Annual Report 2021 91 90 CHILLIWACK ECONOMIC PARTNERS CORPORATION STATEMENT OF CASH FLOWS Year Ended December 31, 2021 City of Chilliwack CHILLIWACK ECONOMIC PARTNERS CORPORATION Statement of Cash Flows Year ended December 31, 2021, with comparative information for 2020 2021 2020 Cash provided by (used in): Operating activities: Annual surplus (deficit) $ (114,880) $ 395,649 Items not involving cash: Amortization of tangible capital assets 159,479 242,155 Distribution to City of Chilliwack 423,168 - 467,767 637,804 Changes in non-cash operating working capital: Accounts receivable 56,850 (45,661) Prepaid expenses 38,422 56,845 Accounts payable and accrued liabilities (3,455) (38,581) Unearned revenue (344,905) (122,122) 214,679 488,285 Capital activities: Acquisition of tangible capital assets (6,480) (25,216) Acquisition of property under development (5,079,481) - (5,085,961) (25,216) Investing activities: Decrease in investments 3,391,537 591,959 Repayment of financing lease receivable - 419,616 3,391,537 1,011,575 Change in cash (1,479,745) 1,474,644 Cash, beginning of year 1,703,941 229,297 Cash, end of year $ 224,196 $ 1,703,941 See accompanying notes to financial statements. 4 CHILLIWACK ECONOMIC PARTNERS CORPORATION NOTES TO FINANCIAL STATEMENTS Year Ended December 31, 2021 CHILLIWACK ECONOMIC PARTNERS CORPORATION Notes to Financial Statements Year end d December 31, 2021 Basis of presentation: Chilliwack Economic Partners Corporation (the "Corporation") is wholly owned by the City of Chilliwack (the "City") and is responsible for economic development activity within the City's boundaries. 1. Significant accounting policies: These financial statements are prepared in accordance with the CPA Canada Public Sector Accounting Handbook. The Corporation's significant accounting policies are as follows: (a) Investments: Investments are recorded at amortized cost plus accrued interest. If it is determined that there is a permanent impairment in the value of an investment, it is written down to net realizable value. (b) Property under development: Property under development is recorded at the lower of cost and net realizable value and includes direct costs and capitalized interest. (c) Tangible capital assets: Tangible capital assets are recorded at cost. Website costs include hardware and software costs, graphics designs and major enhancements. Website maintenance and ancillary costs are expensed. Amortization commences in the year that the asset is put into use and is provided for using the following methods and annual rates: Asset Basis Rate Buildings Declining balance 4% Computer and office equipment Declining balance 20% - 30% Telecommunication equipment Declining balance 20% Leasehold improvements are amortized on the straight-line basis over the term of the lease plus one renewal period if it is anticipated that the lease will be renewed. Website costs are amortized on the straight-line basis over three years. (d) Revenue recognition: Revenues are recognized on the accrual basis according to the terms of the contractual agreements. (e) Budget figures: Budget figures represent the budget approved by the Board of Directors on December 9, 2020. 5
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