SOCIETY FOR EDUCATIONAL VISITS AND EXCHANGES IN CANADA

BOARD OF DIRECTORS TELECONFERENCE

November 4, 2009

2:00 p.m.

CONFIDENTIAL

PRESENT:Christine Rapp, President

Roch Carrier, Vice- President

Mariette Ferré

Mary Reeves

Stacia Loft

Katherine D’Entremont

Bruce Bishins

Denise Nawata

Sandy Dobson, Director of Finance and Administration

Laurie Clement, Executive Director

Michael Merpaw, Partner, Collins Barrow

Catherine Chapman, Manager, Collins Barrow

Regrets:Kyran Dwyer

Michael Wheeler

Connie MacKinnon

Garry Saunders

  1. Call to Order

The meeting was called to order by President Christine Rapp at 2:05p.m, after confirming that a quorum was present.

  1. Staff Financial Report for 2008-09 Fiscal Period

Sandy DobsonwelcomedMichael Merpaw and Catherine Chapman, the audit partner and managerfrom the audit firm Collins Barrow. Sandy reviewed the financial report together with the budget versus actual financial information. The period under discussion is September 1, 2008 to August 31, 2009. Compared to budget, the Youth Exchanges program was over spent by less than $20 in administration and it was under spent by $70,000 in travel. The RVC program showed a net loss of $51,715 as already noted at the September board teleconference. All program costs and most of the direct costs of the RVC program were covered but none of the indirect costs were covered. Within the budget section “Other Programs and Initiatives” (Revenue Diversification), there were of two new one-time projects, FSL Lesson Plans and Short Term/Long Term Research. We undertook two forums, one new and one recurring. The organization continued to benefit from funding from the Webster Foundation and the Trillium Foundation. Donations were lower than expected. The net income from this budget section is used to offset corporate costs leaving a net income of $4,016. Corporate costs were lower than budget due mainly to the termination of the Education Officer position. The board had no questions.

  1. Financial Reporting Checklist 2008-09

Sandy noted that this checklist was introduced in May 2008 and asked that if any Board members required a copy signed by Laurie and Sandy, to advise Sandy prior to the Board meeting at the end of the month. The Board had no questions.

  1. Audited Financial Statements 2008-09

Sandy noted that cash and investment balances were down compared to last year, due mainly to the holdback from Exchanges Canada on the final year of the contribution agreement. She also noted that capital assets grew in the year due mainly to the purchase and implementation of the CRM database.

Michael Merpaw, partner for Collins Barrow, provided an overview ofthe 2008-09statements noting that the presentation of the statements is the same as the internal drafts prepared by Sandy. He stated that the audit had gone very well and commended staff on their audit preparation. There were some additions to the notes to the financial statements in accordance with new reporting requirements. Note 10 Capital Disclosures is standard wording for NPOs. In the Summary of Significant Accounting Policies, there is information regarding further note disclosure commencing next year. This information relates to informing readers of the statements how costs are allocated across programs and departments. Mary asked what effect this would have on SEVEC. It may mean some additional work in disclosing allocations, but it will not change how we allocate costs. The new disclosure will force NPO’s to revisit how they allocate costs. This is something SEVEC staff review annually. Denise asked what affect this change would have on SEVEC now because the note referred to interim statements; Mike advised Denise that this did not affect SEVEC.

Bruce asked what affect the new harmonized tax would have on SEVEC. SEVEC staff are reviewing their non-travel costs to determine the affect. Bruce will provide clarification from the airlines once they finish their review.

Chris offered Laurie and Sandy thanks on behalf of the Board for their financial work. The formal approval of the financial statements will be delayed until the Board has final (not draft) financial statements. This will occur when the Board meets face-to-face on Monday November 30 prior to the AGM.

  1. Management Letters

Catherine Chapman, Manager, Collins Barrow reviewed the reporting letter with the Board. The letter which describes the audit processis,again, similar to other years. The auditors did not uncover any items that require reporting to the Board. No fraudulent activities were detected. When contacted, the lawyers did not identify any outstanding issues which would require inclusion in the financial statements.

Catherine also presented the management letter which was a “no issues” letter meaning the auditors had no points to bring forward to the Board for review or action.

  1. Other Business- none
  1. Adjournment

There being no further business, the meeting was adjourned by Christine Rappat 2:45 p.m.

Reviewed and approved:

______

President of the BoardDate

______

Member of the BoardDate

1