General Comments on Performance
Cape Lane Port Authority (CLPA)
Case Background and Required Element
The August 2013 Case Examination focuses on a Canadian Crown Corporation, Cape
Lane Port Authority (CLPA), charged with operating the industrial and commercial port at Cape Lane, British Columbia (BC).
In May 2013, senior management met with the Board of Directors at a planning retreat to address declining sales and profit. Management assured the federal government that actions would be taken to avoid a loss for the 2014 fiscal year, and set a 5% net profit margin target to be met, within three years, as a corporate goal. This target was approved by both the Board members and the federal ministers, to whom they report.
The following alternatives were identified for consideration:
1. Invest in renovations in order to proceed with the Bitumen Shipping Project.
2. Divest the Cruise Ship Terminal.
3. Operate a Passenger Ferry.
Additionally, the following minor alternatives were identified:
1. Allow a local entrepreneur to build a reception centre in the cruise ship terminal and pay a royalty of 8% of revenue to CLPA.
2. Build a fitness facility in order to reduce sick time.
As Kyle Wast, CMA, prepare a report for CLPA’s executive team advising them on the opportunities discussed and addressing any other organizational issues and concerns requiring their attention. Include details of your analysis, support for your recommendations, an action plan to implement those recommendations, and a financial forecast. In undertaking this task, you will need to take into consideration your background knowledge of the organization and industry as well as the additional information provided herein.
CICA and CMA Canada joined together January 1, 2013, to create CPA Canada as the national organization to support unification of the Canadian accounting profession under the CPA banner. The CMA Entrance Examination,
CMA Case