ANNUAL REPORT 2013-2014 Turning the page To our next chapter
Training | Consulting | Services | Leadership
SARC ANNUAL REPORT 2013-2014
Table of Contents
SARC Vision:
“Persons of all abilities reaching their potential and enjoying full citizenship”
SARC Mission:
To provide vision, leadership, and support through advocacy, education, and the development of personal, and employment opportunities. Member Services Division Mandate:
To support Member Agencies through professional development, organizational supports, government relations, and sectoral advancement with a focus on collaberation and partnersip.
SARCAN Division Mandate:
To be a leader in sustainable recycling, environmental protection and employment opportunities for people of all abilities.
Finance Division Mandate:
To provide accurate financial information, accounting services, and advice to SARC Board and Management. To provide pension, benefits and insurance programs.
Organizational Profile: Page 3 Updates on SARC’s strategic initiative theme of enhancing communications, updating our identity and promoting our brand through a revitalization and rebranding of SARC and its services.
Service Enhancements: Page 8 Read about Learning Central and L.E.A.P., two exciting new services developed to meet strategic goals of developing training solutions, engaging Direct Support Professionals and Celebrating Excellence.
Building on Success: Page 9 Through expanding recycled products, developing partnerships and continuing to create employment for people of all abilities, we are working to sustain our future. Read about Supported Employment and SARC Bark.
Organizational Performance: Page 10 The largest strategic initiative in our 2012-2016 plan; to create efficiences, increase sustainability and to grow strong leaders and teams. Read about SARCAN Recycling’s year, and the 2013-2014 Financial Report and Statement.
For more information, or for copies of the Annual Report, please contact:
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Sydney Smith, Communications Officer phone: (306) 933-0616, ext. 236 email: ssmith@sarcan.sk.ca
SARC Board of Directors 2013-2014 The SARC Board of Directors includes representatives from SARC Member Agencies across Saskatchewan and provides governance and leadership for the provincial association.
SARC Board Committees Executive Committee to the Board:
Al Love, North Associate
Brian Haswell, South East
Darwyn Worsley, North East
Canadian Deafblind Assoc. - SK
Cosmopolitan Learning Centre Inc.
Handi-Works
• • • • •
Darwyn Worsley, Past President Al Love, President Brian Haswell, Vice President Lionel Prefontaine, Treasurer Jim Frape, Secretary
SARCAN Committee:
Glen Holmwood, North East
Ward Willson, South Manager
Joe McLeod, North West
Porcupine Opportunities Program Inc.
Langenburg & District Activity Centre
Columbian Industries, Inc.
• • • •
Ward Willson Shirley Sawatzky Brian Haswell Joe McLeod
Member Services:
• • • Gwen Loewen, North West
Jim Frape, South East
Lynne Demeule, South Associate
Menno Homes of Saskatchewan, Inc.
Pipestone Kin-Ability Centre Inc.
Cheshire Homes of Regina
Esther Redden Glen Holmwood Gwen Loewen
Finance/Pension & Benefits:
• • • Shirley Sawatzky, South West
Lionel Prefontaine, Treasurer
Esther Redden, South West
Wheatland Regional Centre
External Appointment
West Central Abilities, Inc.
Lionel Prefontaine Lynne Demeule Jim Frape
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Message from the SARC Board President and Executive Director Turning the page to our next chapter As we reflect on the past year and look forward to the opportunities of the future, the title of our Strategic Plan 2012-2016: The Next Chapter, is most fitting. With any great novel, there are elements that are necessary to have it deemed successful: strong characters, clarity, relevance, pace and, of course, solid themes. Many of these elements have become equally important to SARC as we work towards achieving our strategic goals. Our Strategic Plan was released in 2012. After months of extensive planning, one very big question existed, “How are we going to get this all done?”
We recognized that the Plan was developed by many, so execution would also require many. We established Strategic Implementation Teams throughout all of our divisions to effectuate our Plan. We identified and embraced character diversity and have relied upon the strength of our employees, our Board, and our SARC Members to fuel momentum. SARC has been referred to as a diverse and sometimes confusing entity. 4 SARCANNUAL REPORT2013-2014
Al Love SARC Board President
Amy McNeil SARC Executive Director
Our divisions and departments are unique and their core business is often distinctly different from one another. Clarity was an area that we identified as needing attention. Differentiating each core area has been an important step in our organizational growth.
challenge our efforts. Establishing a pace that allows us to strategically navigate through the turbulence and plan accordingly has allowed us to meet and often exceed our goals for the 2013-2014
Throughout SARC’s Annual Report you will notice a wide continuum of change to our brands. Some required a complete overhaul, while others only required a modest makeover.
The Strategic Plan 2012-2016: The Next Chapter is guided by four distinct themes; Organizational Profile, Service Enhancements, Building on Success and Organizational Performance. As we enter into the third year of our plan, being accountable, creating optimal value, ensuring the effective and efficient use of resources, being committed to continuous improvement and striving for excellence will remain our deeply rooted values.
Relevance continues to act as our compass. Is what we are doing providing value to our Members, the people our Members support, the public and government? Initiatives have been thoroughly assessed to ensure we haven’t lost sight of the mandates of each division and that we are making progress towards realizing our vision. When SARC’s 2012-2016 Strategic Plan was released it was often referred to as daunting. Aside from the sheer volume of work that would be required to accomplish what we set out do, there were the factors that we have little to no control over: fluctuating government funding, low salvage market pricing, the introduction of curbside recycling, an increasingly competitive employee marketplace and increased competition,
fiscal year.
SARC as an Association is strong and growing at a healthy rate. Our Membership is robust, united and progressive. As an Association of Members, we should take great pride in what we have accomplished together so far and eagerly anticipate the possibilities for our future. Together, we can achieve our Mission.
Organizational Profile Updating SARC’s identity to reflect a very diverse range of services As the 2013-2014 year progressed, the Updating Identity piece of SARC’s 2012-2016 Strategic Plan became a priority, not just for SARC itself, but for many of the services that fall under our umbrella. The crucial step in updating the association’s identity was to rebrand SARC itself, and to remove the now out-dated term “rehabilitiation” from our name. Through the rebranding process, a communications and materials audit was completed, including the elimination of out-of-date communication materials and the introduction of standardized templates and tools to make sure that all communications materials were on point with the new branding. Improving the usage of technogy by directing people to the SARC website for our services, and enhancing our online presence through social media, were also priorities outlined in the Strategic Plan. The new colour scheme, fonts, logos, and branding elements are attractive and consisent, and were designed to be used across multiple platforms.
Take a closer look... The top circle represents the individualthe people our Members support. The work that SARC and its Members do is ultimately about supporting the individual to expand their potential.
The upward and open arms represent the inclusive and person-centred supports provided by our Members.
The foundation represents SARC. Our services enhance our Members’ capacity to provide exceptional supports to people with disabilities.
Design and Descriptors A colour palette, standard fonts, and design elements have been used in everything from social media to new backdrops for conferences, and much more. The four words that describe SARC are all encompassing of the organization, but are also designed to work two-fold to describe specific services offered within our departments and divisons.
Training | Consultating | Services | Leadership 5
SARC Brands Get Makeover Having a wide range of services makes it more important to give each its own identity to eliminate any confusion. Some of the services that are more public under our umbrella are now identifiable as their own brand to provide clarity to their target audiences, and provide a stronger and more recognizable look.
SARCAN’ s makeover was mostly on the surface. Through new colours, stronger imagery and revitalized communications materials, SARCAN Recycling is as strong of a brand as ever. The logo was kept the same since it is so commonplace in Saskatchewan; however, the writing underneath changed from spelling out the SARC acronym to simply being a divison of SARC. This falls in line with the strategic goal of eliminating the word ‘rehabilitation’ from our communications materials. All communications materials now have a consistent look and feel, and the new branding elements have been incorporated into the depots. New signage has brightened and modernized depot walls. The colours have added a bright, positive look, and staff and customer feedback alike has been favourable.
Caring Careers, the SARC initiative aimed at promoting employment and the recruitment and retention of qualified professionals in the disability services sector, also received a revitalization. SARC’s HR Consultant was actively attending career fairs in the 2013-2014 year. Specific communities were targeted in partnership with SARC Members. With the new logo came a new brochure, and giveaway items for the Caring Career job fair booths. SARC Members can distribute these promotional items in their communities to create awareness about the service itself, and the job postings website, www.caringcareers.ca.
SARC’s Member product marketing department went through a rebranding process, which involved the development of a new name and logo. The department is now called “SARC Bark”, and the focus has shifted to make use of the popular Do-It-Yourself culture by marketing the untreated wood products as a ‘canvas’ for people to customize. Read more about SARC Bark’s transition on page 9.
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45 Years of SARC SARC’s 45th Anniversary was kicked off at the 2013 Fall Conference in Saskatoon, with a 1968 pop culture themed trivia contest and prizes. The Social Media Team ran a contest on SARC’s Facebook page: for two weeks, 1960s themed trivia questions were posted on the page and people were encouraged to guess the right answer. The contest was successful, and traffic to the page increased.
25 Years of SARCAN: Many Happy Returns SARCAN celebrated its 25th Anniversary throughout the 2013 spring and summer. Two television commercials were made that used the “25 Years - Many Happy Returns” logo. The logo was used throughout the year on promotional items, advertising, website, etc. The most popular event during the celebrations were Customer Appreciation Days. All 71 depots across the province were encouraged to celebrate SARCAN’s 25 years in their local community. The celebrations were vibrant and exciting, with local flavours from each SARCAN community. Most communities proudly shared their celebrations on the SARCAN Facebook page for everyone to see.
In August of 2013, SARCAN recycled its 6 billionth beverage container. Instead of the traditional celebration of our billionth milestones, we decided to have a flash-mob style surprise for one lucky customer. Visit SARCAN’s YouTube page to see more at www.youtube.com/sarcanrecycling. Reaching the milestone of 25 years of operation would not have been possible without the pioneer staff who have been working at SARCAN since our humble beginning in 1988. 14 staff from across the province were the first to receive the 25 year long term service award at October’s Employee Recognition Day.
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Service Enhancements Professional Development takes centre stage in 2013-2014
Learning Central: SARC’s One Stop Training Shop Learning Central, the first priority in the Service Enhancements theme of the Strategic Plan, is now officially online. Learning Central has evolved significantly over the 2013-2014 year, to include a more diverse range learning options (online, workshops, etc.), and offers affordable, accessible training options to nonprofits, with exclusive rates for SARC Members. Learning Central is designed to be a go-to resource for any level of staffing at a nonprofit, from those who work in direct support, program coordinators, supported employment professionals, managers, senior management/leadership, as well as boards of directors.
Professional Development for Leaders
SARC now has a dedicated Facilitator of Leadership Development on staff to provide services to senior management and boards of directors, such as professional development opportunities, strategic planning and board governance sessions. This aligns with our goal of educating board members and managers on how their community-based organizations can fully utilize the services that SARC offers. SARC Members have consistently identified the need for a leadership development program specific to nonprofits. A considerable service enhancement was the development and completion of SARC’s new management training program, which will launch in the Fall of 2014. The training is called Leadership Excellence Advancement Program (LEAP), and features a comprehensive learning approach that is designed to encompass major aspects of a nonprofit organization with best practice
Celebrating Success
Another priority for enhancing services in SARC’s Strategic Plan is to promote, recognize and celebrate excellence. Every year at SARC’s Fall Conference, there is an evening banquet to recognize the recipients of the Al McGuire, Volunteer of Distinction, and Employer of Excellence Awards. Brief biographies of each award winner are filmed in the summer leading up to the banquet. When the videos are played at the banquet, it is truly a moment for the award recipient to shine! After the video is played, the recipient is welcome to come and give an acceptance speech, and have their photos taken with the McGuire Family. To make this special day last longer, SARC has now put all of the videos of the award recipients on YouTube and on our website so individuals and organizations can see their videos anytime they like, use them for promotions, or to share with friends and family.
To view the videos, please visit: www.sarcsarcan.ca/about/celebratesuccess
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Building on Success Through partnerships, SARC can better promote its Members’ programs
Supported Employment: Partners in Success The Strategic Plan focuses on creating opportunities for success, and for a person with a disability, maintaining employment is often the first step to independence. Supported employment is a personcentred approach to assisting individuals with disabilities to prepare for, obtain and maintain integrated, competitive, paid employment. Many SARC Members participate in supported employment and SARC administers Supported Employment Transition Initiative funds, made possible by the Ministry of Economy. Four projects from the 2012-2013 year continued : Saskatchewan Deaf and Hard of Hearing Services, Biggar Supported Employment Youth Transition Program,
Partners in Employment (Saskatchewan Abilities Council – Regina Branch), and Meadow Lake’s Multiworks Corporation. There were four new projects from Southwest Homes and Canadian Mental Health Association in Swift Current, Melfort’s Plus Industries, Regina’s Autism Resource Centre. Through employment specialist and job coach positions, a person facing barriers to employment can be trained in a more personalized approach. As the individual feels confident and prepared to do the job on their own, the job coach is phased out. Establishing employment can also create financial freedom for independent living, travel, and much more.
SARC Bark: Member Made Product Marketing The goal behind the rebrand of SARC’s Marketing department aligns with our strategic priority of creating employment opportunities, and to enhance SARC Member entrepreneurial programs. The rebrand also created a new life for the department to help attract new customers and drive demand for SARC Member- produced products. The name SARC Bark gives the department a more clear identity than it has ever had. SARC Bark had a wide tour of Saskatchewan communities over the 2013 summer with the assistance of two summer students. Visiting large festivals, lake country, and SARCAN Recycling’s Customer Appreciation Days, they aimed to increase awareness of the SARC Bark brand. In the Fall of 2013, SARC Bark hired a full time Sales and Distribution Coordinator to guide the department and continue to promote the work of people with disabilities in Saskatchewan.
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Organizational Performance Ensuring a sustainable future through assessing services and creating efficiencies
SARCAN Recycling: A Year of Change Right out of the gate of the Strategic Plan, we started to review the SARCAN system and determine where and how effiencies could be further created. The 2012-2013 year involved a significant amount of planning and research, and the 2013-2014 year moved into execution. The opening of dedicated bulk order centres in Saskatoon and Regina helped facilitate curbside recycling operators and other bulk order customers in the two major cities and surrounding communities. Automating procedures where possible has helped gain efficencies and accuracy; however, there are still the same amount (if not more) employment opportunities for people of all abilities. Standard operating procedures have been implemented and, within the rebranding process, depot appearance became more standardized with like colours, signage, etc.
Return Rates The 2013-2014 year saw the highest monthly returns in SARCAN history with a record 45,720,088 containers set in July of 2013. This broke the previous record set in August 2012 by over 1.2 million containers! The year as a whole saw 403 million beverage containers returned, which was also a first in SARCAN’s 25 year history to recycle over 400 million containers in just one year. Efficiencies were gained throughout the entire system, as the return volumes for the year were increased by 7.20% and collection costs only increased by 1.50% overall.
Customer Service Enhancements SARCAN Drop n Go is a new service developed out of the Strategic Plan priority of a recognized need to reduce wait times, increase count/payment accuracy, increase customer satisfaction and gain accounting efficiences. The pilot project will begin in the 2014-2015 year, and involves the customer registering for services, dropping off their recycling at an automated station, and receiving deposit refunds electronically. Feasability studies were completed in the 20132014 year, and two test sites were finalized: Saskatoon East and Martensville. The long-term goal is to make SARCAN accessible for customers who cannot come during regular business hours, or have the time to wait in line. If the pilot proves effective, we will begin planning for a province-wide roll out.
Internal Auditing Enhancements SARCAN has now increased its technological capabilities for internal auditing and accuracy through the usage of an automated counting system. The equipment has an inclusive design, which means that staff at all levels are able to operate the system with ease. Located at the Saskatoon Processing Plant, the centre now has a dedicated team to complete audits.
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Finance Programs The Strategic Plan priority of Ensuring a Sustainable Future involves assessing current products, programs and services for value, and identifying and/or creating programs that add optimal value and respond to the needs of our Members and stakeholders. Examples of programs already in place are the Insurance and Pension & Benefits programs administered by SARC’s Finance Division.
Insurance
Pension and Benefit Plans
The SARC Insurance Programs have been in place for more than 18 years and continue to evolve with the input and participation of the our Members.
SARC is the administrator of a multi-employer defined contribution Pension Plan, which provides pension options for both our Members and other Social Services funded community-based organizations in Saskatchewan. The plan has 110 divisions, encompassing 3,645 individual plan members. The plan’s investments are currently valued at over $57 million. For the year ending March 31, 2014, the Balanced Fund, which holds the majority of the funds, had a 13.8% return compared to 7.2% the year before.
The program was developed to accomodate the diverse needs and varying business ventures and models of service delivery provided by our Members. The program boasts some of the most comprehensive yet affordable coverage available to nonprofits. SARC Insurance programs were initiated, designed and implemented by our Members, for our Members.
SARC also administers two Group Benefit Plans for Social Services funded nonprofits, as well a third Benefit Plan for SARCAN Recycling employees province-wide.
SARC Financial Report SARC’s 45th year was a year of expected and planned change. It brought the completion of funding realized through the 440 Waitlist Initiative and the Paper and Cardboard Bridge Funding Program. Significant time and staff resources were dedicated to further advancing, promoting and expanding our professional development offerings. A generous amount of resources were also invested into regenerating SARC’s Member-made product marketing department that led to the creation of SARC Bark. SARC Revenues: On an annual basis, SARC receives some government funding to be applied to our various initiatives and projects. Government grant revenues decreased by 25.84% from the prior year which was a result of decreased funding for the Paper and Cardboard Bridge Funding Program as the province moves to the multi-material recycling programs ($786,000 to $440,000), and a decrease of $235,029 in funding as the 440 Waitlist Initiative came to a close. SARC’s other sources of revenue, including interest and Member Services revenue, increased by 8.01% from the prior year. Total SARC revenues were 19.42% lower than the prior year. SARC Expenditures SARC expenses include several Member Services areas: Waitlist Initiative, HR/LR, Communication & Education, SETI, Provincial Training Committee (PTC) and Recruitment & Retention, as well as SARC Bark, Financial Services and Administration. Member Services expenses varied in relation to the grant funding received. Administration costs decreased over the prior year mainly due to the allocations of staff to other areas. As Member Services projects change, more personnel may be allocated to those projects to reflect how staff resources are being utilized. In the current year, there were many initiatives in the Member Services area for training and resource development including LEAP, as well as other programs and services that will be released in the 2014-2015 year. Total SARC expenditures decreased over the expenditures of the prior year by 12.90%. 11
SARCAN Recycling Financial Report SARCAN Recycling Revenues Overall legislated revenues increased by 4.65% from the prior year. There was a 4.47% increase in contract revenue, in line with SARCAN’s four year contract with the Ministry of Environment, and increased salvage sales brought in from the additional volumes. Salvage pricing was slightly down from prior year but this was more than offset by the increased volume of materials. Legislated beverage containers sold in Saskatchewan in 2013-2014 were up 6.57%, and SARCAN’s return rates were as follows: Type of material % Increase
Current year
Prior year
in volumes
return rate
return rate
Aluminum
9.82%
88.21%
87.26%
PET
4.07%
77.69%
79.43%
Glass
2.29%
90.73%
86.99%
Tetra
3.67%
50.53%
49.22%
7.20%
82.24%
81.75%
Total Legislated
SARCAN’s non-legislated programs include ancillary non-legislated beverage containers (out-of-province), and cardboard recycling. Additionally, SARCAN has four other non-legislated programs in partnership with various stewards: Electronics Recycling: The Saskatchewan Waste Electronic Equipment Program (SWEEP) was nationally harmonized and became part of the Electronics Product Recycling Association (EPRA) in 2013. The contract remains the same for SARCAN Recycling; however, two SARC Members have discontinued dismantling: the Saskatchewan Abilities Council - Yorkton Branch and Estevan Diversified Services. Prince Albert’s KIN Enterprises will continue dismantling into next year. Refillable Beer Bottles: In the 2013-2014 year, SARCAN returned 9.2 million beer bottles. Sales have declined, and as such, so have return rates. SARCAN’s partnership with the Saskatchewan Liquor and Gaming Authority continues into the next year. Paint Recycling: Saskatchewan continues to have the highest rates of reuse for paint in Canada. The recycling of paint saw a 10.64% increase in 2013-2014. Unified Dairy Recycling Systems: With the introduction of curbside recycling in communities throughout Saskatchewan, the
amount of milk containers returned to SARCAN has steadily decreased. In February 2013, the Saskatchewan government approved regulations which set the foundation for a province-wide multi-material recycling program (MMRP). The three main Saskatchewan dairies (Saputo, Lucerne, and Parmalat) may either continue to recycle milk containers through UDRS, or may elect to have milk containers folded into the MMRP programs, leaving milk container recycling the responsibility of participating municipal program. SARC’s agreement with the the dairies expires on December 31, 2014. SARCAN Recycling Expenditures Legislated collection costs, which include depot operating costs, increased by only 1.50% over the prior year even in light of the 7.20% volume increase. This was due to dedicated efforts system-wide to gain efficiences. Transportation costs increased by 6.53% from the prior year and processing costs increased by 2.40% as a result of the increase in container volume. Administration costs increased 20.33% after allocations to non-legislated materials, due to increased focus on SARCAN-specific advertising, in line with the Strategic Plan.
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SARC and SARCAN Recycling Financial Statement Statement of Financial Position As at March 31, 2014 2014 Assets Cash Short Term Investments Accounts Receivable Inventory, Prepaids, Other Long Term Investments Capital Assets
$
$ Liabilities & Net Assets Accounts Payable Unamortized Capital Assets Funding Net Assets
$
$
3,472,100 12,439,123 2,851,827 528,729 20,000 13,602,989 32,914,768
1,655,780 4,152,480 27,106,508 32,914,768
SARC Statement of Operations Year ended March 31, 2014 2013
$
$
$
$
3,509,924 10,823,241 2,178,899 444,484 20,000 13,986,094 30,962,642
1,459,279 4,388,640 25,114,723 30,962,642
2014 Revenue Government Grants $ Gross Profit on Sale of Member Products Interest Other $ Expenses Member Services Administration Net Loss
$ $ $
2013
1,680,343 27,697 27,834 525,920 2,261,794
$
2,179,810 398,979 2,578,789 (316,995)
$
2,265,834 28,447 29,154 483,514 2,806,949
$
2,334,563 626,053 2,960,616 (153,667)
$ $
SARCAN Statement of Operations Year ended March 31, 2014 SARCAN Legislated
SARCAN Non-Legislated 2014
Revenue Contract Revenue Legislated Salvage Sales Non-legislated Salvage Sales Other Revenue Gain on sale of capital assets
$
$ Expenses Collection Processing Administration Transportation Non-Legislated Expenses Amortization Net Income
$
$ $
22,752,000 6,805,948 1,073,366 397,710 20,873 31,049,897
18,709,801 3,334,898 2,146,099 1,710,887 1,064,554 1,379,751 28,345,990 2,703,907
2013 $
$
$
$ $
21,778,000 6,333,072 1,027,448 406,497 125,016 29,670,033
18,433,841 3,256,589 1,783,579 1,606,030 1,028,375 1,278,905 27,387,319 2,282,714
2014 Revenue Contract Revenue Salvage Sales Other Revenue
$
$ Expenses Processing Collection Transportation Administration Amortization Net Income
$
$ $
2013
2,229,120 331,534 8,828 2,569,482
$
1,078,796 817,632 441,738 135,864 54,447 2,528,477 41,005
$
2,027,799 421,681 10,340 2,459,820
$
926,159 763,320 413,104 123,347 69,241 2,295,171 164,649
$ $
Unified Dairy Recycling System Statement of Operations Year ended March 31, 2014 2014 Revenue Recycling Fees Salvage Sales
$ $
427,158 178,665 605,823
2013 $ $
442,573 227,198 669,771
2014 Expenses Advertising/Incentives Purchase of Salvage Materials Administration Costs Transportation and Processing Net Income
$
$ $
305,771 150,794 51,152 23,370 531,087 74,736
2013 $
346,784 212,702 54,556 32,944 646,986 22,785
$ $
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