FEI Canada 2012 Annual Report
Your knowledge, your network, your career... ...Our focus
FEI CANADA 2012 ANNUAL REPORT
This report is full of links like these, and hyperlinked text, highlighted in blue. These links will allow you to read more about FEI Canada’s programs, committees, awards and research – just click. We hope this allows you to get exactly what you want from this report. Enjoy!
QUICK CLICK LINKS: Tell me more about FEI Canada The benefits of being a member
TABLE OF CONTENTS
TABLE OF CONTENTS Message from the CEO & the Chair of the Board of Directors
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Leaders
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Networking and knowledge exchange
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Advocacy
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Research
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Financial performance review
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FEI Canada summary of financial statements
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National Strategic Partners
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FEI CANADA 2012 ANNUAL REPORT
MESSAGE FROM THE CEO AND THE CHAIR OF THE BOARD OF DIRECTORS FEI Canada is striving to improve the value of your • membership. Our volunteer leadership and staff is hard at work learning how to best meet and exceed the needs of members and prospective members. Like many other professional associations, FEI Canada is challenged with changing demographics, triggered in part by the increase in retirement of baby boomers and changes in how we interact with our peers. In order to maintain and expand our membership, we must continue to adapt to a changing generation of financial leaders. We are tackling this issue by consulting with our members, prospective members and experts. Thanks to all of you who participated in our spring membership survey. When we pored over the results, • we wanted to understand what you felt was the greatest value of an FEI Canada membership, and what you thought encouraged your peers to join and to stay members. To help us, we engaged a business school to do a market research study. They undertook one-on-one interviews with members and prospective members , and the insights they gleaned helped us better understand the motivations of Canadian financial executives. Observations from the market research confirmed that members were looking for various things that we have already incorporated into our strategic initiatives: •
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Networking, combined with professional development (PD): Members value networking with their peers, especially if it goes beyond a mere cocktail party chat and involves the sharing of work experiences that will help members solve challenges or further their career. FEI Canada will be organizing more roundtable events to trigger such helpful sharing. Feedback from a participant in one of our CFERF Executive Research Forums was that this type of event was one of the most powerful peer learning experiences from which he has ever benefitted.
•
More programming on leadership and management issues: Consistent with trends that the CFO role is evolving into a position that is far more comprehensive in scope, members expressed an interest in non-traditional and “soft” skills. In response, more innovative programming will be introduced in the near future and leadership topics were added to the 2012 Annual Conference agenda. For those who were not able to make it to St. John’s in June, check out the video links that you will find in this report, including our CFO Leadership panel with the dynamic trio of Tim Hortons’ CFO Cynthia Devine, PCL’s EVP Gord Maron and prominent Newfoundland business leader Jo Mark Zurel. Organizing members by Communities of Interest Networks (“COINs”): Many members want more interaction with those in their industry, sector or other community of interest. While FEI Canada’s current member grouping by geography is convenient for inperson meetings, we foresee using the COIN concept for breakout discussions at certain live events as well as virtual connections (LinkedIn groups), webinars and teleconference discussions. Our first COIN was launched recently when the Private Company Roundtable was formed to provide private company members with a forum to exchange their business ideas and concerns. Personalized new member recruitment, on-boarding and mentorship: Many new and prospective members have indicated they’d like their more experienced peers to personally welcome them into our organization and show them the ropes. Some would even like to be mentored by our more senior members. As we are quite a large organization, we would love to hear from those members who would be willing to act as mentors or as hosts at chapter meetings.
MESSAGE FROM THE CEO AND THE CHAIR OF THE BOARD OF DIRECTORS
Our prospects for continued success are enhanced by the dedication of our volunteer leadership and staff, and we thank all who have contributed and continue to contribute to the advancement of FEI Canada’s strategic goals for their efforts and enthusiasm. This interactive annual report highlights various accomplishments over the past year that was made possible by these efforts.
Michael Conway(L) thanks Ray Hawrelak (R) for his time as FEI Canada Chair
These highlights include: •
The celebration of the 10th anniversary milestone of • Canada’s CFO of the Year™ Award, marking a decade of providing much-deserved recognition of our country’s CFOs.
As a result of our advocacy efforts, the issue of tax simplification is gaining legs. We thank the many hard-working members of our technical committees, including our tax task force chaired by Peter Effer.
•
Our research institute, CFERF, has become selfsustaining and continues to produce high-quality research studies that members appreciate. These have attracted increased media attention, reaching a broader audience of financial leaders through publications such as Canadian Treasurer, Corporate Risk and various business and finance newspapers.
Many members commented on the high-quality of content and jovial atmosphere at our annual conference, held this year in St. John’s, Newfoundland.
•
In closing, we would like to invite you to email us (mconway@feicanada.org) to let us know how we can better serve you.
Michael Conway, FCA, ICD.D Ray Hawrelak, CA Chief Executive & National President Chair, 2011-2012 Board of Directors
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FEI CANADA 2012 ANNUAL REPORT
FEI CANADA’S LEADERS Leader: A person who leads or commands a group, organization, or country. FEI Canada’s leadership is the driving force of the organization. Our Board of Directors is made up of dedicated volunteers from across Canada. Our Chapter Leadership Council and Membership Committee are made up of volunteers from FEI Canada’s 11 chapters. FEI Canada’s 11 chapters each have a set of amazing volunteers that provide our members with local support, professional development and thought leadership. Thank you to all of our volunteers!
2011-2012 Board of Directors Chair: Ray Hawrelak, Edmonton (G) Vice Chair: Lisa Dorian, Vancouver (A), (G) Immediate Past Chair: Louis Marcotte, Quebec (G) Chair, Chapter Leadership Council: Bob Rollwagen, Southern Golden Horseshoe (A) Chair, Audit & Finance Committee: Debbie Stein, Calgary (A) Chair, CFERF: Vic Wells, Southern Golden Horseshoe Chair, Committee on Corporate Reporting: Sean Carleton, Calgary Chair, Issues and Policies Committee: Bill Ross, Edmonton Chair, 2013 Conference Committee: Maureen Sullivan, Atlantic Provinces Co-Chair of Sponsorship & Business Development: James Saretsky, Calgary Chair, Membership Committee: Danley Yip, Vancouver Canada’s CFO of the Year™ Award Liaison: Tim Zahavich, Southern Golden Horseshoe Director: Bev Davies, Winnipeg (A) Director: Mark Walsh, Toronto (A) Chief Executive & National President: Michael Conway, Toronto (G) Secretary & CFO: Line Trudeau, Southern Golden Horseshoe (G) QUICK CLICK LINKS: Chair, FEI (U.S.): George Boyadjis, Twin Cities Vice Chair, FEI (U.S.): Marsha Hunt, Indianapolis Being an FEI Canada volunteer President & CEO, FEI (U.S.): Marie Hollein, Chicago A = Audit and Finance Committee, G = Governance Committee
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Volunteer testimonials
FEI CANADA’S LEADERS
FEI Canada 2011-2012 leadership meeting
2011-2012 Chapter Leadership Council Chair: Bob Rollwagen, Southern Golden Horseshoe Chapter representatives: Nicole Archibald, Southwestern Ontario Bradley Bardua, Vancouver George Chiarucci, Toronto Tyrone Cotie, Atlantic Provinces Susan Susan Deakin, Deakin, Southwestern Southwestern Ontario Ontario
Elysia Estee, Southern Golden Horseshoe Azam Foda, Southern Golden Horseshoe Carl Gauvreau, Quebec Mona Hale, Edmonton Leah Halpenny, Toronto Cynthia Hansen, Edmonton Nola Heale, Calgary Dwayne Henley, Winnipeg
Betty Hoffart, Regina Gail Kruger, Regina Sylvie Lafontaine, National Capital Region Grant McNeil, Calgary Beverley Szaura, Winnipeg Angela Yap, Vancouver
National: Michael Conway, FEI Canada Lisa Dorian, Vancouver Ray Hawrelak, Edmonton Cathy Jackson, FEI Canada Line Trudeau, FEI Canada
2011-2012 Membership Committee Chair: Danley Yip, Vancouver Chapter representatives: Geoffrey Baldwin, Atlantic Provinces Gerhard Barnard, Calgary Jordan Beallor, Toronto Jean Paul Beaulieu, Quebec
Susan Berggren, Edmonton Dawn Butler, Southwestern Ontario John Cole, Winnipeg Ernest Doyle, Southern Golden Horseshoe Robert Hibberd, Vancouver Gail Kruger, Regina
Sylvie Lafontaine, National Capital Region Marie-Josee Marsan, Quebec Jason Vandenberg, Edmonton Russell Wong, Toronto
National: Michael Conway, FEI Canada Cathy Jackson, FEI Canada Line Trudeau, FEI Canada
FEI Canada National Staff Chief Executive & National President: Michael Conway Chief Financial Officer: Line Trudeau VP, Research & Communications: Christian Bellavance Senior Writer: Laura Bobak Communications & Research Manager: Melissa Gibson Director, Membership Development: Cathy Jackson
Membership, Marketing & Chapter Coordinator: Tatum Hasan Membership & National Events Coordinator: Sharon Bradshaw Director of Events: Rita Plaskett Events Manager: Andrea Cooney Director of Sponsorship: Don Comish Office Administrator: Pat Todd
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FEI CANADA 2012 ANNUAL REPORT
2011-2012 CHAPTER BOARDS Atlantic Provinces Chapter President: Tyrone Cotie Geoffrey Baldwin Raymond McCormick David Pangman Maureen Sullivan Ian Tramble Carl Vincent
Southern Golden Horseshoe Chapter President: Azam Foda Dan Bowes Norman Col Ernest Doyle Elysia Estee Thomas Evans
President: Carl Gauvreau Catherine Allard David Anderson Denis Asselin Jean Paul Beaulieu Ross Corcoran Marc Godin Bertrand Lauzon Alix Mandron
Ananth Koovappady Florian Meyer Robert Murison Bob Rollwagen Line Trudeau
Regina Chapter President: Betty Hoffart Robert Eisner Brian Fergusson Gail Kruger Gary Maystruck Marty Meloche Ed Meredith Laurie Powers John Ross Christine Short Jeff Stepan
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Quebec Chapter Louis Marcotte Marie-Josee Marsan Denis Pellerin Pierre Richard Claude Samson Paul Stinis Robert St-Jean Vicky Tumiotto
Southwestern Ontario Chapter President: Susan Deakin Nicole Archibald Dawn Butler David Corner James Knowles Gitta Kulczycki Lynn Logan Lloyd Monteith
Calgary Chapter President: Nola Heale Gerhard Barnard Brian Callaghan Vic Fitch Tariq Malik Grant McNeil Terene Tharagan Brad Thompson Drew Thomson James Saretsky
Click on the chapter name to learn more National Capital Region Chapter President: Sylvie Lafontaine Ken Kember Louis O’Brien Grant Smith John Weerdenburg
Winnipeg Chapter President: Dwayne Henley Bryan Albo Allan Beaudry John Cole Bev Davies Jeannie Lee Larry Nentwig Beverley Szaura
Edmonton Chapter President: Mona Hale Susan Berggren Patrick Bieleny Darren Buma Cynthia Hansen Ron Helmhold Eric Klein Daniel Lefaivre Don Sager Jason Vandenberg
Toronto Chapter President: George Chiarucci Jordan Beallor Kay Brekken Jonathan Brindley Fred Burke Leah Halpenny Naresh Khosla Nancy Lala Sharlene Locke Leslie Markow June McAlarey Brian McAskill David Minas Steve Rosen Cliff Truax Russell Wong
Vancouver Chapter President: Brad Bardua Roger Bissoondatt Fabiana Chubbs Brad Cruickshank Marco Faccone Robert Hibberd Doug King Hugh Lindsay C. Douglas Morison Issa Nakhleh Jeff Shickele Alan Wong Angela Yap Cheryl Yaremko Danley Yip
NETWORKING AND KNOWLEDGE EXCHANGE
NETWORKING AND KNOWLEDGE EXCHANGE Network: An extended group of people with similar interests or concerns who interact and remain in informal contact for mutual assistance or support. Knowledge / Exchange: Information and skills acquired through experience or education; the theoretical or practical understanding of a subject / An act of giving one thing and receiving another (especially of the same type or value) in return. Every year FEI Canada offers timely, executive level programming to our members. Rather than discuss what we did in the last year, we thought that our events could speak for themselves. Our CFO TV and Youtube channels house the latest and greatest event footage, as well as an archive of past happenings. Click the images below to see event video footage and experience what FEI Canada has to offer.
NATIONAL BREAKFAST SEMINAR AND WEBINAR VIDEOS The CFO and the Audit committee Credit Availability Barometer 2011 Succeeding at Succession Managing the Risk of Cheque Fraud
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FEI CANADA 2012 ANNUAL REPORT
View the 2012 conference agenda
Read our special newsletter celebrating the conference
CONFERENCE KEYNOTE SPEAKER VIDEOS – JUNE 6-8, 2012 Robert P. Kelly, former Chairman & CEO, BNY Mellon and currently Chancellor, St. Mary’s University Newfoundland Resource Panel: Elizabeth Beale, President & CEO, Atlantic Provinces Economic Council Derrick Sturge, VP Finance & CFO, Nalcor Energy Shawn Skinner, Senior Advisor, Energy & Resources Leader - NL, Deloitte Praveen Jha, Chief (Operation), Canada Project, Tata Steel Mandy Shapansky, President & CEO, Xerox Canada CFO Leadership Panel: Gordon Maron, Executive Vice President (former Chief Financial Officer), PCL Construction Holdings Ltd. Jo Mark Zurel, President, Stonebridge Capital Inc. and former SVP & CFO, CHC Helicopter Corp. Cynthia Devine, Chief Financial Officer, Tim Hortons Inc. Chris Flanagan, Director, 48 Degrees Inc. (Moderator)
We would like to thank all of our conference speakers, including General Rick Hillier for his inspiring closing luncheon Keynote address.
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Phil Fontaine, CEO, Ishkonigan Consulting & former National Chief of the Assembly of First Nations
NETWORKING AND KNOWLEDGE EXCHANGE
2011-2012 conference committee Chair: Maureen Sullivan, Atlantic Provinces Chapter representatives: Roger Bissoondatt, Vancouver Dan Clarke, Atlantic Provinces Tyrone Cotie, Atlantic Provinces Jim Fergusson, Calgary Bill Gullage, Atlantic Provinces Natalia Kochetova–Kozloski, Atlantic Provinces Anath Koovapaddy Southern Golden Horseshoe Judy Munro, Toronto Louis O’Brien, National Capital Region Brian Rendell, Atlantic Provinces Carl Vincent, Atlantic Provinces
National: Christian Bellavance, FEI Canada Sharon Bradshaw, FEI Canada Don Cormish, FEI Canada Michael Conway, FEI Canada Andrea Cooney, FEI Canada Rita Plaskett, FEI Canada Pat Todd, FEI Canada
We kissed the cod and rocked the rock: Photo reel from the 2012 FEI Canada National Conference in St. John’s, Newfoundland
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FEI CANADA 2012 ANNUAL REPORT View the CFOY website
TM TM
Read our newsletter celebrating Colleen Johnston, our 2012 winner
Presenting sponsors Kathryn Bolt, Michael Conway, and Bill McFarland congratulate Canada’s CFO of the YearTM Colleen Johnston, CFO of TD Bank Group.
Learn more about the Capon Award
FRANK S. CAPON AWARD
FOR DISTINGUISHED SERVICE AT FEI CANADA
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Dr. T. Ross Archibald, with his wife Vonnie and daughter Nicole Archibald. Nicole is also an FEI Canada member and volunteer.
Read our newsletter celebrating T. Ross Archibald, our 2012 winner
NETWORKING AND KNOWLEDGE EXCHANGE
The changing role of financial executives in governance
Closing keynote – David Rubenstein
“Ask the expert” – An interactive Q&A with experienced CEO/CFOs & current executive mentors
What’s in store for the Canadian private equity and venture capital industry: trends, challenges and opportunities
Cloud computing
Where and how are leading Canadian pension plans investing in private equity?
Economic impact on Canada’s small and mid-sized firms
The rise of activist investing
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FEI CANADA 2012 ANNUAL REPORT
ADVOCACY
Advocacy: Public support for, or recommendation of, a particular policy. FEI Canada’s seven advocacy committees develop public positions, provide guidance and expert opinion on emerging issues relevant to FEI Canada members, and act as advisors on issues of current importance to industry groups, government, associations, and other constituents who will benefit from the impartial council of the Committee. The committees include members from across Canada, and from a variety of industry groups. Recommendations from the committees often guide FEI Canada’s research.
Issues and Policies Committee (IPAC) Chair: Bill Ross, Edmonton Aside from CCR, all technical committees fall under the umbrella of IPAC.
Treasury and Capital Markets Committee Chair: Tyrone Cotie, Atlantic Provinces Andrew Antoniadis, Quebec Michael Boychuk, Quebec Ross Campbell, Toronto Mark Donaghy, Toronto William Hewitt, Toronto Ray McCormick, Atlantic Provinces Stan Pasternak, Toronto Bill Ross, Edmonton Christian Settano, Quebec Paul Stinis, Quebec
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Taxation Committee Chair: Peter Effer, Toronto Rod Butcher, Ryan Tom Evans, Southern Golden Horseshoe James Fergusson, Calgary Barry Gorman, Atlantic Provinces William Hewitt, Toronto Tim McGillicuddy, Edmonton Ken Parker ,Calgary Grant Smith, National Capital Region Tim Zahavich, Southern Golden Horseshoe
Information Technology Committee Chair: Timothy Spielman, Calgary James Fergusson, Calgary Carl Gauvreau, Quebec Ken Kember, National Capital Region Naresh Khosla, Toronto Judith Purves, Toronto Bill Ross, Edmonton Debbie Stein, Calgary Lisa Zingaro, Toronto
Learn more about our Technical Committees
FEI Canada Comment Letters
Governance and Risk Committee Co-Chairs: Wayne Braun, Calgary Lisa Dorian, Vancouver Marc Diamant, Toronto Robert Angel, Toronto Nigel Byars, Toronto Warren Cabral, Edmonton Bev Davies, Winnipeg Victoria Davies, Toronto Asher Drory, Toronto Tom Evans, Southern Golden Horseshoe John Glicksman, Toronto Hubert Huang, Toronto Natalia Kochetova-Kozloski, Atlantic Provinces Nancy Lala, Toronto Hugh Lindsay, Vancouver Craig Pattinson, Toronto Vic Wells, Southern Golden Horseshoe Lisa Zingaro, Toronto
Pension Committee Chair: Peter Donovan, Toronto Vice Chair: Norm Ferguson, Edmonton Nigel Byars, Toronto William Hewitt, Toronto Tony Hooper, Toronto Gerry Wahl, Vancouver
ADVOCACY
Private Company Committee Co-Chairs: Tim Zahavich, Southern Golden Horseshoe Gordon Heard, Southern Golden Horseshoe Bruce Bailey, Toronto Anne Burpee, Toronto Bill Brushett, Grant Thornton Larry Cooper, Toronto John Forester, Toronto Dennis Fortnum, KPMG Sonjia Johansen, Regina Kevin Leier, Regina Florian Meyer, Southern Golden Horseshoe Sunil Mistry, KPMG Ajay Rao, Toronto James Saretsky, Calgary Darren Schrader, Vancouver Dana Thiessen, Winnipeg David Wood, Atlantic Provinces
Committee on Corporate Reporting Chair: Sean Carleton, Calgary Vice Chair: Carolyn Graham, Edmonton Joanne Boyes, Regina Surendra Bungaroo, Toronto Angela Butler, Calgary Karyn Brooks, Quebec* Susan Campbell, Toronto Marc-Antoine Daoust, Quebec Bob Eisner, Regina Brian Fiedler, Toronto* Murray Harris, Calgary Monica Hubley, Atlantic Provinces Nancy Lala, Toronto Melanie Litoski, Calgary Carol Lyons, Toronto Glenn Menuz, Calgary
Neil Robertson, Calgary Rinna Sak, Grant Thornton Jason Schultz, Calgary Tim Smart, Toronto Mark Swalwell, Toronto Winson Tang, Calgary Mark Walsh, Toronto John Weerdenburg, National Capital Region Vic Wells, Southern Golden Horseshoe Cheryl Yaremko, Vancouver Tim Zahavich, Southern Golden Horseshoe
National representatives: Christian Bellavance, FEI Canada Michael Conway, FEI Canada Melissa Gibson, FEI Canada
(*): FEI Canada is pleased to be represented by Karyn Brooks on the IFRS Advisory Council of the International Accounting Standards Board and by Brian Fiedler on the Accounting Standards Oversight Council.
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FEI CANADA 2012 ANNUAL REPORT
RESEARCH
Research: The systematic investigation into and study of materials and sources in order to establish facts and reach new conclusions. The Canadian Financial Executives Research Foundation (CFERF) is FEI Canada’s research institute. CFERF’s mission is to advance professional standards and practices of financial executives through research and thought leadership. CFERF’s products are topical and distributed in a format that is both timely and convenient. FEI Canada members aid CFERF’s research by completing surveys and participating in cross country research forums.
2011-2012 CFERF RESEARCH STUDIES
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Check out CFERF’s latest research
RESEARCH
THANK YOU TO OUR 2011-2012 CFERF DONORS CORPORATE DONORS GOLD ($10,000 +): Husky Energy Inc. Bell Canada SILVER ($5,000-10,000): Agrium Inc. CGI Group Inc. Imperial Oil Ltd.
BRONZE ($1,000-5,000): Canadian Western Bank Group OpenText Corporation PotashCorp TELUS Corporation
CHAPTER DONORS We would like to thank all of FEI Canada’s 11 chapters for their generous donations to CFERF.
PERSONAL DONATIONS Benefactors ($500+): Christian Bellavance Jane Southern Richard Haskayne Debbie Stein William Hewitt Bruce Waterman Patrons ($250-499): Michael Conway Thomas Evans
Donors (up to $100): Gerhard Barnard Suzanne Bedford Dale Bencharsky Philippe Bonin Edward Brown Joseph Brown Kathy Conway
Norm Ferguson Carl Hartigan Gerald Jansen Michael Makinson Carl McMurray Jan Mulligan Douglas Proll
Chair: Victor Wells, Southern Golden Horseshoe Vice Chair: Mark Walsh, Toronto David Anderson, Quebec Alister Cowan, Calgary Thomas Evans, Southern Golden Horseshoe William Hewitt, Toronto Richard Iwaniuk, Edmonton Nancy Lala, Toronto Raymond McCormick, Atlantic Provinces Per Mokkelbost, National Capital Region Tim Spielman, Calgary Debbie Stein, Calgary
National representatives:
Vic Wells
Jean Perron Robert Vaux
Supporters ($100-249): Bryan Albo Michael Doolan James Boyd Pierre Gauvreau George Bunze Barry Gorman Warren Chisling Richard Iwaniuk Jeffrey Cook Albert Jones Tyrone Cotie Leslie Markow Alister Cowan Mary Martin Robert Dietrich Brian McAskill
2011-2012 CFERF Board of Trustees
Christian Bellavance, FEI Canada Michael Conway, FEI Canada Line Trudeau, FEI Canada
Learn more about corporate sponsorship of research Glenn Menuz Massood Oroomchi Sylvain Ouellette Keith Palmer Gary Raposo Greg Reiser Steven Salt Peter Scott Randall Smallbone John Steen Scott Stoilen Gerry Wagner Mark Walsh Rick Ziemski
Make a personal donation to CFERF
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FEI CANADA 2012 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 St. John’s, Newfoundland, our National Breakfast Seminar series, National Executive
Development Webinar series, our Private Equity Symposium, our annual SME conference and Canada’s CFO of the Year™ Award. The National Strategic Partner Program includes activities with our valued sponsors. CFERF encompasses research studies and donations from members, Chapters and corporations. Investment income represents income 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 seven volunteer-driven technical committees.
KEY PERFORMANCE DRIVERS 2012
2011
Revenues Expenses
$2,020,709 2,179,506
$2,344,666 2,142,737
Excess of revenues over expenses (expenses over revenues) for year
$ (158,797)
$ 201,929
$(9,138)
$120,778
1,785 5
2,011 10
9
8
10
10
Excess, excluding pension plan expense for past employees for year Number of members Number of breakfast seminars & webinars Number of research studies completed in year & in progress at year-end Number of National Strategic Partners at year-end
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FINANCIAL PERFORMANCE REVIEW
RESULTS OF OPERATIONS FEI Canada reported an excess of expenses over revenues of $158,797 for the year ended June 30, 2012, compared to a profit of $201,929 a year ago. Excluding the impact of the expense of the closed Pension Plan for past employees, the excess of expenses over revenues would have been $9,138 for the year ended June 30, 2012, compared to a profit of $120,778 a year ago. Most of this Pension Expense relates to the mark-to-market adjustment of its investment portfolio and a decrease in the discount rate used in the actuarial liability calculation.
REVENUES
Revenues decreased $324,000 or 14% from a year ago, to $2,021,000. Event revenue decreased $270,000, due to lower registration and sponsorship revenues from our annual conference (down $184,000) and a drop in the number of webinars and breakfast seminars ($86,000). Membership dues and fees decreased $50,000, stemming from a decline in membership this year. While the number of strategic partnerships was unchanged this year, these
REVENUE
Investment Income
CFERF Research Studies and Donations
National Strategic Partner Program
revenues decreased $45,000 due to sponsorship declines in 2010-2011. CFERF revenues improved $50,000, due to higher research revenues ($42,000) and increased donations ($8,000). Miscellaneous revenue declined $12,000 as our member job board service was enhanced by allowing recruiters to post job openings free of charge. Income on our investment portfolio, at $33,000, was $3,000 higher than last year.
1%
14%
40%
15%
Events
Membership dues and initiation fees
30%
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FEI CANADA 2012 ANNUAL REPORT
EXPENSES
Expenses, at $2,179,000, increased $37,000 from $2,143,000 a year ago. Excluding the impact of the expense of the closed Pension Plan for past employees, expenses decreased $194,000 or 9% from a year ago.
representing 43% of FEI Canada’s expenditures, decreased $32,000 from last year. Event costs declined $89,000, mostly due to lower costs associated with our annual conference. Administration, occupancy and other costs declined $55,000 largely due to cost curtailment. The Pension Plan expense at $150,000 was Despite higher CFERF research and fundraising $231,000 higher than a year ago, as lower revenues, related costs were reduced $27,000. investment returns were achieved and the National Sponsorship program costs increased discount rate applied to the actuarial liability was $9,000 over last year. lowered by 1.1%. Other compensation expenses,
EXPENSES National strategic partner program
2%
Profile, branding & advocacy
1%
CFERF costs Compensation
12% Administraion, occupancy and other costs
43%
16%
Events
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19%
7% Pension Plan for past employees
FEI CANADA SUMMARY OF 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 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, assisted by 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 opinion without reservation. They have also prepared a report on our summary financial statements which is presented below.
Toronto, Ontario October 4, 2012
Michael Conway, FCA, ICD.D Chief Executive & National President
Line Trudeau, CPA, CA, MBA Chief Financial Officer
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FEI CANADA 2012 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, 2012 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, 2012. We expressed an unmodified audit opinion on those financial statements in our report dated October 4, 2012. 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”. 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, 2012 are a fair summary of those financial statements, on the basis described in the note to the summary financial statements.
Toronto, ON October 4, 2012
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Chartered Accountants Licenced Public Accountants
FEI CANADA SUMMARY OF FINANCIAL STATEMENTS
SUMMARY STATEMENT OF FINANCIAL POSITION June 30
2012 $
2011 $
ASSETS Current Assets Capital Assets
2,315,491 66,292 2,381,783
2,570,114 87,330 2,657,444
1,253,162
1,480,646
244,392
133,772
1,497,554
1,614,418
440,000 377,937
425,000 530,696
66,292
87,330
884,229
1,043,026
2,381,783
2,657,444
LIABILITIES Current Liabilities Long-term Liability Accrued Pension Liability
FUND BALANCES Operating Restricted Strategic Invested in Capital Assets
Ray Hawrelak, CA Chair, Board of Directors 2011-2012
Debbie Stein, CA Chair, Audit & Finance Committee 2011-2012
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FEI CANADA 2012 ANNUAL REPORT
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 Pension plan Events Administration, occupation 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
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2012 $
2011 $
801,052 602,292 303,917 275,349 32,642 5,122 2,020,708
851,311 873,130 349,292 224,617 29,511 16,805 2,344,666
947,008 149,659 421,450 344,972 260,836 42,774 12,806
978,591 (81,151) 510,111 399,778 287,412 34,227 13,769
2,179,505
2,142,737
(158,797)
201,929
FEI CANADA SUMMARY OF FINANCIAL STATEMENTS
NOTE TO SUMMARY FINANCIAL STATEMENTS June 30, 2012
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 connect financial executives through networking, knowledge exchange, advocacy and ethical leadership. 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, 2012, on a 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 (FEI). FEI Canada chapters are independently responsible for funding and managing their operations and, accordingly, are not consolidated in these financial statements.
FEI Canada Full Financial Statements
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FEI CANADA 2012 ANNUAL REPORT
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NATIONAL STRATEGIC PARTNERS
NATIONAL STRATEGIC PARTNERS We would like to thank our amazing National Strategic Partners. Their ongoing support benefits our members through research, thought leadership and professional development.
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