- Originally established as the “Incorporated Institute of Accountants” in 1886, CPA Australia boasts 170,826 members in over 100 countries and regions.
- CPA Australia slashes around 10% of its 600-plus workforce amid mounting losses.
- A few top-notch executives have also departed, or plan to.
- Members of the institute express outrage over soaring fees.
CPA Australia terminates 10% of its staff
CPA Australia, the largest professional accounting body in the country, has initiated a rolling redundancy program.
They plan to reduce their workforce by 60–70 employees out of a total of 600-plus, due to substantial financial losses.
Many accountants have taken to social media to express their frustration to criticize the professional body and not just for the job cuts.
There is also an increase in CPA Australia membership fees.
Application fees, for instance, have surged from AUD 180 in 2020 to AUD 212 in 2023, while renewal fees for associates or CPAs have increased from AUD 720 to AUD 837 during the same period.
CPA Australia faces financial losses
This move comes in response to a significant financial setback for the institute, with a $31.3 million loss in 2022 following a $12.4 million loss in the previous year.
The professional accounting body has consistently posted escalating losses over the past three years, as indicated by its integrated reports.
Anticipating another loss in the upcoming financial year, the organization attributes this setback largely to the implementation of a new technology platform.
However, according to multiple reports, despite this financial downturn, executive remuneration at CPA Australia increased by 10 percent in the past year and 31 percent in the preceding year.
In the latest CPA Australia integrated report, CEO Andrew Hunter explained that the Member Management and Finance (MMF) tech project, managed by Deloitte consultants, is a “major infrastructure project” aimed at upgrading technology to meet the demands of the digital age.
The project is scheduled to go live in mid-2023. However, internal sources suggest that it is behind schedule.
He acknowledged in his statement that due to the substantial investment in the MMF program, CPA Australia incurred a deficit of AUD 31.3 million in 2022, with the majority of the MMF cost being expensed during that financial year.
Although the organization is aiming for a breakeven result in 2023, the further investment required to complete the project may lead to a deficit of AUD million to AUD 5 million.
Closing…
The CPA Australia course holds widespread recognition in Australia, providing individuals with a license to pursue a career as a practicing accountant. But currently, it is facing an increased distrust among members, and rightfully so.
Critics express dismay over the termination of CPA external examiners without prior notification.
But that’s not the end of adversities for the institute.
A high-profile executive recruit resigned after just four months, leaving the revenue-critical Learning and Innovation group without clear leadership.
CPA Australia’s president is also departing after serving the maximum two terms. The current turnaround CEO Andrew Hunter, will also be leaving next year.
The multiple leadership departures have left the Learning and Innovation division at CPA Australia, unprepared.
The report is acquired from Accountants Daily
