Read Your Annual CWB Reports!
In
order to evaluate the Boards performance effectively it is up to all
farmers to read the CWB’s Annual Report. There have been many changes
made to the report in the 2002-03 crop year.
The
most significant change is in the way the “Statement of Operations”
of each pool account is broken down.
The
directors have taken the first step in breaking down netted out numbers
and putting income into revenue (where it belongs), instead of
netting it out in expenses, and expenses where they belong instead of
netting them out in Revenue.
While
they stopped short of breaking down all netted numbers, I think they have
shown farmers the value of keeping revenue and expenses separated. This
new transparency shows the true $ per bushel expense associated
with the CWB operating costs.
Since
all annual reports show the previous crop year numbers along with the
numbers relating to the current crop year, the 2002 Combined Pool
Account-Statement of Operations was changed to the new system of
reporting along with the 2003 operations. This gives us a chance to
make a good comparison of the new and old way
of presenting the numbers.
In
the 2002 Annual Report (old annual report) Combined Pool
Accounts-Statement of Operations the old system
shows income netted out in the Direct Costs making the total
$115,712,000
($6.14/T
or $.17 bu).
In
the new system the 2002 Combined Pool
Accounts-Statement of Operations, the Direct Costs were $384,549,000
($20.42/T
or $.56 bu).
The
true Direct Cost became transparent when income such as recovery
of Freight Adjustment Factors, Despatch and recovery of Rail Freight Cash
Ticket Deductions were removed from expenses and properly placed in
Revenue.
Transparency
was further increased when costs pertaining to Ocean
Freight, Terminal Handling, Stevedoring, Fobbing and U.S. Rail Freight were
no longer netted out in Revenue, but placed properly in Expenses.
If
the CWB had gone all the way and broke down the rest of the netted out
numbers in Operating Costs and Revenue, the 2002& 2003 Combined
Pool Accounts-Statement of Operations would look more like the
following spreadsheets:
These
spreadsheets show that the total operating cost per bushel was $.91 for
2002 and $1.01 for 2003. (Clicking on the spreadsheets will open
them up for a larger view in a new window.)
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