Appendix F:

THE BOARD OF MANAGEMENT FOR THECOLLEGE PROMENADE

BUSINESS IMPROVEMENT AREA

Financial StatementsFor the Year Ended December 31, 2015

0

COLLEGE PROMENADEBUSINESS IMPROVEMENT AREA

DECEMBER 31, 2015

CONTENTS

Pafle

Independent auditor’s report 3

Financial statements

Statement of financial position 4

Statement of operations and Accumulated Surplus 5 CDStatement of changes in net financial assets 6

Statement of cash flows 7

Notes to financial statements 8 — 11

0

2

RAFIQ DOSANI, B.Comm. CPA, CA 90 Risebrough AvenueCKARTERED ACCOUNTANT Toronto, Ontario M2M 2E3

Telephone: (416) 221 - 4095

_____________________

Fax: (416)221 —4160

INDEPENDENT AUDITOR’S REPORT

To the Council of the Corporation of the City of Torontoand theBoard of Management for the college Promenade Business Improvement Area

I have audited the accompanying financial statements of College Promenade Business Improvement Area,which comprise the statement of financial position as at December 31, 2015 and the statement ofoperations and accumulated surplus, statement of changes in net financial assets and statement of cashflows for the year then ended, and the related notes hich comprises a summary of significant accountingpolicies and other explanatory information.

Management’s responsibility for the financial statementsManagement is responsible for the preparation and fair presentation of these financial statements inaccordance with Canadian accounting standards for local governments as prescribed by the Public SectorAccounting Board (PSAB) and for such internal control as management determines is necessary to enablethe preparation of financial statements that are free from material misstatement, whether due to fraud orerror.

Auditor’s ResponsibilityMy responsibility is to express an opinion on these financial statements based on my audit. I conductedmy audit in accordance with Canadian generally accepted auditing standards. Those standards requirethat I comply with ethical requirements and plan and perform the audit to obtain reasonable assurancevhether the financial statements are free of material misstatement.

An audit inolves performing procedures to obtain audit evidence about the amounts and disclosures inthe financial statements. The procedures selected depend on the auditor’s judgment, including theassessment of the risks of material misstatement of the financial statements, hether due to fraud or error.In making those risk assessments, the auditor considers internal control relevant to the entity’s preparationand fair presentation of the financial statements in order to design audit procedures that are appropriate inthe circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’sinternal control. An audit also includes evaluating the appropriateness of accounting policies used and thereasonableness of accounting estimates made by management, as well as evaluating the overallpresentation of the financial statements.

I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for myaudit opinion.

OpinionIn my opinion, these tinancial statements present fairly in all material respects, the financial position ofthe College Promenade Business Improsement Area as at December 31, 2015 and the results of itsoperations and cash flows fOr the year then ended in accordance s ith Canadian accounting standards forlocal governments as prescribed by the Public Sector Accounting Board (PSA

/ / /

Toronto, Ontari.o Chartered rofessiona1 AccountantJune 9, 2016 Licensed Public Accountant

3

THE BOARD OF MANAGEMENT FOR ThECOLLEGE PROMENADE BUSINESS IMPROVEMENT AREASTATEMENT OF FIN*tdcIAL POSITIONASATDECEMSER3t, 2015

FTNANcIAI ASSETSCash and short-term investmentsAccounts receivable

City of Toronto — special charges (Note 3)Other

LIABILITIESAccounts payable and accrued liabilities

City of TorontoOther

NET FINANCIAL ASSETS

NON-FINANCIAL ASSETSTangible Capital Assets (Note 4)ACCUMULATED SuRPLuS

-i c s

2015 2014$ $

573,226

6,9814,026

584233

476,469

6,8192,619

485.907

140,895 6,8851,781 1,731

142,876 8,616

441,557 477,291

155,369 62,023596,928 539,314

0

0

0

on behalf of the Boani fManagement

Treasurer

RAFIQ DOSANI, B.Comm. CPA, CA 90 Risebrough AvenueCHARTERED ACCOUNTANT Toronto, Ontario M2M 2E3

Telephone: (416) 221 - 4095Fax: (416) 221 —4160

INDEPENDENT AUDITOR’S REPORT

To the Council of the Corporation of the City of Toronto and theBoard of Management for the college Promenade Business Improvement Area

I have audited the accompanying fmancial statements of College Promenade Business Improvement Area,which comprise the statement of financial position as at December 31, 2015 and the statement ofoperations and accumulated surplus, statement of changes in net financial assets and statement of cashflows for the year then ended, and the related notes which comprises a summary of significant accountingpolicies and other explanatory information.

Management’s responsibffity for the financial statementsManagement is responsible for the preparation and fair presentation of these financial statements inaccordance with Canadian accounting standards for local governments as prescribed by the Public SectorAccounting Board (PSAB) and for such internal control as management determines is necessary to enablethe preparation of financial statements that are free from material misstatement, whether due to fraud orerror.

Auditor’s ResponsibifityMy responsibility is to express ari opinion on these fmanial statements based on my audif I conductedmy audit in accordance with Canadian generally accepted auditing standards. Those standards requirethat I comply with ethical requirements and plan and perform the audit to obtain reasonable assurancewhether the financial statements are free of material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures inthe financial statements. The procedures selected depend on the auditor’s judgment, including theassessment of the risks of material misstatement of the financial statements, whether due to fraud or error.In making those risk assessments, the auditor considers internal control relevant to the entity’s preparationand fair presentation of the financial statements in order to design audit procedures that are appropriate inthe circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’sinternal control. An audit also includes evaluating the appropriateness of accounting policies used and thereasonableness of accounting estimates made by management, as well as evaluating the overallpresentation of the financial statements.

I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for myaudit opinion.

OpinionIn my opinion, these financial statements present fairly in all material respects, the financial position ofthe College Promenade Business Improvement Area as at December 31, 2015 and the results of itsoperations and cash flows for the year then ended in accordance with Canadian accounting standards forlocal governments as prescribed by the Public Sector Accounting Board (PSAB)

Toronto, Ontario Chartered Professional AccountantJune 20, 2016 Licensed Public Accountant

3

THE BOARD OF MANAGEMENT FOR THE

COLLEGE PROMENADE BUSINESS IMPROVEMENT AREA

STATEMENT OF FINANCIAL PosITION

AS AT DECEMBER 31, 2015

2015 2014$ $

FINANCIAL ASSETS

Cash and short-term investments

Accounts receivable

City of Toronto — special charges (Note 3)

Other

_______ _______

LIABILITIES

Accounts payable and accrued liabilitiesCity of Toronto

Other

________________________

NET FINANCIAL ASSETS

NON-FINANCIAL ASSETS

Tangible Capital Assets (Note 4)

_________________________

ACCUMULATED SURPLUS

573,226

6,9814,026

584,233

476,469

6,8192,619

485,907

140,895 6,8851,781 1,731

142,676 8,616

441,557 477,291

155,369 62,023596,926 539,314

Approved on behalf of the Board of Management:

0

0Chair Treasurer

THE BOARD OF MANAGEMENT FOR THECOLLEGE PROMENADE BUSINESS IMPROVEMENT AREASTATEMENT OF OPERATIONS AND ACCUMULATED SURPLUSFOR THE YEAR ENDED DECEMBER 31, 2015

EXPENSES

AdministrationPromotion and advertisingMaintenanceCapital (Note 7)AmortizationProvision for uncollected special charges (Note 3)

SURPLUS (DEFICIT) FOR THE YEAR

ACCUMULATED SURPLUS, BEGINNING OF YEAR

ACCUMULATED SURPLUS, END OF YEAR

2015 2015 2014$

Budget(Note 9)

REVENUE

City of Toronto — special chargesInterest and other

$ $Actual Actual

137,412 138,648 125,5504,515 3,795 5,474

141.927 142,443 131,024

4,962 9,155 6,4041,000 289 -

13,500 5,263 4,846118,977 - 26,283

- 65,544 93,447• 3,488 4,580 5,147

141,927 84,831 136,127

- 57,612 (5,103)

539,314 539,314 544,417

539,314 596,926 539,314

5

THE BOARD OF MANAGEMENT FOR THECOLLEGE PROMENADE BUSINESS IMPROVEMENT AREASTATEMENT OF CHANGES IN NET FINANCIAL ASSETSFOR THE YEAR ENDED DECEMBER31, 2015

2015 2014$ $

Surplus (deficit) for the year 57,612 (5,103)

Acquisition of tangible capital assets (158,890) (4,525)

Amortization of tangible capital assets 65,544 93,447

(35,734) 83,819

Balance - Beginning of year 477,291 393,472

Balance - End of year 441,557 477,291

0

6

THE BOARD OF MANAGEMENT FOR THECOLLEGE PROMENADE BUSINESS IMPROVEMENT AREASTATEMENT OF CASH FLOWSFOR THE YEAR ENDED DECEMBER31, 2015

Cash flows from operating activitiesSurplus (deficit) for the year

Non-cash changes to operationsAdd: Non-cash item Amortization of capital assetsIncrease (decrease) resulting from changes in

Accounts receivable - City of TorontoAccounts receivable — otherAccounts payable - City of TorontoAccounts payable — other

Cash Provided By Operations

Investing ActivitiesPurchase of tangible capital assets

Cash and short-term investments, Beginning Of Year

Cash and short-term investments, End Of Year

2015$

57,612

65,544

(162)(1,407)

134,010

2014$

(5,103)

93,447

1,3651,154

(6,135)17050

255,647 84,898

(158,890) (4,525)

476,469 396,096

573,226 476,469

7

THE BOARD OF MANAGEMENT FOR THECOLLEGE PROMENADE BUSINESS IMPROVEMENT AREANOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED DECEMBER31, 2015

1. ESTABLISHMENT AND OPERATIONS

The College Promenade Business Improvement Area (BIA) is established as aBusiness Improvement Area under the. management and. control of a Board ofManagement appointed by Council of the City of Toronto.

The Board is entrusted with the improvements, beautification and maintenance ofmunicipally owned lands, buildings and structures in the area, together with thepromotion of the area as a business or shopping area. Funding is provided byproperty owners of the BIA who are levied a special charge based on an annualoperating budget prepared by the Board and approved by Council under Section220(17) of the Municipal Act, as amended.

2. SIGNIFICANT ACCOUNTING POLICIES

These financial statements are the representation of management and havebeen prepared in accordance with Canadian accounting standards for localgovernments as prescribed by the Public Sector Accounting Board (PSAB), themost significant of which are as follows:

Revenue recognition:The BIA receives special charges from its members which are levied andcollected by the City of Toronto. It also receives cash donations andsponsorships from corporate and private donors and grants from local, provincialand federal governments for events and festivals. Revenue is being recordedupon the signing of contracts and when collection can be reasonablyascertained.

Capital assets:Purchased capital assets are recorded at cost. Amortization is calculated on astraight-line basis over the estimated useful lives of the assets as follows:

Street & Christmas lights 5 yearsPlanters 5 yearsStreet Signs 5 years

Contributed services:Services provided without charge by the City of Toronto and others are notrecorded in these financial statements.

Financial instruments:Financial instruments are recorded at the approximated fair value.

8

THE BOARD OF MANAGEMENT FOR THECOLLEGE PROMENADE BUSINESS IMPROVEMENT AREANOTES TO THE FINANCIAL STATEMENTS, CONT’D

FOR THE YEAR ENDED DECEMBER 31, 2015

SIGNIFICANT ACCOUNTING POLICIES (CONT’ D)

Use of estimates:The preparation of these financial statements in accordance with PSAB requiresmanagement to make estimates and assumptions that affect the reportedamounts of assets and liabilities and the disclosure of contingent assets andliabilities at the date of the financial statements and the reported amounts ofrevenue and expenses during the reporting period. Significant estimates includedetermining the useful lives of tangible capital assets for amortization, theallowance for uncollectible levies and accounts receivable and contingentliabilities. Actual results could differ from management’s best estimates, asadditional information becomes available in the future.

3. CITY OF TORONTO — SPECIAL CHARGES

Special charges levied by the City are collected and remitted to the Board by theCity. The total special charges outstanding consist of amounts collected by theCity not yet remitted to the Board and amounts uncollected by the City.

The Board records special charges receivable net of an allowance foruncollected amounts. The special charges receivable from the City of Torontoare comprised of:

2015 2014$ $

Total special charges outstanding 9,681 9,819Less: allowance for uncollected specialcharges (2,700) (3,000)Special charges receivable 6,981 6,819

The provision for uncollected levies reported on the Statement of Operations andAccumulated Surplus comprises:

2015 2014$ $

Special charges written-off 4,880 3,647Change in provision for losses on assessmentappeals (300) 1,500

4,580 5,147

9

THE BOARD OF MANAGEMENT FOR THECOLLEGE PROMENADE BUSiNESS IMPROVEMENT AREANOTES TO THE FINANCIAL STATEMENTS, CONT’DFOR THE YEAR ENDED DECEMBER 31, 2015

4. CAPITAL ASSETS

2015

Lights Total

0

0

CostBeginning 507,284 507,284Additions 158,890 158,890Disposals - -

Ending 666,174 666,174

Accumulated AmortizationBeginning 445,261 445,261Amortization 65,544 65,544Disposals - -

Ending 510,805 510,805

Net Book Value 155,369 155,369

2014

Lights Total

CostBeginning 502,759 502,759Additions 4,525 4,525Disposals - -

Ending 507,284 507,284

Accumulated AmortizationBeginning 351,814 351,814Amortization 93,447 93,447Disposals - -

Ending 445,261 445,261

Net Book Value 62,023 62,023

10

a

THE BOARD OF MANAGEMENT FOR THECOLLEGE PROMENADE BUSINESS IMPROVEMENT AREANOTES TO THE FINANCIAL STATEMENTS, CONT’DFOR THE YEAR ENDED DECEMBER31, 2015

5. INSURANCE

The Board is required to deposit with the Treasurer, City of Toronto, insurancepolicies indemnifying the City against public liability and property damage inrespect of the activities of the Board. Insurance coverage providing $5,000,000for each occurrence or accident has been obtained by the Board through the Cityof Toronto.

6. FINANCIAL INSTRUMENTS

The carrying value of the BIA’s financial instruments approximates their values.The BIA is subject to an interest rate risk with respect to its investments;however, as these instruments are short-term investments the risk is minimal.

7. CAPITAL EXPENSES

In order to finance major capital expenses the BIA annually budgets certainamounts and accumulates them as surplus. Once adequate funds haveaccumulated, the BIA undertakes cost-shared capital improvement projects withthe City. For this reason the actual expenses in a given year could significantlydiffer from the amount budgeted for the year. Any excess actual capital expensesare financed out of the accumulated surplus.

8. COMMITMENTS

The Board, in co-operation with the City, has implemented cost-shared capitalimprovement projects on publicly owned property for several years. The projectsare long-term in nature and are usually completed subsequent to the year ofCouncil’s approval. The Board is committed to capital improvement projects ofwhich the Board’s share of $13,118 (2014 - $397,131) was outstanding as atDecember 31, 2015.

9. BUDGET

Budget Figures are provided for comparative purposes only and have not beensubject to audit procedures.

11

00

0