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2005 Annual
Report |
BACK ---
NEXT |
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Financial Statements
For the year ended December 31, 2004 |
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Auditor's Report
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To
the Directors and Members of
the Ontario Cattlemen’s Association We have audited the
statement of financial position of The Ontario Cattlemen's Association as
at
December 31, 2004 and the statements of changes in net assets and
operations for the year then ended.
These financial statements are the responsibility of the Association’s
management. Our responsibility is to
express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with Canadian generally accepted
auditing standards.
Those standards require that we plan and perform an audit to obtain
reasonable assurance whether the
financial statements are free of material misstatement. An audit includes
examining, on a test basis,
evidence supporting the amounts and disclosures in the financial
statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as
evaluating the overall financial statement presentation. In
our opinion, these financial statements present fairly, in all material
respects, the financial
position of the Association as at December 31, 2004 and the results of its
operations for the year then
ended in accordance with Canadian generally accepted accounting
principles. Guelph, Ontario
January 21, 2005 Chartered Accountants
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OCA Balance sheet --- as at December 31, 2004 |
| |
CURRENT ASSETS
|
2004 |
2003 |
|
| |
Cash
|
$ 438,473 |
$ 166,527 |
|
| |
Accounts and grants receivable
|
269,958 |
351,257 |
|
| |
Accounts receivable – checkoff fees
|
81,103 |
80,804 |
|
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Accrued checkoff fees receivable
|
205,416 |
186,023 |
|
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Marketable securities
|
617,966 |
588,193 |
|
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Inventory – supplies
|
45,456 |
16,265 |
|
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Inventory – livestock (note 10)
|
48,032 |
49,296 |
|
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Prepaid expenses
|
6,864 |
16,164 |
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|
1,713,268 |
1,454,529 |
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CAPITAL (note 3)
|
391,971 |
397,910 |
|
| |
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| |
|
$ 2,105,239 |
$ 1,852,439 |
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CURRENT LIABILITIES
|
2004 |
2003 |
|
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Accounts payable and accrued liabilities
|
$
262,732 |
$
53,423 |
|
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Accrued National checkoff payments
|
96,212 |
91,012 |
|
| |
Deferred
Contributions (note 4) |
26,042 |
90,400 |
|
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Research trust liability – New
Liskeard (note 10) |
95,913 |
138,068 |
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$
480,899 |
$
372,903 |
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Net Assets
|
2004 |
2003 |
|
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Toronto Stockyards Land Development
Fund (note 12) |
1,480 |
$
67,695 |
|
| |
Invested in capital
assets |
391,971 |
397,910 |
|
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Unrestricted |
1,230,889 |
1,013,931 |
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| |
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|
1,624,340 |
1,479,536 |
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(See accompanying
notes) |
$
2,105,239 |
$
1,852,439 |
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The Ontario Cattlemen's Association Statement of
Changes in Net Assets as at December 31, 2004 |
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Toronto
Stockyard
Development
Fund |
Invested
in
Capital
Assets |
Unrestricted |
2004
Total |
2003
Total |
|
| Balance, beginning of year |
$ 67,695 |
$ 397,910 |
$ 1,013,931 |
$ 1,479,536 |
$ 1,305,729 |
|
| (Deficiency) Excess of revenues over
expenses |
(66,215) |
(22,514) |
233,533 |
144,804 |
173,807 |
|
| Investment in capital assets |
0 |
16,575 |
(16,575) |
0 |
0 |
|
| BALANCE, end of year |
$ 1,480 |
$ 391,971 |
$ 1,230,889 |
$ 1,624,340 |
$ 1,479,536 |
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see accompanying notes |
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OCA Statement of Operations for the year ended
December 31, 2004 |
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INCOME |
2004 Budget
(note 5) |
2003
Budget
|
2003
Actual
|
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| |
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(note 5) |
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Fees
|
$ 2,600,000 |
$ 2,900,548
|
$ 2,575,907 |
|
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Less: Commissions
to firms making
deduction
Packer credits
(note 6)
|
(49,100) (9,000) |
(50,704)
(7,254)
|
(48,434) (8,075) |
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| |
|
2,541,900 |
2,842,590
|
2,519,398 |
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Investment income
|
30,000 |
34,777
|
34,945 |
|
| |
Magazine revenue |
100,000 |
99,089 |
99,712 |
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Other Income |
17,520 |
17,775 |
13,527 |
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| |
|
2,689,420 |
2,994,231 |
2,667,582 |
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Toronto Stockyards Land development
Board (note 12) |
435,000 |
450,250 |
214,000 |
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Grants (note 14) |
0 |
1,007,286 |
559,673 |
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| |
Donations (note 15) |
0 |
2,759 |
23,229 |
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|
3,124,420 |
4,454,526 |
3,464,484 |
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EXPENSES (see schedule 1) |
|
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Association activities - budgeted |
1,852,633 |
1,828,090 |
1,698,229 |
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Operations - budgeted |
935,100 |
943,242 |
926,628 |
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| |
|
2,787,733 |
2,771,332 |
2,624,857 |
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Toronto Stock Exchange Development
Board (note 12) |
435,000 |
516,465 |
108,545 |
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| |
Association activities - funded by grants |
0 |
1,021,925 |
557,275 |
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| |
|
3,222,733 |
4,309,722 |
3,290,677 |
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(Deficiency) Excess of Income over Expenses for the year |
$ (98,313) |
$ 144,804 |
$ 173,807 |
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see accompanying notes |
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Notes on the Financial Statements for the year ending
December 31, 2004 |
1. PURPOSE OF THE ORGANIZATION
The Ontario Cattlemen’s Association is a tax exempt body established
by Provincial legislation to support the beef cattle industry in
Ontario through promotion, research and other activities.2.
SIGNIFICANT ACCOUNTING POLICIES
The financial statements have been prepared in accordance with
Canadian generally accepted accounting principles and reflect the
following policies:
(a) REVENUE RECOGNITION
Restricted contributions related to general operations are
recognized as revenue of the General Fund in the
year in which the related expenses are incurred. All other
restricted contributions are recognized as revenue of the
appropriate restricted fund.
Unrestricted contributions are recognized as revenue of the
General Fund in the year received or receivable if
the amount to be received can be reasonably estimated and collection
is reasonably assured.
(b) INVENTORY
Inventory is stated at the lower of cost and net realizable
value.
(c) INVESTMENTS
Marketable securities are valued at the year end fair market
value, which approximates cost.
(d) AMORTIZATION
Rates and basis of amortization applied to write-off the cost of
capital assets over their estimated useful lives
are as follows:
- Building and building renovations - 4% reducing balance
- Office furniture and equipment - 20% reducing balance
- Computer equipment - 30% reducing balance
- Computer software - 50% straight line
(e) STATEMENT OF CASH FLOWS
The statement of cash flows has not been presented as it would
not provide any additional meaningful
information.
(f) USE OF ESTIMATES
The preparation of financial statements in accordance with
Canadian generally accepted accounting principles requires
management to make estimates and assumptions that affect the
reported amounts of assets and liabilities at the date of the
financial statements, and the reported amounts of revenues and
expenses during the reporting periods. Actual results could differ
from those estimates.
(g) FINANCIAL INSTRUMENTS
The organization’s financial instruments consist of cash,
investments, all types of accounts receivable,
accounts payable, accrued liabilities and deferred income. The
carrying amounts of these financial
instruments approximate their fair market value due to their short
term nature.
The organization is exposed to credit risk related to the various
accounts, grants, and accrued check off fees
receivable. Management has limited that risk by adopting strict
credit policies and has determined that all
receivables are fully collectible.
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3. CAPITAL ASSETS |
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Cost
|
Accumulated Amortization
|
Net Book Value
2004 |
Net Book Value
2003 |
|
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Land
|
$94,000
|
$0
|
$ 94,000 |
$94,000
|
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Building
|
210,317
|
76,084 |
134,233 |
139,826 |
|
| |
Building renovations
|
185,300 |
63,677 |
121,623 |
126,584 |
|
| |
Office furniture and equipment
|
101,005 |
80,667 |
20,338 |
23,539 |
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Computer equipment
|
110,099 |
92,070 |
18,029 |
13,412 |
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| |
Computer software
|
30,178 |
26,430 |
3,748 |
549 |
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| |
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|
|
|
| |
|
$ 730,899 |
$
338,928 |
$ 391,971 |
$ 397,910 |
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4. DEFERRED CONTRIBUTIONS
Deferred Contributions relate to restricted operating funding received
in the current period that is related to the subsequent period. Changes in
the deferred contributions balance are as follows:
| |
2004 |
2003 |
| Beginning Balance |
$ 90,400 |
$ 145,518 |
| Less amount recognized as revenue in the year |
(64,358) |
(145,518) |
| Add amount received relating to the following year |
10,756 |
90,400 |
| Ending Balance |
$ 26,042 |
$ 90,400 |
5. 2003 BUDGET FIGURES
The budgeted figures are presented for
comparison purposes as prepared and approved by the Board, reclassified to
conform to the current financial statement presentation. They have not
been audited or reviewed by the auditor. 6. PACKER CREDIT
The Board of Directors agreed to provide a credit
to licensed dealers for license fees deducted by packers when reselling
purchased cattle as an agent by private treaty to a packer.
7. NATIONAL ADVERTISING PROGRAM
The Association pays $1 per head to the
National Beef Cattle Research Market Development and Promotion Agency for
the national beef advertising and promotion campaign and subsequently
receives 24.99 cents per head for veal and beef market development.
8. FEEDER FINANCE PROGRAM
The Association has embarked on a joint
program with the Ontario Ministry of Agriculture and Food, the purpose of
which is to guarantee a portion of loans to feeder cattle finance
co-operatives to purchase cattle. The expenses are not to exceed $45,000
per annum and are fully recoverable from the Ministry.
9. COMMITMENTS
The Association currently leases various office equipment for terms of up to
5 years at an annual rental cost of approximately; 2005 - $24,534,
2006 - $18,360, 2007 - $4,527, 2008 - $4,527,
2009 - $1,132
10. NEW LISKEARD RESEARCH HERD
During 1994, the Association entered into an
agreement with the Ontario Ministry of Agriculture and Food in which the
Association agreed to purchase the beef cattle research herd in New
Liskeard. The purchase is to take place over a period of years during
which the Association pays for the annual crop of calves born, and
receives the proceeds from sale of these animals. Any excess proceeds over
time must be forwarded to a trust fund for beef research at the
Agricultural Research Institute of Ontario.
The inventory of livestock shown on the balance sheet represents the
amount recoverable to the Association if and when animals are sold. The
research trust liability represents the cumulative proceeds from the sale
of animals, less the Association’s share of such proceeds and less cash
transfers to the trust fund.
11. ONTARIO VEAL ASSOCIATION
There is an agreement between the Ontario
Veal Association and the Ontario Cattlemen’s Association whereby the OCA
allocates a portion of the check off and provides certain services for and
handles certain funds for Veal projects. The results of those transactions
are reflected in the “Veal projects” expense line. 12. TORONTO STOCKYARDS LAND DEVELOPMENT BOARD
The former Toronto stockyards land has been developed
as a commercial rental property by the Toronto Stockyards Land Development
Board. The Association receives a share of revenues from the leasing of
such property, net of mortgage payments and development costs.
The agreement between the Board and the Association is that the funds will
be used exclusively for research, market development and industry
education and development.
13. BREEDER LOANS
Breeder loans expenditure consists of grants made to
incorporated breeder clubs of $2,500 each to cover their start up costs
for a breeder loan program.
15. GRANT REVENUE
Grant revenue relates to the following programs:
| |
2004 |
2003 |
| Great Lakes Grazing |
$ 11,951 |
$ 9,885 |
| Buffer strip |
168,794 |
4,012 |
| Ontario Beef Export Strategy |
0 |
60,280 |
| C.C.A. - Greenhouse gases |
0 |
49,914 |
| C.O.R.D. - R&D |
583,958 |
383,937 |
| Industry Development Officer |
647 |
11,920 |
| Feeder Finance Program (note 8) |
37,932 |
37,270 |
| OMAF - BSE |
200,000 |
0 |
| Predator Control |
4,004 |
0 |
| Other |
0 |
2,455 |
| |
|
|
| |
$ 1,007,286 |
$ 599,673 |
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|
Expenditures on these programs were as
follows:
| |
2004 |
2003 |
| Great Lakes Grazing |
$ 11,951 |
$ 9,885 |
| Buffer strip |
168,794 |
4,012 |
| Ontario Beef Export Strategy |
0 |
60,250 |
| C.C.A. - Greenhouse gases |
0 |
50,000 |
| C.O.R.D. - R&D |
599,244 |
383,937 |
| Industry Development Officer |
0 |
11,921 |
| Feeder Finance Program (note 8) |
37,932 |
37,270 |
| OMAF - BSE |
200,000 |
0 |
| Predator Control |
4,004 |
0 |
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$ 1,021,925 |
$ 557,275 |
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16. DONATIONS
| |
2004 |
2003 |
| Land O'Lakes |
$ 0 |
$ 22,022 |
| The Merrickville & District Chamber of Commerce |
$ 758 |
450 |
| The OVC Bovine Club |
0 |
757 |
| Junior Farmers |
2,000 |
0 |
| |
$2,758 |
$ 23,229 |
17. COMPARATIVE FIGURES
Certain figures of the prior year have been re-classified to
conform to the presentation adopted in the current year.
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Schedule of expenses for the year ended December 31,
2004 |
| |
|
2004
Budget
(note 5) |
2004
Actual |
2003
Actual |
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ASSOCIATION ACTIVITIES – BUDGETED
|
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Annual Meeting:
• Hotel
and printing
• County
associations re: voting
delegates
|
$ 24,000
36,000 |
28,614
48.098 |
25,378
35,875 |
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Grants and memberships:
• Canadian Cattlemen’s
Association
• National Checkoff
(net) note 5
• Counties
• OFA, OACC, OARC
and OAFE
• Miscellaneous
grants
• Ontario Farm Animal
Council
• Ontario Forage
Council
|
162.,200
833,333
55,500
2,600
4,000
47,000
500 |
163,774
921,639
62,634
2,450
4,820
10,000
500 |
162,561
858,115
54,892
2,200
3,139
10,000
500 |
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Communications (net of revenue
$9,535 - 2004, $23,174 - 2003)
|
178,000 |
179,948 |
179,874 |
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License Fee Enforcement |
75,000 |
69,320 |
69,035 |
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Weigh and trim inspector
|
40,000 |
0 |
30,000 |
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Veal projects (net of revenue 2004 - $6,742, 2003 - $13,237 (note 11)
|
391,000 |
330,794 |
248,939 |
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Retail liaison
|
3,500 |
5,499 |
3,002 |
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Quality Assurance
|
0 |
0 |
1,000 |
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Land Stewardship |
0 |
0 |
1,219 |
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Breeder Loans |
0 |
0 |
12,500 |
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$ 1,852,633 |
$ 1,828,090, |
$ 1,698,229 |
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OPERATIONS - BUDGETED |
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Elected officer's remuneration |
150,700 |
193,380 |
$ 182,180 |
|
| |
Elected officer's expenses |
115,000 |
128,554 |
142,430 |
|
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Salaries and benefits |
458,600 |
430,521 |
390,494 |
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Staff expenses |
39,000 |
30,076 |
31,316 |
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Postage |
10,000 |
10,691 |
10,986 |
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Premises costs |
39,000 |
38,178 |
36,377 |
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Office supplies and equipment
rental |
50,000 |
55,386 |
48,050 |
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Telephone and fax |
18,000 |
17,682 |
21,558 |
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Legal |
25,000 |
8,260 |
33,545 |
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Audit |
7,800 |
8,000 |
7,400 |
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| |
Amortization |
22,000 |
22,514 |
22,292 |
|
| |
|
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|
|
|
| |
|
$
935,100 |
$ 943,242 |
$ 926,628 |
|
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TORONTO STOCKYARDS LAND DEVELOPMENT
BOARD EXPENSES
(note 12)
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Research
|
$ 335,000 |
$ 226,697 |
$ 8,153 |
|
| |
Industry development
(net of revenue of $nil - 2004; $9,334 - 2003 |
0 |
85,211 |
34,334 |
|
| |
Corn Fed Project |
0 |
115,000 |
65,000 |
|
| |
Quality Starts Here |
100,000 |
89,557 |
0 |
|
| |
Operations Review |
0 |
0 |
1,058 |
|
| |
|
$
435,000 |
$ 516,465 |
$ 108,545 |
|
| |
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| |
Association Activities - Funded by Grants |
|
|
|
|
| |
Project Expense (note 14) |
0 |
1,021,925 |
557,275 |
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