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Chartered Accountants Australia and New Zealand has posted a $2.2 million surplus for the 2017-18 financial year after two years of consecutive losses, with reductions in expenditure from education and staff cuts.
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Education, staff cuts contribute to CA ANZ’s surplus
01 November 2018
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9 minute read
CA ANZ’s annual report saw the professional body record a before tax surplus of $2.2 million after posting deficits of $6.7 million and $8.2 million in 2017 and 2016, respectively.
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According to CA ANZ, the reduction in expenditure of $7.3 million over the 2017 results came from lower staffing levels, reducing staff costs by $1.5 million; lower education-related costs of $4.1 million; reduced travel costs of $1.8 million; and reduced marketing and advertising cost of $1.2 million.
Total revenue increased by $1.6 million over the 2017 result, attributed to a net increase of 4,306 members, bringing total membership up to 121,418, along with an increase in membership subscription fees.
Enrolments in the CA Program also increased by 1.4 per cent to 23,369, contributing to an $800,000 revenue increase.
The change in financial position follows chief executive Rick Ellis’ “strategic review” of CA ANZ, which will see changes to its CA Program, the development of a digital hub for members called My CA, and staff cuts of up to 15 per cent by December 2019.
Additionally, CA ANZ has also initiated new partnerships with the start-up community to help members engage with new technologies and access innovation, teaming up with Fishburners, The Icehouse and Stone & Chalk.
The total costs of the strategy review and transformation costs came up to $4.8 million, including new strategic initiatives of $1.3 million, redundancy costs of $1.1 million, and external consultancies of $0.8 million.
“The surplus comes against a backdrop of the profession needing to evolve and grow in the face of rapidly changing times. We will continue to invest in our strategic initiatives, which aim to serve members and enable the profession,” a CA ANZ spokesperson told Accountants Daily.
Executive remuneration
Mr Ellis, who joined the organisation on 3 August 2017, received a total remuneration package of $888,356.
He received 688,356 as his annual base salary inclusive of super, with an additional $200,000 from an “at risk” component.
Total fees for non-executive directors came up to $617,500, up from $600,833 in 2017.
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