Untitled - Publications Saskatchewan

Phone: 933-5200

Fax: 933- 7286

Web Site: www3.sk.sympatico.ca/sksheep

E-Mail: [email protected]

~

Name Residence

Harry Harder Chainnan CE Clavet

Niall CamobelJ

Rex Fur~eson

Patrick Roche

Marvin Dales NW

Staff

Mission StatementTo provide for the effective development of the Saskatchewan sheep industry and thepromotion, regulation and marketing of sheep and sheep products.

Specific aims are:To coordinate and inform the industry on matters relating to the production andmarketing of sheep and sheep products.To promote harmony and communication within the industrv.

2213C Hanselman Court

Saskatoon Saskatchewan

S7L 6A8

Creek

To develop the potential of the industry through extension, development of the marketand the promotion of sheep products.To ensure the provision of services required for the profitable marketing of sheep

products.

Vision Statement

A sheep industry that is competitive and viable within sustainable agriculture, growingand responding to the global marketplace, and offering alternative opportunities forproduction, processing, and access to diverse markets with producer and consumersupport.

The SSDB board has set out a set of priorities as directed by the sheep producers of theprovince. The board has tried hard to concentrate our efforts in these areas.

What were the priorities for the board this past year?

Check-off

Again this year we spent considerable time on collection of check-off dollars. Theinability to collect check-off dollars is limiting the activities of the board. There arefactors beyond our control that need to be addressed in order to be able to properlyenforce check-off collection. The SSDB does not have the authority to enforce check-offcollection and it seems as though the department is unable to make the changes requireddue to circumstances beyond their control. A trip to Ontario was made to see how theyhave handled their check-off; we got some good ideas. In order to implement these ideasthere would need to be a change in the Act. We are hoping this can be done. The Boardis also looking into tying check-off collection to the National ID program; check-offwould be added to the price of the tag. Check-offis supposed to be our source of fundingand therefore needs to collected from all producers.

Marketin2

The SSDB continues to provide our regular market services for live Iambs and breedingstock. We do however see a real need for other options for marketing our product. Withthis in mind we have undertaken several new projects to try to develop new options forour producers.

I) We are working on value-adding to our product. Eight value-added productshave been developed with the help of the Saskatchewan Food Centre. We areat present working with Dave Fiddler through CARDS and with Ann Cooney,(Specialized Livestock Marketing) to help build this market. Lack of afederal slaughter facility is a real problem (Tom Porter is leading an initiativeto build a multi specie slaughter facility). An application to the ANGenprogram for assistance in setting up a business structure is in and we arepresently waiting for a decision.

2) We are also doing a number of "Lamb Meat" promotion projects andattending several trade shows to promote Iamb meat.

3) We are working with several retail outlets that are or will be sellingSaskatchewan Lamb .

Extension Services

Our industry is experiencing real growth and with this comes a huge demand forextension services. We have been doing seminars throughout the province as well as fivedays a week phone-in service to answer producer questions. Seminars have included:Lambing Time Management, Butchering for the home freezer, Nutrition and Feeding,Carcass Evaluation, Sheep Economics and a two day workshop called Getting Started inSheep. These seminars are done throughout the province on a cost recovery basis.

Fund Raisin2:

In order for the SSDB to carry on the work that it feels is required to develop ourindustry, we have been forced to spend considerable time in fund raising. In order toraise funds we have taken on several projects. The EWE SHOPPE (store that providessheep supplies and sheep products to producers). Management of several leafy spurgeprojects. Administration of the Predation Program. We have applied for grants forspecial projects. We have also applied to Sask-Ag and Food for assistance to help carryout our extension work. It is hoped that our check-off situation can be resolved so thatnot as much time will need to be spent on raising funds. This will allow more time to bespent on development work

Predation

Predation is one of the biggest deterrents to growth in our industry. In 2000, we started apilot project with the assistance of Sask. Agriculture & Food and SERM. In 2001, thisprogram was implemented for a three-year term to be reviewed at that time. Thisprogram is funded by Sask. Agriculture & Food and administered by the SaskatchewanSheep Development Board. This project allows for all livestock producers in theprovince to call for help to try to eliminate their predation problem. A PredationSpecialist from the producer's area will go out and work with the producer. PredationSpecialists are located throughout the province; this helps to control the travel costs to theprogram. Acceptance of this program has been very positive. The program is veryeconomical to deliver. There are two parts to the program: 1) to help eliminate theproblem predator and 2) to help educate the producer on good predation managementpractices. We will be working hard to make this a long-term program for the livestockproducers of the province.

Public Relations

The SSDB feels that good public relations are a must for any industry. The board hasbeen attending various public functions, fairs, exhibits, shows and local communityevents to promote the image of our industry. We believe that keeping all ofourproducers informed on industry happenings is crucial to a healthy growing industry .Thefollowing areas have been and will continue to be a priority for us:

Continue to update our producers at each producer function that is held.Continue to update our sheep producer database.Continue to seek input from the producers on what they see as important to the

industry.Provide Government organizations on industry happenings and relevant information.We continue to work with the rural service centres wherever possible to provide the

needed information to our producersPrepare and distribute Sheep Shape (the quarterly newsletter)Continue to print and distribute bulletins as requiredProvide a market report to the mediaProvide telephone responses to producer's inquiriesThis year again we are holding seven producer meeting around the province to update

producers, seek their guidance and support.We continue to maintain a relationship with organizations such as the Canadian Sheep

Federation. Saskatchewan Katahdin Association and the Saskatchewan Sheeu Breeders.

Environmental Oooortunities

The SSDB continues to operate the Leafy Spurge project at the Elbow pasture. As well,we are assisting in other projects around the province. This last summer we started a newproject with the RM ofCorman Park just outside Saskatoon. We have been asked to usesheep to control leafy spurge in the RM. We continue to educate the public andproducers in the benefits of using sheep to control many other weeds and shrubs. Wecontinue to work on educating producers on the benefits of grazing sheep and cattle onthe same land base. This last summer due to the drought we were able to assist producersin finding alternative feed sources, one project was to move sheep into an area where ahailstorm had destroyed many acres of pea crop. The sheep were able to pick the peas offthe ground as well as eat the foliage.

Research and develooment

We continue to work on some of the projects that were started in the previous year suchas the Quality Assurance Program, National ID Program and Value-added Project. Hugeefforts have gone into the whole area ofValue-adding to our product, we feel that this isand will be very important to our industry .Funding for Research and Development is limited so we are trying to keep up with the

results of other research projects throughout Canada and forwarding this information onto our producers.

I Proiect

Guard do ro ram $5000.00Value added (CARDS) $31.182.11

Industrv Issues

~ Adequate funding for our industry to carry out the work that is expected of us.~ Developing the Value-added component of our industry. With no federal plal1it in the

province that will slaughter lambs, many of our lambs leave the province to beprocessed.

~ Long term predation control, we need a program that all producers can count on forhelp for years to come.

~ Check-off, the system as it is now is not providing the funding needed for the ~;SDBto do the work that is needed by the industry.

Industrv Statistics

Size of the provincial flock (as of February 1,2002)1,591 farm with sheep1,304 flocks registered with the SSDB287 non-registered flocks65,473 breeding ewes registered with the SSDBAverage flock size if you include a11 flocks 50 ewesAverage flock size excluding flocks under 20 ewes 77 ewes

Registered Ewes and Producers by RegionsRegion Producers %CE 283 22NE 261 ' 20

NW 211 16SE 362 28SW 187 14

Sheep

10~484

11,719

8,678

18,625

15,967

%

16

18

13

29

24

*Note -we are presently having all our producers update their registry with us, a I~lfgenumber of producers have done this already, but we still have not heard from all OJt themtherefore the provincial flock numbers may change slightly when all producers ha,re been

updated.

PaIments to Board member

Payments to maior suppliers

Outlook for 2002

The sheep industry in the province went through a tough year in 2001 due to the droughtand lower lamb prices. Despite this the sheep numbers have continued to grow. I wouldthink this would continue in 2002. Rural Saskatchewan is looking for ways to diversifyand sheep are relatively easy to get into. Low capital investment and a quick retwn oninvestment make sheep very attractive.

Our financial situation continues to be a concern. Check-off dollars are still not C()mingin as they should. We plan to tie check-off with the price of the tag for National I]). Weneed to have our Act changed to allow us to do this. We have applied for this change. Ifthis can be done we hope this will provide some stability for the SSDB.

The need to provide more market options for our producers was made very clear again tous during this past year .We will, in 2002 work very hard on our value- added pr~ject.Several of the pieces of the puzzle are coming together; we should be able to makc some

good strides in the upcoming year.

CHARTERED ACCOUNTANT

2911A CLE\ 'ELAND AVENUESASKATOON,SASK.

S7K8A9(306) 931-2131

Fax (3~) 931-2323essential records are maintained and the rules and procedures applied are 1iufficient tosafeguard and control producer money against loss from unauthorized use or

disposition.

d)

Because of the inherent limitations in any system of internal control, errors or fraud nlay occurand not be detected. Also, projection of any evaluation of the system of internal control to futureperiods is subject to the risk thatproced~es may become inadequate because of changes inconditions, or that the degree of compliance with the procedures may deteriorate.

In my opinion, based upon the above criteria, the system of internal control of the Sm:katchewanSheep Development Board in effect as at September 30,2001, taken as a whole, was )ufficient tomeet the objectives stated above insofar as those objectives pertain to the prevention 4)r detectionof errors or fraud in amounts that would be material in relation to the Saskatchewan SheepDevelopment Board. Management has been advised of areas in the accounting systeMconcerning reconciliations that could be strengthened.

~ N-e I r/\/l , -V't !

Lome Homing /

Chartered Accountant

Saskatoon, SaskatchewanNovember 14,2001.

CHARTERED ACCOUNTANT

2911A CLE\iELAND AVENUESA5KATOON,SASK.

S7K8A9(306) 931-2131

Fax (306) 931-2323

To the Members of:Saskatchewan Sheep Development Board Producers and the Agri-Food Council:

I have provided an examination to deternline whether Saskatchewan Sheep Development Boardcomplied with the provisions of the following legislative and related authorities pertaining to itsfmancial reporting, safeguarding of assets, spending, revenue raising, borrowing and investingactivities during the year ended September 30,2001:

The Saskatchewan Sheep Development Board Plan Regulations

My examination was made in accordance with generally accepted auditing standards, and

In my opinion, Saskatchewan Sheep Development Board has complied, in all signific;mtrespects, with the provisions of the aforementioned legislative and related authorities ,iuring theyear ended September 30,2001.

Saskatoon, SaskatchewanNovember 14,2001.

Lome HonllngChartered .~ccountant

accordingly included such test and other procedures, as I considered necessary in thecircumstances.

SASKATCHEWAN SHEEP DEVELOPMENT BOARD

AUDITOR 'S REPORT AND FINANCIAL STATEMENTS

for the year ended September 30.2001


INDEX TO THE FINANCIAL STATEMENT

EXHIBIT

AUDITOR'S REPORT

I. BALANCE SHEET

2. STATEMENT OF CHANGES IN FUND BALANI:ES

3 STATEMENT OF OPERATIONS

4. STATEMENT OF CASH FLOWS

5. NOTES TO THE FINANCIAL STATEMENT

6. SCHEDULE OF REVENUE AND EXPENSES

CHARTERED ACCOUNT ANT

2911A CLEVELAND AVENUESA:,KATOON, SASK.

S7K8A9(306) 931-2131

Fax (3~) 931-2323

To the Directors:


I have audited the balance sheet of Saskatchewan Sheep Development Board matSeptember 30,2001 and the statements of changes in fund balances, operations arId cashflows for the year ended. The [mancial statements are the responsibility of the Bctard.My responsibility is to express an opinion on these financial statements based on nyaudit.

I conducted my audit in accordance with generally accepted auditing standards. l'hosestandards require that I plan and perform an audit to obtain reasonable assurance ,vhetherthe financial statements are free of material misstatement. An audit includes exanlining,on a test basis, evidence supporting the amounts and disclosures in the financialstatements. An audit also includes assessing the accounting principles used andsignificant estimates made by management, as well as evaluating the overall financialstatement presentation.

In my opinion, these financial statements present fairly, in all material respects, thefinancial position of the Board as at September 30,2001 and the results of its ope]'ationsand cash flows for the year then ended in accordance with generally accepted acc(,unting

principles.

kSaskatoon, SaskatchewanOctober 19,2001 Chartered Accountant.

EXHIBIT 1

SASKA TCHEW AN SHEEP J)~VELO PMENI HOARD

BALANCE SHEET as at September 30. 2001

ASSETS

2001 2000

$ $ 103,634

2,581

29,356

I 12,207

i 1,390

149,168

CURRENT :BankTenI1 deposits and marketable securitiesAccounts receivable

InventoryPrepaid expenses

103,990

30,407

29,576

15,960790

180,723

INVESTMENTS FOR INSURANCE (Note 2) 33,904 32,493

CAPITAL (Note 3) 5,594 8,875

EQUITY IN CO-OPERATIVE 38

$ 220,259 $ 190,536

SEE ACCOMP ANYING NOTES SUBJECT TOAUDITOR'S REPORT DATED OCTOBER 19,2001

EX1llBIT 1

SASKATC_HEW AN SHEEP DEVELOPM~NT BOARD

BALANCE SHEET as at September 30.2001

LIABILITIES

2001 2000

$ 37,61883,519

121,137

$ 21,319

j gQ.~~~i 81,663

C1 NT: Ac ounts payable (Note 4)

Un xpended revenue (Note 5)

CONT~GENT LIABILITY (Note 6)

121.137 : 81.663

MEMBER '8 EQUITY

EQmJtY IN CAPIT AL ASSETS 5,594 8,874

SURPI(,us 93 528-- ,1 99.999

,1 108.87399.122

$ 220,259 $ 190,536

ON BEjHALF OF THE BOARD:

, Director

Director


E1xHIBIT 2


STATEMENT OF CHANGES IN FUND BALANCESfor the year ended September 30.2001

2001 2000

EQUITY IN CAPIT AL ASSETS

$BALANCE, beginning of the year 8,874 $ 22,486

PLUS: Assets acquired 1,057

LESS: Amortization recorded ( 4,337) (I 13.612)

BALANCE, end of the year $ 5,594 $ 8,874

S~LJJS UNAPPROPRIATE:Q

BALANCE, beginning of the year $ 99,999 $ 30,898

SURPLUS (DEFICIT) FOR THE YEAR ( 6,471 ) il 69.101

BALANCE, end of the year $ 93,528 $ 99,999


11:XHIBIT 3

SASKATCHEW AN SHEEP DEVELOPMENIBOARD

STATEMENT OF REVENUE AND EXPENSESfor the year ended September 30.2001

2001 2000

$ 133,786180,62029,56829,02512,859

33,41315,566

1,4131,1302,920

24,9273.718

468.945

$ 110,712191,50011,126

8,6852,516

45,73014,9813,1372,458

38529,645

561

REVENUE:Supply salesContributions -Government of Saskatchewan

-Sask. Council for Community DevelopmentService feesSeminarContract servicesCheck-off feesHandling feesInsurance premiumsSubscriptions and advertisingInterestPasture feesExpense recoveries

421.436

272,99914,08276,92713,7874,1469,7003,8081,125

28,2354,471

~~

230,1429,652

39,61418,322

9,2006,3932,2571,390

EXPENSES:Administration

Strategy projectPredation projectPasture operationsConnan ParkGuard dog projectBone oil projectNational identification projectValue chain project

Marketing projectPenner project

452,241 ii 316.970

EXCESS OF REVENUE OVER EXPENSES 16,704 104,466

UNEXPENDED REVENUE -PRIOR YEAR 60,344 24,979

-CURRENT YEAR ( 83.519) (i 60,344)

SURPLUS (DEFICIT) FOR THE YEAR $( 6,471 $ 69,101


EXHIBIT 4

SASKATCHEW~SHEEP DEVELOPMENT BOA@

STATEMENT OF CASH FLOWSfor the year ended September 30. 2001

2001 2000

OPERATIONS:Surplus (Deficit) for the year $( 6,471) $ 69,101

Changes in non-cash Working Capital items:Accounts receivable

InventoryPrepaid expensesAccounts payableUnexpended revenue

( 220)

( 3,753)

600

16,299

23.175

29.630

( II 2,906)

i 2,114

351( I 24,200)

I 35,3651 79,825

INVESTING ACTIVITIES:Co-operative equityInsurance investment

( 38)

( 1,410)

( 1,448)

LL 169)( 'I 169)

INCREASE (DECREASE) IN CASH RESOURCES 28,182 79,656

CASH RESOURCES, beginning of the year 106,215 j 26,559

$ 134,397CASH RESOURCES, end of the year $ 106,215

$ 103,990

30,407

$ 103,634

CASH RESOURCES ARE REPRESENTED BY:Bank balancesTeml depositsMarketable securities II 2,581

$ 134,397 $ 106,215


EXHIBIT 5


NOTES TO THE FINANCIAL ST A TEMENTSfor the year ended September 30. 2001

BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES :1

These summary financial statements have been prepared in accordance with B enerallyaccepted accounting principles for local government entities, as defined in the CICA PublicSector Accounting and Auditing Handbook, which encompasses the following principles:

Fund Accounting

The Board uses fund accounting procedures, which result in a self-balancing set of accounts foreach fund established by legal, contractual or voluntary actions. The various funds h.lve beenamalgamated for the purpose of presentation in the Summary of Financial Statements. Details ofthe operations of each fund are set out in the supplementary schedules. The Board m,Untains thefollowing funds:

The Capital Fund which reports the capital assets of the Board, together with thl~ir related

financing.

The Operations Fund which reports the Board' s annual revenues and expenses

Reportin~ Entity and Principles of Financial Reportin~

The Saskatchewan Sheep Development Board reporting entity includes the Board go,'ernmentand all related entities, which are accountable to the Board and are either owned or controlled bythe Board.

Capital Assets

Property , equipment and infrastructure expenditures incurred are valued at acquisitior. cost andrecorded in the Capital Fund.

The acquisitions costs of capital assets and payments on capital debt, which are not funded fromcapital financing sources, are charged to operations and matched with the applicable revenuesource in the year of expenditure. These expenditures are also recorded as an addition to assetsof the Capital Fund with a corresponding increase in Equity in Capital Assets.

Amortization

Capital assets recorded are amortized annually with a corresponding reduction in Equ:ty inCapital Assets. Assets are amortized over their expected useful life using the straight linemethod at the following rates:

20%Equipment

EXHIBIT 5

SASKAI!;;HEW ~ SHEE~DEVELO_PMENT BOARD

NOTES TO THE FINANCIAL STATEMENTSfor the year ended September 30.2001

I.

Revenue Recognition

Revenue is recognized as it becomes receivable under the terms of applicable fundin~;agreements. Funding received under the funding arrangements which relates to a subsequentfiscal period is reflected as unexpended revenue in the year of receipt.

Comparative Figures

Prior year's comparative amounts have been reclassified where necessary to conform to thecurrent year's presentation.

2. INVESTMENTS FOR INSURANCE:

The Board maintains an investment with Investors Group for funds accumulat~d as aninsurance plan for possible future losses of sheep and lambs marketed through the BOjlfd. Atpresent, no transfer is made to the operating account for administration of the fund.

3. CAPITAL ASSETS:

2001 2000

AdministrationPasture

$ 18,6495.093

23,74218.148

$ 17,393-5,093

22,486-13,611Less accumulated amortization

$ 5,594 $ 8,875

EXHIBIT 5


NOTES TO THE FINANCIAL STATEMENTSfor the year ended September 30. 2001

ACCOUNTS PAY ABLE:4.

2001 2000

$ 31,9362,800

( 15)23

1,8241,050

$ 18,052

2,200

247

40

780

Accounts payableAudit accrualGoods and service taxProvincial sales taxSource deductionsVacation pay accrual

$ 37,618 $ 21,319

5. UNEXPENDED REVENUE:

The Board has the following revenue unexpended at year-end:

2000Sch 2001

357798

$ $ 12,47930,3867,7439,736

-

47,805

6,618

11,069

10,000

8,027

Strategy 95PredationNational IdentificationValue Chain ProjectQuality Assurance Project

Marketing Project

$ 83,519 $ 60,344

CONTINGENT LIABILITY:6.

The amount of losses of sheep and Iambs that may occur in the future is indetl~rminable,therefore the adequacy of the insurance fund cannot be determined. If future claims exceed thefunds available, the excess will be charged to earnings in the year following the loss.

7. LEASE COMMITMENT'

The Board has a three year lease for it's premises which will expire on December 31,2002. The base rental is $586 per month plus occupancy costs.

Untitled - Publications Saskatchewan

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