98 City of Chilliwack CHILLIWACK ECONOMIC PARTNERS CORPORATION (CEPCO) STATEMENT OF CASH FLOWS Year Ended December 31, 2022 CHILLIWACK ECONOMIC PARTNERS CORPORATION Statement of Cash Flows Year ended December 31, 2022, with comparative information for 2021 2022 2021 Cash provided by (used in): Operating activities: Annual surplus (deficit) $ 517,472 $ (114,880) Items not involving cash: Amortization of tangible capital assets 165,297 159,479 Distribution to City of Chilliwack - 423,168 682,769 467,767 Changes in non-cash operating working capital: Accounts receivable (145,303) 56,850 Prepaid expenses 49,094 38,422 Accounts payable and accrued liabilities 102,412 (3,455) Unearned revenue 107,168 (344,905) 796,140 214,679 Capital activities: Acquisition of tangible capital assets (11,333) (6,480) Acquisition of property under development (744,591) (5,079,481) (755,924) (5,085,961) Investing activities: Decrease in investments 539,371 3,391,537 Change in cash 579,587 (1,479,745) Cash, beginning of year 224,196 1,703,941 Cash, end of year $ 803,783 $ 224,196 See accompanying notes to financial statements. CHILLIWACK ECONOMIC PARTNERS CORPORATION (CEPCO) NOTES TO FINANCIAL STATEMENTS Year Ended December 31, 2022 CHILLIWACK ECONOMIC PARTNERS CORPORATION Notes to Financial Statements Year ended December 31, 2022 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. Government grants are recognized when they are approved by senior governments and conditions required to earn the grants have been completed. Contributions restricted for the purchase of capital assets are deferred and amortized into revenue on the basis corresponding with the amortization rate for the related capital assets. 5 Annual Report 2022 99
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