2018 Financial Report

2018 Fiscal Year

Lazer Grant Chartered Accountants have conducted the annual audit and presented the financial statements for the fiscal year ended December 31st, 2018.  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, 2018 was $12.12 million which included $5.68 million of core revenue and $6.44million in project and grant revenue.  Core revenue represented 47% of total revenue and Project and Grant revenue represented 53% of total revenue.

Total 2018 expenditures were $12.11 million.

Excess of revenue over expenses for the year was $7,700.

 


Summary of Revenues

  2018 % 2017 %
REVENUES
Core Revenue
Export Assessment $691,719 12.2% $2,304,648 26.3%
Processor Assessment 1,566,444 27.6% 2,057,848 23.5%
Levy Assessment - Grower Organizations 2,803,329 49.3% 3,835,595 43.7%
Life Science Companies Contribution 520,000 9.2% 520,000 5.9%
Investment Interest 77,528 1.4% 32,353 0.4%
Memberships 22,396 0.4% 22,000 0.3%
Total Core Revenue $5,681,416 100.00% $8,772,444 100.00%
Project & Grant Revenue
Market Development $440,647 6.8% $2,029,230 26.0%
Crop Production & Innovation 287,005 4.5% 241,332 3.1%
Science Cluster Research 1,397,011 21.7% 2,937,758 37.7%
Canola Agronomic Research Program 2,171,426 33.7% 1,043,069 13.4%
Canola Performance Trials 384,977 6.0% 305,710 3.9%
Communications 198,183 3.1% 402,985 5.2%
Salaries 473,410 7.4% 329,594 4.2%
Corporate Affairs/Govt. Relations 572,020 8.9% 23,123 0.3%
Finance and Overhead 21,031 0.3% 21,221 0.3%
FLAX - CAP 46,361 0.7% 0 0.0%
Canola Digest 446,276 6.9% 468,718 6.0%
Total Project & Grant Revenue $6,438,347 100.00% $7,802,740 100.00%
   
TOTAL REVENUES $12,119,763   $16,575,184  

 

2018 Revenue


Summary of Core Revenue - Industry

  2018 % 2017 %
Export Assessment $691,719 12.4% $2,304,648 26.4%
Processor Assessment 1,566,444 28.1% 2,057,848 23.6%
Levy Assessment - Grower Organizations 2,803,329 50.2% 3,835,595 44.0%
Life Science Companies Contribution 520,000 9.3% 520,000 6.0%
$5,581,492 100.0% $8,718,091 100.00%

2018 Revenue

 


Summary of Project and Grant Revenue

  2018 % 2017 %
Project & Grant Revenue
Market Development $440,647 6.8% $2,029,230 26.0%
Crop Production & Innovation 287,005 4.5% 241,332 3.1%
Science Cluster Research 1,397,011 21.7% 2,937,758 37.7%
Canola Agronomic Research Program 2,171,426 33.7% 1,043,069 13.4%
Canola Performance Trials 384,977 6.0% 305,710 3.9%
Communications 198,183 3.1% 402,985 5.2%
Salaries 473,410 7.4% 329,594 4.2%
Corporate Affairs/Govt. Relations 572,020 8,9% 23,123 0.3%
Finance and Overhead 21,031 0.3% 21,221 0.3%
FLAX - CAP 46,361 0.7% 0 0.0%
Canola Digest 446,276 6.9% 468,718 6.0%
Total Project & Grant Revenue $6,438,347 100.00% $7,802,740 100.00%

2018 Revenue

 


Summary of Expenditures

  2018 % 2017 %
Market Development $888,820 7.3% $3,053,555 20.0%
Crop Production & Innovation 895,141 7.4% 1,335,332 8.7%
Canola Agronomic Research Program 2,171,426 17.9% 1,043,069 6.8%
Science Cluster Research 1,736,919 14.3% 3,359,141 22.0%
Canola Performance Trials 384,977 3.2% 305,710 2.0%
Communications 431,292 3.6% 444,624 2.9%
Salaries 3,266,621 26.6% 3,254,282 21.3%
Corporate Affairs/Govt. Relations 1,482,233 12.2% 1,573,160 10.3%
Finance & Overhead 402,000 3.3% 431,638 2.8%
Canola Digest 446,276 3.7% 468,718 3.1%
FLAX - CAP Expenses 46,361 0.4% 0 0.0%
TOTAL EXPENSES $12,112,066 100.00% $15,269,229 100.00%

 

2018 Revenue

 


Reserve Summary

For the year ended December 31, 2018, the Council exceeded its 2018 Reserve Requirement by $2,371,196.

Accumulated surplus, December 31, 2017 $5,291,150
2018 audit - excess of revenues over expenses $7,696
Accumulated surplus, December 31, 2018 $5,298,846
Closure surplus policy requirements,  2018 $1,173,150
Revenue Stabilization surplus policy requirement,  2018* $1,754,500
Total 2018 Surplus requirement: $2,927,650
Excess over surplus requirement - 2018 $2,371,196


* 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% = $1,754,500

 


Agri-Marketing Program and Science Cluster Summary - 2018

In 2018, Agri-Marketing Program and Science Cluster funded programs made up 19.5% of total revenues and 30.7% of total expenses.

In 2018, the Agri-Marketing program was funded by Agriculture Canada and Canola Council core funding.

In 2018, the Science Cluster program was funded by Agriculture Canada, Canola Council core funding and the provincial grower organizations and corporate sponsors.

2018 ACTUAL % of Total
Agri-Marketing Program (AMP) revenue $967,405  8.0%
AMP Market Development expenses 826,865
AMP Market Access expenses 1,159,559
Total AMP expenses $1,986,424 16.4%
AMP use of core funds 1,019,019 
Science Cluster revenue 1,397,011 11.5%
Science Cluster expenses
SCIENCE CLUSTER use of core funds 339,908 
Total AMP and Science Cluster revenue 2,364,416 19.5%
Total AMP and Science Cluster expenses 3,723,343 30.7%
Total AMP and Science Cluster use of core funds 1,358,972

 

Government Funded Programs – Update

Growing Forward II

Canola Council administered two Government funded programs through Agriculture Canada within the Growing Forward II program.  These programs ran 5 years, from April 1, 2013 and ended March 31, 2018. 

 

1)    The Agri-Marketing Program (AMP) - market development and market access.

Total AAFC revenues: $8,851,350

Total expenses: $18,183,000

 

Cost share ratio 49/51

 

2)    The Science Cluster Program - oil, meal and crop production research.

Total AAFC revenues: $11,205,477

Total expenses: $15,237,480

 

Cost share ratio 74/26

 

Canadian Agricultural Partnership (CAP)

1)    The Canola Council has signed a 5 year agreement with AAFC for Science Cluster research, April 1, 2018 – March 31, 2023.  The total budget of this program is $20,181,976.  AAFC will fund 60%, and the remaining cost of the program will be funded by CCC, the 3 provincial grower organizations, and industry.

 

2)    The Canola Council submitted an application for funding under the Agri-Marketing program for 3 years, April 1, 2018 – March 31, 2021. The total budget for this program is $7,637,025. AAFC will fund 50%. The remaining cost of the program will be be funded by CCC, Canadian Canola Growers Association and industry.

 


Coordinated Projects

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

1) Canola Agronomic Research Program $2,171,426
2) Canola Performance Trials 384,977
3) Canola Digest 446,276
4) Flax Agri-Marketing Program 46,361
  $3,049,040

In 2018, coordinated projects make up 25% of total revenues and 25% of total expenses.

 


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