Dear all
There are four new Council members as a result of the recent election including myself as the new Vice-President. I am providing this information as as an elected member with a responsibility to those who voted for me and the membership generally.
Yesterday's ASA AGM did not provide members with a business plan or other documentation to demonstrate that the Society has a viable future. There were verbal assurances that the ASA could continue to trade despite our total equity reduced from $130,853 in 2010 to $46,976 in 2011 also worryingly, cash generated from operations made a loss of $145,903 in 2011 as opposed to a still significant loss of $38,168 in 2010.
It was verbally suggested that the projected loss for 2012 would be $23,000 but there was no documentation available to members at the AGM to substantiate this figure. It is apparent that either costs need to be further controlled or additional income sourced.
Regards
Kylie Percival
Replies
Mark is raising a valid concern. However having recently been coopted to Council I would like to assure all members of the ASA that the Society’s financial affairs leading up to the AGM on 22 October 2011 are currently being looked at and that a full report will be made to members concerning Society’s finances. As you can see from my previous post regarding this matter I too am extremely concerned about the financial affairs of the Society as, by the way, are all Councillors.
In my new role on Council I am looking after treasury affairs and having only recently gained access to records am still in the process to identify our overall financial situation. I hope to be in the position to report on this to Council at its next meeting on 3-4 December 2011. I would expect that Council will provide a full and accurate report to members sooner rather than later.
Silence may be golden, but members reading this blog, will likely find it anything but re-assuring. In the spirit of Jackie's plea for 'full transparency, accountability, accuracy and clarity' in the conduct of the Society's financial affairs, I invite members to express their views on the establishment of a Committee of Review appointed by Council within the meaning of sections 14 (5) & (6) of the Society's Rules and By-Laws. Namely, that:
(5)The Council may at any time appoint a Committee and may prescribe the powers
and functions thereof.
(6) The Council may co-opt as members of a committee such persons as it thinks fit,
whether or not such persons are professional members of the Society, but of those
co-opted members a majority shall be professional members of the Society.
Terms of Reference:
*To conduct a review of the Society's financial affairs and decision making leading up to the meeting of 22nd October, 2011
*To report to the Membership of ASA Inc the results of its investigations and any recommendations arising from the investigation for restoration of the Society's financial position.
Mark.
On 3/11 I asked for assurance that the ASA is trading solvently. Ten days later there is still no reply to such as simple question - Is Council in a position to be declare that the organisation is solvent?
As the governing body responsible and accountable for the financial affairs of the Society it should be able to let any member know immediately the answer to a simple question about solvency. Any governing body should also be able to support their response with accurate and trustworthy financial statements at any given point in time, especially given the high frequency of Council meetings and level of engagement in the ASA's business as reported by members of Council in the member email notices.
The announcement of the new Sect/Treas appointment was made via the Member email notice (Members Matter!) on 4/11. Thanks for indirectly answering my second question. For ArchivesLive! subscribers who are not members of the ASA, the new ASA Secretary/Treasurer is Dr Louise Trott.
However, my more important question about insolvency has been overlooked. So I will again request my original question be answered and further information about the finances and Council.
1. Would the ASA Council please assure members by Friday 18 November 2011 that the ASA is currently solvent and will remain solvent in the foreseeable future - next month, next quarter and until the end of the current financial year?
2. Would the ASA Council please also provide to members by Friday 18 November 2011 with access to the balance sheet, profit and loss and cash flow forecasts to prove sustainability, liquidity and solvency over the next month, quarter and until 30 June 2012?
3. Why didn't Council appoint ASA members who had very recently shown interest and commitment to the ASA and being a member of Council through the 2011 Council election process?
4. Why did members of the ASA who had been successful in the recent Council elections step down from Council or specific roles on Council? I respect these members as highly competent professionals and I was surprised that they stepped down. It alarms me that members were not provided any explanation for such a significant and quick change. Did this change happen before, after or as a result of the significant decisions made by Council on 22/10? Members voted for their peers to hold positions on Council until at least the next AGM to 2 years (I acknowledge the 2 year rule is more convention than a 'rule' in the Rules and By-laws) but were not provided an explanation as to why they only lasted a few days and why the former Sect/Treas stepped down from that role but remained on Council.
Thanks I look forward to full transparency, accountability, accuracy and clarity in the responses received to these questions.
Jackie
So how do we get to the figure of $33,555, assuming this is the cost for the financial year 2010-2011? I'm not suggesting the figure is extraordinary, merely requesting an explanation in terms of the items making up the aggregated figure.
Mark.
Welcome to all of our new Council members. Being a councillor is hard work and often a thankless task. Members voted for you and in their votes expressed confidence and support for those being prepared to work for us. We all appreciate very much the effort put in on our behalf by all councillors.
Kylie’s comments on the state of the Society’s finances are spot on. Costs do need to be further controlled, applying an Acid-test ratio to the figures provided in the annual report it looks not conducive for the survival of our Society.
The Society has made a loss for 5 out of the last 7 years at an average of 122% per year. So for every $1.00 we received we have spent $1.22; using up nearly all of our cash assets. I very strongly support that Council take a fresh look at and further control of the outgoings of our Society. Membership dues are the bulk of our income; last year this totalled $ 184,252 and it is not very likely to be substantively more in this current financial year. Our combined outgoings for Bookkeeping, Rent and Staffing were $239,650 alone. Can we really afford the level of this cost at this point in time? A proactive approach by Councillors seems appropriate rather than merely monitoring cash flow on a monthly basis.
This is the second AGM in a row where there was insufficient time for members to voice their opinions and receive satisfactory answers to their questions, especially in relation to the budget. Financial data in the annual report is not that well explained; for example there a quite a number of general terms which seem to cover similar things (IT Service, Telephone and Internet, Software licenses, Website and publication development in total $33,555 - to name but a few). It was also unfortunate that matters which should have been discussed at the AGM were covered in a pre-meeting briefing. We all look forward to transparency and accountability in what is after all a professional society and not Macquarie Bank.
Kind Regards
Karin Brennan
Looking at the figure of $33, 555 for IT Service, Telephone and Internet, Software licenses, Website and publication development, perhaps a saving could be made , but what is the break down? This is a summary figure. For example, what are the hosting charges associated with the Ning? What are the bandwidth charges?
There is an Australia wide trend towards Internet and IP telephony. This is a good source of savings. Is the Society currently using Internet or IP telephony?
In addition to the Ning, the Society maintains a web site. What are the hosting charges? What are the bandwidth and other charges?
Perhaps, the Treasurer is best positioned to answer these questions.
Best wishes,
Mark.
Who is the ASA Secretary/Treasurer and why are they not responding to simple questions posed by members?
The ASA Council minutes of 22/10 note that Steve Stefanopolous resigned as Secretary/Treasurer but took up a regular Councillor position. But there has been no announcement of a replacement for Steve. Lack of communication on the leader of the ASA's financial affairs at a time when the ASA immediately reverted to an association managed by volunteers on the basis of dire finances is greatly concerning
On 24 October I emailed Council and asked for assurance that the Society is solvent. My concerns about solvency was based on the information provided at the AGM, knowing that the end of October each year involves a lot of outgoings (PAYG, GST, rent, Symposium/AGM and A&M printing, CPD development and delivery) and the sudden and unexpected expenditure associated with making staff redundant, closing down the office and systems and relocating to another state. Additionally, the closure of the online store, no one in a role to send out invoices and follow ups for income and two extensions on the timeframe for the date the office re-opens (now 21/11/11) indicate to me that the ASA is not trading at all.
I ask again that the ASA assure members that the ASA is trading solvently and who is providing oversight and maangement of the ASA's finances right now (not in the future, but today).
Thanks
Jackie