2019 Financial Report

2019 Fiscal Year

Lazer Grant Chartered Accountants have conducted the annual audit and presented the financial statements for the fiscal year ended December 31, 2019. The financial statements were prepared in accordance with the Canadian accounting standards for not-for-profit organizations (ASNPO). This report summarizes the financial statements.

Total revenue at December 31, 2019 was $13.5 million which included $5.2 million of core revenue and $8.3 million of other program revenue.

Total 2019 expenditures were $13.2 million.

Excess of revenue over expenses for the year was $362,800.

 


Revenues

Revenues are comprised of core funding and other program revenue. Core funding is an agreed amount of funding by sector and membership fees. Other program revenue is sourced from the federal government, grower organizations, corporate sponsors- and service fees to fund specific projects and activities.

 

Core Revenue

  2019 2018
Grain companies assessment $1,868,403 $2,258,163
Provincial grower groups assessment 2,574,999 2,803,329
Life science companies assessment 743,500 520,000
Memberships 21,500 22,396
Total Core Revenue $5,681,416 $5,603,888

Core Revenue - 2019

 

 

Other Program Revenue

  2019 2018
Corporate Sponsors $278,200 $102,595
Annual Convention 223,538 161,290
Service fees 195,170 141,212
Investment interest 133,896 77,528
Producer Agronomy Funding 449,175 433,860
Brand Maintenance 76,903 305,063
Market Access 621,163 572,020
Research 3,020,517 1,398,297
Research & Knowledge Transfer 169,275 118,355
Coordinated Programs 3,142,237 3,184,623
Leasehold improvement allowance 21,031 21,031
Total Other Program Revenue $8,331,194 $6,515,874

 

Core Revenue - 2019

 


Expenses

  2019 2018
Salaries $2,860,327 $2,872,006
Research 3,701,958 1,736,919
Agronomy Specialists - operating costs 427,443 467,282
Consulting Fees 107,794 111,141
Research and knowledge transfer 193,978 207,366
Market Access 1,193,277 1,168,479
Annual Convention 412,229 326,417
Website Maintenance 54,640 29,418
Member Communications 55,047 51,637
Board of Directors' Meetings and Expenses 59,815 96,112
Brand Maintenance 166,691 701,927
Travel 175,636 182,583
Overhead 354,894 350,285
Administration 101,027 104,233
Memberships & Subscriptions 160,468 115,614
Sponsorships 9,281 100
Coordinated Programs 3,142,327 3,590,546
Total Expenses $13,176,830  $12,112,062

 

Expenses - 2019

 


2019 Reserve Summary

For the year ended December 31, 2019, the Council exceeded its 2019 Reserve Requirement by $3,560,704.

Accumulated surplus, December 31, 2018 $5,298,846
2019 audit - excess of revenues over expenses $362,766
Accumulated surplus, December 31, 2019 $5,661,612
Closure surplus policy requirements, 2019 $964,625
Revenue Stabilization surplus policy requirement, 2019* $1,136,283
Total 2019 Surplus requirement: $2,100,908
Excess over surplus requirement - 2019 $3,560,704

*As per Board policy, the Revenue Stabilization Surplus Requirement is calculated as 20% of the actual core revenues of the previous audited year. 2018 Core Revenues $5,681,415 x 20% = $1,136,283

 

Due to production challenges in 2019 and the ongoing trade disruption with China, the Revenue Stabilization requirement will increase to 50% from 20% of core revenues of the previous audited year.

 

2020 Reserve Summary

Based on the new formula, at December 31, 2020 the Council is projecting to be in excess of the Surplus Requirements by $1,722,386.

Accumulated surplus, December 31, 2019 $5,661,612
2020 Budget - (deficiency) of revenues over expenses ($365,725)
Projected accumulated surplus, December 31, 2020 $5,295,887
Closure surplus policy requirements, 2020 $969,300
Revenue Stabilization surplus policy requirement, 2020[1] 2,604,201
Total 2020 Surplus requirement: $3,573,501
Projected excess over surplus requirement $1,722,386

[1]As per Board policy, the Revenue Stabilization Surplus Requirement is calculated as 50% of the actual core revenues of the previous audited year. 2019 core revenues $5,208,402 x 50% = $2,604,201

 


Coordinated Programs

 

  2019 2018
Brand development $413,870 $135,584
Canola Agronomic Research Program 2,140,738 2,171,426
Canola Performance Trials 0 384,977
Canola Digest 442,588 446,276
Flax service agreement 145,130 46,361
$3,142,326 $3,184,624

 

Coordinated Programs are administered by the Canola Council and funded by the following organizations:

 

Program Funded By

Brand development

    

Canadian Canola Growers Association, Agriculture and Agri-Food Canada, Canadian Oilseed Processors Association

Canola Agronomic Research Program

         

  

Alberta Canola, SaskCanola and Manitoba Canola Growers Association

Canola Performance Trials

      

   

Funds transferred to SaskCanola, no longer administered by the Canola Council of Canada

Canola Digest

      

Alberta, Saskatchewan and Manitoba provincial producer organizations, Agriculture and Agri-Food Canada (Science issue)

Flax service agreement Flax Council of Canada and Agriculture and Agri-Food Canada

  

Co-sponsored Programs – AgriMarketing Program and Science Cluster

For the year ended December 31, 2019, 29% (2018 - 19.5%) of total revenues and 42% (2018- 30.7%) of total expenses are related to these co-sponsored projects.


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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