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How RSM’s regional audit expertise supports Murray Cod Australia
Ambitious organisations don't have to look to the city for world-class audit expertise.
Murray Cod Australia is the largest producer of murray cod in Australia, and effectively the world. As an ASX-listed company, it needed an auditor with the technical capability, industry understanding, and credibility to support stakeholder confidence.
Just as importantly, it wanted a team that understood the realities of operating in regional Australia.
RSM offered the best of both worlds: a regional audit team with the backing of a national firm, and deep expertise in supporting agricultural enterprises.
0:00
Mathew Ryan:
Murray Cod Australia was founded back in 2010. So that's when we built our first pond. Operated just myself for five or six years and then, yeah 2017 the official company was listed on the Australian stock exchange and became an official public company. Slowly grown the business through COVID-19, which has been a challenge but now we're sort of on the up and up and grown it through to where we are today. Sitting here today, we have 130 production ponds and our various sites across the region.
0:38
John Findlay:
Murray Cod Australia Limited became our client at the end of 2022. Our audit services to Murray Cod as a listed company involve half-year audits, full-year (30 June). Review the internal control environment. Inventory is a critical part of their business, so we attend on-site stock takes to see the farms and the fish, to verify that. And then any value-add in terms of financial reporting, compliance with accounting standards. There's a new requirement around ESG reporting, which we've been able to introduce one of our specialist partners there to give some advice to position the company in that space.
1:17
Wendy Dillon:
We were looking for a regionally-based audit partner because we're a regionally-based company, based here in Griffith. We wanted a team that could understand how regional businesses work. Also that could understand agriculture and just how businesses in regional Australia differ.
The benefit to Murray Cod of working with RSM is that the shareholders, the board and our finance team get the benefit of a regional-based audit team that has the backing of a national firm.
1:49
John Findlay:
RSM was able to assist the finance team and management and those charged with governance with some value-add. Obviously, they've got to meet their statutory deadlines as a listed company. That's critical. Part of our relationship and value-add was around improving their compliance with accounting standards, keep them apprised of any new changes in terms of disclosure requirements, and ultimately just getting them used to the standard of a listed public company for financial reporting purposes.
The key to our relationship and partnership, notwithstanding that we're independent as auditors, has been the willingness and the cooperation for both sides to learn and to focus on improving the financial reporting and governance practice of the business.
2:35
Mathew Ryan:
Being an ASX listed business, the market needs to have confidence in what we're doing and their confidence can be brought about by our audit and our audit partners. RSM's knowledge in managing biological assets in other agricultural enterprises has been invaluable in them understanding how our asset works and how that is accounted for through traditional accounting standards. They get the challenges in the ag space and also the regional vagaries of business in a regional area. They get things done on time, but they've also given us some real insights into how we can improve our business and what things we can put in place to help us run our business more effectively.
A regional business with global ambition
Based in Griffith, Murray Cod Australia began in 2010 as a single pond run by Mathew Ryan and his wife. Today, it's an ASX-listed business with 130 production ponds across the region and a clear mission: to produce a sustainable product for restaurants in Australia and around the world that will still be here in 50 or 100 years' time.
“Sustainable farming means building an enterprise that lasts for our children and future generations,” says Mathew Ryan, Director of Production and Development. “We want to leave farming land as good as when we got it, or better, so we can keep feeding our country and the world.”
It is exactly the kind of ambitious regional business RSM is built to support.
Why Murray Cod Australia chose RSM
When the company needed a new audit partner in late 2022, the team went into the search with a clear set of requirements:
A regional partner with national strength
“We were looking for a regionally based audit partner because we're a regionally based company ourselves, here in Griffith. We wanted a team that could understand how regional businesses work and also understand agriculture and how businesses in regional Australia differ from businesses in the cities,” Wendy Dillon, CFO, explains.
Mathew Ryan also wanted a regional company that could deliver a high-quality audit. “It's extremely important to have a good audit partner in this business, especially a fast-scaling business like we are,” he explains. “As an ASX-listed business, the market needs to have confidence in what we're doing, and that confidence can be supported by our audit and our audit partners.”
Agricultural knowledge and accounting standards for biological assets
As an aquaculture business, sector experience was also important. Mathew Ryan explains, “One of the most complex parts of managing our business is the management of a biological asset that is unable to be seen on a daily basis. RSM's knowledge in managing biological assets in other agricultural enterprises has been invaluable in helping them understand how our asset works and how that's accounted for through traditional accounting standards.”
Governance and reporting uplift for a maturing finance function
As a fast-scaling listed company, Murray Cod Australia needed a partner who could help lift its reporting practices to the standard expected of a public entity, and accelerate that journey.
Value-add support to face external pressures
As a company with a diverse customer base, operating across nine locations within a niche industry, Murray Cod Australia also face external pressures. Climate considerations, water availability, fuel prices, and rising regulation continue to shape the company's plans.
Mathew Ryan says, “Pressure from climate change and moving to green strategies… Some of our biggest challenges, to date and upcoming, are the changing political landscape and government changes with things like fuel prices and water regulation.”
How RSM adds value to the audit experience
Since late 2022, RSM has supported the finance team, management, and those charged with governance through half-year and full-year audits, internal control reviews, and compliance with accounting standards. Working from the Ballarat office, the team blends on-site visits with cloud-based access to the company's general ledger, keeping the engagement efficient and costs contained.
“When we were first engaged, there were a number of improvement opportunities that we identified,” says John Findlay, Partner, RSM Australia. “Wendy and the team worked with us cooperatively to improve those processes and practices. That has now enabled us to deliver timely half-year and full-year audits and meet the earlier 31 August deadline the board requires each year for ASX lodgements.”
The partnership delivers value across several fronts:
- Deep industry understanding. Drawing on our experience with other agricultural clients, RSM built genuine expertise in the industry's nuances, including the biomass model used to track fish growth and the inputs needed to
reach optimal harvest weight. - Stronger systems and processes. RSM identified where controls could be tightened and worked with the finance team to improve inventory management, stocktaking, and reporting discipline.
- Cyber security and data integrity. A specialist IT controls team from RSM's Melbourne office reviews technology controls and cyber risk.
- ESG readiness. RSM provided an ESG specialist to help position the company for its first transitional report in the 2027 financial year.
- Accounting compliance. The team keeps management apprised of changes in disclosure requirements and supports compliance with accounting standards, helping the business meet the demands of a listed entity.
A partnership built for the future
Both Mathew and Wendy believe RSM was the right choice.
“We've always found RSM's responsiveness, communication, and ability to get the job done during critical times to be amazing,” says Wendy Dillon. “They've really gotten to know our company, our business, and our people. If there's one thing that sets the relationship apart, it's that RSM is always approachable, easy to work with, and they get the job done efficiently and on time.”
As Mathew Ryan puts it: “I'd be happy to recommend them. They do a really good job, they're clear about what they need, and their timeliness has been a genuine benefit given how tight our timelines are.”
Partner with an audit team that grows with you
If you lead an ambitious regional business and want an audit partner who understands your industry, supports your governance, and helps you operate to best-practice standards, we'd love to talk.
Discover how RSM can give you the confidence to grow.
