uoma · when uoma atlantic was created in 2014, it was to set up and manage a system for the...

ANNUAL REPORTKEEP NATURE CLEAN!

www.uoma-atlantic.com

2018

Atlantic-AtlantiqueUOMA

For people who do their oil changes themselves or have leftover glycol (antifreeze), UOMA Atlantic put in place a network of over 200 collection facilities where people can drop off their used oil, glycol (antifreeze) and their contaminated products free of charge. In order to find the closest collection facility, we invite you to use the collection facility locator on our website www.uoma-atlantic.com. You will then be able to free up some space and give a second life to these used products.

Oil and glycol (antifreeze) plastic containers must first be decontaminated in order to be recycled. Thus it is very important to bring them back to one of UOMA Atlantic's collection facilities to give them a second life.

COLLECTIONFACILITIES

2 Annual report 2018

TABLE OFCONTENTS

A word from the General Manager 04 A word from the chair 06UOMA Atlantic Committees 08Standard flow cycle of funds and products 09UOMA NB Scoreboard 10UOMA PE Scoreboard 12 UOMA NB Zones 14 UOMA PE Zones 15 UOMA Atlantic Members 16

Financial Statements

Independent Auditor’s Report 18 Revenues and expenses 21 Appendix A – UOMA NB and PE Sectoral Income 22 Appendix B – UOMA NB Income 23 Appendix C – UOMA PE Income 24 Changes in Net Assets 25Financial Position 26Cash Flows 27Notes to Financial Statement 28

Annual report 2018 3

A WORD FROM THEGENERAL MANAGER

Jean DuchesneauGeneral Manager

Mission accomplished forUOMA Atlantic

Despite the bold regulatory goals and major challenges it has faced, UOMA Atlantic can today say, “mission accomplished”.

PerformancesThe success of the program is the result of a win-win partnership through financial incentives to collectors based on the products and geographic areas to be covered as well as to plastic processors that shred, decontaminate, and ensure that material be reintroduced into the manufacturing of other plastic products.

ProcessingAll products are 100% valued and enjoy a second life. Containers are reused or decontaminated, recycled and reintroduced into other products such as agricultural drains, bins, composite construction materials, etc. The filters are compressed to extract the oil and sent to smelters. The oils are re-refined, regenerated or used as energy recovery.

Communication and ProgramThe UOMA Atlantic-Atlantic team is proud of the improvements made to its management framework over the past year. It shows it embraces change and uses technology to meet the challenges and to communicate with the people of New Brunswick and Prince Edward Island.


UOMA Atlantic has modernized procedures and services and has also improved its website, including a geolocation system using your mobile device. Simply click on the “Use my current location” icon and the system will give you all the collection facilities closest to your location.

The members of the Communication Committee wanted a clearer, easier to remember name for the organization to capture the attention of the population. SOGHUOMA became UOMA Atlantic. The new brand includes new logos, promotional banners, updated documents and new Facebook and LinkedIn pages.

ScoreboardsIn order to provide transparency, we present our scoreboards, allowing you to capture all components by province in one image. The UOMA Atlantic scoreboards summarize the statistics of our partners, volumes marketed or collected ($ or units), collection zones, incentives paid, etc. (pages 10-13).

2018 was another very good year for UOMA Atlantic and we are very proud of this. The results speak for themselves, on the one hand, the commitment of UOMA Atlantic, its members and more particularly the board of directors facing the attainment of government objectives, and, on the other hand, the exceptional partnership between UOMA Atlantic, the collectors, the processors, the generators, all in collaboration with Recycle NB and the Ministry of Communities, Land and Environment of Prince Edward Island.

In summary, this program represents a model of sustainable development, the balance between business needs and those of society.


Jean DuchesneauGeneral Manager

A WORD FROMTHE CHAIR “UOMA Atlantic always wants to do better! Collection facilities, we make them a priority.

... at the end of 2018,

UOMA Atlantic

had more than 189

collection facilities

in New Brunswick

and more than 32 in

Prince Edward Island

Top row : Mr. Mike Jennex – Mr. John Hughes, Observer PE – Mr. Nick Dufour - Mr. John Robichaud Bottom row : Mr. Albert Girard, Representative NB and PE – Mr. Jean Duchesneau, GM Mr. David Bois, Chairman – Mr. Bill Simpkins

Not shown in photo : Mr. Robert Huberdeau – Mrs. Loulia Kouchaji, Vice-chairman Mr. Chris Lesperance – Mr. Robert Siddall – Mr. Sheldon Boyd

When UOMA Atlantic was created in 2014, it was to set up and manage a system for the recovery and recycling of used oils, glycols, filters and used containers on behalf of its members who market these products in New Brunswick and Prince Edward Island.

Board of Directors


With collection facilities at the heart of citizen service, we are working to expand our network of collection facilities to offer as many locations as possible across New Brunswick and Prince Edward Island where individuals who do their own oil changes have a nearby location to bring back their used oil and glycol products free of charge.

UOMA Atlantic has put in place promotions to encourage generators to register as collection facilities. These measures were conclusive and consequently at the end of 2018, UOMA Atlantic had more than 189 collection facilities in New Brunswick and more than 32 in Prince Edward Island.

Our “Keep Nature Clean!” Campaign in 2018 offered viewers a moment of calm and our aim was to inspire the public to help “Keep this nature…..beautiful, clean and pure” by raising awareness of the importance of bringing their used products to a collection facility. This market includes small contractors, small owners of heavy equipment, agriculture, forestry or transportation, or simply individuals who do their own oil changes for their car, lawnmower, snow blower or other equipment and who do not have enough volumes to be serviced by a commercial collector.

On our website we thank the collection facilities for their involvement and we ask the users to respect the schedules and the instructions for the collection facilities and not to leave any products on the ground.

The efforts of UOMA Atlantic to constantly develop its collection facility network is part of its sustainable development approach.


David BoisChairman

UOMA ATLANTICCOMMITTEES

UOMA Atlantic Board of DirectorsCanadian Fuel Association Bill Simpkins

Global Automakers of Canada Loulia Kouchaji, Vice-chairman

Home Hardware Stores Limited David Bois, Chairman

Mann+Hummel Filtration Technology Canada ULC John Robichaud

Parkland Fuel Corporation Mike Jennex

Parts for Trucks, Inc. Robert Siddall

Superline Fuels Nick Dufour

Toromont Cat (Maritimes) Sheldon Boyd

UNI-SELECT EASTERN INC. Chris Lesperance

Wakefield Canada Inc. Robert Huberdeau

UOMA Atlantic General Manager Jean Duchesneau

Department of Communities, Land and Environment PE, Observer John S. Hughes

RECYCLE NB, Observer Jamie Seamans

Industry Advisory Committee Oil & Glycol Program (OAG) of New BrunswickAshland, Valvoline Bruce Trethewey

Envirosystems Stan Rich

Home Hardware Stores Limited David Bois

Recycle New Brunswick Elizabeth McDermott, Jamie Seamans

Regional Service Commission (Acadian Peninsula) Gary Leblanc

Retail Council of Canada Jim Cormier

RPM Environnement inc. Bianca Cormier

UOMA Atlantic Jean Duchesneau or Albert Girard

Terrapure Environmental Adam Hayes, Glen Anderson

Employees and Consultants Jean Duchesneau General Manager

Albert Girard Representative of New Brunswick and Prince Edward Island

Jean-François Richard, CPA Controller

Georges Lajeunesse Financial Analyst

Katy Rosa Accountant Technician

Diane Caron Executive Assistant and program Coordinator

Nathalie Télénis Administrative Assistant - Receptionist

Justine Langlois Executive Coordinator

Joël Ouimet Inspector responsible of segregation

François Bouliane Communications and Marketing

Mathieu Carrier Communications Coordinator

Auditors

PwC SENC/SRL4255, boul. Lapinière, bureau 300 Brossard (Québec) J4Z 0C7


STANDARD FLOW CYCLEOF FUNDS AND PRODUCTS

GENERATORS

Establishments that generate used products (garages, dealers, commercial, industrial and municipal sectors, forestry, agriculture, transporters, individuals)

COLLECTORS

Establishments that collect the products from generators and collection facilities and receive subsidies from UOMA NB (for additional information, see page 10) and UOMA PE (for additional information, see page 12).

PROCESSORS

Establishments that give a second life to products

MEMBERS OF UOMA NB AND MEMBERS OF UOMA PE

Brand owners or first importers or suppliers who fund the system :

• $0.05 (before July 1st, 2018) and $0.03 (since July 1st, 2018) per litre for applicable lubricating oils;

• $0.10 per litre for oil and glycol (antifreeze) containers of 50 litres or less;

• $0.17 per litre for non-metal or non-HDPE oil and glycol (antifreeze) containers of 50 litres or less;

• $0.10 (before July 1st, 2018) and $0.08 (since July 1st, 2018) per litre of glycol (antifreeze) mix;

• $0.16 (before July 1st, 2018) and $0.12 (since July 1st, 2018) per litre of glycol (antifreeze) concentrate;

• $0.50 per filter of 8 inches or less or 203 mm in height; • $1.00 per filter of more than 8 inches or 203 mm or more;• $0.50 per sump type filters for automatic transmissions • $0.25 per aerosol container

COLLECTION FACILITIES

Establishments registered with UOMA NB and UOMA PE to receive from the public, at no cost to them, used oil and glycol materials governed by the Regulations

Atlantic-AtlantiqueUOMA

Communities, Land and Environment

PRODUCTS$ FUNDS


UOMA NB SCOREBOARDSales and Recovery Summary - January to December 2018


Ratings Legend1 Recoverable oil = 70 %2 Percentage of marketed filters Metal filter = 80.63 % Carboard filter = 19.37 % 3 Average weight for marketed filters Metal filter = 0.3364 kg Carboard filter = 0.0809 kg4 5 % of oil containers are used more than once / 95 % recoverable 5 Recoverable glycol (antifreeze) = 45 %6 55 % of used oil is burnt legally (recycled) in small furnaces according to study

Zone Legend1 Kings, Queens, Saint John, Sunbury, Westmorland, York2 Kent3 Northumberland4 Carleton, Gloucester, Madawaska, Restigouche, Victoria5 Albert6 Charlotte

Products Meas. Sales Recoverable Collected Collec. %

Burnt/Recycled6

Burnt%

Collected/Recycled %

Object. Recyc NB

Applicable in the Year

Oil litres 14,524,956 10,167,4691 3,612,077 35.5% 5,592,108 55.0% 90.5% 75.0% 2018

Filtersunits 1,307,6142 1,307,614 1,184,0593 90.6% 75.0% 2018

kg 375,146 375,146 339,699 90.6% 75.0% 2018

Oil Containerslitres 7,785,296 7,396,031 4,469,6664 60.4% 75.0% 2018

kg 450,003 427,503 258,3544 60.4% 75.0% 2018

Glycol (antifreeze) litres 2,024,064 910,8295 114,682 12.6% 50.0% 2017

Glycol (antifreeze) Containers

litres 1,073,876 1,073,876 376,937 35.1% 50.0% 2017

kg 43,017 43,017 15,099 35.1% 50.0% 2017

Oils

Filters

Containers

Containers

Glycol (antifreeze)

Collection Facilities

Zone RI In litres % RI In kg % RI Oil % Glycol (antifreeze) % Total kg % RI In litres % Commercial Commission Total

1 $0.03 2,877,107 79.8% $0.80 324,948 66.9% $2.10 166,928 60.5% 9,649 60.4% 176,577 60.5% $0.35 80,722 70.5% 64 1 65

2 $0.10 35,685 1.0% $1.00 15,556 3.2% $2.25 9,461 3.4% 549 3.4% 10,010 3.4% $0.45 4,920 4.3% 14 0 14

3 $0.10 56,315 1.6% $1.00 20,349 4.1% $2.25 12,250 4.5% 716 4.4% 12,966 4.5% $0.45 3,740 3.2% 11 1 12

4 $0.06 530,059 14.4% $0.90 96,974 20.0% $2.50 71,689 25.9% 4,186 26.1% 75,875 25.9% $0.40 22,990 20.0% 70 3 73

5 $0.10 24,086 0.7% $1.00 6,271 1.3% $2.25 4,100 1.4% 221 1.3% 4,321 1.4% $0.45 1,490 1.3% 6 0 6

6 $0.10 88,825 2.5% $1.00 21,211 4.5% $2.25 12,091 4.3% 711 4.4% 12,802 4.3% $0.45 820 0.7% 18 1 19

Total $0.038 3,612,077 100% $0.85 485,309 100% $2.25 276,519 100% 16,032 100% 292,551 100% $0.37 114,682 100% 183 6 189


Note: This information is based on remittances received and RIs paid up to March 30, 2019 in connection to 2018.

Products

Environmental Handling Charges

(EHC)

Return Incentives (RI) Net Difference Average RI

per quantity collected

Oils 579,681 138,608 441,073 $0.038/l

Filters 703,037 410,617 292,420 $0.347/un. $1.21/kg

Oil Containers 888,918 623,269 265,649 $0.139/un. $2.41/kg

Processing of Containers - 86,590 (86,590) $0.019/un. $0.30/kg

Glycol (antifreeze) 167,435 42,385 125,050 $0.370/l

Glycol (antifreeze) Containers 107,388 35,672 71,716 $0.095/un. $2.36/kg

2,446,459 1,337,141 1,109,318

Oils

Filters

Containers

Containers

Glycol (antifreeze)


Zone RI In litres % RI In kg % RI Oil % Glycol (antifreeze) % Total kg % RI In litres % Commercial Commission Total

1 $0.03 2,877,107 79.8% $0.80 324,948 66.9% $2.10 166,928 60.5% 9,649 60.4% 176,577 60.5% $0.35 80,722 70.5% 64 1 65

2 $0.10 35,685 1.0% $1.00 15,556 3.2% $2.25 9,461 3.4% 549 3.4% 10,010 3.4% $0.45 4,920 4.3% 14 0 14

3 $0.10 56,315 1.6% $1.00 20,349 4.1% $2.25 12,250 4.5% 716 4.4% 12,966 4.5% $0.45 3,740 3.2% 11 1 12

4 $0.06 530,059 14.4% $0.90 96,974 20.0% $2.50 71,689 25.9% 4,186 26.1% 75,875 25.9% $0.40 22,990 20.0% 70 3 73

5 $0.10 24,086 0.7% $1.00 6,271 1.3% $2.25 4,100 1.4% 221 1.3% 4,321 1.4% $0.45 1,490 1.3% 6 0 6

6 $0.10 88,825 2.5% $1.00 21,211 4.5% $2.25 12,091 4.3% 711 4.4% 12,802 4.3% $0.45 820 0.7% 18 1 19

Total $0.038 3,612,077 100% $0.85 485,309 100% $2.25 276,519 100% 16,032 100% 292,551 100% $0.37 114,682 100% 183 6 189

Members 172 Collectors 7 Processors 9

Year End 2018

UOMA PE SCOREBOARDSales and Recovery Summary - January to December 2018


Oils

Filters

Containers

Containers

Glycol (antifreeze)


Zone RI In litres % RI In kg % RI Oil % Glycol (antifreeze) % Total kg % RI In litres % Commercial IWMC Total

1 $0.10 183,215 100% $1.00 58,522 100% $2.27 64,049 100% 4,211 100% 68,260 100% $0.45 22,325 100% 26 6 32

Ratings Legend1 Recoverable oil = 70 %2 Percentage of marketed filters Metal filter = 80.63 % Carboard filter = 19.37 % 3 Average weight for marketed filters Metal filter = 0.3364 kg Carboard filter = 0.0809 kg4 Recoverable glycol (antifreeze) = 45 % 5 75 % of used oil is burnt legally (recycled) in small furnaces according to study

Zone Legend1 Prince Edward Island

Products Meas. Sales Recoverable Collected Collec. %

Burnt/Recycled5

Burnt%

Collected/Recycled %

Object.UOMA PE

Applicable in the Year

Oil litres 2,131,308 1,491,9161 183,215 12.3% 1,118,937 75.0% 87.3% 50.0% 2015

Filtersunits 246,1962 246,196 142,7823 58.0% 25.0% 2015

kg 70,632 70,632 40,963 58.0% 25.0% 2015

Oil Containerslitres 1,147,084 1,147,084 1,055,203 92.0% 25.0% 2015

kg 65,501 65,501 60,254 92.0% 25.0% 2015

Glycol (antifreeze) litres 337,148 151,7174 22,325 14.7% 50.0% 2017

Glycol (antifreeze) Containers

litres 146,710 146,710 101,499 69.2% 50.0% 2017

kg 5,764 5,764 3,988 69.2% 50.0% 2017


Oils

Filters

Containers

Containers

Glycol (antifreeze)


Zone RI In litres % RI In kg % RI Oil % Glycol (antifreeze) % Total kg % RI In litres % Commercial IWMC Total

1 $0.10 183,215 100% $1.00 58,522 100% $2.27 64,049 100% 4,211 100% 68,260 100% $0.45 22,325 100% 26 6 32

Note: This information is based on remittances received and RIs paid up to March 30, 2019 in connection to 2018.

Products

Environmental Handling Charges

(EHC)

Return Incentives (RI) Net Difference Average RI

per quantity collected

Oils 84,294 18,322 65,972 $0.100/l

Filters 130,214 58,522 71,692 $0.410/un. $1.43/kg

Oil Containers 126,396 145,608 (19,212) $0.138/un. $2.42/kg

Processing of Containers - 20,169 (20,169) $0.019/un. $0.30/kg

Glycol (antifreeze) 26,628 10,046 16,582 $0.450/l

Glycol (antifreeze) Containers 14,670 9,476 5,194 $1.644/un. $2.38/kg

382,202 262,143 120,059

Members 113 Collectors 5 Processors 6

Year End 2018

UOMA NB ZONES


3

4

2

1 5

6

Note: For information concerning RI rates for internal collectors processors, please contact UOMA Atlantic.

Map and RI Table

ZONE 1 2 3 4 5 6

Used oil ($/litre) 0.03 0.10 0.10 0.06 0.10 0.10

Used glycol (antifreeze) (45-55) ($/litre) 0.35 0.45 0.45 0.40 0.45 0.45

Used filters ($/kg) 0.80 1.00 1.00 0.90 1.00 1.00

Used oil and used glycol (antifreeze) containers ($/kg)

2.10 2.25 2.25 2.50 2.25 2.25

Aerosols ($/kg) 3.65 3.95 3.95 3.80 3.95 3.95

Zone Legend1 Kings, Queens, Saint John Sunbury,

Westmorland, York2 Kent3 Northumberland4 Carleton, Gloucester, Madawaska,

Restigouche, Victoria5 Albert6 Charlotte

UOMA PE ZONES


Note: For information concerning RI rates for internal collectors processors, please contact UOMA Atlantic.

PE Map and RI Table

ZONE 1

Used oil ($/litre) 0.10

Used glycol (antifreeze) (45-55) ($/litre) 0.45

Used filters ($/kg) 1.00

Used oil and used glycol (antifreeze) containers ($/kg) 2.25

Aerosols ($/kg) 3.95

1

Zone Legend1 Prince Edward Island

UOMA ATLANTICMEMBERS


• 1439174 Ont Ltd. (NLS Products)

• A & I Products Canada Inc.

• ADF Diesel Montréal Inc.

• Agco Parts Division

• AGS Company Automotive Solutions, LCC

• Altrom Auto Group Ltd.

• Amsoil Inc.

• April Super Flo Inc.

• Arlyn Enterprises Ltd. DBA Boss Lubricants

• Asalco Inc.

• Atlantic Compressed Air Ltd.

• Atlantic Farm Serv. Inc. / Serv. Agric. Atlant. Inc.

• Atlas Copco Compressors Canada Inc.

• AutoChoice Parts & Paints Ltd.

• Automobile Solutions Americas Inc.

• Aviall Canada Ltd.

• Baldwin Filters Inc.

• Bass Pro Shops Canada ULC

• Beck Arnley Worldparts Inc.

• BestBuy Distributors Ltd.

• Blue Streak Hygrade Motor Products

• Blue Water Agencies Ltd.

• BMW Canada Inc.

• Bosch Rexroth Canada Corporation

• BP Lubricants USA Inc.

• BP Marine Ltd.

• Brandt Tractor Ltd.

• BRP Inc.

• Campbellton Auto Supply

• Canadian General Filters Ltd.

• Canadian Kawasaki Motors Inc.

• Canadian Tire Corporation

• Canadian Tire Petroleum

• CarQuest Canada Ltd.

• Castrol Industrial North America Inc.

• Central Tire Service Ltd.

• Champion Laboratories Inc.

• Chevron Canada Limited

• Chicago Pneumatic Tool Company Canada Ltd.

• CNH Industrial

• Coop Fédérée – Énergie Sonic (La)

• Costco Wholesale Canada Ltd.

• Crevier Lubrifiants Inc.

• Cummins Canada ULC

• Daimler Trucks North America

• DAS Companies, Inc.

• Davanac inc.

• Echo Power Equipment (Canada)

• Équipement SMS Inc.

• Fastenal Canada Ltd.

• FCA Canada Inc.

• Ford Motor Company of Canada Ltd.

• Fram Group (Canada) Inc.

• Fullbore Marketing Ltd.

• G.F. Thompson Company Ltd.

• G.K. Industries Ltd.

• Gamma Sales Inc.

• General Motors of Canada Company

• Groupe BMR Inc.

• Groupe Environnemental Labrie Inc.

• Groupe Haris Inc. (Le)

• Harley-Davidson Canada L.P.

• Hastings Filters

• Henkel Canada Corp.

• Hino Motors Canada, Ltd.

• Home Depot of Canada Inc.

• Home Hardware Stores Limited

• Honda Canada Inc.

• Husqvarna Canada Corp.

• Hyundai Auto Canada Corp.

• Imperial Oil

• Importations Thibault Ltée

• Integrated Distribution Systems LP DBA Wajax Power Systems

Integrated Distribution Systems LP DBA Wajax Power Systems (NS)

• Irving Blending & Packaging

• Isuzu Commercial Truck of Canada Inc.

• ITW Permatex Canada

• Jacques Larochelle Inc.

• John Deere Canada ULC

• Kadex Aero Supply Ltd.

• Kaeser Compresseurs Canada Inc.

• Keystone Automotive Operations of Canada Inc.

• Kia Canada Inc.

• Kimpex Inc.

• King-O-Matic Industries Ltd.

• Kleen-Flo Tumbler Industries Limited

• Klondike Lubricants Corporation

• KTM Canada Inc.

• UOMA NB UOMA PE


• Kubota Canada Ltd.

• Loblaws Inc.

• Lucas Oil Products (Canada) Company

• Machinerie R. Gagnon Inc.

• Mack Trucks Canada and Volvo Trucks Canada Division

• Mahle Aftermarket Inc.

• Mann+Hummel Filtration Technology Canada ULC

• Marindustrial Inc.

• Matech BTA Inc.

• Mazda Canada Inc.

• Mercedes-Benz Canada Inc.

• MFTA Canada Inc.

• Michaud Petroleum Inc.

• Mitsubishi Motor Sales of Canada Inc.

• Modern Sales Co-Op

• Motion Industries (Canada) Inc.

• Motovan Corporation

• MTD Products

• National Energy Equipment Inc.

• Navistar Canada Inc.

• NCH Canada Inc.

• Nissan Canada Inc.

• Orgill Canada Hardlines ULC

• Paccar Parts, A Division of Paccar of Canada Ltd.

• Parker Canada Division

• Parkland Fuel Corporation

• Parts Canada Development Co.

• Parts for Trucks Inc.

• Petro-Canada Lubricants Inc.

• Philippe Gosselin & Associés Limitée

• Pièces d’Auto Transit Inc. (Les)

• Pièces de Transmission Unitrans Ltée (Les)

• Polaris Industries Inc.

• Prestone Canada

• Prévost, une division de Groupe Volvo Canada Inc.

• Pro Form Products Ltd.

• Produits Lubri-Delta Inc.

• Prolab Technolub Inc.

• PTI Transformers Inc.

• Radiator Specialty Company of Canada

• Recochem Inc.

• Ridge Tool Company

• Robco Inc.

• Robert Bosch Inc.

• Rona Inc.

• Safety-Kleen Canada Inc.

• SC CLS Holdings ULC Complete Lube Supply

• Services Maintech / Maintech Services (Les)

• Shell Canada Products

• Shoreline Lube Distribution Inc.

• Sinto Racing Inc.

• Small Town Lubes

Sobeys Capital Inc.

• Southwestern Petroleum Canada Ltd.

• Spectra Premium Industries

• Spectrum Brands Canada

• State Industrial Products DBA State Chemical Ltd.

• Stihl Ltd.

• Strongco Limited Partnership

• Subaru Canada Inc.

• Suzuki Canada Inc.

• Texas Refinery Corp. of Canada Ltd.

• Textron Off Road

• The Sherwin-Williams Co.

• Toromont Cat (Maritimes)

• Total Canada Inc.

• Toyota Canada Inc.

• UAP Inc.

• Uni-Sélect Eastern Inc.

• Univar Canada Ltd.

• Valvoline Canada a div. of Ashland Canada Corp.

• Vast-Auto Distribution Atlantic Ltd.

• Verco International Inc.

• Vermeer Canada Inc.

• Volkswagen Group Canada Inc.

• Volvo Cars of Canada Corp.

• Wainbee Limited

• Wajax Industrial Components Ltd.

• Wakefield Canada Inc.

• Walmart Canada Corp.

• Walter Surface Technologies Inc.

• WD-40 Company (Canada) Ltd.

• Worldpac Canada Inc.

• Wurth Canada Limited

• Yamaha Motor Canada Ltd.

• Yvan Brake & Clutch Industrial Parts Ltd.

• UOMA NB UOMA PE

INDEPENDANTAUDITOR'S REPORT


To the Members of ATLANTIC USED OIL MANAGEMENT ASSOCIATION INC. (UOMA Atlantic)

Our OpinionIn our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of Atlantic Used Oil Association Inc (UOMA-Atlantic, the Organization) as at December 31, 2018 and the results of its operations and its cash flows for the year then ended in with Canadian accounting standards for not-for-profit organizations (ASNPO).

What we have auditedThe Organization’s financial statements comprise:

• the statement of revenues and expenses for the year ended December 31, 2018;• the statement of changes in net assets for the year ended December 31, 2018;• the statement of financial position as at December 31, 2018;• the statement of cash flows for the year ended December 31, 2018; and• the notes to financial statements, which include a summary of significant accounting policies.

Basis for opinionWe 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 believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. IndependenceWe are independent of the Organization in accordance with the ethical requirements that are relevant to our audit of the financial statements in Canada. We have fulfilled our other ethical responsibilities in accordance with these requirements.

Other informationManagement is responsible for the other information. The other information obtained prior to the date of this auditor’s report comprises the information, other than the financial statements and our auditor's report thereon, included in the annual report.

Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.


In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit, or whether it otherwise appears to be materially misstated. If, based on the work we have performed on the other information obtained prior to the date of this auditor’s report, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Responsibilities of management and those charged with governance for the financial statementsManagement is responsible for the preparation and fair presentation of the financial statements in accordance with ASNPO, and for such internal control as management determines if 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 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 statementsOur 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 judgment 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 the override of internal control.

INDEPENDANTAUDITOR'S REPORT


1 CPA auditor, CA, public accountancy permit No.A128779

• 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.

PwC SENC/SRLBrossard, Avril 5, 2019

REVENUES AND EXPENSESFor the year ended December 31, 2018


REVENUES (appendix A)

2018 2017

Environmental Handling Charges 2,828,661 3,118,670

Registration and renewal 3,000 5,600

Investment income 87,090 58,195

Other revenues 46,112 46,255

2,964,863 3,228,720

EXPENSES (appendix A)

Program

Return incentives 1,492,525 1,424,995

Process incentives 106,759 105,657

Collection facilities incentives 8,660 7,216

Advertising and communications 120,729 95,859

Contributions to Recycle NB 183,031 162,032

Contributions to PEI Minister of Environment 5,000 5,000

Management fees (note 3) 54,456 103,072

Office and general expenses 59,818 38,331

Consulting fees 36,815 21,150

Compliance reviews and audits 70,546 69,434

2,138,339 2,032,746

Administration


Legal fees ― 10,506

Professional fees 15,491 13,610


Amortization of intangible assets 5,139 10,409

112,491 129,165

EXCESS OF REVENUE OVER EXPENSES FOR THE YEAR 714,033 1,066,809

The accompanying notes are an integral part of the financial statements

APPENDIX A - SECTORAL INCOMEAdditional information for the year ended December 31, 2018


REVENUES

New Brunswick (appendix B)

2018


(appendix C) 2018

TOTAL 2018

TOTAL 2017

Environmental Handling Charges 2,446,459 382,202 2,828,661 3,118,670

Registration and renewal 2,485 515 3,000 5,600

Investment income 80,535 6,555 87,090 58,195

Other revenues 46,112 ― 46,112 46,255

2,575,591 389,272 2,964,863 3,228,720

EXPENSES

Program

Return incentives 1,250,551 241,974 1,492,525 1,424,995

Process incentives 86,590 20,169 106,759 105,657

Collection facilities incentives 8,244 416 8,660 7,216

Advertising and communications 97,624 23,105 120,729 95,859

Contributions to Recycle NB 183,031 ― 183,031 162,032

Contributions to PEI Minister of Environment ― 5,000 5,000 5,000

Management fees (note 3) 47,310 7,146 54,456 103,072

Office and general expenses 51,793 8,025 59,818 38,331

Consulting fees 32,430 4,385 36,815 21,150

Compliance reviews and audits 61,290 9,256 70,546 69,434

1,818,863 319,476 2,138,339 2,032,746

Administration

Office and general expenses 18,260 5,029 23,289 19,772

Legal fees ― ― ― 10,506

Professional fees 13,459 2,032 15,491 13,610

Management fees (note 3) 59,573 8,999 68,572 74,868

Amortization of intangible assets 4,464 675 5,139 10,409

95,756 16,735 112,491 129,165

EXCESS OF REVENUE OVER EXPENSES 660,972 53,061 714,033 1,066,809

APPENDIX B - UOMA NEW BRUNSWICKAdditional information for the year ended December 31, 2018


REVENUES

2018 2017

Environmental Handling Charges 2,446,459 2,712,581

Registration and renewal 2,485 3,400


Other revenues 46,112 46,255

2,575,591 2,813,824

EXPENSES

Program

Return incentives 1,250,551 1,192,163


Collection facilities incentives 8,244 5,896


Contributions to Recycle NB 183,031 162,032





1,818,863 1,731,362

Administration



Professional fees 13,459 12,035


Amortization of intangible assets 4,464 8,952

95,756 109,715

EXCESS OF REVENUE OVER EXPENSES 660,972 972,747

APPENDIX C - UOMA PRINCE EDWARD ISLANDAdditional information for the year ended December 31, 2018


REVENUES

2018 2017

Environmental Handling Charges 382,202 406,089

Registration and renewal 515 2,200


389,272 414,896

EXPENSES

Program

Return incentives 241,974 232,832


Collection facilities incentives 416 1,320


Contributions to PEI Minister of Environment 5,000 5,000





319,476 301,384

Administration



Professionnal Fees 2,032 1,575


Amortization of intangible assets 675 1,457

16,735 19,450

EXCESS OF REVENUE OVER EXPENSES 53,061 94,062

CHANGES IN NET ASSETSFor the year ended December 31, 2018


Unrestricted New Brunswick

Unrestricted Prince Edward

Island Reserve Fund

2018

Balance, Beginning of Year 1,948,790 215,274 1,600,000 3,764,064

Excess of revenues over expenses 660,972 53,061 ― 714,033

Allocation to reserve fund (note 4) (1,500,000) (100,000) 1,600,000 ―

Balance, End of Year 1,109,762 168,335 3,200,000 4,478,097

Unrestricted New Brunswick

Unrestricted Prince Edward

Island Reserve fund

2017

Balance, Beginning of Year 1,476,043 171,212 1,050,000 2,697,255

Excess of revenue over expenses 972,747 94,062 ― 1,066,809

Allocation to reserve fund (note 4) (500,000) (50,000) 550,000 ―

Balance, End of Year 1,948,790 215,274 1,600,000 3,764,064


FINANCIAL POSITIONAs December 31, 2018


ASSETS

2018 2017

Current Assets

Cash 897,250 2,304,762

Accounts receivable 674,508 801,354

Advances to Recycle NB 11,836 46,255

1,583,594 3,152,371

Investments (note 5) 3,482,997 1,277,498

Intangible assets (note 6) 5,028 6,264

5,071,619 4,436,133

LIABILITIES

Current Liabilities

Accounts payable (note 7) 464,191 541,081

Advances from an organization (note 8) 129,331 130,988

593,522 672,069

NET ASSETS

Unrestricted 1,278,097 2,164,064

Reserve fund (note 4)

New Brunswick 3,000,000 1,500,000

Prince Edward Island 200,000 100,000

4,478,097 3,764,064

5,071,619 4,436,133


On behalf of the Board:Mr. David Bois, ChairmanMrs Loulia Kouchaji, Vice-Chairman

CASH FLOWSFor the year ended December 31, 2018


OPERATING ACTIVITIES

2018 2017

Excess of revenues over expenses for the year 714,033 1,066,809

Amortization adjustment for intangible assets 5,139 10,409

Changes in non-cash working capital items (note 11) 82,718 (201,275)

801,890 875,943

INVESTING ACTIVITIES

Acquisition of investments (2,205,499) (774,412)

Income on disposal of investments - 550,000

Acquisition of intangible assets (3,903) (2,517)

(2,209,402) (226,929)

Net change in cash and cash equivalents during the year (1,407,512) 649,014

Cash and cash equivalents, beginning of year 2,304,762 1,655,748

Cash and cash equivalents, end of the year 897,250 2,304,762


NOTES TO FINANCIAL STATEMENTSFor the year ended December 31, 2018


1 Governing Statute and Nature of BusinessAtlantic Used Oil Management Association Inc. (UOMA - Atlantic) (the "Organization") was incorporated on November 18, 2013 under Part I of the New Brunswick Companies Act. According to the federal and provincial Income Tax Acts, it is a non-profit organization and is therefore exempt from income taxes.

The Organization has the mandate to establish and manage an integrated program of recovery and reclamation for used oils and antifreeze and also for oil, fluid and antifreeze containers in an efficient and responsible manner.

2 Significant Accounting PoliciesThe financial statements were prepared in accordance with Canadian accounting standards for not-for-profit organizations (ASNPO) and include the following significant accounting policies.

Use of estimatesThe preparation of these financial statements in accordance with ASNPO 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 reporting 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.

Return incentivesReturn incentive expenses are recognized when the lubricating oil and antifreeze and/or containers and filters are collected by a registered collector of the Organization.

Processing incentivesProcessing incentive expenses are recognized when the lubricating oil containers are processed by the Organization's registered processor.

Financial instruments Measurement of financial instrumentsThe Organization initially measures its financial assets and financial liabilities at fair value, except for certain non-arm's length transactions. The Organization subsequently measures all its financial assets and financial liabilities at amortized cost, except for investment in quoted shares, which is measured at fair value.

ImpairmentFinancial assets measured at amotized cost are tested for impairment when there are indicators of impairment. The amount of the writedown is recognized in the statement of revenues and expenses. 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 the statement of revenues and expenses.


2 Significant Accounting Policies (continued)

InvestmentsInvestments are accounted for at market value.

Cash and cash equivalentsCash and cash equivalents consist of 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 investment.

Revenue recognitionRevenue from environmental handling charges are recognized when the lubricating oil and antifreeze 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.

Intangible assetsThe website is accounted for at cost and is amortized on the basis of its useful life using the straight-line method over a three-year period.

Expense allocationThe organization presents its expenses by functions.

Management fees shared by program and administration functions are allocated proportionally to the total budgeted environmental handling charges for each organization.

Program Administration

Management fees from 9% to 90% from 10% to 91%



3 Management FeesThe Organization retains the services of the Société de gestion des huiles usagées (SOGHU) for the purposes of assisting the Organization in the conception, implementation and operation of the recovery and reclamation program required to ensure the appropriate recovery and reclamation of the designated products in accordance with the Atlantic provinces legislative and regulatory requirements. For the year ended December 31, 2018, the pro rata basis used is 86.88% for New Brunswick (2017 – 86.35%) and 13.12% for Prince Edward Island (2017 – 13.65%).

Management fees incurred during the year with SOGHU are as follows:

New Brunswick


TOTAL

2018 $ $ $

Program 47,310 7,146 54,456

Administration 59,573 8,999 68,572

106,883 16,145 123,028

PROGRAM

Container segregation 7,798 1,178 8,976

Advertising and communication 171 26 197

Salaries, fringe benefits, and management and administration services 31,564 4,768 36,332

Consulting services 1,525 230 1,755

Office and general expenses 6,252 944 7,196

47,310 7,146 54,456

ADMINISTRATION

Office and general expenses 5,541 837 6,378

Rent 4,080 616 4,696


Amortization of fixed assets 7,767 1,173 8,940

59,573 8,999 68,572

106,883 16,145 123,028


3 Management Fees (continued)Management fees incurred during the previous year with SOGHU are as follows:

New Brunswick


TOTAL

2017 $ $ $

Program 88,999 14,073 103,072

Administration 64,647 10,221 74,868

153,646 24,294 177,940

PROGRAM

Container segregation 8,242 1,303 9,545

Advertising and communication 6,099 964 7,063

Salaries, fringe benefits, and management and administration service 60,285 9,533 69,818

Consulting services 377 60 437

Office and general expenses 13,996 2,213 16,209

88,999 14,073 103,072

ADMINISTRATION

Office and general expenses 7,402 1,170 8,572

Rent 3,889 615 4,504


Amortization of fixed assets 8,212 1,298 9,510

64,647 10,221 74,868

153,646 24,294 177,940

4 Reserve FundDuring the year, the Board of directors made the decision to increase the reserve fund by $1,600,000 (2017 – $550,000) in order to cover operating costs for one year.



5 Investments2018 2017

Term deposits, bearing interest at rates from 2.50% to 3.38%, maturing from April 2020 to May 2023 2,109,299 704,818

Mutual Funds 1,373,698 572,680

3,482,997 1,277,498

6 Intangible Assets2018 2017

AMORTIZABLE CostAccumulated amortization Net value Net value

Website 46,838 41,810 5,028 6,264

7, Accounts Payable

2018 2017

Trade 307,315 294,207

Trade - SOGHU 123,027 177,940

Sales Taxes payable 33,849 68,934

464,191 541,081

8 Advances from an Organization

Cash flows and the current managements of the Organization and SOGHU were assured by a common general manager. The advances from an organization consist of expenses assumed relating to the management of the Organization, based on an agreement renewable in 2018 (renewed in January 2019). These advances are interest-free and do not include terms of repayment. The balance owed is $129,331 as at December 31, 2018 (2017 – $130,988).

9 CommitmentsContributions to Recycle NBUnder the Designated Material Regulation of the Clean Environment Act of New Brunswick, the Organization must cover annual administrative costs incurred by Recycle NB, with regard to oil, oil filters, oil containers, glycol and glycol containers. The estimated amount for 2019 is $183,000.

Contribution to PEI Minister of EnvironmentUnder the Materials Stewardship and Recycling Regulations of the Environmental Protection Act of Prince Edward Island, the Organization must pay an annual fee of $5,000.

Management and administration servicesThe Organization has reached an agreement with SOGHU that expires on December 31, 2023. Under this agreement, the Organization must pay a management fee to SOGHU, which is calculated on a pro rata basis of total hours spent. For the year ended December 31, 2018, the pro rata basis used is 85.69% for SOGHU (2017 – 85.18%) and 14.31% for the Organization (2017– 14.82%).


10 Related Party TransactionsIn the regular course of its business, the Organization receives environmental handling charges from its members. Some members have representatives who are members of the Board of Directors. These transactions are measured at the exchange amount and are subject to the usual commercial conditions of the Organization.

During the year, the principal transactions concluded with companies or organization members of the Board of Directors during the year are as follows:

REVENUE

2018 2017

Environmental Handling Charges 230,835 484,680

The transactions concluded with companies or organization members of the Board of Directors during the year represents 7.6% of the environmental handling charges (2017– 15.5%).

Finally, accounts receivable include an amount of $45,106 (2017– $84,770) to be received from companies managed by members of the Board of Directors.

11 Change in non-cash working capital items2018 2017

Accounts receivable 126,846 42,089

Prepaid expenses ― 1,287

Advance to Recycle NB 34,419 (46,255)

Accounts payable (76,890) (142,560)

Advances from an organization (1,657) (55,836)

82,718 (201,275)



12 Financial InstrumentsThe Organization is exposed to various risks through its financial intruments. The following analysis provides a measure of the Organization's risk exposure and concentrations as at December 31, 2018.

Credit riskCredit risk is the risk that one party to a financial instrument will cause a financial loss for the other party by failing to discharge an obligation. The Organization's main credit risks relate to its accounts receivable.

Market riskMarket risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: interest rate risk, currency risk and other price risk. The Organization is exposed to 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 on its fixed and floating interest rate financial instruments. Fixed interest rate instruments subject the Organization to fair value risk, while floating rate instruments subject it to cash flow risk.

As at December 31, 2018, the Organization's exposure to interest rate risk is as follows:

Cash Variable rate

Accounts receivable Non-interest bearing

Advances to an organization Non-interest bearing

Investments Fixed rate and non intrest bearing

Accounts payable Non-intrest bearing

Other price risk Other price risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices (other than those arising from interest rate risk or currency risk), whether those changes are caused by factors specific to the individual financial instrument or its issuer, or factors affecting all similar financial instruments traded in the market. The Organization's exposure to this risk arises from its investments.

13 Comparative figuresCertain comparative figures have been reclassified to ensure consistency with the current year's presentation.

#1 #2 #3

Used Oil Cycle

Generators Collectors Processors

The collection rate of used oil coming from auto repair shops is very good. However, the contamination risk remains present for small scale oil generators.

When we collect used oils at the auto repair shops and collection facilities, the oil is pumped into tanker trucks and transported to a processor.

Used oil is a product that can be re-refined or regenerated almost indefinitely.

1101 Brassard Blvd., #214 Chambly (Québec)J3L 5R4

1 833 221 8662 (NB)1 833 222 8662 (PE) Fax: 1 855 497 7505

[email protected]

CONTACT US

ATLANTIC USED OIL MANAGEMENT ASSOCIATION

uoma · when uoma atlantic was created in 2014, it was to set up and manage a system for the...

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