b'EPRA ANNUAL REPORT 20146. Accounts payable and accrued liabilities: 9. Risk management:Included in accounts payable and accrued liabilities(a) Credit risk:are government remittances payable of $533,731The EPRA is exposed to credit risk that arises from (2013 - $1,132,057), which includes amounts payable forthe quality of its stewards. Credit risk arises from the harmonized sales tax. possibility that the registrants of the EPRA will be 7. Restricted funds: unable to fulfill their obligations. The 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 2013.processing of end-of-life electronics and to ensure(b) Market risk:overall continued reduction of the environmentalThe EPRA is exposed to financial risk that arises impact of the EPRA program. from fluctuations in the sale of consumer The intent of the fund is for the enhancementelectronic products within the provincial regions of non-funded program elements, such asin which the EPRA operates. This risk is minimized ensuring that there is adequate capacity toby the corresponding decreases in program properly handle end-of-life electronics collecteddelivery and recycling process expenses and by through the program, providing improvementsregulation through each regional Department of to the metrics of the program and ensuring thatthe Environment. There has been no change to best practices are employed for the handlingthe risk exposure from 2013.of substances of concern. Up to 10% of direct(c) Interest rate risk:operational expenses incurred by the EPRA may be transferred to the fund annually when there isThe EPRA is exposed to interest rate risk arising from an excess of revenue over expenses in the year.the possibility that changes in interest rates will (b) Operating Contingency Fund: affect the value of fixed income securities held by the Association. EPRA manages this risk by holding The EPRA Board of Directors established anGICs and staggering the terms of the investments Operating Contingency Fund to accumulateheld. There has been no change to the risk sufficient funds to ensure stable programexposure from 2013.operations continued through variableeconomic conditions. 10. Commitments:The targeted amount for the fund is the equivalentThe Association has entered into a lease for office of one year of projected operating costs. Allpremises. Minimum future payments required under this excess of revenue over expenses not used foroperating lease are as follows:the purchase of capital assets and after transfers to the Effectiveness and Efficiency Fund are transferred to the fund until the targeted amount2015$180,900is reached. In a year where an operating deficit2016184,600occurs, a transfer is made from the Operating2017195,700Contingency Fund to the general fund to cover the current year operating deficit.2018195,7002019195,7008. net asset transfer:Thereafter97,800The Saskatchewan Waste Electronic Equipment Program Incorporated was dissolved and the net assets of$1,050,400$11,019,191 were distributed to the EPRA as ofApril 1, 2013.25'