Item - 2023.EP4.11

The Board of Governors of Exhibition Place:

1.  Approved the KPMG Draft Audit Report and Financial Statements attached as Appendix A to the report  (May 25, 2023) from the Chief Executive Officer, Exhibition Place.

2.  Directed the transfer of the 2022 operating surplus of $4,113,391 to the City of Toronto.

This report presents for the information of the Board, the KPMG Draft Audit Report and Financial Statements (Appendix A), Management Representation Letter (Appendix B) and KPMG Audit Findings Report (Appendix C) for the year ended December 31, 2022. 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 (Appendix C), during the 2022 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.

A representative of KPMG will be at the Board meeting on June 8, 2023, to respond to any questions of the Auditor.

As reported on the Statement of Operations and Accumulated Deficit, the Deficit before City funding is ($1,218,427). Due to the cash impact of Covid-19 the City advanced the Board $4,900,000 to meet its operating needs resulting in a Transfer Surplus of $4,113,291 back to the City.