25 ONTARIO GRAIN FARMER OCTOBER 2024 ongoing market development activities. The purpose of the internally restricted market development fund is to segregate market development activity to more accurately reflect the projects and partnerships that Grain Farmers of Ontario is developing. Legacy fund This internally restricted fund reports resources set aside for future expenditures for strategic initiatives that will add value to the Ontario grain industry. The purpose of the internally restricted legacy fund is to provide financial resources to support initiatives above and beyond current Grain Farmers of Ontario programs. 3. FINANCIAL INSTRUMENTS Unless otherwise noted, it is management’s opinion that the organization is not exposed to significant interest, credit, currency, liquidity, or other price risks arising from its financial instruments. The extent of the organization’s exposure to these risks did not change in 2024 compared to the previous period. The organization does not have a significant exposure to any individual customer or counterpart. Credit risk The major concentration of credit risk arises from the organization’s accounts receivable. The majority of the accounts receivable are from organizations in the agricultural and food processing industry. The organization manages the risk through evaluation and monitoring processes. Market risk Market risk is the risk that the fair value or future cash flows of the company’s financial instruments will fluctuate because of changes in market prices. Some of the company’s financial instruments expose it to this risk, which comprises currency risk, interest rate risk and other price risk. Interest rate risk Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The organization is exposed to interest rate risk as a result of the fixed coupon rates on its bonds. Should market interest rates fluctuate significantly from these fixed coupon rates, the fair value of the bonds will be correspondingly affected. 4. CAPITAL ASSETS Cost Accumulated Amortization Net 2024 Net 2023 Land $208,000 $0 $208,000 $208,000 Building 5,315,857 1,586,393 3,729,464 3,700,462 Office furniture and fixtures 313,402 284,133 29,269 16,569 Computer equipment 682,096 632,201 49,895 45,996 Lab equipment 599,999 599,999 0 75,000 Passenger vehicle and trailers 329,551 158,750 170,801 117,594 $7,448,905 $3,261,476 $4,187,429 $4,163,621 5. EMPLOYEE BENEFITS The organization offers a defined contribution post retirement benefit plan to its employees. The total expense for the organization’s defined contribution plan is $188,755 (2023 - $177,490). 6. BUDGET FIGURES The budgeted figures are presented for comparison purposes as prepared and approved by the Board. They have not been audited or reviewed by the auditor. 7. CONTRACTUAL OBLIGATIONS The minimum amounts payable under long term operating leases and contracts, exclusive of certain operating costs, including the net research project and market development commitments for which the organization is responsible to fund, are as follows: 2025 $2,564,209 2026 1,095,964 2027 764,270 2028 645,188 2029 285,716 $5,355,347 8. GENERAL FUND BALANCES The general fund is comprised of the following asset balances at year end. 2024 2023 Unrestricted net assets $12,689,461 $12,594,135 Net assets invested in capital assets 4,187,429 4,163,621 Total General Fund net assets $16,876,890 $16,757,756 9. INVESTMENTS Investments are comprised of a number of individual portfolios all holding low risk investments in accordance with the Farm Products Marketing Act. Investments held in these portfolios include investment savings accounts and guaranteed investment certificates, with maturities ranging from November 2024 to May 2029, and interest rates ranging from 1.48% to 5.55%.
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