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In recent years, the larger Torres Strait islands have formed their own community councils
with funding provided by the Commonwealth and State governments. Those councils,
often governing populations of fewer than a hundred people,
employ white administrators with such exaltant titles as "Chief Executive
Office" and salaries and other emoluments to match. Despite the generous
salaries, few professional people go to such remote places to engage in work
which is often banal and never challenging enough to further their
careers. Modern-day carpet-baggers had filled the void and I was sitting across from
one on the balcony of the hotel. He was a "C.E.O" on one of the
outer
islands and had come down to T.I., ostensibly on an all-expenses-paid business trip but primarily to
sample the delights of what amounted to the bright city-lights for one living so remote.
Being fellow-travellers and, like "ships passing in the night", not likely
to meet again, he had soon told me his life story: divorce and a number of business
failures had seen to it that he had come to the Torres Strait "with the arse hanging
out of his pants" but only a few months into the job, he already sported a very healthy
bank-balance.
We had "talked shop" and it had become apparent to me that he was
in big trouble with his computerised accounting system of which he knew
very little but in which I had specialised for years and become something of
an expert. I mentioned this to him and he replied that he might call on my
services in the future.
So it didn't come as a complete surprise when
a few weeks after my return to "Riverbend" I received a call from
him, asking me if I could come up to his little island to help
him out. Yes, I could but only in a few weeks' time. Should
we in the meantime discuss the nature of the assignment by email? And so the
whole sorry story unravelled of how he had arrived on the island some five months
earlier to operate the already installed ATTACHÉ accounting software
but didn't know how. Instead of persevering with it, he abandoned it
altogether in the belief that another, simpler (?) package, MYOB, would
solve all his problems.
Abandoning the existing accounting package halfway through the accounting year
was "Mistake # 1." Thinking that buying another package and attending
a two-week all-expenses-paid training course in Cairns - what a nice holiday if
you can get it! - would make him an instant "accountant" was
"Mistake # 2."
Now he was utterly lost with the existing accounting data in bits and pieces across
two different accounting systems, outstanding GST returns piling up, and the end of the
financial year approaching. Not that the accounting situation was beyond help; after
all, it consisted of little more than the 'recycling' of the community's dole money
plus grants coming from six other sources, a total turnover of some $2 million a year.
A relatively small business enterprise for which to produce an annual balance sheet,
profit & loss statement, and tax return, plus periodic GST returns and separate
expenditure statements to the grant-givers of how their grants had been spent.
However, he had his own peculiar ideas of how to proceed: instead of "departmentalising"
the six different grants and their respective expenditure within the one accounting
entity (which, after all, it was with ONE balance sheet, ONE profit & loss
statement; ONE tax return; ONE GST activity statement, etc), he was going to set up
SIX distinctly different data set - the mind boggles !!! - to ensure that there would be no mix-up between the
grants. I screamed, "No, No, No" which could be heard all the way up
to the Torres Strait, and emailed him immediately to suggest that he use MYOB's
Job Costing feature which would lend itself admirably to separating all grants
within the ONE data set. He hadn't even known that such a feature existed!
I asked him to seriously consider it and NOT to proceed with his peculiar 'Cookie Jars'
accounting method. His
reply was pretty immediate, "With respect to your views, I am going to start July 1st with separate files as I am seeking
effectiveness for this organisation." That was "Mistake # 3."
Logging onto an email account is relatively quick and straightforward when compared to logging into
an accounting software with its password and other verification processes after which one has to
navigate through a very busy "menu" to get to the desired function. Now imagine
an invoice for the supply of goods and/or services which is funded by more than
one grant: it would require having to sucessively log into and out of separate data sets to process
the whole of the invoice. And the same would have to be done when paying the invoice and
entering all sorts of other
accounting data. If that isn't bad enough, imagine to then having to re-combine all those
separate data sets in order to obtain a balance sheet, a profit & loss statement, figures for the
GST acitivity statement, or to do a bank account reconciliation! That "re-combining"
would have to be done manually as the separate data sets don't "talk" to each other.
The mind boggles! How do they recruit people with such limited understanding of their jobs?
That man was obviously not just geographically at the end of the line.
Not surprisingly, I thought it best not to get involved in what was shaping up to be another
disaster story.
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