City of Surrey's Annual Financial Report 2020

NOTESTOTHE CONSOLIDATED CITY OF SURREY  FINANCIAL STATEMENTS

For the year ended December 31, 2020 [tabular amounts in thousands of dollars]

1. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

b) Basis of consolidation (continued)

iv) Surrey City Development Corporation The consolidated financial statements reflect the assets, liabilities, revenues and expenses of SCDC. SCDC has the following wholly owned subsidiaries and government partnerships, which are accounted for as follows:

1) Grove Limited Partnership and Grove (G.P.) Inc. - (50% owned and proportionately consolidated)

2) Surrey City Investment (Industrial) Corporation (“SCIIC”) - (100% owned and fully consolidated)

SCIIC has a 50% ownership in the Beedie SCDC (34A Ave) Limited Partnership (“Beedie LP”). Beedie LP meets the criteria of a government business partnership and is accounted for using the modified equity method. SCIIC has a 50% ownership in the Beedie SCDC (34A Ave) G.P. Ltd., the General Partner of Beedie LP. Beedie GP is a corporation and is accounted for using the modified equity method.

3) Surrey City Investment Corporation (“SCIC”) – (100% owned and fully consolidated) SCIC was inactive as at December 31, 2020 and December 31, 2019. 4) Kwantlen Park Development Corporation (“KPDC”) - (100% owned and fully consolidated) KPDC was inactive as at December 31, 2020 and December 31, 2019.

v) Surrey Homelessness and Housing Society In 2007, the City of Surrey incorporated the SHHS. The purposes of the Society are to raise funds for financing programs and projects that address homelessness in Surrey. The City is considered to have control over the Society’s functions by virtue of the ability to appoint the society’s board members; therefore, the Society’s financial information is fully consolidated within the City’s financial statements. The consolidated financial statements include the assets, liabilities, revenues, and expenses of SHHS. The City provided initial funding to the SHHS and oversees its operations through the council appointed board. vi) Innovation Boulevard Corporation The City of Surrey and Simon Fraser University (“SFU”) incorporated the Innovation Boulevard Corporation (“IBC”), a government partnership. SFU and the City are the only shareholders of IBC with each having a 50% interest and is proportionately consolidated. On January 30, 2020, IBC along with its subsidiary, Innovation Boulevard Society, ceased operations. The dissolution of these entities is expected during 2021 with no material financial impact to the City.

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