Financial Information Act Return (To March 31, 2019)
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BRITISH COLUMBIA HYDRO AND POWER AUTHORITY Financial Information Act Return for the Year Ended March 31, 2019 Published in accordance with the Financial Information Act, Revised Statutes of British Columbia 1996, Chapter 140, as amended. FINANCIAL INFORMATION ACT RETURN FOR THE YEAR ENDED MARCH 31, 2019 TABLE OF CONTENTS Statement of Financial Information Approval 3 Audited Consolidated Financial Statements Fiscal 2019 4 British Columbia Hydro and Power Authority and its subsidiary Powerex Corp. Schedule of Remuneration and Expenses – Board of Directors 70 British Columbia Hydro and Power Authority Schedule of Debts 72 Schedule of Guarantee and Indemnity Agreements 73 Schedule of Remuneration and Expenses 74 Schedule of Payments to Suppliers for Goods and Services 148 Statement of Grants and Contributions 184 Powerex Corp. Schedule of Remuneration and Expenses 185 Schedule of Payments to Suppliers for Goods and Services 189 Powertech Labs Inc. Schedule of Remuneration and Expenses 193 Schedule of Payments to Suppliers for Goods and Services 197 2 BRITISH COLUMBA HYDRO AND POWER AUTHORITY STATEMENT OF FINANCIAL INFORMATION APPROVAL The undersigned represents the Board of Directors of the British Columbia Hydro and Power Authority and approves the information contained in the Statement and Schedules of Financial Information prepared in accordance with the Financial Information Act. Kenneth G. Peterson Executive Chair of the Board 3 British Columbia Hydro and Power Authority MANAGEMENT REPORT The consolidated financial statements of British Columbia Hydro and Power Authority (BC Hydro) are the responsibility of management and have been prepared in accordance with International Financial Reporting Standards. The preparation of financial statements necessarily involves the use of estimates which have been made using careful judgment. In management’s opinion, the consolidated financial statements have been properly prepared within the framework of the accounting policies summarized in the consolidated financial statements and incorporate, within reasonable limits of materiality, all information available at June 12, 2019. The consolidated financial statements have also been reviewed by the Audit & Finance Committee and approved by the Board of Directors. Financial information presented elsewhere in this Annual Service Plan Report is consistent with that in the consolidated financial statements. Management maintains systems of internal controls designed to provide reasonable assurance that assets are safeguarded and that reliable financial information is available on a timely basis. These systems include formal written policies and procedures, careful selection and training of qualified personnel and appropriate delegation of authority and segregation of responsibilities within the organization. An internal audit function independently evaluates the effectiveness of these internal controls on an ongoing basis and reports its findings to management and the Audit & Finance Committee. The consolidated financial statements have been examined by independent external auditors. The external auditors’ responsibility is to express their opinion on whether the consolidated financial statements, in all material respects, fairly present BC Hydro’s financial position, comprehensive income and cash flows in accordance with International Financial Reporting Standards. The Independent Auditors’ Report, which follows, outlines the scope of their examination and their opinion. The Board of Directors, through the Audit & Finance Committee, is responsible for ensuring that management fulfills its responsibility for financial reporting and internal controls. The Audit & Finance Committee, comprised of directors who are not employees, meets regularly with the external auditors, the internal auditors and management to satisfy itself that each group has properly discharged its responsibility to review the financial statements before recommending approval by the Board of Directors. The Audit & Finance Committee also recommends the appointment of external auditors to the Board of Directors. The internal and external auditors have full and open access to the Audit & Finance Committee, with and without the presence of management. Chris O’Riley David Wong President and Chief Operating Officer Executive Vice President, Finance, Technology, Supply Chain and Chief Financial Officer Vancouver, Canada June 12, 2019 4 British Columbia Hydro and Power Authority KPMG LLP PO Box 10426 777 Dunsmuir Street Vancouver BC V7Y 1K3 Canada Telephone (604) 691-3000 Fax (604) 691-3031 INDEPENDENT AUDITORS’ REPORT To the Minister of Energy, Mines and Petroleum Resources, Province of British Columbia and the Board of Directors of British Columbia Hydro and Power Authority: Opinion We have audited the consolidated financial statements of British Columbia Hydro and Power Authority (the “Entity”), which comprise: — the consolidated statements of financial position as at March 31, 2019, March 31, 2018 and April 1, 2017 — the consolidated statements of comprehensive income (loss) for the years ended March 31, 2019 and March 31, 2018 — the consolidated statements of changes in equity for the years ended March 31, 2019 and March 31, 2018 — the consolidated statements of cash flows for the years ended March 31, 2019 and March 31, 2018 — and notes to the consolidated financial statements, including a summary of significant accounting policies (Hereinafter referred to as the “financial statements”). In our opinion, the accompanying financial statements present fairly, in all material respects, the consolidated financial position of the Entity as at March 31, 2019, March 31, 2018 and April 1, 2017 and its consolidated financial performance and its consolidated cash flows for the years ended March 31, 2019 and March 31, 2018 in accordance with International Financial Reporting Standards (“IFRS”). Basis for Opinion We conducted our audit in accordance with Canadian generally accepted auditing standards. Our responsibilities under those standards are further described in the “Auditors’ Responsibilities for the Audit of the Financial Statements” section of our auditors’ report. We are independent of the Entity in accordance with the ethical requirements that are relevant to our audit of the financial statements in Canada and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. 5 British Columbia Hydro and Power Authority Other Information Management is responsible for the other information. Other information comprises: — the information, other than the financial statements and the auditors’ report thereon, included in the Entity’s Management Discussion & Analysis. Our opinion on the financial statements does not cover the other information and we do not and will not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other information identified above and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit and remain alert for indications that the other information appears to be materially misstated. We obtained the information, other than the financial statements and the auditors’ report thereon, included in Entity’s Management Discussion & Analysis as at the date of this auditors’ report. If, based on the work we have performed on this other information, we conclude that there is a material misstatement of this other information, we are required to report that fact in the auditors’ report. We have nothing to report in this regard. Responsibilities of Management and Those Charged with Governance for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with IFRS, 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. In preparing the financial statements, management is responsible for assessing the Entity’s ability to continue as a going concern, disclosing as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Entity or to cease operations, or has no realistic alternative but to do so. Those charged with governance are responsible for overseeing the Entity’s financial reporting process. Auditors’ Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Canadian generally accepted auditing standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the financial statements. As part of an audit in accordance with Canadian generally accepted auditing standards, we exercise professional judgment