2019 - 2020 ONTARIO ONE CALL · 2020-06-17 · April 15, 2020 In 2018, Ontario One Call implemented a new assessment-based billing model that replaced the previous notification-based

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Dean Dalpe Enbridge Gas Inc. – Gas/Oil/Pipeline Sector

Tony DiPede North Rock Group – Excavator Sector

Wayne Eichenberger Wightman – Telecommunications and Cable Sector

Kevin Green Bell Canada – Telecommunications and Cable Sector

Chris Hudson Alectra Utilities – Electrical Sector

Karen Marner, Treasurer Oakville Enterprises – Excavator Sector

Scott Mudie, Chair Oakville Hydro Energy – Electrical Sector

John Oakley Enbridge Gas Inc. (Retired) – Gas/Oil/Pipeline Sector

Courtney Roedding Bell Canada – Telecommunications and Cable Sector

Enrico Scalera Town of Oakville – Municipal Sector

Ysni Semsedini Newmarket-Tay Power – Electrical Sector

Nancy Taylor Utilities Kingston – Gas/Oil/Pipeline Sector

April 15, 2020

The commitment of the Board of Directors is driven by our desire to help Ontario One Call in its objective to protect communities from the loss of service and harm caused by damages to underground infrastructure. We are also focused on improving the overall governance of the organization and ensuring that the Board provides effective oversight. This document will show our progress to date, describe the five-year strategic direction and outline the overall financial health of the organization.

In 2019, the Board worked on a number of tasks to improve governance and accountability. We went through a self-evaluation and skill matrix study which helped identify what qualities were required for future Board members and underline training opportunities. New appointments to the Board reflected a desire to increase our capacity in the areas of legal expertise and board governance. A training program was also developed with the Institute of Corporate Directors to further develop the Board’s effectiveness.

Our relationship with the Ministry of Government and Consumer Services is an important part of Ontario One Call‘s

operating model. We are currently working under a five-year Memorandum of Understanding with the provincial government. Although not a Delegated Administrative Authority, Ontario One Call strives to meet a high standard of service, transparency, and governance that stakeholders should expect.

In the midst of the COVID-19 pandemic, the Board is very gratified that Ontario One Call has continued to provide high service levels to members and excavators. Our employees are working safely from home, but have still been able to process tickets, help members with their needs and address any complaints or concerns that have arisen during this challenging time.

Sincerely,

Scott Mudie Board Chair, Ontario One Call


April 15, 2020

As Executive Director of Ontario One Call, I want to thank you for reading our 2019 Annual Report & Strategic Plan. This document will provide a brief overview of our progress plus highlight our future direction.

Ontario One Call is focused on initiatives that will enhance the value of our service to members and excavators. We are committed to our vision of being a “premier partner for members and excavators in enabling responsible excavation.”

The implementation of Map Selection Notification (MSN) is a key example. Through improvements to the One Call system and member mapping, notifications per ticket declined from 7.20 in 2017 to 6.23 in 2018 and 6.04 in 2019. This means fewer unnecessary notifications being sent to members. Annualized savings grew to $9.8 million in 2019 (up from $5.6 million in 2018), greater than the yearly cost of running the entire Ontario One Call system.

The improved web experience has increased online ticket submission from 80% of total tickets to 83% from 2018 to 2019. This further improves the accuracy of data received by members and their Locate Service Providers (LSP’s).

The development of a new single property/homeowner web ticket is on track and scheduled for 2021 implementation. This will greatly simplify the homeowner experience and promote

greater homeowner use of the web portal. For work in the public right-of-way, there will be additional information requirements which will help members and LSP’s manage workloads.

A new Professional Locate Administrator Course was developed in 2019 and will start in mid-2020. This is the first step in a multi-level certification program aimed at increasing the quality and consistency of requests submitted by excavators. There will also be continuing education and recertification procedures added as the program rolls out.

The emergence of the COVID-19 pandemic in 2020 presents signif icant challenges to Ontario One Call as well as our members, excavators and stakeholders. Through the diligent work of our staff, we have been able to provide uninterrupted service with all our agents working from home. The financial well-being of the organization is also protected by our assessment-based fee schedule, ensuring that the organization’s revenues will not be affected by decreased excavation volumes.

Sincerely,

Ben Hamilton Executive Director, Ontario One Call

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April 15, 2020

In 2018, Ontario One Call implemented a new assessment-based billing model that replaced the previous notification-based model. There was an increase in revenues from $8.1 million in 2018 to $8.3 million in 2019, as approved by members at the June 2018 AGM. At the June 2019 AGM, members approved 2020 revenues of $8.9 million. As that is a f ixed assessment amount, the organization’s revenues will not be affected by any f luc tuations in excavation volumes as a result of the COVID-19 pandemic.

Expenses in 2019 increased to $9.2 million as compared to $8.4 million in 2018. The increase in expenditures relates mainly to the increased investment in new software platforms, higher IT costs, staffing costs and amortization.

Ontario One Call ’s current assets are $4.0 million, with an additional $2.0 million in property and equipment. The Board has approved a reser ve requirement of $3.0 million in current assets to ensure that the organization has sufficient reserves on hand.

As we move through the COVID-19 pandemic, Ontario One Call will evaluate oppor tunities to reduce costs while s till maintaining service levels. This is to demonstrate respect for member’s financial contributions, as well as to mitigate future fee increase requests.

Sincerely,

Karen Marner Treasurer, Ontario One Call

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The Board approved funding for members to support the financial costs of participating in the ORCGA DIRT reporting system.

Work on the homeowner/single property ticket platform has continued and is currently in the testing phase. We remain on track for a 2021 implementation.

System improvements, such as new icons and mapping tools, were implemented in 2019. This helped improve the quality and clarity of excavator requests.

A new training certification program was developed in 2019, including selection of IT platform vendor and development of content. The training will roll out in mid-2020.

Map Selection Notification (MSN) results continued to improve through enhanced mapping and improved member records.

The Board approved the first five-year financial forecast as part of its regular strategic planning process.

Changed timing of by-law and fee schedule changes to coincide with the June AGM, giving members an earlier estimate of future costs.

Marketing and education strategies have been enhanced, including an increased emphasis on online targeting of individuals searching for excavation topics.

By-laws have been revised to improve mandates of Board committees and lengthen terms of Board members to provide more continuity.

Skill matrix survey results were used to recruit new Board members in areas of need, including legal and board governance expertise.

L A S T Y E A R ’ S A N N U A L R E P O R T E S TA B L I S H E D 1 0 B U S I N E S S P L A N P R I O R I T I E S F O R 2 0 1 9 . O U T C O M E S I N C L U D E :


C O M P L I A N C E S U M M A R Y

Ontario One Call receives complaints from members, excavators and the public. Through our investigations and compliance group, our first priority is to work with parties to reach a prompt resolution. Ontario One Call also refers matters to other regulatory bodies as circumstances merit. Complaints are typically resolved within a matter of days and do not carry over into future years.

Year-Over-Year Comparison of the Total Number of Complaints 2016–2019Overall complaints in 2019 as they relate to the below stakeholders:

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50

100

150

200

250

300

350

JAN FEB MAR APR MAY

NUMBER OF COMPLAINTS

JUN JUL AUG SEP OCT NOV DEC

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Complaints are broken down into stakeholder, offence, and validity groups.

Late locates may consist of multiple members, and/or multiple ticket numbers. In 2019, the total number of tickets involved in late locate complaints was 3993.

M E M B E R S VA L I D T O TA L* I N VA L I D T O TA L* *

Late Locates 1770 9

False Renegotiated Date 29 2

Delinquent Account 13 0

Incomplete Locates 11 1

Emergency Abuse 8 0

Other 4 0

Excavation Without Locates 3 0

Deficient Clearance 3 1

E XC AVAT O R VA L I D T O TA L* I N VA L I D T O TA L* *

Other 2 0

O N 1 C A L L VA L I D T O TA L* I N VA L I D T O TA L* *

Agent Complaint 0 1

F O R M A L L AT E L O C AT E C O M P L A I N T N O T I F I C AT I O N S S E N T B Y S E C T O R

Communications 1341

Gas 1249

Hydro 1041

Municipal & Government 499

Other 5


* A valid complaint is a violation that is non-compliant with the Act, or Schedule 2 of By-Law #2.** An invalid complaint is when a Member was found to be compliant or the complaint was found to be outside the Act, or Schedule 2 of By-Law #2.

Complaints by Geographical Area

As is consistent with previous years, the most frequent complaints relate to late locates. An upward trend continues year over year surrounding late locate complaints.

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Chatham-Essex 10 19 64 57

Grey-Bruce 4 6 14 42

GTA-East 12 68 58 52

Hamilton-Niagara 14 65 195 589

London-St. Thomas 11 12 16 63

ON-Central 31 49 38 62

ON-East 16 50 20 148

ON-North 10 19 30 171

ON-Northwest 5 6 3 3

ON-Southeast 8 11 2 7

ON-West 35 35 90 339

Sarnia 3 7 1 4

Toronto 278 525 593 321

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JAN FEB MAR APR MAY

VALID LATE LOCATES COMPLAINTS

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Ontario One Call includes its annual business plan and five-year strategic plan as part of our Annual Report. This is to allow members, excavators and stakeholders the opportunity to consider both our current performance and future direction in a single document.

M I S S I O N ON1Call’s mission statement reads: “Protecting your community from the loss of service and harm caused by damages to underground infrastructure”

V I S I O N ON1Call’s vision reads: “Members should view us as their premier partner enabling responsible excavation”

F O U N D AT I O N A L A R E A S The future direction envisioned by the Board was then grouped under three foundational areas: • Member Focus & Value • Governance & Accountability • Openness & Transparency

F I V E -Y E A R S T R AT E G I C I M P E R AT I V E S • Reduce damages to buried plant in Ontario • Measure the timely delivery of locates and support members in achieving their objectives • Provide quality service to members and excavators • Increase public awareness of ON1Call’s mandate and the need for safe excavation

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Establish mandatory damage reporting to improve data collection and analysis.

Continue development of new simplified ticket entry platform for homeowners and smaller contractors.

Develop new advanced ticket entry platform for excavations occurring in the public right-of-way.

Improve ticket quality by launching certification training for system users.

Codify policies to help members and excavators understand procedures, such as sharing locates and compliance actions.

Complete Enterprise Risk Management (ERM) review and implement changes to enhance member confidence in our system security.

Support the working groups and outcomes of the 2019 Late Locate Symposium.

Modernize ON1Call’s by-laws.

Review fee schedule and evaluate new incentive-based billing models.

Implement new Board training and Board development sessions.

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M E M B E R F O C U S & VA L U E

G O V E R N A N C E & A C C O U N TA B I L I T Y

O P E N N E S S & T R A N S P A R E N C Y



T O P I C M E T R I C W E I G H T I N G 2 0 1 9 8 0 % 1 0 0 % 1 2 0 %

Reducing Damages

2018 Damages/1,000 Requests (ORCGA) 25% 5.22 5.50 5.00 4.50

Timely Locate Delivery

% of Major Station Codes with “A” Level Delivery 25% 38% 70% 75% 80%

Providing Quality Service

Service Levels (% Calls Answered within 20 seconds)

10% 84% 70% 80% 90%


Turnaround of Suspended Web Tickets 10% 92% 85% in

24 hrs90% in 24 hrs

>95% in24 hrs


Quality Metric for Agent Performance -

% of agent scores > 90% (standard calls) or 100% (emergency)

on QA evaluations

5% 93% 80% 85% 90%

Public Awareness

Public Awareness of ON1Call - Unaided 12.5% 11% 12% 14% 16%

Public Awareness

Public Awareness of ON1Call - Aided 12.5% 43% 43% 45% 47%

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The Late Locate Symposium brought together twenty-five industry leaders representing various stakeholder groups to develop solutions that would positively affect locate delivery times. As a result, five implementable solutions were developed. Stakeholders within the industry should expect to see these strategies starting in 2020.

D E D I C AT E D L O C AT O R

This solution will move major infrastructure projects to a dedicated locator model. This model will allow for more control over projects, improve productivity, reduce downtime, and free up the regular pool of locator resources.

F O R E C A S T I N G

Utilities, Municipalities, and LSPs are to forecast upcoming workloads by collecting and distributing on-going details related to capital projects and major capital work. LSPs are to show calculations outlining resource requirements to the Utilities and Municipalities based on the data.

P R E S S U R E P O I N T S

This solution will develop guidelines on how to share locates with subcontractors, focus on getting Utilities and Municipalities to change their locate validity period to 60 days, and standardize the locate expiry to land on the same date. This will help reduce relocates, duplicate requests, and reduce the strain of managing varying expiration dates.

C O M P L I A N C E A N D E N F O R C E M E N T

Ontario One Call is to look at implementing a potential change to member billing into a performance-based model. This model would reward Utilities and Municipalities that achieve a high level of locate delivery performance and penalize those with poor performance. This solution will also ensure that there is greater communication about the rules, compliance process, and responsibilities of each stakeholder.

D ATA I N , D ATA O U T

To reduce over-notification, and to eliminate other factors affecting LSP productivity, this solution will define the necessary information needed within a locate request. The results are to be incorporated into the curriculum of the Professional Locate Administrator Course (PLAC), being launched through Ontario One Call in 2020.

T H E L AT E L O C AT E S Y M P O S I U M


R I S K R E G I S T R Y

Ontario One Call conducted an Enterprise Risk Management (ERM) study in 2019. Going forward, a risk registry will be reviewed regularly by the Board of Directors and the Risk, Finance & Audit Committee. The risk registry will help the leadership of the organization identify and prioritize projects which will help mitigate risk across the spectrum of IT, human resources, and stakeholder issues.

I N F O R M AT I O N T E C H N O L O G Y

The security, reliability, and performance of our information technology platform is a constant consideration. It is our policy to continually review and adopt newly identified security best practices to ensure the continued reliability and security of our systems. We will report to the Board on these matters through the risk registry.

D I S A S T E R R E C O V E R Y & B A C K U P

Ontario One Call’s operating systems and data are contained in our in-house Data Centre. Critical operating systems and data get backed up every 5 MB or 5 minutes (whichever comes first) to our Sudbury office. Our offices in Guelph and Sudbury are supported by natural gas backup generators which can provide immediate backup power in the case of an electricity failure.

M A R K E T I N G

The 2019 marketing efforts revolved around creating a connection between the Ontario One Call brand and the need to take action. The focus was to capture people while they were in the planning stages of their upcoming outdoor projects and create an understanding that no matter how big or small a project was, people would need to call or click before they dig. An integrated campaign was launched using a combination of TV, radio, in-store retail, contests, social media, news releases, digital media, and partnership marketing to push out our message.

To help establish more consistency, Ontario One Call also launched a Marketing & Education Toolkit on our website, which provided Members and stakeholders marketing materials to help with their overall safety, and “Call or Click Before You Dig” messaging. The Marketing and Education Toolkit is updated regularly and includes infographics, collateral pieces, equipment and vehicle stickers, icons, logos, and other graphics.

By the end of the 2019 campaign, Ontario One Call increased its aided awareness by over 10%. The campaign had over 80 million impressions, and online videos had over 3.5 million views.

M E M B E R & E X C AVAT O R T R A I N I N G

2019 marked another successful year in delivering quality educational initiatives across the province. To educate stakeholders, the Education and Training (E&T) Department worked diligently to organize, present, and/or participate in various industry events, both live and virtually.

The ORCGA Geographic Council meetings continue to provide a great opportunity for Ontario One Call to update and engage excavators. At these events, we presented what was new at Ontario One Call, provided basic excavator safety information, and worked on finding solutions to compliance issues with more than 900 individuals. Ontario One Call also attended key safety days and contactor events in Thunder Bay, Kingston, and Oshawa. These safety day events have proven to be highly successful in helping to reduce damages in those jurisdictions.

The E&T team continues to train individuals and groups on various topics including ALA’s, 360 feedback, using the web portal, and finding solutions to compliance matters. They also provide outreach to engage stakeholders, build bridges, and establish better communication channels. One such initiative was member-requested forecasting meetings. These meetings ran during the fall of 2019 in Hamilton, London, Sudbury, and Ottawa. Members and LSPs were requested to attend with their 2020 work plans. This made it easier for those performing locates to get a head start in planning for their 2020 year.

In 2020, the E&T team will launch the Professional Locate Administrator Course. This course will provide an in-depth

understanding of how to effectively manage locates. The course will teach participants how to plan for projects, make the most accurate locate requests, stay within the regulations, troubleshoot and so much more.

H U M A N R E S O U R C E S

The Human Resources Department spent several months implementing a new HRIS (Human Resources Information System), allowing the company to move employee files from paper to digital format. The paperless system has resulted in cost savings related to paper consumption and storage. With the implementation came a revision and update to many processes, including a fully revamped performance management process for all staff, changes to employee rewards programs, and attendance tracking. Employees can provide updates to their personal information in real time, and HR and management can share information in one convenient location.

One of the challenges facing our current workforce and recruitment efforts is limited access to public transit, with the closest bus stop being over 1.5 kilometres away from the office. In 2019, the Human Resources team led a coalition of local business owners and successfully lobbied City Hall to bring public transit to the newly developed business park where our offices are located. In 2020, the City of Guelph will be extending bus service and adding a stop within 200 metres of our front door.


To the Members of Ontario One Call

O P I N I O N

I have audited the financial statements of Ontario One Call (the Corporation), which comprise the statement of financial position as at December 31, 2019, and the statements of revenue and expenses, net assets and cash flows for the year then ended and notes to the financial statements including a summary of significant accounting policies.

In my opinion, the accompanying financial statements present fairly, in all material respects, the financial position of the Corporation as at December 31, 2019 and the results of its operations and cash flows for the year then ended in accordance with Canadian accounting standards for not-for-profit organizations.

B A S I S F O R O P I N I O N

I conducted my audit in accordance with Canadian generally accepted auditing standards. My responsibilities under those standards are fur ther described in the Auditor ’s Responsibilities for the Audit of the Financial Statements section of my report. I am independent of the Corporation in accordance with the ethical requirements that are relevant to my audit of the financial statements in Canada, and I have fulfilled my other ethical responsibilities in accordance with these requirements. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my opinion.

O T H E R I N F O R M AT I O N

Management is responsible for the other information. The other information comprises the information included in the Annual report, but does not include the financial statements and my auditor’s report thereon.

My opinion on the financial statements does not cover the other information and I do not express any form of assurance conclusion thereon.

In connection with my audit of the financial statements, my responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or my knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work I have performed, I conclude that there is a material misstatement of this other information, I am required to report that fact. I have nothing to report in this regard.

R E S P O N S I B I L I T I E S O F M A N A G E M E N T A N D T H O S E C H A R G E D W I T H G O V E R N A N C E F O R T H E F I N A N C I A L S TAT E M E N T S

Management is responsible for the preparation and fair presentation of the 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.

In preparing the financial statements, management is responsible for assessing the Corporation’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Corporation or to cease operations, or has no realistic alternative but to do so.

Those charged with governance are responsible for overseeing the Corporation’s financial reporting process.


I N D E P E N D E N T A U D I T O R ’ S R E P O R T

2001 Shephard Ave. E., Suite 107 Toronto, Ontario M2J 2Z8

Tel: (416) 225-3523 Fax: (416 225-2426 E-mail: [email protected]

A U D I T O R ’ S R E S P O N S I B I L I T Y F O R T H E A U D I T O F T H E F I N A N C I A L S TAT E M E N T S

My objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes my opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Canadian generally accepted auditing standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with Canadian generally accepted auditing standards, I exercise professional judgment and maintain professional skepticism throughout the audit. I also:

• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for my opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

• Obtain an understanding of internal control relevant to the audit 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 Corporation’s internal control.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

• Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Corporation’s ability to continue as a going concern.

If I conclude that a material uncertainty exists, I am required to draw attention in my auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify my opinion. My conclusions are based on the audit evidence obtained up to the date of my auditor’s report. However, future events or conditions may cause the Corporation to cease to continue as a going concern.

• Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

I communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that I identify during my audit.

Toronto, ON April 16, 2020

Chartered Accountant Professional Corporation Authorized to practise public accounting by the Chartered Professional Accountants of Ontario

I N D E P E N D E N T A U D I T O R ’ S R E P O R T


ON BEHALF OF THE BOARD

ONTARIO ONE CALL Statement of Financial Position December 31, 2019

Director

Director

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ASSETS

CURRENT

Cash $ 1,259,593 $ 2,352,004

Term deposits (Note 3) 1,001,500 1,001,500

Accounts receivable (Note 4) 1,497,743 1,324,593

Prepaid expenses 194,221 159,253

3,953,057 4,837,350

PROPERTY AND EQUIPMENT (Note 5) 2,039,785 2,131,596

$ 5,992,842 $ 6,968,946

LIABILITIES AND NET ASSETS

CURRENT

Accounts payable and accrued liabilities (Note 6) $ 301,164 $ 260,307

Harmonized sales tax payable 61,783 61,719

362,947 322,026

NET ASSETS 5,629,895 6,646,920

$ 5,992,842 $ 6,968,946


ONTARIO ONE CALL Statement of Revenue and Expenses Year Ended December 31, 2019

2 0 1 9 2 0 1 8

REVENUE $ 8,327,009 $ 8,057,126

EXPENSES

Salaries, wages and fees 5,272,857 4,686,169

Mapping expenses 1,008,054 941,690

Advertising and promotion 816,249 795,639

Rent and utilities 575,395 591,870

Amortization 524,824 445,193

IT maintenance and support 269,776 256,143

Office & general expenses 205,623 141,788

Telecommunications 181,259 198,332

Professional fees 129,354 115,098

Employees’ travel and other expenses 94,627 95,104

Consultants 35,696 48,843

Insurance 33,428 29,654

Sponsorships 27,725 25,309

Professional Development 21,984 -

Shows and conferences 21,397 17,968

Bad debt expense - 932

Interest and bank charges (15,231) (5,239)

9,203,017 8,384,493

DEFICIENCY OF REVENUE OVER EXPENSES BEFORE NOTIFICATION AND MEMBER REBATES (876,008) (327,367)

Notification and member rebates 141,017 163,758

DEFICIENCY OF REVENUE OVER EXPENSES $ (1,017,025) $ (491,125)


ONTARIO ONE CALL Statement of Changes in Net Assets Year Ended December 31, 2019

2 0 1 9 2 0 1 8

NET ASSETS - BEGINNING OF YEAR $ 6,646,920 $ 7,138,045

Excess (Deficiency) of revenue over expenses (1,017,025) (491,125)

NET ASSETS - END OF YEAR $ 5,629,895 $ 6,646,920


ONTARIO ONE CALL Statement of Cash Flows Year Ended December 31, 2019

2 0 1 9 2 0 1 8

OPERATING ACTIVITIES

Deficiency of revenue over expenses $ (1,017,025) $ (491,125)

Item not affecting cash:

Amortization of property and equipment 524,824 445,193

(492,201) (45,932)

Changes in non-cash working capital:

Accounts receivable (173,150) (416,367)

Accounts payable and accrued liabilities 40,857 (3,520)

Prepaid expenses (34,968) (9,876)

Harmonized sales tax payable 64 49,999

(167,197) (379,764)

Cash flow provided by operating activities (659,398) (425,696)

INVESTING ACTIVITY

Additions to property and equipment (433,013) (473,621)

DECREASE IN CASH FLOW (1,092,411) (899,317)

Cash - beginning of year 2,352,004 3,251,321

CASH - END OF YEAR $ 1,259,593 $ 2,352,004

ONTARIO ONE CALL Notes to Financial Statements Year Ended December 31, 2019

1 . D E S C R I P T I O N O F O R G A N I Z AT I O N

On August 10, 2011 Ontario One Call (the “Corporation”) was continued as a not-for-profit corporation under the Corporations Act (Ontario). It is not subject to Income Tax. It was originally incorporated on February 22, 1996 under the Business Corporations Act (Ontario). The purpose of the Corporation is to operate contact centres to receive excavator requests for the location of underground infrastructure within Ontario; to identify for excavators whether underground infrastructure is located in the vicinity of a proposed excavation or dig site; to notify a member of the Corporation of proposed excavations or digs that may affect the underground infrastructure of the member; and to raise public awareness of the Corporation and the need for safe digging.

2 . S U M M A R Y O F S I G N I F I C A N T A C C O U N T I N G P O L I C I E S

Basis of Presentation of the Financial Statements

These financial statements have been prepared in accordance with Canadian accounting standards for not-for-profit organizations and are in accordance with Canadian generally accepted accounting principles the most significant of which are summarized as follows:

Revenue Recognition

Revenue for notifications is recognized as Assessment fees are billed monthly to members. Non-notification revenue is recognized as the related services are rendered. Unrestricted investment income is recognized as revenue when earned.

Property and equipment

Property and equipment are stated at cost less accumulated amortization. Property and equipment are amortized over their estimated useful lives at the following rates and methods:

Computer Software 3 and 5 years straight-line method

Computer Equipment 3 and 5 years straight-line method

Furniture and equipment 10 years straight-line method

Leasehold improvements 10 years straight-line method

Financial Instruments

• Measurement of financial Instruments - The Corporation initially measures it s f inancial assets and f inancial liabilities at fair value, except for certain non-arm’s length transactions. The Corporation subsequently measures all its financial assets and financial liabilities at amortized cost.

Financial assets measured at amortized cost include cash, term deposits and accounts receivable.

Financial liabilities measured at amortized cost include accounts payable.

• Impairment - Financial assets measured at cost are tested annually for impairment if there are indicators of impairment. The amount of the write-down is recognized in net income. The previously recognized impairment loss may be reversed to the extent of the improvement, directly or by adjusting the allowance account, provided it is no greater than the amount that would have been reported at the date of the reversal had the impairment not been recognized previously. The amount of the reversal is recognized in net income.

Accounting Estimates

The preparation of financial statements in conformity with Canadian accounting standards for not-for-profit organizations 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 are periodically reviewed and any adjustments necessary are reported in earnings in the period in which they become known. Actual results could dif fer from these estimates. Specifically, these financial statements include management estimates and assumptions relating to the valuation of accounts receivable and the valuation of property and equipment and their useful lives.




2 0 1 9 2 0 1 8

3 . T E R M D E P O S I T S

Guaranteed Investment certificate bearinginterest at 0.5% maturing September 9, 2020 $ 1,001,500 $ 1,001,500

2 0 1 9 2 0 1 8

4 . AC C O U N T S R E C E I VA B L E

Accounts receivable $ 1,497,743 $ 1,324,593

C O S TA C C U M U L AT E D A M O R T I Z AT I O N

2 0 1 9 N E T B O O K VA L U E

2 0 1 8 N E T B O O K VA L U E

5 . P R O P E R T Y A N D E Q U I P M E N T

Computer Software $ 1,222,977 $ 745,877 $ 477,100 $ 341,417

Computer Equipment 858,797 551,715 307,082 409,412

Furniture and equipment 449,078 171,390 277,688 303,864

Leasehold improvements 1,517,033 539,118 977,915 1,076,903

$ 4,047,885 $ 2,008,100 $ 2,039,785 $ 2,131,596

2 0 1 9 2 0 1 8

6 . A C C O U N T S P AYA B L E A N D A C C R U E D L I A B I L I T I E S

Accounts payable and Accrued liabilities $ 132,408 $ 122,035

Member Rebates - Credits in Accounts Receivable 130,014 138,272

WSIB Payable 38,742 -

$ 301,164 $ 260,307


These transactions are in the normal course of operations and are measured at the exchange amount, which is the amount of consideration established and agreed to by the related parties. The standard payment terms on Accounts receivable are net 30 days.

Economic Dependence

These three members were the source of 40% of the total fee revenue generated by the Corporation in 2019 (2018 - 36%).

2 0 1 9 2 0 1 8

7. R E L AT E D P A R T I E S

Director-member

Fee revenue $ 1,348,165 $ 1,138,490

Accounts Receivable 253,891 $ 214,145

Director-member

Fee revenue $ 1,487,467 $ 1,278,323

Accounts Receivable $ 270,937 $ 161,400

Director-member

Fee revenue $ 503,076 $ 490,059

Accounts Receivable $ 132,810 $ 54,949




8 . C A P I TA L D I S C L O S U R E S

The Corporation’s objectives when managing capital are to safeguard cash and its ability to continue to provide services and benefits for its members.

Capital at the Corporation is comprised of net assets. In order to maintain or adjust its capital structure, the Corporation may obtain additional funding from its members.

The Corporation is not subject to any externally imposed capital requirements.

9 . F I N A N C I A L R I S K M A N A G E M E N T A N D F I N A N C I A L I N S T R U M E N T S

Credit Risk

Credit risk represents the f inancial loss that the Corporation would experience if a counterpar t y to a f inancial instrument failed to meet it s obligations. The Corporation’s credit risk is primarily attributable to its accounts receivable. The Corporation has established various internal controls designed to mitigate credit risk such as account monitoring procedures.

Liquidity risk

Liquidity risk is the risk that the Corporation will be unable to fulfill its obligations on a timely basis or at reasonable cost. Management manages liquidity risk by monitoring its operating requirements and preparing budgets to ensure it has sufficient funds to fulfill its obligations.

Market risk

Market risk is the risk that the value of a financial instrument will fluctuate as a result of changes in market prices whether those changes are caused by factors specific to the individual security or its issuer or factors affecting all securities traded in the market. Management has at tempted to control the effects of market risk by maintaining a conservative investment por t folio 100% invested in GIC’s and high interest savings accounts.

Interest and Currency Risks

It is management ’s opinion that the Corporation is not exposed to significant interest or currency risks arising from these financial instruments.

There has been no change to the extent of exposure to the above risks from 2018.

1 0 . C O N T I N G E N T L I A B I L I T I E S

a) On August 16, 2018, a utilities company, as Plaintiff, filed a statement of claim against a number of Defendants. On October 15, 2018, Ontario One Call and a number of others were named as third party defendants. The Plaintiff alleges that during the course of excavation, the Defendants’ mechanical equipment struck and damaged a gas main or service, which required the Plaintiff to attend at the site for repair. The claim for damages is $100,000 which includes contribution and indemnity from Ontario One Call on behalf of any of the defendants in the main action being found liable. Ontario One Call is seeking to have this claim discontinued against it by explaining that it is not liable but will defend the action if necessary.

b) On November 28, 2018, various companies and entities, as Plaintiffs, filed a statement of claim against Ontario One Call and a number of other Defendants. The Plaintiffs allege that during construction at the plaza where the businesses operated, damage was done to a water-main, which separated and caused significant damage and loss to the Plaintif fs’ businesses. The claim for damages is $700,000 plus costs. Ontario One Call is seeking to have this claim discontinued against it by explaining that it is not liable but will defend the action if necessary.

c) On January 4, 2019, a municipal government, as Plaintiff, filed a statement of claim against a number of Defendants. Ontario One Call was named as a third party defendant to this claim. The Plaintif f alleges that a buried sewer main was damaged as a result of construction activities by the defendants. The claim for damages is $200,000 which includes contribution and indemnity from Ontario One Call on behalf of any of the defendants in the main action found liable. Ontario One Call is seeking to have this claim discontinued against it by explaining that it is not liable but has filed a notice of intent to defend on the Plaintiff.


d) On August 22, 2019, an individual, as Plaintif f, filed a statement of claim against Ontario One Call and a number of other Defendants. The Plaintiff alleges that contractors and/or subcontractors carrying on utility work on behalf of one of the defendants damaged a sewer line leading to the Plaintiff’s property causing a sewer backup. As a result of the backup, the property and contents therein sustained significant damage. The claim for damages is $22,259.39 plus costs. Ontario One Call is seeking to have this claim discontinued against it by explaining that it is not liable but will defend the action if necessary.

e) On August 30, 2019, various companies, as Plaintif fs, f iled a notice of ac tion against Ontario One Call and a number of other Defendants. The Plaintif fs allege that named contractors and subcontractors acting on behalf of a defendant drilled directly into the sanitary force main pipeline connecting the plaintiffs’ premises to the local sanitary sewer system causing a back-up and flooding of sewage water and other waste material into their premises. Another defendant while filling in the area previously excavated by drilling obstructed the previously damaged main causing a second backup. The claim for damages is $1,000,000 plus costs. Ontario One Call is seeking to have this claim discontinued against it by explaining that it is not liable but will defend the action if necessary.

f) On September 20, 2019, a company, as Plaintiff, filed a statement of claim against a number of Defendants. On November 12, 2019, Ontario One Call was named as a third party defendant. The Plaintiff alleges that the Defendant damaged a telecommunication cable and related equipment during the course of excavation. The claim for damages is $25,000 which includes contribution and indemnity with respect to amounts Defendants in the main action may owe to the Plaintiff. Ontario One Call is seeking to have this claim discontinued against it by explaining that it is not liable but will defend the action if necessary.

In management’s opinion these claims are without merit and no provision has been recognized in the financial statements as the possible outcomes are not determinable.

1 1 . L E A S E C O M M I T M E N T S

The Corporation leases premises under two long term leases expiring June 30, 2025 and December 31, 2026. Future minimum lease payments exclusive of harmonized sales tax and operating charges are as follows:

1 2 . S U B S E Q U E N T E V E N T S

The global economy has significantly changed between December 31, 2019 and the date of approval of these financial statements. The spread of COVID-19, declared as a pandemic, and the measures enacted by governments worldwide including travel bans, quarantine periods and social distancing have affected economies and financial markets around the world resulting in an economic slowdown. To date, the Corporation, which receives its income from pre-determined assessments to it s members, has seen no disruption to it s revenue and operations even as it s employees have, for the most par t shif ted to working remotely from home.

At the year- end the Corpor at ion had net as set s of $5.630 million. It has been deemed an essential service by the Ontario government and therefore, is permitted to continue full operations. The duration and impact of the COVID-19 outbreak on the Corporation is unknown at this time and it is not possible to reliably estimate the length and severity of these developments as well as the impact on the financial results and condition of the Corporation in future periods.

2020 $ 297,080

2021 297,080

2022 310,445

2023 318,040

2024 318,040

Thereafter 349,418

$ 1,890,103


OntarioOneCall.ca I 1-800-400-2255

Documents

2019 - 2020 ONTARIO ONE CALL · 2020-06-17 · April 15, 2020 In 2018, Ontario One Call implemented a new assessment-based billing model that replaced the previous notification-based