AFMNet 2009/2010 Annual Report Calendar
Who we are: AFMNet’s Vision “AFMNet will be Canada’s foremost network for bio-materials and food-for-health solutions.”
AFMNet’s Mission: “To conduct and facilitate multidisciplinary research to develop transformative foods and bio-materials.” The Advanced Foods and Materials Network (AFMNet), established in 2003, is a not-for-profit corporation funded by the Networks of Centres of Excellence (NCE), Canada’s flagship science and technology program (www.nce.gc.ca). Over our first seven years, we have become Canada’s pre-eminent organization in advanced foods and bio-materials research, establishing an infrastructure that is resulting in the next generation of commercially viable, socially acceptable, valued-added products and processes for the benefit of all Canadians. AFMNet’s 148 panCanadian researchers represent the full range of expertise in the pure, applied, life and social sciences, and in the humanities.
AFMNet Research Expertise
In addition to our talented researchers, AFMNet comprises hundreds of students, professionals, industry partners and government agencies, working to maximize our impact in four key areas of research: g Nanoscience related to food and bio-materials. This molecular level technology has a host of agri-food applications, from creating packaging that keeps food fresher longer to enhancing the bioavailability of nutraceuticals and improving the delivery of pesticides and fertilizers within the soil. g Food, nutrition and health. Functional foods, nutraceuticals and other bioactive compounds can reduce or prevent dietrelated chronic diseases such as diabetes, hypertension and certain types of cancer. g Consumer attitudes and behaviour in conjunction with regulatory policy. Industry and regulators consistently grapple with questions about public reactions to food innovations. Through strategic research, AFMNet provides hard data to help inform those discussions. g Traceability and authenticity of foods and food ingredients. By developing technologies and systems to track ingredients from field to fork, we can enhance food safety, increase consumer confidence in the food system and give Canadian agri-food companies a globally competitive edge.
d Computer Science
d Life Science
d Pharmacy
d Humanities
d Mathematical Science
d Physical Science
d Law
d Medicine
d Social Sciences
A Message from AFMNet Management We have decided to do something a little different this year. In an effort to keep AFMNet front-of-mind throughout 2011, we have created an Annual Report Calendar, featuring 12 months of exciting Network photos and accomplishments. We hope you will hang this calendar on your office wall, remember the important role you play in our successes and continue to look for ways to build our mutually beneficial partnership. If you’re new to the AFMNet community, we hope this calendar will tell you a little bit about us and pique your interest in becoming more involved in a network that is producing long-term benefits for Canadians.
Another Year of Continued AFMNet Success! January: We are Canada’s funder of multi-disciplinary
July: We are addressing food safety and supply concerns that matter to Canadians.
food and bio-materials research in Canada.
August: We are providing critical and timely financial
February: We are mentoring and supporting the next
support, educational guidance and business advice to get research out of the lab, to Canadians.
generation of researchers.
March: We are sparking the interest of aboriginal youth in food science and nutrition research.
September: We are forging national and international collaborations.
disease in Canadians.
October: We are getting the message out. November: We are bringing together bright minds to
May: We are helping the food-processing industry
help guide our Network and ensure the most effective spending of funds.
April: We are helping reduce the occurrence of chronic reduce salt in the food supply.
June: We are leading the way in cutting edge Nutrigenomics research.
December: Our talented staff is working hard to fulfill the AFMNet Mission of being Canada’s unique network for food-for-health solutions.
Thank you for being a part of AFMNet’s success. We are proud of what we have accomplished and look forward to the future … working together, our potential is unlimited.
Dr. Perry Lidster, AFMNet Managing Director
Dr. Rickey Yada, AFMNet Scientific Director
Dr. Larry Milligan, Chair, AFMNet Board of Directors
g From understanding and controlling food-borne microbes to developing a heart healthy alternative to artery-clogging trans fats to making a natural product that enhances kidney function and lowers blood pressure, the Advanced Foods and Materials Network is Canada’s food and bio-materials research champion. g Our publications prove it: Since the launch of the Network, AFMNet-funded research has resulted in 806 publications, advancing knowledge and bolstering Canadian research and partnerships. Among the Network’s 504 refereed publications, impact factors (i.e., the frequency in which an article has been cited by other scientists) can be assigned to 384 of the articles, with 3.63 an average impact factor for AFMNet in journals. This is almost double the average of 1.9 in food science & technology and nutrition journals.
We are Canada’s funder of multi-disciplinary food and bio-materials
research in Canada.
g We direct nearly $4.5 million a year in dedicated Canadian research funding to cutting-edge food and bio-materials projects. g We secured more than $2.4M in external funding commitments this year to support our research projects. g A dynamic new cycle of projects has been selected for funding beginning April 1, 2011, once AFMNet secures renewal funding from the Networks of Centres of Excellence.
We are mentoring and supporting the next generation of researchers. g AFMNet has contributed to the training and development of 639 students – with 71% transitioning to academia, 7% to government, 7% to industry and 15% to other sectors. g 154 Highly Qualified Personnel (HQP) are currently involved in AFMNet projects. g We started an AFMNet HQP Association page on Facebook and are climbing towards our goal of 100 members! g Our popular Annual Scientific Conference includes seminars and workshops for HQP, HQP-only social events and a poster competition. g We have supported 50 national and 20 international HQP research training visits and cross-disciplinary laboratory exchanges to date.
g 84 AFMNet HQP attended the Professional Development School (PDS) in January 2010, double the attendance of the first PDS in 2007. In addition, and for the first time, we had attendees from three other Networks of Centres of Excellence, looking to gain the valuable market-ready insights shared at this event. g The quality of our HQP program has been recognized, discussed and emulated nationally and internationally, in such organizations as the NCE PrioNet and in the EU’s Network of Excellence in Monitoring and Quality Assurance in the Food Supply Chain (MoniQA). g Since 2003, AFMNet has distributed $137,000 to 60 HQP through our Research Travel Grants, Undergraduate and Post-graduate Research Supplements, Marilyn Griffith Memorial Scholarships and Leadership in Training Awards.
We are
sparking the interest of aboriginal youth in food science and nutrition research.
We provide Aboriginal students in grades 11 and 12 with a unique opportunity to work alongside some of Canada’s top scientists and conduct experiments in cutting-edge food and nutrition research, through our Verna J. Kirkness “Be a Food Researcher for a Week” program. g In March 2010, after an application process, ten First Nations, Métis and Inuit high school students – from Ontario, Manitoba, Saskatchewan and Nunavut – were selected to participate. Eight students spent their week in Ontario at the University of Toronto, Ryerson University, George Brown College and the University of Guelph, while 2 more participants travelled to the University of British Columbia – Okanagan. g In addition to positively affecting the lives of participating students, the Canadian media took great interest in the 2010 internships, with national coverage in 8 daily newspapers; 10 community papers; 12 online media; 5 television programs and 3 radio programs, with a total audience reach of 5.5 million people. The 2010 internships built on the success of the 2009 inaugural program, which has already seen many of its original 12 participants expand their career choices and commit to further education, including science streams: g Kekodonce (Keko) Williams, 18, a resident of the Mohawk Territory of Kahnawake, Québec, is now a second-year student of the Pure and Applied Science program at Montreal-based Marionopolis College. Keko credits the internship for having a significant impact on his choice of educational pursuits. g For Gabrielle McCallum, 18, a Day Star First Nation resident in Punnichy, Saskatchewan, university used to seem like a scary place. After participating in the 2009 program, however, she was accepted to study science at the University of Saskatchewan and started in September 2010. g Another 2009 participant, Lindsay Bristow of Winnipeg, Manitoba, began studying at the University of Manitoba in September 2009, with a focus on nutrition. For Bristow, 18, who is of First Nations descent, her interest in sciences was augmented as a result of the hands-on research she experienced in the program, as opposed to learning theory through lectures at school.
We are helping reduce the occurrence of chronic disease in Canadians. g AFMNet researchers led by André Marette at Université Laval are working to isolate fish protein bio-active ingredients - so called “power peptides.” These power peptides can then be used to create functional foods capable of preventing insulin resistance, cardiovascular disease and obesity. g Omega-3 fatty acids can help prevent major health issues such as obesity, cancer and cardiovascular disease. Vasantha Rupasinghe from the Nova Scotia Agricultural College has patented a new, natural food product made with antioxidants extracted from apple skins. The product acts as a preservative for Omega-3 polyunsaturated fats and as a nutritional supplement – all without the negative impacts on flavour and sensory qualities of existing products. The apple skin-based antioxidant will be available commercially within the next year. g University of Manitoba’s Rotimi Aluko has created a natural food product from pea peptides designed to reduce hypertension and slow down the effects of kidney disease – all without the damaging side-effects that come with anti-hypertensive drugs. The product is drawing closer to its debut on store shelves, following successful human and animal clinical trials. g Gianfranco Mazzanti from Dalhousie University and Alejandro Marangoni from the University of Guelph are leading a research team developing a newly patented fat mixing technology. This new technology will allow trans-fats in baked goods – implicated in cardiovascular disease, type-2 diabetes and obesity - to be replaced with healthier, fully hydrogenated fats derived from soybean oil.
We are helping the food-processing industry
reduce salt in the food supply.
Over 5.3 million Canadians (nearly a quarter of the population) have hypertension and over 90% of Canadians who reach 80 years of age will be afflicted. Costly antihypertensive medication is taken by 38% of men and 46% of women over age 60. It is estimated that as many as 17,000 cases/year of stroke and heart disease are attributable to excess dietary sodium, resulting in ~30 deaths/day. The cost of excess dietary sodium to Canada’s health care system, in direct treatment of hypertension alone, is estimated at $430-540 million/year. Canada needs to address these dire numbers and AFMNet is helping.
g Rickey Yada and AFMNet researcher Dérick Rousseau spoke at a Health Canada workshop on salt-reduction research and product reformulation (February 2009). g Dr. Yada, AFMNet ISAC member Mary L’Abbe and AFMNet researcher Lori Sheremeta spoke at a workshop, Developing a Research Agenda to Support Sodium Reduction in Canada, organized by CIHR. Held in January 2010, the focus of this meeting was to look at monitoring sodium intake levels and sodium levels in foods; product reformulation and low sodium alternatives; and strategies to facilitate behaviour change in Canadians. g AFMNet held a Discretionary Fortification Workshop (February 2010) in partnership with Health Canada and AAFC’s Agriculture and Food Council, relative to sodium, salt and nanotechnologies. g Dr. Rousseau and his group of AFMNet researchers are working to develop industry-ready technologies to enable the reduction of salt in processed foods like pizza, soups and breads by more than 25%, without sacrificing taste. Rousseau and his team are using the concept of controlled release – similar to that found in over-the-counter acetaminophen-timed release capsules – to simulate the experience of a “salt hit” so that using less salt will have the same impact on taste as that of a larger amount. This project has achieved early technology development and the team has begun a clinical trial on genetic determinants of salt detection and sensitivity with fellow AFMNet researcher Ahmed El-Sohemy. g In conjunction with the Canadian Stroke Network, AFMNet runs an annual series of ads and stories highlighting the amount of salt contained in popular fast and processed food products. By joining forces with other networks, important health information is disseminated to a large segment of the Canadian public. The Salt Lick Award is given out each year during World Salt Awareness Week, run by the World Action on Salt and Health (WASH).
We are leading the way in cutting edge
Nutrigenomics research.
In 2008, AFMNet researcher Dr. Ahmed El-Sohemy provided the first evidence of the role that a variation in the GLUT2 gene has on sugar intake to help explain individual preferences for foods high in sugar. In this past fiscal year, the research has: g Been recognized by the Canadian Diabetes Association, who awarded the team a 2-year grant to explore other genetic determinants of sugar consumption. g Resulted in non-disclosure agreements signed with two global food and beverage companies interested in the commercial application of this discovery. In 2009, Dr. El-Sohemy provided evidence that one in seven young adults in Canada is deficient in vitamin C. The findings also show that young adults with a vitamin C (ascorbic acid) deficiency have significantly higher waist circumference, body mass index, inflammation and blood pressure – indicators of chronic disease and obesity – than do people with adequate blood levels of vitamin C. Since this time: g PepsiCo Canada (manufacturers of Tropicana Orange Juice) partnered with the El-Sohemy team to develop a vitamin C resource for nutrition professionals. The handout, distributed to all Canadian registered dietitians in October 2009, outlines the vitamin C deficiency findings and lists examples of vitamin C sources.
Nutrigenomics is a key area of study under the AFMNet focus area of Food,
g Once study findings were released, labs that measure ascorbic acid (e.g. LifeLabs) began to include, on their results sheet, a reference range for normal and deficient ascorbic acid intervals as a red flag to physicians for discussion with their patients.
This year, the El-Sohemy team established, as part of their AFMNet-funded Toronto Nutrigenomics and Health Study, a database of cross-cultural subjects, Nutrition and Health. Nutrigenomics studies how genes whose DNA samples are being studied for the relationship between their and genetic variations among people influence our food choices differing and genetically influenced dietary preferences, their genetic variations in metabolizing specific nutrients, and their biomarkers for cardiometabolic disease and impact our ability to metabolize nutrients to help determine (heart attack, stroke, obesity, diabetes) - the most common cause of death and the effect of food ingredients on human health. Nutrigenomics disability worldwide. This project will: g meet consumers’ demand for personalized nutrition regimens based on their research will lead to diets tailored to our genetic make-up, genetic make-up, a Research and Development sector in its infancy; helping people make healthier nutritional choices g improve dietary recommendations for specific populations; and ultimately, lead healthier lives.
g commercialize genetic tests and food products for different cultural groups.
g AFMNet’s Consumer Monitor project is providing crucial insight into the attitudes of Canadians to food, diet and health issues. g A recent report by the Grocery Manufacturers Association estimated that five to 10% of foods sold commercially are subject to adulteration, either through mislabeling, ingredient substitution or dilution with a less expensive ingredient. With food fraud being a growing concern to Canadian consumers, AFMNet researcher Nicholas Low at the University of Saskatchewan is leading a team developing a cost-effective molecular internal tagging system to track food products as they move through the supply chain.
We are addressing food safety and supply concerns that matter to Canadians.
g Biofilms on food processing equipment can contaminate food and cause deadly outbreaks of food poisoning. Dr. John Dutcher at the University of Guelph is leading microbiologists, chemists, physicists and mathematicians in creating biofilm prevention and removal strategies for the food industry. g The first reported incident of amnesic shellfish poisoning (ASP) occurred in PEI in 1987 - the ingestion of blue mussels was linked to 19 hospitalizations and 4 deaths. The sicknesscausing culprit is domoic acid (DA), a harmful toxin that AFMNet researcher Tom Gill from Dalhousie University, and his team, are working to eliminate from the Canadian food supply. g Dr. Louise Nelson’s research team at the University of British Columbia’s Okanagan campus is using two environmentally friendly methods to detect and control post-harvest decay in Canada’s apple supply.
We are providing critical and timely financial support, educational guidance and business advice to get research out of the lab, to Canadians.
g Since inception, AFMNet research funding investments of $25M has leveraged $13M cash and in-kind from partners. In other words, we’ve succeeded in raising an additional $0.50 for every dollar received through the Networks of Centres of Excellence program. g Since its introduction in 2006, our Strategic Transition and Application of Research (STAR) program has gained great momentum, receiving 37 applications during the 2010 call, up 300% from 2007. g Since inception, AFMNet research has led to 7 start-up companies, 9 patents issued, and 32 patent applications filed. g More than 60% of AFMNet’s investments in development and commercialization have resulted in viable business enterprises.
g Sponsorship for the 2010 Annual Scientific Conference was the highest yet! This year, AFMNet received support from such industries and organizations as General Mills, Taiyo Kagaku Co. Ltd., Ocean Nutrition Canada, Alberta Innovates and the Canadian Medical Association. g 100% of current AFMNet research projects involve at least the minimum of 10% (Discovery) and 15% (STAR) matching funds from Canadian industry partners. g The proposals being considered for the 2011-2014 funding cycle have, on average, 25% matching funds.
We are forging national and international
collaborations.
g The Network’s 259 partnerships include 121 industrial, 70 academic, 26 provincial and federal departments and agencies, 4 hospitals, and 38 other partners such as other NCEs and research institutions. For a full listing of AFMNet partners, see www.afmnet.ca > About Us > Partners. g AFMNet has made a concerted effort to expand and retain its network of partners, with an average of 30 new partners added each year. g As an example, AFMNet has teamed up with the newly formed 7th EU Framework Project Nanolyse, which is involved in the characterization of nanoparticles as they relate to food systems. g AFMNet has increased its collaborations with key public-sector and other research and policy committees and officers at Health Canada’s Natural Health Products Directorate, Food Directorate, Office of Nutrition Policy and Promotion, and with the Director General of Science Policy. To date, AFMNet has established 11 Memorandums of Understanding with: g One federally funded corporation: Canadian Agri-Food Policy Institute (CAPI); g Two Networks of Centres of Excellence (NCEs): MITACS and PrioNet; g Three commercialization centres: FOODTECH Canada; Bioenterprise and Alberta Innovates; g Four international partners: Hong Kong Jockey Club; Chinese Academy of Agricultural Science (CAAS); Instituto Nazionale di Ricerca per gli Alimenti e la Nutrizione (INRAN); and the EU’s Monitoring and Quality Assurance in the Food Supply Chain (MoniQA). g Along with Agriculture and Agri-Food Canada, three universities in the People’s Republic of China: Jiangnan University, Shanghai Jiao Tong University and Shanghai Manhui Modern Agricultural Zone.
We are getting the message out. g We regularly meet with politicians, policymakers and media to highlight our research findings and their positive health impacts for the Canadian population. g AFMNet researchers and management team are recognized internationally and are invited to present research outputs to major conferences and other scientific forums. In 2009, AFMNet was responsible for over 200 presentations to researchers and the user sector. g Together with the Canadian Stroke Network, AFMNet awards a national Salt Lick Award to increase public awareness of the impact of high-sodium foods. g We host an Annual Scientific Conference (ASC) each year, in a different Canadian city, highlighting the many innovative projects our researchers are working on across the country. g We widely disseminate our annual Advance magazine, highlighting AFMNet’s research projects and their accomplishments, to a targeted public in an easy-to-understand format. Readership encompasses Network researchers, HQP and partners plus media, research organizations, health and agricultural associations, food and beverage companies, Canadian and international regulatory agencies and government. g We maintain a dynamic website afmnet.ca
We are bringing together bright minds to help guide our Network and ensure the most effective spending of funds. Full lists of AFMNet Board, RMC and ISAC committee members are available on the AFMNet website at www.afmnet.ca > About Us.
Dr. Larry Milligan, Chair, AFMNet Board of Directors
Dr. Rickey Yada, AFMNet Scientific Director and Chair of the Research Management Committee
A full list of AFMNet researchers can be found at www.afmnet.ca > Research > Researcher List. See the complete AFMNet financial statements at www.afmnet.ca. Look under News/Events/Media > Annual Reports > 2009-2010. Dr. David Lineback, Chair, International Scientific Advisory Committee
AFMNet’s Board of Directors (BoD) interacts regularly and proactively with the AFMNet management team, sets policies and objectives and provides good governance for the management of the Network. Dr. Larry Milligan is AFMNet’s Board Chair. Dr. Milligan joined the University of Guelph’s faculty in 1985 from the University of Alberta, where he spent the first 20 years of his career. At Guelph, he was Dean of Research and later Vice-President (Research) for 16 years. He has had an exceptional career as both a researcher and administrator, garnering an international reputation for his excellence in, and commitment to, the life sciences. AFMNet’s Research Management Committee (RMC) assesses research priorities and proposals and provides the BoD with recommendations for budget allocations. Dr. Rickey Yada is the Chair of the RMC. Dr. Yada received his PhD from the Department of Food Science at the University of British Columbia in 1984. He has been a faculty member at the University of Guelph since that time, serving as Chair of the Department of Food Science and as the Assistant Vice President Research, Agri-Food Programs. He is presently a Professor in the Department of Food Science, a Canada Research Chair in Food Protein Structure and AFMNet’s Scientific Director. AFMNet’s International Scientific Advisory Committee (ISAC) provides a global perspective on gaps and opportunities in food and bio-materials research and advises to the international competitiveness of AFMNet research. This year, membership was expanded from 15 to 25 members to allow greater participation and scope of industry and business members. Dr. David Lineback is the Chair of the ISAC. Dr. Lineback is a carbohydrate chemist and food scientist with extensive academic experience. He has served as Director, Joint Institute for Food Safety and Applied Nutrition (JIFSAN), University of Maryland; Dean, College of Agriculture, University of Idaho; Department Head, Departments of Food Science, North Carolina State University and Pennsylvania State University; and on the faculty at Kansas State University and the University of Nebraska.
Our talented staff is working hard to fulfill the AFMNet Vision of being Canada’s foremost network for bio-materials and food-for-health solutions.
Advanced Foods and Materials Network Staff
Address correspondence to: (as we appear in the above photo, back to front, left to right): Louise Jessup, Communications Manager Advanced Foods and Materials Network Louise Jessup, Communications Manager Jan Smith, Network Operations/Financial Manager 150 Research Lane, Suite 215 Guelph, Ontario, Canada N1G 4T2 Perry Lidster, Managing Director Phil Guinchard, Information Technology Manager Phone: 519-822-6253 Fax: 519-824-8453 Email: louise.jessup@afmnet.ca Heather Merla, Administrative Assistant www.afmnet.ca
Monique Poirier, Executive Assistant Tom Dowler, Business Development Officer Charity Parr, Senior Program Officer
Not shown:
Rickey Yada, Scientific Director Allan Paulson, Associate Scientific Director
AFMNet thanks its host, the University of Guelph, for continued generous support. Executive Editors: Perry Lidster, Rickey Y. Yada Writer and Copy Editor: Louise Jessup Design: Sasha Carreiro
Researchers by University Brandon University Bruno Tomberli
Carleton University Apollo Tsopmo
Dalhousie University
Tom Gill Martin Kalmokoff Gianfranco Mazzanti Roger McLeod Allan Paulson Lisbeth Truelstrup Hansen
Université Laval
Laurent Bazinet Hélène Jacques André Marette Marie-Claude Vohl John Weisnagel
University of Alberta
Philip Choi Lori Sherimata Thava Vasanthan
University of British Columbia
University of Lethbridge Brent Selinger
Université de Montréal
Jean Claude Lavoie (CHU Sainte-Justine)
University of Manitoba Rotimi Aluko James Friel Peter Jones
University of New Brunswick Benedict Newling
University of Ontario Institute of Technology
McMaster University Premysl Bercik Lori Burrows ElenaVerdu
Angela Devlin Jiri Frohlich Timothy Green Robert Hancock David Kitts Louise Nelson (Okanagan) Zhaoming Xu
Queen’s University
University of Guelph
Jill Hobbs Nicholas Low Michael Nickerson
McGill University Larry Lands
Brian Amsden
Ryerson Polytechnic University Dérick Rousseau Gideon Wolfaardt
St. Francis Xavier University David Pink
Université de Sherbrooke Stephen Cunnane Tamas Fulop Dominique Lorrain Melanie Plourde
Andreas Boecker Lisa Duizer John Dutcher Hermann Eberl Robert Hanner Spencer Henson Bruce Holub Alejandro Marangoni Yoshinori Mine David Mutch
Julia Green-Johnson
University of Ottawa
Bénédicte Fontaine-Bisson Maxwell Hincke
University of Saskatchewan
University of Toronto
Paul Corey Ahmed El-Sohemy Molly Shoichet
University of Western Ontario Wankei Wan
Advanced Foods and Materials Network
Financial Statements Auditors’ Report To the Members of Advanced Foods and Materials Network, We have audited the statement of financial position of Advanced Foods and Materials Network as at March 31, 2010 and the statements of operations, net assets and cash flows for the year then ended. These financial statements are the responsibility of the organization’s management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with Canadian generally accepted auditing standards. Those standards require that we plan and perform an audit to obtain reasonable assurance whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. In our opinion, these financial statements present fairly, in all material respects, the financial position of the organization as at March 31, 2010 and the results of its operations and cash flows for the year then ended in accordance with Canadian generally accepted accounting principles.
RLB LLP, Chartered Accountants Guelph, Ontario, April 22, 2010
Statement of Financial Position as at March 31, 2010 Scholarships and Projects Fund ASSETS CURRENT Cash Short term investments (note 5) Accounts receivable Due from University of Guelph (note 10) Prepaid expenses
$
$ LIABILITIES CURRENT Accounts payable and accrued liabilities Targeted RFP payable STAR grant payable (note 12)
$
NET ASSETS NCE Operating Fund Scholarships and Projects Fund $
NCE Operating Fund
0 268,397 10,000 0 0 278,397
$
0 0 0 0
$
0 278,397 278,397 278,397
$
$
2010 Total
118,642 293,942 0 1,490,561 2,430 1,905,575
$
201,106 75,000 416,000 692,106
$
1,213,469 0 1,213,469 1,905,575
$
$
2009 Total
118,642 562,339 10,000 1,490,561 2,430 2,183,972
$
201,106 75,000 416,600 692,106
$
1,213,469 278,397 1,491,866 2,183,972
$
$
161,592 544,338 0 1,802,001 2,430 2,510,361
27,873 81,000 413,244 522,117
1,411,935 576,309 1,988,244 2,510,361
see accompanying notes
Statement of Net Assets for the Year Ended March 31, 2010 Scholarships and Projects Fund BALANCE, beginning of the year Deficiency of revenues over expenses BALANCE, end of year
$ $
576,309 (297,912) 278,397
NCE Operating Fund $ $
1,411,935 (198,466) 1,213,469
2010 Total $ $
1,988,244 (496,378) 1,491,866
2009 Total $ $
2,261,584 (273,340) 1,988,244
see accompanying notes
Statement of Operations (Scholarship Fund) for the Year Ended March 31, 2010 2010 Total REVENUE Industry donations and awards Stakeholder contributions Interest income
$
DIRECT EXPENCES Scholarships, awards and other grants
OPERATING EXPENCES Conferences and travel Commercialization - Santé Biomaterials Inc. and Santé Bioactives Inc. Salaries and benefits
TOTAL OPERATING DEFICIENCY OF REVENUE OVER EXPENSES for the year OTHER EXPENSES Loss on investment (note 6) TOTAL DEFICIENCY OF REVENUE OVER EXPENSES for the year
$
98,653 11,500 18,014 128,167
2009 Total $
30,000 7,489 18,539 56,028
69,369 58,798
125,172 (69,144)
24,155 112,881 212,209 349,245
7,182 0 58,548 65,730
(290,447)
(134,879)
7,465 (297,912)
$
3,179 (138,053)
see accompanying notes
Statement of Operations (NCE Fund) for the Year Ended March 31, 2010 2010 Total REVENUE NCE grant (note 11) Industry donations
$
DIRECT EXPENCES Conferences and travel Commercialization Guelph Wellness Program Meetings Research grants distributed Research grants returned Scholarships, awards and other grants Verna Kirkness Program
OPERATING EXPENCES Communications Consulting Insurance Office Professional Fees Salaries and benefits Telephone
TOTAL DEFICIENCY OF REVENUE OVER EXPENSES for the year
$
5,559,000 15,000 5,574,000
2009 Total $
5,559,000 0 5,559,000
25,752 99,695 50,893 334,781 4,611,124 (153,460) 0 37,776 5,006,561 567,439
21,510 105,181 0 458,363 4,289,268 0 77,000 50,597 5,001,919 557,081
115,007 28,061 2,700 25,729 6,619 567,640 20,149 765,905
82,719 43,538 2,700 35,442 5,625 506,954 15,390 692,368
(198,466)
$
(135,287)
see accompanying notes
Statement of Cash Flows for the Year Ended March 31, 2010 2010 CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES Deficency of revenue over expenses for the year
$
Changes in non-cash working capital Short term investment Due from University of Guelph Accounts receivable Accounts payable and accrued liabilities Targeted RFP payable STAR grant payable
(496,378)
2009 $
(273,339)
(17,999) 305,559 (4,120) 173,232 (6,000) 2,756 453,428
(39,734) 388,153 45,995 (42,571) (69,000) (23,356) 259,487
NET DECREASE IN CASH for the year
(42,950)
(13,852)
NET CASH, beginning of the year
161,592
175,444
NET CASH, end of the year
$
118,642
$
161,592
see accompanying notes
Notes to the Financial Statements for the year ended March 31, 2010
(c) REVENUE RECOGNITION
1. NATURE OF ORGANIZATION
Restricted contributions related to general activities are recognized as revenue of the NCE Fund in the year in which the related expenses are incurred. All other restricted contributions are recognized as revenue of the appropriate restricted fund.
The purpose of the Advanced Foods and Materials Network is to bring together researchers in law, engineering and the natural, social and health sciences with the private and public sectors, to advance food and biomaterials research. The Network is a nonprofit organization incorporated under the laws of Ontario. The Network is hosted by the University of Guelph. As part of the NetworkHost Agreement, the University is responsible for providing suitable space to house the Administrative Centre of the Network; receiving and distributing funds to participating institutions as approved by the Board of Directors; providing accounting and financial reporting for NCE funds and contributions to the Network from other sources as required by NCE Directorate; and providing suitable support to assist the Scientific Director in his or her network responsibilities. In addition, as part of the agreement, the University of Guelph employs one fulltime Administrative Officer and one parttime Financial Manager, seconded to AFMNet.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The financial statements have been prepared in accordance with Canadian generally accepted accounting principles and include the following significant accounting policies: (a) FUND ACCOUNTING The Network follows the restricted fund method of accounting for contributions. The Scholarships and Projects Fund accounts for the Network’s scholarship advancements, research activities and other general activities. This fund reports unrestricted resources and restricted grants other than the NCE grant. The NCE Operating Fund is a restricted fund that reports only restricted resources that are to be used according to the Network’s agreement with Networks of Centres of Excellence. (b) SHORT TERM INVESTMENTS Investments are classified as held-for-trading and are recorded at fair value.
Unrestricted contributions are recognized as revenue of the Scholarships and Projects Fund in the year received or receivable if the amount to be received can be reasonably estimated and collection is reasonably assured. (d) INCOME TAXES The organization is exempt from income tax under Section 149(1)(e) of the Income Tax Act. (e) USE OF ESTIMATES The preparation of financial statements in conformity with Canadian generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the year. Actual results could differ from those estimates.
3. FINANCIAL INSTRUMENTS Credit risk management The organization’s financial instruments consists of cash, temporary investments, the amount due from the University of Guelph, accounts payable and accrued liabilities. Unless otherwise noted, it is management’s opinion that the organization is not exposed to significant interest, currency or credit risks arising from these financial instruments. Fair value of financial assets and financial liabilities The carrying values of cash, the amount due from the University of Guelph, accounts payable and accrued liabilities approximate their fair value due to the relatively short period to maturity of these items.
4. RELATED PARTIES The following are organizations related to AFMNet: Santé Biomaterials Inc. Santé Biomaterials Inc. (SBMI) is a wholly-owned subsidiary of AFMNet and was incorporated on March 31, 2009. SBMI and AFMNet share common premises and administrative services. Santé Bioactives Inc. Santé Bioactives Inc. (SBAI) is a whollyowned subsidiary of AFMNet and was incorporated on March 31, 2009. SBAI and AFMNet share common premises and administrative services. AFMNet has recorded their investment in SBMI and SBAI using cost accounting.
5. SHORT TERM INVESTMENTS Investments have been recorded at market value. The balance consists of the following: 4.0% Advisor’s Advantage Trust GIC, due December 2010 BMO Mortgage & Short Term Income Fund
$ $
293,095 269,244 562,339
6. LOSS ON INVESTMENT In prior years, the organization invested in a 7% Florapure Biosciences Inc. convertible debenture. In 2009, the investment had no value and the remaining investment balance was recorded as a loss. In 2010, additional costs were incurred that related to this investment.
7. COMPARATIVE FIGURES Certain figures presented for comparative purposes have been reclassified to conform to the current year’s presentation.
8. CAPITAL DISCLOSURES Advanced Foods and Materials Network’s objective when managing capital is to safeguard the organization’s ability to continue as a going concern and to hold sufficient unrestricted net assets to enable it to withstand negative unexpected financial events in order to maintain stability in the financial structure. As well, the organization keeps a sufficient balance in order to take advantage of attractive research opportunities as they arise.
The organization seeks to maintain sufficient liquidity to enable it to meet its obligations as they become due. The organization holds investments to ensure sufficient liquidity. The organization manages the capital structure and makes adjustments to it in light of changes in economic conditions. In order to maintain or adjust the capital structure, the organization may redeem investments, increase fundraising, or ask for direct donations from industry. The organization is not subject to externally imposed capital requirements.
9. COMMITMENTS The Network previously entered into research contracts and committed, under those contracts, to provide funding of $6,800,000 over two years. Fiscal 2011 is the final year of the contract. The funding of existing research projects and potential research projects will be reviewed this year and changes are made when deemed necessary by the Research Management Committee.
10. UNIVERSITY OF GUELPH University of Guelph holds research funds in trust for the Network. All funds held at the University of Guelph and carried forward at March 31, 2010 have been committed to Project Funding 2009-2011 (see note 9).
11. ECONOMIC DEPENDENCE The Network receives the majority of their funding through a grant from Networks of Centres of Excellence. This agreement ends in fiscal 2011, at which time the Network will have to submit a full strategic proposal to receive funding for the next seven years.
12. STAR GRANT PAYABLE The STAR grant payable includes amounts payable to the following researchers: Dr. Aluko Dr. Dutcher Dr. Vasanthan Dr. Kalmokoff Dr. Lands Dr. Wan Dr. Wolfaardt
$
$
75,000 75,000 26,000 15,000 75,000 75,000 75,000 416,000