
the Code of Professional Conduct and
other Institute standards.
> To work with State and Federal
governments and other legislative
and regulatory bodies to protect
members’ interests and the integrity of
our profession.
> To provide a wide range of support
services to our members – including
the promotion of the CA designation,
technical, ethical and professional
advice, and constant communication
on industry issues.
Governance
The ICAA is governed by members
through various committees and
Regional Councils that provide advice to
a Board of Directors and provide a link
between the Board and members.
Directors of the Board and Regional
Councils are elected for a three-year term,
while the President and Deputy President
are elected annually by the Board.
Core purpose of the ICAA
To enhance and promote the reputation
and role of Chartered Accountants –
which, in turn, will benefit the business
community and the public interest.
Our members
Total membership
To become a member of the ICAA,
candidates usually complete an ICAAapproved tertiary degree. They then
undertake the CA Program while working
for three years in an accredited
organisation where they are mentored by a
CA. When they complete the CA Program
they can apply for membership, and,
once accepted, can use the CA designation.
ICAA members work in every state of
Australia and overseas (particularly in Asia)
and deploy their skills in public practice,
business, academia and government.
>2
39,100
Total membership
39,100
Members in practice
15,977
Male CAs
22,810
Members in commerce
15,782
Female CAs
10,244
7,341
Male FCAs
5,749
Other
Female FCAs
Other
244
53
ICAA Annual Report 2003
CHIEF EXECUTIVE OFFICER
BOARD SECRETARIAT
CHIEF OPERATING OFFICER
Standards
&
Public Affairs
Division*
CA Program
&
Admissions
Division
CPE
Division
Marketing
Division
Member
Relations
Division
Support
Services
Division
Regional
Offices
Professional
Conduct
CA Program
Development
CPE Product
Development
Marketing
&
Communications
Member
& Client
Support
(CSC)
Finance
Queensland
Professional
Standards
CA Program
Delivery
CPE
Product
Delivery
Corporate
Brand
Member
Services
NSW / ACT
Human
Resources
South
Australia &
Northern
Territory
Business
&
Practice
Support
Qualifications
&
Experience
Sponsorship
Market
Research
Information
& Research
Services
Administration
Victoria
&
Tasmania
Information
Technology
Western
Australia
Taxation
Quality
Review
Technical
Standards
Government
Relations
* From September 2003, the Standards and Public Affairs Division will report directly to the Chief Executive Officer.
>3
THE ICAA BOARD
The ICAA is governed by a board of directors consisting of 11 directors, 10 being elected by members in each respective region and
one by members on the overseas register. Directors are elected for a three-year term, with one-third of the positions being up for
election each year. The President and Deputy President are elected annually by the board.
The ICAA board has always been responsible for formulating the strategic direction of the Institute and approving key policies.
One of its primary roles is also to assess and represent the needs of members to management, and to ensure that the Institute is
managed in members’ best interests. The board works in partnership with management to add value and provide input into key
ICAA activities. Keeping a finger on the professional pulse, the board also ensures that risk is appropriately managed, that the
financial position of the ICAA is secure, and the future of the profession is paramount in the decision-making process.
Board members
David Smith FCA
ICAA President
Director
Smithink Pty Ltd
Sydney
Neil Faulkner FCA
Partner
KPMG
Melbourne
Garry Waldron FCA
ICAA Deputy President
Chief Financial Officer
GE Capital Fleet Services
Melbourne
Lusan Hung FCA
Director
Higuma Consulting Limited
Hong Kong
Lance Balcombe FCA
General Manager – Corporate
Hydro Tasmania
Hobart
Derek Parkin FCA
Adjunct Professor of Accounting
University of Notre Dame, Australia
Perth
Stuart Black FCA
Partner
Chapman & Eastway
Sydney
Darryl Somerville FCA
Managing Partner
PricewaterhouseCoopers
Brisbane
Michael Burgess FCA
Adjunct Professor, School of Business
University of Adelaide
Adelaide
Donald Walter FCA
Partner
Walter and Turnbull
Canberra
Anna Carrabs FCA
Director
William Buck
Sydney
>4
ICCA Annual Report 2003
OUR STRATEGIC PLAN
Every three years the ICAA develops a revised strategic plan –
the foundation for the work of each division in the Institute. As
part of this process we draw together information from a
number of sources including other professional bodies,
business advisers, members in practice and in commerce, staff,
regional councillors and board members.
Like any good strategic plan, the ICAA’s provides a framework
that enables the organisation to set priorities, allocate resources
and test new initiatives. It is a crucial management tool because
it provides a clear link between the Institute’s long-term goals
and its day-to-day activities. This gives staff a clear
understanding of their role within the Institute, as well as an
understanding of its future direction.
Strategic imperatives (the overarching themes that drive the
work of the ICAA)
To deliver these benefits and enhance our differentiation, the
ICAA will take a leadership position in rebuilding public
confidence in the financial markets and their institutions by
focusing on the following strategic imperatives:
Standards and integrity – continuously ‘lifting the bar’ to
ensure that members comply with the highest educational,
professional and ethical standards.
Leadership – serving as a financial conscience for the business
community and ensuring appropriate decisions are made and
reflected in legislation.
Core purpose of the ICAA
Image – restoring the image of the accounting profession
through our focus on standards, integrity and leadership and
reflecting this through a strong CA brand.
To enhance and promote the reputation and role of Chartered
Accountants which, in turn, will benefit the business
community and the public interest.
These strategic imperatives will be complemented by an
ongoing focus on education, relationship building, membership
growth and satisfaction, and effective governance.
Stakeholder benefits (benefits that the ICAA will provide to
members and other stakeholders)
Key focus
ICAA Strategic Plan 2003-2005
1. A competitive advantage to members and an assurance to
stakeholders by the maintenance of high standards, skills
and ethics.
2. A sustainable reputation for CAs recognised through a
premium, internationally respected CA designation.
3. Leading the debate on issues affecting the profession and
influencing regulators and policy makers through
representation and advocacy.
4. Building member competency which provides skilled
professionals for employers and flexible career paths
for members.
5. A professional community and leadership for members.
Differentiators (what makes the ICAA stand out from the rest)
1. Tough on compliance with standards
2. Recognition of elite positioning of brand
3. Thought leadership
4. Leading influence over decision makers
1. Ongoing review, enforcement and continuous improvement
of standards.
2. Ongoing focus on building the CA brand and reputation
management.
3. Ensuring influence over key decision makers by strong focus
on advocacy.
Ongoing focus
4. Providing the highest standard of professional education
by continuous improvement of our entry and ongoing
education programs.
5. Improving our relationship with key stakeholders nationally
and internationally – members, large firms and corporates,
business, employers, government, regulators and strategic
allies to ensure they recognise the value provided by CAs and
the ICAA.
6. Enhancing public perception of our standards via promotion
and branding.
6. A world class CA Program
7. Ensuring ongoing membership growth to sustain the ICAA
and satisfy the demand for highly competent business
professionals.
7. International recognition
8. Improving member satisfaction with the ICAA.
8. Ability to create sustainable networks and partnership
9. Effective and focused governance.
9. Valued advisers for large corporates.
10. An efficient and effective organisation.
5. Commitment to ongoing competency of members
>5
President’s report
MANAGING EXPECTATIONS
A controversial decision to fund a major advertising campaign
highlights important issues about how the Institute is managed –
and how it meets members’ expectations. Institute President
David Smith FCA explains…
Even a quick glance through this year’s
report reveals the range of issues the ICAA
dealt with. It was a challenging year.
It was also the year where, for the first
time in 75 years, the Institute launched a
major advertising campaign. I was lucky
enough not only to be the director who
presided over its implementation, but also
as president to travel the countryside
launching the brand to members. General
manager of marketing, Marie Campion’s
report on page 18 looks at the campaign
in more detail. I’d like to focus on how
the board took the decision.
Advertising is not cheap. The board
deliberated at length on the brand
project and was very careful in how it
implemented the campaign. We relied
heavily on the advice and expertise of
external consultants to make sure our
strategy and approach were right – and
right over time. We’ve taken a long-term
view and put funding in place for five
years. We’ve built specific targets into
each year of the campaign, and plan to
annually market test its performance to
make sure it is achieving its objectives –
and continues to do so.
Different points of view
The advertising campaign reveals a lot
about how the Institute is managed.
This was a very significant step and we
know that not all members supported it.
We also know that not all our members
>6
ICAA Annual Report 2003
think alike. Most importantly, the results
of the previous year’s member satisfaction
survey (MSS) made it clear that
protecting and promoting the CA brand
was a priority for a majority of members.
So, the board decided to act on an issue
that had been on the agenda for a long
time, and put the brand campaign in
play. Over the next few years, members
will judge us on the success of that
decision – as they should. Happily, the
first year of the campaign has received
positive feedback – but there are four
more years to go.
MSS and management
The MSS is an increasingly important
part of how we manage the Institute
and that’s why we now run these
comprehensive surveys every year.
It was the MSS results that drove the
branding decisions, as they did our
decision to refocus our advocacy
activities by having our government
affairs manager, Kristen Brown, work
in Canberra.
MSS results also led to changes in our
communications approach – including a
fresh look for CA Charter and more email
communication. My view is that the
changes we made in both those areas
are working well. Our research tells us
that they are popular with members.
By carefully analysing the yearly MSS
results, the board and management can
better understand members’ concerns.
At the moment, MSS figures tell us CPE
is still an issue for some members. That’s
why it continues to receive our attention.
Encouragingly, the MSS approval
numbers for CPE are significantly higher
for those members who’ve recently
attended CPE training.
The right balance
As our membership numbers continue to
grow, we rely more and more on this
MSS research to read the needs and
attitudes of CAs. We also use the
information we gather during our
member contact visits organised through
the regional councils. These provide a
crucial link between members and the
board. However, with over 39,000
members – many of them overseas – it’s
much harder for the board to take the
temperature of members in person.
As with any organisation there’s an ageold dilemma – how do we balance
short-term imperatives with the longterm strategies we believe are vital to the
sustainability of the profession?
In many ways, the ICAA is like a public
company in that it is answerable to its
members on an annual basis and must
deliver on immediate priorities and
projects. CAs also expect their board to
sustain the long-term growth of the
organisation. Getting that balance right
has always been important to the ICAA
boards I have been involved with. I have
no doubt it will be the same in the future.
I am passionate about our profession, and
believe it offers great opportunities to those
who are willing to innovate, be bold and
think differently.
The future
I am passionate about our profession,
and believe it offers great opportunities
to those who are willing to innovate, be
bold and think differently.
This profession forms part of the
cornerstone of the regulatory framework,
and its members provide the
professional standards and technical
excellence that business and the
community expect and require.
Our challenge is this: to ensure that we
maintain this position in the long-term
while at the same time keep up with the
changes that are taking place at every
level of the profession. And to make sure
that we can develop and offer the kind of
professional services and products that
will meet the needs of the next – and
very different – generation.
Thanks
I have worked closely with ICAA CEO
Stephen Harrison this year and am grateful
to him and his staff for their hard work
and support. I would also like to thank
Marie Campion and the branding team.
They worked tirelessly in the early
months of this year to make sure that
they delivered a reinvigorated brand that
speaks to all CAs and that the launch went
off without a hitch.
My thanks go to deputy Garry Waldron
and other board members who supported
me, and have made my year as president
a memorable and enjoyable one.
David Smith
ICAA President
>7
Report to members by the CEO and COO
MANAGEMENT REPORT
During the past year the ICAA once again dealt with a range of
challenges from inside and out. The issues most pressing at
home included an internal restructure designed to improve
services and accountability of the Institute to its members.
Add to that the much-anticipated independent review of the
CA Program, and the CA brand launch, and it has turned out to
be another very important year.
Regulation and industry
Externally we continued to deal with issues brought about by
changes in business and regulation: the release of the HIH
Royal Commission report, the formation of the ASX Corporate
Governance Council and its guidelines, plus the ongoing
development of CLERP 9 and preparation for the adoption of
international accounting standards by 2005.
Our ongoing lobbying work in the area of tax administration
was recognised this year with the appointment of a First
Assistant Commissioner dedicated to improving the lot of tax
practitioners, followed by the new post of Inspector-General of
Taxation being written into law. These appointments have been
accompanied by a range of ATO systems improvements.
Our advocacy efforts also bore fruit this year with regard to the
professional indemnity crisis. By working closely with other
professional bodies and the Big Four accounting firms, we were
able to develop a constructive approach to the problem and
convince the government of the merits of that solution. We
believe a new PI system should be in place by January 2004.
Standards
This year, the Prime Minister accepted an invitation to speak at
a joint ICAA/Securities Institute of Australia luncheon where he
announced his commitmtent to principles-based, light-touch
legislation in the area of corporate law. This is reflected in
CLERP 9 proposals, into which the ICAA had significant input.
We also continued to prepare for the introduction of
international accounting standards in 2005 – work that will
become even more important in the coming year.
>8
ICCA Annual Report 2003
Working for members
Internally, our newly created Member Relations division
launched a new customer strategy – an integrated approach to
meeting our members’ needs which will help guide our activities
over the next few years.
The CPE division also finalised new staff positions and a new
structure designed to provide an improved product to
members. Attendance numbers and survey satisfaction figures
at the recent ICAA Business Forums indicate that these
changes are rapidly having a positive effect and we will
continue to build on this work.
CA Program and branding
Research into the results of the ‘CA. Employ Our Thinking’
advertising campaign tell us that more than 70% of members
believe it is achieving its objectives – to raise the profile of the
CA brand. At the same time, an independent review of the
CA Program produced some very good results, confirming the
relevance of the program and the direction we want to take it
over the next few years.
Member satisfaction survey
We received the results of the latest member satisfaction
survey (MSS) just before this report went to print, showing
some valuable results across a range of areas. While overall
satisfaction declined, satisfaction with virtually all services
provided to members increased very significantly. We will
continue to work to provide value to members and increase
your satisfaction with our work.
Your Institute
We have refreshed this report to provide more information on
the work of the ICAA and to reflect the roles played by the key
people who carry out that work. In this report you will meet
some of the senior staff – our general and regional managers –
who are responsible for designing and delivering services to
you, our members.
Elaine Shreeve
ICAA COO
Stephen Harrison, AO
ICAA CEO FAICD
>9
Standards and Public Affairs
RAISING THE BAR
After a couple of changes at the helm, Bill Palmer FCA joined
the ICAA as general manager of the Standards and Public
Affairs division in August 2003. While he was not on staff for
this reporting period, he will certainly be a key player at the
Institute for the next 12 months. He is keen to lead his team to
build on recent successes and implement new strategies
for improvement.
Heading up one of the largest divisions in the Institute, his
responsibilities include professional standards, professional
conduct, taxation, technical standards, government relations,
business and practice support and quality review.
Bill spent a large part of his career at PricewaterhouseCoopers,
most recently as principal/partner audit in the Singapore office.
During his time at PwC, Bill’s responsibilities were primarily in
audit and assurance, but he also has experience in insolvency
and business services.
He brings with him a broad and deep knowledge of the
technical and professional areas covered by the ICAA
Standards division and well understands the needs of members.
He will play an active role in enhancing the reputation of CAs,
as well as ensuring that the Institute is effective in its advocacy
and lobbying.
“Coming into this role as a member of the ICAA, I have a strong
interest in, and am passionate about, the CA brand.
This role covers a number of important areas that greatly
influence the way people view the CA brand, such as the
Quality Review Program and professional conduct.
“I am looking forward to overseeing these and other programs
[Bill] will play an active role in
enhancing the reputation of
CAs, as well as ensuring that
the Institute is effective in its
advocacy and lobbying
that help to maintain the high professional and ethical
standards that the public associates with CAs,” he said.
The tax campaign
The other main thrust of Government Affairs work over the past
year was nurturing the introduction of the bill to create
Australia’s inaugural Inspector-General of Taxation. It’s a policy
decision that’s sure to have a direct impact on the work of
thousands of CAs throughout the country.
According to ICAA Tax Counsel, Brian Sheppard, “It is now
independently acknowledged by members, other professional
bodies and an ATO survey, that the ICAA’s tax administration
campaign was the catalyst for the rapid lift in ATO performance
and tax practitioner satisfaction levels. The real manifestation of
this was the appointment of the Inspector-General of Taxation.”
>10
ICAA Annual Report 2003
Protecting the legislative interests of members and their clients is
a key role of the ICAA. The 2002/3 financial year was a crucial one,
with four big advocacy issues looming into view – the PI crisis, the
appointment of a new Inspector-General of Taxation, CLERP9 and FSR.
And that’s not all the ICAA tax team has
been doing this year. According to Brian,
the ICAA is currently represented on
around 50 consultative tax forums,
examining existing or proposed tax
legislation, and ranging from the very
basic administrative issues through to
the design of the new international tax
regime. This includes appearances before
Senate committees, and submissions to
Government calling for legislative solutions
to acknowledged anomalies and inequities
in the current law (a number of which have
now been agreed to by the Government.)
The PI crisis
In recent times, the aftermath of
September 11, the HIH collapse and weak
reinsurance markets have made it difficult
for insurance companies to provide the
PI cover that Chartered Accountants
needed. It was vital that the ICAA take
political advocacy steps to fix the problem.
“We believe that the solution is a
According to government affairs manager
Kristen Brown, “Research showed that our
members were facing renewal premiums
increases of over 1000%. That’s a huge
increase which not only hits CAs but has
an impact on the services they can
provide for their clients.”
“I think what we will find in a year’s time
By working closely with the Big Four and
other major professional bodies, the
ICAA was able to get a clear policy
solution established and presented to
State and Territory Governments and the
Commonwealth.
combination of proportionate liability; the
introduction of professional standards
legislation in all states and amendments
to the Trade Practices Act,” says Kristen.
is that we will have a very good outcome
on PI and that’s due to having a clearly
formulated and strategic lobbying plan.”
On Capital Hill
According to Kristen, the Institute’s
success with these two big issues is
partly the result of a new Government
Affairs plan, approved by the board in
May 2003. With a full-time presence in
Canberra, the Institute can run a
‘grassroots’ strategy – keeping ministers
informed through advocacy alerts and
briefing papers sent to their offices and
staying in constant, face-to-face contact
Professional indemnity (PI)
with politicians and bureaucrats.
The ICAA took a number of steps to help members deal with the hardened PI market:
“The ICAA wants to be seen as one of
> Collecting and collating statistical information and anecdotal evidence from
members to drive government submissions, articles and the PI reform campaign
> Developed extensive PI information for members and distributed the information
via our full range of communication channels
> Met extensively with PI providers to address ICAA regulations, identify the risk
management strategies in operation in CA practices and to improve broker and
underwriter perceptions
> Supported members and firms encountering PI availability problems. Member
contact with the Professional Standards team increased by 120% during 2003.
the key professional associations on Capital
Hill,” says Kristen. ”As an organisation
that vigorously represents CAs, and
more importantly, protects the interests
of our clients, we want to provide quality
analysis of issues so that, over time, the
Institute
becomes
an
adviser
to
politicians on a wide range of issues.
Ultimately, we want policy-makers to ask
what the Institute’s perspective is. That’s
the two-way street we’re looking for.”
>11
Standards and Public Affairs (continued)
Countdown to 2005
Professional standards
This year, the Australian financial reporting
community agreed to adopt international
accounting standards by 2005.
At a time when the accounting profession
was under the spotlight, the ICAA continued
its work to maintain the standards of the
profession in a number of ways.
As a result of this decision, almost all the
45 current Australian standards will be
amended by March 2004, and a number of
new standards will be released.
This represents an enormous commitment
and significant change, and the ICAA
technical standards team has been
developing ways to help members deal
with it. To assist members to prepare for
2005, the Institute undertook the
following tasks:
> Produced a detailed report comparing
the current Australian and international
standards and highlighting likely future
changes to assist members in
implementing their 2005 conversion.
> Provided ongoing practical support
through the Technical Helpline. The
service fielded over 2000 enquiries in
the year to March 31 2003 – a 25% rise
on the previous year. The circulation of
our weekly electronic newsletter
increased 40%.
> Prepared submissions on 14 Australian
and international exposure issues.
Summaries were circulated to members
to encourage feedback.
> Submitted regular ‘Countdown to 2005’
articles and updates to CA Charter.
Other issues
> We continued to monitor developments
such as the government’s CLERP 9
reform proposals and the outcomes of
the HIH Royal Commission. We expect
CLERP 9 to lead to a competency-based
regime for the regulation of auditors
within 12 months.
> We continue to lobby on behalf of
members to ensure the Financial
Services Reform Act does not curtail
their ability to serve their clients.
> A joint standard – APS 11 ‘Statement of
Forensic Accounting Standards’ was
approved by the ICAA and CPA Australia.
This standard addresses issues of
evidence, objectivity and the quality of
written reports. All ICAA members
are now governed by the statement,
which represents best practice and
can be enforced through the ICAA‘s
disciplinary procedures.
> HIH Royal Commission – Prior to the
release of the HIH Royal Commission
report, the ICAA established an
independent taskforce in January to
review the final report and identify any
action it should take in response to the
findings. The taskforce was established
to provide strategic advice to the ICAA
board on issues arising from HIH.
In June the Institute accepted
recommendations made by the HIH
Task Force focusing on discipline of
members, member support and
whistleblowers.
> The ICAA participated on the ASX
Corporate Governance Council and the
development of its guidelines.
> During 2001 and 2002, a consortium
involving the ICAA, Environment
Australia and EPA Victoria funded and
ran four environmental management
case studies.
The resulting report: “Environmental
Management Accounting – An
Introduction and Case Studies” was
launched in February this year by the
Victorian Government’s Environment
Minister, John Thwaites.
Scope of audit
The ICAA released its “Financial Report
Audit: Meeting the Market Expectations”
paper in response to calls to improve
investor confidence and reduce the
expectation gap between the public's
expectation and what an audit actually
involves. The paper presents opportunities
that exist to expand the scope of services
currently being provided by audits as well
as additional areas that could be
undertaken as part of an extended audit.
At a time when the accounting profession was under the
spotlight, the ICAA continued its work to maintain the standards
of the profession in a number of ways.
>12
ICCA Annual Report 2003
Professional conduct
CASES HEARD
State
2002/2003 2001/2002
New South Wales (includes ACT and overseas)
16
14
Queensland
17
5
South Australia
3
2
Tasmania
4
–
Victoria
11
4
Western Australia
Total
3
1
54
26
NATURE OF ALLEGATIONS
2002/2003 2001/2002
Failure to observe proper standard of
professional care, skill and competence
15
8
Criminal conviction
1
1
Guilty of statutory offence bringing discredit
on member, Institute or profession
1
–
Adverse finding in relation to professional or business
16
conduct by court, statutory, regulatory or professional body
5
Breach of charter, by-laws or regulations
(including ethical and professional standards)
10
5
Failure to comply with direction by Institute
(including failure to respond to correspondence)
12
6
Member’s insolvency
8
5
Conduct bringing discredit on member,
Institute or profession
9
4
The ICAA upholds a disciplinary process
whereby complaints are made and
members sanctioned accordingly.
> This year, panels of the Disciplinary
Committee dealt with cases against
54 members or practice entities. In all
but five cases, the allegations were
found to be either wholly or partly
established.
> Seven members lodged appeals which
were subsequently heard by the
Appeal Committee.
> Disciplinary and Appeal Committees
ordered members to pay a total of
$55,650 plus GST towards the
Institute’s costs.
Quality review
SANCTIONS IMPOSED
2002/2003 2001/2002
Exclusion
1
–
Suspension
9
2
Cancellation of Certificate of Public Practice and/or
declared ineligible to hold a Certificate of Public Practice
–
–
Fine
11
4*
Severe reprimand
7
6
Reprimand
21
10
Practice review
3
4
Attending specified CPE
3
–
No sanctions imposed
9
7
The Quality Review Program is
fundamental to the ICAA’s self-regulatory
framework and to ensuring that
members are delivering ethical,
transparent and quality service to their
clients and the public.
The year was an important one for the
Quality Review Program because the
first cycle of reviews was substantially
completed and the second cycle
commenced. As a result, every Australian
practice conducted by a member
holding a full Certificate of Public
Practice has or is being reviewed.
During the year, John Richardson FCA,
conducted a review of the Quality
Review Program. He concluded that the
Quality Review Program was effective
and in line with world best practice. He
recommended some enhancements, and
these have largely been adopted.
* totalling $17,500 ($14,000 in 2001/2002)
>13
CA Program and Admissions
THE REPORT CARD
Continuous assessment is a key feature of the ICAA’s intensive
two-year professional training program – the CA Program. The
latest techniques and technology ensure students receive
constant feedback. “The better they understand where they
need to improve, the sooner they can start finetuning their
performance” says Gillian Cappelletto CA, the ICAA’s general
manager for the CA Program and Admissions.
In March 2003, Gillian and the ICAA National Education
Committee received their own report card – the results of
comprehensive independent review of the new CA Program.
The CA Program replaced the long-running PY (Professional
Year Programme) from November 2000.
The 21st century accountant
Gillian and her team began working on the CA Program as far
back as 1997, even though the existing PY was still popular and
successful.
“Research told us that CAs needed a broader business focus,”
says Gillian. “The business community emphasised how
important it was that we equipped young accountants to learn
more effectively, and to deal with issues such as technology,
globalisation, greater accountability and an increasingly
competitive business environment. It was vital that our
education instil those competencies if we were to maintain our
standards and the international recognition our members prize
so much.”
The CA Program equips
young graduates for careers
in accounting and business.
It is the lifeblood of the
profession and the guardian
of its future.
The CA Program emphasises ‘active learning’ processes,
including presentations, discussions and group work to
develop these skills. Years of research prove that this more
active approach is more successful at instilling knowledge.
Tried – then tested
Today, the results are coming in. “In September 2002, we saw
the exam results from the first cohort of students who had
completed all five modules of the new CA Program,” says
Gillian. “That was a landmark because they were the first CAs
to earn their Graduate Diploma. Their graduation also triggered
the launch of the Tertiary Entry, Accreditation and CA Program
(TEACAP) review, which we completed in March 2003.”
The review was headed by Professor David Emanuel – an
accounting academic with the University of Auckland and a
consultant to Ernst & Young. Professor Emanuel was supported
by the independent research firm, The Leading Edge, and by
Professor Steven Cahan of Massey University in New Zealand.
>14
ICAA Annual Report 2003
The CA Program is a professionally designed course that aims to
instil the skills, knowledge and attitudes young accountants need in
the 21st century. It succeeds admirably in achieving those goals.
Professor David Emanuel
The review looked at university accreditation and assessed the
CA Program’s entry requirements and the quality of the
program itself. The CA Program scored an exceptional result in
achieving its most important goals – meeting the needs of
employers and students.
“We had 95% of employers say the program was either very
good, good or average at meeting their business needs,”
explains Gillian. “Just as importantly, 90% of candidates said it
was very good, good or average at meeting their career needs.”
Further education
The exceptional result from the TEACAP review has freed the
ICAA’s new CA Program and Admissions Committee (CAPAC)
to expand its focus.
exemptions on their behalf, we’re making it easier, faster and
cheaper for them.”
CAPAC is also working on making the CA Program more
accessible – without compromising standards. Professor
Emanuel’s report suggested reducing the required subject
areas students need to cover at university before they can gain
entry to the CA Program.
“The current conversion courses are too long and too
expensive, “says Gillian. “We’re giving the universities a chance
to cut those conversion courses so that we can fast-track
people from non-accounting degrees. We believe this will bring
more diversity into the accounting profession and develop CAs
with different thinking styles – which can only be a benefit in
the long run.”
“Professor Emanuel strongly endorsed the program, “says
Gillian. “He made no suggestions for major change but made
many constructive comments about continuous improvement.
It means we can focus on the entry requirements for the CA
Program and on weaving the CA Program even more closely
into the Australian education system.”
Part of that process is the negotiation of exemptions for CA
Program graduates. Exemptions negotiated by the ICAA mean
program graduates can receive exemptions for more than 35
Masters programs. They can, for example, halve the time and
cost involved in earning a Masters of Applied Taxation through
the University of NSW.
Technical rigour
“The CA Program focuses on broad business skills and trains
accountants in the workplace,” says Gillian. “However, a large
number of our candidates are saying that once they finish the
program they want to do a Masters, often because they want
to do more work on a technical specialty. By negotiating
The CA Program owns an enviable
position of high recognition in a
prestigious marketplace.
The Leading Edge
>15
Continuing Professional Education
THE EDUCATION MARKET
The Institute’s Continuing
Professional Education (CPE)
division has always provided a
key service to members. Yet
today the division faces more
competition than ever before.
How is it meeting the challenge?
In August 2003, the ICAA’s board formally recognised the
threats and challenges faced by its CPE area and authorised a
restructure of its CPE activities – establishing CPE as a separate
competitive division.
Over the past few years, the market for professional accounting
training has boomed. A range of providers has flooded into the
field, all competing with the Institute for market share.
“It’s no field of dreams,” says CPE general manager Stephen
O’Brien. “We don’t have a captive audience because Institute
members can get their education needs from us, from CPA,
from the Tax Institute, from NTAA, NIA and the universities.
We can’t be complacent and think – “if we run it, they will come”.
Within and without
The recent restructure also recognised that not all the
challenges facing the CPE area came from external
competitors. A regional approach that served members well in
the past was becoming rusty.
“Each state would develop its own products,” says Stephen.
“Sometimes that meant better customisation – but you did not
get a consistent experience of CPE. Quality varied from state to
state and course to course.”
According to Stephen, the CPE division had to confront some
other key issues before coming up with the new business
>16
ICAA Annual Report 2003
model. One of those issues was the diversity of the Institute’s
customer base.
“You’ve got partners,” he explains. “You’ve got graduates,
CFOs, CEOs, GMs. People in sales and marketing, production
engineers, more and more people in financial services,
actuaries. It is impossible to be everything to everybody.”
A focus on strengths
The solution – to match the Institute’s core strengths to the
demands of its members. “If you don’t focus where you’ve got
a competitive advantage, then you are never going to hit the
quality bar,” says Stephen.
Extensive member research led the CPE division to focus on
seven core areas – taxation, accounting and assurance,
government, financial planning, business management,
practice management and professional development.
A product manager has been appointed to take care of each
area – to drive quality, find the relevant experts, and build a
consistent approach to the delivery of the CPE courses.
“Now,” says Stephen, “we have a product development
methodology and a product delivery methodology. What we do
in Victoria is exactly what we do in Queensland. We have local
flavour and local expertise but the overall quality is built in.
Service is our focus!”
21st century CPE
CPE highlights
> Convened national member advisory panel to analyse
member and market needs in core education areas
> Developed and launched new courses in Business
Management and Development, and Practice
Management Skills
> Implemented strategic events management system to
improve quality of CPE events
> Launched national online booking and payment service
for CPE events.
> Increased revenue of national Business Forums.
Attendee feedback rates averaged over 80%.
New courses
During the 2003/04 financial year, CPE will respond to
member demand by rolling out a range of new courses
relevant to members in commerce and public practice:
> IFRS: think global, act local
> Successful business planning
> Strategic excellence in practice management
> Innovative national tax series.
Member research has driven much of the restructure’s focus
on quality, relevance and value for money. It has also broadened
the scope of the Institute’s CPE offerings.
“All the member surveys we get back tell us that members also
want help in areas such as practice management, business
management and professional development,” says Stephen.
“We are reacting to member demand and pulling together an
exceptional bunch of experts in these fields, both from within
the Institute and externally. In six to 12 months, members will
see these courses as core parts of our service.”
While the restructure is still bedding down, the early results are
encouraging. Attendance at the Institute’s annual business
forums hit new attendance records this year. A focus on tighter
event management and improved content resulted in attendee
feedback satisfaction rates of 80%. According to Stephen, this
is only the beginning – “We’ve only really touched the surface
in what we can do to give our members a better learning
experience,” he says.
“We’ve only really touched the
surface in what we can do to
give a members a better learning
experience.”
>17
Marketing
BADGE OF HONOUR
With a 75-year history as one of Australia’s pre-eminent
professional organisations, the move to launch a major
advertising campaign in 2002 was a controversial one. Some
members (and some clients) thought advertising was ‘beneath’
such an established and professional organisation. Others argued
that there were better things to spend members’ money on.
The ICAA board took note of these objections. In the end,
though, it was the members’ own convictions that saw the
campaign rolled out.
“In every Member Satisfaction Survey, and in the branding
research we did a few years ago, members were saying that
protecting our brand, their brand, was one of the top priorities,”
Marie Campion explains.
According to many members the increasingly crowded
marketplace of financial professionals and the efforts of other
professional bodies had ‘muddied the waters’ for the ICAA.
“Our members were saying that the ICAA had to re-establish
the CA brand”, says Marie. “Clients didn’t know what we do
and what makes us different. General awareness of the CA
brand was very low.”
No half measures
The decision to launch a CA advertising campaign was approved
by the ICAA board in May 2002. At that meeting, the board
resolved to commit significant resources to a sophisticated and
wide-ranging campaign.
Putting a large slice of the
budget and big chunk of
brainpower behind a full-scale
advertising campaign might
look like a risk. Yet according
to Marie Campion, general
manager of marketing, the
risk lay in not advertising.
>18
“In our 75-year history, this is the first time we’ve put a concerted
effort into the CA brand,” says Marie. “This campaign meant reengineering everything we do to make sure we had a truly
integrated campaign. We didn’t just develop TV and press
advertising – we reviewed and refreshed the website,
redesigned our publications, and wove our key brand messages
into everything we do.”
Process and execution
Putting together a modern brand campaign is a complex
business. The ICAA had to clarify not only what it stood for, ‘its
brand essence’, but how it wanted to be seen in the future.
The first step in this process involved the members themselves.
“We have CAs in business, in academia and in practice,” Marie
explains. “We said, ‘Let’s get a bunch of them in a room and
get them to explain the essence of what a CA is’”.
ICAA Annual Report 2003
It reflects members’understanding of just how important the brand is
– most of them see their membership as a badge of honour
The next step was to externalise that information. According to
Marie that meant – “turning the essence of the CA designation
into something that was understandable and desirable to
external audiences.”
That process involved tendering for a branding expert that
specialises in capturing the values, character and flavour of a
brand and working out how to flesh it out – to turn it into
something customers can understand.
“We then ran a tender process designed to find agencies that
were branding specialists,“ says Marie. “We wanted someone
who would understand what we were trying to achieve and had
the intellectual firepower to do the job. The company we came
up with, LKS, has an internationally recognised trademarking
process it takes people through. LKS instantly had an
understanding of how we should be saying things.”
Test and test again
Like any sophisticated campaign, the ‘CA. Employ our Thinking’
campaign has a range of benchmarks it must meet over its fiveyear life. The first of those is to raise awareness in key markets
– big business, undergraduates, potential clients.
Marie and her marketing team will be keeping a close eye on
results from tracking measures achieved in the first year. Those
results will be used to finetune the style, placement and
frequency of the ICAA’s advertising.
Key brand message
“Through a combination of precise, insightful and
ethical thinking, CAs are without equal in powering
the right business decisions. No-one is better
qualified than a CA to guide your business in the
right direction.”
This underlying and fundamental message has been
introduced into all our promotional materials.
CA. Employ our thinking
Every good advertising campaign has a tag line –
a memorable line that encapsulates the message in a
short grab, and sticks in the minds of those who hear it
long after the ad is gone. A good tag line will come to
mind immediately and be directly associated with its
product or service.
In the case of CAs we wanted to be able to deliver a
strong message with two key elements: firstly the high
quality of training that produces precise, insightful and
ethical thinking in our CAs; and secondly a call to action
for clients, potential clients and employers to engage the
services of a CA.
In the meantime, Marie is encouraged by the results of recent
member satisfaction survey data that shows 72% approval for
the Institute’s efforts in promoting the brand.
“Given where we are with the campaign, I think that’s a very
good score,” says Marie. “It reflects members’ understanding
of just how important the brand is – most of them see their
membership as a badge of honour and if there is no value in
the badge of honour why would they continue their
membership?”
>19
Member Relations
QUESTIONS AND ANSWERS
The Member Relations team
is responsible for delivering
the products and services
that help ICAA members
excel in their profession.
General manager David
Stokes CA took a long hard
look at how to do it…
As the general manager of a newly-formed division, David
Stokes’ job is to ask the tough questions – “How does the ICAA
relate to its members? What promises can and do we make?
What can members and stakeholders expect?” A background
in the Big Four in advisory services and managementconsulting, and a 17-year membership of the ICAA gives him
the expertise and the experience to answer those questions.
“My goal is member satisfaction,” he says. “I’ve got to ensure
members get value from the ICAA. You can’t sit in this role
without understanding what’s in members’ hearts and minds.”
Questions of Strategy
At the core of Member Relations’ activities is the development
of a customer strategy. The strategy will redefine the
relationship between the Institute and its members. According
to David, the benefits of the new strategy include:
> Increased member satisfaction
> Membership growth
> Greater member retention
> Better products and services
> Increased sales.
Pillars of wisdom
In practice, the strategy is based around four pillars. “What is
our value proposition?” says David. In other words, “What can,
and do we bring to our members? How can we increase the
value they receive?”
The ICAA’s traditional roles – CA training, Continuing
Professional Education – are the core of the ICAA service to its
members. Further up the ladder of value are services such as
advocacy work with government.
According to David, the next step is to add a further layer of
value-added services. “We need to understand our core
member markets,” David says, “then tailor our services until
members look to us as a partner.”
The success of this approach is already evident in CPE. “They
talked to potential customers,” says David, “and instead of
saying – ‘here’s our CPE offering’ they said ‘What do you
want?’ and then set out to deliver services that met the unique
needs of different groups of members.”
>20
ICAA Annual Report 2003
Piece by piece
By identifying key segments within the
membership base, the ICAA can deploy
its resources where they are most cost
effective. For example, a focus on tailoring
services for the Big Four accounting
firms (which account for 40% of the CA
Program intake) and to commerce (where
39% of CAs work) makes obvious sense.
Once you’ve segmented your client
base, the next step is to understand their
needs and expectations, and then
develop products and services that meet
those segment needs. “We must build a
process for capturing innovative ideas, a
methodology for developing them and a
delivery process for putting these
services to market in a co-ordinated and
effective fashion,” David says.
“We start at the big end of town and
work out – but we make sure we get the
process right on the way through,” David
insists. “It’s a sensible, cost-effective
approach because the benefits of more
tailored CPE, for example, eventually
cascade across the entire member base
– both in terms of quality educational
material and by increasing the brand
value for all CAs.”
Member Relations – key responsibilities
> Build and maintain key national relationships with major customers, including
the Big Four, the top 20 practice firms and large corporations, and a focused
approach to small-to-medium enterprises
> To ensure members, candidates, students, customers and the general public
receive the highest quality service from the ICAA
> Manage the ICAA’s councils and board committees in NSW and the ACT
> Manage the information and research service – an extensive library of local and
international resources covering business and accounting issues. During the
2002/03 financial year, members used this service approximately 3,500 times
per month.
Member & client support
The Member & Client Support team was established in December 2002
> The Customer Service team of five is the national contact point for email and
telephone enquiries and provides face-to-face service in Sydney
> The CRM team maintains the ICAA’s customer relationship management
database. By providing in-depth information on usage of the ICAA’s services,
the CRM database is a crucial tool in developing better services for members.
Member contact
> The Member Relations division develops member contact events in NSW and
the ACT. During 2003, the topics raised most frequently at these events were, in
order of importance: branding, CPE, taxation issues and the PI insurance crisis.
It’s putting together those systems,
processes and people that will occupy
David Stokes and his team over the next
year. How will he know if the customer
strategy has worked?
David answers – “I will be convinced it’s
working when I see my account managers
building strong relationships with the Big
Four, corporate CFOs and other key
stakeholders. When I can see new
products and services being delivered,
and when the ICAA is considered an
essential business partner. When our
members tell us consistently that we are
providing innovative and relevant services.
That’s when I will be convinced.”
“We start at the big end of town and work
out – but we make sure we get the process
right on the way through”
>21
Support Services
THE REGIONS
Regional managers
The ICAA represents members throughout Australia and an
important part of its work is keeping in touch with its members
and stakeholders in the regions. To facilitate this, a team of
senior managers are involved in all aspects of Institute
business including setting our strategic direction both
nationally and regionally.
The regional offices are the delivery hubs of the ICAA. They are
responsible for delivering CPE, coordinating the CA Program
and maintaining overall contact and relationships with
members and stakeholders. The regional team has a range of
experience in business and the profession – two of them are
CAs – and they also have the unique skills that come from living
and working in a particular area.
New South Wales & ACT
> Successful Prime Minister’s luncheon in August 2002 jointly hosted with the SIA.
> Successful CA Business Thinking luncheon with Brett Godfrey as speaker on branding to
coincide with the launch of the Institute’s Brand strategy.
> Focused NSW Council member contact program and councillors’ commitment that drove a
consistent ICAA theme across all segments of the membership in NSW.
> Introduction of in-house presentations to large corporates by the CABS councillors with the
objective of building awareness of the relevance of the Institute to key influencers, members and
CA candidates within these organisations. First round – Commonwealth and Macquarie Banks.
> Introduction of the ACT Council member contact program in 2003 with favourable feedback
from members.
Pamela Lee
Manager, Member Services
> 119% increase in initial enrolments in the CA Program in the ACT.
Queensland
> Promotion of the CA brand was incorporated into Business Forum and Winter Tax Schools.
> In-house brand presentations delivered to firms in South East Queensland and to tertiary and
MBA students at the University of Queensland.
> The regional manager and regional chair travelled the southern parts of Queensland in April
to obtain members’ views on the PI crisis.
> The regional manager and state commissioner for ASIC hosted roadshows on investor and
creditor protection and to alert the public to fraudsters.
> Increased the participation rate of members under 35 by revitalising that network through a
series of young professional sporting and social events.
Simon Grant CA
Regional Manager
>22
> Ran first knowledge-sharing session for candidates.
> Ernst & Young and PricewaterhouseCoopers hosted regional council meetings during the year.
ICAA Annual Report 2003
South Australia & Northern Territory
> Ten CAs and the regional manager attended the SA Government’s Economic Development
Summit in April 2003.
> Renovations of the SA/NT office were completed.
> Very strong PR activity throughout the whole year with one project getting front page
coverage in The Advertiser.
> Outstanding enrolments in the CA Program, achieving 36% above budget which is 15%
above the national average increase.
> Record numbers of university students and employers involved across all activities in the
careers marketing program. Up 25% on last year.
Mark Jones
Regional Manager
> Best ever bottom line result with the 2003 CA Business Forum held in May.
> SA/NT members have the highest satisfaction rating across nearly all measures.
Victoria & Tasmania
> Lunch for 250 members and guests with the Commissioner of Taxation, Michael Carmody.
> The Hon Geoff Hilton MLC (Labor) and a Chartered Accountant was given a detailed briefing
on the PI project and he raised the issue as a matter of urgency in the Victorian Parliament.
> The Victorian Leader of the Opposition, Mr Robert Doyle MP, was briefed on a range of State
issues affecting members, including PI.
> Councillors and the regional manager met individually with over 30 Members of Parliament
in their electorate offices to outline the case for Professional Standards legislation.
> The AFL, Not for Profit, and Local Government Benchmark reports were released.
> Councillors met with the Victorian Auditor-General.
Michael Nazzari
Regional Manager
> Over 500 young members and visitors participated in the football and netball competitions.
> The full transition of the Tasmanian office completed.
> Six-monthly standing meetings with the Tasmanian Deputy Premier and Treasurer now set.
> Panels have been re-formulated for CPE, Young Professionals and Career Marketing and CAs
in Business to revitalise membership activities.
Western Australia
> Introduction of the sharing knowledge series.
> CA Celebration – an event held at the Perth Mint for the presentation of the inaugural Grad
Dip (ICAA) to WA candidates. 83% of eligible recipients attended – (125 CAAs and members)
> Four sporting carnivals were held this year. 18 teams participated in indoor soccer; 11 in
Australian rules football; 24 in netball; and 14 in cricket.
> Two members celebrated their 70th year as ICAA members. Sir Charles Court and John
Murdoch were presented with commemorative gifts.
> Business Breakfast Series – Rick Allert, chairman Coles Myer (190 guests) and Michael
Hawker CEO Insurance Australia (over 100 guests).
Con Abbott FCA
Regional Manager
> Regional Council has implemented external meetings. Meeting venues included Austal
Ships, BDO, Bentleys MRI, Ernst & Young, KPMG, Phillips Fox, RSM Bird Cameron.
> CA Local News has seen a marked improvement in contact with new columns including
member interviews, State taxes series and the Corporate Governance series.
>23
Support Services (continued)
BEHIND THE SCENES
The Institute’s Support Services area incorporates four
departments that are crucial to any modern business –
information technology, human resources, finance and
procurement. They’re the areas that can bring down a business
when they don’t work – but don’t get much of the spotlight
when things go well.
According to Barry Morris FCA, general manager of Support
Services and a 25-year Institute member, 2002/3 was one of
those years where the chance to make incremental
improvements were taken.
Significant improvements in online billing and enrolment systems
made it easier for members to enrol for training and pay
subscriptions. They also made organising the CA Program and
CPE sessions easier and cut the Institute’s administration costs.
Much of the year was taken up in bedding down the
organisational restructure. The HR division was instrumental in
putting in place the people side of the changes and the new
team is now in place.
Costs and benefits
The other key focus of the restructure was the bottom line.
“One of the key drivers for the restructure was to put the
Institute on a more commercial footing,” Barry says. “We now
have a focus on areas where we can be commercially
competitive, but at the same time we’re here to make sure the
Institute is driven for the benefit of members and not to make
a dollar out of them.”
One way of saving members’ funds is a focus on rigorous
procurement practices. “We are a very frugal organisation,”
says Barry. “We try to ensure we get best pricing for everything
and have policies and procedures that are equal to any other
commercial organisation.”
Careful cost control and a more commercial approach to the
business structure meant the ICAA recorded member funds of
approximately $20.3 million this year. The Institute’s aim is
generally to make a small profit each year to protect and
maintain the reserves – and therefore to fund future programs
and services for members.
“Member funds are like shareholders funds,” says Barry,
“they’re accumulated profits built up over a long period of time.
Over the 75 years we have been around, we have built our
profits up and that allows us to fund expensive but important
ongoing costs like advocacy and major new initiatives like this
year’s branding campaign.”
>24
In a year of major change for
the ICAA, it was vitally important
that Support Services kept
the ship sailing smoothly.