Canada Pension Plan Investment Board Act — C-8.3 39
Books and systems 39 (1) The Board shall, in respect of itself and each of its subsidiaries, cause (a) books of account and records to be kept; (b) financial and management control and information systems and management practices to be maintained; and (c) a record of the investments held during the financial year to be kept, showing (i) the book value of each investment, (ii) the market value of each investment and such information as will permit the verification of that value, and (iii) such information as will permit the determination of whether the requirements of this Act and the investment policies, standards and procedures have been met. Manner in which books, etc., to be kept (2) The books, records, systems and practices required by subsection (1) shall be kept and maintained in such manner as will provide reasonable assurance that (a) the Board’s assets and those of its subsidiaries are safeguarded and controlled; (b) the Board’s transactions and those of its subsidiaries are in accordance with this Act and the by-laws, or the by-laws of the subsidiaries, as the case may be; and (c) the Board’s financial, human and physical resources and those of its subsidiaries are managed economically and efficiently and that the Board’s operations and those of its subsidiaries are carried out effectively. Internal audit (3) The Board shall cause internal audits to be conducted, in respect of itself and each of its subsidiaries, to assess compliance with subsections (1) and (2). Annual financial statements (4) The Board shall cause financial statements to be prepared annually, in respect of itself and each of its subsidiaries, including, with respect to the financial year to which it relates, (a) a balance sheet as at the end of the financial year; (b) a statement of income for the financial year; (c) a statement of change in net assets for the financial year; and (d) a statement of investment portfolio. Contents of statements (5) The annual financial statements shall show such information and particulars as in the opinion of the directors are necessary to present fairly, in accordance with generally accepted accounting principles, the primary source of which is the Handbook of the Chartered Professional Accountants of Canada, the Board’s financial position as at the end of the financial year to which it relates. Quarterly financial statements (6) During each financial year, the Board shall cause quarterly financial statements to be prepared for each three month period of the year. The quarterly statements shall (a) show the same information for the most recent three month period as is required to be set out in the Board’s annual financial statements, except that a balance sheet is not required; and (b) show the same information in respect of the part of the year up to the date of the statements in relation to the corresponding period in the preceding financial year. Approval by board of directors (7) The board of directors shall approve the annual financial statements of the Board and of each of its subsidiaries and that approval shall be evidenced by the signature of at least one director of the Board. Jointly and separately (8) The financial statements required to be prepared under this section shall be prepared, as one set of statements, jointly and separately in relation to amounts managed by the Board for the purposes of the base Canada Pension Plan and the additional Canada Pension Plan , as defined in section 91 of the Canada Pension Plan . 1997, c. 40, s. 39; 2016, c. 14, s. 58; 2017, c. 26, s. 62