22 An update on Grain Farmers of Ontario news and events To the Members of Grain Farmers of Ontario Opinion We have audited the accompanying financial statements of Grain Farmers of Ontario, which comprise the statement of financial position as at May 31, 2022 and the statements of unrestricted and internally restricted operations and net assets, operations and net assets externally restricted wheat marketing fund and cash flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies. In our opinion, these financial statements present fairly, in all material respects, the financial position of Grain Farmers of Ontario as at May 31, 2022 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. Basis of Opinion We conducted our audit in accordance with Canadian generally accepted auditing standards. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Grain Farmers of Ontario in accordance with the ethical requirements that are relevant to our audit of the financial statements in Canada, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Responsibilities of Management and Those Charged with Governance for the Financial Statements Management is responsible for the preparation and fair presentation of the 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. In preparing the financial statements, management is responsible for assessing the organization's ability to continue as a going concern, disclosing, as applicable, matters related to a going concern and using the going concern basis of accounting unless management either intends to liquidate the organization or to cease operations, or has no realistic alternative but to do so. Those charged with governance are responsible for overseeing the organization's financial reporting process. Auditor's Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements, as a whole, are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Canadian generally accepted auditing standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. As part of an audit in accordance with Canadian generally accepted auditing standards, we exercise professional judgement and maintain professional skepticism throughout the audit. We also: • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or override of internal control. Independent Auditor’s Report • Obtain an understanding of internal control relevant to the audit 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 organization’s internal control. • Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management. • Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the organization’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the organization to cease to continue as a going concern. • Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. Guelph, Ontario Chartered Professional Accountants August 10, 2022 Licensed Public Accountants Statement of Financial Position As at May 31, 2022 See notes to the financial statements. 2022 2021 A S S E T S CURRENT Cash $ 2,812,123 $ 2,422,131 Investments (note 12) 25,843,987 24,164,062 Accounts receivable 573,505 795,335 Government remittances receivable 5,441 21,524 Prepaid expenses 738,381 828,006 29,973,437 28,231,058 CAPITAL ASSETS (note 4) 4,494,994 4,753,277 $ 34,468,431 $ 32,984,335 L I A B I L I T I E S CURRENT Accounts payable and accrued liabilities $ 1,010,787 $ 1,007,690 Deferred revenue (note 5) 82,531 107,821 Liability to producers (schedule 1) 0 106,907 1,093,318 1,222,418 N E T A S S E T S Unrestricted net assets (note 11) 12,648,841 11,233,186 Unrestricted net assets invested in capital assets (note 11) 4,494,994 4,753,277 Internally restricted research fund (statement 2) 1,669,936 1,365,515 Internally restricted market development fund (statement 2) 381,565 354,065 Internally restricted legacy fund (statement 2) 14,179,777 0 Externally restricted wheat marketing fund (statement 3) 0 14,055,874 33,375,113 31,761,917 $ 34,468,431 $ 32,984,335 APPROVED ON BEHALF OF THE BOARD: _____________________________ Director _____________________________ Director
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