HCBC Annual Report 2016

www.hcbc.ca

Annual Report

2016

CONTENTS President’s Message............................................................................... 3 Executive Director’s Message......................................................................

5 About Us.............................................................................................. 6 Our Mission & Vision..................................................................................

6 Priorities 2015-2017..................................................................................

7 2017 Staff & Board of Directors............................................................... 8 HCBC Zones............................................................................................

10 Zone Regions..........................................................................................

11 2017 Affiliate Directors..............................................................................

12 Major Grants/Funding................................................................................

14 2016 BC Summer Games....................................................................... 15 Competition............................................................................................

17 Industry & Agriculture................................................................................

18 Coaching & Education................................................................................

20 Recreation........................................................................................... 20 Infographic.............................................................................................

21 Where Do Your Membership Dollars Go?.....................................................

22 Financial Statements............................................................................. 23

Company Contact information Address:

27336 Fraser Hwy., Aldergrove, BC V4W 3N5

Phone:

604-856-4304

Toll Free:

1-800-345-8055

Fax:

604-856-4302

Website: www.hcbc.ca

2

President’s Message endless and varied list. Indeed the interests of members are extremely varied as more people come up with more ways to have fun and enjoy time with their horses.

Firstly, thanks for picking up our second official Annual Report! You will find many details and lots of interesting tidbits of information about Horse Council BC (HCBC) throughout this great publication.

At the office each department spends winter preparing for a more outdoor friendly season - membership renewals, competition permits, HCBC rules updates, coaching updates, the new Community Talks Travelling Road Show, industry & agriculture working with government and other agricultural organizations, Share the Trails Workshop and so on. It’s a seemingly

Equestrian Canada (EC) is holding its annual Convention in Vancouver April 7/8/9. You can check out the agenda, speakers etc online at www.equestrian.ca. HCBC will be holding its spring Board Meeting and AGM in conjunction with the Convention. This will be on Friday evening April 7th and everyone is invited. The Convention offers people a chance to meet the EC Board, EC staff, attend various panel discussions, the awards and various workshops, hear about the latest in microchipping horses for ID purposes, and attend the presentation by world renowned Equine Behaviourist Dr. Andrew McLean (and of course meet the HCBC Board and staff!).

For more information please contact the office or go to www.hcbc.ca or www.equestrian.ca I will end with my usual sign off, a heartfelt thanks to the Horse Council staff for the hard work and dedication to Horse Council. You are the best and make my job easy!

Thanks also to you, the members, the Board and the Executive. Without you we would not have a Horse Council with which to serve the equine community.

Here’s to spring - may it come soon and be followed by a wonderful summer with our equines.

Liz Saunders HCBC President

3

“Ask me to show you poetry in motion & I will show you a horse”

4

Message from Horse Council BC Executive Director, Lisa Laycock

2016 was a busy year and it seems like there were many changes here in the Horse Council BC office and further afield. HCBC staff have been reviewing programs and making adjustments and in some cases closing old programs that are not well attended or meeting member’s needs. A good example of this was the BC Heritage Championships where the year-end show entries have been down for the last number of years even though we advertised more, added disciplines and opened up the qualifying criteria. The office will be analysing the gaps in the athlete development pathway and competition system for our BC members and replacing Heritage with something better aligned to the community’s needs.

In 2016 we offered feedback on many legislative Acts, as government reviews and updates the laws and regulations, both provincially and federally that impact our industry. We are always cognisant of how will this affect our ability to own and keep horses in BC. A few examples of this are the recreational use of public land, agriculture land use issues, and the keeping of livestock. It is critical as an equine community that we come together and work together on these important issues no matter our discipline or focus. We strive to inspire and facilitate collective action to address common equine interests.

It is a privilege to be a part of such a great community of dedicated, committed, and caring people. Our team is as equally dedicated to equestrianism as the population we serve. We strive to be member focused, financially prudent, responsible, and effective. Thank you to the Board of Directors for the work you do and your consistent encouragement to the Horse Council BC staff! Thank you to members for supporting Horse Council BC by joining! Thank you to all that are part of our vision for a thriving BC horse sector!

Sincerely, Lisa Laycock Executive Director

5

ABOUT US Horse Council BC is a membership-driven not-for-profit association representing the interests of the equine industry in all sectors throughout British Columbia. Tradition, strong values and superior hard work provided by our volunteers has made Horse Council BC the largest and most successful multi-discipline, multi-breed equine association in Canada.

Horse Council BC continues to grow with membership reaching 24,009 in 2016.

Horse Council BC actively represents the equine industry in agriculture, industry, sport, and recreation through education, grant funding, club support, liability insurance, and participant programs 6

MISSION Horse Council British Columbia is a member service organization that collaborates with business, industry and government on behalf of equine welfare, sports, recreation and the individual rider/driver.

VISION Horse Council BC strives to represent ALL horse people in BC regardless of discipline, breed orientation, or sport. We endeavor to be an association that anyone active in the horse sector is proud to be a part of.

We are accessible to all our members and communicate with them on both a professional and personal level. We ensure that we set an example for all other associations to follow.

STRATEGIES • Increase engagement with board, staff and partners • Create more effective ways to increase member and non-member communications and engagement • Renew education programs to increase our value as an equine information hub • Ensure a strong provincial grass roots competition system • Advocate for the equine lifestyle and the right to ride • Take inventory of all programs and review 25% each year

Priorities 2015-2017 • Phasing out programming that doesn’t align with our current strategic plan, priorities or sustainability needs • Inspire and facilitate collective action to address common equine interests • Develop intentional succession planning • Develop a process to organize committees to maximize engagement and impact • Review resources to support zone directors We will continue to…

• • • •

Promote and support high performance sport within BC Focus on promoting equine welfare through human partners Connect and strengthen equine community Improve sound management for financial sustainability and organizational health

BY JOINING HCBC YOU SHOW YOUR SUPPORT FOR...

A NATIONALLY ACCREDITED COACHING PROGRAM HCBC administers the Equine Canada

THE RIGHT TO RIDE

coaching and instructor programs for English,

The right to ride horses on public land i.e.

Western and Driving disciplines.

in parks, and on designated trails in BC. HCBC communicates with provincial/local

FINANCIAL SUPPORT FOR THE INDUSTRY

Government to support its members in their

Funding programs that help to encourage and

advocacy roles.

support participation in equestrian sport and recreation activities.

HORSE WELFARE IN BC HCBC liaises and collaborates with governing

THE PRESERVATION OF BC TRAIL

bodies and promotes the importance of the

SYSTEMS

welfare of equines in BC.

HCBC provides funding, safety manuals, workshops, and guidance to our members

THE BC HORSE INDUSTRY

interested in building and maintaining the trail

HCBC strives to provide up-to-date

systems in BC.

information to horse owners and riders across the province on horse health & care,

QUALITY SCIENCE BASED EDUCATION

welfare, land & pasture management, and

HCBC hosts and supports multiple educational

environmental issues.

events throughout the year along with providing free online courses to members, all based in sound scientific research and data.

7

HCBC STAFF 2017

8

EXECUTIVE DIRECTOR Lisa Laycock

RECREATION COORDINATOR Nancy Spratt

SENIOR PROGRAM MANAGER INDUSTRY & AGRICULTURE MANAGER Kelly Coughlin

SPORT & DEVELOPMENT COORDINATOR Sandy Underwood

COACHING MANAGER Wendy Sewell

MARKETING & COMMUNICATIONS COORDINATOR Aynsley Cairns

COMPETITIONS MANAGER Ali Buchanan

FINANCE & GRANTS Lynn Wallden

MEMBERSHIP COORDINATOR Jocelyn Adams

RECEPTION Lynda Eckstein

Board Of Directors 2017 EXECUTIVE & DIRECTORS AT LARGE

ZONE DIRECTORS

PRESIDENT Liz Saunders

TREASURER Carolyn Farris

SECRETARY Lisa Mander

VP OF COMPETITION Susan Harrison

VP OF EDUCATION Dr. Susan Thompson

VP OF INDUSTRY Lynda Atkinson

ZONE 1 DIRECTORS Arlene Ridge Liz Saunders

VP OF MEMBERSHIP & MARKETING Allison Warren VP OF RECREATION Terre O’Brennan DIRECTOR AT LARGE Gary Patterson DIRECTOR AT LARGE Gord Mackenzie

ZONE 2 DIRECTOR Myrna Thompson Lynne McPherson ZONE 3 DIRECTORS Nancy Olson-Beaulieu Susan Holtby ZONE 4 DIRECTOR Debbie Rogal ZONE 5 DIRECTORS Allison Warren Lisa Mander ZONE 6 DIRECTORS Selena Pellizzari Susan Harrison ZONE 7 DIRECTORS Christine Hassell Erin Rowsell ZONE 8 DIRECTOR Rose Cousins Carolyn Dobbs

9

HCBC ZONES

WHAT ARE ZONES? In order to motivate each provincial sport organization to spread their efforts and interest throughout the province and ensure that the BC Summer and BC Winter Games include participants from every part of the province, BC has been divided into eight zones. Each of the 8 zones has two Horse Council BC Zone Directors.

7

5

10

8

6 4

2 3

1

Zone REGIONS ZONE 1 - 1,457 Members

ZONE 6 - 5,413 Members

ZONE 2 - 4,241 Members

ZONE 7 - 992 Members

Kootenays Shown on the zone map as the Yellow region Thompson-Okanagan Shown on the zone map as the Red region

ZONE 3 - 4,356 Members

Fraser Valley Shown on the zone map as the Light Blue region

ZONE 4 - 1,495 Members

Fraser River Shown on the zone map as the Orange region

Vancouver Island-Central Coast Shown on the zone map as the Light Green region North West Shown on the zone map as the Purple region

ZONE 8 - 3,378 Members

Cariboo-North East Shown on the zone map as the Dark Blue region

HCBC ZONE 9 - 143 Members Living outside the province of BC Not shown on the zone map

ZONE 5 - 2,534 Members

Vancouver-Coastal Shown on the zone map as the Dark Green region

11

AFFILIATE Directors 2017 BACK COUNTRY HORSEMAN SOCIETY OF BC Sharon Pickthorne BC CARRIAGE DRIVING SOCIETY Ellen Hockley BC HUNTER JUMPER ASSOCIATION Justine Annandale BC QUARTER HORSE ASSOCIATION Carolyn Farris BC THERAPEUTIC RIDING ASSOCIATION Karen Swantje CANADIAN PONY CLUBS (BC DIVISION) Tracy Carver CANADIAN THOROUGHBRED HORSE SOCIETY (BC DIVISION) Grant Watson DRESSAGE BC Cat Armitage ENDURANCE RIDERS ASSOCIATION OF BC Terre O’Brennan EQUESTRIAN VAULTING ASSOCIATION OF BC Marijean Maher HARNESS RACING BC SOCIETY Lynda Atkinson HORSE TRIALS BC Len Kirby

12

AFFILIATE BRANCHES/CHAPTERS/DIVISIONS Affiliate Membership includes any chapters/branches/ clubs/zones and/or committees which are legally part of the Affiliate Society Registration. These chapters/ branches, etc. are entitled to Horse Council BC benefits including Capri Insurance discounts as well as funding opportunities along with the Affiliate itself.

12 AFFILIATES

13

Major GRANTS/FUNDING Each year Horse Council BC distributes nearly $60,000 across British Columbia to HCBC Clubs, Affiliates, and Members to help fund a variety of equestrian based projects, trails, facilities, education and clinics.

$91,254.81 ...was given back to HCBC members through grant and funding programs in 2016.

1

The BC Equestrian Trails Fund (BCETF) was established to provide support for HCBC clubs and affiliates who have researched and planned a specific project related to the construction and/ or maintenance of an equestrian trail, trailhead, or horse camping site in British Columbia for public use. $30,000.00 was given in 2016.

2Core Grants are provincial

funds targeted for events or projects that support equestrian sport growth and development within the province of BC. Core Grants can be applied to all manner of things as long as it supports equestrian sport growth and is for public use (or open to the public as the case may be). $39,588.75 was given in 2016.

102 ...the number of different equestrian clubs, individuals, and groups who received some sort of funding from HCBC in 2016.

3 Participation Grants are

available to any current HCBC Club who is organizing and running a clinic. Funding is received in either a $250 or $500 denomination per clinic until funding is exhausted.

$5,750.00 was given in 2016.

4Zone Funding is money

that is available to all current HCBC member clubs, affiliates and individuals. These funds are available throughout the year. Traditionally approval is given for small dollar amounts (less than $500) benefiting members in the Zone. $15,916.06 was given in 2016.

14

$547,973.27 ...is the total amount of dollars given back to HCBC members through funding programs since 2006.

2016 BC SUMMER GAMES

#goEQUESTRIANTEAM

The BC Winter and BC Summer Games are British Columbia’s biennial celebration of sport and community.

Since 1978, the BC Games have taken place in 38 communities and involved over 350,000 participants and volunteers and thousands more as spectators

FINAL EQUESTRIAN ZONE TEAM SCORES GOLD - Zone 4 - Final Score of 55 SILVER - Zone 3 - FINAL SCORE of 28 BRONZE - Zone 6 - FINAL SCORE of 22

and supporters. The purpose of the BC Games is “To provide an opportunity for the development of athletes, coaches, and officials in preparation for higher levels of competition in a multi-sport event which promotes interest and participation in sport and sporting activities, individual achievement and community development.” The BC Games bring together British Columbia’s best emerging high performance athletes, trained coaches, and certified officials for three days of competition. This experience is an important development opportunity and stepping stone towards higher level sport competitions.

Rise above.

Reach beyond.

44 13 10 4

Qualified athletes competed at the 2016 BC Summer Games in Abbotsford. There was at least one athlete from every zone in the province on the team.

Equestrian Canada certified Head Coaches and Assistant Coaches volunteered their time to support the athletes during the BC Summer Games.

Equestrian Officials and technical staff volunteered their time to judge, announce, and record scores for the Equestrian Team during the BC Summer Games.

Provincial Sport Organization (PSO) representatives helped to organize and arrange all the equestrian events and activities that took place during the Games.

The Equestrian Disciplines of BC Summer Games: Dressage, Para-Dressage, Show Jumping, and Vaulting.

15

16

TOTAL EQUESTRIAN CANADA (EC) SHOWS IN BC

2016

69

2015 2014

75

2016

185

2015

184

2014

73

2013

TOTAL HORSE COUNCIL (HCBC) SHOWS IN BC

76

254

Total number of sanctioned shows for both Equestrian Canada and Horse Council BC were held in BC in 2016.

There were 7 FEI Competitions in 2016 held in BC. They included the disciplines of: Jumper Dressage Para-Dressage Eventing Vaulting Endurance

185 HCBC Shows 30 EC Bronze Shows 2 EC Silver Shows 30 EC Gold Shows

2013

180 165

In 2017 the 55+ BC Games will be held in Vernon, BC. Dressage, western dressage, mountain trail, ranch horse and driving make up the equestrian events.

There has been continued growth in 2016 across all levels of long term athlete development in all disciplines.

Long-Term Athlete Development (LTAD) is a systemic approach being developed and adopted

by Equine Canada to maximize a participant/ athlete’s potential and involvement in our sport.

The LTAD framework aims to define optimal training, competition and recovery programs based on biological age rather than chronological age. It is athletecentered, coach-driven and administration, sport science and sponsor supported.

By tailoring a participant/athlete’s sports development program to suit basic principles of growth and maturation, especially during the “critical” early years of their development, enables him/her to reach their full athletic potential, increase lifelong participation in equestrian sport and other physical activities and to improve health and well-being.

17

Industry & Agriculture THROUGHOUT 2016 EQUINE WELFARE ISSUES, EQUINE RESCUE, TRANSPORTATION AND EQUINE DISEASE PREVENTION WERE THE MOST POPULAR TOPICS OF INTEREST ON HORSE COUNCIL BC’S INDUSTRY & AGRICULTURE WEB PAGES.

EQUINE RESCUE TRAINING The Resquip Mannequin purchased last year is being put to good use by fire departments around BC. Maple Ridge Fire Department houses and maintains ‘Calamity’ but it is available for any Fire Department to use and train with in BC. Having the mannequin for practicing with enhances the skills of responders and this training help ensure that rescue of live horses can be done safely and efficiently.

to the Census of Agriculture. Regional, provincial and federal government policy advisors use the data to help develop programs related to farm support and to evaluate the impact of natural disasters on agriculture.

Statistic Canada reported: “I would like to thank you and your organization for supporting our efforts

FEDERAL CENSUS YEAR

to promote the 2016 Census of Agriculture.”

2016 was a federal census year and HCBC worked with the

18

Communications Officer at Stats Can to craft and distribute

“The willing participation of Canadian

messaging encouraging equine farms to complete the Census

farmers in the 2016 Census of

of Agriculture. Notice was emailed to our members, the

Agriculture will yield a rich harvest of

provincial equine organizations, Equestrian Canada and Horse

data on the industry, which in turn

Welfare Alliance of Canada. Horse operations that do not sell

will be used by farm organization to

agricultural products but offer boarding, riding or training

formulate policy recommendations and

services are also considered agricultural operations according

conduct market development.”

“A far greater portion of farmers also completed the Census of Agriculture by Internet in 2016 compared to 2011. The proportion of responses over the Internet was close to 55%, or five times the rate recorded in the last census (11%). High rates of Internet response contribute to both the efficiency of data collection and better data quality.”

review and offer recommendations on the following: • Guide for Bylaw Development in Agricultural Zones • Regulating AgriTourism and Farm Retail Sales into Agricultural Land

“Statistics Canada now shifts its focus to publishing

Reserve • Wood Waste Regulations • Livestock Act • Livestock Lien Act • Animal Health Act • Wildlife Act

results and will release the Census of Agriculture

Key provincial taxation concerns within the horse

data on the Statistics Canada website (www.statcan.

industry:

gc.ca) on May 10, 2017.”

• The consideration of horses as livestock under the Ministry of Small Business and Revenue.

HCBC continues to work with the provincial

• The horse sector be considered equivalent

government on issues that affect horse owners.

to other agricultural commodities in British

Consultation and review is ongoing through meetings

Columbia with regards to taxation.

and conference calls with provincial Ministry staff to 19

HORSEDAY Horse Day is a fun-filled family event held during the Pacific National Exhibition in Vancouver, BC that gives the public a chance to see what horses have to offer.

Coaching, Education & Recreation

Horse Day on August 27, 2016 at the PNE was a huge success! There were thousands of people in the barn and all the performances in the arena were reasonably well attended.

123 37

IN 2016 HORSE COUNCIL BC HOSTED 7 COACHING EVALUATIONS ACROSS BRITISH COLUMBIA. THERE WERE A TOTAL OF 21 NEW COACHING CERTIFICATIONS APPROVED. HCBC SCHOLARSHIP PROGRAM Horse Council BC scholarships are available to Horse Council BC members in good standing, who are a BC graduate from grade 12 and entering into an accredited College or University Study program. HCBC received 9 qualified scholarship applications in 2016, 5 of which received a $1000 scholarship towards their post

The transition of Equestrian Canada (EC) coaches to the new

the

Wor k s h op

HCBC’s annual Share the Trails workshop was well received in Salmon Arm, thanks to the engaging and educational feature presentations by: •

Rob Cairns all about how to avoid conflicts and tips for resolving disputes,

•

Tabor Mountain Recreation Society,

National Coaching Certification Program (NCCP) completed in

•

Shuswap Trail Alliance,

2016. This means that updated Professional Development points

•

Lyle Knight and Tennessee

got easier for Coaches. Coaches and Instructors can now go to www.coach.ca and log in to see how many points they have and the time frame to complete the requirements.

20

HORSES & PONIES

Share Trails

secondary education.

EQUESTRIAN CANADA COACHES TRANSITION

VOLUNTEERS

Trent all about the Ministry of Forest, Land & Natural Resource Operations.

23%

24,009

OF HCBC MEMBERS LIVE IN ZONE 6. ZONE 6 IS WHERE THE MAJORITY OF OUR MEMBERS HAIL FROM AND INCLUDES THE ISLANDS AND CENTRAL COAST REGIONS OF BC.

HORSE COUNCIL BC MEMBERS IN 2016.

248

185 HCBC PROVINCIALLY SANCTIONED COMPETITIONS

+ $90,000 IS HOW MUCH HCBC GAVE AWAY IN GRANTS & FUNDING IN 2016

RIDER EXAMS WERE PROCESSED IN 2016.

213 ENGLISH 35 WESTERN

294

155

13

HCBC CLUBS & BRANCHES IN 2016

HCBC BUSINESSES IN 2016

HCBC AFFILIATES IN 2016

4,516 AVERAGE VISITS TO THE WWW.HCBC.CA WEBSITE PER MONTH

30%

OF HCBC’S MEMBERSHIP IS 17 YEARS OF AGE & UNDER

1,342 “FOLLOWERS” ON TWITTER

12,728 “LIKES” ON FACEBOOK

78% OF HCBC’S MEMBERSHIP IS FEMALE

TOTAL # OF NEW 2016 EC CERTIFIED COACHES THAT TEACH ENGLISH RIDING IN BC

18 TOTAL # OF NEW 2016 EC CERTIFIED COACHES THAT TEACH WESTERN RIDING IN BC

3 TOTAL # OF CURRENT EC CERTIFIED COACHES IN BC

302

HORSE DAY 123 VOLUNTEERS 37 HORSES 23 HORSE TRAILERS PARKED IN DOWNTOWN VANCOUVER 6 PERFORMANCES

PREMIUM BUSINESSES

143 4

TOTAL NUMBER OF HORSE COUNCIL BC OFFICIALS.

NEW OFFICIALS WERE ADDED IN 2016.

THERE WERE 95 PREMIUM HCBC BUSINESSES AND 60 REGULAR HCBC BUSINESSES REGISTERED IN 2016

21

WHERE DID YOUR MEMBERSHIP DOLLARS GO in 2016?

SUPPORT/GRANTS/ANIMAL RELIEF $0.06

EC FEES $0.06

COACHING/COMPETITION $0.04 RECREATION $0.03 MARKETING $0.06

INDUSTRY $0.01 MEMBERS INSURANCE $0.16

ADMINISTRATION/ BUILDING/ BOARD $0.22 STAFF $0.36

If HCBC annual spending is represented by $1, the diagram illustrates where the dollar was spent.

Coaching/Competition - Coach and rider development programs, admin of competitions, team events, BC Summer Games, 55+ Games, education of official/judges.

Marketing - Awards, advertising, marketing and communications including website, magazine, print, online etc.

Recreation - BC Equestrian Trail Fund, Share the Trails Workshop, Ride & Drive, and other recreation costs.

Industry - Equine Education Summit, industry association fees, travel, publications and other industry representation costs.

Staff - Including: recreation, coaching, industry, competition, and admin staff, includes travel, training, benefits etc.

Administration/Building/Board of Directors - Board & Committee travel and materials, property tax, mortgage interest, insurance, telephone, leases, credit card processing, postage, printing, accounting and legal, insurance, cost of goods sold, HCBC merchandise costs etc.

Support/Grants/Animal Relief - Core Grants, Zone Funding, scholarships, Athlete Assistance Funding and other sport grants spending, emergency responder training and equipment.

EC Fees - Equestrian Canada membership levy.

22 Members Insurance - Member’s insurance and optional insurance cost.

Horse Council of British Columbia Financial Statements Year Ended December 31, 2016

Horse Council of British Columbia Index to Financial Statements Year Ended December 31, 2016

Page INDEPENDENT AUDITOR'S REPORT

1-2

FINANCIAL STATEMENTS Statement of Financial Position

3

Statement of Operations

4

Statement of Changes in Net Assets

5

Statement of Cash Flows

6

Notes to Financial Statements

7 - 11

Schedule of General Revenue and Expenses (Schedule 1)

12

Schedule of Reallocated Expenses (Schedule 2)

13

INDEPENDENT AUDITOR'S REPORT

To the Members of Horse Council of British Columbia We have audited the accompanying financial statements of Horse Council of British Columbia, which comprise the statement of financial position as at December 31, 2016 and the statements of operations, changes in net assets and cash flows 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 and fair presentation 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 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 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 and fair presentation 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 overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

(continues)

1

Independent Auditor's Report to the Members of Horse Council of British Columbia (continued) Opinion In our opinion, the financial statements present fairly, in all material respects, the financial position of Horse Council of British Columbia as at December 31, 2016 and the results of its operations and its cash flows for the year then ended in accordance with Canadian accounting standards for not-for-profit organizations. As required by the Society Act, British Columbia, we report that, in our opinion, these principles have been applied on a basis consistent with that of the preceding year.

Abbotsford, British Columbia March 8, 2017

2

CHARTERED PROFESSIONAL ACCOUNTANTS

Horse Council of British Columbia Statement of Financial Position December 31, 2016 2016

2015

Assets Current Cash Term deposits (Note 3) Accounts receivable (Note 4) Inventory Prepaid expenses

$

Tangible capital assets (Note 5)

419,655 308,832 200 25,346 14,354

$

359,833 455,101 770 30,450 3,518

768,387

849,672

1,425,612

1,457,044

$

2,193,999

$

2,306,716

$

113,073 14,643 16,601 414,042 37,474

$

139,946 9,907 16,143 413,370 31,377

Liabilities Current Accounts payable and accrued liabilities (Note 6) Goods and services tax payable Zone liability (Note 7) Deferred revenue and restricted amounts (Note 8) Current portion of long term debt (Note 9)

Long term debt (Note 9)

595,833

610,743

259,528

413,024

855,361

1,023,767

210,028 1,128,610

270,306 1,012,643

1,338,638

1,282,949

Net Assets Unrestricted Equity in capital assets

$

2,193,999

$

2,306,716

Commitments (Note 10)

On behalf of the Board

_____________________________ Director _____________________________ Director The accompanying notes are an integral part of these financial statements.

3

Horse Council of British Columbia Statement of Operations Year Ended December 31, 2016 Budget (Unaudited)

2016 Revenue Building Coaching Competition General(Schedule 1) Industry Marketing Recreation Sales

$

Expenses Administration Board of directors Building operating Coaching Competition Cost of sales General(Schedule 1) Industry Marketing Recreation Staff costs

Excess of revenue over expenses

$

56,698 26,000 78,000 1,679,478 12,500 20,000 7,000 34,500

2016

$

56,698 14,430 27,889 1,496,830 1,455 7,286 5,183 34,650

2015

$

56,459 17,217 60,978 1,571,201 22,097 11,400 3,305 38,278

1,914,176

1,644,421

1,780,935

189,900 42,750 97,990 41,500 91,500 23,000 597,323 57,500 75,250 69,000 623,821

221,289 31,366 62,743 11,348 40,458 27,538 454,626 20,553 90,014 44,905 583,892

262,784 28,942 66,401 24,703 54,563 16,827 479,162 44,043 66,834 58,366 545,335

1,909,534

1,588,732

1,647,960

4,642

$

55,689

$

132,975

The accompanying notes are an integral part of these financial statements.

4

Horse Council of British Columbia Statement of Changes in Net Assets Year Ended December 31, 2016

Unrestricted Net assets, beginning of year

$

Equity in Capital Assets

270,306 $

1,012,643

2016 $

2015

1,282,949

$

Excess of revenue over expenses

98,248

(42,559)

Purchase of tangible capital assets

(11,127)

11,127

-

-

(147,399)

147,399

-

-

Repayment of long term debt Net assets, end of year

$

210,028 $

1,128,610

55,689

1,149,974

$

1,338,638

132,975

$

1,282,949

The accompanying notes are an integral part of these financial statements.

5

Horse Council of British Columbia Statement of Cash Flows Year Ended December 31, 2016 2016 Operating activities Excess of revenue over expenses Item not affecting cash: Amortization of tangible capital assets

$

55,689

2015

$

132,975

42,559

42,306

98,248

175,281

570 5,104 (10,836) (26,873) 4,736 458 672

2,475 (8,770) 4,539 10,795 (3,074) (22,147) 170

(26,169)

(16,012)

Cash flow from operating activities

72,079

159,269

Investing activity Purchase of tangible capital assets

(11,127)

(75,257)

(11,127)

(75,257)

(147,399)

(49,497)

Increase (decrease) in cash flow

(86,447)

34,515

Cash and cash equivalents, beginning of year

814,934

780,419

Changes in non-cash working capital: Accounts receivable Inventory Prepaid expenses Accounts payable and accrued liabilities Goods and services tax payable Zone liability Deferred revenue and restricted amounts

Cash flow used by investing activity Financing activity Repayment of long term debt

Cash and cash equivalents, end of year

$

728,487

$

814,934

Cash and cash equivalents consists of: Cash Term deposits

$

419,655 308,832

$

359,833 455,101

$

728,487

$

814,934

The accompanying notes are an integral part of these financial statements.

6

Horse Council of British Columbia Notes to Financial Statements Year Ended December 31, 2016 1.

Description of operations The Society provides programs and financial support to various equestrian groups, societies in the province of British Columbia and its members. The Society is incorporated under the Society Act of British Columbia.

The Society is exempt from income taxes under paragraph 149(l) of the Income Tax Act, Canada.

2.

Summary of significant accounting policies Basis of presentation The financial statements were prepared in accordance with Canadian accounting standards for not-for-profit organizations (ASNFPO).

The Society records its revenue and expenses on a functional basis. Accordingly, expenses are allocated to various reporting categories based on logical functional relationships. Because of this allocation, the Society has prepared an additional schedule (Schedule 2) that reallocates the expenses by major expense category rather than function.

Revenue recognition The Society follows the deferral method of accounting for contributions. Restricted contributions are recognized as revenue of the year in which the related expenses are incurred. Unrestricted contributions are recognized as revenue when received or when receivable, if the amount to be received can be reasonably estimated and collection is reasonably assured.

Inventory Inventory is valued at the lower of cost and net realizable value.

Tangible capital assets Tangible capital assets are stated at cost less accumulated amortization. Tangible capital assets are amortized over their estimated useful lives at the following rates and methods: Building Automotive Computer equipment Computer software Heating, ventilation and air conditioning equipment Furniture and fixtures

4% 30% 30% 25% 15 years

declining balance method declining balance method declining balance method declining balance method straight-line method

20%

declining balance method

In the current year the heating, ventilation and air conditioning equipment ("HVAC") has been removed from the Building capital asset account and a new account has been created. Management believes that the HVAC's useful life will be less than the building. (continues)

7

Horse Council of British Columbia Notes to Financial Statements Year Ended December 31, 2016 2.

Summary of significant accounting policies (continued) Measurement uncertainty The preparation of financial statements in conformity with Canadian generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amount of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the period. Such estimates include providing for amortization of capital assets, estimating the deferred portion of revenue received and estimating the unexpended portion of restricted revenue. Actual results could differ from these estimates.

3.

Term deposits 2016 Issued December 7, 2016, interest 0.90%, maturity December 7, 2017 Issued December 7, 2016, interest 0.60%, maturity June 7, 2018

4.

2015

$

154,416 154,416

$

455,101 -

$

308,832

$

455,101

Accounts receivable 2016 Accrued interest Other

5.

$

152 48

$

742 28

$

200

$

770

Tangible capital assets

Land Building Automotive Computer equipment Computer software Heating, ventilation and air conditioning equipment Furniture and fixtures

$

722,422 774,409 6,782 29,009 11,353

$

48,450 56,860 $

1,649,285

2016 Net book value

Accumulated amortization

Cost

8

2015

157,818 3,459 17,391 11,301

$

5,168 28,536 $

223,673

722,422 616,591 3,323 11,618 52

2015 Net book value $

43,282 28,324 $

1,425,612

722,422 688,794 4,747 7,258 70 33,753

$

1,457,044

Horse Council of British Columbia Notes to Financial Statements Year Ended December 31, 2016 6.

Accounts payable and accrued liabilities 2016 Trade accounts payable Media partners liability Payroll and employee benefits

7.

2015

$

67,272 4,759 41,042

$

99,838 4,651 35,457

$

113,073

$

139,946

Zone liability Zone liability is an accumulation of funds that is used for zone functions or programs at the discretion of the zone executive. The board has mandated that, after December 31st of each year, zone accounts over $ 1,500 will be reallocated to grant funding programs for the following year.

8.

Deferred revenue and restricted amounts 2016 BC Trails Funds Equine Foundation Rental deposits Book store orders Unearned membership fees

9.

2015

$

1,841 9,694 4,730 216 397,561

$

13,317 11,791 2,271 385,991

$

414,042

$

413,370

Long term debt 2016 Envision Credit Union loan bearing interest at 4.06% per annum, repayable in monthly blended payments of $4,070. The loan matures on April 26, 2018 and is secured by first mortgage over land and building.

$

Amounts payable within one year

297,002

2015

$

(37,474) $

259,528

$

37,474 259,528

$

297,002

444,401 (31,377)

$

413,024

Principal repayment terms are approximately: 2017 2018

(continues)

9

Horse Council of British Columbia Notes to Financial Statements Year Ended December 31, 2016 9.

Long term debt (continued) The carrying amount of the secured land and buildings as of December 31, 2016 was $ 1,382,295. During the year, two principal reduction payments totaling $ 114,000 were made in addition to the required monthly mortgage payments.

10. Commitments The Society, as of December 31, 2016, was committed to two equipment leases (photocopier and mail machine). The mail machine and photocopier leases extend to 2018 and 2020 respectively.

The Society is committed to annual lease payments as follows: 2017 2018 2019 2020

$

8,728 6,358 3,988 3,988

$

23,062

11. Related party transactions The Society has a relationship with and a number of transactions annually with Equine Canada, which is the federal governing body for equestrian sport. In addition, one of the Society's directors is also a director of Equine Canada. The Society made expenditures of $200 ($ 1,908 - 2015) to and had revenue of $0 ($ 4,565 2015) from Equine Canada. In addition, the Society sets aside a levy of 10% of membership fees received. In 2016, this levy totalled $102,144 ($ 100,744 - 2015). As at December 31, 2016, there was $ 1,401 ($ 1,614 2015) owing to Equine Canada. Transactions are recorded at the exchange amount which approximates fair market value.

In addition, there was four (five - 2015) directors of the Society that received consideration for subcontract services provided to the Society. During the year, the Society paid the director(s) $ 2,093 ($ 2,918 - 2015).

Transactions are recorded at the exchange amount which approximates fair market value.

12. Non-monetary transaction The Society has media contracts with six member commercial entities. In exchange for providing the businesses with a subscription service on its website, the Society receives free advertising in the members' publications. The Society has estimated that the value of that advertising for 2016 was approximately $ 48,270 ($ 57,635 - 2015).

This non-monetary transaction meets one of the exceptions for fair market measurement in that it is an exchange of a service for a service in the same line of business to facilitate sales to customers other than the parties to the exchange. Accordingly, this transaction is measured at its carrying amount (i.e. the cost of the service given up), which is nil.

13. Financial instruments The Society is exposed to various risks through its financial instruments and has a comprehensive risk management framework to monitor, evaluate and manage these risks. The following analysis provides information about the Society's risk exposure and concentration as of December 31, 2016. (continues)

10

Horse Council of British Columbia Notes to Financial Statements Year Ended December 31, 2016 13. Financial instruments (continued) Liquidity risk Liquidity risk is the risk that an entity will encounter difficulty in meeting obligations associated with financial liabilities. The Society is exposed to this risk mainly in respect of its receipt of funds from its members and customers and other related sources, long-term debt, and accounts payable.

Market risk Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: currency rate risk, interest rate risk and other price risk. Of these three risks, the Society is only exposed to interest rate risk.

Interest rate risk Interest rate risk is the risk that the value of a financial instrument might be adversely affected by a change in the interest rates. In seeking to minimize the risks from interest rate fluctuations, the Society manages exposure through its normal operating and financing activities. The Society is not overly exposed to interest rate risk as its main source of financing (i.e. long term debt) has a fixed rate of interest.

14. Comparative figures Some of the comparative figures have been reclassified to conform to the current year's presentation.

11

Horse Council of British Columbia Schedule of General Revenue and Expenses

(Schedule 1)

Year Ended December 31, 2016 2016 General revenue Cost recovery Best Ever Revenue Administrative fees Interest revenue National Sport Trust Animal Relief Revenue Miscellaneous revenue Gaming Equine Canada levy Members optional insurance Sport funding Memberships

General expenses Animal Relief Expenses Athlete support Best Ever Club grants Equine Canada levy Equine Canada membership fee Improving Performance Expense Members insurance Members optional insurance National Sport Trust Scholarships Travel support Zone support

2015

$

211 3,828 3,447 2,096 6,729 55,036 102,144 114,945 163,836 1,044,558

$

193 2,870 3,819 11,416 13,094 3,209 18,050 55,834 99,708 136,820 204,795 1,021,393

$

1,496,830

$

1,571,201

$

1,387 17,900 45,339 102,143 169,080 91,365 5,000 22,412

$

5,907 17,836 2,870 25,401 99,336 100 6,312 172,643 106,520 13,094 5,000 1,300 22,843

$

454,626

$

479,162

The accompanying notes are an integral part of these financial statements.

12

Horse Council of British Columbia Schedule of Reallocated Expenses

(Schedule 2)

Year Ended December 31, 2016 2016 Expenses by Expense Category Advertising and promotion Contract payments Credit card processing charges Equipment rental Insurance Interest and bank charges Interest on long term debt Inventory purchases Meetings Memberships and dues Office and miscellaneous Professional fees Program expenses Property taxes Repairs and maintenance Salaries and benefits Support and grants Telephone Travel

$

Subtotal Amortization of tangible capital assets Total Expenses

$

80,425 71,430 31,606 9,339 378,985 248 15,359 25,101 13,738 4,615 36,050 12,945 125,018 22,878 9,903 575,677 92,039 12,078 28,739

2015 $

61,592 35,535 39,690 47,680 397,486 294 19,316 15,750 11,499 5,102 65,593 15,225 178,977 24,003 6,657 535,969 100,564 10,326 34,396

1,546,173

1,605,654

42,559

42,306

1,588,732

$

1,647,960

The accompanying notes are an integral part of these financial statements.

13

Š Horse Council BC, April 2017 The contents of this report may be shared freely in its original form provided that attribution is given to Horse Council BC (HCBC).

For more information about HCBC, the content of this report, or to share your comments about it, please contact communication@hcbc.ca or visit hcbc.ca.

Horse Council BC gratefully acknowledges the financial support of the Province of British Columbia through the Ministry of Community, Sport and Cultural Development.

27336 Fraser Hwy., Aldergrove, BC V4W 3N5 604-856-4304 1-800-345-8055

www.hcbc.ca