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PEACE ARCH COMMUNITY SERVICES FOUNDATION
NOTES TO FINANCIAL STATEMENTS - MARCH 31, 2015 (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, 2015.
3. RELATED PARTY TRANSACTIONS
(a) Accounts receivable includes $596,178 (2014 - $NIL) receivable from the Society.
(b) Accounts payable and accrued liabilities includes $NIL (2014 - $279,973) payable to the Society, at regular
trade terms.
(c) During the year, the Foundation paid administration charges of $36,000 (2014 - $36,000), paid fund
development charges of $43,333 (2014 - $NIL), and disbursed donations and grants of $216,020 (2014 -
$243,048) to the Society.
(d) The Foundation received donations and grants of $650,000 (2014 - $NIL) from the Society
These transactions are in the normal course of operations and are recorded at the exchange amount.
4. INVESTMENTS
Investments are summarized as follows:
2015
2014
Money market/cash
$ 87,100 $ 86,004
Marketable securities
375,275
340,031
$ 462,375 $ 426,035
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.