2017 Financial Report

2017 Fiscal Year

Lazer Grant Chartered Accountants have conducted the annual audit and presented the financial statements for December 31st, 2017.  The financial statements were prepared in accordance with the Canadian accounting standards for not-for-profit organizations. This report summarizes the financial statements.

Total revenue at December 31, 2017 was $16.6 million which included $8.8 million of core revenue and $7.8 million in project and grant revenue.  Core revenue represented 52.9% of total revenue and Project and Grant revenue represented 47.1% of total revenue.

Total expenditures for the year were $15.3 million.

Excess of revenue over expenses for the year was $1.3 million.

2017 Revenue

2017 Revenue


Summary of Revenues

  2017 % 2016 %
REVENUES
Core Revenue
Export Assessment $2,304,648 26.27% $2,198,966 26.61%
Processor Assessment 2,057,848 23.46% 1,958,130 23.70%
Levy Assessment - Grower Organizations 3,835,595 43.72% 3,544,052 42.89%
Life Science Companies Contribution 520,000 5.93% 520,000 6.29%
Investment Interest 32,353 0.37% 18,735 0.23%
Memberships 22,000 0.25% 22,335 0.27%
Total Core Revenue $8,772,444 100.00% $8,262,218 100.00%
Project & Grant Revenue
Market Development & Market Access $2,052,352 26.30% $2,214,824 29.75%
Crop Production & Innovation 241,332 3.09% 228,919 3.08%
Science Cluster Research 2,937,758 37.65% 2,418,774 32.49%
Canola Agronomic Research Program 1,043,069 13.37% 1,162,471 15.62%
Canola Performance Trials 305,710 3.92% 170,441 2.29%
Communications 402,985 5.16% 370,515 4.98%
Salaries 329,594 4.22% 371,582 4.99%
Finance and Overhead 21,221 0.27% 21,031 0.28%
Canola Digest 468,718 6.01% 485,151 6.52%
Total Project & Grant Revenue $7,802,740 100.00% $7,443,709 100.00%
   
TOTAL REVENUES $16,575,184   $15,705,927  




Summary of Core Revenue

  2017 % 2016 %
Core Revenue
Export Assessment $2,304,648 26.27% $2,198,966 26.61%
Processor Assessment 2,057,848 23.46% 1,958,130 23.70%
Levy Assessment - Grower Organizations 3,835,595 43.72% 3,544,052 42.89%
Life Science Companies Contribution 520,000 5.93% 520,000 6.29%
Investment Interest 32,353 0.37% 18,735 0.23%
Memberships 22,000 0.25% 22,335 0.27%
Total Core Revenue $8,772,444 100.00% $8,262,218 100.00%
 
  2017
Tonnes
2016
Tonnes
Change
from 2016
Export Assessment 10,020,209 9,560,722 459,487  
Processor Assessment 8,947,165 8,513,609 433,556  
Levy Assessment - Grower Organizations 16,676,500 15,408,922 1,267,578  
  35,643,874 33,483,253 2,160,621  



2017 Core Revenue

 


Summary of Project and Grant Revenue

  2017 % 2016 %
Project & Grant Revenue
Market Development & Market Access $2,052,352 26.30% $2,214,824 29.75%
Crop Production & Innovation 241,332 3.09% 228,919 3.08%
Science Cluster Research 2,937,758 37.65% 2,418,774 32.49%
Canola Agronomic Research Program 1,043,069 13.37% 1,162,471 15.62%
Canola Performance Trials 305,710 3.92% 170,441 2.29%
Communications 402,985 5.16% 370,515 4.98%
Salaries 329,594 4.22% 371,582 4.99%
Finance and Overhead 21,221 0.27% 21,031 0.28%
Canola Digest 468,718 6.01% 485,151 6.52%
Total Project & Grant Revenue $7,802,740 100.00% $7,443,709 100.00%


2017 Project & Grant Revenue

 


Summary of Expenditures

  2017 % 2016 %
Market Development & Market Access $4,269,322 27.97% $4,704,188 30.98%
Crop Production & Innovation 1,335,332 8.75% 1,249,262 8.23%
Science Cluster Research 3,359,141 22.00% 2,889,066 19.03%
Canola Agronomic Research Program 1,043,069 6.83% 1,162,471 7.66%
Canola Performance Trials 305,710 2.00% 170,441 1.12%
Communications 444,624 2.91% 571,800 3.77%
Salaries 3,254,282 21.32% 3,080,370 20.29%
Corporate Affairs 357,393 2.34% 413,713 2.72%
Finance & Overhead 431,638 2.80% 458,084 3.02%
Canola Digest 468,718 3.07% 485,151 3.20%
TOTAL EXPENSES $15,269,230 100.00% $15,184,546 100.00%

 

2017 Revenue

 


Reserve Summary

For the year ended December 31, 2017, the Council exceeded its 2017 Reserve Requirement by $2,505,205.

Accumulated surplus, December 31, 2016 $3,985,195
2017 audit - excess of revenues over expenses $1,305,954
Accumulated surplus, December 31, 2017 $5,291,149
Closure surplus policy requirements,  2017 $1,133,500
Revenue Stabilization surplus policy requirement,  2017* $1,652,444
Total 2017 Surplus requirement: $2,785,944
Excess over surplus requirement - 2017 $2,505,205


* As per Board policy, the Revenue Stabilization Surplus Requirement is calculated as 20% of the actual core revenues of the previous audited year.

2016 Core Revenues $ 8,262,218, x 20% = $1,652,444

 


Agri-Marketing Program and Science Cluster Summary

GF2 Agri-Marketing Program and Science Cluster funded programs make up 29.8% of total revenues and 48.5% of total expenses.

The Science Cluster program is funded by Agriculture Canada, as well as the provincial grower organizations and corporate sponsors.

2017 AMP Revenue $2,008,724 % of Total Revenue 2.12%
2017 AMP Expenses $4,046,693 % of Total Expenses 26.51%
2017 Science Cluster Revenue $2,937,758 % of Total Revenue 17.72%
2017 Science Cluster Expenses $3,359,141 % of Total Expenses 22.00%
AMP & SC Revenue $4,946,482 % of Total Revenue 29.84%
AMP & SC Expenses $7,405,834 % of Total Expenses 48.51%

 

Government Funded Programs – Update

Canola Council has two major programs within GF2.  The Agri-Marketing Program funds market development and market access, while oil, meal and crop production research are funded through the Science Cluster program. 

These are 5 year programs ending March 31, 2018.  They operate on the Government of Canada’s fiscal year, April 1 to March 31.  January 1 – March 31, 2018 will be quarter 4 of year 5 for both programs.

Agri-Marketing Program:

At December 31, 2017 we have used 96.7% of the program allocation (Y1Q1 through Y4Q3).

  • Total Y1-Y5 funding:  $19,088,000
  • Forecast Y1 – Y5 utilization of funding $17,817,500
  • Forecast lapse $1,270,500 – 6.7% of total funding

We anticipate using ~ 93% of the program allocation.

Science Cluster:

Science Cluster cut-off dates are different from Agri-marketing program.   At September 30, 2017 (Q2) we have used 94.9% of the program allocation (Y1Q1 through Y5Q2)

  • Total Y1Q1-Y5Q2 funding: $14,731,290
  • Total Y1-Y5 Q2 utilization of funding: $13,983,000
  • Lapse $748,290 of total funding

We anticipate using ~ 95% of the program allocation.

 


Coordinated Projects

The Canola Council administers the following programs on behalf of the three provincial Grower Organizations:

1) Canola Agronomic Research Program $1,043,069
2) Canola Performance Trials 305,710
3) Canola Digest 468,718
  $1,817,497

Coordinated projects make up 11% of total revenues and 12% of total expenses.

 


2018 Reserve Summary

The Council is projecting to be in excess of our Surplus Requirements at December 31, 2018 by $1,472,915.

Accumulated surplus, December 31, 2017 $5,291,149
2018 operating budget (deficiency) of revenues over expenses ($890,595)
Projected accumulated surplus, December 31, 2018 $4,400,554
Closure surplus policy requirements for 2018 $1,173,150
Revenue Stabilization surplus policy requirement for 2018 $1,754,489
2018 Surplus requirement: $2,927,639
Excess over surplus requirement - 2018 $1,472,915

As per Board policy, the Revenue Stabilization Surplus Requirement is calculated as 20% of the actual core revenues of the previous audited year.

2017 Core Revenues $8,772,444, x 20% = $1,754,489

 



The following excerpts from the audited financial statements contain Auditor’s Report, Statement of Financial Position, Statement of Operations, Statement of Changes in Net Assets, Statement of Cash Flow, and Notes to the Financial Statements and do not include the supporting schedules.  The complete audited financial statements are available at the offices of the Canola Council of Canada.

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2017 Financial Statements
2016 Audited Financial Information