20 NORTHERN COLLEGE OF APPLIED ARTS AND TECHNOLOGY Notes to Financial Statements Years ended March 31, 2013 and March 31, 2012 15. Changes in non-cash w o rking capital: 2013 2012 Decrease (increase) in accounts receivable $ 40,029 $ (256,526) Decrease (increase) in grants receivable 82,309 (140,277) Increase (decrease) in inventor ies and prepaid expenses 8,970 (21,440) Decrease in accounts payable and accrued liabilities (877,722) (86,160) Increase (decrease) in vacation and leave payable (86,028) 31,380 $ (832,442) $ (473,023) 16. Contingency : As at March 31, 2013, certain legal actions ar e pending against the College. An estimate of the contingency cannot be made since the outcome of these matters is indeterminate. Should any loss result from the resolution of these matters, such loss would be charged to operations in the year of disposition. 17. Guarantees: The College’s primary guarantees are as follows: a) Indemnity has been provided to all director s and/or officers of the College for various items including, but not limited to, all settled su its or actions due to association with the College, subject to certain restrictions . The College has purchased directors’ and officers’ liability insurance to mitigate the cost of any potential future suits or actions. The term of indemnification is not explicitly defi ned, but is limited to the period over which the indemnified party served as governor, director or officer to the College. The maximum amount of any potential future paym ent cannot be reasonably estimated. b) In the normal course of business, the College has entered into agreements that include indemnities in favour of third parties, such as student work placement agreements, purchase and sale agreements, confidentia lity agreements, engagement letters with advisors and consultants, outsourcing agreem ents, leasing contracts, information technology agreements and service agreement s. These indemnification agreements may require the College to compensate c ounterparties for losses incurred by the counterparties as a result of breaches in repr esentation and regulations or as a result of litigation claims or statutory sanctions t hat may be suffered by the counterparty as a consequence of the transaction. The terms of these indemnities are not explicitly defined and the maximum amount of a potential reim bursement cannot be reasonably estimated.