FA I TH

FAMILY

FARMING

A GENERAL FARM ORGANIZATION THAT IS ROOTED IN FAITH &

GUIDED BY VALUES

2013 ANNUAL REPORT

WWW.CHRISTIANFARMERS.ORG

CHRISTIAN FARMERSFEDERATION OF ONTARIO

2013Annual Report

CFFO STAFFJenny Denhartog Interim General Manager, ManagerofBoards&CommitteesFranchescaWeeks CommunicationsManagerFrancesPitkin OfficeManagerPaul Bootsma Field Services Manager

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Message from the President............................4-5GM’s Report......................................................6-7Financial Statements........................................8-15Notes to the Financial Statements.................16-19

CONTENTS

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2013Annual Report

The Christian Farmers Federation of Ontario is a professional organization for families involved in the business of farming. We value family enterprise, profitability and a responsible stewardship of resources.

Theyear2013wasaverysatisfyingyear formost farmfamilies

across Ontario. It was a relief that the drought of the previous year

had been replaced by more normal weather. The red meat sector

hadreturnedtoprofitabilityaftermanyyearsofhardshipandthe

shrinking of the pork and beef herds was slowing.

Early in the year, Premier Kathleen Wynne announced that she

would be the Minister of Agriculture and Food. There was some

concernthatshewouldnothavethetimetodevotetosuchan

important task. The concerns proved to be unfounded; she be-

cameaveryeffectiveAgricultureMinister.Shewasavailablewhen

needed, willing to listen and sought to understand and clarify is-

sues. She was also clearly decisive at the appropriate times.

Shestrengthened the“Open forBusiness” initiativeandhelped

toresolvesomeimportantagricultural issues.The initiativewas

launched a few years ago as a way of removing some unnecessary

red tape. It involved the CFFO, OFA, Farm Supply Industry, and the

FoodProcessingIndustry.Duringseveralmeetingsheldthrough-

out the year, some important longstanding issues were resolved.

Late in the year, the Premier launched the “Premier’s Challenge”

for the industry to work towards some challenging targets which

would create many more jobs and enhance agriculture and food

processingproductivity.TheCFFOisrespondingtothechallenge.

I welcome this opportunity to thank Agriculture Minister and Pre-

mier Kathleen Wynne for her commitment to the agriculture and

food industry. She continuously reminded the farm community

thatagricultureandfoodhasthepotentialtobeamajorforcein

the provincial economy of the future.

The year 2013 saw the return to normal for the Farm Busi-

nessRegistrationprocess.TheChristianFarmersFederation

of Ontario was fully re-accredited a few days before the year

began. There were however a few new requirements in ar-

eassuchasmembershipresponsibilities.Itwasachallenge

forstaffandmemberstoadapttothenewregulations.How-

ever, at the end of the day membership enrollment was up

and we welcomed many new farms to our CFFO family.

Weshouldallbe incrediblyproudofourstaff.NathanSte-

vens and his team have done a remarkable job this year,

even when faced with adversity. Dealing with the accredita-

tionprocesswasamajorheadacheandaddedsubstantially

tostaff’sworkload.

Asurveycompletedafewyearsagoidentifiedthekeyvalues

of the CFFO farm families as “faith, family and farming”. I

would be remiss if I did not thank my four teenage daughters

whomadeour farmcontinuetooperatewhile Iwasaway

working on behalf of this incredible organization. Many

thanks also to the thousands of CFFO farm families for your

encouragement and support.

Thank you.

MESSAGE FROM THE PRESIDENT

Lorne Small, 2013 CFFO President

President Lorne Small is a sheep farmer from Kenilworth. He has served on the Ontario Sheep Marketing Agency, worked for sever-al years as a provincial agricultural representative and was the first appointed General Manager of the Ontario Dairy Herd Improve-ment Corporation when it was privatized.

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2013Annual Report

The Christian Farmers Federation of Ontario is a professional organization for families involved in the business of farming. We value family enterprise, profitability and a responsible stewardship of resources.

2013 was a year of growth and development for CFFO. Our

membership grew, our districts became healthier and we

made strides in several key policy areas.

MEMBERSHIP GROWTH

TheCFFOcameoutof2012havingregaineditsaccreditation

despite many challenges along the way. Yet we entered 2013

renewed and refocused. At the end of the year, our member-

ship and supporter totals were nearly nine per cent higher

than in 2012. We were happy to accept these new members

and supporters into the ranks of the CFFO.

STRONGER DISTRICTS

The accreditation challenge of 2012 brought on a renewed

focuson thehealthofourDistrictAssociations in2013.We

changedourapproachtofinancialsupportforthedistrictsand

put a lot of sweat equity into strengthening the leadership in

the districts. The results have been fantastic,with renewed

activityattheDistrictlevel,renewedleadershipwhichwebe-

lieve is strengthened by our District Leadership Summit, and

thefinancialabilityofthedistrictstomakeadifferenceatthe

grassroots.

POLICY HIGHLIGHT: SUPPLY MANAGEMENT: DEALING WITH

MARKET ATTRITION

Thefederationwasabletomakeapositiveimpactontheon-

going discussion around supply management and its future.

Ratherthantakeafixedpositioneithercallingforanendto

the system or arguing the system is great as it stands, the

CFFOcommissionedapaperthatlookedforopportunitiesto

strengthen the sector. The focus of the paper was on the is-

sueofmarketattrition,orthelossofnewandemergingmar-

kets to imports because the system either isn’t responsive

enough or interested enough in capturing these markets.

THE YEAR IN POLICY: BEES, WATER AND LOCAL FOOD

Thereweremanydifferentpolicy issues that theCFFO fo-

cusedonin2013.Theissueoftheimpactofneonicotinoid

pesticides and their impact on pollinators in Ontario was

raised as a serious concern for both grain farmers and bee-

keepers. In 2013, our focus was on a measured response

basedontheresearchbeingdonetodeterminetheextent

of the impact. In the area of water, CFFO put forward its

ideas on how to more actively promote forward-thinking

waterstewardshippracticesinOntarioagriculture.Wealso

used the Open for Business forum as a way to produce regu-

latory change for greenhouse wastewater. Finally, the CFFO

weighedinonseveraldifferentpiecesoflegislation,includ-

ingtheLocalFoodActandtheGreatLakesProtectionAct.

Welookforwardtocontinuingtoworkhardonyourbehalf

in 2014.

NathanStevens,

2013 CFFO General Manager &

Director of Policy Development

Nathan Stevens is the General Manager and Director of Policy Development for the CFFO. He also operates a family farm in Perth County. He is a graduate of the University of Waterloo and the Advanced Agricultural Leadership Program.

GM’S REPORT

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2013Annual Report

The Christian Farmers Federation of Ontario is a professional organization for families involved in the business of farming. We value family enterprise, profitability and a responsible stewardship of resources.

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FINANCIAL STATEMENTS

To the Directors ofChristianFarmersFederationofOntario(FederationdesAgriculteursChretiensdel’Ontario)

IhaveauditedtheaccompanyingfinancialstatementsofChristianFarmersFederationofOntario,whichcomprisethebalancesheetasthenendedDecember31,2013andthestatementsofrevenuesandexpenses,statementofchangesinmember’sequityandstatementofchangesinfinancialpositionforyearthenendedandasummaryofsignificantac-countingpoliciesandotherexplanatoryinformation.

Management’s Responsibility for the Financial StatementsManagementisresponsibleforthepreparationofthesefinancialstatementsinaccordancewithCanadianaccountingstandardsfornot-for-profitorganizations,andforsuchinternalcontrolasmanagementdeterminesisnecessarytoenablethepreparationoffinancialstatementsthatarefreefrommaterialmisstatement,whetherduetofraudorerror.

Auditor’s ResponsibilityMyresponsibilityistoexpressanopiniononthesefinancialstatementsbasedonmyaudit.IconductedmyauditinaccordancewithCanadiangenerallyacceptedauditingstandards.ThosestandardsrequirethatIcomplywithethicalrequirementsandplanandperformtheaudittoobtainreasonableassuranceaboutwhetherthefinancialstatementsarefree from material misstatement.

Anauditinvolvesperformingprocedurestoobtainauditevidenceabouttheamountsanddisclosuresinthefinancialstatements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatementofthefinancialstatements,whetherduetofraudorerror.Inmakingthoseriskassessments,theauditorconsidersinternalcontrolrelevanttotheentity’spreparationofthefinancialstatementsinordertodesignauditproce-duresthatareappropriateinthecircumstances,butnotforthepurposeofexpressinganopinionontheeffectivenessoftheentity’sinternalcontrol.Anauditalsoincludesevaluatingtheappropriatenessofaccountingpoliciesusedandthereasonablenessofaccountingestimatesmadebymanagement,aswellasevaluatingthepresentationofthefinancialstatements.

IbelievethattheauditevidenceIhaveobtainedissufficientandappropriatetoprovideabasisformyauditopinion.

OpinionInmyopinion,thefinancialstatementspresentfairly,inallmaterialrespects,thefinancialpositionofChristianFarm-ersFederationofOntarioasatDecember31,2013andofitsfinancialperformanceanditschangesinfinancialpositionfortheyearthenendedinaccordancewithCanadianaccountingstandardsfornot-for-profitorganizationsandtheCPA(CharteredProfessionalAccountant)CanadaHandbook.

CPA, CALicensed Public AccountantMarch 11, 2014

241 Bonaventure Drive Hamilton,ONL9C4R1

Telephone:(905)389-2670Facsimile:(905)389-4642

E-mail: dave@daviddenboer.cawww.daviddenboer.ca

BALANCE SHEETDECEMBER 31, 2013

ASSETSCURRENT ASSETS 2013 2012

Cash $ 45,670 $ 11,766

Accounts Receivable 181 -

HSTreceivable 14,544 1,730PrepaidExpenses 12,206 12,709Short term investments 186,808 621,201

259,409 647,406

RESTRICTED ASSETS

Cash(Note6) 91,152 84,781

Accounts Receivable - 7,166

HSTReceivable 1,184 9,036

92,336 100,983

CAPITAL ASSETS (Note 3) 412,140 5,465

$ 763,885 $ 753,854

LIABILITIES

CURRENT LIABILITIES

Accountspayableandaccruedliabilities $ 39,392 $ 147,154

Deferred revenue 903 -40,295 147,154

RESTRICTED LIABILITIES

Accountspayableandaccruedliabilities - 951

40,295 148,105

MEMBER’S EQUITY

Invested in capital assets 406,722 5,464

Generalreserve(Note6) 54,198 44,653

Activityfund(Note6) 38,138 55,380

Unrestricted(availableforgeneralpurpose) 224,532 500,252

723,590 605,749

$ 763,885 $ 753,854

Lorne Small, CFFO President

Bethanee Jensen, CFFO Treasurer

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BALANCE SHEETDECEMBER 31, 2013

STATEMENT OF CHANGES IN MEMBER’S EQUITY FOR THE YEAR ENDED DECEMBER 31, 2013

Invested in Capital Assets

General Reserve

Unrestricted (General)

ActivityFund

2013 Total

2012 Total

Balance, beginning of year

$ 5,464 $ $44,653 $ 500,252 $ 55,380 $ 605,749 $ 731,086

Excess(deficiency)ofrevenues overexpenses

(6,298) - 141,381 (17,242) 117,841 (125,337)

Investment in capital assets

407,556 - (407,556) - - -

Interfund transfer(Note6) - 9,545 (9,545) - - -

Balance, end of year $ 406,722 $ 54,198 $ 224,532 $ 38,138 $ 723,590 $ 605,749

STATEMENT OF REVENUES & EXPENSES - GENERAL FUND FOR THE YEAR ENDED DECEMBER 31, 2013REVENUES 2013 2012Farmorganizationfundingfees(Note9) $ 954,525 $ 849,420Less: refunds (106,665) (69,030)

Netfarmorganizationfundingfees 847,860 780,390

Membership fees 5,655 59,865

Annualconvention 32,208 36,195

Grants 2,976 1,127

Seminar fees & other 1,216 1,817

Interest income 5,856 22,109

TOTAL REVENUES 895,771 901,503

EXPENSES

ADMINISTRATIVE

Amortization 6,298 4,894

Bank charges and interest 5,490 1,642

Equipment rentals and maintenance 12,931 12,583

Insurance 2,582 1,857

Farmbusinessregistrationadministrationfees 43,566 38,768

NewOpportinities 16,421 -

Officeandprintingsupplies 9,780 14,756

Postage and courier 7,392 6,108

Professionalandconsultingfees 14,652 17,893

Propertytaxes 176 -

Rent 21,368 21,368

Salariesanbenefits(note4cc)) 152,938 293,552

Stafftravelandexpenses 13,879 10,222Telephone 7,419 7,285

314,892 430,928PROVINCIAL ACTIVITIES

Annualconvention 24,093 35,367

BoardandCommitteeexpenses 69,525 67,843

Farmcommunityactivities 34,175 40,664

Farm media 22,650 24,527

150,443 168,401

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EXPENSES CONTINUED 2013 2012QUALIFIED DISTRICT (LOCAL AFFILIATES)

Meetingandtravelexpenses 57,440 50,184

Farmmedia/Newsletter 18,210 17,973

Fundingtodistrictassociations(Note10) 45,396 32,727

Projects 13,182 25,736

Promotionandadvertising 25,849 14,009

Salariesandbenefits(Note4(c)) 113,881 127,375

273,958 268,004

NON - QUALIFIED DISTRICTS (UNORGANIZED REGIONS)

Meetingandtravelexpenses 4,995 20,498

Farmmedia/Newsletter 2,035 7,341

Fundingtodistrictassociations(Note10) 1,520 1,997

Projects 694 10,512

Promotionandadvertising 2,248 5,722

Salariesandbenefits(Note4(c)) 9,903 52,026

21,395 98,096TOTAL EXPENSES 760,688 965,429

EXCESS (DEFICIENCY) OF REVENUES OVER EXPENSES $ 135,083 $ (63,926)

STATEMENT OF REVENUES & EXPENSES - GENERAL FUND FOR THE YEAR ENDED DECEMBER 31, 2013

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REVENUES 2013 2012Grants

Interest income $ - $ 13,274

TOTAL REVENUES - 168

- 13,442

EXPENSES

Bank charges 231 19

Business management pilot project - 21,823

Government programming impact project - 6,900

Supply management task team 13,768 37,856

Marketingtaskteam 1,594 1,864

Sustainability task team 1,649 6,391

TOTAL EXPENSES 17,242 74,853

EXCESS OF EXPENSES OVER REVENUES $ (17,242) $ (61,411)

STATEMENT OF REVENUES & EXPENSES - ACTIVITY FUND FOR THE YEAR ENDED DECEMBER 31, 2013

STATEMENT OF CHANGES IN FINANCIAL POSITION FOR THE YEAR ENDED DECEMBER 31, 2013

CASH PROVIDED (USED) BY: 2013 2012OPERATING ACTIVITIES

Excess(deficiency)ofrevenuesoverexpenses $ 117,841 $ (125,337)

Adjustmentsforitemsnotaffectingcash

Amortization 6,298 4,894

Decrease(increase)inaccountsreceivable 6,985 (5,596)

Decrease(increase)inHSTreceivable (4,962) 5,360

Decrease(increase)inprepaidexpenses 503 (4,864)

Increase(decrease)indeferredrevenue 903 -

Increase(decrease)inaccountspayableandaccruedliabilities (108,713) 125,004

Decrease(increase)inshortterminvestments 434,393 (621,201)

453,248 (621,740)

INVESTING ACTIVITIES

Additionstocapitalassets (412,973) (2,089)

INCREASE (DECREASE) IN CASH 40,275 (623,829)

CASH,beginning of year 96,547 720,376

CASH,end of year $ 136,822 $ 96,547

Cash is comprised of the following:

General fund $ 45,670 $ 11,766

Restricted fund 91,152 84,781

$ 136,822 $ 96,547

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2013

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1. PURPOSE OF THE ORGANIZATIONTheorganizationwasfoundedonMarch6,1954asafederationoflocalassociationsofChristianfamilyfarmersinOntario.

ItwasincorporatedasacorporationwithoutsharecapitalbyletterspatentundertheOntarioCorporationsActonJune

26,1991.Thecorporationisanon-profitorganizationoperatingtopromoteandapplyChristianideasandprinciplesto

thesolutionofagriculturalproblemsandtoincreasetheknowledgeofmemberswithrespecttotheirresponsibilitiesand

opportunities.

ThecorporationisexemptfrompaymentofincometaxesasprovidedundertheIncomeTaxAct.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESThesefinancialstatementshavebeenpreparedinaccordancewithCanadianaccountingstandardsfornot-for-profit

organizationsandincludethefollowingsignificantaccountingpolicies:

(a)CapitalAssets

Capitalassetsarerecordedatcost.Amortizationisprovidedannuallyatratescalculatedtowrite-offtheassetsovertheir

estimatedusefullivesasfollows:

Furniture and equipment - 20% straight line

Computer equipment - 40% straight line

Building - 4% straight line

(b)RevenueRecognition

Theorganizationfollowsthedeferralmethodofaccountingforcontributionsandfees.Farmorganizationfundingfees,

membershipfees,conventionfeesandsponsorfeesarerecognizedasrevenueintheyearthecorrespondingservicesare

provided.Unrestrictedcontributionsandgrantsarerecognizedasrevenuewhenreceivedorreceivableiftheamountto

bereceivedcanbereasonablyestimatedandcollectionisreasonablyassured.

(c)UseofEstimates

Thepreparationoffinancialstatementsinaccordancewithgenerallyacceptedaccountingprinciplesrequiresmanagement

tomakeestimatesandassumptionsthataffectthereportedamountsofassetsandliabilitiesatthedateofthefinancial

statements,andtheamountsofrevenuesandexpensesduringthereportingyear.Actualresultscoulddifferfrom

management’sbestestimates,asadditionalinformationbecomesavailableinthefuture.

(d)ContributedServices

Becausethehoursofservicebyvolunteersarenotnormallypurchasedbytheorganizationandthedifficultyin

determiningtheirfairmarketvalue,contributedservicesarenotrecognizedinthefinancialstatements.

(e)FinancialInstruments

Theorganizationinitiallymeasuresitsfinancialassetsandfinancialliabilitiesatfairvalueadjustedby,inthecaseof

afinancialinstrumentthatwillnotbemeasuredsubsequentlyatfairvalue,theamountoftransactioncostsdirectly

attributabletotheinstrument.

Theorganizationsubsequentlymeasuresallitsfinancialassetsandfinancialliabilitiesatamortizedcost.

COST ACCUMULATED AMORTIZATION

NET 2013

NET 2012

Land $ 98,881 $ - $ 98,881 $ -

Building $ 302,067 $ - $ 302,067 $ -Computer equipment 35,677 32,281 3,396 2,110Furniture & equipment 13,094 5,298 7,796 3,353

$ 449,719 $ 37,579 $ 412,140 $ 5,463

4. COMMITMENTS(a) PaymentsToUnionDesCultivateursFranco-Ontariens

UnderanagreementwiththeMinisterofAgriculture,FoodandRuralAffairs(OMAFRA),effectiveJanuary1,2008,theorganiza-

tionagreestopaytoUnionDesCultivateursFranco-Ontariens(UCFO)1.5%oftheirnetrevenuefromfarmorganizationfund-

ingfeesfromtheprioryear.ThisagreementshallterminateonlyiftheAgriculture,FoodandRuralAffairsTribunalremovesthe

eligibilityoftheUCFOforspecialfunding,allpartiesmutuallyagreetoterminatetheagreement,ortheUCFOhasbeengranted

accreditationbytheTribunal.In2011,thisagreementwasterminatedduetothelossofUCFO’saccreditationstatus.In2012,the

organizationsignedaletterofintentwiththeMinistertorenewtheagreementwiththeUCFOifre-accredited.In2014,UCFOwas

re-accreditedsotheletterofintentwillbeineffect.

(b)AdministrationCostsOfFarmBusinessRegistrationProgram

UnderanagreementwiththeMinisterofAgriculture,FoodandRuralAffairs,theorganizationhasagreedtopayAgricorp$8.90for

eachregistrationtoadministertheFarmBusinessRegistrationProgramin2014.Thisagreementcanbeterminatedbyeitherparty

bygivingpriorwrittennoticenolaterthanMay31ofanycalendaryearthatthenotifyingpartyintendstoterminatetheagree-

ment.

(c)OtherCommitments

Underthetermsofvariousleaseagreementsandothercontracts,theorganizationwillberequiredtomakethefollowingpay-

ments:2014-$52,940;2015-$5,521and2016-$2,760.

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2013 CONTINUED

(e)FinancialInstrumentsContinued

Financialassetsmeasuredatamortizedcostincludecash,GST/HSTrecoverable,accountsreceivableandshort-term

investments.Financialliabilitiesmeasuredatamortizedcostincludeaccountspayableandaccruedliabilities.

Attheendofreportingperiod,theorganizationassesseswhetherthereareanyindicationsthatafinancialassetmaybe

impaired.Whenthereisanindicationofimpairment,thecarryingamountoftheassetisreducedandtheamountofthe

reductionisrecognizedasanimpairmentlossinthestatementofrevenuesandexpenses.

3. CAPITAL ASSETS

18NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2013CONTINUED5. FINANCIAL INSTRUMENTSLiquidity risk

Liquidityriskarisesthroughhavingexcessfinancialobligationsoveravailablefinancialassetsatanypointintime.The

organization’sobjectiveinmanagingliquidityriskistomaintainsufficientreadilyavailablereservesinordertomeetits

liquidityrequirementsatanypointintime.Theorganizationachievesthisbyattemptingtomaintainsufficientcashandcash

equivalents.

6. RESTRICTED ASSETS AND MEMBERS’ EQUITYTheorganizationhasestablishedareservefundforfinancingfuturemajorexpensesorpossibleoperatingdeficits.There-

serve amount has been set at 1% of budgeted membership fees on an annual basis. The reserve fund balance on December

31,2013is$54,198(2012-$44,652).

Theorganizationhasestablishedareservefundforfuturespecialprojectsofthedistrictassociations,stafforboard

members.Thereserveamounthasbeensetat$125,000andwillonlybeusedforspecialprojectsthatareapprovedbythe

board.TheactivityfundbalanceonDecember31,2013is$38,138;(2012-$55,380).

7. CONTINGENCYIn2012alloftheaccreditedgeneralfarmorganizations,includingChristianFarmersFederationofOntario,didnotreceive

athreeyearre-accreditationapprovalfromtheAgriculture,FoodandRuralAffairsAppealTribunal.Insteadtheyreceiveda

threeyearaccreditationapprovalbasedonamodifiedsetofrequirements.However,itispossiblethatin2014,theorgani-

zationmaybereassesseduponthefullsetofrequirementswhenthemodifiedrequirementsexpire.

The following notes (notes 8 to 10) are required by the Farm Registration and Farm Organizations Funding Act, 1993:

8. FARM ORGANIZATION FUNDING FEESDuringtheyeartheorganizationreceivedfarmorganizationfundingfees.Ofthesefarmingbusinesses11.2%requestedand

receivedrefunds(2012-8.15%).Inadditiontothefeesreceivedfrom4,895farmingbusinesses,theorganizationreceived

membershipfeesfrom29non-registeredfarmingbusinessesand272registeredfarmingbusiness(2012-272).

2013 2012

NUMBER AMOUNT NUMBER AMOUNT

Fundingfees-qualifieddistricts(localaffiliates)

4,518 $ 881,010 3,077 $ 600,015

Fundingfees-non-qualifieddistricts(unorganizedregions)

377 73,515 1,279 249,405

4,895 $ 954,525 4,356 $ 849,420

Refunds-qualifieddistricts(localaffiliates)

510 $ 99,450 $ 233 $ 45,435

Refunds-non-qualifieddistricts(unorganizedregions)

37 7,215 121 23,595

547 $ 106,665 354 $ 69,030

9. DISTRICT EXPENSESContributionshavebeenmadetoandexpensesincurredonbehalfof21districtsandtothememberactivitiesinanarea

without a local district.

Section5(4)oftheFarmRegistrationandFarmOrganizationsFundingAct,1993OntarioRegulation723/93requiresthefol-

lowingofthequalifieddistricts(localaffiliates):

(a) hasatleasttenmembers,eachofwhomhaspaidthemembershipfee,carryingonfarmingbusinessesin

the area concerned;

(b) hasalocalaffiliateexecutiveelectedbytheaffiliate’smembers;

(c) hasanannualgeneralmeeting;and

(d) isentitledtosendarepresentativetoanymeetingofthefarmorganizationtowhichrepresentativesoflocal

affiliatesareinvited.

Non-qualifieddistricts(unorganizedregions)fallshortofthesefourcriteriaononewayoranother.

Directcontributionsof$45,396weremadetothefollowingqualifieddistricts(localaffiliates):Chatham-Kent,Dufferin-Wel-

lington,East-Central,Elgin,Grey-Bruce,Huron,Lambton,Middlesex,Niagara,Oxford,Perth,Quinte,RainyRiver,Renfrew-La-

nark,Simcoe,St.Lawrence-OttawaValley,Wellington,Wentworth-Brant,andThunderBay.Thesedistrictshavemetthe

standardsneededtobeconsideredqualifieddistricts.

Directcontributionsof$1,520weremadetonon-qualifieddistricts(unorganizedregions).Thenon-qualifieddistrictsareas

follows:Haldimand-Norfolk,andNorth-Eastern.Thesedistrictsdidnotmeetthestandardsneededtobeconsideredqualified

districts.

Districtexpensesof$273,958wereincurredforthequalifieddistricts(localaffiliates).AsstatedbytheFarmRegistration

andFarmOrganizationsFundingAct,1993OntarioRegulation723/93,Section5(12),theseexpensesmustexceed25%ofthe

membershipfeesrevenuelessapercentageasrequiredbySection5(1)(12)(i)oftheActwhichiscalculatedas$844,712.The

qualifieddistricts(localaffiliates)expensesrepresent32.4%oftheadjustedmembershipfeesrevenue.

10. ACCOUNTING AND AUDITING STANDARDSAsindicatedintheIndependentAuditor’sReport,thesefinancialstatementshavebeenpreparedinaccordance

Canadianaccountingstandardsfornot-for-profitorganizationsandtheauditwasconductedinaccordancewith

Canadiangenerallyacceptedauditingstandards.ThesestandardsareincompliancewiththeCPA(CharteredPro-

fessionalAccountant)CanadaHandbook.

WWW.CHRISTIANFARMERS.ORG

www.facebook.com/CFFOnt@CFFOnt T:519-837-1620