Financial Information Act Return - BC Hydro

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 Canadian generally accepted
accounting principles, consistently applied and appropriate in the circumstances. The preparation of financial
statements necessarily involves the use of estimates which have been made using careful judgement. 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 May 9, 2003. The consolidated financial
statements have also been reviewed by the Audit & Risk Management Committee and approved by the Board
of Directors. Financial information presented elsewhere in this Annual 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 & Risk Management Committee.
The financial statements have been examined by independent external auditors. The external auditors’
responsibility is to express their opinion on whether the financial statements, in all material respects, fairly
present BC Hydro’s financial position, results of operations and cash flows in accordance with Canadian
generally accepted accounting principles. The Auditors’ Report, which follows, outlines the scope of their
examination and their opinion.
The Board of Directors, through the Audit & Risk Management Committee, is responsible for ensuring that
management fulfills its responsibility for financial reporting and internal controls. The Audit & Risk
Management 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 and
appointment of external auditors. The internal and external auditors have full and open access to the Audit &
Risk Management Committee, with and without the presence of management.
L.I.(Larry) Bell Bob Elton
Chair and Chief Executive Officer Executive Vice-President, Finance
Vancouver, Canada
May 9, 2003
and Chief Financial Officer