FEI Canada 2014 Annual Report

FEI Canada

2014 Annual Report Leadership beyond finance

FEI Canada 2013 2014 Annual Report

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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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Events

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Awards

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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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FEI Canada 2014 Annual Report

Message from the CEO and THE chair of the board of directors FEI Canada is the leading organization to foster the career development of finance executives.

A major research study we conducted this year, entitled Branding the CFO, confirmed what may not surprise you – that financial executives are accountable for much more than number-crunching. As strategic thinkers who are trusted sources of insightful information and advice for their colleagues and board members, finance executives must act strategically and communicate persuasively in order to support the goals of the business.

As a result of this research, which was conducted by our research arm, The Canadian Financial Executives Research Foundation (CFERF), we launched a new program that further facilitates the career development of senior financial executives. You may have heard by now that we have initiated, in collaboration with Queen’s School of Business, a unique executive education program that combines best-in-class curriculum with the real life experiences of seasoned CFOs. You can learn more about the program by reading our CFO Leadership Beyond Finance brochure, which is widely referenced on our website.

Feedback from members is invaluable in planning new programs and events. In the past, you have told us: • 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.

• Members like to learn: Whether it’s a breakfast seminar, a chapter dinner, a career services event or a workshop at our annual conference, members love to soak up new knowledge which they can use right away. Through 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 told us 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.

• 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 new accounting standard, some of our members are itching to get on the next conference call to get their two cents in.

• 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.

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: Lisa Dorian, Bob Rollwagen, Danley Yip, Dan Clarke, David Anderson and Bertrand Lauzon. We encourage all FEI Canada members to remain involved in the organization and foster the development of the next generation of financial leaders through membership.

In the upcoming year, we will continue to grow the value proposition offered to members and ensure that FEI Canada maintains its leadership in the community.

If you’re attending our annual conference in Winnipeg this year, please find us and say hello!

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Message from the CEO and THE chair of the board of directors

Bill Ross, CPA, CA Michael Conway, FCPA, FCA, ICD.D Chair, 2013-2014 Board of Directors President and Chief Executive Officer

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FEI Canada 20132014 Annual Report FEI Canada Annual Report

FEI Canada Leaders Leadership beyond finance 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!

2013-2014 Board of Directors Chair: Bill Ross, Edmonton (G) Vice Chair: Tim Zahavich, SGH (G) (A) Immediate Past Chair: Lisa Dorian, Calgary (G) Chair, Chapter Leadership Council: Debbie Stein, Calgary Chair, Audit & Finance Committee: Beverly Davies, Winnipeg (A) Chair, CFERF: Vic Wells, Southern Golden Horseshoe Chair, Committee on Corporate Reporting: Gordon Heard, SGH Chair, Policy Forum: Peter Effer, Toronto Chair, 2014 Conference Committee: Bob Rollwagen, SGH (A) Chair, Membership Committee: Danley Yip, Vancouver Chair, Sponsorship Committee: Brian McAskill, Toronto Chair, Programming: Dan Clarke, Atlantic Provinces

Director: David Anderson, Quebec Director: Brad Bardua, Vancouver Director: Susan Deakin, SWO Director: Carolyn Graham, Edmonton Director: Bertrand Lauzon, Quebec Director: Derek Petridis, Toronto Director: Steve Rosen, Toronto Director: Mark Walsh, Toronto (A) Director: Cheryl Yaremko, Vancouver (A) President and CEO: Michael Conway, Toronto (G) Secretary & CFO: Line Trudeau, SGH (G) A = Audit and Finance Committee, G = Governance Committee

FEI Canada National Staff President & Chief Executive Officer: Michael Conway Chief Financial Officer: Line Trudeau VP Research: Laura Pacheco Research & Communications Manager: Laura Bobak Membership Manager: Sharon Bradshaw

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Membership Coordinator: Liz Bowell Director of Events: Rita Plaskett Events Manager: Andrea Cooney Director of Sponsorship: Don Comish Office Manager: Pat Todd

About volunteering

Volunteer testimonials

leaders

FEI Canada 2013-2014 leadership meeting, Niagara Falls 2013-2014 Chapter Leadership Council Chair: Debbie Stein, Calgary Chapter representatives: Nicole Archibald, SWO Ernie Briard, NCR Darren Buma, Edmonton John Cole, Winnipeg Dean Cosman, NCR Tyrone Cotie, Atlantic Provinces Elysia Estee, SGH Anne-Marie Gammon, Atlantic Provinces Nola Heale, Calgary Ananth Koovappady, SGH Gail Kruger, Regina Nancy Lala, Toronto Daniel Lefaivre, Edmonton Louis Marcotte, Quebec

Gary Maystruck, Regina Grant McNeil, Calgary David Minas, Toronto Jeff Schickele, Vancouver Beverly Szaura, Winnipeg Beverly Ward, SWO Russell Wong, Toronto National: Dan Clarke, Atlantic Provinces Michael Conway, Toronto Brian McAskill, Toronto Bill Ross, Edmonton Line Trudeau, SGH Danley Yip, Vancouver Tim Zahavich, SGH

2013-2014 Membership Committee Chair: Danley Yip, Vancouver Chapter representatives: Geoffrey Baldwin, Atlantic Provinces Jean Paul Beaulieu, Quebec Susan Berggren, Edmonton Keith Boyd, Winnipeg John Cole, Winnipeg Dean Cosman, NCR Angela Dexter, Atlantic Provinces James Fergusson, Calgary Ron Helmhold, Edmonton Elizabeth Hoffart, Regina Hubert Huang, Toronto Jad Jebara, Vancouver

Allan Johnson, Calgary Bertrand Lauzon, Quebec Marie- JosĂŠe Marsan, Quebec Monica Rocheleau, Quebec Ron Stoesz, Winnipeg Beverly Ward, SWO National: Liz Bowell Sharon Bradshaw Michael Conway, Toronto Pat Todd Line Trudeau, SGH

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FEI Canada 2012 2014 Annual Report

2013-2014 Chapter Boards Vancouver Chapter

Calgary Chapter

President: Jeff Schickele

President: Grant McNeil Wayne Braun Brian Callagan James Fergusson Vic Fitch Nola Heale Allan Johnson Evelyn Lawless Kevin McBeth Terene Tharagan Walter Wakula

President: Darren Buma Susan Berggren Cynthia Hansen Ron Helmhold Bryn Jones Daniel Lefaivre Hans Lung Doug Woloshyn Tracey Martin Woywitka

Southern Golden Horseshoe Chapter

President: Russell Wong Jordan Beallor Jonathan Brindley Susan Brioux Alysia Carter George Chiarucci Leah Halpenny Ron Hosking Hubert Huang Nancy Lala Sharlene Locke Brian McAskill June McAlarey David Minas Steve Rosen Cliff Truax

David Andru A. Thomas Assimes Peter Ballachey Suzanne Bedford Roger Bissoondatt Fabriana Chubbs David Crawford Eduard Epshtein Jad Jebara Doug King Hugh Lindsay Issa Nakhleh Alan Wong Danley Yip

President: Elysia Estee Dan Bowes Southwestern Kriss Bush Ontario Chapter Norman Col President: Nicole Archibald Monique Delorme Dawn Butler Tom Evans David Corner Peter Gimon Susan Deakin Ananth Koovappady Gitta Kulczycki Florian Meyer Lynn Logan Mary Parkes Lloyd Monteith Bob Rollwagen Maryann Moons Line Trudeau Frank Synders Beverly Ward

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Edmonton Chapter

Toronto Chapter

Click on the chapter name to learn more Regina Chapter

Winnipeg Chapter

President: Betty Hoffart

President: Beverly Szaura Lynne Black Keith Boyd John Cole Beverly Davies Dwayne Henley Larry Nentwig Ron Stoesz Dana Thiessen

Brian Fergusson Elizabeth Hoffart Rick Hoffman Gary Maystruck Marty Meloche Ed Meredith Kent Paul Christine Short Jeff Stepan

Quebec Chapter President: Louis Marcotte Catherine Allard David Anderson Denis Asselin Jean Paul Beaulieu Ross Corcoran Carl Gauvreau Marc Godin Bertrand Lauzon Alix Mandron Marie-JosĂŠe Marsan Denis Pellerin Pierre Richard Claude Samson Paul Stinis Vicky Tumiotto Pierre Richard

National Capital Region Chapter President: Dean Cosman Ernie Briard Ken Kember Sylvie Lafontaine Per Mokkelbost Grant Smith John Weerdenburg Rudy Wytenburg

Atlantic Provinces Chapter President: Tyrone Cotie Geoffrey Baldwin Angela Dexter Anne-Marie Gammon Raymond McCormick David Pangman Maureen Sullivan Carl Vincent

EVents

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 many events in the 2013-2014 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:

National Breakfast Seminar and webinar videos Pushing the frontier How to measure HR MEASURING HR: WHAT CFOS NEED TO KNOW

The Latest on the financing of innovation in Canada Branding the CFO: Leadership beyond finance

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FEI Canada 2014 Annual Report

FEI Canada Annual National Conference

View the 2014 conference agenda

Read our special newsletter FEI Canada’s Annual National Conference, the grand finale to our calendar of events, was held this year in Niagara Falls. The Conference celebrating the conference committee, chaired by Bob Rollwagen of the Southern Golden Horseshoe chapter and Steve Rosen of the Toronto chapter, presented a very successful annual conference – both financially and according to the satisfaction ratings assessed by our 350 attendees. Next year, the conference will be held in beautiful Winnipeg on June 10-12, 2015, and will feature our gala at the new Canadian Museum for Human Rights.

2013-2014 conference committee Chairs: Bob Rollwagen, SGH Steve Rosen, Toronto Chapter representatives: Thomas Assimes Bev Davies Elysia Estee Tom Evans Jim Fergusson Kent James Howard Johnson Ananth Koovapaddy Florian Meyer Judy Munro Derek Petridis Terene Tharagan Cliff Truax Vic Wells Russ Wong National: Sharon Bradshaw Don Comish Michael Conway Andrea Cooney Rita Plaskett Pat Todd Line Trudeau

EVENTS

Conference keynote speaker videos – June 4-6, 2014 Board Expectations of a CFO Maureen Sabia, O.C., J.D, Chairman of Canadian Tire Diversity – When talent rises to the top, everyone wins Mary Lou Maher, Chief Diversity Partner, KPMG Maureen Jensen, Executive Director and CAO, OSC Alex Johnston, Executive Director, Catalyst Canada Eileen Mercier, Chair, Ontario Teachers’ Pension Plan Carolyn Lawrence, President & CEO, Women of Influence Inc. Innovation Tim Zahavich,Vice Chair, FEI Canada Dan Fortin, President, IBM Canada Glenn Kerrick, President & CEO, Alma CG Michel Levasseur, VP Finance & Administration, Vortex Aquatic Structures International Branding the CFO Brian Lawson, CFO Brookfield Asset Management JP Lacroix, President, Shikatani Lacroix

Funding our retirement Jim Leech, former President & CEO, Ontario Teachers’ Pension Plan Bill Morneau, Executive Chairman, Morneau Shepell The Leadership Contract Vince Molinaro, Global Managing Director – Leadership Practice, Knightsbridge Human Capital Solutions

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FEI Canada 2014 Annual Report View the CFOY website

TM

Read our newsletter celebrating Janice Fukakusa, our 2014 winner

Janice Fukakusa, 2014 Canada’s CFO of the YearTM Award winner

Bruce Waterman – CFOY 2008 and Chair of this year’s CFOY Selection Committee, Marvin Romanow – CFOY 2007, Gord Maron – CFOY 2010 and Brian Lawson – CFOY 2013 congratulate this year’s recipient, Janice Fukakusa

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.

The award, presented by FEI Canada 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 2014 gala, which was held for the first time in Calgary, celebrated the achievements of Janice Fukakusa, Chief Administrative Officer and CFO of RBC.

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This year’s Canada’s CFO of the Year™ award gala on May 8th,was a wonderful evening at the Hyatt Regency where more than 350 guests gathered to honour our winner. A video with interviews from colleagues and family allowed the winner to bask in the glow of approval from her entourage, and the highlight of the evening was the whitehat ceremony during which the guest of honour was officially welcomed to Alberta.

On this special evening, we were also blessed to have five recipients of Canada’s CFO of the Year™ Award together to join in the festivities.

Awards

Frank S. Capon Award for distinguished SERVICE Learn more about the Capon Award

Read our newsletter celebrating Karyn Brooks, our 2014 winner

Karyn Brooks, 2014 Capon Award winner.

Karyn Brooks and Michael Conway

FEI Canada was very pleased to present this year’s Frank S. Capon Award for distinguished volunteer service to Karyn Brooks of the Quebec chapter at our National Conference in Niagara Falls. 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.

Past President Service Award We also recognized the significant contributions made by past presidents, Al Jameson, Bob Waugh and Doug Simpson.

William Hewitt, Al Jameson and Michael Conway

Bob Waugh and Doug Simpson

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FEI Canada 2014 Annual Report

PoliCy forum FEI 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 FEI Canada’s research.

Policy Forum Chairs: Peter Effer, Toronto and Tim Zahavich, SGH

Treasury and Capital Markets Committee Chair: Tyrone Cotie, Atlantic Provinces Vice Chair: Paul Stinis, Quebec Thomas Assimes, Vancouver Mark Donaghy, Toronto John Forester, Toronto John Hanbury, Vancouver Angela Lekatsas, Calgary Jacques Roy, Quebec

Pension Committee

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Taxation Committee Chair: Peter Effer, Toronto Rod Butcher, Ryan Tom Evans, SGH Jim Fergusson, Calgary Tim McGillicuddy, Edmonton Ken Parker, Calgary Grant Smith, NCR Tim Zahavich, SGH

Information Technology Committee

Governance and Risk Committee Chairs: Wayne Braun, Calgary & Beverly Davies, Winnipeg Warren Cabral, Edmonton Marc Diamant, Toronto John Glicksman, Toronto Rick Hoffman, Regina Hubert Huang, Toronto Vic Wells, SGH

Private Company Committee

Chair: Norm Ferguson, Edmonton

Chair: Timothy Spielman, Calgary

Chair: David Balmer, Toronto

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 Ken Kember, National Capital Region Naresh Khosla, Toronto Louis Marcotte, Quebec Bill Ross, Edmonton Debbie Stein, Calgary Judith Purves, Toronto Lisa Zingaro, Toronto

Bruce Bailey, Toronto Anne Burpee, Toronto John Forester, Toronto Sonjia Johansen, Regina Kurt Kroesen, Toronto Florian Meyer, SGH Rohit Milhoutra, Toronto Sunil Mistry, KPMG Ajay Rao, Toronto Gregory Scott, Toronto Dana Thiessen, Winnipeg Marc Malouin, Quebec

INSIGHTS – Policy FORUM

Peter Martin, outgoing Director of Accounting Standards at the Accounting Standards Board, is presented with an honourary membership in FEI Canada by Gordon Heard, left, Chair of the Committee on Corporate Reporting, and Michael Conway, President and CEO of FEI Canada.

Committee on Corporate Reporting Chair: Gordon Heard, SGH Vice Chair: Neil Robertson, Calgary Joanne Boyes, Regina Karyn Brooks, Quebec Surendra Bungaroo, Toronto Angela Butler, Calgary Anne Burpee, Toronto Scott Calver, Calgary Susan Campbell, Toronto Jeff Curran, Calgary Marc-Antoine Daoust, Quebec Line Dostaler, Quebec

Robert Eisner, Toronto Brian Fiedler, Toronto Murray Harris, Calgary Monica Hubley, Atlantic Provinces Sujeet Kini, Toronto Nancy Lala, Toronto Melanie Litoski, Calgary Carol Lyons, Toronto Glenn Menuz, Calgary Nathan Reeve, Calgary Rinna Sak, Grant Thornton Jason Schultz, Calgary

Tim Smart, Toronto Mark Swalwell, Toronto Winson Tang, Calgary Mark Walsh, Toronto John Weerdenburg, NCR Markus Weiss, Quebec Victor Wells, SGH Cheryl Yaremko, Vancouver

National representatives: Michael Conway, Toronto

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FEI Canada 2014 Annual Report

CFERF Research Studying emerging financial management issues in Canada, with the aim of increasing competitive capabilities of Canadian financial leaders and their organizations.

Check out CFERF’s latest research

2013-2014 CFERF research studies The funding of innovation in Canada: Canadian companies can be reticent about seeking innovation funding in spite of the breadth of funding programs available. The reason for this might well be because companies believe success in procuring innovation funding can be time-consuming and onerous. A significant number of Canadian organizations believe that their commercial activity does not qualify them for such funding consideration or tax relief programs. Sponsored by ALMA cg.

Measuring HR: Canadian senior financial executives are becoming more involved in the oversight of HR functions, but despite their increasing sphere of responsibility, a large proportion of these executives rate their knowledge of HR functions as moderate or average. This admission suggests a widening skills gap among finance executives who are starting to oversee HR managers and payroll functions. Sponsored by Ceridian.

Branding the CFO: For the Canadian senior financial executive community, CFO leadership means contributing more broadly to a company’s success by going beyond merely providing accurate financial information. This is the main conclusion of Branding the CFO. The study also highlights a road map for a chief financial officer to become a true strategic advisor to the CEO and board of directors. Sponsored by Shikatani Lacroix.

Financial executives, cyber security & business continuity: Financial executives, most of whom are responsible directly or indirectly for information technology (IT), agree IT security and business continuity are important. Many have experienced disruption due to common threats such as human error, natural or manmade disasters, data loss, security breaches or system failures. Yet many organizations lack formal IT security and business continuity plans, or lack consistent application of these plans across the organization. Sponsored by IBM. 2013 Goodwill Impairment: Canadian edition continues to examine general goodwill impairment and trends within different industries in Canada. A sizeable portion of survey respondents indicated that cash flow projections was ne of their most significant challenges. Two-thirds of the public companies surveyed that believed their shares were underpriced, also found developing pre-tax discount rates for value in use to be the top challenge when applying IFRS goodwill impairment guidance. Sponsored by Duff & Phelps.

Optimizing for Growth: Working capital and credit availability: More than one third of survey respondents were more optimistic about the current business environment, with 38% being more optimistic about the economy in their sector, while 11% reported that they were less optimistic. Half of respondents stated that business conditions are unchanged from a year ago. Of the financial executives surveyed, less than half (46%) reported that they were more optimistic and 16% were less optimistic. Sponsored by Ernst & Young

INSIGHTS – CFERF RESEARCH

Thank you to our 2013-2014 CFERF Donors Corporate Donors GOLD ($10,000 +): Husky Energy Inc. SILVER ($5,000-10,000): CGI Group Inc. Imperial Oil Ltd.

BRONZE ($1,000-5,000): Canadian Western Bank Group Intact Financial Corporation

CHAPTER Donors We would like to thank all of FEI Canada’s 11 chapters for their generous donations to CFERF.

Personal donations

CFERF Advisory Council 2013-2014 Chair: Victor Wells, SGH (D) Vice Chair: Mark Walsh, Toronto (D) Vice Chair: Thomas Evans, SGH (D) David Anderson, Quebec (D) Robert Angel, Toronto Lynn Belo, Toronto Alister Cowan, Calgary Beverly Davies, Winnipeg Emerson Fiske, Atlantic Provinces William Hewitt, Toronto Richard Iwaniuk, Edmonton Thomas Scott, Toronto Timothy Spielman, Calgary Debbie Stein, Calgary

National representatives:

Benefactors ($500+): David Anderson Brian Lawson Bill Hewitt Debbie Stein

Victor Wells Perry Wong

Patrons ($250-499): Michael Conway

Christian Bellavance Michael Conway, Toronto Line Trudeau, SGH

Christine Gerritse

D = CFERF Board of Directors

Tom Evans

Supporters ($100-249): Bryan Albo Norm Ferguson Normand Barabé Alon Hameiri Edward Brown Don Ivison Warren Chisling Joseph McArthur Jeffrey Cook Dean McCann Tyrone Cotie Andrew McMartin Jean-Philippe Shawn McMillan Durivage-Lachance Sylvain Ouellette Rob Elliott Keith Palmer

Ann Patterson Douglas Proll Greg Reiser Bob Rollwagen Peter Scott Andrian Thiel Gerry Wagner Mark Walsh Bruce Waterman

Donors (up to $100): Mir Rizwan Ali Gerhard Barnard Corey Bieber James Boyd Surendra Bungaroo George Bunze Anna Dawyd

Pierre Matuszewski Glenn Menuz Massood Oroomchi Sylvain Perron Kasey Reese Jeff Schickele John Steen

Mark Elston Pierre Gauvreau Allan Johnson Jason Lang Michael Makinson Brian Mascarenhas Matt Matia

Learn more about corporate sponsorship of research

Make a personal donation to CFERF

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FEI Canada 2014 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 Niagara Falls, Ontario, our National

Breakfast Seminar series, our National Executive Development Webinar series and Canada’s CFO of the YearTM 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 administration fees. All of these activities are supported by our team at National office and various committees including our volunteerdriven thought leadership technical committees.

Key performance Metrics

Revenues Expenses Excess of revenues over expenses for year Excess, excluding pension plan expense for past employees for year Members Events: breasfast seminars, private events and webinars Research studies completed & in progress at year-end National Strategic Partners at year-end

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2014 $ 1,997,342 1,932,981 64,361

2013 $ 2,097,302 1,950,863 146,439

19,649

43,483

1,616 12 8 12

1,708 10 10 10

FINANCIAL PERFORMANCE REVIEW

Results of Operations FEI Canada reported an excess of revenues over expenses of $64,361 for the year ended June 30, 2014, compared to $146,438 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 $19,649 compared to $43,483 last year. The effect on pension expense of changes in the value of plan assets and in the discount rate were $58,243 less favourable in 2014 compared to 2013.

Revenues

Revenues decreased by $100,000 or 5% from a year ago, from $2,097,000 to $1,997,000.

CFERF revenues of $248,000 were $69,000 lower than the prior year, as 8 research studies were completed this year compared to 10 last year ($45,000) and donation revenues declined $24,000. Membership dues and fees, at $729,000, show a decline of $40,000, stemming from the loss of 92 members this year. Revenue from

Events reached $696,000, an improvement of $8,000 from last year, mainly due to higher revenue from our annual conference. Revenue from our National Strategic Partners program, at $297,000, shows a $5,000 increase year-over-year given the net addition of 2 sponsors for a total of 12 at year-end. Income on our investment portfolio, at $26,000, remained stable.

REVENUEs Investment Income CFERF Research studies and donations

National Strategic Partner program

1%

12%

37%

15%

Events

Membership dues and initiation fees

35%

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FEI Canada 2014 Annual Report

EXPENSES

Expenses, at $1,933,000, decreased $18,000 from $1,951,000 a year ago. Excluding the impact of the expense of the closed Pension Plan for past employees, controllable expenses declined $76,000 or 4% resulting from initiatives to adjust costs to the reduced membership revenue.

Compensation expenses, representing 57% of FEI Canada’s expenditures, decreased $78,000 (or 7%) compared to last year. Administration, occupancy and other costs decreased $29,000 or 8% overall.

Event costs were higher by $28,000, mostly due to additional costs associated with our increased number of webinars (up $10,000), the travel costs for attending Canada’s CFO of the YearTM Award

event in Calgary ($6,000) and a lower profit on this event this year ($29,000), offset by reductions in spending associated with our breakfast seminars ($8,000) and our annual conference ($8,000). Our spending on our National Strategic Partner program was down $4,000 to $42,000 and Profile, branding & advocacy costs were up $6,000 to $20,000.

This $76,000 reduction in operating costs was partly offset by a reduction of $58,000 in the credit from pension expense due to lower returns on plan assets and changes in the discount rate.

EXPENSES, excluding pension Plan National Strategic Partner program

2%

Administration, occupancy and other costs

Profile, branding & advocacy

1%

17% Compensation

57% 23% Events

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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). These financial statements have been prepared by management in accordance with Canadian accounting standards for not-for-profit organizations 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 3, 2014

Michael Conway, FCPA, FCA, ICD.D President & Chief Executive Officer

Line Trudeau, CPA, CA, MBA Chief Financial Officer

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FEI Canada 2014 Annual Report

REPORT OF THE INDEPENDENT AUDITORS ON THE 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, 2014 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, 2014. We expressed an unmodified audit opinion on those financial statements in our report dated October 1, 2014.

The summary financial statements do not contain all the 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, 2014 are a fair summary of those financial statements, on the basis described in the note to the summary financial statements.

Toronto, ON October 1, 2014

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Chartered Professional Accountants Licenced Public Accountants

FEI Canada Summary of financial statements

SUMMARY STATEMENT OF FINANCIAL POSITION June 30

2014 $

2013 $

Assets Current Assets Tangible Capital Assets Intangible Assets

2,141,890 27,975 32,405

2,247,008 42,558 -

2,202,270

2,289,566

1,089,756

1,166,898

17,484 1,107,240

92,000 1,258,898

Liabilities Current Liabilities Long-term Liability Accrued Pension Liability

FUND BALANCES Operating Restricted Strategic Invested in Capital Assets

Bill Ross, CPA, CA Chair, 2013-2014 Board of Directors

400,000 634,649

440,000 548,110

60,380

42,558

1,095,029

1,030,668

2,202,270

2,289,566

Bev Davies , CA Chair, Audit & Finance Committee 2013-2014

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FEI Canada 2014 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 National Strategic Partner program Profile, branding & advocacy Excess of revenues over expenses for year

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2014 $

2013 $

728,546 695,752 297,083 248,245 25,716 2,000 1,997,342

768,894 688,231 291,917 316,726 25,534 6,000 2,097,302

1,114,349 (44,712) 458,807 342,229 41,889 20,419

1,192,131 (102,955) 430,925 371,411 45,528 13,793

1,932,981

1,950,863

64,361

146,439

FEI Canada Summary of financial statements

NOTE TO SUMMARY FINANCIAL STATEMENTS June 30, 2014

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, 2014, 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). Each chapter is independently responsible for funding and managing its operations and, accordingly, are not included in these financial statements.

Full consolidated financial statements may be viewed on the FEI Canada website.

FEI Canada Full Financial Statements

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FEI Canada 2014 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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