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transcript
CAIRP Annual Report
2010.2011
Rebuilding Success
Canadian Association of Insolvency and Restructuring Professionals
Page 1
THE CURRENT VISION STATEMENT
OF THE ASSOCIATION IS:
“CAIRP members are recognized leaders in providing solutions to financially challenged individuals and
businesses.”
THE CURRENT VALUE STATEMENT
OF THE ASSOCIATION IS:
"CAIRP and its members are committed to professionalism, trustworthiness and objectivity."
THE CURRENT MISSION STATEMENT
OF THE ASSOCIATION IS:
"To:
educate and support its members in providing insolvency, restructuring and related advisory
services in a manner that instils the highest degree of public trust; and
advocate for a fair, transparent and effective system of insolvency and restructuring
administration throughout Canada."
2010/2011 EXECUTIVE COMMITTEE
Left to right first row: Kevin Brennan, A. John Page.
Second row: David Howe, Guylaine Houle, Norman H. Kondo.
Page 2
2010/2011 BOARD OF DIRECTORS
CHAIR VICE-CHAIR
Kevin Brennan, CA•CIRP, CIRP Guylaine Houle, BCL, FCIRP
Vancouver, BC Montreal, Qc
SECRETARY – TREASURER CICA REPRESENTATIVE
A. John Page, FCA, CACIRP, CIRP David A. Howe, FCA, CMA, CACIRP, CIRP
Toronto, ON St. John’s, NL
PRESIDENT
Norman H. Kondo, BA, LL.B., CIRP (Hon.)
Toronto, ON
ALBERTA NOVA SCOTIA
Bruce E. Alger, B.Comm., CACIRP, CIRP Leanne Elizabeth Salyzyn, B.Comm., CIRP
BRITISH COLUMBIA ONTARIO
Colleen Craig, CACIRP, CIRP Paul M. Casey, CACIRP, CIRP
MANITOBA QUEBEC David A. Johnson, CGA, CFE, CIRP Gilles Robillard, CA, CIRP
Pierre Lemieux, CIRP
NEW BRUNSWICK SASKATCHEWAN
Ann C. Poirier, CACIRP, CIRP E. Dean Burlingham, MBA, CA
NEWFOUNDLAND and LABRADOR OUTSIDE DIRECTORS
Ian Penney, CACIRP, CIRP Professor Gail Fayerman, CA, MBA
Hon. Yoine Goldstein, BA, BCL (Hons.), Ph.D.
ADVISORY COUNCIL ASSOCIATION STAFF
1979-80 L. Claude Mercure, CA, FCIRP (ret.) President
1980-81 Keith G. Collins, FCA, CACIRP, FCIRP* Norman H. Kondo, B.A., LL.B., CIRP (Hon.)
1981-82 Ian K. Strang, FCA, FCIRP (ret.) Director of CAIRP Education Programs
1982-83 C. Garth MacGirr, FCA Bea Casey, B.Sc., MBA
1983-84 Donald J. Henfrey, FCA Manager Member Relations
1984-85 Gary F. Colter, FCA, CACIRP, FCIRP (ret.) Roxanne LaBrie, B.A.
1985-86 John J. Swidler, FCA, FCIRP Office and Events Manager
1986-87 Beverly W. Fowler, CA, FCIRP (ret.) Joshua Katchen, B.A
1987-88 Alan G. Driver, CA, FCIRP (ret.) Administrative Assistant Finance
1988-89 George B. Lomas, FCA, CACIRP, FCIRP Judy Garant
1989-90 Terence M. McMullen, FCA, FCIRP (ret.) Executive Assistant & IA Course Administrator
1990-91 Jean-Guy Daoust, CA Mirela Bolentiru, M.M.E.
1991-92 J. Alan MacKinnon, FCA, CACIRP, FCIRP CQP Registrar
1992-93 Uwe Manski, FCA, CACIRP, FCIRP Isabelle Gauthier
1993-94 William J. Drake, FCA Administrative Assistant to the CQP Registrar
1994-95 Gilles Campeau, CA, FCIRP (ret.) Joy Fraser
1995-96 Stephen H. Barnes, FCIRP (ret.)
1996-97 Ralph W. Peterson, CA, FCIRP
1997-99 Robert O. Sanderson, FCA, CACIRP, FCIRP
1999-01 Peter D. Wedlake, LL.B., FCIRP
2001-03 Larry W. Prentice, FCA, CACIRP, FCIRP
2003-05 William Alan Courage, CACIRP, FCIRP
2005-07 Claude Gilbert, FCA, FCIRP
2007-09 Alan H. Spergel, B.Comm., CACIRP, CFE, FCIRP * Deceased
Page 3
CHAIR’S MESSAGE
As the cover of this year’s
Annual Report illustrates
moving the agenda to new
heights was the theme of
our Association in 2010-11.
Clearly, the most dynamic
issue facing the Association
during the current fiscal
year was consideration of
the nine issues raised in the
Review of the Trustee Licensing Regulatory
Framework paper issued by the Office of the
Superintendent of Bankruptcy (OSB) on June 10,
2010. Review and analysis of the issues tasked
more than 50 general members of the
Association; with the result being a
comprehensive position paper expressing the
views of the Association from a position of
reason and in a manner consistent with the
mission, vision and value statement of CAIRP.
Following submission of the position paper on
August 31, 2010, the CAIRP Executive attended
on September 15, 2010 in Ottawa to verbally re-
iterate the content of the position paper, and
build upon the written words of preserving
public trust in the system and maintaining the
highest standards for those delivering services to
the public at large. The presentation promoted
the qualities of Trustees, providing an
opportunity to showcase the confidence
Parliament has entrusted in the profession
through legislation, including as the lead
professional acting under the Bankruptcy and
Insolvency Act (BIA), Companies’ Creditors
Arrangement Act (CCAA), and the Wage Earner
Protection Program Act (WEPPA).
As a reminder, the key recommendations of the
position paper are, inter alia:
Harmonize the Licensing Directive with the
Memorandum of Understanding (MOU)
pertaining to the CIRP Qualification Program
(CQP) to make it clear that the CQP is a
prerequisite to licensing as a trustee in
bankruptcy (subject to limited exemptions).
Refrain from implementation of dual
licensing and regulated specialization for the
rationale detailed in the position paper.
Refrain from the appointment or designation
of others as administrators of consumer
proposals unless such individuals meet the
exacting standards of a professional service
provider in fulfilling the obligations of the
appointed role. Such standards must be the
highest standard, which are currently
embossed within the Trustee community.
Maintain the twenty four month probationary
period, with additional considerations for
those seeking to become sole practitioners
within the probationary period.
Outline the specific criteria to be considered
by the OSB for re-instatement of a trustee
license following the onset of an insolvency
proceeding by a trustee in bankruptcy. The
position paper recommended the OSB retain
broad discretion with regard to such re-
instatement to enable the OSB to preserve the
public’s trust in the insolvency system.
Modernize the naming standards applicable
to operating trustee in bankruptcy practices.
Permit investment in Corporate Trustees
(directly or indirectly), whether by private
equity or public markets, subject to certain
restrictions.
Implement a risk based annual renewal fee
process and/or a direct cost recovery levy
against pervasive users of the audit services
of the OSB.
Require succession agreements for all
trustees in bankruptcy to ensure the
continuity of practice for the protection of the
public should an adverse event occur.
Require the filing of an Annual Report with
the OSB, limited to identification of areas of
non-compliance, if any, and confirmation of
professional liability insurance.
While we as members of the Association can all
be satisfied that the Association has filed a
position paper that is thorough and reasoned and
will carry substantive weight with the OSB,
these written words require a direct correlation
with the practice of our members. We as
practitioners must live these written words every
day through exercising sound business practices
and judgment; we must never violate the trust
that has been bestowed upon us by Parliament
and through licensing as trustees in bankruptcy
Page 4
by the OSB.
Be assured that the Association has continued in
its efforts to influence the content of the
Licensing Directive, particularly as related to the
issue of Administrators of Consumer Proposals.
To this end, CAIRP has developed an approach
that incorporates seven key elements for success,
the elements builds upon the key messaging of:
Consumer choice of a quality service
provider resides within a vast population of
qualified trustees prepared to provide
desirable and predictable results
Vast capacity resides in the bankruptcy and
insolvency system to service changing
market dynamics and economic
circumstances.
Targeted education through a continuum of
learning and experience provides unbiased
stakeholder representation, an informed
consumer debtor decision process and access
to unparalleled professional judgement.
Relaxing or a perceived relaxing of the
standards in the face of a perceived or real
conflict of interest involving third parties
during a period of evolving market
complexities threatens the principles of
integrity, professionalism and objectivity
upon which public confidence in the
insolvency system resides.
The principle of a profession is that the
individuals within it maintain a distinct
expertise that allows them to perform a
service that is superior to all others; deriving
the rehabilitation needs of the consumer
debtor – experience, depth of education,
breadth of service offering – the Trustee as
the professional.
At the time of writing this submission for the
Annual Report, CAIRP awaited the decision of
the OSB regarding the Licensing Directive, by
the time this submission is read by members, the
decisions of the OSB will, likely, be known.
Rest assured that irrespective of the decisions of
the OSB regarding the Licensing Directive, the
Association will serve as a relevant advocate for
the interests of the members and will work with
the OSB to resolve transitional or other issues
that could or would arise from the
implementation of the decisions. In this same
regard, we expect all CIRPs to continue to
practice with the same degree of professionalism
and diligence, holding true to the value statement
of the Association.
CIRP Qualification Program
The Association has continued to build upon the
success achieved during 2009-10, whereupon the
Association and the OSB entered into the MOU
that served to repatriate the education program
within the Association.
During the current fiscal year, the Association
has successfully transitioned governance from
the NIQP Board to the CQP Committee, under
the leadership of, inter alia, the CQP
Committee’s first Chair, Jean-Daniel Breton,
CAIRP’s Director of Education, Bea Casey, and
outside CAIRP Board Member, Gail Fayerman
(senior lecturer, John Molson School of
Business, Concordia University). Since the
transition much has been accomplished:
A transition map for candidates within the
NIQP was designed and deployed to assist
candidates to assess their progression path to
obtaining their CIRP certification.
Policies and procedures have been developed
and implemented to align with the MOU and
the requirement for the newly revised
program.
A competency summit was conducted with
broad stakeholder representation to develop
CAIRP’s first competency map. Such
mapping was the subject of an independent
survey involving the desirable competencies
of new CIRPs, which included response by
344 members.
Training courses for members participating in
exam development have been conducted to
ensure the exams are reflective of the high
quality of the program and achieve the
expectations of the stakeholders.
Exam blueprints have been developed based
on the competency mapping.
An agreement has been negotiated with
Carswell to permit CQP candidates free
access to Insolvency Source.
The Core Knowledge Course has been
updated and revised based on a consolidation
of the previous NIQP courses.
Page 5
The Applied Knowledge Course has been
developed, which includes in-depth case
studies, course materials aligned with the
competency map and new materials that
supplement that previously part of the NIQP.
All those involved in the development of the
CQP deserve special recognition for their
dedication to the task at hand and the substantial
effort that has been undertaken.
Annual Conference
CAIRP continued its tradition of successful
annual conferences in August 2010 by hosting its
most successful conference, by attendance, in
Kelowna, BC. This conference built on the
successful platform of opening the conference to
non-members of the Association; first started at
the Deerhurst Resort in Huntsville, ON. The
total number of attendees was 199, of which 125
were CAIRP members and 74 were non-
members, including lawyers, judges, bankers and
registrars; the balance comprised guests of
members and non-members. The conference
involved many networking opportunities for
members and non-members and provided ample
opportunity for fun. The conference included
many memorable moments, including an address
by Michael “Pinball” Clemons, a former player
and head coach of the Toronto Argonauts of the
CFL and current philanthropist and motivational
speaker. The conference also included an
extensive technical and educational component
where stakeholder points of view were expressed
and debated.
Website Upgrade
CAIRP continues to upgrade and update its
computer technology, including the website;
making the technology more member friendly.
During the current year advanced discussion
boards (including one dedicated to CQP
candidates), a dedicated job posting board and
improved and more relevant content were added
to the website.
Relations with Government
The Association continued during the current
year to broaden and deepen its dialogue with the
all relevant departments and agencies of the
Government of Canada, including the OSB.
In addition to the Review of the Licensing
Framework, as discussed above, the Association
has continued to work with representatives of
Government departments and agencies to
advance the collective interests of instilling
transparency and the public’s confidence in the
insolvency system. The Association is an active
participant in legislative reform, including with
respect to policy that does not directly affect the
members of the Association; but has a broader
impact on the stakeholders of the insolvency
system.
During the current year, the Association
developed:
A position paper pertaining Bills C-476, C-
487, C-501, S-214, and S-216 that were on
the agenda of the 40th Parliament of Canada.
These Bills dealt with proposed changes to
the BIA, CCAA and WEPPA as regards to
pension priorities, priority for severance and
termination pay, enhanced status to certain
long term disability benefits provided by an
employer, and extension of the wage
priorities under WEPPA. In addition, the
Bills addressed certain changes to the Canada
Business Corporations Act (CBCA) in
respect of actions against directors.
A position paper on the application of levy
under BIA s. 147 in respect of the super
priority wage and pension claims under BIA
s. 81.3 - s. 81.6.
A position paper on the mediation process in
order to clarify Rule 105 of the Bankruptcy
and Insolvency General Rules.
In addition to the foregoing, representatives of
the CAIRP Corporate Practice Committee
attended before the Standing Senate Committee
on National Finance to testify as to, inter alia,
the effect on the economy and availability of
credit to operating businesses should the pension
and other proposed priorities (as outlined in the
above noted Bills) be proclaimed. Following
testimony by members of the Association and
representatives of other stakeholder interest
groups the Bills were defeated.
As a result of the Association’s continued efforts
in advancing the legislative agenda for the
benefit of all stakeholders, CAIRP welcomed
and hosted the Hon. Lisa Raitt, Minister of
Labour, to the offices of the Association for a
broad based discussion pertaining to current
legislative initiatives and the effect on business
practices. There was a time when the
Page 6
Association sought Parliamentarians to express
its view on matters of public interests, now
Parliamentarians seek our time, this is a
reflection of the quality of our input and
recognition that we put the interests of the
stakeholders at the forefront of our thinking; we
are not a self-interest body, but a broad based
public interest group that recognizes that
member success and public confidence in the
quality of the insolvency system are intrinsically
aligned.
The CAIRP Executive and the OSB continued its
tradition of meeting regularly in Ottawa to
identified and discuss issues of relevance to the
stakeholder community. Such meetings provide
each of the Association and the OSB a platform
to debate issues that will have a direct bearing on
the practices of members of the Association.
These meetings provide the CAIRP Executive
members certain directional perspective with
respect to future policy and permit the
Association to proactively consider issues,
including the effect on members, prior to formal
policy announcements.
Finally, as pertains to Government relations,
CAIRP continues its efforts with officials from
several federal departments and agencies as part
of the WEPP Joint Liaison Committee (JLC). Its
mandate is to address short-term policy and
procedural issues regarding the Wage Earner
Protection Program (WEPP). CAIRP members
on the JLC continue to seek regulatory reform
pertaining to the WEPPA Regs. 18 and 19
(having regard to the compensation afforded a
receiver or trustee in bankruptcy in the event the
assets of the debtor enterprise are insufficient to
discharge the fees and costs of the insolvency
practitioner) and seek mechanisms to streamline
the administration of the WEPP program.
Standards
Again this past year the Association has
demonstrated vast leadership by developing and
establishing Standards of Professional Practice
for its members. At the Annual Conference in
August 2010 the efforts of the Appraisers and
Liquidators Task Force were formally
recognized and concluded through proclamation
of two new standards as related to the benchmark
minimum standards of practice when engaging
the services of appraisers and liquidators.
In addition, during the current year three new
standards of professional practice were
developed and enacted by the CAIRP Board of
Directors. The standards include:
Counselling – the manner in which
counselling is to be conducted by a
qualified counsellor.
Consumer proposals – the duties of the
Administrator.
Statement of Affairs – the member’s
obligation to verify the contents and report
to stakeholders.
These standards were actively debated by the
Consumer Standards Committee, the CAIRP
Executive, CAIRP Board of Directors and
through two distinct exposure draft periods.
Member input was extensive and welcome with
five provincial association position papers and
more than 350 pages of comments provided on
the draft standards. The Association recognizes
and thanks all members that participated in this
process.
These consumer standards voted upon and
proclaimed at an April 5, 2011 special general
meeting.
Continuing Education
The 2010 Commercial Program was a successful
event. 6 panels spoke to a packed room of 142
attendees, including CIRPs, lawyers, registrars,
lenders and government officials. Attendance
saw a marked improvement from the 2009
Commercial Program. Sponsorship by the major
accounting and law firms was excellent, showing
their continued commitment to this annual event.
800 attended the six-city Insolvency &
Restructuring Forum in 2010. Among those that
attended, the post-Forum survey found that, for
most of the topics and in most of the cities, the
program either met or exceeded expectations.
Volunteers
In closing, I would like to express my sincere
gratitude to our 250-plus volunteers. The names
of all committee members are listed in this
Annual Report. There are also dozens of other
volunteers who undertake various tasks for the
Association and /or to advance the CQP, such as
exam preparation and marking. I have had the
pleasure of meeting and working with many of
Page 7
our volunteers; it is gratifying to see such a
significant proportion of our membership
enthusiastically giving back to the profession. I
especially wish to thank those volunteers who
give of their valuable time and yet are not
members of the Association; your participation
in the undertakings of CAIRP deserves special
recognition.
To those members who have not yet had this
rewarding experience, I would simply urge you
to become involved. CAIRP is your Association,
and it can accomplish more for you, and for the
profession as a whole, if it has your
wholehearted commitment and participation.
I would be remiss if I did not express my
appreciation to CAIRP’s staff. President Norm
Kondo continues to manage CAIRP and support
our volunteers with energy and creativity. My
thanks, also, to Bea Casey, Joshua Katchen,
Isabelle Gauthier, Mirela Bolentiru, Judy
Garant, Joy Fraser and Roxanne Labrie for
their dedication. Thanks to all for an excellent
2010-11.
I would also be remiss if I did not recognize
Sandra Porter and Sheldon Gordon who left
CAIRP after more than 17 and 7 years,
respectively, of dedication to the Association to
pursue other interests. I wish Sandra and
Sheldon the best of success with their new
careers.
The current year, my second year as Chair, has
been both a challenge and a pleasure. Much has
been accomplished during the current year to
broaden recognition of the Association,
promoting the growth in stature of both CAIRP
and the CIRP certification mark. I am very
proud of the accomplishments of the Association
during the current year and look forward to your
feedback and comments during the up-coming
CAIRP Annual Conference (August 16 to 19) in
Charlevoix, QC. Hope to see you all there.
Kevin Brennan, CA•CIRP
Chartered Insolvency and Restructuring
Professional
Chair
Page 8
2010/2011 COMMITTEES
ANNUAL CONFERENCE (2010)
* Yvonne Sutton, CIRP BC
Stephen Boale, CGA, CIRP BC
Colleen Craig, CACIRP, CIRP BC
Stewart Rennie, CGA, CIRP BC
Michael Wright, CA, CIRP BC
BOARD OF DIRECTORS
* Kevin Brennan, CACIRP, CIRP BC Guylaine Houle, BCL, FCIRP QC
A. John Page, FCA, CACIRP, CIRP ON
David A. Howe, FCA, CMA, CACIRP, CIRP NL Norman H. Kondo, BA, LL.B., CIRP (Hon.) ON
Colleen Craig, CACIRP, CIRP BC
Bruce E. Alger, B.Comm, CACIRP, CIRP AB E. Dean Burlingham, MBA, CA SK
David A. Johnson, CGA, CFE, CIRP MB
Paul M. Casey, CACIRP, CIRP ON
Gilles Robillard, CA, CIRP QC
Pierre Lemieux, CIRP QC
Ann C. Poirier, CACIRP, CIRP NB
Leanne Elizabeth Salyzyn, B.Comm, CIRP NS
Ian Penney, CACIRP, CIRP NL ° Professor Gail Fayerman, CA, MBA QC
° Hon. Yoine Goldstein, BA, BCL (Hons.), Ph.D. QC
COMMUNICATIONS
*Kevin Brennan, CACIRP, CIRP BC
Debora Kwasnicky, CACIRP, CIRP BC Norman H. Kondo, BA, LL.B., CIRP (Hon.) ON
Natalie Faubert, CIRP QC
Guylaine Houle, BCL, FCIRP QC
EDITORIAL ADVISORY BOARD
* Larry Prentice, FCA, CACIRP, FCIRP BC Mary I. A. Buttery BC
David M. Bromwich, CIRP AB
Prof. Jassmine Girgis AB Derek Hynes ON
Norman H. Kondo, BA, LL.B., CIRP (Hon.) ON
Sanjeev P. R. Mitra ON Chris Usas ON
Martin P. Rosenthal, CA, CIRP QC
CONSUMER STANDARDS
* Guylaine Houle, BCL, FCIRP QC
Colleen Craig, CACIRP, CIRP BC
André P. Bolduc, CACIRP, CIRP ON
Ann C. Poirier, CACIRP, CIRP NB
Leanne Elizabeth Salyzyn, B.Comm, CIRP NS
CONTINUING EDUCATION – FORUM (2010)
* Joseph Healey, CA, CIRP MB Robert Charles Hunt, CA, CIRP NS
Doug Chivers, B.Sc., CA, CIRP BC
Vanessa Grant, CIRP AB
Jennifer Kelly, CIRP SK
Jillian Taylor-Mancusi, CIRP MB
Joseph Mathew, B.Comm., CIRP ON Michelle Pickett, CFA, CIRP ON
Patrick Poupart, CIRP QC
Ann C. Poirier, CACIRP, CIRP NB
CONTINUING EDUCATION – COMMERCIAL (2010)
* Mitchell Vininsky, MBA, CIRP ON Gregory Prince, CA, CIRP ON
Brian M. Denega, CACIRP, CIRP ON
Susan M. Grundy ON
CONTINUING EDUCATION – COMMERCIAL (2010)
(continued)
Huey Lee, MBA, CMA, CIRP BC
Todd Maxwell Martin, CACIRP, CIRP ON
Jennifer Stam ON
CORPORATE PRACTICE
* Jonathan Krieger, CACIRP, CIRP ON
* John McKenna, ACA, CACIRP, CIRP ON
Peter David Gibson, CA, CIRP BC
David J. Boddy, CACIRP, CIRP ON
Mike Dean, CACIRP, CIRP ON
Eugene P. Migus, CACIRP, CIRP ON Gilles Robillard, CA, CIRP QC
°Hon. Yoine Goldstein, BA, BCL (Hons.), Ph.D. QC
Jean Gagnon, CA, CIRP QC Philip Manel, CA, CPA, CFE, CIRP QC
CIRP QUALIFICATION PROGRAM (CQP)
* Jean-Daniel Breton, CA, CIRP QC
Guy Odhams, CACIRP, CIRP AB
Adam Fisher, CA, CIRP ON
Jorden Sleeth, CA, CIRP ON ° Professor Gail Fayerman, CA, MBA QC
David A. Howe, FCA, CMA, CACIRP, CIRP NL
• Henri Massüe-Monat, OSB Liaison ON
COURSE MATERIAL REVIEW
* Brenda Wood, CIRP NS
Jean-Daniel Breton, CA, CIRP QC Kelly Chow, CIRP BC
Matthew Lem, CIRP ON
Gloria Breen, CIRP ON
Guy Odhams, CACIRP, CIRP AB
DISCIPLINE
* Peter D. Wedlake, LL.B., FCIRP NS
Uwe Manski, FCA, CACIRP, FCIRP ON
Victor P. Kroeger, CA•CIRP, CIRP AB
Bruce Hudson, CACIRP, CIRP AB
George B. Lomas, FCA, CA•CIRP, FCIRP AB
Tim Ludwig, CACIRP, CIRP AB
John Bottom, CA•CIRP, CIRP BC
Lloyd W. Murphy, CACIRP, CIRP BC
Robert J. Deniset, CACIRP, CIRP MB
David A. Johnson, CGA, CFE, CIRP MB Allan D. Marshall, B.B.A., CIRP NB
Richard S. Janes, CIRP NL
Robert A. Cordy, CIRP NS Mathew M. Harris, FCA, CA•CIRP, CIRP NS
James A. Kirby, CA, CIRP NS
Harold Brief, FCA, CACIRP, CIRP ON
Keith W. Caverly, CACIRP, CIRP ON
Frank C. Miller, CACIRP, CIRP ON
Carl M. Ritchie, CCCE, CFE, CIRP (ret.) ON
Ira Smith, MBA, CACIRP, CIRP ON
Kenneth C. Stonley, CACIRP, CIRP ON
Bryan A. Tannenbaum, FCA, CACIRP, FCIRP ON Gaetano Di Guglielmo, CA, CIRP QC
Guylaine Houle, BCL, FCIRP QC
John J. Swidler, FCA, FCIRP QC
EXECUTIVE COMMITTEE
* Kevin Brennan, CACIRP, CIRP BC Guylaine Houle, BCL, FCIRP QC
A. John Page, FCA, CACIRP, CIRP ON
David A. Howe, FCA, CMA, CACIRP, CIRP NL Norman H. Kondo, BA, LL.B., CIRP (Hon.) ON
Page 9
FINANCE
* Paul M. Casey, CACIRP, CIRP ON
A. John Page, FCA, CACIRP, CIRP ON Jorden Sleeth, CA, CIRP ON
HONOURS AND AWARDS NOMINATING
* George B. Lomas, FCA, CACIRP, FCIRP AB
Larry W. Prentice, FCA, CACIRP, FCIRP BC
Donna L. Collins, BA, B.Comm. (Hons.), FCIRP MB Norman H. Kondo, BA, LL.B., CIRP (Hon.) ON
C. Garth MacGirr, FCA ON
Gilles Campeau, CA, FCIRP (ret.) QC J. Alan MacKinnon, FCA, CA•CIRP, FCIRP NL
Ian Penney, CACIRP, CIRP NL
INTERVENTION COMMITTEE
* Michael T. Cheevers, CACIRP, CBV, CFE, CIRP BC
Christopher P. Galea, CFE, CACIRP, CIRP ON Philippe Bélanger QC
°Hon. Yoine Goldstein, BA, BCL (Hons.), Ph.D. QC
Paul G. Goodman, FCA, CACIRP, FCIRP NS
NOMINATING
* Kevin Brennan, CACIRP, CIRP BC
Alan H. Spergel, B.Comm., CACIRP, CFE, CIRP ON
Larry Prentice, FCA, CACIRP, FCIRP BC Norman H. Kondo, BA, LL.B., CIRP (Hon.) ON
Mark Stephen Rosen, BA, LL.B., FCIRP NS
David A. Howe, FCA, CMA, CACIRP, CIRP NL
PROFESSIONAL CONDUCT
* Angela Karen Pollard, CMA, CFE, FCIRP ON
Russell D. Law, CACIRP, CIRP BC
Michelle Grant, CIRP BC
Richard E. Edwards, CACIRP, CIRP AB E. Dean Burlingham, CA, MBA SK
David A. Johnson, CGA, CFE, CIRP MB
Jocelyne D’Astous, CA, CIRP QC
Robert Dalton Johnson, CA, CIRP NB
Darryl D. Haley, CA, CIRP NS
Gregory Gosse, CMA, CIRP NL
* Chair
• Office of the Superintendent of Bankruptcy
° Outside Board member Board of Directors Liaison
CAIRP APPOINTMENTS TO OTHER
ORGANIZATIONS
William Alan Courage, CACIRP, FCIRP
INSOL International, Board of Directors, Finance Committee
and Small Practice Issues Committee
Paul van Eyk, B.Comm, DIFA, CA•CIRP, CIRP INSOL International, Younger Members Committee
INSOL Fellowship Alumni Committee
Pam Boparai, CACIRP, CIRP
INSOL International, Younger Members Committee
Robert O. Sanderson, FCA, CA•CIRP, FCIRP
INSOL International, Past Presidents Advisory Committee
(Chair)
Kevin Brennan, CACIRP, CIRP
Technical Co-Chair INSOL Miami
Page 10
ANNUAL CONFERENCE – 2010
The 2010 Annual Conference was held at the
Delta Grand Okanagan Resort in beautiful
Kelowna, British Columbia from August 18 to
21, 2010. The Annual Conference Committee
(“ACC”) with the support of CAIRP’s Board of
Directors again extended an invitation to non-
members and once again there was a good
turnout.
The conference began with keynote speaker,
Michael “Pinball” Clemons. Pinball was a
success even with our younger participants who
received autographs. The technical sessions
began the next morning with panels composed of
members, judges, lawyers, registrars, bankers,
and government officials. All of the sessions
were well received by our guests and members.
As in past years, the 2010 conference included
programs for children and teens. The ACC made
a special effort this year to organize events for
our younger attendees. Two groups were set up,
children and teens, and activities in and outside
the hotel were scheduled. There was more effort
put into the organization for these activities and
feedback was that the ACC’s efforts paid off.
The weatherman was very cooperative and the
afternoon and evening events allowed for fun,
networking and renewing acquaintances. The
social activities included dinner and wine tasting
at Summerhill Winery, golf, bike riding, wine
tours and all events were well attended.
The total number of attendees was 287; 200 were
made up of CAIRP members and non-members
and 29 from the children/teen program.
Our sponsorship friends were very generous this
year and included 9 exhibitors. We thank them
for their continued support – (Gold) Asset Inc.,
DRN Commerce Inc., Firstbrook Cassie
Anderson Inc., Pacific and Western Bank of
Canada, Promeric Technologies, and Überbase;
(Silver) Carswell Thomson Publishing, Century
Services Inc., Media Edge; The Children and
Teen Program was graciously sponsored by
Boale, Wood and Company Ltd and C.E Craig
and Associates Inc. Also a special thanks to
Pitblado LLP for providing the golf prizes.
We had 15 sponsors from the professional firms
(law firms and insolvency practice) – (Premier)
Meyers Norris Penny Ltd (MNP), Fraser Milner
Casgrain LLP; (Elite) Deloitte & Touche Inc.,
Ernst & Young Inc., KPMG Inc.; (Select)
Abakan & Associates Inc., BCAIRP, BDO
Canada Limited, Smythe Ratcliffe Inc.,
PricewaterhouseCoopers Inc., Mackay & Co.
Ltd., Grant Thornton Limited, Lang Michener
LLP, Gertler & Coven, and Gardiner Roberts
LLP.
I wish to thank the members of the 2010 Annual
Conference Committee for their dedication to
this event - they are the people who helped make
this event a success - Stephen Boale, Michael
Wright, Stewart Rennie and Colleen Craig
(Board Liaison) and a special thank you to the
Association staff Joshua Katchen and Sandra
Porter for all their tireless efforts to the details
to make these conferences happen.
Yvonne Sutton, CIRP
Chartered Insolvency and Restructuring
Professional
CONSUMER STANDARDS
The Consumer Standards Committee was
mandated by the Board of Director in February
2010 to issue consumer standards, beginning
with a review of counselling in insolvency
matters. In October 2010, after months of
research and drafting, the Consumer Standards
Committee issued its first three consumer
standards. These include Counselling in
Insolvency matters, Proposals under Division II,
Part III of the Act and Preparation and
verification of the Statement of Affairs.
The Standards were subjected to a two-phase
review process. The first phase, to which a
substantial number of the members participated,
permitted the Committee to proceed to a review
of the Standards and provide the membership
with higher quality standards. Following the
second phase review all three Consumer
Standards were successfully approved, ratified
Page 11
and confirmed by a large majority of the
membership on April 5th
2011.
The members of the Consumer Standards
Committee would like to convey their gratitude
to all the members who participated in the
process and ensured the successful enactment of
the first three Consumer Standards of the
Association.
The members of the Consumer Standards
Committee were, André Bolduc, Colleen Craig,
Ann Poirier and Leanne Salyzyn.
Guylaine Houle, BCL, FCIRP
Fellow Chartered Insolvency and Restructuring
Professional
CONTINUING EDUCATION - FORUM
The Continuing Education (Forum – 2010)
Committee is responsible for planning and
delivering the series of spring CAIRP annual
Forums, held on an annual basis in Halifax,
Montreal, Toronto, Winnipeg,
Calgary/Edmonton (alternating years), and
Vancouver. The Forums provide a valuable
professional development opportunity for
CAIRP members practising principally in mid-
market commercial and consumer insolvency
practices – approximately 45% of CAIRP
members attended the Forum.
The Committee focuses on delivering relevant
and engaging content to CAIRP members that
reflects the diversity in members’ practices,
addresses the key issues faced by members, and
provides a valuable exchange of best practices
and evolving trends.
The Committee is comprised of dedicated
CAIRP members that invest a significant amount
of time and effort to present a quality program.
The committee members reflect the practice
diversity of CAIRP membership across the
country: Vice-Chair Rob Hunt, Green Hunt
Wedlake Inc. (NS); Doug Chivers, The Bowra
Group Inc. (BC); Vanessa Grant, Deloitte &
Touche Inc. (AB); Jennifer Kelly, Burlingham
Associates Inc. (SK); Jillian Taylor-Mancusi,
L.C. Taylor & Co. Ltd. (MB); Joe Mathew,
Mathew & Associates Ltd. (ON); Michelle
Pickett, PricewaterhouseCoopers Inc. (ON); and
Patrick Poupart, Poupart Syndic Inc. (QC).
The Committee was greatly assisted throughout
by Board Liaison Anne Poirier of A.C. Poirier
& Associates (NB), and we sincerely appreciate
Anne’s contributions to the Committee. I am
grateful for the hard work and effort put forward
by these committee members, and I would
encourage you to reach out to these members and
thank them for their efforts.
The 2010 Forums added flexibility to the
program for each location, with the introduction
of a “Regional Hot Topics” session, allowing
local committee representatives to tailor the
session to include topics of particular interest to
the region that may not necessarily have had
national appeal. Topics included landlord issues,
conflicts in matrimonial versus property law,
restructuring closely held businesses, lien rights,
the Earl Jones file, and various other subtopics.
The Committee was also honoured to have had
an opportunity for Dr. Janis Sarra to present a
keynote address at each session on the evolution
of the Canadian insolvency framework. The
level of interest in the topics was reflected in an
increase in the number of registered attendees at
the 2010 Forum.
In addition to these new sessions, the Forum
included the ever-popular commercial and
consumer technical legal insolvency updates, an
update from a CAIRP Executive Committee
member, the Superintendent of Bankruptcy, and
a lively panel discussion on the amendments to
the BIA dealing with personal insolvency issues.
In addition to the volunteer efforts of the
committee members, the Forums benefit from
the dedication and preparation of an outstanding
panel of speakers and those preparing and/or
presenting papers. On behalf of all CAIRP
members, I want to express my profound thanks
and gratitude to all of our session speakers and
panel members. Without the input and
contribution of our speakers, our Forums simply
could not take place.
I encourage CAIRP members to reach out to
committee representatives to make your views
known on future topics of interest, or to
volunteer to speak or present at a Forum – we are
always seeking new volunteers! It is this type of
feedback which is immensely valuable, and
allows the Committee to present a program that
is relevant and useful to CAIRP and its
members. While each of us may have a different
view on what may be an interesting topic, it is
Page 12
critical to provide this feedback in order to keep
the Forums relevant and engaging.
On behalf of the Committee, I also want to thank
the CAIRP staff for their hard work and
dedication to making the Forums a success,
particularly the efforts of Norm Kondo, Sandra
Porter, and Joshua Katchen. I wish great
success to incoming Chair, Rob Hunt, and look
forward to seeing you at future Forums.
Joseph Healey, CA, CIRP
Chartered Insolvency and Restructuring
Professional
CONTINUING EDUCATION - COMMERCIAL
The 6th
annual session on Commercial
Insolvency and Restructuring was held on April
20, 2010 at the Arcadian Court in Toronto. Five
panels spoke to over 140 attendees, including
CIRPs, lawyers, registrars, lenders and
government officials. Both attendance and
sponsorship increased significantly over 2009,
reflecting the continued draw of this major and
successful event.
Mitch Vininsky of RSM Richter Inc. chaired the
planning committee, with assistance from:
Gregory Prince (PricewaterhouseCoopers Inc.);
Todd Martin (KPMG Inc.); Brian Denega
(Ernst & Young Inc.); Huey Lee (Deloitte &
Touche Inc.) and Jennifer Stam (Ogilvy Renault
LLP). CAIRP Board Liaison Sue Grundy
(Blake, Cassels & Graydon LLP) was a valuable
resource to the Committee in shaping the event.
Michael Gregory, Senior Economist and
Managing Director, BMO Capital Markets, led
the first session with a presentation on economic
trends and predictions titled “Economy Revs
Up”. Michael provided commentary on the
health of Canada’s economy compared with
other G8 nations, emergence from the recession
and predictions for GDP growth.
Huey Lee (Deloitte & Touche Inc.) moderated
the next panel dealing with current events, an
audience favourite. Leading insolvency
professionals on the panel included Brent
Beekenkamp (Ernst & Young Inc.), Jennifer
Stam (Ogilvy Renault LLP), Marc Wasserman
(Osler Hoskin & Harcourt LLP) and Brendan
O’Neill (Goodmans LLP). Issues ranging from
the implications of BIA and CCAA amendments
introduced in September, 2009, cross border
insolvencies, “pre packs” and the latest Canadian
and U.S. case law were discussed and debated.
Todd Martin moderated a panel comprised of
Jameel Sethi (Bank of Nova Scotia), Sam Fleiser
(Callidus Capital), Ted Hopkinson (TD
Securities) and Bill Kennedy (National Bank of
Canada). A cross-section of lending
representatives and credit specialists provided
their perspectives on the fall-out of the recession
and tightening of credit markets.
Brent Belzberg, Senior Managing Partner at
Torquest Partners gave a keynote presentation on
the changing landscape in the private equity
world. Among other things he emphasized the
need to focus on operational, as well as financial,
expertise in order to gain market share in this
industry and he suggested that the same would
apply for restructuring advisors.
The afternoon session was led by Greg Prince,
who engaged Jim Grout (Thornton Grout
Finnigan LLP), Mario Faieta (Ministry of
Environment) and Robert Fishlock (Blake,
Cassels & Graydon LLP) on the daunting yet
real issues when trustees/receivers accept
mandates with environmentally sensitive
property and other assets. The panel provided
numerous practical suggestions to attendees,
such as being pro-active with regulatory bodies
and clearly documenting all activities when
faced with potential contaminants.
Wrapping up the event was an interesting and
energetic discussion of labour’s evolving
influence in restructurings moderated by
Jonathan Krieger (Grant Thornton LLP).
Decades of experience in this field were shared
by Gale Rubenstein (Goodmans LLP), Ken
Delaney (United Steelworks) and Ken Rosenberg
(Paliare Roland Rosenberg Rothstein LLP).
Panelists addressed issues related to the
influence of unions in a restructuring, WEPPA,
severance and termination priority and proposed
legislative amendments.
The sponsorship of many firms contributed to
the conference’s financial success; pre-eminent
restructuring firms including Aird & Berlis LLP,
Blake Cassels & Graydon LLP, Davies Ward
Phillips & Vineberg LLP, Fraser Milner
Casgrain LLP, Gowling Lafleur Henderson LLP,
Ogilvy Renault LLP, Osler, Hoskin & Harcourt
LLP and Thornton Grout Finnigan LLP provided
Page 13
generous support to the event along with Deloitte
& Touche Inc., Ernst & Young Inc., Grant
Thornton Limited, KPMG Inc.,
PricewaterhouseCoopers Inc. and RSM Richter
Inc.
I wish to thank all the members of the
Committee for their hard work and dedication to
making this a very successful program.
Mitchell Vininsky, MBA, CIRP
Chartered Insolvency and Restructuring
Professional
EDITORIAL ADVISORY BOARD
The Editorial Advisory Board is responsible for
generating the technical and editorial content of
CAIRP’s official magazine, Rebuilding Success.
Since its beginnings in 2002, Rebuilding Success
has steadily evolved into a substantial
publication of articles addressing a broad
spectrum of the situations that impact
stakeholders in the insolvency and restructuring
community across Canada. In addition to all
members of CAIRP, the magazine is distributed
to approximately 2,800 lawyers, lenders,
regulators and academics who participate in
Canada’s insolvency and restructuring system.
The magazine is published twice each year. This
year’s issues addressed matters as varied as the
role of labour in restructuring proceedings,
director and officer insurance concerns, the use
of the Canada Business Corporations Act as
restructuring legislation, and the role of credit
card issuers in today’s consumer debt landscape.
Other articles provided useful commentaries on
recent Court decisions and other practice-related
issues, as well as profiles of CIRPs active in their
communities. The Spring 2011 issue profiled
Madam Justice Barbara Romaine of the Alberta
Court of Queen’s Bench, discussing her role in
many of Western Canada’s most important
restructuring proceedings.
The Editorial Advisory Board comprises various
perspectives on insolvency and restructuring
from across the country: CAIRP members David
Bromwich (Bromwich & Smith Inc.) and
Martin Rosenthal (Ernst & Young Inc.),
insolvency lawyers Mary Buttery (Davis LLP)
and Sanjeev Mitra (Aird & Berlis LLP), bankers
Derek Hynes (Bank of Montreal) and Chris Usas
(Bank of Nova Scotia), and Prof. Jassmine
Girgis of the University of Calgary’s Faculty of
Law. The Board also benefited from the
contributions of Norm Kondo and the support of
Sheldon Gordon of CAIRP’s office in Toronto.
I would like to extend my sincere appreciation to
all of these individuals for their contributions to
the magazines produced this year.
Larry Prentice, FCA, FCIRP
Fellow Chartered Insolvency and Restructuring
Professional
FINANCE
The Finance Committee generally meets
monthly with CAIRP management and its
external bookkeepers, Numeric Answers
Limited, to review and compare interim results
to budget, to discuss the effectiveness of and
improvements to existing accounting controls,
financial policies and procedures. In addition,
the Finance Committee was responsible for
preparing the Association’s annual budget for
approval by the Board of Directors and assisted
in the finalization of the annual financial
statements for the year ended March 31, 2011.
This year has been particularly active with
respect to the integration of the accounts and
operations of the CIRP Qualification Program
(CQP) effective September 1, 2010.
My sincere thanks to the tireless members of the
Finance Committee: John Page, Jorden Sleeth,
Norm Kondo, Frances Zomer (Numeric
Answers) and staff.
Paul Casey, CA•CIRP, CIRP
Chartered Insolvency and Restructuring
Professional
Page 14
HONOURS AND AWARDS NOMINATING
The Committee met several times during the year
to consider the many nominations for the various
awards granted by CAIRP. The Committee spent
a great deal of its time further clarifying the
criteria and eligibility for the various awards.
These awards include the Fellowship (the
Association’s highest award), Keith G. Collins
Memorial Award and the Outstanding Volunteer
Award.
I would encourage all members to review the
particular criteria of each award on the CAIRP
website. During the year the Association granted
the following awards.
Fellowship:
Doug Collins – Winnipeg
Angela Pollard – Toronto
Alan Spergel – Toronto
Keith G. Collins:
Rob Deniset – Winnipeg
Outstanding Volunteer:
Jean-Daniel Breton – Montreal
Geoff Orrell – Vancouver
Uwe Manski – Toronto
The Association depends greatly on volunteers
and these awards recognize and are a testament
to the great effort put in by many who help make
CAIRP a success.
I would continue to encourage all members to
review the award criteria and consider members
and non-members who have given to the
Association and who deserve to be recognized
for their efforts. “Please keep the nominations
coming”.
In conclusion I would like to thank the members
of the Committee – Alan McKinnon – St.
John’s, Giles Campeau – Montreal, Garth
MacGirr – Toronto, Donna Collins –
Winnipeg, Larry Prentice – Vancouver and Ian
Penney – St. John’s, Board Liaison. A special
thank you to the administrative team at the
Association for all of its assistance during the
past year.
George Lomas, FCA, CA•CIRP, FCIRP
Fellow Chartered Insolvency and Restructuring
Professional
INTERVENTION
This year has been a busier one for the
Intervention Committee compared to recent
years. The issues raised, the committee’s
position and results are summarized below.
Last year we reported that we had sought to
intervene in a Quebec case involving the
annulment of an assignment in bankruptcy
brought on by the student loans administration.
We were denied status as an intervenor in the
case by the Court of Appeal on the basis that no
new issues would be raised by CAIRP that were
not or could not be raised by the trustee.
An intervention request was received from a
member in a case involving CRA and the
payment of dividends arising from wage claims.
CRA wanted all “normal” payroll steps to be
taken including making deductions and issuing
T4s. Rather than intervene, CAIRP assisted in
appealing the assessment. We expect the appeal
to be successful, but if it is not the Committee
will recommend intervention.
Late in 2010 CAIRP agreed to intervene in an
Alberta case that involved the form of
information documents filed by insolvency
practitioners in court. Should they be reports,
the implication being that the author is usually
not subject to cross examination, or should they
be affidavits, thereby making the author subject
to cross examination, requiring a greater level of
personal knowledge and limiting opinion
evidence? Ultimately an agreement was reached
between the parties in the action meaning that no
intervention was necessary. Another similar
request was received involving a report filed by a
trustee who wished to use a report as evidence.
However, the circumstances were such that the
trustee could be viewed as a litigant and as such
the situation was likely unique and did not
jeopardize the general principle that trustees,
receivers and monitors should provide
information to the court in the form of reports as
opposed to affidavits.
In April 2011 the Ontario Court of Appeal issued
a decision in the “Indalex” case. This decision
impacts the priority of DIP charges in CCAA
files and could jeopardize the availability of DIP
financing in certain circumstances. The Court of
Appeal held that, on the wind-up of a pension
Page 15
plan, the Pension Benefits Act (Ontario) creates a
deemed trust over the employer’s assets for the
amount necessary to fund the deficiency that
arises on the wind-up of a defined benefit
pension plan, effectively taking them out of the
asset pool available to DIP lenders. CAIRP has
agreed to intervene, if permitted, in both the
application for leave to appeal to the Supreme
Court of Canada and the appeal itself, if leave is
granted.
The mandate of the Committee is to receive and
review requests from members for intervention
by CAIRP, in matters that meet certain criteria.
The intervention may take the form of financial
or legal assistance, although the preference of
CAIRP is to intervene directly, for reasons of
visibility, image and to preserve some neutrality
and detachment from the issues under debate.
The major criteria are as follows:
Is the issue of national importance or
implication?
Does the issue impact upon established
insolvency practice?
Does the issue affect the objectives of
Federal insolvency legislation?
After discussing the issue and applying the
criteria, the Committee recommends to the
Executive Committee a course of action
regarding involvement or non-involvement in the
case under review.
The reasons for declining intervention requests
depend on the facts in each case, but there are
some common themes. An issue or case in
which there is any potential for criticism of a
trustee is likely to be declined. Some issues
warrant intervention but form only part of a court
decision that would be unlikely to change even if
the particular issue were reversed. What we
have commonly seen are policy issues involving
the OSB and CRA that may be better resolved
through discussion rather than litigation, given
our ongoing relationships with these parties and
their ability to impact legislation.
The Committee comprises members who have
significant experience and expertise to call upon
in reviewing requests. We are fortunate to have
members who are happy to give their time. I
would like to thank them all for their
contributions. The Committee could not
function without Norm Kondo, who, as usual, is
very diligent in bringing forward the issues and
coordinating all the Committee's activities.
Thank you Norm.
Michael T. Cheevers, CA•CIRP, CBV, CFE,
CIRP
Chartered Insolvency and Restructuring
Professional
CIRP QUALIFICATION PROGRAM
It has been a busy first year for the CQP
Committee. The Committee was formed in June
2010 to take over the responsibility for the
education program leading to the CIRP
certification, which until then was jointly
administered by CAIRP and the Office of the
Superintendent of Bankruptcy (“OSB”) through
the National Insolvency Qualification Program
(“NIQP”). The Memorandum of Understanding,
executed with the OSB in October 2009,
provides (inter alia) that CAIRP becomes solely
responsible for the qualification program, as of
September 2010.
The Committee is responsible for governance
and other matters specific to the effective
implementation and maintenance of the CIRP
Qualification Program (“CQP”), including
aligning the program to achieve the CQP’s
mission statement:
“To maintain an adaptable and
relevant education and qualification
program that affords a flexible
learning structure to talented
individuals seeking to provide
professional insolvency and
restructuring services.”
The significant activities of the Committee to
date are summarized below.
The Committee has effectively taken over
the administration of the qualification
program as of September 2010 and
developed transition rules that apply while
the CQP is being developed;
The Committee took over the
administration of the 2010 National
Insolvency Examination (“NIE”), which
was under development in September 2010.
The examination was held in late October
2010. In all, 36 candidates challenged this
Page 16
examination and 26, or 72.2% of the
candidates, were successful. The Committee
appointed an NIE Examination Board to
develop and manage the National
Insolvency Examination that will be held in
the Fall of 2011.
The Committee appointed and supervised
Examination Boards, to prepare and manage
the course level examinations that will be
held in early June 2011.
The Committee developed a competency
map, set up a task force to review and refine
the competency map, and commissioned a
survey of members to validate the
competency map. These projects allowed
the CQP to develop a detailed profile of the
competencies expected to be demonstrated
by a newly qualified CIRP. This detailed
competency profile is being used to develop
both the course material and a competency-
based examination process and will prove
helpful in assisting candidates to assess
their own progress.
The Committee is working closely with the
Course Material Review Committee in
designing and developing course material,
segregated into 3 levels, an introductory
course, a core knowledge course and an
applied knowledge course. The course is
still under development, and the committees
are working arduously to make sure that
new material is available for the candidates
starting around September 2011.
The Committee has set up an Intermediate
Exam Board to design and develop a
competency based examination for the core
knowledge course level, based on a multiple
choice exam format. This examination is
still under development and is expected to
be ready by the Fall of 2011.
We are all deeply indebted to the members of the
Committee and CAIRP staff who have worked
selflessly to improve our qualification program,
which is a cornerstone of our profession, namely:
Gail Fayerman (CAIRP’s outside director),
David Howe (CAIRP Board of Directors’
Liaison), Henri Massüe-Monat (OSB Liaison),
Adam Fisher, Guy Odhams, Jorden Sleeth,
Bea Casey (CAIRP’s Director of Education
Programs), Isabelle Gauthier (CQP Registrar)
and Joy Fraser (CQP Administrator).
I want to thank all of the members of the
competency task forces, Examination Boards,
Course Material Review Committee, members
who responded to the survey, and all other
members who lent their support throughout this
process, and who unfortunately cannot be listed
here. Be sure that your contribution is known,
acknowledged and much appreciated.
While a lot has been accomplished in the first
year of the CQP Committee, the work that is still
ahead is an even greater task, as we continue to
develop the CQP into a top quality product and
move towards a competency based examination
process for our aspiring members.
Jean-Daniel Breton, CA, CIRP
Chartered Insolvency and Restructuring
Professional
COURSE MATERIAL REVIEW
It has been an extremely busy and fruitful year
for the Course Material Review Committee
(CMRC). With a new Memorandum of
Understanding between the OSB and CAIRP the
task of educating potential new CIRP’s was
brought completely in house. The CIRP
Qualification Program (CQP) was born. The
CMRC’s mandate of continuously reviewing the
course material to keep it relevant took a sudden
backseat to a more in depth restructuring and
change of the course material. The CMRC has
initiated a process to reorganize, downsize where
possible and update the course material, with the
following main goals:
To change the training of CIRP candidates
to a competency based approach.
To potentially reduce the amount of time a
candidate will take to complete the program
before challenging the CNIE (CQP
National Insolvency Exam).
The Committee’s first order of business was to
participate in preparing a competency map. All
testing and future course material adjustments
will be based on the competency map (or future
versions, thereof).
The Committee members participated in a
competency summit, together with participants
from all different backgrounds and practices. The
goal of the summit was to have feedback on the
Page 17
draft competency map and to finalize it.
Participants spent a lot of time combing over the
various competencies and ensuring that all
aspects of a newly licensed CIRP’s training were
covered.
Upon completion of the summit a survey was
drafted and provided to all members of the
CAIRP via email. The survey was designed to
ensure that the majority of the responding
membership was in agreement in general to the
approach of the new program and specifically to
the competencies agreed upon at the summit.
In conjunction with designing a competency map
several task forces were formed. Some of the
goals of the various task forces are to:
Review, amend and update the NIQP
course assignments to aid those candidates
in the transition year;
Reorganize the presentation of the course
material:
Ensure that the course material is relevant
and up to date;
Develop new content. For example,
learning case studies have been added to
the Applied Knowledge course to assist
candidates in the application of the Core
Knowledge course content;
Review current assignments and develop
new assignments for use in the CQP.
The CQP will consist of three courses:
Introduction, Core Knowledge, and Applied
Knowledge.
The CMRC is currently busy ensuring the course
materials will be ready for the launch of the CQP
in September 2011.
Dr. Seuss writes “Unless someone like you cares
an awful lot, nothing is going to get better. It’s
not.” I wish to thank all of the various volunteers
both on the CMRC and all its various task forces
who have tirelessly volunteered their time and
energy to this important initiative. You have all
cared an awful lot!
Brenda L. Wood, CIRP
Chartered Insolvency and Restructuring
Professional
PROFESSIONAL CONDUCT
The Professional Conduct Committee (“PCC”)
continues to focus on dealing with new
complaints in a timely fashion. During this
fiscal year the PCC has closed a number of
outstanding investigations. The PCC continues
to focus on ensuring that a fair investigation is
completed, the investigators discuss the
complaint with all parties and report to the PCC
with all relevant details. The PCC spends a
considerable amount of time reviewing in detail
the reports of the investigators. The PCC
provides to all parties a detailed summary of its
findings and provides comprehensive decisions
and reasons. This ensures a transparent approach
for all parties involved.
The PCC meets on a regular basis. The PCC
follows a meeting schedule to ensure that all
members can allocate sufficient time to the
meeting agenda, pre-meeting preparation and
review of the material being discussed.
The PCC relies upon volunteers to investigate
the complaints filed, prepare reports and meet
with the complainants and members. These
volunteers have the unenvied task of gathering
the facts surrounding a complaint as well as
meeting with the parties involved.
The investigators have advised the PCC that they
enjoy the challenge involved in gathering the
information and preparing a report for the PCC.
In addition, it provides insight into the type of
complaints and issues that give rise to
complaints. All of our members are indebted to
these volunteers because without the
investigators, we would be unable to fulfill our
mandate and therefore unable to demonstrate our
ability to self-regulate in a fair and equitable
fashion.
The number of complaints against our members
continued to increase year to year. The PCC
continues to request the services of volunteers to
investigate the complaints and as always is in
need of new volunteers. The PCC continues to
complete the investigations and report to all of
the parties involved, as timely as possible, given
the time constraints of its volunteers including
the committee members.
The PCC continues to deal with compliance
issues in reference to Directive 30R on
advertising. The number of complaints has
dropped significantly and the PCC is very
pleased with the results and the response from
the majority of our members who have changed
Page 18
their advertising in order to comply with the
Directive. We all must remind ourselves that it
is very important that advertising is not
misleading to the public and the Committee
thanks those members who have co-operated
with the PCC.
I would like to thank the Committee members
for all of their hard work during the year. The
Committee members are Russell Law (Vice-
Chair), E. Dean Burlingham, Jocelyne
D’Astous, Richard Edwards, Gregory Gosse,
Michelle Grant, Darryl Haley, David Johnson
(Board Liaison) and Robert Dalton Johnson.
Also without the support provided by Mirela
Bolentiru and Norm Kondo the PCC would not
be able to function. Therefore we all should
thank them for their dedicated service to the
Committee.
As the current Chair of the PCC it has been my
pleasure to assist our Association and I would
like to thank those members who have
volunteered during this year to investigate
complaints.
Angela K. Pollard, CMA, CFE, FCIRP
Fellow Chartered Insolvency and Restructuring
Professional
Page 19
MEMBERSHIP:
AS OF MARCH 31 2011 2010 2009 2008 2007
GENERAL 900 882 868 872 883
ARTICLING 399 405 365 322 357
CORPORATE 26 27 28 28 28
LIFE 157 161 160 149 133
INACTIVE1 11 20 24 22 19
______________________
1 General members who have left insolvency practice may be deemed to be inactive. If
they have not reinstated themselves within 5 years, their membership will be
terminated.
Page 20
SECRETARY TREASURER’S REPORT
I am pleased to report that the unrestricted assets of your Association have increased by $374,257 to $794,815
during the year ended March 31, 2011. This is a very positive development in helping ensure that CAIRP stays
healthy and well able to support its many initiatives into the future. Based on our financial position we were able to
hold membership fees for the 2011/12 year at the prior year's level.
Integrating the Education Program into CAIRP
As Kevin Brennan, Chair, has reported, effective September 1, 2010 CAIRP repatriated the CIRP Qualification
Program (the "CQP") and the Insolvency Counsellor's Qualification Course (the "ICQC"). The 2010/11 Financial
Statements incorporate seven months of the CQP and the ICQC within CAIRP. As a result the statements are not
fully comparable to those of prior years. Having the CQP and the ICQC in house is a positive move. However
changes of this nature need to be monitored to ensure that the course and examination fees adequately cover the
financial burden associated with the new education program. For example new enrolments can be quite volatile but
the resources required to maintain the programs are not strongly correlated to candidate numbers. We believe
however that the streamlined CQP will make the profession more attractive to high calibre candidates and this will
over time lead to increased enrolments.
The CAIRP Finance Committee will monitor the education program enrolments, revenues and costs, in concert with
the CQP Committee, to ensure that CAIRP can continue to deliver an outstanding professional qualification program
for insolvency and restructuring professionals while at the same time maintaining CAIRP's strong financial position.
As part of the repatriation, CAIRP received from the National Insolvency Qualification Program ("NIQP") a net
cash balance of $367,981 effective September 1, 2010. In accordance with the Memorandum of Understanding with
the Superintendent of Bankruptcy that is referred to in the notes to the financial statements, this fund has to be
reinvested in the future development of the CQP and the ICQC. $173,283 of the fund was used in the year ended
March 31, 2011 in developing new courses and the balance is available for use in subsequent years.
Without these funds to draw on, the increase in CAIRP's unrestricted funds would have declined by the equivalent
amount. We anticipate using up all or almost all of the funds received from the NIQP over the next twelve months.
After that, we will have to support all the costs of maintaining and improving our education programs from
internally generated funds, i.e. through course, examination and program fees.
Monthly Finance Committee Meetings
During the year we continued to hold regular Finance Committee meetings at the CAIRP offices. At these meetings,
we have reviewed monthly statements, compared performance to budget and generally endeavoured to ensure that
the organization continues to operate in a fiscally sound and efficient manner. My thanks to Paul Casey, the Chair
of the Finance Committee, and the other members of the Committee for their stellar work in that regard. In particular
I would like to thank Numeric Answers Limited for their longstanding assistance in providing external bookkeeping
services to CAIRP and for their professionalism and dedication.
Our Reserves and Cash Balances
Cash and investment balances have increased significantly from last year to over $1,700,000, in part because of the
amalgamation of the NIQP bank balance with the funds of the Association. Approximately half of the cash and
investment balances at March 31, 2011 equate to deferred revenue (for example the prepayment of examination
fees) as well as the regular liabilities of the Association. Funds beyond our immediate cash needs are invested, either
in an immediately accessible interest bearing investment account or conservatively in longer term government
bonds.
As part of next year's strategic plan update we will be assessing the adequacy of our reserves. Do we have enough,
not enough or too much? For example, the Association needs to be able to carry out its responsibilities to educate
through CQP and ICQC. We need to maintain and update courses and examinations even if enrolments periodically
decline. We need to be able to deliver the services you, our members, continue to require. We also have to be ready
Page 21
to intervene in emerging issues. A reasonable reserve is essential to ensure that a healthy CAIRP is able to do these
things and fulfil the Mission Statement you will find at the beginning of this Annual Report.
A. John Page, FCA, CA•CIRP, CIRP
Chartered Insolvency and Restructuring Professional
Secretary-Treasurer
Hilborn Ellis Grant LLP Chartered Accountants
401 Bay Street, Suite 3100, P.O. Box 49, Toronto, Ontario, Canada M5H 2Y4 Phone: 4163641359 Fax: 4163649503 hilbornellisgrant.com 22
Independent Auditor’s Report
To the Members of
Canadian Association of Insolvency and Restructuring Professionals /
Association canadienne des professionnels de l'insolvabilité et de la réorganisation
We have audited the accompanying financial statements of Canadian Association of Insolvency and
Restructuring Professionals / Association canadienne des professionnels de l’insolvabilité et de la
réorganisation, which comprise the statement of financial position as at March 31, 2011, and the statement of
operations, statement of changes in net assets and statement of cash flows for the year then ended, and a summary
of significant accounting policies and other explanatory information.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance
with Canadian generally accepted accounting principles, and for such internal control as management determines
is necessary to enable the preparation of financial statements that are free from material misstatement, whether
due to fraud or error.
Auditor’s Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our
audit in accordance with Canadian generally accepted auditing standards. Those standards require that we comply
with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the
financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the
risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the
financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the
purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes
evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made
by management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit
opinion.
Opinion
In our opinion, the financial statements present fairly, in all material respects, the financial position of Canadian
Association of Insolvency and Restructuring Professionals / Association canadienne des professionnels de
l’insolvabilité et de la réorganisation as at March 31, 2011 and its financial performance and its cash flows for
the year then ended in accordance with Canadian generally accepted accounting principles.
Toronto, Ontario Chartered Accountants
June 21, 2011 Licensed Public Accountants
CANADIAN ASSOCIATION OF INSOLVENCY
AND RESTRUCTURING PROFESSIONALS /
ASSOCIATION CANADIENNE DES PROFESSIONNELS
DE L'INSOLVABILITÉ ET DE LA RÉORGANISATION
23
Hilborn Ellis Grant LLP
Statement of Financial Position
March 31 2011 2010
$ $
ASSETS
Current Assets
Cash and cash equivalents 1,125,273 255,350
Sundry receivables 25,256 14,284
Due from National Insolvency Qualification Program (note 5) - 68,890
Prepaid expenses 39,455 36,609
1,189,984 375,133
Investments (note 3) 589,930 555,378
Capital assets (note 4) 387,312 340,965
2,167,226 1,271,476
LIABILITIES
Current Liabilities
Accounts payable and accrued liabilities 264,358 199,713
Deferred revenue 308,795 90,304
Deferred CQP and ICQC recovery (note 5) 194,698 -
767,851 290,017
Lease inducements (note 6) 62,720 72,495
Retiring and transition allowance (note 7) 150,000 100,000
980,571 462,512
NET ASSETS
Invested in capital assets 341,840 288,406
Internally restricted (note 7) 50,000 100,000
Unrestricted 794,815 420,558
1,186,655 808,964
2,167,226 1,271,476
Approved on behalf of the Board:
Kevin Brennan, CA•CIRP, CIRP A. John Page, FCA, CA•CIRP, CIRP
Chartered Insolvency and Restructuring Professional Chartered Insolvency and Restructuring Professional
Chair Secretary - Treasurer
CANADIAN ASSOCIATION OF INSOLVENCY
AND RESTRUCTURING PROFESSIONALS /
ASSOCIATION CANADIENNE DES PROFESSIONNELS
DE L'INSOLVABILITÉ ET DE LA RÉORGANISATION
24
Hilborn Ellis Grant LLP
Statement of Operations
Year ended March 31 2011 2010
$ $
Revenues
Membership fees – annual 983,072 907,203
Annual conference fees and sponsorships 250,520 231,890
CIRP Qualification Program and other courses 640,158 47,849
Continuing education seminar fees and sponsorships 431,912 385,477
CQP and ICQC development cost recovery (note 5) 173,283 -
Web forum access fees and other 36,560 68,684
Investment income (note 8) 40,606 51,436
2,556,111 1,692,539
Expenses
Administration (schedule) 1,673,549 1,503,662
Recovery from National Insolvency Qualification Program (note 5) (127,726) (334,062)
1,545,823 1,169,600
Annual conference 179,924 194,750
Continuing education 185,876 247,882
CQP, ICQC and other courses 216,797 24,910
2,128,420 1,637,142
Excess of revenues over expenses
from operations before the following
427,691
55,397
Retiring and transition allowance (note 7) (50,000) (50,000)
Excess of revenues over expenses for year 377,691 5,397
CANADIAN ASSOCIATION OF INSOLVENCY
AND RESTRUCTURING PROFESSIONALS /
ASSOCIATION CANADIENNE DES PROFESSIONNELS
DE L'INSOLVABILITÉ ET DE LA RÉORGANISATION
25
Hilborn Ellis Grant LLP
Statement of Changes in Net Assets
Year ended March 31
Invested in
Capital Internally 2011 2010
Assets Restricted Unrestricted Total Total
$ $ $ $ $
(note 7)
Balance, beginning of year 288,406 100,000 420,558 808,964 803,567
Excess (deficiency) of
revenues over
expenses for year
(60,464)
-
438,155
377,691
5,397
Purchase of capital assets 113,898 - (113,898) - -
Internally imposed
restriction (note 7)
-
(50,000)
50,000
-
-
Balance, end of year 341,840 50,000 794,815 1,186,655 808,964
CANADIAN ASSOCIATION OF INSOLVENCY
AND RESTRUCTURING PROFESSIONALS /
ASSOCIATION CANADIENNE DES PROFESSIONNELS
DE L'INSOLVABILITÉ ET DE LA RÉORGANISATION
26
Hilborn Ellis Grant LLP
Statement of Cash Flows
Year ended March 31 2011 2010
$ $
Cash flows from operating activities
Excess of revenues over expenses for year 377,691 5,397
Items not requiring a current cash payment (receipt)
Amortization of capital assets 67,551 53,174
Interest capitalized on investments (20,773) (23,503)
Receipt of interest previously capitalized 32,714 -
Unrealized gain on investments (5,776) (23,652)
Amortization of lease inducements (9,775) (9,775)
Increase in retiring and transition allowance 50,000 50,000
491,632 51,641
Changes in non-cash working capital
Increase in sundry receivables (10,972) (5,615)
Decrease in due from National Insolvency Qualification
Program
68,890
100,760
Decrease (increase) in prepaid expenses (2,846) 56,369
Increase in accounts payable and accrued liabilities 64,645 58,351
Increase (decrease) in deferred revenue 218,491 (1,896)
Increase in deferred CQP and ICQC recovery 194,698 -
1,024,538 259,610
Cash flows from investing activities
Purchase of capital assets (113,898) (76,054)
Purchase of investments (263,271) -
Proceeds received on disposal of investments 222,554 -
(154,615) (76,054)
Net increase in cash during year 869,923 183,556
Cash and cash equivalents, beginning of year 255,350 71,794
Cash and cash equivalents, end of year 1,125,273 255,350
Cash and cash equivalents
Cash 397,521 134,554
Guaranteed investment certificate, 1.2%, due June 14, 2011 115,433 -
Premium investment account, .95%, redeemable at anytime 612,319 120,796
1,125,273 255,350
CANADIAN ASSOCIATION OF INSOLVENCY
AND RESTRUCTURING PROFESSIONALS /
ASSOCIATION CANADIENNE DES PROFESSIONNELS
DE L'INSOLVABILITÉ ET DE LA RÉORGANISATION
27
Hilborn Ellis Grant LLP
Schedule to Financial Statements
Year ended March 31
2011 2010
Administration Administration
$ $
Amortization 67,551 53,174
Audit, legal and consulting 107,021 103,582
Committees 139,694 166,586
Insol International 42,594 45,698
Member communications 95,425 95,336
Office, printing, postage,
courier and sundry
191,155
136,480
Rent 103,871 102,767
Salaries and benefits 926,238 800,039
1,673,549 1,503,662
CANADIAN ASSOCIATION OF INSOLVENCY
AND RESTRUCTURING PROFESSIONALS /
ASSOCIATION CANADIENNE DES PROFESSIONNELS
DE L'INSOLVABILITÉ ET DE LA RÉORGANISATION
28
Hilborn Ellis Grant LLP
Notes to Financial Statements
March 31, 2011
1. Description of Organization The Canadian Association of Insolvency and Restructuring Professionals / Association canadienne des
professionnels de l'insolvabilité et de la réorganisation (the “Association”) was incorporated under the
Canada Corporations Act on July 27, 1979. The Association was established to advance the practice of
insolvency administration and the public interest related to it.
The Association is a not-for-profit organization, as described in Section 149(1)(l) of the Income Tax Act, and
therefore is not subject to either federal or provincial income taxes.
2. Significant Accounting Policies
a) Cash and Cash Equivalents
The Association considers deposits in banks, certificates of deposit and short-term investments with
original maturities of three months or less as cash and cash equivalents. Cash and cash equivalents
consist principally of cash on hand, money market funds and other highly liquid interest-bearing
instruments.
b) Investments
Investments consist of fixed income investments whose term to maturity is greater than three months
from the date of acquisition. Fixed income investments maturing within twelve months from the year-
end date are classified as current.
The investments are designated as held-for-trading and are recorded at fair value. Fair values are
determined by reference to published bid price quotations in an active market at year-end.
Transaction costs associated with the acquisition and disposal of investments are expensed as incurred
and charged to investment income.
The purchase and sale of investments are accounted for using settlement-date accounting.
c) Capital assets
Capital assets are recorded at cost. Amortization is provided for on a straight-line basis at rates designed to amortize the cost of the capital assets over their estimated useful lives. The annual amortization rates are as follows:
Computer equipment and software - 20% Furniture and fixtures - 10%
Leasehold improvements are amortized on a straight-line basis over the term of the lease.
CANADIAN ASSOCIATION OF INSOLVENCY
AND RESTRUCTURING PROFESSIONALS /
ASSOCIATION CANADIENNE DES PROFESSIONNELS
DE L'INSOLVABILITÉ ET DE LA RÉORGANISATION
29
Hilborn Ellis Grant LLP
Notes to Financial Statements (continued)
March 31, 2011
2. Significant Accounting Policies (continued)
d) Lease inducements
Reduced rent benefits and lease incentives are amortized to income on a straight-line basis over the term
of the lease.
e) Net assets invested in capital assets
Net assets invested in capital assets comprises the net book value of capital assets less the unamortized
balance of lease incentives used to purchase capital assets.
f) Revenue recognition
i) Membership fees
Membership fees are recognized as revenue in the fiscal year to which they relate. The membership year of the Association is April 1 to March 31. Membership fees received in advance of the membership year to which they relate are recorded as deferred revenue.
ii) Annual conference
Revenue from the annual conference is recognized in the fiscal year in which the conference is held.
iii) Sponsorships
Revenue from event sponsorships is recognized in the fiscal year in which the related event is
held. Sponsorships received in the year prior to the date of the related event are recorded as
deferred revenue.
iv) Seminar, course and examination fees
Revenue from continuing education seminars, insolvency administration courses and CQP
courses are recognized in the fiscal year of enrolment. Examination fees are recognized in the
fiscal year in which the examination takes place. Examination fees received in advance of the
fiscal year in which the examination is held are recorded as deferred revenue.
v) Investment income
Investment income comprises interest from cash, interest from fixed income investments,
realized gains and losses on the sale of investments and unrealized gains and losses on
investments held.
Interest from cash is recognized on an accrual basis. Interest on fixed income investments is
recognized over the terms of these investments using the effective interest method and is
capitalized to the investment.
Realized gains and losses on the sale of investments are calculated as the difference between the
proceeds received on disposal (before transaction costs) and the amortized cost of the
investments disposed of.
CANADIAN ASSOCIATION OF INSOLVENCY
AND RESTRUCTURING PROFESSIONALS /
ASSOCIATION CANADIENNE DES PROFESSIONNELS
DE L'INSOLVABILITÉ ET DE LA RÉORGANISATION
30
Hilborn Ellis Grant LLP
Notes to Financial Statements (continued)
March 31, 2011
2. Significant Accounting Policies (continued)
vi) CQP Development Cost Recovery
In accordance with the Memorandum of Understanding with the Superintendent of Bankruptcy
dated October 8, 2009, net assets received from the NIQP are recognized as revenue in the fiscal
year in which the program development costs are incurred.
g) Contributed services
The work of the Association is dependant on the voluntary service of many individuals. Since these
services are not normally purchased by the Association and because of the difficulty of determining
their fair value, contributed services are not recognized in these financial statements.
h) Financial instruments
In accordance with Section 3855 of the CICA Handbook, financial instruments are classified into one of
the following five categories: held-for-trading, held-to-maturity, loans and receivables, available for
sale, or other financial liabilities. The classification determines the accounting treatment of the
instrument. The classification is determined by the Association when the financial instrument is
initially recorded, based on the underlying purpose of the instrument.
The financial assets and financial liabilities of the Association are classified and measured as follows:
Financial Asset/
Liability Category Measurement
Cash and cash equivalents Held-for-trading Fair value
Investments Held-for-trading Fair value
Sundry receivables Loans and receivables Amortized cost
Accounts payable and
accrued liabilities Other financial liabilities Amortized cost
Retiring and transition allowance Other financial liabilities Amortized cost
Financial instruments measured at amortized cost are initially recognized at fair value and then
subsequently at amortized cost with gains and losses recognized in the statement of operations in the
period in which the gain or loss occurs.
The fair value of a financial instrument is the estimated amount that the Association would receive or
pay to settle a financial asset or financial liability as at the reporting date.
The fair values of sundry receivables, accounts payable and accrued liabilities and retiring and transition
allowance approximate their carrying values due to their nature or capacity for prompt liquidation. It is
management’s opinion that the Association is not exposed to significant interest rate, currency or credit
risks arising from these financial instruments.
Disclosure related to other financial instruments is found in note 3 Investments.
CANADIAN ASSOCIATION OF INSOLVENCY
AND RESTRUCTURING PROFESSIONALS /
ASSOCIATION CANADIENNE DES PROFESSIONNELS
DE L'INSOLVABILITÉ ET DE LA RÉORGANISATION
31
Hilborn Ellis Grant LLP
Notes to Financial Statements (continued)
March 31, 2011
2. Significant Accounting Policies (continued)
i) Related parties
Transactions with organizations that the Association exerts or exerted significant influence over
(National Insolvency Qualification Program and Canadian Insolvency Foundation) are measured at the
exchange amount, which is the amount of consideration established and agreed to by the related parties.
j) Management estimates
The preparation of financial statements in conformity with Canadian generally accepted accounting
principles requires management to make estimates and assumptions that affect the reported amounts of
assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenue and expenses during the reporting period. Actual
results could differ from those estimates, the impact of which would be recorded in future periods.
3. Investments
2011 2010
Fixed Income Par Value Fair Value Fair Value
$ $ $
Province of Ontario - 4.29% - due 06/02/16 65,874 55,525 52,027
Ontario Hydro - 4.33% - due 08/06/17 - - 253,685
Province of Quebec – 4.38% - due 06/01/21 418,089 263,940 -
Province of Ontario - 4.42% - due 11/03/19 387,319 270,465 249,666
589,930 555,378
i) Interest rate risk
The Association manages the interest rate risk exposure of its fixed income investments by using a
laddered portfolio with varying terms to maturity. The laddered structure of maturities helps to enhance
the average portfolio yield while reducing the sensitivity of the portfolio to the impact of interest rate
fluctuations.
ii) Credit and market risk
The Association has an investment policy which restricts the types of eligible investments. The monies
of the Association may be invested from time to time in accordance with the criteria established by the
Executive Committee and adopted by the Board.
CANADIAN ASSOCIATION OF INSOLVENCY
AND RESTRUCTURING PROFESSIONALS /
ASSOCIATION CANADIENNE DES PROFESSIONNELS
DE L'INSOLVABILITÉ ET DE LA RÉORGANISATION
32
Hilborn Ellis Grant LLP
Notes to Financial Statements (continued)
March 31, 2011
4. Capital Assets
5. Related Party Transactions
National Insolvency Qualification Program (NIQP)
Prior to August 31, 2010 the education program and qualification system for providers of insolvency and
restructuring services in Canada was delivered via the NIQP. The NIQP was administered by the
Association in accordance with the terms of the Memorandum of Understanding dated September 24, 2004
between the Association and the Superintendent of Bankruptcy. The purpose of the NIQP was to maintain
consistent and high standards for the qualification of candidates seeking the Chartered Insolvency and
Restructuring Professional (CIRP) certification mark, a licence as trustee in bankruptcy and such other
certifications as the parties agreed to include in NIQP.
After negotiations with the Office of the Superintendent of Bankruptcy (the "OSB"), the Association entered
into a revised Memorandum of Understanding with the Superintendent of Bankruptcy on October 8, 2009,
whereby the administration of the education programs previously delivered via the NIQP would be delivered
by the Association, with ex-officio representation from the OSB, commencing September 1, 2010. On this
date the Association received net assets of $367,981 from NIQP which are to be reinvested in the future
development of the new CIRP Qualification Program (the "CQP") and the Insolvency Counsellor's
Qualification Program (the "ICQC"). Between September 1, 2010 and March 31, 2011, the Association
incurred direct costs of $173,283 towards the future development of the CQP and the ICQC. The recovery of
these costs from the assets received from the NIQP has been reflected in the Association's books of account
as a CQP/ICQC recovery during the year. The remaining deferred CQP/ICQC recovery of $194,698 has been
reflected as a current liability of the Association.
The CQP and the ICQC generate revenue from courses and examinations and incur costs in developing and
offering the education program. The Association's results to March 31, 2011 include revenue and expenses
related to the CQP and the ICQC as well as certain NIQP legacy programs for the seven months from
September 1, 2010 to March 31, 2011.
----------------------2011------------------- -------------------2010-------------------
Accumulated Accumulated
Cost Amortization Net Cost Amortization Net
$ $ $ $ $ $
Computer equipment and
software
247,782
88,302
159,480
133,884
56,351
77,533
Furniture and fixtures 68,643 26,450 42,193 68,643 19,781 48,862
Leasehold improvements 299,787 114,148 185,639 299,787 85,217 214,570
616,212 228,900 387,312 502,314 161,349 340,965
CANADIAN ASSOCIATION OF INSOLVENCY
AND RESTRUCTURING PROFESSIONALS /
ASSOCIATION CANADIENNE DES PROFESSIONNELS
DE L'INSOLVABILITÉ ET DE LA RÉORGANISATION
33
Hilborn Ellis Grant LLP
Notes to Financial Statements (continued)
March 31, 2011
5) Related Party Transactions (continued)
Up until August 31, 2010, the Association provided staff, office space and administrative services to NIQP
on a cost recovery basis. Between April 1 and August 31, 2010, the Association charged NIQP for
reimbursement of expenses in the amount of $127,726 (2010 - $334,062). There is no balance due from
NIQP at year-end (2010 - $68,890).
Effective September 1, 2010 the Association administered the NIQP legacy programs, the CQP and the
ICQC directly.
6. Lease Inducements
7. Retiring and Transition Allowance/Net Assets Internally Restricted
Pursuant to a retiring and transition allowance agreement dated December 3, 2008 and a board of directors’
resolution dated July 9, 2009, a retiring allowance of $200,000 was approved. To date an amount of
$150,000 has been accrued and expensed and a further amount of $50,000 has been internally restricted. The
remaining internally restricted amount will be accrued as a liability and recognized as an expense in fiscal
2012.
8. Investment Income
2011 2010
$ $
Interest from cash 5,257 4,281
Interest from fixed income investments 29,574 23,503
Unrealized gain on investments 5,776 23,652
40,606 51,436
----------------------2011-------------------- -------------------2010-------------------
Accumulated Accumulated
Cost Amortization Net Cost Amortization Net
$ $ $ $ $ $
Lease incentives 73,820 28,348 45,472 73,820 21,261 52,559
Reduced rent benefits 28,000 10,752 17,248 28,000 8,064 19,936
101,820 39,100 62,720 101,820 29,325 72,495
CANADIAN ASSOCIATION OF INSOLVENCY
AND RESTRUCTURING PROFESSIONALS /
ASSOCIATION CANADIENNE DES PROFESSIONNELS
DE L'INSOLVABILITÉ ET DE LA RÉORGANISATION
34
Hilborn Ellis Grant LLP
Notes to Financial Statements (continued)
March 31, 2011
9. Commitments
Pursuant to a lease agreement effective April 1, 2007, the Association is committed to lease its premises until
August 31, 2017 and has the option to renew the lease for a further two five-year terms.
The future minimum annual lease payments required under this lease, including an estimate of its
proportionate share of property taxes, operating expenses and utilities are as follows:
$
2012 113,292
2013 117,598
2014 120,674
2015 120,674
2016 120,674
2017 and thereafter 170,955
763,867
10. Capital Disclosures
For its own purposes, the Association defines capital as its net assets. The Association is not subject to
externally imposed requirements on capital.
The Association's objectives when managing capital are to hold sufficient unrestricted net assets to provide
for normal operating requirements on an ongoing basis and to enable it to withstand negative unexpected
financial events, in order to maintain stability in the financial structure. The Association holds fixed income
investments which can provide liquidity if required.
11. Comparative Figures
The financial statements have been reclassified, where applicable, to conform to the presentation used in the
current year. The changes do not affect prior year earnings.
12. Future Accounting Changes
In December 2010 the Accounting Standards Board (“AcSB”) issued Part III of the CICA Handbook -
Accounting to provide Canadian private sector not-for-profit organizations with a new financial reporting
framework for fiscal years beginning on or after January 1, 2012. Early adoption is permitted.
Until Part III of the Handbook is adopted, the Association will continue to follow the pre-changeover
accounting standards in Part V of the Handbook.
Management is currently evaluating the implications of Part III of the Handbook and is developing a plan to
meet the timetable published by the AcSB for adoption.
Canadian Association of Insolvency and Restructuring Professionals
Affiliated with The Canadian Institute of Chartered Accountants
277 Wellington Street WestToronto ON M5V 3H2P 416.204.3242F 416.204.3410E info@cairp.caW cairp.ca
(Aussi disponible en français)