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INTRODUCTION The Northeast Recycling Council, Inc. (NERC) generated a new and impressive list of accomplishments in fiscal year (FY) 2006. And, financially, the organization is in good shape. Particularly noteworthy is that with a small staff of three full-time and two part-time professionals, NERC:
• Gave nine public presentations • Implemented ten grant and contract funded projects • Implemented seven non-grant funded projects • Organized, managed, and held two multi-day conferences • Organized, managed, and held three Board of Directors meetings • Produced 26 new documents • Updated sixteen documents and web pages • Wrote and disturbed 11 issues of the Email Bulletin • Administered the EPPnet listserv
In addition, NERC obtained three federal and one foundation grant for FY 2007 that will allow the organization to continue its service to the recycling community and state governments. MAJOR EVENTS Board of Directors: A list of the Board of Directors for FY 2006 is in Appendix A. Officers of NERC: The Executive Committee remained constant from the previous year:
President - John Trevor, Rhode Island Resource Recovery Corporation Vice-President - Jeff Bednar, Pennsylvania Department of Environmental Protection Treasurer - George MacDonald, Maine State Planning Office Secretary - Lynn Rubinstein, Executive Director NERC (serving in non-elected role)
Presentations: NERC’s Director and Assistant Director made the following presentations:
• August, 2005 - U.S. EPA Meeting on Pharmaceuticals in the Environment: o Collecting Unwanted Medication for Proper Disposal
• November, 2005 - Southeast Recycling Development Council, Inc. Conference
o What is NERC & How Does it Operate? • November, 2005 - National Beneficial Use Summit
o Facilitated opening session.
Annual Report FY 2006 - 1 - © Northeast Recycling Council, Inc. October 2006
• April, 2006 - Cellular Telecommunication & Internet Association’s CTIA Wirelesses 2006 Conference
o Panelist on domestic legislative issues associated with wireless devices. • May, 2006 - Federation of New York State Solid Waste Associations Solid
Waste/Recycling Conference o Regional Model Electronics Legislation
• May, 2006 - Federation of New York State Solid Waste Associations Solid
Waste/Recycling Conference o Collecting Unwanted Medication for Proper Disposal
• May, 2006 - Pennsylvania Solid Waste Advisory Committee
o Regional Model Electronics Legislation • June, 2006 - Northeast Resource Recovery Association Annual Conference
o Electronics: Why Care?
• June, 2006 - Pennsylvania Recycling Professional Certification Workshop o Communicating the Benefits of Recycling
Advisory Members During FY 2006, there were 44 Advisory Members, a 22% increase in the number of members over the previous fiscal year. There was a corresponding 20% increase in the total financial contribution from Advisory Members. To achieve its mission, NERC invites and supports an open dialogue and information exchange with any party that shares its commitment to environmental sustainability by promoting source and toxicity reduction, recycling, and the purchasing of environmentally preferable products and services. Advisory Membership is one way to express support for NERC and its mission. Any interested person, association, organization, agency, or business may join NERC as a non-voting Advisory Member. Advisory Members are invited to participate in Board of Directors meetings, workshops, subcommittees, and working groups. In addition, Advisory Members are highlighted on the NERC website, http://www.nerc.org/members.html#advisory, and at NERC conferences. They also enjoy discounted registration fees for NERC conferences. Appendix D contains a complete listing of Advisory Members.
Annual Report FY 2006 - 2 - © Northeast Recycling Council, Inc. October 2006
National Committee Carpet Product Stewardship: NERC participates in the “government calls” related to the national Carpet Product Stewardship Agreement. NERC is a signatory to this landmark Agreement that led to the creation of CARE. NERC is a partner in working toward achieving the goals of the Carpet Product Stewardship Agreement. International Committee NERC is a participant in the North American Green Purchasing Initiative (NAGPI). NAGPI was developed by the Commission for Environmental Cooperation - an international organization created by Canada, Mexico, and the United States under the North American Agreement on Environmental Cooperation to complement the environmental provisions of the North American Free Trade Agreement (NAFTA). One of NAGPI’s goals is to increase green purchasing within the three member countries. The identified purchasing priorities are office products (paper and electronic equipment), custodial products, and clean energy. Ongoing Contract Funded Projects Toxics in Packaging Clearinghouse NERC continued to provide administration and staffing to the Toxics in Packaging Clearinghouse (TPCH) in FY 06. TPCH is a membership organization, with nine (9) state members: California, Connecticut, Iowa, Maine, Minnesota, New Hampshire, New Jersey, New York, and Rhode Island. In addition, the Steel Recycling Institute, American Plastics Council, the Society of Glass and Ceramic Decorators, and the Paper Recycling Coalition are advisory members of TPCH. In FY 06, TPCH recruited two new members: the State of Maine and the Paper Recycling Coalition. TPCH staff augmented membership dues with a $28,963 grant from the U.S. EPA. This grant allowed TPCH to conduct the first comprehensive screening of retail packaging for compliance with state toxics in packaging laws, and substantially increased the visibility of toxics in packaging issues in states and the regulated community, as measured by the number of inquiries to TPCH, press coverage, and requests for presentations on toxics in packaging. TPCH has secured additional grant funding for FY 07 from EPA New England to continue this important outreach and testing program. New York State's Recycling Markets Database NERC is engaged in a five-year contract with Empire State Development’s Environmental Services Unit (ESU) to update and further develop its recycling markets database. The goal of the project is for NERC to research and compile data for Empire State’s secondary materials markets database to enhance the delivery of legislatively mandated services and assist ESU personnel in promoting economic development associated with recycling and reuse in New York State. The database will be housed at
Annual Report FY 2006 - 3 - © Northeast Recycling Council, Inc. October 2006
ESU, but the research will be conducted by NERC. The project also includes updating components of the Recycling Economic Information Study for New York, such as the electronics recycling sector data. Website Update EPA New England committed funds to assure continued maintenance of NERC’s website and to update several of its documents. A complete list of documents updated through this EPA contract can be found below, under PUBLICATIONS & WEB RESOURCES ~ POSTED OR UPDATED IN FY 2006. Primary Contact: Mary Ann Remolador Funding: EPA New England Contract: $7,000 Grant Funded Project Completed Materials Exchange Marketing Plan NERC developed a marketing strategy (http://www.nerc.org/documents/marketingplan.html) for New England and New York Materials Exchanges that enables them to create and maintain outreach with schools, municipalities, and other potential clients at no- or low-cost. This document has been one of the most visited documents on the NERC website since its posting in November, 2005; #12 for the year. Primary Contact: Mary Ann Remolador Funding: EPA Regions I & II Grant: $8,000 Ongoing Grant Funded Projects Managing Unwanted Medications Developing and implementing pilot unwanted medication collection programs, including writing a guidance document, developing and implementing pilot pharmacy/HHW bulk compounding chemical collections, and writing a best management practices manual for plastic drug-associated containers. In the course of this project, almost 200 gallons of medications were diverted from inappropriate disposal to hazardous waste incineration. Those medications were collected at six events, with a total of 182 participants. The report that NERC published on the CVS South Portland, Maine collection was the fourth most downloaded document and ninth most visited page on the NERC website. And, the report that was produced through this grant on plastic medication containers, entitled Managing Pharmaceutical Waste: BMP for Plastic Medication Containers, was the fifth most downloaded document and fourteenth most visited page.
Annual Report FY 2006 - 4 - © Northeast Recycling Council, Inc. October 2006
Primary Contact: Lynn Rubinstein Funding: EPA Innovative Solid Waste Grant Program Grant: $48,750 USDA Rural Utility Service Solid Waste Management Grant Grant: $97,400. This grant supports the following three projects: • EPP Peer–to–Peer Project Developing and implementing a pilot EPP program for rural businesses in Maine, New Hampshire, and Vermont, including a business–to-business mentoring component. NERC completed mentoring projects with state recycling and market development officials, and business partners as part of its EPP Peer-to-Peer Business Mentoring Pilots in Maine, New Hampshire, and Vermont. The participant businesses included one food service/retail sales operation, three service operations, and two elementary schools. The mentoring process included on-site visits, conference calls, and research on green products and services. In addition to increasing the use of less toxic cleaning products and learning about methods for achieving greater energy efficiency, the EPP mentoring resulted in one business updating its lighting fixtures and using more energy efficient bulbs -- reducing its electricity usage by 12%, and an 11% decrease in monthly expense. Another business increased the recycled content of its bathroom paper products from 0% to 100%, and decreased the amount of bathroom tissue used by 33% as a result of installing tensioners on the dispensers. Project Lead: Mary Ann Remolador • Rural Special Events Recycling Providing technical assistance to six special events in rural Maine, New Hampshire, and Vermont. This assistance included site visits, waste sorts, and developing a recycling plan for each event. As a result of the waste sorts, NERC determined that there was 13 tons of recyclables (OCC, metal containers, single-serve containers, and paper) generated at these six events. NERC also developed a guidance document and training materials on source reduction and recycling at rural special events. The guidance document was completed and posted. Best Management Practices Guidebook for Special Events – Generated Waste in Rural Communities http://www.nerc.org/adobe/Special_Event_BMPs_FINAL.pdf. This document was by far the most popular download on the NERC website. Although posted in June 2006, it leads as the number one download for the whole year and as the most visited page. In addition, the individual event recycling plans are among the most visited and downloaded documents on the website. Project Lead: Mary Ann Remolador
Annual Report FY 2006 - 5 - © Northeast Recycling Council, Inc. October 2006
• Managing Unwanted Medications Designing, implementing, and documenting a pilot unwanted medication collection in Maine, Massachusetts, New Hampshire, or Vermont; and writing a guidance document for holding rural unwanted medication collection events in conjunction with household hazardous waste collections. Three collection events were held; two in Massachusetts and one in New Hampshire. A total of 36 gallons of material was collected from 39 individuals. Project Lead: Lynn Rubinstein Toxics in Packaging Laws: A Tool to Promote Source Reduction and Environmentally Preferable Purchasing NERC received a grant on behalf of the Toxics in Packaging Clearinghouse (TPCH) to undertake an assessment of compliance with state toxics in packaging requirements. TPCH screened over 350 packaging samples, representing a cross section of packaging materials and product sectors, with a portable x-ray fluorescent analyzer. With the test results, TPCH launched an outreach campaign to promote the reduction of toxics in packaging, including direct contact with manufacturers and distributors of non-compliant packages and general outreach to the packaging supply chain through publications and presentations. In addition to coverage in trade press, the results of this project were presented at the following meetings and conferences:
• U.S. Pharmacopeia, Expert Packaging Committee, Rockville, Maryland, April 2006. • Northeast Environmental Enforcement Project, Burlington, Vermont, April 2006, • Institute of Packaging Professionals (IoPP), 2006 Packaging Summit, Chicago, Illinois, May 2006.
Project Lead: Patty Dillon Funding: EPA Headquarters Pollution Prevention Grant: $28,963 Promoting Source Reduction & Increasing the Use of Recycled Materials through the Green Procurement of Electronics The goal of this project is to promote source reduction and increase the use of recycled materials through the environmentally preferable purchasing of computers by public and private sector institutional purchasers. NERC is helping to accomplish this by promoting the use of the Electronic Product Environmental Assessment Tool (EPEAT©) by institutional purchasers in EPA Regions I and III through teleconferences, presentations, website resources, individual technical assistance, and demonstrating the environmental benefits of purchasing EPEAT©-qualified products. A teleconference was held in June promoting EPEAT©. 200 individuals from around the country registered for this free teleconference.
Annual Report FY 2006 - 6 - © Northeast Recycling Council, Inc. October 2006
Project Lead: Patty Dillon Funding: EPA Regions I & III Source Reduction Programs: Grants: $79,196 MEMBERSHIP DUES FUNDED Conferences & Board Meetings There were two conferences held in FY 2006, both of which were highly acclaimed by participants. The Fall conference was held in October 2005 in Northampton, Massachusetts. The March 2006 conference was held in collaboration with two other regional organizations: MACRO (Mid-Atlantic Consortium of Recycling Officials) and MACREDO (Mid-American Coalition of Recycling and Economic Development Officials). The agendas for those meetings are in Appendix B. 187 people attended the conferences. There were three Board of Directors meetings, including a day-and-a-half planning meeting. Minutes from these meetings are posted on NERC’s website at http://www.nerc.org/meetings.html. NERC received generous sponsorship support for both of the conferences from several organizations. Appendix C lists these sponsors. Regional Electronics Legislation Working in collaboration with the Council of State Governments/Eastern Regional Conference, NERC facilitated the development of model end-of-life electronics management legislation. The model legislation was released in April 2006. http://www.nerc.org/adobe/ElectronicRecyclingLegislation/RegionalDraft5-06_revised.pdf To date, the legislation has been filed in Delaware, New Jersey, New York, and Pennsylvania. We expect that it will also be filed in Connecticut, New Hampshire, Vermont, and Puerto Rico this upcoming legislative season. Environmentally Preferable Products Listserv (EPPnet) In 1998, NERC established EPPnet, the Environmentally Preferable Products Listserv. The list provides a communication vehicle for private and public procurement officials and advocates. The list had 384 subscribers at the end of this fiscal year, which reflects an increase of approximately 10% from the prior year. EPPnet is the only national listserv dedicated to the topic of environmentally preferable purchasing. EPPnet provides quick access to information, such as product specifications, vendors, prices, strategies for achieving recycled product procurement goals, and federal procurement policies. The EPPnet Archive is an on-line searchable database that stores the messages posted on EPPnet. The Listserv and Archive are only accessible to approved subscribers.
Annual Report FY 2006 - 7 - © Northeast Recycling Council, Inc. October 2006
Website The NERC website remains as one of the organization’s most effective outreach and education tools. NERC strives to further enhance the utility of the website to members and the public by continually updating the site, including publications and links. The site was visited an average of 31,500 times a month in FY 2006, totaling more than 378,000 sessions. This represents a 30% increase in usage from the previous fiscal year. In the spring of 2006, NERC enlisted the services of a web design company to redesign the website, with the goal of providing improved functionality. This project is expected to be completed by January 2007. E-mail Bulletin This monthly electronic newsletter continues to receive very positive feedback. The Bulletin is published 11 times a year and had 730 subscribers at the close of this fiscal year – a similar number to the previous fiscal year. The Bulletin is used to promote NERC events and activities, to release new publications, to provide state updates, and articles of general interest. It is posted and archived on the NERC website. Newspaper Publishers’ Agreement This year, the data collection for monitoring the Newspaper Publishers’ Agreement was handled by the Newspaper Association of America (NAA) and not by NERC. The fall of 2004 marked the third year anniversary of the Northeast Newspaper Publishers' Agreement. At that time, the Agreement and its impacts were reviewed. It was agreed by all parties that it had been a success; achieving its goals of a commitment to increase usage of recycled content newsprint in the region and achieving a minimum recycled content of 27%. The newspaper publishers expressed their ongoing commitment to the Agreement and its goals. At that time, the NAA stepped forward with the offer to leverage its existing industry data collection efforts to collect the information necessary for monitoring the progress of the Northeast Newspaper Publishers' Agreement.
NAA's approach to data collection was to include recycling questions with its annual newsprint consumption survey. The survey process closely followed NERC's previous efforts. The newsprint consumption survey was distributed to over 200 newspapers with various sizes of circulation. The top circulation newspapers were included, which meant that NAA received the results from over 70% of the population and then extrapolated the balance based on regional and circulation figures. In its survey, NAA asked for the total metric tons of newsprint used; the metric tons of recycled newsprint fiber used; and the percentage of recycled fiber in the newsprint. After collecting the data, the statistics were compiled by NAA's Business Analysis Department and were reviewed internally as well as externally. The Calendar 2004 numbers for the Northeast Region are:
• Metric Tons of Newsprint Used - 2,229,478
• Metric Tons of Recycled Newsprint Fiber Used - 656,189
Annual Report FY 2006 - 8 - © Northeast Recycling Council, Inc. October 2006
• Percentage of Recycled Fiber in Newsprint - 29.4% By comparison, the 2004 numbers for the total United States are:
• Metric Tons of Newsprint Used - 8,063,228
• Metric Tons of Recycled Newsprint Fiber Used - 2,830,285
• Percentage of Recycled Fiber in Newsprint - 35.1%
NORTHEAST Total Metric Tons Newsprint Purchased
Tons Recycled Newsprint Fiber
Percent Recycled Fiber of Total
Newsprint 1997- Baseline
Estimate 2,375,000 644,000 27%
2001 1,529,783 440,790 28.8% 2002 1,339,465 380,110 28.4% 2003 1,643,212 403,012 24.53% 2004 2,229,478 656,189 29.4%
Several reasons may have contributed to the difference between the 24.53% amount of recycled fiber in newsprint in 2003 from the NERC survey and the 29.4% for 2004 in the Northeast region:
• Reduced virgin newsprint capacity at mills in Canada;
• Newspapers reducing the size of the newsprint web width to 48 inches; and
• Unlike the NERC survey which included only large newspapers in its survey, NAA's survey was distributed to newspapers with 11 different circulation sizes, ranging from greater than 500,000 to less than 5,000. NAA believes that many small market newspapers turn to brokers to purchase newsprint, who may have purchased newsprint from other parts of the country.
Going forward, NAA plans to refine its survey process, perhaps making it an electronic survey, and hopes to begin collecting 2005 data in the spring of 2006.
Annual Report FY 2006 - 9 - © Northeast Recycling Council, Inc. October 2006
PUBLICATIONS & WEB RESOURCES ~ POSTED OR UPDATED IN FY 20061
Updated, created, and posted relevant 16 documents to the NERC website with support of funds made available from EPA New England. (* Updated)
Another 26 new documents were posted to NERC’s website. (√ New document).
1. Business Assistance Guide – updated September 2005* http://www.nerc.org/documents/busastguide.html2. Market Resource for Recycling Industries – updated September 2005* http://www.nerc.org/documents/mrktresources.html3. State Agency’s Program Contacts – updated November 2005* http://www.nerc.org/recycling/stateprograms.html4. State Agency Web pages – updated November 2005* See individual state member website. 5. Quick Reference to NERC States’ Universal Waste Rules – updated November
2005* http://www.nerc.org/documents/refguideunivwaste.html6. Sources of NERC State Recycling Information – updated November 2005* http://www.nerc.org/recycling/infosrcs.html7. Statewide Material Disposal Bans and Recycling Requirements in NERC States
– updated November 2005* http://www.nerc.org/documents/recyclingrules.html8. Summary of Northeast States’ Fertilizer Regulations as They Relate to Compost
– updated November 2005* http://www.nerc.org/documents/2001-fertilizer-regulations-summary.html9. Summary of Northeast States’ Composting Regulations – updated November
2005* http://www.nerc.org/documents/2001-compost-regulations-summary.html 10. Information on Free Energy Audits for Businesses – updated October 2005* http://www.nerc.org/documents/freenrgyaudit.html
11. √ Best Management Practice Recommendations for the Disposal of Unwanted Medications Not Controlled by the US DEA – October 2005
http://www.nerc.org/adobe/BMPforEndofLifeManagement-FINAL.pdf
1 In addition to the primary NERC website, the Toxics in Packaging Clearinghouse website is hosted by NERC. http://www.toxicsinpackaging.org/This report does not include activity on that website.
Annual Report FY 2006 - 10 - © Northeast Recycling Council, Inc. October 2006
12. √ Green Purchasing Resources for Businesses – August 2005 http://www.nerc.org/GreenPurchasing/greenpurchasingresources.html
13. √ Materials Exchange Marketing Plan – November 2005 http://www.nerc.org/documents/marketingplan.html
14. √ Managing Pharmaceutical Waste: Best Management Practices for Plastic Medication Containers from Consumers – November 2005
http://www.nerc.org/adobe/PlasticMedicationContainerBMP.pdf
15. √ State Solid Waste Facilities Listings – March 2006* http://www.nerc.org/documents/statesolidwastefac.html
16. √ Solid Waste Management Plans for the NERC States – March 2006* http://www.nerc.org/masterplan.html
17. √ Special Events Final Reports – March 2006 a. Clinton Lions Club Fair, Maine http://www.nerc.org/adobe/events/CLINTON%20Final%20Plan.pdfb. Bath Heritage Days, Maine http://www.nerc.org/adobe/events/BATH%20Final%20Plan.pdfc. Deerfield Agricultural Fair, New Hampshire http://www.nerc.org/adobe/events/DEERFIELD%20Final%20Plan.pdfd. HCS Flower Show, New Hampshire http://www.nerc.org/adobe/events/HCS%20FLOWER%20SHOW%20Final%20Plan.pdfe. Tunbridge Agricultural Fair, Vermont http://www.nerc.org/adobe/events/TUNBRIDGE%20Final%20Plan.pdff. Stowe Celebrates Summer, Vermont http://www.nerc.org/adobe/events/STOWE%20Final%20Plan.pdf
18. √ Model Electronic Recycling Legislation Presentation – May 2006 http://www.nerc.org/powerpoint/regionalelectronics0506/index.html
19. √ Model Electronic Recycling Legislation – April 2006 http://www.nerc.org/adobe/ElectronicRecyclingLegislation/RegionalDraft5-06_revised.pdf
20. √ Key Elements of Model Electronic Recycling Legislation – April 2006 http://www.nerc.org/adobe/ElectronicRecyclingLegislation/KeyElementsofRegionalDraft4-06FINAL.pdf
21. √ Discussion Document for Model Electronic Recycling Legislation – April 2006 http://www.nerc.org/adobe/ElectronicRecyclingLegislation/RegionalDraftDiscussionDocument4-06FINAL.pdf
Annual Report FY 2006 - 11 - © Northeast Recycling Council, Inc. October 2006
22. √ EPEAT Teleconference PowerPoint – June 2006 http://www.nerc.org/powerpoint/greenelectronics_teleconf2006.pps
23. √ EPEAT Overview Presentation – March 2006 http://www.nerc.org/powerpoint/GreenProcurementComputers/index.html
24. √ EPEAT Project Description – March 2006 http://www.nerc.org/GreenElectronics/grnprcmtelectronics.html
25. √ Questions & Answers Green Electronics Teleconference – June 2006 http://www.nerc.org/adobe/GrnTelconfQuesAns.pdf
26. √ Best Management Practices Guidebook for Special Events – Generated Waste in Rural Communities – June 2006
http://www.nerc.org/adobe/Special_Event_BMPs_FINAL.pdf
27. √ Recommendation: Medications Stay in Original Containers – 2006 http://www.nerc.org/adobe/Medicationsstayinoriginalcontainers-Recommendation.pdf
28. √ Feasibility of Generating Green Power through Anaerobic Digestion of Garden Refuse from the Sacramento Area (Non-NERC publication) *
http://www.nerc.org/adobe/SacramentoFeasibilityStudy.pdf
29. √ Implications of Different Waste Feed Streams (Source-Separated Organics and Mixed Waste) On Collection Options and Anaerobic Digestion Processing Facility Design, Equipment and Costs (Non-NERC publication) *
http://www.nerc.org/adobe/TorontoReport.pdf
30. √ Report to Congressional Members E-Waste Working Group (Non-NERC publication) *
http://www.nerc.org/adobe/Report_to_E-Waste_WG_Final.pdf
31. √ Email Bulletin – 11 issues * http://www.nerc.org/newsltrs.html
Annual Report FY 2006 - 12 - © Northeast Recycling Council, Inc. October 2006
FINANCES
Income FY 2006
Conference Other10% 3% Grants & Advisor contracts Grants & contracts member dues 41% State dues8%
Advisory member Conference OtherState dues
38%
Expenses FY 2006
Support Grants &
service contracts29% Grants & contracts 46%
Conference Dues funded projects
ConferenceDues funded 12%
projects13%
Support services
Annual Report FY 2006 - 13 - © Northeast Recycling Council, Inc. October 2006
Audited Financial Statement, FY 2006
NORTHEAST RECYCLING COUNCIL, INC.
FINANCIAL STATEMENTS
JUNE 30, 2006
TABLE OF CONTENTS
INDEPENDENT AUDITOR’S REPORT FINANCIAL STATEMENTS Statement of Assets, Liabilities, and Net Assets – Cash Basis Statement of Support, Revenue, and Expenses – Cash Basis Notes to Financial Statements
Annual Report FY 2006 - 14 - © Northeast Recycling Council, Inc. October 2006
To the Board of Directors of Northeast Recycling Council, Inc. We have audited the accompanying statement of assets, liabilities, and net assets - cash basis of Northeast Recycling Council, Inc. (a Vermont nonprofit organization) as of June 30, 2006, and the related statement of support, revenue, and expenses - cash basis 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 auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about 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. We believe that our audit provides a reasonable basis for our opinion. As described in Note 1, these financial statements were prepared on the cash basis of accounting, which is a comprehensive basis of accounting other than generally accepted accounting principles. In our opinion, the financial statements referred to above present fairly, in all material respects, the assets, liabilities, and net assets of Northeast Recycling Council, Inc. as of June 30, 2006, and its support, revenue, and expenses for the year then ended, on the cash basis of accounting, as described in Note 1. Brattleboro, VT August 15, 2006
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Annual Report FY 2006 - 16 - © Northeast Recycling Council, Inc. October 2006
FINANCIAL STATEMENTS Statement of Assets, Liabilities, and Net Assets – Cash Basis
ASSETS
CURRENT ASSETS/ TOTAL ASSETS Cash and cash equivalents $ 344,125
LIABILITIES AND NET ASSETS
CURRENT LIABILITIES Credit cards payable $ 2,025 Payroll taxes withheld 1,818
TOTAL CURRENT LIABILITIES/ TOTAL LIABILITIES 3,843
NET ASSETS Unrestricted 307,751 Temporarily restricted 32,531 TOTAL NET ASSETS 340,282
TOTAL LIABILITIES AND NET ASSETS $ 344,125
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Statement of Support, Revenue, and Expenses – Cash Basis Temporarily Unrestricted Restricted Total SUPPORT AND REVENUE Grants $ - $ 164,552 $ 164,552 Revenue Membership dues 159,746 - 159,746 Advisory membership dues 32,069 - 32,069 Consulting project fees 8,096 - 8,096 Conference fees 26,260 - 26,260 Conference sponsorships 14,600 - 14,600 Contributions 3,500 - 3,500 State travel - member meetings - 4,677 4,677 Interest income 5,784 - 5,784 Net assets released from restrictions - Satisfaction of purpose restrictions 141,109 (141,109) - Total revenue 391,164 (136,432) 254,732 TOTAL SUPPORT AND REVENUE 391,164 28,120 419,284 EXPENSES Program services Grant programs U.S. Environmental Protection Agency grants 71,708 - 71,708 USDA Fair 20,374 - 20,374 USDA Peer 8,321 - 8,321 USDA Drug 4,697 - 4,697 Total grant programs 105,100 - 105,100 Council programs State travel expenditures 4,808 - 4,808 Project programs 41,971 - 41,971 Member meetings 42,910 - 42,910 Total council programs 89,689 - 89,689 Total program services 194,789 - 194,789 Support services General and administrative 151,088 - 151,088 Fundraising 18,218 - 18,218 Total support services 169,306 - 169,306 TOTAL EXPENSES 364,095 - 364,095 CHANGE IN NET ASSETS 27,069 28,120 55,189 NET ASSETS, BEGINNING OF YEAR 280,682 4,411 285,093 NET ASSETS, END OF YEAR $ 307,751 $ 32,531 $ 340,282
Annual Report FY 2006 - 18 - © Northeast Recycling Council, Inc. October 2006
Notes to Financial Statements
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Organization and Nature of Activities – Northeast Recycling Council, Inc. (the Organization) was organized to provide information, education, and research on the benefits of recycling and recycling-related economic development in the Northeast region of the United States of America. Northeast Recycling Council, Inc., incorporated in Vermont on September 1, 2000, is a nonprofit organization as described in Section 501(c)(3) of the Internal Revenue Code and is exempt from federal and state income taxes. The Organization was originally founded as a program of the Council of State Governments in 1988, and completely separated from the Council of State Governments on September 30, 2001, under a memorandum of understanding.
Cash Basis of Accounting – The Organization’s policy is to prepare its financial statements on the cash basis of accounting, which is a comprehensive basis of accounting other than generally accepted accounting principles. Under that basis, the only asset recognized is cash, and the only liabilities recognized are credit cards payable and payroll taxes withheld. All transactions are recognized as either cash receipts or disbursements, and non-cash transactions are not recognized. The cash basis differs from generally accepted accounting principles primarily because the effects of outstanding program fees (accounts receivable), outstanding grants (grants receivable), grants received in advance (deferred revenue), and unpaid obligations (accounts payable and accrued expenses) at the date of the financial statements are not included in the financial statements. In addition, donated materials and services are not recognized, furniture and equipment are not capitalized, and depreciation is not recorded.
Cash and Cash Equivalents - The Organization considers all highly liquid investments available for current use with an initial maturity of three months or less to be cash equivalents.
Net Assets – The Organization reports information regarding its cash basis financial position and activities according to three classes of net assets: unrestricted net assets, temporarily restricted net assets, and permanently restricted net assets. There were no permanently restricted net assets on June 30, 2006.
Support and Revenue – Contributions, grants, program and other revenue are recorded as support and revenue when received. Contributions, grants and fees are available for unrestricted use unless specifically restricted by the donor, grantor or program user. If contributions, grants and fees are received with donor, grantor or program user stipulations that limit their use, they are recorded as temporarily restricted support and revenue. When a donor, grantor or program user restriction expires, that is, when a stipulated time restriction ends or purpose restriction is accomplished, temporarily restricted net assets are reclassified to unrestricted net assets and reported in the statement of activities as net assets released from restrictions.
Estimates – The preparation of financial statements requires management to make estimates and assumptions that affect certain reported amounts of assets and liabilities, disclosures, and revenues and expenses. Accordingly, actual results could differ from those estimates.
Concentration of Support and Revenue – The Organization received cash for grants of $71,885 from the United States Environmental Protection Agency (EPA), and $92,667 from the United States Department of Agriculture (USDA). The Organization received membership dues of $159,746 from the ten states in the northeastern United States: Connecticut, Delaware, Maine, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island, and Vermont and three additional
Annual Report FY 2006 - 19 - © Northeast Recycling Council, Inc. October 2006
states: California, Iowa, and Minnesota. These receipts accounted for 17%, 22% and 38%, respectively, of the Organization’s support and revenue.
Functional Allocation of Expenses - The costs of providing the various programs and other activities have been summarized on a functional basis in the statement of activities. Accordingly, certain costs including fixed overhead expenses have been allocated among the programs and supporting services benefited based on time estimates by the Executive Director.
Compensated Absences – All regular employees who work at least twenty hours per week accrue compensated absences according to the Organization’s personnel policy. Upon termination of employment, employees receive payment for unused compensated vacation only. Compensated absences are charged to employee benefits expense when paid; $10,356 was paid for the year ended June 30, 2006. Accrued compensated vacations, not recorded as a liability, are estimated to be $20,535 at June 30, 2006.
NOTE 2 – CASH
Cash and cash equivalents consisted of the following at June 30, 2006: Carrying Bank Amount BalanceChittenden Bank – Checking account $ 78,712 $ 83,856 Money market account 11,518 11,518 90,230 95,374 Key Bank comprehensive account 212,252 212,252 Merchants Bank money market account 41,643 38,643 $ 344,125 $ 346,269 NOTE 3 – CONCENTRATION OF CREDIT RISK
The Organization maintains several bank accounts at three banks. (See Note 2) Accounts at an institution are insured by the Federal Deposit Insurance Corporation (FDIC) up to $100,000. Cash and cash equivalents did not exceed federally insured limits on June 30, 2006.
NOTE 4 – TEMPORARILY RESTRICTED NET ASSETS
Temporarily restricted net assets consisted of the following at June 30, 2006:
EPA grants $ 177 USDA- Agricultural Events Recycling 4,917 USDA- Mentoring Program 13,441 USDA- Prescription Drug Turn-in 9,716 State Travel Funds 4,280 $ 32,531
NOTE 5 – NET ASSETS RELEASED FROM RESTRICTIONS
Temporarily restricted net assets were released from grantor and program user restrictions by paying expenses satisfying the restricted purposes as follows:
Annual Report FY 2006 - 20 - © Northeast Recycling Council, Inc. October 2006
EPA grants $ 71,708 USDA- Agricultural Events Recycling 33,089 USDA- Mentoring Program 18,890 USDA- Prescription Drug Turn-in 12,614 State Travel Funds 4,808 $ 141,109
NOTE 6 – CONTINGENCIES
The Organization participates in various federal grant programs, which are governed by various rules and regulations of the grantor agencies. Costs charged to the respective grant programs are subject to audit and adjustment by the grantor agencies. Therefore, to the extent the Organization has not complied with grant requirements, refunds to the grantors may be required. In the opinion of the Organization, there are no significant contingent liabilities related to these matters and no provision has been recorded in the accompanying financial statements for such contingencies.
NOTE 7 – EMPLOYEE BENEFIT PLANS
The Organization has two defined contribution salary deferral plans administered by TIAA-CREF. The retirement plan covers all full-time employees. Employee contributions may be made at the rate of up to 5% of annual salaries, matched two-for-one by the Organization. The supplemental retirement plan is available to all full-time employees. Employee contributions may be made as determined by Federal law with no contribution by the Organization. One employee took advantage of the supplemental retirement plan during the year. Retirement plan expenses were $12,257 for the year. The Organization pays a portion of health, disability and life insurance for all full time employees who elect coverage. Disability and life insurance expenses included in “Employee benefits” totaled $1,568 for the year ended June 30, 2006. No employee elected to have medical insurance coverage.
NOTE 8 – OPERATING LEASE COMMITMENT
As of June 1, 2005, the Organization entered into a one-year non-cancelable operating lease for its office facility requiring rent of $10,320 annually. The lease grants the Organization the right to renew the lease for an additional three-year term. Rent expense for the year ended June 30, 2006 was $10,380, including $890 of rent for June and July 2006. The lease was renewed for an additional year on June 1, 2006. Minimum rental payments for the year ended June 30, 2007 are $10,680.
Appendix A
NERC BOARD OF DIRECTORS FY 2006
Connecticut: Judy Belaval Connecticut Department of Environmental Protection Delaware: Jim Short Delaware Department of Natural Resources Delaware: Tom Houska Delaware Solid Waste Authority Maine: George MacDonald Maine State Planning Office Massachusetts: Brooke Nash Massachusetts Department of Environmental Protection New Hampshire: Don Maurer New Hampshire Department of Environmental Services
New Jersey: Guy Watson New Jersey Department of Environmental Protection New York: Jeffrey Schmitt New York Department of Environmental Conservation New York: Brenda Grober Empire State Development Pennsylvania: Jeff Bednar Pennsylvania Department of Environmental Protection
Rhode Island: John Trevor Rhode Island Resource Recovery Corporation Vermont: Carolyn Grodinsky Vermont Agency of Natural Resources Please note: Each state has only one vote, although there may be more than one member of the Board from each state.
Annual Report FY 2006 - 21 - © Northeast Recycling Council, Inc. October 2006
APPENDIX B
Northeast Recycling Council, Inc. FALL CONFERENCE
October 25 & 26, 2005 AGENDA
Major Conference Sponsors
Tuesday, October 25, 2005 9:00 Welcoming Remarks: John Trevor, RIRRC; President, NERC Board of Directors 9:30 Industrial Packaging Materials - Learn about the complex variety of industrial
packaging materials currently being used, the disposal problems created by these materials, and how they are affecting manufacturers' bottom line. • Lawrence Dull, President, Institute of Packaging Professionals • Betsy Steiner, Executive Director, Alliance of Foam Packaging Recyclers • Patti Carrier, HiTech Division Facilities Manager, New Hampshire Ball
Bearing 12:30 LUNCH - Wiggins Tavern and ADVISORY MEMBER LUNCH - By Invitation Only
1:30 Rejuvenating Recycling Through A Common Regional Message - Work with
recycling professionals in the ten Northeast states to produce a common message that we can all use when advocating for recycling. Malchus Watlington, President, City Square Consulting
Annual Report FY 2006 - 22 - © Northeast Recycling Council, Inc. October 2006
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Wednesday, October 26, 2005 8:30 Welcoming Remarks: Jeffrey Bednar, PA DEP; Vice President, NERC Board of Directors
9:00 Enforcement of Mandatory Recycling Programs - Come face-to-face with NJ's
recycling enforcement team to find out how they are getting businesses to recycle. • Guy Watson, Bureau Chief of Recycling and Planning, New Jersey
Department of Environmental Protection • Richard Hills, Division Head for Solid Waste Management, Middlesex County
11:30 LUNCH - Wiggins Tavern 12:30 Shaking Each Tree Branch Part II - Increasing Recovery from Multi-family Units -
Learn about successes in getting multi-family unit residents to actually recycle. • Patricia Grayson, NYC Dept of Sanitation • Ann Moore, District Recycling Coordinator, Burlington County Solid Waste Management and Recycling • Barry Searle, City Sanitarian, City of Westfield Board of Health
Annual Report FY 2006 - 24 - © Northeast Recycling Council, Inc. October 2006
Northeast Recycling Council, Inc.
SPRING CONFERENCE & BOARD MEETING EPA, Region III Office, Philadelphia, PA
March 21 - 23, 2006 AGENDA
Major Conference Sponsors
Tuesday, March 21, 2006 8:00 Concurrent NERC, MACRO and MACREDO Board Meetings (Continental
Breakfast provided) 12:00 Lunch (provided for Board Meeting Attendees) 1:00 Tours at Blue Mountain Recycling (including a presentation by Recycle Bank) and Eastern Organics
Wednesday, March 22, 2006 - Joint Meeting with NERC, MACREDO and MACRO 8:30 Welcoming Remarks & Introductions 9:00 Future Recycling Markets & The Hauler Perspective - Chaz Miller, Director,
State Programs, National Solid Wastes Management Association ~ Come hear a different perspective on future recycling markets - one that includes the hauler viewpoint.
10:00 Regional Recycling Organizations' Priorities & Future Direction ~ Learn about
the work and priorities of three regional recycling organizations, and be part of the discussion on potential joint efforts. • Wayne Gjerde, Chair, MACRO • Linda Knapp, Executive Director, MACREDO • Lynn Rubinstein, Executive Director, NERC
12:00 Lunch (provided) 1:00 Beverage Container Recycling
• Steve Thompson, Director, Recycling Initiatives, Curbside Value Partnership Program ~ Become familiar with the Aluminum Association's Curbside Value
Annual Report FY 2006 - 25 - © Northeast Recycling Council, Inc. October 2006
Partnership Program and the progress made over the last year, and find out how your state recycling office can support this program.
• Sandi Childs, RME Associates ~ Find out how to conduct a successful stadium sweep, as well as increasing recycling at NASCAR events.
3:15 Construction & Demolition
• Optimizing Recycling LEED Credits ~ Jill Kowalski, Exec. Director, Delaware Valley Green Building Council Learn how to assist recyclers to effectively partner with green builders to maximize use of recycling credits.
• Deconstruction ~ Speakers to be announced. Thursday, March 23, 2006 8:30 Welcoming Remarks & Introductions 9:00 Electronics
• Update on Northeast States Electronics Recycling Legislation ~ Lynn Rubinstein, Executive Director, NERC • California Electronics Recycling Legislation ~ Learn about the progress made
on the nation's 1st statewide electronics recycling program. 1. Manufacturer ~ Douglas Smith, Sony USA 2. Recycler ~ Greg Voorhees, Envirocycle Inc. 3. Non-profit ~ Mark Murray, Californians Against Waste
12:00 Adjourn
Annual Report FY 2006 - 26 - © Northeast Recycling Council, Inc. October 2006
APPENDIX C FY 2006 Conference Sponsors
Fall 2005:
Public Service Enterprise Group New England Biosolids & Residuals Association American Plastics Council American Forest & Paper Association Casella Waste Systems Steel Recycling Institute Metals Recycling/Prolerized New England
Spring 2006:
Sony Sharp PSEG American Plastics Council Panasonic
Annual Report FY 2006 - 27 - © Northeast Recycling Council, Inc. October 2006
APPENDIX D Advisory Members
Sustaining Members
ElectroniCycle
Metal Management
Public Service Enterprise Group
(PSEG)
UNICOR
Annual Report FY 2006 - 28 - © Northeast Recycling Council, Inc. October 2006
Supporting Members
• American Ref-Fuel Operations of SEMASS • Association of NJ Recyclers • BioCycle • Bristol Resource Recovery Facility Operating Committee • Casella Waste Systems, Inc. • Colling Murphy Swift Hynes • Connecticut Daily Newspapers Association • Connecticut Recyclers Association • DSM Environmental Services • Good Point Recycling • Housatonic Resources Recovery Authority • International Association of Electronics Recyclers (IAER) • Interstate Refrigerant Recovery (& Board of CRC) • Maine Resource Recovery Association • National Recycling Coalition (NRC) • New England Biosolids & Residuals Assoc. (NEBRA) • New York State Legislative Commission on Solid Waste • Northeast Resource Recovery Association (NRRA) • Pennsylvania Recycling Markets Center • Professional Recyclers of PA (PROP) • Recycle America Enterprises, LLC • Resource Recycling • Rhode Island Office of Strategic Planning & Policy, DEM • RRFB Nova Scotia • TOMRA North America • Town of Andover, DPW • UltraShred • Workwaste, LLC • World Reuse, Repair and Recycling Association (WR3A)
Annual Report FY 2006 - 29 - © Northeast Recycling Council, Inc. October 2006