The following letter was emailed this evening (16 May 2016).
President & Chairman
The Wireless Institute of Australia ABN 56 004 920 745
Unit 20, 11-13 Havelock Road
16th May 2016
We refer to the Financial Statements for the Year Ended 31 December 2015 which you published on the WIA website www.wia.org.au on Sunday 15th May 2016.
On the WIA News Broadcast of 15th May 2015, the President advised those who may have been listening of the following with regard to the upcoming Annual General Meeting on 28th May 2016:
“The Directors report and the Treasurers report are presented and discussed at the AGM, and questions on those two items are taken. There is no other special business and no motions were received by the due date.”
It is noted that the Board has at no time issued any formal notices via formal channels (letters to members or in Amateur Radio magazine) nor has it invited members to submit special business or motions. The President’s announcement on the News Broadcast is, at best, misleading.
As the Board has failed to issue any form of notice advising members how to raise motions or questions prior to the AGM, we submit the following questions and respectfully request that the Board provide answers prior to, or at the AGM on 28th May 2016. With reference to the Financial Statements:
- The President states on page 8, Item 12 “The WIA will have a trading loss of $12,680 (2014: Profit $9,482). The trading loss can be attributed to the exit payments of the two WIA staff members during 2015.” It is our opinion this statement is not entirely true or complete. In fact, an analysis of the report suggests that exit payments are not the major reason for the loss (as most staff exit costs were paid from provisions). The losses stem from increased expenses (such as contractors, suppliers etc) against a reduced revenue. Would the President please justify and expand on his statement in the Financial Report, Item 12?
- Cash position – cash is down $56,658 since 2014. Given the reported loss of $12,680, would you please provide an explanation? Would you agree that if the WIA was to use cash accounting the loss would be much greater than the reported $12,680 in 2015? Indeed, the numbers tell a very different story:
a. Receipts are $558,000; down $6,000 (page 14)
b. Payments & Expenses are $623,888; up $72,000 (13% increase)
c. Interest received $10,700; down $7,000
We contend the facts are that INCOME is DOWN and EXPENSES are UP. Is this the reason for the loss?
- With regards to Related Party Transactions:
a. Note 17a. (p23) Directors costs – who was paid $10,530 and what services were provided?
b. Note 17b. (p23) Who was paid $40,196 and what services were provided?
- With regards to Provision Accounts (p15):
a. Decrease in Provisions ($44,127) – Please provide the details of these provisions.
- With regards to Note 8 (page 21).
a. Why is tax payable so low compared to 2014?
b. What is the related parties payment?
c. What is covered by Other? (why is the largest amount unspecified?)
- Income and costs relating to Canberra AGM. It is understood this should be break even (more or less). Why is there a $3,700 loss? (refer WIA Annual Events Guidelines)
- Queries relating to Expenses (page 26)
a. Postage up from $3,900 to $12,700. Why the huge increase (326%) in postage?
b. Can the Board confirm that the ACMA contract costs have been correctly tracked and reported?
c. Professional Expenses of $8,000. What was this for?
d. Awards and contest – from $977 to $5,500 (up 562%) – Please explain. What was $5,500 spent on?
- Accounts Receivables have gone from circa $8,000k in 2014 to circa $15,000 in 2015. Why the increase? Have accounts been managed appropriately and professionally in the second half of 2015?
- There is a reported 5% decrease in WIA Membership. What plans does the Board have to arrest this result?
We also note, with concern, that the Auditor has not signed off on this report. On this basis, we can only regard this report as informational, rather than a formal Financial Report.
Has the Auditor endorsed the WIA to publish an unsigned version of the report?
When was the report delivered to the Auditor?
When will the formal report (including the signed Auditors Report) be issued and available to members?
When queried by Chris Chapman about the possibility of those members unable to attend the AGM being able to raise questions, the President advised in an email on 15th May 2016 the following:
“We could take questions submitted in advance and handled at the AGM by the Chairman, though as we would need to make this available to all members, and as time is limited, there could be no guarantee that any particular question would be selected.”
We respectfully request that the President and Chairman retracts this advice as it is likely in contravention of Section 250S of the Corporations Act. Further, we request written confirmation that all questions raised by members will be answered.
Will the Chairman advise how members not attending the AGM on Norfolk Island can raise questions?
In order to address this reasonable requirement, we suggest the Board uses its membership register to email all members (for whom an email address is provided) to provide them with a link to the Financial Report as well as making appropriate announcements on the WIA News Broadcast this Sunday 22nd May 2016. The emails and announcement should also invite any financial member to submit questions for the AGM along with instructions on how to do so.
We look forward to your answers being provided clearly, completely and accurately at the AGM.
C. Chapman VK3QB, G.C. Dunstan VK4DU R. Dollar VK8RD