ONTARIO GRAIN FARMER AUDITED FINANCIAL STATEMENTS 33 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. Cloud computing arrangements The organization has elected to account for its cloud computing arrangements using the simplification approach and such arrangements are therefore accounted for as service contracts. Costs related to cloud computing arrangements are expensed as services are received or over the contractual term of the arrangement, where applicable. 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 2026 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 organization’s financial instruments will fluctuate because of changes in market prices. Some of the organization’s financial instruments expose it to this risk, which comprises currency, interest rate and other price risks. 4. TANGIBLE CAPITAL ASSETS Cost Accumulated Amortization Net 2026 Net 2025 Land $208,000 $0 $208,000 $208,000 Building 5,352,155 2,019,553 3,332,602 3,548,110 Office furniture and fixtures 201,447 131,039 70,408 54,607 Computer equipment 324,902 282,222 42,680 43,104 Passenger vehicle and trailers 269,974 223,410 46,564 114,769 $6,356,478 $2,656,224 $3,700,254 $3,968,590 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: 2027 $3,117,523 2028 1,583,518 2029 524,131 2030 172,266 2031 157,500 $5,554,938 9. GENERAL FUND BALANCES The general fund is comprised of the following net asset balances at year end: 2026 2025 Unrestricted net assets $16,192,371 $15,382,341 Net assets invested in tangible capital assets 3,700,254 3,968,590 Total General Fund net assets $19,892,625 $19,350,931 10. 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 2026 to November 2030 (2025 - November 2025 to October 2029), and interest rates ranging from 2.25% to 5.55% (2025 - 1.90% to 5.55%). During the year, the organization made the decision to hold more funds in investments rather than cash. At year end, the organization held more investments with shorter term versus longer term maturities. 11. COMPARATIVE FIGURES Certain figures presented for comparative purposes have been reclassified to conform to the current year’s presentation. 8. TRANSFER During the year, the Board transferred $76,445 from the internally restricted market development fund to the unrestricted net assets fund, representing funds no longer expected to be spent on market development activities. 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 $200,180 (2025 - $192,579).
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