ANNUAL REPORT 2016-2017
Contents 4
Board Accountability Statement
5
Management’s Responsibility for Reporting
5
Public Interest Disclosure (Whistleblower Protection) Act
6
President's Message
8 Mandate 9
Mission, Vision, Values and Outcomes
10
Operational Overview
11
Goals, Priority Initiatives, Expected Outcomes and Performance Measures
20
Access and Quality
22
Enrolment Plan
26 Applied Research
28 Internationalization 29
Information Technology
30
Capital Plan
32
Financial Discussion and Analysis
38
Financial Statements
• Auditor’s Report • Statement of Management Responsibility
• Statement of Financial Position
• Statement of Operations
• Statement of Change in Net Financial Assets
• Statement of Remeasurement Gains and Losses
• Statement of Cash Flows
• Notes to the Financial Statements
62 Appendix
• Donors
Annual Report 2016-2017 | 3
Board Accountability Statement Lakeland College’s Annual Report for the year ended June 30, 2017 was prepared under the Board’s direction in accordance with the Fiscal Planning and Transparency Act and ministerial guidelines established pursuant to the Post-Secondary Learning Act. All material economic, environmental or fiscal implications of which we are aware have been considered in the preparation of this report.
[Original signed by Darrel Howell] Chair Lakeland College Board of Governors December 2017
Board of Governors As of June 30, 2017 Chair Darrel Howell
Student Member Rachel Lambert
Vice Chair Bryan Perkins
Academic Staff Member Wanjiku Kaai
President & CEO Alice Wainwright-Stewart
Non-academic Staff Member Debbie Holden
4 | Annual Report 2016-2017
Public Members Jason Bazinet Linnea Goodhand Jo-Ann Hall Dianne Harder Jenelle Saskiw Jay Woosaree
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 Fiscal Planning and Transparency Act and the Post-secondary Learning Act. The Auditor General of Alberta, the institution’s external auditor appointed under the Auditor General Act, performs an annual independent audit of the consolidated financial statements which are prepared in accordance with Canadian public sector accounting standards.
[Original signed by Murray Walford] Chief Financial Officer Lakeland College
Public Interest Disclosure (Whistleblower Protection) Act Under the Public Interest Disclosure (Whistleblower Protection) Act, Lakeland employees can report in good faith when they believe a wrongdoing has occurred. Lakeland has a detailed procedure that explains the whistleblower process that is followed. A requirement of the Public Interest Disclosure (Whistleblower Protection) Act is that all disclosures made during the year are reported. Lakeland received no disclosures during the 2016-2017 year.
President’s Message Hyunki Jung helped plan and lead a real estate exploration trip to Vietnam. Maryje Bikker participated in a media scrum at the Dairy Learning Centre and Animal Health Clinic sod turning. Tinisha Young mentored high school students during a design challenge at the Indigenous Economic Partnership Summit. Jordan Stefaniuk and Caity Anderson travelled to Kazakhstan to discuss agriculture curriculum with Kazaks. These are a few of many examples of how Lakeland students took the lead in 2016-2017. Lakeland is students leading and learning through studentrun projects, operations and events. Our students run play programs, fashion shows and math fairs. They manage our campus spa, Student-Managed Farm — Powered by New Holland, and Student-Environmental Consulting Office (S-ECO). They help generate heat and power for the Lloydminster campus in the Energy Centre. They lead a team as the captain or battalion chief while battling realistic fire simulations at the Emergency Training Centre. While our learning model ensures a strong employment rate for graduates – 89% of our graduates find employment shortly after leaving Lakeland – it also helps students learn how to think creatively and critically and become big picture thinkers, problem solvers, innovators and leaders. Our work earned us 6 | Annual Report 2016-2017
a bronze Award of Excellence in leadership from the World Federation of Colleges and Polytechnics in September 2016. Student leadership is such a core element of the Lakeland experience that it’s included in our new mission: To inspire lifelong learning and leadership through experience, excellence, and innovation. Our vision is Transforming the future through innovative learning; and our values are Learner Success, Integrity, Respect, Community, Excellence, and Innovation. Ten focus groups that involved a total of 99 stakeholders came together to help create our new mission, vision and values that were adopted in May 2017. It was a positive and productive year for Lakeland. We made changes to our programming to meet student and industry needs, announcing the addition of 2nd Class Power Engineering, Hairstyling and Administrative Professional programs for 2017-2018. We worked with Northern Lakes College (NLC) to increase access to practical nurse training. NLC will offer its Practical Nurse program at Lakeland in the next academic year. While offered primarily online, the lab component will feature face-toface instruction at the Lloydminster campus. It was also an award-winning year. Interior Design Technology students extended the program’s winning streak in international
design competitions to 14 years. Trades and Technology students claimed Top Apprentice and Skills Canada Alberta awards. Our Early Learning and Child Care program won a 2017 Silver Award of Excellence in the Program Excellence category from Colleges and Institutes Canada. Our full-load equivalents increased 5.9% from the previous year. Actual enrolment exceeded our Comprehensive Institutional Plan projections in many of our programming areas, most notably Human Services, University Transfer and Agricultural Sciences. With fewer apprentices working in the industry, enrolment in our Trades and Technology apprenticeship programs declined. Aging infrastructure continues to be a significant challenge for Lakeland. Two years ago Lakeland created a Strategic Investment Fund and committed to making planned investments into this fund to support programming and infrastructure renewal. This year we allocated $4 million to the Strategic Investment Fund. Our applied research efforts this past year focused primarily on agriculture, environmental sciences and energy. Our researchers helped develop the Municipal Climate Change Action Centre’s online solar cost calculator. Small plot crop trials, cattle feed efficiency testing, monitoring the performance of the Crop Research and BioEnergy Building, and a wetlands survey were among our many research projects. Collaboration with partners from government, education, and industry plus support from donors helped make many of these projects possible. We’re founding members of the East Central Regional Innovation Network and work alongside the Regional Business Accelerator to champion economic development and youth business projects such as Biz Kids. Of course, Lakeland is also important to economic development. According to an economic impact study completed by Emsi in June 2017, Lakeland, our students and our alumni added $120 million to the region’s economy during the study year. Thanks to donor support, a modernized G.N. Sweet Livestock Research Facility was opened in October 2016. We also
developed a new hairstyling lab. Work began on the construction of our Dairy Learning Centre and Animal Health Clinic. We received three acres of industrial land with two large buildings from a private donor. This is the largest gift-in-kind we’ve received in our history. What a way to begin our Leading. Learning. The Lakeland Campaign. Our goal is to raise $10 million in five years to modernize our Student-Managed Farm – Powered by New Holland facilities, expand student success and grow applied research. Thank you to alumnus Mike Kotelko for chairing our campaign cabinet and to former Alberta Premier Ed Stelmach for serving as honorary chair. It was also a year of many firsts: • Our women’s volleyball team won the Alberta Colleges Athletic Conference (ACAC) title at home in front of a spirited crowd. Then the Rustlers travelled to Victoria for the Canadian Collegiate Athletic Association (CCAA) championship and won Lakeland’s first-ever CCAA banner. More than 4,000 people watched the title game online. This group of student athletes accomplished so much on the court while also earning a collective GPA of 3.43 in the second semester. • We were named one of Alberta’s Top 70 Employers for 2017. • Alan Rogan, our athletic director, was named the first ACAC and CCAA Athletic Director of the Year. • Instructor Brianne Bellwood became Canada’s first credentialed veterinary technician specialist in the field of clinical pathology. We continued to work on creating a more inclusive environment for all of our people. We now have an Indigenous student support specialist who assists our growing number of Indigenous students, works with our Aboriginal Student Advisory Committee, and helps develop events that increase appreciation of Indigenous culture. We also hosted numerous international events plus a cultural diversity workshop. The facts and figures included in this report help tell our story of progress and accomplishment. What they don’t show is the dedication and drive of our people. I assure you that our people have a passion for the work we do and we don’t take our responsibilities lightly. Talent runs deep at Lakeland, and because of that, I know we’ll continue to inspire lifelong learning and leadership through experience, excellence and innovation.
[Original signed by Alice Wainwright-Stewart] President and CEO Lakeland College Annual Report 2016-2017 | 7
Mandate Established under the Post-secondary Learning Act (PSLA), the Board manages and operates the post-secondary institution within its approved mandate [PSLA Section 60(1)(a)]. Lakeland College is a public, board-governed college operating as a Comprehensive Community Institution under the authority of the PSLA. Established in 1913, Lakeland College has campuses in Vermilion and Lloydminster. Lakeland College awards certificates, diplomas and applied degrees. The college also offers baccalaureate degree programs in collaboration with degree-granting institutions. Complementing the economic strengths of Alberta, Lakeland College’s programming seeks to meet the needs of learners, communities, business and industry in its service region. Programming includes agricultural and environmental sciences, apprenticeship and industry training, energy, fire and emergency services training, wellness and human services, business and university transfer. The college also designs and delivers programs to meet specific learner, community and industry needs through continuing education and corporate training. Lakeland College promotes innovation by conducting applied research activities that are relevant to its program areas, complement teaching and learning, and advance innovation-based rural community economic development. The focus of applied research is primarily in agricultural sciences, energy and environmental sciences. Initiatives are geared towards supporting Alberta’s future economy by helping industry partners capitalize on new opportunities and find solutions to current challenges. Lakeland College’s commitment to the collaborative principles of Campus Alberta is demonstrated through partnerships and transfer agreements within the post-secondary system that strengthen its programming and service capacity while improving efficiencies. Lakeland College works with school jurisdictions to host career and technology studies courses and support learner pathways into post-secondary, such as providing dual credit programming so students can earn high school and college credits at the same time. Using different instructional delivery methods including face-to-face, blended and distance learning, Lakeland College is able to maximize learner access to high-quality and affordable lifelong learning opportunities. To inspire learner success, Lakeland College provides a learning and teaching commons that creates personalized learning pathways and supports instructional excellence. Students develop competencies in different learning methods and technologies so they are prepared for lifelong learning. International projects, practicum experiences and study abroad opportunities combined with increased international student enrolment at the college’s campuses help prepare students for participation in an interconnected world. To enhance students’ college experience, Lakeland College offers a full range of services including academic advising, athletics, cafeterias, clubs, financial aid, health, learning strategies and support, recreation, residence, student centres, student employment and wellness services. The College has numerous specialized facilities such as multiple music studios, two community theatres, two recreation centres, a swimming pool and an indoor riding arena that are often the site of community events and activities and help support the recreational, cultural, fitness and conferencing needs of the region it serves. Approved by the Board of Governors March 25, 2015 Approved by the Minister, Innovation and Advanced Education June 24, 2015
8 | Annual Report 2016-2017
Mission
Vision
To inspire lifelong learning and leadership through experience, excellence, and innovation.
Transforming the future through innovative learning.
Values
Outcomes
• Learner Success • Integrity • Respect • Community • Excellence • Innovation
• Learner Success • Relevant Programming and Research • Connectivity • Sustainability
Annual Report 2016-2017 | 9
Operational Overview Lakeland is a place of possibility that continually provides high quality, affordable and accessible post-secondary education for students with a focus on leadership opportunities. Programming areas are Agricultural Sciences, Business, Energy, Environmental Sciences, Fire and Emergency Services, Health and Wellness, Human Services, Interior Design Technology, Trades and Technology, and University Transfer. The Research Centre (formerly known as Centre for Sustainable Innovation) is a test-bed for innovations in agriculture, energy, and environment. Lakeland’s enrolment increased in 2016-2017. University Transfer, Business Administration and Agricultural Sciences experienced the most growth in full-time students. Human Services programs including Early Learning and Child Care, Educational Assistant and American Sign Language and Deaf Culture studies reported the biggest gains in part-time students thanks to the success of online and blended delivery courses.
Economic conditions
Talent management
Low energy prices continued to hamper Alberta’s economy. Demand for Apprenticeship, Power Engineering and Heavy Oil programming declined due to oil and gas prices which reduced employment prospects. According to Alberta Economic Development and Trade’s Highlights of the Alberta Economy 2017, the Alberta economy contracted by 3.8% in 2016 and unemployment rose to 8.1%. Lakeland did see increased demand for many programs as people sought face-to-face and online training to prepare them for employment.
Talent management remains a priority for Lakeland as labour market participation trends lower due to baby boomers aging. The Leadership Development and Succession Planning Framework was reviewed and updated. The senior leadership team and many deans, directors and managers participated in a 90-day program called Planning for Success. This program’s focus is on building the competency of strategic and tactical planning.
Vacancy rates in Lloydminster remained high. According to CMHC Rental Market Survey, the apartment vacancy rate on the Alberta side of Lloydminster was 28.1% in October 2016. With so many options available, the Lloydminster campus Husky Energy Residence Village occupancy rate dropped to 61.2% in 2016-2017, down substantially from 88% in 2014-2015. Demand for Agricultural Sciences programming remained very strong. Enrolment in the School of Agricultural Sciences has increased 44% since 2011. To accommodate increased applications, Lakeland announced in April 2017 that Crop Technology and General Agriculture would accept a combined increase of 24 students for the 2017-2018 academic year.
Risk management Global cybersecurity threats have increased in Alberta post-secondary institutions. Lakeland continues to focus on cybersecurity governance, data protection and compliance. A director of Finance and Risk Management was hired and will begin work at Lakeland in August 2017. Starting in the fall of 2017, Lakeland will be a participant in a joint venture for the sharing of a Cybersecurity Information Security Officer (CISO).
10 | Annual Report 2016-2017
The employee voluntary turnover rate was 3.5%, down from the previous five year average of 6.54%. At the 2016 Employee Recognition Ceremony, Lakeland recognized a total of 970 years of service. Eleven employees were recognized for 25 years of service or more, while seven people celebrated their retirement. Lakeland was named one of Alberta’s Top 70 Employers for 2017. The college was one of five post-secondary institutions in the province to receive this accolade.
Capital investment In the 2016-2019 Comprehensive Institutional Plan, Lakeland identified the need for capital investment as a significant challenge. In October 2016, Lakeland learned it would receive a total of $5.95 million for the Dairy Learning Centre and the Animal Health Clinic from the Government of Canada through the Post-Secondary Institutions Strategic Investment Fund. This funding commitment, along with other external funding from the Government of Alberta, made it possible for construction to begin on these two essential capital projects. Lakeland still requires significant capital investment to revitalize its Vermilion campus.
Goals, Priority Initiatives, Expected Outcomes and Performance Measures In the 2016-2019 Comprehensive Institutional Plan, Lakeland outlined four strategic goals and accompanying objectives that aligned with the Government of Alberta’s focus on ensuring Albertans have access to affordable and quality education. 1. Learner Success
3. Connectivity
• Expand student-managed learning opportunities
• Create and enhance strategic partnerships
• Develop and enhance student life opportunities
• Raise the profile of the college
• Optimize usage of classroom technology
4. Sustainability
2. Relevant Programming and Research
• Modernize the learning environment
• Optimize enrolment and programming
• Optimize usage of college resources
• Build research capacity
• Empower staff to excel
In the following pages, Lakeland reports on the progress made towards achieving these goals.
Annual Report 2016-2017 | 11
Goal: Learner Success Objective
Goal
Status
Ensure each school has at least one student-managed or student-led initiative
Achieved
1.1 Expand studentmanaged learning opportunities
One of the council’s first initiatives was to present 2015 student engagement survey results to leadership. They discussed the areas identified as needing improvement and determined ways to address these areas.
Objective This goal was fully achieved. Lakeland students run play programs, fashion shows and math fairs. They manage a campus spa, serve as battalion chiefs, and plan and host events like Band in the Sand. They manage the Student-Managed Farm – Powered by New Holland, and run businesses through the Student-Managed Enterprise. Interior Design Technology students provide design concepts for community, college and competition projects. This past year the Student-Environmental Consulting Office (S-ECO) was launched, and “pay-it-forward” projects were led by Human Services students as part of their Activities Leadership course. Students took charge of Lakeland’s Snapchat account for events such as Agribition and Open House, and they emceed the President’s Gala and Feast on the Farm. In September 2016, Lakeland won a bronze Award of Excellence in the leadership development category from the World Federation of Colleges and Polytechnics (WFCP). The award recognizes Lakeland’s work in providing opportunities for students and staff to develop leadership skills.
Objective
Goal
Status
Conduct root-cause analysis of student withdrawals
In progress
1.2a Develop and enhance student life opportunities
Goal
Status
1.2b Develop and enhance student life opportunities
Create a Student Life Achieved Advisory Council to improve the student life experience
A Student Life Advisory Council was established. The purpose of the council - which includes student and employee representation - is to ensure clubs and recreational programming contribute to meaningful student life opportunities. The members also review leadership development programs for student leaders, and provide guidance to create a positive residence environment. 12 | Annual Report 2016-2017
Status
Develop and enhance student life opportunities
Develop strategy to support online learners
In progress
A resource guide for online students is in development.
Objective
Goal
Status
1.3a Optimize usage of Expand Desire to Learn classroom technology (D2L) learning management system usage
Achieved
The Emergency Training Centre moved course content for the online portion of the Firefighter program from an external vendor to the D2L environment. A Wellsite Supervisor online program was introduced during the year. Students use D2L to access their online coursework, review material and quizzes. The system will be updated in 2017-2018 to make it responsive and improve the experience for mobile users.
Objective
Goal
Status
1.3b Optimize usage of Support faculty in classroom classroom technology technology usage
Students who withdraw after acceptance into a program in either 2015 or 2016 were surveyed in the spring by Leger Research. Survey results will be available in July 2017.
Objective
Goal
1.2c
Achieved
Throughout the year Information Technology provided faculty training on the use of systems such as Remark, BrightLinks and SMART Boards. Matt Robinson is Lakeland’s new Academic Services Technology Facilitator. He chairs the academic technology committee and works with faculty to increase technology use. For example, sharing information on the use of real-time assessment apps such as Kahoot and Socrative and how these apps increase classroom engagement.
Our Students are Satisfied 2017 About to Graduate Student Survey
96%
96%
96%
of students would recommend their program to others.
of students agree that activities such as labs, assignments and practicum placements let them apply theoretical knowledge and offer insights that lectures and readings could not provide.
of students are confident they have the knowledge and skills to begin a career.
Our Graduates are Succeeding Class of 2014 Graduate Follow-up Survey, 2016
89%
92%
94%
95%
$45,083
are employed.
are satisfied with their job.
would recommend Lakeland.
are satisfied with the quality of their Lakeland experience.
is the average annual salary.
Employers Love Lakeland 2016 Employer Survey
96% of employers would recommend Lakeland graduates to other employers.
98.9% of employers are likely to hire a Lakeland graduate in the future.
Goal: Relevant Programming and Research Objective
Goal
Status
2.1a Optimize enrolment and programming
Objective
Goal
Status
Explore and pilot flexible and creative learning opportunities within programs (e.g. progressive educational approaches, blended learning, online learning)
Achieved
2.1b Identify areas for targeted Achieved enrolment expansion in core programming areas
Access to Lakeland’s Health Care Aide program increased with the addition of a cohort in Wainwright, Alta. All 17 students who started the program earned their credential. Wainwright Adult Learning and Town of Wainwright Economic Development were integral to the success of this initiative. To accommodate an increase in applications, Lakeland announced in April 2017 that Crop Technology and General Agriculture would accept a combined increase of 24 students for the 2017-2018 academic year. During the year Lakeland was fortunate to receive a donation that included industrial land and two large buildings. One of the buildings was allocated for the Street Rod Technologies program that’s currently based at the Vermilion campus. Renovations began and the facility will be ready for the 20172018 academic year. There is enough space to accommodate 20 students. The facility at the Vermilion campus can only house 14 students. The Bachelor of Applied Business: Emergency Services program was reinstated. Twenty-eight students began the program in January 2017. Hairstyling and 2nd Class Power Engineering programs were approved for delivery in 2017-2018. Administrative Professional (formerly named Office Administration) was reinstated for delivery in 2017-2018.
14 | Annual Report 2016-2017
Optimize enrolment and programming
From May 16 until Aug. 5, 2016, Lakeland piloted a blended learning Firefighter program. Like Lakeland’s face-to-face program, the pilot program was 12 weeks. Seven weeks was allotted for online study followed by five weeks of training at the Emergency Training Centre. Students reported that more time was needed to complete the theory portion of the program. The program was offered again in January 2017 with the online portion of the program expanded to 12 weeks. Next year two intakes of the blended learning option will be offered. A mobile lab for the Administrative Professional program was approved. This lab will allow the college to run the program next year without adding additional pressure to existing computer labs. Northern Lakes College (NLC) and Lakeland announced in May that NLC will offer its Practical Nurse program at Lakeland’s Lloydminster campus in 2017-2018. While courses are offered primarily online, the lab component of the program will feature face-to-face instruction at the Lloydminster campus. The program filled quickly.
Objective
Goal
Status
2.1c Optimize enrolment and programming
Objective
Goal
Status
Implement the college’s strategic research plan
Achieved
2.2a Identify expanded learning opportunities and supports for Indigenous learners
Achieved
Clint Chocan joined Lakeland early in 2017 as an Indigenous Student Support Specialist. His role is to work with Indigenous students to help them during their transition to the college and assist them throughout the academic year. He works closely with the Aboriginal Student Advisory Committee and helps develop events that increase appreciation of Indigenous culture throughout Lakeland. A ceremonial feast, round dance, bannock making contest, Indigenous storytelling, and blanket exercises were among the events held during the academic year. Also, a ceremonial prayer and an honour song were part of convocation ceremonies at both campuses. Flagpoles were purchased so Lakeland can fly Métis and Treaty 6 flags. A flag raising ceremony will be held in the fall of 2017. During the 2016-2017 academic year, Lakeland delivered five Foundations of Firefighting courses for Alberta First Nations Technical Services Advisory Group to 32 students from First Nations throughout Alberta. Lakeland and the University of Alberta began discussions to offer the university’s Aboriginal Teacher Education Program at the Lloydminster campus starting in the fall of 2018. This program has a strong focus on Indigenous culture. If the collaboration moves forward, students will be able to complete all four years of the Bachelor of Education (elementary) degree in Lloydminster. Students would take the first two years of study in Lakeland’s University Transfer program. Their final two years would also be on campus taking courses offered by the U of A.
Build research capacity
The plan was implemented. Read more about our research and innovation activities in the research section of this report.
Objective
Goal
Status
Evaluate the impact of the Teaching and Learning Innovation Fund
Achieved
2.2b Build research capacity
A Design Thinking workshop, the development of a texting service for students to communicate with library staff, and a two-day event about empowering and inspiring leaders are examples of initiatives the $50,000 Teaching and Learning Innovation Fund supported in 2015-2016. The Design Thinking workshop was such as success that Lakeland and Regional Business Accelerator employees who collaborated on the project shared results at the 2016 Colleges and Institutes Canada’s national conference. Evaluations of 2015-2016 projects in February 2017 were very positive. In 2016-2017, eight projects received funding including the Student-Environmental Consulting Office, bioacoustics monitoring of wetlands and a research farm tour. The fund will be available in the 2017-2018 academic year.
Annual Report 2016-2017 | 15
Goal: Connectivity Objective
Goal
Status
Engage with internal and external stakeholders as ambassadors and champions for the College
Achieved
3.1 Create and enhance strategic partnerships
Academic schools and departments connect to stakeholders through avenues such as program advisory committees, participation in industry events, and involvement in external boards and organizations. The following are a few of many highlights from the past year. • Development of a new Dairy Learning Centre was possible because of support from Alberta Milk. The organization provided the use of additional milk quota so the dairy herd can be increased. Also, funds Alberta Milk received from the Government of Alberta Growing Forward 2 grant were used to incorporate energy efficient systems and design in the facility which will open in August 2017. • Lakeland is a very active partner in the Smart Agri Food Supercluster that’s vying for a portion of the federal government’s $950 million supercluster initiative funding. The Smart Agri-Food Supercluster would add informatics, connectivity and traceability in the crop, livestock and agri food processing sectors to make Canada the preferred global supplier of sustainable, high-quality, safe food. • Faculty members Kelly Mazerolle and Melissa Rothwell presented at the Early Learning and Child Care World Forum in New Zealand. • The School of Trades and Technology has relationships with numerous businesses that this past year resulted in gifts-in kind such as vehicles, welding rods, and steel and pipe, as well as donations to the student awards program. • Hairstylist and salon owners in the region were instrumental in Lakeland successfully developing a full-time hairstyling program. In February 2017, Lakeland received approval to offer a 1,400-hour program beginning in 2017-2018. • The School of Agricultural Sciences is very active in industry events. During the year the school had student, staff and faculty representation at the Livestock Gentec Conference, New Holland Blue, FarmTech, Agribition, Farmfair International and more. • There were 11 alumni socials/events held throughout Canada and the United States. More than 500 alumni participated. Lakeland recognized the accomplishments of alumni Mike Kotelko, Class of ’82, and Scott Musgrave, Class of ’87, during convocation ceremonies in June 2017.
16 | Annual Report 2016-2017
Kotelko, a graduate of the Ag Systems Technician program, is the owner of Highland Feeders Ltd., the sixth largest feedlot in Canada and one of Alberta’s leading agribusinesses. Musgrave graduated from the Business Administration program and was Lakeland’s first business student to transfer his diploma credits to a university program. He is an executive and shareholder within the Musgrave group of companies, primarily a real estate and development company. John Stewart of Vermilion and Ken Kay of Lloydminster received Distinguished Citizen awards for their accomplishments as business owners and community ambassadors.
Objective
Goal
Status
Roll out a new college branding strategy
Achieved
3.2a Raise the profile of the college
Part of the branding strategy developed previously included the development of a new visual identity and a responsive website. The visual identity launch occurred in August 2016. A student was at the forefront of the announcement, reflecting Lakeland’s commitment to students in the lead. Elements of the visual identity include a logo, tagline, typography, and official colours that reflect the Lakeland experience. The visual identity was developed through extensive consultation, focus groups and surveys. Providing their input throughout this process were more than 100 current and prospective students and staff members. The new logo is an L with a gold element in the middle which is a reference to the sash worn by graduates at convocation. It’s also similar to a kernel of grain, an acknowledgment of Lakeland’s roots as the first School of Agriculture in Alberta. The gold element is placed in the middle of the L as it connects the college’s two campuses. The green and gold colours that have served Lakeland since its beginning remain. However, the shades are more vibrant than previous versions. The tagline: Leading. Learning. Since 1913. refers to Lakeland’s studentmanaged learning approach and builds on the college’s long and successful history. Logos for the Emergency Training Centre, the Rustlers and the Student-Managed Farm – Powered by New Holland were also refreshed to reflect the design of the new Lakeland logo. Signage, street banners, vehicle decals, stationery, banners, podiums, carpets, tablecloths, bulletin boards, digital and print templates, and more were changed to reflect the new visual identity.
Objective
Goal
Status
Continue to update and improve college website
In progress
3.2b Raise the profile of the college
Development of a responsive website continued but wasn’t launched due to competing projects with Lakeland’s external website vendor. With almost 50,000 unique visitors to Lakeland’s website each month and 45.85% of those visitors accessing the site from a mobile device, it’s critical to have a responsive website. More than 2,500 different smart devices were used to access the website during the year.
Objective
Goal
Status
Launch fundraising campaign to support farm revitalization
Achieved
3.2c Raise the profile of the college
The quiet phase of Leading. Learning. The Lakeland Campaign. is underway with a goal to raise $10 million in five years. A campaign cabinet is in place which includes alumnus Mike Kotelko as the chair and former Alberta Premier Ed Stelmach as honorary chair. Money raised will be used to expand student success, modernize facilities and grow applied research.
Annual Report 2016-2017 | 17
Goal: Sustainability Objective
Goal
Status
4.1a Modernize the learning environment
Continue progress on the Dairy Learning Centre, Animal Health Clinic and Trades Centre roof projects
Achieved
It’s expected that the total cost of the Dairy Learning Centre will be $9.5 million and the Animal Health Clinic will cost $7.1 million. The two projects received $5.95 million through the Government of Canada’s Post-Secondary Institutions Strategic Investment Fund. Alberta Milk is a key contributor to the Dairy Learning Centre, providing additional milk quota and allocating the Government of Alberta Growing Forward 2 grant the nonprofit organization received towards energy efficient systems and design in the Dairy Learning Centre. The Government of Alberta provided a $1.76 million grant for the Animal Health Clinic. A pilot repair on a section of the Trades Centre roof was completed in the spring of 2017 to help better understand the repairs needed to the metal cladding, glazing and roofing.
Goal
Status
Renovate up to three Vermilion classrooms/labs as resources permit
Achieved
4.1b Modernize the learning environment
Goal
Status
Consult with staff and students on the development of the Vermilion campus revitalization plan for classrooms/labs
Achieved
4.1c
An open house was held in February 2017 to share plans for the Dairy Learning Centre. The response from the community and industry was positive. A sod turning ceremony for both the Dairy Learning Centre and Animal Health Clinic was held in April 2017. Construction is underway and both facilities will open in the next academic year.
Objective
Objective
Lakeland received a $2.7 million donation from a private donor that consisted of three acres of industrial land and two large buildings. One of the buildings was allocated for Street Rod Technologies, so money was used to renovate the space for that program. For numerous years students in the School of Trades and Technology complained verbally and in surveys about the poor quality of chairs in the classrooms. After receiving student feedback on different chair samples, 501 chairs were purchased.
18 | Annual Report 2016-2017
Modernize the learning environment
Colliers Project Leaders met with representatives from academic schools and departments to discuss their program and service needs, limitations of the current space they use, and future goals.
Objective
Goal
Status
Develop a plan for renovation and expansion of residence services
In progress
4.1d Modernize the learning environment
Lakeland is working with Colliers Project Leaders on this project. The plan will be finalized in the next academic year.
Objective
Goal
Status
Develop business continuity and risk plans
In progress
4.2a Optimize usage of college resources
An Information Technology Security Policy was developed and approved during the year. The policy is a crucial component of Lakeland’s Information Security Management Framework. A continuity planning model was developed in collaboration with a number of other colleges and universities. A significant amount of work was completed on an Emergency Response Plan. It will be finalized in the fall of 2017. A director of Finance and Risk Management was hired and will begin work in August 2017.
Objective
Goal
Status
Review one core service department
Achieved
4.2b Optimize usage of college resources
Human Resources, Financial Services and Student Services were all reviewed through internal and external methods. Human Resources operated under a reorganized service model in 2016-2017.
Objective
Goal
Status
4.2c Optimize usage of college resources
Goal
Status
Continue to develop the succession and leadership development frameworks
Achieved
4.3b Upgrade IT network and infrastructure
In progress
Information Technology worked on a major upgrade of network infrastructure in 2016-2017. This project is expected to be complete by June 2018. The project focused on the following areas: bandwidth upgrade, network infrastructure, wireless and video conferencing.
Objective
Objective
Goal
Status
Ensure statement of operations is balanced or in surplus at fiscal year-end (to support reinvestment in college infrastructure)
Achieved
Empower staff to excel
The Leadership Development and Succession Planning Framework was reviewed and updated. Three cohorts of vicepresidents, deans, directors and managers participated in Planning for Success, a 90-day program focused on building strategic and tactical planning skills. Twenty-two people took the training. Additional sessions will be offered next year.
4.2d Optimize usage of college resources
Empower staff to excel
Goal
Status
Implement targeted engagement practices in response to 2015 survey; resurvey staff engagement
Achieved
4.3a Empower staff to excel
Goal
Status
Implement improved recognition practices
Achieved
4.3c
Lakeland generated sufficient financial resources to contribute $4 million to its Strategic Investment Fund.
Objective
Objective
Schools and departments were involved in engagement sessions and activities throughout the year. Using Gallup’s Q12 survey once again, employees were surveyed in February 2017. There was a 77% participation rate among employees, a significant increase from the 25% participation rate in the first Gallup survey in 2015.
Schools and departments began recognizing employees for one, three and five years of service.
Objective
Goal
Status
Increase staff input into the CIP planning process
Achieved
4.3d Empower staff to excel
All schools and departments were consulted on the content of the 2017-2020 Comprehensive Institutional Plan and had an opportunity to provide input.
According to the 2017 results, 44% of employees are actively engaged, an increase of 20% from the previous survey. The actively disengaged stats showed improvement. In 2015, 24% of employees were actively disengaged. In 2017, that number dropped to 8%.
Annual Report 2016-2017 | 19
Access and Quality New academic program development at Lakeland is strategic and coordinated to meet the needs of students and the labour market. All programs are reviewed annually with more comprehensive evaluations approximately every five years. In the 2016-2019 Comprehensive Institutional Plan (CIP) Lakeland identified potential new programs. The following is an update on the programs included in the CIP.
20 | Annual Report 2016-2017
New program proposals
CIP Overview
Outcome
Apprenticeship
• Develop fourth period of Instrument Technician. • Identified regional training needs in plumbing, millwright and sheet metal. • Apprenticeship Hairstyling for the 2017-2018 academic year.
• Apprenticeship technical training seats are offered based on various factors including demand for training. There’s currently not enough demand to warrant the development of new technical training programs or the fourth period of Instrument Technician (renamed Instrumentation and Control Technician). • A Hairstyling program was approved by Advanced Education in February 2017 for delivery beginning in the 2017-2018 academic year.
Business
• Administrative Professional certificate program. • Explore potential for a credential in leadership.
• Administrative Professional program was approved for delivery beginning in the 2017-2018 academic year. • Deferred.
Human Services
• Transition the Community Mental Health program from a continuing education program to a credit program. • Explore the possibility for Animal-assisted Therapy programming.
• Effective July 1, 2016, Community Mental Health became a credit program. • Worked on development of an Animal-assisted Wellness program with involvement from Dreamcatchers Nature Assisted Therapy. Proposal to be submitted in 2017-2018.
Energy
• Reinstatement of Heavy Oil Operations Technician certificate program. • Development of 2nd Class Power Engineering. • Development of Wellsite Supervisor and Service/ Drilling Rig.
• The Heavy Oil Operations Technician program was reinstated. • 2nd Class Power Engineering program developed and approved for delivery beginning in the 2017-2018 academic year. • The Wellsite Supervisor program was approved and the online program began in November 2016. Due to the current climate, the Service/Drilling Rig program won’t be developed at this time
Environmental Sciences
• Potential expansion in Renewable Energy and Conservation. • Investigate potential of an Adventure Tourism program.
• The number of offerings of courses for the Renewable Energy and Conservation program was increased to remove bottlenecks in the program. This has led to an increase in enrolment into the program. • A review of new programming opportunities for Environmental Sciences was conducted. Other new program ideas, excluding the Adventure Tourism program, were identified as more important to develop.
Emergency Services
• Reinstatement of the Bachelor of Applied Business: Emergency Services program.
• The program was reinstated. Students began online classes in January 2017.
Degree completion
• Investigate opportunities in agriculture, environment and energy.
• Work done but no programs finalized in these areas. Lakeland and Athabasca University reaffirmed their educational partnership and will continue to work collaboratively to help students complete an Athabasca University degree at Lakeland. • Lakeland and the University of Alberta began discussions to offer the university’s Aboriginal Teacher Education Program at the Lloydminster campus. A decision will be made in the next academic year.
Annual Report 2016-2017 | 21
Enrolment Plan In the 2016-2019 CIP, Lakeland projected 2,067.6 full-load equivalents (FLEs), very close to the actual total of 2,073. Programming areas that exceeded projections were Business, Agricultural Sciences, University Transfer and Human Services. Demand for Apprenticeship, Power Engineering and Heavy Oil related programming declined due to the drop in oil and gas prices, which reduced employment prospects. According to Alberta Economic Development and Trade’s Highlights of the Alberta Economy 2017, the Alberta economy contracted by 3.8% in 2016 and unemployment rose to 8.1%. Due to reduced demand for face-to-face Power Engineering training through Lakeland’s continuing education department, Lakeland cancelled its intake in Bonnyville and saw enrolments decline in Lloydminster. Online Power Engineering numbers stayed consistent with previous years, but these are non-credit students and the numbers don’t contribute to FLEs. Highlights of the Alberta Economy 2017 also indicated that farm cash receipts for Alberta totalled $13.5 billion in 2016. This represents 22% of Canada’s primary agricultural production. The province posted the highest cattle receipts as well as the secondhighest total crop receipts in the country. Exports of crops and livestock rose 64% between 2006 and 2016. This industry growth may be a factor in the increased enrolment in the School of Agricultural Sciences as is the growing profile of Lakeland’s awardwinning Student-Managed Farm – Powered by New Holland.
22 | Annual Report 2016-2017
2016-2017 Full-load Equivalent (FLE) Enrolment by Program Lakeland FLEs totalled 2,073, exceeding projections for the 2016-2017 academic year.
Program
FLE Projection in CIP
Actual
Apprenticeship
354
289.241
Accounting Technician
11
14.8
American Sign Language and Deaf Culture Studies
10
14.6
Business Administration
12
5.7
Community Mental Health
2
8.4
Early Learning and Child Care
70
82.4
Educational Assistant
43
50.269
Emergency Medical Responder
1.6
1.335
Esthetician
10
17
Firefighter Certificate of Achievement
36
46.224
General Agriculture
15
13.697
Health Care Aide
15
30.014
Heavy Oil Operations Technician
33
17.35
Power Engineering
50
9.699
Pre-employment
45
30.482
Renewable Energy and Conservation
25
28.8
Street Rod Technologies
15
14
Veterinary Medical Assistant
28
25.365
Western Ranch and Cow Horse
22
21.2
Agribusiness
66
87.797
Animal Health Technology
79
74.8
Animal Science Technology
76
123.474
Business Administration
192
207.797
Child and Youth Care
58
57.325
Crop Technology
62
73.164
Early Learning and Child Care
50
44.575
Emergency Services Technology
58
54.696
Environmental Sciences
142
127.584
Heavy Oil Power Engineering
190
167.170
Interior Design Technology
41
33.974
Renewable Energy and Conservation
1
3.002
Sign Language Interpretation
7
8
Bachelor of Applied Business: Emergency Services
9
6.226
Bachelor of Applied Science: Environmental Management
30
28.813
University Studies
177
201.8
Employment Skills Enhancement
16
16.1
Open Studies
10
29.304
Tourism – Ready To Work
6
7.077
Total
2,067.6
2,073.254
Certificate
Diploma
Applied Degree
Other Non-Credential
Annual Report 2016-2017 | 23
Total FLEs 1,920.22 1,957.11 2,073.25
2014-2015 2015-2016 2016-2017
Program completions 1,175 1,183 1,254
2014-2015 2015-2016 2016-2017
Indigenous student enrolment (self-identified) FLEs
Unique students 90.759
2014-2015 2015-2016
186 68.952 133 132.670
2016-2017
216
International student enrolment FLEs
Unique students 54.067
2014-2015 2015-2016
76 36.357 57 82.463
2016-2017
112
Credit unique students Full-time
Part-time
Total
1,283 2,509
2014-2015
3,792 1,341 2,378
2015-2016
3,719 1,550 2016-2017
2,109 3,659
24 | Annual Report 2016-2017
Working with stakeholders & removing barriers Lakeland offers Academic Prep through The Commons as an option for people who do not meet entrance requirements in their program of choice. Prep modules are available at no cost to applicants in the areas of math, general science, English, biology, chemistry and physics. In 2016-2017, 34 students completed modules and received entrance into a Lakeland program. To provide an avenue for people 19 years of age and older to take Grade 12 courses, Lakeland will debut Adult 12 math and English courses in September 2017 at the Lloydminster campus. Since 2005, Lakeland has partnered with Inclusion Alberta to help students with developmental disabilities take post-secondary courses and participate in campus life. This past year Lakeland welcomed two inclusive students – one in Business and the other in University Transfer. Employment Skills Enhancement, Oilfield Truck Operator, Heavy Oil and Gas, and Tourism: Ready to Work prepared people for employment or to ladder into advanced learning opportunities at Lakeland.
Community Fostering strong campus-community partnerships with local organizations, businesses, and service clubs is important to Lakeland. Lakeland was involved in organizing events such as the Indigenous Economic Partnership Summit, Women’s Conference, Try-ATrade Expo, and Work-Stress-Life: Striking a Balance Conference. Lakeland hosted representatives from six Community Adult Learning Programs in May 2017. Information on admission processes, learner assessments, academic prep courses, GED testing and more was shared. Lakeland demonstrated how D2L (the college’s learning management system) works and how adult learners can use the system to access courses. Twice a year a provincial committee that includes representation from Community Adult Learning Programs and post-secondary institutions meet. Brad Onofrychuk, dean of Business and Continuing Education, represents Lakeland at those meetings. Lakeland worked with the Town of Wainwright and Wainwright Adult Learning to offer the Health Care Aide program in Wainwright. Students completed their coursework and labs at the Wainwright Health Centre and completed two practicums in the Wainwright region. Lloydminster Learning Council Association, Lloydminster Construction Association, Lloydminster Chamber of Commerce, Lakeland and Streetscapes worked together to plan and run a Business Education Conference in Lloydminster. Drama and music programming, summer camps, continuing education programs and more are offered to help meet community needs.
Applied Research Lakeland supports and encourages applied research to achieve excellent student outcomes and to support the social, environmental and economic life of communities throughout Alberta and beyond. Four priority areas for research were identified in the 2016-2019 Comprehensive Institutional Plan: • Agriculture
• Energy
• Environment
• Emergency Services
26 | Annual Report 2016-2017
Agriculture Lakeland is very involved in the Smart Agri-Food Supercluster, a multi-stakeholder consortium that intends to apply for federal funding through the Innovation Superclusters Initiative. The Smart Agri-Food Supercluster is focused on removing barriers in field systems that span the value chain from input providers to growers, processors, grocers and the public. The G.N. Sweet Livestock Research Facility officially opened in October 2016, the culmination of significant donor support from Judy Sweet. The modernized and expanded facility has GrowSafe technology for feed intake monitoring, new livestock handling facilities and a demonstration space. It was the first full-year of operation for the Student-Managed Farm (SMF) – Powered by New Holland livestock research unit. The unit purchased 50 replacement heifer calves to increase the research herd to 91 heifers and two bulls. Reducing cereal crop lodging is the focus of a collaborative research project that involves Lakeland, the University of Alberta and Alberta Agriculture and Forestry. Researchers are testing plant growth regulators that are relatively new to western Canada. Lakeland is conducting trials in the Vermilion region. The project is funded by the Alberta Crop Industry Development Fund.
Environment Lakeland’s 103 wetlands were assessed in 2016-2017. The researchers determined that the wetlands ranged from healthy to heavily impacted by cattle and cropping activity. To reap the full benefits of college wetlands, an integrated management strategy will be developed that will consider changes in current management practices to maintain and improve wetland health.
Energy As part of Lakeland’s applied research into integrated renewable systems, college researchers designed a solar cost calculator. In 2017, Lakeland partnered with Pembina Institute and the Municipal Climate Change Action Centre to turn the original solar cost calculator into an online solar cost calculator.
Other highlights Lakeland works with the Regional Business Accelerator and Community Futures Lloydminster to support youth entrepreneurship through the Biz Kids program. In the summer of 2016, 36 youth entrepreneurs participated in the program. Nathan James used his $100 start-up grant to help him develop Icycle Bicycle. He was named Vermilion Chamber of Commerce’s Junior Entrepreneur of 2016. Forty-nine youth were approved for the program in 2017. A new visual identity for Lakeland was the impetus for a name change involving research. The Centre for Sustainable Research (CSI) was renamed the Research Centre. The name better reflects the scope of work done at the site on the west side of the Vermilion campus.
Emergency Services Still exploring possibilities for research projects.
Annual Report 2016-2017 | 27
Internationalization International student recruitment, participation in international development projects, and providing opportunities for students to take their education to destinations across the world are Lakeland’s international areas of focus. Lakeland welcomed 112 international students from 22 countries during the year. The majority of students were enrolled in Business at the Lloydminster campus but there were students in numerous other programs across both campuses. Providing support to these students throughout the recruitment process through to graduation is important for recruitment, retention and marketing purposes. International assistants are based at each campus to support the students. Lakeland employees participated in two brand building/recruitment trips to India during the year. A study trip to Sri Lanka in February 2017 resulted in many firsts not only for Lakeland students, but also for a high commissioner. Thirteen Bachelor of Applied Science: Environmental Management students and three faculty members visited a river diversion project, rainforests and several national parks. They also met with students of the Environmental Sciences and Forestry Department of the University of Sri Jayewardenepura to discuss environmental management issues and share information on Lakeland’s StudentEnvironmental Consulting Office. Students and faculty held a joint seminar on environmental management best practices. A visit with Shelley Whiting, High Commissioner-designate of Canada to Sri Lanka, was also noteworthy as it was the first time Whiting had hosted students from a Canadian post-secondary institution. Lakeland students also travelled to Vietnam, Kazakhstan, Mexico and United States during the year for global learning experiences. Lakeland and NorQuest College are collaborating on a three-year remedial access development project in Tanzania. The project’s purpose is development of a remediation program for young adults struggling with academic readiness, who are entering the vocational education training system in Tanzania. The project is part of Colleges and Institutes Canada’s Improving Skills Training for Employment Program funded by Global Affairs Canada. Two faculty members from NorQuest travelled to Tanzania in April. Four Tanzanian administrators were at Lakeland in June. Paul Ostrowski, manager of Lakeland’s international department, received a Regulated International Student Immigration Adviser designation during the year.
28 | Annual Report 2016-2017
Information Technology To meet business needs and user expectations, Information Technology performed a major upgrade of network infrastructure in 2016-2017. This project is expected to be completed by June 2018. For both campuses, the project focused on the following areas: bandwidth upgrade, network infrastructure, wireless and video conferencing. Over the past year, global cybersecurity threats have expanded in Alberta post-secondary institutions. Lakeland continues to focus on cybersecurity governance, data protection and compliance. Starting in the fall of 2017, Lakeland will be a participant in a joint venture for the sharing of a Cybersecurity Information Security Officer (CISO). Lakeland also continues to be an active member of ShareIT, a collaborative initiative with other Alberta post-secondary institutions.
Annual Report 2016-2017 | 29
Capital Plan Thanks to investments from the Government of Alberta and the Government of Canada, generosity of donors and industry partners, and the use of internal financial resources, Lakeland’s landscape is very different from the previous academic year. The modernized G.N. Sweet Livestock Research Facility officially opened at the Vermilion campus in October 2016 and a new hairstyling lab/salon opened in April 2017 at the Lloydminster campus. Construction of a Dairy Learning Centre and an Animal Health Clinic also began during the year. The announcement of a $2.7 million private donation of three acres of industrial land and two large buildings west of Lloydminster was made in May. Much work was done on the development of a Vermilion campus revitalization plan. It will be finalized before 2018.
30 | Annual Report 2016-2017
The following is an update on the capital projects listed in the 2016-2019 Comprehensive Institutional Plan.
Project name
Status
Expected completion
New
Animal Health Clinic
In progress
Early in 2018
Sod turning in April and work began in May.
New
Dairy Learning Centre
In progress
August 2017
Broke ground March 15. Precast installed in six days; roof system installed in 12 days; building shell completed in 18 days.
Preservation
Trades Building Exterior and Roofing Repair
In progress
Unknown
Pilot project on 10 panels of glass and surrounding roofing completed in October. New pricing to be determined in 2017-2018.
Preservation
Replacement of Laboratory Space
Planning
Unknown
Part of Vermilion campus revitalization planning. Feasibility study underway.
Preservation
Vermilion Renovation and Classroom Renewal
Planning
Unknown
Feasibility study underway.
New
Residence Expansion
Planning
Unknown
Part of Vermilion campus revitalization planning. Feasibility study underway.
Preservation
Equine Learning Centre
Planning
Unknown
Exploring renovation and expansion as well as new building.
Preservation
Co-generation, Utilities and Lighting Retrofit
Co-generation on hold. Lighting upgrades ongoing.
Unknown
Lighting upgrades are funded through the Infrastructure Maintenance Program grant. Co-generation on hold until the project is more cost-effective.
Preservation
Paving
In progress
Unknown
Portions of Harcus Road were paved.
Preservation
Learning Commons
Planning
Unknown
Part of Vermilion campus revitalization planning.
Type
Progress during the year
Priority Projects
Other
Annual Report 2016-2017 | 31
Financial Discussion and Analysis This Financial Discussion and Analysis (FD&A) provides supplemental information that should be read in conjunction with Lakeland’s financial statements for the year ended June 30, 2017. The FD&A and audited financial statements are reviewed and approved by Lakeland’s Board of Governors upon the recommendation of the Audit and Risk Committee. Lakeland’s financial statements have been prepared in accordance with Canadian Public Sector Accounting Standards.
Statement of operations The primary operational driver for Lakeland is student enrolment. The college has experienced moderate enrolment increases over the last several years, and this trend is expected to continue. Tuition fees and revenue from sales of services and products to students will normally increase directly with student numbers, and although the related instructional expenses will increase in the same direction, they do not increase at the same rate, resulting in an increased capacity to contribute to Lakeland's Strategic Investment Fund. Increases to grants are typically offset by inflationary increases to salary and other operating costs, and donation revenue is most often restricted, and is only recognized as revenue when the related expense is incurred. What this means is that Lakeland’s financial position will not usually vary with grants and donation revenue. This is also true for major capital, renovation and maintenance projects that are funded with government grants – the revenue is offset by a matching expense, and there is typically no effect on the bottom line. Another primary factor that may affect Lakeland’s financial position is growth in non-enrolment related administrative costs. Large inflationary increases to salaries and benefits are typically not offset by comparable inflationary increases in revenues. New administrative positions, without related funding, are also sometimes necessary to deal with new regulatory requirements, large fundraising campaigns, and significant long-term enrolment growth. The Government of Alberta is currently managing a difficult fiscal situation. Although the provincial government provided a 2% increase to operating grants (approximately $660,000 in 2016-2017), future increases are not assured. Tuition fees, representing 20.9% of Lakeland's revenues, are regulated by the Government of Alberta and fee increases have not been permitted for four of the last five years. In each of the years of the freeze, in 2013-2014 and from 2015-2016 to 2016-2017, the operating grant increased modestly to compensate. However, it did not increase in 2017-2018. There has been no funding provided for enrolment growth since 2014-2015, and with the fiscal challenges faced by the province, Lakeland has limited capacity to increase its revenue to offset any cost increases. The Government of Alberta is conducting a significant review of the funding provided to Alberta Post-secondary Institutions and will roll out a new funding model in 2017-2018. Given this environment, fiscal restraint is prudent. Lakeland held the line on growth in operating expenses and will continue to do so. However, Lakeland also has a responsibility to deal with its aging infrastructure. The likelihood of receiving grants to fund campus revitalization is remote, so Lakeland needs to generate sufficient reserves to fund this high priority initiative. Accordingly, Lakeland's available surplus was (and will be) placed in the Strategic Investment Fund. This planned investment in reserves is necessary to support the long-term revitalization of Lakeland's infrastructure. Lakeland's full-load equivalents increased 5.9% from 1,957 in 2015-2016 to 2,073 in 2016-2017. Thanks primarily to enrolment growth, Lakeland's total revenues increased by $2.7 million. Expenses only increased by $1.2 million. Lakeland realized a significant positive variance from the balanced budget that was approved by the Board of Governors in May 2016. A large portion of this variance is due to fiscal prudence in order to contribute sufficient financial resources to the Strategic Investment Fund. To minimize the possibility that an actual deficit might occur, management uses conservative estimates to prepare the budget, especially in relation to its enrolments and fundraising. Other major reasons for the variance relate to staff position vacancies, costs savings in a variety of operational areas, and a large reduction in amortization expense due to a change in accounting policy related to capital assets.
32 | Annual Report 2016-2017
Revenue sources
$41,426,411 Government of Alberta grants $14,921,836 Student tuition and fees $9,482,246 Sales of services and products $2,236,019 Federal and other government grants $2,111,451 Donations and other grants $1,105,112 Investment income
Lakeland recognized $71.3 million in revenue in 2016-2017. This is a 3.9%, or $2.7 million, increase over the prior year.
Variance from Budget
Variance from Prior Year Actual
Actual
Percent of Total
41,426,411
58.12%
14,921,836
20.93%
1,053,536
1,244,507
Sales of services and products
9,482,246
13.30%
(1,473,915)
(440,572)
Federal and other government grants
2,236,019
3.14%
(504,773)
(385,800)
Donations and other grants
2,111,451
2.96%
1,702,501
792,861
Government of Alberta Grants
$
Student tuition and fees
Investment income Total Revenue
$
1,105,112
1.55%
71,283,075
100.00%
$
579,949
$
105,112 $
1,462,410
1,360,643
102,749 $
2,674,388
Annual Report 2016-2017 | 33
Government of Alberta grants Government of Alberta grants are the primary revenue source for Lakeland (58.1%). Note 19 to the financial statements provides a breakdown of the types of grants received from various departments and agencies of the Government of Alberta. Operating grants increased by 2% from $32.3 million to $32.9 million. The increase of $4.9 million in capital grants (per note 19) is primarily due to the Post-Secondary Institutions Strategic Investment Fund grant for the Dairy Learning Centre provided by the federal government via Advanced Education. Capital grants are more variable and depend on specific one-time funding provided by the Government of Alberta. Capital grants are not recognized as revenue when received; they are deferred ($4.1 million of the $4.8 million in Note 19) and recognized as revenue over the estimated useful life of the related externally funded capital asset(s). Student tuition and fees Lakeland’s second largest source of revenue is student tuition and fees (20.9%). As per Government of Alberta directive, tuition fee increases have been frozen for the last few years. Therefore, the $1.2 million increase in student tuition and fees was entirely due to enrolment growth. Although Lakeland is facing significant reductions in available seats for Apprenticeship programs, it has experienced significant enrolment growth in its other programs. Sales of services and products The next largest source of revenue is from sales of services and products. Ancillary revenues from the bookstore, residence, food services, athletics and recreation are included here. Although this revenue is highly dependent on student enrolments, there was a modest decline due to a large vacancy rate for residences, primarily because of market forces in the City of Lloydminster. Donations and other grants Donations and other grants increased mainly due to the launch of the college’s fundraising campaign. Lakeland received a $2.7 million donation to acquire the County Energy Park. Of this, $430,000 was related to the land value and was recorded under donation revenue. The rest was deferred and will be recognized over the useful life of the buildings. Investment income Lakeland held $36.2 million in investments and $10.8 million in cash at year end. The interest rate for its cash held is about 1% and related interest income earned for the year was $116,000. The market value of investments held by CIBC at year end was $26.9 million ($8.7 million in short term securities). The market value increase for the year was $792,000; these unrealized market gains are not recorded as revenue but are reflected as an increase in accumulated re-measurement gains on the statement of financial position (the total accumulated unrealized market gains are $3.1 million). Dividends and interest earned on these investments totaled $669,000 and this is recorded as investment income. The total weighted average rate of return for the investments held by CIBC was approximately 5.6%. The college’s scholarship and endowment fund is managed by TD Wealth. The market value of this fund at year end was $9.3 million. $6.9 million of this is permanently endowed, and $2.4 million is available for spending on the intended purpose. The dividends and interest earned on these investments for the year totaled $363,000. The market value decrease for the year was $17,000, and the accumulated unrealized market gains are $319,000. The total weighted average rate of return on investments held by TD Wealth was approximately 3.7% (the rate of return since inception in February 2014 is 4.4%). Investment income related to the scholarship and endowment fund is externally restricted (deferred) and is only recognized as investment income in the statement of operations when the related expenditure is incurred. The amount recognized as revenue in 2016-2017 was $331,000. Total investment income for all cash and investments, as recognized on the statement of operations, was $1.1 million, comprised of: $116,000 from cash, $658,000 from the CIBC investment fund, and $331,000 from the scholarship and endowment fund.
Expenses by type $40,450,809 Salaries and benefits $12,542,404 Materials, supplies and services $6,043,489 Amortization of capital assets $2,519,642 Repairs and maintenance $1,911,104 Utilities $843,571 Cost of goods sold $890,639 Scholarships and bursaries
Expenses by function
$27,802,821 Instruction and training $11,457,021 Academic and student support $9,020,559 Facillities operation and maintenance $10,590,605 Intitutional support $5,294,564 Ancillary services $1,036,088 Sponsored research
Annual Report 2016-2017 | 35
Expenses by type
Salaries and benefits
$
Materials, supplies and services
Actual
Percent of Total
40,450,809
62.04%
Variance from Budget $
(1,827,509)
Variance from Prior Year Actual $
1,562,236
12,542,404
19.24%
(744,094)
Amortization of capital assets
6,043,489
9.27%
(1,352,898)
(87,306) 142,579
Repairs and maintenance
2,519,642
3.86%
(549,953)
(511,875)
Utilities
1,911,104
2.93%
(282,846)
160,937
Cost of goods sold
843,571
1.29%
(57,698)
(106,023)
Scholarships and bursaries
890,639
1.37%
195,991
32,206
65,201,658
100.00%
Actual
Percent of Total
27,802,821
42.64%
11,457,021
17.57%
(767,013)
Total expenses
$
$
(4,619,007)
$
1,192,754
Expenses by functions
Instruction and training
$
Academic and student support Facilities operation and maintenance Institutional support Ancillary services Sponsored research Total expense
$
Variance from Budget $
(2,308,261)
Variance from Prior Year Actual $
739,983 (140,330)
9,020,559
13.83%
(1,169,754)
(241,967)
10,590,605
16.24%
(420,855)
1,686,562
5,294,564
8.12%
173,292
(225,596)
1,036,088
1.59%
65,201,658
100.00%
(126,416) $
(4,619,007)
(625,898) $
1,192,754
Lakeland’s expenses totalled $65.2 million in 2017, which represented a modest increase of $1.2 million (1.9%) over the prior year, and a positive variance of $4.6 million from the budget. Expenses are presented by function in the Statement of Operations and by object in note 17. The functional breakdown of expenses shows which activities the college is spending its money on. In 2017, just over 60% of expenses related to activities linked to direct instruction, training and related academic and student support. This compares quite favourably to other colleges of a similar size and/or mandate. Institutional support costs increased year-over-year primarily due to the cost of feasibility studies for campus revitalization plans, severance costs, and extra resources needed for the college’s major fundraising campaign. Other than that, expenses as expressed by function were generally consistent with the prior year. Salaries and benefits At 62% of total (2016 – 61%), salaries and benefits is the college’s largest expense. There was a large positive variance from the budget of $1.8 million. This is mainly due to conservative budgeting and position vacancies. There was a modest year-over-year increase of $1.6 million. This was mainly due to cost of living and merit adjustments. The number of full-time equivalent staff increased modestly from 462 to 480. Materials, supplies and services At 19% (2016 – 20%), this is the second largest expense for Lakeland. These expenses were 5.6% lower than budget, but the yearover-year variance was insignificant. Repairs and maintenance Repairs and maintenance expenses comprise only 3.9% of total. These expenses were 17% less than budget and prior year’s actuals. These variances are primarily due to lower than anticipated spending on infrastructure maintenance projects.
36 | Annual Report 2016-2017
Utilities and cost of goods sold Utilities comprise 2.9%, and cost-of-goods sold comprise 1.3% of Lakeland’s total expenses. Variances were insignificant. Although the college negotiated cost savings with its utility provider, these savings were offset by increases in the carbon tax. Scholarships and bursaries Lakeland provided $890,000 in scholarships and bursaries in 2017. With the launch of the college’s major fundraising campaign, this is expected to increase significantly over the next few years.
Financial position The accumulated surplus increased from $49.2 million to $55.5 million. Accumulated re-measurement gains increased by $789,000 due to market value increases in its investments. As per Public Sector Accounting Standards, market value gains cannot be recognized as revenue until they are realized via sale of the related investment. Lakeland's financial position appears to be relatively healthy. However, of the $55.5 million in accumulated surplus (see note 13), $33.5 million is not available for spending as $6.9 million relates to permanent restricted endowments and $26.6 million to investments in capital assets. Furthermore, approximately $7 million of the college’s Strategic Investment Fund (internally restricted net assets) is committed to projects in progress (Dairy Learning Centre, Animal Health Clinic, dust collector, other), and over $5 million of Lakeland's accumulated surplus is committed to future capital expenditures (PeopleSoft upgrade, IT infrastructure, other). This means that only approximately $10 million is available to fund high priority strategic initiatives. This is not enough for the significant investment that is needed to deal with Lakeland's aging infrastructure, to revitalize the Vermilion campus, and to modernize labs and classrooms. Therefore, Lakeland will need to continue to generate surpluses to fund planned investments in reserves. Most of Lakeland’s available resources ($4 million in 2017, $5 million in 2016) was (and will be in the future) allocated to the Strategic Investment Fund (internally restricted net assets) in order to fund campus revitalization and modernization of labs and classrooms. Lakeland’s tangible capital assets increased by $7.3 million, primarily due to the acquisition of the County Energy Park property, and construction of the Dairy Learning Centre and Animal Health Clinic.
Net financial assets Included in Lakeland’s net financial assets is $9.3 million that is related to investments restricted for endowments. $6.9 million of this relates to permanently restricted endowments, and cannot be spent. These funds generate investment income that can be spent on operations, but only as intended by the donor. A more important indicator of solvency is the college’s net financial assets excluding portfolio investments restricted for endowments. This was $18.2 million as at June 30, 2017, an increase of almost $2.3 million from the prior year.
Areas of significant financial risk Deferred maintenance, campus revitalization, modernization of classrooms and labs Lakeland has a significant deferred maintenance deficiency. Its buildings (inside and out), roads, and water and sewer lines are old and need significant investment to extend and/or maintain their useful life. Some of this deficiency can be funded by the Province’s Infrastructure Maintenance Grant ($1.4 million in 2017), but much more is needed. In the absence of adequate funding from the Government of Alberta, operating efficiencies are needed to address this and other long-term strategically important initiatives. Grants from the Government of Alberta and tuition fees The largest source of revenue for the college is grants from the Government of Alberta. The second largest source is tuition. These two sources combined represent 79% of the college’s total revenue. Although the operating grant increased by 2% for 2017, there was no increase in the prior two years. Furthermore, tuition fee price increases have been frozen for three years. Although the college tries its best to hold the line on the growth in expenses, operating costs still increase at or above the rate of inflation. This structural revenue deficit will eventually have to be offset by decreases in service, and/or staff.
Annual Report 2016-2017 | 37
Independent Auditor’s Report To the Board of Governors of Lakeland College Report on the Financial Statements I have audited the accompanying financial statements of Lakeland College, which comprise the statement of financial position as at June 30, 2017, and the statements of operations, remeasurement gains and losses, change in net financial assets and cash flows for the year then ended, and a summary of significant accounting policies and other explanatory information.
Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with Canadian public sector accounting standards, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
Auditor’s Responsibility My responsibility is to express an opinion on these financial statements based on my audit. I conducted my audit in accordance with Canadian generally accepted auditing standards. Those standards require that I comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my audit opinion.
Opinion In my opinion, the financial statements present fairly, in all material respects, the financial position of Lakeland College as at June 30, 2017, and the results of its operations, its remeasurement gains and losses, its changes in net financial assets and its cash flows for the year then ended in accordance with Canadian public sector accounting standards.
[Original signed by Merwan N. Saher FCPA, FCA] Auditor General October 18, 2017 Edmonton, Alberta
38 | Annual Report 2016-2017
Statement of Management Responsibility Year ended June 30, 2017 The financial statements of Lakeland College (the College) have been prepared by management in accordance with Canadian public sector accounting standards. The financial statements present fairly the financial position of the College as at June 30, 2017 and the results of its operations, remeasurement gains and losses, changes in net financial assets and cash flows for the year then ended. In fulfilling its responsibilities and recognizing the limits inherent in all systems, management has developed and maintains a system of internal control designed to provide reasonable assurance that Lakeland College assets are safeguarded from loss and that the accounting records are a reliable basis for the preparation of the financial statements. The Board of Governors is responsible for reviewing and approving the financial statements, and overseeing management’s performance of its financial reporting responsibilities. The Board of Governors carries out its responsibility for review of the financial statements principally through its Audit and Risk Committee. With the exception of the President, all members of the Audit and Risk Committee are not employees of the College. The Audit and Risk Committee meets with management and the external auditors to discuss the results of audit examinations and financial reporting matters. The external auditors have full access to the Audit and Risk Committee, with and without the presence of management. These financial statements have been reported on by the Auditor General of Alberta, the auditor appointed under the Post-secondary Learning Act. The Independent Auditor’s Report outlines the scope of the audit and provides the audit opinion on the fairness of presentation of the information in the financial statements.
[Original signed by Alice Wainwright-Stewart] President
[Original signed by Murray Walford] Chief Financial Officer
Statement of Financial Position As at June 30, 2017 2017
2016 (as restated, note 3)
Financial assets excluding portfolio investments restricted for endowments Cash and cash equivalents (note 4)
$
Portfolio investments - non-endowment (note 5) Accounts receivable Inventories for resale
10,833,036
$
4,661,485
26,878,703
26,483,597
3,678,776
2,574,358
260,681
288,721
41,651,196
34,008,161
11,446,777
6,577,459
1,200,000
1,320,000
10,709,720
10,079,536
Liabilities Accounts payable and accrued liabilities Debt (note 8) Deferred revenue (note 9) Liability for contaminated sites (note 12)
Net financial assets excluding portfolio investments restricted for endowments Portfolio investments – restricted for endowments (note 5)
92,075
93,976
23,448,572
18,070,971
18,202,624
15,937,190
9,270,979
9,075,038
27,473,603
25,012,228
86,182,999
78,869,622
Inventories of supplies
1,347,272
1,083,746
Prepaid expenses
1,750,162
1,788,899
89,280,433
81,742,267
116,754,036
106,754,495
Net financial assets Non-financial assets Tangible capital assets (note 11)
Net assets before spent deferred capital contributions Spent deferred capital contributions (note 10)
58,176,217
Net assets (note 13)
55,276,966
$
58,577,819
$
51,477,529
$
55,517,103
$
49,205,834
Net assets is comprised of: Accumulated surplus Accumulated remeasurement gains
3,060,716 $
58,577,819
2,271,695 $
Contingent liabilities and contractual obligations (notes 14 and 15) Approved by the Board of Governors
[Original signed by Darrel Howell] Chair, Board of Governors
40 | Annual Report 2016-2017
[Original signed by Bryan Perkins] Vice Chair, Board of Governors
51,477,529
Statement of Operations Year ended June 30, 2017 Budget
2017
(note 16)
2016 (as restated, note 3)
Revenues Government of Alberta grants (note 19)
$
Federal and other government grants
40,846,462
$
41,426,411
$
40,065,768
2,740,792
2,236,019
2,621,819
Student tuition and fees
13,868,300
14,921,836
13,677,329
Sales of services and products
10,956,161
9,482,246
9,922,818
408,950
2,111,451
1,318,590
1,000,000
1,105,112
1,002,363
69,820,665
71,283,075
68,608,687
Donations and other grants Investment income
Expenses (note 17) Instruction and training
30,111,082
27,802,821
27,062,838
Academic and student support
12,224,034
11,457,021
11,597,351
Facilities operation and maintenance
10,190,313
9,020,559
9,262,526
Institutional support
11,011,460
10,590,605
8,904,043
Ancillary services
5,121,272
5,294,564
5,520,160
Sponsored research
1,162,504
1,036,088
1,661,986
69,820,665
65,201,658
64,008,904
-
6,081,417
4,599,783
197,467
152,071
Annual operating surplus
$
Endowment contributions (note 13) Endowment capitalized investment income (note 13)
Annual surplus Accumulated surplus, beginning of year Accumulated surplus, end of year
$
32,385
24,352
229,852
176,423
6,311,269
4,776,206
49,205,834
44,429,628
55,517,103
$
49,205,834
Annual Report 2016-2017 | 41
Statement of Change in Net Financial Assets Year ended June 30, 2017 2017
2016 (as restated, note 3)
Annual surplus
$
Acquisition of tangible capital assets, net of proceeds from sale Amortization of tangible capital assets Loss on sale of tangible capital assets Change in inventories of supplies Change in prepaid expenses Change in spent deferred capital contributions (note 10) Net accumulated remeasurement gains (losses) Increase in net financial assets Net financial assets, beginning of year Net financial assets, end of year
42 | Annual Report 2016-2017
$
6,311,269
$
4,776,206
(13,658,469)
(2,697,994)
6,043,489
5,900,910
301,603
1,301
(263,526)
(65,941)
38,737
(329,416)
2,899,251
(2,565,609)
789,021
(284,742)
2,461,375
4,734,715
25,012,228
20,277,513
27,473,603
$
25,012,228
Statement of Remeasurement Gains and Losses Year ended June 30, 2017 2017 Accumulated remeasurement gains, beginning of year
$
2,271,695
2016 $
2,556,437
Unrealized gains (losses) attributable to: Portfolio investments - non-endowment
792,068
(296,475)
(3,047)
11,733
Amounts reclassified to statement of operations: Portfolio investments - non-endowment Accumulated remeasurement gains, end of year
$
3,060,716
$
2,271,695
$
3,060,716
$
2,271,695
$
3,060,716
$
2,271,695
Accumulated remeasurement gains is comprised of: Portfolio investments – non-endowment
Annual Report 2016-2017 | 43
Statement of Cash Flows Year ended June 30, 2017 2017
2016 (as restated, note 3)
Operating transactions Annual surplus
$
6,311,269
$
4,776,206
Add (deduct) non-cash items: Amortization of tangible capital assets
6,043,489
5,900,910
(Gain) loss on sale of portfolio investments
(149,930)
39,358
Loss on disposal of tangible capital assets
301,603
1,301
(3,871,330)
(3,285,241)
(1,104,418)
(1,164,569)
Expended capital recognized as revenue (Increase) in accounts receivable Decrease in inventories for resale Increase (decrease) in accounts payable and accrued liabilities Increase in deferred revenue (Decrease) in liability for contaminated sites (Increase) in inventories of supplies Decrease (increase) in prepaid expenses Increase in spent deferred capital contributions, less expended capital recognized as revenue Cash provided by operating transactions
28,040
103,056
4,869,312
(1,404,021)
647,486
374,168
(1,901)
(16,529)
(263,526)
(65,941)
38,737
(329,416)
4,461,765
519,632
17,310,596
5,448,914
(11,395,221)
(2,506,874)
46,492
8,896
(11,348,729)
(2,497,978)
(7,181,679)
(4,669,520)
7,511,363
3,722,324
329,684
(947,196)
Capital transactions Acquisition of tangible capital assets Proceeds on sale of tangible capital assets Cash (applied to) capital transactions Investing transactions Purchase of portfolio investments Proceeds on sale of portfolio investments Cash provided by (applied to) investing transactions Financing transactions Debt – repayment
(120,000)
(120,000)
Cash applied to financing transactions
(120,000)
(120,000)
Increase in cash and cash equivalents
6,171,551
1,883,740
Cash and cash equivalents, beginning of year
4,661,485
2,777,745
Cash and cash equivalents, end of year
44 | Annual Report 2016-2017
$
10,833,036
$
4,661,485
Notes to the Financial Statements Year ended June 30, 2017 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, 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 mandated credentials and programs. 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 – Public Sector Accounting Standards and Use of Estimates
These financial statements have been prepared in accordance with Canadian public sector accounting standards (PSAS).
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. The college’s management uses judgment to determine such estimates. Amortization of tangible capital assets and the revenue recognition for expended capital contributions are the most significant items based on 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}
Valuation of Financial Assets and Liabilities
The college’s financial assets and liabilities are generally measured as follows:
Financial statement component
Measurement
Cost or amortized cost Fair value Lower of cost or net realizable value Amortized cost Amortized cost Amortized cost
Cash and cash equivalents Portfolio investments Inventories held for resale Accounts receivable Accounts payable and accrued liabilities Debt
Unrealized gains and losses from changes in the fair value of financial assets and liabilities are recognized in the statement of remeasurement gains and losses. When the restricted nature of a financial instrument and any related changes in fair value create a liability, unrealized gains and losses are recognized as deferred revenue.
All financial assets are tested annually for impairment. When financial assets are impaired, impairment losses are recorded in the statement of operations. A write-down of a portfolio investment to reflect a loss in value is not reversed for a subsequent increase in value.
For financial assets and liabilities measured using amortized cost, the effective interest rate method is used to determine interest revenue or expense. Transaction costs are a component of cost for financial instruments measured using cost or amortized cost. Transaction costs are expensed for financial instruments measured at fair value. Investment management fees are expensed as incurred. The purchase and sale of cash and cash equivalents and portfolio investments are accounted for using trade-date accounting.
The college does not use foreign currency contracts or any other type of derivative financial instruments for trading or speculative purposes.
Annual Report 2016-2017 | 45
Notes to the Financial Statements (continued) Note 2 (continued)
Management evaluates contractual obligations for the existence of embedded derivatives, and has determined that no embedded derivatives are present for the year ending June 30, 2017. When derivatives are identified, management elects to either designate the entire contract for fair value measurement or separately measure the value of the derivative component when characteristics of the derivative are not closely related to the economic characteristics and risks of the contract itself. Contracts to buy or sell non-financial items for the college’s normal purchase, sale or usage requirements are not recognized as financial assets or financial liabilities.
{c}
Revenue Recognition
All revenues are reported on the accrual basis of accounting. Cash received for which goods or services have not been provided by year end is recorded as deferred revenue.
Government grants, non-government grants and donations
Government transfers are referred to as government grants.
Restricted grants and donations are recognized as deferred revenue if the terms for the use, or the terms along with the college’s actions and communications as to the use, create a liability. These grants and donations are recognized as revenue as the terms are met. If the grants and donations are used to acquire or construct tangible capital assets, revenue will be recognized over the useful life of the tangible capital assets.
Government grants without terms for the use of the grant are recorded as revenue when the college is eligible to receive the funds. Unrestricted non-government grants and donations are recorded as revenue in the year received or in the year the funds are committed to the college if the amount can be reasonably estimated and collection is reasonably assured.
In-kind donations of services, materials and tangible capital assets are recorded at fair value when such value can reasonably be determined. Transfers of tangible capital assets from related parties are recorded at the carrying value.
Grants and donations related to land
Grants and donations for the purchase of land are recognized as deferred revenue when received, and recognized as revenue when the land is purchased.
The college recognizes in-kind contributions of land as revenue at the fair value of the land when a fair value can be reasonably determined. When the college cannot determine the fair value, it records such in-kind contributions at nominal value.
Endowment donations
Endowment donations are recognized as revenue in the statement of operations in the year in which they are received, and are required by donors to be maintained intact in perpetuity.
Investment income
Investment income includes dividends, interest income and realized gains or losses on the sale of portfolio investments.
Investment income from restricted grants and donations is recognized as deferred revenue when the terms for use create a liability, and is recognized as investment income when the terms of the grant or donation are met.
Realized investment income allocated to endowment balances for the preservation of endowment capital purchasing power is recognized in the statement of operations as a component of endowment contributions and capitalized investment income.
{d} 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. Benefactors as well as college policy stipulate that the economic value of the endowments must be protected by limiting the amount of income that may be expended and reinvesting unexpended income.
46 | Annual Report 2016-2017
Notes to the Financial Statements (continued) Note 2 (continued)
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, including unspent investment income from prior years, is insufficient to fund the spending allocation, the spending allocation is funded from the cumulative capitalized investment income.
Endowment contributions, matching contributions, and associated investment income allocated for the preservation of endowment capital purchasing power are recognized in the statement of operations in the period in which they are received.
{e} Inventories Inventories held for resale are valued at the lower of cost or expected net realizable value and are determined using the
first-in-first-out method. Inventories of supplies are valued at cost.
{f}
Tangible Capital Assets
Tangible capital assets are recorded at cost, which includes amounts that are directly related to the acquisition, design, construction, development, improvement or betterment of the assets. Cost includes overhead directly attributable to construction and development, and interest costs that are directly attributable to the acquisition or construction of the asset. Work in progress, which includes facilities and improvement projects and development of information systems, is not amortized until after the project is complete and the asset is in service.
Capital lease obligations are recorded at the present value of the minimum lease payments excluding executor costs (e.g. insurance, maintenance costs, etc.). The discount rate used to determine the present value of the lease payments is the lower of the college’s rate for incremental borrowing or the interest rate implicit in the lease.
The cost, less residual value, of the tangible capital assets, excluding land, is amortized on a straight-line basis over the estimated useful lives as follows:
Building & site improvements Furniture and equipment Computer hardware and software Learning resources
3-40 years 5-10 years 5 years 10 years
Tangible capital assets are written down when conditions indicate that they no longer contribute to the college’s ability to provide goods and services, or when the value of future economic benefits associated with the tangible capital assets are less than their net book value. The net write-downs are recognized as expenses in the statement of operations.
Contributed capital assets are recorded as revenues at their fair market value on the date of donation, except in circumstances where fair value cannot be reasonably determined, which are then recognized at nominal value. Transfers of capital assets from related parties are recorded at the carrying value.
Intangible assets, works of art, historical treasures and collections are expensed when acquired and not recognized as tangible capital assets.
Annual Report 2016-2017 | 47
Notes to the Financial Statements (continued) Note 2 (continued)
{g}
Asset Retirement Obligations
Asset retirement obligations are recognized for statutory, contractual or legal obligations associated with the retirement of tangible capital assets when those obligations result from the acquisition, construction, development or normal operation of the assets. The obligations are measured initially at fair value, determined using present value methodology, and the resulting costs capitalized into the carrying amount of the related asset. In subsequent periods, the liability is adjusted for the accretion of discount and any changes in the amount or timing of the underlying future cash flows. The capitalized asset retirement cost is amortized on the same basis as the related asset and the discount accretion is included in determining the results of operations.
{h}
Foreign Currency Translation
Transaction amounts denominated in foreign currencies are translated into their Canadian dollar equivalents at exchange rates prevailing at the transaction dates. Carrying values of monetary assets and liabilities and non-monetary items included in the fair value category reflect the exchange rates at the statement of financial position date. Unrealized foreign exchange gains and losses are recognized in the statement of remeasurement gains and losses.
In the period of settlement, foreign exchange gains and losses are reclassified to the statement of operations, and the cumulative amount of remeasurement gains and losses is reversed in the statement of remeasurement gains and losses.
{i}
Employee Future Benefits
Pension
The college participates with other employers in the Local Authorities Pension Plan (LAPP). This pension plan is a multi-employer 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.
Other employee future benefits
The college provides other employment benefits to eligible employees; namely, self-insured short- term disability and other post-employment benefits. These benefits are recorded as a liability and expense when the event obligating the college occurs, and value is determined by actual costs incurred.
{j}
Liability for Contaminated Sites
Contaminated sites are a result of contamination of a chemical, organic or radioactive material or live organism that exceeds an environmental standard, being introduced into soil, water or sediment. The liability is recognized net of any expected recoveries. A liability for remediation of contaminated sites normally results from an operation(s) that is no longer in productive use and is recognized when all of the following criteria are met:
i. an environmental standard exists; ii. contamination exceeds the environmental standard; iii. the college is directly responsible or accepts responsibility; iv. it is expected that future economic benefits will be given up; and v. a reasonable estimate of the amount can be made.
48 | Annual Report 2016-2017
Notes to the Financial Statements (continued) Note 2 (continued)
{k}
Expense by Function
The college uses the following categories of functions on its statement of operations:
Instruction and training
Expenses relating directly to instruction and training programs of the college. This function includes expenses incurred by faculties for their scholarly activities.
Academic and student support
Expenses relating to support for the academic functions of the college both directly and indirectly. This function also includes expenses incurred in order to provide services to students and faculty.
Facilities operation and maintenance
Expenses relating to maintenance and renewal of facilities that house the teaching, research and administrative activities within the college. These include utilities, facilities administration, building maintenance, custodial services, landscaping and grounds keeping, as well as major repairs and renovations.
Institutional support
Expenses relating to support for operational functions of the college both directly and indirectly. This function includes expenses incurred by the administrative functions of the college.
Ancillary services
Expenses relating to services and products provided to the college community and to external individuals and organizations. Services include the college bookstore, recreation and student residences.
Sponsored research
Expenses for all sponsored research activities specifically funded by restricted grants and donations.
{l}
Funds & Reserves
Certain amounts, as approved by the Board of Governors, are set aside in accumulated surplus for future operating and capital purposes. Transfers to / from funds and reserves are an adjustment to the respective fund when approved.
{m}
Future Accounting Changes
In March 2015, the Public Sector Accounting Board issued PS 2200 Related party disclosures and PS 3420 Inter-entity transactions. In June 2015, the Public Sector Accounting Board issued PS 3210 Assets, PS 3320 Contingent assets, PS 3380 Contractual rights, and PS 3430 Restructuring transactions. These accounting standards are effective for fiscal years starting on or after April 1, 2017, with the exception of PS 3430, which is effective for fiscal years starting on or after April 1, 2018.
• PS 2200 - Related party disclosures defines a related party and identifies disclosures for related parties and related party transactions, including key management personnel and close family members. • PS 3420 - Inter-entity transactions, establishes standards on how to account for and report transactions between public sector entities that comprise a government’s reporting entity from both a provider and recipient perspective. • PS 3210 - Assets provides guidance for applying the definition of assets set out in PS 1000, Financial statement concepts, and establishes general disclosure standards for assets.
• PS 3320 - Contingent assets defines and establishes disclosure standards for contingent assets.
• PS 3380 - Contractual rights defines and establishes disclosure standards on contractual rights.
• PS 3430 - Restructuring transactions defines a restructuring transaction and establishes standards for recognizing and measuring assets and liabilities transferred in a restructuring transaction.
Management is currently assessing the impact of these new standards on the financial statements. The college discloses transactions and balances related to the Government of Alberta in note 19.
Annual Report 2016-2017 | 49
Notes to the Financial Statements (continued) 3
Change in Accounting Policy
Effective July 1, 2016, Lakeland College increased the threshold for recording capital assets from $1,000 to $5,000. This change in accounting policy has been applied retrospectively with restatement of comparative numbers. The impact on the prior year’s financial statements is as follows:
2016 As previously reported
Adjustment
As restated
Statement of financial position: Tangible capital assets
$
81,803,910
$
(2,934,288)
$
78,869,622
Spent deferred capital contributions
56,028,078
(751,112)
55,276,966
Accumulated surplus
51,389,010
(2,183,176)
49,205,834
40,285,715
(219,947)
40,065,768
Statement of operations: Revenue Government of Alberta grants Federal and other government grants
2,643,168
(21,349)
2,621,819
Sales of services and products
9,845,434
77,384
9,922,818
Donations and other grants
1,358,164
(39,574)
1,318,590
Instruction and training
27,410,563
(347,725)
27,062,838
Academic and student support
11,626,637
(29,286)
11,597,351
Expense
Facilities operations and maintenance
9,201,697
60,829
9,262,526
Institutional support
8,898,572
5,471
8,904,043
Ancillary services
5,561,217
(41,057)
5,520,160
Sponsored research
1,675,709
(13,723)
1,661,986
4,614,201
162,005
4,776,206
Accumulated surplus, beginning of year
46,774,809
(2,345,181)
44,429,628
Accumulated surplus, end of year
51,389,010
(2,183,176)
49,205,834
(3,327,122)
620,248
(2,706,874)
6,886,649
(985,739)
5,900,910
78,685
(77,384)
1,301
(2,846,479)
280,870
(2,565,609)
Annual surplus
Statement of change in net financial assets: Acquisition of tangible capital assets Amortization of tangible capital assets Loss on sale of tangible capital assets Change in spent deferred capital contributions
4
Cash and Cash Equivalents
Cash and cash equivalents are composed of:
2017 Cash
$
10,833,036
2016 $
4,661,485
Cash equivalents include short term investments with a short maturity less than three months from the date of acquisition.
50 | Annual Report 2016-2017
Notes to the Financial Statements (continued) 5
Portfolio Investments
2017 Portfolio investments – non-endowment
$
26,878,703
$
36,149,682
Portfolio investments – restricted for endowments
2016 $
26,483,597
$
35,558,635
9,270,979
9,075,038
The composition of portfolio investments measured at fair value is as follows:
2017 Level 1
Level 2
Level 3
Total
Investments at fair value: Bonds Canadian bonds
$
Pooled investment funds
6,084,957
$
-
-
$
9,833,263
-
$
-
6,084,957 9,833,263
Equities Canadian equities
1,462,237
-
-
1,462,237
Foreign equities
1,723,717
-
-
1,723,717
-
16,586,232
-
16,586,232
Pooled investment funds Money market and term securities
$
9,270,911
459,276 $
25.6%
26,878,771
$
74.4%
-
459,276 $
36,149,682
0.0%
100.0%
Level 3
Total
2016 Level 1
Level 2
Investments at fair value: Bonds Canadian bonds
$
Pooled investment funds
5,699,787
$
-
-
$
9,734,506
-
$
-
5,699,787 9,734,506
Equities Canadian equities
1,309,476
-
-
1,309,476
Foreign equities
2,065,775
-
-
2,065,775
-
15,279,950
-
15,279,950
Pooled investment funds Money market and term securities
$
9,075,038
1,469,141 $
25.5%
26,483,597 74.5%
$
0.0%
1,469,141 $
35,558,635 100.0%
The fair value measurements are those derived from:
Level 1 – Quoted prices in active markets for identical assets or liabilities;
Level 2 – Fair value measurements are those derived from inputs other than quoted prices included within level 1 that are observable for the assets, either directly (i.e. as prices) or indirectly (i.e. derived from prices);
Level 3 – Fair value measurements are those derived from valuation techniques that include inputs for the assets that are not based on observable market data (unobservable inputs).
Annual Report 2016-2017 | 51
Notes to the Financial Statements (continued) 6
Financial Risk Management
The college is exposed to the following risks:
Market price risk
The college is exposed to market price risk - the risk that the value of a financial instrument will fluctuate as a result of changes in market prices, whether those changes are caused by factors specific to the individual security, its issuer or general market factors affecting all securities. To manage this risk, the college has established an investment policy with a target asset mix that is diversified by asset class with individual issuer limits and is designed to achieve a long-term rate of return that in real terms equals or exceeds total endowment expenditures with an acceptable level of risk.
The college assesses its portfolio sensitivity to a percentage increase or decrease in market prices. The sensitivity rate is determined using the historical annualized standard deviation for portfolio investments over several years, as determined by the college’s investment fund manager’s reports.
At June 30, 2017, the impact of a change in the rate of return on portfolio investments would be as follows:
Portfolio investments – non endowment
• 2.95% change in bonds would result in a $290,275 increase or decrease (2016 – 2.95% and $287,040)
• 6.38% change in equities would result in a $1,057,928 increase or decrease (2016 – 6.25% and $955,088)
Portfolio investments – restricted for endowments
• 2.43% change in bonds would result in a $147,864 increase or decrease (2016 – 2.30% and $154,417)
• 9.11% change in equities would result in a $290,214 increase or decrease (2016 – 10.20% and $344,247)
Foreign currency risk
Foreign currency risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. The college is exposed to foreign exchange risk on investments that are denominated in foreign currencies. The college does not use foreign currency forward contracts or any other type of derivative financial instruments for trading or speculative purposes. The college’s exposure to foreign exchange risk is very low due to minimal business activities conducted in a foreign currency.
Credit risk
Counterparty credit risk is the risk of loss arising from the failure of a counterparty to fully honor its financial obligations with the college. The college is exposed to credit risk on investments and has established an investment policy with required minimum credit quality standards and issuer limits to manage this risk. The credit risk from accounts receivable is low as the majority of balances are due from government agencies and corporate sponsors.
The credit risks on investments held are as follows:
Credit rating
2017
2016
AAA
14.3%
14.6%
AA
24.8%
25.5%
AA-
3.2%
0.0%
A+
20.7%
19.1%
A
37.0%
37.7%
A-
0.0%
3.1%
100.0%
100.0%
52 | Annual Report 2016-2017
Notes to the Financial Statements (continued) Note 6 (continued)
Liquidity risk
Liquidity risk is the risk that the college will encounter difficulty in meeting obligations associated with its financial liabilities. The college maintains a portfolio of short-term investments to manage short-term cash requirements.
Interest rate risk
Interest rate risk is the risk to the college’s earnings that arise from the fluctuations in interest rates and the degree of volatility of these rates. This risk is managed by investment policies that limit the term to maturity of certain fixed income securities that the college holds. Interest risk on the college’s debt is managed through fixed-risk agreements with Alberta Capital Finance Authority (note 8).
The maturity and effective market yield of interest bearing investments are as follows:
Less than 1 year
1 to 5 years
Greater than 5 years
Average effective market yield
Cash and cash equivalents
100.0%
0.0%
0.0%
1.0%
Portfolio investments, marketable securities
100.0%
0.0%
0.0%
1.1%
0.0%
48.8%
51.2%
2.2%
Asset Class
Portfolio investments, fixed income
7
Employee Future Benefit Liabilities
Defined benefit plan accounted for on a defined contribution basis
Local Authorities Pension Plan (LAPP)
The LAPP is a multi-employer contributory defined benefit pension plan for support staff members and is accounted for on a defined contribution basis. At December 31, 2016, the LAPP reported an actuarial deficiency of $637 million (2015 - $923 million deficiency). An actuarial valuation of the LAPP was carried out as at December 31, 2015 and was then extrapolated to December 31, 2016. The pension expense recorded in these financial statements is $3,277,117 (2016 - $3,122,273). Other than the requirement to make additional contributions, the college does not bear any risk related to the LAPP deficit.
8
Debt Debt is measured at amortized cost and is comprised of the following:
Debentures payable to Alberta Capital Finance Authority
Collateral
Maturity
Interest Rate
Residences
2026
6.5%
2017
2016
$
1,200,000
$
1,320,000
$
1,200,000
$
1,320,000
Annual Report 2016-2017 | 53
Notes to the Financial Statements (continued) Note 8 (continued)
Principal and interest repayments in each of the next five years and thereafter are as follows:
Principal 2018
$
Interest
120,000
$
Total
78,000
$
198,000
2019
120,000
70,200
190,200
2020
120,000
62,400
182,400
2021
120,000
54,600
174,600
2022
120,000
46,800
166,800
Thereafter
600,000
117,000
717,000
$
1,200,000
$
429,000
$
1,629,000
Interest expense on debt is $78,650 (2016 - $86,450) and is included in the statement of operations.
The net book value of assets pledged as collateral is $2,155,301.
9
Deferred Revenue
Deferred revenues are set aside for specific purposes as required either by legislation, regulation or agreement:
Deferred research and special purpose Balance, beginning of year
$
6,047,874
2017 Unspent deferred Tuition and capital other fees contributions $
1,429,504
$
2,602,158
2016 Total
$
10,079,536
Total
$
9,776,754
8,599,912
7,808,864
16,800,390
33,209,166
Restricted investment income
341,572
18,306
-
359,878
275,124
Change in unrealized (losses) gains
(17,302)
-
-
(17,302)
(71,388)
Transfers to spent deferred capital contributions
(52,554)
(6,718,027)
-
(6,770,581)
(719,632)
(8,787,399)
(438,761)
(16,806,430)
(26,032,590)
(24,075,545)
(118,387)
-
-
(118,387)
(58,078)
Grants, tuition, donations received
Recognized as revenue Transfers to endowments Other Balance, end of year
246,910 $
6,260,626
(246,910) $
1,852,976
-
$
2,596,118
24,955,667
$
10,709,720
(3,366) $
10,079,536
10
Spent Deferred Capital Contributions
Spent deferred capital contributions is comprised of restricted grants and donations spent on tangible capital acquisitions (not yet recognized as revenue).
2017
2016 (as restated, note 3)
Spent deferred capital contributions Balance, beginning of year
$
Transfers from unspent deferred capital contributions Expended capital recognized as revenue
54 | Annual Report 2016-2017
$
6,718,027
Transfers from deferred research and special purpose Spent deferred capital contributions, end of year
55,276,966
$
57,842,575 494,416
52,554
225,216
(3,871,330)
(3,285,241)
58,176,217
$
55,276,966
Notes to the Financial Statements (continued) 11
Tangible Capital Assets
Land
2017 Computer Building Furniture & hardware & site equipment ¹ & software
2016 Total
Total (as restated, note 3)
14,431 $185,311,967
$ 183,746,498
Learning resources
Cost ᵃ Balance, beginning of Year (as restated) Acquisitions ᵇ
$ 5,580,712 $140,130,512
$ 21,070,226
$18,516,086
$
450,000
11,142,473
1,256,767
855,723
-
13,704,963
2,706,874
-
-
(952,684)
(150,239)
-
(1,102,923)
(1,141,405)
6,030,712
151,272,985
21,374,309
19,221,570
14,431
197,914,007
185,311,967
Balance, beginning of Year (as restated)
-
$78,118,984
$ 12,579,757
$15,729,173
14,431 $106,442,345
$ 101,672,661
Amortization expense
-
3,593,845
1,399,454
1,050,191
-
6,043,490
5,900,910
Effects on disposals, Including write-downs
-
-
(619,049)
(135,778)
-
(754,827)
(1,131,226)
-
81,712,829
13,360,162
16,643,586
14,431
111,731,008
106,442,345
Net book value at June 30, 2017
$ 6,030,712
$69,560,156
$8,014,147
$ 2,577,984
$
-
$86,182,999
Net book value at June 30, 2016 (as restated, note 3)
$ 5,580,712
$62,011,528
$ 8,490,469
$ 2,786,913
$
-
Disposals, including Write-downs
Accumulated amortization $
No interest was capitalized by the college during the 2017 or 2016 fiscal years.
(1) Equipment includes vehicles, office equipment and furniture, and other equipment.
$ 78,869,622
(a) Cost includes work in progress at June 30, 2017 totaling $9,852,783 (2016 - $889,363) comprised of $8,976,019 in buildings and site improvements (2016 - $392,949), $706,516 in equipment (2016 - $322,806) and $170,248 in software (2016 - $173,607). These assets are not amortized as the assets are not yet available for use. (b) Acquisitions during the year include in-kind contributions valued at $2,740,322 (land - $430,581, buildings - $2,267,948, vehicles - $41,793). In-kind contributions in 2016 consisted of vehicles valued at $200,000.
Annual Report 2016-2017 | 55
Notes to the Financial Statements (continued) 12 Liability for Contaminated Sites
The composition of liabilities is a follows:
2017 Balance, beginning of year
$
2016
93,976
$
110,505
Addition to liabilities during the year
-
-
Change in estimate related to existing sites
-
-
Remediation work performed
(1,901)
Balance, end of year
$
(16,529)
92,075
$
93,976
The college has accepted responsibility to perform remediation work on three sites related to contaminated soils and groundwater.
Two sites were contaminated as a result of historical agricultural activity, and remediation is expected to consist of risk management and monitoring over the next two years. The remaining site was contaminated as a result of the disposal of ash and petrochemical products. Remediation for this site is expected to consist of excavation and disposal of contaminated soil over the next year.
Liabilities have been calculated using estimates of undiscounted cash flows generated by third parties.
13 Net Assets
Net assets, as at July 1, 2015
Accumulated net assets from operations (as restated, note 3)
Investment in tangible capital assets (as restated, note 3)
$
$
Annual surplus
4,648,802
21,967,565
$
Internally restricted net assets
Endowments
13,833,886
$
4,776,206
-
-
(152,071)
-
-
6,535,812
Total net assets (as restated, note 3)
$
46,986,065 4,776,206
Endowments New donations
152,071
-
24,352
-
-
-
-
(2,637,532)
-
-
-
2,673,312
(639,753)
-
-
(120,000)
120,000
-
-
-
34,633
(34,633)
-
-
-
296,755
-
(296,755)
-
-
Net board appropriation to internally restricted net assets
(5,000,000)
-
5,000,000
-
-
Change in accumulated remeasurement gains (losses)
(284,742)
-
-
-
(284,742)
Capitalized investment income
(24,352)
Transfer to (from) endowments
-
-
2,637,532 (2,033,559)
Tangible capital assets Amortization of tangible capital assets Acquisition of tangible capital assets Debt repayment Net book value of tangible capital asset disposals Operating expenses funded from internally restricted net assets
Net assets, as at June 30, 2016 (as restated)
56 | Annual Report 2016-2017
$
4,779,204
$
22,088,712
$
17,897,378
$
6,712,235
$
51,477,529
Notes to the Financial Statements (continued) Note 13 (continued)
Accumulated net assets from operations (as restated, note 3)
Investment in tangible capital assets (as restated, note 3)
Internally restricted net assets
Endowments
Total net assets (as restated, note 3)
6,311,269
-
-
-
6,311,269
Annual surplus Endowments New donations
(197,467)
-
-
197,467
-
Capitalized investment income
(32,385)
-
-
32,385
-
Transfer to (from) endowments
-
-
-
-
-
2,441,712
(2,441,712)
-
-
-
(1,396,808)
6,887,885
(5,491,077)
-
-
(120,000)
120,000
-
-
-
78,543
(78,543)
-
-
-
108,865
-
(108,865)
-
-
Net board appropriation to internally restricted net assets
(4,000,000)
-
4,000,000
-
-
Change in accumulated remeasurement gains (losses)
789,021
-
-
-
789,021
Tangible capital assets Amortization of tangible capital assets Acquisition of tangible capital assets Debt repayment Net book value of tangible capital asset disposals Operating expenses funded from internally restricted net assets
Net assets, at June 30, 2017
$
8,761,954
$
26,576,342
$
5,701,238
$
$
16,297,436
$
6,942,087
$
58,577,819
26,576,342
$16,297,436
$
6,942,087
$
55,517,103
-
-
26,576,342
$16,297,436
Net assets is comprised of: Accumulated surplus Accumulated remeasurement gains and losses
3,060,716 $
8,761,954
$
$
6,942,087
3,060,716 $
58,577,819
Investment in tangible capital assets represents the amount of the college’s net assets that has been invested in the college’s capital assets.
Internally restricted net assets represent amounts set aside or appropriated by the college’s Board of Governors. 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 reserved for future purposes are summarized as follows:
Annual Report 2016-2017 | 57
Notes to the Financial Statements (continued) Note 13 (continued)
Balance, beginning of year
Appropriations Net additions from (returned or (disbursements) to) unrestricted during the year net assets
Balance, end of year
Appropriations for capital activities Heavy oil petroleum facility
$
Major capital projects
2,006,428
$
(1,000,000)
12,560,906
Emerging capital needs
$
(60,959)
3,511,361
$
945,469
(5,209,859)
10,862,408
540,691
1,209,309
(220,259)
1,529,741
15,108,025
3,720,670
(5,491,077)
13,337,618
2,515,731
279,330
(165,783)
2,629,278
Appropriations for operating activities Major maintenance Delivery initiatives Total appropriations
14
$
273,622
-
56,918
330,540
2,789,353
279,330
(108,865)
2,959,818
17,897,378
$
4,000,000
$
(5,599,942)
$
16,297,436
Contingent Liabilities
(a)
The college is a defendant in one legal proceeding. While the ultimate outcome and liability of this proceeding 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. Management has concluded that this claim does not meet the criteria for being recorded under PSAS.
(b)
The college has identified potential asset retirement obligations related to the existence of asbestos in a number of its facilities. Although not a current health hazard, upon renovation or demolition of these facilities, the college may be required to take appropriate remediation procedures to remove the asbestos. As the college has no legal obligation to remove the asbestos in these facilities as long as the asbestos is contained and does not pose a public health risk, the fair value of the obligation cannot be reasonably estimated due to the indeterminate timing and scope of the removal. The asset retirement obligations for these assets will be recorded in the period in which there is certainty that the capital project will proceed and there is sufficient information to estimate fair value of the obligation.
15
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. The estimated aggregate amounts payable for the unexpired terms of these contractual obligations are as follows:
Service contracts 2018
$
1,221,148
$
Capital projects
Information systems and technology
8,050,161
$
164,357
Long term leases $
177,861
Total
$
9,613,527
2019
843,200
-
10,200
104,656
958,056
2020
744,626
-
10,200
64,144
818,970
2021
563,842
-
10,200
18,637
592,679
2022
121,579
-
10,200
3,713
135,492
Thereafter
1,392 $
58 | Annual Report 2016-2017
3,495,787
$
8,050,161
$
205,157
$
369,011
1,392 $
12,120,116
Notes to the Financial Statements (continued) 16 Budget Figures
The college’s 2016-2017 budget was approved by the Board of Governors on May 25, 2016 and was presented to the Minister of Advanced Education as part of the college’s submission of its 2016 - 2019 Comprehensive Institutional Plan. Certain budget figures from the college’s 2016 - 2019 Comprehensive Institutional Plan have been reclassified to conform to the presentation adopted in the 2017 financial statements.
17 Expense by Object
The following is a summary of expense by object:
2017
2016
Budget
Salaries and benefits
$
42,278,318
Actual
$
40,450,809
Actual (as restated, note 3) $
38,888,573
Material, supplies and services
13,286,498
12,542,404
12,629,710
Repairs & maintenance
3,069,595
2,519,642
3,031,517
Cost of goods sold
901,269
843,571
949,594
Amortization of capital assets
7,396,387
6,043,489
5,900,910
Utilities
2,193,950
1,911,104
1,750,167
694,648
890,639
858,433
Scholarships and bursaries $
69,820,665
$
65,201,658
$
64,008,904
18 Funds Held on Behalf of Others
The college holds the following funds on behalf of others over which the Board of Governors has no power of appropriation. Accordingly, these funds are not included in the financial statements.
2017
2016
Campus Alberta Risk Assurance Committee
$
-
$
57,628
$
-
$
57,628
Annual Report 2016-2017 | 59
Notes to the Financial Statements (continued) 19 Government of Alberta Transactions and Balances
The college operates under the authority and statutes of the Province of Alberta. Transactions and balances between the college and the Government of Alberta are measured at the exchange amount and are summarized below.
2017
2016
Grants from Government of Alberta Advanced Education Operating
$
32,915,346
Capital
7,389,839
Other
5,705,403
Total Advanced Education
$
32,257,229 2,572,318 5,339,198
$
46,010,588
$
40,168,745
$
128,000
$
14,346
Other Government of Alberta departments and agencies Alberta Agriculture and Forestry Culture and Tourism
64,651
96,976
Labour
17,497
-
Economic Development and Trade
30,000
-
-
55,000
Alberta Innovates Total other Government of Alberta departments and agencies
$
240,148
$
166,322
Total contributions received
$
46,250,736
$
40,335,067
$
41,426,411
$
40,065,768
-
$
Less: deferred contributions
(4,824,325)
(269,299)
Accounts receivable Other post-secondary institutions
$
Other Government of Alberta departments and agencies
34,127
172,255
$
34,127
$
172,255
$
136,328
$
18,381
$
153,933
$
26,962
Accounts payable Other post-secondary institutions Other Government of Alberta departments and agencies
17,605
The college has liabilities with Alberta Capital Finance Authority as described in note 8.
60 | Annual Report 2016-2017
8,581
Notes to the Financial Statements (continued) 20
Salary and Employee Benefits
2017 Other cash benefits ²
Base salary ¹ 1
2016
Other non-cash benefits ³
Total
Total 41
Governance Chair of Board of Governors
$
Members of Board of Governors
-
$
7,119
$
309
$
7,428
$
8,880
-
8,117
23
8,140
16,453
-
15,236
332
15,568
25,333
275,000
-
35,126
310,126
309,557
VP Academic
189,667
-
35,091
224,758
222,999
VP Advancement
155,617
-
42,695
198,312
184,038
VP Corporate Services
176,800
23,329
34,555
234,684
211,940
Senior Leadership President Vice-Presidents
Other Chief Financial Officer Director Human Resources
31,150
-
8,743
39,893
-
130,591
-
30,785
161,376
41,344
958,825 $
(1) (2) (3) (4) (5) (6)
21
958,825
23,329 $
38,565
186,995 $
187,327
1,169,149 $
1,184,717
969,878 $
995,211
Base salary includes pensionable base pay. Other cash benefits include honoraria and other non-salary payments. 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 and professional memberships. Professional development costs were incorrectly included in the prior year amounts. The prior year totals were restated as follows: Chair Board of Governors ($4,223), Members of Board of Governors ($4,223), President ($8,645), VP Academic ($10,531), VP Advancement ($9,981), and VP Corporate Services ($11,122). The Chief Financial Officer commenced employment on April 12, 2017. The Director Human Resources commenced employment on April 4, 2016.
Comparative Figures Certain 2016 figures have been reclassified to conform to the presentation adopted in the 2017 financial statements.
Annual Report 2016-2017 | 61
Appendix A – Donors Lakeland College thanks the following supporters for their donations to the college between July 1, 2016 and June 30, 2017. 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. 154423 Canada Inc.
Baran, Gerard & Yvette
Buchta, Wayne
A.D.R. Farms Ltd.
Battle River Community Foundation
Bulani, Garren
Abraham, Lorne
Bazinet, Jason
Boutique, Cactus & Sage
Adamson, Shane & Lynette
Becker, Donna
Callander, Mary & James
Advisian
Becker, Sheldon & Peggy
Cameron, Robert & Shirley
Agriculture Financial Services Corp.
Belosevic, Dr. Iliya
Alberta Assessors' Association
Bemac Construction Corp.
Canadian Association of Petroleum Producers
Alberta Association of Animal Health Technologists
Benson Medical Industries Inc.
Alberta Capital Finance Authority
Bernes, Sandra
Alberta Minister of Finance Disbursement Account II
Best Environmental Technologies
Alberta Seed Growers Altman, T.J. & Georgina Andersen, Dennis Apsassin, Clarence Aramark Canada Ltd. Assure Occupational Testing Inc. Aston, Randy Aston, Shirley ATB Financial ATCO Electric ATCO Gas Atkinson, Genevieve Aughey, Janice Backtracking Custom Bale Hauling Baert, Genna Baker, Ken & Jean Baker, Sheldon & Laura Banks, Helen Banner Business Services Ltd. BAR Engineering Co. Ltd.
*Berglund, Ellen (Jo)
Bews, Ron & Diane Big Kahuna Sport Company Bilben, Larry & Sharon Biovision Seed Research Limited Bishop, Cathi Block's Agencies Boardom Snow Skate Life Bocock, Terry & Kathleen Boehm's Physiotherapy Clinic
Canadian Imperial Bank of Commerce Canadian Natural Resources Limited Canadian Tire Carruthers, Neil & Gail Carter, Deanna Cenovus Energy Inc. CPA Education Foundation Chaulk, Dianne Chaykowski, Emily Checks n Balances Business Services Inc. Chevraux, Stanley & Sharleen Christie, Mike & Ann
Bohaychuk, Ron
Christopher J. Sarsons Professional Corporation
Border Beef
City of Lloydminster
Border Chemical Border City Building Centre Ltd.
Coca-Cola Refreshments Canada Company
Border City Rotary Club
Colborn Farms Ltd.
Borysiuk, Bernice
Cold Lake Minor Soccer
Boundary Ford Sales Ltd.
Collard, Norman & Maria
Braham, Iva
College Park Motors
Brett, John & Betty
Colliers Project Leaders
Brinkman, Irma
Collins, Brenda
Brinkman, Ken & Rhona
Compliant Environmental Services Ltd.
Brixton Shoes Broostad, Lloyd & Shirley *Brown, Midori Buchta, Rudy
Conrad, Bill & Shirley Convergint Technologies Ltd. Cornerstone Co-operative County of Vermilion River
62 | Annual Report 2016-2017
Appendix B – Donors Cousens, William & Barbara
Factory Sports Excellence
Hawes, Leanne
Cowan, David
Fantasy Flowers
Haynes, Ron & Dale
Crabb, Trevlyn & Charlene
Farm Credit Canada
Health First Physiotherapy
Craig's Vermilion Ltd.
Feenstra, Ralph & Patricia
Heavy Crude Hauling LP
Creative Glass & Aluminum Ltd.
Fehr, Jared
Heie, Patricia
Crispin Shoes Inc.
Feist, Raymond
Henry, Don & Blanche
Crop Life Canada - Alberta
Fey, Desmond & Kay
Highland Feeders Limited
Crop Production Services
Fines, Randy
Hill, Blair
Crowe, Michael & Kathy
First Truck Centre Lloydminster Inc.
Hill, Diana
Crown Investments Corporation of Saskatchewan
Flowers on the Fly by Audina
Hills, Gordon & Joan
FOCUS
Hoffman, Ken & Jessie
D. & A. Guenette Farms Ltd.
Focused SP
Hole, Muriel
Dahlseide, Melvin & Colleen
Forbes, Allan & Kathy
Holt, Charles & Priscilla
Dancey, Randy & Brenda
Fox, Devon
Honeker, Brian
Days Hotel & Suites
Fran's Beauty Salon
Howell, Darrel & Elizabeth
Dekalb
Furniture Gallery Lloydminster Ltd.
Humphrey, Brad
Delaire's Electric
Galloway, Roy
Husky Group of Companies
Designer's Choice (Lloyd) Ltd.
Gartner, Lacey
Ideal Office Solutions
Dickson, Bliss & Betty
Gauthier, Vincent & Cheryl
Inclusion Lloydminster
Dorosz, Sandra
General Motors of Canada Company
Dorschner, Damian
Geseron, Darcy
Independent Order of Odd Fellows No. 189
Double Bar D. Farms
GMACK Oilfield Services Ltd.
Dr. Michael JW Smith Professional Corporation
Goodhand, Linnea
Ducks Unlimited
Gouw, Taria & Curtis
INEOS Canada Partnership Integra Tire Ireland Farm Equipment Israel, Gerald & Jean
Dumouchel, Douglas & Kathy
Government of Saskatchewan Advanced Ed., Employment & Immigration
DuPont Canada Inc.
Gow, Diane & *William
Jogle, Brian
Dustow, Jeff
Gratz, Murray & Joan and Family
Johnson Inc.
Earle, Heather
Groch, Larissa
Jones, Barbara
Electrical Contractors Association of Alberta
Hafso, Florence
Jones, Bob & Della
Hall, Janis
Jones, Janice
Hamblin, Bill & Bobbie
JPJC Holdings Incorporated
Hanasyk, Evelyn
Juba, Vic & Anna
Hancock, Elva
Kaminski, Joseph & Kazimiera
Hanley, Daryl & Sonia Kollassa
Kane, Dawn
Harcus, Margaret
Kasal Cattle Co.
Elko, Dennis & Nelda Elliott, Doug Ens, Bradley & Jackie Epic Alliance Real Estate Inc. Erhardt, Reginald Erickson, Morris & Paulette Erickson, Reginald & Ellen Excel Construction Ltd.
Janewski, Tim & Mary-Anne
Harris Electric Harrish, Mary Harrison, Ben Annual Report 2016-2017 | 63
KC Stock Farms
Letts, Park & Beth
Medernach, Ashley & Debbie
Keber, Alf
Libbie Young Centre
Meyer, Sharon
Keber, Mackenzie
Lighthouse Mechanical Ltd.
Microserve
Kenworth Lloydminster
Lions Club of Lloydminster
Midwest Floorcovering
King, Bill
Litke, Brooklynne
Miscavish, Blake
Kinsmen Club of Lloydminster
Litke, Daryl
Miscavish, Joe
Kishel Investments
Lloydminster Chamber of Commerce
MNP LLP
Kitt, Jacinda
Lloydminster Concert Series
Moffitt, Frederick
Klee Wyck Farms
Lloydminster Cultural & Science Centre
Mones, Jo-Ann
Klumph, Merle
Lloydminster Fire Department
Moreland, Jamie
Kneen, Kagan
Lloydminster Golf & Curling Centre
Morgan-Tetz, Delia
Knourek, Kristine
Lloydminster Jr. "A" Bobcats Hockey Association, AJHL
Morrison, Leo & Rhonda
Lloydminster Public School Division #99
Mr. Bill's Family Restaurant
Lo, Juanita
Mueller, Harold & Ann
Long, Marvin
Nanninga, Heather
Longworth, Barry & Karren
Neigum, Dave & Debbie
Lougheed, David
Nichols Environmental (Canada) Ltd.
Luba, Sadie-Jo
Nickel, Scott
Lypowy, Johnny
Nicol, H. Grant
Macare Lawn & Yard Care
Nohnychuk, Kenny
MacLauchlan, Allan & Joanne
Noralta Technologies Inc.
Mahoney, William Matthews, Robert & Idella
North American Powertrain Components Ltd.
Matyaschuk, Pete & Janet
North Central Livestock Exchange Inc.
Mauthe, Kris & Shannon
Northwind Radio Ltd.
McBain, Richard & Joyce
Oasis Hot Yoga Studio
McDaniel, Glenda
Ogunnupe, Dr. Adekunle
McDonald, Gail
Olive & Birch
McGinnis, Arthur & Gladys
Ong, Dennis & Melissa
McGinnis, Yvonne
Onyszchuk, Dennis
McInroy, Kirk & Pam
Osika Holdings Inc.
MCK Farms
Parker, Kally
McKerchar, Ross & Christine
Parsons, Preston
McLean-Lawrence, Ina
Partington, Arch & Geretta
McPhee, James
Paylor, Curtis & Dawn
McPhee, Lorna
Pembina Pipeline Corporation
McPhee, Walter
Penner, Geoff & Judy
McRobert, Shirley
Peri-Made Ranch
Kohlenberg, Erik Kromrey, Kevin & Myrna Krooshoop, Daria Kuse, Greg & Christy Kuse, Janice & Brian Krest Ladybug Scrapbook Lafreniere, Michelle Lakeland College AHT Club Lakeland College Alumni Association Lakeland College Enviro Club Lakeland College Rowing Club Lakeland College Staff Association Lakeland College Stock Dog Club Lakeland College Students' Association Lakeland Country Florists Laplante, Rita Lazurko Farms Leckie & Associates LLP Lee, Edward & Brenda
64 | Annual Report 2016-2017
Moses, Gary & Isabelle
Perkins, Bryan & Sharon
Ryan Deis Professional Corporation
Stegemann, Barb
Perma Earth Consulting Ltd.
Saskatchewan Assessment Management Agency
Steinley, Quinton
Saporito, Jose
Stewart, Brent & Fey
Saporito, Santo
Stitch Master Inc.
Sapsford, Mary Lee
Stredwick, Sharon
Saran, Mandeep
Stroich, Buddy
Saskatchewan Association for Community Living
Studer, Blaine & Juanita
Quinn, Paul & Lori
Saskatchewan Association of Veterinary Technologists
Swatchina, Carl & Kara
Quwek, Michael
Schmidt, Shawn & Christina
Sweet, Judy
Radford Trucking
Scorpion Oilfield Services/Jory Klinger
Symes, Mike & Colleen
Ramsay, Brennan
Scotiabank
Synergy Credit Union
Ranch and Feedlot Rider Club
Secure Energy
Tally, Dan
Rausch, Murray & Ellie
Selte, Betty
Tally, James
Rawlake, Aaron
Senaratne, Chris
Tally, Justine
RBC Royal Bank
Shaw, Don & Chantal
Target Cattle Concepts
RE/MAX Prairie Realty
Sinnett, Timothy & Deborah
Tattrie, Douglas & Terri
Real Deals on Home Decor
Sivan, Judy
Taylor, E. Margaret
Redhead Equipment
Skoretz, Wendy
Taylor Olivia Photography
Repsol Oil & Gas Canada Inc.
Smith, Val
TD Bank Financial Group
Ribstone Creek Brewery
TD Insurance Meloche Monnex
Richards, Ross & Linda
Society of Petroleum Engineers Lloydminster
Richardson's Jewellery
Soderquist Appraisals Ltd.
Teise-Smith, Renate
Robinson, William
Solstice Canada Corp.
The Bea Fisher Centre Inc.
Rock Creek Tap and Grill
Sorenson Construction
The Calgary Foundation
Rodgers, Carson
Vermilion "SOS" Support our Students
The Canadian Brewhouse
Rogan, Alan
Speir, Michelle
Rolling Green Fairways Golf Course and RV Park
Speir, Robert
The Child and Youth Care Association of Alberta
Spicers Edmonton ULC
The Collective Art Market
Rotary Club of Vermilion
Stalwick, Rusty & Sherry
The Kohel Family
Royal Canadian Legion, Marshall Branch 92
Stalwick, Steiger
The NKBA Prairie Provinces Chapter
Stamp, Gus & Marie
The Princess Auto Foundation Inc.
Stanley, Howard
The Ranch House - KFC
Stanley, Robbie
The Sigma Flooring Group Inc.
Stantec Architecture Ltd.
Thompson, David
Phillips, Douglas & Shirley PIC Investment Group Inc. Popoff, Al & Diane Prairie Torque Inc. Prokop, Mildred Quickstad, Jody & Diann Quickstad, Sheldon & Carol
Royal Canadian Legion No. 11 Royal Canadian Legion Branch 39 Royal Canadian Legion, Alberta-NWT Command Roy's Courier Service Rutherford, Ken
Stevenson, Marene
Sun Country Farms
TJ Altman Investors Group
Starko, Austin Starko, Riley
Annual Report 2016-2017 | 65
Thorpe Electric
Webb, Scott & Bernie
Tim Dyck Financial Services Inc.
Webb's Machinery
Tobler, Kelly
Weber, Terry Lee
Treffry, Ellis & Donna
Weighill, Ken & Sheila
Tunes Music & Audio
Welsh, Emily
Turner, Dennis
Wetsch, Michael & Kim
TVS Mor Drafting Services Ltd.
Wheaton GMC Buick Cadillac Ltd.
UCG Universal Consulting Group Ltd.
Wheeler, Brant
Ulch, James
Wiens, Jody
Ulmer, Ross
Wight, Robert & Vincenza
Valette, Jesse
Wilkinson, Kirsten
Verbeek, Allen & Marilyn
Williams, Shirley
Vermilion & Area Volunteer Crisis Line
Williamson, Shelley
Vermilion & District Chamber of Commerce
Willis, Amber
Vermilion Credit Union Ltd.
Wrangler Well Servicing Ltd.
Vermilion Jr. B Tigers
Yackimec, Orest & Patricia
Vermilion Packers
Manners, Penny & Dan Young
Vermilion Veterinary Clinic (1977) Ltd.
Young, Gary & Marilyn
Vet Med Assistant Club
Zadorozny, Jim & Merle Thomson
VetStrategy Alberta Inc.
Zajic, Rebecca
Vic Juba Community Theatre
Zieglgansberger, Kim
Vokins, Doug
Zukiwski, Allan & Shirley
Vos, Anne W5 Management Corp. Wagner, Curt Wagner, Ken & Carol Wainwright-Stewart, Alice & Alex Stewart Walker-Perry, Nadine & Marvin Perry Wallace, Caleigh Walsh, Gary & Judy Walsh, Peter & Bonnie Warrington, Norman & Anne Washington, Stephen Watt, Daryl & Anne
66 | Annual Report 2016-2017
Wolters, C.M.
*Person passed away in the fiscal year.
Annual Report 2016-2017 | 67
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