City of Burnaby British Columbia, Canada 2019 STATEMENT OF FINANCIAL INFORMATION FOR THE FISCAL YEAR ENDED DECEMBER 31, 2019 Contents Statement of Financial Information Approval .................................................................................. 3 Management Report ....................................................................................................................... 4 Audit Committee ............................................................................................................................. 5 Independent Auditors’ Report ......................................................................................................... 6 Consolidated Financial Statements and Notes ............................................................................. 10 Schedule of Debts ........................................................................................................................ 33 Schedule of Guarantee and Indemnity Agreements ..................................................................... 33 Schedule of Remuneration and Expenses.................................................................................... 34 Mayor and Council ................................................................................................................. 35 Employees ............................................................................................................................. 36 Schedule of Severance Agreements ...................................................................................... 57 Schedule of Suppliers of Goods and Services .............................................................................. 58 Schedule of Grants or Contributions ............................................................................................. 68 STATEMENT OF FINANCIAL INFORMATION APPROVAL For the year ended December 31, 2019 The undersigned, as authorized by the Financial Information Regulation, Schedule 1, subsection 9(2), approves all the statements and schedules included in this Statement of Financial Information, produced under the Financial Information Act. _____________________________ Noreen Kassam, CPA, CGA Director Finance July 13, 2020 ______________________________ Mayor Mike Hurley Chair Audit Committee July 13, 2020 Statement of Financial Information Approval Statement of Financial Information | 3 MANAGEMENT REPORT For the year ended December 31, 2019 The Financial Statements contained in this Statement of Financial Information have been prepared by management in accordance with Canadian public sector accounting standards. Management is responsible for the preparation and fair presentation of the consolidated financial statements, and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements. Management is also responsible for the preparation of the Statement of Financial Information and ensuring this information is consistent with the financial statements. The Audit Committee is to assist the City Council in fulfilling its oversight responsibilities and as representatives of Burnaby residents, to enhance accountability of City staff. The Audit Committee’s oversight responsibilities include reviewing the audited financial statements and other financial information, the audit process and compliance of financial internal controls. The City’s external auditors, KPMG LLP, conduct an independent examination, in accordance with generally accepted auditing standards, and express their opinion on the financial statements. Their examination does not relate to the other schedules and statements required by the Financial Information Act. Their examination includes a review and evaluation of the City’s system of internal controls and appropriate tests and procedures to provide reasonable assurance that the financial statements are presented fairly. On behalf of the City of Burnaby, __________________________ Noreen Kassam, CPA, CGA Director Finance July 13, 2020 Management Report Statement of Financial Information | 4 AUDIT COMMITTEE The Audit Committee was appointed to assist the City Council in fulfilling its oversight responsibilities and as representatives of Burnaby residents, to enhance accountability of the City staff. One of the key roles of the Committee is to review the audited financial statements and present them to City Council. Mayor Councillor Mike Hurley (Chair) Sav Dhaliwal (Vice Chair) Councillor Councillor Pietro Calendino Paul McDonell Councillor Joe Keithley Audit Committee Statement of Financial Information | 5 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 Mayor and Council of the City of Burnaby Opinion We have audited the consolidated financial statements of the City of Burnaby (the “City”), which comprise: the consolidated statement of financial position as at December 31, 2019; the consolidated statement of operations and accumulated surplus for the year then ended; the consolidated statement of changes in net financial assets for the year then ended; the consolidated statement of cash flows for the year then ended; and notes and schedule 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 City as at December 31, 2019, and its consolidated results of operations, its consolidated changes in net financial assets and its consolidated cash flows for the year then ended in accordance with Canadian public sector accounting standards. 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 City 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. KPMG LLP is a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. KPMG Canada provides services to KPMG LLP. Independent Auditors' Report Statement of Financial Information | 6 City of Burnaby Page 2 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 2019 Annual Municipal Report. 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 the 2019 Annual Municipal Report 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 Canadian public sector accounting standards, 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 City’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 City or to cease operations, or has no realistic alternative but to do so. Those charged with governance are responsible for overseeing the City’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. Independent Auditors' Report Statement of Financial Information | 7 City of Burnaby Page 3 Misstatements can arise from fraud or error and are considered