CA ANZ narrows losses as member revenue surges
The accounting body has posted a 10 per cent lift in earnings this past year after its 2023 finances stirred controversy among members.
CA ANZ has recorded better-than-expected financial results driven by a big increase in membership fee receipts and program enrolment revenue in the past year.
The accounting body’s latest annual report showed revenue increased $14.3 million (or 9.7 per cent) year on year to $161.3 million.
Despite posting an overall loss of $9.8 million – largely due to a downward revaluation of its Sydney headquarters – the results are an improvement on its 2023 finances, which raised eyebrows among members after a $13 million loss was reported on $147 million in revenue.
“We improved our operating margin for FY24 and delivered a better than budget surplus before tax while continuing to invest $7 million of operating expenditure in strategic initiatives,” CA ANZ said in its report.
CA ANZ, which earns the bulk of its profit through membership fees, reported an increase in revenue from membership revenue to $99 million.
It said the growth was mainly fuelled by higher subscription fees and a 1.8 per cent growth in its global membership base, which now sits at 139,162. The increase in membership revenue also follows last year’s $3.8 million increase, and a 1.7 per cent growth in members.
CA Program revenue also rebounded, rising by $5.3 million to $41 million after a dip in FY23.
Meanwhile, the body’s operating expenses increased only marginally by 2.4 per cent, with total expenses reaching $159.5 million.
It paid $89.7 million to staff, with all senior executives receiving pay rises.
CEO pay tops $1 million
The remuneration of chief executive Ainslie van Onselen increased again to top the $1 million mark, up from $940,000 last year. This included a performance-based incentive of $225,000. Group executive Vanessa Chapman received a total package of $526,197, up from $463,572.
Other expense drivers included an increase in marketing and advertising (up $1.2 million), largely due to its campaign to improve the profession's image among school and university students.
CA ANZ’s balance sheet was also hit by a significant revaluation loss of $14.5 million ($9.6 million after tax) on its Erskine Street property, following an $10.7 million ($8.3 million after tax) writedown in FY23.
The latest revaluation reduced the body’s net assets to $60.1 million, down from $70 million the prior year.
“Our 33 Erskine Street property was revalued downward to $74m, driven largely by higher interest rates and higher vacancy rates in some Sydney CBD areas,” CA ANZ said.
The annual report’s release comes ahead of its annual general meeting on 25 October.
In 2022, members voted against increasing directors’ remuneration during a virtual AGM following a public conversation about members’ dissatisfaction with what they get from CA ANZ.
A torrent of social media disapproval also greeted the body’s 2023 annual report with commenters accusing it of failing to live “within its means” by posting a $13 million loss on $147 million in revenue.
Commenters also alleged executives granted themselves pay raises but short-changed small practices.
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