2014 Annual Report

2014 ANNUAL REPORT
A Gesture That
Benefits All
Table of Contents
SECTION
1 SOGHU... 10 Years Already!
2 Standard Flow Cycle of Funds and Products
3 SOGHU: A Win-Win Approach
4 Scoreboard
5 SOGHU Members
6 SOGHU Committees
7 SOGHU Zones
4
5
6
8
10
12
14
Financial Statements
SECTION
8 Independent Auditor’s Report
9 Income
10 Changes in Net Assets
11 Balance Sheet
12 Cash Flow
13 Notes to Financial Statements
15
16
17
18
19
20
3
1
SOGHU… 10 years already!
Standard Flow cycle
of Funds and Products
Since 2005, SOGHU, a private non-profit corporation, has managed the
recovery and reclamation throughout Québec of the products subject to the
Regulation respecting the recovery and reclamation of products by
enterprises. Its Board of Directors is composed of representatives from
different sectors, such as oil manufacturers, filter manufacturers, the
petroleum industry, the automobile manufacturing industry, the antifreeze
manufacturing industry, cooperatives, major retailers, a representative of
RECYC-QUÉBEC and the president of a vigilance committee. Today, SOGHU
is easily recognized by its logo, which includes the six icons representing the
products for which it is responsible.
The Collectors registered with SOGHU collect the
designated products from the Generators and deliver them
to Processors, also registered with SOGHU, to give them
a second life. The Collectors and the Processors registered
with SOGHU must prove their activities are in compliance
with the existing regulations. They are also audited at least
once every four years.
More than 12,000 Generators, mechanical repair shops
or industries, are served by a collection service throughout
the province. Over 1,000 of them are registered as
Collection Facilities to allow individuals or low-volume
businesses to return the designated products free of
charge. We thank them for this service. We ask those who
use this service to respect the schedule and not leave
products unsupervised. All GM and Toyota dealers,
Monsieur Muffler and Octo mechanical repair shops,
several private mechanical repair shops and several
municipalities are voluntarily directly involved in improving
the environment and better serving their respective
clienteles.
MEMBERS
Brand Owners who fund the system at $0.04 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; $0.35 per filter of
8 inches or less or 203 mm in height; $0.85 per
filter of more than 8 inches or 203 mm or more;
$0.35 per sump type filters for automatic
transmissions and $0.25 per aerosol container.
Thanks to rigorous management and an exceptional
partnership with the Collectors and Processors, SOGHU
ranks with one of the best recovery rates and the lowest
system costs in Canada.
Out of concern for harmonization and administrative
efficiency, SOGHU has made a management agreement
with its Atlantic sister association, SOGHU OMA, at no
charge. The agreement represents a substantial saving
for both associations.
SOGHU is recognized by Québec, New Brunswick and
Prince Edward Island to manage the programs in those
provinces and is working closely with Newfoundland,
Labrador and Nova Scotia for the introduction of their
respective regulations in the near future.
2
COLLECTORS
Establishments registered with
SOGHU that collect the products
from Generators and receive subsidies from SOGHU (for additional
information see page 14)
PROCESSORS
Establishments registered with SOGHU that
give a second life to products
COLLECTION FACILITIES
GENERATORS
Establishments registered with SOGHU to receive
from the small Generators, at no cost to them, used
oil products governed by the Regulation
Establishments that generate used products (garages,
dealers, commercial, industrial and municipal sectors,
forestry, agriculture, transporters, individuals)
PRODUCTS
$ FUNDS
4
2014 ANNUAL REPORT
5
3
SOGHU:
A Win-Win Approach
Efficiency, partnerships, performance
In the development and implementation of its program, SOGHU has always
favoured win-win partnerships, whether with the Members who finance the
system, the Collectors who are the key players in the field, the Processors who
ensure the products have a second life, or the Generators, more than a thousand
of which are registered as Collection Points to offer individuals and small
businesses who do their own oil changes the possibility of returning regulated
used products free of charge.
SOGHU, over its first ten years, has been able to establish noteworthy
performance standards. Tight management has allowed it to reduce its Members’
Environmental Handling Charges and simplify the system’s administration and
management by integrating electronic payments, while maintaining recovery
rates that exceed regulatory expectations.
The Atlantic provinces form a Board of Directors: SOGHU OMA
Even though SOGHUOMA has its own independent Board of Directors that includes the four Atlantic
provinces, SOGHU is mandated, under an agreement, to manage the SOGHUOMA program in order to
optimize management, performance and system costs for each of the Atlantic provinces.
New Brunswick has just completed its first year of operation, while Prince Edward Island finalized and
adopted its Regulations and recognized SOGHUOMA as managing agent of its program. Over the past
year, SOGHU has also collaborated with the Newfoundland and Labrador Department of Environment
and Nova Scotia Environment on the development of their respective future regulations.
The Members of the Board of Directors and the staff of SOGHU are very proud of all the projects and
results of this 10th year of activities. The approach based on outstanding “win-win” partnerships among
SOGHU, Collectors, Processors, Generators and Municipalities continues to be relevant and, for this tenth
year, highlights the excellent work of all the partners.
We also wish to mention and thank RECYC-QUÉBEC for the excellent cooperation it maintains with SOGHU.
SOGHU continues its sustainable development approach
Due to the development and implementation of an electronic data entry system during pickup of products by Collectors,
SOGHU’s employees will no longer have to verify over 12,000 pages of data per month coming from the Generators.
Thanks to geocoding, the financial incentives granted to products and zones will be calculated automatically, eliminating
numerous errors. In addition, because the Collectors’ internal management systems required several copies, they will
now save three to four times the number of pages saved by SOGHU. In addition, this program allows Collectors to
use the same platform for independent management of the other products they recover. This program will also be
implemented for the Collectors registered with SOGHUOMA once all the Quebec Collectors are integrated.
In short, we believe our program represents a sustainable development model, balancing environmental
benefits, business requirements and the needs of society.
Carol Montreuil
Chairman of the Board
Gilles Goddard
General Manager
Partnership with the four recognized
management organizations (RMO)
in Québec
With a constant concern for efficiency and harmonization,
SOGHU works with the four other Québec RMOs (paint,
electronics, batteries and fluo-compacts) to improve
coherence in the application of the Regulation respecting
the recovery and reclamation of products by enterprises
and the resulting agreements with RECYC-QUÉBEC. For
example, the five RMOs work in collaboration for the
implementation of recovery of products in NUNAVIK.
1st row > Mr. Paul Granda – Mr. Maxime Rivet – Mr. Michael Paul – Mrs. Loulia Kouchaji–Mr. Carol Montreuil, prés. – Mr. Gilles Goddard, DG –
Mr. L. Pierre Comtois – Mr. Jean Duchesneau – Mr. Jean-François Lacasse – 2nd row > Mr. François Gingras – Mr. Pierre-Yves Larose –
Mr. Serge Ouellette – Mr. Guy Bélanger – Mr. Roch Cousineau – Mr. Laurent Gagnon – Mr. Paul Lefebvre – Mr. Benoit Camirand –
Not shown in photo > Mr. Alain Gariépy – Mr. Robert Huberdeau – Mrs. Chantale Mantha – Mr. Raymond Savard
6
2014 ANNUAL REPORT
7
4
Scoreboard
Sales and Recovery Summary – January to December 2014
Measurements
Oils
litres
102,846,382
units
10,497,275
10,497,275
kg
3,676,8172
3,676,817
39,356,223
39,356,223
2,378,255
2,378,255
Glycol (antifreeze) litres
16,030,905
7,005,5066
litres
5,584,560
5,584,560
242,889
242,889
Filters
Oil Containers
Glycol (antifreeze)
Containers
litres
kg
kg
Sales
Reused
5 %
Products
Recoverable
Reused –
Recuperated (%)
63,150,651
84.2%
75.0%
8,159,747
77.7%
75.0%
2,858,0653
77.7%
75.0%
1,967,8114
35,920,7985
96.3%
75.0%
118,913
2,170,656
96.3%
75.0%
1,482,146
21.2%
25.0%***
1,217,677 7
21.8%
25.0%***
21.8%
25.0%
74,975,0131
4
5
52,960
4
Oils
Zone
Recuperated
Filters
RI
In Litres
%
1
$0.03
30,965,346
49.03%
2
$0.04
7,245,860
3
$0.07
4
RI
Objective
R-Q
Oil
%
$0.65
1,387,039
48.53%
$1.27
839,819
38.69%
11.47%
$0.65
339,095
11.86%
$1.70
217,442
9,158,276
14.50%
$0.80
475,012
16.62%
$1.95
$0.07
2,974,657
4.71%
$0.82
170,399
5.96%
5
$0.07
2,973,107
4.71%
$0.85
126,345
6
$0.09
2,231,646
3.53%
$0.90
7
$0.07
2,630,104
4.16%
8
9
10
$0.10
1,302,698
$0.10
$0.28*
11
$0.28**
12
Total
4
6
4,122,584
3,392,623
729,961
729,961
$0.054/l
Filters
4,076,734
3,111,333
965,401
965,401
$0.381/un.
$1.09/kg
Oil Containers
4,509,607
3,925,914
583,693
583,693
$0.109/un.
$1.81/kg
0
619,687
619,6878
(619,687)
$0.017/un.
$0.30/kg
$0.232/l
Processing
Glycol (antifreeze)
Glycol (antifreeze) Containers
Average RI per quantity collected
1,498,656
343,292
1,155,365
1,155,365
558,456
112,526
445,930
445,930
14,766,038
11,505,375
$0.092/un.
$2.12/kg
3,260,663
Glycol
(antifreeze)
Collection Facilities
Antifreeze
%
Total kg
%
RI
In Litres
%
18,526
34.98%
858,345
38.60%
$0.16
655,231
44.21%
175
100
275
10.02%
5,768
10.89%
223,210
10.04%
$0.18
214,155
14.45%
59
54
113
338,020
15.57%
8,822
16.66%
346,843
15.60%
$0.23
256,107
17.28%
105
141
246
$1.95
186,552
8.59%
5,119
9.67%
191,671
8.62%
$0.23
46,228
3.12%
23
76
99
4.42%
$2.25
135,223
6.23%
3,727
7.04%
138,950
6.25%
$0.30
52,159
3.52%
30
20
50
125,293
4.38%
$2.33
87,083
4.01%
2,340
4.42%
89,423
4.02%
$0.34
39,433
2.66%
44
76
120
$0.90
96,989
3.39%
$2.33
128,557
5.92%
3,302
6.24%
131,859
5.93%
$0.32
23,300
1.57%
18
34
52
2.06%
$0.95
51,420
1.80%
$2.55
75,610
3.48%
2,013
3.80%
77,622
3.49%
$0.45
13,560
0.91%
13
21
34
868,954
1.38%
$0.95
20,509
0.72%
$2.55
48,646
2.24%
1,274
2.41%
49,921
2.25%
$0.45
1,566
0.11%
3
2
5
294,969
0.47%
$1.35
4,924
0.17%
$5.25
4,205
0.19%
116
0.22%
4,321
0.19%
$0.50
0
0.00%
6
0
6
1,897,889
3.01%
$1.50
50,227
1.76%
$5.25
17,524
0.81%
382
0.72%
17,906
0.81%
$0.50
113,667
7.67%
0
3
3
$0.20
607,146
0.96%
$0.55
10,811
0.38%
$1.20
91,975
4.24%
1,571
2.97%
93,546
4.21%
$0.50
66,739
4.50%
0
0
0
$0.05
63,150,652
100.00%
$1.09
2,858,064
100.00%
$1.97
2,170,655
100.00%
52,960
100.00%
2,223,616
100.00%
$0.23
1,482,145
100.00%
476
527
1 003
Ratings Legend
Zone legend
5
Oils
Containers
RI
3
RI
Containers
%
2
Net
Difference
EHC
***
In kg
1
Products
Montréal
Québec
Centre-du-Québec
Outaouais – Laurentides
Saguenay – Lac-Saint-Jean
Bas-Saint-Laurent – Gaspésie
Abitibi
Côte-Nord
9 Nord-du-Québec
10
Les Îles-de-la-Madeleine
11 Basse-Côte-Nord
12
Municipale
7
8
1
2
3
4
5
6
7
8
72.9% of oils are recoverable
Average weight of filters marketed < 8” = 0.28304 kg and > 8” = 1.17899 kg
Actual collections X 0.6767 (0.6767 = Actual weight of crushed filters
5% of containers are reused according to a study dated March 25, 2008
9 4.2% of containers collected = lubricants
43,7% of antifreeze is recoverable
Actual weight collected X 2.7 % glycol (antifreeze) containers only
Decontamination oil containers = $551,403
Decontamination glycol (antifreeze) containers = $68,284
Commercial Commission
Total
As of December 31, 2014
Members
275
Collectors
24
Processors
54
Internal
Collector-Processor
3
* Note: For zone 10, Îles-de-la-Madeleine, a special transportation RI of $ 0.18 per litre is allowed for used oils and used antifreeze collected and carried to the mainland.
** Note: For zone 11, Basse-Côte-Nord, a special transportation RI of $0.28 per litre is allowed for all unprocessed used oils and used antifreeze collected and carried to
the mainland.
*** These rates will be applicable in 2015.
Note: This information is based on remittances received and RIs paid up to March 31, 2015 in relation to 2014.
8
2014 ANNUAL REPORT
9
5
SOGHU Members
3M Canada Company
9169-1931 Québec Inc. (VAG Motorsport)
9189-0731 Québec Inc. / Envirolin Canada
9201-9868 Québec Inc. (Multi-Dépôt)
Acklands-Grainger Inc.
ADF Diesel Montréal Inc.
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 Inc.
Arctic Cat Sales Inc.
Armored Auto Group Canada ULC
Asalco Inc.
Atelier HP Ltée
Atelier PV Hydraulique (2004) Inc.
Atlas Copco Compressors Canada Inc.
Auto Master Supplies King Inc
Auto Modena Inc.
Auto-Camping Ltd.
Autolectra Inc.
Auto-Moto Canada Inc.
Aviall Canada Ltd.
AvJet Holding Inc.
Baldwin Filters Inc.
Baldwin Filters Inc. (DBA Hastings Filters)
BASF Canada Inc.
Beck Arnley Worldparts Inc.
Benson Group Inc.
BestBuy Distributors Ltd.
Black Dog Lubricants Ltd.
Blue Water Agencies Ltd.
Bluewave Energy
BMW Canada Inc.
Bosch Rexroth Canada Corporation
BP Lubricants USA Inc.
Bronswerk Marine Inc.
BRP Inc.
Busch Vacuum Technics Inc.
Campbellton Auto Supply
Canadian General Filters Ltd.
Canadian Kawasaki Motors Inc.
10
2014 ANNUAL REPORT
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 Company
Canada Ltd.
Chrysler Canada Inc.
CNH Industriel Canada Ltée
COMAIRCO LTEE
Compresseurs Québec
Div. Inter-Power A.K. Corp.
Control Chemical (1989) Corporation
Contrôle-air Compresseur 2010 Inc.
Cool Distribution Inc.
Costco Wholesale Canada Ltd.
CPT Canada Power Technology Limited
CRC Canada Inc.
Cummins Est du Canada SEC
D.A.S. Distributors, Inc.
D.D. Distributions Lubrifiants Inc.
Daimler Trucks North America LLC
Davanac inc.
Denis Gauvin inc.
Distribution M.C.
Opéré par 9222-2850 Québec Inc.
Distribution, Importation Jean Gagnon
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 Lourds Papineau Inc.
Fastenal Canada Ltd.
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 Ltd.
G.K. Industries Ltd.
Gamma Sales Inc.
Garage Guy Audet
Garage R. Nadeau
Gates Canada Inc.
Gauvin Équipement Inc.
GEA Farm Technologies Inc
General Electric Canada Transportation Systems
General Motors du Canada Ltée
Gilles Cusson Inc.
Granby Industries Limited Partnership
Grenier Poulin Inc.
Groupe BMR Inc.
Groupe Environnement Labrie 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.
Hudson’s Bay Co.
Husqvarna Canada Corp.
Hydralogie Inc.
Hydromec Inc.
Hyundai Auto Canada Corp.
Importations Thibault Ltée
Inter Outaouais Inc.
Irving Blending & Packaging
J. Walter Compagnie Ltée
Jacques Larochelle Inc.
Jaguar Land Rover Canada ULC
John Deere Canada ULC
Jonjo Transport Refrigeration Ltd. /
Thermo King Mo
Kaeser Compresseurs Canada Inc.
Kia Canada Inc.
Kimpex Inc.
King-O-Matic Industries Limited
Kleen-Flo Tumbler Industries Ltd.
Krown Corporate
KTM Canada Inc.
Kubota Canada Ltd.
La Coop fédérée
Laboratoires St-Antoine Inc.
Le Groupe GLM Inc.
Le Groupe Harnois Inc.
Leader Auto Ressources LAR Inc.
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 Wajax Limitée
Les Industries Zeroflo Ltée
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 / Maintech Services
Loblaws Inc
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.
Mann + Hummel Canada, Inc.
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 Inc.
Modern Sales Co-Op
Montreal 4 Cylindres – Pièces Inc.
Motion Industries (Canada) Inc.
Motor Coach Industries Limited
Motovan Corporation
MSC Industrial Supply Co. /
Barnes Distribution
National Energy Equipment Inc.
National Pneumatic Inc.
Navistar Canada Inc.
NCH Canada Inc.
Nissan Canada Inc.
NLS Products
Noco Lubricants LP
Oto-Protec Inc
Paccar Parts,
A Division of Paccar of Canada Ltd.
Para-Performance Inc.
Parker Hannifin Canada
Parts Canada
Permatex Canada
Pétroles Petro-Canada 6989641 Canada Inc
Pétrolière Impériale
Philippe Gosselin & Associés Limitée
Pièces D’Auto Carluce Inc
Pièces d’Auto J.L. Ltée
Pièces d’Auto Ultra Chateauguay Inc.
Pièces d’Autos Jean Leblanc
Pièces de Camion de la Beauce Inc.
Polaris Industries Ltd.
Porsche Cars Canada Ltd.
Prévost,
une division de Groupe Volvo Canada Inc.
Prinoth Ltd.
Produits Automobiles Laurentide Inc.
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.
Recyclage Ramtech Inc.
Regional Automotive Warehousing Ltd.
Réseau C.B. (Div. Canadian Bearings)
Ridge Tool Company
Robco Inc.
Robert Bosch Inc.
Rona Inc.
Safety-Kleen Canada inc.
SC CLS Holdings ULC Complete Lube Supply
Sears Canada Inc.
Service de Filtres Sefor Inc.
Shoreline Lube Distribution Inc.
Siemens Transformateurs Canada Inc.
Sinto Racing Inc.
Southwestern Petroleum Canada Ltd.
Spécialités Hipertech Inc.
State Industrial Products
DBA State Chemical Ltd.
STIHL Limited
Subaru Canada Inc.
Suzuki Canada Inc.
Systèmes de Distribution Intégrés LP
Div Detroit D
Target Canada Co.
TEC Automotive Industries Inc.
Technologies de procédé WARCO
Teklub Canada Ltée
Texas Refinery Corp. of Canada Ltd.
The North West Company Inc.
The Sherwin-Williams Co.
Thermal-Lube Inc.
Total Canada Inc.
Toyota Canada Inc.
Transformateurs Pioneer Ltée
TruServ Canada Inc.
Turf Care Products Canada Limited
UAP Inc.
Uni-Sélect Québec Inc.
Univar Canada Ltd.
Valley Napa Auto Parts
Valvoline Canada Ltd.
Verco International Inc.
Vermeer Canada Inc.
Viscosity Oil Company
Volkswagen Group Canada Inc.
Volvo Cars of Canada Corp.
Volvo Group Canada Inc.
Wainbee Limited
Wajax Industrial Components Ltd.
Wakefield Canada Inc.
Walmart Canada Corp.
WD-40 Company (Canada) Ltd.
Westpier Marine & Industrial Supply Inc.
Worldpac Canada Inc.
Wurth Canada Limitée
Yamaha Motor Canada Ltd.
11
6
SOGHU Committees
SOGHU’s Board Of Directors
Affinia Canada ULC
Serge Ouellette
CAA-Québec
Jacques Maheu
Association canadienne des carburants
Carol Montreuil
Campor Environnement inc.
Laurent Gagnon
Association canadienne des constructeurs de véhicules (ACCV)
L. Pierre Comtois
Conseil québécois du commerce de détail
Françoise Paquet
Beck/Arnley (Division Uni-Select)
Raymond Savard
Front commun québécois pour une gestion écologique des déchets
Karel Ménard
Constructeurs mondiaux d'automobiles du Canada
Loulia Kouchaji
Nicolas Boisselle
Costco Wholesale Canada Ltd
Chantale Mantha
Ministère du Développement durable, de l’Environnement et de la Lutte
contre les changements climatiques
La Coop fédérée
François Gingras
Union des municipalités du Québec
Marieke Cloutier
Lubrifiants Chevron Canada inc.
Pierre-Yves Larose
RECYC-QUÉBEC
Maxime Rivet
Pétrolière Impériale
Jean-François Lacasse
SOGHU’S General Manager
Gilles Goddard
Produits Shell Canada Limitée
Guy Bélanger
Recochem inc.
Paul Lefebvre
Robert Bosch Inc.
Roch Cousineau
Produits Automobiles Laurentides inc.
Alain Gariépy
Total Canada inc.
Benoit Camirand
Valvoline Canada Limitée
Michael Paul
Wakefield Canada Inc.
Robert Huberdeau
RECYC-QUÉBEC
Maxime Rivet
Awareness Committee President
Laurent Gagnon
General Manager
Gilles Goddard
Legal Advisor, Sheahan & Associés, s.e.n.c.
Paul Granda
Legal Advisor
Sheahan & Associés, s.e.n.c.
12
Membres du comité de vigilance de la SOGHU
2014 ANNUAL REPORT
Employees and Consultants
Gilles Goddard
General Manager
Jean Duchesneau, CPA, CMA
Assistant General Manager
Magalie Morrissette, CPA, CMA
Controller
Diane Caron
Assistant to the General Manager
Kim DeMaisonneuve
Administrative Assistant
Nathalie Télénis
Administrative Assistant
Joël Ouimet
Field Inspector
Carmen Mensher
Responsible for printed incentive reports
Auditors
LEHOUX BOIVIN COMPTABLES AGRÉÉS SENC
4255 Lapinière Blvd., Suite 300, Brossard, Quebec J4Z 0C7
13
7
SOGHU Zones
Independent Auditor’s Report
Zone legend
To the Members of SOCIÉTÉ DE GESTION DES HUILES USAGÉES (SOGHU)
Montréal
Québec
3 Centre-du-Québec
4 Outaouais – Laurentides
5 Saguenay – Lac-Saint-Jean
6 Bas-Saint-Laurent – Gaspésie
7 Abitibi
8 Côte-Nord
9 Nord-du-Québec
10 Les Îles-de-la-Madeleine
11 Nord du Nord-Québec
Basse-Côte-Nord
Île d’Anticosti
1
2
We have audited the accompanying financial statements of the SOCIÉTÉ DE GESTION DES HUILES USAGÉES
(SOGHU), which comprise the balance sheet as at December 31, 2014 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.
11
Management’s Responsibility for the Financial Statements
9
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.
8
11
5
7
6
10
Auditor’s Responsibility
2
3
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our
audit in accordance with Canadian generally accepted auditing standards. Those standards require that we
comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether
the financial statements are free from material misstatement.
4
1
RI Table
ZONE
1
2
3
4
5
6
7
8
9
101
112
123
Municipale
Used oil
($/litre)
0.03
0.04
0.07
0.09 g0.07
0.10
.com
n
i
r
u
d
n
oe
0.07
h
ww.ec
w
a
i
g Med0.16 0.18
. 0.23
n
e0.23
i
r
c
u
n
e
d
s
n
i
l
E
mons
/Echo
d
m
r
o
a
C
W
e
v filters
Matt
reatiUsed
C
0.65 0.65 0.80 0.82
e
h
($/kg)
t
under
Used glycol
(antifreeze)
(45-55) ($/litre)
0.07
0.10
0.10
0.10
0.20
0.30
0.34
0.32
0.45
0.45
0.50
0.50
0.50
0.85
0.90
0.90
0.95
0.95
1.35
1.50
0.55/unit
(Depuis le 1er juillet 2012)
Used oil and used
glycol (antifreeze)
containers ($/kg)
1.27
1.70
1.95
1.95
2.25
2.33
2.33
2.55
2.55
5.25
5.25
1.20
Aerosols ($/kg)
3.67
3.67
3.84
3.84
3.87
3.92
3.97
3.97
3.97
4.37
4.37
0.55
(Taux depuis le 1er février 2008
et contenants d’antigels usagés
depuis le 1er juillet 2012)
(Depuis le 1er août 2006)
Note 1: For zone 10, Les Îles-de-la-Madeleine, a special transportation return incentive of $0.18 per litre is allowed for used oils and used
antifreeze (antifreeze starting July 1st, 2012) carried to the mainland.
Note 2: For zone 11, Basse-Côte-Nord and Île d’Anticositi, a special transportation return incentive of $0.28 per litre is allowed for all unprocessed
used oils and used antifreeze (antifreeze starting July 1st, 2012) in zone 11. List of cities for zone 11: Blanc-Sablon, Brador, Chevery, Harrington
Harbourg, Kegaska, La Romaine, La Tabatière, Lourdes-de-Blanc-Sablon, Middle Bay, Mutton Bay, Old Fort Bay, Pakua Shipi, Port Menier
(Île d’Anticosti), Saint-Augustin, St-Paul’s River, Tête-à-la-Baleine.
Note 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 Collector-Processor, please contact SOGHU.
14
2014 ANNUAL REPORT
8
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.
Opinion
In 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, 2014, and the results of its
operations and its cash flows for the year then ended in accordance with Canadian accounting standards for
not-for-profit organizations.
Lehoux Boivin1
Brossard, April 7, 2015
1 CPA auditor, CGA, public accountancy permit No A127955
15
9
for the Year Ended December 31, 2014
for the Year Ended December 31, 2014
2014
2013
Environmental Handling Charges
14,721,507
13,863,325
Transfer to Eco Peinture (aerosol)
121,917
87,477
6,400
9,200
Investment income
380,459
361,567
Management revenue (note 3)
129,729
―
15,360,012
14,321,569
EXPENSES
Unrestricted
Invested in
fixed
assets
Balance, beginning of year
3,329,047
10,200,000
113,354
13,642,401
12,952,147
Excess (deficiency) of revenue over
expenses
1,783,771
―
(41,549)
1,742,222
690,254
(1,000,000)
1,000,000
―
―
―
(61,033)
―
61,033
―
―
4,051,785
11,200,000
132,838
15,384,623
13,642,401
10,978,732
11,297,764
619,687
590,776
74,469
30,970
121,917
87,477
80,475
61,027
Advertising and communications
332,540
337,232
Contribution to RECYC-QUÉBEC
181,384
127,913
11,317
8,487
Salaries, fringe benefits and management and administration contracts
306,972
306,927
Office and general expenses
102,834
96,125
21,137
4,921
245,575
172,027
13,360
22,800
13,090,399
13,144,446
Office and general expenses
87,723
167,675
Legal fees
36,309
19,057
Rent
29,756
27,900
325,820
246,383
Professional fees
19,594
20,844
Depreciation – fixed assets
28,189
5,010
527,391
486,869
1,742,222
690,254
Process incentives
Collection facilities incentives
Incentive aerosol (Éco peinture)
Container segregation
Legal fees
Consulting fees
Compliance reviews and audits
Depreciation – fixed assets
Amount restricted to reserve fund
Investment in fixed assets
Balance, end of year
The accompanying notes are an integral part of the financial statements
Program
Return incentives
2013
2014
Reserve
fund
REVENUES
Registration and renewal
10
Changes in Net Assets
Income
Administration
Salaries, fringe benefits and management and administration contracts
EXCESS OF REVENUE OVER EXPENSES
The accompanying notes are an integral part of the financial statements
16
2014 ANNUAL REPORT
17
11
Cash Flow
Balance Sheet
for the Year Ended December 31, 2014
for the Year Ended December 31, 2014
2014
2013
ASSETS
Cash receipts – members
Cash
1,524,608
676,697
Accounts receivable (note 4)
4,302,823
4,191,454
33,352
96,380
3,955
6,371
2,500,000
1,100,000
8,364,738
6,070,902
Investments (note 6)
8,963,616
9,320,477
Fixed assets (note 7)
132,838
113,354
17,461,192
15,504,733
Prepaid expenses
Current portion of investments
2013
OPERATING ACTIVITIES
Current assets
Advances to an organization (note 5)
2014
12
14,719,883
13,446,998
500,912
434,681
(13,359,588)
(13,717,151)
1,861,207
164,528
(2,115,291)
(814,850)
1,100,000
800,000
(61,033)
(92,297)
63,028
(96,380)
(1,013,296)
(203,527)
Increase (decrease) in cash and cash equivalents
847,911
(38,999)
Cash and cash equivalents, beginning of year
676,697
715,696
1,524,608
676,697
Cash receipts – interest and others
Cash paid – suppliers and employees
INVESTING ACTIVITIES
Acquisition of investments
Cashing of investments
Acquisition of fixed assets
Advances to (from) an organization
LIABILITIES
Current liabilities
Accounts payable (note 8)
2,076,569
1,862,332
Cash and cash equivalents, end of the year
NET ASSETS
15,384,623
13,642,401
17,461,192
15,504,733
The accompanying notes are an integral part of the financial statements
The accompanying notes are an integral part of the financial statements
On behalf of the Board:
Mr. Carol Montreuil, Director
Mr. Robert Huberdeau, Director
18
2014 ANNUAL REPORT
19
13
1
Notes to Financial Statements
for the Year Ended December 31, 2014
Governing Statutes and Nature of Business
The organization is incorporated under Part III of Quebec Companies Act. According to the Federal and Provincial
Income 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 organization 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
Use of estimates
Financial instruments
The preparation of these financial statements, in
accordance with Canadian accounting standards for notfor-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.
Measurement of financial instruments
Processing incentives
Processing incentives expenses are recognized when the
lubricating oil containers are processed by a SOGHU
registered Processor.
20
2014 ANNUAL REPORT
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.
Investments are accounted for at market value.
The financial statements were prepared in accordance with Canadian accounting standards for not-for-profit organizations
(ASNFPO) and include the following significant accouting policies:
Return incentives expenses are recognized when the
lubricating oil and antifreeze and/or containers and filters
are collected by a SOGHU registered Collector.
Significant Accounting Policies (continued))
Investments
Significant Accounting Policies
Return incentives
2
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.
Impairment
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.
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.
Fixed assets
Fixed assets are accounted for at cost and depreciation
on the basis of their useful life of assets with the diminishing
balance method based on the rates below:
Computer hardware 33%
Computer software 33%
Collection equipment 20%
Furniture and fixtures 20%
Expense allocation
The organization displayed its expenses by functions.
Salaries, fringe benefits and management and
administration contracts shared by program and
administration functions are allocated proportionaly to
hours spent as follow:
Program
Administration
Management and administration contracts - manager
from 75% to 90%
from 10% to 25%
Salaries, fringe benefits and management and administration contracts
from 10% to 70%
from 30% to 90%
21
13
3
Notes to Financial Statements
for the Year Ended December 31, 2014
Management Revenue
4
The organization SOGHUOMA retains the services of SOGHU for the purposes of assisting SOGHUOMA in the
conception, implementation and operation of the recovery and reclamationprogram required to ensure the appropriate
recovery and reclamation of the Products in accordancewith applicable Atlantic Provinces legislative and regulatory
requirements.
2014
2013
63,615
―
Administration
66,114
―
129,729
―
2013
4,156,230
4,172,882
146,593
―
―
18,572
4,302,823
4,191,454
Accounts Receivable
Accounts receivable
Account receivable - SOGHUOMA
Sales taxes receivable
5
Program
2014
Advances to an Organization
Cash and the current managements of 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 receivable is $33 352 at
December 31, 2014.
2014
6
PROGRAM
Term deposits, bearing interest at rate from 2,6% to 3,8%,
maturing from June 2015 to December 2020.
Advertising and communication
Salaries, fringe benefits and management and administration contracts
Office and general expenses
11,789
―
247
―
45,125
―
6,454
―
63,615
―
Mutual funds
Current portion of investments
7
ADMINISTRATION
Fixed Assets
Cost
Accumulated
amortization
10,328,966
10,420,477
1,134,650
―
11,463,616
10,420,477
2,500,000
1,100,000
8,963,616
9,320,477
2014
2013
Office and general expenses
9,672
―
Computer hardware
12,127
5,551
6,576
2,354
Rent
4,374
―
Computer software
121,405
22,959
98,446
68,878
47,924
―
Collection equipment
62,400
39,400
23,000
36,360
4,144
―
Furniture and fixtures
14,201
9,385
4,816
5,762
66,114
―
210,133
77,295
132,838
113,354
129,729
―
Salaries, fringe benefits and management and administration contracts
Depreciation – fixed assets
22
Investments
Management revenues incurred during the year with this organization are splitted as follows:
Container segregation
2013
2014 ANNUAL REPORT
23
13
8
Notes to Financial Statements
for the Year Ended December 31, 2014
2014
2013
Accounts Payable
10
Trade
1,973,432
1,852,535
79,439
―
Salaries payable
3,403
1,503
Benefits payable
20,295
8,294
2,076,569
1,862,332
Sales taxes payable
9
Management and administration services
Software and technology services
The organization has reached an agreement with SOGHU
until December 31, 2018. Under this agreement, the organization must pay a management fee to SOGHU, calculated on a pro rata basis of total budgeted environmental
handling charges for each organization. For the year
ended December 31, 2014, the pro rata used is 85,3% for
SOGHU and 14,7% for SOGHUOMA.
The organization has commitment until April 2016
regarding the execution of software and technology
services.
The organization has a consent agreement with RECYCQUÉBEC until December 31, 2015, which is renewable
annually until December 2017. The new agreement was
approved on October 22, 2012. In accordance with this
agreement, the organization must collect Environmental
Handling Charges from its members and pay a financial
contribution to RECYC-QUÉBEC. Also, the organization
must obtain compliance reviews for selected firms by
SOGHU and has to pay it’s fees.
Compliance reviews
The organization has commitment until 2015 with firm
regarding the execution of the compliance reviews. The
estimated minimum annual payments under this
commitment cannot be determined at this time.
Rent
The organization has a lease commitment until November
2019 for the rental of office space.
24
2014 ANNUAL REPORT
The principal transactions concluded with companies or organizations members of the Board of directors of the society
during the year are as follow:
2014
2013
2,951,200
2,905,364
Return incentives
560,458
862,864
Contribution to RECYC-QUÉBEC
181,384
127,913
REVENUES
EXPENSES
Finally, the accounts receivable include an amount of $716,781 (2013: $585,842) to be received from companies managed
by members of the Board of directors and the accounts payable include $90,651 (2013: $194,591) to be paid to
companies and organizations managed by members of the Board of directors.
11
Expenses Allocation
Expenses amounts for salaries, fringe benefits and management and administration contracts were allocated as follow:
Minimum payments
2014
2013
The estimated minimum annual payments required under
these agreements are as follows:
Software and technology
services
Rent
2015
3,990
30,900
2016
1,330
30,900
2017
―
30,900
2018
―
30,900
2019
―
28,325
5,320
151,925
Management and administration services
Under the terms of a management agreement, the
organization is charged a fee for provision of management
services until April 2015. The commitment for next year
is $73,686.
In 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.
Environmental Handling Charges
Commitments
Agreement
Related Party Transactions
Program
306,972
306,927
Administration
325,820
246,383
632,792
553,310
25
13
12
Notes to Financial Statements
for the Year Ended December 31, 2014
Financial Instruments
The organization is exposed to various risks through its financial instruments. The following analysis provides a measure
of the Organization’s risk exposure and concentrations as at December 31, 2014.
Credit risk
In 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.
Market risk
The organization is exposed to the interest rate risk, which is the risk that the fair value of a financial instrument will
fluctuate because of changes in market interest rates.
13
Reclassified Accounts
Some accounts in the financial statements of the previous year have been reclassified to conform with disclosure adopted
in the current year.
26
2014 ANNUAL REPORT
SOGHU.COM
1 877 987-6448
1101 Brassard Blvd., Suite 214, Chambly, Quebec J3L 5R4
Phone: 450 447-9996 | Fax: 1 855 497-7505
E-mail: [email protected]