Item - 2021.EP18.1

The Board of Governors of Exhibition Place:

1.  Approved the Draft Audited Financial Statements attached as "Appendix A" to Attachment 1 to the report (June 2, 2021) from the Chief Executive Officer, Exhibition Place - KPMG 2020 Year-End Audit Report to the Board of Governors of Exhibition Place.

2.  Directed the transfer of the 2020 operating surplus of $136,442 to the City of Toronto.

This report presents for the information of the Board, the Draft Audited Financial Statements, Audit Results, and Management Representation Letter for the year ended December 31, 2020. The auditor of record for the Board, KPMG, audits these financial statements in accordance with Canadian public sector accounting standards and summarizes issues of audit significance, and provides the communications required by their professional standards.

The Audit Findings in Appendix C is the section of the audit results where the auditors make their suggestions and recommendations based on audit findings to improve the accounting and internal control procedures. As noted in the attached Audit Findings, during the 2020 audit, the auditors are proposing to issue an unqualified report on the financial statements and have no significant internal control recommendations to report on. This report summarizes the auditor’s comments which details can be found in full in the Attachment. A representative of KPMG will be at the Board meeting on June 16, 2021 to respond to any questions of the Auditor.

As reported on the Statement of Operations and Accumulated Deficit, the City subsidized the Board $16,944,015 during 2020 due to the impact of Covid-19. The net results of the Boards operations after City funding is a Transfer surplus of $136,442 back to the City.