O u r M I S S I O N to i n s p i r e o u r l e a r n e r s to r e a l i z e t h e i r i n d i v i d ua l p ot e n t i a l . O u r v ision to ac h i e v e e d u c at i o n a l e x c e l l e n c e i n a p e o p l e - c e n t r e d e n v i r o n m e n t. O u r va l u e s a r e r e s p e c t, s a f e t y, t ru s t, p r i d e , e t h i c s , Q ua l i t y a n d ac c o u n ta b i l i t y.
ANNUAL REPORT 2009-2010
ANNUAL REPORT 2009-2010
CONTENTS Accountability Statement..................................................................... 2 Management’s Responsibility for Reporting........................................ 2 Message from the President................................................................ 3 Year in Review...................................................................................... 4 Operational Overview........................................................................... 6 Board of Governors....................................................................... 6 Programming................................................................................ 6 Enrolment...................................................................................... 7 Facilities........................................................................................ 8 Staffing ......................................................................................... 8 Performance Review............................................................................ 8
Goals, Initiatives and Outcomes.................................................... 9
Management’s Discussion and Analysis.............................................. 17
Business Planning and Management............................................ 17
Financial Information.................................................................... 18
Areas of Significant Financial Risk................................................ 20
Capital Projects............................................................................. 21
Donors................................................................................................. .22 Financial Statements............................................................................ 25 Auditor’s Report........................................................................... 25 Statement of Financial Position................................................... 26 Statement of Operations.............................................................. 27 Statement of Changes in Net Assets............................................ 28 Statement of Cash Flows............................................................. 29 Notes to the Financial Statements................................................ 30
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ACCOUNTABILITY statement The Lakeland College Annual Report for the year ended June 30, 2010 was prepared under the Board’s direction in accordance with the Government Accountability Act and ministerial guidelines established pursuant to the Government Accountability Act. All material economic, environmental or fiscal implications of which we are aware have been considered in the preparation of this report.
Doug Elliott Chairman Lakeland College Board of Governors December 2010
management’s Responsibility for reporting Lakeland College’s management is responsible for the preparation, accuracy, objectivity and integrity of the information contained in the Annual Report including the financial statements, performance results, and supporting management information. Systems of internal control are designed and maintained by management to produce reliable information to meet reporting requirements. The system is designed to provide management with reasonable assurance that transactions are properly authorized, are executed in accordance with all relevant legislation, regulations and policies, reliable financial records are maintained, and assets are properly accounted for and safeguarded. The Annual Report has been developed under the oversight of the institution audit committee, as well as approved by the Board of Governors and is prepared in accordance with the Government Accountability Act and the Post-secondary Learning Act. The Auditor General of the Province of Alberta, the institution’s external auditor appointed under the Auditor General Act, performs an annual independent audit of the financial statements in accordance with generally accepted accounting principles.
Ralph Troschke Vice President, Student and College Services Lakeland College
ANNUAL REPORT 2009-2010
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message from the president As I write this message I’m reminded of my address to our Class of 2010 during spring convocation ceremonies. I told them that they are on the right track towards earning respect and building an individual brand that they can be proud of. I urged them to keep working hard and to follow through on their promises. I believe my exact words were, “If you say you’ll do something, do it.” Now it’s time to analyze Lakeland College. Did we do what we said we’d do? Did we accomplish many of the objectives we outlined in the 2009-2013 business plan? We said increasing enrolment was a priority. For the fourth consecutive year, our full-time enrolment increased thanks in part to the addition of new programming and an increased retention rate. The success of our students and alumni also drove enrolment. Students such as Teresa Simon, who placed third in an international design competition, and Matt Spicer, who received a Top Apprentice Award for Alberta, help demonstrate the caliber and quality of our college. Alumni success stories such as Les Karpluk, who was named the Full-time Career Fire Chief of the Year by the Canadian Association of Fire Chiefs, and Rebecca Stewart, who was the recipient of the Design Council of Saskatchewan’s Premier’s Award for Design Excellence, also add to our story. We said pursuing applied research projects was a priority. We learned in May 2010 that we will receive $2.3 million in federal funding to expand and support applied research and innovation activities linked to our environmental sciences programs. The funding comes from the Natural Sciences and Engineering Research Council of Canada’s College and Community Innovation program. We said working closely with the communities and adult learning councils in our region was a priority. Last fall we made administrative changes to allow us to assign community liaison duties to one of our employees. This person had regular meetings with the six learning councils in our region. I also met more often with mayors, reeves, councils and organizations in our region to discuss college and community issues and priorities. We said catching up on needed capital projects was a priority. At one point there were 13 projects underway at Lakeland including renovations to residence buildings, upgrades to the mechanical systems in the Applied Engineering building and construction of a student activity centre at the Vermilion campus. At the Lloydminster campus work began to convert existing space into a child development centre to serve as a living lab for college programs. So in response to my earlier questions, the answers are yes. As I look back at the past year, I can say with certainty that we did what we set out to do. Lakeland College is definitely on the right track towards achieving the goals we established in our 2008-2013 strategic plan.
Glenn Charlesworth President and Chief Executive Officer Lakeland College
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yEAR IN REVIEW In Lakeland’s 2009-2013 business plan, one of the opportunities noted involved Lakeland increasing its focus in applied research. That opportunity was pursued and in May 2010 Lakeland learned it will receive $2.3 million in federal funding to expand and support applied research and innovation activities linked to its programs in environmental sciences. The new funding comes from the Natural Sciences and Engineering Research Council of Canada’s College and Community Innovation program and will span a five year period. Lakeland’s School of Environmental Sciences will use the funding to initiate work on integrating renewable energy and conservation technologies to support project development and applied research work which will benefit oil and gas, agriculture, trades and business sectors. About 500 visitors attended 50th anniversary celebrations for fire etc. in September 2009. Among those at the celebration was George King, a member of the first graduating class. The organization opened in 1959 as Fire Officer’s Training School. It was renamed the Alberta Fire Training School in the 1960s and became a subsidiary corporation of Lakeland College in 1998. Completely integrated with Lakeland in 2004, fire etc. was renamed Lakeland College Emergency Training Centre in November 2009. Once again Lakeland had a number of student and alumni success stories. Interior design technology student Teresa Simon’s entry in an international design competition placed third out of 119 entries. Matt Spicer received the Agricultural Equipment Technician’s Top Apprentice Award for Alberta. Student athletes also excelled not only in their sport but also in the classroom. Volleyball players Brianne Collette and Carmen Dubnick as well as basketball player Jillana Knauft were named Alberta Colleges Athletic Conference (ACAC) All Conference Players and, because they maintained an honours grade point average, were also named Canadian Colleges Academic All Canadians. Lindsay Makichuk, one of Lakeland’s premier curlers, played on Team Alberta at the Scotties Tournament of Hearts. In other curling news, Neil Bratrud wrapped up his golden collegiate curling career with one more gold medal. He skipped Lakeland’s mixed rink of Alicia Barker, Reid Johnston, Adelle Clark and alternate Dexter Lethbridge to the ACAC title with a 6-5 extra end win against Concordia University College of Alberta. It was Bratrud’s fourth gold medal. Lakeland grads also found themselves in the spotlight. Class of 2009 grad Derek Dedman finished in the top 10 among the 1,029 people from across Canada who wrote the Certified Financial Planner exam in June. Les Karpluk, a graduate of the bachelor of applied business: emergency services program in 2007, was named the Full-time Career Fire Chief of the Year during the 2009 Canadian Association of Fire Chiefs annual conference in Winnipeg. Rebecca Stewart, an interior design technology grad in 2006, was the 2009 recipient of the Design Council of Saskatchewan’s Premier’s Award for Design Excellence in Interior Design. Also noteworthy are the accomplishments of many Lakeland employees. Dr. Terri Rowat received the Alberta Association of Animal Health Technologists’ Veterinarian of the Year Award. Rowat is the program chair of Lakeland’s animal health technology program. Her co-worker Kim Eremko, an educational lab technician and sessional instructor, won the Appreciation Award. Tracy Wasylishen, a caregiver in Lakeland’s Child Development Centre, was a finalist for an Excellence in Child Care Award from Alberta Children’s Services. The Canadian Colleges Athletic Association presented Lakeland with the 2009 Innovation Award for its partnership with the Meridian Youth Soccer Association and the Saskatchewan Soccer Association. Lakeland worked with the two other groups to hire world-renowned soccer advocate Mick Gale as the coach for the college’s soccer teams and also technical director for the other organizations. Lakeland made its futsal debut in the ACAC in the fall of 2009. Lakeland was the first post-secondary institution in Alberta to pilot ApplyAlberta. Lakeland launched the service during Open House activities in October 2009, receiving 126 online applications during the two day event. Daniel Allchurch of Lloydminster was the first applicant to use the common application service.
ANNUAL REPORT 2009-2010
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The 2009 WorldSkills competition may have been held in Calgary, but the benefits were felt throughout the province. The Alberta government spent about $16 million on new trades-related equipment and technology for use during the event. After the event the government offered the items to secondary schools that offer career and technology studies and to colleges and technical institutes that offer apprenticeship training. Lakeland received 32 items worth a total value of $106,900. The 2010 Vancouver Olympic Winter Games Torch Relay made its way through Lloydminster and Vermilion in January and a Lakeland student had the honour of carrying the torch. Lindsay Bosch, a professional accounting student, carried the flame Jan. 13 in Lloydminster. Also getting into the Olympic spirit were students in the event coordinator program. They helped with preparations for the Torch Relay celebrations at Lloydminster’s Bud Miller All Season’s Park. Lakeland’s Health Services team initiated a Biggest Loser Competition in January 2010 and the results were incredible. There were 84 participants and about 1,000 lbs were lost during the friendly competition. Not only were participants weighed weekly, they also received healthy recipes and a tip sheet on topics such as sodium intake, the importance of drinking water, and why you shouldn’t eat in the evening. In June and July students from human services programs participated in an international practicum experience in Australia. Students were hosted by South West TAFE, Lakeland’s partner college in Warnambool, Australia. Convocation is always one of the best events of the year, but the 2010 celebration at the Vermilion campus was extra special thanks to the first graduating class of Lakeland’s sign language interpretation program. Appropriately the audience signed applause for the graduates. Also noteworthy was the presentation of a Distinguished Alumnus Award to the Honourable Robert C. McLeod of the Northwest Territories. Mr. McLeod completed his training and earned his journeyman carpenter certification and interprovincial Red Seal at Lakeland in 1989. He was elected to the legislative assembly of the Northwest Territories in 2004 and currently holds the following portfolios: Minister of Municipal and Community Affairs; Minister Responsible for the Workers Safety and Compensation Commission; Minister Responsible for the Northwest Territories Housing Corporation; and Minister Responsible for Youth.
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Operational Overview Board of Governors (as of June 30, 2010) Doug Elliott, Chairman Milt Wakefield, Vice Chairman and Public Member, Lloydminster Region Glenn Charlesworth, President and Chief Executive Officer Rob Baron, Faculty Member Ben Berg, Student Member Mary Holtby, Public Member, Saskatchewan Sean Kingston, Non Academic Support Member Susan Long, Public Member, Vermilion Region Craig Solberg, Public Member at Large
Programming Thanks to Lakeland’s collaboration with the University of Calgary, 15 students began classes in September at the Lloydminster campus in the first-ever offering of the bachelor of education: master of teaching after degree program. It wouldn’t have been possible to run the program without the support of local school divisions as they provided student placement sites for practice teaching assignments. Lakeland welcomed its first intake of paramedic and emergency medical technician students with about 40 students enrolled in the programs which are offered primarily online with some on-site technical skill classes offered in Camrose. As for other distributed learning highlights, Lakeland’s eCampusAlberta registrations increased from 584 in 2008-09 to 1,062 in 2009-10, an increase of 82 per cent. The length of pre-employment trades programs increased from 12 weeks to 16 weeks to accommodate a four week practicum. To help meet the needs of industry and students, Lakeland offered a health care aide certificate program which was offered part-time on weekends. Seventeen students graduated from the program and all but one was employed in health care or community agencies while enrolled in the program.
Comprehensive evaluations of eight programs were completed and numerous programming changes were approved during the year. Among the changes to be implemented in 2010-11 include the introduction of a veterinary medical assistant certificate program, the merging of livestock production and animal science technology programs into one animal science technology program, the ranch and feedlot rider program name change to western ranch and cow horse, and the introduction of one environmental sciences diploma with four majors, rather than four stand alone diploma programs. Research was completed to determine if an after-diploma certificate in animal assisted therapy would be viable. It was determined that there was not enough support or unified perspective in the profession to proceed with a program. The following programs were offered by Lakeland during the 2009-10 academic year. Programs with an asterisk are not included in the full-load equivalent (FLE) count. Adult development programs Academic upgrading Transitional vocational Applied degree programs Bachelor of applied financial services Bachelor of applied business: emergency services Bachelor of applied science: environmental management Apprenticeship technical training Automotive service technician Carpenter Electrician Heavy equipment technician Instrument technician Parts technician Steamfitter-pipefitter Welder Certificate and diploma programs Accounting technician Adventure tourism and outdoor recreation Advanced business administration Agribusiness Agro-environmental technology Animal health technology Animal science technology Appraisal and assessment Business administration Child and youth care
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ANNUAL REPORT 2009-2010
Conservation and restoration ecology Crop technology Dairy production Disability studies Early learning and child care (certificate and diploma) Educational assistant Emergency medical technician – ambulance Emergency medical technologist – paramedic Emergency services technology Employment skills enhancement Environmental conservation and reclamation Environmental protection technology Esthetician Event coordinator Financial services Firefighter (NFPA 1001) General agriculture Heavy oil operations technician Interior design technology Livestock production Management Massage therapy Office administration Pharmacy technician – retail Practical nurse Pre-employment (welding, electrical, instrument technician) Professional accounting Ranch and feedlot rider Renewable energy and conservation Sign language interpretation Wildlife and fisheries conservation
Pesticides Pesticides dispenser Sign language and deaf studies
University studies Popular transfer routes include: • Arts • Commerce • Education • Science • Social work • Pre-dentistry • Pre-medicine • Pre-pharmacy • Pre-veterinary medicine
2007-08 2,881 5,191 8,072 2008-09 3,208 4,511 7,719 2009-10 3,241 4,145 7,386
Credit continuing education Emergency medical responder Fourth class power engineering Gas process operator Health care aide
Credit general studies Firefighting and emergency services training General skills training Short or part-time non-credit AutoCad operator* Truck driver training* Non-credit Open studies – leisure and interest* Collaborative degree programs Athabasca University Bachelor of commerce Bachelor of management Bachelor of general studies – applied studies University of Calgary * Master of education (educational leadership)
Enrolment For the fourth consecutive year, credit full-load equivalents and full-time headcount increased at Lakeland. Credit full-load equivalents (FLEs) 2007-08 - 1,928 2008-09 - 2,051 2009-10 - 2,099 Credit student headcount Full-time
FLEs by credential Diploma and post basic diploma Apprenticeship University studies/ applied degree Career certificate No credential/ not applicable
2007-08
Part-time
2008-09
Total
2009-10
654.982 668.209 760.537 313.163 314.954 270.236 270.108 378.668
311.413 306.261 455.418 495.827
311.076
301.155 265.912
Total 1,927.997 2,051.149 2,098.773
8 Retention rate based on graduation 2007-08 2008-09 Certificate programs Diploma programs
73.5% 90%
78.2% 82.6%
2009-10 79% 84%
Facilities It was a very busy year for Lakeland’s capital projects team. Among the numerous projects that started or continued during the year at the Vermilion campus included the Applied Engineering mechanical systems upgrade, construction of a new Student Activity Centre, residence renovations, overhaul of the Trades Centre mezzanine and upgrades to the high voltage distribution infrastructure. As for the Lloydminster campus, one of the major projects that started was retrofitting existing space to create a child development centre that will serve as a living lab for college programs. Installation of security CCTV continued at both campuses. Vermilion campus Site area: 209.95 hectares Off site: 9.3 hectares Agricultural land: 62.86 hectares Non-residential building area: 50,838.8 sq. m Residence accommodation: Single beds – 544; family units – 17 Lloydminster campus Site area: 26.70 hectares Non-residential building area: 17,258 sq. m Residence accommodation: Single beds – 256; family units – 48
Staffing The economic slowdown in Alberta eased staff attraction issues for the 2009-10 year. However, it remains critical that Lakeland continues preparing its own people for future opportunities within the organization as 45 per cent of all college employees are 50 years of age or older. The average number of employees at Lakeland each month was 612. This included full-time, part-time, temporary, sessional, casual, student, government sponsored and contract employees.
Permanent and continuing staff 2007-08 Administration Full-time
2008-09
2009-10
48 49 49
Faculty Full-time Part or reduced time
109 111 112 5 5 5
AUPE Full-time Part-time
160 167 169 9 9 9
Performance Review Taking advantage of opportunities and implementing measures to overcome challenges are constants in any organization. Lakeland was able to capitalize on a number of the opportunities identified in its 2009-2013 business plan. • A pplied research - In May 2010, Lakeland learned it will receive $2.3 million in federal funding to expand and support applied research and innovation activities linked to its programs in environmental sciences. The new funding comes from the Natural Sciences and Engineering Research Council of Canada’s College and Community Innovation program and will span a five year period. • Change in job markets - With a changing employment market Lakeland speculated that participation in postsecondary education would increase. That occurred and Lakeland experienced an increase in FLEs from 2,051 to 2,099. • Multiculturalism - Alberta’s diverse population is increasingly being reflected in Lakeland’s student body as a growing number of First Nations, Métis and immigrants study at Lakeland. To help create an environment to promote a sense of belonging for all students, the following occurred:
J An Aboriginal activities facilitator was hired. Aboriginal activities hosted at the Lloydminster campus included a round dance, spring feast, construction of a teepee, and moccasin and handdrum making workshops.
J A cultural awareness seminar was delivered to Emergency Training Centre staff, a group that is involved in training initiatives with First Nations and Métis organizations.
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ANNUAL REPORT 2009-2010
J In September 2009 Lakeland began its involvement in the Inroads to Agriculture partnership which involves various organizations. The purpose of Inroads to Agriculture is to coordinate and prepare Aboriginal People for agriculture-related education and training, followed by their recruitment, retention and advancement as employees in the agriculture and agri-services sectors. J In June 2010, the Crown Investment Corporation of Saskatchewan announced a new bursary program for Saskatchewan Aboriginal students who attend Lakeland. Beginning in the fall of 2010, up to 20 new bursaries (each $5,000 annually) will be awarded to qualifying students enrolled full-time in eligible Lakeland programs. The CIC will fund the new bursaries at Lakeland for four years.
• Cost breaks on maintenance and capital projects - Lakeland anticipated that project costs would drop because of more companies and individuals available to be hired, but that did not occur. Costs remained similar to previous years. As for challenges, one of the biggest issues Lakeland identified was related to funding. • Economic realities - As anticipated, Lakeland learned its grant revenue from the Government of Alberta will drop during the 2010-2011 year. Fortunately in recent years Lakeland’s financial performance has been strong so there are reserves in place. In addition, Lakeland took steps in recent years to operate more efficiently and that practice continued. As can be seen in the financial statements in this document, a small surplus was recorded for the 2009-10 year. Lakeland intends to continue saving money by eliminating budget items that have little or no impact on students, creating realistic budgets and analyzing them quarterly to ensure they are on track, and thoroughly examining vacant staff and faculty positions before they are refilled. • Information technology - Another challenge Lakeland identified is the cost of technology and the struggle to keep it current. An academic technology committee was established in the spring to address the technological needs of the academics. Recommendations from the committee will be released in the fall of 2010.
Goals, Initiatives and Outcomes In February 2008, Lakeland’s Board of Governors approved a strategic plan that included six goals the organization would pursue as it works toward its centenary in 2013. A Strategic Planning Action Committee (SPAC) comprised of about 35 Lakeland employees was created in May 2008. Members are annually assigned to one of six groups. Each group is responsible for a strategic plan goal. SPAC meets quarterly to review progress toward achieving the goals, discuss priorities and develop new objectives. Details follow on Lakeland’s progress toward achieving the objectives set for 2009-10.
Goal – Ensuring sustainable growth Initiatives 1. Create high performance teams. Objectives for 2009-10 • Provide employees with a print and/or web-based tool that promotes internal training opportunities. • Raise the significance of the Green ‘n’ Gold employee recognition program by encouraging submissions throughout the year and installing award recipient display boards at each campus. • Increase participation and reduce travel-associated costs for professional development by hosting more indemand training sessions at Lakeland and encouraging participation in webinars. Analysis A Internal training and staff services calendars were developed and distributed to employees in the fall and the spring. A There were six group and 16 individual nominations for Green ‘n’ Gold employee awards, a decrease from the previous year of 24 individual and 11 group nominations. Award recipient display boards were installed. A In March 2010, 140 employees participated in an internal staff survey. Employees were asked to rate their level of agreement with a number of statements. Responses were based on a scale of 1 to 5 with 5 indicating strong agreement.
10 J I am proud to work at this institution. 4.21 (2009 response: 4.24) J I have adequate opportunities for training to improve my skills. 3.83 (2009 response: 3.74) J The type of work I do on most days is personally rewarding. 4.06 (2009 response: 4.06) J Rate your overall satisfaction with your employment at Lakeland. 4.02 (2009 response: 4.03) 2. Collaborate with industry, government and postsecondary institutions in Alberta and Saskatchewan to offer programs that respond to current and emergent needs and interests of the region and/or provinces. Objectives for 2009-10 • Continue to host program advisory committee meetings and seek input from industry partners on needed programming changes. • Build relationships with community adult learning councils in Lakeland’s stewardship region. • In response to community and industry requests, offer English Language Training at the Lloydminster campus (possibly in association with Lloydminster Learning Council Association). • Provide opportunities for faculty and staff to participate in applied research projects. Analysis A Sixteen program advisory committee meetings were held during the year. A Administrative changes were made to allow Lakeland to focus more on building relationships with community adult learning councils. In October 2009, a Lakeland employee was assigned the responsibility of working closely with adult learning partners, school jurisdictions, organizations and industry to learn more about the learning needs in Lakeland’s region - a requirement of the Roles and Mandates Policy Framework. A There will be lots of opportunities for employees to participate in applied research projects as in May 2010, Lakeland learned it will receive $2.3 million in federal funding to expand and support applied research and innovation activities linked to its program in environmental sciences. The new funding comes from the Natural Sciences and Engineering Research Council of Canada’s
College and Community Innovation program and will span a five year period. A English Language Training was not offered during the 2009-2010 academic year but it will be offered in the fall of 2010. 3. Excel at marketing and enrolment management. Objectives for 2009-10 • Finalize and implement a three-year strategic enrolment management plan. • Increase the percentage of students who continue studies through to graduation by having more programs implement early-alert strategies to address students at risk and get them the help they need to succeed. • Create a database of alumni who are interested in speaking at program information sessions, volunteering at Lakeland events, and helping promote Lakeland at trade fairs and school presentations in their community. • Fill the 36 seats available for the Student Success Course offered in August. Follow up with the 28 people who attended the inaugural course in 2008 to determine if the course helped them succeed. • Enhance program and college orientation and welcome activities available for incoming students prior to registration day and throughout the first month of classes to assist with proper program fit and retention. • Complete enrolment management communications flow for contacting prospective students and parents during the inquiry, application and accepted stages of admission. • Increase use of viral marketing techniques such as Facebook, Twitter, blogs, online videos and e-mail blasts to boost enrolment and improve student engagement and retention. Analysis A There were 33 students in the August 2009 Student Success Course, an increase of six from the previous year. Of the course participants, 100 per cent said they would recommend the course to a friend. A The retention rate, as measured by graduation, was 79 per cent for certificate programs and 84 per cent for diploma programs for the 2009-10 year. Both rates increased from the previous year.
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ANNUAL REPORT 2009-2010
A Full-load equivalents increased by 2.3 per cent from the previous year.
Goal – Investing in Lakeland infrastructure
A Enrolment management communications flow was completed and used throughout the year.
Initiatives
A Numerous changes were made to the orientation and welcome activities including more in-depth program orientations. A Viral marketing techniques were used with great success. As of June 2010, Lakeland was on pace for a fall term enrolment increase of more than 20 per cent.
1. Commitment to Lakeland campuses. Objectives for 2009-10 • Finalize facilities master plan and share it with the Lakeland community. • Infrastructure renewal plan updated and projects prioritized.
4. Align programming with the strategies and priorities of government.
• Preventative maintenance program underway with the assistance of Magic software.
Objectives for 2009-10
Analysis
• Offer English Language Training at the Lloydminster campus (possibly in association with Lloydminster Learning Council Association). This supports Advanced Education and Technology’s strategy of increasing the participation of First Nations and Métis, immigrants and other under-represented groups in literacy and other learning opportunities.
A Master plan was completed in May 2010 and shared with staff.
• Support Advanced Education and Technology’s third core business of supporting research and its application and commercialization to grow a more diverse Alberta economy and knowledge-based society by accomplishing the following:
Objectives for 2009-10
J Put into operation the renewable energy cabin at the Vermilion campus as a lab for the online renewable energy and conservation program as well as to conduct renewable energy applied research projects. J Pursue vocal and financial support for an industry/ energy training centre at the Lloydminster campus.
Analysis A Students in the online renewable energy and conservation program were able to use the energy cabin as a lab, accessing online data about the off-grid building. A English Language Training was not offered during the 2009-2010 academic year but it will be offered in the fall of 2010.
A The three year infrastructure renewal plan was updated and sent to the Government of Alberta in May 2010. A Preventative maintenance program is not yet in place. 2. Supportive friends.
• To have done enough significant maintenance to change the facilities condition index of the campuses. • Receive additional government grants to address infrastructure needs. Analysis A Preventative maintenance work was done but it is not yet known if the facilities condition index changed. A L akeland received funding for three projects through the federal government’s Knowledge Infrastructure Program. Additional funding was also received from the Government of Alberta.
Goal – Fostering a peoplecentred environment Initiatives 1. Focus on student success. Objectives for 2009-10 • Each department will consider and identify its own definition of student success.
12 Analysis A In the 2009-10 student satisfaction survey, students were asked if their Lakeland experience met their expectations. Eighty-eight per cent of respondents said their Lakeland experience met or exceeded their expectations, an increase from 86 per cent the previous year. Asked if they had to do it all over again, would they enrol at Lakeland again, 84 per cent said yes compared to 80 per cent the previous year. A In the 2010 Graduate Outcome Survey conducted by Alberta Advanced Education and Technology, Lakeland graduates reported:
J 94.1 per cent would recommend Lakeland to others.
J 92.4 per cent were satisfied or very satisfied with the quality of teaching in their program.
J 92.2 per cent were satisfied or very satisfied with their jobs resulting from their Lakeland education.
J 90.6 per cent were satisfied or very satisfied with the overall quality of their educational experience at Lakeland.
2. Ignite passion in employees. Objectives for 2009-10 • Review and analyze changes made to the new employee and faculty orientation process to determine if they are meeting the needs of new employees and their supervisors. • Encourage employees to show their college-pride by wearing apparel with a Lakeland crest or word mark every Friday. Analysis A During new employee orientation sessions, employees are encouraged to wear Lakeland logoed clothing on Fridays. In addition, a survey was created to determine what type of clothing employees want the bookstore to carry. The survey will be administered in the fall of 2010. A In March 2010, employees participated in an internal staff survey. Employees were asked to rate their level of agreement with a number of statements. Responses were based on a scale of 1 to 5 with 5 indicating strong agreement.
J I am proud to work at this institution. 4.21 (2009 response: 4.24)
J I have adequate opportunities for training to improve my skills. 3.83 (2009 response: 3.74)
J The type of work I do on most days is personally rewarding. 4.06 (2009 response: 4.06)
J Rate your overall satisfaction with your employment at Lakeland. 4.02 (2009 response: 4.03)
3. Bolster College pride. Objectives for 2009-10 • Ensure aerial photographs of both campuses are on display at the Vermilion campus and Lloydminster campus. • L aunch a new Alumni and Friends section on the Lakeland website to profile alumni and donors and provide an avenue for alumni to interact with one another and Lakeland. Analysis A Aerial photographs of both campuses were added to the Vermilion campus, Lloydminster campus, and the Emergency Training Centre. A The new Alumni and Friends section went live in November 2009. A L akeland celebrated its 96th anniversary Nov. 17, 2009 by serving cake at both campuses. In addition, 5,680 emails were sent to current students, alumni, prospective students and community members announcing the college’s anniversary. The open rate of the email was 21 per cent. 4. Towards 2013. Objectives for 2009-10 • Centennial Steering Committee will continue planning celebrations for 2013. Teams are working on marketing and promotion, events, logistics, historical displays, administration and more. • Continue to make students, employees, alumni and community members aware that centenary activities are being planned. • Publicly launch centennial fundraising campaign and provide details on the priority capital items of Lakeland’s academic schools. Analysis A Committees met regularly. The events committee has developed a preliminary schedule with events every
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ANNUAL REPORT 2009-2010
month and the grand finale on Nov. 16, 2013. Facilities are booked.
J T here is good communication between staff and the administration at this institution. 3.41 (2009: 3.34)
A A proposal was submitted to Canada Post to have a commemorative postage stamp created to recognize the 100th anniversary of Lakeland and Olds College. The two colleges were originally created as agricultural schools.
A To help understand what communication tools employees use as well as how they prefer to be communicated with, a survey was created and tested in the spring. It will be sent to all staff in the fall of 2010.
A Centennial fundraising plan was approved by the Board of Governors in January 2010. The private phase of the centennial fundraising campaign began.
Goal – Engaging our community
5. Strengthen communication. Objectives for 2009-10 • Strengthen internal and external electronic communication by providing resources and logistics to ensure Lakeland’s website is effective in communicating with all stakeholders. • Update Lakeland website to include applied research availability and success stories. • Implement Student Self Serve, an online method for prospective and current students to check their admission status, grades, account balances and more. Analysis A MyLakeland, a student self serve portal, went live January 2010. Students can view their marks, admission status, and course enrolments, pay tuition and residence fees and update their contact information. A An applied research page with details on research projects, student research jobs and more was added to the website. A In March 2010, employees participated in an internal staff survey. Employees were asked to rate their level of agreement with a number of statements. Responses were based on a scale of 1 to 5 with 5 indicating strong agreement. The following statements relate to communication.
J There are effective lines of communication between departments. 2.82 (2009 response: 2.87) J Administrators share information regularly with faculty and staff. 3.36 (2009 response: 3.36 J There is good communication between the faculty and the administration at this institution. 3.33 (2009: 3.39)
Initiatives 1. Cultivate partnerships with government. Objectives for 2009-10 • Update key points document for use by Board of Governors. • Hold brown bag luncheons with employees to share key messages and discuss their role in advocacy. Analysis A Key points document was updated with information on three capital projects. It was used by the Board of Governors. A Based on survey results, key messages were developed and published in the 2010 Fast Facts document that was distributed to all Lakeland employees. A Number of visits with elected and employed government officials: President Glenn Charlesworth – 58 (39 the previous year); Board of Governors Chairman Doug Elliott – 22 (25 the previous year). 2. Support our region. Objectives for 2009-10 • Presentation to staff and faculty on how to work with the media. • President to meet with Rotary Club and Chamber of Commerce members in Vermilion and Lloydminster once a year to update them on Lakeland activities. • Meet with mayors and community adult learning councils in Lakeland’s stewardship region. • Continue to have Lakeland representation on Battle River Alliance for Economic Development (BRAED) and The HUB.
14 Analysis
4. Raise the College’s profile.
A L akeland had representation on The HUB and BRAED.
Objectives for 2009-10
A Through a combination of individual and group meetings, Lakeland’s community liaison met three times with community adult learning councils in the region.
• Continue to encourage student involvement in community; promote citizenship.
A President Glenn Charlesworth spoke to local Rotary Clubs and the Vermilion Chamber of Commerce. A L akeland’s media spokesperson attended two media workshops so she will be able to train staff. 3. Work with industry. Objectives for 2009-10 • Maintain list of employer and industry contacts. • Survey employers to determine if they are satisfied with the preparation of Lakeland graduates. • Programs completing a comprehensive review will survey applicable industry representatives to gather input about factors such as industry trends, employment requirements and employee skills. • Strong and active advisory committees. Analysis A There were 16 advisory committee meetings held during the year. A Industry was surveyed during comprehensive program evaluations. A An employer survey was completed in July 2009. A total of 176 businesses who have hired Lakeland graduates within the past three years participated in the study. Among the results:
J 98.9 per cent of employers would recommend Lakeland graduates to other employers.
J Asked the likelihood of hiring a Lakeland graduate in the future, 74.7 per cent report that they are very likely and 24.2 per cent report they are somewhat likely.
Analysis A Student newspapers published information about volunteer opportunities. A Both the Vermilion and Lloydminster campus Students’ Associations held various fundraisers to support worthy causes and did an exceptional job of raising money. For example the Vermilion campus Students’ Association raised more than $4,200 for charities such as the Terry Fox Foundation, Cancer Society, CANFAR and Operation Christmas Child.
Goal – Funding our future Initiatives 1. Increase financial resources. Objectives for 2009-10 • Start submitting grant applications to private and public foundations and granting agencies. • Increase donations to the alumni annual giving campaign. • Publicly launch centennial fundraising campaign. • E xpand the range of tools used to connect with alumni. • Develop a strategy for increasing Lakeland loyalty among current students and recent alumni. • Define who our alumni are. Analysis A Centennial fundraising plan was approved by the Board of Governors in January 2010. A A total of $12,012 was donated by 91 alumni during the alumni annual giving campaign. The previous year $8,540 was donated. A Gifts in kind of more than $75,000 were received including $59,686 in instrumentation items. A More than $41,680 was raised by Lakeland to meet its requirement for the Alberta Opportunities Bursary program.
15
ANNUAL REPORT 2009-2010
A Sixty submissions were sent to funders for consideration. Lakeland was the recipient of four grants during the year, including one from the Government of Alberta Community Spirit Program and another from Alberta Foundation for the Arts.
Goal – Providing innovative programs
A Definition of alumni was finalized and expanded to include people not only from certificate, diploma and applied degree programs but also those who attended apprenticeship trades, academic upgrading, university transfer, and emergency services programs as well as program collaborations delivered by Lakeland and a partner institution.
Objectives for 2009-10
A During the year a revamped Alumni and Friends section was launched on the college website, an Alumni fan page was created on Facebook, and more than 2,500 alumni were sent the electronic newsletter Lakeland Link which is published biweekly from September to May. A The Alumni Association approved the formation of four new alumni chapters - Lloydminster Campus Chapter, Vermilion Campus Chapter, Trades Chapter, and Emergency Training Centre Chapter. 2. Ensure efficient and effective use of financial resources. Objectives for 2009-10 • Internally review each program and comprehensively review 10 programs. • Set targets for FLEs, retention, graduate satisfaction, graduate employment, cost per FLE and operational expenses. Analysis A Eight programs were comprehensively evaluated, and 46 annual program reviews were completed. Six programs were not reviewed because they were being discontinued, suspended or in final year of delivery. A Targets for FLEs are provided in annual business plan. Graduation target is that 85 per cent of people who start studies at Lakeland will graduate.
Initiatives 1. Relevant programs, focused curriculum.
• Internally review each program and comprehensively review 10 programs. • Identify new opportunities for innovative programming. • Collaborate with East Central Alberta Catholic Schools and Credenda Virtual High School to expand access to educational and training opportunities for students in rural areas. Dual credit courses will be developed and delivered to allow students in Grades 10 to 12 to take courses for credit outside of the current curriculum and career technology studies. • Survey employers to determine if they are satisfied with the preparation of Lakeland graduates. Analysis A An innovation project facilitator was hired in January 2010 to facilitate the dual-credit project. A Eight programs were comprehensively evaluated, and 46 annual program reviews were completed. Six programs were not reviewed because they were being discontinued, suspended or in final year of delivery. A schedule is in place that outlines what programs will be comprehensively evaluated each year between now and 2014-15. A A number of new programs were offered during the academic year including paramedic, emergency medical technician, health care aide and, in collaboration with the University of Calgary, bachelor of education: master of teaching after degree program. A Among the innovative programming ideas Academic Council approved exploring were sport science, gaming programming and educational theatre production. A An employer survey was completed in July 2009. A total of 176 businesses who have hired Lakeland graduates within the past three years participated in the study. Among the results:
J 98.9 per cent of employers would recommend Lakeland graduates to other employers.
16
J Asked the likelihood of hiring a Lakeland graduate in the future, 74.7 per cent report that they are very likely and 24.2 per cent report they are somewhat likely. J Employers were also asked to rate the importance of a variety of skills desired of graduates. Skills deemed to be the most important relate to interpersonal skills and work ethic.
2. On target. Objectives for 2009-10 • Conduct student and employer surveys. • Determine action plans for programs. Analysis A Participation in the About to Graduate student survey increased to approximately 50 per cent of eligible students, an increase from 45 per cent the previous year. Of the respondents, 94.1 per cent said they were satisfied with the accessibility of faculty in their program and 89.3 per cent said they would recommend their program to others. A A Graduate Outcome Survey was completed by the Government of Alberta. A total of 225 Lakeland graduates from the Class of 2008 participated in the survey. Among the results, 92.4 per cent reported being satisfied or very satisfied with the quality of teaching in their program and 92 per cent were satisfied or very satisfied with their Lakeland program. A An employer survey was completed in July 2009. See the previous page for results. 3. Modern technology. Objectives for 2009-10 • Complete transition to a wireless campus. • Upload information from the energy cabin to Lakeland’s website for use by the public and students in the online renewable energy and conservation program.
• Continue training faculty and staff to effectively use existing technology. Analysis A Transition to a wireless campus was completed in the summer of 2009. A Local weather reports and data from the energy cabin’s renewable energy systems are uploaded every 15 minutes so students can access information to complete assignments. A An innovation project facilitator was hired in January 2010 to facilitate a dual-credit project with East Central Alberta Catholic Schools and Credenda Virtual High School and also build the capacity of instructors in the use of technology. A Two SMARTBoards were purchased and installed at the Vermilion campus and SMARTSync, a classroom management software, was purchased and installed in all computer labs at both campuses. In June 2010, two SMARTBoard presentations were conducted. 4. Lifelong learning. Objectives for 2009-10 • Build relationships with community adult learning councils in Lakeland’s stewardship region. Analysis A Through a combination of individual and group meetings, Lakeland’s community liaison met three times with community adult learning councils in the region.
ANNUAL REPORT 2009-2010
17
Management’s Discussion and Analysis This Management Discussion and Analysis (MD&A) should be read in conjunction with Lakeland’s annual audited financial statements and accompanying notes. These statements are reviewed and approved by the Lakeland College Board Audit Committee then forwarded to the Lakeland College Board of Governors for approval. The financial statements have been prepared in accordance with Canadian generally accepted accounting principles. In the 2009-10 year, prior year numbers have been restated to coincide with the new pro-forma financial statements that are being adopted by all colleges and polytechnical institutions during the next few years. Lakeland budgeted a $3.1 million deficit for the 2009-10 year and reported an actual result of excess revenue of $235,600 over expenses. This variance is attributed to additional grants ($7.8 million), an increase in tuition and fees ($1 million) as well as additional sales of products and services ($800,000) revenue exceeding budgeted amounts. These additional revenues were offset by supplies and services expenses of $7.2 million relating to grant spending and renovations to the Vermilion residences. In comparison to the 2008-09 year, total revenue for 2009-10 increased by $5.8 million while expenditures increased by $6 million inclusive of the $3.4 million (2009 - $4.6 million) of renovation expenses related to the Vermilion residences. The revenue increase was mainly attributed to grants ($5.2 million), tuition & fees ($900,000) and a decrease of $300,000 in contract services in other revenue pertaining primarily to the fact that Lakeland did not rent farm land and thus did not have significant commodity sales in the 2009-10 year. The expense variance increases relate to salaries and benefits of $2.8 million due to negotiated contract increases and maintenance and repairs of $2.9 million which is offset by additional grant funds received and an increase in amortization expense of around $500,000 due to increased capital budget spending. The Management Discussion and Analysis provides an overview of the results Lakeland achieved in 2009-10 with a detailed discussion and analysis of the institution’s: 1. Business Planning and Management 2. Financial Information 3. Areas of Significant Financial Risk 4. Capital Projects 1 Business Planning and Management Lakeland’s four-year business plan provides the framework and direction for the institution’s teaching and service goals and objectives. Within this plan, Lakeland describes its operating environment - its opportunities and challenges - as well as the details of a strategic plan to ensure continued excellence in the years leading towards 2013. The strategic plan Future Directions - A Road Map Towards Our Next Century outlines what Lakeland must do to best serve students and the community while also wisely using public resources. The strategic plan contains six goals each with corresponding objectives, initiatives and performance measures that are brought to life through a team of key leaders who have been assembled in a group called the Strategic Planning Action Committee (SPAC). This committee has been broken down into six sub-groups with each group spearheading the development of one of the six strategic objectives. The SPAC meets quarterly to review and share progress, update objectives and develop further necessary initiatives that will ensure Lakeland’s strategic plan is being realized. Details of the performance management in relation to the strategic plan are included in the above section.
18 2 Financial information Revenues Total revenues increased about 10 per cent from $62 million in 2008-09 to $68 million in 2009-10. The following table details Lakeland’s revenue sources as presented in the audited financial statements. Revenue By Source
2007-08
2008-09
2009-10
Grants $ Tuition and related fees Sales of services & products Amortization of deferred capital contributions Contract & other revenue Investment income Donations
32,449,903 $ 10,304,775 5,361,073 2,578,117 4,594,446 1,060,282 241,548
36,821,751 $ 10,746,780 5,003,897 3,292,462 4,982,845 877,119 212,650
42,033,116 11,688,823 5,266,339 3,386,572 4,473,118 654,848 229,407
Total revenue
56,590,144 $
61,937,504 $
67,732,223
$
Government grants Grant revenue represented about 62 per cent of Lakeland’s total revenue in 2009-10 (59 per cent - 2009), an increase of $5.2 million or 14 per cent from the previous year. Grants received from Advanced Education and Technology include base operations grants of $30.1 million (2008-09 - $28.1 million), conditional grants of $7.3 million (2008-09 - $4.2 million), as well as enrolment planning funding of $3.4 million (2009 - $3.3 million). Conditional funding received from the Government of Saskatchewan totaled approximately $1.2 million in 2009-10, a slight decrease from the $1.3 million received the previous year. The remaining increase is attributed to a slight increase in federal grants. The base operations grants increase of $2 million is made up of the six per cent budgeted increase of $1.7 million and $300,000 for the paramedic course being offered in Camrose. Conditional grants increased by $3.1 million relating primarily to infrastructure spending as infrastructure and KIP funded projects progressed rapidly throughout the year. In addition, $11.4 million (2009- $12.7 million) in infrastructure grants and federal government’s Knowledge Infrastructure Program (KIP) grants that were received in or carried forward during the 2009-10 year were not spent as of June 30, 2010. This money will be utilized for projects in future periods. Tuition Tuition revenue increased $942,043 (2008-09 - $440,000) which is comprised of a significant increase in credit tuition fee revenue along with a decrease in non-credit programming tuition revenue. As in 2009, the credit tuition increased by more than $1 million. This figure corresponds with the 2.3 per cent increase from the previous year in full load equivalents (FLEs). In addition, credit tuition fees were increased by the maximum allowable amount of 3.1 per cent (2008-09 - 4.6 per cent) for existing programs. Diploma programs accounted for the largest portion of the FLE jump showing a 13.8 per cent increase which accounts for 36 per cent of Lakeland’s FLE count. Certificates showed an 8.9 per cent increase over the prior year and now make up 24 per cent of the FLE count. These significant increases helped to offset the decrease in trades seats (44 FLEs less) for the 2009-10 year. Amortization of deferred capital contributions Amortization of deferred capital contributions remained steady at approximately $3.3 million.
19
ANNUAL REPORT 2009-2010
Investment income Lakeland’s total investment income decreased $200,000 to $1.4 million in 2009-10 (see Note 16 of the audited financial statements). A significant portion of this investment income relates to unspent grant funds. The investment income received from these funds was allocated to deferred contributions and deferred capital contributions as opposed to being reflected as investment income on the statement of operations. This is why investment income as reported in the statement of operations is $655,000 which is down $222,000 from the previous year. This decline in investment income is a result of the continued volatility and weakening of the investment markets in 2009-10 due to the current economic climate. Expenses Total expenses increased from $61.5 million in 2008-09 to $67.5 million in 2009-10, an increase of 9.8 per cent. Of this amount, $2.8 million was directly related to salaries and benefits and the remainder relates to the additional repairs and maintenance projects that were ongoing during the year. Expense by source
2007-08
2008-09
2009-10
Salaries and benefits $ Repairs and maintenance Materials, supplies and services Cost of goods sold Amortization of capital assets Utilities Severance payments Scholarships and bursaries Loss (gain) on disposal of assets Total expenses
29,268,210 $ 5,631,438 8,345,512 1,885,043 4,731,510 1,841,927 124,345 366,505 48,826 52,243,316
31,778,421 $ 10,319,144 9,408,639 1,953,613 5,496,614 2,179,431 - 355,405 9,778 61,501,045
34,598,928 13,704,655 8,960,676 1,920,098 6,007,186 1,847,245 - 448,532 9,303 67,496,623
Salaries and benefits As shown in the Expense by Source table, salaries and benefits account for, on average, approximately 51 per cent (2009 54 per cent) of the total expenditure budget. In both 2008-09 and 2009-10 this expense line increased by about nine per cent over the previous year which is a result of hiring additional employees to accommodate the enrolment increase experienced in this same time period along with negotiated contact settlement increases. Repairs and maintenance In 2010, repairs and maintenance expenses were about $13.7 million which is up from the previous year by approximately $3.4 million. Although Lakeland spent $1.2 million less on residence renovations in 2009-10 ($3.4 million) than it did in 200809 ($4.6 million), spending on other infrastructure projects caused the net increase in spending. Some of these projects were the fire alarm upgrade, security upgrade, applied engineering upgrade and trades mezzanine upgrade. Amortization of capital assets Amortization expense increased by $500,000 from 2008-09 to 2009-10. This increase is attributed to an increased investment in computer and information technology assets which are written off faster than other equipment-type assets. Net assets
20 Lakeland’s net asset balance at the end of 2009-10 was $30.1 million (2009 - $28.9 million) which is an increase of $1.2 million. The net asset balance is reported in four major categories: Endowments: The endowment balance increased by $1.6 million in 2009-10 for an end balance of $3.9 million. This increase is attributed to a $1 million transfer from Lakeland’s unrestricted net assets as well as the $600,000 Government of Alberta Renaissance Grant received during the year that was deposited to the endowment account. Unrestricted: Lakeland’s unrestricted net assets balance increased $2.3 million to $3.6 million. This change included a transfer of $1 million from unrestricted into endowments pertaining to the Centennial fundraising endowment program and a $374,000 transfer into the restricted swimming pool appropriation that is held jointly with the Town of Vermilion. Further decreases can be attributed to the net investment in capital assets of $638,000. This decline is offset by a surplus of $237,000 and the recovery of the unrealized loss on investments of $313,000 (2008-09 loss $724,000) as detailed in Note 9 of the financial statements. In addition, $3.8 million of the spending reported in the financial statements was related to items that Lakeland had restricted funds to offset the impact. $3.4 million was related to residence renovations and the remaining $382,000 related to swimming pool repairs and maintenance work performed in 2009-10. The remaining increase in unrestricted funds pertains to appropriations held with the Town of Vermilion regarding the joint operation of the swimming pool and with Alberta Environment regarding the pesticides program Lakeland runs with them. Internally restricted: Internally restricted net assets represent amounts Lakeland set aside for specific purposes. These amounts are not available without board approval. The balance decreased by $3.4 million to $8 million (2009-11.4 million) in 2009-10 which demonstrates the spending of the appropriated money during the year, particularly the $3.4 million that was spent on residence renovations. Invested in capital assets: The portion of net assets invested in capital assets increased $600,000 from $14 million in 2008-09 to $14.6 in 2009-10. This change represents Lakeland’s investment in capital as detailed in Note 11 of the financial statements. Investments The cash, short term investment and cash equivalents balance at June 30, 2010 was $24.3 million which shows an increase of $5.4 million from the previous year. This increase is due primarily to the expected short-term spending requirements relating to the KIP, capital and infrastructure grants from the Government of Alberta that were not expended at June 30, 2010. The long-term investment balance decreased by $8.8 million which reflects the spending that has taken place related to the KIP, capital and infrastructure grants at June 30, 2010. Also included in this is the unrealized investment loss on these long term investments in the amount of $244,000 (2009 - $724,000) as disclosed in Note 4 of the financial statements. Lakeland has elected to record its investments utilizing the available for sale method whereby gains or losses in investments are disclosed in the investment section of the statement of financial position and in the net assets or deferred contributions until the asset is removed from the statement of financial position. The first quarter of 2010 showed a remarkable recovery in the investment markets with the majority of the $244,000 unrealized loss being recovered as of Sept. 30, 2010. 3 Areas of significant financial risk Budgetary pressure Lakeland’s budget process is under significant pressure from a number of factors including:
J There are no forecasted operating grant increases for the next two or three years. As a result, any negotiated salaries will be in excess of funding increases.
J The tuition policy limits tuition to rates below internal inflation rates.
ANNUAL REPORT 2009-2010
21
Lakeland remains committed to addressing these budgetary pressures and will work closely with the government to develop long-term strategies to ensure that it can continue to deliver on its mandate and successfully implement its strategic plan. 4 Capital projects In 2009-10, Lakeland spent $3.3 million (2008-09 - $3 million) on computer hardware, computer software, vehicles, equipment, furnishings, and library additions. In addition, $3.9 million (2009 - $747,000) was spent on project items that were not completed at year end. Phase I of the Trades Centre Mezzanine development was completed in October 2009 and phase II began and, by June 30, 2010, was on schedule for fall completion. Construction of a new student activity centre began in spring 2010 and residence renovations at the Vermilion campus continued. It’s anticipated that the last two residence buildings requiring modernization will be completed in 2011. At the Lloydminster campus work began on a child development centre that will also serve as a living lab for college programs. A mini water treatment facility was ordered and will be delivered to the emergency training centre in the summer of 2010.
22 Donors Lakeland College thanks the many people and organizations who made a donation to the college between July 1, 2009 and June 30, 2010. Our thanks also to the many donors who chose to make their contribution anonymously. Our apologies to anyone whose name we may have inadvertently missed. 1322115 Alberta Ltd. 594720 Saskatchewan Ltd. Agland Agriculture Financial Services Corporation Alberta Agriculture and Rural Development Alberta Assessors’ Association Alberta Assoc. of Fire Service Instructors Alberta Blue Cross Alberta Branch Canadian Seed Growers Association (1993) Alberta Institute of Agrologists Mark & Kristine Alexander Allan’s Backhoe Service Ltd Ken Allen Phil & Denise Allen AMIK Oilfield Equipment Rentals Andres Insurance Brokers Angus Acres Animal Nutrition Association of Canada Apple Drugs (Vermilion) Aramark Canada Ltd. Wilfred & Lois Aspenes Associated Engineering Alberta Ltd. ATB Financial ATCO Electric ATCO Gas Marion & Ken Atkinson AUPE Local 071 Chapter 4 Godfrey Bachman Baddock’s Power Products Ltd. Laura Baker Fred Bamber
Susan & Randolph Bardoel Barrhill Farms Ltd. Ron & Frances Bates Kevin & Rolanda Beaudette Jo Berglund Bert Duncan Trailer Sales Alf Bexfield Gary Biensch M. Guy Binette Blairs Fertilizer Ltd Bluebird Truck Service Ltd. Bill & Phyllis Bocock John & Jenny Bocock Terry Bocock Charlene Bonnar Katie Booth Lonnie Boothman Border City Building Centre Ltd. Brandon Support Services Brenda Brautigam Gerald Breithaupt Brian D. Larson Consulting Inc. Bridge City Production Alberta Inc. Larry & Barbara Bright Lenora Brown Robert Brown Bry Sand Ice Arena Ltd. Bykowski Sand and Gravel Inc. Jack & Dorothy Cage Robert Cameron Canadian Association of Petroleum Producers Canadian Emergency Preparedness Association Canadian Forestry Service Canadian Heavy Oil Association Canadian National Railways
Canadian Prairie & Northern Section of the Air & Waste Management Association Deanna Carter Alan & Joyce Cayford Mert & Joan Cayford Joanne & Glenn Charlesworth Stanley Chevraux Child and Youth Care Association James & Irene Christensen Vivianne & Allen Christensen Classic Oilfield Service Ltd. Murray Coburn Coca Cola Bottling Joy Collinge Convergint Technologies Hal & Sheila Coulter County of Vermilion River David Cowan Craig’s Vermilion Ltd. Denis & Nancy Cunninghame Robert & Perla Cuny Mary Daigneault Danco Equipment (2009) Inc. Steve Danychuk Darmac Appraisals Ltd. Daromascenter Darox Trucking Rosabelle Daugela Devon Canada Corporation Sarah Dewing Dr. Jason & Heather Dewling Kelsey Dey Doreen Dicke Bliss Dickson
Doc Holiday’s Charters Ltd. Lorena Donkin Dr. Alex J. Stewart Dot Drury Barry & Elaine Duchereer Jeff Dustow E & D Enterprises Eagle Valley Industries Ltd. Eastalta Co-op Ltd. Edmonton Regional Airports Authority Evolution Oilfield Services Danny & Rhonda Farkash Farm Credit Canada Farm House Inn Inc Robert Fedun Ferbey Sand and Gravel Ltd. Raymond & Christine Ference Terri Ferguson Valeria Ferguson Randy Fines Evelyn Finner Firemaster Oilfield Services Inc. Karen Firlotte Ron Fischer G. L. Fleenor Focus Fountain Tire Jim Fowler Fowler Seeds Ltd. Franks Saddlery & Supply Ltd Fringe Benefits Frontier Peterbilt Sales Ltd. Fulkerth Services Ltd Frank Gannon Troy Gartner Gerry & Marlene Gazdewich
23
ANNUAL REPORT 2009-2010
Mr. Robert M Gehl Donna Gehlert Bill & Shannon Gerling Colleen Gerling Ed & June Gerling Darcy Geseron James & Twyla Gibson Ron & Shirley Goeglein Gordon Goertzen Roy Goodwin Marie Goodwin Allan & Elouise Gordeyko Elaine Gottfried Grab “N” Go Foods Evert Gristwood Grit Industries Inc. Groves’ Drugs Ltd. Kimberley Grykuliak Doug & Laurie Haaland William & Roberta Hamblin Hanna Value Drug Mart John Hardes Pat Harris Mary Harrish Leslie & Ruth Head Heavy Crude Hauling Russ Hebblethwaite/ Envirovault Michael Hendry Raymond Herbert Hillsask Farm Allen & Ellen Hirsch Dennis Hobman Betty & Henry Hofs Ron & Bernice Hohol Hunter Charolais Husky Energy Inc. Alfred Hutchinson Ideal Office Solutions Ikon Office Solutions Imperial Oil Esso David & Lesslie Ingledew Interior Designers of Alberta Interior Specialist Lloyd Ltd
Ireland Farm Equipment Ltd Carol Jaap Klass Jacco Contracting Ltd. Clayton & Connie Jackson Jen-Col Construction Ltd. Walter T. Jenkins Harvey Jessup Albert Journault Vic & Ann Juba Kalahari Management Inc. Kasian Architecture Interior Design & Planning Ltd. Kelvington RX Pharma Choice Andrea Ketchum Manju Kilam Cecil King Donelda & Denis Kipling Kramerica Restaurant Group Inc. Glenn Kratchmer Carrie Krips Peter & Eleanore Krokosh Deanna Krys John Kubin KUDU Industries Inc Lakeland College Ag Tour Club Lakeland College Staff Association Lakeland College Stockmans Club Lakeland College Students’ Association Lakeland Ford Sales Ltd. Judith Lamothe Lange’s Country Meats Darrell Lanson Lash Enterprises Management Brad & Darlene Laurenceson Leckie and Associates Lee J. Moneo Professional Corporation Legacy Building Contractors Inc.
Darcy Leibel Robert & Janet Lemay Brian & Celine Linfoot Lions Club Lloydminster Susan & Richard Lisitza Little’s Ranching Co Ltd. Frances Litzenberger Lloydminster Animal Hospital Lloydminster Chamber of Commerce LLV Farms Ltd. Marjorie Locke Richard Lohouse Susan Long Matt Loree Mark Lovberg & Becky Lins Kathy & Orville Lovell Dwayne & Deb Lundquist Ronald Lyke Michelle Lyster Cathy & Steve MacKenzie Maurice & Heather MacMillan Lee MacMillan Tom Makepeace Russel Manary Mannville Truckwash Marsh Canada Limited May Theatres (1984) Limited Richard & Joyce McBain Barry & Beverly McCarty Norman & Kathleen McClellan Mrs. A. M. McConnell Gregory McCormick The McCullough Family Arthur & Gladys McGinnis Jean McGuckin William & Theresa McIldoon Kirk McInroy Alister & Lorna McKenzie Ross & Christina McKerchar
Reg McLean Ina McLean-Lawrence June & Don McMillan George & Ivy McMillan McMinis & Company Albert Melnyk Brian & Andrea Melnyk Meyers Norris Penny LLP Midwest Furniture & Appliance Robert & Sylvia Milne Misty Hills Charolais Ltd. Douglas Moeckl Roland Moneta Delia Morgan Isabelle Moses Hartmann Nagel Rachel & Bernard Navrot Dave & Debbie Neigum Robert Nelson Nelson Environmental Remediation Ltd. Kathy Nemeth Newcap Broadcasting Norac Exploration Ltd. Noralta Technologies Inc. Northeast Chapter ECAA Cam & Joann Nutbrown Simone & Mike Odynski Chris Olsen Tony & Christina Orr Margaret Page Keith R. Passey Carson & Tara Patmore William & Barb Pattison Larry & Norma Paul Peace Island Tours Logan Peat Pembina Pipeline Corporation Perkins Farms Inc. Perma Earth Consulting Ltd. Margaret & Don Peterson Petro-Canada Pic Investment Group Inc.
24 Louise & Herb Plain Wendy Plandowski Nick Porozni Poundmaker Pork Farm Inc. Norman Powers Kerry Price Diane Priest Margaret Purcell Everett Putnam John A. Quick R. J. Nelson Family Foundation Ranch and Feedlot Rider Club Randall Farms Ltd. Red Deer Earthworks Redcliff Realty Management Inc. Redhead Equipment Ltd. Reinhart Property Management Ltd. Road Runner Water Hauling Ltd. Stephen & Janie Rock Alan Rogan Betty Rost The Rotary Club of Lloydminster Rotary Club of Vermilion Ruby & Ted Rowley Royal Bank of Canada Royal Canadian Legion Royal Canadian Legion Branch 39 Royal Canadian Legion, Alberta-NWT Command Trisha & Shaun Rue Graeme & Marilyn Russell Don & Darlene Rutherford Paul & Lynn Rutherford Ry-Lene Consulting Ltd. Sakewew High School Junior Chief and Counsel SAMA Sand Control Systems Ltd. Judy Sarsons
Sask Assoc. of Veterinary Technologists Inc. Saskatchewan Association for Community Living Inc. Agnes Schmidt Scotiabank Tamina Scott Hazel & James Scott Olga Seniuk Servus Credit Union Lazard Shyry Jillian Sippola Skyline Refrigeration Ltd. Lynn Smith Lloyd G. Smith Stuart Snydmiller Petroleum Society of CIM Solstice Canada Corp Sonrise Farms Ltd. Judie Spark Spartan Controls Wylie & Lesley Stafford Joyce Stewart Sylvester & Lily Stover Dave & Dixie Stumpf Subway Lois Sugai Colleen Symes Synergy Credit Union Tarpon Energy TD Insurance Meloche Monnex Glen Teasdale The Calgary Foundation The Bea Fisher Centre Inc. The Canadian Wheat Board Glen & Maureen Snelgrove Christine Thiessen Dianne Thorel Delmer Tieber Tourism Saskatchewan Town of Vermilion Town Of Westlock Ellis & Donna Treffry TriLand Holdings Ltd.
Ralph Troschke Wayne & Geri Tuck Dennis Turner Tuscany Grill Twin D Plumbing and Heating Ltd. UCG Universal Consulting Group Uncle Jed’s Oilfield Services Ltd. United Farmers of Alberta Used Book Store F. Van Der Hoorn Josie Van Lent Gerald & Linda Van Ruskenveld Norman & Margaret Vaudan Keith Veikle Daniel & Treva Veilleux Leonard Velichka David & Dawn Veltikold Veracity Financial Services Roman & Dorothea Verchomin Vermilion & District Chamber of Commerce Vermilion Agricultural Society Vermilion Credit Union Ltd. Vermilion Golf & Country Club Vermilion Jr. B. Tigers Vermilion Ready Mix Concrete Vermilion Truck Wash Vista Radio Ltd. Viterra Diane Davies & Doug Vokins Wabamun Lakeside Liquor Ltd. Ross & Eleanor Wallace Rocky Wallbaum George B Wardner Weatherford Canada Partnership Webb’s Ford Ltd.
Weinmeier Farms Weir Veterinary Services Ltd. Betty Welter Linda Werklund Terry West Bernie Whitten Wholesale Fire & Rescue Ltd. Arthur & Michelle Wilkes Wilkinson Livingston Stevens LLP Kevin Williams Shirley A. Williams Arden & Olga Wingrove Wisdom Home Schooling Albert Wolthuis Wayne Woodley Melanie & Miles Wowk XL Kitchen and Bath Design Inc. Orest & Patricia Yackimec John Zales Ed & Laura Zatorski Jo-Anne Zawadiuk
25
ANNUAL REPORT 2009-2010
Auditor’s report
To the Board of Governors of Lakeland College I have audited the statements of financial position of Lakeland College as at June 30, 2010 and 2009 and the statements of operations, changes in net assets and cash flows for the years then ended. These financial statements are the responsibility of the College’s management. My responsibility is to express an opinion on these financial statements based on my audits. I conducted my audits in accordance with Canadian generally accepted auditing standards. Those standards require that I plan and perform an audit to obtain reasonable assurance whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. In my opinion, these financial statements present fairly, in all material respects, the financial position of the College as at June 30, 2010 and 2009 and the results of its operations and its cash flows for the years then ended in accordance with Canadian generally accepted accounting principles. [Original signed by Merwan N. Saher] CA Auditor General Edmonton, Alberta October 27, 2010
26 Statement of financial position as at June 30
2010 2009 ASSETS Current Cash and cash equivalents (note 3) $ Short-term investments (note 4) Accounts receivable Inventories and prepaid expenses
17,987,977 $ 6,389,499 2,133,636 1,824,480
14,261,158 4,677,718 2,567,917 1,520,558
28,335,592 23,027,351 Long-term investments (note 4) Other long-term assets Capital assets (Note 5)
15,189,268 9,190 66,186,102
$ 109,720,152
LIABILITIES AND NET ASSETS Current Liabilities Accrued vacation pay $ Accounts payable and accrued liabilities Current portion of long-term liabilities (note 6) Deferred revenue
24,028,866 9,190 65,766,338
$ 112,831,745
2,485,298 $ 6,545,701 607,462 2,859,124
2,366,855 6,136,989 607,462 2,277,376
12,497,585
11,388,682
Long-term liabilities (note 6) Deferred contributions (note 7) Deferred capital contributions (note 7) Unamortized deferred capital contributions (note 8)
2,330,698 12,978,064 3,179,027 48,606,781
2,869,470 14,957,119 6,400,030 48,286,210
79,592,155
83,901,512
Net assets Unrestricted Accumulated excess of revenue over expenses Accumulated net unrealized gain (loss) on investments (note 9) Internally restricted (note 10) Investment in capital assets (note 11) Endowments (note 12)
3,962,863 (410,664) 8,023,502 14,641,161 3,911,135
1,991,243 (723,626) 11,397,486 14,003,197 2,261,933
30,127,997
28,930,233
$ Contingent liabilities and contractual obligations (note 13 and 14) The accompanying notes are part of these financial statements.
Doug Elliott Chair, Board of Governors Signed on behalf of the Board of Governors.
Glenn Charlesworth President
109,720,152
$
112,831,745
27
ANNUAL REPORT 2009-2010
STATEMENT OF operations For the year ended June 30
2010 2009
Budget Actual Actual
Revenue
(note 15)
Government of Alberta grants $ 33,193,113 $ 40,847,025 $ 35,507,052 Federal and other government grants 1,083,222 1,186,091 1,314,699 Student tuition and fees 10,686,884 11,688,823 10,746,780 Sales of services and products 4,466,969 5,266,339 5,003,897 Contract and other revenue 3,917,819 4,473,118 4,982,845 Amortization of deferred capital contributions (note 8) 2,650,000 3,386,572 3,292,462 Investment income (note 16) 410,004 654,848 877,119 Donations and other contributions 259,882 229,407 212,650 $ 56,667,893 $ 67,732,223 $ 61,937,504
Expense Salaries and benefits (note 18) $ 34,998,337 $ 34,598,928 $ 31,778,421 Material, supplies and services 8,487,240 8,960,676 9,408,639 Cost of goods sold 1,563,011 1,920,098 1,953,613 Amortization of capital assets 4,972,800 6,007,186 5,496,614 Maintenance and repairs 6,993,028 13,704,655 10,319,144 Utilities 2,338,329 1,847,245 2,179,431 Scholarships, bursaries and awards 415,148 448,532 355,405 Loss on disposal of assets 9,303 9,778
$ 59,767,893
$ 67,496,623
$ 61,501,045
Excess of revenue over expenses $ (3,100,000) $ 235,600 $ 436,459 The accompanying notes are part of these financial statements.
28 STATEMENT of changes in net assets For the year ended June 30
Unrestricted Net Assets Accumulated Accumulated Excess Net (Deficiency) Unrealized Internally Investment of Revenue Gain (Loss) Restricted in Capital Over Expenses on Investments Net Assets Assets Endowments
(note 9)
(note 10)
(note 11)
Total
(note 12)
Net Assets JUNE 30, 2010 $ 3,962,863 $ (410,664) $ 8,023,502 $ 14,641,161 $ 3,911,135 $30,127,997 Excess (deficiency) of revenue over expense 235,600 235,600 Investment income (loss) 312,962 312,962 Endowment contributions 649,202 649,202 Transfers (1,406,573) 406,573 1,000,000 Net investment in capital assets (637,964) 637,964 Expenditures of internally restricted net assets 3,780,557 (3,780,557)
Net Assets JUNE 30, 2009 $ 1,991,243 $ (723,626) $ 11,397,486 $ 14,003,197 $ 2,261,933 $ 28,930,233 Excess (deficiency) of revenue over expense 436,459 436,459 Investment income (loss) (1,119,919) (1,119,919) Endowment contributions 331,275 331,275 Transfers (15,850,855) 15,850,855 Net investment in capital assets (677,396) 677,396 Expenditures of internally restricted net assets 4,573,914 (4,573,914) -
Net Assets JUNE 30, 2008
$ 13,509,121 $
396,293 $
120,545 $ 13,325,801 $ 1,930,658 $ 29,282,418
29
ANNUAL REPORT 2009-2010
STATEMENT OF cash flows For the year ended June 30
2010 2009 CASH PROVIDED FROM OPERATING ACTIVITIES Excess (deficiency) of revenue over expense
$
235,600
$
436,459
Add (deduct) non-cash items: Amortization of capital assets Amortization of deferred capital contributions Loss on disposal of capital assets
6,007,186 (3,386,572) 9,303
5,496,614 (3,292,462) 9,778
Total non-cash items
2,629,917
2,213,930
Net change in non-cash working capital (*)
(2,451,574)
15,381,344
CASH PROVIDED FROM (USED IN) INVESTING ACTIVITIES Purchases of capital assets, net of proceeds from disposals Purchases of long-term investments, net of sales CASH PROVIDED FROM (USED IN) FINANCING ACTIVITIES Endowment contributions Capital contributions Long-term liabilities - new financing, net of repayments
413,943 18,031,733
(6,253,139) 9,152,560
(6,581,396) (12,067,655)
2,899,421 (18,649,051)
649,202 303,025 (538,772) 413,455
331,275 2,133,457 (519,781) 1,944,951
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
3,726,819
1,327,633
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR
14,261,158
12,933,525
$
17,987,977
$
14,261,158
$
17,987,977
$
14,261,158
CASH AND CASH EQUIVALENTS, END OF YEAR (note 3) Cash and cash equivalents consists of:
Cash and cash equivalents
(*) Net change in non-cash working capital: (Increase) decrease in short-term investments $ (1,711,781) $ 79,370 Decrease (increase) in accounts receivable 434,281 (377,420) Increase in inventories and prepaid expenses (303,922) (120,235) Increase in patronage dividends receivable - 4,334 Increase in accounts payable and accrued liabilities 527,155 2,269,096 (Decrease) increase in deferred contributions (1,979,055) 13,279,360 (Decrease) increase in deferred revenue 581,748 246,839
$ (2,451,574)
$ 15,381,344
30 NOtes to the financial statements For the year ended June 30, 2010 1 Authority and Purpose The Board of Governors of Lakeland College is a corporation which manages and operates Lakeland College (“the College”) under the Post-Secondary Learning Act (Alberta). All members of the board of governors are appointed by either the Lieutenant Governor in Council or the Minister of Advanced Education and Technology, with the exception of the President, who is an ex officio member. Under the Post-secondary Learning Act, Campus Alberta Sector Regulation, the College is a comprehensive community institution offering diploma and certificate programs as well as a full range of continuing education programs and activities. The College is a registered charity, and under section 149 of the Income Tax Act (Canada), is exempt from the payment of income tax. 2 Summary of Significant Accounting Policies and Reporting Practices a) General - GAAP and Use of Estimates These financial statements have been prepared in accordance with Canadian generally accepted accounting principles, known as GAAP. The measurement of certain assets and liabilities is contingent upon future events; therefore, the preparation of these financial statements requires the use of estimates, which may vary from actual results. College management uses judgment to determine such estimates with amortization of capital assets being the most significant item based on these estimates. In management’s opinion, the resulting estimates are within reasonable limits of materiality and are in accordance with the significant accounting policies summarized below. These significant accounting policies are presented to assist the reader in evaluating these financial statements and, together with the following notes, should be considered an integral part of the financial statements. b) Financial Instruments The College’s financial assets and liabilities are generally classified and measured as follows: Financial Statement Component
Classification
Measurement
Cash and cash equivalents Investments Accounts receivable Other long-term assets Accounts payable and accrued liabilities Long-term liabilities
Available for sale Available for sale Loans and receivables Loans and receivables Other liabilities Other liabilities
Fair value Fair value Cost Amortized cost Cost Amortized cost
The College does not use hedge accounting and accordingly, is not impacted by the requirement of Section 3865. As permitted for Not-for-Profit Organizations, the College has elected not to apply the standards on embedded derivatives in non financial contracts, and has elected to continue to follow Section 3861: Disclosure and Presentation. Financial instruments are exposed to credit risk, interest rate risk, foreign exchange risk, market risk, commodity price risk, and liquidity risk. Each of these risks are managed through the College’s collection procedures, investment guidelines, banking arrangements and other internal policies, guidelines and procedures. Fixed income and marketable equity securities are classified as available-for-sale (investments held for long-term capital appreciation and generation of income), and are measured at fair value at each reporting date. The College utilizes settlementdate accounting for all purchases and sales of financial assets in its investment portfolio. Fixed income securities are initially recognized at acquisition cost (purchase price plus transaction costs), which reflects any premium or discount at date of purchase, and carried at fair value. Marketable equity securities are also initially recognized at acquisition cost, and subsequently measured at fair value as per quoted market prices.
31
ANNUAL REPORT 2009-2010
Financial assets classified as available-for-sale are measured at fair value with changes in fair values recognized in the Statement of Changes in Net Assets or deferred contributions as appropriate until realized, at which time the cumulative changes in fair value are recognized in the Statement of Operations. The College will consider recording investment losses at such time it is determined that the loss is other than temporary or when it is management’s intention to trade or liquidate the security. c) Inventories Livestock inventory is recorded at net realizable value. All other inventories are valued at the lower of cost and net realizable value. d) Capital Assets Purchased capital assets are recorded at cost with at capitalization threshold of $1,000. Donated assets are recorded at their fair value when donated. Capital assets, once placed in to service, are amortized on a straight-line basis over the following estimated average useful lives: Buildings, leasehold and site improvements Furniture, equipment and library Vehicles, equipment, computers and telecommunication
3 - 40 years 10 years 5 years
e) Asset Retirement Obligations The fair value of a liability for an asset retirement obligation is recognized in the period incurred, if a reasonable estimate of fair value based on the present value of estimated future cash flows can be made. The associated asset retirement costs are capitalized as part of the carrying amount of the asset and amortized over its estimated useful life. There were no such adjustments in the 2010 year. f) Revenue Recognition Operating grants are recognized in the period when receivable. Operating grants received for a future period are deferred until that future period and are reported as deferred contributions. Amounts received for tuition fees and contract programs and sales, rentals and services are recognized as revenue in the period the goods are delivered or the services are provided. Contributions, including investment income on the contributions, which are restricted for purposes other than endowment or capital asset acquisitions, are deferred and recognized as revenue when the conditions of the contribution are met. Contributions to acquire capital assets with limited lives are first recorded as deferred capital contributions when received, and when expended they are transferred to unamortized deferred capital contributions and amortized to revenue over the useful lives of the related assets. Endowment contributions are recognized as direct increases in endowment net assets. Investment earnings, under agreements with benefactors or the Post-Secondary Learning Act allocated to endowment principal, are also recognized as direct increases in endowment net assets. Endowment investment earnings that are allocated for spending are deferred and recognized as revenue when the conditions of the endowment are met. The College recognizes dividend and interest revenue as earned, and investment gains and losses when realized. Realized gains and losses represent the difference between the amounts recognized through sales of investments and their respective cost base, as well as the amounts provided for as a write-down due to impairment. Unrealized gains and losses on available-for-sale securities attributed to endowment net assets are recorded in deferred contributions. Unrealized gains and losses on availablefor-sale securities attributed to other net assets are recorded in the Statement of Changes in Net Assets, and are recognized in the Statement of Operations when realized.
32 Unrestricted cash donations are recognized as revenue when they are received. Donations of materials and services that would otherwise have been purchased are recorded at fair value when a fair value can be reasonably determined. g) Foreign Currency Translation Financial assets and liabilities recorded in foreign currencies are translated to Canadian dollars at the year-end exchange rate. Revenues and expenses are translated at average weekly exchange rates. Gains or losses from these translations are included in investment income. h) Employee Future Benefits The College participates with other employers in the Local Authorities Pension Plan (LAPP). This pension plan is a multiemployer defined benefit pension plan that provides pensions for the College’s participating employees based on years of service and earnings. The College does not have sufficient plan information on the LAPP to follow the standards for defined benefit accounting, and therefore follows the standards for defined contribution accounting. Accordingly, pension expense recorded for the LAPP is comprised of employer contributions to the plan that are required for its employees during the year; which are calculated based on actuarially pre-determined amounts that are expected to provide the plan’s future benefits. i) Capital Disclosures The College defines its capital as the amounts included in deferred contributions (note 7), endowments (note 12) and unrestricted net assets. The College’s capital created by funding from Alberta Advanced Education and Technology, other government funding agencies, donations and the Institute’s entrepreneurial activities. The College has investment policies (note 4), spending policies, and cash management procedures to ensure the College can meet its capital obligations. Under the Post-Secondary Learning Act, the College must receive ministerial or Lieutenant Governor in council approval for a deficit budget, mortgage and debenture borrowing and the sale of any land, other than donated land, that is hereby held by and being used for the purpose of the College. j) Contributed Services Volunteers as well as members of the staff of the College contribute an indeterminable number of hours per year to assist the institution in carrying out its mission. Such contributed services are not recognized in these financial statements. 3 Cash and Cash Equivalents Cash and cash equivalents, with a maximum maturity to 90 days as at purchase are as follows:
2010 2009
Cash $ 1,093,864 $ 5,758,093 Money market funds and guaranteed investment certificates 16,894,113 8,503,065
$ 17,987,977
$ 14,261,158
33
ANNUAL REPORT 2009-2010
4 Investments As at June 30th, the composition and fair value on investments are as follows: 2010 2009
Cost Base
Unrealized Gain (Loss) Market Value Cost Base
Unrealized Gain (Loss)
Market Value
Money market funds and guaranteed investment certificates $ 13,166,533 $ Canadian bonds 3,749,742 Canadian equity 1,653,266 Foreign equity 3,132,771 Other 121,339
187,956 $ 13,354,490 $ 20,333,371 $ 63,724 3,813,466 3,117,729 (46,637) 1,606,629 1,643,775 (448,240) 2,684,531 3,854,084 (1,688) 119,651 362,023
159,244 $ 20,492,615 (14,920) 3,102,809 (169,584) 1,474,191 (581,981) 3,272,103 2,843 364,866
(244,885) $ 21,578,767 $ 29,310,983 $
(604,398) $ 28,706,584
$ 21,823,651 $
Short-term investments Endowments 4,303,719 165,779 4,469,499 2,518,490 119,228 2,637,718 Long-term debt 1,920,000 - 1,920,000 2,040,000 - 2,040,000
4,558,490
119,228 4,677,718
Long-term investments 15,599,932
(410,664) 15,189,268 24,752,492
(723,626) 24,028,866
(244,885) $ 21,578,767 $ 29,310,983 $
(604,398) $ 28,706,584
6,223,719
$ 21,823,651 $
165,779
6,389,499
Terms to maturity of fixed income investments and annual market yield are as follows: - Money market funds, short-term notes, and treasury bills. - Canadian government and corporate bonds. The College’s investment strategy is to meet expenditure requirements within one year, investing such funds in liquid investments. The balance of funds are invested for a longer term with a mix of maturities between 1-10 years. Pooled Bond Funds have an average effective yield of 3.10% (in 2009, 3.67%) and weighted average term to maturity of more than one year. The College has policies and procedures in place governing asset mix, diversification, exposure limits, credit quality and performance measurement. The College’s Finance Committee, a subcommittee of the Board of Governors, has delegated authority for oversight of the College’s investments. The Finance Committee meets regularly to monitor investments, to review investment manager performance, to ensure compliance with the College’s investment policies and to evaluate the continued appropriateness of the College’s investment policies.
34 5 Capital Assets
2010 2009
Accumulated Net Book Accumulated Net Book Cost Amortization Value Cost Amortization Value Buildings and site improvements $ 112,588,312 $ (60,577,359) $ 52,010,953 $ 109,029,855 $ (57,567,358) $ 51,462,497 Furnishings, equipment and systems 31,706,659 (20,543,145) 11,163,514 29,354,403 (18,123,654) 11,230,749 Learning resources 3,431,040 (3,084,620) 346,420 3,537,831 (3,198,067) 339,764 Vehicles 2,528,575 (2,022,750) 505,825 2,485,796 (1,911,858) 573,938 Land 1,612,439 - 1,612,439 1,612,439 - 1,612,439 Milk quotas 546,951 - 546,951 546,951 - 546,951
$ 152,413,976 $ (86,227,874) $66,186,102 $ 146,567,275 $ (80,800,937) $ 65,766,338
The Province of Alberta has been granted an option to purchase for $1 the whole or any part of the land, buildings and site improvements that it transferred to the College in 1982. For the consideration of $1, Lakeland College sold its interest in six acres of land to the Town of Vermilion for the Town’s use of building Community Centre. Included in buildings, furnishings, equipment and systems is $3,905,922 (2009 - $747,094) recorded as work in progress regarding building and information technology projects that were ongoing at year end. These assets are not amortized as the assets are not yet available for use. Acquisitions during the year includes in-kind contributions (such as equipment, buildings and vehicles) in the amount of $183,117 (2009 - $175,772). 6 Long-term Liabilities
Maturity Date
Debentures payable to Alberta Capital Finance Authority Capital lease with IBM
Interest Rate % 6.5% $ 4.75%
2,040,000 $ 898,160
2,160,000 1,316,932
imputed rate
2,938,160
3,476,932
(607,462)
(607,462)
2,330,698 $
2,869,470
Less current portion
2018 2012
Amount Outstanding 2010 2009
$ The principal portion of long-term debt repayments required over the next five years is as follows: 2011 $ 607,461 2012 607,462 2013 120,000 2014 120,000 2015 1,560,000 Interest included in capital lease (76,763) $
2,938,160
Interest expense on long-term obligations is $201,941 (2009 - $228,731).
35
ANNUAL REPORT 2009-2010
7 Deferred Contributions Deferred contributions represent unspent externally restricted grants and donations. Changes in the deferred contributions balances are as follows: 2010 2009
Capital Other Capital Other
Balance, beginning of year $ 6,400,030 $ 14,957,119 $ 8,220,380 $ 1,933,804 Grants and donations received 1,677,682 8,024,098 2,179,386 21,115,538 Investment income 108,801 616,464 221,140 486,183 Current year unrealized gain (loss) on endowments 46,551 (432,454) Recognized as income (1,702,651) (9,727,759) (369,495) (7,518,293) Grant funds allocated to endowments (536,101) (269,190) Transferred to unamortized deferred capital contribution (note 8) (3,304,835) (402,308) (3,851,381) (358,469) Balance, end of year
$ 3,179,027 $ 12,978,064 $ 6,400,030 $ 14,957,119
8 Unamortized Deferred Capital Contributions Unamortized deferred capital contributions represent the unamortized grants and donations received to fund capital acquisitions. The amortization of unamortized deferred capital contributions is recorded as revenue in the statement of operations. The changes in the unamortized deferred capital contributions balance are as follows:
2010 2009
Balance, beginning of year $ 48,286,210 $ 47,368,822 Additions from deferred contributions (note 7) 3,707,143 4,209,850 Amortization to revenue (3,386,572) (3,292,462) Balance, end of year
$ 48,606,781 $ 48,286,210
9 Net Unrealized Gains on Available-For-Sale Investments
2010 2009
Net unrealized losses on available for-sale investments $ Net investment loss (gain) realized on available-for sale investments during the year and reported in Statement of Operations
382,227
(1,629,934)
(22,714)
77,561
Decrease in unrealized gain on available-for sale investments Balance, beginning of year
359,513 (604,398)
(1,552,373) 947,975
Balance, end of year
(244,885) $
$
(604,398)
36 9 Net Unrealized Gains on Available-For-Sale Investments cont.
2010 2009
Endowment net assets, recorded in deferred contributions (Note 4) Other Net Assets
Total
Total
Balance, beginning of the year $ Gain (Loss) during the year
119,228 $ 46,551
(723,626) $ 312,962
(604,398) $ 359,513
947,975 (1,552,373)
Balance, end of the year
165,779 $
(410,664) $
$(244,885) $
(604,398)
$
10 Internally Restricted Net Assets Internally restricted net assets represent amounts set aside by the College’s Board of Governors for specific purposes. Those amounts are not available for other purposes without the approval of the Board and do not have interest allocated to them. Internally restricted net assets are summarized as follows: Appropriations from Balance at (returned to) beginning of year unrestricted net Disbursements Balance at assets during the year end of year Appropriations for capital activities Agriculture Initiatives $ New residence construction
4,000,000 $ 2,700,000
- $ - $ -
4,000,000 2,700,000
6,700,000
-
-
6,700,000
Appropriations for operating activities Major maintenance Delivery Initiatives
- 4,591,488 105,998
- 382,323 24,250
- (3,780,557) -
1,193,254 130,248
4,697,486
406,573
(3,780,557)
1,323,502
406,573 $
(3,780,557) $
8,023,502
Total appropriations
$
11,397,486 $
11 Investment in Capital Assets Net assets invested in capital assets and collections represent the carrying amount (net book value) of capital assets and collections less unamortized deferred capital contributions and any related debt.
2010 2009
Capital assets at net book value (note 5) $ Less amounts financed by: Unamortized deferred capital contributions (note 8) Long-term liabilities relating to capital expenditures
66,186,102 $ (48,606,781) (2,938,160)
Investment in capital assets, end of year
14,641,161 $
$
65,766,338 (48,286,209) (3,476,932) 14,003,197
37
ANNUAL REPORT 2009-2010
11 Investment in Capital Assets cont. The changes during the year are as follows:
2010 2009
Investment in capital assets, beginning of year
$
14,003,197
$
Acquisitions of capital assets Long-term liability repayment Net book value of disposed assets Amortization of investment in capital assets
2,762,365 538,772 (42,559) (2,620,614)
Net investment in capital assets
637,964
Investment in capital assets, end of year
$
14,641,161
$
13,325,801 2,424,660 519,781 (62,893) (2,204,152) 677,396 14,003,197
12 Endowments Endowments consist of externally restricted donations received by the College and internal allocations by the College’s Board of Governors, the principal of which is required to be maintained intact in perpetuity. Investment income earned on endowments must be used in accordance with the various purposes established by the donors or the Board of Governors. Allocations to address inflation proofing of endowments are performed only when such an action is a specific requirement within the individual endowment agreement or when deemed appropriate to do so by the College’s Executive team. Under the Post-secondary Learning Act, the College has the authority to alter the terms and conditions of endowments to enable:
• Income earned by the endowment to be withheld from distribution to avoid fluctuations in the amounts distributed and generally to regulate the distribution of income earned by the endowment.
• Encroachment on the capital of the endowment to avoid fluctuations in the amounts distributed and generally to regulate the distribution of income earned by the endowment if, in the opinion of the Board of Governors, the encroachment benefits the College and does not impair the long-term value of the fund.
In any year, if the investment income earned on endowments is insufficient to fund the spending allocation, the College will pay the scholarships that have been advertised and committed to for that fiscal year. The status of future scholarship payments will be determined by the Executive Team.
2010 2009
The composition of endowments is as follows: Balance, beginning of year $ Gifts of endowment principal Grant funds allocated to endowments Transfer to (from) endowments
2,261,933 $ 113,101 536,101 1,000,000
1,930,658 62,085 269,190 -
Balance, end of year
3,911,135
2,261,933
$
$
$ 3,911,135 $ 2,261,933 Cumulative contributions Cumulative capitalized income
$ 3,911,135 $ 2,261,933
The Board of Governors approved the permanent endowment of $1,000,000 which was transferred in October of 2009 from unrestricted net assets to permanent endowments.
38 13 Contingent Liabilities There is one unresolved claim against the College. While the outcome of this claim cannot be predicted at this time, it is the opinion of management that the resolution of this claim will not have a material effect on the financial statements of the College and it has not been reflected in these statements. Additional costs of settling this claim, if any, will be charged to operations upon settlement, which in Management’s opinion will not have a material effect on the financial position of the College. The College is a defendant in a number of legal proceedings. While the ultimate outcome and liability of these proceedings cannot be reasonably estimated at this time, the College believes that any settlement will not have a material adverse effect on the financial position or the results of operations of the College. Administration has concluded that none of the claims meet the criteria for being recorded under GAAP. 14 Contractual Obligations The College has contractual obligations which are commitments that will become liabilities in the future when the terms of the contracts or agreements are met. 2010 2009 Service contracts $ 784,776 $ 686,242 Construction projects 9,996,691 2,818,298 Information systems and technology 1,835,463 1,957,888 Long term leases 77,260 78,220
$ 12,694,190 $ 5,540,648
The aggregate amounts payable for the unexpired terms of these contractual obligations are as follows:
2010
Service contracts
Construction projects
Information systems and technology Long term leases Total
2011 $ 2012 2013 2014 2015
199,388 $ 9,996,691 $ 187,475 186,586 132,236 79,091
516,488 $ 381,631 312,448 312,448 312,448
$
784,776 $ 9,996,691 $ 1,835,463 $
61,060 $ 10,773,627 16,200 585,306 - 499,034 - 444,684 - 391,539 77,260 $ 12,694,190
15 Budget Comparison The College’s 2009-10 budget was approved by the Board of Governors as was presented to the Minister of Advanced Education and Technology as part of the College’s submission of its 2009-2014 Business Plan. Certain budget figures from the College’s 2008-2013 Business Plan have been reclassified to conform to the presentation adopted in the 2010 financial statements.
39
ANNUAL REPORT 2009-2010
16 Investment Income
2010 2009
Gain (loss) on investments held for endowments $ Gain (loss) on other investments
167,143 $ 1,212,970
147,759 1,435,964
1,380,113 1,583,723 Amounts deferred (725,265) (706,604) Investment income
$
654,848
$877,119
17 Related Party Transactions and Balances The College operates under the authority and statutes of the Province of Alberta. Transactions between the College and the Government of Alberta (GOA) are measured at the exchange amount and summarized below.
2010 2009
Contributions from Government of Alberta Advanced Education and Technology: Operating grants $ Capital grants Access to the Future fund (matching fund) Other
30,111,283 $ 718,750 1,341,822 5,334,925
28,066,300 136,292 1,056,721 20,399,360
37,506,780
49,658,673
Total Advanced Education and Technology
Other Government of Alberta agencies grants: Alberta Agriculture 142,000 6,248 AACTI 94,000 Alberta Health and Wellness 68,646 92,358 Alberta Childrens’ Services 60,000 Alberta Foundation for the Arts 20,000 Alberta Employment and Immigration 16,646 Alberta Tourism 4,500 6,000 Alberta Environment 500 3,700 Ultimate Heir Scholarships - 159,151 Total other government agencies
406,292
267,457
Total contributions received Less: deferred contributions
37,913,072 (13,585,543)
49,926,130 (20,212,877)
$ 24,327,529 $ 29,713,253
The College has long-term liabilities with Alberta Finance and Alberta Capital Finance Authority as described in note 6.
40 18 Salary and Employee Benefits Treasury Board Directive 12-98 under the Financial Administration Act of the Province of Alberta requires the disclosure of certain salary and employee benefits information.
2010 2009
Base Salary (1)
Other Cash Other Non-Cash Benefits (2) Benefits (3) Total Total
Governance Chairman of the Board $ - $ Other Board Members
$
-
16,142 $ 33,422
741 $ 172
16,883 $ 33,594
19,050 37,256
$49,564 $
913 $
50,477
56,306
264,121 183,830 181,828 107,379 142,801 123,142
250,063 173,697 171,699 - 136,213 113,305
Executive President VP Academics and Innovation VP Student and College Services VP Advancement Director, Human Resources Director, Community Relations
223,000 17,852 160,500 158,500 92,547 121,544 104,176
860,267
17,852
124,982 1,003,101
844,977
Salaries & benefit expense in year
860,267 $
67,416 $
125,895 $ 1,053,578 $
901,283
$
23,269 23,330 23,328 14,832 21,257 18,966
(1) Base salary includes pensionable base pay. (2) Other cash benefits includes honoraria. (3) Employer’s share of all employee benefits and contributions or payments made on behalf of employees including pension, health care, dental coverage, vision coverage, out of country medical benefits, group life insurance, accidental disability and dismemberment insurance, long and short term disability plan, professional memberships and tuition. (4) The Chair and Members of the Board of Governors receive no remuneration for participation on the Board. 19 Comparative Figures Certain 2009 figures have been reclassified to conform to the presentation adopted in the 2010 financial statements. 20 Subsequent Events In the 2009-10 year the board of governors of Lakeland College authorized the purchase of 100% of the shares of Barhill Farms Ltd. in order to acquire the agricultural land, farm yard and buildings owned by the corporation for a sum of $4,500,000. This purchase transaction is anticipated to be completed in the 2010-11 year.
ANNUAL REPORT 2009-2010
41
l a k e l a n d c o l l e g e . c a / Ve r m i l i o n & L l oy d m i n s t e r / 1 8 0 0 6 6 1 6 4 9 0
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