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FROM: SEP-OCT 2009 ISSUE
UPDATE
AGM Set for October 16, 2009
The CGA-Canada annual general meeting will be held on Friday, October 16, 2009 at the Delta Brunswick Hotel in Saint John, New Brunswick at 3:00 p.m. Financial statements and the 2008-09 annual report are available for download from cga.org/canada. The official notice of AGM and proposed bylaw amendments will be mailed to members under separate cover.
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Debt Report’s Staggering Findings Receive Widespread Attention
The results of CGA-Canada’s recent research into household debt levels are certainly an indication of how severely Canadians are feeling the effects of the current economic downturn. Where Has the Money Gone revealed that household debt in Canada reached an all-time high of $1.3 trillion in 2008, yet Canadians perceive their financial positions to be better than they are. Increasingly, Canadian families are financing consumption activity with unearned money, using credit to pay for day-to-day living expenses.
“Household debt has increased significantly over recent years, jeopardizing the financial security of Canadian households,” says Anthony Ariganello, president and CEO of CGA-Canada. “Many Canadians are not aware of how the economic downturn has impacted their financial situation and continue to load up on their credit cards and lines of credit, while committing few, or in some cases, no resources to savings.”
But that level of awareness is changing. The report earned 79.5 million media impressions in the first week of its release in May, the largest media exposure of any CGA research report to date. cga.org/canada.
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Flawed Not-for-Profit Legislation Passes
Before adjourning for the summer, Parliament passed Bill C-4, long-awaited legislation governing federally registered not-for-profit corporations. However, the legislation contains a disputed definition of an auditor and some members of the Senate Committee on Banking, Trade, and Commerce pointedly argued for consultation between the government and relevant stakeholders to ensure that the definition does not result in additional barriers to labour mobility.
CGA-Canada led opposition to the definition, which would require auditors of federally incorporated not-for-profits to comply with any additional qualifications imposed by provincial jurisdictions, in addition to being a member in good standing of a professional association of accountants and being independent of the organization. The association’s view is that the clause is redundant, is inconsistent with federal legislation, could prevent the mobility of public accountants across jurisdictions, and restricts competition for public accounting services.
Many of the senators agreed, as did some members of the House of Commons Committee on Industry, Science, and Technology. The report of the Senate committee explicitly noted their concerns: “We are concerned that if the legislatures and accounting institutes and associations of the provinces do not give timely and due consideration to the implications of proposed subsection 180(1)(b), then the interprovincial mobility of accountants and the competitive-ness of the services they provide may be affected. The Committee urges consultation forthwith on this issue amongst relevant stakeholders to ensure consistency of rules and practices across Canada and the best possible outcome for affected parties.”
Carole Presseault, CGA-Canada’s vice-president of Government and Regulatory Affairs, was invited to appear before the Senate committee on two occasions to articulate the association’s concerns. A proposed amendment to the definition was defeated 6-6 (a tie vote on a proposed amendment at committee stage defeats the motion), an outcome that did not surprise Presseault.
“With the exception of this one clause, this is good legislation and we fully support it,” says Presseault. “It has been delayed so many times due to changes in government that there was a strong desire on all sides to move it forward and get the bill passed. However, it was obvious many senators were concerned about the effect the clause would have on CGAs and their clients. We hope that the advice of the Senate committee will be heeded.”
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CPAB Changes Deemed Positive Steps
The Canadian Public Accountability Board (CPAB) has amended its governance structure to enhance the board’s accountability, effectiveness, and collaboration with provincial regulators of public accounting. The changes address some of the concerns that CGA-Canada has raised since CPAB was first created.
Among the changes, the president of the Canadian Institute of Chartered Accountants has been replaced on the Council of Governors with a professional accountant with regulatory/audit oversight experience, appointed by the other members of the council. As well, the former “Industry Members” are now known as “Provincial Audit Regulator Members” and the criteria for becoming a “member” has been clarified. To date, the CGA associations of B.C. and Alberta are members of this group.
The CPAB board of directors will no longer include ex officio directors from three provincial CA institutes. The Board will continue to be comprised of 11 appointed directors, including at least four, but no more than five, professional accountants. CPAB will also create a consultative committee to “foster cooperation and collaboration with the professional accounting designations.”
“The next step is for CPAB to obtain the legislative authority it requires to have proper accountability,” says Anthony Ariganello, CGA-Canada president and CEO. “However these governance changes are positive steps and CPAB is to be congratulated for listening to the views of stakeholders.”
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CGA Pushes for Labour Mobility
CGA-Canada and its affiliates continue to press for labour mobility in response to the Government of Ontario’s decision to file for an exception for its public accounting licensing regime under the new provisions of the Agreement on Internal Trade (AIT). CGA released a public letter to the provincial ministers in May outlining its concerns with Ontario’s move.
Earlier this year, federal, provincial, and territorial governments agreed to amendments to the AIT that would improve labour mobility provisions by applying the mutual recognition principle. CGA argues that the Ontario position reinforces unnecessary barriers to competition and that all CGAs who have met the association’s national standards should have the ability to move freely within Canada. The latest developments can be read at cga.org/canada.
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Practice Reviewers to Gather in Toronto
CGA-Canada’s inaugural Practice Reviewer’s Forum will be held in Toronto, November 16-18. Presentations and case studies will target practice reviewers, quality control managers, monitors within firms, and mentors to new practitioners. Details at: ppm.cga-canada.org.
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INTERNATIONAL
Three Agreements Reached
Fresh off CGA-Canada’s signing of a mutual recognition agreement with CPA Ireland, several other international agreements have been reached that enable the association to better serve members and students.
An agreement was signed with Monash Corporation of Canada, a private education provider, to make CGA courses and examinations available in Mauritius. It builds on an existing agreement between Monash and the Saskatchewan Institute of Applied Science and Technology to offer a three-year diploma in the small, African island nation. CGA-Canada will offer level 4 and PACE courses and examinations through Monash.
CGA-Caribbean finalized a services agreement with Roytec, a division of the University of the West Indies, to provide administrative services to students in Trinidad and Tobago, a growth market for CGA-Caribbean.
CGA-Canada Chair Tony Ducie addressed the 60th anniversary conference of the Institute of Chartered Accountants of India in July in Agra, at which time the two organizations signed a memorandum of understanding.
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