FEI CANADA 2011 ANNUAL REPORT
FEI CANADA 2011 ANNUAL REPORT
This report has been optimized for interactive web viewing.
TABLE OF CONTENTS Message from the Chief Executive & the Chair of the Board of Directors / 2 Strategic update – year in review / 6 Financial performance review / 22 FEI Canada summary financial statements / 29 FEI Canada celebrates its volunteers / 35 The Canadian Financial Executives Research Foundation / 42 National Strategic Partners / 45
FEI CANADA 2011 ANNUAL REPORT
MESSAGE FROM THE CHIEF EXECUTIVE & THE CHAIR OF THE BOARD OF DIRECTORS FEI Canada members are inherently at the top of their game, career-wise. Just to qualify for membership, executives in our organization must already be seasoned veterans who have been successful in their chosen careers. But even established veterans need to renew and transform themselves professionally on an ongoing basis, for instance by connecting with like-minded peers and gleaning valuable insights through professional development. FEI Canada is always looking for ways to grow and improve our services, as our members do in organizations where they work. One way to accomplish this is to ask members what we’re doing well, and whether we can do it even better. We seek input in different ways – for instance, we canvass you, our members, through membership surveys and we harness the expertise of our technical committees to learn where you stand on current issues. Your valuable feedback makes this organization better than ever. We learned more about what our members think this year during the production of FEI Canada’s first video, designed to educate current and prospective members alike about our association. We interviewed active members of FEI Canada to find out how and why they joined, and what they enjoyed the most about the organization. Several common themes emerged: • MEMBERS LIKE TO NETWORK: FEI Canada networking is more than a mere exchange of business cards. While there is always the possibility of making a connection with someone at a company you’d like to do business with in the future, it is also about exchanging ideas and even making friends. “Personally, it’s been a great organization just from a networking /2
MESSAGE FROM THE CHIEF EXECUTIVE & THE CHAIR OF THE BOARD OF DIRECTORS
standpoint ― the people you meet. It’s a great group of people, both at the chapter level, and nationally,” said Ray Hawrelak, the incoming national chair for 2011-12. • MEMBERS LIKE TO LEARN: Whether it’s a breakfast seminar, a career services event or a workshop at our annual conference (which was again a resounding success this year in Ottawa), members love to soak up new knowledge which they can use right away. Member Brita Chell told us she enjoys both local chapter events at home in Winnipeg and the national breakfasts – the latter she described as “fantastic”. According to Toronto chapter member Russ Wong, putting lessons learned to use is invaluable. “I’ve really benefitted from those programs,” Wong said, adding he enjoys “being able to take these experiences, take these programs and what we learn here, and apply it back at the office.” Through our research arm, the Canadian Financial Executives Research Foundation (CFERF), we also develop practical, relevant and timely research reports to help members better serve their employers and advance their careers. • MEMBERS LIKE TO HELP EACH OTHER: Some members talked about the other benefits networking can bring, such as learning from other members who may be either more experienced or more knowledgeable in certain areas. Kay Brekken, a past president of the Toronto chapter, said she has built a network of colleagues and friends who have become trusted people she can reach out to for input and advice. “It gives you people you can call on in a confidential manner, to get the help that you need.” • MEMBERS LIKE TO HAVE INFLUENCE: Certain members not only love learning, they enjoy having a say in public policy. When government bodies or standards setters call for public comment on issues such as fiscal policy, pension administration or a proposed /3
FEI CANADA 2011 ANNUAL REPORT
new accounting standard, some of our members are itching to get on the next conference call to get their two cents in. Tyrone Cotie, our recent CCR chair, has enjoyed discussing our perspectives with senior AcSB and OSC officials. We were also again invited this past year to present our views to the Finance Committee of the House of Commons. As Vancouver member and incoming national vice-chair Lisa Dorian puts it: “You get to make a difference.” • MEMBERS GET OUT OF IT WHAT THEY PUT IN: We would like to take this opportunity to thank FEI Canada’s volunteer leadership, the more than 200 members who contribute to our committees and chapter boards and make up about 10% of our membership. They dedicate hours of time to helping their fellow members have a great experience with our association, and we can’t thank them enough. A special thank you goes out to our retiring directors: former CCR Chair, Tyrone Cotie; Conference Chair Louis O’Brien; Susan Nemec; Jim Fergusson; and our Immediate Past Chair, Karyn Brooks. Karyn is a notable example of a person who exemplifies volunteer leadership. She has become one of Canada’s foremost experts in accounting standards. She has represented FEI Canada admirably on various bodies, most notably the IASB’s IFRS Council. We were lucky that Karyn discovered FEI Canada in 1997, beginning with our Committee on Corporate Reporting, through Harry Schaefer, her long term mentor and former boss at TransCanada (and himself a Capon award winner). We would like to encourage all veteran FEI Canada members to get the best and brightest of the next generation of financial leaders involved in FEI Canada’s activities. Another way we seek input from members is through surveys we conduct for our research studies. One interesting study we conducted this year, “Beyond the numbers: The evolving leadership role of the CFO”, found that financial executives are being asked to do a lot more than number-
/4
MESSAGE FROM THE CHIEF EXECUTIVE & THE CHAIR OF THE BOARD OF DIRECTORS
crunching these days. As strategic players who are trusted sources of information and advice for their colleagues and board members, CFOs need to be able to think strategically and communicate clearly. They need to understand all aspects of the business from the ground up, and even deal with customers and suppliers. As a result of this research, we’ll also be looking for your input on a new project we have on the go. Given that our recent CFERF study indicated that the traditional CFO skill set has not quite kept pace with their evolving roles, we are studying how we can best assist financial leaders with their learning and development. We’ll keep you posted on what the results of the feasibility study indicate. If you have any thoughts on this project, please feel free to contact either of us directly. Sincerely,
Michael Conway, CA, ICD.D Chief Executive and National President
Louis Marcotte, FCA Chair, 2010-2011 Board of Directors
/5
FEI CANADA 2011 ANNUAL REPORT
STRATEGIC UPDATE – YEAR IN REVIEW FEI CANADA MEMBERSHIP We work throughout the year, with the goal to make the experience of being an FEI Canada member more valuable. We continue to provide the knowledge that our members need, strengthen our member network, and utilize our advocacy committees to ensure that the government and regulators are aware of our members’ views. We received a great deal of feedback through our 2010 membership survey, and we have spent the last year redesigning our database, as well as other aspects of FEI Canada membership to better serve our members. Some highlights of the new system: EVENT REGISTRATION IMPROVEMENTS • Event registration forms now auto-populate with your personal information, making signing up for events easier for you. • After signing up for an event, you will receive an email confirmation with a link to add the event to your Outlook calendar. /6
• Our smart new mailing service knows who has signed up for an event, taking them off the distribution list for future event reminders.
New members Stephen Lennie, Kitty Kwan and Sekar Krishnan
RENEWALS • Gone are the days of logging in to the website to renew your membership. With the new system, you will receive a personal link, and can renew at the click of button, saving you time and the hassle of looking for your password.
STRATEGIC UPDATE – YEAR IN REVIEW
The new system makes the FEI Canada membership experience smooth and seamless, aiming to let members sign up for events and find what they’re looking for quickly, so they can get back to their busy lives.
Clockwise from top left: Louis O’Brien, Sue Deakin, Dan Nohdomi and Lisa Dorian
Membership recruitment and retention is our collective priority. Given the unique nature of our network – connecting members across industries, geographical boundaries and designations – the benefits of membership
in FEI Canada can best be communicated through experiences. To that end, the recruitment video we launched entitled, ‘Members tell the FEI Canada story’, presents member testimonials in a compelling and sincere fashion. Members took the opportunity last year to invite dozens of prospective members to events and allow them to experience the quality of our programming at both the national and chapter levels. In addition to recruiting a significant number of new members this year, we also recognized the critical importance of retaining members, particularly in the first three years of membership. Upon a thorough review of recruitment and retention strategies we are committed to strengthening our relationship marketing capabilities and supporting chapters who play the lead role in this capacity. Engaging new members early in their membership tenure and connecting with members who have not made the time to attend an event are challenges we can easily overcome by volunteering to connect with two or three /7
FEI CANADA 2011 ANNUAL REPORT
new members and extending a welcome and personal invitation to a chapter event. Together we can expand our extraordinary network and continue to build a strong, sustainable association.
VOLUNTEERS Of FEI Canada’s 2000 members, more than 200 volunteer for the organization. We would like to thank all of FEI Canada’s wonderful volunteer leadership who give us their time and brilliance in the following capacities: • FEI Canada’s national board, led by our chair Louis Marcotte • CFERF’s board of trustees, led by Vic Wells (one of this year’s Capon Award winners) • Chapter boards, led by our 11 dedicated chapter presidents
FEI Canada’s 2010-2011 leadership meeting
/8
STRATEGIC UPDATE – YEAR IN REVIEW
• Chapter leadership council, led by Lisa Dorian • Membership committee, led by Danley Yip • Conference committee, led by Louis O’Brien (a past chair of FEI Canada) • Career services committee, led by Leslie Markow • Committee on Corporate Reporting (CCR), led by Tyrone Cotie
• Issues and Policies Advisory Committee (IPAC), led by William Hewitt (one of last year’s Capon Award winners) • Sponsorship committee, led by Brian McAskill • SME conference committee, led by Jason Lang • Best in class organizing committee, led by Judy Munro
/9
FEI CANADA 2011 ANNUAL REPORT
EVENTS Our members continually tell us that the networking opportunities provided by our FEI Canada events are invaluable. With the help of our 11 chapters across Canada, FEI Canada put on more than 140 events in the 2010-2011 year. Our webinar program had continued success, delivering knowledge directly to our member’s desks. Some topics presented through our National Breakfast Seminar series, and our webinar series were: • Realizing Value in Mergers and Acquisitions • Scenario Planning: Plotting a Course through an Uncertain World • Managing Tax Risk and Driving Tax Performance • Environmental Sustainability • 2020 Vision: The Future of Management Accounting • Performance Management I & II • Performance Measurement • Credit Availability in Canada / 1O
Chapter Leadership Award recipients (with Michael Conway), Vicky Tumiotto, Vic Wells, Dan Clarke and Steve Rosen
• Enterprise Mobility and Innovation in Canada The 2010 SME conference was held at the Mississauga Convention Centre. For the third consecutive year, FEI Canada supported entrepreneurs and small and medium-sized enterprises (SMEs) by hosting a conference designed to showcase their accomplishments and encourage them to learn best practices from each other. The SME conference is a full-day event designed for senior financial executives, CEOs, directors, entrepreneurs and others associated with SMEs.
STRATEGIC UPDATE – YEAR IN REVIEW
The 2011 Infrastructure Symposium on funding and investing kicked off our spring events season. This symposium provided attendees with a timely overview of how to participate in this rapidly expanding asset class, whether as an investor, service provider or creator of these assets. Members were able to take part in the symposium live in Toronto, or watch a live video broadcasts in Calgary, Edmonton and Vancouver.
with PwC and Robert Half, is given annually to an individual who has made an outstanding contribution to business in Canada through vision and leadership, corporate reporting and performance, social responsibility, innovation, and business complexity. The 2011 gala celebrated Gordon Maron, Chief Financial Officer of PCL Construction Holdings Ltd.
2011 Infrastructure Symposium
Each year FEI Canada recognizes great financial leaders with our Canada’s CFO of the YearTM Award. The award, presented
Gord Maron, 2011 Canada’s CFO of the YearTM
/ 11
FEI CANADA 2011 ANNUAL REPORT
FEI Canada’s Annual National Conference, the grand finale to our calendar of events, was held this year in Ottawa. The Conference committee, chaired by Louis O’Brien, presented one of our most successful annual conferences ever – both financially and according to the satisfaction ratings assessed by our 425 attendees. This year’s conference used a mobile conference application, which allowed delegates to get live updates and alerts at the conference as well as plan their schedule, participate in social network feeds, view maps and floor plans and read exhibitor information.
We received the following feedback from members who attended the conference: • Good mix of forward-looking and technical sessions. • There were many lessons that are applicable or will be applied. • I am looking forward to using the information I received at the “Evolving Role of the CFO” session. • Terry Matthews is a fantastic speaker and hearing from him again on a different topic would be more than welcome. • I really enjoyed round tables with best business practices. • Great gala concept, very effective for networking, great food and wine. Congratulations to your team for thinking of this and pulling it off so nicely. The jazz band was a nice finale.
2011 FEI Canada Conference
2011 FEI Canada Conference Gala
/ 12
• Everything was excellent!!!
STRATEGIC UPDATE – YEAR IN REVIEW
• Economist Panel: • Paul Vieira, Reporter - Ottawa Bureau, Dow Jones Newswires/The Wall Street Journal (Moderator) • Finn Poschmann, Vice President Research, C.D. Howe Institute 2011 FEI Canada Conference
The theme “Capitalizing on the Future” reflected on Ottawa as the capital of Canada and a hub for large technology companies, points stressed in the video welcome from from Governor General David Johnston. The well-received keynote speakers were:
• Peter Hall, Vice-President and Chief Economist, Export Development Canada • Douglas Porter, Deputy Chief Economist & Managing Director, BMO Capital Markets • Closing Lunch: The Honourable Kevin G. Lynch, P.C., Vice-Chair, BMO Financial Group
• Richard Bird, Executive Vice-President, CFO and Corporate Development of Enbridge Inc. and the co-recipient of our 2010 CFO of the Year award • Sir Terry Matthews, Chairman of Mitel • Byron Holland, President and CEO, Canadian Internet Registration Authority • Nik Nanos, Founder and President & CEO, Nanos Research
2011 FEI Canada Conference
/ 13
FEI CANADA 2011 ANNUAL REPORT
TECHNICAL COMMITTEES FEI Canada’s two technical committees are the Committee on Corporate Reporting (CCR) and the Issues and Policies Advisory Committee (IPAC).
CCR CCR provides technical advice and recommendations to regulators and standard
setters on issues of importance to FEI Canada members. Led by Tyrone Cotie, the committee’s 38 volunteer members submitted 12 letters of recommendation to the AcSB and IASB. The committee meets twice a year to discuss current issues with the Accounting Standards Board and the Canadian Securities Administration. Topics included: • Presentation of Items of Comprehensive Income • Insurance Contracts • Hedge Accounting • Financial Instruments: Amortised Cost and Impairment • Offsetting of Financial Assets and Financial Liabilities
IPAC
Vic Wells and Tyrone Cotie present Tricia O’Malley, former Chair of the AcSB, with an FEI Canada honourary membership
/ 14
IPAC develops positions on national issues, provides expert consultation to key stakeholders and influences emerging legislation that is relevant to FEI Canada members. Led by William Hewitt, IPAC worked in a steering committee format, to coordinate the work of the following task forces:
STRATEGIC UPDATE – YEAR IN REVIEW
• GOVERNANCE AND RISK – Wrote several articles for FEI Canada’s Finance and Accounting Review (FAR), gave their expertise to our CFERF “Beyond the numbers: Evolving leadership role of the CFO” report, and responded to the CICA’s invitation to comment: “A framework for board oversight of enterprise risk”.
Michael Conway and Peter Effer, Chair of FEI Canada’s tax committee, testifying at FINA
• PENSIONS – Submitted a comment and presented to the WSIB funding review, submitted several articles to the FAR, and studied issues such as increased tax deferred annual contributions and maximum tax deferred pensions from deferred benefit plans. IPAC meeting at the 2011 FEI Canada conference
• INFORMATION TECHNOLOGY – Studied the IT impact of IFRS, XBRL, cloud computing, and worked with CFERF on the “Enterprise mobility: Executive perspectives on mobile business applications” report.
• PRIVATE COMPANY ISSUES – Commented on the AcSB’s proposed Accounting Standards for Private Enterprises, contributed to the development of several webinars, created HST issue alert for FEI Canada members, and assisted in the planning of the third annual SME conference. / 15
FEI CANADA 2011 ANNUAL REPORT
• TAXATION - Consulted with the Department of Finance Canada, again appeared before the House of Commons Standing Committee on Finance (FINA) where they called on the federal government to reduce the complexity of the taxation system and its compliance requirements in future budget proposals, submitted annual pre-budget submission and budget comment. • TREASURY AND CAPITAL MARKETS – Gave their expertise for the CFERF “Credit availability in Canada: 2010” report, continued to support the implementation of a single Canadian security regulator and studied environmental accounting, macro-economic policy and treasury issues.
CFERF CFERF, the Canadian Financial Executives Research Foundation, is the research arm of FEI Canada. CFERF was formed to create Canadian – specific research, to aid in the daily working lives of FEI Canada’s members. CFERF studies are a resource of best practices and lessons learned from our esteemed members and experts, to share with their colleagues and organizations. The CFERF board is made up of FEI Canada members who are dedicated to our pursuit of research. These board members use their expertise and experience to help steer our projects in the right direction, and ensure
2009 AVAILABILITY 2011 FORECAST
CREDIT AVAILABILITY IN CANADA
/ 16
STRATEGIC UPDATE – YEAR IN REVIEW
ELECTRONIC PAYMENTS IN CANADA: WHAT’S THE HOLD UP?
86% SURVEYED
WOULD CHOOSE
ELECTRONIC
TRANSACTIONS,
BUT ONLY
27% USE THESE FOR THE MAJORITY
OF THEIR TRANSACTIONS
• Carbon management: Critical issues for strategic finance • IFRS readiness in Canada: 2010 • Current management issues in Canadian corporate taxation
2011
that each study is focused to deliver the most benefit to FEI Canada’s members. We would like to thank CFERF’s Chair Vic Wells and all of the trustees for their tireless work. Today, CFERF research studies are one of the many benefits received by FEI Canada members. In 2010-2011, CFERF published studies on the topics of: • Electronic Payments in Canada: What’s the hold up? • Beyond the numbers: The evolving leadership role of the CFO
For the first time in CFERF history, research forums were held in multiple cities across Canada. Forums were held in Vancouver, Calgary, Winnipeg, Toronto and Montreal. This change to the previous forum format allowed CFERF to engage members from across the country in the research study process. FEI Canada’s 11 chapters all donated to CFERF. CFERF also launched its first corporate donation program in the 2010-2011 year, raising $35,000. We would like to thank the following corporations who have stepped up and made an inaugural donation to the foundation: • GOLD LEVEL: Husky Energy, Manulife • SILVER LEVEL: Agrium, Imperial Oil
• Enterprise mobility: Executive perspectives on mobile business applications
• BRONZE LEVEL: Canadian Western Bank, FinEX Group
• Credit availability in Canada: 2010
• OTHER: General Electric, Marsulex Inc. / 17
FEI CANADA 2011 ANNUAL REPORT
PROFILE & COMMUNICATIONS We have now completed our three year strategic communications plan to bring our media relations in house. With the help of Christian Bellavance and the communications team, we now have the internal capacity to do so. One exciting media opportunity came when Michael Conway, Chief Executive and National President of FEI Canada, appeared on BNN with Gordon Heard, member of FEI Canada’s Committee on Corporate Reporting, to discuss the impact of IFRS on Canadian companies. FEI Canada’s first promotional video was presented at the Annual Conference in Ottawa, and is now being used by our chapters as a recruitment tool. Now available on the FEI Canada website, this video features FEI Canada member testimonials, explaining why FEI Canada is an important organization to them, their organizations, and overall to financial executives. FEI Canada’s social media project continues to / 18
garner interest from members. Nearly 800 of our members have chosen to participate in our most popular undertaking, the LinkedIn discussion group. The group is restricted to FEI Canada’s members in good standing, thus preventing possible spammers and/ or advertisers from flooding the group with unwanted promotional postings.
Our Twitter feed continues to attract interest, and is now at more than 1,300 followers. Our Twitter followers include many members from the accounting community in North America (both professional bodies and individuals), some of our national strategic partners and sponsors, and many other individuals and organizations from the finance and general business community. FEI Canada also maintains a Facebook page with links to our newsletters and photos from recent events.
STRATEGIC UPDATE – YEAR IN REVIEW
FEI CANADA AWARDS CANADA’S CFO OF THE YEAR™ AWARD Annually, FEI Canada recognizes great financial leaders with our Canada’s CFO of the YearTM Award. Each year, the nominating committee gets together and discusses at length the group of potential winners, and it is no easy decision. We are very fortunate in Canada to have so many excellent financial leaders who have helped to shield us from many of the misfortunes and mismanagement that have affected the global financial community.
This year, the outstanding CFO who we are pleased to honour is Gordon Maron, Chief Financial Officer of PCL Construction Holdings Ltd. Gordon was the CFO of PCL from 2001-2011, and is a 40-year veteran of the PCL family of companies. His ability to anticipate change and to deliver strategic financial leadership led to his appointment to the PCL Board of Directors in 1995 and his promotion to Chief Financial Officer in 2001. As CFO, Gordon implemented the financial strategy and infrastructure required to support rapid growth, in particular during the period of 2006 to 2009, when billings rose from $4.7 billion to $6.3 billion. Gordon recently transitioned to the role of Executive Vice President and will work directly with PCL’s Chief Executive Officer on capital planning, enterprise risk management and succession planning, which are vital initiatives within PCL’s multi-national corporation.
2011 Canada’s CFO of the YearTM winner Gord Maron with the FEI Canada staff
/ 19
FEI CANADA 2011 ANNUAL REPORT
FRANK S. CAPON DISTINGUISHED SERVICE AWARD FEI Canada was very pleased to present this year’s Frank S. Capon Award for distinguished volunteer service to Pierre Matuszewski of the Quebec chapter and Vic Wells of the Southern Golden Horseshoe chapter at our National Conference in Ottawa. This award honours Mr. Frank Capon, who was an outstanding FEI Canada member for 57 years, and is credited with bringing FEI to Canada in 1948. Mr. Matuszewski, a member of FEI Canada’s Quebec chapter, is Chief Executive Officer, Société Générale (Canada). He became the first Canadian to be appointed Country Head of Société Générale in Canada in 2009. As national Chair of FEI Canada, Mr. Matuszewski initiated significant changes in FEI Canada’s mission and organization and he supervised the transition to a new CEO in 2000. He also upgraded and harmonized relations with the FEI US organization, and supervised the launch of the FEI Canada website. Members have remarked on how / 20
Mr. Matuszewski is a born leader with great charisma. As president of the Quebec chapter, Mr. Matuszewski assembled a great team of volunteers and achieved great success in membership retention, and gained higher visibility for the chapter. Mr. Wells, a member of FEI Canada’s Southern Golden Horseshoe chapter, is a veteran business leader and now serves on boards of Canadian public companies, with an emphasis on audit committees. He led the Southern Golden Horseshoe chapter to a record level of membership and engagement. Mr. Wells was also Chair of CCR from 2008 until last year, and has been a CCR member since 2002. Mr. Wells was appointed as chair of CFERF in 2010 and has been a trustee since 2008. He is a hard worker who knows how to surround himself with qualified and enthusiastic colleagues. He is described as a humble, yet inspiring leader who is known for his integrity and honesty.
STRATEGIC UPDATE – YEAR IN REVIEW
Winners of the Frank S. Capon Award, Pierre Matuszewski and Vic Wells
/ 21
FEI CANADA 2011 ANNUAL REPORT
FINANCIAL PERFORMANCE REVIEW The financial results of Financial Executives International Canada (FEI Canada) include the accounts of FEI Canada and the Canadian Financial Executives Research Foundation (CFERF). FEI Canada’s activities are presented below in five categories: Membership, Events, National Strategic Partner program, CFERF and miscellaneous. Membership revenues include national dues and initiation fees received from our members, whereas membership support costs are shown within various expenditure line items. The events category details results from FEI Canada’s national annual conference held last June in Ottawa, our National Breakfast Seminar series, National Executive Development Webinar series,
/22
Infrastructure Symposium and annual SME conference. The National Strategic Partner Program includes activities with our valued sponsors as well as our prestigious annual event: Canada’s CFO of the Year™ Award. CFERF encompasses research studies and donations from members, chapters and corporations. Investment income represents interest earned on our investment portfolio. The miscellaneous category represents mainly fees collected for services rendered in relation to our career centre website. All of these activities are supported by our team at national office and various committees including our two volunteer-driven technical committees.
FINANCIAL PERFORMANCE REVIEW
KEY PERFORMANCE DRIVERS
Revenues $2,344,666 Expenses 2,142,737
$2,220,051 2,248,836
$201,929
$(28,785)
2,001
2,015
$425,000 530,697 87,330
$350,000 444,837 46,260
$841,097
Excess of revenues over expenses
Number of members
Restricted fund balance Strategic initiatives fund balance Capital asset fund balance Total fund balance
2011
$1,043,027
2010
/ 23
FEI CANADA 2011 ANNUAL REPORT
RESULTS OF OPERATIONS FEI Canada reported an excess of revenues over expenses of $201,929 for the year ended June 30, 2011, compared to an excess of expenses over revenues of $28,785 a year ago. REVENUES Revenues increased by $125,000 or 6% from a year ago, to $2,345,000. Membership dues and fees, which represented 36% of our revenues, increased $15,000 over last year. Event revenues increased by $85,000 and grew to a 37% share of revenues, mainly
/ 24
stemming from stronger contributions from our annual conference. Strategic partnerships declined by $47,000 to 15% of revenues. CFERF’s revenues rose by $81,000 or 57%, due to an increased number of research studies published during the year and to higher donations. Investment income at $29,000 was $4,000 lower than last year. Miscellaneous revenue declined $6,000 compared to last year due to a non-recurrent sales tax refund received in 2010 offset by higher use of our job board this year.
FINANCIAL PERFORMANCE REVIEW
REVENUES
/ 25
FEI CANADA 2011 ANNUAL REPORT
EXPENSES Expenses of $2,143,000 decreased $107,000 or 5% from a year ago. Compensation expenses, which represented 42% of FEI Canada’s expenditures, decreased $26,000 over last year. Excluding pension plan costs, compensation increased $97,000, largely due to the hiring of additional research and communications staff. The cost of our pension plan declined $123,000 compared to last year, as increases in the value of our investment portfolio were only partially offset by a higher pension plan obligation. Event costs represented 24% of our total expenses, down $16,000 or 3% from last year, largely due to cost savings from our annual conference. Administration, occupancy and other costs, accounting for 19% of expenditures, declined $46,000 from 2010
/ 26
due to cost savings. Thirteen percent of our cost base was spent on CFERF’s research and fundraising programs, an increase of $49,000 from last year and largely due to strengthening research capabilities. Savings of $37,000 in the cost of our National Sponsorship program stem from our Canada’s CFO of the Year™ Award program as this year’s loss was lower than last year. Additional savings stem from not holding our regular “thank you” party for sponsors and a different mix of breakfast seminars vs. webinars. Our spending on profile, branding and advocacy was down $32,000, a direct result of the above-mentioned strengthening of our in-house communications capabilities.
FINANCIAL PERFORMANCE REVIEW
EXPENSES
/ 27
FEI CANADA 2011 ANNUAL REPORT
/ 28
FEI CANADA SUMMARY FINANCIAL STATEMENTS
FEI CANADA SUMMARY FINANCIAL STATEMENTS MANAGEMENT’S RESPONSIBILITY FOR FINANCIAL REPORTING Management is responsible for the preparation of the summary financial statements of Financial Executives International Canada/Dirigeants Financiers Internationaux du Canada (FEI Canada) and for their integrity and objectivity. These financial statements have been prepared in accordance with Canadian generally accepted accounting principles appropriate in the circumstances and have been approved by the board of directors. We maintain the necessary system of internal controls to ensure the transactions are authorized, assets are safeguarded and proper records are maintained. Our board of directors, upon recommendation from our audit and finance committee, reviews and monitors the quality and integrity of our financial statements, ensures effectiveness of systems and disclosure and internal controls over financial reporting, and reviews and provides oversight in the management of risks. Hillborn Ellis Grant LLP, our independent external auditors, has been appointed by our board of directors on the recommendation of the audit and finance committee. Their appointment was ratified at the annual meeting of members. The auditors have full and unrestricted access to the audit and finance committee to discuss their audit and related findings. They have performed an independent audit of our consolidated financial statements and expressed an unmodified audit opinion. They have also prepared a report on our summary financial statements which is presented on pages 32-33. Toronto, Ontario October 6, 2011
Michael Conway, CA, ICD.D Chief Executive and National President
Line Trudeau, CA ,MBA Chief Financial Officer
/ 29
FEI CANADA 2011 ANNUAL REPORT
AUDITORS’ REPORT ON SUMMARY FINANCIAL STATEMENTS To the Members of Financial Executives International Canada/ Dirigeants Financiers Internationaux du Canada The accompanying summary financial statements, which comprise the summary statement of financial position as at June 30, 2011 and the summary of revenues and expenses for the year then ended, and related note, are derived from the audited financial statements of Financial Executives International Canada/ Dirigeants Financiers Internationaux du Canada for the year ended June 30, 2011. We expressed an unmodified audit opinion on those financial statements in our report dated October 6, 2011. The summary financial statements do not contain all the presentation and disclosures required by Canadian generally accepted accounting principles. Reading the summary financial statements, therefore, is not a substitute for reading the audited financial statements of the Financial Executives International Canada/ Dirigeants Financiers Internationaux du Canada. MANAGEMENT’S RESPONSIBILITY FOR THE SUMMARY FINANCIAL STATEMENTS Management is responsible for the preparation of a summary of the audited financial statements on the basis described in the note to the summary financial statements. AUDITOR’S RESPONSIBILITY Our responsibility is to express an opinion on the summary financial statements based on our procedures, which were conducted in accordance with Canadian Auditing Standard (CAS) 810, “Engagements to report on Summary Financial Statements”.
/ 30
FEI CANADA SUMMARY FINANCIAL STATEMENTS
OPINION In our opinion, the summary financial statements derived from the audited financial statements of Financial Executives International Canada/ Dirigeants Financiers Internationaux du Canada for the year ended June 30, 2011 are a fair summary of those financial statements, on the basis described in the note to the summary financial statements.
Toronto, Ontario October 6, 2011
Chartered Accountants Licensed Public Accountants
/ 31
FEI CANADA 2011 ANNUAL REPORT
SUMMARY STATEMENT OF FINANCIAL POSITION 2011 $
As at June 30
ASSETS Current Assets Capital Assets
LIABILITIES Current Liabilities Long-term liability Accrued Pension Liability
FUND BALANCES Operating Restricted Strategic Invested in Capital Assets
/ 32
2010 $
2,570,114
2,353,776
87,330
46,260
2,657,444
2,400,036
1,480,646
1,309,469
133,772
249,470
1,614,418
1,558,939
425,000 530,697 87,330
350,000 444,837 46,260
1,043,027
841,097
2,657,444
2,400,036
Louis Marcotte, FCA
Chair, Board of Directors
2010-2011
Bill Ross, CA Chair, Audit & Finance Committee 2010-2011
FEI CANADA SUMMARY FINANCIAL STATEMENTS
SUMMARY STATEMENT OF REVENUES AND EXPENSES Year ended June 30
REVENUES Membership dues and initiation fees Events National Strategic Partner program CFERF research studies and donations Investment income Miscellaneous
EXPENSES Compensation Events Administration, occupancy and other costs CFERF costs and awards granted National Strategic Partner program Profile, branding & advocacy Excess of revenues over expenses (expenses over revenues) for year
2011 $
2010 $
851,311 873,130 349,292 224,617 29,511 16,805
836,144 787,841 396,125 143,641 33,851 22,449
2,344,666
2,220,051
897,440 507,096 399,778 287,412 37,242 13,769
923,215 522,689 445,229 238,306 74,171 45,226
2,142,737
2,248,836
201,929
(28,785)
/ 33
FEI CANADA 2011 ANNUAL REPORT
NOTE TO SUMMARY FINANCIAL STATEMENTS June 30, 2011 DESCRIPTION OF ORGANIZATION AND BASIS OF PRESENTATION Financial Executives International Canada/Dirigeants Financiers Internationaux du Canada (FEI Canada) is a not-for-profit membership organization established to serve as an effective advocate for the business community with respect to financial and accounting matters, and the reporting thereon, and to improve the communication of financial information to all interested parties. It is a registered nonprofit organization, which is exempt from income taxes under the Income Tax Act (Canada). These summary financial statements have been prepared from the audited financial statements of Financial Executives International Canada/Dirigeants Financiers Internationaux du Canada (the “Organization”) for the year ended June 30, 2011, on the basis that is consistent, in all material respects, with the audited financial statements of the Organization except that no statement of changes in fund balances and statement of cash flows have been presented and only selected information disclosed in the notes to the financial statements has been presented. The summary financial statements include the accounts of the organization’s controlled foundation, Canadian Financial Executives Research Foundation/Fondation De Recherche Des Dirigeants Financiers Du Canada (CFERF). CFERF is separately incorporated and was formed to promote, conduct and sponsor research and publishing projects on business management topics. FEI Canada provides administrative support and management to CFERF and is not remunerated for this support. FEI Canada is affiliated with chapters throughout Canada, and with Financial Executives International in the United States. Each chapter is independently responsible for funding and managing its operations and, accordingly, are not summarized in these financial statements.
/ 34
Full financial statements may be viewed on the FEI Canada website at www.feicanada.org/fullfinancialstatements/2011.
FEI CANADA CELEBRATES ITS VOLUNTEERS
2010-2011 BOARD OF DIRECTORS Chair Louis Marcotte Quebec (G) Vice Chair Ray Hawrelak Edmonton (A) (G) Immediate Past Chair Karyn Brooks Quebec (G) Chair, Chapter Leadership Council Lisa Dorian Vancouver Chair, Audit & Finance Committee Bill Ross Edmonton (A) Chair, Committee on Corporate Reporting Tyrone Cotie Atlantic Provinces Chair, Issues & Policies Advisory Committee William Hewitt Toronto Chair, 2011 Conference Committee Louis O’Brien National Capital Region Chair, CFERF Vic Wells S. Golden Horseshoe Directors-at-Large Jim Fergusson Calgary (A) Leslie Markow Toronto Susan Nemec Winnipeg (A) Bob Rollwagen S. Golden Horseshoe (A) James Saretsky Calgary Debbie Stein Calgary Chief Executive & National President Michael Conway Toronto (G) Secretary & CFO Line Trudeau S. Golden Horseshoe (G) Chair, FEI (U.S.) Brian Ruttencutter Orange County Vice Chair, FEI (U.S.) George Boyadjis Twin Cities President & CEO, FEI (U.S.) Marie N. Hollein Chicago (A = Audit & Finance Committee) (G = Governance Committee)
/ 35
FEI CANADA 2011 ANNUAL REPORT
FEI CANADA NATIONAL STAFF Chief Executive & National President Michael Conway Chief Financial Officer Line Trudeau Vice President, Research & Communications Christian Bellavance Senior Writer Laura Bobak Communications & Research Manager Melissa Gibson Director, Membership Development Cathy Jackson Membership & Chapter Coordinator Sharon Bradshaw Membership Coordinator Karen Danis Director of Events Cameal Soverall Events Manager Andrea Cooney Director of Sponsorship Don Comish Office Administrator Pat Todd
/ 36
FEI CANADA CELEBRATES ITS VOLUNTEERS
CHAPTER LEADERSHIP COUNCIL Chair Lisa Dorian, Vancouver Chapter Representatives Nicole Archibald, Southwestern Ontario Brad Bardua, Vancouver Patrick Bieleny, Edmonton Fred Burke, Toronto George Chiarucci, Toronto Dan Clarke, Atlantic Provinces Brad Cruickshank, Vancouver Tom Evans, Southern Golden Horseshoe Azam Foda, Southern Golden Horseshoe Carl Gauvreau, Quebec Mona Hale, Edmonton
Leah Halpenny, Toronto Nola Heale, Calgary Dwayne Henley, Winnipeg Betty Hoffart, Regina Michel Houle, National Capital Region Gail Kruger, Regina Sylvie Lafontaine, National Capital Region Bertrand Lauzon, Quebec Grant McNeil, Calgary Maureen Sullivan, Atlantic Provinces Bev Szaura, Winnipeg Drew Thomson, Calgary
National Louis Marcotte, Quebec Ray Hawrelak, Edmonton Michael Conway, FEI Canada Line Trudeau, FEI Canada Cathy Jackson, FEI Canada International Marie Hollein, FEI U.S. Brian Ruttencutter, Orange County George Boyadjis, Twin Cities
/ 37
FEI CANADA 2011 ANNUAL REPORT
ISSUES AND POLICIES ADVISORY COMMITTEE (IPAC) IPAC STEERING COMMITTEE IPAC Chair William Hewitt, Toronto Chief Executive & National President Michael Conway, Toronto Chair – Taxation Barry Gorman, Atlantic Provinces and Peter Effer, Toronto Chair – Governance & Risk Wayne Braun, Calgary Chair – Treasury & Capital Markets Bill Ross, Edmonton Chair – Pensions Peter Donovan, Toronto Chair – Private Company Issues James Saretsky, Calgary Chair – Information Technology Timothy Spielman, Calgary
2010 – 2011 IPAC CONTRIBUTORS AND TASK FORCE MEMBERS Bob Angel, Toronto Darren Andruko, Calgary Bruce Bailey, Toronto Michael Boychuk, Quebec Rod Butcher, Ryan ULC Anne Burpee, Toronto Bill Brushett, Grant Thornton Nigel Byars, Toronto Tyrone Cotie, Atlantic Provinces Larry Cooper, Toronto Bev Davies, Winnipeg Victoria Davies, Toronto Marc Diamant, Toronto / 38
Lisa Dorian, Vancouver Asher Drory, Toronto Tom Evans, Toronto Norm Ferguson, Edmonton Jim Fergusson, Calgary John Forester, Toronto Dennis Fortnum, KPMG Carl Gauvreau, Quebec John Glicksman, Toronto Barry Gorman, Atlantic Provinces Tony Hooper, Toronto John Harris, Grant Thornton William Hewitt, Toronto
FEI CANADA CELEBRATES ITS VOLUNTEERS
Gordon Heard, Southern Golden Horseshoe Sonja Johansen, Regina Natalia Kochetova-Kozloski, Atlantic Provinces Amit Kapur, Toronto Ken Kember, National Capital Region Naresh Khosla, Toronto Nancy Lala, Toronto Hugh Lindsay, Vancouver Kevin Leier, Regina Shari Laubenstein, Calgary Marc Malouin, Quebec Tim McGillicuddy, Edmonton Florian Meyer, Toronto Sunil Mistry, KPMG Stan Pasternak, Toronto Judith Purves, Toronto Ajay Rao, Toronto
James Saretsky, Calgary Darren Schrader, Vancouver Timothy Spielman, Calgary Grant Smith, National Capital Region Brad Sutherland, Toronto Darla Sycamore, Toronto Dana Thiessen, Winnipeg Gerry Wahl, Vancouver John Weerdenburg, National Capital Region David Wood, Atlantic Provinces Lisa Zingaro, Toronto Darla Sycamore, Toronto Dana Thiessen, Winnipeg Gerry Wahl, Vancouver John Weerdenburg, National Capital Region David Wood, Atlantic Provinces Lisa Zingaro, Toronto
/ 39
FEI CANADA 2011 ANNUAL REPORT
COMMITTEE ON CORPORATE REPORTING (CCR) Chair Vice Chair
Tyrone Cotie, Atlantic Provinces Sean Carleton, Calgary
Nicole Archibald, Southwestern Ontario Joanne Boyes, Regina Karyn Brooks, Quebec Angela Butler, Calgary Anne Burpee, Toronto Susan Campbell, Toronto Fabiana Chubbs, Vancouver Kathy Conway, Vancouver Marc-Antoine Daoust, Quebec Tim Deacon, Toronto Robert Eisner, Regina Brian Fiedler, Toronto Carolyn Graham, Edmonton Murray Harris, Calgary Gordon Heard, Southern Golden Horseshoe Monica Hubley, Atlantic Provinces Edward Jonasson, Toronto Nancy Lala, Toronto
/ 40
Melanie Litoski, Calgary Carol Lyons, Toronto Philip Maguire, Toronto Glenn Menuz, Calgary Lucio Milanovich, Toronto Neil Robertson, Calgary Tim Smart, Toronto Pamela Steer, Toronto Debbie Stein, Calgary Darla Sycamore, Toronto Winson Tang, Calgary Gaston Tano, Toronto Mark Walsh, Toronto John Weerdenburg, National Capital Region Vic Wells, Southern Golden Horseshoe Cheryl Yaremko, Vancouver Tim Zahavich, Southern Golden Horseshoe
FEI CANADA CELEBRATES ITS VOLUNTEERS
OTTAWA 2011 CONFERENCE COMMITTEE Chair Louis O’Brien, National Capital Region Duncan Burrill, National Capital Region Johanne Charbonneau, National Capital Region Dave Clark, National Capital Region Dean Cosman, National Capital Region Ken Kember, National Capital Region Sandra Lavoy, Robert Half John MacKinnon, National Capital Region Suzanne Morris, National Capital Region Judy Munro, Toronto Clary Ottman, National Capital Region Maureen Sullivan, Atlantic Provinces (2012 Conference Chair) Laura Talbot-Allan, National Capital Region Vicky Tumiotto, Quebec Denys Vermette, National Capital Region Danley Yip, Vancouver
/ 41
FEI CANADA 2011 ANNUAL REPORT
THE CANADIAN FINANCIAL EXECUTIVES RESEARCH FOUNDATION (CFERF) Studying emerging financial management issues in Canada, with the aim of increasing competitive capabilities of Canadian financial leaders and their organizations.
BOARD OF TRUSTEES Chair Vic Wells, Toronto Vice Chair Mark Walsh, Toronto Vice President, Research & Communications Christian Bellavance Chief Executive & National President Michael Conway, Toronto Corporate Secretary & CFO Line Trudeau, Southern Golden Horseshoe Tom Evans, Southern Golden Horseshoe Bill Hewitt, Toronto Richard Iwaniuk, Edmonton Nancy Lala, Toronto Ray McCormick, Atlantic Provinces Per Mokkelbost, National Capital Region Massood Oroomchi, Toronto Geoffrey Poitras, Vancouver Tim Spielman, Calgary Debbie Stein, Calgary *Pierre Toth, Quebec *We would like to take this opportunity to remember and honour our friend and colleague, Pierre Toth, a trustee on the 2010-11 CFERF board, who passed away November 5, 2010.
/ 42
THE CANADIAN FINANCIAL EXECUTIVES RESEARCH FOUNDATION (CFERF)
WE GREATLY ACKNOWLEDGE THE CONTRIBUTIONS OF OUR DONORS: CORPORATE DONORS: Gold ($10,000 +): Husky Energy Inc. Manulife Financial Corp. Silver ($5,000-10,000): Agrium Inc. Imperial Oil Ltd. Bronze (($1,000-5,000): Canadian Western Bank Group FinEX Group Nexen Inc. Other donors: Marsulex Inc. General Electric Other donors: Marsulex Inc. General Electric
Chapter Donations: We would like to thank all of FEI Canada’s 11 chapters for their generous donations to CFERF.
/ 43
FEI CANADA 2011 ANNUAL REPORT
PERSONAL DONATIONS: Donors (up to $100) Bryan Albo Anthony Ariganello Gerhard Barnard Anne Marie Barnhart Dale Bencharsky Wayne Bobye Edward Brown David Case Kathy Conway Jeffrey Cook
Nick Creatura John Ferguson Les Fovenyi David Garland Albert Jones William Martin Brian Mascarenhas Shawn McMillan Carl McMurray Massood Oroomchi
George Prosk Kasey Reese Hank Sam Peter Scott Tim Spielman Line Trudeau Gerry Wagner Mark Walsh Ian Walton
Supporter ($100-249): Craig Bot Christian Bellavance Patrick Bieleny Kent Carson Tyrone Cotie
Pierre Gauvreau Carl Hartigan Oliver H端ls Leslie Markow Mary Martin
Brian McAskill Douglas Proll Greg Reiser Bill Ross Diane Yuill
Patron ($250-499): Michael Conway Louis Marcotte* Robert McFarlane
Benefactor ($500+): Phil Connell Harry Schaefer Bruce Waterman Vic Wells
*Louis Marcotte generously donated his outgoing chair gift to CFERF. / 44
NATIONAL STRATEGIC PARTNERS
/ 45
FEI CANADA 2011 ANNUAL REPORT
NATIONAL STRATEGIC PARTNERS Thank you to our 2010-2011 National Strategic Partners for their ongoing support.
/ 46
NATIONAL STRATEGIC PARTNERS
/ 47