2012 Annual Report

2012 annuAl rEport
Make
Every drop
count
Table
of Contents
04 SOGHU and its partners
05 Standard flow cycle of funds and products
06 SOGHU: an example of efficiency
08 Scoreboard
10
SOGHU Members
12
SOGHU Committees
14
SOGHU Zones
Financial statements
15
Independent auditor’s report
16
Income
17
Changes in net assets
18
Balance sheet
19
Cash flow
20 Notes to financial statements
04
2012 annual report
SOGHU
and its partners
SOGHU, a private non-profit corporation, manages the
recovery and reclamation of products in Québec included
in provincial regulations. The Members covered by this
regulation are defined as Brand Holders or First Importers
who market these products in Québec.
SOGHU is administered by a Board of Directors composed of Members from different
sectors, such as oil manufacturers, filter manufacturers, the petroleum industry,
the automobile manufacturing industry, the antifreeze manufacturing industry, the
cooperative community, major retailers, a representative of RECYC-QUÉBEC and
the Chair of the Awareness Committee. You will notice that SOGHU’s new logo now
includes 5 icons.
The Collectors pick up the products from the Generators and deliver them to the
Processors, who give them a second life.
The Collectors and the Processors registered with SOGHU must prove that their
activities are in compliance with the existing regulations. They are audited regularly.
More than 12,000 Generators (mechanical repair shops or industries) benefit
from a collection service throughout the province. Of this number, over 950 are
registered as Collection Facilities to allow individuals or low-volume businesses to
bring back the listed products, free of charge. We ask those who use this service
to respect the schedules and to not leave products on the ground. All GM and
Toyota dealers, the Monsieur Muffler and Octo mechanical repair shops and several
private mechanical repair shops, as well as several municipalities, are volunteers,
directly involved in improving the environment and providing better service to their
respective customers.
The cost of recovery and reclamation of the hazardous materials for which SOGHU
is responsible is low in proportion to the benefits: $0.04/litre for oil, $0.35/filter
less than 8 inches in length, $0.85/filter 8 inches and more in length, $0.10/litre of
capacity for oil and antifreeze containers, $0.10/litre of mixed antifreeze (50-50) and
$0.16/litre of concentrated antifreeze.
Given that one litre of oil can contaminate one million litres of water, SOGHU’s motto
-“Making every drop count”- is thus easily understood.
Standard flow cycle
of funds and products
MembERs
Brand Holders and the First importers or suppliers
who fund the system at $0.04 per litre for applicable
lubricating oils; $0.10 per litre of antifreeze mix;
$0.16 per litre of antifreeze concentrate (antifreeze
effective July 1st, 2012); $0.10 per litre for oil and
antifreeze containers of 50 litres or less; $0.35 per
filter of 8 inches or less (203 mm height); $0.85 for
filters of more than 8 inches (203 mm or more);
$0.35 cents per sump type filters for automatic
transmissions and $0.25 per aerosol container.
COLLECTORS
PROCESSORS
Establishments that give new life to products.
Establishments that collect the products from
generators and receive subsidies from SOGHU
(additional information see page 14).
products
$ funds
GENERATORS
Establishments that create used products
(garages, vendors, commercial, industrial and
municipal sectors, forestry industry, agriculturists,
transporters, individuals).
COLLECTION FACILITIES
Establishments registered with SOGHU to receive from the public,
at no cost to them, used oil products governed by the Regulation.
06
2012 annual report
SOGHU:
an example of efficiency
Thanks to the great involvement and the professionalism of each of its
partners (Members, Collectors, Processors, Generators, Collection
Facilities, users who return products from their own oil changes),
SOGHU continues to present exemplary financial results and recovery
rates. After reducing the cost of the Environmental Handling Charge
on filters by $0.10 in 2012, SOGHU is glad to introduce new reductions
in 2013; another $0.05 on filters and $0.01/litre on oil. Remarkably,
these reductions are accompanied by maintenance of the recovery rate
between 85% and 90%.
New Regulation, new products
and changes to the former Regulation
Since July 1st, 2012, SOGHU manages new products – vehicle and machinery antifreeze and its
containers of 50 litres or less, as well as brake cleaner aerosol containers. SOGHU’s advertising
thus emphasized the addition of antifreeze to sensitize the Members and Generators as well as the
public at large.
Following the publication of this Regulation, it was necessary to negotiate and sign a new agreement
with RECYC-QUÉBEC in accordance with this Regulation and new agreements with the Members,
Collectors and Processors.
Manufactured goods containing products covered by SOGHU
A study of the percentage of oil consumed in use drew our attention to the large volume of products
covered by SOGHU that were included in original equipments manufactured. For oil alone, this volume
represented 8.8% of the annual sales. In partnership with the Western provinces and in collaboration
with associations of automobiles, light trucks, transportation trucks, heavy farm machinery and
construction machinery manufacturers, SOGHU undertook to find a simple and equitable formula to
quantify the oil, filters and antifreeze marketed annually. Thanks to the great cooperation of Members
and their organizations, this study has been completed and, starting in July 2013, Environmental
Handling Charges will be remitted to the associations on these volumes.
1st row >Mr. Laurent Gagnon, Mr. L. Pierre Comtois, Mr. Julian Cininni, Mr. Gilles Goddard, g.m., Mr. Carol Montreuil, chairman,
Mr. Michael Paul, Mr. Pierre Yves Larose
2nd row >Mr. Paul Granda, Mr. Claude Bourque, Mr. Jean-François Lacasse, Mr. Paul Lefebvre, Mr. François Gingras, Mr. Luc Lortie,
Mr. Robert Huberdeau, v.p., Mr. Marc-André Arsenault, Mr. Raymond Savard, Mr. Guy Bélanger, Mr. Roch Cousineau
Missing > Mr. André Buisson The Atlantic provinces harmonize their Regulations
with Québec and Western Canada
SOGHU worked with New Brunswick for nearly three years on the preparation of a Regulation
harmonized with the Québec Regulation. Due to the very open-minded approach of the New Brunswick
Government representative, we can declare “mission accomplished”. In the past few months, we
learned that Newfoundland and Prince Edward Island, influenced by New Brunswick’s approach, had
finally decided to submit a similar Regulation. We are also delighted that, after agreement among the
provinces, there is only one Board of Directors to manage the Atlantic provinces. ‘SOGHU Atlantic
UOMA’, which will have four distinct branches to respect each province, based on budget and recovery
rate. SOGHU will be the manager.
The Atlantic program, including the Environmental Handling Charges and recovery, should begin
on January 1st, 2014 for the above-mentioned provinces. In collaboration with the provinces, we are
already laying the foundations of the system.
The Board of Directors and SOGHU’s staff are very proud of all the projects and results of this 8th year
of activities. The approach based on exceptional ‘win-win’ partnerships among SOGHU, the Collectors,
the Processors, the Generators and the municipalities continues to be relevant and highlights the
excellent work of all the partners for the past year. Finally, we wish to recognize and thank RECYCQUÉBEC for its excellent cooperation with SOGHU.
In short, we believe that our program represents a module of sustainable development, the balance
between business needs and the needs of society.
Carol Montreuil
Gilles Goddard
Chairman
General Manager
08
2012 annual report
Scoreboard
Summary of sales
and collections for 2012
Products
Sales
Oils (litres)
92 126 966
Filters (units)
Collectable
67 160 558
1
Collected Collection Rate
Objective R-Q
63 408 990
94.4%
75.0%
9 676 239
9 676 239
7 981 002
82.5%
75.0%
Filters (kg)
3 620 7372
3 620 737
2 986 399 3
82.5%
75.0%
Oil Containers (litres)
38 802 567
36 862 439
35 176 905
95.4%
75.0%
Oil Containers (kg)
2 107 945
2 002 548 4
1 910 9825
95.4%
75.0%
Antifreeze (litres)
5 321 268
2 325 394
6
735 174
31.6%
25.0%†
Antifreeze Containers (litres)
2 691 003
2 556 453
1 504 8957
58.9%
25.0%†
114 043
108 3414
63 776
58.9%
25.0%†
Antifreeze Containers (kg)
Oils
Filters
Containers
RI
In litres
%
RI
In kg
%
RI
Oils
%
Zone 1
$0.03
31 353 384
49.45%
$0.65
1 473 932
49.35%
$1.27
708 370
37.07%
Zone 2
$0.04
7 023 140
11.08%
$0.65
357 849
11.98%
$1.70
176 667
9.24%
Zone 3
$0.07
9 197 923
14.51%
$0.80
510 078
17.08%
$1.95
332 819
17.42%
Zone 4
$0.07
2 967 587
4.68%
$0.82
174 426
5.84%
$1.95
176 313
9.23%
Zone 5
$0.07
2 904 139
4.58%
$0.85
137 889
4.62%
$2.25
124 099
6.49%
Zone 6
$0.09
2 184 934
3.45%
$0.90
137 189
4.59%
$2.33
87 164
4.56%
Zone 7
$0.07
2 803 254
4.42%
$0.90
87 620
2.93%
$2.33
126 646
6.63%
Zone 8
$0.10
2 685 417
4.24%
$0.95
50 271
1.68%
$2.55
54 050
2.83%
Zone 9
$0.10
995 110
1.57%
$0.95
15 141
0.51%
$2.55
29 576
1.55%
Zone 10
$0.28
382 633
0.60%
$1.35
3 954
0.13%
$5.25
4 674
0.24%
Zone 11**
$0.28
400 531
0.63%
$1.50
24 067
0.81%
$5.25
15 544
0.81%
Zone 12
$0.20
510 938
0.81%
$0.55
13 984
0.47%
$1.20
75 057
3.93%
$0.05
63 408 990
100.00%
$1.05
2 986 399
100.00%
$1.96
1 910 980
100.00%
Total
*
***
zone LEgend
Zone 1: Montréal
Zone 2: Québec
Zone 3: Centre-du-Québec
Zone 4: Outaouais - Laurentides
Zone 5: Saguenay - Lac-St-Jean
Zone 6: Bas-St-Laurent - Gaspésie
Zone 7: Abitibi
Zone 8: Côte-Nord
Zone 9: Nord-du- Québec
Zone 10: Iles-de-la-Madeleine
Zone 11: Nord du Nord-Québec Basse
Côte-Nord Île d’Anticosti
Zone 12: Municipal
notations LEgend
1 - 72.9% of oils are recyclable
2 - Average weight of filters marketed
< 8” = 0.31487 kg and > 8“ = 1.11053 kg
3 - Actual collections X 0.69
(0.69 = Actual weight of crushed filters)
4 - 95% of containers are recyclable
5 - Actual collections X 94.2% following
the segregation of containers
6 - 43.7% of antifreeze is recyclable
7 - Actual collections X 3.4% following
the segregation of containers
Breakdown: On December 31, 2012
Members278
Collectors26
Processors68
Internal Collector
4
Products
EHC
RI
Oils $$
4 606 348
3 322 954
1 283 394
$0,052/ltr
Filters $$
4 235 300
3 148 627
1 086 673
$0,395/un.
$1,05/kg
Oil Containers $$
4 059 194
3 616 517
442 677
$0,103/un.
$1,89/kg
0
594 709
(594 709)
$0,017/un.
$0,30/kg
Antifreeze $$
479 663
146 654
333 010
$0,199/ltr
Antifreeze Containers $$
269 100
129 433
139 667
$0,086/un.
13 649 606
10 958 894
2 218 035
Decontaminations $$
Containers
Net
Difference
Antifreeze
Average RI
per quantity collected
$2,03/kg
Collection Facilities
Antifreeze
%
Total kg
%
RI
In litres
%
Commercial
Municipal
Total
23 379
36.66%
731 749
37.06%
$0.16
391 044
53.19%
171
87
258
5 901
9.25%
182 568
9.25%
$0.18
110 164
14.98%
60
52
112
11 166
17.51%
343 984
17.42%
$0.23
120 700
16.42%
111
131
242
6 097
9.56%
182 410
9.24%
$0.23
35 891
4.88%
24
73
97
4 388
6.88%
128 487
6.51%
$0.30
20 525
2.79%
30
20
50
2 980
4.67%
90 144
4.56%
$0.34
20 228
2.75%
44
73
117
4 478
7.02%
131 124
6.64%
$0.32
9 797
1.33%
18
33
51
1 838
2.88%
55 888
2.83%
$0.45
8 072
1.10%
13
17
30
1 054
1.65%
30 630
1.55%
$0.45
18 753
2.55%
3
2
5
167
0.26%
4 841
0.25%
$0.50
0
0.00%
6
0
6
528
0.83%
16 071
0.81%
$0.50
0
0.00%
0
3
3
1 800
2.82%
76 857
3.89%
$0.50
0
0.00%
0
0
0
63 776
100.00%
1 974 756
100%
$ 0.20
735 174
100.00%
480
491
971
* Note: For zone 10, Les Iles-de-la-Madeleine, a special transportation RI of $0.18 per litre is allowed for used oils carried to the mainland.
** Note: For zone 11, Nord du Nord-Québec Basse Côte-Nord Île d’Anticosti, a special transportation RI of $0.28 per litre is allowed for used oils
carried to the mainland.
*** Note: Zone 12 is privileged from a particular functioning following a contract with Laurentide re/sources for a specific service to municipalities.
† These rates will be applicable in 2015.
Note: This information is based on remittances received and RIs paid up to March 25, 2013. These figures can change if additional remittances and incentives
are added to this period.
10
2012 annual report
SOGHU
Members
3M Canada Company
7593180 Canada Inc.T/A Pepco Inc.
7729570 Canada Inc. / Thermo King
Montréal
9169-1931 Québec Inc. (VAG
Motorsport)
9189-0731 Québec inc. / Envirolin
Canada
ABB Inc. (Québec)
ABB Inc. (Varennes)
Acklands-Grainger Inc.
ADF Diesel Toronto Ltee.
Aerochem Inc.
Affinia Canada ULC
AGCO Corporation
Agnico-Eagle Mines Ltd, Division
Meadowbank
ALFA Services Conseils inc.
Altrom Canada Corp.
American Grease Stick Co.
Amsoil Inc.
Antirouille Métropolitain
April Super Flo
Arctic Cat Sales Inc
Armored Autogroup Canada ULC
Asalco Inc.
Assemblage Camaz inc.
Atelier HP Ltée
Atelier PV Hydraulique (2004) inc.
Atlas Copco Compressors Canada
Auto Modena Inc.
Auto-Camping Ltd.
Autolectra Inc.
Auto-Moto Canada Inc.
Baldwin Filters Inc.
Baldwin Filters Inc. (DBA Hastings
Filters)
Barjan LLC
Barnes Distribution
BASF Canada Inc.
Beck/Arnley Worldparts, Inc.
Benson Group Inc.
BestBuy Distributors Ltd.
Black Dog Lubricants Ltd.
Blue Water (Quebec) LTD
Blue Water Agencies LTD
Bluewave Energy
BMW Canada Inc.
Bock Inc.
Bosch Rexroth Canada Corporation
BP Lubricants USA Inc.
Bronswerk Marine Inc.
BRP
Busch Vacuum Technics Inc.
Camions Freightliner Rivière-duLoup Inc.
Campbellton Auto Supply
Canadian General Filters Limited
Canadian Kawasaki Motors, Inc.
Canadian Pacific Railway
Carquest Canada Ltd
Castrol Industrial North America Inc.
Centre du Camion J.L. Inc.
Centre Hydraulique Hydrep Inc.
Chalifour Canada
Champion Laboratories, Inc.
Chauffage Premier Inc.
Chem-Ecol Ltd.
Chevron Canada Limited
Chicago Pneumatic Tool Co.
Chrysler Canada Inc.
CNH America Ltd.
Coastal Blending & Packaging
COMAIRCO LTEE
Compresseurs Québec Div. InterPower A.K. Corp.
Control Chemical (1989) Corporation
Contrôle-air Compresseur 2010 Inc.
Cool Distribution inc
Costco Wholesale Canada Ltd.
CPT Canada Power Technology Ltd
CRC Canada Inc.
Cummins Est du Canada SEC
D.A.S. Distributors, Inc.
D.D. Distributions Lubrifiants inc.
Daimler Trucks North America LLC
Denis Gauvin Inc.
Distribution M.C. Opéré par 92222850 Québec Inc.
Distribution Regitan
Distributions J. Pilon enr.
Echo Power Equipment (Canada)
ECL Services inc.
Elso Ltée/Ltd
Empack Spraytech inc.
Engrenage Provincial Inc.
Eni USA R&M Co. Inc.
Entrepôt de Montréal 1470 Inc.
Entreprises Électriques Nadco Inc.
Équipement SMS Inc.
Équipements E.M.U. ltée
Équipements Labrie Ltée
Équipements Lourds Papineau Inc.
Evans 2000 Ltd
Fastenal Canada, LTD
Federated Co-operatives Limited
Ford Motor Company of Canada Ltd.
For-Min Div. DK Spec Inc.
FRAM Group (Canada) Inc.
Fred Deeley Imports Ltd
Fuchs Lubricants Canada Ltd.
Fullbore Marketing Ltd
G.F. Thompson Company Limited
G.K. Industries Ltd.
Gamma Sales Inc.
Garage Guy Audet
Garage R. Nadeau
Gates Canada Inc.
Gauvin Équipement Inc.
GEA WestfaliaSurge, Inc.
General Electric Canada Transportation Systems
General Motors du Canada Limitée
Gilles Cusson Inc.
Granby Industries Limited
Partnership
Grenier Poulin inc.
Groupe BMR inc.
Hall-Chem MFG Inc.
Hangsterfer’s Laboratories
Incorporated
Henkel Canada Corporation
Hewitt Équipement Limitée
Home Depot of Canada Inc.
Home Hardware Stores Limited
Honda Canada Inc.
Houghton Canada Inc.
HP Autosport
Hudson’s Bay Co.
Husqvarna Canada Corp.
Hydralogie Inc.
Hydromec Inc.
Hyundai Auto Canada Corp.
Importations Thibault Ltée
Inter Outaouais Inc.
J. Walter Compagnie Ltée
Jacques Larochelle Inc.
Jaguar Land Rover Canada
Jig-A-Loo Canada Inc.
John Deere Canada ULC
Kaeser Compresseurs Canada inc
Kia Canada Inc.
Kimpex Inc.
Kinecor Inc.
King-O-Matic Industries Limited
Kleen-Flo Tumbler Industries Limited
Krown Corporate
Kubota Canada Ltd.
La Coop fédérée
Laboratoires St-Antoine inc.
Le Groupe GLM Inc.
Le Groupe Harnois Inc.
Le Groupe Pétrolier Olco Inc.
Les Compagnies Loblaw Limitées
Les Distributions Automont Inc.
Les Distributions R.V.I. Ltée
Les Entreprises Ethier Hi-Tech Inc.
Les Équipements Industriels IBS Inc.
Les Industries Gotham inc.
Les Industries Spectra/Premium Inc.
Les Industries Technika Inc
Les Industries Wajax Limitée
Les Lubrifiants Sentinel Corp.
Les Pétroles R.L. Inc.
Les Pétroles Sonic (Coopérative
Fédérée de Québec)
Les Pièces d’Auto T.D.G. Inc.
Les Pièces d’Auto Transbec Inc.
Les Pièces d’Auto Transit Inc.
Les Pièces de Transmission Unitrans
Ltée.
Les Services Maintech
Lubri-Expert Inc.
Lubrifiants et Produits Spécialisés
Kenbec Inc.
Lubrifiants Petro-Canada inc.
Lubrification Québec Inc.
Lubri-Lab Inc.
Lucas Oil Products
M & M Fournels Corp. Ltd
MacEWEN PETROLEUM INC.
Machinerie R. Gagnon inc.
Magnéto Hydraulique et Pneumatique
Malmberg Truck Trailer Equipment Ltd
Matech BTA Inc.
Maxim Transportation Services Inc.
Mazda Canada Inc.
MCS-Servo Inc.
Mechanick Pieces d’Autos (144597
Canada Inc.)
Mercedes-Benz Canada Inc.
MFTA Canada Inc.
Milacron Canada, division of Milacron
Canada Corp
Mitsubishi Motor Sales of Canada
Modern Sales Co-op
Montreal 4 Cylindres - Pièces Inc.
Motion Industries (Canada) Inc.
Motor Coach Industries Limited
Motovan Corporation
National Energy Equipment Inc.
National Pneumatic inc
Navistar Canada, Inc.
New Flyer Industries Ltd.
Nissan Canada Inc.
NLS Products
Nynas Canada Inc.
Oto-Protec Inc.
Paccar Parts, A Division of Paccar of
Canada, Ltd
Para-Performance inc
Parker Hannifin Canada
Parts Canada
Pennzoil-Quaker State Canada Inc.
Permatex Canada
Pétroles Petro-Canada 6989641
Canada Inc
Pétrolière Impériale
Philippe Gosselin & Associés Limitée
Pièces d’Auto J.L. Ltée
Pièces d’Autos Jean Leblanc
Pièces d’Autos Ultra Chateauguay inc.
Pièces de Camion de la Beauce Inc.
Polaris Industries Ltd.
Porsche Cars North America Inc.
Prévost, une division de Groupe Volvo
Canada Inc.
PRINOTH LTD
Produits Chimiques Magnus Ltée
Produits Industriels Kara Inc.
Produits Lubri-Delta Inc.
Produits Shell Canada Limitée
Prolab Technolub Inc.
Radiator Specialty Company of
Canada Ltd.
Recochem Inc.
Regional Automotive Warehousing Ltd
Réseau C.B. (Div. Canadian Bearings)
Ridge Tool Company
Robco Inc.
Robert Bosch Inc.
Rona inc.
SC CLS Holdings ULC
Sears Canada Inc.
Service de Filtres Sefor Inc.
Shoreline Lube Distribution Inc.
Siemens Transformateurs Canada Inc.
Sinto Inc.
Société Laurentide Inc.
Southwestern Petroleum Canada Ltd.
Spécialités Hipertech inc.
State Industrial Products
STIHL Limited
Subaru Canada Inc.
Suzuki Canada Inc.
Systèmes de Distribution Intégrés LP
Div Detroit Diesel Allison Canada East
(1995)
Target Canada Co.
TEC Automotive Industries Inc.
Technologies de procédé WARCO
Teklub Canada Ltée
Teklub Distribution inc.
Texas Refinery Corp. of Canada Ltd.
The North West Company Inc.
The Sherwin-Williams Co.
Thermal-Lube Inc.
Total Lubrifiants Canada Inc.
Toyota Canada Inc.
Transformateurs Pioneer Ltée
TruServ Canada Inc.
UAP Inc.
Ultramar Ltée
Uni-Sélect Québec inc.
Valley Napa Auto Parts
Valvoline Canada Limitée
Verco International inc.
Vermeer Canada Inc
Viscosity Oil Company
Volkswagen Canada Inc.
Volvo Cars of Canada Corp.
Volvo Group Canada Inc.
Wainbee Limited
Wakefield Canada Inc.
Wal-Mart Canada Corp.
WD-40 Company (Canada) Ltd.
Westpier Marine & Industrial Supply inc.
Worldpac Canada Inc.
Wynn’s Canada Ltd
Yamaha Motor Canada Ltd.
12
2012 annual report
SOGHU
Committees
SOGHU’S board of directors
Affinia Canada ULC
Marc-André Arsenault
Association canadienne des constructeurs de véhicules (ACCV)
L. Pierre Comtois
Beck/Arnley (Division Uni-Select)
Raymond Savard
Costco Wholesale Canada Ltd
Luc Lortie
Association canadienne des carburants
Carol Montreuil
La Coop fédérée
François Gingras
Lufrifiants Chevron Canada inc.
Pierre-Yves Larose
Pétrolière Impériale
Jean-François Lacasse
Produits Shell Canada Limitée
Guy Bélanger
Recochem inc.
Paul Lefebvre
Robert Bosch Inc.
Roch Cousineau
Société Laurentides inc.
André Buisson
Total Lubrifiants Canada inc.
Julian Cininni
Valvoline Canada Limitée
Michael Paul
Wakefield Canada Inc.
Robert Huberdeau
RECYC-QUÉBEC
Claude Bourque
Awareness Committee President
Laurent Gagnon
General Manager
Gilles Goddard
Legal advisor, Gowling, Lafleur, Henderson s.r.l.
Paul Granda
legal council
Gowling, Lafleur, Henderson s.r.l.
SOGHU’s Awareness committee
CAA-Québec
Paula Landry
Campor Environnement inc.
Laurent Gagnon
Conseil Québecois du Commerce de Détail
Françoise Paquet
SOGHU’s General Manager
Gilles Goddard
Front Commun Québecois pour
une Gestion écologique des Déchets
Karel Ménard
Gaudreau Environnement inc.
Réal Fortin
Ministère du Développement durable
de l’Environnement et des Parcs
Darijo Bosnjak
RECYC-QUÉBEC
Claude Bourque
Union des Municipalités du Québec
Marieke Cloutier
EmployEEs AND conSULTANTs
Gilles Goddard
General Manager
Diane Caron
Assistant to General Manager
Magalie Morrissette, CPA, CMA
Controller
Carmen Mensher
Accounting Manager
Kim DeMaisonneuve
Administrative Assistant
Joël Ouimet
Field Inspector
Auditors
LEHOUX BOIVIN COMPTABLES AGRÉÉS SENC
4255, Blvd. Lapinière, Suite 300, Brossard (Québec) J4Z 0C7
2012 annual report
14
SOGHU
Zones
zone LEgend
Zone 1
Zone 2
Zone 3
Zone 4
Zone 5
Zone 6
Zone 7
Zone 8
Zone 9
Zone 10
Zone 11
Montréal
Québec
Central Québec
Outaouais – Laurentides
Saguenay – Lac-St-Jean
Bas-St-Laurent – Gaspésie
Abitibi
Côte-Nord
Nord-du-Québec
Les Îles-de-la-Madeleine
Nord du Nord-Québec
Basse Côte-Nord
Île d’Anticosti
Subsidy Table
ZONE
USED
OIL
($/litre)
USED
ANTIFREEZE
(45-55)
($/litre)
USED OIL AND
USED ANTIFREEZE
Containers
($/kg)
AEROSOL
($/kg)
(Starting
July 1st, 2012)
USED
FILTERS
($/kg)
(Rate as of February 1st, 2008
and used antifreeze containers
starting July 1st, 2012)
(As of
August 1st, 2006)
1
0.03
0.16
0.65
1.27
3.67
2
0.04
0.18
0.65
1.70
3.67
3
0.07
0.23
0.80
1.95
3.84
4
0.07
0.23
0.82
1.95
3.84
5
0.07
0.30
0.85
2.25
3.87
6
0.09
0.34
0.90
2.33
3.92
7
0.07
0.32
0.90
2.33
3.97
8
0.10
0.45
0.95
2.55
3.97
9
0.10
0.45
0.95
2.55
3.97
101
0.10
0.50
1.35
5.25
4.37
11 (Boundary
post to zone as of
January 1st, 2012)
0.10
0.50
1.50
5.25
4.37
12 3 Municipal
0.20
0.50
0.55
1.20
0.55
2
1 For zone 10, Les Îles-de-la-Madeleine,
a special transportation return incentive
of $0.18/litre is allowed for used oils
and used ntifreeze (antifreeze starting
July 1st, 2012) carried to the mainland.
2F
or zone 11, Nord du Nord-Québec
Basse Côte-Nord Île d’Anticosti, a special
transportation return incentive of $0.28/litre
is allowed for used oils and used antifreeze
(antifreeze starting July 1st, 2012) not
processed in Zone 11/ Zone 11 cities: BlancSablon, Brador, Chevey, Fermont, Harrington
Harbourg, Kefaska, La Romaine, La Tabaièere,
lourdes-de-Blanc-Sablon, Middle Bay, Mutton
Bay, Old for Bay, Pakua Shipi, Port Menier
(Île d’Anticosti), St‑Augustin, St‑Paul’s River,
Tête-à-la‑Baleine.
3 Zone 12 is privileged from a particular
functioning following a contract with
Laurentide re/sources for a specific service
to municipalities.
NOTE: For information concerning RI rates
for Internal Collectors Processors, please
contact SOGHU.
Independent Auditor’s
Report
To the Members of Société de gestion des huiles usagées (SOGHU)
We have audited the accompanying financial statements of SOCIÉTÉ DE GESTION DES HUILES USAGÉES (SOGHU), which
comprise the balance sheet as at December 31, 2012 and the statements of income, changes in net assets and cash flow
for the 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 internai 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 Responsibility
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. These 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 on 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. ln making those risk assessments, the auditor
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 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.
Opinion
ln our opinion, the financial statements present fairly, in all material respects, the financial position of the SOCIÉTÉ DE
GESTION DES HUILES USAGÉES (SOGHU) as at December 31, 2012, and the results of its operations and cash flows for
the year then ended in accordance with Canadian accounting standards for not-for-profit organizations.
Comparative Information
Without modifying our opinion, we draw attention to Note 13 of the financial statements, which explains that the SOCIÉTÉ
DE GESTION DES HUILES USAGÉES (SOGHU) adopted Canadian accounting standards for not-for-profit organizations on
January 1st, 2012 with a transition date of January 1st, 2011. These standards were applied retrospectively by management
to the comparative information in these financial statements, including the statements of financial position as at
December 31, 2011 and January 1st, 2011, and the statements of operations, changes in net assets and cash flow for the
year ended December 31, 2011 and related disclosures. We were not mandated to report on the restated comparative
information, and as such, it is unaudited.
1
Lehoux Boivin
Brossard, April 8, 2013
1
CPA auditer, CA, public accountancy permit No A103967
16
2012 annual report
Income
FOR THE YEAR ENDED DECEMBER 31, 2012
2012
$
2011
$
13 730 626
8 000
359 881
14 037 089
9 400
322 440
39 676
58 118
14 196 301
25 399
24 270
14 418 598
10 459 291
594 709
50 053
53 170
449 806
296 943
50 562
250 071
56 211
80 800
108 170
26 280
12 476 366
10 330 364
543 870
27 643
48 539
260 725
336 521
8 052
198 609
65 223
6 186
44 735
37 360
11 907 827
145 230
11 184
27 900
239 973
12 075
8 807
445 169
12 921 535
168 979
26 555
30 225
253 381
1 287
12 348
492 775
12 400 602
1 274 766
2 017 996
REVENUES
Environmental handling charges
Registration and renewal
lnterest
Support of RECYC-QUÉBEC to the advertising
and communications expenses
Support of RECYC-QUÉBEC to the container segregation and studies
EXPENSES
Program
Return incentives
Process incentives
Collection facilities incentives
Container segregation
Advertising and communications
Contribution to RECYC-QUÉBEC
Legal fees
Salaries, fringe benefits and management & administration contracts
Office and general expenses
Consulting fees
Compliance reviews and audits
Depreciation - fixed assets
Administration
Office and general expenses
Legal fees
Rent
Salaries, fringe benefits and management & administration contracts
Professional fees
Depreciation - fixed assets
EXCESS OF REVENUE OVER EXPENSES
The accompanying notes are an integral part of the financlal statements
Changes
in net assets
FOR THE YEAR ENDED DECEMBER 31, 2012
BALANCE, BEGINNING OF YEAR
Excess {deficiency) of revenue
over expenses
lnvestment in fixed assets
Amount restricted on October 22, 2012
{Note 7)
BALANCE, END OF YEAR
Unrestricted
Reserve
fund
2 412 597
1 309 853
9 200 000
–
(19 170)
(1 000 000)
–
1 000 000
19 170
–
–
–
–
–
2 703 280
10 200 000
48 867
12 952 147
11 677 381
The accompanying notes are an integral part of the financial statements
lnvested in
fixed assets
2012
$
2011
$
64 784 11 677 381
(35 087)
1 274 766
9 659 385
2 017 996
18
rapport
2012
annual
annuel
report
2012
Balance Sheet
At decembER 31, 2012
December 31
2012
$
December 31
2011
$
January 1st
2011
$
(note 13)
715 696
3 957 191
2 675
800 000
5 475 562
9 400 000
48 867
14 924 429
891 001
3 591 215
3 106
1 500 000
5 985 322
7 700 000
64 784
13 750 106
913 511
3 875 819
7 610
800 000
5 596 940
5 900 000
106 838
11 603 778
1 972 282
2 072 725
1 944 393
12 952 147
14 924 429
11 677 381
13 750 106
9 659 385
11 603 778
ASSETS
Current assets
Cash
Accounts receivable (Note 3)
Prepaid expenses
Current portion of investments
lnvestments (Note 4)
Fixed assets (Note 5)
LIABILITIES
Current liabilities
Accounts payable (Note 6)
NET ASSETS
On behalf of the Board,
Mr. Carol Montreuil, Director
Mr. Robert Huberdeau, Director
The accompanying notes are an integral part of the financial statements
Cash Flow
FOR THE YEAR ENDED DECEMBER 31, 2012
2012
$
2011
$
13 453 947
343 259
(12 953 341)
843 865
14 414 482
288 719
(12 218 057)
2 485 144
(2 500 000)
1 500 000
(19 170)
(1 019 170)
(3 300 000)
800 000
(7 654)
(2 507 654)
(175 305)
(22 510)
891 001
913 511
715 696
891 001
OPERATING ACTIVITIES
Cash receipts – members
Cash receipts – interest and others
Cash paid – suppliers and employees
INVESTING ACTIVITIES
Acquisition of investments
Cashing of investments
Acquisition of fixed assets
Decrease in cash and cash equivalents
Cash and cash equivalents, beginning of year
Cash and cash equivalents, end of year
The accompanying notes are an integral part of the financial statements
20
2012 annual report
Notes
to financial statements
FOR THE YEAR ENDED DECEMBER 31, 2012
1. STATUTES AND NATURE OF ACTIVITIES
The organization is incorporated under Part Ill of Quebec Companies Act. According to the Federal and Provincial lncome
Tax Acts, it is a non-profit organization and is therefore exempt from income taxes.
According to the terms of a consent agreement with RECYC-QUÉBEC, the company has the mandate to establish and
manage a program for recovery and reclamation of used oils and antifreeze, oil or fluid containers and used filters.
2. SIGNIFICANT ACCOUNTING POLICIES
The financial statements were prepared in accordance with Canadian accounting standards for not-for-profit organizations
(ASNFPO) and include the following significant accounting policies:
Use of estimates
The 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 incentives
Return incentives expenses are recognized when the lubricating oil and antifreeze and/or containers and filters are
collected by a SOGHU registered Collecter.
Processing incentives
Processing incentives expenses are recognized when the lubricating oil containers are processed by a SOGHU
registered Processor.
2. SIGNIFICANT ACCOUNTING POLICIES (Continued)
Financial instruments
Measurement of financial instruments
The 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.
lmpairment
Financial 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.
Cash and cash equivalents
Cash 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 recognition
Revenue 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.
22
18
rapport
2012
annual
annuel
report
2012
Notes
to financial statements
FOR THE YEAR ENDED DECEMBER 31, 2012
2. SIGNIFICANT ACCOUNTING POLICIES (Continued)
Fixed assets
Fixed assets are accounted for at cost and depreciation on the basis of their useful life using the following method and rates.
Computer hardware Computer software Collection equipment Furniture and fixtures
33%
100%
20%
20%
Expense allocation
The society displayed its expenses by function.
Salaries, fringe benefits and management & administration contracts shared by program and administration functions are
allocated proportionally to hours spent as follow:
Management & administration contracts – manager
Salaries, fringe benefits and management & administration contracts
ProgramAdministration
70% from 10% to 30% 30%
from 70% to 90%
Legal fees, which are not specifically allocated to the program or administration are allocated on 20% to legal fees – program
and 80% to legal fees – administration.
3. ACCOUNTS RECEIVABLE
Accounts receivable
Sales taxes receivable
Accrued interest receivable
4. INVESTMENTS
Term deposits, bearing interest at rate from 2.6% to 4.7%,
maturing from February 2013 to October 2017
Current portion of investments
5. FIXED ASSETS
Computer hardware
Computer software
Collection equipment
Furniture and fixtures
6. Accounts payable
Trade
Wage payable
Benefits payable
Others
Cost
21 514
10 470
248 000
50 334
330 318
Accumulated
amortization
17 764
–
220 840
42 847
281 451
2012
$
2011
$
3 659 878
95 616
201 697
3 957 191
3 367 181
38 959
185 075
3 591 215
2012
$
2011
$
10 200 000
800 000
9 400 000
9 200 000
1 500 000
7 700 000
2012
$
2011
$
Net value
3 750
10 470
27 160
7 487
48 867
Net value
7 074
–
45 440
12 270
64 784
2012
$
2011
$
1 845 013
1 164
7 446
118 659
1 972 282
1 813 414
1 734
7 928
249 649
2 072 725
7. RESTRICTED ASSET
On October 22, 2012, the Board of Directors internally restricted an increase of the reserve of $1,000,000, for the total amount
of $10,200,000, from unrestricted net assets to be held in case of proceedings against the society, program dissolution,
unexpected changes in programs or mandate or other unexpected situations. This internally restricted amount is not
available for other purposes without approval of the Board of Directors.
24
2012 annual report
Notes
to financial statements
FOR THE YEAR ENDED DECEMBER 31, 2012
8. COMMITMENTS
Agreement
The society has a consent agreement with RECYC-QUÉBEC until December 31, 2015, which is renewable annually. The new
agreement was approved on October 22, 2012. ln accordance with this agreement, the society must collect Environmental
Handling Charges from its members and pay a financial contribution to RECYC-QUÉBEC. Also, the society must obtain
compliance reviews for selected firms by SOGHU and has to pay its fees.
Management and administration services
Under the terms of a management agreement, the society is charged a fee for provision of management services until
June 2015.
Software and technology services
The organization is committed for 2013 and 2014 regarding the execution of software and technology services.
Compliance reviews
The organization is committed until 2015 regarding the execution of the compliance reviews. The estimated minimum
annual payments under this commitment cannot be determined at this time.
Rent
The society has a lease commitment until November 2014 for the rental of office space.
Minimum payments
The estimated minimum annual payments required under these agreements are as follows:
2013
2014
2015
Management and
administration
$
Rent
$
222 220
197 900
91 800
511 920
27 900
25 575
–
53 475
9. RELATED PARTY TRANSACTIONS
In the regular course of its business, the society receives Environmental Handling Charges from its members and pays Return
lncentives to Collectors and Processors. Some members and one Collecter (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 of the society.
The principal transactions concluded with members of the Board of Directors of the society during the year are as follows:
2012
$
2011
$
3 225 605
200
97 794
3 437 408
200
49 669
709 572
296 943
851 352
336 521
Revenues
Environmental handling charges
Registration and renewal
Support of RECYC-QUÉBEC to expenses
Expenses
Return incentives
Contribution to RECYC-QUÉBEC
Finally, the accounts receivable include an amount of $774,755 (2011: $560,985) to be received from companies
managed by members of the Board of Directors and the accounts payable include $242,032 (2011: $297,936)
to be paid to companies and organizations managed by members of the Board of Directors.
10. EXPENSES ALLOCATION
Salaries, fringe benefits and management & administration contracts and legal fees were allocated as follows:
Salaries, fringe benefits
and management &
administration contracts
Legal fees
Program
Administration
2012
$
2011
$
2012
$
2011
$
50 862
11 184
8 052
26 555
250 071
239 937
198 609
253 381
62 046
34 607
490 044
451 990
26
2012 annual report
Notes
to financial statements
FOR THE YEAR ENDED DECEMBER 31, 2012
11. FINANCIAL INSTRUMENTS
Credit risk
ln the regular course of its operations, the society monitors the members that did not produce monthly remittance forms
and did not remit Environmental Handling Charges.
The society is not exposed to any significant risk with respect to a credit concentration.
Market risk
The society is exposed to the interest rate risk, which is the risk on which the fair value of a financial instrument will
fluctuate because of changes in market interest rates.
12. RECLASSIFIED ACCOUNTS
Some accounts in the financial statements of the previous year have been reclassified to conform with disclosure adopted
in the current year.
13. IMPACT OF THE CHANGE IN THE BASIS OF ACCOUNTING
These financial statements are the first financial statements prepared in accordance with Canadian accounting standards
for not-for-profit organizations (ASNFPO).
The financial statements for the year ended December 31, 2012 were prepared in accordance with the accounting
principles described and the provisions set out in Section 1501, First-time Adoption, of the CICA Handbook – Accounting
for first-time adopters of this basis of accounting.
The adoption of these standards impacted the net assets at the time of transition, being January 1st, 2011.
$
Reconciliation of net assets at January 1st, 2011
Net assets at January 1st, 2011
Accumulated gains directly recorded at changes in net assets
Net assets at January 1st, 2011 according to the previous financial statements
9 659 385
76 525
9 735 910
Changes in net assets
Write-off of the accumulated gains directly recorded at changes in net assets
on investments held for trading (A)
(76 525)
9 659 385
Net assets at January 1st, 2011 according to the ASNFPO
(A) Investments
According to the previous basis of accounting, its investments were recorded at the fair value as financial assests held
for trading and accumulated gains were directly presented at changes in net assets. As the organization did not designate
its investments as financial assets at the fair value following the first-time adoption of these standards, the organization
initially measures its investments at fair value and subsequently measures them at amortized cost. lnvestments were
adjusted but there was no impact on the excess of revenue over expenses.
$
lnvestments
According to
previous financial
statements
Variations
at changes
in net assets
According to
ASNFPO
5 976 525
(76 525)
5 900 000
Société de gestion des huiles usagées
1101 Blvd. Brassard, Suite 214, Chambly (Québec) J3L 5R4
Phone: 450 447-9996 | Fax: 450 447-9988
E-mail: [email protected] | www.soghu.com
Toll free:
1 877 98-SOGHU (1 877 987-6448)
Make every drop count!