Act
Proposed Regulatory Amendments to Regulation 16 under the Agricultural and Horticultural Organizations Act
Regulation Number(s):
Regulation 16
Instrument Type:
Act
Bill or Act:
Agricultural and Horticultural Organizations Act
Summary of Decision:
The Ontario Ministry of Agriculture, Food and Agribusiness (OMAFA) has amended Regulation R.R.O. 1990, Reg. 16: General under the Agricultural and Horticultural Organizations Act, 2006.
The regulatory amendments:
o Added a new section 10 and 11 that provides details on the proposed options allowed for financial review and reporting for agricultural and horticultural organizations. It outlines that agricultural and horticultural societies and agricultural associations whose annual revenue is $500,000 or less can conduct a formal financial review and provide a financial review certificate rather than conduct a formal audit. Those organizations whose annual revenue is more than $500,000 will still be required to provide audited financial statements.
o Added a new section 6 (2) that allows for a one-time $1500 grant to celebrate and commemorate the 100th anniversary of horticultural societies. This will be applied retroactively if the horticultural society has already reached their 100th anniversary.
The Regulatory amendments will come into force on July 1, 2025.
The regulatory amendments:
o Added a new section 10 and 11 that provides details on the proposed options allowed for financial review and reporting for agricultural and horticultural organizations. It outlines that agricultural and horticultural societies and agricultural associations whose annual revenue is $500,000 or less can conduct a formal financial review and provide a financial review certificate rather than conduct a formal audit. Those organizations whose annual revenue is more than $500,000 will still be required to provide audited financial statements.
o Added a new section 6 (2) that allows for a one-time $1500 grant to celebrate and commemorate the 100th anniversary of horticultural societies. This will be applied retroactively if the horticultural society has already reached their 100th anniversary.
The Regulatory amendments will come into force on July 1, 2025.
Analysis of Regulatory Impact:
Currently, there are approximately 475 small to medium sized, volunteer-based agricultural and horticultural organizations that are required to submit a copy of their audited financial statements and present them at their annual meeting.
The recent legislative amendment enables a more streamlined review option, to be detailed in a corresponding regulatory amendment. The cost savings of these more streamlined financial review options will come through the proposed regulatory amendment and could potentially save stakeholders up to approximately $4.3 million per year, resulting in potential savings of up to approximately $43 million over ten years.
The recent legislative amendment enables a more streamlined review option, to be detailed in a corresponding regulatory amendment. The cost savings of these more streamlined financial review options will come through the proposed regulatory amendment and could potentially save stakeholders up to approximately $4.3 million per year, resulting in potential savings of up to approximately $43 million over ten years.
Further Information:
Regulation 16
Proposal Number:
24-OMAFRA016
Posting Date:
August 30, 2024
Summary of Proposal:
The Agricultural and Horticultural Organizations Act sets out a legislative framework that provides legal status and direction for agricultural societies, horticultural societies and agricultural associations in the province of Ontario.
On December 4, 2023, Bill 139, Less Red Tape, More Common Sense, 2023, received royal assent. The proposed legislative amendments to the Agricultural and Horticultural Organizations Act were approved:
o Legislative amendments were approved for section 13 and 15 (1)(a), with consequent changes to sections 11, 16 and 41. The legislative amendments were to allow payments to directors, officers or members of agricultural or horticultural societies for services performed in capacities other than their official duties and to enable less onerous financial reviews.
To complete the cabinet direction, the Ministry is now proposing regulatory amendments to Regulation 16 on the following:
o New section 10 and 11: To provide details on the proposed options allowed for financial review and reporting for agricultural and horticultural organizations. It will outline that agricultural and horticultural societies and agricultural associations whose annual revenue is $500,000 or less can conduct an informal financial review and provide a financial review certificate rather than conduct a formal audit. Those organizations whose annual revenue is more than $500,000 will still be required to provide audited financial statements.
o New section 6 (2): To allow for a one-time $1500 grant to celebrate and commemorate the 100th anniversary of horticultural societies. This will be applied retroactively if the horticultural society has already reached their 100th anniversary.
This proposal will provide for burden reduction by expressly permitting small and medium-sized organizations a more streamlined and less expensive financial review process by allowing for a financial review certificate rather than audited statements to be submitted to the Director and presented at their annual meeting.
This change will bring the AHOA financial review and reporting rules provisions more in-line with the spirit of the ONCA which allows for less onerous financial review for other non-profits.
The change to centennial grants will bring horticultural societies in-line with agricultural societies for their centennial recognition.
On December 4, 2023, Bill 139, Less Red Tape, More Common Sense, 2023, received royal assent. The proposed legislative amendments to the Agricultural and Horticultural Organizations Act were approved:
o Legislative amendments were approved for section 13 and 15 (1)(a), with consequent changes to sections 11, 16 and 41. The legislative amendments were to allow payments to directors, officers or members of agricultural or horticultural societies for services performed in capacities other than their official duties and to enable less onerous financial reviews.
To complete the cabinet direction, the Ministry is now proposing regulatory amendments to Regulation 16 on the following:
o New section 10 and 11: To provide details on the proposed options allowed for financial review and reporting for agricultural and horticultural organizations. It will outline that agricultural and horticultural societies and agricultural associations whose annual revenue is $500,000 or less can conduct an informal financial review and provide a financial review certificate rather than conduct a formal audit. Those organizations whose annual revenue is more than $500,000 will still be required to provide audited financial statements.
o New section 6 (2): To allow for a one-time $1500 grant to celebrate and commemorate the 100th anniversary of horticultural societies. This will be applied retroactively if the horticultural society has already reached their 100th anniversary.
This proposal will provide for burden reduction by expressly permitting small and medium-sized organizations a more streamlined and less expensive financial review process by allowing for a financial review certificate rather than audited statements to be submitted to the Director and presented at their annual meeting.
This change will bring the AHOA financial review and reporting rules provisions more in-line with the spirit of the ONCA which allows for less onerous financial review for other non-profits.
The change to centennial grants will bring horticultural societies in-line with agricultural societies for their centennial recognition.
Contact Address:
1 Stone Road West
Guelph, N1G 4Y2
Guelph, N1G 4Y2
Royal Assent Date:
July 1, 2025
Decision:
Approved