Draft Financial Statements and Audit Results for the Year Ended December 31, 2025

Audit Findings Report (Attachment 3). The Management Representation Letter (Attachment 2) provides formal written assertions from management to the auditors. These assertions confirm the accuracy and completeness of the financial statements and disclosures provided during the audit. This letter also includes two (2) uncorrected misstatement identified by the auditors, which management has agreed with. One is a balance sheet reclassification and the other is a non-cash transaction to reflect PSAS government assistance. These entries do not impact the income statement. The Audit Findings Report (Attachment 3) presents the auditors' suggestions and recommendations based on their findings, aimed at enhancing our accounting and internal control procedures. As detailed in Attachments, the auditors have issued an unqualified opinion on the financial statements for the 2025 audit, indicating no significant internal control issues. A representative of KPMG will attend the Board meeting on June 18, 2026, to respond to any questions from the Board. As reported on the Statement of Operations and Accumulated Deficit, the Transfer Payable before Budget Deficit Subsidy funding from the City is $2.088 million. The Board's 2025 Operating Budget Deficit Subsidy funding was $0.450 million which was received from the City. Overall, therefore, Exhibition Place will have a Transfer Payable of $2.538 million to the City.

4. Recommend that City Council receive for information the Exhibition Place 2025 Draft Financial Statements and Audit Results.