2019 Annual Report

Annual Report 2019 113 TOURISM CHILLIWACK INC. Notes to Consolidated Financial Statements (continued) Year ended December 31, 2019 9. Employee future benefits (continued): Employers participating in the plan record their pension expense as the amount of employer contributions made during the fiscal year (defined contribution pension plan accounting). This is because the plan records accrued liabilities and accrued assets for the plan in aggregate, resulting in no consistent and reliable basis for allocating the obligation, assets and cost to individual employers participating in the plan. 10. Contingency: The Company entered into an agreement in 2011 with the City of Chilliwack which took into effect on January 1, 2012. The agreement has been renewed for an additional five years starting January 1, 2017. The agreement outlines the management and operation of Chilliwack Heritage Park. As a condition of the agreement with the City, the Company issued a non-revocable Letter of Credit in the amount of $50,000 as a guarantee for the due and faithful performance of the agreement. 11. Distribution to City of Chilliwack: In accordance with an agreement between the Company and the City of Chilliwack, a distribution of funds derived from the operation of Chilliwack Heritage Park is returned to the City and put into a building reserve fund, specifically for future use at Chilliwack Heritage Park. 12. Contractual rights: The Company has entered into contracts for various operating agreements. The Company is scheduled to receive the following amounts under those contracts: 2020 $ 532,300 2021 546,700 $ 1,079,000 10