The old board turned a profit because, being clueless they knew no what they were doing. A bit like the Health Services Union building big fat wads of cash in a variety of hollow logs just waiting for some day when the hollow log would get cleaned out by some smarty. No financial controls, no financial management, no clues!
In the case of RAA the cluelessness was to employ the people they employed who wouldn't do the work they were supposed to and ignore all the warning signs. CASA Audits come and go and threw RAA into an administrative nightmare requiring buckets of cash to fix - paying off staff no longer with us and employing high priced lawyers and consultants to keep CASA away from the door. The erosion of the surplus was because older boards did not do their job. The new board is still filling all the bullet holes and bomb craters and repairing and rebuilding the materiel run down due to the lack of foresight be the old boards.
Yes we do have buckets of cash in the bank and we do own a building but you can't eat bricks. RAA never had a financial management plan nor an asset plan or a reserves plan. RAA does not need huge unallocated reserves but it does require well considered reserves against genuine prudential targets. "Just because we can" never has and never will satisfy me that the board is doing it fiscal job properly. "Trust us" is equally hollow.
Steve Runciman was having a go, so was Don and now Jim is on the case but you could drown the other past treasurers and a lot of former board members and they wouldn't be missed. We are very lucky that most of the old guard have left.
I am waiting for some program management info to turn up - what projects we had, how much money was allocated, how it is being spent and what progress was made. Think Opsman's department, think Techman's department.
Me'thinks, Keith, that you rush a little too quickly to the defence of the indefensible.