BRITISH COLUMBIA HYDRO AND POWER AUTHORITY

British Columbia Hydro and Power Authority
MANAGEMENT REPORT
The consolidated financial statements of British Columbia Hydro and Power Authority (BC Hydro) are the
responsibility of management and have been prepared in accordance with the financial reporting provisions
prescribed by the Province of British Columbia pursuant to Section 23.1 of the Budget Transparency and
Accountability Act and Section 9.1 of the Financial Administration Act (see Note 2(a)). The preparation of
financial statements necessarily involves the use of estimates which have been made using careful
judgment. In management’s opinion, the consolidated financial statements have been properly prepared
within the framework of the accounting policies summarized in the consolidated financial statements and
incorporate, within reasonable limits of materiality, all information available at June 1, 2016. The
consolidated financial statements have also been reviewed by the Audit & Finance Committee and
approved by the Board of Directors. Financial information presented elsewhere in this Annual Service Plan
Report is consistent with that in the consolidated financial statements.
Management maintains systems of internal controls designed to provide reasonable assurance that assets
are safeguarded and that reliable financial information is available on a timely basis. These systems include
formal written policies and procedures, careful selection and training of qualified personnel and
appropriate delegation of authority and segregation of responsibilities within the organization. An internal
audit function independently evaluates the effectiveness of these internal controls on an ongoing basis and
reports its findings to management and the Audit & Finance Committee.
The consolidated financial statements have been examined by independent external auditors. The external
auditors’ responsibility is to express their opinion on whether the consolidated financial statements, in all
material respects, fairly present BC Hydro’s financial position, comprehensive income and cash flows in
accordance with financial reporting provisions prescribed by the Province of British Columbia pursuant to
Section 23.1 of the Budget Transparency and Accountability Act and Section 9.1 of the Financial
Administration Act (see Note 2(a)). The Auditors’ Report, which follows, outlines the scope of their
examination and their opinion.
The Board of Directors, through the Audit & Finance Committee, is responsible for ensuring that
management fulfills its responsibility for financial reporting and internal controls. The Audit & Finance
Committee, comprised of directors who are not employees, meets regularly with the external auditors, the
internal auditors and management to satisfy itself that each group has properly discharged its responsibility
to review the financial statements before recommending approval by the Board of Directors. The Audit &
Finance Committee also recommends the appointment of external auditors to the Board of Directors. The
internal and external auditors have full and open access to the Audit & Finance Committee, with and
without the presence of management.
Jessica McDonald
President and Chief Executive Officer
Cheryl Yaremko
Executive Vice-President, Finance & Supply Chain
and Chief Financial Officer
Vancouver, Canada
June 1, 2016