CAIRP Annual Report 2010.2011 Rebuilding Success · build upon the written words of preserving...

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


"CAIRP and its members are committed to professionalism, trustworthiness and objectivity."

THE CURRENT MISSION STATEMENT


"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

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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


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


André P. Bolduc, CACIRP, CIRP ON


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


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


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


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


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


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


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


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


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


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


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


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





24


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





25


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





26


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





27


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





28


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.





29


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.





30



March 31, 2011


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.





31



March 31, 2011


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.





32



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





33



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





34



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 [email protected] cairp.ca

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