A Gesture That Benefits All - UOMA Atlantic · SOGH UOMA NB that collect the products from...

A Gesture That Benefits All

2014 ANNUAL REPORT

3

SECTION

1 A System that Performs Efficiently 4

2 Standard Flow Cycle of Funds and Products 5

3 A First Full Year of Efficient Management 6

4 Scoreboard of SOGHUOMA NB 8

5 SOGHUOMA Members 10

6 SOGHUOMA Committees 12

7 SOGHUOMA NB Zones 14

Financial Statements

SECTION

8 Independent Auditor’s Report 15

9 Income 16

10 Changes in Net Assets 17

11 Balance Sheet 18

12 Cash Flow 19

13 Notes to Financial Statements 20

14 New Image, Bright Future 26

Table of Contents

GENERATORS

Establishments that generate used products (garages, dealers, commercial, industr ia l and municipal sectors, forestry, agriculture, transporters, individuals).

COLLECTORS

Establishments registered with SOGHU OMA NB that co l lec t the products from Generators and rece ive subs id ies f rom SOGHUOMA NB (for additional information see page14).

PROCESSORS

Establishments registered with SOGHUOMA NB that give a second life to products.

MEMBERS

Brand Owners who fund the system at $0.05 per litre for applicable lubricating oils; $0.10 per litre for oil and antifreeze containers of 50 litres or less; $0.17 per litre for non-metal or non-HDPE oil and antifreeze containers of 50 litres or less; $0.10 per litre of antifreeze mix; $0.16 per litre of antifreeze concentrate; $0.50 per filter of 8 inches or less or 203 mm in height; $1.00 per filter of more than 8 inches or 203 mm or more; $0.50 per sump type filters for automatic transmissions and $0.25 per aerosol container.

COLLECTION FACILITIES

Establishments registered with SOGHUOMA NB to receive from the small Generators, at no cost to them, used oil products governed by the Regulation.

PRODUCTS

$ FUNDS

54 2014 ANNUAL REPORT

Congratulations to the vision of the four Atlantic provinces, which has allowed the formation of a single association and a single management office, SOGHUOMA, for the management of programs in New Brunswick and in the other three provinces to come, including Prince Edward Island which already joined in 2014. It is clearly understood that the budgets and recovery rates of the four provinces are managed independently.

SOGHUOMA’s vision is simple: the deployment of a recovery and reclamation program for the regulated products, which is as harmonized, efficient, self-sufficient and environmentally, economically and socially responsible as possible: in short, a model of excellence in a sustainable development perspective.

The program’s success is based on a win-win partnership, thanks to a system of financial incentives depending on the products and geographical zones to cover. Here are the key elements of the program:

• The Members fund and manage the system via SOGHUOMA.

• The Generators (garages, industries, etc.) are the first stage of recovery.

• The Collectors recover the products by picking them up at the Generators.

• The Processors reclaim the products and give them a second life.

• The Collection Facilities are the cornerstone of a free service to the public.

• Recycle NB supports SOGHUOMA.

Many information and awareness documents were created and distributed to enable the Members, the Collectors, the Processors, the Generators and the general public to better understand the program and its benefits. Many printed documents and posters for the Collection Facilities were distributed to garage operators. A press conference was held on October 21, 2013 for the official announcement of the coming into force of the Regulation and the beginning of free collection of all the subject products at garages and industries. Attending the press conference were the Minister of Environment, the Honourable Danny Soucy, the Recycle NB Board Chair, Mr. Bryan Howell, the Vice-President for Eastern Canada of the Canadian Fuels Association and President of SOGHU, Mr. Carol Montreuil, and the Chairman of the Board of Directors of SOGHUOMA, Mr. David Bois.

Standard Flow Cycle of Funds and Products 2

The Atlantic Used Oil Management Association (SOGHUOMA) is a non-profit organization founded to satisfy the requirements of the Designated Materials Regulation – Clean Environment Act. SOGHUOMA is recognized by Recycle NB as an agent empowered to deploy and manage an integrated recovery and reclamation program for the regulated products and to raise user awareness.

A System that Performs Efficiently1


Excellent cooperation with RECYCLE NBRecycle NB worked with SOGHUOMA on the quick setup of public Collection Facilities where individual and small businesses can bring the used products governed by the Regulation free of charge. SOGHUOMA also organized promotions to thank and encourage garages, and commissions to become Collection Facilities.

Recycle NB joined SOGHUOMA in conducting a study of the Collection Facilities to find out the oil volumes burned. This study is moving ahead and will be the first milestone to learn the realities on the ground.

This first year therefore allowed us to publicize the Regulation and the benefits attached to it and raise Generators’ awareness about the necessity of good management of these products which can be a major source of contamination.

We are proud of this first year of operation, the results of which are evidence of the commitment of SOGHUOMA, our Members and our Board of Directors to achieving the government objectives, and the effectiveness of the model based on extended producer responsibility.

In short, this program represents a sustainable development model, the balance between business requirements and society’s needs.

Given that one litre of oil can contaminate one million litres of water, it is easy to understand SOGHUOMA’s motto:

Making every drop count…

David BoisChairman

Gilles GoddardGeneral manager

Mr. Jean Duchesneau – Mr. John Robichaud – Mr. David Bois, Chairman – Mr. Gordon O’Neill – Mr. Gilles Goddard, GM – Mr. Albert Girard – Mrs. Loulia Kouchaji – Mr. Stephan Brault – Mr. Bruce Trethewey Not shown in photo > Mr. Sheldon Boyd – Mrs. Jennifer Gibb – Mr. Peter Gosse – Mr. John S. Hughes – Mr. Chris Lesperance – Mr. Jamie Seamans .

Excellent partnerships with the Collectors The Collectors wanted to make this new system a success. Their excellent cooperation and participation helped establish the zones and the amounts of incentives payable in these zones for the products governed by the Regulation, according to the free-market realities in the field.

Unexpected situations and slow but advantageous implementationWhen we implemented the system, we discovered that the vast majority of garages did not deal with Collectors, because most of them burn the oils they produce (and more), send filters to scrap metal dealers or garbage dumps, and burn plastic containers or send them to the dump.

For the Processors, these were new business opportunities, because they discovered new customers to whom they could offer their services. The deployment and development of collection were therefore slowed down, because the Collectors had to visit these new customers, explain how the program works and supply the necessary bins and drums.

Despite these unexpected situations, the results of this first year are significant.

Regarding used oils, since there unfortunately is no government control of the quantities burned by the Generators, we cannot trust the 32.5% rate, because the number of litres burned could range between 40% and 60%.

Obviously, if we calculate an average of 50% recycled oil (legal burning) and 32.5% recovered by the Collectors, we would end up with 82.5% reused or recovered oils.

Regarding filters, compared to almost none recovered before the Regulation, the year ended with 59%, which is very good for a first year, given the circumstances. Glycol (antifreeze) and containers are problems in all provinces and a Canada-wide study is being considered by the associations.

Société de gestion des huiles usagées de l’Atlantique/Atlantic Used Oil Management Association has been in operation since January 2014. It has many partners, including 142 Members (who put products on the market), 5 Collectors and 6 Processors. The various activities are all managed in accordance with the applicable regulations. All the recovered products are 100% reclaimed.

3A First Full Year of Efficient Management


Products EHC RI Net

Difference Average RI per quantity collected

Oils 728,577 126,682 601,895 601,895 $0.038/l

Filters 714,359 353,055 361,304 361,304 $0.446/un. $1.30/kg

Oil Containers 887,482 308,716 578,766 578,766 $0.111/un. $2.35/kg

Processing 0 41,987 41,987 (41,987) $0.015/un. $0.30/kg

Glycol (antifreeze) 199,096 35,592 163,504 163,504 $0.370/l

Glycol (antifreeze) Containers 126,979 10,496 116,483 116,483 $0.094/un. $2.24/kg

2,656,493 876,528 1,779,965

Products Measurements Sales Recoverable Recuperated Recuperated %

Object.Recyc NB

Applicable in the Year

Oils litres 14,571,535 10,200,0751 3,319,285 32.5% 50.0% 2015

Filtersunits 1,337,755 1,337,755 791,1893 59.1% 25.0% 2015

kg 460,1352 460,135 272,1384 59.1% 25.0% 2015

Oil Containerslitres 8,378,689 7,959,755 2,780,9564 34.9% 25.0% 2015

kg 397,103 376,802 131,646 34.9% 25.0% 2015

Glycol (antifreeze) litres 2,156,277 970,3255 96,165 9.9% 50.0% 2017

Glycol (antifreeze) Containers

litres 1,269,795 1,206,297 112,005 9.3% 50.0% 2017

kg 53,193 50,533 4,691 9.3% 50.0% 2017

Oils

Filters

Containers

Containers

Antifreeze

Collection Facilities

Zone RI In Litres % RI In kg % RI Oil % Glycol (antifreeze) % Total kg % RI In Litres % Commercial Commission Total

1 $0.03 2,652,331 80% $0.80 191,553 70% $2.10 90,202 69% 3,215 69% 93,417 69% $0.35 67,627 70% 55 1 56

2 $0.10 28,415 1% $1.00 8,191 3% $2.25 5,671 4% 203 4% 5,874 4% $0.45 3,681 4% 8 0 8

3 $0.10 63,115 2% $1.00 8,842 3% $2.25 7,035 5% 251 5% 7,286 5% $0.45 4,294 4% 6 1 7

4 $0.06 489,588 15% $0.90 53,546 20% $2.50 23,949 18% 853 18% 24,802 18% $0.40 18,384 19% 59 2 61

5 $0.10 22,910 1% $1.00 2,957 1% $2.25 2,565 2% 89 2% 2,654 2% $0.45 426 0% 5 0 5

6 $0.10 62,925 2% $1.00 7,049 3% $2.25 2,224 2% 80 2% 2,304 2% $0.45 1,752 2% 16 1 17

Total $0.04 3,319,284 100.00% $1.30 272,138 100.00% $2.35 131,646 100.00% 4,691 100.00% 136,337 100.00% $0.04 96,165 100.00% 149 5 154

Scoreboard of SOGHUOMA NBSales and Recovery Summary – January to December 20144

Members 142 Collectors 5 Processors 6

As of December 31, 2014 Ratings Legend1 Recoverable oil = 70%2 Average weight for marketed filters < 8” = 0.28304 kg and > 8” = 1.17899 kg 3 Actual collection X 0.67 (0.67= Actual weight of crushed filters)4 5% of containers are used more than once/ 95% recoverable5 Recoverable antifreeze = 45 %

Zone legend1 Kings, Queens, St-John, Sunbury, Westmorland, York2 Kent3 Northumberland4 Carleton, Gloucester, Madawaska, Restigouche, Victoria5 Albert6 Charlotte

Note: This information is based on remittances received and RIs paid up to March 30, 2015 in relation to 2014.


5 SOGHUOMA MembersADF Diesel Montréal Inc.

Affinia Canada ULC

Agco Parts Division

Altrom Canada Corp.

American Grease Stick Co

Amsoil Inc

April Super Flo Inc

Arctic Cat Sales Inc.

Arlyn Enterprises LTD DBA Boss Lubricants

Armored Auto Group

Asalco Inc.

Atlantic Tractors & Equipment Ltd

Atlas Copco Compressors Canada Inc.

Atlas Pro Service

Auto Moto Canada Inc

Auto-Camping Ltd.

AutoChoice Parts & Paints Ltd

Aviall Canada Ltd.

Baldwin Filters Inc.

Beck Arnley Worldparts Inc.

BestBuy Distributors Ltd.

Blue Water Agencies Ltd

BMW Canada Inc.

Bosch Rexroth Canada Corporation

BP Lubricants USA Inc.

BRP Inc

Canadian General Filters Ltd.

Canadian Kawasaki Motors Inc.

Canadian Tire

CarQuest Canada Ltd.

Castrol Industrial North America Inc.

Chalifour Canada

Champion Laboratories Inc.

Chevron Canada Limited

Chicago Pneumatic Tool Company Canada Ltd.

Chrysler Canada Inc.

CNH Industriel Canada Ltée

Cool Distribution Inc.

Co-op Atlantic

Costco Wholesale Canada Ltd.

Crevier Lubrifiants Inc

Cummins Est Du Canada SEC

Daimler Trucks North America LLC

Echo Power Equipment (Canada)

Équipement SMS Inc.

Ford Motor Company of Canada Ltd.

Fred Deeley Imports Ltd.

Fullbore Marketing Ltd

G.F. Thompson Company Ltd.

G.K. Industries Ltd.

Gamma Sales Inc.

General Motors of Canada Ltd.

Groupe BMR Inc.

Hall-Chem MFG Inc.

Hasting Filters

Henkel Canada Corporation

Home Depot of Canada Inc.

Home Hardware Stores Ltd.

Honda Canada Inc.

Husqvarna Canada Corp.

Hyundai Auto Canada Corp.

Imperial Oil

Importations Thibault Ltee

Integrated Distribution Systems LP DBA Wajax Power

Irving Blending & Packaging

ITW Permatex Canada

Jacques Larochelle Inc.

John Deere Canada ULC

Kaeser Compresseurs Canada Inc.

Kia Canada Inc.

Kimpex Inc.

Kleen-Flo Tumbler Industries Ltd.

KTM Canada Inc.

Kubota Canada Ltd.

La Coop Fédérée

La Coop Fédérée (Énergie Sonic)

Les Pièces d’Auto Transit Inc.

Les Pièces de Transmission Unitrans Ltée

Les Services Maintech / Maintech Services

Loblaws Inc.

Machinerie R. Gagnon Inc.

Mack Trucks Canada and VolvoTrucks Canada Division

Marindustrial Inc

Matech BTA Inc.

Mazda Canada Inc.

Mercedes-Benz Canada Inc.

MFTA Canada Inc.

Mitsubishi Motor Sales of Canada Inc.

Modern Sales Co-Op

Motion Industries (Canada) Inc.

Motovan Corporation

National Energy Equipment Inc.

Navistar Canada Inc.

NCH Canada Inc.

Nissan Canada Inc.

Paccar Parts, A Division of Paccar of Canada Ltd.

Parker Canada Division

Parkland Industries Ltd DBA Bluewave Energy

Parts Canada Development Co.

Parts for Trucks Inc.

Petro-Canada Lubricants Inc

Polaris Industries Ltd

Prévost, une division de Groupe Volvo Canada Inc.

Pro Form Products Ltd

Produits Automobiles Laurentide Inc.

Produits Lubri-Delta Inc.

Prolab Technolub Inc.

Radiator Specialty Company of Canada Ltd.

Recochem Inc.

Ridge Tool Company

Robco Inc.

Robert Bosch Inc.

Rona Inc.

SC CLS Holdings ULC Complete Lube Supply

Sears Canada Inc.

Shell Canada Products

Shoreline Lube Distribution Inc.

Sinto Racing Inc.

Southwestern Petroleum Canada Ltd.

Spectra Premium Industries

State Industrial Products DBA State Chemical Ltd.

Subaru Canada Inc.

Suzuki Canada Inc.

Target Canada Co.

Texas Refinery Corp. of Canada Ltd.

The Sherwin-Williams Co.

Total Canada Inc.

Toyota Canada Inc.

UAP Inc.

Uni-Sélect Eastern Inc.

Valvoline Canada a div. of Ashland Canada Corp.

Vast-Auto Distribution Atlantic Ltd

Verco International Inc.

Volkswagen Group Canada Inc.

Volvo Cars of Canada Corp.

Wainbee Limited

Wakefield Canada Inc.

Walmart Canada Corp.

WD-40 Company (Canada) Ltd.

Worldpac Canada Inc.

Yamaha Motor Canada Ltd.

Yvan Brake & Clutch


SOGHUOMA Committees

SOGHUOMA’s Board of DirectorsAffinia group John Robichaud

Ashland, Valvoline Bruce Trethewey

Atlantic CAT, Atlantic Tractors & Equipment Sheldon Boyd

Blue Water Agencies Limited Stephan Brault

Co-op Atlantique Gordon O’Neill

Global Automakers of Canada Loulia Kouchaji

Home Hardware Stores Limited David Bois

North Atlantic Refining Limited, Mobile Peter Gosse

UNI-SELECT Chris Lesperance

Wakefield Canada Inc. Jennifer Gibb

Department of Environment Labour & Justice PEI John S. Hughes

Recycle NB Jamie Seamans

Industry Advisory Committee Oil & Glycol Program (OAG) of New BrunswickAshland, Valvoline Bruce Trethewey

Atlantic Industrial Services Glen Anderson

Home Hardware Stores Limited David Bois

Recycle NB Gildard ChiassonBryan HowellJamie SeamansPat McCarthyTina Hohmann

Regional Service Commission (Péninsule acadienne) Gary Leblanc

Retail Council of Canada Jim Cormier

RPM Environnement inc. Pascal Bissonnette

SOGHUOMA Gilles Goddard

Terrapure Environmental Adam Hayes

Employees and Consultants Gilles Goddard General Manager

Jean Duchesneau, CPA, CMA Assistant General Manager

Albert Girard Consultant

Magalie Morrissette, CPA, CMA Controller

Diane Caron Assistant to the General Manager

Kim DeMaisonneuve Administrative Assistant

Nathalie Télénis Administrative Assistant

Carmen Mensher Responsible for printed incentive reports

Auditors

LEHOUX BOIVIN COMPTABLES AGRÉÉS SENC 4255 Lapinière Blvd., Suite 300, Brossard, Quebec J4Z 0C7

6


3

4

2

1 5

6

Note: For information concerning RI rates for Internal Collectors Processors, please contact SOGHUOMA.

To the Members of ATLANTIC USED OIL MANAGEMENT ASSOCIATION INC. (SOGHUOMA)We have audited the accompanying financial statements of the ATLANTIC USED OIL MANAGEMENT ASSOCIATION INC. (SOGHUOMA), which comprise the balance sheet as at December 31, 2014 and the statements of income, changes in net assets and cash flow for the initial year then ended, and a summary of significant accounting policies and other explanatory information.

Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with Canadian accounting standards for not-for-profit organizations, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditor’s ResponsibilityOur 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 auditors considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accouting 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.

OpinionIn our opinion, the financial statements present fairly, in all material respects, the financial position of the ATLANTIC USED OIL MANAGEMENT ASSOCIATION INC. (SOGHUOMA) as at December 31, 2014, and the results of its operations and its cash flows for the initial year then ended in accordance with Canadian accounting standards for not-for-profit organizations.

Lehoux Boivin1

Brossard, April 2, 2015

Independent Auditor’s Report

1 CPA auditor, CGA, public accountancy permit No A127955

Map and RI Table

ZONE 1 2 3 4 5 6

Used oil ($/litre) 0.03 0.10 0.10 0.06 0.10 0.10

Used glycol (antifreeze) (45-55) ($/litre)

0.35 0.45 0.45 0.40 0.45 0.45

Used filters ($/kg) 0.80 1.00 1.00 0.90 1.00 1.00

Used oil and used glycol (antifreeze) containers ($/kg)

2.10 2.25 2.25 2.50 2.25 2.25

Aerosols ($/kg) 3.65 3.95 3.95 3.80 3.95 3.95

Zone legend1 Kings, Queens, St-John Sunbury, Westmorland, York2 Kent3 Northumberland4 Carleton, Gloucester, Madawaska, Restigouche, Victoria5 Albert6 Charlotte

7 8SOGHUOMA NB Zones


Changes in Net Assets for the Initial Year Ended December 31, 20149 10Income

for the Initial Year Ended December 31, 2014

Unrestricted Reserve fund

Balance, Beginning of Year ― ― ―

Excess of revenue over expenses 789,341 ― 789,341

Balance, End of Year 789,341 ― 789,341

The accompanying notes are an integral part of the financial statements

REVENUES

Environmental Handling Charges 2,656,494

Registration and renewal 30,600

Interest 4,506

2,691,600

EXPENSES

Program

Return incentives 834,541

Process incentives 41,987

Collection facilities incentives 18,780

Advertising and communications 202,512

Contribution to RECYCLE-NB 517,968

Management fees (note 3) 63,615

Legal fees 2,710

Office and general expenses 61,173

Consulting fees 45,926

1,789,212

Administration


Legal fees 25,075

Management fees (note 3) 66,114

Depreciation – intangible assets 3,903

113,047

EXCESS OF REVENUE OVER EXPENSES 789,341



Cash Flow for the Initial Year Ended December 31, 2014

Balance Sheet for the Initial Year Ended December 31, 2014

ASSETS

Current Assets

Cash 779,709

Accounts receivable 685,009

Prepaid expenses 1,433

1,466,151

Intangible assets (note 4) 19,512

1,485,663

LIABILITIES

Current Liabilities

Accounts payable (note 5) 662,970

Advances from an organization (note 6) 33,352

696,322

NET ASSETS

789,341

1,485,663


On behalf of the Board:Mr. David Bois, ChairmanMr. Sheldon Boyd, Vice-Chairman

OPERATING ACTIVITIES

Cash receipts – members 2,002,085

Cash receipts – interest and others 4,506

Cash paid – suppliers and employees (1,383,412)

623,179

INVESTING ACTIVITIES

Acquisition of intangible assets (23,415)

Advances from an organization 179,945

156,530

Increase in cash and cash equivalents 779,709

Cash and cash equivalents, beginning of year –

Cash and cash equivalents, end of the year 779,709


11 12


Notes to Financial Statements for the Initial Year Ended December 31, 2014

1 Governing Statutes and Nature of BusinessThe organization was incorporated on November 18, 2013 under Part I of New Brunswick Companies Act. According to the Federal and Provincial Income Tax Acts, it is a non-profit organization and is therefore exempt from income taxes.

The organization has the mandate to establish and manage an integrated program of recovery and reclamation for used oils and antifreeze and also for oil, fluid and antifreeze containers in an efficient and responsible manner.

2 Significant Accounting PoliciesThe financial statements were prepared in accordance with Canadian accounting standards for not-for-profit organizations (ASNFPO) and include the following significant accouting policies:

2 Significant Accounting Policies (continued)Cash and cash equivalentsCash and cash equivalents include cash and other highly liquid financial instruments with maturities of three months or less from date of purchase. Term deposits with maturities exceeding three months from date of purchase are not included in cash and cash equivalents. They are considered as an investing activity.

Revenue recognitionRevenue from environmental handling charges are recognized when the lubricating oil and/or oil containers and oil filters are sold by members, based on their remittance forms, except for revenue from prior years received in the current year following a new registration, because Environmental Handling Charges must be remitted retroactively from seven years, and for additional revenue determined following a compliance review. These Environmental Handling Charges are recognized in the year during which they are determined.

Intangible assetsThe websites are accounted for at cost and depreciation on the basis of their useful life using the straight-line method at 33%.

Expense allocationThe organization displayed its expenses by functions.

Management fees shared by program and administration functions are allocated proportionaly to hours spent as follow:

Program Administration

Management fees from 10% to 90% from 10% to 90%

13Use of estimatesThe preparation of these financial statements, in accordance 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, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amount of revenues and expenses during the current period. Actual information could differ from that determined based on these estimates and assumptions. These estimates are reviewed periodically and adjustments are made to income in the year they become known.

Return incentivesReturn incentives expenses are recognized when the lubricating oil and antifreeze and/or containers and filters are collected by a SOGHUOMA organization’s registered Collector.

Processing incentivesProcessing incentives expenses are recognized when the lubricating oil containers are processed by a SOGHUOMA organization’s registered Processor.

Financial instruments Measurement of financial instrumentsThe organization initially measures its financial assets and liabilities at fair value, except for certain non-arm’s length transactions. They are subsequently measured at amortized cost, except for other investments and advances from shareholders which are measured at cost and investments in quoted shares which are measured at fair value. Changes in fair value are recognized in net income.

ImpairmentFinancial assets measured at cost are tested for impairment when 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.


3 Management FeesThe organization SOGHUOMA retains the services of the organization SOGHU for the purposes of assisting the organization SOGHUOMA in the conception, implementation and operation of the recovery and reclamation program required to ensure the appropriate recovery and reclamation of the Products in accordance with applicable Atlantic Provinces legislative and regulatory requirements.

Program 63,615

Administration 66,114

129,729

Operating expenses incurred during the year with this organization are as follows:

PROGRAM

Container segregation 11,789

Advertising and communication 247

Salaries, fringe benefits and management and administration contracts 45,125


63,615

ADMINISTRATION


Rent 4,374

Salaries, fringe benefits and management and administration contracts 47,924

Depreciation – fixed assets 4,144

66,114

129,729


4 Intangible Assets

DEPRECIABLE CostAccumulated amortization Net value

Website 23,415 3,903 19,512

5 Accounts Payable

Trade 447,042

Trade – SOGHU 146,593

Sales taxes payable 69,335

662,970

6 Advances from an Organization

Cash and the current managements of the organizations SOGHUOMA and SOGHU was provided by a common general manager. The advances from the other organization consist of cash advances and expenses assuming related to the management of the organization, based on an agreement renewable in 2018. These loans beared interest at prime plus 2% for the first three months of the year and do not include terms of repayment. The balance owed is $33,352 as at December 31, 2014.


7 CommitmentsContribution at Recycle NBUnder the designated material regulation clean environment act. of New Brunswick, the organization must cover annual administrative costs incurred by Recycle NB, with regard to oil, oil filters, oil containers, glycol and glycol containers. The estimated amount for 2015 is $260,000.

Management and administration servicesThe organization has reached an agreement with the organization SOGHU until December 31, 2018. Under this agreement, the organization must pay a management fee to the organization SOGHU, calculated on a pro rata basis of total budgeted environmental handling charges for each organization. For the year ended December 31, 2014, the prorata used is 85,3% for the organization SOGHU and 14,7% for the organization SOGHUOMA.

8 Related Party TransactionsIn regular course of its business, the organization receives Environmental Handling Charges from its members and pays Return Incentives to Collectors and Processors. Some members and one Collector (without voting right) have representatives who are part of the Board of directors. These transactions are measured at the exchange amount and are subject to the usual commercial conditions or the organization.

The principal transactions concluded with companies or organizations members of the Board of directors of the organization during the year are as follow:

REVENUES

Environmental Handling Charges 203,088

Registration and renewal 1,800

Finally, the accounts receivable include an amount of $38,245 to be received from companies managed by members of the Board of directors.

9 Financial InstrumentsThe organization is exposed to various risks through its financial intruments. The following analysis provides a measure of the Organization’s risk exposure and concentrations as at December 31, 2014.

Credit riskIn the regular course of its operations, the organization monitors the members that did not produce monthly remittance forms and did not remit Environmental Handling Charges.

The organization is not exposed to any significant risk with respect to a credit concentration.



New Image, Bright Future14

1101 Brassard Blvd., Suite 214, Chambly, Quebec J3L 5R4Phone: 450 447-9996 | Fax: 1 855 497-7505E-mail: [email protected]

SOGHUOMA.COM 1 877 987-6448

A Gesture That Benefits All - UOMA Atlantic · SOGH UOMA NB that collect the products from...

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