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2013-2014 Annual Report
The Saskatchewan
Barley Development Commission
is a producer-led organization
established to grow the province’s
barley industry.
MISSION:
To identify, develop and support research,
market development, and extension initiatives that
ensure long term profitable and sustainable
barley production for Saskatchewan farmers.
2014Board of Directors
Cam Goff, Chair [email protected] Tel: 306-544-2790
Jason Skotheim, Vice-Chair [email protected] Tel: 306-270-4343
Zenneth Faye [email protected] Tel: 306-675-4926
Brent Johnson [email protected] Tel: 306-725-3228
Allen Kuhlmann [email protected] Tel: 306-582-2001
Jeff Mathieson [email protected] Tel: 306-520-8080
SBDC Staff and Office
Jillian McDonald, MSc Executive Director
Bay 6A – 3602 Taylor Street East Saskatoon, SK S7H 5H9
Direct Line: 306-370-7237 General Inquiries: 306-653-7232 Fax: 306-244-4497
saskbar l eycommiss ion . com
Saskatchewan Barley Development CommissionAnnual General Meeting
Monday January 12, 2015 Gallery D, TCU Place | 2:15 p.m. – 3:15 p.m.
Agenda 1. Call to Order and Opening Remarks: Cam Goff, Board Chair
2. Approval of Agenda
3. Review and Approve Minutes of the Last Annual General Meeting
4. Business Arising from the Minutes
5. Chair’s Report
6. Executive Director’s Report
7. Auditor’s Report
8. Appointment of Auditor for 2014/2015
9. Call for Resolutions
10. New Business
11. Adjournment
Motions to be PresentedThat the Agenda for the January 12, 2015 AGM be approved as presented.
That the minutes of the January 13, 2014 Annual General Meeting be approved as presented.
That the Chair’s Report/State of the Industry be approved as presented.
That the Executive Director’s report be approved as presented.
That the audited statements for the year ended July 31, 2014 be approved as presented.
That the SBDC appoint PricewaterhouseCoopers LLP as auditor for the year ending July 31, 2015.
To approve director’s honorariums as presented.
To adjourn the January 12, 2015 Annual Business Meeting.
MinutesSaskatchewan Barley Development Commission
Annual General MeetingGallery D, TCU Place | 2:15 p.m. – 3:15 p.m.
January 13, 2014
1. Call to Order and Opening Remarks
Chair Cooper called the meeting to order and welcomed everyone to the inaugural Annual General Meeting of the Saskatchewan Barley Development Commission.
He then introduced the Interim Board of Directors – Bill Copeland, Tom Hewson and Todd Lewis. Dennis Fuglerud sends his regrets. Chair Cooper identified the Resolutions Committee – Tom Hewson and Todd Lewis and asked that any resolutions be given to either Hewson or Lewis.
2. Greetings from Saskatchewan’s Minister of Agriculture
Minister Lyle Stewart provided greetings on behalf of the Saskatchewan Ministry of Agriculture.
3. Approval of Agenda
Motion #1 To approve the January 14, 2014 Annual General Meeting agenda as presented. R. Phillips / Z. Faye / Carried
4. Interim Chair’s Report / State of the Industry
Chair Cooper provided a review of the start-up of the Commission and the progress made to date.
As the wheat industry was also considering setting up a commission the two boards decided to work together. They collaborated and explored ways to save on administration costs. One of those cost saving measures was to hire the same General Manager, Tom Steve for both commissions. Cooper stated he has received many compliments and support from across the industry on the appointment of T. Steve.
Chair Cooper stated the prairie barley industry is facing interesting times and it is important to keep in mind to add value for the levy payers.
He gave a brief update on the Barley Council of Canada.
Chair Cooper thanked the interim board, the Ministry of Agriculture staff and the individual barley producers for their support and he looks forward to the many accomplishments of the Commission.
Motion #2 That the Interim Chair’s Report be approved as presented. G. Gust / B. Copeland / Carried
5. General Manager’s Report
T. Steve thanked everyone for attending. He provided an overview of operations and stated he looks forward to the work ahead.
Motion #3 That the General Manager’s Report be approved as presented. B. Copeland / J. Matheison / Carried
Motion #4 To appoint PriceWaterhouseCoopers as the auditor for the year ending July 31, 2014. A. Kuhlmann / B. Johnson / Carried
6. Call for Resolutions
None 7. New Business
No new business was brought forward.
8. Introduction of Elected Board of Directors
B. Cooper provided a brief overview of the election process and results.
Ann Smith from Levy Central acted as Returning Officer. There were 9 nominations verified. Ballots were mailed and accepted by the Returning Officer until 5:00 p.m. December 6. Ballots were opened and counted beginning the afternoon of December 10 and concluded the afternoon of December 11. There were 566 verified ballots, 549 were accepted and 17 were spoiled. After the ballots were counted the 9 candidates were notified of the results.
Chair Cooper introduced the first elected board of the Saskatchewan Barley Development Commission: Zenneth Faye, Cam Goff, Brent Johnson, Allen Kuhlmann, Jeff Mathieson and Jason Skotheim.
T. Steve thanked the Interim Board for their guidance and support and presented B. Cooper, Bill Copeland, Tom Hewson and Todd Lewis with small tokens of appreciation.
9. Adjournment
Motion #5 To adjourn the January 13, 2014 Annual General Meeting J. Mathieson
Chair’s Report
As I write this mid-November and the initial few snowflakes are on the ground, I hope that everyone was able to complete their harvest. Looking back on the 2013/2014 crop year, we recorded record setting production, and then faced extreme transportation challenges to get our product to its destination in a cost effective and timely manner. The Saskatchewan Barley Development Commission (SaskBarley) held its first election during the late fall of 2013.
Six farmer elected directors now sit as the Board for the SBDC. Initially, SaskBarley was managed in conjunction with the Saskatchewan Wheat Development Commission under one Executive Director. The elected board decided that barley interests needed their own focus and decided to branch out and hire their own Executive Director to manage the commission. SaskBarley still maintains close ties with the Saskatchewan Wheat Development Commission and works with them on many issues.
During this first full fiscal year of levy collection, we have been focused on building collaborative relationships among other Saskatchewan commissions as well as with commissions in neighboring provinces. We also became a member of the Barley Council of Canada to further leverage our market development and research efforts at the national and international level. We feel these collaborative relationships are important to maximize funds and available resources to ensure that barley is a viable crop choice well into the future.
We have spent much of our time since the election being active in the policy discussion on plant breeder rights, the future of cereals research, and of course, transportation. SaskBarley has a strong mandate to invest in research that will result in a net return per acre to Saskatchewan farmers and make barley a profitable crop choice. The first complete year of SaskBarley has allowed us to lay a strong foundation for the future of this commission.
Cam Goff
Executive Director’s Report
This annual report covers the first fiscal year of the Saskatchewan Barley Development Commission (SaskBarley) which ran August 1, 2013 to July 31, 2014. While I did not start with SaskBarley until May 2014, I can report that there were many activities and collaborative initiatives that occurred during the fiscal year that will provide SaskBarley with a strong foundation as it moves forward.
The first elected board came to office in January 2014 to replace the appointed interim board. In addition to having a new commission and new board, there were significant challenges that faced the agriculture industry as a whole. Immediately the new board was faced with policy challenges such as the transportation crisis and changes to plant breeders’ rights in Canada. The board quickly got up to speed on these issues and were active participants in providing farmer directed input to government agencies.
Much of the 2013/2014 was about getting the operations of SaskBarley up and going. The creation and approval of governance documents and accountabilities, while not always interesting, are key components to a new and growing organization. With the first year focused on operations, future fiscal years can expand into other activities such as research and market development.
SaskBarley continues to build strong partnerships with other provincial crop commissions as well as with the barley commissions in Alberta and Manitoba. For a stronger national and international voice, SaskBarley also became a member of the Barley Council of Canada in April 2014. This organization provides a united national voice to represent the interests of the Canadian barley supply chain. SaskBarley will continue to work with the Barley Council of Canada on policy, market development and research initiatives.
One of the other issues SaskBarley has been working on is the submission of an Order in Council to collect check off revenue of Saskatchewan grown barley that is sold in other provinces. We know that there are leakages in the collection of revenue fees as many tonnes of barley are trucked to neighboring provinces. Upon approval of this Order in Council, levy fees on Saskatchewan grown barley and sold in other parts of Canada will be collected by SaskBarley to be invested in research and market development opportunities that benefit Saskatchewan farmers.
It has been a great experience to work with the farmers, partner organizations and government agencies and officials in the development and continued growth of SaskBarley. Our plan is to work as collaboratively and efficiently as possible to get the most value out of every check off dollar collected. We want to increase the profitability of barley production for Saskatchewan farmers, and all our efforts have that goal in mind.
Jillian McDonald
Saskatchewan BarleyDevelopment Commission
Financial StatementsJuly 31, 2014
PricewaterhouseCoopers LLP128 4th Avenue South, Suite 600, Saskatoon, Saskatchewan, Canada S7K 1M8T: +1 306 668 5900, F: +1 306 652 1315
“PwC” refers to PricewaterhouseCoopers LLP, an Ontario limited liability partnership.
December 10, 2014
Independent Auditor’s Report
To the Board of Directors of theSaskatchewan Barley Development Commission
We have audited the accompanying financial statements of Saskatchewan Barley DevelopmentCommission, which comprise the statement of financial position as at July 31, 2014 and July 31, 2013 andthe statements of operations and unrestricted net assets and cash flows for the periods then ended, andthe related notes which comprise a summary of significant accounting policies and other explanatoryinformation.
Management’s responsibility for the financial statementsManagement is responsible for the preparation and fair presentation of these financial statements inaccordance with Canadian accounting standards for not-for-profit organizations, and for such internalcontrol as management determines is necessary to enable the preparation of financial statements that arefree from material misstatement, whether due to fraud or error.
Auditor’s responsibilityOur responsibility is to express an opinion on these financial statements based on our audits. Weconducted our audits in accordance with Canadian generally accepted auditing standards. Those standardsrequire that we comply with ethical requirements and plan and perform the audit to obtain reasonableassurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures inthe financial statements. The procedures selected depend on the auditor’s judgment, including theassessment of the risks of material misstatement of the financial statements, whether due to fraud orerror. In making those risk assessments, the auditor considers internal control relevant to the entity’spreparation and fair presentation of the financial statements in order to design audit procedures that areappropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness ofthe entity’s internal control. An audit also includes evaluating the appropriateness of accounting policiesused and the reasonableness of accounting estimates made by management, as well as evaluating theoverall presentation of the financial statements.
We believe that the audit evidence we have obtained in our audits is sufficient and appropriate to provide abasis for our qualified audit opinion.
Basis for qualified opinionIn common with many similar not-for-profit organizations, Saskatchewan Barley DevelopmentCommission derives revenue from producer check-off fees, the completeness of which is not susceptible tosatisfactory audit verification. Accordingly, verification of these revenues was limited to the amountsrecorded in the records of Saskatchewan Barley Development Commission. Therefore, we were not able todetermine whether any adjustments might be necessary to producer check-off fees, excess of revenue overexpenditures and cash flows from operations for the period ended July 31, 2014, current assets as atJuly 31, 2014and unrestricted net assets as at July 31, 2014.
Qualified opinionIn our qualified opinion, except for the possible effects of the matter described in the basis for qualifiedopinion paragraph, the financial statements present fairly, in all material respects, the financial position ofSaskatchewan Barley Development Commission as at July 31, 2014 and July 31, 2013 and the results of itsoperations and its cash flows for the periods then ended in accordance with Canadian accountingstandards for not-for-profit organizations.
Chartered Accountants
Saskatchewan Barley Development CommissionStatement of Financial PositionAs at July 31, 2014
Approved by the Board of Directors
___________________________________ Director ________________________________ Director
The accompanying notes are an integral part of these financial statements.
2014$
2013$
Assets
Current assetsCash 384,349 29,331Investments 20,000 -Accounts receivable 74,704 -Prepaid expenses 5,246 -
484,299 29,331
Liabilities
Current liabilitiesAccounts payable and accrued liabilities 52,200 2,707Loan payable (notes 3 and 4) - 50,000
52,200 52,707
Unrestricted net assets 432,099 (23,376)
484,299 29,331
Saskatchewan Barley Development CommissionStatement of Operations and Unrestricted Net Assets
The accompanying notes are an integral part of these financial statements.
Budget$
Year endedJuly 31,2014
$
Period endedJune 7, 2013to July 31,
2013$
(note 5)
RevenueProducer check-off fees 1,104,714 820,176 -Refunds (110,471) (39,135) -
994,243 781,041 -
Grants - 8,900 -Interest income - 459 -
994,243 790,400 -
ExpendituresOperating (note 4)
Service contracts 79,450 89,737 12,656General and administrative 79,490 74,808 4,393Board of directors 37,250 66,548 6,327Subscriptions and sponsorships 2,500 36,700 -Election costs 70,000 26,353 -Management fees 37,000 26,279 -
305,690 320,425 23,376
Research - 14,500 -
305,690 334,925 23,376
Excess (deficiency) of revenue overexpenditures 688,553 455,475 (23,376)
Unrestricted net assets – Beginning of year (23,376) (23,376) -
Unrestricted net assets – End of year 665,177 432,099 (23,376)
Saskatchewan Barley Development CommissionStatement of Cash Flows
The accompanying notes are an integral part of these financial statements.
Year endedJuly 31,2014
$
Period endedJune 7, 2013to July 31,
2013$
Cash provided by (used in)
Operating activitiesExcess (deficiency) of revenue over expenditures for the year 455,475 (23,376)
Changes in non-cash working capital itemsAccounts receivable (74,704) -Prepaid expenses (5,246) -Accounts payable and accrued liabilities 49,493 2,707
425,018 (20,669)
Investing activitiesPurchase of investments (20,000) -
Financing activitiesProceeds from (repayment of) loans payable (50,000) 50,000
Net change in cash 355,018 29,331
Cash – Beginning of year 29,331 -
Cash – End of year 384,349 29,331
Saskatchewan Barley Development CommissionNotes to Financial StatementsJuly 31, 2014
(1)
1 Nature of business
The Saskatchewan Barley Development Commission (the “commission” or “SBDC”) was established byprovincial legislation on June 7, 2013. The activities of the commission are funded primarily by a levy onSaskatchewan produced barley, which is collected by buyers at the time of sale.
The mandate of the commission is to invest grower’s check-off dollars in research and market developmentinitiatives that contribute to profitable and sustainable barley production in Saskatchewan.
2 Summary of significant accounting policies
a) Basis of presentation
These financial statements include the accounts of the commission and are presented in accordance withCanadian accounting standards for not-for-profit organizations (“ASNPO”).
b) Use of estimates
The preparation of financial statements in conformity with ASNPO requires management to makeestimates and assumptions that affect the reported amounts of assets and liabilities and disclosure ofcontingent assets and liabilities at the date of the financial statements and the reported amount of revenueand expenditures during the reporting period. Actual results could differ from these estimates.
c) Revenue recognition
Producer check-off fees are recognized as product is sold from the producer to the buyer. Refunds arerecognized using the accrual method based on actual requests submitted by producers for the crop yearand are paid out subsequent to year-end by the commission.
The commission follows the deferral method of accounting for contributions, including grants.Unrestricted contributions are recognized as revenue when received or receivable if the amount to bereceived can be reasonably estimated and collection is reasonably assured. Restricted contributions forexpenses of the current period are recognized as revenue in the current period and restricted contributionsfor expenses of one or more future periods are deferred and recognized as revenue in the same period orperiods as the related expenses are recognized.
Investment income is recognized as it is earned. Contributions of materials and services are recognizedonly when a fair value can be reasonably estimated and when the materials and services are used in thenormal course of the commission’s operations and would otherwise have been purchased.
d) Financial instruments
Financial assets and financial liabilities, consisting of cash, investments, accounts receivable, prepaidexpenses, accounts payable and accrued liabilities, and loan payable are initially recognized at fair valueand subsequent measurement is at amortized cost. The commission does not consider itself to have
Saskatchewan Barley Development CommissionNotes to Financial StatementsJuly 31, 2014
(2)
significant exposure to credit risk, currency risk, interest rate risk, liquidity risk, market risk or other pricerisk.
3 Loan payable
During the period ended July 31, 2013 the commission entered into a loan agreement with the SaskatchewanWheat Development Commission for $50,000. The loan bore interest at 2% compounded semi-annually andwas repaid in full during the year ended July 31, 2014.
4 Related party transactions
For the majority of the year ended July 31, 2014 the commission was under common management with theSaskatchewan Wheat Development Commission. During that time, the loan from the Saskatchewan WheatDevelopment Commission for $50,000 was settled in addition to $1,000 of interest incurred on the loan. Alsoduring the year ended July 31, 2014 the commission paid a total of $40,977 to the Saskatchewan WheatDevelopment Commission for shared costs, including $26,279 in management fees.
During the year ended July 31, 2014 members of the commission’s first elected Board of Directors receivedpayments for per diems and expenses of $42,558. During the year ended July 31, 2014 members of thecommission’s interim unelected Board of Directors received payments for per diems and expenses of $23,990(period ended July 31, 2013 – $6,210). All of these amounts are included in board of directors’ expenditures onthe Statement of Operations and Unrestricted Net Assets.
All related party transactions described above are measured at carrying amounts.
5 Budgeted amounts
In preparation for the formation of the commission, budget estimates were prepared by a consultant andpresented to the interim unelected Board of Directors. However, with the transition from the interim unelectedBoard of Directors to the first elected Board of Directors, the initial budget estimates included in these financialstatements were not approved until November 2014. These budged amounts are unaudited and have beenprovided for purposes of comparison.
Saskatchewan Barley Development Commission Payee List
August 1, 2013 - July 31, 2014
Personal Services (Threshold $2,500)
Board of Directors (all amounts included)Honorariums Expenses Total
Cooper, Bill 15,550 3,353 18,903Faye, Zenneth 3,750 3,328 7,078Fugelrud, Dennis 600 99 699Goff, Cam 9,700 5,031 14,731Hewson, Tom 2,100 2,288 4,388Johnson, Brent 2,700 1,265 3,965Kuhlmann, Allen 3,900 3,558 7,458Mathieson, Jeff 3,900 1,674 5,574Skotheim, Jason 2,900 853 3,753
Research and Development (Threshold $5,000)Saskatchewan Variety Performance Group 14,500
Extension (Threshold $5,000)Barley Council of Canada 25,000Farm & Food Care Saskatchewan 5,250Prairie Oat Growers Association 5,000
Extension Media and CommunicationCanada Post 6,247Prairie Marketing & Advertising 23,658Reach Communications 9,523
Supplier Payments (Threshold $20,000)AgriBiz Communications Corp 51,279Agriculture Council of Saskatchewan 30,695Saskatchewan Wheat Development Commission 29,915
Other Payments (Threshold $20,000)None
Saskatchewan Barley Development CommissionAnnual General Meeting
Payee ListAugust 1, 2013 – July 31, 2014
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