Page 1
Page 2
Page 3
Page 4
Page 5
Page 6
Page 7
Page 8
Page 9
Page 10
Page 11
Page 12
Page 13
Page 14
Page 15
Page 16
Page 17
Page 18
Page 19
Page 20
Page 21
Page 22
Page 23
Page 24
Page 25
Page 26
Page 27
Page 28
Page 29
Page 30
2 0 1 4 A N N U A L R E P O R T The future is in your hands. Dont let it go to waste. 96.5 of Ontario residents within 10 km of a collection depot 96.5 within 10 km of a collection depot 99.6 within 25 km of a collection depot 98.3 urban population within a 15 minute drive of a collection depot 327 Total collection events 593 Total OES collection sites 2595 Generators 68 public awareness of OES and Recycle Your Electronics 710 Service Providers 841 Stewards Remitters 991.00 Total program costs per tonne 90 of total program cost directed towards material management KEY PERFORMANCE INDICATORS ACCESS ACCESS COST A W ARENES S Based on the most recent 2011 Census of Canada of Ontario Population Co vered Sites Events 71018 tonnes in 2014 5.25 kg per capita in 2014 327653 total tonnes 2009-2014 24 kg per capita 2009-2014 CollectionMeasure of weight of regulated electronics collected by program for recycling. Approximately 67 million deviceswere successfully diverted from landfill since the program started in 2009. KEY PERFORMANCE INDICATORS Accessibility and Convenience. Two critical components in a successful waste electrical and electronic equipment WEEE recycling program. Already Canadas largest provincial WEEE program in 2014 Ontario Electronic Stewardship OES expanded its scope even further by adding 57 OES new collection sites increasing the number of collection points to 593. Over 96.5 of Ontario residents live within 10 kilometers of a collection point making recycling of end-of-life electronics EOLE that much more convenient. 2014 also marked the 5 year anniversary of the OES program in Ontario. On behalf of industry stewards OES has safely and securely collected and recycled over 300000 metric tonnes of end-of-life electronics since August 2009. And with one of the highest per capita recycling rates in the country Ontarians have diverted over 67 million devices from our provinces landfills and environment. These are just a few highlights of our many accomplishments this year. As the Chair of the OES Board I am proud to be a part of this successful program and honored to present this Annual Report. As we reflect on the successes of our program to date it is important to also look to the future to see what may affect our program of tomorrow. The trend for manufacturers to build greater sustainability into their products by designing consumer electronics that are multi-functional and lighter is a very positive one. Miniaturization and the use of fewer resources is something we all embrace. The reduction in the weight of products collected in the program is indicative of the first R Reduce which we see in the products currently being brought to market. On behalf of the OES Board I would like to acknowledge and thank Executive Director Melanie Wilde for her strong leadership of the program. As a former General Manager in the Canadian consumer electronics and manufacturing sector Melanie brings to OES a wealth of industry experience and an understanding of consumer business and steward perspectives as she works to effectively and efficiently steward the management the OES program in 2014 and beyond. As we close off 2014 and look forward to 2015 I wish to thank my fellow board members OES and EPRA staff our stewards and all of our other stakeholders for their important role in helping to make this year a successful one for OES and e-recycling in the province. Also we would be remiss if we did not thank the residents and businesses of Ontario who continue to recycle their EOLE through our program. By working together we are helping to support a cleaner environment for today and for tomorrow. Nick Aubry Chair Ontario Electronic Stewardship Message from the Chair of OES 2 Nick Aubry 2014 was a significant year for Ontarios waste electrical and electronic equipment WEEE diversion program. It marked the five year anniversary of the program a time to both reflect on our accomplishments and look forward to what is yet to come. Over the five year history of the program we have collected 24kg per capita or 67 million devices from every Ontario resident. Looking back to the time when the program started feels like a look down technology memory lane. In 2009 I returned my computer to the program separate CRT monitor and desktop. Today I hold more computing power in my hand in the form of my tablet. In August as we celebrated the 5 year anniversary of the program we had many significant milestones to celebrate. In addition to surpassing the 300000 tonnes collected milestone we also celebrated some of our most successful events in program history. In April we held a two day collection event within the Chinese community that collected a record breaking 96 tonnes. Take a look at page 11 for event highlights including how 15 Girl Guides from Orleans have become incredible e-recycling advocates. In addition we helped support Grade 9 10 teachers by provided e-recycling content that works within the curriculum requirement on both Electricity and Climate Change. Accessibility of the program remains strong. 96.5 of all Ontario residents live within 10 km of a drop off location. May 1 2014 OES was able to bring Environmental Handling Fees down in four categories. Program fees are established based on the cost recovery methodology put in place in 2013 in accordance with regulatory direction. This model supports the financial health and stability to the program by allowing for the provision of operating reserves material category deficit recovery and annual recovery of actual costs by material category. I appreciate the warm welcome to the program from the Stakeholders and Service providers when I started last April. The open frank discussions I have had with Processors and Municipalities have provided insight on how we can continue to shape a program in response to changing technology and market conditions. In 2015 we look forward to increasing awareness with education programming and integrated meaningful messaging. We expect to hold hundreds of best in class collection events throughout the year. Plus we will continue to build a financially healthy program as we work to introduce efficiencies. OES remains dedicated to running a program that is effective efficient and convenient for everyone that calls Ontario home. Melanie Wilde Executive Director Ontario Electronic Stewardship 3 Message fROm the Executive Director Melanie Wilde 4 REDUCE Industry-wide weight reduction by product category 2009-2014 reduced by 59 reduced by 44 reduced by 51 reduced by 57 reduced by 36 reduced by 48 reduced by 40 reduced by 52 reduced by 33 Computer Monitor 22 Television 19 Television 27 Television 50 Cordless Telephone Cellular Telephone Desktop Computer Portable Computer Desktop Copiers Printers Multi-function Devices Overall weight of electronics products have been dramatically reduced since the start of the Ontario WEEE program. For example computer monitors by as much as 59. By reducing the size of microprocessors manufacturers are able to produce products that weigh less. Additionally products have been designed with multiple functions. For example the entire computer built around a display. Increases in storage capacity and multifunctional devices have contributed to miniturization of devices. As new technology trends continue categories emerge. For example 2014 saw the growth of the phablet a category depicted by smartphones with screens over 5 but smaller than a 10 computer screen. Reference EPSC 2014 Design for the Environment Report 5 Miniaturization Multi-functionality MP3 Player Portable Music Player Typewriter Video Recorder Video PlayerMobile Telephone Television Landline Phone Radio Camera Scanner PDAAnswering Machine ComputerLaptop Stereo Watch GPSPager Security Card Gaming Console Barcode Reader Credit Card Calculator Stop WatchFlashlight CompassAlarm Clock Some of the items that have been replaced by the storage capacity of todays Smartphones Reuse The provision of functioning electronics to another user for its intended purpose without hardware repair or modifications. The reuse activities are limited to non-intrusive operation verification cleaning replacement of consumable items such as batteries toners fusers etc. data and other information clearing and software installation. Refurbishment Any disassembly of electronics for the purpose of internal testing or troubleshooting or replacement or repair of nonfunctioning or obsolete parts not including consumable items such as batteries toners fusers etc. REUSE Refurbishment 6 Promotion Education OES continues to promote and educate Ontario residents on reuse of electronics products. For example during the 2014 holiday season we ran a regifting campaign itsoktoregift OES delivered a holiday specific thematic message about reusing electronics by re purposing and re-gifiting them when older models are replaced by new gifts. In 2014 sixteen organizations representing 22 OES reuse and refurbishment sites have collected and refurbished 1917146kg of out of use electronics. 7 Reuse 1917147kg Refurbishment through Steward Programs 719250 kg TOTAL 2636397 kg Consolidation and Repack Transport to Consolidation and Repack Drive to drop off location Postal Code Lookup Do I want to reuse or recycle of all Ontario residents live within 10 mins of a collection site Postal code searches increased by from Q4 2013 to 2014 OES transport partners Reuse refurbishment sites22 8 RECYCLE Manual Disassembly RQO Certification OES consolidators OES repackers RQO Approved Primary Processors in Ontario Metals Ferrous Aluminum and Copper. Metals are manually andor mechanically separated and smelted for reclaim. Other precious metals Precious metals containing chips and circuit boards are manually andor mechanically separated and smelted for reclaim of the precious metals. Cables Wires Manually andor mechanically separated and smelted for metal recovery. High Low grade circuit boards Manually andor mechanically separated and smelted for reclaim of precious metals. Glass Non-lead glass is manually separated for recovery or mixed with leaded glass stream for smelting. Leaded glass Cathode Ray Tubes CRT leaded plasma display Glass is manually or mechanically separated and either sent into leaded glass production or smelted to reclaim lead from the glass. Downstream Mechanical Disassembly 9 Primary Processors Acc ess ibility 10 Catchment Area of Ontario poulation Kilometers radius from site within catchment area 10 km 87.3 25 km 97.8 50 km 99.8 OES Collection sites Catchment Area of Ontario poulation Kilometers radius from site within catchment area 10 km 94.1 25 km 98.5 50 km 99.1 Generator Collection Sites Catchment Area of Ontario poulation Kilometers radius from site within catchment area 10 km 96.5 25 km 99.6 50 km 99.8 Total Accessibility Barge - Rail - Truck Moose Factory is a community located on Moose Island on James Bay. OES utilizes barge rail and trucks consolidating shipments with other remote communities as we move end of life electronics south for responsible recycling. We are cleaning up the North. The days of driving down a pretty country road on a Sunday drive only to find a big old projection TV turfed out in the bush are gone... Together we all win and we help Keep Ontario Clean Peter and Janice LaRocque JPL Storage Haileybury Ont We are a very small community but we are now managing to fill a large bin 2-3 times a year What an accomplishment This program is having an enormous impact on the life span of our landfill and our environment. Louise Heintzman Deputy Clerk-Treasurer District of Parry Sound 98.3 of Ontario urban residents live within a 15 minute drive of a collection site. OES Accessi bi li ty Re search Repo rt Community Events Collection Events dedicated to the Chinese community yielded excellent visibility for the OES program with tradition Chinese language specific media attention community turnout and collected material. Woodside collected the most material from a single event in program history with 95 tonnes and Splendid China collected 30 tonnes. Girl Guides OES assisted 15 Girl Guides from Orleans in becoming incredible e-recycling advocates as they hosted a series of local events resulting in the community education and collection of 69.93 metric tonnes of end of life electronics. The Girl Guides raised 10489.50 which was an overwhelming success to improve our Girl Guide troops efforts Shanna Andrews Event hostTroop leader. 2 01 4 Re cap In 2014 OES held 327 collection events that collected a total of 1307341 kgs of end of life electronics. The OES allocation model serves and important role and helps support communities throughout the province of Ontario. 118 of the events conducted by OES were in remote areas of the province providing accessibility to the program in remote communities. ONTARIO E LE CTRONIC STE WARDSHIP 2 014 ANNUAL RE P ORT Col l ec t ion E ve nts 11 P r omotion Education 12 Awareness Combined awareness of RecycleYourElectronics.ca and Ontario Electronic Stewardship raised from 63 in 2013 to 68in 2014. Research and Market Development In 2014 OES conducted research on the Millennial Demographic. OES used this research as part of our 2014 promotion and education plans to help increase awareness of the program and will continue efforts with this important demographic in 2015. Research verified 2 in 3 millennials feel that improper disposal of electronics is a concern primarily due to pollution and filling up landfills. More than 1 in ten millennials in Ontario would rather give up food for a day than their phone 13 Co- Brande d Adv e rt isin g Pi lot i n Nort h e rn On ta rio Colle c t i on Si t e s OES delivered a co-branded pilot designed to assess the influence of awareness on collection. The seven sites participating in the pilot saw a 72 increase in material collected compared to the same period in 2013. Several sites indicated they saw an increase in calls from the public requesting information on electronic recycling. Promot i on Educat i onal E v e n ts In an effort to reach Ontario communities and groups OES delivered meaningful messaging to consumers thru over 24 promotional and education events throughout 2014. Some of the highlights include Comicon Brampton Kite Festival Taste of the Kingsway and Markham Fair. OES events team integrated handheld electronics collection with events promoters. ONTARIO E LE CTRONIC STE WARDSHIP 2 014 ANNUAL RE P ORT Paid Sear ch Se arch En gi ne Optimization Paid search marketing and search engine optimization keyword search continued for the RYE.ca website to further build awareness and increase our online persona and footprint. Results from this activity were extremely successful realizing 64 increase in total visitors over the same period last year. P r omotion Education Online Campaigns Online campaigns launched throughout 2014 to drive awareness about recycling out-of-use electronics. Bloggers shared videos through social media channels with a thematic messages about ridding your home of end of life electronics to resource recovery and giving backreuse. 64increase in total visitors over the same period last year. 14 ICI Promotion and Support Feature Events OBIAA Business to business focus on Ontario BIAs Business Improvement Association. PM Expo Ontario business and property management community Small Business Pickup As part of continuous ICI support OES offered pick up services over the course of the year for small businesses throughout the province. Incentive Program OES continues to support ICI sector through its processor incentive program by offering incentives for processors to collect end of life electronics. ONTARIO E LE CTRONIC STE WARDSHIP 2 014 ANNUAL RE P ORT 15 BreakUpWithYourStuff WhatsInsideYours WhereAreYoursHiding Ok2Regift 16 Recycler Qualification Office 92 Caplan Ave Ste. 102 Barrie ON L4N 0Z7 February 24 2015 RE ELECTRONICS RECYCLER AUDITS AND APPROVALS Since the inception of the Ontario Electronic Stewardship OES program recyclers have been audited against the requirements of the Electronics Recycling Standard ERS. Now incorporated into the broader Recycler Qualification Program RQP the ERS defines the minimum requirements for electronics recyclers to ensure that end-of-life electronics and the resultant material streams are handled in a safe secure and environmentally sound manner. The Recycler Qualification Office RQO is responsible for conducting audits of all OES recyclers on behalf of the program in accordance with the requirements of the RQP. As of December 31 2014 all of the OES approved recyclers have been audited by the RQO demonstrated conformance with the requirements of the ERS and have been approved under the RQP. Sean De Vries Director Recycler Qualification Office Electronic Products Recycling Association Ontario Electronic Stewardship Financial Statements For the year ended December 31 2014 Contents Independent Auditors Report 18 Financial Statements Balance Sheet 19 Statement of Changes in Net Assets 20 Statement of Operations 21 Statement of Cash Flows 22 Notes to Financial Statements 23-27 ONTARIO E LE CTRONIC STE WARDSHIP 2 014 ANNUAL RE P ORT 17 Independent Auditors Report To the Members of Ontario Electronic Stewardship We have audited the accompanying financial statements of Ontario Electronic Stewardship which comprise the balance sheet as at December 31 2014 and the statements of changes in net assets operations and cash flows for the year then ended and a summary of significant accounting policies and other explanatory information. Managements Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with Canadian accounting standards for notforprofit organizations and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement whether due to fraud or error. Auditors Responsibility 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 comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors judgment including the assessment of the risks of material misstatement of the financial statements whether due to fraud or error. In making those risk assessments the auditor considers internal control relevant to the entitys preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances but not for the purpose of expressing an opinion on the effectiveness of the entitys internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion these financial statements present fairly in all material respects the financial position of Ontario Electronic Stewardship as at December 31 2014 and the results of its operations and its cash flows for the year then ended in accordance with Canadian accounting standards for notforprofit organizations. Chartered Professional Accountants Licensed Public Accountants March 23 2015 Toronto Ontario 2014 F INANCIAL STATEMENTS 18 Ontario Electronic Stewardship Balance Sheet December 31 2014 2013 Assets Current Cash 5296662 13619479 Investments Note 2 15137158 - Accounts receivable 19641828 17258107 Prepaid expenses 19221 16968 40094869 30894554 Capital assets Note 3 224719 624983 40319588 31519537 Liabilities and Net Assets Current Accounts payable and accrued liabilities Note 4 8881232 17698717 Net Assets Invested in capital assets 224719 624983 Unrestricted - 13195837 Contingency reserve Note 5 31213637 - 31438356 13820820 40319588 31519537 On behalf of the Board ONTARIO E LE CTRONIC STE WARDSHIP 2 014 ANNUAL RE P ORT 19 Ontario Electronic Stewardship Statement of Changes in Net Assets For the year ended December 31 2014 Invested in Capital Contingency 2014 Assets Unrestricted Reserve Total Balance beginning of year 624983 13195837 - 13820820 Excess deficiency of revenue over expenses for the year 400264 18017800 - 17617536 Transfer to contingency reserve Note 5 - 31213637 31213637 - Balance end of year 224719 - 31213637 31438356 For the year ended December 31 2013 Invested in Capital Contingency 2013 Assets Unrestricted Reserve Total Balance beginning of year 724686 1252907 - 528221 Excess deficiency of revenue over expenses for the year 292274 14641315 - 14349041 Investment in capital assets 192571 192571 - - Balance end of year 624983 13195837 - 13820820 20 2014 F INANCIAL STATEMENTS Ontario Electronic Stewardship Statement of Operations For the year ended December 31 2014 2013 Revenue Steward fees 87755147 90317304 Investment income 248871 73689 88004018 90390993 Direct operating costs Material management costs 63055055 69724376 Other expenses Shared promotion and education 2374585 1426606 Waste Diversion Ontario administration and program delivery 302043 717302 Program delivery and administration Note 6 4654799 4173668 7331427 6317576 70386482 76041952 Excess of revenue over expenses for the year 17617536 14349041 ONTARIO E LE CTRONIC STE WARDSHIP 2 014 ANNUAL RE P ORT 21 Ontario Electronic Stewardship Statement of Cash Flows For the year ended December 31 2014 2013 Cash provided by used in Operating activities Excess of revenue over expenses for the year 17617536 14349041 Adjustments to reconcile excess of revenue over expenses for the year to cash provided by operating activities Amortization of capital assets 339063 292274 Noncash component of investment income 137158 - Loss on disposal of capital assets 61201 - Changes in noncash working capital balances Accounts receivable 2383721 4405404 Prepaid expenses 2253 45570 Accounts payable and accrued liabilities 8817485 721581 6677183 9559900 Investing activities Purchase of investments 15000000 - Purchase of capital assets - 192571 15000000 192571 Increase decrease in cash during the year 8322817 9367329 Cash beginning of year 13619479 4252150 Cash end of year 5296662 13619479 22 2014 F INANCIAL STATEMENTS ONTARIO E LE CTRONIC STE WARDSHIP 2 014 ANNUAL RE P ORT 23 Ontario Electronic Stewardship Notes to Financial Statements December 31 2014 1. Significant Accounting Policies The following is a summary of significant accounting policies of the Organization a Business Organization and Operations The Ontario Electronic Stewardship Organization is set up to act as the Industry Funding Organization for the administration of provincial programs for the reduction reuse and recycling of waste electrical and electronic equipment WEEE pursuant to the Waste Diversion Act 2002. The Organization is a notforprofit organization and as such is not subject to income taxes. On September 20 2007 the Organization was formally incorporated in the province of Ontario as a corporation without share capital. On July 9 2008 the Organization was designated as the Industry Funding Organization for WEEE by regulation under the Waste Diversion Act 2002. The Phase 1 WEEE Program officially commenced April 1 2009. The Phase 1 WEEE Program was expanded to include the Phase 2 materials and to reflect the Revised Phase 1 and 2 Program Plan components which commenced April 1 2010. The Revised Plan encompasses 44 materials grouped into 8 categories. The Organization operates the WEEE Program under the terms of a Program Agreement dated July 10 2009 with Waste Diversion Ontario. On February 19 2013 the Minister of the Environment approved an amendment to the WEEE Program Plan giving effect to the new cost recovery principles for steward feesetting. Effective May 1 2013 steward fees are based on the principal of full cost recovery with provision for appropriate operating reserves material category past deficit recovery over a five year period and annual reconciliation to actual operating costs. b Basis of Accounting The financial statements have been prepared using Canadian accounting standards for notforprofit organizations. c Revenue Recognition Steward fees are recognized as revenue as stewards register with the Organization and submit unit details. Revenues resulting from compliance and enforcement activities are recognized when the amount can be reasonably estimated and collection is reasonably assured. Investment income is recognized on an accrual basis. The Organization follows the deferral method of accounting. Ontario Electronic Stewardship Notes to Financial Statements December 31 2014 1. Significant Accounting Policies Continued d Financial Instruments Investments are measured at their fair value. Realized and unrealized gains losses are recorded in the statement of operations. The Organization accounts for its investments on a settlement date basis and transaction costs associated with investment activities are included in the statement of operations. Unless otherwise noted the Organization initially measures its financial assets and liabilities at fair value and subsequently measures its financial assets and liabilities at amortized cost. e Capital Assets Property plant and equipment are recorded at cost less accumulated amortization and are amortized on the following basis Computer equipment 3 years straight line Furniture and fixtures 10 years straight line Motor vehicles 5 years straight line Office equipment 5 years straight line Containers 10 years straight line Leasehold improvements straight line over the term of the the lease Intangible assets with finite lives are recorded at cost and are amortized over their useful lives beginning once the asset is ready for use. The computer software is being amortized on a straight line basis over 3 years. f Impairment of LongLived Assets When a longlived asset no longer has any longterm service potential to the organization the excess of its net carrying amount over any residual value is recognized as an expense in the statement of operations. g Use of Estimates The preparation of financial statements in accordance with Canadian accounting standards for notforprofit organizations requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates include accrued material management costs. Actual results could differ from managements best estimates as additional information becomes available in the future. 24 2014 F INANCIAL STATEMENTS Ontario Electronic Stewardship Notes to Financial Statements December 31 2014 2. Investments Investments consist of Guaranteed Investment Certificates bearing interest at 1.25 per annum and maturing April 2015. The Guaranteed Investment Certificates includes accrued interest of 137158 2013 nil. 3. Capital Assets 2014 2013 Accumulated Accumulated Cost Amortization Cost Amortization Property plant and equipment Computer equipment 42575 40646 42575 28888 Furniture and fixtures - - 67945 14389 Motor vehicles 19228 13780 19228 9934 Office equipment 22359 12688 56429 22107 Containers 11976 3668 11976 2470 Leasehold improvements 8136 4068 8136 1743 104274 74850 206289 79531 Intangible asset Computer software 912500 717205 921244 423019 1016774 792055 1127533 502550 Net carrying amount 224719 624983 ONTARIO E LE CTRONIC STE WARDSHIP 2 014 ANNUAL RE P ORT 25 4. Accounts Payable and Accrued Liabilities Included in accounts payable and accrued liabilities are government remittances payable of 1387634 2013 1350543. 5. Contingency Reserve The Board of Directors established a Contingency Reserve to accumulate sufficient funds to ensure stable program operations continued through variable economic conditions. All excess revenue over expenses not used for the purchase of capital assets are transferred to the reserve. In a year where an operating deficit occurs a transfer is made from the Contingency Reserve to the unrestricted net assets to cover the current year operating deficit. Ontario Electronic Stewardship Notes to Financial Statements December 31 2014 6. Significant Contracts On November 1 2013 the Organization entered into a Service Agreement with the Electronic Products Recycling Association EPRA whereby EPRA is to provide the Organization with management and administrative duties under the Program Agreement. Effective November 16 2013 all personnel at the Organization were terminated and some transitioned to EPRA. The Organization paid 2500614 2013 415162 to EPRA during the year. Included in accounts payable and accrued liabilities is 345514 2013 167692 due to EPRA. All members of the Organizations board of directors are members of the EPRA board of directors. 7. Commitments The Organization has entered into a lease for office premises. Minimum future payments required under this operating lease are as follows 2015 133200 2016 99900 233100 8. Financial Instrument Risk Management a Credit Risk Financial instruments potentially exposed to credit risk include cash investments and accounts receivable. Management considers its exposure to credit risk over cash and investments to be remote as the Organization holds cash deposits at a major Canadian bank. Accounts receivable are not significantly concentrated monitored regularly for collections and the carrying amount of accounts receivable represents the maximum credit risk exposure. At December 31 2014 the allowance for doubtful accounts was 82808 2013 47160. There has been no change to the risk exposure from 2013. b Liquidity Risk Liquidity risk is the risk that the Organization will not be able to meet its obligations as they come due. The Organizations approach to managing liquidity risk is to ensure that it will always have sufficient working capital available or internally restricted funds to meet its obligations as they come due. Its liquidity risk arises primarily from accounts payable and commitments. At December 31 2014 the Organization had positive working capital of 31213637. There has been no change to the risk exposure from 2013. 26 2014 F INANCIAL STATEMENTS Ontario Electronic Stewardship Notes to Financial Statements December 31 2014 8. Financial Instrument Risk Management Continued c Interest Rate Risk The Organization is exposed to interest rate risk arising from the possibility that changes in the interest rates will affect the value of fixed income securities held. The Organization manages this risk by holding short term Guaranteed Investment Certificates. Risk exposure increased from 2013 as a result of the purchase of fixed income securities. 9. Comparative Figures Certain comparative amounts have been reclassified to conform with the current year presentation. ONTARIO E LE CTRONIC STE WARDSHIP 2 014 ANNUAL RE P ORT 27 2015 Ontario Electronic Stewardship. All rights reserved. The OES and Recycle Your Electronics marks are the property of Ontario Electronic Stewardship unauthorized use is prohibited. 5750 Explorer Drive Suite 301 Mississauga Ontario L4W 0A9 For more info call toll free 1.888.646.1820 OntarioElectronicStewardship.ca