ACES Annual Report 2012

A T L A N T I C C A N A D AE L E C T R O N I C S S T E W A R D S H I P

A N N U A L R E P O R T 2 0 1 2

F I N D I N G N E W C H A N N E L S F O R O L D E L E C T R O N I C S

Atlantic Canada Electronics Stewardship

A L L A B O U T A C E SIn 2007, Atlantic Canada Electronics Stewardship (ACES) was established to deliver an industry-led electronics stewardship program for each jurisdiction within Atlantic Canada where legislation exists. ACES represents brand owners, manufacturers, retailers and other stakeholders who are committed to collecting and recycling electronic waste in an environmentally responsible manner.

In August of this year, ACES transitioned into Electronic Products Recycling Association (EPRA), the national not-for-profit entity established to harmonize the operation and management of electronics stewardship programs across Canada.

ACES now operates as part of this national organization, but our mission remains the same: to enable businesses and consumers to recycle their electronic products responsibly and support industry stewards to achieve regulatory compliance.

M E A S U R I N G U P F O R S U C C E S SOVER THE PAST F IVE YE ARS, MORE THAN 17,000 METRIC TONNES OF ELECTRONICWASTE HAS BEEN DIVERTED FROM LOCAL L ANDFILLS IN NOVA SCOTIA AND PRINCE EDWARD ISL AND.

Under the Nova Scotia Solid Waste

Resource Management Regulations, and

the Prince Edward Island Materials Recycling

Regulations, brand owners are required to

participate in an approved stewardship

program plan that provides for the responsible

recycling of regulated electronics. The ACES

program allows businesses to fulfill their

environmental obligations in compliance

with the regulations of Nova Scotia and

Prince Edward Island. As of June 30, 2012,

more than 550 businesses were registered

with ACES.

Annual Report 2012

2012 HIGHLIGHTS

2 0 1 2H I G H L I G H T S

How do you measure success? At ACES, we start by looking at the numbers.

In 2012, our numbers really measure up.

S A T I S F Y I N G R E S U L T S In 2012, public opinion surveys revealed that 92 per cent of Nova Scotians and 95 per cent of Prince Edward Islanders were satisfied with the service they received during their last visit to an ACES drop-off centre. Knowing that consumers are satisfied with the service we provide is, in turn, very satisfying to us.

T O N N E S O F S U C C E S S We processed more electronics this year than ever before. Drop-off centres recorded 5,339 tonnes of materials collected for recycling. Nova Scotia saw an increase of 9 per cent for a total of 4,734 tonnes, and Prince Edward Island marked an increase of 11.6 per cent, totaling 605 tonnes. That’s equal to 492 tractor-trailer loads of electronic waste diverted from our landfills this past year. What’s more, we achieved these numbers while reducing operating costs.

S w E E T h A R M O N Y To help encourage growth and harmonization of services across the provinces, ACES now operates as a part of Electronic Products Recycling Association (EPRA), a national, not-for-profit entity governing the operations and management of electronics stewardship programs across the country. This evolution will foster efficiencies and opportunities for the services ACES offers in Nova Scotia, Prince Edward Island and soon, we hope, all of Atlantic Canada.

P O w E R I NN U M B E R S

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W I T H C H A N G E C O M E S O P P O R T U N I T Y :

M E S S A G E F R O M T H E E X E C U T I V E D I R E C T O RSince the program’s beginning in 2008, ACES has been making great strides. Every year, we have grown. Every year, we have learned something new.

2012 marked impressive numbers for us at ACES. Record volumes of electronics were returned to be recycled – more than 5,300 tonnes! Surveys revealed high awareness of the importance of recycling end-of-life electronics, and positive satisfaction rates among visitors to our drop-off centres. I’m extremely pleased with the year’s success.

Of course, it’s what these numbers really mean that matters most. The record amount of electronics collected at our drop-off centres means less end-of-life electronics and potentially hazardous material going into our landfills, resulting in a cleaner, safer environment for everyone living in Nova Scotia and Prince Edward Island.

Strong satisfaction rates and awareness results assure us that we are engaging and connecting with more people. Our program is working. This knowledge is inspiring and encouraging as we look toward the future. We have our eye on Newfoundland and Labrador, and New Brunswick, with hopes to expand into those provinces in the very near future. According to research, the demand and need for our service is there. The environmental and economic benefits are clear. We are eager to work with every province in the region to bring our service to their residents.

What I am most excited to report is the new national model – Electronic Products Recycling Association – of which we are now proud to be a part. Instead of multiple provincial electronic product stewardship programs being governed independently, the majority of them now fall neatly under one national entity: EPRA.

This shift is not change for change’s sake. It’s a change that just makes sense, and the benefits are many – consistent standards and policies, along with more efficient, cost-effective and sustainable operations. Just as we recycle end-of-life electronics into new products, we are reshaping our system into a unified electronics product stewardship program throughout Canada. The whole is indeed greater than the sum of its parts.

Under this new national entity, I anticipate great opportunities for more regional cooperation and the sharing of ideas. I also look forward to exciting projects in 2013 that will continue to educate and engage the public.

I am truly excited for the road ahead. And I am proud to share that journey with the great people around me, from our regional and national partners to the managers and operators on the ground at our drop-off centres. I thank you all for your contribution to ACES’ success.

The electronics we recycle may be at the end of their life, but clearly ACES is just getting started.

Gerard MacLellan Executive Director

Annual Report 2012

U M B R E L L A T H I N K I N G :

B E C O M I N G A P A R T O F E P R AOn August 1, 2012, ACES transitioned into Electronic Products

Recycling Association (EPRA), the national not-for-profit entity established

to harmonize the operation and management of electronics stewardship

programs across Canada. In partnership with our stewards and service

providers, we are well on our way to ensuring a seamless transition to EPRA.

This transition benefits both stewards and consumers by strengthening our ability to deliver best practices. Standardized, effective policies and processes will increase efficiencies, reduce administrative costs and improve service quality.

What does this change mean for stewards? A streamlined, simplified administrative process. Under the EPRA model, stewards will benefit from leveraging best practices to provide better, more efficient services. It also means consistent communication, to minimize duplicate messaging to stewards, as well as lower unit costs for shared services due to distribution across more programs.

What does it mean for the public? Assurance that their local electronics recycling service – now a more efficient, sustainable program – will leverage best practices coast to coast, and be around for the long term.

Although we have a new governing national organization, the ACES experience for consumers in Nova Scotia and Prince Edward Island will remain as accessible and satisfying as always. Day-to-day management of the ACES program and access to drop-off centres will remain unchanged. Daily operations will continue to be run out of Atlantic Canada, so jobs will not be impacted. In fact, we expect employment to grow!

We look forward to operating as a part of EPRA, with a renewed and strengthened focus on providing environmentally-sound and socially-responsible management practices for end-of-life electronic products in Atlantic Canada.

S U S T A I N A B L E L O C A L I N V E S T M E N T S S INCE L AUNCHING IN 2008, THE ACES PROGRAM HAS INVESTED MORE THAN $19 MILL ION IN NOVA SCOTIA AND PRINCE EDWARD ISL AND.

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K N O W L E D G E I S P O W E R :

P U B L I C A W A R E N E S S A N D E D U C A T I O N

In 2012, ACES conducted public opinion surveys in Nova Scotia and Prince

Edward Island to gauge our success.

We asked people if they were aware of electronics recycling and its environmental significance, and we asked them if they knew about ACES.

Results indicate that our message is getting out there with 98 per cent of Nova Scotians and 94 per cent of Prince Edward Islanders aware that old and unwanted electronic products must be recycled. In addition, 79 per cent of Nova Scotians and 69 per cent of Islanders know about ACES – who we are and the service we provide.

These numbers are positive indicators that our work is paying off. It’s simple, really: knowledge is power. The more people know how important it is to responsibly dispose of old electronics, and how to do so, the more successful our program will be.

C O M M U N I T I E S I N T h E K N O w 98 PER CENT OF NOVA SCOTIANS AND 94 PER CENT OF PRINCE EDWARD ISL ANDERS KNOW THAT END-OF-L IFE ELECTRONIC PRODUCTS MUST BE RECYCLED.

Annual Report 2012

N O V A S C O T I A *

*N.S. Results from The Atlantic Quarterly® - Spring 2012

**P.E.I. Results from MQO Omnibus Survey - Summer 2012

Prior to today, have you heard of

the province-wide recycling program,

called Atlantic Canada Electronics

Stewardship, or ACES, which offers

drop-off centres for electronic

products recycling?

Prior to today, were you aware that old

or unwanted electronic products, such as

televisions, computers, stereos, or VCRs

cannot be disposed of in your regular

garbage, and instead must be recycled?

OMNIBUS SURVEY RESULTS

2 0 1 2 O M N I B U S S U R V E Y R E S U L T S

In the next 12 months, how likely, if at all,

would you be to drop off unwanted or old

electronics at an ACES drop-off centre

for recycling?

In the next 12 months, how likely, if at all,

would you be to donate unwanted or old

electronics to charity or similar organizations

for reuse?

In the next 12 months, how likely, if at

all, would you be to give unwanted or old

electronics to friends or family members

for reuse?

In the next 12 months, how likely, if at

all, would you be to sell unwanted or

old electronics?

P R I N C E E D W A R D I S L A N D * *

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Respondents who indicated

they had visted a drop-off

centre to recycle old electronics

in the last 12 months were then

asked the following question:

Were you completely satisfied,

mostly satisfied, mostly

dissatisfied, or completely

dissatisfied with the service

you received at the ACES

drop-off centre?

N O V A S C O T I A P R I N C E E D W A R D I S L A N D

N.S. Results from The Atlantic Quarterly® - Spring 2012 P.E.I. Results from MQO Omnibus Survey - Summer 2012

2 0 1 2 O M N I B U S S U R V E Y R E S U L T S

Percentage of respondents who indicated they had the following electronics in their household that do not currently work, or are no longer being used.

N O V A S C O T I A P R I N C E E D W A R D I S L A N D

N.S. Results from The Atlantic Quarterly® - Spring 2012 P.E.I. Results from MQO Omnibus Survey - Summer 2012

WEBSITE VISITS + HOTLINE CALLS

Annual Report 2012

P.E.I. Results from MQO Omnibus Survey - Summer 2012

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

w E B S I T EV I S I T S5 9 , 6 0 9

Number of new website visits and hotline calls remained steady in 2012

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$

C O L L E C T I O N O P E R A T I O N A LI N D I C A T O R S .

Measures related to the weight of regulated electronics collected bythe program for recycling.

Total waste electronicequipment collected

Total collected –provinces combined

A C C E S S A C C E S S I B I L I T YI N D I C A T O R S .

Measures related to theconvenience of accessing theprogram to have regulatedelectronics recycled.

Collection sitecoverage and events Total drop-of f centres

% of the population within30 km of a drop-of f centre

Percentage of population aware of program

Participating manufacturers, retailers and other industry

stewards – provincescombined

Public awareness andindustry participation

Total program costs Total program costs per tonne

Operational costs per tonne –provinces combined

Total overhead costs per tonne

Total collection events

A w A R E N E S S P U B L I C A W A R E N E S SA N D I N D U S T R YP A R T I C I P A T I O NI N D I C A T O R S .

Measures related to the public’s awareness of the program, and the direct participation of obligated industry stewards in the program for environmental compliance.

Measures related to the overall costs of delivering the program, including collection, consolidation, transportation, audits, processing, administration, communications, management and professional fees.

C O S T F I N A N C I A LI N D I C A T O R S .

5,339 4.88K G / C A P I T AT O N N E S

P E R T O N N E

97%3

43

78% 559

$1,337$1,028

$309

Total collected per capita – provinces combined

This scorecard, assembled by EPRA, lists the harmonized Key Performance Indicators (KPI) which each of the regulated, industry-led electronics stewardship programs operating in 2011 in Canada have committed to report on, as per “Research and Recommendations for Performance Measures For Regulated, Industry-Led, End-of-Life Electronics Recycling Programs in Canada” (Intergroup Consultants Ltd., April 2010).

A C E S 2 0 1 2 K E Y P E R F O R M A N C E I N D I C A T O R SNova Scotia and Prince Edward Island – Combined Results

Annual Report 2012

KEY PERFORMANCE INDICATORS

$



Total waste electronicequipment collected Total collected






Participating manufacturers, retailers and other industry stewards



Operational costs per tonne







4,734 4.99K G / C A P I T AT O N N E S

P E R T O N N E

96.8%2

37

79% 523

$1,315$1,032

$283

Total collected per capita


A C E S 2 0 1 2 K E Y P E R F O R M A N C E I N D I C A T O R SNova Scotia

10


$



Total waste electronicequipment collected Total collected






Participating manufacturers, retailers and other industry stewards



Operational costs per tonne







605 4.14K G / C A P I T AT O N N E S

P E R T O N N E

99.6%1

6

69% 198

$1,503$992

$511

Total collected per capita


A C E S 2 0 1 2 K E Y P E R F O R M A N C E I N D I C A T O R SPrince Edward Island

INDEPENDENT AUDITOR’S REPORT

Annual Report 2012

I N D E P E N D E N T A U D I T O R ’ S R E P O R TTo the Members of the Atlantic Canada Electronics Stewardship Association

We have audited the accompanying financial statements of the Atlantic Canada Electronics Stewardship Association, which comprise the statement of financial position as at June 30, 2012, the statements of operations, changes in net assets and cash flows for the year then ended, and a summary of significant accounting policies and other explanatory information.

M A N A G E M E N T ’ S R E S P O N S I B I L I T Y F O R T h E F I N A N C I A L S T A T E M E N T S Management is responsible for the preparation and fair presentation of these financial statements in accordance with Canadian generally accepted accounting principles, 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.

A U d I T O R ’ S R E S P O N S I B I L I T Y Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with Canadian generally accepted auditing standards. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Society’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 Society’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.

O P I N I O N In our opinion, the financial statements present fairly, in all material respects, the financial position of the Atlantic Canada Electronics Stewardship Association as at June 30, 2012, and the results of its operations, changes in net assets and cash flows for the year then ended in accordance with Canadian generally accepted accounting principles.

O T h E R M A T T E R Our audit was conducted for the purpose of forming an opinion on the financial statements taken as a whole. The schedule included on page 21 is presented for purposes of additional information and is not a required part of the financial statements. The allocation of expenses between programs has not been subject to audit procedures and is therefore “unaudited” and accordingly, we express no opinion thereon.

Truro, Nova Scotia November 29, 2012 Chartered Accountants

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2012 2012 2011 Budget Actual Actual (unaudited)

Revenue $7,944,850 $8,192,760 $7,825,247

ExpensesProgram delivery expenses

Collection 856,750 866,592 813,142 Recycling

Supplies 70,300 73,375 66,159 Warehousing 50,000 14,613 46,196Processing 4,191,750 3,787,263 3,946,099 Transportation 604,780 675,593 616,530P.E.I. program operator fees 50,000 50,000 50,000

Processor audits 73,315 58,981 18,076 Environmental handling fee compliance 100,000 84,681 83,588Communication 410,000 256,633 250,194

6,406,895 5,867,731 5,889,984

Administrative expensesAdministrative expenses 1,044,250 951,440 911,477Depreciation 26,500 23,885 22,384 Write down of tangible capital assets – 141,945 –Interest and bank charges 3,000 4,320 5,139Program development 200,000 145,544 106,000

1,273,750 1,267,134 1,045,000

E&E fund for R&D Inititatives 180,000 691 7,424

7,860,645 7,135,556 6,942,408

Excess of revenue over expenses $ 84,205 $1,057,204 $ 882,839

See accompanying notes to the f inancial statements

S T A T E M E N T O F O P E R A T I O N S Year ended June 30

STATEMENT OF CHANGES IN NET ASSETS

Annual Report 2012

2012 2012 2011 Budget Actual Actual (unaudited)

Revenue $7,944,850 $8,192,760 $7,825,247

ExpensesProgram delivery expenses

Collection 856,750 866,592 813,142 Recycling

Supplies 70,300 73,375 66,159 Warehousing 50,000 14,613 46,196Processing 4,191,750 3,787,263 3,946,099 Transportation 604,780 675,593 616,530P.E.I. program operator fees 50,000 50,000 50,000

Processor audits 73,315 58,981 18,076 Environmental handling fee compliance 100,000 84,681 83,588Communication 410,000 256,633 250,194

6,406,895 5,867,731 5,889,984

Administrative expensesAdministrative expenses 1,044,250 951,440 911,477Depreciation 26,500 23,885 22,384 Write down of tangible capital assets – 141,945 –Interest and bank charges 3,000 4,320 5,139Program development 200,000 145,544 106,000

1,273,750 1,267,134 1,045,000

E&E fund for R&D Inititatives 180,000 691 7,424

7,860,645 7,135,556 6,942,408

Excess of revenue over expenses $ 84,205 $1,057,204 $ 882,839


Restricted Ef fectiveness Operating & Ef f iciencies contingency Fund for Investments in 2012 2011 Unrestricted reserve R&D initiatives capital assets Total Total

Balance, beginning of year $ – $1,994,744 $ 469,817 $ 146,951 $2,611,512 $1,728,673 Surplus of revenue over expenses 1,223,725 – (691) (165,830) 1,057,204 882,839 Interfund transfers

Tangible capital assets (18,879) – – 18,879 – – Ef fectiveness & Ef f iciencies Fund (180,000) – 180,000 – – – Operating contingency reserve (1,024,846) 1,024,846 – – – –

Balance, end of year $ – $3,019,590 $ 649,126 $ – $3,668,716 $2,611,512


S T A T E M E N T O F C H A N G E S I N N E T A S S E T S Year ended June 30, 2012

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2012 2011

Assets Current Cash and cash equivalents $3,651,677 $2,536,960 Receivables 890,777 933,171 Prepaids 2,963 14,963

4,545,417 3,485,094 Tangible capital assets (Note 4) – 146,951

$4,545,417 $3,632,045

LiabilitesCurrent Payables and accruals $ 876,701 $1,020,533

Net assetsInvestment in tangible capital assets – 146,951 E&E Fund for R&D Initiatives (Note 5) 649,126 469,817Operating contingency reserve (Note 6) 3,019,590 1,994,744

3,668,716 2,611,512

$4,545,417 $3,632,045

Commitment (Note 7) Subsequent event (Note 8)


S T A T E M E N T O F F I N A N C I A L P O S I T I O N June 30

Nick AubryDirector, EPRA Board

Lynda KitamuraChief Financial Off icer

On Behalf of the Board

STATEMENT OF CASH FLOWS

Annual Report 2012

2012 2011

Assets Current Cash and cash equivalents $3,651,677 $2,536,960 Receivables 890,777 933,171 Prepaids 2,963 14,963

4,545,417 3,485,094 Tangible capital assets (Note 4) – 146,951

$4,545,417 $3,632,045

LiabilitesCurrent Payables and accruals $ 876,701 $1,020,533

Net assetsInvestment in tangible capital assets – 146,951 E&E Fund for R&D Initiatives (Note 5) 649,126 469,817Operating contingency reserve (Note 6) 3,019,590 1,994,744

3,668,716 2,611,512

$4,545,417 $3,632,045

Commitment (Note 7) Subsequent event (Note 8)


2012 2011

Increase in cash and cash equivalents

Operating Surplus of revenue over expenses $1,057,204 $ 882,839

Depreciation 165,830 22,384

1,223,034 905,223

Change in non-cash operating working capital Receivables 42,394 (61,709)Prepaids 12,000 (12,224)Payables and accruals (143,832) 239,386

1,133,596 1,070,676

Financing Loan payable – (90,098)

Investing Purchase of tangible capital assets (18,879) (16,691)

Net increase in cash and cash equivalents 1,114,717 963,887

Cash and cash equivalents, beginning of year 2,536,960 1,573,073

Cash and cash equivalents, end of year $3,651,677 $2,536,960


S T A T E M E N T O F C A S H F L O W S Year ended June 30

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N O T E S T O T H E F I N A N C I A L S T A T E M E N T SJune 30, 2012

1. Nature of operationsIn November 2007, Electronics Product Stewardship Canada (EPSC) and the Retail Council of Canada (RCC) established the Atlantic Canada Electronics Stewardship (ACES) Association to deliver an industry-led Electronic Stewardship Program in Nova Scotia and Prince Edward Island.

ACES is a not-for-profit association registered in Nova Scotia under the Societies Act. It represents brand owners, manufacturers, retailers and other stakeholders who are committed to collecting and recycling electronic waste in an environmentally responsible manner.

2. Summary of significant accounting policiesB A S I S O F P R E S E N T A T I O NThese financial statements have been prepared in accordance with generally accepted accounting principles as outlined in the Canadian Institute of Chartered Accountants (CICA) Handbook. The CICA has issued accounting standards that are specifically applicable to not-for-profit organizations under Part III of the CICA Handbook which are applicable for fiscal years beginning on or after January 1, 2012. The Association also has the option of adopting International Financial Reporting Standards. Adoption of either set of standards is required no later than the Association’s June 30, 2013 fiscal year.

U S E O F E S T I M A T E S The preparation of the financial statements in conformity with Canadian generally accepted accounting principles requires the Association’s management to make estimates and assumptions that affect the amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and reported amounts of revenue and expenditures during the year. Certain of these estimates require subjective or complex judgements by management that may be uncertain. Some of these items include allowance for doubtful accounts, accruals for processing end-of-life electronic products and estimated environmental handling fee receivables. Actual results could differ from those reported.

R E V E N U E R E C O G N I T I O N The Association follows the deferral method of accounting for revenue. Revenue is recognized when received or receivable if the amount to be received can be reasonably estimated and collection is reasonably assured.

T A N G I B L E C A P I T A L A S S E T S The investment in capital assets fund reports the assets, liabilities, revenue and expenses related to the Association’s capital assets.

Rates and bases of depreciation applied to write-off the cost of equipment over their estimated lives are as follows:

Field and office equipment 20%, straight-line Containers 100%, straight-line Computer hardware and software 33 1/3%, straight-line

During the year there was a write down of $141,945 to the Tangible Capital assets based on management’s best estimate of net realizable value. This resulted in a nil net book value at June 30, 2012.

NOTES TO THE FINANCIAL STATEMENTS

Annual Report 2012

2. Summary of significant accounting policies (continued)C A S h A N d C A S h E Q U I V A L E N T SCash and cash equivalents include cash on hand and balances with banks. Bank and other borrowings are considered to be financing activities.

I N C O M E T A x E SThe Association is a not-for-profit association, which is exempt from income taxes under Section 149(1)(l) of the Canadian Income Tax Act.

3. Financial InstrumentsThe Association’s financial instruments include cash and cash equivalents, receivables, and payables and accruals. Unless otherwise noted, it is management’s opinion that the Association is not exposed to significant market interest, currency or credit risks arising from financial instruments and the fair market value of these financial instruments are at least equal to their carrying values.

Financial instruments classified as financial assets and financial liabilities held for trading are recorded at fair market value at each balance sheet date and any change in fair value is recognized in income in the period in which the change occurs.

All financial instruments are initially measured at fair value and subsequently, according to the following measurement methods.

Financial instruments Classification Subsequent measurements

Cash and cash equivalents Held for trading Fair value Receivables Loans and receivables Amortized cost Payables and accruals Other liabilites Amortized cost


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3. Financial instruments (continued)C R E d I T R I S KThe Association is exposed to credit risk that arises from the quality of its registrants. Credit risks arise from the possibility that the registrants of the Association will be unable to fulfil their obligations. The Association’s registrants are numerous and diverse, which reduces the concentration of the credit risk. Management closely evaluates the collectibility of its receivables and records appropriate allowances for doubtful accounts when necessary.

M A R K E T R I S K The Association is exposed to financial risk that arises from fluctuations in the sale of electronic products within the Province of Nova Scotia. This risk is minimized by corresponding decreases in program delivery expenses and through the regulation implemented by the Nova Scotia Department of Environment and Labour.

4. Tangible capital assets 2012 2011 Accumulated Net Net Cost Depreciation Book Value Book Value

Field equipment $ 2,413 $ 2,413 $ – $ 607 Containers 191,725 191,725 – 139,337 Off ice equipment 1,776 1,776 – 1,233 Computer hardware and software 11,150 11,150 – 5,774

$ 207,064 $ 207,064 $ – $ 146,951

5. Effectiveness & Efficiency Fund (E&E)An Effectiveness & Efficiency Fund has been established and internally restricted by the Board of Directors to promote best practices for the collection, transportation and processing of end-of-life electronics and ensure overall continual reduction in the environmental impact of the Association’s program. Up to 5% of the environmental handling fees collected by the Association are to be transferred to the fund annually.


NOTES TO THE FINANCIAL STATEMENTS

Annual Report 2012

2012 2011 Accumulated Net Net Cost Depreciation Book Value Book Value

Field equipment $ 2,413 $ 2,413 $ – $ 607 Containers 191,725 191,725 – 139,337 Off ice equipment 1,776 1,776 – 1,233 Computer hardware and software 11,150 11,150 – 5,774

$ 207,064 $ 207,064 $ – $ 146,951

6. Operating Contingency Reserve (OCR)The Board of Directors established an Operating Contingency Reserve (OCR) to ensure stable program operations through variable economic conditions. The Fund will accumulate the equivalent of two years of projected operating costs.

7. CommitmentThe Association has extended its management services contract with its service provider until November 30, 2012, and is currently renegotiating a new multiyear contract. The management fees are material and are subject to annual change as negotiated between the Association and its service provider.

8. Subsequent eventEffective August 1, 2012, the Association was wound up into the Electronic Products Recycling Association (EPRA). The EPRA has been established to harmonize the operation and management of electronics stewardship programs across Canada.

9. Comparative FiguresCertain of the 2011 comparative figures have been reclassified to conform to the financial statement presentation adopted for 2012.


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N.S. Program P.E.I. Program Total

Revenue $7,198,779 $ 993,983 $8,192,760

Expenses Program delivery expenses Collection 789,945 76,647 866,592 Recycling

Supplies 70,954 2,421 73,375 Warehousing 14,613 – 14,613 Processing 3,367,039 420,224 3,787,263 Transportation 624,646 50,949 675,593 P.E.I. program operator fee – 50,000 50,000 Processor audits 51,290 7,691 58,981 Environmental handling fee compliance 84,681 – 84,681 Communication 172,630 84,004 256,633

5,175,798 691,936 5,867,731

Administrative expenses Administrative expenses 753,705 197,736 951,440 Depreciation 22,525 1,360 23,885 Write down of tangible capital assets 141,945 – 141,945 Interest and bank charges 3,756 563 4,320

921,931 199,659 1,121,590

6,097,729 891,595 6,989,321

$1, 101,050 $ 102,388 $1,203,439

Program development 145,544 E&E fund for R&D Initiatives 691Excess of revenue over expenses $1,057,204

S C H E D U L E O F O P E R A T I O N S Year ended June 30, 2012(Unaudited)

A C E S 2 0 1 1 - 2 0 1 2

B O A R D O F D I R E C T O R Sd A V I d B O I S Home Hardware Stores Limited, Board Chair

E d d I E C O L A C C h I O Sharp Electronics of Canada, Secretary Treasurer

C h A N T A L E M A N T h A Toshiba of Canada Limited

M I K E M E R C I E R Canadian Tire Corp.

C h R I S T A C O P E L A N d Best Buy Canada Ltd.

N I C K A U B R Y Sony of Canada Ltd.

P E T E R M A d d O C K Panasonic Canada Inc.

O B S E R V E R S :

J I M C O R M I E R (RCC)

S h E L A G h K E R R (EPSC)

Annual Report 2012

N.S. Program P.E.I. Program Total

Revenue $7,198,779 $ 993,983 $8,192,760

Expenses Program delivery expenses Collection 789,945 76,647 866,592 Recycling

Supplies 70,954 2,421 73,375 Warehousing 14,613 – 14,613 Processing 3,367,039 420,224 3,787,263 Transportation 624,646 50,949 675,593 P.E.I. program operator fee – 50,000 50,000 Processor audits 51,290 7,691 58,981 Environmental handling fee compliance 84,681 – 84,681 Communication 172,630 84,004 256,633

5,175,798 691,936 5,867,731

Administrative expenses Administrative expenses 753,705 197,736 951,440 Depreciation 22,525 1,360 23,885 Write down of tangible capital assets 141,945 – 141,945 Interest and bank charges 3,756 563 4,320

921,931 199,659 1,121,590

6,097,729 891,595 6,989,321

$1, 101,050 $ 102,388 $1,203,439

Program development 145,544 E&E fund for R&D Initiatives 691Excess of revenue over expenses $1,057,204

O B S E R V E R S :

J I M C O R M I E R (RCC)

S h E L A G h K E R R (EPSC)

New Brunswick

Nova Scotia

Brockton

New London

Murray River

Charlottetown

Dingwells Mills

Wellington Centre

Milo

Brae

Alma

York

Uigg

Iona

Iris

Duvar

Derby

Tryon

Clyde

Union

Eldon Lewes

Marie

DoverAbney

Upton

Burton

Hebron

Howlan

Alaska

Harper

Enmore

Norway

Conway

Wilmot

Borden

Baltic

Albany

Kelvin

Newton Tyrone

Bungay

Pownal

Donagh

Auburn

VernonOrwell

Surrey

Fodhla

Valley

Peakes

Dundee

Windon

Morell

Bangor

Wilmot

Albion

Dundas

Ashton

Souris

Baltic

Elmira

Milburn

O'Leary

Coleman

Roxbury

DeBlois

Huntley

Harmony

Portage

Tignish

NorthamBayside

Chelton

Bedeque

Darnley

Margate

Kinkora

Norboro

Clinton

Crapaud

HamptonDeSable

St. Ann

Bonshaw

Emyvale

Elmwood

Dunedin

Cymbria

Winsloe

Keppoch

Kinlock

Bunbury

Suffolk

Glenroy

Pinette

Belfast

Clarkin

Pisquid

Dromore

Glencoe

Canavoy

Douglas

KinrossLyndale

48 Road

Bristol

Kilmuir

Midgell

Milburn

Newport

Selkirk

DunblaneGlenwood

Brockton

Carleton

Elmsdale

Lauretta

Leoville

Woodvale

Montrose

Alberton

St. Roch

Richmond

Freeland

Bideford

Fernwood

Hamilton

Carleton

Clermont

Malpeque

Freetown

Sea View

Shamrock

Victoria

Stanchel

Elliotts

Millvale

Colville

Kingston

Loyalist

Ebenezer

Cornwall

Fairview

Brackley

Sherwood

Stanhope

Covehead

Parkdale

RosebankTea Hill

Millcove

Tracadie

Tarantum

Millview

Allisary

Garfield

Melville

Avondale

Culloden

Bellevue

Brooklyn

Riverton

Dingwell

Cardross

Montague

Cardigan

Alliston

Primrose

SturgeonPembroke

Howe Bay

Naufrage

Big Pond

Chepstow

Bayfield

Bothwell

West Cape

Glengarry

Knutsford

Roseville

Piusville

Woodstock

Waterford

St. Louis

Mill RoadCascumpec

Nail Pond

Inverness

Ascension

St. Felix

Ellerslie

Arlington

Port Hill

Low Point

Miscouche

Middleton

Irishtown

Lady Fane

Maplewood

Granville

Springton

Brookvale

Cavendish

Riverdale

Green Bay

New HavenChurchill

Greenvale

Hampshire

Highfield

Southport

Stratford

Alexandra

Waterside

Roseberry

Watervale

Hermitage

Grandview

New Perth

Caledonia

Hopefield

Greenwich

BrudenellRobertson

Roseneath

Whim Road

High Bank

Cambridge

Annandale

EglingtonRed House

Gowanbrae

Greenvale

Fairfield

Kingsboro

Lakeville

Cape Wolfe

West Point

Haliburton

Locke Road

Forestview

Miminegash

Bloomfield

St. Edward

Kelly Road

West Devon

Egmont Bay

Peterville

St. Philip

St. Hubert

Greenmount

Wellington

Springhill

Birch Hill

Linkletter

Hog Island

Summerside

Sherbrooke

Searletown

Kensington

Burlington

Long River

New London

Appin Road

Hazelgrove

Hartsville

Green Road

Darlington

Canoe Cove

New Argyle

Brookfield

Long Creek

Springvale

Rice Point

Harrington

York Point

Cumberland

Union Road

Crossroads

Marshfield

Corran Ban

Donaldston

Frenchfort

Hazelbrook

Point Prim

Glenfinnan

Birch Hill

Scotchfort

Afton Road

Flat River

Seal River

Maple Hill

Ocean View

Elliotvale

St. Teresa

Greenfield

Union Road

Glenmartin

Martinvale

Corraville

St. Peters

Strathcona

Bridgetown

Seal River

Georgetown

Farmington

Mount Hope

Gaspereaux

Monticello

New Acadia

Bear River

Rock Barra

Basin Head

Munns Road

North LakeEast Point

Campbellton

Mount Royal

St. Anthony

Maximeville

Beaton Road

Palmer Road

Cape Egmont

Dock Corner

St. Timothy

Urbainville

St. Gilbert

St. RaphaelMuddy Creek

Days Corner

Murray Road

Judes Point

Seacow Pond

Tyne Valley

Slemon Park

Ross Corner

Mill Valley

North Tryon

Park Corner

Summerfield

Springfield

Lower Tryon

Springbrook

Breadalbane

Rose Valley

Glen Valley

Fredericton

New Glasgow

Clyde River

North River

Meadow Bank

Rocky Point

Little York

Rams Island

Earnscliffe

China Point

St. Andrews

Orwell Cove

Belle River

Cherry Hill

Peakes Road

Byrnes Road

Summerville

Valleyfield

Morell East

Leards Mill

Heatherdale

Glenwilliam

Church Road

Southampton

Glenfanning

White Sands

Peters Road

Forest Hill

Five Houses

Burnt Point

Goose River

St. Georges

St. Charles

Little Pond

Bay Fortune

Clearspring

New Zealand

Hermanville

New Harmony

Priest Pond

East Baltic

St. Lawrence

Brae Harbour

Fortune Cove

Higgins Road

Mount Carmel

North Enmore

Foxley River

Union Corner

Poplar Grove

St. Nicholas

St. Eleanors Reads Corner

Indian River

Maple Plains

Grahams Road

French River

Founds Mills

WestmorelandKellys Cross

Green Gables

St. Patricks

Argyle Shore

Crosbys Mill

Hunter River

Rennies Road

New Dominion

North Milton

West Royalty

Dalvay Beach

Dunstaffnage

Pisquid West

Vernon River

Wood Islands

Mount Vernon

Baldwin Road

Lorne Valley

Little Sands

Murray River

Albion Cross

Poplar Point

DeGros Marsh

Souris River

Pleasant View

Skinners Pond

Victoria West

Tignish Shore

Anglo Tignish

Kildare Capes

East BidefordLennox Island

Holman Island

Lower Bedeque

North Bedeque

Wilmot Valley

Lower Darnley

Cape Traverse

Albany Corner

Spring Valley

Strathgartney

North Rustico

Poplar Island

Winsloe North

West Covehead

Covehead Road

Mount Herbert

Tenmile House

Cherry Valley

Mount Mellick

Fort Augustus

Point Deroche

Lower Newtown

Vernon Bridge

Mount Stewart

Newtown Cross

Fanning Brook

Douglas Brook

Green Meadows

Pooles Corner

Guernsey Cove

St. Margarets

Glencorradale

Abrams Village

Oultons Island

Tignish Corner

Mount Pleasant

McNeills MillsLower Malpeque

Lower Hamilton

North Carleton

Lower Freetown

Augustine Cove

South Freetown

Gambles Corner South MelvilleSt. Catherines

Wheatley River

East Wiltshire

Brackley Beach

Brackley Point

Stanhope Beach

Pleasant Grove

Cameron Island

Grand Tracadie

Bedford Corner

Blooming Point

Mount Buchanan

French Village

Savage Harbour

Alberry Plains

Victoria Cross

St. Marys Road

Milltown Cross

Cardigan North

Lower Montague

Murray Islands

Panmure Island

St. CatherinesLittle Harbour

Campbells Cove

Mill River East

St. Chrysostome

Central Kildare

Travellers Rest

BORDEN-CARLETON

Central Bedeque

Carleton Siding

South Granville

North Wiltshire

Nine Mile Creek

Bedford StationWebsters Corner

West St. Peters

Cable Head West

Cable Head East

Woodville Mills

Dingwells Mills

Launching Place

Springfield West

Black Banks Cove

Emerald Junction

Robinsons Island

St Peters Island

Royalty Junction

Governors Island

St. Patrick Road

Head of Montague

Head of Cardigan

Commercial Cross

Cardigan Station

Souris Line RoadHarmony Junction

Bloomfield Corner

Christopher Cross

Wellington Centre

Port Hill Station

Oyster Bed Bridge

Hillsborough Park

Wellington Station

St. Peters Harbour

Head of Hillsborough

Murray Harbour North

105

1

3

102

6

114

4

215

19

101

3482

224

111

374

203

16

340

12

845

127

630

2

16

2

1

1

1

3

8

10

2

105

1

16

2

2

2

2

2

195

10

8116

104

11

112

880

126

385

126

11

2

11

105

0 2010

Inset Scale (Kilometres)

Nova Scotia ACES Drop-off Centres

Prince Edward Island ACES Drop-off Centres

A C E S D R O P - O F F C E N T R E SIn f iscal 2011-2012, the ACES network expanded to include 43 drop-off centres. This year, 97 per cent of Nova Scotians and Prince Edward Islanders were within 30 km of their local drop-off centre.

Provincial Overview

22

A T L A N T I C C A N A D AE L E C T R O N I C S S T E W A R D S H I P

Suite 44, 201 Brownlow Avenue Dar tmouth, Nova Scot ia B3B 1W2

Phone: 1-877-774-3260 Emai l: info@eprassociat ion.ca

w w w.acestewardship.ca/annualrepor t2012

Documents

ACES Annual Report 2012