FEI Canada Annual Report 2010

Financial Executives International Canada

2010 AnnuAl REpoRt

CAnAdA’s pREEmInEnt AssoCIAtIon ConnECtIng FInAnCIAl ExECutIvEs thRough nEtwoRkIng knowlEdgE, AdvoCACy And EthICAl lEAdERshIp

• IntroducedtheFEICanadaNationalExecutiveDevelopmentWebinarSeries,producingfourwebinars withthehelpofourNationalStrategicPartnersandtechnicalcommittees.

• Participatedinroundtablemeetingonsocial,environmentalandgovernancereportingwiththeOntario SecuritiesCommissioninSeptember2009,withafollow-upmeetinginDecember2009.

• AppearedbeforeHouseofCommonsStandingCommitteeonFinance(FINA)inNovember2009to highlightFEICanada’spre-budgetconsultationrecommendations.

• ParticipatedinanationalsecuritiesregulatorroundtablemeetingwiththeCanadianSecuritiesTransition OfficeinOctober2009;MetwithAlberta’sDeputyMinisterofFinanceinNovember2009.

• Heldtremendouslysuccessful2010FEICanadaAnnualConferenceinVictoria,BCJune9-11.

• HostedFEICanada’ssecondannualSmallandMedium-sizedEnterprise(SME)Conferencein Mississauga,aswellastheEntrepreneurConferenceinCalgary.

• Partneredwithnationalstrategicpartnerstohostfiveseriesofnationalbreakfastseminars.

• HostedourfifthannualPrivateEquitySymposiuminToronto,andsimulcastlivetoourchaptersin London,Montreal,Winnipeg,Regina,Calgary,EdmontonandVancouver.

• CanadianFinancialExecutivesResearchFoundation(CFERF)publishedfournewresearchreports.

• Hostedtwostrategicplanningmeetings,attendedbybothFEICanada’sNationalBoardanditsChapter LeadershipCouncil,tofurtherdevelopandexecutetheorganization’sstrategicdirection.Onemeetingtook placeinCalgaryinNovember,andtheothertookplaceinVictoriainJune.

hIghlIghts 2010

MessagefromtheChiefExecutiveandtheChairofTheBoardofDirectors 2

Strategicupdate–yearinreview 5

Financialperformancereview 10

FEICanadacondensedconsolidatedfinancialstatements 14

FEICanadacelebratesitsvolunteers 19

TheCanadianFinancialExecutivesResearchFoundation 26

NationalStrategicPartners 29

tAblE oF ContEnts

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Ifitistruethatourfuturedependsonwhatwedointhepresent,FEICanadamemberscanbeconfidentthatthisorganizationhasasolidfoundationonwhichtostand.

Inthepastyear,oureconomyhasbeensupportedbyourcountry’sstrongfoundationoffinancialregulationandreportingstandards.Similarly,ourcountry’ssoundsystemofcorporategovernancehasrestedontheintegrityandreliabilityofseniorfinancialexecutives,manyofwhomareFEICanadamembers.

SupportforandinterestinFEICanadamembershiphelpsallfinancialmanagersthrive.Ourgoallastyearwastoconcentrateonmembership,bothreinstatingmemberslostduringthedownturn,andmakingnewmembersawareofthebenefitsofFEICanada.Andasthestormoftheeconomicdownturnsubsided,wearepleasedthatourmembershipnumbersreturnedtoagrowthmodeasweincreasedourofferingstomemberstokeepthemcontinuallyatthetopoftheirgame.ThesenewinitiativesincludedourNationalExecutiveDevelopmentWebinarSeriesandtheabilityformemberstotrackonlinetheirCPDcreditsearnedthroughFEICanada.

We’vebeenmovingalotofthingsforwardinthelastyear,tosupportourstrategicplan.OurtechnicalcommitteesworkcontinuallytoaddresstheissuesmostimportanttoFEICanadamembers.We’vecontinuedourpursuitofadvocacyonbehalfofourmembersinthelastyear,andarewellonourwaytoachievingourstrategicgoalofbeingtherecognizedvoiceofCanadianfinancialleaders.

AswellasbeingaskedtoparticipateinseveralroundtablediscussionsandonceagainpresenttotheHouseofCommonsStandingCommittee

onFinance(FINA),wewerepleasedtohaveoureffortsrecognizedbyCanada’sFinanceMinister,atFEICanada’s2010NationalConferenceinVictoria,BC:

“I am grateful for the advice and support of this organization, particularly during the difficult economic times we’ve all been through.”

–TheHonourableJamesM.Flaherty

OurCanadianFinancialExecutivesResearchFoundation(CFERF)producesresearchbasedonwhatseniorfinancialexecutivesthinkabouttopicsthatareimportanttoyou.Inthe2009-2010year,CFERFpublishedstudiesonIFRS,privatecompanyaccesstocredit,thepeopleissuesinM&Adeals,andhowtobestmanageduringtheeconomicupturn.CFERFhasevenmoreinstoreforthe2010-2011year,ledbyournewVicePresidentofResearchandCommunications,ChristianBellavance.ManyofyouwillknowofChristianfromhis14yearsasEditor-in-chiefatCAmagazine.WeareexcitedtohaveChristianjointheFEICanadateamandhopeyouarealleagertotakepartinCFERFstudiesinthecomingyear.

FEICanadaisanorganizationwithcommittedvolunteers,andwethankthemorethan200memberswhocontributetoourcommitteesandchapterboards.Thisvolunteerleadership,whichrepresentsanamazing10%ofourmembership,devotescountlesshoursoftimetoourorganizationandlivesbytheideathat“youonlygetoutofanorganizationwhatyouputintoit”.Alargeamountofgratitudegoesout

mEssAgE FRom thE ChIEF ExECutIvE And thE ChAIR oF thE boARd oF dIRECtoRs

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toourwonderfulBoardofDirectors.Wewouldparticularlyliketothankourretiringdirectors:ImmediatePastChairGrantRing;ConferenceChairDanleyYip;CFERFChairBarryGorman;directorBrianMcAskillanddirectorMoniqueLétourneau.ItisbecauseofvolunteerslikethesethatFEICanadaisthepreeminentassociationforseniorfinancialexecutivesinCanada.

WewouldalsoliketothankthestaffofFEICanada’sNationaloffice,whoworkeverydaytomakeFEICanada’seventsbetter,ouradvocacystronger,andourprofessionaldevelopmentgearedtotheneedsofourmembers.

Andlastbutnotleast,onbehalfofyour2009-2010BoardofDirectors,chapterleadersandnationalstaff,wewouldliketothankyou!Wetrulybelievethatthegreateryourinvolvementintheorganization,thegreaterthereturnwillbeonyourinvestment,whetheritbebyparticipatinginyourlocalchaptereventsoronacommittee,orbyencouragingyourseniorfinancialexecutivecolleaguestojoinournetwork.

Michael Conway ChiefExecutive&NationalPresident

Karyn BrooksChair,2009-2010BoardofDirectors

P.S. In the last year we’ve moved our National Office, and are now located at 170 University Ave, Suite 1201 in Toronto. If you’re ever in the area, we love visits from our members! If you give us a call ahead of time, we’d even be happy to find you a place to work if needed while you are in the city.

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Whenitcomestobringingfinancialleaderstogetherwiththeirpeers,wemeanbusiness.Whileourworkisserious,it’sbeenapleasurewatchingfriendshipsflourishandcolleaguesconnectduringthismemorableandbusyyearatFEICanada.

ThisyearmarkedFEICanada’s60thanniversaryofconnectingourcountry’sseniorfinancialprofessionalstoshareinformation,bestpracticesandinfluenceregulatorychange.Indoingso,wehavehelpedmaintainthehighestprofessionalstandardsandcontributedtothoughtleadership,supportingCanada’sgeneraleconomicwellbeing.

AsFEICanadacelebratesthismilestone,wecantakeamomenttolookbackonourrecentachievementswithpride.Theseincludemakingsignificantprogressonseveralaspectsofourlong-termplan,particularlyintheareasofadvocacy,awarenessbuildingandknowledgeexchange.

FEICanadaisincreasinglycalleduponbythegovernmentandthemediatospeakoutonvarioustopicsofimportancetoseniorfinancialleaders,andthisbringsusclosertoourstatedgoalofbecomingCanada’sVoiceofFinance.FEICanadahastestifiedtwiceinalittleoverayearbeforetheHouseofCommonsStandingCommitteeonFinance(FINA).WeaddressedcreditavailabilityinMarch2009,andtaxationinApril2008.FEICanadacontributedtotheExpertPanelonSecuritiesRegulationthroughout2008-2009andtothreeexpertcommissionsonpensionreform.

FEICanadadrewnationalmediaattentionatourannualconferenceinMontréal,whichwaswell-attendedandfeaturedseveralprominentspeakers,includingtheinternationallyrenownedItalian-Canadianbusinessman,FiatGroupCEOSergioMarchionne.OneofSergio’skeymessages,which

FEICanadahaslongsupported,was: “The real challenge of our time is to create the conditions for virtuous change.

The financial crisis has put values fundamental to any organization to the test: transparency, honesty, reliability.”

Oureffortsininfluencingtheevolutionofregulationsandstandardsfollowthesecorevaluesthatarefundamentaltofairandefficientcapitalmarkets.Ouradvocacyandawarenessefforts;knowledgeexchange;andnetworkingopportunitieshaveservedourmemberswell.AsCanadianfinancialleadersbecomemoreawarethatwearespeakingoutontheirbehalf,weexpectmoreseniorfinancialexecutiveswillaspiretojoinFEICanada.

Aswelooktothefuture,wewillkeepoursightsfocusedonseveralkeyareas,includingenhancingmembershipexperience;continuingtogrowourpublicprofileandincreasinginvolvementbyourvolunteersonourtechnicalcommittees.Ourcommitteesprovideindividualmembersanopportunitytohelpimprovepublicpolicy,regulatoryandaccountingstandardsinCanada.Atthesametime,volunteershelpexpandFEICanada’ssphereofinfluenceandgeneralprofile,whilenetworkingwithandlearningfromtheirpeers.

tAblE oF ContEnts

2010

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2010

FEI CAnAdA mEmbERshIp

Inthepastyear,membershipdevelopmentandretentionwasmadethenumberonepriorityacrosstheorganization.Afterbeingimpactedbyrecession-ledmembershipdeclinesovertheJune2008toJanuary2010period,thefinalfivemonthsofthe2009-2010yearsawasignificantturn-aroundinnumbers.ThenationalofficeandchapterboardsworkedtogethertospreadthewordthatFEICanadacanbenefitallfinancialexecutives,especiallyinhardtimes.

WhileFEICanadaworkedhardtoimproveonallorganizationalkeycomponents,includingknowledgeexchange,communicationsandadvocacy,membershipsawareversaloftrendsasthenumberofnewmembersincreasedwhilenon-renewalsdecreased.FEICanadagained76newandreinstatedmembersinthemonthofMarch,whichfarexceedsourpreviouslargestmonthlyincreaseof40newmembers.Giventhetumultuouseconomictimes,wewerehappytoclosetheyearwithmoremembersthanwestartedwith,growingto2015members.

Oursocialmediacampaigncontinuestogrow,asourmembersjoinLinkedInandTwitter.Attheendofthisyear,ourFEICanadaLinkedIngrouphad576membersandourTwitterfeedhadabout1,100followers.ThesecommunicationtoolshaveallowedustoincreasethebrandawarenessofFEICanada,andalsohavebeenusedasrecruitingtoolandadiscussionforumformembers.

CHAPTERS

AllofourelevenFEICanadachaptersmadegreateffortstoimproveandenhancetheexperienceoftheirmembersinthe2009-2010year.

SOMEExCITINGEVENTSTHISYEAR:

• TheAtlanticProvincesChapter’sdinnerswith NovaScotiaFinanceMinisterGrahamSteele andNovaScotiaPremierDarrellDexter.• TheQuébecChapter’sgalainhonouroflong- servingpresidentSergePharand,an unforgettableroyaleveningattheWindsor.• TheNationalCapitalRegionChapter’sdinner onthetopic“IsCanada’sfiscalsustainabilitya reality?”withKevinPage,Canada’s ParliamentaryBudgetOfficer.• TheTorontoChapter’sannualeconomic updatewithDr.SherryCooper,Executive VicePresidentandChiefEconomistwith BMOFinancialGroup.• TheSouthernGoldenHorseshoeChapter’s dinnerandtouroftheRoyalBotanical Gardenswithaflamencoguitaristand SpanishDancers.• TheSouthwesternOntarioChapter’sTourof Western/RobertsCentreforBrain&Mind.• TheWinnipegChapter’sChristmasluncheon withspeakerDavidHolmofOnyxFinancial Group.• TheReginaChapter’slunchwithspeakerPat Youzwa,President/CEOofSaskPower.• TheCalgaryChapter’shostingofthethird annualFEICanadastrategyplanningsession.• TheEdmontonChapter’sdinneronthe topicof“SocialNetworking–Newtrends andopportunitiesforyourbusiness”with SpeakerMackMale,FounderofParamagnus Developments.• TheVancouverChapter’slunchwithDan Doyle,ExecutiveVicePresident–Construction, VancouverOrganizingCommitteeforthe 2010OlympicandParalympicWinterGames (VANOC).

Wewouldliketothankallofourdedicatedchaptervolunteers.Ourexcellentchapterprogrammingscheduleinthe2009-2010yearwouldnothavebeenpossiblewithoutyourongoingcommitment.

stRAtEgIC updAtE – yEAR In REvIEw

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knowlEdgE ExChAngE

EVENTS FEICanadacontinuestoofferawidevarietyofeventstomembersandnon-membersalike.Professionaldevelopmentandopportunitiestonetworkarenotedasthetopreasonsmembersattendnationalandchapterevents.Inarecentmembersurveycompletedinthespringof2010,memberslistedNationalBreakfastSeminarsandchaptermeetingsasthetopreasonsforbecomingandstayingamemberofFEICanada.

Ournewestofferinginthe2009-2010yearwasourFEICanadaNationalExecutiveDevelopmentWebinarSeries,whichwasofferedtoourmembersasanaddedbenefitofmembership.Thefourwebinarsputonin2009-2010wereonthetopicsof:

• Privatecompanyfinancing–Renewinga scarceresource;• TheimpendingchallengeofIFRSfinancial systemsconvergence;• Failuretoplanisaplantofail–Tipsfor businessescontemplatingatransition;• Insightsfromthe2010IBMGlobalCFO study.

OurNationalBreakfastSeminarSeriescontinueditssuccessacrossthecountry,withthetopicsof:

• Gettingthemostfromyourfinancefunction;• Fraudrisksintheneweconomy:Areyour basescovered?• Managingtheupturn:Keystrategiesfor sustainedprofitablegrowth;• Anatomyoftheacquisitionofatroubled business;• Credit,capitalandfinancialreporting.

ThesecondannualSMEConferencewasheldinMississaugaonOctober22,2009.Thisconferencewasasuccessandattendeesprovidedpositivefeedback.ThefirstEntrepreneurialBusinessConferencewasheldonOctober20,2009inCalgarywithlivevideo-broadcaststoVancouver,Edmonton,ReginaandWinnipeg.

The2010PrivateEquitySymposiumwasheldMarch23rdattheMaRSCentreinToronto,withlivevideobroadcastsintoLondon,Montreal,Winnipeg,Regina,Calgary,EdmontonandVancouver.Theprogramincludedthreecompellingpanelsessionswithindustryexperts,aswellasanexcellentclosingkeynotepresentationbyDavidM.Rubenstein,Co-FounderandManagingDirectorofTheCarlyleGroup.

The2010AnnualConferencewasheldattheVictoriaConferenceCentreandFairmontEmpressHotelfromJune9-11inVictoria,BCandwasatremendoussuccess.Morethanfourhundreddelegatesenjoyedawiderangeofeducationalsessionsandnetworkingevents.

Oneoftheconference’shighlightswasthespeechofCanada’sMinisterofFinance,TheHonourableJamesFlaherty,whoprovidedhisviewsonthestrengthofCanada’sfinancialsystemthroughtheglobalcrisisandbeyondandexplainedhisgovernment’sNationalSecuritiesCommissioninitiative.WeusedtheopportunityofhisspeechtopresentMinisterFlahertywithanFEICanadahonourarymembershipforhisroleas“Canada’sCFO”.

Inthepastyear,FEICanadamembersearnedmorethan10,000CPDcreditsthroughFEICanada’snationalevents,andmanymorethroughchapterevents.FEICanadamemberscannowexaminetheirContinuingProfessionalDevelopment(CPD)creditsearnedthroughFEICanadaeventsinthemembers’onlysectionoftheFEICanadawebsite.Memberssimplyselectthedatestheywouldliketoreview,andthencanprintouttheirpersonalCPDsummary.

TECHNICAL COMMITTEESFEICanada’stwotechnicalcommitteesaretheCommitteeonCorporateReporting(CCR)andtheIssuesandPoliciesAdvisoryCommittee(IPAC).

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CCRCCRprovidestechnicaladviceandrecommendationstoregulatorsandstandardsettersonissuesofimportancetoFEICanadamembers.LedbyVictorWells,thecommittee’s44volunteermemberssubmitted14lettersofrecommendationtotheAcSBandIASB.Topicsincluded:

• Leases• GenerallyAcceptedAccountingPrinciplesfor privatecompanies• Fairvaluemeasurement• Rate-regulatedactivities• ImprovementstoIFRS• Accountingstandardsfornot-forprofit organizations

IPACIPACdevelopspositionsonnationalissues,providesexpertconsultationtokeystakeholdersandinfluencesemerginglegislationthatisrelevanttoFEICanadamembers.LedbyWilliamHewitt,thecommitteecontinuedtoworkinasteeringcommitteeformat.ThesixIPACtaskforcesare:

• Corporategovernanceandinternalcontrols• Informationtechnology• Pensions• Privatecompanyissues• Taxation• Treasuryandcapitalmarkets

Somehighlightsoftheyear:• Participatedinroundtablemeetingonsocial, environmentalandgovernancereportingwith theOntarioSecuritiesCommissionin September2009,withafollow-upmeetingin December2009;• AppearedbeforeHouseofCommons StandingCommitteeonFinance(FINA)in November2009tohighlightFEICanada’s pre-budgetconsultationrecommendations;• ParticipatedinaNationalsecuritiesregulator roundtablemeetingwiththeCanadian SecuritiesTransitionOfficeinOctober2009;

MetwithAlberta’sDeputyMinisterof FinanceinNovember2009;• Madesubmissiontothefederalgovernment inresponsetoacallforconsultationson specificallyproposedpensionreformmeasures.

CFERFTheCanadianFinancialExecutivesResearchFoundation(CFERF)continueditsmissiontostudyemergingfinancialmanagementissuesinCanadawiththeaimofincreasingcompetitivecapabilitiesofCanadianfinancialleadersandtheirorganizations.

In2009-2010,CFERFpublishedstudiesonthetopicsof:

• IFRSreadinessinCanada:2009

• PeopleissuesinM&A:Learningfrom experience

• Managingtheupturn:Keystrategiesfor sustainedprofitablegrowth

• Theroleofdisclosuresinthefinancial statementsofprivatebusinessinaccessing credit

Inadditiontopartner-sponsoredresearch,CFERFsupportsandpromotesacademicresearch.Thisyear’s$10,000academicawardwasawardedtoProfessorAminMawanioftheSchulichSchoolofBusinessforhisresearchstudy“TheExecutiveCompensationGAP:WhyDoesItExist?AndIsItConverging?”

In2009-2010,CFERF’sBoardofTrusteeswasonceagainledbyChairBarryGorman.BarryhasdedicatedfouryearstoCFERF,andhasnowpassedontheroleofChairtoVictorWells.RamonaDzinkowskihasbeenCFERF’sExecutiveDirectorforthepastthreeyears,arolethatwillnowpasstoChristianBellavance,whohasjoinedFEICanadaasournewVicePresident,ResearchandCommunications.ThroughtheirworkwithCFERF,wewouldliketothankBarryandRamonafortheircommitmentanddedicationtohelpingmakeFEICanadatherecognizedvoiceoffinanceexecutivesinCanada.

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pRoFIlE And CommunICAtIonsInthe2009-2010year,thevisibilityofFEICanadaincreasedthroughourongoingcommunicationseffortsandmediarelationsstrategy.FEICanada’sadvocacyefforts,CFERF’sresearchstudiesandthemanycharismaticspeakersatoureventscapturedthemedia’sattention.

InApril2010,theNationalOfficesentoutasurveytoallFEICanadamemberstoassessmembersatisfaction.Theresponseratewasgoodandtherespondents’profilealignedwiththedemographicbreakdownofFEICanada’smembership.Thesurveyresults,whichwerepresentedatFEICanada’sJune8,2010LeadershipmeetinginVictoria,wereencouraging.Thegroupofchapterleaders,boardmembersandtechnicalcommitteechairsreviewedtheresultsandofferedideasastohowtheinformationcouldbebestputtouse.TheideasgeneratedatthissessionhavenowbeenintegratedintoFEICanada’snewthree-yearstrategicplan.

BRANDING

TheMontrealconferenceinMay2009wasthefirsttimeFEICanadashowcaseditsaccomplishmentsatatradeshow.Withthesuccessofthisinitiative,wehavesinceattendedotherconferencesasanexhibitor,tofurtherincreasethevisibilityofFEICanada.

InanefforttocontinuallystrengthentheFEICanadabrand,astandardsetofbrandingguidelinesweresentouttoallFEICanadachaptersinJanuary2010.TheseguidelinesincludeFEICanadachapterspecificlogos.

FEI CAnAdA AwARdsCanada’s CFO of the Year™ AwardCongratulationstothisyear’stwoCFOoftheYear™Awardwinners,RichardBird,Executive

ExecutiveVicePresident,ChiefFinancialOfficer&CorporateDevelopmentofEnbridgeInc.,andCynthiaDevine,ChiefFinancialOfficerofTimHortonsInc.

Canada’sCFOoftheYear™AwardispresentedtoaseniorfinancialleaderwhohasmadeacontributiontobusinessinCanadawithquality,insightanddirection.

InatimewherethechallengesbroughtonbyCanada’seconomicturbulencehavetestedthemettleofCFOsallacrossthiscountry,weareverypleasedtorecognize,forthefirsttime,twooutstandingfinancialprofessionalswhohavedemonstratedvision,innovationandleadershipwithintheirorganizationsandintheircommunities.

Frank S. Capon Distinguished Service AwardFEICanadawasverypleasedtopresenttheFrankS.CaponAwardfordistinguishedvolunteerservicetoBarryGormanoftheAtlanticProvincesChapterandWilliamHewittoftheTorontoChapter.ThisawardhonoursMr.FrankCapon,whowasanoutstandingFEICanadamemberfor57years,andiscreditedwithbringingFEItoCanadain1948.

Dr.GormanhasbeenChairoftheBoardofTrusteesoftheCanadianFinancialExecutivesResearchFoundation(CFERF)andwasamemberoftheBoardofDirectorsofFEICanadafrom2006-2010.HeiscurrentlychairoftheTaxationtaskforceofFEICanada’sIssuesandPoliciesAdvisoryCommittee(IPAC),andhasbeenformanyyears.Dr.GormanhasbeenamemberofFEICanadafor18years.

Mr.HewittisFEICanada’scurrentIPACChairandamemberofitsPensionsandCapitalMarketstaskforces.HeisonFEICanada’sBestinClassMBAcasecompetitionorganizingcommittee,andhasbeenaCFERFtrusteesinceitsinception.Mr.HewittisalsopastChapterPresidentinTorontoandservedasfoundingChapterPresidentoftheSouthwesternOntarioChapter.Mr.HewitthasbeenamemberofFEICanadafor40years.

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tAblE oF ContEnts

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Right:2010CFOofoftheYearTMwinners

CynthiaDevineandRichardBirdwith

MichaelConwayandGinoScapillati,

NationalManagingPartnerofCFOY

PresentingSponsorPricewaterhouseCoopers

Left:WilliamHewittandBarryGorman

acceptthe2010CaponAwardfrom

MichaelConway

ThefinancialresultsofFinancialExecutivesInternationalCanada(FEICanada)includetheaccountsofFEICanadaandtheCanadianFinancialExecutivesResearchFoundation(CFERF).FEICanada’sactivitiesarepresentedbelowinfivecategories:membership,events,NationalStrategicPartnerprogram,CFERFandmiscellaneous.Membershiprevenuesincludenationalduesandinitiationfeesreceivedfromourmembers,whereasmembershipsupportcostsareshownwithinvariousexpenditurelineitems.TheeventscategorydetailsresultsfromFEICanada’snationalannualconferenceheldlastJuneinVictoria,ourNationalBreakfastSeminarseriesandournewNationalExecutiveDevelopmentWebinarseries,ourPrivateEquity

SymposiumandourannualSMEconference.TheNationalStrategicPartnerProgramincludesactivitieswithourvaluedsponsorsaswellasourprestigiousannualevent:Canada’sCFOoftheYear™Award.CFERFencompassesresearchstudiesandacademicawardsbyanddonationstoFEICanada’sresearchinstitute.Themiscellaneouscategoryrepresentsmainlyinvestmentincomeandfeescollectedforservicesrenderedinrelationtoourcareercentrewebsite.Alloftheseactivitiesaresupportedbyourteamatnationaloffice,variouscommitteesincludingourtwomember-staffedtechnicalcommittees,andfundsthatareinvestedinourcommunicationsandmediarelationefforts.

FInAnCIAl pERFoRmAnCE REvIEw

Key Performance Drivers

2010 2009

Revenues $2,220,051 $2,228,137

Expenses 2,248,836 2,370,948

Excessofexpensesoverrevenues $(28,785) $(82,811)

Numberofmembers

2,015

2,010

Restrictedfundbalance $350,000 $299,707

Strategicinitiativesfundbalance 444,837 538,820

Capitalassetfundbalance 46,260 31,355

Totalfundbalance $841,097 $869,882

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Financial position

FEICanadahasprudentlymanageditsfinancialpositioninanefforttoexecuteitsstrategicplan.Wehavedeployedourresourcestofundanumberofstrategicinitiativesimportanttoourmembers:

Membership and Chapter Relations:FEICanadacontinuestoputforwardinitiativestogrowitsmembershipbaseandtosupportitsvolunteersacrossitselevenchapters.WehavehighlightedtheaccomplishmentsofanumberofourvaluablevolunteersatourannualconferenceinVictoria.The“Top10reasonsFEICanadacanhelpyou”documenthasbeendevelopedandaprofessionally-designedboothhasbeenpurchasedtosupportmembershiprecruitmentinitiatives.OurNationalStrategicPartnershavehelpedusgrowourmembershipbasebyparticipatingintherecruitmentofqualifiedfinancialexecutivesasnewmembers.OurFinancialExecutivemagazinecontinuestobeappreciatedbyourmembersandadigitalversionisnowavailable.

Knowledge exchange:FEICanada’sflagshipeventssuchasourAnnualConference,PrivateEquitySymposium,SMEconference,NationalBreakfastSeminarsandCanada’sCFOoftheYear™galacontinuetobepopular.Thisyearwelaunched

ourNationalExecutiveDevelopmentWebinarseries,andweexpecttohostmorewebinarsforthebenefitofourmembersinthecomingyear.Ourtwotechnicalcommitteescontinuetobeveryactivewithregulators,standardsettersandvariousstakeholders.CFERFpublishedfourresearchstudiesthisyear,andhasconductedthesurveysandforumsforthreemore.CFERFalsograntedanacademicawardtoProf.AminMawanioftheSchulichSchoolofBusinesstoundertakeresearchonexecutivecompensation.

Profile and communications:OurteamhasbeenveryactivelyworkingonFEICanada’scommunications,brandingandmediarelationsactivities.ContinuedeffortstobrandFEICanada’snamehavebeensupportedbythedevelopmentofasetofstandardsforusethroughouttheorganizationbyourchaptersandinourcommunicationplansforeventsandmediarelations.Wehavestrengthenedtheuseofsocialmedia(LinkedInandTwitter)andensureditsusesupportedallaspectsofourstrategicplan.WecontinuetopublishourmonthlyxpressandFinanceandAccountingReviewe-newsletterstokeepmembersup-to-dateonvaluableinformationontheirmembershipandcurrentissuesinaccountingandfinance.

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Results of operations

FEICanadareportedanexcessofexpensesoverrevenuesof$28,785fortheyearendedJune30,2010,comparedtoanexcessofexpensesoverrevenuesof$82,811ayearago.

RevenuesRevenuesweredown$68,000or3%fromayearago,to$2,220,000.Membershipduesandfees,representing38%ofourrevenues,weredown$89,000or9.5%overlastyearduetotheimpactofthemembershipdeclineduringtherecession

lastyearandtocertainrecruitmentpromotionsthisyear.Events,whichaccountfor35%ofourrevenues,weresimilartolastyearasincomefromthedifferentmixofbreakfastseminarsandwebinarsmainlyoffsetslightlylowerrevenuesfromourannualconference.Ourassociationwithstrategicpartnersyielded18%ofourrevenues,up$29,000or8%aswewelcomedtwonewsponsors.CFERF’sexpandedresearchcapabilitiesincreaseditsrevenueby$35,000or32%,asmoreresearchstudieswereproducedthisyear.Miscellaneousrevenuedeclined$34,000or38%comparedtolastyearduetolowerinvestmentandcareerservicesincomeoffsetbyanon-recurrentsalestaxrefund.

Membershipduesand

initiationfees

38%

Events

35%

NationalStrategicPartnerprogram

18%CFERFresearchstudiesanddonations

6%

Miscellaneous

3%

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Revenues

ExpensesExpensesof$2,249,000decreased$122,000or5%fromayearago.Compensationexpenses,whichrepresent41%ofFEICanada’sexpenditures,decreased$92,000or9%overlastyear,mainlyrelatedtothechangeinournetpensionplanobligation.Eventcostsrepresented23%ofourtotalexpenses,down$18,000or3%fromlastyear,mainlyresultingfromcostsavingsfromourannualconference.Administration,occupancyandothercosts,whichaccountfor20%ofourexpenditures,increased$22,000or5%,mainlyduetohighercoststosupportourmembershipinitiatives.Elevenpercentofourcost

basewasspentonCFERF’sresearchcostsandawardprogram,up$54,000or30%fromlastyear,asresearchcapabilitieswerestrengthened.Ourspendingonprofile,brandingandadvocacyaccountsfor2%ofourcosts,down$94,000or67%,stemmingfromthenon-recurrenceofcostsforour60thanniversarycelebrationlastyearandthestrengtheningofourin-housecommunicationscapabilities.

Compensation

41%

Events

23%

Administration,occupancyandothercosts

20%

CFERFcostsandawardsgranted

11%

NationalStrategicPartnerprogram

3%

Profile,branding&advocacy

2%

Expenses

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mAnAgEmEnt’s REsponsIbIlIty FoR FInAnCIAl REpoRtIng

ManagementisresponsibleforthepreparationoftheconsolidatedfinancialstatementsandthecondensedconsolidatedfinancialstatementsofFinancialExecutivesInternationalCanada/DirigeantsFinanciersInternationauxduCanada(FEICanada)andfortheirintegrityandobjectivity.ThesefinancialstatementshavebeenpreparedinaccordancewithCanadiangenerallyacceptedaccountingprinciplesappropriateinthecircumstancesandhavebeenapprovedbytheBoardofDirectors.

Wemaintainthenecessarysystemofinternalcontrolstoensurethetransactionsareauthorized,assetsaresafeguardedandproperrecordsaremaintained.

OurBoardofDirectors,uponrecommendationfromourAuditandFinanceCommittee,reviewsandmonitorsthequalityandintegrityofourfinancialstatements,ensureseffectivenessofsystemsanddisclosureandinternalcontrolsoverfinancialreporting,andreviewsandprovidesoversightinthemanagementofrisks.

HillbornEllisGrantLLP,ourindependentexternalauditors,havebeenappointedbyourBoardofDirectorsontherecommendationoftheAuditandFinanceCommittee.Theirappointmentwasratifiedattheannualmeetingofmembers.TheauditorshavefullandunrestrictedaccesstotheAuditandFinanceCommitteetodiscusstheirauditandrelatedfindings.Theyhaveperformedanindependentauditofourconsolidatedfinancialstatementsandexpressedanopinionwithoutreservation.Theyhavealsopreparedareportonourcondensedfinancialstatementswhichispresentedonpage15.

Toronto,OntarioSeptember9,2010

MichaelConway,CA,ICD.D LineTrudeau,CA,MBAChiefExecutive&NationalPresident ChiefFinancialOfficer

FEI CAnAdA CondEnsEd ConsolIdAtEd FInAnCIAl stAtEmEnts

14

AudItoRs’ REpoRt on CondEnsEd ConsolIdAtEd FInAnCIAl stAtEmEnts

To the Members of Financial Executives International Canada/ Dirigeants Financiers Internationaux du Canada

TheaccompanyingcondensedconsolidatedstatementoffinancialpositionandthecondensedconsolidatedstatementofrevenuesandexpensesarederivedfromthecompletefinancialstatementsoftheFinancialExecutivesInternationalCanada/DirigeantsFinanciersInternationauxduCanadaasatJune30,2010andfortheyearthenendedonwhichweexpressedanopinionwithoutreservationinourreportdatedSeptember9,2010.Thefairsummarizationofthecompleteconsolidatedfinancialstatementsistheresponsibilityoftheorganization’smanagement.Ourresponsibility,inaccordancewiththeapplicableAssuranceGuidelineofTheCanadianInstituteofCharteredAccountants,istoreportonthecondensedconsolidatedfinancialstatements.

Inouropinion,theaccompanyingcondensedconsolidatedfinancialstatementsfairlycondense,inallmaterialrespects,therelatedcompletefinancialstatementsinaccordancewiththecriteriadescribedintheGuidelinereferredtoabove.

ThesecondensedconsolidatedfinancialstatementsdonotcontainallthedisclosuresrequiredbyCanadiangenerallyacceptedaccountingprinciples.Readersarecautionedthatthesestatementsmaynotbeappropriatefortheirpurposes.Formoreinformationontheorganization’sfinancialpositionandresultsofoperations,referenceshouldbemadetotherelatedcompletefinancialstatements.

Toronto,Ontario CharteredAccountantsSeptember9,2010 LicensedPublicAccountants

15

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AsatJune30 2010$

2009$

ASSETS

CurrentAssets 2,353,776 2,025,795

CapitalAssets 46,260 31,355

2,400,036 2,057,150

LIABILITIES

CurrentLiabilities 1,309,469 944,871

Long-TermLiabilityAccruedPensionLiability

249,470

242,397

1,558,939 1,187,268

FUNDBALANCES

Operating

Restricted 350,000 299,707

StrategicInitiatives 444,837 538,820

InvestedinCapitalAssets 46,260 31,355

841,097 869,882

2,400,036 2,057,150

KarynBrooks,FCA RayHawrelak,CAChair,BoardofDirectors Chair,Audit&FinanceCommittee2009-2010 2009-2010

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CONDENSED CONSOLIDATED STATEMENT OF REVENuES AND ExPENSES

YearendedJune30 2010$

2009$

REvEnuES

Membershipduesandinitiationfees 836,144 924,759

Events 787,841 797,204

NationalStrategicPartnerprogram 396,125 367,125

CFERFresearchstudiesanddonations 143,641 108,800

Miscellaneous 56,300 90,249

2,220,051 2,288,137

ExpEnSES

Compensation 923,215 1,015,413

Events 522,689 540,482

Administration,occupancyandothercosts 445,229 423,438

CFERFcostsandawardsgranted 238,306 183,772

NationalStrategicPartnerprogram 74,171 68,568

Profile,brandingandadvocacy 45,226 139,275

2,248,836 2,370,948

Excessofexpensesoverrevenuesforyear (28,785) (82,811)

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June30,2010

Description of Organization and Basis of Presentation

FinancialExecutivesInternationalCanada/DirigeantsFinanciersInternationauxduCanada(FEICanada)isanot-for-profitmembershiporganizationestablishedtoserveasaneffectiveadvocateforthebusinesscommunitywithrespecttofinancialandaccountingmatters,andthereportingthereon,andtoimprovethecommunicationoffinancialinformationtoallinterestedparties.Itisaregisterednonprofitorganization,whichisexemptfromincometaxesundertheIncomeTaxAct(Canada).

Thecondensedconsolidatedfinancialstatementsincludetheaccountsoftheorganization’scontrolledfoundation,CanadianFinancialExecutivesResearchFoundation/FondationDeRechercheDesDirigeantsFinanciersDuCanada(CFERF).CFERFisseparatelyincorporatedandwasformedtopromote,conductandsponsorresearchandpublishingprojectsonbusinessmanagementtopics.FEICanadaprovidesadministrativesupportandmanagementtoCFERFandisnotremuneratedforthissupport.

FEICanadaisaffiliatedwithchaptersthroughoutCanada,andwithFinancialExecutivesInternationalintheUnitedStates(FEI).FEICanadachaptersareindependentlyresponsibleforfundingandmanagingtheiroperationsand,accordingly,arenotconsolidatedinthesefinancialstatements.

FullfinancialstatementsmaybeviewedontheFEICanadawebsiteat

www.feicanada.org/fullfinancialstatements/2010-2011.

notE to CondEnsEd ConsolIdAtEdFInAnCIAl stAtEmEnts

18

FEI CAnAdA CElEbRAtEs Its voluntEERs

19

Clockwise:2009-2010Strategicretreat;TorontoChapterPresidentKayBrekkenandSteveRosen;WilliamHewittwiththe

“Queen”ofVictoriaConferenceentertainers;VictoriaConferencechairDanleyYip;EntrepreneurDayinCalgary,October2009.










tAblE oF ContEnts

20

Right:Volunteershaving

alaughattheVictoria

conference

Left:BobRollwagen,

StephenIlkiwandAzam

FodaattheCFOofthe

YearTMGala

Right:MichaelConway

andFEICanadaBoard

ofDirectorsChair,Karyn

Brooks

Below:Southwestern

OntarioChapterPresident

SueDeakinandVice

PresidentNicoleArchibald

withWinnipegChapter

PresidentBevDavies

Left:LeahHalpenny,Jordan

BeallorandRobertSnyder

TeeoffinVictoriawiththe

helpofKayBrekken

Right:Chapter

LeadershipAward

recipients,Howard

Johnson,DanleyYip,

LeslieMarkow,Brian

McAskill,JudyMunro,

andCliffTruax.

Chair KarynBrooks Québec(G)

Vice Chair LouisMarcotte Québec(A)(G)

Immediate Past Chair GrantRing Regina(G)

Chair, Chapter Leadership Council LisaDorian Vancouver

Chair, Audit & Finance Committee RayHawrelak Edmonton(A)

Chair, Committee on Corporate Reporting VictorWells SouthernGoldenHorseshoe

Chair, Issues & Policies Advisory Committee WilliamHewitt Toronto

Chair, 2010 Conference Committee DanleyYip Vancouver

Chair, CFERF BarryGorman Atlantic

Directors-at-Large JimFergusson Calgary(A)

SusanNemec Winnipeg(A)

BillRoss Toronto

BrianMcAskill Toronto(A)

MoniqueLétourneau Québec

JamesSaretsky Calgary

Chief Executive & National President MichaelConway Toronto(G)

Secretary & CFO LineTrudeau SouthernGoldenHorseshoe(G)

Chair of the Board, Financial Executives International JerryUrich CentralPensylvannia

Vice Chair of the Board, Financial Executives International BrianRuttencutter OrangeCounty

President & CEO Financial Executives International MarieHollein Chicago

(A = Audit & Finance Committee)

(G = Governance Committee)

2009-2010 boARd oF dIRECtoRs

21

FEI CAnAdA nAtIonAl stAFF

Chair LisaDorian,Vancouver

National KarynBrooks,Québec LouisMarcotte,Québec MichaelConway,FEICanada LineTrudeau,FEICanada SydneyFreeston,FEICanada

International DianeAlbergo,FEIU.S. JoeDiLorenzo,Boston BrianRuttencutter,OrangeCounty Chapter representatives NicholeArchibald,SouthwesternOntario BradBardua,Vancouver PatrickBieleny,Edmonton KayBrekken,Toronto FredBurke,Toronto GeorgeChiarucci,Toronto DanClarke,AtlanticProvinces BradCruickshank,Vancouver BeverleyDavies,Winnipeg SueDeakin,SouthwesternOntario AzamFoda,SouthernGoldenHorseshoe CarlGauvreau,QuébecChapter NolaHeale,Calgary DwayneHenley,Winnipeg BettyHoffart,Regina MichelHoule,NationalCapitalRegion KenKember,NationalCapitalRegion BertrandLauzon,QuébecChapter LauriePowers,Regina RobertRollwagen,SouthernGoldenHorseshoe MichaelShabada,Edmonton MaureenSullivan,AtlanticProvinces DrewThomson,MembershipChair,Calgary

ChAptER lEAdERshIp CounCIl

Chief Executive & National President MichaelConwayChief Financial Officer LineTrudeauVice President, Research & Communications ChristianBellavanceSenior Writer, CFERF LauraBobakResearch & Communications Coordinator MelissaGibsonMembership Coordinator SydneyFreestonMembership Associate KarenDanisDirector of Events CamealPrinceMarketing & Events Coordinator MaritaDiasDirector of Sponsorship DonComishOffice Administrator PatTodd

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IPAC Steering Committee

IPAC Chair WilliamHewitt,Toronto

Chief Executive & National President MichaelConway,Toronto

Chair — Taxation BarryGorman,AtlanticProvinces

Chair — Corporate Governance & Internal Controls LisaDorian,Vancouver

Chair — Capital Markets BillRoss,Toronto

Chair — Pensions PeterDonovan,Toronto

Chair — Private Company Issues JamesSaretsky,Calgary

Chair — Information Technology TimothySpielman,Calgary

IssuEs And polICIEs AdvIsoRy CommIttEE (IpAC)

2009-2010 IPAC contributors and task force members:

BobAngel,Toronto

BruceBailey,Toronto

PeterBallachey,Vancouver

AnneBurpee,Toronto

NigelByars,Toronto

GregBlunden,AtlanticProvinces

MichaelBoychuk,Québec

WayneBraun,Calgary

WilliamBushett,GrantThornton

RodButcher,RyanULC

LarryCooper,Toronto

BevDavies,Winnipeg

MarcDiamant,Toronto

PeterEffer,Toronto

JamesFergusson,Calgary

NormFerguson,Edmonton

JohnForester,Toronto

DennisFortnum,KPMG

SonjiaJohansen,Regina

NataliaKochetova-Kozloski,AtlanticProvinces

NareshKoshla,Toronto

LawrenceKryzanowski,Québec

NancyLala,Toronto

ShariLaubenstein,Calgary

HughLindsay,Vancouver

WilliamMacKenzie,Calgary

MarcMalouin,Québec

TimothyMcGillicuddy,Edmonton

FlorianMeyer,Toronto

TomPahapill,SouthernGoldenHorseshoe

StanPasternak,Toronto

SergePharand,Québec

DarrenSchrader,Vancouver

GrantSmith,NationalCapitalRegion

BradSutherland,Toronto

DarlaSycamore,Toronto

DanaThiessen,Winnipeg

GerryWahl,Vancouver

JohnWeerdenburg,NationalCapitalRegion

DavidWood,AtlanticProvinces

TimothyWright,Toronto

TimZahavich,SouthernGoldenHorseshoe

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Chair DanleyYip,Vancouver

BradBardua,Vancouver

RogerBissoondatt,Vancouver

FabianaChubbs,Vancouver

FrankHunaus,Vancouver

SharonHunt,Vancouver

NeilHummel,Vancouver

DouglasKing,Vancouver

DanKo,Vancouver

FrederickMetcalfe,Vancouver

IssaNakhleh,Vancouver

LouisO’Brien,NationalCapitalRegion(Ottawa2011ConferenceChair)

GregPedersen,Vancouver

JeffShickele,Vancouver

MaxvonTrebra,Vancouver

CliffTruax,Toronto

AlanWong,Vancouver

CherylYaremko,Vancouver

vICtoRIA 2010 ConFEREnCE CommIttEE

Chair VictorWells,SouthernGoldenHorseshoe

Vice Chair TyroneCotie,AtlanticProvinces

Vice Chair SeanCarleton,Calgary

CommIttEE on CoRpoRAtE REpoRtIng (CCR)

NicoleArchibald,SouthwesternOntario

JoanneBoyes,Regina

KarynBrooks,Québec

AnneBurpee,Toronto

SusanCampbell,Toronto

FabianaChubbs,Vancouver

MichaelConway,Toronto

WilliamCromb,Calgary

FrankD’Andrea

TimDeacon,Toronto

RobertEisner,Regina

BrianFielder,Toronto

CarolynGraham,Edmonton

GordonHeard,SouthernGoldenHorseshoe

EdwardJonasson,Toronto

SujeetKini,SouthernGoldenHorseshoe

NancyLala,Toronto

MelanieLitoski,Calgary

CarolLyons,Toronto

IanMacNair,Toronto

PhilipMaguire,Toronto

MarcMalouin,Québec

GlennMenuz,Calgary

LucioMilanovich,Toronto

JohnMockler,SouthwesternOntario

NeilRoberston,Calgary

PamelaSteer,Toronto

DebbieStein,Calgary

KathyStevenson,Vancouver

DarlaSycamore,Toronto

WinsonTang,Calgary

LineTrudeau,SouthernGoldenHorseshoe

MarkWalsh,Toronto

JohnWeerdenburg,NationalCapitalRegion

CherylYaremko,Vancouver

TimZahavich,SouthernGoldenHorseshoe

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the Canadian Financial Executives Research Foundation (CFERF)

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

Board of Trustees

Chair BarryGorman,AtlanticProvinces

Vice Chair, Research AlfredBlack,Winnipeg(R)(A) Executive Director RamonaDzinkowski(R)(A) Chief Executive & National President MichaelConway,Toronto(A) Secretary & CFO of FEI Canada LineTrudeau,SouthernGoldenHorseshoe(A) Chair, Audit & Finance MarkWalsh,Toronto(A)

Directors-at-Large

TomEvans,SouthernGoldenHorseshoe(A)

WilliamHewitt,Toronto(A)

LawrenceKryzanowski,Québec(R)

NancyLala,Toronto(R)

PerMokkelbost,Toronto(R)

MassoodOroomchi,Toronto(A)

GeoffreyPoitras,Vancouver(R)

DarlaSycamore,Toronto(R)(A)

VictorWells,SouthernGoldenHorseshoe(A)

(A=Audit&FinanceCommittee)

(R=ResearchStudiesCommittee)

26

BryanAlbo

DarrylBergman

RichardBirmingham

JayBiskupski

KarynBrooks*

JosephBrown

KentCarson

DenisChabot

LaurentCharron

MichaelConway

TyroneCotie

GordonCurrie

DwayneDahl

RobertDietrich

MichaelDoolan

ThomasEvans

NormFerguson

JamesFergusson

PhilipFilippopoulos

DavidGarofalo

PierreGaussiran

BarryGorman

WilliamGullage

CarlHartigan

RayHawrelak

WilliamHewitt

RickHoffman

AlbertJones

WilliamKeen

HanifLadha

DaleLawr

GregLohnes

RickLow

MichaelMakinson

MaryMartin

BrianMcAskill

CarlMcMurray

GlennMenuz

DouglasProll

MichaelPtasznik

EdwardReid

GregReiser

GrantRing

RobertRollwagen

BillRoss

RaviRupnarain

SivaSivarajah

JohnSteen

KathyStevenson

DennisTerry

JoyThomas

LineTrudeau

DouglasUrch

GerryWagner

MarkWalsh

IanWalton

BruceWest

CoreyZahn

*KarynBrooksgenerouslydonatedheroutgoingChairgifttoCFERF

we greatly acknowledge the contributions of our donors:

27

nAtIonAl stRAtEgIC pARtnERsTHANK YOu TO OuR 2009-2010 NATIONAL STRATEGIC PARTNERS FOR THEIR ONGOING SuPPORT

29

170 university Ave., suite 1201toronto, ontario m5h 3b3

416.366.30071.866.677.3007

www.feicanada.org

Atlantic Provinces

Québec

National Capital Region

Toronto

Southern Golden Horseshoe

Southwestern Ontario

Winnipeg

Regina

Edmonton

Calgary

Vancouver

FEI CAnAdA ChAptERs

CAnAdA’s pREEmInEnt AssoCIAtIon ConnECtIng FInAnCIAl ExECutIvEs thRough nEtwoRkIng knowlEdgE, AdvoCACy And EthICAl lEAdERshIp

FEI Canada Annual Report 2010

Documents

Transcript of FEI Canada Annual Report 2010