56. Crawford Adjusters Canada Incorporated/Expertises Crawford
Canada Incorporée and The Garden City Group Inc.
("Crawford") were appointed by the Courts as Administrator
of the Plans for a 5-year term.
57. The Courts approved a budget for Crawford for Year 2,
which provided for an annual payment to Crawford of $4,794,503.00
to be paid on a monthly basis at the rate of $399,541.91
exclusive of GST.
58. The total expenses of Crawford in the year ended March 31, 2002, were
$4,574,373.00 for an under budget of $220,130.00. As is discussed in paragraph
19 above, Deloitte & Touche were asked to review the expenses of Crawford
and the Report on the Cost Review of the Expenses of Crawford is attached
as Schedule "G".
59. Additionally, Deloitte & Touche was asked to conduct an audit as at
September 30, 2001 and as at March 31, 2002 of the disbursements to Class
Members by Crawford and those audits are attached as Schedule"C"
and Schedule "D".
60. Attached as Schedule "P"
is a brief description from Crawford of its activities in the period ending
March 31, 2002.
61. Crawford proposes and the Joint Committee recommends a budget for the
year commencing April 1, 2002 of $3,874,054.00 plus GST. Attached hereto as
Schedule "Q" is a detailed budget
proposal prepared by Crawford. The proposed budget is somewhat less than the
previous year due to increased familiarity with developed procedures for processing
claims.
62. The Joint Committee recommends that Crawford be paid
in monthly instalments of $322,837.83 plus GST. Crawford
was overpaid in Year 2 by $220,130.00. Additionally, Crawford
was paid in each of April and May 2002 by $76,704.03 exclusive
of GST, an amount in excess of the proposed budget. Accordingly,
Crawford has been overpaid by an amount of $373,538.06.
Accordingly, the Joint Committee recommends that no payment
be made to Crawford for the month of June 2002 and that
a reduced payment of $272,137.60 be made to Crawford for
the month of July 2002 in order that the Trust Fund will
recover the overpayment. Thereafter, the monthly payments
will be $322,837.83 plus GST.
