Canadian Accredited Independent Schools* Annual Report

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1 Canadian Accredited Independent Schools* Annual Report Notice of Annual General Meeting to be held on Friday, October 14, 2011 at 3:30 p.m. at the Omni Hotel in Montreal, Quebec. Table of Contents 1. Notice of the AGM p Proxy (to be completed and returned) p Annual General Meeting Agenda p Resolutions Passed at the Previous Meeting p Recommendation of the Finance Committee re: Appointment of the Auditor p Recommendation of the Governance Committee re: Election of Directors p. 7 Audited Financial Statements for the year ended June 30, 2011 are included as a separate document. The Form of Proxy is also included as a separate document. *Canadian Accredited Independent Schools (CAIS) is the operating name for Canadian Educational Standards Institute, the legal entity resulting from the combination of the Canadian Educational Standards Institute and the Canadian Association of Independent Schools NOTICE OF ANNUAL GENERAL MEETING OF THE MEMBERS TO BE HELD OCTOBER 14, 2011

2 CANADIAN ACCREDITED INDEPENDENT SCHOOLS ANNUAL GENERAL MEETING OF MEMBERS October 14, 2011 PROXY The undersigned member of CAIS hereby appoints proxy, with full power of substitution, to attend and vote for and on behalf of the undersigned at the annual general meeting of the members of the Corporation to be held on October 14, 2011 at Montreal, and at any adjournment thereof. DATED October, Name of Member (Please print) Signature of Member (By Duly Authorized Officer) 3

3 ANNUAL GENERAL MEETING OF THE MEMBERS OF CAIS AGENDA 1. Call to Order 2. Attendance and Quorum 3. Presentation of Financial Statements and Auditor s Report 4. Appointment of the Auditor 5. Election of Directors 6. Executive Director s Report 7. Other Business 8. Conclusion of Meeting 4

4 THE FOLLOWING RESOLUTIONS WERE APPROVED ON OCTOBER 16, 2010, AT THE ANNUAL GENERAL AND SPECIAL MEETING OF THE MEMBERS OF CANADIAN EDUCATIONAL STANDARDS INSTITUTE IN VICTORIA, BRITISH COLUMBIA. A. Resolution appointing auditor: RESOLVED THAT Dale Tinkham & Associates LLP be appointed as auditor of the Corporation for the ensuing year and that the Board of Directors be authorized to fix the remuneration to be paid to the auditor. B. Resolution electing directors: RESOLVED THAT the number of directors of the Corporation shall, until otherwise determined, be fixed at 21 and the following persons be elected directors of the Corporation to hold office until the next annual meeting of Members or until their successors are duly elected or appointed: Patricia Dawson, Co-Chair Jeff Paikin, Co-Chair Nancy Birt Angela Burgos Robert Campbell Jonathan Goldbloom Kim Gordon Beat Guildmann Peter Jewett Steve Johnson Paul Kitchen George Kitching Jonathan Leigh Drew Stephens Bob Snowden Peter Sturrup Tina Woodside Advisors: Hugh Burke, Chris Shannon, Susan Wright, Andy Hargreaves 5

5 September 30, 2011 Report to: From: Re: Annual General Meeting Finance Committee Appointment of the Auditor The Finance Committee, on behalf of the Board of Directors, places before the meeting the financial statements for the Corporation for the year ended June 30, 2011 and the auditors report thereon and proposes the following motion for your consideration: That Dale Tinkham & Associates LLP be appointed as auditor of the Corporation for the ensuing year and that the Board of Directors be authorized to fix the remuneration to be paid to the auditor Respectfully submitted, Nancy Birt Chair, Finance Committee 6

6 September 30, 2011 Report to: From: Annual General Meeting Governance Committee Re: Board of Directors The Nominating Committee, on behalf of the Board of Directors, proposes the following motion for your consideration: That the number of directors of the Corporation shall, until otherwise determined, be fixed at 17 and the following persons be elected directors of the Corporation to hold office until the next annual meeting of Members or until their successors are duly elected or appointed: Jeff Paikin, Chair Nancy Birt Angela Burgos Robert Campbell Rob Cruickshank Jonathan Goldbloom Kim Gordon Beat Guildmann Peter Jewett Steve Johnson Paul Kitchen George Kitching Michaele Robertson Drew Stephens Bob Snowden Peter Sturrup Tina Woodside Advisors: Hugh Burke, Andy Hargreaves, Chris Shannon, Susan Wright Respectfully submitted, Tina Woodside Chair, Governance Committee 7

7 Financial Statements of CANADIAN EDUCATIONAL STANDARDS INSTITUTE (operating as Canadian Accredited Independent Schools) June 30, 2011

8 To the Board of Directors of Canadian Educational Standards Institute INDEPENDENT AUDITORS' REPORT We have audited the accompanying financial statements of the Canadian Educational Standards Institute, which comprise the balance sheet as at June 30, 2011, and the statements of operations and net assets and cash flows for the year then ended, and a summary of significant accounting policies and other explanatory information. Management s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with Canadian generally accepted accounting principles and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor s Responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with Canadian generally accepted auditing standards. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion the financial statements present fairly, in all material respects, the financial position of the Canadian Educational Standards Institute as at June 30, 2011 and its financial performance and its cash flows for the year then ended in accordance with Canadian generally accepted accounting principles. TORONTO, Ontario September 16, 2011 Licensed Public Accountants

9 CANADIAN EDUCATIONAL STANDARDS INSTITUTE Balance Sheet As at June Assets Current Cash $ 503,564 $ 802,883 Short term investments (note 3) 301,668 - Accounts receivable 10,814 52,788 Sales taxes receivable 42,612 1,528 Inventory 2,928 - Prepaid expenses 21,272 34, , ,401 Capital assets (note 4) 5,027 7,425 $ 887,885 $ 898,826 Liabilities Current Accounts payable and accrued liabilities $ 54,852 $ 82,194 Deferred revenue (note 5) 179, , , ,948 Contributed surplus 345, ,600 Net assets 308, ,278 Commitments (note 7) 653, ,878 $ 887,885 $ 898,826 On behalf of the Board: Director Director See accompanying notes to financial statements

10 CANADIAN EDUCATIONAL STANDARDS INSTITUTE Statement of Operations and Net Assets Year ended June (note 8) Revenues Accreditation $ 39,729 $ 36,078 Annual membership fees (note 6) 773, ,621 Boarding School Fairs 25,449 26,885 Boarding School Pilot Project 221,002 63,998 Book sales 2,238 1,146 Interest income 3, National Tracking Project - 11,125 Other income 2,200 - Professional development conferences 394, ,900 Sponsorships 42,453-1,503,970 1,055,404 Expenses Accreditation 40,364 38,209 Advertising and marketing 38,423 14,918 Amortization 4,370 5,025 Boarding School Fairs 22,661 24,923 Boarding School Pilot Project 221,002 63,998 Insurance 5,736 7,138 Office 66,773 57,945 Professional development conferences 365, ,336 Professional fees 43,823 24,746 Purchase of services 58,912 66,504 Rent 12,601 9,198 Research projects 28,246 19,667 Salaries and benefits 423, ,846 Strategic planning 1,163 18,771 Transition - 39,796 Travel, conferences and meetings 70,279 60,640 1,403, ,660 Excess of revenues over expenses for the year 100,811 98,744 Net assets, beginning of year 207, ,534 Net assets, end of year $ 308,089 $ 207,278 See accompanying notes to financial statements

11 CANADIAN EDUCATIONAL STANDARDS INSTITUTE Statement of Cash Flows Year ended June Cash provided (used) by Operating activities Excess of revenues over expenses for the year $ 100,811 $ 98,744 Amortization of capital assets 4,370 5,026 Changes in non-cash working capital balances 105, ,770 Accounts receivable 41, ,634 Short term investment (301,668) 234,049 Inventory (2,928) - Prepaid expenses 12,930 (33,257) Accounts payable and accrued liabilities (27,342) 64,942 Deferred revenue (84,410) (265,287) Sales taxes receivable (41,084) 16,274 Cash provided (used) by operations (297,347) 228,125 Financing and investing activities (Purchase) of capital assets (1,972) (5,310) Transfer of net assets from CAIS - 345,600 Cash provided (used) by financing and investing activities (1,972) 340,290 Increase (decrease) in cash during the year (299,319) 568,415 Cash, beginning of year 802, ,468 Cash, end of year $ 503,564 $ 802,883 Supplemental information: Interest received $ 1,923 $ 651 See accompanying notes to financial statements

12 CANADIAN EDUCATIONAL STANDARDS INSTITUTE Notes to the Financial Statements June 30, Organization The Canadian Educational Standards Institute (the Institute) was incorporated by Letters Patent on January 22, 1986 under the Canada Corporations Act as a corporation without share capital. The Institute's mission is to promote educational excellence through a rigorous school accreditation process. On April 1, 2010, the operations of the Canadian Association of Independent Schools (the Association) were combined with the Institute. The Association's mission was to set high standards of character and behaviour for their students, while providing outstanding academic preparation for higher education. All member schools viewed intellectual, moral, physical and emotional development as integral parts of the education of each student. All of the Association's assets, obligations and commitments were transferred to the Institute as at April 1, 2010 and the mission of the Association is continued under the Institute. Canadian Educational Standards Institute is a registered charity under the Income Tax Act and, as such, is exempt from income taxes provided certain conditions are met. 2 Accounting policies and basis of statement presentation The financial statements have been prepared by management in accordance with Canadian generally accepted accounting principles. The preparation of the Canadian Educational Standards Institute's financial statements in conformance with Canadian generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the balance sheet date and the reported amounts of revenue and expense during the reporting period. Actual results could differ from such estimates. The significant accounting policies are: (a) Revenue recognition (b) (c) Fees are set annually by the Board of Directors. School fees are recognized as revenue over the school year to which they relate. Application and evaluation fees are recognized when received or receivable if the amount can be reasonably determined and collection is reasonably assured. Interest on short term investments is recorded as income when earned. Membership fees are amortized into income over the term of service. Conference fees and project revenues are recognized at the completion of events. Contributed materials and services Volunteers provide invaluable donated services to the Institute. Since volunteer time is not purchased, these contributed services are not recognized in the financial statements. Financial instruments The Institute's financial instruments consist of cash, short-term investments, accounts receivable and accounts payable and accrued liabilities. It is management's opinion that the Institute is not subject to significant interest, currency or credit risks arising from these financial instruments. Due to the short term nature of the financial instruments, fair values approximate book values. The Institute has made the following classifications: Account Cash Short term investments Accounts receivable Accounts payable and accrued liabilities Deferred revenue Classification Held for trading Held for trading Loans and receivables Other liabilities Other liabilities

13 CANADIAN EDUCATIONAL STANDARDS INSTITUTE Notes to the Financial Statements June 30, Accounting policies and basis of statement presentation (continued) (d) Capital assets Capital assets are stated at cost less accumulated amortization. The Institute provides amortization on its capital assets to amortize costs over the expected useful life of the respective assets using the straight-line method as follows: 3 Short term investments Computers Short term investments consist of GICs: 3 years GIC, cashable, maturing December 12, 2011, bearing interest at 1.00% $ 300,000 $ - Accrued interest 1,668 - $ 301,668 $ - 4 Capital assets Cost Accumulated Cost Accumulated Amortization Amortization Computers $ 17,046 $ (12,019) $ 15,075 $ (7,650) Net book value $ 5,027 $ 7,425 5 Deferred revenue Deferred revenues represent conference fees received in advance, contributions to the Boarding School Pilot Project and contributions to the National Research Project. Conference revenue is recognized when the conference is completed. Contributions for the Boarding School Pilot Project and the National Research Project are recognized in income as related expenditures are incurred Leadership Institute $ 115,792 $ 129,200 Boarding School Pilot Project - 71,002 National Research Project 63,552 63,552 $ 179,344 $ 263,754

14 CANADIAN EDUCATIONAL STANDARDS INSTITUTE Notes to the Financial Statements June 30, Fee revenues School fees $ 771,141 $ 666,578 Evaluation fees - 19,043 Application fees 2,000 - $ 773,141 $ 685,621 School fees for the year 2010/2011 were $17 per student (2009/ $17) and were payable in two installments based on the school's actual enrollment with a minimum fee of $3,000 per school. 7 Commitments In July 2011 the Institute committed to a marketing plan for the period from July 2011 to September The total commitment for the contracted services over this period are $227,779 plus HST. 8 Comparative figures The comparative figures have been recast to conform to the presentation adopted in the current year.

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