ANNUAL
REPORT 2014
CONTENTS
Message from the President and the Chair . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Vision and Mission Statements. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Statement of Management Responsibility. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Management’s Discussion and Analysis. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
2013-2014 Results. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
20
Summarized Financial Statements. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
28
Member, Student and Volunteer Information. . . . . . . . . . . . . . . . . . . . . . . . . . .
32
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MESSAGE FROM THE PRESIDENT AND THE CHAIR
In 1879, our province’s accounting professionals banded
together to launch The Institute of Chartered Accountants
of Ontario, Canada’s first regulatory body for accountants.
There have been many highlights and changes for our
profession in the decades since then, but 2013-14 has to
stand out as a major watershed year.
Last year, work that commenced back in early 2011 finally
came to fruition as we took dramatic steps to achieve full
unification of the profession. Among the major events:
•
Rod Barr, FCPA, FCA
Rob Scullion, FCPA, FCA
•
In September 2013, The Institute of Chartered Accountants of Ontario adopted the Chartered
Professional Accountants of Ontario name; and
•
In June 2014, the memberships of both CPA Ontario and the Certified General Accountants of Ontario
voted to unify and a Second Unification Agreement was signed. All of Ontario’s CGAs became CPA,
CGAs and members of CPA Ontario in early July.
Unification is now in progress, if not completely accomplished, in every Canadian province and territory as
well as at the federal level and in Bermuda. We started with 40 accounting bodies and are well on our way
to rationalizing them down to 14. More than 185,000 CPAs, including 80,000-plus in Ontario, now speak with
one voice and will work together to further the interests of the public, the profession and our members.
It’s Not Over Yet
While much has been accomplished, there is still much to do to ensure that unification not only occurs but
also succeeds across the board.
For example, for the past year, our Learning Stream staff have been working diligently with representatives
from CPA Canada, as well as education experts from the three legacy bodies from across Canada, to ensure
that the fall 2014 Ontario launch of our new CPA education program goes smoothly.
Drawing from the best of the legacy CA, CMA and CGA programs, the CPA Professional Education Program
(PEP) is as rigorous but more flexible, especially for career changers and the internationally trained. PEP
meets or exceeds all International Federation of Accountants (IFAC) standards for education, assessment
and practical experience.
MESSAGE FROM THE PRESIDENT AND THE CHAIR
In June 2013, our members and the members of the
Certified Management Accountants of Ontario voted
to unify, and we began work on a First Unification
Agreement that culminated with all of Ontario’s CMAs
joining our organization as CPA, CMAs in April 2014;
There are two streams into the Professional Education Program (PEP): the university accredited pathway
and the CPA Prerequisite Education Program (PREP), the latter of which is designed for those who have an
undergraduate degree, regardless of the discipline, but lack some or all of the prerequisite courses required
for admission to PEP.
Interest in PEP and PREP is high among students and the programs are certain to appeal to mid-life career
changers and internationally trained professionals. As a result, we expect our education staff to be very busy
for the next few years as they ramp up the CPA program. Simultaneously, they will also bring the existing CA,
CMA and CGA programs to a conclusion that accommodates the needs of the many students who were in
the process of achieving one of the legacy designations when unification occurred.
To top things off, our education people are also busy preparing for a test run for the Advanced Certificate
in Accounting and Finance (ACAF), a different pathway for those seeking accounting careers without
achieving the CPA designation. Designed to ensure that we can continue to serve the full market for
accounting professionals, we expect to have the ACAF program up and running for the fall of 2015.
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The experiences of the Learning Stream team have been mirrored across our organization as people
continued to handle all of the usual day-to-day business, while also juggling new responsibilities related to
unification and the integration of our operations with CMA Ontario and CGA Ontario.
Whether they’re working at CPA Ontario’s Bloor Street office, at CMA Ontario’s York Street location or
at CGA Ontario’s Eglinton Avenue office, people in all three organizations have been busy learning about
each other and what we all do on a daily basis. It has been a revelation at times to discover how three
different organizations can have both similar and, at times, widely diverse approaches to running what are
fundamentally similar operations devoted to recruiting, qualifying and regulating designated accountants.
MESSAGE FROM THE PRESIDENT AND THE CHAIR
There is so much that we are learning from each other and, in turn, we think that will help us create an
entirely new CPA Ontario – one that builds on the legacy of the three existing organizations in such a way as
to be stronger than the individual strengths of the bodies it will replace.
While we’ll be working to combine operations for much of 2014-15, the final step on this journey will
be asking the Province of Ontario to introduce a new Chartered Professional Accountants Act that will
officially launch a renewed CPA Ontario. That body will have all of the members, assets and resources of
the preceding three, with a mandate to serve and protect the public, as well as all of Ontario’s recognized
designated accountants.
Frankly, having seen what we can accomplish when working with CGA Ontario and CMA Ontario, we cannot
wait to see the new unified CPA Ontario in action.
Thank You
The next time you pick up CPA Ontario’s Annual Report, this section will contain a message from both a new
Chair and a new President & CEO. We’re sure that they will have exciting things to report to the Members
and our other stakeholders.
We would like to take a moment to thank all of the people who have helped us during this important and
hectic time for both our organization and our profession. At the risk of missing some people – we apologize
if we inadvertently do – we’d like to thank the Council and staff of CPA Ontario and their counterparts at
CGA Ontario and CMA Ontario.
We’d especially like to thank all three memberships for voting to implement unification. We know that not
all members were supportive of this change, and we recognize and respect those differing opinions. Both of
us had many discussions with members of all types and with varying views from right across the province. It
was heartening to see how respectful and informative those interactions proved to be for all parties, as well
as the passion that all members have for the accounting profession.
We do believe that, with a large part of the unification journey successfully completed, now is the
appropriate time for all of us to move onto even bigger and better things. We need to marshal the increased
resources at our collective disposal to firmly establish the Chartered Professional Accountant designation as
Canada’s pre-eminent accounting designation and business credential.
The journey is not complete, but working together in the future, there seems to be no limit to what we can
accomplish for the public good and the profession as a whole. Let’s make the next part of that long-term
voyage a priority in 2014-15.
R.N. (Rod) Barr, FCPA, FCA
President & CEO
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Robert C. Scullion, FCPA, FCA
Chair
VISION FOR CANADA’S CPA PROFESSION
To be the pre-eminent, internationally recognized Canadian accounting designation and business credential
that best protects and serves the public interest.
MISSION OF
CHARTERED PROFESSIONAL ACCOUNTANTS OF ONTARIO
Guiding Principles
•
Set and enforce the highest standards of qualification, education, experience and practice
•
Promote professional excellence through developing, monitoring and enforcing the highest standards of
competence and ethical conduct
•
Encourage Members to enhance their capabilities continually
•
Respond to Members’ ongoing professional needs
•
Promote the attractiveness of the profession to the best students and help them become Chartered
Professional Accountants
•
Serve as the primary voice of the accounting profession in Ontario
VISION, VALUE AND MISSION STATEMENTS
Our mission is to foster public confidence in the CPA profession by acting in the public interest and helping
our members excel.
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STATEMENT OF MANAGEMENT RESPONSIBILITY
The financial statements and all financial and other information contained in this Annual Report are the
responsibility of CPA Ontario’s management.
STATEMENT OF MANAGEMENT RESPONSIBILITY
Management has prepared the financial statements in accordance with Canadian accounting standards for
not-for-profit organizations, in accordance with Part III of the CPA Canada Handbook, adopted on March 1,
2012 with a transition date of March 1, 2011, and applied best estimates and judgments based on currently
available information. The significant accounting policies are described in note 1 to the financial statements.
There were no accounting policy changes made during the fiscal period. Financial information contained in
this Annual Report is consistent with that shown in the financial statements.
Summarized Financial Statements are included in this Annual Report. They, and the other financial and nonfinancial data herein, are intended to fulfill management’s reporting responsibilities, through a balance of
both historic and forward-looking information. Members are invited to view CPA Ontario’s complete financial
statements, from which the Summarized Financial Statements are drawn. These can be viewed in the
Resources/Publications section of CPA Ontario’s website at www.cpaontario.ca, after logging in.
The MD&A has been prepared in a manner consistent with the spirit and broad framework articulated by
CPA Canada’s Canadian Performance Reporting Initiative Board in its document Management’s Discussion
And Analysis: Guidance On Preparation And Disclosure. The MD&A includes forward-looking information.
Actual results in the future may differ materially from this information, however, because future events and
circumstances are not always within management’s control and may not occur as expected.
Management is responsible for the integrity and reliability of financial information, and has established
systems of internal procedural and accounting controls designed to achieve this. These systems also
reasonably ensure that assets are safeguarded from loss or unauthorized use.
The Council is responsible for ensuring that management fulfills its responsibilities for financial reporting
and internal control. The Council carries out this responsibility principally through the Audit Committee,
which is comprised of Council members not sitting on the Management Advisory Committee, and includes
two public representatives. The Audit Committee of Council meets with the auditors, both with and without
management present, to review the activities of each, as well as to review the financial statements and
MD&A, to report to the Council thereon.
Welch LLP was appointed by the Members entitled to vote at the 2013 Annual Meeting as CPA Ontario’s
auditor to express its opinion on the fair presentation of the 2014 financial statements. Welch LLP had
full and unrestricted access to the Audit Committee and management to discuss matters pertaining to its
audit. The Audit Committee annually undertakes a formal review of the auditor’s performance and makes
recommendations to the Council with respect to its reappointment for the coming year.
Nora V. Murrant, FCPA, FCA, FCBV
Executive Vice-President & Chief Operating Officer
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MANAGEMENT’S DISCUSSION AND ANALYSIS
CPA Ontario’s strategic outlook for fiscal 2015, as well as its financial position, results of operations, and cash
flows for the 13-month period ended March 31, 2014, are discussed in the following Management’s Discussion
and Analysis, which should be read in conjunction with the summarized audited financial statements for the
13 months ended March 31, 2014
The Audit Committee reviewed Management’s Discussion and Analysis along with the other financial
information presented in this Annual Report.
Overview
Chartered Professional Accountants of Ontario (CPA Ontario) is the registered business name of The
Institute of Chartered Accountants of Ontario. The Institute of Chartered Accountants of Ontario was
established in 1879 and incorporated in 1883 under An Act to Incorporate The Institute of Chartered
Accountants of Ontario by the Legislative Assembly of the Province of Ontario, continued in 1956 under the
Chartered Accountants Act, 1956 and in 2010 via the Chartered Accountants Act, 2010.
As well as managing the unique issues affecting CPAs in Ontario, CPA Ontario’s mandate is to work with
the other provincial Chartered Professional Accountant bodies and the Chartered Professional Accountants
of Canada (CPA Canada) to develop national policies for critical profession-wide functions such as public
interest and integrity; effective leadership and strategic planning for the profession; education and
qualification; standard setting; and communications.
For the past three years, the leadership of the accounting profession at the national and provincial levels has
been occupied with the unification of the CA, CMA and CGA organizations.
CPA Canada was established effective January 1, 2013, to support provincial accounting bodies that have
unified, and all those that will unify. The initial members of CPA Canada were the Canadian Institute of
Chartered Accountants and CMA Canada. CGA Canada is scheduled to join in late 2014. CPA Ontario and
CPA Quebec were admitted on January 15, 2013 as the first provincial body members of CPA Canada, and
other provincial bodies (and their members) will join as they complete their process to become a CPA body.
SUMMARIZED FINANCIAL STATEMENTS
CPA Ontario is the qualifying and regulatory body of Ontario’s Chartered Professional Accountants and CPA
Students. CPA Ontario also provides many professional support services and represents the interests of its
Members, Students and Firms.
CPA Ontario Members have been allowed to use the CPA designation since November 1, 2012 and the use of
CPA, in conjunction with the Member’s legacy designation, became mandatory on July 1, 2013.
On April 1, 2014, CPA Ontario signed a First Unification Agreement with CMA Ontario and accepted all
members of CMA Ontario into membership of CPA Ontario. Following from a favourable vote by members of
CPA Ontario and CGA Ontario on June 18, a Second Unification Agreement was executed with CGA Ontario
on June 23, 2014 and members of CGA Ontario became Members of CPA Ontario on July 2, 2014. As a
result of these agreements, CPA Ontario will have sole responsibility for governing and regulating, as well as
promoting the interests of the accounting profession in Ontario.
Upon unification, all three organizations will continue as one body – CPA Ontario – and that body will
possess all of the assets, rights and liabilities of the predecessor organizations. Thereafter, CPA Ontario, CMA
Ontario and CGA Ontario will converge their operations in preparation for full unification.
CPA Ontario, CMA Ontario and CGA Ontario are all statutory corporations created by the province of
Ontario and governed by their own statutes. Accordingly, unification can only be finalized by new legislation.
Each legacy body will retain its statutory authority until legislation to create a single body is passed. Prior
to the passage of that legislation, each body will continue to operate and be governed under its existing
legislation, although most activities will be carried out by CPA Ontario.
CPA Ontario is governed by a Council of 20 people: 16 are elected Chartered Professional Accountants
and four are public representatives, appointed by the Lieutenant Governor in Council. CPA Ontario’s
management and executive staff are responsible for the attainment of its strategic goals.
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Each legacy body will be proportionately represented on the Council of CPA Ontario during the transition
phase. Thereafter, Council elections will be open to all CPAs equally, regardless of legacy designation.
Reflecting the relative sizes of the legacy memberships, the current CPA Ontario Council is comprised of:
•
eight CPA, CAs
•
four CPA, CGAs
•
four CPA, CMAs
•
four public representatives
MANAGEMENT’S DISCUSSION AND ANALYSIS
During the next three years, a portion of the Council’s member representatives will be replaced by newly
elected representatives who will serve three-year terms. In years one and two, the terms of three CPA,
CAs, a CPA, CGA and a CPA, CMA will expire. In year three, the terms of the six remaining original Council
members – two from each of the legacy bodies – will expire. All legacy bodies will be represented on CPA
Ontario’s various committees.
Strategic Direction
CPA Ontario’s strategic direction takes into account the national strategy and developments that affect its
position as the Ontario CPA body as well as the current environmental factors affecting CPA Ontario as a
whole and those specifically affecting its many service areas.
In the year to come, CPA Ontario will be putting its efforts toward integrating the operations of the
three legacy bodies. The two-stage unification means that this will be somewhat of a protracted effort.
Recognizing the significant changes that arise from the unification of the profession, the strategies which
underlie the business plan and budget for 2014-15 are the same as those adopted for the current fiscal year,
modified as necessary to reflect the current status of unification. Virtually all of these strategies are long
standing as they form the foundation for this organization.
In this regard, CPA Ontario’s key strategic goals for 2014-15, approved by the Council, are:
•
Ensure public trust and confidence in the CPA profession through establishing, influencing, monitoring
and enforcing high quality accounting, auditing, assurance and ethical standards and practices, and
seeking high, uniform public accounting standards.
•
Ensure that the CPA profession will be established and be seen as pre-eminent in Ontario and in Canada
from the outset.
•
Ensure that the Canadian CPA profession has a significant role in the global profession.
•
Develop and support all Members throughout their professional careers and into retirement. Enhance,
promote and protect the CPA so it is the most valued, internationally recognized Canadian accounting
and finance profession.
•
Ensure organizational effectiveness.
Over the past fiscal period, the unification discussions have been central to CPA Ontario’s activities and
will continue to influence its actions. Once the management of the unified CPA Ontario body is in place, a
strategic direction will be prepared and presented to the Council, enabling management to reinforce the
necessary linkages among long-term strategy, annual business planning and resource allocation.
Key Performance Drivers
CPA Ontario’s success in fulfilling its mission – to foster public confidence in the CPA profession by
acting in the public interest and to help its Members excel – is not measurable in terms of profits or the
creation of equity value, but rather mainly through qualitative, non-financial deliverables. At the same
time, management does have financial stewardship responsibilities, which this MD&A references within
the broader context of achieving CPA Ontario’s strategic goals. Financial indicators help ensure that the
resources entrusted to CPA Ontario are used in an efficient and appropriate manner.
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Fiscal Year-End Change
On October 17, 2013, Council resolved to change CPA Ontario’s year-end from the end of February to March
31 in order to align CPA Ontario’s year-end with that of the national and other provincial CPA bodies. The
financial statements included in this Annual Report present the results for the 13-month fiscal year ended,
and the financial position at March 31, 2014. Comparative results are those of the 12-month fiscal year ended
on February 28, 2013, as previously reported.
Deliverables
As a self-regulating professional body, CPA Ontario’s principal business is maintaining professional standards
and regulating the CPA profession. CPA Ontario seeks to uphold and enhance the value and credibility of the
CPA designation both to its Members and to the clients, employers, regulators and the broad public who rely
upon it. The Council and management recognize that, as the largest provincial CPA body, this organization
must play a central role in bringing national initiatives to life as well as ensuring that the unique issues
impacting CPAs in Ontario are well-managed.
•
a formalized assessment of the current internal and external environmental factors that might affect
those particular business activities,
•
consideration of the impact of participation in national strategic initiatives,
•
analysis of the significant operational changes planned (both continuing and one-time),
•
analysis of the specific implementation risks (as to degree of controllability and risk management
approaches), and
•
selection of criteria for success vis-à-vis performance measures and milestones for key activities.
Having regard to its business plan, management is of the view that CPA Ontario’s planned deliverables were
completed or significantly advanced during the year. More specific comments on fiscal 2013-2014 activities
in key responsibility areas are set out in this Annual Report beginning on page 20, organized under these
major areas of focus:
•
Professional Self-Regulation
•
Lifelong Learning
•
Member Services
•
CPA Profile-Raising
MANAGEMENT’S DISCUSSION AND ANALYSIS
The business plan for each service area of CPA Ontario is supported by:
Financial Performance
The annual budget, which includes capital and working capital requirements, is prepared by management
and reviewed by the Finance Committee, which is a committee of the Council. CPA Ontario’s annual budget
is typically prepared on a break-even basis. Should the budgeted cost of carrying out the planned strategic
initiatives exceed the budgeted revenue in any year, the Council must select between spending cuts (with
resultant activity reductions), Member fee increases in order to arrive at a break-even budget position, or
drawing on the net assets that have been accumulated. CPA Ontario’s financial performance is measured by
comparing actual results for the year to the budget and the prior year.
CPA Ontario’s wide scope of activities spans both its self-regulating and member service mandates. In a
number of activity areas, certain budget lines must be estimated on the basis of typical historical experience
as the level of necessary spending in any year will fluctuate as a result of external influences.
CPA Ontario’s performance in comparison to budget is monitored on an ongoing basis by the Council,
through the Finance Committee. Decisions by management to make expenditures which are unplanned
or at levels which materially depart from budget are reviewed in advance with the Management Advisory
Committee of the Council. When variances from budget exist, the Finance Committee analyzes the variances
and takes action as appropriate.
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Accounting Disclosures
During the year, CPA Ontario did not make any accounting policy changes in response to the introduction of
new accounting standards.
Capability to Deliver Results
MANAGEMENT’S DISCUSSION AND ANALYSIS
Leadership and Human Resources
The President and CEO is responsible for setting CPA Ontario’s vision, championing its strategic direction
and leading its operations. He is supported by a management group, which includes the Executive VicePresident and COO, Vice-President of Learning, Vice-President and Registrar, Vice-President of Standards
Enforcement, Vice-President of Marketing and Communications, and the Vice-President and General
Counsel. Reporting to the management group are 19 directors, each with executive responsibility for a
specific service area. The director group includes 11 Chartered Professional Accountants and two lawyers,
and the other members hold credentials appropriate for their particular area of responsibility. Overall, CPA
Ontario is fully staffed with well-qualified individuals and management does not foresee any difficulty in
maintaining CPA Ontario’s workforce.
Human capital is CPA Ontario’s largest expense item and needs to be deployed in the most effective manner.
It is also necessary to be mindful of the organizational integration that is underway with CGA Ontario and
CMA Ontario. The operation of the combined CPA Ontario will require the talents and experience of the
employees from each of the legacy bodies to maintain continuity. Over the past year, growth and strategic
changes throughout CPA Ontario created the need for a number of new positions. After assessing CPA
Ontario’s existing resourcing and eliminating, replacing or redeploying certain positions to achieve the best
efficacy, management was able to maintain the total number of approved permanent positions at 142, and
the related cost is included in the budget.
In addition to its permanent staff, CPA Ontario relies on several hundred CPAs who volunteer their time to
serve on its various disciplinary and other standing committees and advisory groups, and make possible
both CPA Ontario and District Association programs, and educational and charitable activities. CPA Ontario
also engages a significant number of individuals on a temporary/part time/contract basis, whose services
span activities in professional development, education, communications, practice inspection and standards
enforcement.
Financing Strategy and Liquidity
During fiscal 2014, CPA Ontario generated cash flows from operating activities of $4.4 million while its
financing and investing activities used $3.1 million in cash, resulting in total cash inflows of $1.3 million.
Management believes that cash, cash equivalents and investments, as well as anticipated cash flow from
operations, are sufficient to meet its working capital and capital expenditure requirements.
CPA Ontario’s capital is comprised of net assets invested in land, building and equipment, and unrestricted
net assets.
CPA Ontario has invested in land, building and equipment in order to provide a functional and efficient
environment for staff, volunteers, Members and others. CPA Ontario owns its land and building in Toronto,
and updates and modifies these premises as needed to meet current operating requirements and to
preserve the value of this asset.
With respect to financing its land and building, in January 2005, CPA Ontario entered into an interest rate
swap arrangement with a Canadian chartered bank to eliminate interest rate cash flow risk, through the
balance of the amortization period to January 2015. The financing is in the form of variable rate Bankers’
Acceptances in the principal amount of approximately $0.9 million at March 31, 2014. The debt has a fiveyear term and when combined with the interest rate swap arrangement has an effective interest rate of 6.48
per cent, representing an interest rate guaranteed by the swap of 5.33 per cent combined with a stamping
fee of 1.15 per cent.
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The amount CPA Ontario would have had to pay at March 31, 2014 to unwind the swap arrangement
amounted to $17,000. The annual change in unrealized loss/gain is recorded in the “Operations” section in
the Statement of Revenues and Expenses. For the current year, this amounted to a gain of $68,000.
The Council maintains an unrestricted fund balance sufficient to meet the annual working capital
requirements of CPA Ontario and to meet current and future financing and investing activities. CPA Ontario
is not subject to any external capital requirements, except as noted below.
CPA Ontario’s working capital, in excess of its normal operating needs, is invested in fixed income
investments and Canadian equity instruments. CPA Ontario’s Investment Policy objectives are to mitigate
market risk while at the same time maintaining the purchasing power of the funds. Eligible investments
include: debt instruments issued by (Canadian) governments and respective agencies thereof; debt
instruments of Canadian public corporations; shares issued by Canadian public corporations; or pooled funds
which may invest in any of the above instruments or assets. The amount invested in each type of investment
is based on pre-determined limits and mixes, and minimum rating levels as applicable.
As a result of the 2008 economic downturn, which depressed asset values, CPA Ontario has been making
funding deficiency payments to the defined benefit portion of its staff pension plan. The most recent
valuation of the plan as at February 28, 2014 indicated that the actuarial deficiency/unfunded liability, on
a going concern basis, has improved to $898,000 versus the February 28, 2011 balance of $1,408,000.
The solvency excess of $113,000 recorded at February 28, 2011 had declined, in contrast, to a deficiency of
$678,000. Special funding payments, averaging $11,763 per month, will continue to be made until the date of
the next valuation at February 28, 2015, to address this deficiency.
Risks and Risk Management
Economic Environment
General revenues, comprised of annual Member, practitioner, Student and licensing dues and fees, and
one-time admission, application and reinstatement fees, continue their gradual upward trend reflecting the
growth in the membership base.
MANAGEMENT’S DISCUSSION AND ANALYSIS
In 2009, the Chartered Accountants Students Association of Ontario (CASAO) discontinued operations and
engaged CPA Ontario to continue its functions. As part of this process, $600,000 was transferred to CPA
Ontario. As a condition of the transfer, the CASAO funds must be used for designated educational purposes.
As a result, the amount of $655,000 (which includes interest earned to March 31, 2014) is considered an
externally restricted contribution. CPA Ontario accounts for this contribution using the deferral method
which requires that this amount be deferred and taken into income as used.
Activity revenues include fees charged for Student education, professional development, practice inspection,
and advertising revenue. These activities have related direct expenses which can be scaled back to a certain
extent should participation levels decline. However, CPA Ontario maintains an infrastructure for providing
these activities and does rely on a specified level of funding to support these. Activity revenues remain
comparable to prior years.
As far as domestic or global economic conditions are concerned, management does not foresee any
significant negative influences on CPA Ontario’s near-term future operating revenues or expenses resulting
from these factors.
Risk in Respect of Financial Instruments
CPA Ontario’s financial instruments comprise cash and cash equivalents, investments, accounts receivable
and accrued revenue, accounts payable, long-term debt and the related interest rate swap arrangement. The
carrying value of cash and cash equivalents, accounts receivable and accounts payable approximates fair
value due to their liquidity and short-term maturities. CPA Ontario determines fair value of the investments
based on active market-quoted rates. The carrying value of long-term debt approximates fair value due to
its underlying floating interest rate. The interest rate swap arrangement is recorded at fair value with any
gain or loss reflected in the Statement of Revenues and Expenses. Fair value is determined using “mark-tomarket” mid-market quotations at the close of business day, calculated by a Canadian chartered bank.
13
MANAGEMENT’S DISCUSSION AND ANALYSIS
CPA Ontario is exposed to the following risks in respect of certain of the financial instruments held:
14
•
Credit risk arises from the potential that a counter-party will fail to perform its obligations. It is
management’s opinion that CPA Ontario is not exposed to significant credit risk as its accounts
receivable arise mainly from transactions with many parties such as Members, Firms and CPA Students,
other CPA bodies, building tenants, and contracted affinity product suppliers.
•
Liquidity risk is the risk that CPA Ontario will not be able to meet a demand for cash or fund its
obligations as they come due. Sufficient short-term investments are on hand at any given time that can
readily be converted to cash to cover any expected and unexpected operating requirements.
•
The interest rate swap arrangement provides interest rate fluctuation protection for the remainder of
the long-term debt repayment term to 2015. CPA Ontario’s fixed income investments earn interest at
prevailing market rates. It is management’s opinion that these investments do not expose CPA Ontario
to significant interest rate risk.
•
Currency risk is the risk to CPA Ontario’s revenues and expenses that arises from fluctuations of foreign
exchange rates and the degree of volatility of these rates. It is management’s opinion that CPA Ontario is
not exposed to any currency risk as it has no material transactions in foreign currencies.
•
CPA Ontario’s investments in cash equivalents, fixed income investments and equities are subject to
market risks as the value of these investments will change with market fluctuations. Based on the nature
of the investments, and the constraints imposed by CPA Ontario’s investment policy, it is management’s
opinion that CPA Ontario is not exposed to significant fair value market risk.
Contingencies
CPA Ontario has received statements of claim related to various matters arising in the ordinary course of
business. These matters are at various stages of resolution, and their outcome and an estimate of loss, if
any, is not determinable. CPA Ontario has no reason to expect that the ultimate disposition of any of these
matters will have a material adverse impact on its financial position, results of operations or its ability to
carry on any of its business activities.
Fines and Recoverable Costs
CPA Ontario has the authority to collect fines, as well as costs assessed against Members and Firms in
respect of the investigation, prosecution and hearing of professional conduct matters. These amounts have
been included in revenue in the fiscal period in which they were received. Additionally, during the normal
course of the year, various adjudicative tribunals of CPA Ontario order fines and costs to be paid to the
benefit of CPA Ontario. While management believes that such fines and costs, to the extent that they are
uncollected at the date of the financial statements, may be recoverable, no provision for their recovery has
been made.
FINANCIAL RESULTS BY MAJOR CATEGORY
2013/2014
2012/2013*
ACTIVITY REVENUES
Events and Functions
$190,880 $134,466
381,980
379,017
Practice Inspection
2,171,240
2,181,947
Examinations and Professional Development
9,801,754
9,999,915
Operations and Affinity Programs
1,523,815
1,436,929
14,069,669
14,132,274
Advertising and Career Site
TOTAL ACTIVITY REVENUE
GENERAL REVENUES
$15,141,953 $14,683,420
953,831
911,656
Practitioner Fees
2,886,727
2,647,423
Student Fees
1,943,654
1,689,443
Admission and Reinstatement Fees
782,780
670,060
Investment Income
404,809
458,726
Other Income
103,780
348,987
TOTAL GENERAL REVENUE
22,217,534
21,409,715
TOTAL REVENUES
36,287,203
35,541,989
Public Accounting Licensing Fees
EXPENSES
Salaries and Benefits
$17,855,052 $14,849,036
Contracted Professional Services
5,244,427
4,833,071
Payments to Other Professional Bodies
2,687,460
2,335,349
Advertising, Promotion and Sponsorship
2,518,682
1,479,173
Travel, Accommodation and Meals
1,974,362
1,991,019
Depreciation
1,358,540
1,314,086
Legal, Audit and Consulting
1,352,201
959,042
External Facilities Rental
1,228,241
1,100,644
Occupancy
1,126,978
1,041,216
Grants
1,004,800
977,963
Printing
546,698
560,386
Credit Card Transaction Fees
526,501
533,863
Postage and Courier
472,613
496,066
1,911,182
1,507,988
39,807,737
33,978,902
Other Operating Costs
EXCESS (DEFICIENCY) OF REVENUES OVER EXPENSES
MANAGEMENT’S DISCUSSION AND ANALYSIS
Membership Dues
$(3,520,534) $1,563,087
* Certain of the comparative figures have been reclassified to conform to the current year’s presentation.
15
Financial Results
Financial Results
MANAGEMENT’S DISCUSSION AND ANALYSIS
CPA Ontario recorded a deficiency of revenue over expenses of $3.5 million for fiscal 2013-14 compared to
an excess of $1.6 million for the prior year. Major variances (greater than $100,000) from budget contributing
to this overall result were as follows:
16
•
Practitioner Fee Revenue ($237,000 favourable): Actual results include 13 months of revenue whereas
the budget is 12 months.
•
Student Fee Revenue ($236,000 favourable): Actual number of full-time Students was about 200 higher
than budgeted. There is also the effect of 13 months of revenue included in actual. As noted in prior
years, it has historically been difficult to project when academically qualified Students will complete
practical experience requirements and progress to membership.
•
CPA Annual Membership Due Revenue ($233,000 favourable): Actual Member count grew by 700 (full
and reduced fee Members) more during the year than budgeted.
•
UFE Net Fee Revenue ($168,000 favourable): Difference relates to the cost per candidate. The budget
is based on CPA Canada’s estimates but actual costs are not known until after the UFE has taken place,
appeals heard and billing received.
•
External Hosting Services ($159,000 favourable): Selection of an external hosting provider has been
deferred until further detail regarding the unification plan for IT has been developed.
•
Annual General Meeting ($121,000 favourable): In addition to the annual general meeting, a special
general meeting had also been planned. It has been rescheduled to 2014-15.
•
Salaries and Benefits ($2,280,000 unfavourable): 13th month actual accounts for $1.3 million of
difference while costs related to staff position re-alignment, contract staffing and recruiting costs
totalled $586,000.
•
Standards Enforcement Investigations: ($451,000 unfavourable): This is due to a particularly complex
disciplinary hearing requiring multiple subject matter experts. In addition, the number of cases brought
before the Professional Conduct Committee has been greater than expected.
•
Unification Costs ($256,000 unfavourable): Communication with Members has been key in this process,
with web-related resources and extensive town hall meetings resulting in costs being significantly
greater than planned.
•
Public Accountants Council Annual Contribution ($232,000 unfavourable): Higher than anticipated costs
were incurred for the review of the new PREP, PEP and related CPA programs. Also included in actual
are 13 months’ costs.
•
Public Accountants Council Audit Fees ($181,000 unfavourable): The budget for the review was set when
the timing and scope had yet to be finalized. The review was much more extensive than anticipated.
•
Fees to CPA Canada ($171,000 unfavourable): The additional month in the fiscal year resulted in two
March payments being expensed in one year whereas the norm is one.
•
Government Affairs Sponsorship ($157,000 unfavourable): Sponsorship of a major local business
association event was not anticipated at the time of budget preparation.
•
National Developed Net Seminar Revenue ($128,000 unfavourable): 5,980 actual registrations were
recorded in 331 presentations versus 7,029 budgeted registrations in 356 presentations. This was
partially offset by favourable variances in associated expenses.
Governance and Professional Self-regulation
CPA Ontario is established as a self-regulatory professional body by the Chartered Accountants Act, 2010.
Under the Act, CPA Ontario has authority to establish, maintain and enforce in the public interest standards
and processes for access to the profession and for the qualification, governance and regulation of Chartered
Accountants. The Act also mandates CPA Ontario to meet and maintain the standards required in order
to be authorized under the Public Accounting Act, 2004 to license and govern the activities of Chartered
Accountants as public accountants and, as an authorized body, to promote and protect the public interest
by licensing and regulating Chartered Accountants as public accountants.
CPA Ontario has both a responsibility and a commitment to exercise its self-regulatory authority in a manner
that upholds and protects the public interest, engenders public trust and maintains the good reputation
and pre-eminence of Chartered Professional Accountants and the CPA designation. This mandate is fulfilled
through:
the enforcement of the Act, and as required, the updating or amendment of bylaws, regulations and
rules of professional conduct, and
•
the establishment and operation of regulatory committees (including those responsible for professional
conduct investigations, discipline, appeals and practice inspections) that exercise authority delegated by
and under the oversight of the governing Council.
CPA Ontario is also a corporation without share capital under the provisions of the Ontario Corporations Act
and certain provisions of that Act therefore also apply in respect of CPA Ontario governance.
Public Accounting Licensing
CPA Ontario is authorized by the Public Accountants Council for the Province of Ontario (PAC) to license
and govern its Members in the practice of public accounting pursuant to the provisions of the Public
Accounting Act, 2004 (PA Act) and the Standards and Council Guidelines adopted by the PAC. The Council
of CPA Ontario, through the Public Accounting Licensing Board that it appoints, and the adoption of
bylaws, regulations, policies and procedures, ensures compliance with the provisions of the PA Act, and the
PAC Standards and Council Guidelines. It also ensures that management of CPA Ontario is prepared for
and fulfills the reporting, disclosure and other accountability requirements of the PAC, including periodic
compliance and performance reviews conducted by the PAC.
Access to the Profession
As a self-regulatory professional body in which internationally trained accountants seek to become
Members, CPA Ontario is committed to ensuring that it has requirements for admission to membership,
and policies and procedures related to qualification by internationally trained accountants, that are fair,
transparent and publicly accountable. The objective is to ensure that the provisions and processes for access
to qualification as a CPA in Ontario are seen as models of best practices as well as meet or exceed the
specific requirements established by Ontario’s Fair Access to Regulated Profession and Compulsory Trades
Act, 2006. This also requires that CPA Ontario is prepared for and fulfills the reporting, disclosure and other
accountability requirements of the legislation or as established by the Fairness Commission.
MANAGEMENT’S DISCUSSION AND ANALYSIS
•
Income Tax
As a not-for-profit professional membership corporation, CPA Ontario is exempt from income tax under
section 149(1) of the Income Tax Act.
17
Prospects for Fiscal 2014-15
As noted previously, CPA Ontario will be putting its efforts toward integrating the operations of the three
legacy bodies in the year to come. Once the management of the unified CPA Ontario body is in place, a
strategic direction will be developed and presented to the Council.
Recognizing that long-term strategy, annual business planning and the budget must be linked, the Council
received a preliminary budget developed by management for the 12 months ended March 31, 2015, which
includes no increase in CPA Ontario’s Membership Dues or the Annual Practitioner Fee paid by Members in
public practice. This preliminary CPA Ontario budget showed an expected deficit of $4,483,000. The budget
did not explicitly take into account the activities and resources of either CGA Ontario or CMA Ontario, nor
did it reflect the impact of combining our operations. At the time of preparation, management did not yet
fully understand the details of where our operations overlap and where we have gaps. As the three bodies
join together and a combined strategy is finalized, a joint budget that reflects the expected activities of the
combined entity will be finalized.
MANAGEMENT’S DISCUSSION AND ANALYSIS
Major Projects
As noted, unification discussions and activities have been central to CPA Ontario’s activities during the
past two years and will continue to influence its operations. Once all agreements are concluded, it will be
necessary to revisit CPA Ontario’s strategy and change plans as required.
CPA Ontario has made pledges to several Ontario universities in support of building and ancillary funds over
a five to 10-year period. CPA Ontario has paid $320,000 in the current year related to these pledges and is
committed to further funding as follows:
2015
320,000
2016
280,000
2017
280,000
2018
280,000
2019
280,000
Thereafter
360,000
$
1,800,000
Additionally, CPA Ontario has also pledged support to selected Ontario universities in recognition of
success in the development of CPA-accredited accounting programs measured in terms of first-time UFE
writers originating from these universities. In 2014, CPA Ontario paid $715,000 in support of this and related
programs.
Uncertainties
Clearly the greatest uncertainty for the past several years has been the final outcome of the unification
activities in Ontario and across the country. CPA Ontario is well underway toward finalizing unification in this
province.
Although CPA Ontario has a healthy equity position, in light of the anticipated changes to its operating
landscape vis-à-vis the changes and uncertainties which will arise during the integration with CMA Ontario
and CGA Ontario, those funds are required in order to preserve CPA Ontario’s financial position while
carrying out the activities required to meet its strategic goals.
In recent years, CPA Ontario has faced increased legal costs on several fronts and management believes that
this trend is likely to continue. In the disciplinary area, there has been a noticeable increase in the number
of cases going to judicial review. CPA Ontario has also had other challenges such as having to defend the
profession’s rights to its trademarks and official marks.
18
In Conclusion
CPA Ontario’s principal responsibility is to act in the public interest through the maintenance and
enforcement of high professional standards. CPA Ontario also exists to serve its Members. CPA Ontario takes
its mandates seriously and welcomes the many and diverse challenges and opportunities that have been
addressed over the past year, as well as those that lie ahead.
The many CPAs who are actively involved in CPA Ontario are key to our strength as a profession and to our
achievements as an organization. Their examples inspire us and their contributions are recognized in the
Member, Student and Volunteer Information section of this Annual Report.
Nora V. Murrant, FCPA, FCA, FCBV
Executive Vice-President & Chief Operating Officer
Brian D. Leader, FCPA, FCA
Vice-President of Learning
Thomas E. Warner, BA, FCIS, PAdm
Vice-President & Registrar
John W. Murray, LL.B, LL.M
Vice-President of Standards Enforcement
Elizabeth Cowie, BA, LL.B, LL.M
Vice-President and General Counsel
MANAGEMENT’S DISCUSSION AND ANALYSIS
R.N. (Rod) Barr, FCPA, FCA
President & Chief Executive Officer
Monique Wijgerse
Vice-President of Marketing and Communications
19
2013-2014 RESULTS
As a self-regulating professional body, CPA Ontario’s principal business is maintaining professional standards
and regulating the CPA profession in Ontario. CPA Ontario seeks to uphold and enhance the value and
credibility of the CPA designation both to its Members and to the clients, employers, regulators and the
broad public who rely upon it.
Having regard to CPA Ontario’s business plan, management is of the view that CPA Ontario’s planned
deliverables were completed or significantly advanced during the last fiscal period. This section provides
more detailed comments on fiscal 2013-14 activities, organized under these major areas of focus:
•
Professional Self-Regulation
•
Lifelong Learning
•
Member Services
•
CPA Profile-Raising
2013-2014 Results
Professional Self-Regulation
Unification of the profession has been the primary focus of professional self-regulation activities during
2013-14 and will continue to be so during 2014-15. The operational and regulatory integration of CPA Ontario
with CMA Ontario was begun during the year, with a significant milestone being achieved on April 1, 2014
when 20,326 CMA Ontario members in good standing were admitted to membership in CPA Ontario
and 3,334 legacy CMA students were registered as Students with CPA Ontario. In addition, another 1,534
individuals who had been enrolled with CMA Ontario in the Prerequisite Education Program of the new CPA
qualification program were also registered as Students with CPA Ontario on April 1, 2014. As a result, total
Members in good standing with CPA Ontario at the start of fiscal 2014-15 was 58,604 and the total Student
registration stood at 11,229.
Following the positive votes of the respective memberships, the Second Unification Agreement was signed
with CGA Ontario in June. On July 2, 2014, CGAs were admitted to membership and legacy CGA students
were registered with CPA Ontario, bringing CPA Ontario’s total Members in good standing on that date to
81,368 and the total Student registration to approximately 20,000.
The operational and regulatory integration with CMA Ontario and CGA Ontario has required changes to CPA
Ontario bylaws and regulations, and presented significant resourcing, policy, systems and communications
issues and challenges. Various regulatory requirements and processes have needed to be harmonized,
including membership obligations, maintenance of membership, use of designations, as well as policies and
procedures relating to such matters as continuing professional development requirements and compliance,
professional liability insurance requirements and compliance, and registration and regulation of practices
providing public accounting and accounting services to the public. At the same time, maintaining the CPA,
CMA and CPA, CGA qualification programs and processes throughout the designated transition period will
require appropriate, ongoing operational and regulatory support.
Another important aspect of unification implementation and integration has been ensuring that registration
and admission processes and requirements of the new CPA qualification program comply with the Fair
Access to Regulated Professions and Compulsory Trades Act, 2006, the Public Accounting Act, 2004 and
the PAC Standards, as well as the Agreement on Internal Trade’s labour mobility requirements. Also critically
important is ensuring that existing Mutual Recognition Agreements and Memoranda of Understanding that
each of the three legacy bodies in Ontario has with professional accounting bodies outside Canada will be
continued and that the rights of members of the legacy bodies under these agreements are preserved.
On a national level, CPA Ontario management has continued to be actively involved in a number of
committees and working groups charged with developing the CPA qualification program (education,
examination, training and experience requirements) for qualification and certification as a CPA. Management
is also active in working groups mandated to develop the qualification requirements and regulatory
processes for CPAs who intend to practise public accounting. Involvement in these initiatives is a recognition
that the new CPA standards would become the new national standards in Canada for all professional
accountants, that the national public accounting standards must meet or exceed the requirements set out in
20
the PAC Standards in Ontario, and that the new national standards would form the basis for interprovincial
recognition of and reciprocity for members of CPA Ontario in future.
Standards Enforcement
The number of new complaints received in the year increased from the prior year, primarily due to the
extension of the fiscal year. The average number of complaints received per month also increased slightly
compared to the prior year (14.6 for fiscal 2013-14 vs. 13.8 for fiscal 2012-13).
The fiscal period began with a carry-over workload of 263 open files and ended with 215 open files
extending into fiscal 2014-15. Of the 215 open complaint files at year-end, seven were classified as “watching”
or “deferred”1 , 99 were in the initial phases of staff assessment, 57 were under the review of the Professional
Conduct Committee (PCC) or being prepared for PCC review, 19 were under formal investigation2, and a
further 30 were awaiting hearings before CPA Ontario’s Discipline Committee or issuance of Discipline
Committee reasons. The balance represent files undergoing/awaiting third party review by the independent
Reviewer of Complaints (3 files).3
Both the overall number of new complaints and the number of new complaints involving allegations of
financial malfeasance committed by Members increased slightly – 16 as against 15 during the previous
year. However, as in previous years, issues of competence and due care remained the leading causes for
complaint. The following table summarizes matters dealt with by Standards Enforcement as against those
dealt with in 2013-14:
2013-2014 Results
A significant proportion of files considered in the period (30 per cent) related to Members in public practice
and their alleged failure to exercise a duty of care in the preparation of assurance engagements and/
or compilation engagements, and preparation of corporate and personal tax returns, or compliance with
professional standards. In addition, approximately two per cent of files closed related to serious allegations
of misappropriation of funds. There has been an increase in matters related to Members’ operation of
practices without proper registration. The remainder of files related to a range of allegations of Members’
failure to maintain the reputation of the profession, arising from fact situations ranging from client service
issues to involvement with failed businesses and conflicts of interest.
Files closed in the year
Files open at
beginning of
year
Files opened
during year
By PCC
By settlement After
agreement
misconduct
allegations
Total
closed
Files open
at end of
year
F2013
309
166
184
5
23
212
263
F2014
263
190
219
5
14
238
215
Of the 219 files closed by the PCC in fiscal 2013-14 without referral to the Discipline Committee, 124 (57 per
cent) related to matters in which no breach of the Rules of Professional Conduct was found; 62 (28 per cent)
resulted in the provision of guidance by the PCC to the Member(s) involved; six (three per cent) related to
a Member whose membership had been revoked before the complaint was received; six (three per cent)
were opinion requests; and the remaining 21 (nine per cent) were either “watching” files opened by staff
where subsequent events indicated no basis for proceeding, or files opened “pending” receipt of additional
information from complainants who subsequently declined or failed to provide it.
1
2
3
“Watching” files are those in which CPA Ontario staff have identified, from media reports or other sources, circumstances in which a
Member may have breached a Rule, identified the Member(s) involved, and are awaiting further information – either from public or
private sources. “Deferred” files are those which are awaiting information from another process such as an investigation by another
regulator, or another service area of CPA Ontario.
Formal investigation involves the appointment of a forensic and/or expert investigator by the PCC and indicates that the PCC requires
additional information before it can determine whether a breach of a Rule has occurred.
CPA Ontario Regulations provide that a complainant who is dissatisfied with a decision by the PCC not to lay formal charges against
a Member may apply to have the decision reviewed by the independent Reviewer of Complaints. The Public Accounting Act, 2004
(Ontario) provides a similar, additional right of review when the Member is also a licensed public accountant.
21
During the year, priority was given to presenting older files to the PCC for consideration. The success of this
prioritization is reflected in the substantially reduced number of files remaining open for more than one year
at the end of F2014 (31 for F2014 vs. 66 for F2013).
There were 15 hearings before the Discipline Committee during the year (including four matters concluded
by way of settlement agreement and one proposed settlement that was not accepted). As a result of
these proceedings, five memberships were revoked with attendant fines and publicity; one Member was
fined, ordered to complete professional development courses and suspended for a prescribed period; one
Member was allowed to resign with an undertaking not to reapply, and three Members were subject to
other sanctions, including fines and restrictions on practice. Four former Members, whose memberships had
been previously revoked for administrative matters, were restricted from reapplying for readmission for a
prescribed period of time, with attendant fines and publicity.
Standards Enforcement counsel spent a total of 32 days in hearings, including 30 days before the Discipline
Committee, one day before the Court of Appeal for Ontario and one day before the Ontario Superior Court.
2013-2014 Results
Practice Inspection
2013-14 marked the third year of implementing a harmonized evaluation methodology for the practice
inspection programs for all provincial CPA bodies. The full harmonization of the profession’s regulatory
programs has been a national priority. The use of a consistent inspection methodology being applied
across the country has resulted in the use of a standardized form of inspection report. The change in
presenting Firms only with the deficiencies identified by their inspectors and NOT providing a preliminary
recommendation on whether any further action is required, has significantly increased Firms’ involvement in
the inspection process. The request that Firms respond to their inspection reports by completing an action
plan template to address any reportable deficiencies has resulted in greater engagement on the part of the
Firms. Firms provide a commitment to undertake specific remedial action. The adequacy of these action
plans can influence whether the next inspection will be in two or three years. While the recommendation for
any action to be taken is made by the detailed reviewer or quality control reviewer, the decision as to the
final outcome is made by the Practice Inspection Committee.
While the results of the 950 inspections conducted during the 2013-14 year were generally favourable
(90.7 per cent no further action vs. 94.1 per cent in 2012-13), the Practice Inspection Committee identified
a number of concerns regarding the documentation of audit and review engagements, financial statement
presentation, and quality control policies and procedures that have contributed to the committee’s decision
to reinspect 8.7 per cent of all offices inspected during the year (vs. 5.6 per cent in 2012-13). Six firms (0.6
per cent vs. 3 or 0.3 per cent in 2012-13) were referred to the Professional Conduct Committee as a result
of failing to address the deficiencies identified in their previous inspection reports or breaching a Rule of
Professional Conduct.
CPA Ontario continues to play a key role in developing the standardized questions and report content
(reportable deficiencies and non-reportable matters) to be used by all the provinces. Each year, there
are amendments to be made as a result of CPA Canada Handbook changes and effective dates of these
changes, clarifications to assist practitioners in understanding the nature of the deficiencies and edits to
enhance consistency.
To monitor the effectiveness of the harmonized inspection model, key statistics are tracked and compared
by a committee consisting of the directors of each province’s inspection program. These statistics include
inspection outcomes by size of Firm as well as adherence to several aspects of the program’s methodology,
including file selection criteria and inspection cycle. Deficiencies are also tracked for each province and
compared to identify any anomalies for follow-up.
CPA Ontario continues its exchange of information with the Canadian Public Accountability Board (CPAB)
in accordance with a Memorandum of Understanding (MOU) between the two bodies that was renewed for
another five-year term in April 2014. This working relationship includes quarterly meetings between the two
bodies to discuss current inspections and identify risk factors that each body needs to consider in fulfilling
its respective mandate.
In addition, staff contributed to the regulatory working groups establishing the principles for a common
inspection program as the profession unifies across the country.
22
Lifelong Learning
Career Information, Education, Approved Training Offices and Professional Development are the integrated
components of the Learning Stream. Its mission – and a core CPA Ontario business – is to attract the
brightest and the best students and then provide programs and activities that support Student and Member
lifelong learning to ensure their ongoing professional competency. Professional competency is developed
initially through the CPA qualification process, which includes education, experience and evaluation
components, and is maintained and enhanced through PD programs as well as practical experience.
CPA Ontario’s major initiatives to support lifelong learning focus on innovative ways of attracting the
brightest and the best students; continuous improvement in the competency-based practical experience
requirements that enhance the competency development of all entry-level CPAs; the strengthening of longterm strategic partnerships with Ontario universities; and the expansion of PD courses and programs in
order to meet Member needs, including the executive programs and courses that are designed for Members
in industry.
Career Information (CI) strives to ensure the best and brightest students understand what it means to
be a Chartered Professional Accountant and the wealth of career opportunities that the CPA designation
can provide. This is achieved through in-class and campus presentations, conferences, competitions,
sponsorships, social media, website, student resume and job posting portal, promotional materials, CI
programming and more.
At the high school level, the CI team, in partnership with Members, makes presentations to close to 400
Grade 11 and 12 accounting classes annually.
The No Limits Conferences are our flagship events for raising high school student awareness of the
opportunities that come with a CPA designation. These conferences target and attract top senior high
school students who are interested in business by putting them face-to-face with senior CPAs from all areas
of public practice, industry, government and academia. Three No Limits Conferences were delivered in the
2013-14 school year – in Ottawa, Toronto, and Kitchener-Waterloo – with almost 1,000 students, 100 teachers
and over 100 CPAs taking part.
2013-2014 Results
The Teacher Colleague Program (TCP) for Ontario high school business and accounting teachers provides
close to 800 teachers with an opportunity to share best practices with colleagues and learn about new
resources available for the classroom. Teachers are often ranked as one of the most influential groups in
terms of career choices of students. With students making career choices earlier, these high school initiatives
are strategically critical.
CI’s fourth annual Chartered for Finance (CFF) Conference held in January 2014 was a tremendous success
with over 500 applications from Ontario university students interested in finance and accounting competing
for the 200 available seats. Those lucky enough to attend had the opportunity to meet with CPAs working in
such areas as investment banking, corporate finance, private equity and asset/wealth management.
The COIN, CA$H, YCPA and Rule the Tube Competitions are more ways students can learn about the CPA
designation, while at the same time showcasing their knowledge and skills to compete for money.
Close to 1,500 students participated in CPA Ontario’s high school and post-secondary ambassador programs
which, along with the high school teacher colleague program, remain the primary vehicles for disseminating
information and creating student interest in a CPA career.
The Board of Ambassadors, comprised of two to three post-secondary ambassadors from each Ontario
University, acts as a strong voice for the CPA profession on campus. Now, with over 45 Students
representing almost 20 Ontario campuses, the Board acts as an on-campus advisory and advocacy group
for the CPA profession.
The Approved Training Offices area partners with organizations to create articling positions for Students
in industry, government and non-external audit paths within professional accounting firms. In addition, we
provide support, on a national level, for most areas that pertain to the profession’s practical experience
requirements.
We added 29 new Approved Training Offices outside of external audit this year, bringing the cumulative total
number to 254 (13 per cent increase from last year). These offices are training 665 Students (33 per cent
increase from last year) in industry, government and in non-audit practice areas of professional accounting
23
firms, which excludes the 298 Students who have already qualified through a path outside of external audit.
Approximately half of the Students currently employed started employment within the last 12 months,
illustrating that the growth rates continue to accelerate. With the upcoming launch of the CPA Certification
Program in September 2014, our primary focus this past year was not on growing new training offices,
but on efforts to ensure the smooth transition of existing Approved Training Offices to the CPA Practical
Experience Requirements. Specifically, this included the development of tools and resources to inform,
educate and support our training offices and Students. We are also very involved, on both the national
and regional levels, in the development of the new practical experience requirements to support the new
CPA designation. The CPA Practical Experience Requirements were approved in April 2014 by all provincial
bodies and will launch across Canada on September 1, 2014.
2013-2014 Results
The CPA Certification Program will bring another strategically important change to our practical experience
requirements – the ability for Students to fulfill the competency-based requirements through a Pre-approved
Program route and/or through Experience Verification. The profession will apply the same standard to the
evaluation of experience regardless of whether experience is pre-approved and monitored, as is the case
with the Pre-approved Program, or each Student’s experience is individually evaluated, as is the case with
Experience Verification
Efforts with Ontario Post-Secondary Institutions (PSI) continued to focus on growing the number of
graduates pursuing the CPA designation. The strategic partnerships promote the development of critical
mass – quantity and quality of faculty, students, research and curriculum – at each school. In turn, critical
mass and strong, long-term PSI partnerships help to ensure continuous improvement and innovation. The
vision and mission of each of the CPA/University Joint Centres focus on adding to the body of knowledge
in accounting and accounting-related areas through high-quality research, as well as on continuous
improvement and innovation in their accounting programs.
CPA Ontario has earmarked $1.5 million annually in support of accounting programs and faculty in Ontario
PSIs. This includes the funding of CPA/University Joint Centres, CPA profession naming rights in perpetuity
for key locations in the buildings that house its accredited programs, such as lecture theatres, atriums and
student study areas, doctoral studies, the faculty colleague program, and small project and other support for
schools that do not have accredited programs.
Efforts in 2014-15 will continue to focus on capturing the potential synergies of this strategic group and
raising its collective profile, as well as that of each of the partners, within the academic and business
communities. The various avenues being considered include holding joint-centre conferences with both
academic and practitioner participants, creating a working paper series to promote research produced
pre-publication in a recognized journal, and creating databases of integrated case studies and examination
questions for use in their programs.
Efforts will also focus on the implementation of a new CPA Professional Education Program (PEP) based on
the CPA Competency Map. This new nationally-developed, regionally-delivered, two-year part-time PEP will
complement CPA Ontario’s current PSI/profession partnerships leading to a one-year PEP, and a national
Common Final Examination (CFE).
Under the new CPA Path, PSIs have had the opportunity since the fall of 2014 to apply for CPA Accreditation
and, if granted, students from those post-secondary institutions may be exempt from any or all of the CPA
Professional Education Program (PEP) modules depending on the level of accreditation received. CPA
Accreditation is granted at the provincial/regional level but is based on national standards and therefore
recognized across Canada. To date, the following PSIs have obtained CPA Accreditation: Brock University,
McMaster University, Queen’s University, Western University, Wilfrid Laurier University, University of Toronto
Mississauga, University of Waterloo and York University. Several other PSIs have expressed an interest in CPA
Accreditation and we anticipate that more will be added to this list.
The number of new CPA Student registrations has dropped slightly in calendar year 2013 in comparison
to 2012. There was a related decrease in the size of CPA Ontario’s legacy-CA Professional Program, which
includes the Staff Training Program, the Core-Knowledge Examination, the School of Accountancy and the
School Final Examination. The number of UFE writers also decreased to just over 1,600 in 2013 from just
under 1,700 in 2012.
The number of Students flowing through the CPA qualification process is expected to remain constant over
the next year, with the implementation of a new CPA PEP in the fall of 2014 and the continued creation of
new CPA Student entry-level positions through the expansion of opportunities in pre-approved programs
and with the addition of the experience verification route.
24
In terms of the overall UFE success of Ontario candidates, 89 per cent have been successful after two
attempts while 94 per cent of those attempting the UFE became CPA, CAs within the maximum four
attempts allowed. Ontario had 20 members on the 2013 National Honour Roll, including the Canadian Gold
Medallist.
CPA Ontario’s Professional Development (PD) Area continues to expand its offerings to assist Members in
meeting their lifelong learning needs.
With over 500 presentations in 27 locations throughout Ontario, the comprehensive program of half-day
to two-day PD seminars covers the core competency areas of accounting, assurance and related services,
corporate finance, information technology, performance management, strategy and governance, Canadian
and U.S. taxation, wealth management, personal and team management skills, and leadership. Five twoday refresher topics are also available in an e-learning format; these cover IFRS, ASPE, CAS, and corporate
and personal income tax planning. The half-day IFRS update course was presented in a webinar format in
addition to the in-class session.
CPA Ontario also offers a comprehensive series of in-depth, multi-day executive programs, which cover
advanced leadership and operational topics, and partners with third-party affiliates to make other relevant
in-class and e-learning opportunities available to Members. We offered a free PD webinar on a corporate
governance topic to launch the Fall/Winter PD program, which had almost 600 registrations.
Member Services
The principal focus of Member Services for 2013-14 was on providing support to our Members in their
professional activities. Member Services also continues to oversee the various value-added affinity programs
that benefit Ontario CPAs.
2013-2014 Results
With so many different learning opportunities available, the choice can be a little overwhelming, so we
developed sample learning plans for some of the common roles that Members play within their practices or
organizations. These sample plans are designed to help Members sort through all the PD choices available to
develop a personal learning plan that will meet their particular learning needs. The online course catalogue
also has multiple “filters” to assist Members in finding relevant PD opportunities.
Member Services has been actively working with CPA Canada, various national committees and advisory
groups, other provincial bodies, as well as other areas within CPA Ontario, to raise awareness and identify
potential issues relating to the implementation of changing accounting and assurance standards, including
requirements for practical guidance, so as to meet the needs of Members in all sectors.
Member Services also monitors developments being considered in Canada and internationally in respect
of accounting and assurance standards. Member Services held consultation sessions to provide Members
with the opportunity to share their views on some key assurance projects underway in respect of the
review engagement exposure draft, proposed changes to the audit report, and the new standard, Reports
on Supplementary Matters Arising from an Audit or a Review Engagement. There were also a number of
sessions held in conjunction with the Canadian Accounting Standards Board to gather feedback on the
proposed Statement of Principles for not-for-profit organizations.
The confidential advisory and ethics counselling service continues to be the most widely used Member
service. In the past fiscal year, over 4,200 calls were received from Members and practitioners on a variety
of topics, including: accounting and assurance; public practice management issues; and CPA Ontario’s
Bylaws and Rules of Professional Conduct. A major area of focus this past year was the transition to the
CPA designation by Members and Firms. Ongoing prominent areas of concern continue to be in respect
of regulatory requirements relating to registration of public accounting practices and to public accounting
licensing.
The Small Practices Advisory Committee continues to be active, providing feedback on topics of concern
to practitioners, such as: the public accountancy licence renewal process; the practical issues arising from,
and guidance that would be useful relating to the implementation of new and changing accounting and
assurance standards; the proposed unification of the accounting bodies; and areas where they would
like to see improvements, for instance, in respect of the practice inspection process. In the past year, the
Committee was also involved in the development of a customizable brochure for practitioners to market
CPA Firms to their clients.
25
The Technical Services area of Member Services works with Ontario government ministries and agencies
through ad hoc groups or task forces to focus on accounting and auditing issues specific to the Ontario
financial reporting environment. One major area of focus this past year was updating the Accounting,
Auditing and Tax Guidelines for Ontario Condominium Corporations.
CPA Ontario’s affinity member benefits continue to be very popular. There are currently over 26,000
certificates of insurance held by Members, their spouses and other eligible family members under the CPA
Select Insurance Plans (term life, personal accident, income protection, critical illness, and office overhead).
The Home and Auto Insurance Plan, through TD Insurance Meloche Monnex, has been in place for nine years
and continues to experience solid growth. There are almost 20,000 active policies and client retention rates
continue to be well over 90 per cent. In addition, CPA Ontario works with the CPA Canada to enhance the
national CPA Member Savings Program, and a number of new affinity partners have been added to this
program during the past year.
Raising the CPA profile has always been an important objective of CPA Ontario. Profile-raising takes many
forms and includes the initiatives highlighted here.
2013-2014 Results
Capitalizing on earned media opportunities is an essential function of CPA Ontario’s Public Affairs
department. Again in 2013-14, our efforts to secure positive media coverage for our profession, and to
manage potentially problematic media interest elsewhere, bore significant fruit. Our advocacy efforts
on unifying the accounting profession and other issues were supported by proactive and reactive media
relations efforts. As well, media relations support was provided to help promote student recruitment,
professional development offerings, the Free CPA Tax Clinics program and other initiatives.
CPA Ontario continued to build its online CPA Media Directory. This lists CPAs willing to speak to the media
by both expertise and geographical region. The directory is designed to make it easy for reporters to find
CPAs willing to be interviewed and thereby raise awareness of the knowledge and expertise that CPAs offer.
There are now 45 CPAs listed in the directory.
As well, 76 CPAs are signed up as participants in the CPA Speakers Bureau. This matches up CPA speakers
with various community groups, service clubs, business groups and others looking for experts to speak
about various financial, business and accounting topics.
The CPA Articles Program, which distributes articles featuring input from CPA experts to news organizations
across Ontario, produced 12 articles in 2013-14. They were picked up and published 54 times.
Paid media placements remain an effective communications tool: A two-page ad saluting this year’s
successful UFE writers ran in the Globe and Mail in February. In September, a full-page ad ran in the
Globe and Mail announcing CPA Ontario’s newly elected Fellows as well as the recipients of the Award
of Outstanding Merit and the Award of Distinction. We’ve also run ads in inserts and programmes held in
conjunction with strategic and high-profile sponsorships.
Over the past year, CPA Ontario continued to pursue a number of high-profile sponsorship opportunities
selected to promote the CPA profession to key decision-makers, including business and political leaders.
These have included “one-off” sponsorships of political fundraisers and speeches by key policy-makers. Other
examples include CPA Ontario’s ongoing sponsorship of TVO’s The Agenda with Steve Paikin, which reaches
a highly influential audience of Ontario policy-makers and opinion leaders; our involvement with the Ontario
Legislature Internship Programme, which reinforces CPA Ontario’s relationship with MPPs; sponsorship of
various Ontario Chamber of Commerce events – including the Ontario Business Achievement Awards, the
Ontario Economic Summit and An Evening with the Deputy Ministers; sponsorship of events with the Toronto
Board of Trade; and several community support programs, including the annual Free CPA Tax Clinics.
CPA Ontario raises the profession’s profile in the internationally trained professional community through
participation in events such as the Internationally Educated Professionals (IEP) Conference and the Career,
Education & Settlement Fair. Additionally, CPA Ontario delivers presentations at Newcomer Centres upon
request and provides “Pathways to Membership” information materials to help the internationally trained
better understand the qualification process leading to the CPA designation in Ontario.
Volunteerism and community giving is a tradition that many Chartered Professional Accountants have
embraced. The Find a CPA Volunteer section of the website has demonstrated good results again this year.
The site enables charitable organizations seeking designated accountants to fill such roles as treasurers,
board chairs and leaders of committees to post their opportunities free of charge. This past year, a total of
82 volunteer opportunities from across the province were posted on the site.
26
Over 1,700 Chartered Professional Accountants and their associates from across the province turned out this
year to help those in need at the annual Free CPA Tax Clinics. Celebrating its 46th year, the Free CPA Tax
Clinics program helps low-income people, who are unable to prepare their own tax returns, receive muchneeded tax credits and refunds. In 2014, a record number of returns was completed - more than 14,000 –
truly an impressive feat, considering they were all prepared during the busy tax season.
Clinics operate in cooperation with a wide range of agencies – including food banks, charities, hospitals,
community centres, social service agencies, libraries, and seniors’ centres and homes. Again this year, CPA
Ontario additionally supported these agencies by donating $100 for the first 15 tax returns completed at a
clinic and $2 for each additional return in excess of 15.
The Free CPA Tax Clinics receive extensive exposure in the news media, with print articles and radio and
television coverage totalling more than 700,000 in combined circulation and reach, not including the many
pick-ups on Internet websites. The biggest payback though comes from the volunteer CPAs themselves
who regularly remark on how fulfilling they find the experience. CPA Ontario’s staff have embraced the CPA
profession’s culture of giving. Many staff members – both CPAs and non-CPAs alike – again volunteered at
the Free CPA Tax Clinics held at CPA Ontario and at clinics in the community.
2013-2014 Results
27
REPORT OF THE INDEPENDENT AUDITOR ON
THE 2014 SUMMARIZED FINANCIAL STATEMENTS
To the Members of Chartered Professional Accountants of Ontario
The accompanying summarized financial statements, which comprise the summarized statement of financial
position as at March 31, 2014, the summarized statement of revenues and expenses, the summarized
statement of changes in net assets and the summarized statement of cash flows for the 13-month period
ended March 31, 2014 and the related note, are derived from the complete audited financial statements of
Chartered Professional Accountants of Ontario for the 13-month period ended March 31, 2014. We expressed
an unmodified audit opinion on those financial statements in our report dated June 18, 2014.
SUMMARIZED FINANCIAL STATEMENTS
The summarized financial statements do not contain all the disclosures required by Canadian accounting
standards for not-for-profit organizations. Reading the summarized financial statements, therefore, is not a
substitute for reading the complete audited financial statements of Chartered Professional Accountants of
Ontario.
28
Management’s Responsibility for the Summarized Financial Statements
Management is responsible for the preparation of a summary of the audited financial statements on the
basis described in Note 1 to the summarized financial statements.
Auditor’s Responsibility
Our responsibility is to express an opinion on the summarized financial statements based on our procedures,
which were conducted in accordance with Canadian Auditing Standard (CAS) 810, “Engagements to Report
on Summary Financial Statements.”
Opinion
In our opinion, the summarized financial statements derived from the complete audited financial statements
of Chartered Professional Accountants of Ontario for the 13-month period ended March 31, 2014 are a
fair summary of those financial statements, on the basis described in Note 1 to the summarized financial
statements.
Welch LLP
Chartered Accountants, Licensed Public Accountants
Ottawa, Ontario
June 18, 2014
SUMMARIZED STATEMENT OF FINANCIAL POSITION
2014
March 31
2013
February 28
ASSETS
Cash and cash equivalents
$
2,249,721 $940,320
16,045,309
15,969,491
5,703,700
6,022,678
Intangible assets
120,550
86,981
Restricted investments
654,730
645,790
Accrued pension asset
757,300
824,200
Investments and other current assets
Land, building and equipment
LIABILITIES
Long-term debt
$
Other liabilities
NET ASSETS - unrestricted
$
See accompanying notes
924,325 $2,111,967
11,444,910
5,694,884
12,369,235
7,806,851
13,162,075
16,682,609
25,531,310 $24,489,460
SUMMARIZED FINANCIAL STATEMENTS
$25,531,310 $24,489,460
29
SUMMARIZED STATEMENT OF REVENUES AND EXPENSES
FOR THE PERIODS ENDED:
2014
March 31
13 Months
2013
February 28
12 Months
REVENUES
$
Activity revenues
14,069,669 $14,132,274
General revenues
22,217,534
21,409,715
Total revenues
36,287,203
35,541,989
SUMMARIZED FINANCIAL STATEMENTS
EXPENSES
Council and Executive Office, Public Affairs, Professional Standards and
Self-Regulation, and Learning
$
29,477,580 $24,420,849
Operations
10,330,157
9,558,053
Total expenses
39,807,737
33,978,902
Excess (deficiency) of revenues over expenses
$(3,520,534) $
1,563,087
See accompanying notes
SUMMARIZED STATEMENT OF CHANGES IN NET ASSETS
FOR THE PERIODS ENDED:
2014
March 31
13 Months
2013
February 28
12 Months
NET ASSETS - unrestricted
Balance, beginning of period
$
(3,520,534)
Excess (deficiency) of revenues over expenses
Balance, end of period
See accompanying notes
30
16,682,609 $15,119,522
$
1,563,087
13,162,075 $16,682,609
SUMMARIZED STATEMENT OF CASH FLOWS
FOR THE PERIODS ENDED:
2014
March 31
13 Months
2013
February 28
12 Months
Operating activities
Excess (deficiency) of revenues over expenses
$(3,520,534) $
1,563,087
1,340,683
1,161,008
Changes in non-cash working capital amounts
6,595,931
464,661
8,940
9,201
Cash flows from operating activities
4,425,020
3,197,957
Cash flows from financing activities
(1,120,001)
(979,000)
Cash flows used for investing activities
(1,995,618)
(2,580,470)
1,309,401
(361,513)
940,320
1,301,833
Change in deferred contributions
Net change in cash and cash equivalents during the period
Cash and cash equivalents, beginning of period
Cash and cash equivalents, end of period
$
2,249,721 $
940,320
See accompanying notes
NOTES TO SUMMARIZED FINANCIAL STATEMENTS
FOR THE 13 MONTH PERIOD ENDED MARCH 31, 2014
1. Basis of Preparation
These summarized financial statements are derived from the complete annual audited financial statements
of Chartered Professional Accountants of Ontario for the 13-month period ended March 31, 2014. The figures
presented in the complete annual audited financial statements for the 13-month period ended March 31, 2014
were prepared in accordance with Canadian accounting standards for not-for-profit organizations.
SUMMARIZED FINANCIAL STATEMENTS
Add items not involving cash
A copy of the complete audited financial statements is kept on file at Chartered Professional Accountants of
Ontario and can be provided upon request.
The criteria applied by management in preparing these financial statements is outlined in the paragraph below.
The figures presented in these summarized financial statements agree with or can be recalculated from the
figures presented in the complete audited financial statements. Management believes that the summarized
financial statements contain the necessary information and are at an appropriate level of aggregation so as
not to be misleading to the users.
2. Subsequent Events
On April 1, 2014 CPA Ontario signed a unification agreement with Certified Management Accountants of
Ontario (“CMAO”) and accepted all Members of CMAO into membership of CPA Ontario. Pursuant to
a vote by Members of CPA Ontario and Certified General Accountants of Ontario (“CGAO”) on June 18,
and pending execution of a unification agreement shortly thereafter, Members of CGAO will also become
Members of CPA Ontario in July 2014. As a result of these agreements CPA Ontario will have responsibility
for governing and regulating, as well as promoting the interests of the accounting profession in Ontario.
Each legacy body will retain its statutory authority until legislation to create a single body is passed.
The net assets and liabilities of CMAO and CGAO will be substantially transferred to CPA Ontario by March
31, 2015. Any remaining assets and liabilities of CMAO and CGAO will be transferred thereafter upon
passage of legislation to dissolve these bodies.
31
MEMBERSHIP BY GEOGRAPHICAL REGION AND EMPLOYMENT SECTOR
AS AT MARCH 31, 2014
MEMBER, STUDENT AND VOLUNTEER INFORMATION
Northern Region
934
Eastern Region
4,683
City of Toronto
10,983
South Western Region
4,686
South Central Region
12,173
Region
(District Associations)
Public
Practice
Industry/
Commerce
Government/
Academe
Other
Sectors
Retired
Total
1,550
1,644
334
245
913
4,686
3,716
5,488
663
1,051
1,255
12,173
1,351
1,479
713
258
882
4,683
330
244
153
39
168
934
(including Etobicoke, North York,
Scarborough)
2,873
5,148
532
989
1,441
10,983
Total Ontario resident membership
9,820
14,003
2,395
2,582
4,659
33,459
Other provinces
538
768
100
153
507
2,066
Other countries
292
1,700
54
374
333
2,753
Total membership
10,650
16,471
2,549
3,109
5,499
38,278
South Western
(Essex-Kent, Georgian Bay, Lambton,
Waterloo-Wellington, Western Ontario)
South Central
(Halton-Peel, Hamilton, Niagara, York)
Eastern
(Central Ontario, Eastern Ontario, Ottawa,
Quinte, Renfrew, Stormont-DundasGlengarry)
Northern
(Cochrane, North Bay, Northwestern
Ontario, Sault Ste. Marie, Sudbury)
City of Toronto
Members residing outside Ontario
32
NON-RETIRED MEMBERS RESIDING IN ONTARIO
BY EMPLOYMENT SECTOR
as at March 31, 2014
Government/
Academe
49%
Public Practice
9,820
34%
Other Sectors
2,582
9%
Government/Academe
2,395
8%
28,800
100%
Other Sectors
Industry/
Commerce
Public
Practice
ALL MEMBERS BY EMPLOYMENT SECTOR
as at March 31, 2014
Government/
Academe
Industry/Commerce
16,471
43%
Public Practice
10,650
28%
Retired
5,499
14%
Other Sectors
3,109
8%
Government/Academe
2,549
7%
38,278
100%
Other Sectors
Retired
Industry/
Commerce
MEMBER, STUDENT AND VOLUNTEER INFORMATION
14,003
Industry/Commerce
Public
Practice
33
PROFESSIONAL CORPORATIONS
as at March 31, 2014
MEMBER, STUDENT AND VOLUNTEER INFORMATION
34
Authorized to
practise public
accounting
Other
Total
One shareholder
965
726
1,691
More than one shareholder
105
49
154
1,070
775
1,845
MEMBERSHIP BY AGE RANGE AND GENDER
as at March 31, 2014
Females
Males
Total
Under 30
1,591
48%
1,701
52%
3,292
9%
30-39
3,964
49%
4,190
51%
8,154
21%
40-49
3,477
42%
4,717
58%
8,194
21%
50-65
3,332
27%
8,904
73%
12,236
32%
183
3%
6,219
97%
6,402
17%
12,547
33%
25,731
67%
38,278
100%
Over 65
MEMBERSHIP CHANGES
2013-14
2012-13
36,465
35,788
1,154
1,073
883
33
99
117
115
39
9
9
Readmission
62
36
Total increases
2,322
1,307
Deaths
(182)
(193)
Resignations
(133)
(112)
Revocations
(240)
(271)
Total decreases
(555)
(576)
46
(54)
38,278
36,465
Members in good standing at beginning of year
Increases during the year:
Associate Members
Affiliate Members
Transfers from:
Other Provincial Institutes
Examination - Quebec
Decreases during the year:
Net change in suspended members (primarily re: fees)
Membership as at March 31, 2014 and February 28, 2013
MEMBER, STUDENT AND VOLUNTEER INFORMATION
Recognized bodies outside Canada
35
NUMBER OF PUBLIC PRACTICE OFFICES
BY GEOGRAPHICAL REGION AND SIZE* OF FIRM
as at March 31, 2014
Region (District Associations)
National
Regional
Local
Part-time
Total
54
44
320
195
613
25
59
733
478
1,295
23
37
247
175
482
25
6
52
38
121
(including Etobicoke, North York, Scarborough)
20
25
575
328
948
Outside Ontario
10
7
48
9
74
157
178
1,975
1,223
3,533
South Western
(Essex-Kent, Georgian Bay, Lambton,
Waterloo-Wellington, Western Ontario)
South Central
(Halton-Peel, Hamilton, Niagara, York)
MEMBER, STUDENT AND VOLUNTEER INFORMATION
Eastern
(Central Ontario, Eastern Ontario, Ottawa,
Quinte, Renfrew, Stormont-Dundas-Glengarry)
Northern
(Cochrane, North Bay, Northwestern Ontario,
Sault Ste. Marie, Sudbury)
City of Toronto
NUMBER OF MEMBERS IN PUBLIC PRACTICE, BY SIZE* OF FIRM
as at March 31, 2014
Size of Firm
Partner/Associate
Employee
Sole Proprietor
Total
National
1,363
3,664
0
5,027
Regional
420
495
14
929
1,619
1,233
1,438
4,290
22
28
354
404
3,424
5,420
1,806
10,650
Local
Part-time practice exclusively
* National: Offices in more than three provinces
Regional: More than one office in Ontario or in Ontario and up to two other provinces
Local:
One office only
36
PUBLIC ACCOUNTING LICENSEES
as at March 31, 2014
Members
Sole practitioners
1,084
Partners
2,342
Employees
714
Part-time practitioners exclusively
143
Other part-time practitioners
115
Other (no practising office)*
95
* Comprised of Members in employment transition, recent retirement or who are practice inspectors
PUBLIC ACCOUNTING LICENSEES REPORT
as at March 31, 2014
Total
Active licensees as at February 28, 2013
4,587
Increases during the year:
New licences issued (CPA Ontario Members)
Reissued licences to former licensees
Total increases
132
95
227
Decreases during the year:
Deaths
(10)
Discontinued on request
(82)
Expired
Suspended due to membership status
(177)
(30)
Suspended due to discipline
(1)
Suspended by PALB
(5)
Revoked due to membership status
Revoked due to discipline
Total decreases
Active licensees at March 31, 2014
MEMBER, STUDENT AND VOLUNTEER INFORMATION
4,493
Total licences in force
(16)
0
(321)
4,493
37
BACKGROUNDS OF CURRENT STUDENTS AND APPLICANTS
FOR MEMBERSHIP WITH FIRST QUALIFICATIONS
FROM ACCOUNTING BODIES OUTSIDE CANADA
as at March 31, 2014
Current
Students
4,844
Business degrees only
Non-business degrees only
159
Arts
38
MEMBER, STUDENT AND VOLUNTEER INFORMATION
Science
626
Both business and non-business degrees
439
(the majority having first obtained a non-business degree)
7
Mature entry
321
Accounting bodies assessed as not having equivalent programs
6,237
Accounting bodies recognized as having equivalent programs (UFE not
required)
In Progress
Members
Institute of Chartered Accountants in Australia
3
28
Institute of Chartered Accountants in England and Wales
6
696
Institute of Chartered Accountants in Ireland
2
41
Institute of Chartered Accountants of New Zealand
3
30
Institute of Chartered Accountants of Scotland
0
106
The Institute of Certified Public Accountants of Hong Kong
2
9
Instituto Mexicano de Contadores Publicos
3
4
Japanese Institute of Certified Public Accountants
0
3
South African Institute of Chartered Accountants
5
388
State Boards of Accountancy in the United States
72
405
0
18
96
1,728
In Progress
Members
Other Provincial Bodies
8
3,108
Affiliate Members
1
1
Other Ontario Accounting Bodies: CGA Ontario
10
230
Other Ontario Accounting Bodies: CMA Ontario
34
685
Accounting Bodies Outside Canada: Evaluation of Experience
39
74
92
4,098
188
5,826
Other (including some from bodies whose qualifications subsequently ceased to
be equivalent)
Other (UFE not required)
38
429
Law, math (including University of Waterloo Bachelor of Mathematics), other
Accounting bodies assessed as not having equivalent programs
(advanced-level entry, UFE required)
Members
142
150
Institute of Chartered Accountants of Pakistan
40
40
Institute of Chartered Accountants of Sri Lanka
10
10
Philippine Institute of Certified Public Accountants
15
12
The Association of Chartered Certified Accountants (United Kingdom)
24
77
0
1
59
53
290
343
Institute of Chartered Accountants of India
Institute of Chartered Accountants of New Zealand
Other accounting bodies
2013 CA Reciprocity Examination (CARE) Success –
Members of bodies recognized as having equivalent programs
Successful
Writers
Institute of Chartered Accountants in England and Wales
2
South African Institute of Chartered Accountants
1
State Boards of Accountancy in the United States
33
Other
1
37
MEMBER, STUDENT AND VOLUNTEER INFORMATION
In Progress
39
STUDENTS BY GENDER
as at March 31, 2014
MEMBER, STUDENT AND VOLUNTEER INFORMATION
New Students
40
Total
Female
725
47%
Male
809
53%
1,534
100%
Total Students
Total
Female
2,932
47%
Male
3,305
53%
6,237
100%
Male
Female
Male
Female
STUDENT CO-OPERATIVE DEGREE PROGRAM ENROLMENT
as at March 31, 2014
New Student Enrolment
Total
Co-operative degree
program
547
36%
All other Student
registration
classifications
987
64%
1,534
100%
Total Student Enrolment
Total
Co-operative degree
program
2,478
40%
All other Student
registration
classifications
3,759
60%
6,237
100%
All other Student
registration
classifications
Co-operative
degree
program
All other Student
registration
classifications
Co-operative
degree
program
STUDENT EMPLOYMENT BY APPROVED TRAINING OFFICE
as at March 31, 2014
New Students
Total
National Firm
795
52%
Regional Firm
110
7%
Local Firm
266
17%
Corporate and
Government
Sector
80
5%
Local
283
19%
1,534
100%
Regional
Other
Other
Total Students
Total
National Firm
3,233
52%
Regional Firm
363
6%
Local Firm
932
15%
Corporate and
Government Sector
242
4%
1467
23%
6,237
100%
Other
Corporate and
Government
Sector
National
National
Local
Regional
National:
Offices in more than three provinces
Regional:
More than one office in Ontario or in Ontario and up to two other provinces
Local:
One office only
MEMBER, STUDENT AND VOLUNTEER INFORMATION
Corporate and
Government Sector
Other
Other:Not employed with an office approved for Student training at March 31, 2014, comprised
primarily of Students who have completed their experience, who are on an academic term, or are
temporarily exempt from the employment requirement.
41
UFE SUCCESS RATE
The number of Students who write and pass the Uniform Evaluation (UFE) has grown over the last eleven
years – since the introduction of the competency-based approach to the UFE. From 662 Ontario students in
2003, we grew to almost 1,400 in 2009. Although numbers dropped in 2013 to just over 1,200, this is still an
increase of 81 per cent over the 2003 figures. Also noteworthy is the fact that successful first-time writers
have grown in number from a low of 472 in 2003 to over 1,000 in 2013 – an increase of 125 per cent. A chart
of the number of successful candidates is depicted below.
MEMBER, STUDENT AND VOLUNTEER INFORMATION
The ultimate UFE success rate (after four attempts) is 95 per cent for 2010-13 and 96 per cent for 2009-12.
The success rate of candidates first writing in 2011, after three attempts, is 94 per cent. The UFE success rate,
after two attempts, is 89 per cent for 2012-13.
Number of successful
UFE writers
Number of successful
first-time writers
2013
1,201
1,023
2012
1,279
1,063
2011
1,135
984
2010
1,171
924
2009
1,363
1,086
2008
1,184
1,003
2007
953
825
2006
884
724
UFE year
ONTARIO’S UFE HONOUR ROLL MEMBERS
Ontario’s top 20 writers are:
Standing (top row, from
left): James Webster of
Pickering; Jessica Di Rito of
North York; Jacob Angemeer
of Brampton; Leon Wu of
Toronto; Ben Scharfe of Ottawa;
Calvin Lem of Toronto; and
Raymond Hua of Thornhill.
Standing (middle row, from
left): Annie Xie of Toronto;
Jonas Lau of Toronto;
Kylyn Athey of Toronto;
Bijan Toufighi of Ottawa;
Andrea Down of London;
Matthew Au of Toronto; and
Carlee Bannister of London.
Seated (from left): Eric English of Waterloo; Alison McCarthy of Aurora; CPA Ontario Chair Rob Scullion;
Gold Medallist Nicholas Tsai of Toronto; Paola Ferrazzi of Waterloo; and Daniel Mancini of St. Catharines.
Missing from photo: Jacob Martin of Toronto
42
VOLUNTEER LEADERSHIP
The generous efforts of CPA Ontario’s volunteers benefit all Members and Students. These contributions
range from serving on the Discipline and other standing committees that deal with Member and Student
status, to such public service and CPA profile-raising activities as Free CPA Tax Clinics and the CA$H and
¢OIN competitions for university and high school students, respectively.
The 2013-14 standing committees and their Chairs were:
Practice Inspection
Chair:
Stephen Meek
BDO Canada LLP
Markham
Chair:
Janet Allan
KPMG LLP
St. Catharines
Discipline
Professional Conduct
Chair:
Joan Cullemore
Joan Cullemore CA Professional
Corporation
Toronto
Chair:
David Setterington
Retired
Kingsville
Examinations
Public Accounting
Licensing Board
Chair:
Trevor Ferguson
Deloitte & Touche LLP
Toronto
Chair:
William Molson
Sole Practitioner
Toronto
Membership
Elaine Sequeira
RBC Wealth Management
Toronto
MEMBER, STUDENT AND VOLUNTEER INFORMATION
Appeal
The following other volunteer leadership contributions are also recognized:
•
CPA Ontario representatives on the Public Accountants Council: Colleen Gibb (Gibb Widdis, Ancaster),
Ralph Neville (Consultant, Toronto), Erik Peters (Retired, Auditor General of Ontario, Ottawa), and
Michael Walke (PricewaterhouseCoopers LLP, Toronto).
•
Ontario representatives to the inter-CPA body committees. This year’s Ontario inter-CPA body
representatives included Cynthia Ditner (BDO Canada LLP, Toronto) and Barbara Sainty (Brock
University, St. Catharines), UFE Board of Evaluators; Rodney Burke (Blackberry Limited, Waterloo), UFE
Competency Map Committee; Rick Robertson (Western University, London), International Qualifications
Appraisal Board; Brian J. Wilson (Wilson Vukelich LLP, Markham), Professional Liability Insurance
Committee. Ontario-nominated members of CPA Canada committees: Joanna Maund (Deloitte & Touche
LLP, Toronto), Public Trust Committee; Tony Staffieri (Rogers Communications Inc., Toronto) and Beth
Wilson (KPMG LLP, Toronto), Chair, Education and Qualifications Committee; and Mary Lou Maher
(KPMG LLP, Toronto), Rules Harmonization Committee.
•
The many members of the CPA Ontario staff who volunteered countless hours to participate in working
groups that are involved in the development of the Canadian CPA profession.
43
MEMBER, STUDENT AND VOLUNTEER INFORMATION
•
The Functions Advisory Group, which does so much to put the “special” into the Convocation Ceremony
and the Annual Dinner Dance and other “special” events, Chair Mustafa Nazarali (Life Coach, Toronto).
•
Volunteer adviser on the Staff Pension Plan Committee, Kent Botham (BDO Dunwoody LLP, Markham).
•
The over 1,700 Member and Student volunteers who prepared over 14,000 returns and were actively
involved in the 2014 Free CPA Tax Clinics.
•
The several hundred Members who have: provided feedback and assistance in respect of standards
changes in the accounting and assurance areas; supported technical services projects; assisted with the
fees mediation program; and been involved in other CPA Ontario and District Association educational
and charitable activities.
•
The volunteers on the Small Practices Advisory Committee.
THE COUNCIL AND MANAGEMENT TEAM, 2013-2014
Front row (from left): Tim Kennish, Officer*; Alan Mak, Secretary; Anita Ferrari, Officer; Rob Scullion, Chair;
Michael Banks, Vice-Chair; Rod Barr, President and Chief Executive Officer; and Cathy Russell, Treasurer.
Middle row (from left): Delna Madon; Ginny Dybenko*; Nora Murrant, Executive Vice-President and COO;
Renzo Francescutti; Brian Leader, Vice-President of Learning; Monique Wijgerse, Vice-President of Marketing
and Communications; Dave Vert; and Katie Bell.
Back row (from left): Arnie Bose; Georgina Daniels; Christie Henderson; John Wright; Chris Boland; Michel
Lavigne; John Murray, Vice-President of Standards Enforcement; and Elizabeth Cowie, Vice-President and
General Counsel.
Not available for the photo (from left): Marrianne Bridge; Tom Warner, Vice-President and Registrar; Robert
Wong*; and Graham Parsons*
*Public Representatives
44
DISTRICT ASSOCIATION PRESIDENTS, 2013-2014
President
Employer/Firm/Location
Central Ontario
Denise A. Jones
Collins Barrow Durham LLP, Courtice
Cochrane
Julie A. Lemieux
Collins Barrow – Gagne Gagnon Bisson Hebert,
Kapuskasing
Eastern Ontario
Brent W.R. Wilson
Collins Barrow SEO LLP, Kingston
Essex-Kent
Julia A.B. Lee
Gordon B. Lee, Chartered Accountants, Windsor
Etobicoke
Deborah A. Schaufele
Deborah A. Schaufele, CA, Toronto
Georgian Bay
David A.W. Holmes
Rumley Holmes LLP, Barrie
Halton-Peel
Richard E. Davies
Cohen Hamilton Steger & Co. Inc., Toronto
Hamilton
Adrienne M. Barclay
Taylor Leibow LLP Chartered Accountants, Hamilton
Lambton
Brent F. Steeves
Hazlitt Steeves Harris Dunn LLP, Sarnia
Niagara
Bruce D. Binch
Jones & O’Connell LLP, St. Catharines
North Bay
Mariah W. Craig
J.S. Redpath Limited, North Bay
North York
Melanie E. Russell
Kalex Valuations Inc., Toronto
Northwestern
Ontario
Brent N. Maranzan
North West Local Health Integration Network,
Thunder Bay
Ottawa
J.B. Benoit Groulx
Raymond Chabot Grant Thornton, Ottawa
Renfrew
Kathleen A. Hoffman
Dean-Sinclair Chartered Professional Accountants,
Pembroke
Sault Ste. Marie
Liliana Silvano
Sault Area Hospital, Sault Ste. Marie
Scarborough
Brij K. Sharma
Brij K. Sharma Professional Corporation, Richmond Hill
Stormont-DundasGlengarry
H. James Pollock
Craig Keen Despatie Markell LLP, Cornwall
Sudbury
Marc R. Poitras
Poitras & Poitras Professional Corporation, Sudbury
Waterloo-Wellington
Matthew J. Flood
Rebellion Media, Waterloo
Western Ontario
Ian J. Jeffreys
KPMG LLP, London
York
Timothy T. Chan
Schwartz Levitsky Feldman LLP, Toronto
MEMBER, STUDENT AND VOLUNTEER INFORMATION
District
45
46
Notes
Chartered Professional
Accountants of Ontario
69 Bloor Street East
Toronto ON M4W 1B3
Tel: 416 962.1841
Toll Free: 1 800 387.0735
Fax: 416 962.8900
www.cpaontario.ca