Campervan and Motorhome Club of Australia LimitedBoard Response to comments on 2009-10 Financial Report

27th July, 2011

Various comments have been made by some members of the Club on the Member’s
Forum of the CMCA website and via emails and other correspondence from some
Members, questioning aspects of the Financial Report of the Club for the year ended
30 June 2010. Some of those comments are arguably defamatory of Members of the
Board of the Club.
The Financial Report was presented at the Annual General Meeting of the Club held
at Port Macquarie on 17 October 2011. Also the December 2010 issue of The
Wanderer contained an article by director Karen Griffin on the Financial Report.
The Board welcomes constructive comments and queries to the Board on the
Financial Report, however in view of the nature of some comments that have been
made, it is appropriate for the Board to respond.
In summary, some of the comments assert that the Board has presented the
Financial Report in a misleading manner, which (it is suggested) has masked an
underlying weakness in the financial position of the Club. The comments refer in
particular to increases in recent years in national headquarter operating costs,
including employee costs, and suggest that the recent resolution of the tax issues
with the Australian Taxation Office, and the consequent boost to the net assets of the
Club, provides a misleading picture of the true financial position of the Club.
The Financial Report presented to members at the AGM on 17 October 2010 and the
article in the December 2010 issue of The Wanderer contained considerable detail
on the income and expenses of the Club and addresses the abnormal nature of the
financial results for the 2010 year.
The Discussion and Analysis contained in the Financial Report states that the
“…abnormal surplus of the 2010 year is the result of a very unique set of
circumstances brought about by concerted efforts and commitment. It is highly
unlikely to be repeated. This boost to the financial strength of CMCA significantly
improves the capacity of the Club to provide ongoing efforts for enhancement of the
motorhoming lifestyle.”
Operating costs for national headquarters, including employee costs, have increased
in recent years. In order for the Club to work to the current five year Business Plan it
has been necessary to increase the number of staff to handle the load of increasing
new memberships, membership renewals, the establishment and maintaining of
RVFTs, Dump Points, LNT scheme, the Caravan Parks Listing, The Wanderer
magazine, The Wanderers Mate, Geo-Wiki, Club run safaris, representation to
Government on Federal, State and local levels, etc. This increase in costs is both
appropriate and desirable to enhance the motorhoming lifestyle for the benefit of the
Club and its members.
The Board has previously disseminated to the Members the current five year
Business Plan of the Club via The Wanderer (CEO’s Notes, May 2010), the Chapter
Forum and the 2010 Annual General Meeting. The Plan is aimed at implementing
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several strategies and programs to enhance the motorhoming lifestyle for the benefit
of Members. Generally the Plan has been warmly endorsed by the Membership.
The implementation of those strategies and programs requires the application of
considerable resources. Although members of the Club provide wonderful support to
the Club, as the number and complexity of the Club’s strategies and programs
increases, so too does the need for additional resources. The Board relies on the
support of the staff of the Club in implementing our strategies and programs. The
Board is grateful for that support, which is provided by staff diligently, professionally
and with the interests of the Club at heart.
The financial surplus for the 2010 financial year was, as stated above, abnormal. It
enabled total equity to increase from $3.1 million as at 30 June 2009 to over $4
million as at 30 June 2010. This has placed the Club in a much stronger financial
position to implement the Five Year Business Plan.
The Club is in a strong financial position. The Board is of the firm view that although
it is of the utmost importance that the Club maintains a strong financial position,
increases in profits and total equity should not be seen as ends in themselves. The
purpose of the Club is to benefit its Members, and the stronger financial position will
be used to implement the agreed strategies and programs of the Club, for the benefit
of the Club and its Members.
Board of Directors
CMCA Ltd.