Questions and answers

Q&A about the Agency
Q&A about the AIR – for co-ops
Q&A about the AIR – for auditors
Q&A about the Agency’s consent-to-share information form
Q&A for Risk Rating
Q&A about the Co-op Data Report
Q&A about the Client Website
Q&A about Your Physical Condition Rating
Q&A on S95 Net Operating Revenue
Q&A for ILM Co-ops Post Year 15
Q&A on Insurance for Housing Co‑operatives
Q&A on Secondary Financing
Q&A on Workouts
Q&A about Capital Replacement Reserve Plans

Questions and answers about the Annual Information Return (for Auditors)

1. Why did the Agency develop an Annual Information Return (AIR)?
2. Why is the Agency asking the auditor to file the AIR?
3. How will the AIR benefit the co-op?
4. What is the deadline for filing the AIR?
5. How do I file the AIR?
6. Does the AIR replace the audited financial statements and auditor’s letter?
7. Does the co-op still have to fill out an Annual Project Data Report (APDR – Section 95 co-ops only)?
8. What if the co-op’s financial statements have a different presentation than the AIR?
9. Do I have to use the exact wording in the Accountant’s report and specified procedures?
10. Who do I contact if I have questions?

1. Why did the Agency develop an Annual Information Return (AIR)?

The Agency developed an annual information return to:

• collect financial data to risk rate co-ops, and
• monitor their compliance with operating agreements.

The AIR recapitulates the information in the financial statements in a standardized format. This will allow the Agency to conduct, on an electronic basis, various tests to determine the degree of financial risk a co-op represents. The representations in the AIR will allow the Agency to determine a co-op’s compliance with their (CMHC) operating agreement.

The AIR will also allow the Agency to provide reports to co-ops on their operations and to compare their results to similar co-operatives.

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2. Why is the Agency asking the auditor to file the AIR?

The information in the AIR is mainly financial and will be information the auditor is already familiar with based on his or her annual audit of the co-op’s financial records. Filling out the AIR requires financial training that is not normally present among co-op directors or managers.

In addition, the Agency requires the information in electronic format in order to conduct the risk and compliance tests. It would not be possible for all co-operatives to file a web-based report, but it is possible for all auditors to do so.

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3. How will the AIR benefit the co-op?

Co-operatives will benefit from the AIR because there will be greater analysis of a co-op’s situation. It will also be possible to give co-ops reports showing how their results compare to those of similar co-ops. Over time, the Agency will be able to identify best practices and share them with all co-operatives in our portfolio.

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4. What is the deadline for filing the AIR?

The AIR is due four months after the end of the co-op’s fiscal year.

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5. How do I file the AIR?

The AIR will be filed via the Internet. The Agency will give you a user name and password which will allow you to access a web-based AIR.

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6. Does the AIR replace the audited financial statements and auditor’s letter?

No. The co-op will still send its audited financial statements and the auditor’s letter annually. They will go to the Agency now instead of CMHC; to the office where the Co-op’s Relationship Manager is located.

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7. Does the co-op still have to fill out an Annual Project Data Report (APDR – Section 95 co-ops only)?

The AIR will largely replace the Annual Project Data Report for Section 95 co-ops. There will be a separate subsidy reconciliation spreadsheet to complete which will provide a breakdown of income-tested assistance used by the co-operative during the year.

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8. What if the co-op’s financial statements have a different presentation than the AIR?

The financial statements belong to the co-op and it is up to each co-op to decide on format and presentation, often with advice from their auditor. The Agency cannot require a specific format for the audited financial statements, however auditors may want to review the co-op’s current financial statement presentation in light of the AIR.

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9. Do I have to use the exact wording in the Accountant’s report and specified procedures?

No. We worked closely with the CICA on the wording of the Accountant’s Report and the specified procedures, however you may have developed your own, slightly different wording.

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10. Who do I contact if I have questions?

If you have questions about the AIR, contact Ken Lawson at
(613) 234-4557 ext.626 or by email at klawson@agency.coop

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