Annual Report 2021 105 104 City of Chilliwack Page 3 We also: Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform 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 misstatement 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 Company's internal control. Evaluate the appropriateness of accounting policies used and 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 uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors’ report 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 auditors’ report. However, future events or conditions may cause the Company 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. 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. Chartered Professional Accountants Chilliwack, Canada March 15, 2022 1 TOURISM CHILLIWACK INC. CONSOLIDATED STATEMENT OF FINANCIAL POSITION Year Ended December 31, 2021 TOURISM CHILLIWACK INC. Consolidated Statement of Financial Position December 31, 2021, with comparative information for 2020 2021 2020 Financial assets: Cash and cash equivalents $ 2,114,375 $ 941,902 Accounts receivable 341,717 88,490 2,456,092 1,030,392 Financial liabilities: Accounts payable and accrued liabilities 356,625 393,376 Due to City of Chilliwack (note 10) 1,200 1,200 Deferred revenue 1,302,137 105,305 1,659,962 499,881 Net financial assets 796,130 530,511 Non-financial assets: Inventories (note 2) 32,824 31,715 Prepaid expenses and deposits 21,850 6,496 Tangible capital assets (note 3) 17,026 27,805 Goodwill 6,120 6,120 77,820 72,136 Contingency (note 9) Accumulated surplus $ 873,950 $ 602,647 Represented by: Share capital (note 4) $ 1 $ 1 Unrestricted equity 856,923 574,841 Equity in tangible capital assets 17,026 27,805 $ 873,950 $ 602,647 See accompanying notes to financial statements. Director Director 1
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