2018 Audited Financial Statements Exhibition Place
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Board of Governors of Exhibition Place Financial Statements December 31, 2018 pwc Independent auditor's report To the Members of Board of Governors of Exhibition Place Ollt opinion In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of Board of Governors o_f Exhibition Place (the Board) as at December 31, 2018 and the results of its operations and its cash flows for the year then ended in accordance with Canadian public sector accounting standards. What we have audited The Board's financial statements comprise: • the balance sheet as at December 31, 2018; • the statement of operations and accumulated deficit for the year then ended; • the statement of changes in net debt; • the statement of cash flows for the year then ended; and • the notes to the financial statements, which include a summa1y of significant accounting policies. Basis for opinion We conducted our audit in accordance with Canadian generally accepted auditing standards. Our responsibilities under those standards are fmther described in the Auditor's responsibilities for the audit of the.financial statements section of our report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Independence We are independent of the Board in accordance with the ethical requirements that are relevant to our audit of the financial statements in Canada. We have fulfilled our other ethical responsibilities in accordance with these requirements. Responsibilities of management and those charged with governmicejo,· thefincmcial statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with Canadian public sector accounting standards, and for such internal control as management determines is necessa1y to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. PricewaterhouseCoopers LLP PwC Tower, 18 York Street, Suite 2600, Toronto, Ontario, Canada M5J 0B2 T: +1 416 863 1133, F: +1416365 8215 "PwC' refers lo Pricewate rhouseCoopers LLP, an Ontario limited liability partnership. p-wc In preparing the financial statements, management is responsible for assessing the Board'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 Board or to cease operations, or has no realistic alternative but to do so. Those charged with governance are responsible for overseeing the Board's financial repmting process. Audito,.'s J'esponsibilities for the alldit of the financial statemen.ts 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 auditor's 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 these financial statements. · As pa1t of an audit in accordance with Canadian generally accepted auditing standards, we exercise professional judgment and maintain professional skepticism throughout the audit. We also: • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and pelform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material m.isstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Board's internal control. • Evaluate the appropriateness of accounting policies used an.d the reasonableness of accounting estimates and related disclosures made by management. • Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material unce1tainty exists related to events or conditions that may cast significant doubt on the Board's ability to continue as a going concern. If we conclude that a material unce1tainty exists, we are required to draw attention in our auditor's repo1t to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's repmt. However, future events or conditions may cause the Board to cease to continue as a going concern. • Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. pwc We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. Cha1tered Professional Accountants, Licensed Public Accountants Toronto, Ontario June 14, 2019 Board of Governors of Exhibition Place Balance Sheet As at December 31, 2018 2018 2017 $ $ Financial Assets Cash ·4,504,663 6,359,347 Accounts receivable Trade 7,539,712 7,067,829 City of Toronto . 3,668,519 4;025;179 Receivable from the City of Toronto (note 3(a)) 7,020,947 6,990, 148 22,733,841 24,442,503 . Liabilities Accounts payable and accrued liabilities Trade 8,975,932 9,359,420 City of Toronto .493,361 2,184,418 Employee future benefits payable (note 7) 8,032,360 8, 165,625 Payable surplus to City of Toronto (note 9) 2,221,437 2,240,682 Deferred revenue and contributions 6,866, 111 6,052,248 Loans payable (note 8) 41,645,543 43,342,982 Other liabilities 75,305 158,505 Government assistance 837,228 958,250 69,147,277 72,462, 130 Net debt (46,413,436) (48,019,627) Non-financial Assets Prepaid expenses and other 414,795 50,256 Step-up rent receivable (note 4) 2,312,021 2,505,062 Energy retrofit assets (note 5) 9,253,700 10, 118,423 Building .improvements and equipment (note 6) 25,063,391 27,038,687 37,043,907 39,712,428 Accumulated conference centre defici_t (note 11) (9,369,529) (8,307, 199) Contingencies and commitments (note 12) Approved by the Board of Governors ----- - -------~---Director _____--,- _________ Director The accompanying notes are an integral pait of these financial statements. Board of Governors of Exhibition Place Statement of Operations and Accumulated Deficit For the year ended December 31, 2018 2018 2017 Budget Actual Actual $ $ $ Revenue Exhibition Place (schedule 1) 29,315,112 31,598,499 30,399,643 Enercare Centre (schedule 2) 15,488,787 14,417,503 14,573,220 Beanfield Centre (schedule 3) 5,790,935 5,738,465 6,043,263 50,594,834 51,754,467 51,016, 126 Expenses (note 13) Exhibition Place (schedule 1) 35,347,483 35,395,768 33,793,232 Enercare Centre (schedule 2) 9,011 ,801 8, 198,543 8,652,9.10 Beanfield Centre (schedule 3) 6,085,550 7,071 ,848 7,499, 150 50,444,834 50,626 159 49,945,292 Surplus before the following 150,000 1, 128,308 1,070,834 Transfer to the City of Toronto (150,000) (2,221,437) (2 ,240,682) Increase in amounts to be recovered from the City of Toronto 30,799 68,441 Deficit for the year (1 ,062,330) (1, 101,407) Accumulated conference centre deficit - Beginning of year (8,307,199} . (7,205,792} Accumulated conference centre deficit - End of year (9,369,529l (8,307,199l The accompanying notes are an integral pa1t of these financial statements. Board of Governors of Exhibition Place Statement of Changes in Net Debt For the year ended December 31, 2018 201 8 2017 $ $ Operating transactions Deficit for the year (1,062,330} (1,101,407} Tangible capital asset activities Amortization of energy retrofit.assets 864,723 864,723 Amortization of building improvements and equipment 1,975,296 1,975,296 2:840 019 2,840,019 Other non-financial activities Prepaid expenses and other (364,539) 25,949 Accretion of step-up rent receivable 193,041 98, 137 {171,498} 124,086 Decrease in net debt during the year 1,606, 191 1,862,698 Net debt - Beginning of year {48,019,627} · {49,882,325} Net debt - End of year {46,413,436l {48.019.62n The accompanying notes are an integral pa1t of these financial statements: Board of Governors of Exhibition Place Statement of Cash Flows For the year ended December 31, 2018 2018 2017 $ $ Cash provided by (used in) Operating activities Deficit for the year (1,062,330) (1, 101,407) Add (deduct): Non-ca~h items Employee future benefits expense (133,265) (269,599) Amortization of energy retrofit assets "864,723 864,723 Amortization of building improvements and equipment 1,975,296 1,975,296 Government assistance (121,022) (126,449) Accretion of step-up rent receivable 193,041 98,137 Interest accrued on loans payable