ANNUAL REPORT 2006 - 2007 by WoodyWoodcock

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									ANNUAL REPORT
  2006 - 2007
    Board members:

    Front row: Ms. Holly Gracey (Treasurer / CCIC), Ms.
    Rivka Augenfeld (Secretary / Public Interest), Ms. Dawn
    Moore (CCIC)

    Back row: Mr. John Koury (Public Interest), Mr. John P.
    Ryan (Chair / CCIC), Mr. Nigel Thomson (CCIC), Mr.
    Imran Qayyum (Vice-Chair / CCIC), Mr. Michel Bento
    (Public Interest), Mr. Alfred Wong (CCIC)




    Canadian Society of Immigration Consultants
    Munich Re Centre, 390 Bay Street, Suite 1600
    Toronto ON M5H 2Y2
    Canada

    Telephone:        1-416-572-2800
    Toll free:        1-866-308-CSIC (2742)
    Facsimile:        1-416-572-4114
    Email:            information@csic-scci.ca
    Website:          www.csic-scci.ca




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                                              ANNUAL REPORT 2006 - 2007
CONTENTS
Part One: Reports and Background
Report of the Chair                                   4
Report of the CEO                                     6
About Us                                              7
2006-2007 Achievements                                9

Part Two: Chapters
Chapter One        Registration                      12
Chapter Two        Education                         14
Chapter Three      Consumer Protection               16

Part Three: Appendix
Appendix One       Financial Statements              21




                                                          3
                         ANNUAL REPORT 2006 - 2007
                          Chair
                          Mr. John P. Ryan




    REPORT OF THE CHAIR
    As I reflect over the last 12 months, the achievements of the Society have continued at
    a breathtaking pace. The Society itself has in three short years come a very long way
    indeed. However, we must all recognize that there is still much work to do as the needs
    and requirements of the Consumer and our diverse membership are evolving, requiring us
    to be constantly improving our processes to fulfill our role as the regulator of Immigration
    Consultants. I am proud to report that CSIC continues to meet its mandate while growing
    the membership at a healthy rate.

    So much has happened this year but two events in particular need mentioning. Firstly,
    our National Continuing Professional Development conference held in May 2007 was
    a resounding success. This conference saw the coming together of over 600 Certified
    Canadian Immigration Consultants from all over the world to attend the two-day educational
    event in Toronto. Internationally renowned dignitaries such as Stephen Lewis and Ralph
    Nader gave riveting keynote speeches to the attendees, underscoring the importance of
    professionalism and consumer protection. Representatives from International Regulators,
    such as the Office of the Immigration Services Commissioner in the UK and the President of
    the Migration Agents Registration Authority from Australia, were also in attendance to support
    their Canadian counterpart. In fact, since the conference, CSIC has been in discussions
    with these and other Regulators to form an international coalition of Regulators in the
    hope of enhancing our ability to protect offshore clients while examining the possibilities of
    creating new opportunities for our members.

    Secondly, our Federal Court victory in the Law Society of Upper Canada v. The Minister
    of Citizenship and Immigration et al where Justice Hughes dismissed the case and
    concluded that amending the Immigration Law to recognize CSIC members as “Authorized
    Representatives” along with lawyers and Quebec Notaries was valid and well within the
    scope of Governor in Council’s powers. This decision played a pivotal role for CSIC and
    the membership as it reaffirmed the Society’s position as the regulator of Immigration
    Consultants as well as the rights of CCICs to practice their profession and be recognized
    as “authorized representatives”, a right the plaintiff was trying to take away through its
    numerous legal arguments. Although the Society has been party to several litigations, this
    case was by far the biggest and most serious challenge to our profession.

    Penultimately, my thanks to the CSIC team: the staff, the management and the Board of
    Directors for their commitment, drive and enthusiasm which has helped mould and drive the




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                                    ANNUAL REPORT 2006 - 2007
Society forward to fulfill its mandate and overcome the many challenges we have faced.

Finally – a word about the future, CSIC will continue to vigorously press Government
partners to remedy the issue of Ghost Agents, we will continue to build relationships
with both domestic and foreign regulatory partners, we will implement the Compensation
Fund needed to compensate the victims of the criminal actions of a CSIC member, we will
continue to nurture and strengthen our noble profession as we welcome new members into
our ranks – in short, we have a very bright and prosperous future.

Respectfully Yours.




John P. Ryan OSJ, CCIC, ICD.D.
Chair




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                              ANNUAL REPORT 2006 - 2007
                          Chief Executive Officer
                          Mr. Ross Eastley




    REPORT OF THE CEO
    The 2006-2007 fiscal year was another eventful one for the Society as this was the first
    time the Society operated with only Certified Canadian Immigration Consultants (CCICs)
    as members.

    This progression to CCICs, which occurred during the previous fiscal year, dubbed the
    Transition Period, resulted in a membership base that was essentially halved. Such a drastic
    reduction in membership numbers and the loss of their associated fees spelled a sharp
    decrease in revenue and some tough choices for the Society. Fortunately, this foreseeable
    struggle was planned for and indicated in our 2005-2006 Annual Report, allowing us to
    finance this year’s $838,308 deficit by means of our previous year’s accumulated surplus.

    Another of the more significant issues that addressed the Society this year was the
    financial failure of York College of Industry and Technology (YCIT) located in Toronto. The
    vulnerability of the Society apparent in the failure of this college was one of the reasons
    behind the creation of the Canadian Migration Institute (CMI) and its planned online
    immigration practitioner program.

    On a more positive note, several reports were submitted to Citizenship and Immigration
    Canada (CIC) as part of the ongoing requirements under our contribution agreement,
    now completed. CSIC continues to meet with various government departments to discuss
    matters of common interest and to keep building awareness of the Society. The information
    kit we developed and widely distributed helps us in this promotion, as well as does the
    “Adopt an MP” program we instituted, in which immigration practitioners were encouraged
    to bring CSIC’s information kit to their local MPs. These efforts have resulted in increased
    cooperation and certainly a much greater awareness of CSIC within the government and
    the greater population.

    I would like to thank the Board and staff for their dedication and support. Although we were
    fewer than the previous year, we accomplished a significant amount. It takes a dedicated
    team to make CSIC happen and I am proud to be a part of it.




    Ross Eastley, C.A.
    CEO and Registrar


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                                   ANNUAL REPORT 2006 - 2007
ABOUT US
The Canadian Society of Immigration Consultants is an independent, federally incorporated
not-for-profit body operating at arms length from the federal government. CSIC is
responsible for regulating the activities of immigration consultants who are members
and who provide immigration advice for a fee. In addition, the Society is responsible for
ensuring the education and competency testing of its members.


Mandate

The Society’s mandate is to protect the consumers of immigration consulting services and
ensure the competent and professional conduct of its members.


History

In 2002, the Minister of Citizenship and Immigration Canada created an Advisory Committee
to identify the various problems within the immigration consulting industry. The committee’s
job was to report back and propose recommendations on how to regulate and improve the
industry.

The need for regulation stemmed from a number of factors. For many years, there were
no set standards for the levels of education, the quality of services, or the professional
accountability necessary to offer one’s services as an immigration consultant. This led to
confusion among the immigrant and refugee communities.

For example, many did not understand the differences between a lawyer, an immigration
consultant and a non-governmental organization and were unfamiliar with Canada’s official
languages and immigration laws. Even the filling out of forms was an intimidating task.

The committee found that some consultants were indeed unscrupulous, holding themselves
out as experts on the subject of immigration despite the fact that they had little or no training
or experience. There was also a concern that this was just the tip of the iceberg – because
many victims were either afraid to complain or resided outside of Canada.

As well, there was no formal complaints process established to deal with those consultants
who abused the trust of their clients and therefore tarnished the industry as a whole.

These findings, coupled with the Committee’s recommendations, eventually resulted in the
creation of the Canadian Society of Immigration Consultants (CSIC) – an independent and
self-regulating body for immigration consultants who are members and who charge a fee
for their services.




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                                 ANNUAL REPORT 2006 - 2007
    The Government of Canada amended the Immigration and Refugee Protection Regulations
    as of April 13, 2004 so that all practicing immigration consultants in Canada needed to be
    members in good standing with either the Canadian Society of Immigration Consultants,
    a Canadian law society or the Chambre des notaires du Québec in order to participate
    in new matters before Citizenship and Immigration Canada (CIC), the Immigration and
    Refugee Board (IRB) and the Canadian Border Services Agency (CBSA).

    As of April 13, 2004, these three government agencies only conduct business on new
    matters with immigration consultants offering their services for a fee who are members in
    good standing of one of the three groups mentioned above.


    CSIC ORGANIZATIONAL STRUCTURE

                 CSIC
           Board of Directors


                                                                Canadian Migration Institute
                                                                    Board of Directors



                                          Registration




                                           Education




                                      Consumer Protection

          Chief Executive Officer

                                     Hearings and Discipline




                                        Communications
                                                                        Reception



                                         Administration                Accounting



                                                                           I.T.




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                                    ANNUAL REPORT 2006 - 2007
2006-2007 ACHIEVEMENTS
Federal Court Victory

The Federal Court, in the Law Society of Upper Canada v. The Minister of Citizenship and
Immigration, the Canadian Society of Immigration Consultants and the Attorney General of
Canada, found the Governor in Council has the power to enact regulations with respect to
Immigration Consultants. In this momentous decision, CSIC and the Department of Justice
were successful in defending the amendment to the Immigration and Refugee Protection
Act Regulations, allowing Certified Canadian Immigration Consultants to practice their
profession and be recognized as “Authorized Representatives”.


Hearings Process

Following a two-year implementation procedure, the Hearings Process was finalized in
2006 as the last regulatory element to be rolled out in keeping with the Society’s Strategic
Plan. Before the end of the fiscal year, CSIC had issued its first notices of proceedings as
well as held its first pre-hearing conferences.


Continuing Professional Development

Our first world-class mandatory CPD conference, “Building our Future”, was held at the Royal
York Hotel in Toronto and featured many internationally renown guests, such as Ralph Nader,
Stephen Lewis, the Society’s Chair, John Ryan, the President of the Australian Migration
Agents Registration Authority, Arnold Conyer, and the UK Commissioner of Immigration
Services, Suzanne McCarthy. All of the workshops and most of the keynote speeches from
this conference were taped and are available in our new Media Centre, accessible via our
revamped website. Building upon its work of the previous fiscal year, CSIC continued to
improve and augment its mandatory and voluntary continuing professional development
(CPD) programs. The Society also brought online an automated system that allows Full
Members to automatically record their CPD credits.


Website and Media Centre

Our website was completely reworked with a new look and feel. The new version allows
potential clients to contact members directly while providing an easy-to-use interface for
both consumer and consultant alike. We also introduced the Media Centre as an important
resource that allows members to obtain both mandatory and voluntary education year-round
via the internet, irrespective of geographic location and in the language of their choice.




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                               ANNUAL REPORT 2006 - 2007
     Canadian Migration Institute

     CSIC took a major step towards improving the availability of bilingual educational
     opportunities by creating the Canadian Migration Institute. CMI was created in September
     of 2007 with a mandate to educate, accredit and advocate. One of CMI’s primary roles will
     be to deliver a fully bilingual threshold immigration practitioner program via the internet,
     available to students around the clock, anywhere in the world.


     End of the Transitional Period

     CSIC adopted a process of transitional membership whereby existing unregulated
     immigration consultants could make an orderly transition to a regulated environment.
     These transitional members had to meet the Society’s professional standards by October
     31, 2006 but were allowed to continue practicing in the interim.

     Transitional Members who did not complete the Society’s Full Membership Requirements by
     October 31, 2006 subsequently lost the privileges of being authorized representatives. This
     had a significant effect on the Society’s fiscal year as it significantly decreased membership
     numbers. The Society planned for the deficit, limited membership fee increases, and
     membership numbers finally recovered from 847 to 1133 Full Members by October 31,
     2007, a 25% growth.

     The end of the Transitional Process served to establish the brand of Certified Canadian
     Immigration Consultants (CCICs) as the brand of choice among consumers, further
     cementing in the public’s mind the Society’s commitment to ensure the competency of its
     members in the public interest.


     Expedited Application Process

     In order to accommodate the needs of Transitional Members who could not meet the
     requirements for Full Membership by October 31, 2006, special provisions were made by
     the CSIC Board of Directors to allow these members to re-apply for Full Membership by a
     new deadline of December 15, 2006. This process was known as the Expedited Application
     Process. EAP applicants then had until October 31, 2007 to satisfy all the necessary Full
     Membership requirements. During this period, these practitioners could not legally act as
     ‘Authorized Representatives’ as the regulator did not recognize them.


     Re-registration

     Member re-registration is an important element that allows the Society to efficiently regulate
     its members in the public interest. Our first re-registration took place during this fiscal
     year and provided the Society with current, accurate and up to date information on all its
     members.




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                                     ANNUAL REPORT 2006 - 2007
Election of the Board of Directors

From June 6-8, 2007, CSIC held its second annual election of the Society’s Board of
Directors, in which 478 voters, or 45.7 % of the Membership, participated. Mandates for the
six Standing Committees of the Society were reviewed and adjusted in accordance with the
strategic plan. Committee Chairs, as well as other various Members of the Society, were
appointed to the committees.



Meetings with International Regulatory Bodies

Following meetings at our landmark CPD conference in which both Arnold Conyer,
President of the Migration Agents Registration Authority of Australia, and Suzanne
McCarthy, Commissioner of the UK Office of Immigration Services, delivered important
keynote speeches, the CEO and Board Chair were invited to meet with several leading
regulatory bodies during the 2006-2007 fiscal year. Discussions with the Australian
Migration Agents Registration Authority and the UK Office of Immigration Services provided
excellent opportunities to explore how each society could mutually benefit from increased
cooperation.




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                               ANNUAL REPORT 2006 - 2007
                                                     Registration Department:
                                                     (from left to right)

                                                     Jessika Morelli (Manager), Renée
                                                     Hébert, Marie Gladys JN-Gilles




     CHAPTER ONE
     REGISTRATION
     The Registration department, consisting of committed and diverse staff, is one of the
     essential organs of the Society. Whether in person, via email or over the phone, registration
     staff is often the first point of contact between the Society and its members. The primary
     role of the department is to provide relevant information and assistance to prospective
     members and full members alike during the registration and re-registration process. The
     registration department is essential in maintaining the Society’s registry and in providing
     information to the public and government partners who contact it for verification of
     consultants’ accreditation.


     Expedited Application Process

     Members who could not meet the Society’s Full Membership requirements by October
     31, 2006, were given until December 15 of the same year to reapply for Membership.
     This provision was known as the Expedited Application Process. An extended deadline
     of October 31, 2007 was granted to these EAP applications, essentially giving them an
     extra year to satisfy all necessary Full Membership requirements. EAP applicants could not
     practice as ‘Authorized Representatives’ until these requirements were met.


     Renewal of Membership

     In 2007, the Society began its first re-registration procedure, requiring all Full Members to
     complete a Renewal of Membership Questionnaire. The essential purpose of the Renewal of
     Membership Questionnaire was to update the Society on any changes members had made
     to their status, addresses, and business relationships. Accurate information is essential to
     CSIC’s role as regulator in the public interest.




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                                    ANNUAL REPORT 2006 - 2007
By October 31, 2007 (the end of the EAP deadline)
EAP Applicants                                                               264

EAP Applicants who met the Full Membership Requirements                       93

Applicants declined for not meeting the Full Membership Requirements         171




Total Membership
October 31, 2006                                                            847

October 31, 2007                                                            1133

                                                                       a 25% increase




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                         ANNUAL REPORT 2006 - 2007
                               Education Department:

                               Emmanuelle Fontaine (Manager),
                               Absent: Teresa Austin




     CHAPTER TWO
     EDUCATION
     Examination Committee

     The Examination Committee, composed of Certified Canadian Immigration Consultants,
     continued its work to ensure that exam questions remained current and accurate. The
     committee participated in two Angoff sessions, whose purpose was to determine the
     difficulty of new exam questions and to accurately reflect scores based on the feedback
     given by its panel of experts.

     During 2006-2007, CSIC scheduled 6 membership exams at eight different test centres
     across Canada, in Vancouver, Calgary, Regina, Winnipeg, Toronto, Montreal, St John and
     Fredericton.


     Entry-level Education Providers

     In 2006-2007, three additional colleges were accredited to offer threshold immigration
     practitioner programs: the University of British Columbia, Ashton College, and LaSalle
     College. These programs received probationary approval for a one-year period.

     York College of Industry and Technology ceased to be recognized by the Society as an
     accredited educational provider in July of 2007. To the extent possible, CSIC accommodated
     students who had completed the program but had not obtained a transcript or diploma from
     the college.




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                                   ANNUAL REPORT 2006 - 2007
2007 CSIC Conference

In May 2007, CSIC organized its first educational conference in Toronto. 622 people
attended the two-day event, including 528 members. Keynote speeches were delivered by
Ralph Nader, Stephen Lewis, the Society’s Chair, John Ryan, the President of the Australian
Migration Agents Registration Authority, Arnold Conyer, and the Commissioner of the UK
Office of Immigration Services, Suzanne McCarthy. All of the workshops and a majority of
the keynote speeches were videotaped and made available via the internet to the members
through the CSIC Media Centre. By attending the Conference, Full Members of the Society
obtained the 15 mandatory Continuing Professional Development points they would need
to renew their membership at the end of October 2008.

                                  Full Membership Exam Statistics
                       Passed          Failed   (no. of exams)
                     2004-2005                   2005-2006                2006-2007

                                                 93.8% (15)               72.2% (13)
     Bow Valley
                     100% (1)                    6.3% (1)                 27.8% (5)


                     50% (1)                     52.4% (33)               54.7% (47)
        YCIT
                     50% (1)                     47.6% (30)               45.3% (39)

                     86.7% (13)                  81% (162)                77.3% (17)
      Seneca
                     13.3% (2)                   19% (38)                 22.7% (5)

                     100% (4)                    83.9% (120)              83.8% (31)
        UBC
                                                 16.1% (23)               16.2% (6)


                                                 25% (3)                  66.7% (30)
      Humber
                                                 75% (9)                  33.3% (15)

                                                                          72.7% (48)
      Ashton
                                                                          27.3% (18)


                                                                          50% (13)
      LaSalle
                                                                          50% (13)

     Uncertified     80% (24)                    50.6% (766)              62.5% (5)
    Practitioners
                     20% (6)                     49.4% (749)              37.5% (3)

                                                                          37.1% (53)
   EAP Applicants
                                                                          62.9% (90)

    Total Exams     52 (80.8% pass rate)        1949 (56.4% pass rate)   451 (56.8% pass rate)




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                                  ANNUAL REPORT 2006 - 2007
                                                           Consumer Protection Department:

                                                           Back row: Peter Benesch
                                                           Middle row: Catharinah Kim,
                                                           Catherine McGillivray, Pierre Briand
                                                           Front row: Wenda Woodman
                                                           (Manager), Gerry Heddema,
                                                           Alexandra Seay




     CHAPTER THREE
     CONSUMER PROTEC TION
     Between November 1, 2006 and October 31, 2007, the Consumer Protection Department
     received a total of 290 complaints. As of October 31, 2007, the Department had 210 open
     complaint files. (See table 1).

     The largest number of complaints related to allegations of Competence and Quality of
     Service followed closely by Non Jurisdictional Matters (pertaining to Ghost Agents, or
     matters arising prior to the Society’s inception, or matters arising prior to an individual’s
     membership in the Society, or matters pertaining to revoked/former members, lawyers and
     others). Advertising matters constituted 16% of the total allegations and was the third most
     common allegation followed closely by Advising Clients & Retainer and Fees. There was a
     significant drop between Retainer & Fees (14%) and Preservation of Client Property (5%).
     Other matters (including fraud and other criminal allegations), withdrawal of representation,
     Member’s obligation to the Society and Professional Misconduct were significantly less
     common. (See table 2).

     A substantial number of the complaints received involved Members from Ontario (63%),
     followed by British Columbia, and Quebec. A smaller percentage of complaints involved
     Members from the provinces of Alberta, Manitoba, and other provinces. Complaints
     received from overseas and/or the US constituted 15% of the total complaints received
     while only 4% of the Members against whom complaints were made were located overseas
     and/or in the US.

     The geographic distribution of complainants was roughly proportional to that of the Members.
     (See tables 3 and 4).




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                                    ANNUAL REPORT 2006 - 2007
The majority of complaints received were Client against Member, Client against Non
-Jurisdictional Agent, and CSIC against Non-Jurisdictional Agent. Complaints filed on
behalf of the Society largely pertained to ghost agent advertising. Other complaints
included: CSIC against Member, Member against Non Jurisdictional Agent and Member
against Member. Complaints were received from lawyers on behalf of clients, from MPs
on behalf of constituents, from CIC (including CBSA, IRB) and from other investigating/
policing bodies.

Complaints received against Non-Jurisdictional Agents, individuals unauthorised to practice,
including individuals practicing prior to the inception of the Society, or matters arising prior
to an individual’s membership in the Society, lawyers or others and ghost agents (including
revoked or former members practicing in breach of the Revocation Policy) made up 39% of
the total complaints received. (See table 5).

From November (2006) to October (2007), the Department closed 252 complaints.
Approximately 40% of these complaints were closed as a result of non-jurisdictional matters.
Unsubstantiated allegations and other reasons for closure combined were responsible for
the closure of 36% of the files. Mediation, corrective action and letters of caution made
up 15% of closures. The remaining closures consisted of matters in which there was
insufficient information to proceed or in a few instances anonymous complaints.


Consumer Protection 2006-2007 – Table 1
Unresolved complaints carried forward from 2004-2005                     107
Complaints received or reopened 2005-2006                                248
Complaints closed 2005-2006                                              153
Unresolved complaints carried forward into 2006-2007                     191
Complaints received 2006-2007                                            290
Complaints closed 2006-2007                                              252
Unresolved complaints carried forward into 2007-2008                     210

Nature of allegations – issues raised in complaints – Table 2
                                             Number of complaints     Percentage of complaints
Competence/Quality of service                          76                       22%
Retainer and Fees                                      50                       14%
Preservation of client property                        18                       5%
Advising clients                                       51                      14.5%
Member’s obligation to the Society (re-
                                                       4                       0.5%
sponsibility to the profession)
Advertising                                            55                       16%
Conduct unbecoming                                     0                        0%
Withdrawal of representation                           6                        2%
Non - Jurisdictional                                   65                       19%




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                                  ANNUAL REPORT 2006 - 2007
     Breach of confidentiality                              3                       1%
     Non-discrimination                                     6                       2%
     Professional Misconduct                                2                      0.5%
     Outside Interests                                      1                      0.5%
     Other                                                 11                       3%
     TOTAL (includes multiple allegations in a
                                                           348
     complaint)


     Geographic Distribution by Complainant – Table 3
                                                   Number of complaints   Percentage of complaints
     Alberta                                               12                       4%
     British Columbia                                      36                      12%
     Manitoba                                               3                       1%
     New Brunswick                                          0                       0%
     Newfoundland & Labrador                                0                       0%
     Nova Scotia                                            1                      0.5%
     Ontario                                               181                     63%
     Prince Edward Island                                   0                       0%
     Quebec                                                12                       4%
     Saskatchewan                                           1                      0.5%
     Territories                                            0                       0%
     Other                                                 44                      15%
     TOTAL                                                 290

     Geographic Distribution by Member – Table 4
                                                   Number of complaints   Percentage of complaints
     Alberta                                               14                       5%
     British Columbia                                      53                      18%
     Manitoba                                               5                       2%
     New Brunswick                                          0                       0%
     Newfoundland & Labrador                                0                       0%
     Nova Scotia                                            0                       0%
     Ontario                                               181                     63%
     Prince Edward Island                                   0                       0%
     Quebec                                                24                       8%
     Saskatchewan                                           1                       0%
     Territories                                           12                       4%
     Other                                                  0                       0%
     TOTAL                                                 290




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                                         ANNUAL REPORT 2006 - 2007
Source of Complaint – Table 5
                                                 Number of complaints   Percentage of complaints
Member against member                                     8                       3%
Member against non-jurisdictional                        11                       4%
Client against member                                    150                     52%
Client against non-jurisdictional                        68                      23%
CSIC against member                                      17                       6%
CSIC against non-jurisdictional                          36                      12%
Other entity                                              0                       0%
TOTAL                                                    290

Reason for Close – Table 6


                                                 Number of complaints   Percentage of complaints
Unsubstantiated Allegations                              47                      18%
Corrective Action                                        13                       5%
Mediation                                                21                       8%
Non-Jurisdictional                                       104                     40%
Undertaking                                               0                       0%
Letter of Caution                                         6                       2%
Insufficient information to proceed                      22                      8.5%
Withdrawn                                                 0                       0%
Anonymous                                                 1                      0.5%
Other                                                    46                      18%
TOTAL (includes multiples ie. a letter of cau-
                                                         260
tion in conjunction with corrective action)



Trends in Consumer Protection 2006-2007

•	 The trend of multiple allegation complaints continued from the previous year.

•	 Multiple complaints continued to be received against individual members & non-
   jurisdictional agents.

•	 There was a significant increase from the previous year in the number of non-
   jurisdictional complaints.

   The increase in non-jurisdictional complaints (those brought forward against ghost
   agents and other non jurisdictional agents including lawyers) was reflected in the
   new line item ‘CSIC against Non-Jurisdictional’, in the number of ‘non-jurisdictional’
   allegations and in the ‘jurisdictional’ reasons for closure. The number of client




                                                                                                   19
                                       ANNUAL REPORT 2006 - 2007
        against non-jurisdictional complaints also significantly increased bringing the total of
        non jurisdictional complaints to 39% of received complaints up from approximately 4%
        in 2005-06.

     •	 Competence and Quality of Service remained the primary allegation in a large
        percentage of complaints received. However, there was a notable increase in
        allegations pertaining to advertising (particularly against ghost agents); from 10% in
        2005-6 to 16% in 2006-7. Similar to the previous year, there was an even distribution
        of allegations pertaining to retainer & fees and advising clients.

     •	 As a result of the newly initiated hearings process, First Notice of Proceedings were
        sent out in September in three matters which were assigned to hearing.

     •	 The geographic distribution of complaints was in direct proportion to the geographic
        distribution of Members. The highest number of complaints originated from Ontario,
        followed by British Columbia and Quebec. The demand for skilled and temporary
        foreign workers in Alberta increased the activity in that region and consequently the
        number of complaints against members operating in Alberta increased. Complaints
        against members in other provinces constituted 2% of total received complaints.

     •	 There was a marked increase in complaints against International members and
        ghost agents (no distinction was made between the geographic location of members
        and non-jurisdictional agents). While the Society’s international membership
        remained small, the increased number of non-jurisdictional complaints (against non-
        jurisdictional agents residing outside of Canada) was accountable for the increased
        international activity.

     •	 The Consumer Protection department established links with other immigration
        consultant regulatory bodies (including MARA & OISC) to assist with the investigation
        of multi-jurisdictional complaints.




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                                    ANNUAL REPORT 2006 - 2007
APPENDIX ONE
FINANCIAL STATEMENTS




   Financial Statements


   Canadian Society of Immigration Consultants


   October 31, 2007




                                                 21
                ANNUAL REPORT 2006 - 2007
     Contents


     Contents


                                                                     Page Page
                                                                          Page

     Auditors’ Report
     Auditors’ Report                                                 23       1
                                                                               1

     Statements of Revenue and Expenses
     Statements of Revenue and Expenses                               24       2
                                                                               2

     Statements of Changes in Net Assets
     Statements of Changes in Net Assets                              25       3
                                                                               3

     Balance Sheet
     Balance Sheet                                                    26       4
                                                                               4

     Statement of Cash Flows
     Statement of Cash Flows                                          27       5
                                                                               5

     Notes to the Financial Statements
     Notes to the Financial Statements                               28-31   6-9
                                                                             6-9




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                                         ANNUAL REPORT 2006 - 2007
                   Contents


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                                                                                                                      T (416) 366-0100
                                                                                                                      F (905) 475-8906
                                                                                                                             Page
                                                                                                                      www.GrantThornton.ca


                   Auditors’ Report                                                                                                 1

                   Statements of Revenue and Expenses                                                                               2
                       To the of Changes of
                   StatementsShareholders in Net Assets                                                                             3
                            Canadian Society of Immigration Consultants
                   Balance Sheet                                                                                                    4

                   Statement of Cash Flows                                                                        5
                       We have audited the balance sheet of Canadian Society of Immigration Consultants as at October
                            31, 2007, and the statements of revenue and expenses and changes in net assets, and cash flows
                   Notes to the Financial Statements                                                                6-9
                            for the year then ended. These financial statements are the responsibility of the Society’s
                            management. 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 plan and perform an audit to obtain reasonable assurance
                            whether the financial statements are free of material misstatement. An audit includes examining,
                            on a test basis, evidence supporting the amounts and disclosures in the financial statements. An
                            audit also includes assessing the accounting principles used and significant estimates made by
                            management, as well as evaluating the overall financial statement presentation.

                            In our opinion, these financial statements present fairly, in all material respects, the financial
                            position of the Society as at October 31, 2007 and the results of its operations and its cash flows
                            for the year then ended in accordance with Canadian generally accepted accounting principles.



                            Markham, Canada
                            January 11, 2008                                                                 Chartered Accountants
                                                                                                        Licensed Public Accountants




                                                                                                                                             23
Audit • Tax • Advisory
                                                                            ANNUAL REPORT 2006 - 2007
Grant Thornton LLP. A Canadian Member of Grant Thornton International Ltd
     Contents
      Canadian Society of Immigration Consultants
      Statements of Revenue and Expenses
      Year Ended October 31

                                                                         2007                2006

      Revenue
        Membership fees                                          $ 2,170,834        $ 2,796,240
        Processing, administrative and other fees                    642,439            863,988
                                                                                         Page
        CPD conference fees                                          483,046                   -
        Other income
     Auditors’ Report                                                 59,829             46,079
                                                                                             1
                                                                   3,356,148          3,706,307
     Statements of Revenue and Expenses                                                      2
      Expenses
     Statements of Changes in Net Assets
         Amortization                                                   81,162                 3
                                                                                           99,844
         Bad debt                                                            -             32,247
     Balance Sheet
         Consulting                                                    221,112                 4
                                                                                          126,954
         Directors fees                                                470,514            264,558
     Statement of Cash Flows                                                                   5
         Insurance                                                      27,962             18,258
         Membership development
     Notes to the Financial Statements                                  86,305            281,573
                                                                                            6-9
         Office and general                                            199,599            223,218
         Professional fees                                             892,589            673,013
         Public relations and communications                           130,826             86,107
         Rent                                                          217,753            222,240
         Telephone                                                      85,191             75,575
         Travel and accommodation                                      319,044            203,985
         CPD conference expenses                                       517,641                   -
         Salaries and benefits                                         944,758          1,012,745
                                                                     4,194,456          3,320,317

      Excess (deficiency) of revenue over expenses               $    (838,308)     $    385,990




                          See accompanying notes to the financial statements.


24
                                     accompanying notes to - 2007
                                 See ANNUAL REPORT 2006 the financial statements.


                                                                                                     2
         Contents

Canadian Society of Immigration Consultants
Statements of Changes in Net Assets
Year Ended October 31


                                                             Internally        Invested
                                                           Restricted -       In Capital          2007              2006
                                       Unrestricted       Contingency            Assets           Total             Total

                                                                                                    Page
Balance, beginning of year         $      641,253     $       255,869     $    291,687     $ 1,188,809        $   802,819
         Auditors’ Report                                                                                 1
Excess (deficiency) of revenue over
         Statements of Revenue and Expenses
    expenses                         (838,308)                                                 (838,308) 2        385,990

        Statements of Changes in Net Assets
Contingency fund allocation           255,869                (255,869)                               -    3             -

          Balance Sheet
Invested in capital assets                  16,182                             (16,182)               -   4             -

Balance, end of year of Cash Flows $
         Statement                          74,996    $               -   $    275,505     $   350,501    5 $ 1,188,809

         Notes to the Financial Statements                                                           6-9




                               See accompanying notes to the financial statements.


                                                                                                                       25
                                             ANNUAL REPORT 2006 - 2007
                               See accompanying notes to the financial statements.


                                                                                                                   3
         Contents

      Canadian Society of Immigration Consultants
      Balance Sheet
Canadian Society of Immigration Consultants
      October 31, 2007
Balance Sheet
October 31, 2007                                                                         2007                 2006
          Assets
          Current                                                             2007                 2006
Assets       Cash and cash equivalents                                       $ 2,514,789       $ 2,581,333
Current      Receivables                                                        1,682,326         1,192,821
                                                                                                     Page
 Cash and cash equivalents
             Prepaids                                               $ 2,514,789 148,572
                                                                                     $ 2,581,333     45,325
 Receivables
         Auditors’ Report                                             1,682,326 4,345,687
                                                                                        1,192,821 3,819,479
                                                                                                         1
 Prepaids Capital assets (Note 3)                                       148,572 275,505 45,325 291,687
         Statements of Revenue and Expenses                           4,345,687         3,819,479        2
Capital assets (Note 3)                                                 275,505 4,621,192 291,687 4,111,166
                                                                             $                 $
         Statements of Changes in Net Assets                                                             3
           Liabilities                                              $ 4,621,192      $ 4,111,166
          Balance Sheet
           Current                                                                                       4
Liabilities Payables and accruals                                              $  697,483      $    363,754
                       Cash Flows
Current Statement of revenue (Note 4)
             Deferred                                                           2,713,717
                                                                                                         5
                                                                                                  1,663,935
  Payables and accruals                                             $   697,483 359,491 363,754 394,668
                                                                                     $
             Members’ deposits
          Notes to the Financial (Note 5)
  Deferred revenue (Note 4) Statements                                2,713,717 3,770,691             6-9
                                                                                        1,663,935 2,422,357
  Members’ deposits (Note 5)
           Long term                                                    359,491           394,668
           Loan payable, Government of Canada (Note 6)                3,770,691 500,000 2,422,357 500,000
Long term                                                                         4,270,691         2,922,357
  Loan payable, Government of Canada (Note 6)
          Equity                                                         500,000            500,000
            Invested in capital assets                                 4,270,691 275,505  2,922,357 291,687
Equity      Internally restricted – contingency                                           -           255,869
Invested inUnrestricted
             capital assets                                              275,505     74,996 291,687 641,253
Internally restricted – contingency                                             -           255,869
Unrestricted                                                              74,996 4,621,192 641,253 4,111,166
                                                                              $                  $

                                                                    $ 4,621,192           $ 4,111,166

         Commitments (Note 9)
         Contingencies (Note 10)
Commitments (Note 9)
Contingencies (Note 10)

           On behalf of the Society

On behalf of the Society

           Chair of the Board                       Chief Executive Officer                     Chair of the Audit Committee

Chair of the Board                       Chief Executive Officer                     Chair of the Audit Committee

                                   See accompanying notes to the financial statements.


26
                                              ANNUAL REPORT 2006 - 2007
                                          See accompanying notes to the financial statements.

                                See accompanying notes to the financial statements.
                                                                                                                               4
Contents
 Canadian Society of Immigration Consultants
 Statement of Cash Flows
 Year Ended October 31

                                                                     2007              2006

 Increase (decrease) in cash and cash equivalents

    Operating activities                                                             Page
      Excess (deficiency) of revenue over expenses           $    (838,308)   $     385,989
Auditors’ Reportaffecting cash
      Items not                                                                          1
         Amortization                                               81,162           99,844
         Loss on disposal of Expenses
Statements of Revenue andcapital assets                              4,194               2-
                                                                  (752,952)         485,833
Statements of Changes in Net Assets working capital items
     Changes in non-cash operating                                                       3
        Prepaids                                                  (103,247)           (7,453)
Balance Sheet                                                                             4
        Payables                                                   333,729          (160,227)
        Deferred revenue
Statement of Cash Flows                                          1,049,782         1,663,935
                                                                                          5
        Members’ deposits                                          (35,177)           22,578
        Receivables Statements
Notes to the Financial                                            (489,505)       (1,167,789)
                                                                                       6-9
                                                                     2,630           836,877

   Investing activities
     Purchase of capital assets                                    (69,174)         (16,454)
     Proceeds from disposal of capital assets                            -            4,514
                                                                   (69,174)         (11,940)

 Net (decrease) increase in cash and cash equivalents              (66,544)         824,937

 Cash and cash equivalents, beginning of year                    2,581,333        1,756,396

 Cash and cash equivalents, end of year                      $ 2,514,789      $ 2,581,333




                     See accompanying notes to the financial statements.


                                                                                                27
                                ANNUAL REPORT 2006 - 2007
                    See accompanying notes to the financial statements.

                                                                                          5
     Contents
      Canadian Society of Immigration Consultants
      Notes to the Financial Statements
      October 31, 2007

      1.     Nature of operations

      The Canadian Society of Immigration Consultants (the Society) was incorporated under the
      Canada Corporations Act as a not-for-profit organization and, as such, is exempt under the
      Income Tax Act. The Society was funded initially by the Department of Citizenship and
      Immigration Canada (the Department) and primarily by members. It was established as a
      regulatory body to regulate the activities of immigration consultants, protect the users of the
      services of registered members, and promote the competency and professionalism of its
      members.
                                                                                              Page

     Auditors’ Report                                                                            1
      2.     Accounting policies
     Statements of Revenue and Expenses                                                          2
       Fund accounting
     Statements of Changes in Net Assets                                                         3
       The Society follows the restricted fund method of accounting for contributions.
     Balance Sheet                                                                         4
       The General Fund accounts for the organization’s membership services and administrative
       activities. Cash Flows
     Statement ofThis fund reports unrestricted resources and restricted operating grants. 5
      Use of estimates
     Notes to the Financial Statements                                                        6-9
      The preparation of financial statements in conformity with Canadian generally accepted
      accounting principles requires management to make estimates and assumptions that affect the
      amounts reported in the financial statements and the accompanying notes. Although these
      estimates are based on management’s best knowledge of current events, actual results could
      differ from these estimates.

      Capital assets

      Property and equipment are recorded at cost. Amortization is provided over the estimated
      useful lives of the property and equipment using the following annual rates and methods:

             Computer hardware and software            -   30% diminishing balance
             Furniture, fixture and office equipment   -   20% diminishing balance
             Leasehold improvements                    -   11 years straight-line

      Revenue recognition

      Restricted contributions related to general operations are recognized as revenue of the General
      Fund in the year in which the related expenses are incurred. All other restricted contributions
      are recognized as revenue of the appropriate restricted fund.

      Unrestricted contributions are recognized as revenue of the General Fund in the year received
      or receivable if the amount to be received can be reasonably estimated and collection is
      reasonably assured.

      Membership fees and administrative fees are recognized as revenue over the period to which
      they relate. Non-refundable registration fees are recognized as income when received.


28
                                                                                                  6
                                         ANNUAL REPORT 2006 - 2007
Contents
  Canadian Society of Immigration Consultants
  Notes to the Financial Statements
  October 31, 2007

  2.     Accounting policies (continued)

  Financial Instruments

  The Canadian Institute of Chartered Accountants has issued new accounting standards
  comprising handbook Section 3855 “Financial Instruments – Recognition and Measurement,”
  and Section 3865 “Hedges.” These standards increase harmonization with U.S. and         Page
  international accounting standards. The adoption of these standards is required for fiscal years
Auditors’ Reportor after October 31, 2006.
  beginning on                                                                                 1

  These standards require Expenses
Statements of Revenue andthat all financial assets be classified as either held for trading (‘HFT’),2
  held to maturity (‘HTM’), available-for-sale (‘AFS’), or loans and receivables. Financial liabilities
  are classified as either Net Assets
Statements of Changes inHFT or other. Initially, all financial assets and financial liabilities must3be
  recorded on the statement of financial position at fair value with subsequent measurement
  determined by
Balance Sheet the classification of each financial asset and liability. Transaction costs related to4
  investments held for trading are expensed as incurred. Transaction costs related to AFS, HTM,
  loans and Cash Flows
Statement of receivables and deposits are capitalized and are then amortized over the expected      5
  life of the instrument.
Notes to the Financial Statements                                                                6-9
  HFT financial assets and financial liabilities are measured at fair value with the changes in fair
  value reported in excess (deficiency) of revenue over expenses. HTM financial assets, loans
  and receivables and financial liabilities other than those held for trading are measured at
  amortized cost. AFS financial assets are measured at fair value with changes in fair value
  reported in deferred contributions or changes in net assets.

  Derivative instruments are recorded on the statement of financial position at fair value. The
  organization does not have any derivatives to be designated as hedges.

  There is no impact of the adoption of these standards on the Society as the Society’s current
  accounting policies are consistent with the new standard.


  3.     Capital assets                                                          2007            2006

                                                       Accumulated              Net              Net
                                               Cost    Amortization      Book Value       Book Value

  Computer hardware and software        $ 446,730        $ 293,422        $ 153,308        $ 192,959
  Furniture, fixture and
    Office equipment                        152,500          62,394            90,106          70,701
  Leasehold improvements                     39,977           7,886            32,091          28,027

                                        $ 639,207        $ 363,702        $ 275,505        $ 291,687




                                                                                                          29
                                    ANNUAL REPORT 2006 - 2007

                                                                                                    7
     Contents
      Canadian Society of Immigration Consultants
      Notes to the Financial Statements
      October 31, 2007

      4.     Deferred revenue

      Membership dues for the membership year commencing November 1, 2007 to October 31,
      2008 and insurance administration fees for the period April 13, 2008 to October 31, 2008 were
      invoiced to members in October 2007. These billings are included in the receivables as at
                                                                                             Page
      October 31, 2007.
     Auditors’ Report                                                                           1

     Statements of Revenue and Expenses
       5.   Members deposits                                                                        2

     Statements of Changes in Net Assets                                                             3
       Applicants to the Society make an initial payment to the Society, a portion of which is held as a
       deposit until the member qualifies for full membership status.
     Balance Sheet                                                                                   4

     Statement of Cash Flows                                                                        5
       6.   Loan payable, Government of Canada
     Notes to the Financial Statements                                                        6-9
      The Department of Citizenship and Immigration Canada advanced a repayable contribution of
      $500,000 for the Society’s on-going operations for the period from April 1, 2004 and March 31,
      2005. This advance is interest free and repayable within 12 months from the date that the
      Society reports to the Department that 3,000 immigration consultants are registered as
      members.


      7.     Internally restricted - contingency

      In the preceding year the Board of Directors set aside as a contingency reserve of $1 million to
      fund potential litigation proceedings. During the year litigation costs of $370,072 were incurred
      of which $255,869 was funded out of this contingency fund. At year-end, there is no balance
      remaining in this fund.


      8.     Supplementary cash flow information                                2007              2006

      Cash and cash equivalents comprise the following:

      Cash balances                                                    $ 1,376,752        $    997,610
      Short term investments with term to maturity of less
        than 90 days                                                     1,138,037          1,583,723
                                                                       $ 2,514,789        $ 2,581,333




30
                                       ANNUAL REPORT 2006 - 2007




                                                                                                     8
Contents
 Canadian Society of Immigration Consultants
 Notes to the Financial Statements
 October 31, 2007

 9.     Commitments

  The Society has entered into an operating lease for office space which expires on June 15,
  2015. Future minimum lease payments under this lease are as follows:
                                                                                      Page
        2008                                                  $    241,092
        2009
Auditors’ Report                                                   241,092               1
        2010                                                       241,092
        2011
Statements of Revenue and Expenses                                 241,092               2
        2012                                                       241,092
        Thereafter
Statements of Changes in Net Assets                                642,912               3

Balance Sheet                                                   $ 1,848,372                   4

Statement of Cash Flows                                                                        5
  10. Contingent liabilities
Notes to the Financial Statements                                                           6-9
  The Society is party to a number of disputes and lawsuits in the normal course of business.
  The Society believes that the potential loss will not impair the operations of the Society. The
  outcome of the lawsuits is not determinable at this time.

 As management is confident that the ultimate liability arising from these matters will have no
 material impact on the financial statements, the Society has not accrued for any estimated
 losses that it may suffer in the lawsuits. Losses, if any, are recognized in the period that they
 become determinable.


 11.    Comparative figures

 Certain figures in the 2006 comparative financial statements have been reclassified to conform
 with the basis of presentation used in the current year.




                                                                                                     31
                                 ANNUAL REPORT 2006 - 2007




                                                                                               9
32
     ANNUAL REPORT 2006 - 2007

								
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