The Order is concerned by the issue of fund transfers raised during the preparatory phase of the Higher Education Summit
Montreal, January 31, 2013 – The CPA Order wishes to provide an independent external perspective on the views exchanged during the preparatory phase of the Higher Education Summit. It should be noted that the reliability of financial statements, which are audited by CPAs cannot be called into question in any way. Indeed, universities are required to prepare their financial statements in accordance with Canadian accounting standards, while the CPA’s opinion on these financial statements must be issued in accordance with Canadian Auditing Standards.
“The resource envelopes received from the Ministère de l’Enseignement supérieur, de la Recherche, de la Science et de la Technologie (MESRST) allow for funds to be transferred from the operating fund to the capital fund. Under no circumstances is this accounting manipulation, and this practice does not call into question the validity of the audited financial statements,” said Daniel McMahon, FCPA, FCA, president and CEO of the CPA Order.
Here is a straightforward example. Part of the funding allocated to the universities by the MESRST in the operating fund is earmarked for purchases of furniture, tools and equipment. Purchases of computers used for teaching are funded through the resource envelope of the operating fund, but at year end, in accordance with accounting standards, these acquisitions must be transferred to the capital fund since the assets in question will provide benefits over more than one fiscal year. “These fund transfers are therefore a standard and regulated practice,” added Mr. McMahon.
All firms conduct financial statement audits in compliance with applicable budget rules, accounting standards and auditing standards. “In all cases, we can assure the public of the professionalism and thoroughness of our CPA members who do the work.” In this regard, it is hoped that the Summit’s recommendations will lead to a better alignment of university funding rules, budget rules and accounting standards with the aim of maximizing transparency and improving the various stakeholders’ understanding of accounting information.
About the Ordre des CPA du Québec
The Ordre des comptables professionnels agréés du Québec has over 35,600 members and 6,500 candidates and students. The Order ensures the protection of the public and the visibility of the profession. It represents all areas of expertise of the accounting profession, including assurance, financial accounting, management and management accounting, finance and taxation.
CPAs are professionals recognized for their rigor, acumen, versatility and credibility. They have been trained to be the best in their area of expertise, and their skills enable them to serve businesses, organizations and the general public.
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Ordre des CPA du Québec
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