The Financial Management Institute of Canada Fredericton Chapter. Fredericton Chapter P.O. Box 153 Fredericton, NB E3B 1B0
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1 The Financial Management Institute of Canada Fredericton Chapter Sharing Best Practices in Managing Public Sector Resources Fredericton Chapter P.O. Box 153 Fredericton, NB E3B 1B0 ANNUAL REPORT YEAR ENDED 30 JUNE September 2010
2 TABLE OF CONTENTS Board of Directors.. 2 Committees President s Report Program Committee Report Program Events Statement of Responsibility... 7 Management Discussion and Analysis Auditor s Report Statement of Financial Position Statement of Operations and Changes in Net Assets 10 Notes to the Financial Statements Budget Chapter Constitution
3 BOARD OF DIRECTORS President Shawn Johnson Michael Wilkins Past President Michael Wilkins Christine Robichaud 1 st Vice-President Guy Richard Shawn Johnson 2 nd Vice-President Christine Robichaud Vacant Secretary Cindy Levesque Melissa Reynolds Treasurer Mylène Chiasson Mylène Chiasson Marketing Director Heather Paisley Heather Paisley Director Pat Tozer Ali Ferris Director Elspeth Lemon Rodney Chase Director Ali Ferris Heather Cote Director Mary McDonald Pat Tozer Director Vacant Vacant COMMITTEES (2009/10) PROGRAM COMMITTEE: NOMINATING COMMITTEE: STRATEGIC PLANNING COMMITTEE: Shawn Johnson (chair) Rodney Chase Heather Paisley Christine Robichaud (chair) Michael Wilkins Michael Wilkins (chair) Christine Robichaud Christine Robichaud Michael Wilkins 2
4 PRESIDENT S REPORT During the past year, we awarded our fmi*igf -Fredericton Scholarship, an annual $500 award. The recipient was Claudia Côté, step-daughter of Heather Côté from the Royal Canadian Mounted Police. We are now accepting applications for the scholarship. In February, Shawn Johnson (Vice-President), Heather Paisley (Marketing Director) and I attended a meeting in Halifax that was aimed at strengthening our relationships with the three other Atlantic Chapters. We discussed various issues, including strategic planning, membership, and potential event topics. In the area of professional development, we hosted 3 luncheons, 2 breakfast sessions and a 2 half day PD events. I would like to thank the Certified General Accountants for sponsoring our half day session in November. Al Thomas from the Office of the Auditor General won our annual membership participation award. The $1,000 award helped defray the costs of attending PSMW 2010 in Halifax. The Upcoming Year The new Board of Directors is currently planning the schedule of events. Shawn Johnson will be assuming the role of President of the Fredericton Chapter. The new board members for 10/11 include: Guy Richard from the Department of Education, Cindy Levesque from the RCMP, Elspeth Lemon from the Department of Transportation and Mary McDonald from the Department of Fisheries. I would also like to take this opportunity to thank those who are leaving the board: Rodney Chase, Heather Côté and Melissa Reynolds. Their contribution to the Chapter was much appreciated. Our chapter is also represented on the national board by Yvonne Samson from the Department of Local Government serving as Liaison East Director. Our Members I would like to close by thanking our members for their participation in our organization over the last year. With your enthusiasm we have had a successful year and we look forward to your support as we enter a new year. Our members have been and will continue to be the key to our success and so I urge you to take advantage of the local chapter by not only participating but by providing feedback to our Directors on how we can serve you better. Michael Wilkins Chapter President,
5 PROGRAM COMMITTEE REPORT The Program Committee once again had a successful year. Shawn Johnson chaired the program committee. In addition to the chair, the following board members participated on the committee: Christine Robichaud, Mike Wilkins, Rodney Chase and Heather Paisley. I would like to thank the committee, as well as members of the Executive, for their hard work, dedication and support, which made organizing the 2009/2010 program of events a positive experience. Continuing the focus of previous years, our goal was to provide an exceptional program that brought our members together to hear and interact with dynamic professionals speaking on current and interesting topics. Our five speaker series breakfasts and luncheons averaged 42 attendees per session. We held 2 half day professional development session, one in December on Information Management Personal and Professional Perspectives with 26 attendees with a healthy break sponsored by CGA New Brunswick and the second was in April on Planning a Healthy Retirement with 20 attendees. General Meeting Our General Meeting was held in May at the Crowne Plaza Hotel. Members Tell Us This year we continued to monitor the success of speaker breakfasts, luncheons and Professional Development Days by providing feedback forms to all our attendees. In general, the feedback received on our speakers and their presentations was positive. Feedback is very important to the Program Committee as it helps us make decisions relating to potential topics, speakers, and venues for our events. Making a Difference Within the Program Committee and throughout the Chapter membership, there is confidence in our ability to bring members the best value for money in seminars and professional development. We offer members regular events and are able to attract top quality speakers from all levels of government, and also the academic and business communities. Our line-up for will continue with this tradition. The Chapter's profile is included in fmi*igf National publications and we have extensive information on the fmi*igf National's home page on the Internet at Our member appreciation award towards the cost of attending the national Public Sector Management Workshop is designed to attract members to 4
6 our events on a regular basis. Members attending the most events have the greatest chance of winning the award in our random draw. Not only do members get a break on event fees, they also are invited to the Annual General Meeting in September and to the Annual Meeting in May. Issues of the fmi*igf Journal (a national publication) and discounts on registration fees for the fmi*igf Professional Development Week and the fmi*igf Public Sector Management Workshop are also included. That was quite a return on a mere $32.25 investment! In closing, on behalf of the Program Committee, we would like to thank Chapter members and the Board for their support this year. Shawn Johnson Chapter Vice President and Program Committee Chair
7 PROGRAM EVENTS October 2009 November 2009 December 2009 January 2010 February 2010 April 2010 May 2010 Annual General Meeting Monique Clairoux, Senior Director of the Internal Audit Capacity Building and Community Development Sector, Office of the Comptroller General Honorable Greg Byrne, Q.C. Minister, Department of Finance, Province of New Brunswick Peter Gee, Senior Consultant, Xwave Payman Hakimian, Senior Technological Crime Forensic Analyst, RCMP Atlantic Region Norma Hubley, Senior Director, Transformation Management, Capacity Building and Community Development Sector, Office of the Comptroller General Louise Lemon, Deputy Minister, Department of Supply and Services Françoise Beaulieu, Consultant General Meeting - Darren Murphy VP Finance, NB Power 6
8 STATEMENT OF RESPONSIBILITY The financial statements for the year ended 30 June 2010 contained in the annual report have been prepared by the Treasurer of the Chapter. The financial statements include the Statement of Financial Position, Statement of Operations and Changes in Net Assets and Notes to the Financial Statements. Financial statement integrity and objectivity is the responsibility of the Chapter s Board of Directors. To help fulfill this responsibility, an accounting system and related controls are established and maintained to provide reasonable assurance that transactions are properly authorized, executed, and reported. The financial statements are prepared in accordance with generally accepted accounting principles. The Chapter s auditor has examined these financial statements, and expressed her opinion thereon in the accompanying report. These financial statements have been approved by the Board of Directors of the Fredericton Chapter. Mylène Chiasson Chapter Treasurer September 30, 2010 MANAGEMENT DISCUSSION AND ANALYSIS FISCAL YEAR The following comments explain the manner in which the financial resources of the Fredericton Chapter were managed during Financial Analysis The financial statements provide an overview of the revenues and expenditures for the year. The budget was prepared with 3 objectives: (1) to provide our membership with a professional development program, (2) to enhance and further the Chapter s involvement at the national level, and (3) to provide for ongoing administrative expenses. 7
9 AUDITOR S REPORT To the Members of The Financial Management Institute of Canada Fredericton Chapter I have audited the statement of financial position of The Financial Management Institute of Canada, Fredericton Chapter, as at 30 June 2010, and the statements of operations and changes in net assets for the year then ended. These financial statements are the responsibility of the Chapter's Board of Directors. My responsibility is to express an opinion on these financial statements based on my audit. I conducted my audit in accordance with Canadian generally accepted auditing standards. Those standards require that I plan and perform an audit to obtain reasonable assurance whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by the Chapter's Board of Directors, as well as evaluating the overall financial statement presentation. In common with many non-profit organizations, the completeness of revenue is not susceptible to satisfactory audit verification. Accordingly, my verification of the revenue was limited to the amounts recorded in the records of the organization and I was not able to determine whether any adjustments might be necessary to revenues, excess of revenues over expenses, assets and net assets. In my opinion, except for the effect of adjustments, if any, which I might have determined to be necessary had I been able to satisfy myself concerning the completeness of the revenues referred to in the preceding paragraph, these financial statements present fairly, in all material respects, the financial position of the Chapter as at 30 June 2010 and the results of its operations for the year then ended in accordance with Canadian generally accepted accounting principles. Christine Wood Chartered Accountant Fredericton, NB September 24,
10 THE FMI FREDERICTON CHAPTER STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2010 ASSETS Current Cash $1,185 $1,590 Accounts receivable 2,998 3,090 Accrued interest receivable Short term investments (note 3) 13,532 13,129 Equipment Less : accumulated depreciation (851) (851) $17,974 $18,092 LIABILITIES AND MEMBERS' EQUITY Current Accounts payable $0 $85 Deferred membership fees $161 $149 Net Assets $17,813 $17,943 Approved on behalf of the Board Shawn Johnson, President Mylène Chiasson, Treasurer $17,974 $18,092 9
11 THE FMI FREDERICTON CHAPTER STATEMENT OF OPERATIONS AND CHANGES IN NET ASSETS FOR THE YEAR ENDED 30 JUNE Budget Actual Actual Revenues Membership fees $3,709 $3,483 $3,612 Program events 1,905 3,020 2,579 PD Days 5,200 4,250 3,460 Interest Chapter Investment Fund 1,640 4,426 4,000 12,829 15,558 14,068 Expenditures Membership fees to FMI Canada 2,000 1,865 1,915 Program events 2,415 3,127 3,279 PD Days 5,100 1,943 2,104 Bursary Membership appreciation 1,000 1,000 1,000 PSMW / PD Week 500 4,282 0 PSMW 2012 Bid 0 0 2,006 General meetings 800 1,224 1,439 Administration 985 1,747 1,318 Depreciation (Note 2c) ,300 15,688 13,561 Operating Surplus (Deficit) for the year (471) (130) 507 Net Assets Balance beginning of year 17,943 17,943 17,436 Balance end of year $17,472 $17,813 $17,943 10
12 THE FMI FREDERICTON CHAPTER NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE Organizational Status The Financial Management Institute of Canada, Fredericton Chapter is a nonprofit organization for the purpose of sharing best practices in managing public sector resources. The primary focus is on education and professional development. 2. Accounting Policies a. Contributed Services The activities of the Chapter are dependent on the voluntary services of its members. Since these services are not normally purchased by the Chapter and because of difficulty in determining their fair market value, contributed services are not recognized in these financial statements. b. Accrual Accounting These financial statements are prepared on an accrual basis whereby revenues and expenditures are allocated to the year in which they are earned or incurred irrespective of the date on which the related cash transactions are effected. c. Capital Assets Amortization of Equipment is on a straight line basis at a rate of 20% per year. 3. Short Term Investments Investments consist of redeemable term deposit certificates issued by York Credit Union Limited. 1.6% due 22 September , % due 23 October ,144 $13, Chapter Investment Fund The Chapter Investment Fund was created by FMI National in 2004 to reserve profits of the annual PSMW for reinvestment into the chapters. Funds are to be used to increase FMI visibility and to celebrate special events. 5. STATEMENT OF CASH FLOWS A Statement of Cash Flows has not been prepared because it would not provide additional useful information. 11
13 BUDGET The upcoming year s budget has been prepared with three objectives in mind: (1) to provide our membership with professional development program, (2) to enhance and further the Chapter s involvement at the national level, and (3) to provide for ongoing administrative expenses. Highlights are: The total annual fee per member remains at $32.25, with membership estimated at 115 members. Three breakfast seminars have been budgeted, with a cost of $20 per member and $30 per non-member to offset associated costs. Two half day professional development events are planned The annual general meeting is planned for September 2010 and the general meeting is planned for May $500 is budgeted for granting of a bursary Budget Actual Revenues Membership fees $ 3,386 $ 3,483 Program events 2,070 3,020 PD Days 5,500 4,250 Chapter Investment Fund 6,500 4,426 Interest ,831 15,558 Expenditures Membership fees to FMI Canada 1,831 1,865 Program events 2,099 3,127 PD Days 2,285 1,943 Bursary Membership appreciation 1,000 1,000 PSMW / PD Week 6,500 4,282 General meetings 1,185 1,224 Administration 2,785 1,747 18,185 15,688 Operating Surplus (Deficit) for the year $ (354) $ (130) 12
14 CONSTITUTION ARTICLE 1.0 NAME 1.1 The name shall be The Financial Management Institute of Canada Fredericton Chapter, hereinafter referred to as the Chapter. ARTICLE 2.0 OBJECTIVE 2.1 The objectives of the Chapter shall be: a) to promote understanding of the financial management practices of the public sector, b) to inform members of developments in public sector financial practices, c) to provide and facilitate training and development programs in financial management, through meetings, seminars, lectures, articles, news bulletins and other suitable means, d) to promote the professional and progressive image of the public sector financial community, e) to provide a forum for communication and contacts within the financial community, and f) to encourage and facilitate recognition of the financial function as a key component of corporate management. ARTICLE 3.0 MEMBERSHIP 3.1 Membership in the Chapter is open to persons interested in public sector financial management practices. 3.2 There shall be two classes of membership: a) regular membership individuals who have paid annual fees and have voting rights. b) honourary membership individuals who are not required to pay annual membership dues. 3.3 Qualifications for each class of membership shall be defined, from time to time, by the Chapter Board of Directors and be subject to ratification at a general meeting. 13
15 3.4 The membership fee structure shall be determined by the Board of Directors in conjunction with the National Executive Committee of the FMI National and any changes must be ratified at a general meeting of the Chapter. Membership fees will be paid in full to the Chapter, who will then remit the National FMI portion to Ottawa along with the individual membership forms. 3.5 Any member in good standing may resign by notifying the Chapter Secretary in writing. ARTICLE 4.0 CHAPTER FISCAL YEAR 4.1 The Chapter fiscal year end shall be June 30. ARTICLE 5.0 CHAPTER BOARD OF DIRECTORS 5.1 The Board of Directors of the Chapter shall consist of at least 6 but not more than 12 regular members who shall be elected for a one year term at a general meeting in June of each year. The term for each officer and director shall coincide with the fiscal year of the Chapter. The immediate past president will automatically be a member of the Board of Directors. 5.2 Immediately following the election of directors, the Chapter shall then elect, from the directors, the following officers: (a) President (b) 1 st Vice-President (c) 2 nd Vice-President (d) Secretary (e) Treasurer (f) Marketing Director 5.3 The Board of Directors shall co-ordinate all routine business of the Chapter, act in emergencies, fill vacancies, determine the frequency of meetings, appoint committees (as required), and approve topics for meetings and guest speakers. 5.4 Meetings of the Chapter Board shall be held at the call of the President. A quorum shall consist of one-half of the members of the Board but shall in no case consist of less than four persons. 14
16 5.5 A decision of the majority of board members present and constituting a quorum is a decision of the Chapter Board. ARTICLE NOMINATING COMMITTEE The Nominating Committee shall be chaired by the immediate Past president of the Chapter and shall consist of the chairperson and at least two other regular members of the Chapter selected by the chairperson. The selection of Nominating Committee members is subject to the approval of the Chapter Board. If the immediate past president is not able to chair the Nominating Committee, then the Chapter Board shall appoint a chairperson. The Nominating Committee shall provide to Chapter members at the general meeting of the Chapter in June, called for that purpose, their recommendations for members and officers for the Board of Directors. ARTICLE 7.0 DUTIES OF OFFICERS 7.1 The President shall be the Chief Executive Officer of the Chapter and shall preside at all meetings of the Chapter. Other duties shall include general chapter liaison with FMI National in Ottawa. 7.2 In the absence of the President, the duties of the President shall be performed by the 1 st Vice-President. The 1 st and 2 nd Vice-Presidents shall co-chair the Program Committee. 7.3 The Secretary shall keep minutes of meetings of the Chapter, shall conduct the correspondence of the Chapter and generally carry out the instructions of the Chapter Board of Directors related to these duties. 15
17 The Treasurer shall collect money, issue receipts, pay expenses, operate a bank account and maintain a set of accounting records for the Chapter, in accordance with FMI Chapter Guidelines. The Marketing Director shall be responsible for identifying and developing opportunities for increasing the membership of the Chapter and establishing relationships with other related professional organizations. ARTICLE 8.0 ANNUAL AND GENERAL MEETINGS 8.1 The Board shall call an annual meeting of the Chapter within 90 days of the end of the fiscal year, and call general meetings from time to time throughout the year. 8.2 A general meeting shall be called if requested in writing by at least 20% of the regular members of the chapter. 8.3 The annual meeting shall be held at a time and place determined by the Board of Directors for the purpose of hearing reports from the Board of Directors, receiving the audited financial statements of the Chapter and for the consideration of any other business of the Chapter 8.4 Notices in writing of annual or general meetings setting out the purposes of such meetings shall be sent to all members of the Chapter at least 10 days prior to the date of each such meeting. 8.5 No error or omission in notice for a meeting of directors shall invalidate such meetings; and any director may at any time waive notice of any such meeting; and may ratify and approve of any or all proceedings taken or had thereat. 8.6 The rules contained in "Robert's Rules of Order" shall govern the conduct of all meetings of the Fredericton Chapter. ARTICLE 9.0 CONSTITUTIONAL AMENDMENTS 9.1 Any motion to amend the constitution must be circulated by the Chapter Secretary to all regular members in writing at least 10 days before the general meeting where they are to be considered and voted upon. 16
18 ARTICLE 10.0 AUDITED FINANCIAL STATEMENTS 10.1 The Board of Directors shall appoint a Chapter member who shall audit the accounts of the Chapter. The auditor shall submit the audited financial statements to the Chapter Treasurer before the date of the annual general meeting The audited financial statements shall be presented to the members at the annual general meeting or upon specific request by a member. This constitution was adopted by the Chapter on the 19th day of June,
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