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PEACE ARCH COMMUNITY SERVICES FOUNDATION
NOTES TO FINANCIAL STATEMENTS - MARCH 31, 2014 (Continued
)
2. FINANCIAL INSTRUMENTS (Continued)
(b) Market Risk
Market risk relates to the possibility that the equity investments will change in value due to future
fluctuations in market prices. As the equity investments are held at market value, those investments
are exposed to market risk to the extent that a decrease in market value is not considered temporary.
The Foundation does not use derivative instruments to reduce its exposure to market risk.
(c) Credit Risk
Credit Risk arises from the possibility that the entities, to which the Foundation provides funding
may not be able to repay their financial obligations. Credit balances are monitored on a continuing
basis, and management does not believe there to be any bad debts as of March 31, 2014.
3. INVESTMENTS
Investments are summarized as follows:
2014
2013
Money market/cash
$ 86,004 $ 84,995
Marketable securities
340,031
279,136
$ 426,035 $ 364,131
Investments are held and managed by Scotia McLeod Securities. Investments are held in widely traded and
liquid mutual funds, bonds and securities which can be transferred to the Foundation's general account at the
Board's discretion, to be used for activities of the Foundation, such as charitable disbursements to Sources
Society.
4. RELATED PARTY TRANSACTIONS
(a) Accounts payable and accrued liabilities includes $279,973 (2013 - $597,279) payable to the Society, at regular
trade terms.
(b) During the year, the Foundation paid administration charges of $36,000 (2013 - $32,000) and disbursed
donations and grants of $243,048 (2013 - $803,860) to the Society.
These transactions are in the normal course of operations and are recorded at the exchange amount.