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 Page 31 Page 32AUDITED FINANCIAL STATEMENTS Ontario Electronic Stewardship Notes to Financial Statements December 31, 2015 6. Significant Contracts The Organization is 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. The Organization paid $2,512,361 (2014 - $2,500,614) to EPRA during the year. Included in accounts payable and accrued liabilities is $236,848 (2014 - $345,514) due to EPRA. All members of the Organization's 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: 0 0 9 , 9 9 $ 6 1 0 2 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, are monitored regularly for collections, and the carrying amount of accounts receivable represents the maximum credit risk exposure. At December 31, 2015, the allowance for doubtful accounts was $119,722 (2014 - $82,808). There has been no change to the risk exposure from 2014. (b) 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. In 2014 exposure increased as a result of the purchase of fixed income securities. There has been no change to the risk exposure from 2014. Ontario Electronic Stewardship 2015 Annual Report 29