It is with profound regret that the Committee of Management of Phillip Island Community and Learning Inc. (PICAL) announces its current financial position.
Unfortunately, estimated historic debts far exceed PICAL's financial reserves or its ability to raise the necessary funds within a reasonable timeframe, rendering PICAL technically insolvent.
We are fully aware of the impact this will have on PICAL’s dedicated staff, clients, volunteers, and the many community members who rely on our services.
PICAL, as an Incorporated Association, is required to call a Special General Meeting to move a motion to wind up the organisation on November 14, 2024.
During this time, the Commi4ee of Management will work diligently with PICAL's funding agencies (DFFH and Services Australia), Neighbourhood Houses Gippsland, Jordan Crugnale MP State Member for Bass and the Bass Coast Shire Council to explore every avenue to preserve as many of PICAL’s vital services as possible for our community.
PICAL would like to emphasise it is both illegal and against the responsibilities of the Committee of Management to continue trading when we cannot meet, or demonstrate the ability to meet, our
debts. Despite our best efforts to resolve this historic issue, we are compelled by law to make this incredibly difficult decision.
This historic debt originated over ten years ago due to the incorrect classification of certain roles, which led to some individuals being paid on an incorrect pay scale. At the time, Enterprise
Agreements were quite generic and open to interpretation, which contributed to the error that persisted, undetected, over the years.
This has led to a significant debt that PICAL is unable to pay.
It is important to note that this was an administrative inaccuracy and not the result of management, misappropriation or fraudulent behaviour by anyone involved with PICAL.
While there are no current demands for payment, these historic debts are so significant that they far exceed PICAL's financial reserves or capacity to repay, thus making PICAL technically insolvent.
After careful consideration and comprehensive legal and financial consultations, the Committee of Management has concluded that the only responsible course of action will be to make the decision
to wind up. This will result in PICAL ceasing to exist as a legal entity if the resolution on November 14 to wind up is approved.
Notice of a Special General Meeting for Phillip Island Community and Learning Inc. will be issued to members on October 4. This meeting will also provide an opportunity to discuss this issue, possible
options and any resolutions that need to be tabled.
While this is a challenging time for PICAL, all existing services will continue to support our community as they have done in the past for now and for as long as we are permitted, with a focus of supporting continuity moving forward.
We will provide more information to all concerned as soon as we are able.
Graeme Turner, President
PICAL Committee of Management
