RAA audited accounts

[kasper]

First up comment on the introduction and commentary - were you reading the same set of accounts?

 

1. 2015 is NOT better than 2014 from P&L - loss in 2014 was 10.5% of revenue, loss in 2015 is 11.0% of revenue

 

2. 2015 is NOT better than 2014 from a cash position - cash in 2014 $1,390,682, cash in 2015 $1,296,285, we watched $94,397 walk out the door, not "we used less than $10,000 funding our activities"

 

3. Trades and other payable increased by 13% in 2015 - business is approximately the same size therefore read it as management are not controlling payables so if we WERE paying our bills this year as last the cash position would have been another $15k worse off

 

4. Provision increase is entirely down to staff leave not being taken ... we can only expect staff to operate without holidays for a short time ... are we seeing 'improved' service from RAA office because of improvement in systems/processes OR is it just everyone is there all the time without taking leave?

 

5. The modernisation project is being recorded as an intangible asset ... Hmmmm. Is this really an asset under construction or a way to reduce our expenses in 2015 by another $65,947? I would like to see a statement from management of WHAT is the asset behind this number, if its the cost of the Ops Manual/Tech Manual or other internal policy documents I query it being held as an asset ... after all we keep hearing that they are live docs to be updated regularly. If its databases or IT programs and development done on our behalf I would like to know how much they are going to cost in total because items 1-4 above and the 'spin' put on it by management in the report give me concern.

 

And as for cost containment ... reduced costs in 2015 attach to Insurance, other expenses and depreciation.

 

Insurance is down to management control - Thank you for the $4,000 saving

 

Depreciation is not down to management control - its down to the fact we are not investing in replacements

 

Other Expenses might be down to management control - depends on if the $66k moved out of expenses into intangible assets for the moderisation project is real of just an accounting move ...

 

As for cost blowouts ... increases in 2015 attach to Employee expenses and Printing and pubs

 

Employee expenses are up over $40,000 and we are told that there are FEWER personnel in the office now ... Hmmm saved $4k on insurance and spend $40 more on staff

 

Printing and pubs - I'm not going into that one - there are threads all over the forum on it.

 

So basic outcome from an external MEMBER:

 

My membership fees went UP because you did not pass on ANY of the savings on printing and pubs when you moved to digital delivery and even with my increase in fees our losses and cash position are worse in 2015.

 

And to top it off Management and the Board still will not openly admit that the mag change was a fee increase and the summary to the audited accounts paint a 'everything is fine, alls been fixed and Management are doing a great job'

 

Sorry RAA board and exec it does not add up, please explain...

 

 

[Bernie Knight]

Mmm Kasper some good points.

 

Perhaps you could put your hand up and join the Board, no doubt your due diligence on the current position could then be explored first hand. Or you could ring the Treasurer and ask..

 

RAAus membership is in my belief is under priced when one considers the benefits - our insurance and importantly the platform to pursue economical flying..

 

The survival of any business or club is a real focus on their P+ L and every line item and I think your point here is a good one. The bottom line then is, if it's not surviving they need to work to increase income. Unfortunately that comes from us in subscriptions or other income sources.

 

Those income sources need to have the 'marketers' onboard who will look at advertising income opportunities, event running, merchandise, sale of training publications etc. along with other explored value add.

 

We are a diverse group of members whom have a variety of skills. In my close circles, there are accountants, lawyers, successful business owners and numerous other skills - many retired pursuing their interest in flying.

 

Do RAAus Board consider running regional whiteboard sessions inviting members to participate? The SWOT analysis done at said events could bring up/out some great ideas. Not to mention members whom may not want a full time Board position but are prepared to work on sub committees for the benefit of our interest.

 

Just a few thoughts..

 

 

[terryc]

RAAus membership is in my belief is under priced when one considers the benefits - our insurance and importantly the platform to pursue economical flying..

 

Are you kidding. You blokes amaze me with such statements without looking seriously at value for money.

 

 

[kasper]

Mmm Kasper some good points.Perhaps you could put your hand up and join the Board, no doubt your due diligence on the current position could then be explored first hand. Or you could ring the Treasurer and ask..

 

RAAus membership is in my belief is under priced when one considers the benefits - our insurance and importantly the platform to pursue economical flying..

 

The survival of any business or club is a real focus on their P+ L and every line item and I think your point here is a good one. The bottom line then is, if it's not surviving they need to work to increase income. Unfortunately that comes from us in subscriptions or other income sources.

 

Those income sources need to have the 'marketers' onboard who will look at advertising income opportunities, event running, merchandise, sale of training publications etc. along with other explored value add.

 

We are a diverse group of members whom have a variety of skills. In my close circles, there are accountants, lawyers, successful business owners and numerous other skills - many retired pursuing their interest in flying.

 

Do RAAus Board consider running regional whiteboard sessions inviting members to participate? The SWOT analysis done at said events could bring up/out some great ideas. Not to mention members whom may not want a full time Board position but are prepared to work on sub committees for the benefit of our interest.

 

Just a few thoughts..

Bernie,

Been there done that - got the scars to prove it - was on the board of the UK BMAA.

 

Also applied for the RAA CEO role when it was created and offered to move myself back from the UK to located in Canberra at my cost (I was coming back anyway) and didn't even get an interview ... background as a solicitor, accountant and business process improvement expert for PwC global in Sydney, London and New York for the past 20 years on top of being a L2 and senior instructor since the mid 1990's did not seem to count to even get an interview ... and the fact that people who did get in the role appear to have done nothing to address the internal functions that that seen OPs manual 7 issues before they hit the street and the situation where tech manager quotes in articles and to members the laws as they were years before he was appointed and have not applied factually for a couple of years since appointment ... not really a problem eh?

 

I am not prepared at this stage to put my hand up for the board as I am fully occupied doing a business restructure and rebuild in my current role and given the board and exec team do not appear to have what I see to be a good balance between policy development and operational management I am not looking to spend my free time joining a very large group with very little prospect of seeing change.

 

I know that seems very defeatist and not particularly engaging but I have spent the past year tying to engage with the employed personnel at RAA and I have very little to show for it and I have several examples of behaviors and outcomes from RAA employees that have left an extremely bad taste in my mouth.

 

I will continue to post here (generally after contacting RAA) but that will be the limit of my involvement until the board and exec start working openly and fairly with the membership.

 

 

[Bernie Knight]

Kasper,

 

Sounds a pity you didn't get on board.

 

 

[Bernie Knight]

Kasper,

 

Sounds a pity you didn't get on board.

 

 

[Guest Maj Millard]

Did he run ?.....

 

 

[Guest Maj Millard]

Did he run ?.....

 

 

[kasper]

Did he run ?.....

No I most certainly did not. As I touched on I have limited free time over the next couple of years with home build and work and unless I can see that spending my free time is likely to be beneficial in terms of change I am better off not starting and doing a half arsed job.

Not a bitter candidate here - just a frustrated member of over 22 years unwilling to let what is basic political spin (and really badly done spin) sit unchallenged. The commentary to the accounts and the accounts themselves to no support each other and given this is an incorporated MEMBER association I do not feel it appropriate for the board to present such a set of accounts and statement to the members and expect to not be challenged.

 

Cheers.

 

 

[kasper]

Did he run ?.....

No I most certainly did not. As I touched on I have limited free time over the next couple of years with home build and work and unless I can see that spending my free time is likely to be beneficial in terms of change I am better off not starting and doing a half arsed job.

Not a bitter candidate here - just a frustrated member of over 22 years unwilling to let what is basic political spin (and really badly done spin) sit unchallenged. The commentary to the accounts and the accounts themselves to no support each other and given this is an incorporated MEMBER association I do not feel it appropriate for the board to present such a set of accounts and statement to the members and expect to not be challenged.

 

Cheers.