Financial Executives Canada 2013 Annual Report
Leadership beyond finance
FEI CanadaExecutives 2013 Annual Report FInancial Canada 2013 Annual Report
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More about Financial Executives 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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Events
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Insights
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Policy Forum
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Research
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Financial performance review
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Summary of financial statements
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National Strategic Partners
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FInancial Executives Canada 2013 Annual Report
Message from the CEO and THE chair of the board of directors Our world is much more complex and competitive, so the demands on senior financial executives are also greater than ever. These increased demands have expanded the role of CFOs, to the point where they are now expected to go well “beyond the numbers” and assume a much broader spectrum of responsibilities within their organization. CFOs are now called upon to be strategic leaders within their companies, and ultimately within the larger Canadian business community. For a while now, we at FEI Canada have been thinking about how this trend impacts how we should serve you, today’s financial executives. We did some serious soul-searching about what we are and what we should evolve into. Our research found that you believe the value of FEI Canada is to help members grow as financial executives and leaders in their organizations. This helps them and their businesses work more effectively. FEI Canada offers its members a number of benefits, and you told us that the two you value the most are peer networking and professional development. You indicated that our members are known for being credible, insightful and supportive leaders. Our new brand position recognizes your need for development that will allow you to grow, and to become a respected voice in the leadership of your organizations.
Today’s financial executives need to be ahead of the curve, ready to offer creative solutions to very complex business issues. That’s why we decided to adopt a new tagline – “leadership beyond finance” – to personify the essence of our brand, and its promise to you, our members. We also decided to simplify our name from FEI Canada to clarify exactly who we are. We will become known as Financial Executives Canada, and soon unveil a new website at www.financialexecutives.ca.
Our new visual identity is an evolution of our old logo, but it’s bolder, revitalized and exclusively Canadian. We are, of course, still proud to be affiliated with our US counterparts Financial Executives International.
Against the backdrop of the forces of change we referred to earlier, the role of the CFO is changing and Financial Executives Canada is here to help you Our mission is clear: FEI Canada brings together meet these challenges. Our events, including some senior financial executives to enhance their innovative programs that we will be introducing in leadership skills and broad management knowledge the near future, are designed with your professional through specialized experiences. development in mind. Over the next year, we intend to offer you some inspiration to help you with your One of the most valuable benefits you have as FEI Canada members is the ability to share experiences own creative thinking – and to help you on your with each other. If you are dealing with a complex or personal journey to achieve “leadership beyond difficult issue, one of your fellow members has likely finance”. dealt with it before and he or she will be pleased to offer you helpful thoughts.
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Message from the CEO and THE chair of the board of directors
Financial Executives Canada branding announcement, June 7, 2013
Michael Conway, FCPA, FCA, ICD.D Lisa Dorian, CA.CIA, CPA(IL), CRMA Chair, 2012-2013 Board of Directors President and Chief Executive Officer
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FEI Canada 2013 Annual Report FInancial Executives Canada 2013 Annual Report
FInancial Executives Canada Leaders financial Leadership beyond finance Financial Executives 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 Financial Executives Canada’s 11 chapters. Financial Executives 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!
2012-2013 Board of Directors Chair: Lisa Dorian, Calgary (A), (G) Vice Chair: Bill Ross, Edmonton (G) (A) Immediate Past Chair: Ray Hawrelak, Edmonton (G) Chair, Chapter Leadership Council: Bob Rollwagen, SGH (A) Chair, Audit & Finance Committee: Debbie Stein, Calgary (A) Chair, CFERF: Vic Wells, Southern Golden Horseshoe Chair, Committee on Corporate Reporting: Gordon Heard, SGH Chair, Policy Forum: Tim Zahavich, SGH
Chair, 2013 Conference Committee: Jim Fergusson, Calgary Chair of Sponsorship Committee: Brian McAskill, Toronto Chair, Membership Committee: Danley Yip, Vancouver Director: Bev Davies, Winnipeg (A) Director: Mark Walsh, Toronto (A) Director: Susan Deakin, SWO Director: David Anderson, Quebec President and CEO: Michael Conway, Toronto (G) Secretary & CFO: Line Trudeau, SGH (G)
A = Audit and Finance Committee, G = Governance Committee
Financial Executives Canada National Staff President & Chief Executive Officer: Michael Conway Chief Financial Officer: Line Trudeau VP, Research & Communications: Christian Bellavance VP, Programs: Steve Bower Research & Communications Manager: Laura Bobak Manager, Membership: Valerie Beck Membership & Chapter Coordinator: Sharon Bradshaw
Director of Events: Rita Plaskett Communications & Events Coordinator: Megan Bell Director of Sponsorship: Don Comish Office Administrator: Pat Todd
Quick Click links: About volunteering
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Volunteer testimonials
leaders
FEI Canada 2012-2013 leadership meeting 2012-2013 Chapter Leadership Council Chair: Bob Rollwagen, SGH Chapter representatives: Nicole Archibald, SWO Tyrone Cotie, Atlantic Provinces John Cole, Winnipeg Elysia Estee, SGH Carl Gauvreau, Quebec Leah Halpenny, Toronto Cynthia Hansen, Edmonton Betty Hoffart, Regina Ananth Koovappady, SGH Gail Kruger, Regina Sylvie Lafontaine, NCR
Louis Marcotte, Quebec Grant McNeil, Calgary Issa Nakhleh, Vancouver Beverley Szaura, Winnipeg Beverly Ward, SWO Russell Wong, Toronto Angela Yap, Vancouver National: Michael Conway, Toronto Lisa Dorian, Calgary Bill Ross, Edmonton Line Trudeau, SGH
2012-2013 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 John Cole, Winnipeg Robert Hibberd, Vancouver James Knowles, SWO
Gail Kruger, Regina Tammy LeBlanc, SGH Marie-Josee Marsan, Quebec Russell Wong, Toronto National: Sharon Bradshaw Michael Conway, Toronto Pat Todd Line Trudeau, SGH
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FEI FInancial CanadaExecutives 2012 Annual Canada Report 2013 Annual Report
2012-2013 Chapter Boards Vancouver Chapter
Calgary Chapter
Edmonton Chapter
President: Issa Nakhleh David Andru Brad Bardua Suzanne Bedford Roger Bissoondatt Fabiana Chubbs David Crawford Dibba Debham Eduard Epshtein Robert Hibberd Jad Jebara Doug King Hugh Lindsay Jeff Shickele Alan Wong Danley Yip
President: Grant McNeil Gerhard Barnard Brian Callaghan Vic Fitch Nola Heale Allan Johnson Evelyn Lawless Kevin McBeth Stephen Rue Terene Tharagan Brad Thompson Wayne Braun Walter Wakula
President: Cynthia Hansen Susan Berggren Darren Buma Mona Hale Ron Helmhold Eric Klein Daniel Lefaivre Don Sager Bill Ross
Southwestern Ontario Chapter President: Nicole Archibald Dawn Butler David Corner Susan Deakin James Knowles Gitta Kulczycki Lynn Logan Lloyd Monteith Beverly Ward
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Southern Golden Horseshoe Chapter President: Elysia Estee Dan Bowes Norman Col Thomas Evans Azam Foda Ananth Koovappady Tammy LeBlanc Florian Meyer Bob Rollwagen Line Trudeau
Toronto Chapter President: Leah Halpenny Jordan Beallor Kay Brekken Jonathan Brindley Fred Burke Alysia Carter George Chiarucci Nancy Lala Sharlene Locke Leslie Markow June McAlarey Brian McAskill David Minas Steve Rosen Cliff Truax Russell Wong
Click on the chapter name to learn more 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
Quebec Chapter President: Carl Gauvreau Catherine Allard David Anderson Denis Asselin Jean Paul Beaulieu Ross Corcoran Michel Gagnon Marc Godin Bertrand Lauzon Alix Mandron Louis Marcotte Marie-Josee Marsan Denis Pellerin Pierre Richard Claude Samson Paul Stinis Robert St-Jean Vicky Tumiotto
Winnipeg Chapter President: Beverley Szaura Allan Beaudry Lynne Black Keith Boyd John Cole Bev Davies Dwayne Henley Jeannie Lee Larry Nentwig
National Capital Region Chapter President: Sylvie Lafontaine Dean Cosman Ken Kember Per Mokkelbost Louis O’Brien Grant Smith John Weerdenburg Rudy Wyenburg
Atlantic Provinces Chapter President: Tyrone Cotie Geoffrey Baldwin Anne-Marie Gammon Raymond McCormick David Pangman Maureen Sullivan Carl Vincent
EVents
EVENTS Every year Financial Executives 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 Vimeo channel houses the latest and greatest event footage, as well as a selection of member testimonials. Click the images below to see event video footage and experience what Financial Executives Canada has to offer.
National Breakfast Seminar and webinar videos FEI Canada National Breakfast Seminar Series November 6, 2012 Sponsored by:
GROWTH STRATEGY:
PERSPECTIVES FROM FINANCIAL EXECUTIVES
Growth Strategy Working Capital Optimization
FEI Canada National Breakfast Seminar Series
Working capital optimization
February 20, 2012 Sponsored by:
Foreign Exchange Risk Management Employee Productivity
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FInancial Executives Canada 2013 Annual Report View the 2013 conference agenda
Lake Louise 2013
Read our special newsletter celebrating the conference
Reaching for new heights
Conference keynote speaker videos – June 5-7, 2013 Turning points in leadership Elyse Allan, President & CEO, GE Canada CFO succession planning: Judy Munro, President, Canada, RHI Executive Search David Anderson, EVP & CFO, CGI Group Louis Marcotte, SVP Strategic Sourcing, Intact Financial Corporation David McLaren, VP, Finance, Redpath Sugar Laurie Tugman, Executive Chairman, Nexterra Systems Corporation The many hats of the CFO in global M&A: A CEO’s view Mike Roach, CEO, CGI Group David Anderson, EVP & CFO, CGI Group It’s a marathon, not a sprint: Colleen Johnston, Group Head of Finance & CFO, TD Bank Group Bruce Waterman, Former Executive VP, Agrium Inc. Michael Conway, President and CEO, Financial Executives Canada Activist investing: Aaron Atkinson, Partner, Fasken Martineau DuMoulin LLP Steve Dyer, EVP & CFO, Agrium Inc. Howard Johnson, Managing Director, Veracap M&A International Kathryn McQuade, Former CFO, CP Rail Michael Nobrega, President & CEO, OMERS Canada’s place in a challenging world: Jack Mintz, Palmer Chair in Public Policy, University of Calgary
EVENTS 2012-2013 conference committee Chair: Jim Fergusson, Calgary Chapter representatives: Gerhard Barnard, Calgary Wayne Braun, Calgary Bev Davies, Winnipeg Vic Fitch, Calgary Judith Munro, Toronto Bob Rollwagen, SGH Tim Spielman, Calgary Maureen Sullivan, Atlantic Provinces Terene Tharagan, Calgary Cliff Truax, Toronto
National: Megan Bell Christian Bellavance Sharon Bradshaw Don Comish Michael Conway, Toronto Rita Plaskett
Watch the highlight video from our Lake Louise conference, June 2013.
FInancial Executives Canada 2013 Annual Report View the CFOY website
TM TM
Read our newsletter celebrating Brian Lawson, our 2013 winner
2013 winner, Brian Lawson, CFO of Brookfield Asset Management.
Learn more about the Capon Award
FRANK S. CAPON AWARD FOR DISTINGUISHED SERVICE AT FINANCIAL EXECUTIVES CANADA
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Thomas Evans, 2013 Capon Award winner.
Read our newsletter celebrating Thomas Evans, our 2013 winner
INSIGHTS – Policy FORUM
PoliCy forum Policy Financial Executives Canada’s seven thought leadership committees develop public positions, provide guidance and expert opinion on emerging issues relevant to our 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.
Learn more about our Policy Forum Comment Letter Submissions
The committees include members from across Canada, and from a variety of industry groups. Recommendations from the committees often guide CFERF’s research.
Policy Forum Chair: Tim Zahavich, SGH
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
Taxation Committee Chair: Peter Effer, Toronto Rod Butcher, Ryan Tom Evans, SGH Jim Fergusson, Calgary Barry Gorman, Atlantic Provinces William Hewitt, Toronto Tim McGillicuddy, Edmonton Ken Parker, Calgary Grant Smith, NCR Tim Zahavich, SGH
Information Technology Committee Chair: Timothy Spielman, Calgary
Pension Committee Chair: Norm Ferguson, Edmonton Nigel Branker, Morneau Shepell Nigel Byars, Toronto Peter Donovan, Toronto William Hewitt, Toronto Tony Hooper, Toronto Kevin Sorhaitz, Toronto Gerry Wahl, Vancouver
Anne Burpee, Toronto Chris Evans, Atlantic Provinces Jim Fergusson, Calgary Carl Gauvreau, Quebec Ken Kember, NCR Naresh Khosla, Toronto Judith Purves, Toronto Bill Ross, Edmonton Debbie Stein, Calgary Lisa Zingaro, Toronto
Governance and Risk Committee Chair: Marc Diamant, Toronto Robert Angel, Toronto Wayne Braun, Calgary Nigel Byars, Toronto Warren Cabral, Edmonton Bev Davies, Winnipeg Victoria Davies, Toronto Marc Diamant, Toronto Asher Drory, Toronto Tom Evans, SGH John Glicksman, Toronto Hubert Huang, Toronto Natalia Kochetova-Kozloski, Atlantic Provinces Hugh Lindsay, Vancouver Craig Pattinson, Toronto Vic Wells, SGH Lisa Zingaro, Toronto
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FInancial Executives Canada 2013 Annual Report
Michael Conway and CCR Vice Chair and Chair Carolyn Graham and Gordon Heard present an honorary Financial Executives Canada membership to Gord Fowler upon his retirement as Chair of the Accounting Standards Board.
Private Company Committee Chairs: Tim Zahavich, SGH David Balmer, Toronto Anne Burpee, Toronto Larry Cooper, Toronto John Harris, Grant Thornton Sonjia Johansen, Regina Kurt Kroesen, Toronto Steve Meston, CIBC Florian Meyer, SGH Rohit Milhoutra, Toronto Sunil Mistry, KPMG Ajay Rao, Toronto Dana Thiessen, Winnipeg
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Committee on Corporate Reporting Chair: Gordon Heard, SGH Vice Chair: Carolyn Graham, Edmonton Joanne Boyes, Regina Karyn Brooks, Quebec* Surendra Bungaroo, Toronto Angela Butler, Calgary Scott Calver, Calgary Susan Campbell, Toronto Jeff Curran, Calgary Marc-Antoine Daoust, Quebec Brian Fiedler, Toronto* Murray Harris, Calgary Nancy Lala, Toronto Melanie Litoski, Calgary Carol Lyons, Toronto
Glenn Menuz, Calgary Nathan Reeve, Calgary Neil Robertson, Calgary Rinna Sak, Grant Thornton Jason Schultz, Calgary Mark Swalwell, Toronto Winson Tang, Calgary Mark Walsh, Toronto John Weerdenburg, NCR Vic Wells, SGH Cheryl Yaremko, Vancouver
National representatives: Christian Bellavance Michael Conway, Toronto Melissa Gibson
(*): Financial Executives 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.
INSIGHTS – Canadian Financial EXECUTIVES RESEARCH FOUNDATION
Thank you to our 2012-2013 CFERF Donors Corporate Donors GOLD ($10,000 +): Bell Canada Husky Energy Inc. SILVER ($5,000-10,000): Agrium Inc. Brookfield Partners Foundation CGI Group Inc. Imperial Oil Ltd.
BRONZE ($1,000-5,000): Altagas Canadian Western Bank Group Intact Financial Corporation OpenText Corporation PotashCorp Shikatani Lacroix Design
CHAPTER Donors We would like to thank all of Financial Executive Canada’s 11 chapters for their generous donations to CFERF.
Personal donations Vic Wells
Patrons ($250-499): Michael Conway Alister Cowan
Peter Scott
Supporters ($100-249): Bryan Albo Carl Hartigan Mary Martin Patrick Bieleny Karyn Brooks Matt Matia Edward Brown Bill Ross Lily Chen Keith Palmer Ann Patterson Tyrone Cotie Norm Ferguson Ted Reid Donors (up to $100): Ron Boucher George Bunze Nick Creatura Marc-Antoine Daoust Gil Darnley Andrew Dindayal Ronald Dooley
Pierre Gauvreau Barry Gorman Oliver Hüls Allan Johnson Lia Lomtadze-Dedina Lisa MacLean Michael Makinson
Chair: Victor Wells, SGH (D) Vice Chair: Mark Walsh, Toronto (D) Vice Chair: Thomas Evans, SGH (D) David Anderson, Quebec (D) Alister Cowan, Calgary Bev Davies, Winnipeg William Hewitt, Toronto Richard Iwaniuk, Edmonton Tim Spielman, Calgary Debbie Stein, Calgary
National representatives: Christian Bellavance Michael Conway, Toronto Line Trudeau, SGH D = CFERF Board of Directors
Benefactors ($500+): Christian Bellavance William Hewitt Phil Connell Debbie Stein Normand Barabé Thomas Evans
CFERF Advisory Council 2012-2013
Greg Reiser Gerry Wagner Mark Walsh Bruce Waterman John Weerdenburg Bruce West
Massood Oroomchi Douglas Proll Jeffrey Resnick Don Sager Steven Salt Jeff Shickele Grant Slater
Learn more about corporate sponsorship of research Make a personal donation to CFERF
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FInancial Executives Canada 2013 Annual Report
CFERF Research research The CFERF is Financial Executives Canada’s research institute. CFERF’s mission is to advance professional standards and practices of financial executives through research and thought leadership. Our products are topical and distributed in a format that is both timely and convenient. Members aid CFERF research by completing surveys and participating in cross country research forums.
2012-2013 CFERF research studies
Check out CFERF latest research
The cost of IFRS transition in Canada The majority of respondents to an online survey on the costs of transition to International Financial Reporting Standards (IFRS) in Canada said that overall, the costs were significant but manageable, and broadly in line with those planned for and expected. 76% of all respondents said planning costs were about the same as budgeted for. Other costs ultimately turned out to be about the same or less than budgeted for in most categories, such as training, contract changes and having financial results audited. The study shows that, for about half of respondents, the costs of preparing and auditing financial statements under IFRS are about the same as under Canadian generally accepted accounting principles (GAAP). Succession planning for CFOs study found that while 97% of financial executives say succession readiness is key to the success of the finance function, only 43% reported that their organization has a clearly defined succession plan for its CFO. The study shows that, while many organizations were likely to have experienced an increased need to search for external candidates, it was far more likely that those without succession plans had seen a greater increase in this need than those with succession plans (82% vs. 71%). This finding would indicate that having a succession plan in place may reduce the need to look externally for candidates, and certainly merits further investigation. Sponsored by Robert Half International. Banking on productivity: Managing employee health costs: suggests that employee health, drug and disability costs have increased significantly or are expected to rise. Yet only 15% of those surveyed said that their company has considered a funding strategy to address the impact of these future costs. Drivers such as an aging workforce, the cost related to drug and disability plans, as well as legislative changes were key issues. The survey found that employee engagement and recruitment challenges stand out as major threats, with 56% and 50% of respondents rating these respective factors as the greatest threats to productivity. Sponsored by Morneau Shepell.
FX risk management: The vast majority (90%) of financial executives surveyed rated foreign exchange (FX) management as an important consideration in their business. However, almost half of organizations participating in the survey indicated they did not have a policy or formal process/procedure in place to manage FX risks. Managing foreign currency risk is no longer simply a case of guarding against changes between the U.S. and Canadian dollar. In fact, 42% of Canadian financial executives surveyed said that they are now doing business in fast-growing emerging markets, where currencies can be volatile or under strict government controls. Sponsored by CIBC.
INSIGHTS – Canadian Financial EXECUTIVES RESEARCH FOUNDATION
Working capital optimization, found 48% of companies undertook a working capital improvement program and, of those that did, 69% said they achieved a high success rate. Although businesses remain highly focused on cost reduction (80%), profitability improvement (75%) and system implementations (50%), the findings suggest that a balanced approach to managing competing priorities can generate significant returns. The survey also found companies that tended to be more proactive – by executing improvement initiatives, reviewing performance more frequently and reporting more accurate cash forecasts – were the ones that placed high importance on working capital management. Sponsored by Ernst & Young.
2012 Goodwill Impairment Study: Canadian Edition aimed to analyze the impact that the transition from pre-changeover GAAP to IFRS (and the associated changes in goodwill impairment testing) had on goodwill impairments recorded by Canadian companies. The study also looked at industry trends, and the timing of impairments compared with stock performance. The study shows that, in general, companies that did not recognize a goodwill impairment over the 2012 study’s 2007–2011 time horizon, outperformed those that recorded a goodwill impairment as well as the S&P/TSX Composite Index. Sponsored by Duff & Phelps.
Pension Risk Management Issues for CFOs, shows that almost 60% of financial executives surveyed indicated that their pension plan posed either a moderate or substantial risk to their organization. At the end of 2012, only about one in 20 Canadian DB pension plans were fully funded on a solvency basis. By far, the biggest factor in the decline is the fact that long-term interest rates have plunged to their lowest levels in 60 years. Disappointing asset returns, demographic pressures and the increasing maturity of pension plans have also played their part. Sponsored by Mercer.
Growth Strategy: Perspectives from financial executives This study indicates that Canada’s financial executives are hearing these calls to action, placing growth high on their corporate agendas and rolling up their sleeves to get started. The report reveals that growth is overwhelmingly important to Canadian businesses, with 93% identifying it as a priority and nearly six in ten executives saying it is an “extremely high” priority. More than half (53%) are already executing a growth strategy, and 44% are currently working on a strategic plan for growth. Sponsored by Grant Thornton.
Cloud computing for financial executives This study examines the benefits of and barriers to the adoption of cloud computing, including budgeting and resource allocation, scalability and data security concerns. This survey revealed that one in two (47%) executives indicated that their organization is already using some form of the cloud technology. An additional 15% were planning to adopt cloud in the future. IT issues raised included concerns about hacking, a lack of in-house expertise to move projects forward and possible delays linked to the introduction of new technology. Sponsored by IBM Canada.
FInancial Executives Canada 2013 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, Investment Income 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 Lake Louise, Alberta, our National Breakfast Seminar series,
our National Executive Development Webinar series, our Private Equity Symposium, our annual SME conference and our 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 advertising services rendered on our website. All of these activities are supported by our team at National office and various committees including our volunteer-driven thought leadership technical committees.
Key performance drivers
Revenues Expenses
2013
2012
$2,097,302 1,950,863
$2,020,709 2,179,506
$146,439
$ (158,797)
$43,484
$(9,138)
1,708 10
1,785 5
10
9
11
10
Excess of revenues over expenses (expenses over revenues) for year Excess, excluding pension plan expense for past employees for year Number of members Number of breakfast seminars, private events & 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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* As more fully described in the CEO message on page 2, FEI Canada announced in June 2013 that it will soon carry on business under the name Financial Executives Canada. While this annual report has been prepared using our new branding for this reason, this Financial Performance Review and our financial statements are still presented under the legal name Financial Executives International Canada (FEI Canada).
FINANCIAL PERFORMANCE REVIEW
Results of Operations FEI Canada reported an excess of revenues over expenses of $146,439 for the year ended June 30, 2013, compared to a loss of $158,797 a year ago. Excluding the impact of the expense of the closed Pension Plan for past employees, the excess of revenues over expenses would have been $43,484 compared to a loss of $9,138 last year. Most of this Pension Expense relates to the mark-to market adjustment of its investment portfolio and an increase in the discount rate used in the actuarial liability calculation.
Revenues
Revenues increased by $77,000 or 4% from a year ago, from $2,021,000 to $2,097,000. Event revenue increased by $86,000 stemming from higher registration revenue from our annual conference (up $56,000) and higher revenue from breakfast seminar and private events (up $57,000) offset by lower revenue from our webinars, Private Equity Symposium and SME conference (down $27,000). CFERF increased revenue by $41,000 resulting from an increase
in the number of studies and donations. Membership dues and fees decreased by $32,000 stemming from the loss of 77 members this year. Revenues from our Strategic Partner program decreased $12,000 compared to last year. Income on our investment portfolio, at $26,000, was $7,000 lower than last year. Miscellaneous income, at $6,000 was virtually unchanged from last year.
REVENUEs Investment Income CFERF Research studies and donations
National Strategic Partner program
1%
15%
37%
14%
Events
Membership dues and initiation fees
33%
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FInancial Executives Canada 2013 Annual Report
EXPENSES
Expenses, at $1,951,000, decreased $229,000 from $2,180,000 a year ago. Excluding the impact of the expense of the closed Pension Plan for past employees, expenses increased $23,971 or 1%.
expenses, representing 45% of FEI Canada’s expenditures, decreased $24,000 compared to last year. CFERF’s research and fundraising programs spent $25,000 more on compensation costs this year. Administration, occupancy and The improvement in the fair market value of other costs increased $10,000 overall. Event costs our Pension investments and a reduction of our were higher by $10,000 mostly due to additional pension benefit obligation resulted in a $103,000 costs associated with our annual conference (up expense reduction this year compared to an $45,000) and our breakfast seminars (up $20,000) increase of $150,000 last year. The reduction offset by this year’s profit of $33,000 organizing in our liability was positively impacted by an the CFO of the Year™ Award event compared to increase in the discount rate from 4.80% in 2012 a loss of $22,000 last year. Our spending on our to 5.20% in 2013, partly muted by a weaker National Strategic Partner program at $46,000 Canadian dollar and the increase in the age of the and on Profile, branding & advocacy at $14,000 pension plan participants. Other compensation were virtually unchanged from last year.
EXPENSES, excluding pension Plan National Strategic Partner program
2%
Profile, branding & advocacy
1%
CFERF costs
14% Compensation Administration, occupancy and other costs
45%
17%
21% Events
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FInancial executives 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 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. Hilborn 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, 2013
Michael Conway, FCPA, FCA, ICD.D President & CEO
Line Trudeau, CPA, CA, MBA Chief Financial Officer
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FInancial Executives Canada 2013 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, 2013 and the summary statement of revenues and expenses for the year then ended, and related note, are derived from the audited financial statements of the Financial Executives International Canada/Dirigeants Financiers Internationaux du Canada for the year ended June 30, 2013. We expressed an unmodified audit opinion on those financial statements in our report dated October 4, 2013. The summary financial statements do not contain all the presentation and disclosures required by Canadian accounting standards for not-for-profit organizations. 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, 2013 are a fair summary of those financial statements, on the basis described in the note to the summary financial statements.
Toronto, ON October 4, 2013
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Chartered Professional Accountants Licenced Public Accountants
FEI Canada Summary of financial statements
SUMMARY STATEMENT OF FINANCIAL POSITION June 30
2013 $
2012 $
Assets Current Assets Capital Assets
2,247,008 42,558 2,289,566
2,315,491 66,292 2,381,783
1,166,898
1,253,162
92,000
244,392
1,258,898
1,497,554
440,000 548,110
440,000 377,937
42,558
66,292
1,030,668
884,229
2,289,566
2,381,783
Liabilities Current Liabilities Long-term Liability Accrued Pension Liability
FUND BALANCES Operating Restricted Strategic Invested in Capital Assets
Lisa Dorian, CA.CIA, CPA(IL), CRMA Chair, 2012-2013 Board of Directors
Debbie Stein, CA Chair, Audit & Finance Committee 2012-2013
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FInancial Executives Canada 2013 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 National Strategic Partner program Profile, branding & advocacy
Excess of revenues over expenses (expenses over revenues) for year
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2013 $
2012 $
768,894 688,231 291,917 316,726 25,534 6,000 2,097,302
801,052 602,626 303,917 275,349 32,642 5,122 2,020,708
922,907 (102,955) 430,925 354,950 285,715 45,528 13,793
947,008 149,659 421,450 344,972 260,836 42,774 12,806
1,950,863
2,179,505
146,439
(158,797)
FEI Canada Summary of financial statements
NOTE TO SUMMARY FINANCIAL STATEMENTS June 30, 2013
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, 2013, 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 (FEI). FEI Canada chapters are independently responsible for funding and managing their operations and, accordingly, are not consolidated in these financial statements. Full financial statements may be viewed on the FEI Canada website.
FEI Canada Full Financial Statements
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FInancial Executives Canada 2013 Annual Report
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