FEI Canada
2015 Annual Report Leadership BEYOND FINANCE
FEI 2013 Annual Report Report FEICanada Canada 2015 Annual
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Table of contents
Table of contents Message from the CEO and the Chair of the Board of Directors
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Leaders
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CFO Leadership Beyond Finance Program
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Events
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Awards: Canada’s CFO of the Year™ and the Frank S. Capon Award
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Insights
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Policy Forum
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Research
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Summary Financial Statements
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National Strategic Partners
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FEI Canada 2015 Annual Report
Message from the CEO and THE chair of the board of directors Dear members, The past year has been marked by some exciting events, but our crowning achievement was the launch of FEI Canada’s CFO Leadership Beyond Finance program program. This executive education program provided a unique mix of leading–edge curriculum on leadership, strategy and execution, delivered by top faculty from Queen’s University School of Business and complemented by the insights and real-life CFO experiences of the seasoned Executives-inResidence who formed our Advisory Board. A resounding success by all accounts, I am excited to let you know that we are now accepting applications to Cohort Two of this program. To learn more about this program, please watch to this inspiring video featuring your fellow members, who recently completed Cohort One. You may also contact us at cfoleadership@feicanada.org. We are very lucky to have five recipients of Canada’s CFO of the Year™ award amongst the members of our CFO Leadership Beyond Finance program Advisory Board, the most recent of whom is Dean McCann, EVP and CFO of Canadian Tire Corp. Dean was honoured by more than 425 guests at our annual marquee event at The Ritz-Carlton Toronto on May 13, 2015. We enjoyed a wonderful dinner and heard heartfelt tributes to Dean from his peers and the presenting sponsors: FEI Canada, PwC and Robert Half. The crowning part of the presentation was a video in which the winner’s family, friends and work colleagues provided some very touching testimonials. You can read all about Dean in this profile in the Globe and Mail. Finally, we “Expanded our Horizons” at our 2015 annual conference, hosted by the dedicated members of the Winnipeg Chapter under the chairmanship of Bev Davies. If you want to relive photos some of the good times in Winnipeg, check out the video clips and photos on our website of the conference, the highlight of which was a special gala dinner with Gail Asper at the new Canadian Museum for Human Rights. And please mark your calendars for next year’s conference in Montreal, from Wednesday, June 8 to Friday, June 10, 2016 at the Fairmont Queen Elizabeth Hotel, when we will be `Driving Success’ just before the Formula 1 Grand Prix! Finally, for the new members reading this, we’d like to leave you with a few closing thoughts. You have joined the best organization for financial executives in Canada. It’s the best of the people who are involved in it at both the chapter and national level. Be one of those people, participate in events, join your local chapter board, and stay involved. You will be amazed at the value you get from this involvement.
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Message from the CEO and THE chair of the board of directors
Sincerely yours,
Michael Conway, FCPA, FCA, ICD.D President and Chief Executive Officer
Tim Zahavich, CPA, CA Chair, 2014-2015 Board of Directors
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FEI Canada 2015 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 outstanding 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 group of dedicated volunteers that provide our members with local support, professional development and thought leadership. Thank you to all of our volunteers!
2014-2015 Board of Directors Chair: Tim Zahavich, SGH (A, G) Vice Chair: Debbie Stein, Calgary (G) Immediate Past Chair: Bill Ross, Edmonton (G) Chair, CFERF: Vic Wells, SGH Chair, Chapter Leadership Council: Tyrone Cotie, Atlantic Provinces Chair, Audit & Finance Committee: Mark Walsh, Toronto (A) Chair, Membership Committee: Steve Rosen, Toronto Chair, Policy Forum: Peter Effer, Toronto Chair, 2015 Conference Committee: Beverly Davies, Winnipeg Co-Chair, Programming Committee: Derek Petridis, Toronto Co-Chair, Programming Committee: Elysia Estee, SGH Chair, Sponsorship Committee: Brian McAskill, Toronto
Director: Scott Calver, Calgary Director: Susan Deakin, SWO (A) Director: Carolyn Graham, Edmonton Director: Ken Kember, NCR (A) Director: Markus Weiss, Quebec Director: Cheryl Yaremko, Vancouver (A) 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 2015 leadership meeting, Winnipeg
2014-2015 Chapter Leadership Council Chair: Tyrone Cotie, Atlantic Provinces Chapter representatives: Nicole Archibald, SWO Lynne Black, Winnipeg Ernie Briard, NCR Susan Brioux, Toronto John Cole, Winnipeg Dean Cosman, NCR Vic Fitch, Calgary Anne-Marie Gammon, Atlantic Provinces Doug King, Vancouver Ananth Koovappady, SGH Gail Kruger, Regina Nancy Lala, Toronto Dan Lefaivre, Edmonton Hans Lung, Edmonton Louis Marcotte, Quebec
Gary Maystruck, Regina Grant McNeil, Calgary Florian Meyer, SGH David Minas,Toronto Maryann Moons, SWO Jeff Shickele, Vancouver National: Elysia Estee, SGH Brian McAskill, Toronto Derek Petridis, Toronto Steve Rosen, Toronto Debbie Stein, Calgary Tim Zahavich , SGH FEI Canada: Sharon Bradshaw, Liz Bowell Michael Conway, Pat Todd Line Trudeau
2014-2015 Membership Committee Chair: Steve Rosen, Toronto Chapter representatives: Jean Paul Beaulieu, Quebec Susan Berggren, Edmonton Amy Blakeney, Atlantic Provinces Marietjie Bower, Calgary Keith Boyd, Winnipeg Kriss Bush, SGH Dean Cosman, NCR Tyrone Cotie, Atlantic Provinces Angela Dexter, Atlantic Provinces Catherine Fels-Smith, Toronto James Fergusson, Calgary Alain Fortin, Quebec Peter Gimon, SGH Sonia Graham, Vancouver Dwayne Henley, Winnipeg Elizabeth Hoffart, Regina
Hubert Huang, Toronto Nancy Lala, Toronto Bertrand Lauzon, Quebec Kent Paul, Regina Jeffrey Resnick, Edmonton Monica Rocheleau, Quebec Frank Snyders, SWO Ron Stoesz, Winnipeg Meike Wielebski, Calgary Rudy Wytenburg, NCR Danley Yip, Vancouver National: Liz Bowell Sharon Bradshaw Michael Conway, Toronto Pat Todd Line Trudeau, SGH
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FEI 2012 Annual Report Report FEICanada Canada 2015 Annual
2014-2015 Chapter Boards
Click on the chapter name to learn more
Vancouver Chapter
Calgary Chapter
Edmonton Chapter
Regina Chapter
President: Jeff Schickele David Andru A. Thomas Assimes Peter Ballachey Roger Bissoondatt Gail Davidson Eduard Epshtein Sonia Graham Doug King Tim Kukler Hugh Lindsay Issa Nakhleh Oliver Piekaar Danley Yip Administrator: Liz Bowell
President: Grant McNeil Marietjie Bower Lisa Dorian James Fergusson Vic Fitch Nola Heale Allan Johnson Kevin McBeth Stephen Rue Walter Wakula Meike Wielebski Administrator: Evelyn Lawless
President: Daniel Lefaivre Susan Berggren Darren Buma Corinne Ferguson Carolyn Graham Hans Higa Hans Lung Arthur Madden Tracey Martin Woywitka Jeffrey Resnick Doug Woloshyn
President: Gail Kruger Brian Fergusson Elizabeth Hoffart Rick Hoffman Gary Maystruck Marty Meloche Kent Paul Christine Short
Southern Golden Horseshoe Chapter
President: Nancy Lala Jordan Beallor Donna Bibeau Jonathan Brindley Susan Brioux Alysia Carter Catherine Fels-Smith Leah Halpenny Ron Hosking Hubert Huang Sharlene Locke June McAlarey Brian McAskill David McIsaac David McLaren David Minas Steve Rosen Larry Rudner Gregory Scott Cliff Truax Russell Wong Administrator: Elvira Rago
Southwestern Ontario Chapter
President: Ananth Koovappady President: Nicole Archibald Dan Bowes Dawn Butler Kriss Bush David Corner Norman Col Susan Deakin Monique Delorme Jim King Elysia Estee James Knowles Peter Gimon Gitta Kulezycik Florian Meyer Lynn Logan Mary Parkes Lloyd Monteith Bob Rollwagen Maryann Moons Frank Snyders
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Toronto Chapter
Quebec Chapter President: Louis Marcotte Catherine Allard Denis Asselin Jean-Paul Beaulieu Robert Blain Philippe Castaingne Ross Corcoran Alain Fortin Marc Godin Bertrand Lauzon Ginette MaillĂŠ Maarika Paul Denis Pellerin Sylvain Perron AndrĂŠe Pinard Pierre Richard Michael Ross Claude Samson Paul Stinis Vicky Tumiotto Administrator: Monica Rocheleau
Pierre Richard
Winnipeg Chapter President: John Cole Lynne Black Keith Boyd Beverly Davies Catherine Gillespie Naomi Gregoire Dwayne Henley Larry Nentwig Ron Stoesz Beverley Szaura Dana Thiessen
National Capital Region Chapter President: Dean Cosman Michael Best Ernie Briard Tom Bursey Ken Kember Per Mokkelbost Grant Smith John Weerdenburg Rudy Wytenburg
Atlantic Provinces Chapter President: Anne-Marie Gammon Dave Bezanson Amy Blakeney Tyrone Cotie J. Andrew Cutten Angela Dexter Raymond McCormick Carl Vincent
2014-2015 Chapter Boards
We salute the Winnipeg Chapter Board, whose enthusiastic determination grew their membership by more than 50% this year!
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FEI Canada 2015 Annual Report
CFO LEADERSHIP BEYOND FINANCE PROGRAM
FEI Canada has partnered with Queen’s School of Business to develop a best in class uniquely positioned program for senior financial executives. The program is built around three strong themes: leadership, strategy and leading change, and strategic execution. Our first cohort included seven new members. This CFO Leadership Beyond Finance Program equips senior financial executives with the insights they need to become more effective leaders and better strategic advisors to their CEOs and boards of directors. The program partners top-tier university faculty with the following industry subject matter experts and executives-in-residence, who act as our advisory board: Debbie Stein Richard Bird Laurie Tugman Colleen Johnston Bruce Waterman Brian Lawson Dean McCann
CFO Leadership Beyond Finance Program
FEI Canada, the country’s leading association for CFOs, has partnered with Queen’s School of Business to develop a unique program for senior financial executives that combines best-in-class curriculum with the real life experiences of seasoned CFOs. Queen’s Executive Educationranked is #1 in Canada by Bloomberg Businessweek.
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Learn more about the CFO Leadership Beyond Finance Program
CFO LEADERSHIP BEYOND FINANCE PROGRAM CFO Leadership Beyond Finance Program
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Debbie Stein, CFO, AltaGas Ltd., and ViceChair of FEI Canada, addresses participants in her role as member of the advisory board of the CFO Leadership Beyond Finance Program.
Advisory board members Brian Lawson, CFO of Brookfield Asset Management, left, and Laurie Tugman, centre, are shown seated with Canadian Tire Board Chairman Maureen Sabia, right.
Brian Lawson, right, CFO of Brookfield Asset Management.
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FEI Canada 2015 Annual Report
EVENTS Our members continually tell us that the networking opportunities provided by FEI Canada events are invaluable. With the help of our 11 chapters across Canada, FEI Canada put on many events in the 2014-2015 year. Our webinar program had continued success, delivering knowledge directly to our members’ desks. Some topics presented through our National Breakfast Seminar series, and our webinar series included Measuring HR (Ceridian), Finance Transformation (Adaptive Insights) and Cloud & Analytics (IBM).
2014-2015 Webinars: Recent Developments in Canadian Corporate Income Tax
The Role of M&A in adding value to the organization
Government funding: How to find and keep the money!
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Events
FEI Canada Annual National Conference Conference the grand finale to our calendar of events, was held this FEI Canada’s Annual National Conference, year in Winnipeg. The Conference committee, chaired by Bev Davies of the Winnipeg chapter, presented an outstanding annual conferences, according to participants, eight out of ten attendees rated it an 8 or higher (on a 10 point scale).
Next year, the conference will be held at the Fairmont Queen Elizabeth Hotel in Montreal from June 8-10, 2016, and will be chaired by Markus Weiss, so please save the date in your calendars.
2014-2015 Conference Committee
Chairs: Bev Davies Vice Chair: Dwayne Henley
Chapter representatives: Brian Albo Lynne Black Brita Chell John Cole Jeff Morton Susan Nemec Chris Podolsky Bev Szaura Cliff Truax
National: Sharon Bradshaw Don Comish Michael Conway Andrea Cooney Laura Pacheco Rita Plaskett Pat Todd
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EVents
FEI Canada Annual National Conference
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Top: The Annual Conference Gala featured dinner featured Gail Asper, co-founder of the Canadian Museum of Human Rights and Trustee, The Asper Foundation. Bottom: FEI Canada and Robert Half golf tournament, Bridges Golf Course
EVENTS
Conference keynote speaker videos Financial Leverage: How financial leaders exert strategic influence Brian Ferguson, CEO, Cenovus Energy
CFO Panel Moderator: Bruce Waterman, Selection Committee Chair, Canada’s CFO of the Year Alister Cowan, EVP & CFO, Suncor Janice Fukakusa, Chief Administrative Officer & CFO, RBC & Canada’s 2014 CFO of the Year Award recipient Don Solman, VP & CFO, James Richardson & Sons International
Successfully doing business with the aboriginal community Moderator: Scott Reeves, Partner, Tingle Merrett Ian Anderson, President, Kinder Morgan Canada Joe Dion, Chairman & CEO, Frog Lake Energy Resources Jean-Paul Gladu, Canadian Council for Aboriginal Business
Technology Forum – Social Media & the CFO Moderator: Bill Ross, Business Executive, Vercerta Inc. Xerxes Cooper, CFO, IBM Canada Randall Craig, Social Media Expert Tim Siemens, Chief Technology Officer, Online Business Systems
Economic Outlook panel Moderator: Dean Newman, Principal, Cresa Partners Dawn Desjardins, Deputy Economist, RBC Todd Hirsch, Alberta Treasury Branch
Closing Lunch James Robbins, Leadership Trainer and Motivational Speaker & Founder, The Robbins Group
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FEI Canada 2015 Annual Report View the CFOY website
TM
Read our newsletter celebrating Dean McCann, our 2015 winner
Dean McCann, CFO of Canadian Tire Corporation and 2015 Canada’s CFO of the YearTM Award winner.
Michael Conway, Bill McFarland, CEO of PwC, Dean McCann and David King, Canadian Director of Robert Half.
Annually, FEI Canada recognizes great financial leaders with our Canada’s CFO of the Year™ Award. Each year, the nominating committee assembles to discuss at length the group of potential winners, drawn from many worthy nominations received. 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.
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Canada’s CFO of the Year™ This year’s Canada’s Year™ award gala on May 13th,was a wonderful evening at the Ritz Carlton where more than 425 guests gathered at the sold-out event to honour our winner. A video with interviews from colleagues and family allowed the winner to bask in the glow of approval from his entourage.
Awards
Frank S. Capon Award for distinguished SERVICE
Louis O’Brien, 2015 Capon Award winner and Michael Conway
At our National Conference in Winnipeg, FEI Canada was very pleased to present this year’s Frank S. Capon Award for distinguished volunteer service to Louis O’Brien. 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.
Read our newsletter celebrating Louis O’ Brien, our 2015 winner Learn more about the Capon Award
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FEI Canada 2015 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 Chair: Peter Effer, Toronto Tim Zahavich (Interim Chair)
Treasury and Capital Markets Committee Chair: John Forester, Toronto A. Thomas Assimes, Vancouver Tyrone Cotie, Atlantic Provinces Mark Donaghy, Toronto John Hanbury, Vancouver Jim King, SWO Angela Lekatsas, Calgary Sunil Mistry, KPMG Bill Ross, Edmonton Jacques Roy, Quebec Jeff Shickele, Vancouver Paul Stinis, Quebec Tim Zahavich, SGH
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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 Chair: Bill Ross, Edmonton Anne Burpee, Toronto Xerxes Cooper, Toronto Chris Evans, Atlantic Provinces James Fergusson, Calgary Ken Kember, Ottawa Naresh Khosla, Toronto Louis Marcotte, Quebec Marc Ouellet, Quebec Tim Spielman, Calgary Lisa Zingaro, Toronto
Governance and Risk Committee Chair: Hubert Huang, Toronto Beverly Davies, Winnipeg Marc Diamant, Toronto Jens Ehlers, Toronto John Glicksman, Toronto Rick Hoffman, Regina Bill Ross, Edmonton Gerry Wahl, Vancouver Victor Wells, SGH
Private Company Committee Chair: David Balmer, Toronto Bruce Bailey, Toronto Anne Burpee, Toronto John Forester, Toronto Sonjia Johansen, Regina Kurt Kroesen, Toronto Marc Malouin, Quebec Florian Meyer, SGH Rohit Milhoutra, Toronto Sunil Mistry, KPMG Ajay Rao, Toronto Gregory Scott, Toronto Dana Thiessen, Winnipeg
INSIGHTS – Policy FORUM Thought leadership committees at FEI Canada annual conferences
Controller’s Roundtable: Susan Campbell, Cineplex (left); Technology Forum – Social Media & the CFO: Bill Ross, Business Executive, Vercerta Inc. (right).
“Cash is still king” (Treasury Committee): John Forester, CFO of DBG (right)and Angela Lekatsas of Agrium (left).
Pension Committee Chair: Norm Ferguson, Edmonton Jayne Connolly, Atlantic Provinces Peter Donovan, Toronto Tony Hooper, Toronto Rolland Morier, Quebec Kevin Sorhaitz, Morneau Shepell Gerry Wahl, Vancouver Don Wishart, Atlantic Provinces
Committee on Corporate Reporting Chair: Neil Robertson, Calgary Vice Chair: Susan Campbell, Toronto Joanne Boyes, Regina Karyn Brooks, Calgary Surendra Bungaroo, Toronto Anne Burpee, Toronto Angela Butler, Calgary Scott Calver, Calgary
Brian Fiedler, Toronto Murray Harris, Calgary Gordon Heard, SGH Sujeet Kini, SGH Nancy Lala, Toronto Glenn Menuz, Calgary Janice Rath, Calgary Nathan Reeve, Calgary Tim Smart, Toronto
Mark Swalwell, Toronto Antoine Turki, Quebec Mark Walsh, Toronto John Weerdenburg, NCR Markus Weiss, Quebec Victor Wells, SGH National representatives: Michael Conway, Toronto Laura Pacheco, Toronto
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FEI Canada 2015 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
2014-2015 CFERF research studies Measuring HR: Given that the largest expense item for most companies is payroll and associated costs, and their largest asset is employees, it is not surprising that the human resources function is often overseen by Finance. Nearly two-thirds of senior financial executives surveyed by the Canadian Financial Executives Research Foundation do not regularly employ HR analytics as a tool to help them better understand the costs associated with their organization’s workforce. 64% of survey respondents said they either did not use HR analytics, or its use was sporadic. Sponsored by Ceridian.
The bottom is falling out of the barrel, so now what? With cash flows plummeting and the length of the downturn in oil prices uncertain, oil and gas executives are grappling with the challenges they are experiencing and, more importantly, how they plan to tackle the road ahead. In a lively panel discussion, finance leaders gathered at an FEI Canada event in Calgary on February 23, 2015 to discuss their experiences and views on the impact of plunge in oil prices since the summer of 2014. This outlines some strategies oil companies have been using in the last few months, and how they are planning to grapple with the challenges in the months ahead. Sponsored by Microsoft.
Benchmarking the finance function 2015: Benchmarking the accounting and finance function may be more important — and more difficult — than ever. Businesses have grown increasingly complex and global, while the pace of change has accelerated. The result? Many finance organizations struggle to simply keep pace. The information in this report is based on our sixth annual survey of nearly 1,400 financial executives representing companies across the United States and Canada, spanning a full range of industries and sectors. The report is divided into sections representing key functional categories: workforce management, accounting operations, financial systems, sourcing, and internal controls and compliance. Sponsored by Robert Half. Credit availability in Canada 2014: Targeting an ideal capital structure: A company’s ideal capital structure reflects its current economic environment, anticipated outlook, and its appetite for risk. Now in its sixth year, the 2014 CFERF credit availability study reviews Canadian companies’ capital structure, the variables influencing that structure, and Canadian financial executives’ views on the economic outlook. The majority of Canadian financial executives surveyed in this year’s study were more optimistic about prospects for their companies and the economy in their sectors in June 2014 than they were 12 months before. Eight out of 10 Canadian financial executives surveyed say their companies are ready to grow, mainly through organic growth. Sponsored by Ernst & Young.
MEASURING HR: Moving beyond number crunching
The bottom has fallen out of the barrel, so now what?
THE BOTTOM HAS FALLEN OUT OF THE BARREL: 2015
A CFERF REPORT, SPONSORED AND C
TED BY MICROSOFT CANADA
A report by the Canadian Financial Executives Research Foundation April, 2015
PREPARED BY:
SPONSORED AND
PRESENTED BY:
2015
BENCHMARKING
THE ACCOUNTING & FINANCE FUNCTION
Credit availability in Canada 2014:
Targeting an ideal capital structure
INSIGHTS – CFERF RESEARCH
Thank you to our 2014-2015 CFERF Donors Corporate Donors SILVER ($5,000-10,000): CGI Group Inc. Suncor Energy Inc.
BRONZE ($1,000-5,000): Ameresco Canada Inc. Canadian Western Bank Group Investors Group
Chapter Donors We would like to thank all of FEI Canada’s 11 chapters for their generous donations to CFERF.
Personal donations Benefactors ($500+): Bill Hewitt
Siim Vanaselja
Chair: Victor Wells, SGH Vice Chair: Mark Walsh, Toronto Vice Chair: Thomas Evans, SGH Robert Angel, Vancouver Alister Cowan, Calgary Beverly Davies, Winnipeg Lisa Dorian, Calgary Emerson Fiske, Atlantic Provinces William Hewitt, Toronto Oliver Hüls, Toronto Richard Iwaniuk, Edmonton Tim Zahavich, SGH
Victor Wells
Patrons ($250-499): Normand Barabé Scott Calver Tyrone Cotie
CFERF Board of Trustees 2014-2015
Michael Conway Alister Cowan Michael Doolan
Douglas Urch
Sebastien Lepage Andrew MacMartin Michael Makinson Matt Matia Joseph B Mc Arthur Ian McDonald Per Mokkelbost Rolland Morier Sylvain Ouellette Keith Palmer
Douglas Proll Roger Rees Greg Reiser David Roszell Peter Scott Grant Slater John Steen Qi Tang Bruce Waterman
Andrew Dindayal Sandi Kaye Jason Lang Rafael Larissa Michel Levasseur James Marinyak Mohini Matadeen
Larry Nentwig Massood Oroomchi Lucas Pontillo Kasey Reese Ravi Rupnarain Hank Sam Rolf Wenzel
National representatives: Michael Conway, Toronto Laura Pacheco, Toronto Line Trudeau, SGH
Supporters ($100-249): Bryan Albo Robert Brookwell Edward Brown Rob Elliott Norm Ferguson Emerson Fiske F. Barry Gorman Caroline Goulian Allan Johnson Nadif Lalani
Learn more about corporate sponsorship of research Make a personal donation to CFERF
Donors (up to $100): Dale Bencharsky Francois Berthiaume Patrick Bieleny Gilles Boucher James Boyd Jeffrey Cook Marcello DiMarco
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FEI Canada 2015 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 Winnipeg, our National Breakfast Seminar series, our National Executive
Development Webinar series, Canada’s CFO of the Year™ Award and our CFO Leadership beyond Finance program in partnership with Queen’s School of Business. 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 volunteer-driven thought leadership technical committees.
Key performance Metrics
Revenues Expenses Excess of expenses over revenues (revenues over expenses) Excess, excluding pension plan expense for past employees
Members Events: Breasfast seminars and private events Webinars Research studies completed National Strategic Partners at year-end
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2015 $ 1,792,943 1,809,739
2014 $ 1,997,342 1,987,326
(16,796)
10,016
(6,423)
19,649
#
#
1,575
1,616
3 2 4 14
4 8 8 11
FINANCIAL PERFORMANCE REVIEW
Results of Operations FEI Canada reported an excess of expenses over revenues of $16,796 for the year ended June 30, 2015, compared to a profit of $10,016 a year ago. Excluding the impact of the actuarial costs of the closed Pension Plan for past employees, the excess of expenses over revenues would have been $6,423 compared to a profit of $19,649 last year. There was an accounting policy change this year which resulted in recognizing the gain on re-measurement of the pension plan assets and obligations (2015: $11,972 and 2014: $54,345) in net assets, rather than in the income statement. This change was applied retroactively to the 2014 financial statements.
Revenues
Revenues decreased by $204,000 or 10% from a year ago, from $1,997,000 to $1,793,000. CFERF revenues of $140,000 were $108,000 lower than the prior year, as 4 research studies were completed this year compared to 8 last year ($95,000) and donation revenues declined $13,000. Revenue from Events reached $586,000, a decline of $109,000 from last year. Lower revenue from our annual conference and webinars was offset partly by the successful launch of the first cohort of our
CFO Leadership beyond Finance program. Membership dues and fees, at $707,000, show a decline of $22,000, stemming from the loss of 41 members this year. Income on our investment portfolio, at $18,000, was impacted by the low interest rate environment. Revenue from our National Strategic Partners program, at $338,000, shows a $41,000 increase yearover-year given the net addition of 3 sponsors for a total of 14 at year-end.
REVENUEs CFERF Research studies and donations
National Strategic Partner program
Investment Income 1%
8%
39%
19%
Events
Membership dues and initiation fees
33%
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FEI Canada 2015 Annual Report
EXPENSES
Expenses, at $1,810,000, decreased $177,000 (or 9%) from $1,987,000 a year ago resulting from initiatives to save costs.
a higher profit on our Canada’s CFO of the Year™ Award gala this year. Administration, occupancy and other costs decreased $33,000 or 10% overall. Our spending on our National Compensation expenses, representing 57% of Strategic Partner program was up $16,000 FEI Canada’s expenditures, decreased $94,000 to $58,000 given the increase in number of (or 8%) compared to last year. Event costs were sponsors and Profile, branding & advocacy lower by $68,000, mostly due to lower costs costs were virtually unchanged at $20,000. associated with our annual conference and
EXPENSES, excluding pension Plan National Strategic Partner program 3% Administration, occupancy and other costs
Events
Profile, branding 1% & advocacy
17%
22%
57%
Compensation
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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 September 29, 2015
Michael Conway, FCPA, FCA, ICD.D President & CEO
Line Trudeau, CPA, CA, MBA Chief Financial Officer
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FEI Canada 2015 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, 2015 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, 2015. We expressed an unmodified audit opinion on those financial statements in our report dated September 29, 2015. 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, 2015 are a fair summary of those financial statements, on the basis described in the note to the summary financial statements.
Toronto, ON September 29, 2015
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Chartered Professional Accountants Licenced Public Accountants
FEI Canada Summary of financial statements
SUMMARY STATEMENT OF FINANCIAL POSITION
June 30
2015 $
2014 $
Assets Current Assets Tangible Capital Assets Intangible Assets
Liabilities Current Liabilities
2,227,116 21,281 44,526
2,141,890 27,975 32,405
2,292,923
2,202,270
1,223, 429
1,089,757
3,232 1,226,661
17,484 1,107,241
410,000 590,455
400,000 634,649
Long-term Liability Accrued Pension Liability
FUND BALANCES Operating Restricted Strategic Invested in Capital Assets
65,807
60,380
1,066,262
1,095,029
2,292,923
2,202,270
Approved on behalf of the Board,
Debbie Stein, CPA, CA Chair, 2015-2016 Board of Directors
Ken Kember, CPA, CA Chair, Audit & Finance Committee 2015-2016
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FEI Canada 2015 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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2015 $
2014 $
706,944 586,456 338,075 139,785 17,874 3,809 1,792,943
728,546 695,752 297,083 248,245 25,716 2,000 1,997,342
1,020,657 10,373 391,032 309,708 57,918 20,051
1,114,349 9,633 458,807 342,229 41,889 20,419
1,809,739
1,987,326
(16,796)
10,016
FEI Canada Summary of financial statements
NOTE TO SUMMARY FINANCIAL STATEMENTS June 30, 2015
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, 2015, 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.
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FEI Canada 2015 Annual Report
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National Strategic Partners
National Strategic Partners Thank you to our 2014-2015 National Strategic Partners for their ongoing support.
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