Kingston Economic Development Corporation

Financial Statements

Year Ended December 31, 2019

Independent Auditors’ Report ............................................................................ 1 

Statement of Financial Position ......................................................................... 4 
Statement of Operations ................................................................................... 5 
Statement of Changes in Fund Balances ......................................................... 6 
Statement of Cash Flows .................................................................................. 7 
Notes to Financial Statements ........................................................................... 8 
KPMG LLP
863 Princess Street, Suite 400
Kingston ON K7L 5N4
Canada
Telephone 613-549-1550
Fax 613-549-6349

INDEPENDENT AUDITORS' REPORT

To the Board of Directors of Kingston Economic Development Corporation
Opinion
We have audited the financial statements of Kingston Economic Development Corporation
(the Entity), which comprise:
 the statement of financial position as at December 31, 2019
 the statement of operations for the year then ended
 the statement of changes in fund balances for the year then ended
 the statement of cash flows for the year then ended

 and notes to the financial statements, including a summary of significant accounting

policies (hereinafter referred to as the ''financial statements'').
In our opinion, the accompanying financial statements present fairly, in all material respects,
the financial position of the Entity as at December 31, 2019, and its results of operations
and its cash flows year then ended in accordance with Canadian accounting standards for
not-for-profit organizations.
Basis for Opinion
We conducted our audit in accordance with Canadian generally accepted auditing
standards. Our responsibilities under those standards are further described in the
''Auditors' Responsibilities for the Audit of the Financial Statements'' section of our
auditors' report.
We are independent of the Entity in accordance with the ethical requirements that are
relevant to our audit of the financial statements in Canada and we have fulfilled our other
ethical responsibilities in accordance with these requirements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide
a basis for our opinion.
Responsibilities of Management and Those Charged With
Governance for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial
statements in accordance with Canadian accounting standards for not-for-profit
organizations, and for such internal control as management determines is necessary to
enable the preparation of financial statements that are free from material misstatement.

KPMG LLP is a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms
affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. KPMG Canada provides services to KPMG
LLP.
Page 2

In preparing the financial statements, management is responsible for assessing the Entity's
ability to continue as a going concern, disclosing, as applicable, matters related to going
concern and using the going concern basis of accounting unless management either intends
to liquidate the Entity or to cease operations, or has no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Entity's financial
reporting process.
Auditors' Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements
as a whole are free from material misstatement, whether due to fraud or error, and to issue
an auditors' report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit
conducted in accordance with Canadian generally accepted auditing standards will always
detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually or in
the aggregate, they could reasonably be expected to influence the economic decisions of
users taken on the basis of the financial statements.
As part of an audit in accordance with Canadian generally accepted auditing standards, we
exercise professional judgment and maintain professional skepticism throughout the audit.
We also:
 Identify and assess the risks of material misstatement of the financial statements,
whether due to fraud or error, design and perform audit procedures responsive to those
risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for
our opinion.

The risk of not detecting a material misstatement resulting from fraud is higher than for
one resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control.
 Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the Entity's internal control.
 Evaluate the appropriateness of accounting policies used and the reasonableness of
accounting estimates and related disclosures made by management.
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 Conclude on the appropriateness of management's use of the going concern basis of

accounting and, based on the audit evidence obtained, whether a material uncertainty
exists related to events or conditions that may cast significant doubt on the Entity's
ability to continue as a going concern. If we conclude that a material uncertainty exists,
we are required to draw attention in our auditors' report to the related disclosures in the
financial statements or, if such disclosures are inadequate, to modify our opinion. Our
conclusions are based on the audit evidence obtained up to the date of our auditors'
report. However, future events or conditions may cause the Entity's to cease to continue
as a going concern.
 Evaluate the overall presentation, structure and content of the financial statements,
including the disclosures, and whether the financial statements represent the underlying
transactions and events in a manner that achieves fair presentation
 Communicate with those charged with governance regarding, among other matters, the
planned scope and timing of the audit and significant audit findings, including any
significant deficiencies in internal control that we identify during our audit.

Chartered Professional Accountants, Licensed Public Accountants

Kingston, Canada

April 20, 2020

Kingston Economic Development Corporation
Statement of Financial Position
As at December 31, 2019 with comparative information for 2018
2019 2018
Assets
Current Assets
Cash $ 613,344 $ 691,083
Investments (note 3) 292,263 285,368
Accounts receivable (note 4) 297,541 91,030
Receivable from City of Kingston (note 18) 106,996 113,068
Sales tax recoverable 78,947 26,261
Prepaid expenses and refundable deposits (note 5) 42,289 88,450
1,431,380 1,295,260

Investment in PARTEQ Angel Network (note 6 (a)) 10,000 10,000

Capital Assets (note 7) 139,158 49,409

$1,580,538 $1,354,669
Liabilities
Current Liabilities
Accounts payable and accrued liabilities $ 144,674 $ 203,647
Payable to Tourism Kingston - 105,790
Deferred revenue (note 8) 74,185 113,634
218,859 423,071
Deferred Contributions Related to Capital Assets (note 9) 63,000 6,544
Deferred Lease Inducements (note 1 0 ) - 6,910
281,859 436,525
Fund Balances
Investment in Capital Assets (note 11) 76,158 42,865
Board Restricted (note 6(a)) 10,000 10,000
Other Board Restricted (note 6(b)) 50,000 50,000
Unrestricted 1,162,521 815,279
1,298,679 918,144
$1,580,538 $1,354,669
Commitments (note 15)
Economic Dependence (note 19)
Subsequent events and Contingencies (note 21)
Approved on behalf of the Board:
Member
Member
See accompanying notes to financial statements.

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Kingston Economic Development Corporation
Statement of Operations
Year Ended December 31, 2019
2019 2018
Revenues
Contributions from the Corporation of the
City of Kingston (note 18) $1,461,500 $1,439,820
Provincial government contributions (note 12) 429,518 222,768
Federal government contributions 28,127 51,460
Events and seminars 5,471 4,208
Partnership revenue and corporate investors (note 13) 255,769 156,605
Amortization of deferred contributions (note 9) 13,544 21,205
Interest 18,918 12,502
2,212,847 1,908,568
Expenses
Accounting and legal (notes 15 and 18) 76,334 48,107
Advertising 209,061 175,157
Amortization 26,404 20,332
Bank charges 4,887 5,990
Events and meetings 60,902 79,034
Grant disbursements 229,383 180,247
Information technology support (notes 15 and 18) 21,788 24,435
Insurance 7,447 7,095
Memberships and licenses 29,659 29,621
Office and miscellaneous 13,151 16,703
Professional contractors 240,634 243,793
Professional development 28,982 19,181
Rent (notes 15 and 18) 63,036 66,829
Salaries and benefits 738,898 739,291
Sponsorships and donations 59,850 103,018
Telephone 6,450 8,107
Travel 15,446 30,322
1,832,312 1,797,262

Excess of revenues over expenses $ 380,535 $ 111,306

See accompanying notes to financial statements.

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 Kingston Economic Development Corporation
Statement of Changes in Fund Balances
Year Ended December 31, 2019

Other
Investment Board Board
in Capital Restricted Restricted Total Total
Assets (Note 6(a)) (Note 6(b)) Unrestricted 2019 2018

Balance at
beginning of year $42,865 $10,000 $50,000 $815,279 $918,144 $806,838

Excess (deficiency)
of revenues over
expenses (12,860) - - 393,395 380,535 111,306

Interfund transfer
(note 6(b)) - - - - - -

Change in investment
in capital assets 46,153 - - (46,153) - -

Balance at
end of year $76,158 $10,000 $50,000 $1,162,521 $1,298,679 $918,144

See accompanying notes to financial statements.

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Kingston Economic Development Corporation
Statement of Cash Flows
Year Ended December 31, 2019
2019 2018
Cash flow from (used in) operating activities
Excess of revenues over expenses $ 380,535 $ 111,306
Add (deduct) items not affecting cash
Amortization 26,404 20,332
Amortization of deferred capital contributions (13,544) (21,205)
Deferred lease inducements (6,910) (16,647)
Changes in non-cash working capital balances
Accounts receivable (206,511) 125,845
Sales tax recoverable (52,686) (3,242)
Prepaid expenses and refundable deposits 46,161 (43,575)
Accounts payable and accrued liabilities (58,973) 51,106
Receivable from/payable to City of Kingston 6,072 (23,173)
Receivable from/payable to Tourism Kingston (105,790) (176,660)
Deferred revenue (39,449) 63,595
(24,691) 87,682

Cash flow used in investing activities

Purchase of capital assets (116,153) (26,547)
Purchase of investments (6,895) (4,993)
(123,048) (31,540)

Cash flow from financing activities

Deferred capital contributions received 70,000 -
70,000 -

Net increase (decrease) in cash (77,739) 56,142

Cash at beginning of year 691,083 634,941

Cash at end of year $613,344 $691,083

See accompanying notes to financial statements.

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Kingston Economic Development Corporation
Notes to Financial Statements
Year Ended December 31, 2019

1. Purpose of the Corporation

Kingston Economic Development Corporation (the “Corporation”) is incorporated without
share capital as a not-for-profit corporation under the laws of Ontario. The Corporation's
mission is to undertake and promote economic development for Kingston, fostering local
investment, job creation, assessment growth and community prosperity through the
support of strategic economic projects in the industrial, commercial, institutional,
technological and tourism sectors.

2. Significant Accounting Policies

These financial statements have been prepared in accordance with Part III of the CPA
Canada Handbook - Accounting Standards for Not-for-Profit Organizations. Significant
accounting policies include the following:
(a) Investments
Investments in term deposits are recorded at cost plus accrued interest, which
approximates market value.
(b) Revenue Recognition
The Corporation follows the deferral method of accounting for contributions.
Operating grants are recorded as revenue in the period to which they relate. Grants
approved but not received at the end of an accounting period are accrued. Where a
portion of a grant relates to a future period, it is deferred and recognized in the
subsequent period.
Restricted contributions are recognized as revenue in the year in which the related
expenditures are incurred.
Unrestricted contributions are recognized as revenue when received or receivable,
provided that the amounts to be received can be reasonably estimated and
collection is reasonably assured.
Revenues from resale materials, events and seminars and commissions are
recognized when merchandise is received by or service is provided to the customer,
when the consideration is fixed or determinable and when collection is reasonably
assured.
Revenues from partners and other corporate investors towards various programs,
events and meetings delivered by the Corporation are recognized when there is
persuasive evidence of an arrangement for funding, the price is fixed or
determinable and collection of the relevant receivable is probable.

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Kingston Economic Development Corporation
Notes to Financial Statements
Year Ended December 31, 2019

2. Significant Accounting Policies (continued)

(c) Capital Assets
Capital assets are recorded at cost and amortization is provided using the straight-
line method over the estimated useful lives of the assets as follows:
Computer software 2 years
Computer hardware 3 years
Furniture and equipment 5 years
Website 5 years
Display units 7 years
Signage 7 years
Voicemail system 7 years
Leasehold improvements 5 - 10 years
CRM system 10 years

(d) Donated Materials and Services

The Corporation receives donated advertising services from the provincial
government. Because of the difficulty of determining the fair market value, donated
advertising services are not recognized in these financial statements.
(e) Deferred contributions
Deferred contributions related to capital assets represent financial assistance
received for the purchase of capital assets. This financial assistance is deferred
and amortized to income on the same basis as the related capital assets.
(f) Deferred Lease Inducements
Deferred lease inducements represent various lease inducements received from the
landlord pursuant to a lease agreement for premises occupied by the Corporation.
These lease inducements include an initial rent-free period and reduced rent
payments in the early periods of the lease. The deferred lease inducements are
amortized on a straight-line basis against rent expense over the term of the lease.

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Kingston Economic Development Corporation
Notes to Financial Statements
Year Ended December 31, 2019

2. Significant Accounting Policies (continued)

(g) Investment in PARTEQ Angel Network
The funds invested with the PARTEQ Angel Network Fund are carried at cost.
Each advance is evaluated annually for possible impairment in the carrying value.
Management makes its best estimate of the expected net recoverability of the
advances in relation to estimates pertaining to the financial solvency of the
underlying investments.
(h) Use of Estimates
The preparation of financial statements in conformity with Canadian accounting
standards for not-for-profit organizations requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial statements
and the reported amounts of revenues and expenses during the year. Actual results
could differ from those estimates.
Significant estimates in these financial statements include the estimated net
realizable value of inventory, the estimated net recoverability of the funds advanced
to PARTEQ Angel Network and the estimated useful lives of capital assets.
Management has made its best estimate for any impairment to the carrying values.

3. Investments
Investments are comprised of the following:

2019 2018
2.00% GIC with Kawartha Credit Union maturing August
10, 2019 $ - $ 37,893
2.20% GIC with Kawartha Credit Union maturing
September 20, 2019 - 57,142
2.40% GIC with Kawartha Credit Union maturing
December 20, 2020 58,594 57,221
2.55% GIC with Kawartha Credit Union maturing October
20, 2021 58,741 57,280
2.30% GIC with Kawartha Credit Union maturing August
10, 2020 38,811 37,938
2.60% GIC with Kawartha Credit Union maturing August
10, 2023 38,742 37,894
2.00% Term Rate Builder with Kawartha Credit Union
maturing October 2, 2022 97,375 -
$ 292,263 $ 285,368

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Kingston Economic Development Corporation
Notes to Financial Statements
Year Ended December 31, 2019

4. Accounts Receivable
2019 2018
Provincial contributions receivable $ 255,701 $ 33,160
Federal contributions receivable 40,021 48,100
Economic Development trade receivables 1,819 9,770
$ 297,541 $ 91,030

The allowance for doubtful accounts is $Nil (2018 - $Nil).

5. Prepaid Expenses and Refundable Deposits

2019 2018
Office rent $ 5,862 $ 6,625
OMERS 2,453 65,790
Travel costs 3,536 -
Training 5,088 -
Payroll 7,908 -
Memberships & subscriptions 1,177 6,204
Partnerships and sponsorships 2,351 4,064
Media 10,824 5,767
Contracted services 3,090 -
$ 42,289 $ 88,450

6. Board Restricted Funds

(a) Board restricted funds are comprised of:
2019 2018
PARTEQ Angel Network Fund $ 10,000 $ 10,000

PARTEQ Angel Network Fund

The Corporation holds 10,000 participation units in the PARTEQ Angel Network
(“Network”). The purpose of the Network is to make investments in early stage
business ventures that meet the specified investment criteria of the Network.
The participation units are non-interest bearing, unsecured, irrevocable advances that
can only be repaid to the participants in the event of a liquidity event of one or more
of the Network's underlying investments. The underlying original investments are in
SPARQ Systems Inc at $10,000. The result of these investments is that the
Corporation has shareholder rights in the company which translates into less than
1% share in the company.

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Kingston Economic Development Corporation
Notes to Financial Statements
Year Ended December 31, 2019

6. Board Restricted Funds (continued)

(b) The Corporation restricts net assets for various future expenditures under other
board restricted funds. The expenses of the board restricted fund have been
approved by the Board of Directors up to the following amounts:

Actual
Board Opening Expenses Ending
Transfers
Approved Balance in Year Balance
in Year
Business Retention
$ 50,000 $ 50,000 $- $- $ 50,000
and Expansion
$ 50,000 $ 50,000 $- $- $ 50,000

7. Capital Assets
2019 2018
Accumulated Net book Net book
Cost Amortization value value
Computer software $ 87,239 $ 87,239 $ - $ -
Computer hardware 102,700 102,700 - -
Furniture and equipment 82,801 70,347 12,454 -
Signage 120,931 117,300 3,631 5,226
Voicemail system 22,044 22,044 - -
Leasehold improvements-
Innovation Park - - - 6,544
Leasehold improvements-
366 King Street 84,609 8,461 76,148 -
CRM system 39,938 32,841 7,097 11,092
Website 44,253 4,425 39,828 -
584,515 445,357 139,158 22,862
Work in progress - - - 26,547
$ 584,515 $ 445,357 $ 139,158 $ 49,409

Cost and accumulated amortization of capital assets at December 31, 2018 amounted to
$580,485 and $531,076 respectively.

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Kingston Economic Development Corporation
Notes to Financial Statements
Year Ended December 31, 2019

8. Deferred Revenue
Deferred revenue consists of cash received in advance for operations for which the related
expenses will not be recognized until a later period. The deferred revenue is comprised of:
2019 2018
Ontario Business Improvement Digital Service $ 20,000 $ -
Career Apprenticeship 54,185 -
Small Business Enterprise Centre Core Funding - 84,405
Summer Company program - 29,229
Balance at end of year $ 74,185 $ 113,634

9. Deferred Contributions Related to Capital Assets

The changes in the deferred contributions balance for the year are as follows:
2019 2018
Balance at beginning of year $ 6,544 $ 27,749
Add: King Street contributions 70,000 -
Less: Amounts amortized to revenue
Innovation Park (6,544) (21,205)
King Street (7,000) -
(13,544) (21,205)
Balance at end of year $ 63,000 $ 6,544

10. Deferred Lease Inducements

Changes in the deferred lease inducements balance during the year are as follows:
2019 2018
Balance at beginning of year $ 6,910 $ 23,557
Add: rent expense for the year 32,152 61,478
Less: rent paid during the year (39,062) (78,125)
Balance at end of year $ - $ 6,910

11. Investment in Capital Assets

Net assets invested in capital assets are calculated as follows:

2019 2018
Capital Assets $ 139,158 $ 49,409
Less: deferred contributions to related capital assets (63,000) (6,544)
Balance at end of year $ 76,158 $ 42,865

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Kingston Economic Development Corporation
Notes to Financial Statements
Year Ended December 31, 2019

12. Provincial Government Contributions

2019 2018
Small Business Enterprise Centre Core Funding $ 370,358 $ 65,284
Summer Company program 41,511 73,736
Starter Company Plus program 13,991 83,748
Business Development 3,658 -
$ 429,518 $ 222,768

13. Partnership Revenue and Corporate Investors

2019 2018
Frontenac Community Futures Development Corporation $ - $ 20,274
Kingston Accommodation Partners - 2,500
Queen’s Career Apprenticeship Program 199,533 100,000
Queen’s Innovation Park 32,069 25,000
KEYS 7,470 -
Cunningham Swan-Friends of Kingston 7,341 -
Other 9,356 8,831
$ 255,769 $ 156,605

14. Bank Credit Facility

The Corporation has a short-term line of credit facility of $100,000 (2018 - $100,000)
of which none had been drawn as at December 31, 2019. The line of credit bears
interest at the lender’s prime rate and is secured by a general security agreement.

15. Commitments
(a) The Corporation is committed to a lease for office space under an operating
lease expiring July 31 2024. The annual lease payments amount to $69,122 per
year, plus HST.
Under the written terms of the lease, the Corporation can terminate the lease with six
months written notice on July 31, 2022. The Corporation can also renew the lease for
a further five years with six months written notice prior to the expiry of the lease; as
well as a further second renewal term of another five years with six months written
notice.
(b) The Corporation is committed to a service level agreement with the City of Kingston
for information systems and technology services. The annual charges for these
services amounted to $21,788 (2018 - $24,435).

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Kingston Economic Development Corporation
Notes to Financial Statements
Year Ended December 31, 2019

15. Commitments (continued)

(c) The Corporation is committed to a service level agreement with the City of Kingston
for accounting and reporting services. The annual charge for these services
amounted to $18,954 (2018 - $18,527).
(d) The Corporation is committed to a three year contract with KPMG to provide annual
audit services, with the option of extending two additional years. The contract expires
for the year ended December 2020, with an annual cost of $8,100 (2019) and $8,200
(2020) plus applicable taxes.

16. Pension Costs and Obligations

The Corporation makes contributions to the Ontario Municipal Employees Retirement Fund
(OMERS), which is a multi-employer plan, on behalf of its staff. The plan is a defined
benefit plan which specifies the amount of the retirement benefit to be received by
the employee based on the length of service and rate of pay. Because OMERS is a
multi-employer pension plan, the Corporation does not recognize any share of the
pension plan deficit of $3.4 billion (at December 31, 2019) based on the fair market value
of the plan's assets, as this is a joint responsibility of all Ontario municipalities and their
employees.
The employer portion amount contributed to OMERS for 2019 was $53,964 (2018 -
$51,217) and is included as an expense in the statement of operations. The amount
contributed to OMERS for employer and employee portions in 2019 was $108,327, with
an amount of $63,337 applied from prepaid expenses at December 31, 2018.

17. Fair Value of Financial Instruments

Financial instruments are initially recognized at fair value and then subsequently at
amortized cost with gains or losses recognized in the statement of operations in the period
in which the gain or loss occurs.
The carrying amounts for cash, accounts receivable and accounts payable approximate
their fair market values because of the short-term nature of these instruments.
It is management's opinion that the Corporation is not exposed to significant interest rate,
liquidity or credit risks arising from its financial instruments. There has been no change to
the risk exposure from December 31, 2018.

18. Related Party Transactions

The Corporation of the City of Kingston (the "City") significantly influences the Corporation
by virtue of the fact that the City has representation on the Board of the Directors and is
the major source of revenue for the Corporation.

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Kingston Economic Development Corporation
Notes to Financial Statements
Year Ended December 31, 2019

18. Related Party Transactions (continued)

The Corporation operates under a service level agreement with the City’s financial services
department whereby the City pays certain expenses on behalf of the Corporation. The
Corporation has a $106,996 (2018 - $113,068) receivable from the City at year-end related
to its service level agreement.
The City provided revenues of $1,461,500 (2018 - $1,439,820) to the Corporation.
The Corporation paid the City for information systems and technology services, and
accounting services as described in note 15(b) and (c).
The transactions are measured at the exchange amount, which is the amount of
consideration established and agreed to by the related parties.

19. Economic Dependence

The Corporation is economically dependent on the continued financial support of the
Corporation of the City of Kingston. The Corporation derives a significant portion of its
revenues each year from the City. Continued existence of the Corporation is dependent
on the future financial support of the City. Revenue derived from the City accounts for 66%
of total revenue.

20. Changes in accounting policies

In March 2018, the Accounting Standards Board issued “Basis for Conclusions- Accounting
Standards Improvements for Not-for-Profit Organizations” resulting in the introduction of
three new handbook sections in the Accounting Standards for Not-for-Profit Organizations
Part III of the Handbook as follows:
(a) Section 4433, Tangible capital assets held by not-for-profit organizations, which
directs organizations to apply the accounting guidance of Section 3061, Property
Plant and Equipment in Part II of the Handbook. In so doing, the new section requires
that organizations annually assess for partial impairment of tangible capital assets, to
be recorded where applicable, as a nonreversible impairment expense. In addition,
where practical, to componentize capital assets when estimates can be made of the
useful lives of the separate components.
This section is applied on a prospective basis with the exception of the transitional
provision to recognize an adjustment to opening net assets for partial impairments of
tangible assets that existed as at January 1, 2019.
(b) Section 4434, Intangible assets held by not-for-profit organizations, which directs
organizations to annually assess intangible assets, and where applicable to record
an impairment expenses should the net carrying value be higher than the asset’s fair
value or replacement cost.

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Kingston Economic Development Corporation
Notes to Financial Statements
Year Ended December 31, 2019

20. Changes in accounting policies (continued)

This section is applied on a prospective basis with the exception of the transitional provision
to recognize an adjustment to opening net assets for partial impairment of intangible assets
that existed as at January 1, 2019.
(c) Section 4441, Collections held by not-for-profit organizations, which defines a collection
and directs organizations to record such assets on the statement of financial position at
either cost or nominal value. It is anticipated that all collections will be accounted for using
the same method, with the exception of organizations that opt to account for collections at
cost, whereby the cost for certain collections either held or contributed cannot be
determined. Such items are to be accounted for at a nominal value. In addition, collections
are written down when there is evidence that the net carrying amount exceeds fair value.
Organizations are permitted to retrospectively capitalize collections at their cost or fair value
at the date of acquisition, or fair value or replacement cost as at January 1, 2019, based on
the most readily determinable value. In addition, an adjustment to opening net assets is
permitted to recognize any partial impairment of the value of collections that existed as at
January 1, 2019.
The amendments are effective for financial statements for fiscal years beginning on or after
January 1, 2019.
The implementation of these changes had no impact on the financial statements.

21. Subsequent events and contingencies

(a) Subsequent to December 31, 2019 the Corporation entered into a commitment with
Stiletto Consulting LTD for the development of the integrated economic development
strategy for Kingston. The charge for this 2020 contract is $109,237 plus HST with up
to $65,000 of this to be funded from reserves and a matching $65,000 from the City of
Kingston.

(b) Subsequent to December 31, 2019, the COVID-19 outbreak was declared a pandemic
by the World Health Organization and has had a significant financial, market and social
dislocating impact. At the time of approval of these financial statements, the
Corporation has experienced the following indicators of financial implications and
undertaken the following activities in relation to the COVID-19 pandemic.
 Closure of the administrative building within which it operates since March
16, 2020 based on public health recommendations
 Mandatory working from home requirements for those able to do so
 Continuous re-evaluation of the team’s work assignments
At this time these factors present uncertainty over future cash flows, may cause
significant changes to the assets or liabilities and may have a significant impact on
future operations. An estimate of the financial effect is not practicable at this time.

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