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2013ANNUALREPORTHardatworkforyou. KEYPERFORMANCEINDICATORSOperationalIndicators.CollectionAccessibilityIndicators.AccessOESCollectionSitesOntarioPopulationCovered125km10kmMeasuresrelatedtotheweightofregulatedelectronicscollectedbytheprogramforrecycling.Measuresrelatedtotheconvenienceofaccessingtheprogramtohaveregulatedelectronicsrecycled.OntarioElectronicStewardship1TONNEApr12009-Mar312010TOTALTONNES173031.31KgCapitaApr12009-Mar312010TOTALTONNES345852.62KgCapitaApr12010-Mar312011TOTALTONNES522813.96KgCapitaJan-Dec2011TOTALTONNES757025.61KgCapitaJan-Dec2012TOTALTONNES767645.67KgCapitaJan-Dec2013Apr12009-Mar312010Apr12010-Mar312011Jan-Dec2011Jan-Dec2012Apr12009-Mar312010Apr12010-Mar312011Jan-Dec2011Jan-Dec2012Apr12009-Mar312010Apr12010-Mar312011Jan-Dec2011Jan-Dec2012314527520444Jan-Dec2013526AffiliatesGenerators223715672507Jan-Dec20132499OESCollectionEventsRoundups250435270228Jan-Dec2013266968525km10kmJan-Dec2011868125km10kmApr12010-Mar312011918525km10kmJan-Dec2012857725kmJan-Dec201399.510km96.4TheOESandRECYCLEYOURELECTRONICSmarksarethepropertyofOntarioElectronicStewardshipUnauthorizeduseprohibited.1.SourceStatisticsCanadaOctober2013OntarioPopulationwww.statcan.gc.caApril2009-December2013ThistablereflectsKPIsasof2013 PublicAwarenessandDirectIndustryParticipationIndicators.FinancialIndicators.Measuresrelatedtothepublicsawarenessoftheprogramandthedirectparticipationofobligatedindustryintheprogramforenvironmentalcompliance.ofServiceProviders209446360512ofStewardsRemitters735797770787AwarenessofOESandRecycleYourElectronics.ca2TotalCostPerTonneOperationalCostpertonnePECostpertonneOverheadCostpertonne22651231.121249.72986.04283.6147.7543.9145.65111.1374.642010KEYPERFORMANCEINDICATORS90818.663201120122013TheOESandRECYCLEYOURELECTRONICSmarksarethepropertyofOntarioElectronicStewardshipUnauthorizeduseprohibited.2.SourceIpsos-ReidOctober20131671.9420101508.8920111104.5920121104.5920129902013Apr12009-Mar312010Apr12010-Mar312011Jan-Dec2011Jan-Dec2012795Jan-Dec2013Apr12009-Mar312010Apr12010-Mar312011Jan-Dec2011Jan-Dec2012649Jan-Dec2013Apr12009-Mar312010Apr12010-Mar312011Jan-Dec201167Jan-Dec201264Jan-Dec2013April2009-December2013ThistablereflectsKPIsasof2013AwarenessCostMeasuresrelatedtotheoverallcostsofdeliveringtheprogramincludingcollectionconsolidationtransportationauditsprocessingadministrationcommunicationsmanagementandprofessionalfees.3 4TheOESprogramcontinuestogainmomentumandrealizegreatresults.AsChairoftheOESBoardIamhonouredtopresentthe2013AnnualReport.In2013theOESBoardfocusedoncontinuingtomanageasustainableandresponsibleend-of-lifeelectronicsprograminOntarioakeyelementofwhichisensuringfinancialstability.TothisendOEStransitionedtoacost-recovery-fundingmodelonMay12013onethatsetsstewardfeesonthebasisofactualcosts.ThenewmethodologywhichwasapprovedbytheMinisteroftheEnvironmenthasbeenusedtodeterminethefeesnecessarytocoverthecostsofrecyclingwasteelectricalandelectronicequipmentWEEEin2013aswellasprovideforsufficientoperatingreservesanddeficitrecovery.RevisedfeessuccessfullycontributedtorestoringOEStoapositivenetassetpositionasofDecember312013.Costrecoveryisjustoneofthestepstakenthisyeartomeetgrowingdemandwhilebalancingrevenueandcosts.OnOctober302013OESenteredintoanagreementwithElectronicProductsRecyclingAssociationEPRAfortheoutsourcingofOESmanagementandoperationalservices.EPRAbringstheextensiveexperienceofoperatingsevenotherelectronicsstewardshipprogramsacrossthecountryinworkingwithOEStofurtherbuildtheelectronicsprograminOntario.TheOESprogramcontinuestogainmomentumandrealizegreatresults.Injustoverfouryearsresidentsandbusinessestogetherwithournetworkofapprovedserviceprovidershavediverted247815tonnesofelectronicwastefromourwaterwaysandecosystems.In2013wecollected76764tonnesmoree-wastethantheyearprioronbothatonnageandpercapitabasiswhilecontinuingtoincreaseaccessibilityforOntariansanddrivedowncoststomanagetheprogram.WeareproudthattheseeffortshaveresultedinOESachieving109ofplantarget70425bytheendof2013fortherecyclingofWEEE.Residentsandbusinessesarerecyclingtheirelectronicsinrecordnumberssupportedbyanetworkofserviceprovidersthatplayacrucialroleindrivingsuccessanddeliveringresults.Togetherwearesupportingacleanerenvironmentalfutureforall.ThisyearssignificantachievementsweresupportedbytheeffortsoffellowBoardmembersandbyadedicatedOESstaff.OnbehalfoftheBoardIwanttothankformerExecutiveDirectorJonathanSpencerwholeftOESastheyeardrewtoacloseforhisdedicationandmanagementoftheprogramoverthepasttwoyears.JoiningusasActingExecutiveDirectorLyndaKitamurahasdrawnonherexperienceworkingwithEPRAinaugmentingsystemandprocesssupportforOESstakeholders.OurcommitmenttodeliveraneffectiveefficientandconvenientprogramthatkeepspacewithdemandisstrengthenedbythemomentumdemonstratedbyOntarians.Aswelookforwardto2014weremainedcommittedtocontinuingtobuildasustainableandresponsibleprogramforelectronicwastediversion.MESSAGEFROMTHECHAIRMESSAGEFROMTHECHAIRNickAubry 5...Ontarianswanttobepartofasolutionforresponsiblesafeandfiscallyprudentrecycling.2013wasanexcitingyearforOntarioswasteelectricalandelectronicequipmentWEEEdiversionprogramonefilledwithcontinuedmomentumandgreatresults.InJulytheprogrammarkedasignificantmilestonewiththeannouncementthatsinceApril2009morethan200000tonnesofelectronicwastehadbeencollectedandsuccessfullydivertedfromlandfillacrosstheprovince.ThisachievementconfirmsthatOntarianswanttobepartofasolutionforresponsiblesafeandfiscallyprudentrecycling.Inshorttheyaremakingadifference.Werealldoingourpartbymakingdisposingofunwantedelectronicsmoreconvenientthanever.Accessibilityresearchconductedin2013showsthat96.4percentofOntarianslivewithin10kilometresofacollectionsite.ThroughtheeffortsofOESanditsserviceprovidersourcollectionnetworkhasexpandedtothepointwherevirtuallyeveryOntarianhasaccesstoadrop-offpoint.Wealsofoundcompellingwaystobuildprogramawarenessandeducatethepublicaboutitscollectionefforts.OESworkedwithlocalOttawaartiststocommissionaRecycleYourElectronics.caFireflypendantmadefromrecycledelectronicsthatwasfeaturedatNuitBlancheOttawa-Gatineauagrassrootsall-nightcommunityfestival.WealsolaunchedapilotmulticulturaleducationprogramwiththeChinesecommunityintheGreaterTorontoAreaGTA.ThepilotwasconductedintraditionalChineseandgarneredextensivemediacoverageinmajorChinesemedia.Wereproudtosaythatbothoftheseprojectswererecognizedbytheprestigious2014IABCTorontoOVATIONAwardsprogram.Knowingthecrucialrolethateducatorsplayinteachingfuturerecyclerstheimportanceofresponsiblemanagementofend-of-lifeelectronicsthisyearwealsodevelopedcoursecontentforusebygrades9and10studentsandtheirscienceteachersintheclassroom.Asofthiswritingeducationcurriculumoutreachhasrolledoutwithenthusiasticresponsefromtheeducatorcommunityonitsvaluetoapreliminarylistofsome40districtschoolboards.OESalsotooksomeimportantstepstoensurestabilityfortheprogram.2013sawthetransitiontoacost-recovery-fundingmodeleffectiveMay12013inaccordancewithregulatorydirection.Themodelbringsfinancialstabilitytotheprogrambyallowingfortheprovisionofoperatingreservesmaterialcategorydeficitrecoveryandannualrecoveryofactualcosts.Aswelookaheadtomarkingourfifthyearofoperationsweenvisageaprogramthatcontinuestomaturewithstablecollectionvolumesever-expandingeducationeffortsandbackedbyasustainablefundingmodel.Forallthatwehaveachievedtogetherin2013andforyourcontinuedparticipationinthisimportantprogramthankyou.MESSAGEFROMTHEACTINGEXECUTIVEDIRECTORLyndaKitamuraMESSAGEFROMTHEACTINGEXECUTIVEDIRECTOR 6OurMissionToleadend-of-lifeelectronicscollectioninanenvironmentallyresponsibleandcost-effectivemannerforthebenefitofallOntarians.PROGRAMOVERVIEWAttheendof2013stoodat64growingnearlythreefoldfrom20092010.ProgramAwarenessRecycleYourElectronics.caandOntarioElectronicStewardship2264CostReductionTotalprogramcostspertonnein2013werereducedto990from1105theprioryear.-115Accessibility96.4ofOntarianslivewithin10kilometresofacollectionpoint.96.4OESisanot-for-profitindustryorganizationthatbeganoperationsinApril2009withleadingretailinformationtechnologyandconsumerelectronicscompaniesthatmakeandmarketelectronicproductsinOntario.WecollectfeesfromcompaniestofulfillobligationssetoutbyOntariosWasteDiversionAct2002andtheWasteElectricalandElectronicEquipmentWEEEProgramPlan.TheprogramrequireselectricalandelectronicequipmentEEEbrandownersfirstimportersfranchisorsandassemblersorstewardstofundthediversionoftheirproductsfromthewastestream.OESisgovernedbyavolunteerBoardofDirectorsdrawnfromacrossthesupplychainthatrepresentsawiderangeofobligatedelectricalandelectronicequipment.ContinuedMomentumTheamountofe-wastecollectedincreasedto5.67kilogramspercapitafrom5.61kilogramsin2012.5.67kg20135.61kg2012 7OESSErvicEPrOvidErTyPE2013TOTalOES-aPPrOvEdSErvicEPrOvidErSOEScoetos526Tnspottoncompnes52OESPmPoessos12OESreuserefubshes16consotoncompnes9SuppesSpeSeesnrepkes34PROGRAMHIGHLIGHTSOESSERVICEPROVIDERSJANUARYDECEmbER2013Ournetworkofserviceprovidersincludesmunicipalretailercommercialandnot-for-profitcollectorsaswellastransportersconsolidatorsandprimaryprocessorsandtheirgenerators.Togetherthenetworkpartnersareworkingeffectivelytomeetdemandanddeliverprogramresults.76764tonnescollectedin2013exceedingtheforecastedplantargetby9OEShasexceededplantonnagetargetsthreeyearsinarow.Totalcostpertonnedecreasedto990down10.4from2012reflectingthelowestprogramcostsinfouryears.Recyclingefficiencythetotalpercentageofmaterialsprocessedrecycledwithoutlandfillingorconsumedasanenergysourceduringprocessingstoodat87.AnimportantprogrammilestonewasachievedsinceApril2009morethan200000tonnesofelectronicwastehasbeencollectedrecycledandsuccessfullydivertedfromlandfillacrosstheprovincegreaterthananyotherdiversionprogramofitskindinCanada.FourinfiveOntariansareawaretherearespecificwaysforend-of-lifeelectronicstobehandled.OfthoseawareofRecycleYourElectronics.caandOntarioElectronicStewardship66areactivelyengagedwiththeprogram49saytheyhaverecycledsomething. 8ACCESSIbILITYOvertheyearsOEShassteadilyfocusedondevelopingthenetworkinfrastructureinruralandremotecommunities.In2013OEShasexpandeditsnetworktoincludeapprovedandaffiliatesitesandeventsandopenedconvenientaccesstovirtuallyallOntarianswhowishtodisposeoftheirout-of-useelectronics.Astudyconductedin2013byAgoraResearchGroupInc.comparedthegeographiclocationofOES-approvedcollectionsitesandeventsandaffiliatesagainstcurrentOntariostreetnetworkandpostalcodedata.Totalaccessibilityresultsshow96.4ofOntarianslivewithin10kmofacollectionsitewhile99.5livewithin25kmand99.7livewithin50km.Theresultsofthestudyareshownbelow.OEScOllEcTiONSiTESGENEraTOrcOllEcTiONSiTESTOTalaccESSiBiliTyTotKometesOntoPoputoncoveedTotKometesOntoPoputoncoveedTotKometesOntoPoputoncoveed10km91.310km92.510km96.425km99.325km98.025km99.550km99.750km98.950km99.7ACCESSIbILITYkm2013 9AspartofcontinuousICIsupportOESofferedpickupservicesthroughouttheyeartoarrangeforthecollectionofWEEEinseveralspecificmarketsAuroraBarrieBracebridgeCobourgEastGwillimburyGeorginaMidlandNewmarketPortHopeandWoodstock.Alimitedtimetwo-weekpromotionalofferwasalsoextendedtosmallbusinessesinOntarioviapaidprintmediainOctoberandmetwithsuccess.LIMITEDTIMEOFFERFORSMALLbUSINESSESINONTARIO.mARkETDEVELOPmENTAspartofcontinuingeffortstopromotetheprogramandeducatethepubliconresponsibleelectronicwastediversionandafter-marketresearchtoassesstheopportunityOESlaunchedapilotculturaleducationprogramwiththeChinesecommunityintheGreaterTorontoAreaGTA.ThepilotconductedintraditionalChinesegarneredextensivemediacoverageinmajorChinesemediaandsecuredenthusiasticinterestinthecommunity.OESisactivelyworkingwiththeChinesecommunitytofurtherengagethroughcollectioneventsandbusinessdevelopmentopportunities. 10AsresponsiblemanagersofelectronicsrecyclingandreuseinOntarioOESiscommittedtodrivingcontinuousimprovementsandenhancementsthatsupportitsmandate.OnMay12013transitionedtoacost-recovery-fundingmodelthatsetstewardfeesonthebasisofactualprioryearcosts.ThisnewfundingmodelwhichwasapprovedbytheOntarioMinistryoftheEnvironmentbringsfinancialhealthandstabilitytotheprogramincludingcoveringthecostsofrecyclingandmakingallowancesforsufficientoperatingreserves.TherevisedfeeshelpedrestoreOEStoapositivenetassetpositionasofDecember312013.OnOctober302013OESenteredintoanoutsourcingagreementwithElectronicProductsRecyclingAssociationEPRA.EPRAoperatessevenotherprovinciallyapprovednot-for-profitelectronicsstewardshipprogramsacrossthecountryprovidingeffectiveandefficientregulatorycomplianceonbehalfofstewardsoperatinginthesejurisdictions.OESmanagementandoperationalservicesarenowbeingprovidedbyEPRAanextensionthataugmentssystemandprocesssupportforstakeholderswhileOEScontinuestoberesponsiblefortheOntarioWEEEprogram.Quarterlydashboardspostedonthewebsitetrackcomplianceactionstoinformstakeholdersandprovideassuranceregardingourongoingcomplianceefforts.PROGRAMENHANCEMENTSCOmPLIANCEATwORkOESmonitorsandreportsstewardandserviceprovidercompliancethroughariskmanagementframeworkandriskprofilingariskmanagementandcompliancecommitteethatmeetsregularlytwoprogramenforcementofficersinthefieldanincidentreportinglinetoencourageintelligencegatheringauditsofallserviceprovidersthatparticipateintheprogramandthird-partyinvestigations. 11EFFICIENCYEFFECTIVENESSAT-A-GLANCEMaTErialPrOcESSMetsFeousaumnumcoppeMetalsaremanuallyandormechanicallyseparatedandsmeltedforreclaimOthepeousmetsPreciousmetalcontainingchipsandcircuitboardsaremanuallyandormechanicallyseparatedandsmeltedforreclaimofthepreciousmetalscbesndwesManuallyandormechanicallyseparatedandsmeltedformetalrecoveryHghndowgdeutbodsManuallyandormechanicallyseparatedandsmeltedforreclaimofpreciousmetalsGssnon-hzdousNon-leadedglassismanuallyseparatedforrecoveryormixedwithleadedglassstreamforsmeltinglededGsscthoderyTubescrTededpsmdspyGlassismanuallyandormechanicallyseparatedandeithersentintoleadedglassproductionorsmeltedtoreclaimleadfromtheglasswhAThAPPENSTOELECTRONICwASTEProcessingrecycledelectronicsresultsintherecoveryofrawmaterialssuchasmetalandglassasnotedbelow.Wasteelectronicsarecollectedandthenshippedtoaconsolidationfacilitywheretheyareinspectedandweighed.Fromthereprimaryprocessorssafelydismantletheitemsandseparatethemintoindividualcomponents.Valuablecommoditiessuchassteelaluminumcopperglassandplasticarethenshreddedsmeltedorprocessedasrawmaterialsforfutureuse. 12PROGRAmGROwThIn2013theOESprogramexperiencedasmallincreaseinthetargetvolumeofWEEEcollectedforend-of-lifeelectronicsmanagementandconsistentwiththestablevolumesthataretobeexpectedastheprogramcontinuestomature.TOTALTONNESCOLLECTEDThefollowingchartdepictsthetotaltonnesofWEEEcollectedforeachyearsincetheprogramsinception.TOTALTONNESCOLLECTED2009-2013201320122011201020094000045000500005500060000650007000075000800008500005000100001500020000250003000035000TotalTonnesJanFebMarAprMayJunJulAugSepOctNovDec7676675701522823039312464 13TOTALTONNESPROCESSEDThefollowingchartdepictsthetotaltonnesofWEEEprocessedforeachyearsincetheprogramsinception.TOTALTONNESPROCESSED2009-2013201320122011201020094000045000500005500060000650007000075000800008500005000100001500020000250003000035000TotalTonnesJanFebMarAprMayJunJulAugSepOctNovDec7553772725495632980911897 14PROMOTIONANDEDUCATION200000TONNESANDCOUNTINGThisyearOESmarkedanimportantmilestoneortheprogrammorethan200000tonnesoelectronicwastewascollectedprocessedandsuccessullydivertedromlandillacrosstheprovincesincetheprogramstartedinApril2009.ThisisgreaterthananyotherdiversionprogramoitskindinCanadaandwasachievedlessthan18monthsatertheirst100000tonnesmilestonewasreached.ThisrepresentssigniicantprogressanddemonstratesthatOntarianssupportelectronicsrecycling.Inordertocommunicatethe200000tonnesmilestoneandencourageparticipationintheprogramOESlaunchedanintegratedoutreachcampaignthatreachedmorethan6.9millionOntariansacrossradiosocialmediaonlineandprintchannelsaswellasevents.InadditionundersignatureotheExecutiveDirectorover600letterscommunicatingtheprogramaccomplishmentweremailedto110MembersoProvincialParliamentMPPsallparticipatingmunicipalelectedoicialssolidwastecontactsandseniorstaOES-contractedprocessorsandapprovedeventhosts.STAkEhOLDERCOmmUNICATIONSInanticipationothemovetothenewcostrecoverymodeloundingtheWEEEprogramOESconductedasurveyandheldseveralinormationsessionsorstewardsremittersandsub-remitters.OESalsodevelopedcomprehensiveindingsandmaterialstoassistincommunicatingrevisedstewardeesthatwentintoeectmid-yearincludingretailereducationrequentlyaskedquestionsandpoint-o-salebrochures.Inordertopromoteengagementandenhancedialoguewithserviceprovidersin2013OESredesignedanearlierorumormatbyholdingaseriesosmallermonthlyrotatingworkinggroupmeetingswithWasteDiversionOntarioinattendance.ThegoalwastoinormoraddressandrespondtoconcernsromspeciicserviceprovidertypesCollectorsProcessorsandReuseReurbishmentorganizations.Mid-yearOESconductedanOEScollectionsitesatisactionsurveywitha56.5participationrate.Theindingswerevaluableorprocessandoperationalimprovements.ActiveRecyclersOthoseawareoRecycleYourElectronics.caandOntarioElectronicStewardship66areactivelyengagedwiththeprogram49saytheyhaverecycledsomething.49KnowledgeofElectronicsRecyclingAmajorityoOntariansknowthattherearespecifcwaystorecycleelectronics.84KnowofaProgramforElectronicsReuseRecyclingOntariansknowthereisaprograminOntariothatdoesthis.2in3IpsosReidresearchindingsromOctober2013Pulsesurvey. 15Wearepleasedtobeaparticipantinaprogramthatencouragestherecyclingofitemsthatpreviouslyendedupinourlandfillandprovidesuswiththeopportunitytodivertmuchmorevolumeonanannualbasis.-BobMoorePublicWorksAssistantTownshipofDrummondNorthElmsleyTheTownshipofPapineau-CameronisverypleasedwiththeOntarioElectronicStewardshipprogramtocollectelectronicwaste.Thecommunityhaswelcomedtheprogramenthusiasticallyanditisgreattoseethevolumethatisnotgoingintothelandfill.-JasonMcMartinClerk-TreasurerTownshipofPapineau-CameronIhavebeenapartoftheOESRollOffprogramsinceinception.FromthebeginningOESstaffandmyselfwereonafirstnamebasisIhaveknownthemalltobeveryhelpful.TheprogramitselfhasprovidedtheMunicipalityofWestNipissingwithanefficientandreliableendoflifemanagementsystemforoldandunwantedelectricalandelectronicequipment.-JasonSullivanWasteDiversionCoordinatorMunicipalityofWestNipissingLandfillRECOGNIZINGTOPmUNICIPALPARTNERSMunicipalitiesarevitalpartnerswithOESineducatingcommunitiesaboutwhereandhowtheymaysafelyandresponsiblydisposeofout-of-useelectronics.OESacknowledgedits2012topperformingOESmunicipalpartnershipsbyissuingaframedcertificateofrecognitiontothemandtheirmayorsthankingthembyletterundersignatureoftheExecutiveDirectorfortheirpartintheprogramssuccess.TOPOESmUNICIPALITIES2012kILOGRAmSPERCAPITARegionKGPerCapita1.TownshipofKernsFireDepartment.............24.72.NorthRenfrewLandfillOperationsBoardDeepRiverandLaurentianHills................13.43.TownshipofJocelyn....................................12.84.TownshipofMachar....................................12.05.TownshipofHarley......................................11.96.TownshipofEmo.........................................10.67.MunicipalityofHighlandsEast....................10.18.TownshipofAlgonquinHighlands.................9.99.TownshipoftheArchipelago.........................9.9TOPOESmUNICIPALITIES2012TOTALkILOGRAmSVOLUmERegionTotalKilograms1.RegionofDurham7040002.CityofLondon5574503.HaltonRegion4830804.NiagaraRegion4020005.SimcoeCounty3697146.CityofGreaterSudbury3158827.CityofPeterborough2707538.NorthumberlandCountyCobourgHHWdepot1230839.CityofKenora6954210.DistrictofMuskoka60970MunicipalRecognitionOntariansarehearingaboutRecycleYourElectronics.cafromtheirmunicipality.42 16ThESCIENCEOFELECTRONICSEducatorsplayacrucialroleinteachingfuturerecyclerstheimportanceofsendingend-of-lifeelectronicstotherightplace.WithinputfromteachersOESdevelopedcoursecontentforuseingrades9and10sciencecurriculainOntarioschools.ThecontentwaslaunchedattheScienceTeachersAssociationofOntarioConferencewithworkbooksforteachersandactivitybooksforstudentsdevelopedspeciallyforthemmadeavailableonRecycleYourElectronics.ca.Ascanberesourcedthecurriculaarebeingrolledoutinselectmunicipalitiesanddistrictschoolboardsthroughout2014andbeingmetwithenthusiasticsupportandinterestfromeducators.SmALLbUSINESSwEEkInanefforttosupportsmallbusinessesOESplacedafull-pageadinTheBusinessGuideOctober2013aresourceaimedatprovidingpracticalinformationtosmallbusinessesandthatwasinsertedinTheGlobeandMailOntariocirculation.Theadfeaturedatwo-weeklimitedtimeofferoffreepickupforsmallbusinessesinOntariotimedtocoincidewithSmallBusinessWeekinOctober.SupportedbytheOntarioMinistryofEconomicDevelopmenttheguidewasalsodistributedtoitsSmallBusinessEnterpriseCentresacrossOntario. 17AwARD-wINNINGCOmmUNICATIONSTwo2013RecycleYourElectronics.caconsumercampaignsEthnicChineseEducationOutreachandLumipendant-FireflyShiningtheLightonElectronicsRecyclingatNuitBlancheOttawaGatineauwonprestigiousInternationalAssociationofBusinessCommunicatorsIABCTorontoChapter2014OVATIONAwardsinthreecategoriesCommunityRelationsAwardofExcellenceandSocialResponsibilityincludingEconomicSocietalandEnvironmentalDevelopmentAwardofMeritfortheOESChinesecommunityoutreachandSpecialEventsAwardofMeritfortheLumipendant-Fireflycampaign.Bothcampaignsweredevelopedwiththegoalofpromotingtheprogrameducatingthepublicontheroleitplaysandtheresourcesweprovideforsafesecureandconvenientdrop-off.TheOVATIONAwardscelebratethebestinbusinesscommunications. 18RecyclerQualificationOffice92CaplanAveSte.102BarrieONL4N0Z7April302014REELECTRONICSRECYCLERAUDITSANDAPPROVALSSincetheinceptionoftheOntarioElectronicStewardshipOESprogramrecyclershavebeenauditedagainsttherequirementsoftheElectronicsRecyclingStandardERS.NowincorporatedintothebroaderRecyclerQualificationProgramRQPtheERSdefinestheminimumrequirementsforelectronicsrecyclerstoensurethatend-of-lifeelectronicsandtheresultantmaterialstreamsarehandledinasafesecureandenvironmentallysoundmanner.TheRecyclerQualificationOfficeRQOisresponsibleforconductingauditsofallOESrecyclersonbehalfoftheprograminaccordancewiththerequirementsoftheRQP.AsofDecember312013alloftheOESapprovedrecyclershavebeenauditedbytheRQOdemonstratedconformancewiththerequirementsoftheERSandhavebeenapprovedundertheRQP.SeanDeVriesDirectorRecyclerQualificationOfficeElectronicProductsRecyclingAssociation 19AUDITEDFINANCIALSTATEmENTSANDCOmmENTARYTheauditedfinancialstatementsreflectrevenueandexpensesatcalendaryear-end.TotalrevenuefromStewardfeesandInterestat90.39millionisup32.0millionover2012.TheincreaseinrevenuereflectsthetransitiononMay12013tostewardfeesthatarebasedontheprincipleoffullcostrecovery.DirectOperatingCostsof69.7millionaredown4.90millionfrom2012reflectingoperatingefficienciesandcostcontainmentmeasuresimplementedthisyear.Otherexpensesof6.31millionaredown2.65millionfromlastyear.MostnotablysharedpromotionandeducationPEexpenseswere1.90millionlowerthisyearreflectcontinuedsavingsduetotheinsourcingofthird-partyservicefunctionsin2013.OESsawanexcessofrevenueoverexpensesin2013ofjustover14.0millionreflectingtheapplicationofacostrecoverymethodologywhichmakesprovisionforappropriateoperatingreservesmaterialcategorypastdeficitrecoveryandannualreconciliationtoactualoperatingcosts.FinancialsYearendedDecember312013 20Tel4168650200Fax4168650887www.bdo.caBDOCanadaLLPTDBankTower66WellingtonStreetWestSuite3600POBox131TorontoONM5K1H1CanadaIndependentAuditorsReportTotheMembersofOntarioElectronicStewardshipWehaveauditedtheaccompanyingfinancialstatementsofOntarioElectronicStewardshipwhichcomprisethebalancesheetasatDecember312013andthestatementsofchangesinnetassetsdeficiencyoperationsandcashflowsfortheyearthenendedandasummaryofsignificantaccountingpoliciesandotherexplanatoryinformation.ManagementsResponsibilityfortheFinancialStatementsManagementisresponsibleforthepreparationandfairpresentationofthesefinancialstatementsinaccordancewithCanadianaccountingstandardsfornot-for-profitorganizationsandforsuchinternalcontrolasmanagementdeterminesisnecessarytoenablethepreparationoffinancialstatementsthatarefreefrommaterialmisstatementwhetherduetofraudorerror.AuditorsResponsibilityOurresponsibilityistoexpressanopiniononthesefinancialstatementsbasedonouraudit.WeconductedourauditinaccordancewithCanadiangenerallyacceptedauditingstandards.Thosestandardsrequirethatwecomplywithethicalrequirementsandplanandperformtheaudittoobtainreasonableassuranceaboutwhetherthefinancialstatementsarefreefrommaterialmisstatement.Anauditinvolvesperformingprocedurestoobtainauditevidenceabouttheamountsanddisclosuresinthefinancialstatements.Theproceduresselecteddependontheauditorsjudgmentincludingtheassessmentoftherisksofmaterialmisstatementofthefinancialstatementswhetherduetofraudorerror.Inmakingthoseriskassessmentstheauditorconsidersinternalcontrolrelevanttotheentityspreparationandfairpresentationofthefinancialstatementsinordertodesignauditproceduresthatareappropriateinthecircumstancesbutnotforthepurposeofexpressinganopinionontheeffectivenessoftheentitysinternalcontrol.Anauditalsoincludesevaluatingtheappropriatenessofaccountingpoliciesusedandthereasonablenessofaccountingestimatesmadebymanagementaswellasevaluatingtheoverallpresentationofthefinancialstatements.Webelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforourauditopinion.OpinionInouropinionthesefinancialstatementspresentfairlyinallmaterialrespectsthefinancialpositionofOntarioElectronicStewardshipasatDecember312013andtheresultsofitsoperationsanditscashflowsfortheyearthenendedinaccordancewithCanadianaccountingstandardsfornot-for-profitorganizations.CharteredAccountantsLicensedPublicAccountantsMarch202014TorontoOntario 21OntarioElectronicStewardshipBalanceSheetDecember3120132012AssetsCurrentCash136194794252150Accountsreceivable1725810712852703Prepaidexpenses16968625383089455417167391CapitalassetsNote26249837246863151953717892077LiabilitiesandNetAssetsDeficiencyCurrentAccountspayableandaccruedliabilitiesNote31769871718420298NetAssetsDeficiencyInvestedincapitalassets624983724686Unrestricted131958371252907138208205282213151953717892077 22OntarioElectronicStewardshipStatementofChangesinNetAssetsDeficiencyFortheyearendedDecember312013InvestedinCapitalInternally2013AssetsUnrestrictedRestrictedTotalBalancebeginningofyear7246861252907-528221Excessdeficiencyofrevenueoverexpensesfortheyear29227414641315-14349041Investmentincapitalassets192571192571--Balanceendofyear62498313195837-13820820FortheyearendedDecember312012InvestedinCapitalInternally2012AssetsUnrestrictedRestrictedTotalBalancebeginningofyear14782323335482200000024481371Deficiencyofrevenueoverexpensesfortheyear20256524807027-25009592Investmentincapitalassets779428779428--TransfertounrestrictednetassetsNote4-2200000022000000-Balanceendofyear7246861252907-528221 23OntarioElectronicStewardshipStatementofOperationsFortheyearendedDecember3120132012RevenueStewardfees9031730458282533Investmentincome73689177176Other-1500009039099358609709DirectoperatingcostsMaterialmanagementcosts6972437674645372OtherexpensesSharedpromotionandeducation14266063323557WasteDiversionOntarioadministrationandprogramdelivery7173021044677Programdelivery9174111563330Administration32562573042365631757689739297604195283619301Excessdeficiencyofrevenueoverexpensesfortheyear1434904125009592 24OntarioElectronicStewardshipStatementofCashFlowsFortheyearendedDecember3120132012CashprovidedbyusedinOperatingactivitiesExcessdeficiencyofrevenueoverexpensesfortheyear1434904125009592AdjustmentstoreconcileexcessdeficiencyofrevenueoverexpensesfortheyeartocashprovidedbyoperatingactivitiesAmortizationofcapitalassets292274202565Non-cashcomponentofinvestmentincome-102588Lossondisposalofcapitalassets-5545Changesinnon-cashworkingcapitalbalancesAccountsreceivable44054044684652Prepaidexpenses45570604357Accountspayableandaccruedliabilities721581389471955990019225590InvestingactivitiesPurchaseofinvestments-10000000Proceedsfrominvestments-31283177Purchaseofcapitalassets192571791223Proceedsfromdisposalofcapitalassets-625019257120498204Increaseincashduringtheyear93673291272614Cashbeginningofyear42521502979536Cashendofyear136194794252150 25OntarioElectronicStewardshipNotestoFinancialStatementsDecember3120131.SignificantAccountingPoliciesThefollowingisasummaryofsignificantaccountingpoliciesoftheOrganizationaBusinessOrganizationandOperationsTheOntarioElectronicStewardshipOrganizationissetuptoactasanindustryfundingorganizationfortheadministrationofprovincialprogramsforthereductionreuseandrecyclingofwasteelectricalandelectronicequipmentWEEEpursuanttotheWasteDiversionAct2002.TheOrganizationisanot-for-profitorganizationandassuchisnotsubjecttoincometaxes.OnSeptember202007theOrganizationwasformallyincorporatedintheprovinceoOntarioasacorporationwithoutsharecapital.OnJuly92008theOrganizationwasdesignatedastheIndustryFundingOrganizationforWEEEbyregulationundertheWasteDiversionAct2002.ThePhase1WEEEProgramofficiallycommencedApril12009.ThePhase1WEEEProgramwasexpandedtoincludethePhase2materialsandtoreflecttheRevisedPhase1and2ProgramPlancomponentswhichcommencedApril12010.TheRevisedPlanencompasses44materialsgroupedinto8categories.TheOrganizationoperatestheWEEEProgramunderthetermsofaProgramAgreementdatedJuly102009withWasteDiversionOntario.OnFebruary192013theMinisteroftheEnvironmentapprovedanamendmenttotheWEEEprogramplangivingeffecttothenewcostrecoveryprinciplesforstewardfee-setting.EffectiveMay12013stewardfeesarebasedontheprincipleoffullcostrecoverywithprovisionforappropriateoperatingreservesmaterialcategorypastdeficitrecoveryoverafiveyearperiodandannualreconciliationtoactualoperatingcosts.bBasisofAccountingThefinancialstatementshavebeenpreparedusingCanadianaccountingstandardsfonot-for-profitorganizations.cRevenueRecognitionStewardfeesarerecognizedasrevenueasstewardsregisterwiththeOrganizationandsubmitunitdetails.Revenuesresultingfromcomplianceandenforcementactivitiesarerecognizedwhentheamountcanbereasonablyestimatedandcollectionisreasonablyassured.Interestincomeisrecognizedonanaccrualbasis.TheOrganizationfollowsthedeferralmethodofaccounting. 26OntarioElectronicStewardshipNotestoFinancialStatementsDecember3120131.SignificantAccountingPoliciesContinueddFinancialInstrumentsInvestmentsaremeasuredattheirfairvalue.Realizedandunrealizedgainslossesarerecordedinthestatementofoperations.TheOrganizationaccountsforitsinvestmentsonasettlementdatebasisandtransactioncostsassociatedwithinvestmentactivitiesareincludedinthestatementofoperations.UnlessotherwisenotedtheOrganizationinitiallymeasuresitsfinancialassetsandliabilitiesatfairvalueandsubsequentlymeasuresitsfinancialassetsandliabilitiesatamortizedcost.eCapitalAssetsPropertyplantandequipmentisrecordedatcostlessaccumulatedamortizationandareamortizedonthefollowingbasisComputerequipment-3yearsstraightlineFurnitureandfixtures-10yearsstraightlineMotorvehicles-5yearsstraightlineOfficeequipment-5yearsstraightlineContainers-10yearsstraightlineLeaseholdimprovements-straightlineoverthetermofthetheleaseIntangibleassetswithfinitelivesarerecordedatcostandareamortizedovertheirusefullifebeginningoncetheassetisreadyforuse.Thecomputersoftwareisbeingamortizedonastraightlinebasisover3years.fImpairmentofLongLivedAssetsTheOrganizationmonitorseventsandchangesincircumstanceswhichmayrequireanassessmentoftherecoverabilityofitslonglivedassets.IfrequiredtheOrganizationwouldassessrecoverabilityusingestimatedundiscountedfutureoperatingcashflows.Ifthecarryingamountofanassetisnotrecoverableanimpairmentlossisrecognizedinoperationsmeasuredbycomparingthecarryingamountoftheassettoitsfairvalue.TheOrganizationconsidersthatnocircumstancesexistthatwouldrequiresuchanevaluation.gUseofEstimatesThepreparationoffinancialstatementsinaccordancewithCanadianaccountingstandardsfornot-for-profitorganizationsrequiresmanagementtomakeestimatesandassumptionsthataffectthereportedamountsofassetsandliabilitiesatthedateofthefinancialstatementsandthereportedamountsofrevenuesandexpensesduringthereportingperiod.Significantestimatesincludeaccruedmaterialmanagementcosts.Actualresultscoulddifferfrommanagementsbestestimatesasadditionalinformationbecomesavailableinthefuture. 27OntarioElectronicStewardshipNotestoFinancialStatementsDecember3120132.CapitalAssets20132012AccumulatedAccumulatedCostAmortizationCostAmortizationPropertyplantandequipmentComputerequipment42575288884046914930Furnitureandfixtures6794514389581787757Motorvehicles192289934192286089Officeequipment56429221074435911239Containers119762470119761273Leaseholdimprovements81361743--2062897953117421041288IntangibleassetComputersoftware9212444230197607531689891127533502550934963210277Netcarryingamount6249837246863.AccountsPayableandAccruedLiabilitiesIncludedinaccountspayableandaccruedliabilitiesaregovernmentremittancespayableof13505432012-822907.4.UnrestrictedNetAssetsTheBoardofDirectorsrecognizedtheneedtoestablishareservefundtoenabletheOrganizationtocarryoutitsnon-profitactivitiessatisfyallofitsobligationsandensurefinancialstability.During2012theBoardofDirectorsremovedtheinternalrestrictionandtransferredthe22000000tounrestrictednetassets. 28OntarioElectronicStewardshipNotestoFinancialStatementsDecember3120135.SignificantContractsTheOrganizationhadanOperatingAgreementwithStewardEdgeInc.SEwherebySEactedasitsprogramserviceprovidertoimplementandoperatetheWEEEdiversionplanundertheWasteDiversionAct2002.ThecontractcommencedMay12009andexpiredMarch312012.TheOrganizationpaidapproximatelynil2012-542000toSEduringtheyear.Includedinaccountspayableandaccruedliabilitiesisnil2012-40581whichisduetoSE.OnNovember12013theOrganizationenteredintoaServiceAgreementwithElectronicProductsRecyclingAssociationEPRAwherebyEPRAistoprovidetheOrganizationwithmanagementandadministrativedutiesundertheProgramAgreement.EffectiveNovember162013allpersonnelattheOrganizationwereterminatedandsometransitionedtoEPRA.TheOrganizationpaid415162toEPRAduringtheyear.Includedinaccountspayableandaccruedliabilitiesis167692duetoEPRA.AllmembersoftheOrganizationsboardofdirectorsaremembersoftheEPRAboardofdirectors.6.CommitmentsDuring2011theOrganizationenteredintoaleaseagreementthatexpiresinSeptember2016.UnderthetermsoftheagreementtheOrganizationiscommittedtopaybasicrentplusadditionalrentandoperatingcosts.BasicandadditionalrentplusHSToverthenextthreeyearsisapproximatelyasfollows201412940020151332002016999003625007.FinancialInstrumentRiskExposureandManagementManagementhasestablishedpoliciesandprocedurestomanagerisksrelatedtofinancialinstrumentswiththeobjectiveofminimizinganyadverseeffectsonfinancialperformance.UnlessotherwisenoteditismanagementsopinionthattheOrganizationisnotexposedtosignificantinterestratecurrencyorcreditrisksarisingfromitsfinancialinstruments.AbriefdescriptionofmanagementsassessmentsoftheserisksisasfollowsaGeneralObjectivesPoliciesandProcessesTheBoardandmanagementareresponsibleforthedeterminationoftheOrganizationsriskmanagementobjectivesandpoliciesanddesigningoperatingprocessesthatensuretheeffectiveimplementationoftheobjectivesandpolicies.IngeneraltheOrganizationmeasuresandmonitorsriskthroughpreparationandreviewofmonthlyreportsbymanagement. 29OntarioElectronicStewardshipNotestoFinancialStatementsDecember3120137.FinancialInstrumentRiskExposureandManagementContinuedbCreditRiskFinancialinstrumentspotentiallyexposedtocreditriskincludecashandaccountsreceivable.ManagementconsidersitsexposuretocreditriskovercashtoberemoteastheOrganizationholdscashdepositsatamajorCanadianbank.Accountsreceivablearenotsignificantlyconcentratedmonitoredregularlyforcollectionsandthecarryingamountofaccountsreceivablerepresentsthemaximumcreditriskexposure.AtDecember312013theallowancefordoubtfulaccountswas471602012-35062.cLiquidityRiskLiquidityriskistheriskthattheOrganizationwillnotbeabletomeetitsobligationsastheycomedue.TheOrganizationsapproachtomanagingliquidityriskistoensurethatitwillalwayshavesufficientworkingcapitalavailableorinternallyrestrictedfundstomeetitsobligationsastheycomedue.Itsliquidityriskarisesprimarilyfromaccountspayableandcommitments.AtDecember312013theOrganizationhadpositiveworkingcapitalof13195837. 30GOVERNANCEOESBoardCompositionBoardincludingObserversasatDecember312013NikaubychiSonyofCanadaLtd.loydByntHewlett-PackardCanadaCo.reneZninToshibaofCanadaLtd.HyZekCompugenGntMTggtBestBuyCanadaPeteGibeStaplescintMhmnLondonDrugsObSERVERSciffHkingElectronicProductsRecyclingAssociationSheghKeElectronicsProductStewardshipCanadaNthieSt-PieeRetailCouncilofCanadaOESmANAGEmENTTEAmlyndKitmuActingExecutiveDirectorHowdMoisoncMaDirectorFinanceSndPkoshaBcDirectorCommunicationsPieePimDirectorBusinessOperations 885DonMillsRoadSuite400TorontoOntarioM3C1V918886461820customerserviceontarioelectronicstewardship.caLearnmoreaboutOESOntarioElectronicStewardship.caSafelyreuseandrecycleyourelectronicsRecycleYourElectronics.caTheOESandRECYCLEYOURELECTRONICSmarksarethepropertyofOntarioElectronicStewardshipunauthorizeduseisprohibited.FPO