b'4. Accounts payable and accrued liabilities: 6. Risk management:Included in accounts payable and accrued liabilities(a) Credit risk:are government remittances payable of $456,248EPRA is exposed to credit risk that arises from (2019 - $802,127), which includes amounts payable forthe quality of its stewards. Credit risk arises from harmonized sales tax. the possibility that the registrants of EPRA will be 5. Restricted funds: unable to fulfill their obligations. EPRA stewards are numerous and diverse which reduces the (a) Effectiveness and Efficiency Fund: concentration of credit risk. Management closely The EPRA Board of Directors established anevaluates the collectability to mitigate this risk. Effectiveness and Efficiency Fund to promote bestThere has been no change to the risk exposure practices for the collection, transportation andfrom 2019.processing of end-of-life electronics and to ensure(b) Market risk:overall continued reduction of the environmentalEPRA is exposed to financial risk that arises from impact of the EPRA program. fluctuations in the sale of consumer electronic The intent of the fund is for the enhancementproducts within the provincial regions in which of non-funded program elements, such asEPRA operates. This risk is minimized by the ensuring that there is adequate capacity tocorresponding decreases in program deliveryproperly handle end-of-life electronics collectedand recycling process expenses and by regulation through the program, providing improvementsthrough each regional Department of the to the metrics of the program and ensuring thatEnvironment. There has been no change to thebest practices are employed for the handlingrisk exposure from 2019.of substances of concern. Up to 10% of direct(c) Interest rate risk:operational expenses incurred by EPRA may be transferred to the fund annually when there is anEPRA is exposed to interest rate risk arising from the excess of revenue over expenses in the year.possibility that changes in interest rates will affect (b) Contingency reserve: the value of fixed income securities held by the Association. EPRA manages this risk by holding The EPRA Board of Directors established aGICs and staggering the terms of the investments Contingency reserve to accumulate sufficientheld. There has been no change to the risk funds to ensure stable program operationsexposure from 2019.continued through variable economic conditions.The targeted amount for the reserve is the7. Commitments:equivalent of one year of projected operatingThe Association has entered into a lease for office costs. All excess of revenue over expenses notpremises. Minimum future payments required under this used for the purchase of capital assets and afteroperating lease are as follows:transfers to the Effectiveness and Efficiency Fund are transferred to the fund until the targeted2021 $ 122,128amount is reached. In a year where an operating2022 122,128deficit occurs, a transfer is made from the Contingency reserve to the general fund to 2023 124,036cover the current year operating deficit. 2024 129,7602025 129,760Thereafter 227,08128 EPRA ANNUAL REPORT 2020'