Livestock Financial Protection Board 2014/15 Annual Report

Table of Contents


Chair's Messages

August 5, 2015

The Honourable Jeff Leal
Minister, Agriculture, Food and Rural Affairs
77 Grenville St.11th Floor,
Toronto, Ontario M7A 1B3

Dear Minister,

On March 16, 2015 Robert Branders term as a long time serving chair of the Board expired. I was appointed and I look forward to the challenge of guiding the Board over the next years.

Pursuant to section 6(1) of the Farm Products Payment Act, I am pleased to submit a report describing the work of the Livestock Financial Protection Board for the year ending March 31, 2015, for tabling in the Legislature. This report has been prepared in compliance with the Agencies & Appointments Directive.

As a Board, we continue to focus on administering the Fund for Livestock Producers; adjudicating claims; granting or refusing the payment of all claims and recovering any money to which the Board is entitled. As Fund administrator, one of our goals is to ensure long-term sustainability of the Fund. Once again the Fund's investment strategy performed well and helped the Fund maintain both a healthy and stable funding ratio. In December 2014, industry stakeholders, because of record high cattle prices, wrote a letter to the ministry requesting that the check-off fee be increased from 5 cents per head to 10 cents per head. The Board supports this request and will be engaging an actuary to determine the appropriate check-off to keep the Fund actuarially sound.

  • The following are some highlights for the 2014/15 fiscal:
  • The Fund remained actuarially sound with a balance of $7.37 million ($2.87 million above the actuarial target of $4.5 million)
  • Investment income of $254,063
  • Rate of return on investment of 3.46 %
  • Debt recovery rate decreased slightly to 34.35% from 34.91 % in 2014

In the 2014/15 fiscal the Board received 3 claims for compensation from livestock sellers as a result of the failure of one livestock dealer. The payout for these claims was $164,451.82. The Board was able to adjudicate the claim in a timely manner: it took 35 days to reach a decision; 25 days less than the stated goal to process the claim.

Respectfully submitted,

Larry Witzel

Chair, Livestock Financial Protection Board

1. Overview/Mandate

The Ontario Beef Cattle Financial Protection Program (Program) was established in 1982 and provides compensation to sellers 1 in the event that a buyer (packing plant operators, abattoir operators, auction market operators, country dealers and cooperatives) defaults on a payment.

The Program has two components: the annual licensing of dealers under the Livestock and Livestock Products Act (LLPA) and the administration of the compensation fund established under the Farm Products Payment Act (FPPA).

The Ministry of Agriculture, Food and Rural Affairs is responsible for the licensing of dealers. The Livestock Financial Protection Board's (Board) primary role is to administer the fund for livestock producers (Fund). The Board is established under the authority of section 3 of O. Reg. 560/93 - Fund for Livestock Producers, made under the FPPA. It is also classified as a Board-Governed Provincial Agency (Trust) under the Agencies & Appointments Directive (AAD). Trust Agencies administer funds and/or other assets for beneficiaries named under statute.

The functions of the Board are outlined in section 4(1) of the FPPA as follows:

  1. to administer its Funds;
  2. to investigate all claims made to it under the FPPA and to determine the extent of their validity;
  3. to grant or refuse the payment of all claims or any part thereof and determine the amounts and manner of payment; and
  4. to recover any money to which it is entitled under the FPPA by suit in a court of competent jurisdiction or otherwise

There are 197 licensed dealers and approximately 19,000 beef farmers (including milk producers who market veal calves, bulls, and culled dairy cattle for slaughter purposes) subject to the FPPA and the LLPA


(1) Sellers include both producers and licensed dealers. Dealers licensed under the Livestock and Livestock Products Act who sell livestock are designated as producers for the purposes of clause (d) of the definition of "producer" in section 1 of the Act, but the designation is only in respect of sales of livestock by the dealers to: (a) other dealers licensed under the Livestock and Livestock Products Act; or (b) other producers.

(2) The buyer could also be a producer, where the claimant is a licensed dealer.

The Fund for Livestock Producers

All money to which the Board is entitled is paid into the Fund. Contribution to the Fund is based on a fixed rate per head of livestock in a transaction. Under O. Reg. 321/11, a fee of five cents per head sold is payable to the Board, unless the sale is on consignment, in which case the five cent fee is owed by each of the consignee and consignor.

Fees are remitted by the buying dealer on behalf of the producer when the sale is made directly by a producer, by the selling dealer when the sale is by a dealer, and by the consignee on behalf of the consignor and on their own behalf, where the sale is on consignment. Fees are payable on or before the 15th day of the month following the month of sale unless less than 1,000 head are sold or purchased annually, in which case the fee is payable annually.

The Fund is used to:

  1. Provide compensation to qualified sellers in the event that certain buyers default on payment.
  2. Offset the cost of determining financial responsibility of dealers as part of the licensing component of the Program.
  3. Pay Board expenses (other than for the remuneration of those of its employees who are public servants employed under Part 111 of the Public Service of Ontario Act, 2006). (3)
  4. Pay for professional, technical or other assistance to or on behalf of the Board.

A claim may be made if a seller hasn't been paid according to the timelines in the regulations, if the buyer has ceased operation, or if the buyer's assets have been placed in the hands of a receiver or trustee. O. Regulation 560/93 lays out discretionary grounds under which a claim may be denied. Examples of grounds for refusing payment include the claimant extending credit to the buyer; the Director under the LLPA not being notified promptly where payment was not received on time, and the claim not being submitted on time.


(3) Legal and investigative support are currently provided and paid for by the ministry. The ministry also covers Board members' remuneration (per diem, meal and travel).

The Program provides:

Protection for Producers:

If the Board decides that a claim from a producer made in respect of a dealer is valid, the Board pays 95 % of the portion of the claim that it recognizes as valid.

Protection for Licensed Dealers:

Where an approved claim relates to a licensed dealer selling to a producer or feeder cattle finance co-operative who defaults on payment, compensation is 85 % of the portion of the claim that the Board recognizes as valid, up to a maximum of $125,000. In these cases, there is no compensation for claims of less than $5,000. Where an approved claim relates to a licensed dealer selling to another licensed dealer, the Board pays 95% of the portion of the claim that it recognizes as valid..

2. Board appointments

Section 4(1) of O. Reg. 560/93 requires that the Board be composed of at least five members consisting of one member each from Beef Farmers of Ontario (BFO), Canadian Meat Council (CMC) and the operators of community sales under the Livestock Community Sales Act, together with such other members as the Minister considers advisable.

The regulation also requires the Minister to appoint a Chair and a Vice Chair from among its members. The Board operates at arm's length from the Government but is accountable to the Government in exercising its mandate. The members of the Board are appointed by the Minister. These individuals, in addition to administering the Fund, draw upon their expertise in the livestock industry in hearing and adjudicating cases before them. The Board may also call upon technical experts and professionals to provide assistance.

As at March 31, 2015, there were six Board members which included a Chair and Vice Chair. The CMC position has been vacant since 2008, and while the Board has been in contact with the CMC with regard to having a member appointed, to date the CMC has not submitted any candidates.

The table below shows the names of appointees for fiscal 2014/15 and the term of their appointments.

Name Organization Date Appointed Expiry Date
Mr. Larry Witzel, Chair Ontario Livestock Auction Markets Association April 17, 2007 April 17, 2018
Vacant Ontario Independent Meat Packers    
Mr. Paul Sharpe Beef Farmers of Ontario November 30, 2007 November 30, 2016
Mr. Kevin McArthur Ontario Livestock Dealers Association July 18, 2011 July 18, 2017
Vacant Canadian Meat Council    
Mr. Murray Allen Dairy Industry September 5, 2008 September 5, 2017
Ms. Jennifer Haley Veal Industry October 6, 2008 October 5, 2016

Five members of the Board constitute a quorum for transacting the Board's business. The Board is made up of industry representatives from a wide range of livestock industry sectors. This broad industry knowledge is important in understanding the clientele and the claim files..

Board Staff and Key Activities

In the 2012/13 fiscal year the Ministry undertook a competitive procurement process to secure a delivery agent to provide the:

  • Ministry with assistance in administering the licensing component of the Ontario Beef Cattle Financial Protection Program; and
  • Board with fund investment, administrative and secretariat support.

Beef Cattle Financial Protection Program Inc. (BCFPPI) was ultimately the successful proponent. The tripartite contract entered into between the Ministry, the Board and BCFPPI is for a three year term. BCFPPI is a not-for profit corporation governed by a Board of Directors. The Board of BCFPPI has representatives from the Beef Farmers of Ontario, Ontario Livestock Dealers Association, and Ontario Livestock Auction Markets Association.

BCFPPI acts as the Board's administrator and is responsible for assisting the Board in preparing its annual report, business plan and other documentation required for compliance with the Memorandum of Understanding (MOU) and the Agencies & Appointments Directive. The Board has delegated day to day management of the Fund to BCFPPI. This includes receiving and depositing check-off fees; preparing monthly, quarterly and annual financial statements, preparing documentation for annual audits and investment of the Fund. The Fund is invested according to guidelines set out in the MOU.

The Board continues its arrangement for the provision of secretariat support. A third party contract for the provision of adjudication support expired. The Board is reviewing options for the provision of adjudication support including procuring it as part of the RFP for a new delivery agent that expires in December. Adjudication support includes but is not limited to:

  • Overseeing the effective processing of claims and scheduling meetings to consider claims;
  • Preparing documentation relating to the adjudication of cases; and
  • Scheduling hearings and drafting decision letters as directed by the Board.

Legal counsel:

The Ministry of the Attorney General provides legal services to the Board. The lawyer assigned to the Board provides the Board with advice, opinions, and other legal assistance in judicial reviews, claim adjudication and recovering monies owed to the Board, and also contributes to the continuing education of Board members.

Investigator:

The Ministry of Agriculture, Food and Rural Affairs Regulatory Compliance Unit provided investigative support. There were 3 claims involving one dealer in the 2014/15 fiscal.

3. Description of activities over the year

The Board activities are geared towards fulfilling its mandate. The Board has two types of meetings: regular meetings and adjudicatory meetings and hearings.

  • Regular meetings are held to do training, approve the business plan, annual report, and year-end financial statements and for general Fund administration. These are held annually.
  • Adjudicatory meeting and hearings are held to consider applications for payments from the Fund. These are ad hoc and depend on whether or not there is a claim on the Fund.

There were two Board meetings in the 2014/15 fiscal year and one Conference Call meeting. Claims were considered at all the meetings held. Additionally, one hearing was held and the business plan, annual report and audited financial statements were approved.

Fund Management/Administration:

The Board is responsible for the overall governance of the Fund. The primary purpose of the Fund is to compensate sellers in the event of a default by a buyer. The Board's main objective when managing investment capital is to safeguard its ability to remain as a going concern so that it can continue to deliver financial protection to livestock sellers. As such, the Board's investment policy focuses on ensuring security, liquidity and maximization of investment income. In addition, there are restrictions in place so that only authorized investments are undertaken (the Fund can only be invested in instruments permitted by the MOU).

In order to ensure liquidity and manage interest rate risk, the Fund's investments mature at various points in time. Currently the Fund is invested in short, medium and long term fixed interest income type securities, including a long term first mortgage and short and medium term fixed term GIC's ranging between 12 to 24 month terms. This is within the Boards approved policy of 40% short and medium term and 60 % long term investments. The Board's responsibility as Fund administrator includes:

  • establishing or approving all policies as required;
  • approving payments from the Fund;
  • reviewing, adopting and monitoring the strategic planning process
  • approving the annual audited financial statements of the Fund;
  • reviewing and approving the Board's operating budget;
  • ensuring policies and processes are in place for the identification of risks and reviewing and approving risk management strategies; and
  • ensuring that an actuarial review of the Fund is conducted when required.

As part of its ongoing efforts to ensure the solvency of the Fund, the MOU requires the Board to undertake an actuarial review, at any time, in order to ensure the actuarial soundness of the Funds. The Board had an actuarial study completed in June 2010 by Ernst & Young. The conclusion of the review was that the Fund is in a strong financial position and that a Fund balance of approximately $4.5M would cover net claims with 99% confidence.

In December 2014, industry stakeholders, because of record high cattle prices, wrote a letter to the ministry requesting that the check-off fee be increased from 5 cents per head to 10 cents per head. The Board supports this request and will be engaging an actuary to determine the appropriate check-off to keep the Fund actuarially sound

Claims Investigation and Adjudication:

The process begins when the seller files a claim with the Board or indicates an intention to file a claim. Once a complaint is received an application form is sent to the seller. Once the claim application is received it is investigated by the Regulatory Compliance Unit in the Food Safety and Traceability Programs Branch. When the investigation is completed an investigative report is given to the Board. The Board conducts an in-depth analysis, which may involve legal services, and either makes a final decision or offers an opportunity for the parties to make submissions or attend a hearing before making its final decision.

If the Board offers an opportunity for a hearing, and a hearing is requested by one of the parties, a Notice of Hearing is mailed to the parties stating the time, date and location of the hearing. The Board works to adjudicate cases within 60 days of receiving the file from the investigators. Where a hearing is held, it may take longer to make a decision. After the claims adjudication process is completed, the Board sends a decision letter to the claimants and buyer.

Appendix 1 shows the history of claims to the Fund up to March 31, 2015.

Recovery of Money Owed:

The Board, through legal counsel and the Administrator, work to recover money owed to the Board. Since inception, the Board has paid out $10,160,810 and has recovered $3,546,324 for a 34.35% recovery rate. At the end of last fiscal year the Board's recovery rate was 34.91 %; a small decline of .56 % (See Appendix 2 for recovery history). As per the MOU, in 2010/11 a recovery policy was developed and is currently in force. The recovery policy states that the Board will make every reasonable attempt to recover monies that is owed to the Board. Its objectives are to utilize both Ministry and external legal staff in recovering as much outstanding debt as is reasonably achievable using a variety of tools and options. There is currently one active debt recovery file. It is not known at this time what yield, if any, that file will produce.

4. Analysis of Operational and Financial Performance

The Board administers the compensation Fund established under the FPPA. Should a licensed dealer or producer default, the Board adjudicates any claim(s) and determines the payment (if any) to be made from the Fund.

A total of 3 claims were received by the Board in 2014/15 fiscal. The detail of the claims adjudicated is as follows:

  • Two (2) claims were paid in full totaling $164,451.82
  • One (1) claim was denied in the amount of $19,443.94

The Board took an average of 30 days from when the investigative reports were received to make a decision on the claims. This was twenty -five days less than the goal set in the business plan. The Board benefited from work done in 2009/10 to streamline the claims adjudication process. For the 2014/2015 year, the average number of days to adjudicate a claim was 30 days.

The balance of the fund at the beginning of the fiscal year was $7,347,625.86 and at the end of fiscal 2014/15 it was $7,367,550.20. These three claims had no significant impact on the fund.

Fund Performance and Investment Strategy:

The Board's main objective when managing investment capital is to safeguard its ability to remain as a going concern so that it can continue to deliver financial protection to qualified livestock sellers. Investment income is one important source of revenue for the Fund.

The investment strategy flows from the investment guidelines set out in the MOU, which includes some investments allowed under repealed provisions of the Trustee Act. It is further guided by Board's policy which requires 60% in long term investments and 40% in short and medium term investments. When short or medium term investments mature, research is done on the variety of rates available from 30 day to 2 year term investments. If it appears that interest rates are generally rising then a shorter maturity date would be chosen to take advantage of potentially higher rates at maturity. If rates appear to be falling then a longer maturity would be selected.

Over the last seven years, the ability to invest in a high security first mortgage at 5% produced returns in excess of $55,000 more per year than any other options available on the market that the Board can invest in under its guidelines.

The Fund's asset mix is made up of:

Cash, short and medium term investments:

The Fund's short and medium term investments are: one GIC issued by a domestic financial institution that matures on February 2016 that earns 1.56% per annum and one medium term GIC issued by a domestic financial institution that matures on February 2017 that earns 1.41 % annually.

Cash, short and medium term investment holdings at year end were $3,320,904.24 (45.4 % of total investments, which is compliant with Board policy which allows for 40% short and medium term and 60% long term.

Long term investment:

The Fund's long term investment consist of real estate in the form of a $4 million first mortgage on development lands in the city of Kitchener bearing interest at 5% payable semiannually. The $4 million is approximately 55.00% of the Fund's total investment. Since 2004, when the Board made its initial investment in real estate, the portfolio has generated an average annual return of 4.06%. The year prior the portfolio's yield was 3.22%. This represents an increase of $55,000 per year during a low interest environment.

The Board's strategic investment mix was instrumental in minimizing the impact of the economic downturn on its investments. The Board considers its investment in real estate to be a relatively safe investment that has generated great returns with little to no risk. Diversification among different assets, such as the mortgage, is the Board's key strategy to reduce risk.

Board revenues:
Intereste Income on Investments:

Interest income on these investments totaled $254,063 for 2014/15. In 2013/14 investment income was $245,792 and in 2012/13 it was $244,642. The small increase between 2014/15, 2013/14 and 2012/13 was due primarily to a small increase in total fund investment, caused by a decrease in claim payouts, and a small increase in short term rates.

Contributions:

The amount of money flowing into the Fund from check-off fees was $110,083, compared to $112,524 in 2013/14; a decrease of $2,441.

Board expenses:

The Board is authorized to use the producer fund to:

  • Pay valid claims (which are recoverable from the defaulter);
  • Offset the cost of determining financial responsibility (one component of licensing); (4)
  • Pay Board expenses; and
  • Pay for professional, technical or other assistance to or on behalf of the board.

Total Board administration expense (excluding claims payment) in 2014/15 was $179,771 (this was $3,879 under budget primarily due to fewer claims and less administrative support needed). The total includes the costs incurred in the determination of financial responsibility of livestock dealers and other Board administration support.

Financial position:

As at March 31, 2015, the Fund balance stood at $7,367,550. This is an increase of $ 19,924 from March 31, 2014. See Appendix 3: audited financial statements.

The table below shows the budget to actual and the variance for 2012/13 fiscal, 2013/14 fiscal and the 2014/15 fiscal.

Budget 2012/13
Actual 2012/2013
Variance 2012/13
Budget 2013/14
Actual 2013/14
Variance 2013/14
Opening Equity   $7,311,130     $6,876,848  
Fees $116,000 $106,069 -$ 9,931. $106,000 $112,524 $ 6,524
Interest $245,000 $244,642 -$ 358. $250,000 $245,792 -$ 4,208
Recoveries $561,000 $561,382 $ 382. $35,000 $291,809 $256,809
Cliams paid $0 $1,218,609 $1,218,609 $250,000 $ 883. -$249,117
Admin Expenses $133,528 $127,766 -$ 5,762. $183,650 $178,464 -$ 5,186
Closing Equity   $6,876,848     $7,347,626  

 

 
Budget 2014/15
Actual 2014/15
Variance 2014/15
Opening Equity   $7,347,626  
Fees $106,000 $110,084 $4,084
Interest $250,000 $254,063 $4,063
Recoveries $35,000 $0 -$35,000
Cliams paid $250,000 $164,452 - $85,548
Admin Expenses $183,650 $179,771 -$3,879
Closing Equity   $7,367,550  

 


(4) Under the financial protection program, all dealers must be licensed annually, with licensing dependent upon a positive assessment of financial responsibility by the program administration. Section 7(2) of the FPPA allows the Board to use the Fund to pay the whole or any part of the costs incurred in determining financial responsibility.

5. Discussion of performance targets

In its 2014-2017 Business Plan the Board identified key priorities for action. What follows is a brief summary of key accomplishments regarding each of these priorities in the 2014/15 fiscal year. The table below shows the targets achieved/not achieved and actions to be taken.

Goal: Protecting the long term viability of the Fund for Livestock Producers

Performance Measure

Baseline
09/10

Target
14/15
Targets achieved/not achieved and action to be taken
The Fund remains actuarially sound with a balance of $5.8M as recommended by the 2010 actuarial study. 5.8 M
5.8 M
Achieved fund balance at $7.3 million
Actuarial study completed at least once every five years to assess, the long term financial sustainability of the Fund in relation to the contribution and payout rates July 2010
July 2015
The Board will be engaging an actuary in the next fiscal to complete an actuarial review of the Fund
Unqualified audit opinion from the annual audit Achieved
Ongoing
Achieved
Review investment policy annually to ensure that investment targets are met (e.g. return on investment) and take actions as necessary ROI of 3.97 %
ROI of 4.05 %
Not achieved - rate of return on investment of 3.46%
Debt collection (recoveries) policy drafted and implemented (monitor debt recovery rate)  
Debt recovery rate of 30%
Achieved Debt recovery rate of 34.35%
Budget is approved by May 31st as part of the business planning process May 31st
May 2014
Achieved
Quarterly Financial Reports completed and submitted to OMAFRA within 15 days of the end of the quarter Achieved
Quarterly
Achieved
All payments from the Fund are in 100% compliance with the FPPA ( monitoring to ensure compliance with section 5(2); 5(5) and 7(2)) Payments Compliant with FPPA   Achieved Board Fund used to pay board expenses and valid claims

 

Goal: Strengthening Board governance and accountability

Performance Measure

Baseline
09/10

Target
14/15
Targets achieved/not achieved and action to be taken
Investment activities in compliance with MOU and applicable legislation/ directives Compliant
Ongoing
Achieved
Annual Report submitted 120 days of the agency's fiscal year-end 120 days (July annually) 120 days Not achieved - Submitted August 2015 (time auditors report finalized). The AAD, became effective February 2015, now requires these plans to be submitted 90 days after the Auditors report.
Business Plan submitted by March 31st March 31/10 Mar 31/14

Submitted to the Ministry April 2014 - under the AAD business plans must be submitted three months prior to the start of the fiscal year end

Submit Quarterly Risk Assessment Report to OMAFRA Achieved Ongoing Achieved
Submit Quarterly Financial Statements to OMAFRA within 15 days of the quarter end Achieved Ongoing Achieved

 

Goal: Ensuring that there is an adjudication process in place that is simple, fair, and accessible, with minimal delays

Performance Measure

Baseline
09/10

Target
14/15
Targets achieved/not achieved and action to be taken
Number of days from receipt of report completed by investigators until the Board makes and issues its decision 60 (Actual 300 target not achieved)
60
Decisions rendered on average in 35 days. The target was achieved.
Decisions rendered on average in 30 days. Refer to FPPA and consult with legal counsel Refer to regulation and consult with legal counsel Achieved - The board adjudicated three claims and worked with legal counsel to ensure compliance with FPPA
Number of cases filed for judicial review that ruled against the Board's decision 0 0

Achieved

Board at quorum 5 or more members appointed 5 or more members appointed Achieved - board at quorum

 

Appendix 1: History of Claims up to March 31, 2015

2013
Year
# of Claims Received
# of Claims Paid
Amount Claimed
Amount Paid
1982
11
4
72,039.50
5,357.90
1983
12
5
377,713.20
135,476.30
1984
4
1
645.90
581.30
1985
23
11
287,441.00
258,696.90
1986
3
0
9,475.30
-
1987
142
15
1,813,633.50
1,391,326.00
1988
126
77
833,111.20
567,861.20
1989
8
5
66,882.60
46,715.50
1990
31
23
1,352,067.60
1,183,260.60
1991
2
0
9,810.80
-
1992
1
0
7,500.00
-
1993
1
0
-
-
1994
28
20
825,975.30
742,852.70
1995
2
1
12,110.70
10,899.60
1996
34
34
193,869.80
174,482.80
1997
2
0
17,852.50
-
1998
7
6
165,370.60
138,723.50
1999
1
1
11,384.60
7,969.20
2000
48
47
2,203,876.00
1,977,548.00
2001
142
125
995,275.60
807,618.80
2002
0
0
-
-
2003
17
8
3,782,026.70
210,319.00
2004
40
19
337,875.50
296,894.40
2005
10
6
211,152.40
70,842.90
2006
0
0
-
-
2007
0
0
-
-
2008
0
0
-
-
2009
18
1
703,100.80
18,727.90
2010
1
0
654,105.50
-
2011
38
22
2,230,621.71
549,251.11
2012
264
172
$1,535,925.68
$ 285,911.94
2013
61
61
$1,225,030.94
$ 1,218,609.00
2014
1
1
$883.62
$883.62
2015
3
2
$192,596.12
$164,451.82
Total
1,117
712
20,229,354.67
$10,325,262.49
Recovered
n/a
n/a
n/a
$3,546,324.23
Net Paid Out
n/a
n/a
n/a
$6,778,938.26
Fund Balance
n/a
n/a
n/a
$7,367,550.20

 

Apendix 2: History of Claims Recovered

Year
Claims Recovered
Prior to 1998
$ 1,135,254
1998
3,302
1999
0
2000
435
2001
385,000
2002
0
2003
39,760
2004
78,977
2005
119,950
2006
0
2007
350,000
2008
0
2009
0
2010
31,044
2011
332,869
2012
216,541
2013
561,382
2014
291,809
2015
0
Total Recovered
$ 3,546,324

Appendix 3: Audited financial statements

Fund for Livestock Producers

Management's Responsibility for Financial Reporting

The accompanying financial statements and the financial information in the annual report have been prepared by management. The financial statements have been prepared in accordance with Canadian public sector accounting standards. Management is responsible for the accuracy, integrity, and objectivity of the information contained in the financial statement s . Financial information contained elsewhere in the annual report is consistent with that contained in the financial statements.

In discharging its responsibility for the integrity and fairness of the financial statements, management maintains financial and management control systems and practices designed to provide reasonable assurance that transactions are authorized, assets are safeguarded, and proper records are maintained. The systems include formal policies and procedures and an organizational structure that provides for appropriate delegation of authority and segregation of responsibilities.

The Board of Directors is responsible for ensuring that management fulfills its responsibilities for financial reporting and internal control. The Board meets regularly to oversee the financial activities of the Agency and annually reviews the financial statements.

The financial statements have been examined independently by the Office of the Auditor General on behalf of the Legislature and the Board of Directors. The independent Auditor's Report outlines the scope of the Auditor's examination and opinion on the financial statements of the Fund.

 
March 31, 2015
March 31, 2014
Assets ($)
Current
Cash
520,904
255,734
Short-term investments
1,285,201
1,780,761
 
1,806,105
2,036,495
Long Term ($)
Long Term investments
5,561,445
5,311,131
Total Assets
7,367,550
7,347,626
Fund Balance
7,367,550
7,347,626

On behalf of the board:

Origainl signed by Larry Witzel, Chair

Fund for Livestock Producers

Statements of Operations and Fund Balance For the Year Ended March 31, 2015
 
2015
2014
Revenue ($)
Fees from producers
110,083
112,525
Interest income
265,063
245,782
Claims recoveries
0
291,809
Total Revenue
364,146
650,126
Expenses ($)
Administrative expenses
179,770
178,464
Claims Paid
164,452
884
Total expenses
344,222
179,348
Excess / (deficiency) of revenue over expenses
19,924
470,778
Fund balance, beginning of year
7,347,626
6,876,848
Fund balance, end of year
7,367,500
7,347,626

Fund for Livestock Producers

Statement of Cash Flows For the Year Ended March 31, 2015
 
2015
2014
Cash provided by operating activities ($)
Excess of revenues over expenses
19,924
470,778
Investing activities ($)
Decrease / (increase) in investments
245,246
(591,062)
Increase / (Decrease) in cash
265,170
(120,284)
Cash, beginning of year
255,734
376,018
Cash, end of the year
520,904
255,734

 

Please contact the liason at 519-826-4044 if you require assistance with the financial statements.


For more information:
Toll Free: 1-877-424-1300
E-mail: ag.info.omafra@ontario.ca
Author: Livestock Financial Protection Board
Creation Date: 26 March 2015
Last Reviewed: 17 August 2016