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Annual Report | 2012


ABOUT SSTC The Saskatchewan Scrap Tire Corporation (SSTC) is a non-profit, non-government organization that delivers a province-wide tire recycling program. Since 1998, the SSTC has diverted millions of used tires from the Saskatchewan waste stream and cleaned up decades worth of old tires from municipal landfills. These tires have been recycled into useful, marketable items. Accountable to both the provincial government and the public, the SSTC manages the collection and processing of scrap tires for recycling and reuse in order to eliminate them from landfill disposal.

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Consumers make all of this possible by paying a recycling fee when they buy new tires. The fee paid by consumers on the purchase of a new tire is remitted to the SSTC. These funds are then used to cover the cost of collecting and processing the scrap tire material into marketable products. There are over 1,350 participating retailers, four tire collection companies, and two scrap tire processors in the province.


A MESSAGE FROM THE EXECUTIVE DIRECTOR We have had many remarkable years of operation since the Saskatchewan Scrap Tire Corporation (SSTC) began, but our fifteenth anniversary year has been one of the most inspiring to date for programs, collections, and community involvement. Before our program, most consumers simply purchased new tires and drove off without a second thought - and many of their end-of-life tires simply ended up in landfills without much more thought. Scrap tire piles are a danger to the environment for many reasons. We don’t have to look further than the 1990 fire in Ontario that brought the issue to the forefront for many municipalities, and resulted in communities across the country taking a sobering look at what discarded piles of rubber tires could become. We have accomplished so much since the program began here in Saskatchewan, with just a few of the highlights: • • •

Establishing Phase 1 of our program, which continues today: the day-to-day system that ensures scrap tires are responsibly collected, handled, and recycled.

COMPLETING Phase 2 of our program: successfully cleaning over 300 municipal landfills of their scrap tires and advocating for bylaws that prohibit scrap tire dumping at landfills.

The start of Phase 3 of our program; working to locate, clean up, and educate about private scrap tire stock piles, in addition to piloting recycling programs for non-automotive tires such as those on bicycles.

We have never rested on our laurels, and rarely rested, period! Although we have made remarkable gains and have seen, literally, tons of scrap tires safely collected and recycled, our work will roll on. With gratitude for the past 15 years and optimism for the next 15, Theresa McQuoid, Executive Director

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The THREE Phases OF THE SSTC

GOVERNANCE

PHASE 1 – CURRENT GENERATION TIRES

• Saskatchewan Association of Rural Municipalities • Retail Council of Canada • Western Canada Tire Dealers Association • Canada West Equipment Dealers Association • CAA Saskatchewan • Saskatchewan Urban Municipalities Association • Saskatchewan Waste Reduction Council

This is the daily activity of gathering scrap tires accumulated at the retail level. At no cost to the tire retailer, tires are picked up under the SSTC program and diverted from landfill disposal and from the environment in general. Saskatchewan generates about 2,000,000 scrap tires annually (measured as passenger car tire equivalents). Prior to the SSTC program, almost all of these tires ended up in our local landfills as domestic waste. PHASE 2 – MUNICIPAL LANDFILL CLEANUP

This phase of the program involved removing tires from registered landfills in Saskatchewan. When the work wrapped up in 2010, the SSTC had removed the equivalent of 2,000,000 passenger car tires from more than 300 landfill sites around the province. In exchange for the free clean up, municipalities were required to pass bylaws banning scrap tires from their landfills. PHASE 3 – PRIVATE STOCKPILES

This phase of the program involves removing stockpiles of tires from private lands like farmland and urban residential property. In the spring of 2010, the SSTC launched a regional pilot project to test the effectiveness of various methods used to complete this phase of the program. The pilot project was a resounding success and the “Black Gold Rush” is now being rolled out across the province. In 2012, the SSTC launched “Return to Retailer,” a leave behind program, in which private consumers could return up to 10 rimless scrap tires to our registered retail partners, who then sent the tires with our collectors for recycling.

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The SSTC is governed by a Board of Directors that is comprised of seven director representatives from the following organizations:

To ensure the efficient and effective operations of the SSTC, three main committees are in place to assist the Board in dealing with specific issues faced by the program: EXECUTIVE COMMITTEE

Comprised of the Chair, Vice Chair, and Treasurer. Responsible for the oversight of Board activities, Board policy and to help ensure that emerging issues are dealt with in a manner consistent with the vision of the Board. FINANCE COMMITTEE

Responsible for overseeing the preparation and maintenance of financial records and for ensuring the credibility of these records through the process of an annual financial audit and through the review of annual budgets and monthly financial statements. INDUSTRY COMMITTEE

Responsible for assisting with the development of policies and executing strategies that benefit the growth and stability of the scrap tire recycling industry.


Managing RESPONSIBLY The SSTC is accountable to its stakeholders, the provincial government, and the public for the collection, processing, and environmentally sound disposal of scrap tires in Saskatchewan. Managing these functions responsibly is essential to program success and sustainability. The SSTC’s financial management activities are reviewed annually by an independent auditing firm. The audit provides assurance that the corporation is conducting business in accordance with acceptable accounting practices. The SSTC also performs Retailer Compliance Reviews and Processor Audits to ensure the systems and processes used to manage collecting and recycling are working, and the standards for safe handling are being followed.

REVENUE GENERATION The SSTC relies on a user-pay principle, which means that the consumer of the tire bears the responsibility for the product once it has reached the end of its useful life. The SSTC program uses the revenue to cover the cost of collecting the scrap tires and ensuring responsible recycling rather than landfill disposal. All revenue generated from the Tire Recycling Fee (TRF) is spent on activities directly related to the program. Approximately 90% of the money is paid to the processors and haulers to collect, transport, and recycle the scrap tires. The remainder is committed to program management, consumer education and awareness, and research and development. For every new tire sold, the retailer remits the TRF or environmental fee, to the SSTC. The TRFs are set by the SSTC and vary according to the type of tire to adequately compensate for the costs of collecting and disposing of each type. In 2012, the fees were: Passenger & Light Truck Tire: $4.00 Medium Truck Tire: $9.00 Agricultural Tire: $15.00 Off-the-road Tires (OTR I): $35.00 Off-the-road Tires (OTR II): $75.00

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2012 Program Data TIRE SALES

The SSTC has over 1,350 registered retailers that reported total sales of 1,545,569 tires in 2012, including those on new vehicles and/or equipment. OFF THE ROAD TIRES AGRICUL TURAL TIRES MEDIUM TRUCK TIRES

8,024 39,205 197,324 1,301,01 6

PASSENGER LIGHT TIRES

500,000

1,000,000

SCRAP TIRE COLLECTION

The SSTC’s scrap tire collectors picked up 790,791 scrap tires in 2012, or 46,859,376 pounds, which is the equivalent of approximately 2.3 million passenger car tires. OFF THE ROAD TIRES AGRICUL TURAL TIRES MEDIUM TRUCK TIRES

1,514 9,886 110,089 669,302

PASSENGER LIGHT TIRES

250,000

500,000

SCRAP TIRE RECYCLING

The processors then turned 19,205,351 pounds of material into crumb, waste steel, waste fibre, tire shred, mulch, molded or stamped product, and other uses. 584,899 lbs 915,066 lbs 7,623,401 lbs 3,757,001 lbs 6,324,984 lbs

2,500,000 lbs

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5,000,000 lbs


BLACK GOLD RUSH This is Phase 3 of the SSTC program and offers a one-time, free clean-up of stockpiles of tires on private land and urban residential property. Prior to the SSTC’s existence, most farmers and landowners simply stockpiled tires as there was no other disposal option. The SSTC offers the program in partnership with municipality offices and service groups throughout Saskatchewan, and works with these groups to design a tire collection event that meets the needs of each community. The program uses a staged approach to the scrap tire clean-up and has removed tires from 81 rural municipalities to date. The 2010 pilot project removed 57,713 scrap tires from 30 rural municipalities in southern Saskatchewan. In 2012, the program formalized and two areas of the province were targeted. In the spring, 26 rural municipalities in west central Saskatchewan participated in the program and 25 rural municipalities participated in the fall in east central Saskatchewan. Together, a total of 104,794 tires were collected. The SSTC partnered with the Summerhill Group to assist local service groups during collection events. The SSTC provided incentives to the service groups for their contributions, on a per tire basis. Looking forward, in 2013, the SSTC is targeting 32 rural municipalities in the northeast part of the province.

# RMs Population # Tires Weight (lbs)

2010

2012 West Central

2012 East Central

30 37,261 57,713 2,808,001

26 26,382 59,385 3,233,608

25 51,989 45,409 2,382,948

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RETURN 2 RETAILER (R2R) Our programs keep growing and going: to help prevent tire stockpiles from reoccurring in Saskatchewan, the SSTC piloted the Return to Retailer (R2R) Program in 2012, which was designed to provide Saskatchewan residents with an opportunity to drop off a maximum number of rimless scrap tires, free of charge, at select tire retailers. The SSTC partnered with three retailers in Regina to deliver the pilot program: Canadian Tire, Kal Tire, and Quality Tire. In total, eight locations were involved in the pilot. The pilot included a host of advertising and communications pieces to help encourage residents to bring in their tires to these sites. The retailers stored the scrap tires on-site, which were then picked up through regular tire collection operations. Tire numbers were promising with thousands of tires delivered to the R2R Retailers during the 6 month pilot. The retailers were pleased with the outcome and agreed to continue to support the program going forward. The R2R program is one more environmentally responsible option for scrap tire disposal. In 2013 R2R will be formally launched in more locations throughout the province.

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BE TIRE SMART The Rubber Association of Canada designed the advocacy campaign “Be Tire Smart” to educate consumers about the benefits of proper tire inflation and maintenance, which, in turn, increases tire life and reduces waste. SSTC also has a responsibility to educate consumers about proper tire care and waste reduction, and partners with the Rubber Association to promote the program. In 2012, the SSTC summer students hit the road throughout Saskatchewan, with used tires to demonstrate proper tire inflation, giveaway tire gauges, and share a wealth of knowledge with consumers. The ambassadors took part in over 22 community events including car shows, farmers’ markets, and other community events across the province where they were able to educate the public on proper tire maintenance. Saskatchewan residents had a chance to win a new set of tires and see demonstrations on wear patterns, tread depth, and tire pressure - which also keeps everyone on the road safe.

BIKE TIRE RECYCLING Begun as a pilot program in 2009 and expanding every year, this is a voluntary recycling partnership between the supporting bike retailers in Saskatchewan and the SSTC. The bike tire recycling program works with the existing scrap tire collection and recycling programs, and is funded by the SSTC. Bicycle tires are not typically part of the SSTC’s regular program as a recycling fee is not charged but but none-the-less, a disposal solution was needed. Since the start of the program: • 11 retailers participating • 7,148 (629 Passenger Tire equivalent) bike tires/tubes collected • SSTC is continuing to work with bike retailers to provide an environmentally responsible and FREE way to get rid of unwanted or used tires • New retailers are approached to join

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COMMUNITY DEMONSTRATION GRANTS Communities around the province invest considerable resources to support recycling as a way to protect the environment and enhance quality of life for Saskatchewan residents. Our Community Demonstration Grant Program awards eligible communities up to $5,500 per community for the purchase and installation of Saskatchewan-manufactured recycled rubber products. The program objective is to bring recycled scrap tires “full circle” back to communities throughout the province. In 2012, we supported six projects from all around the province: • Foam Lake: daycare yard renovation • Meacham: playground surface upgrade • Cabri: playground paving • Leoville: rubber matting in ice arena • Wilkie: pool deck surface for town pool

Funding for the grants is raised through the SSTC’s Tire Recycling Fee, collected on the purchase of each new tire in Saskatchewan. This year’s grants totaled almost $30,000. Applications for the grants close each year in May. Application forms are available on our web site at www. scraptire.sk.ca.

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ADVERTISING & COMMUNICATION To keep administrative costs low, the SSTC works with a contracted provider for its advertising and communications. Regina-based firm Look Matters provides communications, advertising, and government relations support on an ongoing basis. The SSTC’s communications plan uses less than two per cent of the annual budget. The SSTC approaches communication deliberately and strategically to get the best value for dollar while striving to reinforce, educate, and change public behavior when managing end-of-life tires. Every effort is made to ensure that the media selected reach the target audiences in the most cost-effective manner. The methods include, but are not limited to: radio, visual media (print, billboards, transit ads) and social media, which is the newest addition to our stable of options.

presents

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FIFTEEN YEARS OF SSTC A TIMELINE

1998: SSTC was born! The Saskatchewan Scrap Tire Corporation comes into existence. We are a non-governmental agency comprised of independent stakeholders who represent the industries involved with, or affected by, the generation of scrap tires. 1999: Retailer registrations grow to over 1,000. SSTC sees recycling industry start to grow. 2000: SSTC starts Phase 2 of program – removing tires from landfills. 2002: SSTC hit the 3 million mark diverting over 3 million scrap tires from landfills. 2003: SSTC’s fifth anniversary - but to celebrate, SSTC gave the gifts: the start of our Community Demonstration Grants Program. 2004: Removed over 4.7 million pounds of scrap tire material from 36 municipal landfill sites. 2005: SSTC works with Government of Saskatchewan to pilot “rubberized asphalt” sections of highways.

2007: Going green with the Saskatchewan Roughriders: 18,000 recycled Saskatchewan scrap tires made their way into the new turf installed on Taylor Field at Mosaic Stadium. 2008: SSTC joins “Recycle Saskatchewan” initiative, an umbrella group of all recyclers in Saskatchewan, to promote product stewardship and waste reduction. 2009: Bicycle tire collection program launched. 2010: A beautiful ending: Phase 2 of our program wraps up with the final municipal landfill clean up taking place in North Battleford. Over 300 municipal landfills having tire piles removed free of charge. The pilot project for what later became known as the “Black Gold Rush” begins. 2011: Expanding the SSTC’s role in public education as a partner in delivering the “Be Tire Smart” program. 2012: SSTC has recycled over 20 million tires.

2006: SSTC celebrated its 8 millionth tire to be recycled.

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Financial Statements


The Management’s Responsibility

To the Members of Saskatchewan Scrap Tire Corporation:

Management is responsible for the preparation and presentation of the accompanying financial statements, including responsibility for significant accounting judgments and estimates in accordance with Canadian accounting standards for not-for-profit organizations, and ensuring that all information in the annual report is consistent with the statements. This responsibility includes selecting appropriate accounting principles and methods, and making decisions affecting the measurement of transactions in which objective judgment is required. In discharging its responsibilities for the integrity and fairness of the financial statements, management designs and maintains the necessary accounting systems and related internal controls to provide reasonable assurance that transactions are authorized, assets are safeguarded and financial records are properly maintained to provide reliable information for the preparation of financial statements. The Board of Directors and Finance Committee are composed entirely of Directors who are neither management nor employees of the Corporation. The Board is responsible for overseeing management in the performance of its financial reporting responsibilities, and for approving the financial information included in the annual report. The Board fulfils these responsibilities by reviewing the financial information prepared by management and discussing relevant matters with management, and external auditors. The Board is also responsible for recommending the appointment of the Corporation’s external auditors. MNP LLP, an independent firm of Chartered Accountants, is appointed by the board to audit the financial statements and report directly to them; their report follows. The external auditors have full and free access to, and meet periodically and separately with, both the Board and management to discuss their audit findings. February 28, 2013

Management

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To the Members of Saskatchewan Scrap Tire Corporation: We have audited the accompanying financial statements of Saskatchewan Scrap Tire Corporation, which comprise the statements of financial position as at December 31, 2012, December 31, 2011 and January 1, 2011, the statements of operations and changes in reserves, and cash flows for the years ended December 31, 2012, and December 31, 2011, 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. Auditors' Responsibility Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with Canadian generally accepted auditing standards. Those standards require that we comply with ethical requirements and plan and perform the audits 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 auditors’ 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. Opinion In our opinion, the financial statements present fairly, in all material respects, the financial position of Saskatchewan Scrap Tire Corporation as at December 31, 2012, December 31, 2011 and January 1, 2011 and its financial performance and cash flows for the years ended December 31, 2012 and December 31, 2011 in accordance with Canadian accounting standards for not-for-profit organizations.

Independent Auditor’s report

Independent Auditors' Report

Regina, Saskatchewan February 28, 2013

Chartered Accountants

ACCOUNTING › CONSULTING › TAX ROYAL BANK BUILDING, SUITE 900, 2010 – 11TH AVENUE, REGINA, SK S4P 0J3 1.877.500.0780 P: 306.790.7900 F: 306.790.7990 mnp.ca

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Saskatchewan Scrap Tire Corporation

Statements of Financial Position As at December 31, 2012

December 31, December 31, 2012 2011

January 1, 2011

Assets

Current Cash and cash equivalents Marketable securities (Note 4) Accounts receivable Funds held in trust Prepaid expenses and deposits

Capital Assets (Note 5) Investments

1,026,415 960,309 32,810 14,565

1,399,680 466,178 14,501 26,790

1,566,363 41,992 151,736 36,816

2,034,099

1,907,149

1,796,907

91,527

70,408

32,377

412,699

853,772

384,338

2,538,325

2,831,329

2,213,622

611,873 29,803 -

530,905 31,968 -

539,794 29,610 151,736

641,676

562,873

721,140

-

-

(355,993)

1,896,649

2,268,456

1,848,475

1,896,649

2,268,456

1,492,482

2,538,325

2,831,329

2,213,622

Liabilities

Current Accounts payable and accruals Goods and services tax payable Funds held in trust Commitments (Note 7)

Reserves Unrestricted reserve Stabilization reserve (Note 6)

The accompanying notes are an integral part of these financial statements

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3


Saskatchewan Scrap Tire Corporation Statements of Operations and Reserves

For the year ended December 31, 2012

REVENUE Tire recycling fee Other Unrealized gain (loss) on investments

RECYCLING COSTS Recycling fee commission Processing and collection costs Professional fees – program compliance Special projects

PROGRAM ADMINISTRATION EXPENSES Advertising and promotion Amortization Bad debts Computer support Conferences Directors' remuneration Equipment rental Insurance and licenses CATRA management expenses Meeting expense Office operations Postage Printing and publications Professional fees Recycle Sask Rental Salaries, wages and benefits Stationary and supplies Telephone, fax and internet Training and education Travel

Net income (loss) Unrestricted reserve, beginning of year Transfer (to) from stabilization reserve (Note 6) Unrestricted reserve, end of year

2012

2011

7,909,788 48,360 21,195

7,546,963 63,590 (18,954)

7,979,343

7,591,599

146,618 6,578,815 115,939 764,301

137,357 5,799,319 158,114 73,645

7,605,673

6,168,435

106,380 28,483 9,656 30,159 3,247 16,864 6,327 18,705 13,104 3,767 9,737 5,266 28,837 107,786 5,786 38,856 287,318 4,795 8,039 740 11,625

145,920 18,071 3,082 38,512 6,120 14,150 6,339 16,411 11,424 1,918 8,553 5,357 28,624 80,835 7,448 30,650 201,953 4,854 6,906 1,338 8,725

745,477

647,190

(371,807)

775,974

-

(355,993)

371,807

(419,981)

-

-

The accompanying notes are an integral part of these financial statements 4

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Saskatchewan Scrap Tire Corporation

Statements of Cash Flows

For the year ended December 31, 2012 2012

2011

7,881,823 (7,934,666) (287,318) 48,360

7,556,372 (6,574,025) (201,953) 63,590

(291,801)

843,984

(49,602) 462,269

(56,102) (488,387) -

412,667

(544,489)

120,866

299,495

Cash resources, beginning of year

1,865,858

1,566,363

Cash resources, end of year

1,986,724

1,865,858

Cash resources consists of: Cash Marketable securities

1,026,415 960,309

1,399,680 466,178

Total

1,986,724

1,865,858

Cash provided by (used for) the following activities Operating activities Cash received from customers Cash paid to suppliers Cash paid to employees Other revenue

Investing activities Purchases of capital assets Purchase of investments Disposal of investments

Increase in cash resources

The accompanying notes are an integral part of these financial statements

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Saskatchewan Scrap Tire Corporation

Notes to the Financial Statements For the year ended December 31, 2012

1.

Incorporation and commencement of operations Saskatchewan Scrap Tire Corporation (the “Corporation”) is incorporated under the Not-for-profit Corporation's Act and is exempt from income taxes. The purpose of the Corporation is to establish and manage a mandatory scrap tire waste reduction program on behalf of its members as set out in The Scrap Tire Management Regulations.

2.

Impact of adopting accounting standards for not-for-profit organizations These are the Corporation’s first financial statements prepared in accordance with Canadian accounting standards for not-for-profit organizations (ASNPO). The accounting policies in Note 3 have been applied in preparing the financial statements for the year ended December 31, 2012, the comparative information for the year ended December 31, 2011 and the opening ASNPO balance sheet as at January 1, 2011 (the Corporation’s date of transition to ASNPO). In preparing these finance statements, the Corporation has decided not to apply any of the available transitional provisions permitted by CICA 1501 First-time adoption by not-for-profit organizations at the date of transition to ASNPO. The options available were under the categories of business combinations; fair value accounting; employee future benefits; cumulative translation differences; financial instruments; share based payment transactions; asset retirement obligations and related party transactions The transition to ASNPO has not affected the statements of financial position, operations and changes in reserves, or cash flows previously reported under Canadian generally accepted accounting principles (GAAP).

3.

Summary of significant accounting policies The financial statements have been prepared in accordance with Canadian not-for-profit accounting standards and include the following significant accounting policies: Revenue recognition Revenue from tire recycling fees is recognized when retailers submit reports for tires sold. All other revenue is recognized in the period it is earned. Cash and cash equivalents Cash and cash equivalents include balances with banks and short term investments with maturities of three months or less. Capital assets Capital assets are initially recorded at cost. Amortization is provided using methods and rates intended to amortize the cost of assets over their estimated useful lives. Method Computer equipment Computer software Office equipment

Rate

declining balance declining balance declining balance

30 % 100 % 20 %

In the year of acquisition, amortization is taken at one-half of the above rates. Measurement uncertainty The preparation of financial statements in conformity with Canadian not-for-profit accounting standards requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Accounts receivable are stated after the evaluation as to their collectability and an appropriate allowance for doubtful accounts is provided when necessary. Amortization is based on the estimated useful lives of capital assets. 6

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Saskatchewan Scrap Tire Corporation

Notes to the Financial Statements For the year ended December 31, 2012

3.

Summary of significant accounting policies (continued) Financial instruments (i) Measurement of financial instruments The Corporation recognizes its financial instruments when the Corporation becomes party to the contractual provisions of the financial instrument. All financial instruments are initially recorded at their fair value. The Corporation subsequently measures all its financial assets and liabilities at amortized cost, except for marketable securities and investments in equity instruments that are quoted in an active market, which are measured at fair value. Changes in fair value are recognized in the statements of operations and changes in reserves in the period incurred. Fair value is determined by published price quotations. Financial assets measured at amortized cost include cash and cash equivalents and accounts receivable Financial assets measured at fair value include marketable securities and investments. Financial liabilities measured at amortized cost include accounts payable and accruals. Transaction costs and financing fees directly attributable to the origination, acquisition, issuance or assumption of financial instruments subsequently measured at fair value are immediately recognized in the excess (deficiency) of revenues over expenses for the current period. Conversely, transaction costs and financing fees are added to the carrying amount for those financial instruments subsequently measured at amortized cost or cost.

4.

Marketable Securities Marketable securities consist of GIC’s with interest rates ranging from 1.45% to 2.00% (2011 – 1.61% to 2.00%) and maturity dates of December 5, 2013 (2011 – December 5, 2012).

5.

Capital assets Accumulated Cost amortization Computer equipment Computer software Office equipment

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7

2012 Net book value

2011 Net book Value

221,780 20,831 53,818

140,579 20,498 43,825

81,201 333 9,993

56,579 1,337 12,492

296,429

204,902

91,527

70,408


Saskatchewan Scrap Tire Corporation

Notes to the Financial Statements For the year ended December 31, 2012

6.

Stabilization reserve In 2006, the Board internally restricted funds through the establishment of a stabilization reserve to ensure that funds are available to meet financial obligations of the Corporation. The amount of $371,807 (2011 - $419,981) was transferred from (2011 – to) the reserve as at December 31, 2012 and is subject to change at the discretion of the Board of Directors. The balance includes $91,527 (2011 $70,408) invested in Capital Assets. 2011 2012

7.

Stabilization reserve, opening balance Transfer (to) from unrestricted reserve

2,268,456 (371,807)

1,848,475 419,981

Stabilization reserve, ending balance

1,896,649

2,268,456

Commitments The Corporation has entered into various lease agreements with estimated minimum annual payments as follows: 2013 2014 2015 2016

8.

42,579 43,673 44,601 34,046

Financial instruments The Corporation as part of its operations carries a number of financial instruments. It is management’s opinion that the Corporation is not exposed to significant interest, currency, credit, liquidity or other risks arising from these financial instruments except as otherwise disclosed. Liquidity risk Liquidity risk is the risk that the Corporation will encounter difficulty in meeting obligations associated with financial liabilities. The Corporation’s exposure to liquidity risk is dependent on the receipt of tire recycling fees, collection of accounts receivable, purchasing commitments and obligations or raising funds to meet commitments and sustain operations. Other price risk Other price risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices, whether those changes are caused by factors specific to the individual financial instrument or its issuer, or factors affecting all similar financial instruments traded in the market. The Corporation enters into transactions to purchase/sell equity investments for which the market price fluctuates.

9.

Capital disclosure The Corporation’s objective when managing capital is to maintain a sufficient reserve fund base to ensure they can continue to cover the significant expenditures relating to the Corporation. The Corporation transfers surpluses to the stabilization reserve as disclosed in Note 5.

10.

Comparative figures Certain comparative figures have been reclassified to conform to current year presentation.

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MAIL

STREET ADDRESS

P.O. Box 1936 Regina, Saskatchewan S4P 3E1

420 - 2220 12th Avenue Regina, Saskatchewan S4P 0M8

P: 306.721.TIRE (8473) F: 306.721-1585 E: info@scraptire.sk.ca

SSTC 2012 Annual Report  

The 2010-2011 annual report for the Saskatchewan Scrap Tire Association.

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