{' '} {' '}
Limited time offer
SAVE % on your upgrade.

Page 1

CHRISTIAN FARMERS FEDERATION OF ONTARIO

2015

Annual

Report

WWW.CHRISTIANFARMERS.ORG


2015

CFFO Staff Suzanne Armstrong Paul Bootsma Frances Pitkin Franchesca Weeks

Director of Research Manager of Board & Committee Services Field Services Manager Office Manager Communications Manager

Table of Contents

Annual Report


CONTENTS Message from the President....................... 4-5 Message from the Management Team.... 6-7 Financial Statements................................... 8-15 Notes to the Financial Statements ............. 16-19


4

2015 The Christian Farmers Federation of Ontario is a professional organization for families involved in the business of farming. We value family enterprise, profitability and responsible stewardship of resources.

LORNE SMALL

Annual Report


MESSAGE FROM THE PRESIDENT President Lorne Small is a sheep farmer from Kenilworth. He has served on the Ontario Sheep Marketing Agency, worked for several years as a provincial agricultural representative and was the first appointed General Manager of the Ontario Dairy Herd Improvement Corporation when it was privatized. As the fall harvest wrapped up, farmers across the

but from the consumer through the retailing

province concluded 2015 had been a pretty good

industry. Products with a sustainablility claim on

year. There were only a few pockets that experienced

the package sell better than their competitors.

difficult weather challenges. It was a nervous year

For farmers to continue to have viable markets

for the supply management sector. The initial

it will require us to demonstrate proper caring of

announcements flowing from the TPP Trade pact

our livestock, maintaining productive farmland,

indicate that this farm sector took a small loss but it

concern for the environment and awareness of

not as severe as many had expected. The red meat

biodiversity. CFFO is part of an industry wide team

sector enjoyed another profitable year. The fruit and

that is charting the course for Ontario farmers. If

vegetable sector benefited from the decline in the

we do our job well our farmers can become the

Canadian dollar.

preferred supplier.

The Canadian people recently elected a new federal

Jeff Leal became the new Minister of Argriculture

government. Both governments are expected to

and Food late last year. Minister Leal hit the

have a very activist environmental agenda. The

ground running determined to find common

farm community is expecting a focus on urban issues

ground and a find a balanced approach to

which includes the concern for climate change. There

the pesticide and pollinator issue. I give him full

is renewed interest in atmospheric carbon and its

credit for consulting widely and listening to all of

impact on the future world climate.

our ideas and then proposing some concepts to resolve issues. His staff and senior Ministry staff

As farmers we have the opportunity to greatly

have been excellent to work with.

contribute to the carbon capture efforts by returning atmospheric carbon to our soils. By using our

It has been a pleasure to work on behalf of

knowledge and technology to enhance our soils,

our 4,000 members across the province. Our

farmers can both improve the crops we grow and

executive appreciate your continued support and

improve the long term health of our planet. We need

encouragement. This is a wonderful organization

to continuously remind our urban cousins that the farm

and we are making a difference.

community share their concern for the planet and we are part of the solution. “Sustainability� is an issue that is coming at agriculture at a very rapid pace. It is coming not from government

Thank You. Lorne Small, President, 2015


6

2015 The Christian Farmers Federation of Ontario is a professional organization for families involved in the business of farming. We value family enterprise, profitability and responsible stewardship of resources.

MANAGEMENT TEAM

Annual Report


MESSAGE FROM THE MANAGEMENT TEAM The 61st year of CFFO brought in some new initiatives

endeavours. In the summer, Suzanne Armstrong

to the organization. As part of District AGM meetings

joined our staff team as Director of Research/

across the province, the CFFO introduced the Policy

Manager of Board and Committee Services. She

Tour, which focused on six key policy topics; land use,

recently completed her PhD thesis on the CFFO,

aggregates, protecting farmland, jobs in agriculture,

and is pleased to bring insights from her studies

water stewardship and neonicitinoids. This focused

into her work at the CFFO.

discussion at the district meetings and provided some useful policy input for the organization from the

Looking back over the year in policy, the

grassroots membership.

CFFO responded to government consultations on a number of key issues. These included

In the summer of 2015 the CFFO hosted our first

environmental issues such as pollinator health,

Farming Under 40 Barbeques in Oxford, Wentworth-

Great Lakes Protection Act, climate change

Brant, and Renfrew-Lanark. These events focused on

and Cap and Trade regulations, Conservation

celebrating young farmers with plenty of family fun

Authorities Act, stewardship of bobolink and

into the mix. Farmers were entertained by speakers

eastern meadowlark, and wetland conservation.

from FCC talking about the “Ag More Than Ever�

Important economic issues addressed this year

initiative to get the message out about the good

included the Ontario budget, Ontario Retirement

work that farmers do. The kids had a great time with

Pension Plan (ORPP), Crop Insurance Act, and

the bouncy castle and face painting, and everyone

revised maple syrup regulations. Land use

enjoyed the delicious food and fellowship.

continues to be a concern, and the CFFO argues for the importance of protecting farmland and

Having completed Stage One of the Water

the ability of farmers to engage in normal farming

Stewardship project, the CFFO formed a Water

practices through responses to Minimum Distance

Resource Stewardship Team consisting of staff

Regulations, the Four Plan Coordinated Review,

members from various farming and ag-related

and the Aggregate Resources Act. We look

conservation organizations. The focus is on ongoing

forward to continuing to represent the concerns

education of the team members on issues relating to

of our farming families in the year to come.

the best management of water for agriculture longterm. The CFFO also underwent some staffing changes. Jenny Denhartog, our Interim General Manager, retired having served on staff at CFFO since 2006. She previously served on the Executive Board from 1999-2005, including one year as President. She will be greatly missed, and we wish her well in her new

Suzanne Armstrong, Paul Bootsma, Frances Pitkin and Franchesca Weeks, 2015 Staff


8

Annual Report The Christian Farmers Federation of Ontario is a professional organization for families involved in the business of farming. We value family enterprise, profitability and responsible stewardship of resources.

FINANCIAL STATEMENTS

2015


IINDEPENDENT AUDITOR’S REPORT To the Directors of Christian Farmers Federation of Ontario (Federation des Agriculteurs Chretiens de l’Ontario) I have audited the accompanying financial statements of Christian Farmers Federation of Ontario, which comprise the balance sheet as of December 31, 2015 and the statements of revenues and expenses, statement of changes in members’ equity and statement of changes in financial position for the year then ended and a summary of significant accounting policies and other explanatory information. Management’s Responsibility for the Financial Statements Management is responsible for the preparation of these financial statements in accordance with Canadian accounting standards for not for profit organizations, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor’s Responsibility My responsibility is to express an opinion on these financial statements based on my audit. I conducted my audit in accordance with Canadian generally accepted auditing standards. Those standards require that I comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the presentation of the financial statements. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my audit opinion. Opinion In my opinion, the financial statements present fairly, in all material respects, the financial position of Christian Farmers Federation of Ontario as at December 31, 2015 and of its financial performance and its changes in financial position for the year then ended in accordance with Canadian accounting standards for not for profit organizations and the CPA (Chartered Professional Accountants) Canada Handbook.

CPA, CA Licensed Public Accountant March 7, 2016

David den Boer, Chartered Accountant 241 Bonaventure Drive Hamilton, ON L9C 4R1 Telephone: (905) 389-2670 Facsimile: (905) 389-4642 E-mail: dave@daviddenboer.ca www.daviddenboer.ca


10

BALANCE SHEET DECEMBER 31, 2015 ASSETS

2015

2014

CURRENT ASSETS Cash

$

Accounts receivable

165,873

$

84,443

10,461

575

GST/HST receivable

2,182

25,828

Prepaid expenses

8,542

14,848

187,058

125,694

70,923

62,928

618,564

623,288

RESTRICTED ASSETS Cash (note 6) CAPITAL ASSETS (note 3) $

876,545

$

811,910

$

41,394

$

80,807

LIABILITIES CURRENT LIABILITIES Accounts payable and accrued liabilities

MEMBERS’ EQUITY Invested in capital assets

618,564

623,289

General reserve (note 6)

70,923

62,928

145,664

44,886

835,151

731,103

Unrestricted (available for general purposes) $

APPROVED ON BEHALF OF THE BOARD: Clarence Nywening, CFFO President Bethanee Jensen, CFFO Treasurer

876,545

$

811,910


STATEMENT OF CHANGES IN MEMBERS’ EQUITY FOR THE YEAR ENDED DECEMBER 31, 2015 Invested in Capital Assets Balance, beginning of year

$

Excess (deficiency) of revenues over expenses Investment in capital assets Interfund transfer (note 6) Balance, end of year

$

623,289

General Reserve $

$62,928

Unrestricted (General) $

44,886

2015 Total

$

731,103

2014 Total

$

723,590

(29,815)

-

133,863

104,048

7,513

25,090

-

(25,090)

-

-

-

7,995

(7,995)

-

-

618,564

$

70,923

$

145,664

$

835,151

$

731,103


STATEMENT OF REVENUES & EXPENSES - GENERAL FUND FOR THE YEAR ENDED DECEMBER 31, 2015 REVENUES Farm organization funding fees (note 7)

12

2015 $

839,865

2014 $

873,015

Less: refunds

(54,456)

(66,249)

Net farm organization funding fees

785,409

806,766

4,879

6,045

Annual convention

40,565

34,899

Grants

39,202

4,325

Seminar fees and other

375

2,803

Interest income

905

10,890

TOTAL REVENUES

871,335

865,728

Administrative

402,346

352,662

Provincial activities

190,328

164,601

78,541

239,131

5,686

41,046

District activities

60,571

-

TOTAL EXPENSES

737,472

797,440

EXCESS OF REVENUES OVER EXPENSES BEFORE OTHER EXPENSE

133,863

68,288

29,815

28,872

Membership fees

EXPENSES (page 13-14)

Qualified districts (local affiliates) Non-qualified districts (unorganized regions)

Amortization EXCESS OF REVENUES OVER EXPENSES

$

104,048

$

39,416


SCHEDULE OF EXPENSES - GENERAL FUND FOR THE YEAR ENDED DECEMBER 31, 2015 ADMINISTRATIVE Bank charges and interest

2015 $

1,096

2014 $

1,213

Equipment rentals and maintenance

6,907

14,483

Insurance

3,172

3,178

Farm business registration administration fees

38,350

39,845

New opportinities

12,716

12,000

Office and printing supplies

11,571

12,656

1,721

8,534

12,740

10,489

Property taxes

4,367

5,617

Utilities

3,669

3,175

-

10,684

6,362

14,224

Postage and courier Professional and consulting fees

Rent Repairs and maintenance Research Salaries and benefits Staff travel and expenses Telephone

40,052

-

229,980

186,314

13,316

22,116

16,327

8,134

$ 402,346

$

352,662

$

$

31,950

PROVINCIAL ACTIVITIES Annual convention

31,651

Board and Committee expenses

98,968

76,863

Farm community activities

28,470

29,285

Farm media

31,239

26,503

$ 190,328

$

164,601


SCHEDULE OF EXPENSES - GENERAL FUND FOR THE YEAR ENDED DECEMBER 31, 2015 CONTINUED

14

2015

2014

QUALIFIED DISTRICTS (LOCAL AFFILIATES) Meeting and travel expenses

$

Farm media/newsletter

-

$

53,980

-

17,576

78,541

35,750

Projects

-

8,719

Promotion and advertising

-

12,364

Salaries and benefits

-

110,742

Funding to district associations (note 8)

$

78,541

$

239,131

$

-

$

9,526

NON - QUALIFIED DISTRICTS (UNORGANIZED REGIONS) Meeting and travel expenses Farm media/newsletter

-

3,941

5,686

5,155

Projects

-

699

Promotion and advertising

-

2,182

Salaries and benefits

-

19,543

Funding to district associations (note 8)

$

5,686

$

41,046

$

26,779

$

-

DISTRICT ACTIVITIES Meeting and travel expenses Farm media/newsletter

20,003

-

Promotion and advertising

13,789

-

$

60,571

$

-


STATEMENT OF CHANGES IN FINANCIAL POSITION FOR THE YEAR ENDED DECEMBER 31, 2015 CASH PROVIDED (USED) BY:

2015

2014

OPERATING ACTIVITIES Excess (deficiency) of revenues over expenses

$

104,048

$

7,513

Adjustments for items not affecting cash Amortization

29,815

28,872

133,863

36,385

Decrease (increase) in accounts receivable

(9,886)

(369)

Decrease (increase) in HST receivable

23,646

(10,125)

Decrease (increase) in prepaid expenses

6,306

(2,642)

Increase (decrease) in deferred revenue

-

(903)

(39,415)

41,416

-

186,808

114,514

250,570

(25,089)

(240,021)

89,425

10,549

147,371

136,822

Net change in non-cash working capital balances:

Increase (decrease) in accounts payable and accrued liabilities Decrease (increase) in short term investments INVESTING ACTIVITIES Additions to capital assets INCREASE (DECREASE) IN CASH CASH, beginning of year CASH, end of year

$

236,796

$

147,371

$

165,873

$

84,443

Cash is comprised of the following: General fund Restricted fund

70,923 $

236,796

62,928 $

147,371


NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2015

16

1. PURPOSE OF THE ORGANIZATION The organization was founded on March 6, 1954 as a federation of local associations of Christian family farmers in Ontario. It was incorporated as a corporation without share capital by letters patent under the Ontario Corporations Act on June 26, 1991. The corporation is a non-profit organization operating to promote and apply Christian ideas and principles to the solution of agricultural problems and to increase the knowledge of members with respect to their responsibilities and opportunities. The corporation is exempt from payment of income taxes as provided under the Income Tax Act.

2.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

These financial statements have been prepared in accordance with Canadian accounting standards for not‑for‑profit organizations and include the following significant accounting policies:

(a) Capital Assets Capital assets are recorded at cost. Amortization is provided annually at rates calculated to write-off the assets over their estimated useful lives as follows: Building - 4% straight line

Furnature and equipment

- 20% straight line

Computer equipment ‑ 40% straight line

(b) Revenue Recognition The organization follows the deferral method of accounting for contributions and fees. Farm organization funding fees, membership fees, convention fees and sponsor fees are recognized as revenue in the year the corresponding services are provided. Unrestricted contributions and grants are recognized as revenue when received or receivable if the amount to be received can be reasonably estimated and collection is reasonably assured.

(c) Use of Estimates The preparation of financial statements in accordance with 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 amounts of revenues and expenses during the reporting year. Actual results could differ from management’s best estimates, as additional information becomes available in the future. All estimates are reviewed periodically and adjustments are made to the statement of revenues and expenses in the year they become known. The significant areas requiring management’s use of judgment relate to the rates of amortization used for capital assets and the amounts set up in accrued liabilities.

(d) Contributed Services Because the hours of service by volunteers are not normally purchased by the organization and the difficulty in determining their fair market value, contributed services are not recognized in the financial statements.


NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2015 CONTINUED

2.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES CONTINUED

(e) Financial Instruments The organization initially measures its financial assets and financial liabilities at fair value adjusted by, in the case of a financial instrument that will not be measured subsequently at fair value, the amount of transaction costs directly attributable to the instrument. The organization subsequently measures all its financial assets and financial liabilities at amortized cost. Financial assets measured at amortized cost include cash, GST/HST receivable, accounts receivable and short‑term investments. Financial liabilities measured at amortized cost include accounts payable and accrued liabilities. At the end of reporting period, the organization assesses whether there are any indications that a financial asset may be impaired. When there is an indication of impairment, the carrying amount of the asset is reduced and the amount of the reduction is recognized as an impairment loss in the statement of revenues and expenses.

3.

CAPITAL ASSETS

Land

COST

$

Building

98,881

ACCUMULATED AMORTIZATION

$

-

NET 2015

$

98,881

NET 2014

$

98,881

546,673

43,044

503,629

508,259

Computer equipment

9,562

8,341

1,221

1,418

Furniture & equipment

29,759

14,926

14,883

14,730

66,311

618,564

$ 4.

684,875

$

$

623,288

COMMITMENTS

(a) Payments To Union Des Cultivateurs Franco-Ontariens Under an agreement with the Minister of Agriculture, Food and Rural Affairs (OMAFRA), effective January 1, 2008, the organization agrees to pay to Union Des Cultivateurs Franco-Ontariens (UCFO) 1.5% of their net revenue from farm organization funding fees from the prior year. The amount paid in 2015 was $12,094. This agreement shall terminate only if the Agriculture, Food and Rural Affairs Tribunal removes the eligibility of the UCFO for special funding, all parties mutually agree to terminate the agreement, or the UCFO has been granted accreditation by the Tribunal.

(b) Administration Costs Of Farm Business Registration Program Under an agreement with the Minister of Agriculture, Food and Rural Affairs, the organization has agreed to pay Agricorp $8.90 for each registration to administer the Farm Business Registration Program in 2016. This agreement can be terminated by either party by giving prior written notice no later than May 31 of any calendar year that the notifying party intends to terminate the agreement.

(c) Other Commitments Under the terms of various lease agreements and other contracts, the organization will be required to make the following payments: 2016 - $23,254; 2017 - $20,900; 2018 - $20,900; 2019 - $20,900 and 2020 - $17,822.


NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2015 CONTINUED 5.

18

FINANCIAL INSTRUMENTS

Liquidity risk Liquidity risk arises through having excess financial obligations over available financial assets at any point in time. The organization’s objective in managing liquidity risk is to maintain sufficient readily available reserves in order to meet its liquidity requirements at any point in time. The organization achieves this by attempting to maintain sufficient cash and cash equivalents.

6.

RESTRICTED ASSETS AND MEMBERS’ EQUITY

In prior years the organization established a reserve fund for financing future major expenses or possible operating deficits. The reserve amount had been set at 1% of budgeted membership fees on an annual basis. The reserve fund balance on December 31, 2015 is $70,923 (2014 - $62,928). In prior years the organization established a reserve fund for future special projects of the district associations, staff or board members. The reserve amount had been set at $125,000 and was only to be used for special projects that are approved by the board. The remaining activity fund balance was transferred to the general fund in 2014. The following notes (notes 7 to 9) are required by the Farm Registration and Farm Organizations Funding Act, 1993:

7.

FARM ORGANIZATION FUNDING FEES

During the year the organization received farm organization funding fees. Of these farming businesses 5.8% requested and received refunds (2014 -7.6%). In addition to the fees received from 4,307 farming businesses, the organization received membership fees from 25 non-registered farming businesses (2014 - 31). 2015 NUMBER Funding fees ‑ qualified districts (local affiliates) Funding fees ‑ non‑qualified districts (unorganized regions)

Refunds ‑ qualified districts (local affiliates) Refunds ‑ non‑qualified districts (unorganized regions)

3,548

$

751

AMOUNT

NUMBER

691,860

3,786

148,005

691 4,477

$

873,015

275

$

53,625

4,307

$

839,865

218

$

42,417

62 280

$

2014

$

12,039

65

54,456

340

AMOUNT $

738,270 134,745

12,624 $

66,249


NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2015 CONTINUED 8.

DISTRICT EXPENSES

Contributions have been made to directly to 21 districts. Section 5(4) of the Farm Registration and Farm Organizations Funding Act, 1993 Ontario Regulation 723/93 requires the following of the qualified districts (local affiliates): (a)

has at least ten members, each of whom has paid the membership fee, carrying on farming busi nesses in the area concerned;

(b)

has a local affiliate executive elected by the affiliate’s members;

(c)

has an annual general meeting; and

(d)

is entitled to send a representative to any meeting of the farm organization to which

representatives of local affiliates are invited. Non-qualified districts (unorganized regions) fall short of these four criteria in one way or another. Direct contributions of $78,541 were made to the following qualified districts (local affiliates): ChathamKent-Essex, Dufferin-Wellington, East Central, Elgin, Grey-Bruce, Huron, Middlesex, Niagara, Oxford, Quinte, Rainy River, Renfrew-Lanark, Simcoe, St. Lawrence-Ottawa Valley, Wellington, Wentworth-Brant, and Thunder Bay. These districts have met the standards needed to be considered qualified districts. Direct contributions of $5,686 were made to non-qualified districts (unorganized regions). The non-qualified districts are as follows: Haldimand-Norfolk, Perth, Lambton and North-Eastern. These districts did not meet the standards needed to be considered qualified districts. Direct contributions of $78,541 were made to the qualified districts (local affiliates). As stated by the Farm Registration and Farm Organizations Funding Act, 1993 Ontario Regulation 723/93, Section 5(2)7, these expenses must equal 10% of the net membership fees revenue. The qualified districts (local affiliates) direct contributions represent 10% of the net membership fees revenue.

9.

ACCOUNTING AND AUDITING STANDARDS

As indicated in the Independent Auditor’s Report, these financial statements have been prepared in accordance Canadian accounting standards for not for profit organizations and the audit was conducted in accordance with Canadian generally accepted auditing standards. These standards are in compliance with the CPA (Chartered Professional Accountants) Canada Handbook.


WWW.CHRISTIANFARMERS.ORG

Profile for Christian Farmers Federation of Ontario

CFFO Annual Report15  

CFFO Annual Report15  

Advertisement