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CPA AUSTRALIA 19INTEGRATED REPORT CPA Australia Integrated Report 2019 William YoungWilliam CPA, Director Executive COSCapital –HeadofAustralia, Analyst,DeakinUniversity Shriya GuptaASA,BusinessInformation featured onfront cover: CPA Australiamembers CPA program andcertification ofCPAs nextgeneration anddevelopthe Attract NEXT GENERATION OFCPAS ATTRACT ANDDEVELOPTHE Professional developmentandknowledge CONTENT RESOURCESANDTOOLS PROVIDE RELEVANT LEARNINGANDDEVELOPMENT Our people Member trustandengagement Member demographics Member engagementandsatisfaction AND ENGAGINGEXPERIENCES PROVIDE MEMBERSWITHPERSONALISED futureLead the profession accounting ofthe ACCOUNTING PROFESSION LEAD THEFUTUREOF interestPublic andprofessional standards Brand andreputation Risks andopportunities Governance THE INTEGRITYOFDESIGNATION PROTECT, PROMOTEANDENHANCE Financial performance Performance summary Materiality Our businessmodel Member journey External environment Strategy Officer’sChief Executive report President’s report Who weare reportAbout this CONTENTS TABLE OF
64 62 58 54 50 46 44 40 33 31 29 26 22 20 16 14 12 11 10 60 56 42 38 24 8 6 2 1 Office locations Acronyms – scheduleofDirectors’ remuneration Independent Auditor’s report yearended31December2019for the Schedule ofdirectors’ remuneration Independent Auditor’s report Director’s declaration financialstatements Notes tothe Statement ofcash flows Statement ofchangesinmembers’funds Statement offinancialposition Statement ofprofit comprehensive orlossandother income 2019 financial Discussion andanalysisofthe results Overview offinancial results Auditor’s independencedeclaration BoardReport ofthe ofDirectors Councils andcommittees Board ofDirectors GOVERNANCE ANDFINANCIALREPORT assurancereportIndependent limited andadvocacy Policy COMMUNITY ADVOCACY IMPACT POLICYGLOBALLY ANDBEACTIVEIN
150 149 137 143 147 138 73 84 80 75 68 66 91 98 97 96 95 94 89 88 71 determination processdetermination (page16). through issues identified ourmateriality long-term and short, medium intend todosoforthe through ourbusinessmodeland howwe of howCPA hascreated Australia value readers acomprehensive with picture This report isstructured toprovide future.now andintothe picture ofhowwecreate value,both providing acompleteand transparent credibilitythe ofourreport andto isfundamentaltoenhancing we believe We are toassurance,which committed of corporatereporting. andreportingthinking evolution inthe for organisations tointegrated committed
with the
1 | CPA Australia Integrated Report 2019 2 | CPA Australia Integrated Report 2019 *Employee count is all employees (including part-time). Employee figure in the financial report differs as it reports on full time equivalent (FTE). equivalent time full on reports it as differs report financial the in figure Employee part-time). (including employees all is count *Employee Surplus: membership: Average years’ Revenue: Employees: Members: WHO WEARE UAE andVietnam. Macau SAR,Taiwan, Fiji,Indonesia,Malaysia,NewZealand, Singapore, UK, the Region(SAR), MainlandChina,HongKong SpecialAdministrative territories ofAustralia, Our sphere covers offices ofoperations and representative officesall statesand in standard generalpublic. industries,academiaandthe setters, to represent profession viewsandconcernsof the the togovernments,regulators, advocacy. bodies localandinternational with Employeesandmembers worktogether Our core training, technicalsupportand servicestomembersincludeeducation, 133than onourmemberscanbefoundpages46to49. information years.Further CPA world’s isoneofthe Australia largest ahistoryofmore with bodies accounting $4.4m $172.9m 166,166 554 15
* FIGURE 1:GOVERNANCESTRUCTUREANDHEADSOFPOWERDURING2019 ofmanagement. and activities organisation’s performance decisionsandoverseesthe The Board assessesthe andobjectively independently The Board ofDirectors governingbodyofCPA isthe Australia. GOVERNANCE ANDORGANISATIONAL STRUCTURE professionals communities. whoenhancetheir andbusiness Advancing trustedandvaluedaccounting OUR PURPOSE and tomorrow connectedworld. inaglobally memberstopreparePartnering with fortoday OUR VISION - FinanceandPolicy COUNCIL OF PRESIDENTS - Audit, Riskand - Audit, Engagement Compliance - Member COMPLIANCE COMMITTEES - Professional Qualifications ADVISORY COMMITTEES Board Committees Divisional Councils - Disciplinary Panel - Disciplinary - Quality Review - Quality - Public Practice - Public THE BOARD MEMBERS - People, Remuneration - People,Remuneration - IndependentReview APPOINTMENTS Implementation - Nomination and Culture COUNCIL is showninFigure 1. The governancestructure organisation ofthe during2019 • • • • • • The Board isresponsible foranumberofdecisionsincluding: Making and amending By-Laws. Making andamending CEO’s the Evaluating performance Approving financialstatements President the Appointing andDeputyPresidents organisation’s aspectsofthe Overseeing all performance and financial objectives andapprovingSetting organisation’s the strategy, direction evaluate andreview professional the conductofmembers. are committees Compliance created Board bythe and Boardand advisethe areas intheir ofexpertise. areAdvisory committees created Board bythe processes.and policy Board Board assistthe committees initsdecision-making andinternationally.Australia in statutoryauthorities Lawandother Corporations andensures wholeConstitution the with compliance organisation, performanceofthe full the implements The Board strategyandisresponsible executesthe for Councils andisresponsible Board. the for appointing CPA memberselectedfrom Australia Divisional The AppointmentsCouncilconsistsentirely of Boardadvise the onstrategicissuesandopportunities. CPA itssolepurposebeingto with Constitution Australia The CouncilofPresidents isacouncil underthe the CPAthe AustraliaConstitution. Divisional Councilsare under councils established through Board. AppointmentsCouncil,the the organisation. TheyelectDivisionalCouncilmembersand of CPA andBy-lawsofthe Constitution andthe Australia Members are professional governedby the requirements
3 | CPA Australia Integrated Report 2019 4 | CPA Australia Integrated Report 2019 FIGURE 2:ORGANISATIONAL STRUCTURE which received rate. a90percentparticipation In 2019, weundertookaculture ouremployees surveywith • • • Our organisational culture iscentred on three pillars: OUR CULTURE role. undereachexecutive equivalent)sitting time (full shown inFigure percentage 2andincludesthe ofFTE The organisational structure anditsresourcing are andadvocacy. andpolicy practice focused onpublic strategy. positions executive Thishasincludeddedicated new organisational structure ofour delivery tosupportthe Throughout 2019, toembedandrefine wecontinued the Notes: CIDO refers to Chief Information and Digital Officer. EGM refers to Executive General Manager. Manager. General Executive to refers EGM Officer. Digital and Information Chief to refers CIDO Learning-focused. members with Constructive eachother with Collaboration The percentage of FTE shown in Figure 2 reflects the headcount sitting under each executive role. CFO refers to Chief Financial Officer. Officer. Financial Chief to refers CFO role. executive each under sitting headcount the 2 reflects Figure in shown FTE of percentage The MY ND AH KH ET SE GP DL RB FJ ANDREW HUNTER–CEO,4%ofFTE MEG YEATES 14%ofFTE –EGMMarketing, KAREN HELLWIG –EGMMemberExperience,17%ofFTE ERICA TRAICOS–EGMPeopleandCulture, 2%ofFTE 12%ofFTE SIMON EASSOM–EGMEducation, NICHOLAS DISSCPA –CFO,9%ofFTE DEBORAH LEUNGFCPA 19%ofFTE –EGMInternational, Public Practice andProfessional Practice ROWENA BUDDEE–EGMPublic Standards, 9%ofFTE GARY PFLUGRATH CPA andAdvocacy, –EGMPolicy 3% ofFTE FARID JARRAR–CIDO,10%ofFTE THE BOARD our cultural pillars andvalues. pillars our cultural and Culture beundertakingareview will Committee of Board,In 2020,the through People,Remuneration the can befoundonpage52. More engagementprogram onourcultural information in howwedothings. involvedandconsistency employees feeling areas inthe experience, particularly of employee needs tobedoneenhancethe was astrong focusonmembers,more work people were clearaboutstrategyandthere whileour surveyshowedthat ofthis Results
to support our members in these importantregions.to supportourmembersinthese togrow activities toestablish and wecontinue ourprofile environmentmarkets weoperateinahighlycompetitive regions. inthese bodies Inemerging orlessestablished relationships standard with professional andother setters Kong SAR,MalaysiaandSingapore andastrong networkof change. We presence havealong-established inHong industryundergoes asenseofprideasthe deliver significant toengendertrustand andcontinue position support this toensureand NewZealandwecontinue ouractivities professionals. Ourbrandawareness isstrongest inAustralia represent andbusiness rangeoffinance,accounting adiverse operate inmore 100countriesacross than globeand the operate.Our166,166 inwhichthey communities members knowledge andare widelyregarded byemployersandthe breadthsoundness indepth, ofaccountancy andquality learning,ourmembersholda commitment tolifelong CPA Through designation. CPA the Program anda strongmember networkandthe brandawareness ofthe strength ofourmembers,the integrity andquality ofour CPA Australia’s advantage comesfrom competitive the externalenvironment.in the becomeredundant subsequently will through changes Additionally, products someofthe andservicesweoffer impactonfinancialcapital. positive such asfree donotreturn a CPDthat providing accesstoproducts andservices membership feepaidbymembers the financial capitalasawhole,with CPA impacton hasapositive Australia productionto digital anddocuments. forkeypublications increased useofvideoconferencing andanincreasing move WeCouncils andCommittees. through dothis will the travel byourstaff our andmemberswhoassistwith asthrough aswell information, materials andmarketing air CPA ofourpublications, printing have duetothe Program We are toreducing committed wedo impactthat the newtargetsto whether area. inthis shouldbeestablished current andimpactonnaturalcapital,havingregard position Board material.In2020,the consider this review will its impact onnaturalcapitalandourstakeholdersdonot CPA ithaslimited basisthat hasoperatedonthe Australia relationship. and social and natural, human, intellectual, manufactured, financial,
5 | CPA Australia Integrated Report 2019 6 | CPA Australia Integrated Report 2019 to be only the second to beonlythe Annual Reportisbelieved CPA Integrated Australia Framework in2020.The 2019
7 | CPA Australia Integrated Report 2019 8 | CPA Australia Integrated Report 2019 the outcomesyousetoutto achieve. the accomplish youwill you executeitwell, rightplanand ifyouhavethe that belief wanted.Itconfirmsmy told usthey our strategyisbasedonwhatmembers it. Thisshouldn’t beasurprisebecause plan inplaceandare on nowdelivering right wehavethe that This indicates service, valueandperformance. formetricsrelatedin memberratings to there were improvements alsopositive ourtarget.exceeding Encouragingly, fromsatisfaction ascore of6.23to6.63, formember rating successive yearinthe increasesubstantial second forthe engagement survey, the inparticular measured through member the across keyperformancemetrics the however, ongoingimprovement isthe our2019meeting target. Mostpleasing, member retention rateof98.1percent, qualified world. Thisincludesafully countries andregions around the members workinginmore 100 than membership hasgrown to166,166 As at31December2019, CPA Australia’s year. beginningofthe ourselves atthe key performancetargets weset for whilealsoachievingthe initiatives progress ourstrategic ondelivering We innovation. further havemade groundwork forfuture growth and in whichCPA laidthe Australia In manyrespects, 2019 wasayear OFFICER’S REPORT CHIEF EXECUTIVE increased traffic tointheblack.com and havecontributedtooverall downloads havealsoproven popular trends. Newfeatures suchas audio commentary oncurrent economic careerinformation, advancementand members, technicalaccounting sharper focusonstoriesfeaturing focus ofINTHEBLACKtoreflect a During July2019, wechangedthe • • • areas practice public including: guides across policy, the advocacyand we produced aseriesofmajor research central toCPA andin2019 Australia Providing leadershipremains thought asustainablepractice. building in as learningmodulestohelpthem regulatorywith requirements, aswell and resources tocomply toassistthem tools we developedarangeofdigital practice, For membersworkinginpublic content. the with themselves tofamiliarise time additional subjects, givingcandidates to studymaterialsacross selected we offered earlyenrolment andaccess core subjects.Forsemesterone2020, learningapp,Quitch,tocoverall digital successfulpilotofthe expanded the through KnowledgeEquityand we provided guidedlearningresources CPAFor membersstudyingthe Program, areas ofouroperations. stridesacrossmade positive different promise tomembers.Yet in2019 we our havemuchtodofulfill we still through three-year the strategy, so Of course,weare way notquitehalf profession interest. public andthe IPAthe ofthe toadvocateonbehalf CAANZand with coming together This report hasledtoCPA Australia providing advisoryservicesin Australia. burden onprofessional accountants measures regulatory impactof the the The RegulatoryBurden Reportwhich landscape accounting changing public offers analysisofthe anin-depth The MyFirm.Future guide which Asia-Pacific in the region access tofinanceacross 10markets technologyuptakeand sentiment, Business survey, measuring business annualAsia-PacificSmall The tenth
accounting andfinanceprofession.accounting and Torres StraitIslanderpeoplesinthe ofAboriginal participation advance the tohelpCPA pathway practical Australia reconciliation journeyandprovides a the firststageofour Reflect RAPis Australia’swith FirstPeoples.The our commitmenttoreconciliation andformalises Australia Reconciliation The ReflectRAPisendorsedby Reconciliation ActionPlan(RAP). CPA Australia’s inauguralReflect are mostproud launchof isthe ofwhichwe initiatives One ofthe robots. forthe money andaccounting futurekey topicssuchasthe ofdigital exploring ‘BusinessasUnusual’ theme and heard from 275speakersonthe More 7700delegatesattended than across13 locations sevencountries. development event,washeldin CPA Congress, ourflagshipprofessional initiatives that memberswant. that initiatives keystrategic onthe deliver and sustainable organisation we wanttobuildastrong, our underpinningsystemsif boost intechnologyand a significantinvestment members, wenowrequire years ofunderinvestmentin However,doing justthat. after weareon aboveshowthat The examplesI’vetouched improve memberexperience. in toolsandresources that made acommitmenttoinvest membership services”andI in expense ofinvesting asurplusatthe delivering hasprioritised organisation the “historically that, In my2018 report, Iwrote like CPAlike conductbusiness, Australia wayorganisationsuncertainty forthe andcreating dailylives go abouttheir affecting communities, all howpeople is havingasignificantimpact across outbreak coronavirus ofthe (COVID-19) bushfirethe disasters inAustralia, environment. recent tothe Inaddition We doso,however, inanuncertain prosperous future. growth andbuildtowards a groundworkto laythe for is aimingtodojustthat, landscape. CPA Australia new adapttothe them professional bodytohelp and membersexpecttheir is undergoingrapidchange professionThe accounting • • • • • funds, including: requirewill significantinvestmentof projectsexciting underwaywhich profession.of the There are several keep CPA forefront atthe Australia members, weare confidentwecan valueto clear commitmenttodeliver setgoalsanda planning, butwith and itrequires careful andprudent not territoryweenterintolightly delivered inprevious years.Thisis ofstrengthposition surpluses the with two tothree years.We from dothis a next overthe business operations operate adeficitonourcontinuing To needto end,weenvisagethe that and career development. forentry Exploring newpathways relevant organisation brand toreflect acontemporary, CPA the Reinvigorating Australia to learnnewpractices enablemembers that initiatives Improving ourCPDoffering with learning any deviceforanytime access totoolsandresources on givemembers will ecosystem that Introducing learning adigital experiences formembers provide more personalised Developing anewwebsiteto CEO Andrew Hunter prospects ahead. lie that so far, I’menergised exciting bythe from achievementswe’vemade the While Ideriveasenseofgratification drivingforcethe organisation. ofthe ofCPAall Australia’s membersforbeing tothank Iwouldlike Most importantly for excellence. tokeepstriving and willingness ourstaffall dedication fortheir managementteamand executive strategy.the the tothank I’dalsolike guidance andsupportaswedeliver and commitmentforproviding great with duties their executing skill Board the tothank I’d like for evolves. situation as the communicate regularly members with safety ofmembersandstaff andto operate. Ourpriorityistoensure the ineachregionauthorities inwhichwe relevantthe governmentandhealth inaccordanceacting advicefrom with are closelyand situation monitoringthe difficultthis stage,butwe at toquantify end-of-semester exams.Theimpactis deferralof causingthe and potentially memberevents scheduling including
9 | CPA Australia Integrated Report 2019 10 | CPA Australia Integrated Report 2019 FIGURE 3:CPA AUSTRALIASTRATEGY • • • • • • • • strategyputinplace2018,support the included: this In 2019, organisation the that focusedonkeyinitiatives STRATEGY Member interest (page68). andpolicy CPA Program (page64) Offering free guidedlearningaspartofthe Launching Quitch(page64) Launching anewlookINTHEBLACK(page58) and Malaysia(page51) Member JourneyMappingresearch inChina ReflectRAP(page40) Releasing the manual tools(page34) ControlRisk ManagementFrameworkandQuality Regulatory Burden Research Reportandproject (page33) the integrity of the designation integrityofthe the Protect, promote andenhance Provide relevant learningand Partnering with memberstopreparePartnering with fortoday and tomorrow connectedworld inaglobally development content, resources andtools 1 4 Vision: Vision: VALUE FORMEMBERS, SUPPORT FORTHECOMMUNITY next generation ofCPAsnext generation Attract and develop the anddevelopthe Attract accounting professionaccounting Lead the futureLead the ofthe GOALS communications tomembers. his communications President afterBoard CEOin andbythe meetings are communicatedtomembersviaanupdatefrom the the strategy The mostsignificantdevelopmentsunder businesstorealisethe andgoals. ourstrategicobjectives beingundertakenacross andinitiatives various activities website andfeatures up-to-dateprogress reports onthe strategyprogressA dedicated pageisavailableonour 2 5 business professionals communities who enhancetheir Advancing trusted and valued accounting and Advancing trustedandvaluedaccounting Provide personalised memberswith Purpose: active incommunityadvocacy active Impact policy globally andbe globally Impact policy and engagingexperiences 3 6 risks and opportunities wearerisks andopportunities facing.Keyimpactsandourresponse are tothem detailedbelow. The externalenvironment impactsourbusinessmodelandstrategyisasource formanyofthe ENVIRONMENT EXTERNAL key to their social licence to operate. to licence social their to key toincreasingly organisations important and both are Trust and transparency confidence. employee and customer thatsystems can deliver information that drives investor, reporting in play to role akey have accountants Additionally, them with consultation and advice on strategic matters. provide to accountants skilled on reliant more becoming – Organisations are advisors strategic as Accountants accountants. of work the impact to potential the has this and world, the around businesses economies is and impacting instability geopolitical environment in this region.the business Increasing many need to accountants increase of their knowledge Asia, towards power economic global in shift the With Demographic and change instability geopolitical changes. legal and regulatory with date to up be to members and organisations for important Regulatory and environment policy courses. long traditional for demand changing and learning personalised for demand increasing space, education the impacting also are changes Technology skills. soft and advisory analytical, on emphasis greater with for are accountants changingThis means opportunities tasks. complex more complete to time employee up free oroutsourcing automating manual and to repetitive tasks required skillcritical sets by Organisations accountants. are technology. are the and New systems processes shifting with interact and use accountants way the changing are Technology strategies (including strategies
against targets and targets theagainst remuneration of key personnel. performance member satisfaction, member demographics, our on information significant We include value. preserve and create we how to as picture complete amore provides it as Report Integrated this produce we organisation an As and Conduct Professional of Code By-Laws, and Constitution CPA in Australia’s detailed obligations the with comply to required are and interest public the in act to responsibility How we are responding profession. the of future the with otherand accounting partnering bodies to advance development of the profession in under-represented areas the supporting partners, with and ourselves by both profession the facing issues into research conducting How we are responding key markets. global understand growth better can members our that so Asia in advocacy and leadership How we are responding to the address challenging regulatory environment. work leadership thought and advocacy our increasing are we this, Alongside business. small and consumers to advice quality affordable, of provision the enable that frameworks regulatory efficient build to need the IPAthe advocate to and ANZ CA with working We are practice. members our where regions all in bodies industry and regulators with implementation, through engagement and consultation the profession, and promote their adoption and international and national relevant standards to How we are responding profession. accounting the on impact its and transformation digital and technology on focus increasing We are members. to offer we support the and service our enhance will that technologies in investments greater making We are employers. their and members of needs future the meets it ensure to CPA Program through changes these continually evolving the How we are responding applicable industry standards and regulations. standards industry applicable – CPA Australia members have a a have members –CPA Australia by this do to –We look thought our increasing –We are develop to –We help addressing is –CPA Australia
11 | CPA Australia Integrated Report 2019 12 | CPA Australia Integrated Report 2019 from professional their bodychangeovertime. members across career their needs journeyastheir valuetoour Our businessmodelneedstodeliver *Member quotes reflecting on their careers during Member Journey Mapping research. Mapping Journey Member during careers their on reflecting quotes *Member MEMBER JOURNEY PRE CAREER real worldexperience.” when youare startingis “The skillsthatyouneed potential internships. potential jobsearch,help startthe to Networking opportunities degrees need. they andskills howtopreparepaths, andwhat Wanting tounderstandcareer afirstjob. Studying andfinding * EARLY CAREER you are doing.” you understandwhat should havetodo,because that iswhateveryone was thebestthing.Ithink knowledge. Ifoundthat getting alotofpractical working, studyingand “I hadtheadvantageof balancing workandstudy. is adifficult asitinvolves time CPABeginning the Program mentoring relevant roles. totheir Wanting experienceand practical able toperformandcontribute. grow role statusintheir andbe tobeable Developing skills * MID CAREER balancing workandfamilylife. pressure additional is the of open.Forsome,there options top ofindustrychangestokeep through mid-level and stayon help maintaingrowth inseniority career, cementtheir help them to work.Experienceandskills to choosewhere want they under their belt with more flexibility CPAs havevaluableexperience trying tobuildacareer.” between family, work and roles, Ifeltsotimepoor “In themiddlemanagement *
RETIREMENT LATE CAREER technology advancements. industrytrendsdate with and tokeepup Needing others. to givebackandmentor industry orretiring. Wanting in career, ifchanging especially Wanting tounderstandnextsteps toretirement.or transitioning Searching foraseniorrole for change.” know thethreats tobeready businesses. You needto We needtoaddvalue that weare not just processing. up withit.We need toupskillso adapting ourpracticestokeep world andwehavetokeep technology changesinthe “You needtokeepabreast of *
13 | CPA Australia Integrated Report 2019 14 | CPA Australia Integrated Report 2019 MODEL OUR BUSINESS THE STRATEGIC GOALS SUPPORTING PLATFORM FORACHIEVING GOALS STRATEGIC financial performance Sustainable annual community advocacy in and be active globally Impact policy of CPAs nextgeneration the anddevelop Attract resources andtools development, content Provide learningand engaging experiences and personalised with Provide members professionaccounting futureLead the ofthe designation of the integrity enhance the Protect, promote and • • Manufactured capital • • • Financial capital • • • Human capital • • • • Intellectual capital • • • Social andrelationship capital INPUTS • • • • • ACTIVITIES IT systems 19 offices CPD fees$14m CPA Program fees$58m Membership fees$87m 554 employees(FTE) >800 volunteermembers 166,166 Members Thought leadership Member inputandexpertise CPD content CPA Program Program Practice andPublic Regulator relationships relationshipsSupplier Member relationships stage of their journey stage oftheir members, needsandgoalsthroughout each meets amemberexperience that Delivering CPAof the Program highstandardsMaintaining the andrelevance currenton the andfuture profession needsof the Developing content,products andservices based needsofcurrenton the and future members areDeveloping strategiesandplansthat based community,and the needsare sotheir understood members,employers,academia Engaging with • • • • • • • OUTPUTS • • • • • • • • • Input intostandard setting Management andinvestment ofmember funds strong internalgovernance and decision-makingframeworks toensure Reviewing internalcontrols, procedures, andhasalearningfocus constructive acultureBuilding iscollaborative, that and experience (ASAs) through contentoffer acompelling high-calibreAttracting Associate members andadvocacywork policy leadership, thought Develop anddeliver of being,oremploying,aCPA ensurethat benefits ofthe understanding plansandinitiatives Developing marketing materials and other publications materials andother Waste –overprintsofprogram assuranceprogramQuality andadvocacypositions Policy member experiences andengaging Personalised High professional standards Program Practice Public valued knowledge deliver that CPD andpublications Brand health CPAQuality Program OUTCOMES SOCIETAL IMPACT CPA designation whohold the those for opportunities Demand and community business Trust inthe financial system High functioning profession accounting the Self-regulation for workforce motivated Engaged and organisation Sustainable retention Membership professionals accounting High calibre interestpublic Protection ofthe
15 | CPA Australia Integrated Report 2019 16 | CPA Australia Integrated Report 2019 MATERIAL ISSUE Table 1:Materialissues new materialissues. year’sto makechangesthis report considering including isundertakenannually.feedback We feedback haveusedthis range ofinputacross Specific ourday-to-dayactivities. report To report informthis awide wegather andouroperations, impact andstakeholderpriority. ofbusiness Material issuesrankingisbasedonacombination MATERIAL ISSUES stakeholder input. list ofmaterialissuesafter final also havingoversightofthe committee that with Committee, RiskandCompliance Audit, ofmaterialissuesisagreed list An initial Board bythe viathe process. determination a materiality Countstoundertake Materiality independent consultancy report, developmentofthis As partofthe weworkedwith MATERIALITY M8 M6 M5 M2 M4 M3 M7 M1 processes governance of Quality CPAs of generation next the develop and Attract profession accounting the of Leading the future satisfaction and Member experience for members and knowledge development professional High quality designation and brand the of promotion and Reputation CPA High quality CPA Australia in trust Member Program Program
processes are transparent and represent leading practice. leading represent and transparent are processes organisation. that CPA expect Members Australia’s governance sustainable any of heart the at is governance Good aCPA. become to journey their content and them through experience, offer and supporting acompelling through globally ASAs calibre high Attracting changes. these through members support to tools and training strategies, provide to needs CPA Australia ofmeet community. the the business changing expectations must designation the careers sustainable have to members For value and satisfaction. member provide to important is this on Delivering choosing. their of manner the in CPA with Australia interact to them allows that approach personalised atailored, expect Members them. to relevant is that CPD accessible quality, high provide will CPA Australia professional. their As professional body, that expect members a being of heart the at is learning ongoing to A commitment the general public. and accounting with community the industry, wider business the in brand and CPA the of designation reputation the on predicated is CPA thus Australia and members of success The business the of expectations changing the meets designation the sure making to vital is CPA Program relevant and quality A high integrity. with operating is organisation the trust can they that and interests, best their in acts CPA Australia that know to need members body, professional their As DEFINITION community. in the tablebelowinorderin the issue. of prioritythe control CPA issue.Thisisdetailed hasoverthe Australia impactvaluecreation,over whichitwill levelof andthe orderthe the horizon issue,itsdefinition, ofprioritythe isgivento In lookingatourmaterialissues,consideration our valuecreation story. to review issueseachyeartoensure these bestreflect they a topthree issueforanystakeholdergroup. We continue have asignificantbusinessimpact;or routinely appearas removing donot:ratehighlyforstakeholders; issuesthat reportThe contentsofthis havebeendefinedby area workdoneinthis and the lasttwoyears. overthe processes’. Thisreflectsthis riskatBoardthe changein level processes’ ofgovernance hasbeenamendedto‘Quality Journey Mappingresearch. ‘Transparency ofgovernance career ofourMember findings basedonthe development’, A newissuehasbeenaddedin2019, members ‘Supporting
to long-term Medium long-term to Short to long-term Medium long-term to Short to long-term Medium to long-term Medium to long-term Medium long-term to Short VALUE CREATION IMPACT ON
* High Moderate Moderate High High Moderate High High CONTROL EXTENT OF Our stakeholdersare figure showninthe the keyissuesraisedbystakeholdersshownin belowwith Table 2onpages18to19. FIGURE 4:STAKEHOLDERS * MATERIAL ISSUE M10 M12 M13 M11 M9 Short-term impact is likely to occur in the next one to two years, medium-term within two to five years and long-term in five years or more. or years five in long-term and years five to two within medium-term years, two to one next the in occur to likely is impact Short-term members toeffectively Communicating members of behalf on thought leadership Advocacy and standards Professional development members’ career Supporting interest public the for Advocating inputs intoourbusinessmodel Stakeholders whoprovide Community members Potential Potential Media
relevant, tailored to them and transparent. that communications these should bewho timely, expect CPA Australia communicates extensively with members, for importance of areas key are profession the of future the on Advocating for and members providing thought leadership to upholding high and consumer protection. standards committed is CPA that Australia public the and community professional the clients, their members, to message astrong send must CPA body, Australia aprofessional As support. provide could CPA where Australia area an and progression career of aspect acritical was steps career next on guidance provided being that confirmed have Members do. we what of heart the at is interest public the of protection that ensure must members its and CPA body. Australia professional any of tenet akey is interest public the of Protection DEFINITION members. Employers ofCPA members Australia who can impact our ability tocreatewho canimpactourability value Stakeholders inourexternalenvironment Our Board, Committees OUR STAKEHOLDERS and Councils Employees Members Suppliers
Short-term long-term to Short long-term to Short long-term to Medium long-term to Short CREATION IMPACT ONVALUE
*
Academic institutions Academic institutions governments and and academics their agencies their professional Regulators, bodies Other Other High Moderate Moderate Moderate Moderate CONTROL EXTENT OF
17 | CPA Australia Integrated Report 2019 18 | CPA Australia Integrated Report 2019 Members Note: GROUP STAKEHOLDER Table 2:Stakeholderconcerns members Potential Employees Committees and Councils Board, Our members CPA Australia Employers of AFAANZ refers to the Accounting and Finance of Association Australia and New Zealand. • • • • • KEY ISSUES • • • • • • • • • • • • best interests inmembers’ Acting our CPDoffer CPA Program and ofthe Quality CPA designation The reputation ofthe professionthe Future for outlook Value ofmembership Value ofmembership CPA designation The reputation ofthe and integration Greater collaboration behaviours and values Consistency of Greater empowerment development Investment incapability CPA designation The reputation ofthe best interests inmembers’ Acting interestpublic Protecting the organisationthe best interests of inthe Acting our CPDoffer CPA Program and ofthe Quality of ourmembers Professional standards HOW WEENGAGE • • • • • • • • • • • • • • • • • • • Member research events member recognition networking and development, Professional face-to-face Email, phone, social media Website, INTHEBLACK, campus events Networking and Email, phone website, webinars Social media, content partnerships TV, outdoor advertising, and wellness events and wellness Development, culture weekly updates Intranet and leader events Town andsenior Hall teams within between and regular meetings Day-to-day activities, Culture survey General Meeting Annual forthe Meeting of Notice and the Governance Statement Corporate Charters, the amendments to including bodies of the Input intokeyactivities for papers agendas andfeedback and approval of include planning that Regular meetings campus events Networking and Email, phone website, webinars Social media, content partnerships advertising, digital Outdoor, printand QUALITY OFRELATIONSHIP survey (pages 44 to 45). to 44 (pages survey our annual member engagement through measured is relationships member our of quality The perception surveys (page 31). (page surveys perception measured through regular brand member relationships is potential our of quality The and our culture survey (page 54). (page survey culture our and measures, attrition exit surveys through measured is relationships employee our of quality The each year.each of end the at assessments bodies’ respective the in feedback from engagement and regular through measured is relationships our of quality The surveys (page 31). (page surveys through regular brand perception relationships is measured employer our of quality The
RESPONDING HOW WEARE 50 to 70. to 50 pages on is our response Information on 53 and 60 to 65. to 60 and 53 31 to pages on is response our Information on is on page 54. page on is our response Information on 26 to 28. to 26 pages on is our response Information on 35 and 56 to 65. to 56 and 35 31 to pages on is response our Information on
agencies and their governments Regulators, GROUP STAKEHOLDER academics and institutions Academic Suppliers community Wider Media bodies professional Other • • • KEY ISSUES • • • • • • • • • • • effective solutions and advancing for Advocating interestpublic Protecting the of our members Professional standards CPA Australia Support from professionto the degreesaccounting content of of the Ongoing relevance degreesaccounting Enrolment ratesin member value processes todeliver Future products and fordelivery Timelines issues Operational of our members Professional standards interestpublic Protecting the superannuation topics. superannuation regulatory burden and finance, accounting, has focusedontax, through coverage interestMedia shown Professional standards interestpublic Protecting the HOW WEENGAGE • • • • • • • • • • • • • • • • • • • • regulatory matters and policy public governmenton with Liaising directly and meetings industry forums regularAttending alongside government Act asco-regulator Academics Forum Annual Emerging grant funding AFAANZ andresearch Sponsorship of Heads of School with Annual meetings boards University advisory Conferences Trade events meetings Strategic supplier delivery supply Operational engagement processes Procurement market Media articles Media of our members services the Advertising our members received from have services they professionalthe customers regarding Contact servicefor based media TV andinternet- Interviews Briefings Press releases and forums groups, taskforces inworking Participating QUALITY OFRELATIONSHIP and regulatory matters. policy public on CPAof Australia advice and views the seeking regularly them by measured is andgovernments their agencies with relationship our of quality The research of benefit to members. to benefit of research produce to academics with students to profession the of work the promote to sector the across work to ability our through measured with academic institutions is relationships our of quality The and overall value for money. services member quality higher of delivery the including benefits andmany long-term short ensures this that aware are we as approach astrategic adopts CPA Australia suppliers, key with When partnering success. organisation’s our of part avital is A good relationship with suppliers low (pages 36 to 37). 37). to 36 (pages low remainmembers historically our against complaints of to Levels the standards. highest ensuring our are members held aco-regulator as role our on depends profession the in trust Maintaining levels of community to 13 industry sectors (page 68). 68). (page sectors 13to industry favourability rating compared including the organisation’s coverage media external We track (page 33) . 33) (page profession the to importance of matters on advocacy and skills of our through members recognition benefit mutually to arrangements working joint our by reflected is bodies professional other with relationships our of quality The and our partnerships and our partnerships
RESPONDING HOW WEARE 37 and 68 to 70. to 68 37 and to 33 pages on is response our Information on our our on available is sector academic the our in activities Information on our our on available is suppliers our with have we agreements the service and process procurement on our Information pages 33 to 37. to 33 pages on found be can our response Information on pages 68 to 70. to 68 pages on found be can our response Information on on page 33. page on found be can our response Information on website website . .
19 | CPA Australia Integrated Report 2019 20 | CPA Australia Integrated Report 2019 beyond 2020targets. research improving member engagement number ofmetricsfrom ourtargets,anda all achievementof KPIs, with performance across the This focushasseenstrong strategy. andfocusonthe alignment have brought business aboutbetter put inplacetomeasure progress to membersinlate2018. TheKPIs modelannounced and operating strategy the focused onimplementing 2019,financial performance.In wehave asagroupas well target measures that strategicgoals, against eachofthe of targets tomeasure performance CPA hasdevelopedaset Australia SUMMARY PERFORMANCE strategic initiatives that memberswant. that strategic initiatives organisation key onthe anddeliver systems tobuildastrong, sustainable technology andourunderpinning significant investmentboostin ustomakethe allow years will The surplusesdelivered inprevious and 62). ofASAs(refer pipeline the page49 CPA are in decline duetothe declining Targets foradvancementfrom ASAto fromchange significantly yeartoyear. figures these that not dogenerally are stableashistoricalevidenceshows Our future targets formemberretention area.in this members more required workisstill importanceofongoingCPDtoour the areas viewsofmembers.Given inthe remains poorest oneofthe performing putinplace2019,initiatives this CPD’ wasmet,reflectingthe someof KPIfor‘valuemoney the Although 2021 havebeenchangedtoreflectthis. 2019 targets, targets the for2020and Where 2019 results haveoutperformed • • • • • of funds,include: require significantinvestment to three years.Projects underwaythat nexttwo overthe business operations operate adeficitonourcontinuing To needto end,weenvisagethe that and career development. forentry Exploring newpathways relevant organisation brand toreflect acontemporary, CPA the Reinvigorating Australia learn newpractices enablemembersto that initiatives Improving ourCPDoffering with learning any deviceforanytime access totoolsandresources on givemembers will ecosystem that Introducing learning adigital experiences formembers provide more personalised Developing anewwebsiteto Table indicators 3:Keyperformance **Where a previous year is N/A, this information is not available due to a change in survey questions. survey in achange to due available not is information this N/A, is year aprevious **Where * current drivers of satisfaction, value and trust in CPA Australia. With a 5.7 per cent response rate, 8507 members responded to the survey. survey. the to responded members 8507 rate, response cent per a5.7 With CPA in Australia. determine and trust and value performance track to satisfaction, of Research drivers Forethought by current conducted was members CPA Australia with survey online A 20-minute experiences and engaging with personalised Provide members profession accounting the of future the Lead designation the of integrity the enhance and promote Protect, GOAL and tools content resources and development, Provide learning performance performance Group: financial advocacy community in active be and globally policy Impact CPAs of generation next the develop and Attract satisfaction Member with satisfaction Member leadership Thought fully – retention Member KPI money CPD CPD money Value for market) mark-to- FX, tax, before(budget performance annual financial Sustainable rating member advocacy and Policy annually to CPA status advancing ASAs ofNumber
contact qualified qualified
* * * * ACTUAL 98.3% $9.5m N/A N/A N/A N/A 2016 6110 5.96 ** ** ** ** ACTUAL $11.9m 98.1% 2017 5693 4.08 5.52 5.79 5.3 5.7 ACTUAL $5.5m 97.5% 2018 2018 5901 6.29 6.23 6.28 6.03 4.49 TARGET 98.1% 5600 2019 2019 6.60 6.48 6.39 6.45 $1m 5.12 ACTUAL $4.4m 98.1% 5653 2019 2019 6.46 6.63 5.34 6.69 6.59 +/- $3m +/- TARGET 98.1% 2020 5250 6.66 6.86 6.89 5.75 6.76 +/- $3m +/- TARGET 98.1%
2021 5100 6.00 6.84 6.90 . 0 7.0 . 6 7.0 MATERIAL RELATED M4 M6 M5 M9 M2 M2 M4 M1 M1 M1 ISSUES M10 M12 M12 M13 M11 M8 M6 M6 M6 M3 M3 M3 M7
21 | CPA Australia Integrated Report 2019 22 | CPA Australia Integrated Report 2019 Greater China (including Hong Kong SAR) *ASEAN Group comprises of Indonesia, Malaysia, Singapore and Vietnam. and Singapore Malaysia, Indonesia, of comprises Group *ASEAN location. each in regions to derived revenue groups re-allocated the of been have percentage Australia the in on based incurred Australia of development outside product and marketing services, corporate as such costs ‘Overhead TOTAL REVENUE ($’000s) $ ’000s Table 4:Financialperformance PERFORMANCE FINANCIAL Europe All locations overseasOther New Zealand Australia ASEAN group ASEAN 100,000 125,000 150,000 175,000 200,000 25,000 50,000 75,000 0
2012 $153,7 2 * 2013 $157,242
2014 $161,249
2015 $174,534
2016 $1 0,115
2017 $1 1,55
201 $175,620
2019 $172, 96 2019 TOTAL REVENUE identified under the strategy. under identified strategicinitiatives invest inmemberservicesandthe past10yearsprovidesover the anopportunitytofurther valueformoneyofCPDproducts.the Thesurplusesachieved increasingwithout membershipfeesandthrough improving members.Thesurpluswasalsodelivered with conjunction strategydevelopedin ofthe goalsandobjectives the with in newtoolsandresources tosupportmembers,consistent The surplusfor2019 wasdelivered toinvest whilecontinuing In 2019, surplusbefore ouroperating taxwas$4.4m. 172,896 121,178 22,644 19,601 5,547 2,969 957 2019 TOTAL EXPENSES 168,477 116,251 20,428 22,977 4,034 1,864 2,923 BEFORE TAX SURPLUS/ DEFICIT 4,419 2019 2019 4,927 1,513 (907) (333) (827) 46
BEFORE TAX SURPLUS/ DEFECIT 6,723 5,305 2018 2018 1,687 (733) (331) 264 531
TOTAL EXPENDITUREEXCLUDINGTAX ($’000s) EXPENDITURE BYACTIVITY 100,000 125,000 150,000 175,000 200,000 25,000 50,000 75,000 0
2012 $145,727
2013 $154,936
2014 $157,495
2015 $166,7 9
2016 $172,61
2017 $171,106
201 $16 , 97
2019 $16 ,477 of the SydneyCPAof the Congress. offer andhighercostsforeventsrelated reinstatement tothe introduction the with embeddedguidedlearning ofthe CPA andthe by higherexpensesineducation Program costs.Thereductionand amortisation offset waspartially andpromotionsadvertising expenseandlowerdepreciation previous year. Thedecrease tolower isprimarilyattributable Expenditure before taxdecreased by$0.4mfrom the 4% 1% 27% 3% 21% 19% 13% 1% 11%
taei projects Strategic
CPA Advice Australia Corporate servicesandgovernance incommunityadvocacy active andbe globally Impact policy and tools development content,resources Provide relevant learningand generation ofCPAsgeneration next anddevelopthe Attract and engagingexperiences Provide personalised memberswith Lead the futureLead the profession ofthe the integrity of the designation integrityofthe the Protect, promote andenhance
23 | CPA Australia Integrated Report 2019 | CPA Australia Integrated Report 2019
24 1 • • • OBJECTIVES DESIGNATION INTEGRITY OFTHE AND ENHANCETHE PROTECT, PROMOTE as an international designation as aninternational Strengthen CPA Australia’s position ensure integrityandtransparency assurance andriskframeworksto Strengthen internalquality trust, confidenceand respect toinspire continues designation CPA the brand,sothat Australia the toinvestinbuilding Continue with industry standards –7.08/10 standards industry with to up dateKeeping members –6.88/10 brand A trustworthy Board –6.34/10 communications PERFORMANCE Director, FocusConsultants Kerry HarrisFCPA, TRUSTED ADVISOR.” IT STANDS FOR MYSELF ASACPA. PROUD TOINTRODUCE “I’VE ALWAYS BEEN
25 | CPA Australia Integrated Report 2019 26 | CPA Australia Integrated Report 2019 • • • • • • • • • • • • • issues during2019, including: The Board considered anditscommittees awiderangeof provides layerofprotection anadditional tomembers. proposed Board byamemberand was supportedbythe asit emergency powerstoappoint directors. Thisresolution was three ofmemberswithin meeting ofexercising months its requiring Constitution, 60ofthe Article Board the a tocall toamend AnnualGeneralMeeting members votedatthe wasmadetoCPAA modification Australia’s after Constitution member engagementprogram. acomprehensive IRPandcontinuing of the controls, recommendations the implementing strengthening riskmanagement andinternal previousthe year, emphasison particular with hadbeenimplementedduring changes that governance the focus onconsolidating During 2019, Board the maintainedastrong an updateoncurrent matters. directly membersaftereachBoard with toprovide meeting The Board metonnineoccasionsin2019 andcommunicated BOARD FOCUS IN2019 GOVERNANCE Oversight oforganisational culture. Oversight ofriskmanagement Board outreach andCouncil elections Divisional Councilsincluding Oversight ofengagementwith Reflect RAP Approval ofCPA andimplementation Australia’s inaugural commencing inDecember2019 introduction PSCandthe the ofanewfive-yearScheme progressOverseeing the with Schemeapplication ofthe Credit Licence(ACL) FinancialServicesLicence(AFSL)andAustralian Australian ofCPA cancellation Council (ASIC)the Advice’s Australia andInvestment Securities Australian the with Formalising ofMeeting Notice included inthe ofmemberresolutions and consideration Meeting tobe proceduresEstablishing 2019 forthe AnnualGeneral Approval externalpartnersandsuppliers ofcontractswith Report andfinancialstatements Review andsign-off ofCPA Australia’s 2018 Integrated ofCPAConsideration Program initiatives education Oversight ofrecommendations from IRP the arisingfromOversight ofpriorities memberresearch industry standard setters governmentregulators with Ensuring compliance and the listed skills on the Board onthe skills listed the andeachofitsCommittees. Table numberofdirectors 5onpage27showsthe whohave three-year termon1October. August andelectedthree directors whocommencedtheir Appointments Council.TheCouncilmetin opportunitytorecordhad the avideo presentation forthe candidates hadbeeninterviewed.Short-listed they of whether mandatoryrequirements, whometthe candidate regardless righttoconsiderany andhadthe ofcandidates list full to the forsecondroundshortlisted interviews.Theyalsohadaccess processthe providing including tobe inputoncandidates The AppointmentsCouncilwere stepsof inall consulted recommended ofcandidates. shortlist who presented a AppointmentsCouncilwith the Committee, Nominations conducted byDerwentandthe wereApplications assessedandtworounds ofinterviewswere search toexternalexecutive submitted firm,Derwent. Asiaandthrough WomenJournal onBoards applications with Wall BusinessReview (NZ),the National Review, the Street made viaCPA Financial Australian Update,INTHEBLACK,the newBoardIn electing was fornominations members,acall directors.possessed bydeparting Board orknowledge skills membersandassess anyspecialist existing setsandexperienceofthe mix ofcomplementaryskill considerthe gaps.Indoingso,they skill anypotential identify required mixofskills to determinethe Board onthe andto Board the Council workswith Committee Nomination andthe from DivisionalCouncils.TheAppointments eachofthe CPA Australia’s Board andiscomprisedofarepresentative appointing The AppointmentsCouncilisresponsiblefor DIRECTOR SKILLS report.this areThese initiatives detailedthroughout onstrategy.business aspartofdelivering beingundertakenacrossand initiatives the variousprograms focusonthe an active The Board alsomaintain anditsCommittees
Metro Australia LOCATION *The Nomination Committee is comprised of two Board directors, two members of the Appointments Council and two independent non-members. non-members. only. independent two and directors Board the Council of profile the Appointments the of reflects table members This two directors, Board two of comprised is Committee Nomination *The Table 5:Board mix skills Regional Australia Regional International Academia SECTOR Public practice Public Government Large firm Large Large listed Large Not-for-profit Financial services Financial INDUSTRY Consumer Industrial Services technology Telecommunications/ Current executive EXECUTIVE/NON-EXECUTIVE Practising accountant Practising Non-executive director Board Chair Committee Chair Committee acumen Financial/commercial EXPERIENCE GENERAL Leadership Public relations/media Public Marketing/communications Human resources Legal/regulatory management Organisational Business development Business Project management Project Change management Change Risk management Risk Stakeholder management Policy development Advocacy organisation governance Member-based Government relations Corporate governance
BOARD 10 10 10 10 10 10 10 8 6 9 5 5 7 8 5 9 5 6 4 9 4 9 5 9 9 6 6 7 8 9 9 8 9 9 8 9 AUDIT RISK AND COMPLIANCE 4 3 5 3 3 4 4 2 4 2 3 2 4 2 4 3 5 5 5 5 5 3 3 4 5 5 4 5 5 5 5 5 5 5 5 5 FINANCE FINANCE POLICY AND AND 3 3 5 2 2 3 5 4 4 4 4 2 5 2 5 2 5 4 4 5 5 3 4 4 4 5 5 5 5 5 5 4 4 5 4 4 ENGAGEMENT MEMBER 5 4 4 3 3 4 4 2 5 3 2 3 5 1 5 3 5 5 5 5 5 3 2 3 4 5 4 5 5 4 5 4 5 4 4 5 NOMINATION 2 1 2 2 1 2 1 1 2 1 1 1 1 0 1 1 2 2 2 2 2 1 1 1 2 2 2 2 2 2 2 2 2 2 2 2 * REMUNERATION AND CULTURE PEOPLE PEOPLE 4 3 4 2 2 3 4 2 5 2 3 1 5 3 5 2 5 4 4 5 5 3 3 3 3 5 5 5 5 4 5 3 4 4 3 4
27 | CPA Australia Integrated Report 2019 28 | CPA Australia Integrated Report 2019 it remains effective andreaches largest the possiblenumber Board forthe be established outreach program toensure that during2019.meetings will In2020,asetofformal guidelines RobynErskine, alsoundertook41 Engagement Committee, collectively.total of85meetings Member TheChairofthe andChinAikWongMerran Kelsall alsoundertakinga during2019,meetings twoDeputyPresidents, the with President andChair, undertook78separate PeterWilson inwebinarsandteleconferences.participating andeventsor meetings attending either membersandstakeholders, with interactions inmore participating collectively 310 than program in2019, Board with directors The Board itsextensiveoutreach continued (2018: 5.92/10 2017: 5.13/10) BOARD COMMUNICATIONS CONNECTING WITHMEMBERSAND STAKEHOLDERS Boardthe onstrategicissuesandopportunities. The CouncilofPresidents plays avaluablerole inadvising Board,Councils andthe viewsofmembers. drawingonthe of Presidents whoensure Divisional two-wayengagementwith Presidents Council toformthe ofeachCouncil cometogether Each CouncilelectsaPresident andDeputyPresident. The on 1January2020. CPA terms begantheir Update.Newlyelectedcouncillors results the 21 Octoberwith announcedon30Octobervia periodtookplacefromThe voting 30Septemberto were elections 59 newnominations, heldin11Divisions. 25renominations13 DivisionalCouncils,including and 84 membersnominatedfor47vacanciesacross the Division.In2019, isheldinthat vacant, anelection atotalof numberofpositions forCouncilexceedsthe of nominations each yearviaCPA website.Where Updateandthe number the toCouncilismadeinAugustof forelection for nominations DivisionalCouncil.Acall Members ineachDivisionelecttheir localarea.to membersintheir aredevelop bespokeeventsthat relevant andbeneficial increased to investmentinDivisionsandsupportedthem groundwork conductedbyDivisions,in2019 Board the Inrecognition institutions. and educational important ofthe employers,government community stakeholdersincluding CPAthe relationships bybuilding designation key with organisation asthe well more broadly, promote andthey Boardan importantconduitbetweenmembersandthe as Theyare designation. integrityofthe and maintainingthe localsupportforCPAengagement, generating Australia Divisional Councilsplayavitalrole infosteringmember Greater China,Malaysia,NewZealandandSingapore. asEurope, aswell each stateandterritoryinAustralia status. CPA nowhas13 Australia onein Divisions,including Territory,Northern NewZealandandEurope Divisional with CPA byaffording Australia branches ofthe existing the The Board brought structure consistencytothe of SUPPORTING DIVISIONALCOUNCILS 6.34/10
are 120 reported onpages 124. to disclosures ofdirector andkeymanagementpersonnel Detailed Constitution. pooled amountassetoutinthe Board tothe Remuneration in2019 remained the within BOARD REMUNERATION governance andare bestinterests inthe ofmembers. recommendationsthese whichstrengthen organisation’s the CPA workinassisting diligent for their toimplement Australia now ceased.TheBoard committee membersofthe the thanks released to members, the IRIC has fulfilled its function and has final As the report hasbeensignedoffthe Board by andnow IRIC’sand acceptedthe recommendation toconcludeitswork. business-as-usual workprograms. TheBoard hasreviewed required,action orare embeddedintomanagement’s recommendations are nofurther complete,with noweither report.the IRP’s of that all issatisfied Thecommittee 29 In October2019, IRICcompletedafinalupdate the members asnecessaryinregular statementsfrom Board. the from recommendations the havebeencommunicated to respective recommendations. elements individual Inaddition, showing CPA Australia’s progress the onimplementing In December2018, IRICreleased the anupdatereport recommendations.each ofthe organisation’sand monitoringthe progress inexecuting recommendation, plans helpingtodevelopimplementation recommending Board tothe appropriate foreach actions IRIChasbeenresponsible pasttwoyears,the Over the for needsofmembers. meetthe to better operations and enhance itsgovernancearrangements providedtogether aframeworkforCPA to Australia The final report contained29 which, recommendations 2017 andafinal that year.report on30Novemberof preliminaryhanded downtheir report on14September ofrecommendationsimplementation from IRPwho the tooverseethe acommittee October 2017wastoestablish firstactsofCPAOne ofthe Australia’s newBoard in INDEPENDENT REVIEWIMPLEMENTATION COMMITTEE our memberengagementsurvey. improvements area inthis asshownthrough results the of Boardand the tosee memberscontinue ispleasedthat members through announcementsaftereachBoard meeting of members. The Board alsocommunicatesregularly with • • • • including: andkeyelementsofCPAduties Australia’s strategy The Board tofocusonitsgovernance continue will MOVING FORWARD Member outreach Culture Brand strategy strategy Education
value members’ and needs that is relevant and meets professional development produce and education development Education and professional and pricing relevance quality, of terms in member CPA Australia a being of value the provide and demonstrate Member value member experience andconsistent positive a provide to Inability Member experience RISK • • risks.Thisincludes: forthese appetite remaining Board’s the within approved while achievement ofobjectives and treat risksrelated tothe management andtoidentify, assess CPA onrisk tobealigned Australia Boardthe andmanagementof statementenables The riskappetite meet riskappetite. approachstrategy andthe takento to acceptoravoidinpursuitofour amountofriskwearethe prepared articulates statementthat risk appetite CPA hasaBoard-approved Australia OPPORTUNITIES RISKS AND Table 6: and Risks opportunities reporting stakeholders onriskstoall Providing monitoringand timely right controls appropriate reward, leveragingthe takingofappropriatethe riskfor reflectMaking decisionsthat expectations – Failure to to –Failure – Failure to to –Failure
–
long-term to Medium long-term to Medium to Short TIME FRAME medium-term
• • • including: strategy andpractices itsriskmanagement consolidate enhanceand tofurther continued Throughout 2019, CPA has Australia • • • continuity tostrategicobjectives continuity Improved ofbusiness alignment implemented in2020 systemtobe and compliance Set upofanautomatedrisk in 2018 approved management framework risk ofthe Implementation regulatory requirements times. atall corporategovernanceand Satisfying managementofrisk the improvingContinually andmaturing organisationthe isembeddedthroughoutthat Creating asoundriskculture to members. content and learning deliver to ability our enhance New digital technologies that learning. of future the reflect to strategy education A new thought leadership. thought resources Increased advocacy divisional support. CPA Program and increased the through support greater offer, CPD free including an enhanced members to offer we value the increase to services and products in Investing OPPORTUNITY centred on member needs. strategy website A new member service. deliver to ability our enhance New digital technologies that member experience. toproject enhance the transformation Service to increase our
STRATEGIC GOAL GOAL STRATEGIC for the organisationfor the anditsmembers. tocreate riskonourability of that value consequences risk occurringandthe ofthe likelihood ofthe consideration order hasbeendeterminedby strategy inorder ofpriority. Priority enterprise risksmostrelevant to key The tablebelowshowsthe ENTERPRISE RISKS • new andemerging risks. formalassessmentofexisting, for the andanannualworkshop Committee RiskandCompliance Audit, to the isviaquarterlyreportingactivities Board oversightofriskmanagement ISSUES MATERIAL RELATED M11 M12 M2 M7 M1 M6 M3 M10 M13 M5 M4 M9 M4 M10 M6 M5
29 | CPA Australia Integrated Report 2019 30 | CPA Australia Integrated Report 2019 perception and reputation health, brand CPA Australia’s Failure to maintain Brand and reputation *Short-term impact is likely to occur in the next one to two years, medium-term within two to five years and long-term in five years or more. or years five in long-term and years five to two within medium-term years, two to one next the in occur to likely is impact *Short-term frameworks corporate governance to maintain appropriate Governance availability of data/systems –Loss systems and Data capability and culture CPA Australia to aligned talent develop and retain attract, to Failure People and culture – RISK Table 6: (continued) and Risks opportunities • • MOVING FORWARD and awareness planning Enhancing businesscontinuity including: management strategyandpractices ofanenhancedrisk implementation Continuing o o o o requirements Policy management. Policy Incident management management obligations Compliance monitoringand Risk identification, reporting – Inability – Inability
–
Short to to Short medium-term Short to to Short to Short TIME FRAME medium-term medium-term Short-term
risk, audit andrisk, compliance. as such governance of areas in key investment Continued markets. key in our strong brand perception thatactivities capitalise on in investment Continued CPA designation. the of value the highlight tonew brand strategy a in considering We are OPPORTUNITY with best practice. best with consistent and purpose for fit to ensureframeworks they are governance key our review We are continuing to critically to members. deliver content and learning to ability our enhance digital technologies that new in investing We are improvement. our people believe require areas the in investing be will we survey, culture our of results the Following
STRATEGIC GOAL GOAL STRATEGIC ISSUES MATERIAL RELATED M8 M5 M4 M3 M1 M11 M8 M5 M2 M9 BRAND PERCEPTION a mix ofstrategicandtargeted sponsorships. ourstakeholders,andundertaking channels toconnectwith andsocialmedia variouscommunication utilising institutions, organisations, studentsandeducational engagingwith relationships and bodies accounting international with employerandindustrysectorgroups,members with building through bringingtogether including arangeofactivities We reputation enhancethis ourbrandprofile bybuilding andreputation technicalexpertise by the ofourmembers. CPAThe valueofthe isgenerated designation Australia and advocacy work to enhance the CPAand advocacyworktoenhancethe designation. We havealsoinvestedconsiderable resources intoourpolicy of ourbrand. providewill the perception along-termplantoinfluence brandandwearethe consideringanewbrandstrategythat In 2019, wehaveundertakenworkonaproject totransform ENHANCING OURBRAND rising to 6.88. brandalsoimprovedMember trustinthe againin2019, marketplace. the Australian in first-choicedesignation the 2017and2018 with consistently andCPA remaining Australia strongly inkeytarget tracking brandhealth marketswith In2019,general public. CPA againperformed Australia perception members,employersandthe potential with survey. We alsoundertakeaseparatestudyonbrand research ourmembersthrough with memberengagement the To perception monitorthe ofourbrand,weundertake (2018: 2017: 6.34/10, 5.53/10) BRAND A TRUSTWORTHY REPUTATION BRAND AND 6.88/10 BERNARD POON FCPA BERNARD enjoy andconnect.” events.People wanttolearn, the whoattend those People seeCPA asabigfamily, Australia especially China. “Theeventshelpedme broaden mynetwork. brand andreputation inMainlandChinaandGreater have playedapivotalrole astrong inestablishing hiscareerin supporting events the andnotes that Bernard credits CPDeventsrunbyCPA Australia tolearn.” I needtokeepupandcontinue ofanaccountantisalsochangingso expectation profession isevolving.Thegeneralpublic’s research. accounting “Theworldischanging,andthe MemberJourneyMapping by membersinthe touchpoints ofaprofessional identified designation and professional development–twoparamount Bernard importance ofreputation touchesonthe he isencounteringinhiscurrent career stage, challenges Likewise, whenspeakingaboutthe support. for additional professionally andwere lookingtoCPA Australia were they that tokeepactive lookingtocontinue midandlatecareermembers inthe stageindicate Mapping research inChina.Theresearch saw 2019the of findings the with MemberJourney Bernard’s future professional are intentions aligned profession.” toserveinthe continue Hong Kongis60andIaminmyearly50s,butwill no signsofslowingdown.“Theretirement agein Bernard hascarvedouta commendable career, with Since firstcommencingatErnst& Young asanintern, Services Leader, &Young Ernst Partner andTransaction andAdvisory
31 | CPA Australia Integrated Report 2019 32 | CPA Australia Integrated Report 2019 practice campaign, sponsorship and other activities. activities. campaign,sponsorshipandother practice (FigureOur investmentinmarketing ofCPAs, nextgeneration anddevelopthe toattract 5)includesadvertising public the CPA Australia’s investmentfor2019 marketing compared was$9.8million, in2018 to$12.9million (refer Note6onpage105). MARKETING INVESTMENT FIGURE 5: INVESTMENT IN MARKETING • • MOVING FORWARD INTHEBLACK will be further enhanced to deliver content that aligns with memberneedsandinterests with aligns contentthat enhancedtodeliver befurther INTHEBLACK will CPA the investmentinourbrandstrategytoposition Continued future forthe designation MARKETING INVESTMENT 6% Other 2% Brandactivity 3% Businessdevelopmentactivity 4% Memberengagementactivity campaign practice 7% Public 20% Sponsorships 57% Advertising Ethics StandardsEthics Board forAccountants(IESBA). and AssuranceStandards Board International (IAASB)andthe StandardsAccounting Board Auditing International (IASB),the standard boards, setting International the including and regulations. We workofmanyinternational supportthe of Professional industrystandards Conductandapplicable detailed inCPA Australia’s andBy-Laws,Code Constitution interestpublic andare required obligations the tocomplywith CPA membershavearesponsibility Australia toactinthe 6.31/10 PUBLIC PRACTITIONER SATISFACTION STANDARDS AND PROFESSIONAL PUBLIC INTEREST clients, including small business clients. businessclients. small including clients, provision the impacting negatively ofadvisoryservicesto of increasing regulation requirements andcompliance are andregulatorylegislative framework. Nearlytwodecades services asadirect result increasingly ofthe complex considering nolongerproviding one ormore advisory athirdimpact, with ofprofessional accountantssurveyed Importantly, italso brought howitishavingan tolife associatedcosts. andtheir obligations compliance through clients advisory servicestotheir extensive significant impactonprofessional accountants providing The report regulatory confirmedthat burden ishavinga advice andservicesfrom accountants. experienceswhenseeking a separatesurveyabouttheir enterprises(SMEs)whorespondedto medium-sized to viewsofmoreand the 1000consumersandsmall than focusgroups in-depth practice, public 60 members, with completed bymore 600membersworkingin than The comprehensive report isbasedonasurvey interest. public andsupportsthe clients benefits their to provide affordable advicethat independent,quality planning advice,toenableprofessional accountants provision taxandfinancial ofadvisoryservices including review regulatory ofthe governthe frameworksthat Report. Thisreport needforaholistic the highlighted In September2019, wereleased RegulatoryBurden the > REGULATORY BURDENPROJECT SUMMARY OF REPORT MEMBERS VIEWED VIDEO3400
(2018: 5.85/10; 2017: 5.27/10) to trend upwards butremains members. ofother belowthat continues practitioners ofourpublic rating The satisfaction reviews.quality are certificate practice hold apublic subjecttoperiodic encourage aculture memberswho all ofcompliance, interest public ourcommitmenttoactinthe with andto regionsall where Inaccordance ourmemberspractise. regulators with and consultation in andindustrybodies throughand implementation, engagement,advocacy relevant profession, tothe andpromote adoption their We standards andnational helptodevelopinternational publications andregionalpublications papers. AccountantsDailyandseveraltrade The Australian, FinancialReview, Australian issues raisedincludedthe report coverageofthe posts.Media the liking andthe morewith sharingor 9200memberscommenting, than 30,875 uniquememberswere reached viasocialchannels, worktoourmembers, importanceofthis the Highlighting services to their clients. services totheir regulatorymultiple frameworkstoprovide advisory whereharmonise obligations membersoperateunder focus torevisit regimes licencing definitions, andto forchange.Thethreeadvocating haveaclear bodies in advisory servicesandpledgedtoworktogether formorecalling efficient regulatory frameworksfor threeThe CEOsofall organisations released avideo and policy-makers. government choice oftrustedadviserwith businessesfromconsumers andsmall their provision ofaffordable, adviceto quality regulatory enablethe frameworksthat needtobuildefficientto advocatethe havecome together associations and other report,the CPA IPA CAANZ,the Australia, by needforchangehighlighted Given the
33 | CPA Australia Integrated Report 2019 34 | CPA Australia Integrated Report 2019 focus on their main activity of running their practice.” ofrunningtheir mainactivity focus ontheir to beable practitioners make iteasieronthose burdenand ifsomeofthis canbereduced, itwill are are they enoughchallenges moment facingatthe “There practitioners. forpublic piece ofinformation profession, accounting on the viewingitasacritical CPA Australia’s RegulatoryBurden have Reportwill impactthat aboutthe isoptimistic Justin area.” particular manage that stagewhereto the employeeto wehavea full-time business. “Ourregulatory burden isquiteonerous, hashadabigimpactonhis andthis up todatewith regulations that noting have beendifficult tokeep Justin’s role doesn’t challenges, comewithout affairsin their life.” makesanimpactintheir that yougetwhenassistsomeone satisfaction is the areyour clients justasimportant.Thegreatest thing isdifferentclient relationships andthe youbuildwith youdotaxreturnsthink everyday, day, all butevery nature multifaceted the ofhisrole. “Peopleprobably highlighting practitioner He isapassionatepublic and professionally helpmegrow.” relationshipnot havehadthe ittopersonally with CPAthe Iwould brandanddesignation, Australia hehasbeenabletoaccess.“Without information throughmany opportunities networkingandthe CPA hascreated branchinBendigo Australia hislocal beinginvolvedwith He notesthat was doing.” It wasrecognition peoplewere that whatI noticing profession andacknowledgment ofwhatIwasdoing. career to date.“Itwasquiteabigmomentinmy wasakeymomentinhis Divisional Councillor beingvotedbyhispeersasaVictorian For Justin, Partner, Strategem JUSTIN GORDON FCPA QUALITY CONTROLMANUALTOOLS RISK MANAGEMENTFRAMEWORKAND date with industrystandardsdate with increasing. upto forkeepingthem ourrating toolsuseful,with these We are are practitioners public pleasedtoseethat finding comprehensive control quality documentation. creates then ofabutton aclick information, and compliant providing andprocedures. suggestedpolicies Usingthis through practitioner the requirements the standard, ofthe Framework Tool, process itisaneasy-to-follow guides that ControlQuality RiskManagement forFirms.Similartothe APES320: tocomplywith practice members workinginpublic ControlThe Quality ManualTool wasdesignedtoassist tool. used the from feedback positive have that practice membersinpublic DesignAwards Melbourne in the andhasreceived strong The RiskManagementFrameworktoolwasawarded Silver • • • by: their practice benefits management frameworkthat createsmember then andcomprehensive acompliant risk the tool,each Bycompleting their practice. within identified strategiesrelevantrisk mitigation nature tothe risks ofthe requirementsthe standards, ofthe providing suggested A step-by-stepprocess through practitioner guidesthe project.incorporated intothe memberswas with for Firms)andextensivetesting Board (i.e.APES325:RiskManagement (APESB)obligations Professional Australian comply with Standards andEthical to practice designed toassistmembersworkinginpublic created aRiskManagementFrameworktool.Thetoolwas resources CPA practitioners, availableforpublic Australia toolsand toenhancethe ourstrategicinitiative with In line STANDARDS KEEP ME UP TO DATE WITH INDUSTRY > Providing asimpleguidedprocess. Reducing riskforamember’s practice individual APES325easierandfaster with Making compliance 1600 MEMBERS1600 ACCESSING THE TOOLS 7.0 8/10 8/10 7.0 (2018: 6.77/10; 2017: 6.24/10) PROFESSIONAL STANDARDS SCHEME to help firms implement the help firmsimplement report findings. to guidesandrunaseriesofworkshops develop practical torelease continue In 2020,wewill eLearningmodules, • • the of findings to supportthe research including: We alsoreleased eLearningmodules twocomplimentary future.for the enablememberstobuildasustainablepractice will that profession accounting public andproposes fourthemes need tomeet.Thereport explores keyforces reshaping the ensure future the demandsthat weunderstandthe firmwill andmorepractitioners 1000consumersandSMEsto than The research involvedinsightsfrom more 500public than upforsuccess. practices strategic decisionstosettheir to provide adviceformembersonhowtomake practical My Firm.Future isaresearch-based project designed MY FIRM.FUTURE professional standards. professionaccounting encouragingimproved bycontinually consumers andprofessionals by preserving ofthe viability the The Scheme’s are objectives toprotect, improve andhelp ofregistration. orcondition PII aspartofastatutorylicence whoare practitioners for those required toholdadequate Accordingly,legislation. liability Schememaynotlimit the provision servicesifthere accounting ofpublic isnocontrary applytoaclaimrelating capwill liability A limited tothe servicesprovidedon the impediments. andanylegislative However, depend will liability limited ofthe application the toparticipate. certificate andhaveacurrentdesignation practice public orfull limited services,holdaCPA accounting conduct public orFCPA who practitioners public enableall The newSchemewill in accordance ourBy-Laws. with are practitioners public schemethat in the required tohold levelofprofessionalto the indemnityinsurance(PII)setout civilclaims maylimit The Schemeisalegalinstrumentthat across on23December2019. Australia forafive-yearSchemewhichcommenced application On 21June2019, PSCapproved the CPA Australia’s FIVE-YEAR SCHEMEAPPROVED Segmenting your client base. yourclient Segmenting Engaging clients • • • practitioners: support forpublic review report. offer Thistoolwill improved following the the quality minutesand the exitmeeting paper file,populate reviewer’s create tool.Thistoolwill reviewer’s the working digital quality the the developmentof be The finalphasewill member.the moreupdated with oncereceived accurateinformation from certain dataandenabledourdatabasetobeautomatically form reduced requirement the membertopopulate forthe reviewa quality from CPA ofthe Thedigitisation Australia. electronic formswhenmembersrespond toarequest for the developmentof The firstandsecondphasesinvolve paper-based existing the associated with archive system. memberexperienceandtoreducebetter significantcosts the review quality the has beendigitising program toenablea review system.Through aphasedapproach, CPA Australia We are reducing burden the ofourpaper-based quality DIGITISATION OFTHEQUALITYREVIEWPROGRAM consistent informandcontent. review minutesandquality exit meeting of the report are Ensurethe form the memberin to finaldeliverables the when changestostandards occur CPAAllow to makeamendmentsefficiently Australia andcorrectapplicable standards Ensure reviewers that review eachmemberagainstthe
35 | CPA Australia Integrated Report 2019 36 | CPA Australia Integrated Report 2019 TOTAL Total complaints resolved (including complaints from previous years) received were they year the in resolved Complaints Internal reprimand Internal TOTAL reports media external of aconsequence as initiated Complaints resolved without a formal investigation. The above note explains the increase in complaints which are initiated as a consequence of an ‘internal’ referral. ‘internal’ an of aconsequence as initiated are which complaints in increase the explains note above The Conduct. Professional to referred are any obligation CPD whereby their change breaching be to By-Law 2018 found January members the to due is 2019 to 2018 in investigated complaints relevant of number in increase The Notes: Table 8: Source of relevant complaint investigated Complaints resolved dispute. afee primarily is or evidence, member a not is available who the on person a supported concerns not is lodged, complaint, is the of date the complaint to the prior time the at years five than more occurred that amatter defined as concerns that one is complaint unviable By-Laws An the in ‘unviable’. considered not are they is, that investigated, formally complaints Relevant/viable all to complaints received refers phone or email. Total complaints received Notes: Relevant received complaints Total received complaints Table 7: Complaints Details oncomplaintsreceived outcomesare andtheir tablesbelow. detailedinthe members tobeheard, evaluatedand,where appropriate, has aformalprocess enablescomplaintsaboutits that To ensure standards, membersupholdthese all CPA Australia regulations.Accountants andapplicable forProfessionalBy-Laws, APES110CodeofEthics outinCPA spelt obligations Australia’s and Constitution Membership ofCPA tothe meanscommitting Australia PROFESSIONAL CONDUCT Determined by disciplinary tribunal (not restricted to 2018/2019 to complaints) restricted (not tribunal disciplinary by Determined Table 9: Resolution of complaints Complaints received from regulatory authorities External complaints from the public public the from complaints External units business CPA Australia other and review quality from complaints Internal Complaints concluded through formal professional investigation conduct refers to the viable complaints investigated and either closed or referred to a disciplinary tribunal for hearing, in addition to those those to addition in hearing, for tribunal adisciplinary to referred or closed either and investigated complaints viable the to refers refers to all complaints received (phone, email or complaint form), including those formally investigated and those dealt with by by with dealt those and investigated formally those including form), complaint or email (phone, received complaints all to refers against members *
acknowledging the public interest public acknowledging the concernofcomplainants. strivingtopreserve times at all rightsofmemberswhile the are thoroughly investigated mannerand timely inanimpartial, to ensurehas anobligation complaintsaboutmembers that CPA interest public hasundertakentoactinthe Australia and confidentiality,the righttoappeal. independence and rightforamembertoputforwardfairness (the case), their processes are principlesofprocedural guidedbythe anddisciplinary taken.Investigations action disciplinary 2017 2017 2017 223 667 196 568 186 673 196 124 64 37 0 8 -
2018 2018 2018 567 212 169 461 122 571 135 212 29 79 11 5 -
2019 2019 2019 300 331 578 300 623 106 134 274 471 44 30 27 16 TOTAL TOTAL Failure to comply with request/determination from CPA from Australia request/determination with comply to Failure court criminal or civil body, statutory any by finding Adverse Complete a quality review aquality Complete Undertaking Fine Become insolvent/bankrupt Become Admonishment Severe reprimand Training and development Conduct derogatory to or not in the best interests of CPA Australia or its members its or CPA of Australia interests best the in not or to derogatory Conduct Table 10: Complaints heard at tribunal a disciplinary Suspension of membership Table 11: ordered Sanctions by disciplinary/appeals tribunals * New data item introduced for 2019. for introduced etc. item data * New certificate, amedical of monies, repaid having of evidence provide to readmission. for undertakings application to any to limited prior not is but criteria include may certain This meet to required often are members imposed, penalties the to addition In Notes: Standard of professional care regulations applicable Conduct, Professional of Code By-laws, Constitution, of Breaches Forfeiture of membership • • • • • MOVING FORWARD practice reviewpractice andfuture state design reviewAn updatedquality program abest following for marketsbeyondAustralia MyFirm.FutureAdapting content localised with associatedproductthe suite MyFirm.Futurethe report andtocomplement insightsfrom the following clients, services totheir memberstoprovidesupporting more value-added A newseriesofadvisoryeLearningmodules from research the learnings the to supportmembersinimplementing My Firm.Future guides tobereleased practical on from ourregulatory burden work advocacyforreform forfurther foundation following isbeingdeveloped,formingthe platform A policy *
2017 2017 46 65 29 22 15 14 5 8 6 1 3 1 2 3 2 -
2018 2018 35 52 20 10 13 11 5 5 3 2 1 8 2 7 - - 2019 2019 60 33 10 19 12 13 5 3 1 5 8 2 7 3 5 -
37 | CPA Australia Integrated Report 2019 38 | CPA Australia Integrated Report 2019 2 • • • OBJECTIVES PROFESSION PROFESSION THE ACCOUNTING LEAD THEFUTUREOF professional standards while ensuringhigh employment options and skills develop their professionals to wanting forbusiness and pathways Provide opportunities profession accounting the through future the changes to and toolstosupportmembers Develop strategies,training futurefor membersinthe profession implications andthe accounting changes inthe emergingUnderstand the Thought leadership – 6.69/10 leadership Thought PERFORMANCE “GLOBALISATION HAS LED TO FAST AND COMPLEX CHANGE. IT’S IMPORTANT TO EVOLVE AND UNDERSTAND WHAT’S GOING ON OUTSIDE OF OUR INDUSTRY, AND TAKE LEARNINGS FROM BEST PRACTICE AROUND THE WORLD.” William Young CPA, Executive Director – Head of Australia, COS Capital CPA Australia Integrated Report 2019 CPA 39 | 40 | CPA Australia Integrated Report 2019 • • key components: The new program, availablefrom January2020,hastwo the future.successful firmof neededtooperatea management skills business asthe aswell practice to public requirementstechnical andethical specific streamlined andflexible.It provides the futurethe andismore accounting ofpublic Program Practice The newPublic focuseson grow asuccessfulbusiness. member’s career and goaltoestablish needsandtheir approach,been aone-size-fits-all toa oftennotaligned hastraditionally certification practice topublic The pathway A MODERNPUBLICPRACTICE PATHWAY inadata-drivenenvironment.for operating howtoprepare including forauditors, and implications insights , whichhasafocusongainingpractical auditing projectAnother inexternal tobefundedisDataanalytics measurementand deterSDGprioritisation, andreporting. framework. Theresearch facilitate factorsthat examinethe will SDG firms:Developinganinnovative in Australian reporting CPA fundprojects will Australia SDGgovernance including governments, regulators In2020, setters. and policy profession,wider accounting globalbusinesscommunity, the is relevant toCPA toourmembers,the instructive Australia, research applied encourage andsupportquality worldwide that annual research grantsprogram. TheProgram’s aimisto The GlobalResearch Program Perspectives isCPA Australia’s RESEARCH INTOTHEFUTUREOF THEPROFESSION (6.69/10)more ouractivity rating inprevious highlythan years. in2019leadership activity through andmembershavenotedthis futureadvance the profession. ofthe We increased ourthought professional other and partneringwith to bodies accounting profession developmentofthe the inunder-represented areas profession partners,supporting byourselvesandwith both research byconducting to dothis intoissuesfacingthe landscapewhichorganisationsand the operatein.We look community ofthe changingexpectations the inmeeting lies ofourmembersandCPA sustainability A keytothe Australia (2018: 6.29/10; 2017: 5.71/10) THOUGHT LEADERSHIP ACCOUNTING PROFESSION LEAD THEFUTUREOF members upfor success. andoutcomedriven focustohelpset apractical with Program Practice Public workshop–atailored workshop, requirements practitioner tobecome apublic greater flexibility. the technicalandethical Itfocuseson learning formatisstreamlined andon-demand,providing Program Practice Public newonline eLearning–the 6.69/10
from leaders’ career journeys. future their graduates discuss career andlearn aspirations business professionals, andisauniqueforumwhere andfinance graduateswith accounting for connecting business leaders.Theluncheon isdesignedasaplatform young professionals senior opportunitytonetworkwith the year,Now initsfourth Future the Leaders’Luncheonoffers 100guests. than LondonStockExchange,welcomingmoreLuncheon atthe In November, annualLondonFuture wehostedthe Leaders’ FINANCE LEADERSOFTHEFUTURE successful and compliant business. a successful andcompliant ensure systemsandprocesses their inrunning supportthem toundertakeapeerreview alsohaveanoption will tohelp they certificate, practice public Once membersobtaintheir to watchvialivestream. andmoreAustralia 130peopleregistered than morewith eventsin 350peopleattending than Successful launcheventswere heldacross Australia • • • • • areOur objectives to: cultures.Strait Islanderpeoplesandtheir for, of,AboriginalandTorres andunderstanding members todevelopandfosteragenuinerespect environment ouremployeesand andseekfor both We are tocreating committed aninclusive Australia. by Reconciliation Australia’swith FirstPeoplesandisendorsed our commitmenttoreconciliation formalises to launchourinauguralReflectRAPwhich inclusion anddiversity, CPA wasproud Australia Board’sAs partofthe tosupporting dedication RECONCILIATION ACTIONPLAN Reconciliation plan. Reconciliation inthe outlined initiatives to implementthe andmaintainaRAPworkinggroupEstablish awareness ofhistoriesand communities Torres StraitIslanderpeoples’calendarstopromote Celebrate significanteventsinAboriginaland profession accounting the for AboriginalandTorres StraitIslanderpeoplesin Educate, promote andsupport career opportunities and Torres StraitIslandermembersandemployees Promote ofourAboriginal inclusionanddiversity the and achievements Torres StraitIslanderpeoples,cultures, histories Build organisational awareness ofAboriginaland
PARTNERING WITHTHEPROFESSION Group.and OmniconMedia Sony MusicEntertainment,Adstream, Affinity Water, Emirates Group, Goldenberg HehmeyerLLP, HSBC,Huawei, This year, companiesrepresented includedBarclays, and a digitised mindset. and adigitised more strategicleadership businessleadersequippedwith eraandfoster digital inthe education blueprint ofaccounting explore jointly andcommunication, mutual cooperation the proceed will Institute Accounting Beijing National todeepen future, Inthe education. accounting CPA andthe Australia affect will transformation on howdigital professional wherein Melbourne, discussions tookpartinin-depth they visitedourheadoffice Institute Accounting Beijing National In November, agroup ofseniorrepresentatives from the • • • • • • • • • • • agreementspathway professional following the with organisations: In 2019, recognition weannouncedanumberofcollaboration, and broaderthe businesscommunity. representing bodies andother institutions interests the of Accredited firstforeign asthe CPDprovider. Professional – Commission ofPhilippines Regulation Memorandum of Understanding Accountants – Public ofCertified Sichuan Institute Memorandum of Understanding ofAccountants–Extensionthe Malaysian Institute of Understanding –RenewalofMemorandum ofVietnam State Audit agreementCooperation – UniversityofManagementinCambodia National agreementRenewal of cooperation Lao ChamberofProfessional – Accountants and Auditors AgreementMember Pathway AccountantsofKenya– Public ofCertified Institute agreementof EconomyandFinance–Renewalcooperation Ministry Councilofthe Accounting National andthe Auditors Accountantsand Public ofCertified Kampuchea Institute agreementCooperation Hanoi UniversityofScienceandTechnology – inVietnam agreementand Business–Cooperation SchoolofEconomics andthe UniversityVietnam British Agreement fiveyears foranother CPA Ireland MutualRecognition – Renewalofexisting partnerships with accounting bodies, educational educational bodies, accounting partnerships with tobuildour wecontinue important that need tobeableworkacross itis jurisdictions, As careers becomemore mobileandaccountants • • MOVING FORWARD associated with yourpersonalbrand.” associated with designation havingthat comesalongwith trust that valueofbeingaCPA.Sarah isclearonthe “It’s the forme.” wasabighighlight sothat amount oftime, “to seehowfarCPA short hascomeinthat Australia contribute directly andfeelproud, initiative tothe CPAexperience with herto asitallowed Australia ofSarah’sThe ReflectRAPhasbeenahighlight commitment toreconcilliation.” result will Ibelieve that from makingthat reconciliation journey, opportunities endless andthe comesfromthat CPA comingona Australia twointertwinedtogether,how those impact the core servicesthrough reconciliation tothe journey, as arepresentation ofCPA “From Australia: the ReflectRAP.as partofthe Sarahcreatedthe artwork Opportunity”,apiececreated “Endless artwork titled ofopportunityisreflectedThe theme inSarah’s are CPA the completing designation.” variety ofdifferent aspectsyoutouchonwhen it hasgivenmeastrong anda ofskills foundation professional Ifeellike development opportunities. professional career. “Itreally comesdowntothe abroadwith havesupportedher that rangeofskills beingaCPA that and believes hasequippedher varietyofherroleSarah lovesthe inoperations Operations Manager, PwCIndigenousConsulting CPA RICHARDS SARAH stacked to form certification stacked toformcertification for professional canbe developmentcoursesthat members togainvaluable,industry acceptedawards Considering amicro-credential framework toenable Program Practice newPublic ofthe Rollout
41 | CPA Australia Integrated Report 2019 42 | CPA Australia Integrated Report 2019 3 • • • OBJECTIVES EXPERIENCES AND ENGAGING WITH PERSONALISED PROVIDE MEMBERS member experience andengaging a personalised Develop aculture enables that and committees through branches divisions, support modelformembers Create amore effective local solutions digital by data,technologyand enabled needs andfeedback, member based onindividual and tailored communications Improve memberexperience Member retentionMember –98.1 cent per –6.63/10 satisfaction Member 166,166 members PERFORMANCE Analysis Manager, EyeInstitute Vision Grimes CPA,Scott FinancialPlanning& Management Accountant, CPA Australia LakminiCPA,Samantha Strategic OVER TIME.” AS ITCHANGES WHAT THEYNEED ON UNDERSTANDING WE’RE VERY FOCUSED PROFESSIONALLY, PROGRESS “AS OURMEMBERS
43 | CPA Australia Integrated Report 2019 MEMBER ENGAGEMENT AND SATISFACTION
Member engagement research is a Key themes from the research included: key way in which we track the quality • Members acknowledged that there Reputation metrics have seen of the relationships we have with had been efforts by CPA Australia significant improvement, our members. The current study over the past year to improve. was undertaken in 2017, 2018 and particularly in Australia, but This was reflected in ratings of key 2019 through a third-party provider members continue to want metrics which continued to trend (Forethought). In 2019, this consisted to see more work done on upwards in 2019 of a 20-minute online survey which products and services that will received a 5.7 per cent response • Reputation and future career help them in their careers. rate (n = 8507 members). development were still the most important drivers for member Performance on satisfaction and value satisfaction. by designation, age and country/region for 2017, 2018 and 2019 are shown below.
FIGURE 7: SATISFACTION BY DESIGNATION FIGURE 8: VALUE BY DESIGNATION