2001 Annual Report
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Overview and Summary
1. The 1986 - 1990 Hepatitis C Fund (the "Trust Fund")
completed its first 16 months of operation on March 31,
2001.
2. A total of approximately $100,000,000 has been paid
in benefits to approximately 1700 claimants. There are a
further 3300 claims which are in process awaiting the submission
of further information by the claimants or the completion
of a traceback search, or both.
3. The audited financial statements, Schedule
"A", indicate a total of $876,425,000 held
by the Trustee as at March 31, 2001. The total unpaid liability
of the provincial governments is approximately $300,000,000
for a total available to Class Members of $1.1 billion.
4. Expenses for the start up of the Trust Fund (inclusive
of counsel fees) were $53 million. The administration expenses
for the 16 month period were $9 million. The Joint Committee
expects that the overall administrator expenses in Year
2 will be in the same range as Year 1. The Joint Committee
is recommending that the budgets for the Administrator and
Canadian Blood Services be increased in order to facilitate
more timely processing of claims.
5. The following chart summarizes the budget versus actual
expenses for the service providers in the past year:
|
Service Provider
|
Budget to March 31, 2001
|
Actual
|
Variance
|
Note
|
| Auditor (Deloitte & Touche) |
$45,000.00 |
$45,000.00 |
Ø |
Auditor was asked to perform other non-audit
services for which payment will be sought. |
Trustee
(Royal Trust) |
$166,870.00 |
$108,937.00 |
(57,933.00) |
No monies beyond actual
expenses have been paid. |
Investment Manager
(TD Asset Management Inc.) |
$263,004.00 |
$192,615.63 |
(70,388.00) |
No monies beyond actual expenses have
been paid. |
Investment Consultant
(Towers Perrin) |
$56,004.00 |
$56,004.00 |
Ø |
|
Actuary
(Eckler Partners Ltd.) |
$36,000.00 |
$22,079.00 |
(13,920.00) |
Credit balance will be offset by billings
in Year 2. |
Administrator
(Crawford/Garden City Group Canada) |
$4,551,347.00 |
$4,267,151.00 |
(284,196.00) |
Credit balance will
be offset by billings in Year 2. |
| Canadian Blood Services (CBS) |
up to $500,000.00 |
$413,560.00 |
|
|
6. The following chart summarizes the proposed budgets
for service providers in Year 2.
|
Service Provider
|
Proposed Budget
to March 31, 2002
(excludes GST)
|
Proposed Monthly Charges (excludes
GST)
|
Payment to balance credits plus
adjust for actual in April & May, 2001
|
| Auditor (Deloitte & Touche) |
$45,000.00 |
$3,750.00 |
Ø |
Trustee
(Royal Trust) |
$166,870.00 |
up to $13,906.00 |
Ø |
Investment Manager
(TD Asset Management Inc.) |
$263,004.00 |
up to $21,917.00 |
Ø |
Investment Consultant
(Towers Perrin) |
$56,000.00 |
$4,666.67 |
Ø |
Actuary
(Eckler Partners Ltd.) |
$68,000.00 |
$5,666.67 |
June - Ø
July - $746.74 |
Administrator
(Crawford/Garden City Group Canada) |
$4,510,305.00 |
$399,541.82 |
June - $155,871.81 |
| Canadian Blood Services (CBS) |
$1,289,810.00 |
$107,484.00 |
To be reviewed September 30, 2001 for effectiveness |
7. Fund Counsel incurred fees and disbursements in the
16 months ending March 31, 2001 of approximately $1 million.
It is anticipated that this amount will be similar in Year
2 as the volume of appeals increases. No amounts are paid
to Fund Counsel without a specific court order.
8. Joint Committee fees and disbursements incurred in the
16 months ending March 31, 2001 were approximately $1.2
million. It is anticipated that this amount will decrease
in Year 2. However, the preparation of the actuarial report
for submission to the court in June of 2002 will require
substantial Joint Committee time. Furthermore, there remains
a number of areas relating to the simplifying of the claims
process, the timeliness of claim payments and the efficiency
of traceback searches which will be priorities for the Joint
Committee in Year 2. No amounts are paid to the Joint Committee
without a specific court order.
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