Annual Report 2010-2011
Annual Report 2011-2012
Vermilion Campus 5707 College Drive Vermilion, Alberta T9X 1K5
Lloydminster Campus 2602 59 Avenue Lloydminster, Alberta S9V 1Z3 1 800 661 6490 lakelandcollege.ca
Table of Contents Accountability Statement..................................................................... 3 Management’s Responsibility for Reporting...................................... 3 Message from the President................................................................. 4 Year in Review........................................................................................ 5 Operational Overview.......................................................................... 8 Board of Governors.......................................................................... 8 Programming.................................................................................... 8 Enrolment.......................................................................................... 9 Facilities............................................................................................. 9 Staffing............................................................................................... 10 Performance Review............................................................................. 11 Goals, Initiative and Outcomes...................................................... 11 Management’s Discussion and Analysis............................................. 18 Financial Information...................................................................... 18 Financial Outlook............................................................................. 20 Capital Projects................................................................................. 20 Donors.................................................................................................... 21 Financial Statements............................................................................. 24 Auditor’s Report................................................................................ 24 Statement of Financial Position...................................................... 25 Statement of Operations.................................................................. 26 Statement of Changes in Net Assets............................................... 27 Statement of Cash Flows.................................................................. 28 Notes to the Financial Statement.................................................... 29
Annual Report 2011-2012
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Lakeland College
Accountability Statement The Lakeland College Annual Report for the year ended June 30, 2012 was prepared under the Board’s direction in accordance with the Government Accountability Act and ministerial guidelines established pursuant to the Government Accountability Act. All material economic, environmental or fiscal implications of which we are aware have been considered in the preparation of this report.
Milt Wakefield Chairman Lakeland College Board of Governors December 2012
Management’s Responsibility for Reporting Lakeland College’s management is responsible for the preparation, accuracy, objectivity and integrity of the information contained in the Annual Report including the financial statements, performance results, and supporting management information. Systems of internal control are designed and maintained by management to produce reliable information to meet reporting requirements. The system is designed to provide management with reasonable assurance that transactions are properly authorized, are executed in accordance with all relevant legislation, regulations and policies, reliable financial records are maintained, and assets are properly accounted for and safeguarded. The Annual Report has been developed under the oversight of the institution audit committee, as well as approved by the Board of Governors and is prepared in accordance with the Government Accountability Act and the Post-secondary Learning Act. The Auditor General of the Province of Alberta, the institution’s external auditor appointed under the Auditor General Act, performs an annual independent audit of the financial statements in accordance with generally accepted auditing standards.
Glenn Charlesworth President and Chief Executive Officer Lakeland College
Annual Report 2011-2012
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Message from the President Neil Armstrong, the first man to walk on the moon, was in the news this year following his death. While reading about the astronaut’s work at NASA, I came across a story that is a great illustration of how someone sees their job within an organization’s mission. American President John F. Kennedy was visiting NASA headquarters in the early 1960s and introduced himself to a man who was mopping the floor. He asked the janitor what he did at NASA. While the answer might seem obvious, the man’s response wasn’t. He replied, “Sir, I’m helping to put a man on the moon.” The man realized he was making his own valuable contribution to the goal of space travel and exploration. For the past several years Lakeland’s mission has been To inspire our learners to realize their individual potential. That is our promise to our learners, whether they are individuals enrolled in one of our programs or courses or corporate clients. It’s a mission that has served our organization well. In the past year, for example, Lakeland College interior design, business and apprenticeship students won major provincial, national and international awards. A total of 101 students were named to the President’s Honour Roll for earning a cumulative grade point average of 3.8 or higher during the academic year. Our Rustlers elevated their games to winning levels. Business students earned bronze in the Alberta Deans of Business Case Competition. Thirteen human services students gave back by completing a three-week service practicum experience in the Dominican Republic where they helped people in poverty stricken areas. Our alumni (including Wall of Distinction inductees Brian Keating and Brent Baier) also made us proud with their accomplishments. More recent alumni are also doing well with their careers. You’ll see by the results of our spring Class of 2010 Graduate Survey that 95 per cent who sought work are employed and 92 per cent are satisfied or very satisfied with their careers. I know that our Lakeland team puts learners first in everything we do, including enhancing programming, improving services, developing new transfer agreements, modernizing facilities, hosting orientation events, raising money for student awards, incorporating new technologies, and increasing involvement in applied research. There’s an old axiom “if it ain’t broke, don’t fix it,” but that attitude wouldn’t have allowed us to transition from demonstration farm, to school of agriculture, to vocational college, to the leading post-secondary institution Lakeland College is today. We strive for continual improvement in how we serve our students and our community. With that in mind our Board of Governors started developing a new mission, vision, values and key outcomes. Draft statements were completed during the 2011-2012 fiscal year and will be reviewed by students, staff, alumni, industry representatives and community members in the fall. This is an opportunity to reaffirm what we already do well, and to look ahead to what we can do better. As work continues to develop a new mission, I assure you that the learners we serve will remain at the heart of our discussions.
Glenn Charlesworth President and Chief Executive Officer Lakeland College
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Lakeland College
Year in Review Student excellence Janelle LaBrecque, a second-year business student at the Lloydminster campus, earned the highest score among all candidates across Canada who wrote the Canadian Investment Funds course exam offered by the Investment Funds Institute of Canada (IFIC) in December 2011. Janelle scored 97 per cent. Only a student from Ontario tied her top mark and shares a spot with her on the 2011 IFSE Institute CIFC Honour Roll. She’s also the only student from Alberta to make the list. She wrote the threehour exam as part of Lakeland’s FN270 mutual funds class. Three Lakeland students claimed awards for top apprentices in the province. Luke Thompson was the top agricultural equipment technician, Jonathan Crick was the top carpentry apprentice, and Marc Bennett earned the honour of the top parts technician. Jonathan also won the Alberta Construction Top Carpenter Award and the Top Construction Award. Lakeland’s entry in the Alberta Deans of Business Case Competition placed third in the 11-team competition. Congratulations to Natasha Zeitz, David Dahl, Jenna Dudding, Jaclyn Paslawski and faculty advisor Doreen Der. The streak continues…For the ninth consecutive year, Lakeland students in the interior design technology program earned top place finishes in two international student design competitions. Julie Arthurs and Rebecca Johnston won scholarships in a charrette competition hosted by the National Kitchen and Bath Association (NKBA) and General Electric. Their entries were selected from a pool of 398 from 31 schools located throughout United States and Canada. Arthurs placed third while Johnston placed fourth overall. Interior design’s third award-winning student was Courtney Federspiel who placed third in a bathroom design competition hosted by the NKBA. That competition attracted 178 entries from 43 different schools. The latest inductees to Lakeland’s Alumni Wall of Distinction are Brian Keating at the Vermilion campus and Brent Baier at the Lloydminster campus. Keating, a Class of ’76 wildlife and fisheries grad, is a world-renowned naturalist, author, conservationist, acclaimed speaker, wilderness explorer and champion of biodiversity. Baier, a Class of ’05 computer systems technology grad, created the Peregrine Glove, a high-tech product sold worldwide for multiple uses. Both were recognized during Lakeland’s convocation ceremonies in June. Lakeland had 14 generation grads this year including a young woman who counted both her parents and two grandfathers as Lakeland alumni, and a crop technology grad whose father and grandfather also completed agricultural sciences programs at the college.
Rustlers elevate their game In March the Rustlers men’s futsal team won its second conference championship in as many years scoring a 4-1 victory over the Mount Royal University Cougars. Lakeland’s rodeo team had a spectacular year as 21 student-athletes qualified for the Canadian National College Finals Rodeo and four of them won championships. Brendan Laye won the steer wrestling title, Cody Braaten took the tie down roping championship, and the team roping title went to Tyler Davis and Malorie Guenther. Pete Lowry won the Cowboy of the Year award and Holly Schuk received the Cowgirl of the Year and High Point Cowgirl awards. Other highlights were an Alberta Colleges Athletic Conference bronze medal in women’s curling and a Western Canadian University Rowing Championship silver medal for the women’s 8+. For the first time in Lakeland’s history, the athletics program was awarded a Canadian Collegiate Athletic Association national championship. The 2013 CCAA women’s volleyball championship tournament will take place at the Lloydminster campus from March 7-9, 2013. The Lakeland Collegiate 4-H Club – the first club of its kind in Alberta – was formed in the fall. Because the 4-H program is available to youth ages 9 to 20, the creation of the collegiate club makes it possible for members to continue their involvement with the organization while at college.
Annual Report 2011-2012
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Worth celebrating Lakeland and New Holland Agriculture kicked-off the first year of a 10-year, multi-million dollar collaboration related to agricultural sciences programming and the college’s Student Managed Farm (SMF). The SMF has been renamed Lakeland College Student Managed Farm – Powered by New Holland. New Holland is now Lakeland’s official agricultural and utility equipment sponsor. New Holland also established a $100,000 endowment fund that will supply a number of annual student awards starting in 2013, Lakeland’s centennial. History instructor Curtis McManus received the Nonfiction Award at the Saskatchewan Book Awards for his book Happyland – A History of the Dirty Thirties in Saskatchewan, 1914-1937. The award was presented at the Saskatchewan Book Awards in April. Corporations, organizations, individuals and Lakeland alumni, students and staff showed their tremendous support for the institution by contributing or pledging more than $5 million during the year. This figure includes all donations received including cash, gifts-in-kind, sponsorships, restricted donations, and contributions from foundations and other registered charities. Highlights include $1.1 million from Husky Energy, $500,000 from Canadian Natural Resources Limited, $250,000 from The Gwyn Morgan and Patricia Trottier Foundation, and $125,000 from CIBC. Preparation for Lakeland’s centennial celebration moved into high gear. The historical acknowledgement committee began research to create Lakeland’s Century Club. This will be a list of the Top 100 people, places, events, animals, and buildings that contributed to the growth and development of Lakeland. Lakeland’s Ever2Excel centennial wine has been the toast of the centennial souvenirs as a portion of every bottle sold goes towards Lakeland’s Centennial Endowment Fund for Scholarships and Awards. As for centennial events, thanks to the support of many community and business partners, the centennial will feature 15 signature events held between November 2012 and November 2013. Guest speakers, mattress dominoes, homecoming events, a President’s Centennial Gala and golf tournaments are among the scheduled activities. Centennial celebrations will conclude in November 2013 with a four-day finale at the Vermilion campus.
Quality growth Ribbon cutting ceremonies were a regular occurrence at Lakeland as students, staff and friends celebrated the official openings of four buildings. The new Child Development Centre at the Lloydminster campus accommodates up to 40 children aged 12 months to five years. It was part of a campus renovation project valued at a total of $1.7 million that also included construction of new teaching labs for health and wellness programs. The Applied Engineering Building opened at the Vermilion campus in November. Originally built in 1970 for welding training, the building was upgraded thanks to an $11.5 million contribution from the Government of Alberta. It now houses welder and steamfitter-pipefitter programs at the Vermilion campus. The building has 75 combination welding booths. On Nov. 17, 2011 – Lakeland’s 98th anniversary – the Student Centre was officially opened. The project was a joint venture between Lakeland and the Vermilion campus Students’ Association. In the 1970s, students established an account to hold a portion of student fees for the construction of a student centre building. In 2008, the Students’ Association contributed $400,000 of the funds raised by students of Lakeland to begin work on the project. Lakeland contributed the remaining portion of the funds needed for the Student Centre which features a pub and games room. It also houses the residence office. The final opening of the year was the Centre for Sustainable Innovation. The Renewable Energy Learning Centre was the centre piece of the opening. The renovated house demonstrates how different renewable systems can work in a typical home. It’s also used as a lab for students in the renewable energy and conservation diploma program. Lakeland will begin construction of a Petroleum Centre at the Lloydminster campus in the fall of 2012. Page 6
Lakeland College
Limitless potential It was a watershed year for applied research efforts. In February, Western Economic Diversification Canada announced Lakeland would receive $900,000 in federal funding towards the purchase of two mobile pyrolysis units to test, evaluate and demonstrate biochar products for the agricultural and environmental marketplace. Additional support towards the project included a contribution of $450,000 from Alberta Innovates - Technology Futures. The transportable pilot-scale pyrolysis units will enable Lakeland’s Centre for Sustainable Innovation (CSI) and industry partners to evaluate the quality of biochar from various feedstocks. Lakeland will also coordinate field trials to assess the performance of biochar. With the help of $2.3 million in ongoing funding from the Natural Sciences and Engineering Research Council of Canada and support from Alberta Enterprise and Advanced Education, Lakeland officially opened its CSI in May. One of the major elements of the CSI is a renovated farm house that has been turned into a renewable energy showcase. Located just west of the Vermilion campus, the Renewable Energy Learning Centre features geothermal heat, solar thermal collection, solar electrical energy from both fixed and tracking systems, and a wind turbine. The building demonstrates how these renewable systems can work in a typical home. It also serves as a lab for students in the renewable energy and conservation diploma program and many other trades and environmental science programs. Another important development in May was the Canada Foundation for Innovation’s announcement that Lakeland will receive $571,001 from the CFI’s College-Industry Innovation Fund. The funding will be used to develop research infrastructure for bioenergy research and the development of thermal storage in rural settings. In 2011-2012, Lakeland’s research team – which didn’t exist in 2009 – grew to six full-time staff, five summer-students plus additional partially released faculty members. Besides biochar and renewable energy research, other projects included using GrowSafe Systems technology to test feed efficiencies in cattle, crop research demos and wind speed testing.
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Operational Overview Board of Governors (as of June 30, 2012) Milt Wakefield, Chairman Glenn Charlesworth, President Rob Baron, Academic Staff Member Jeff Dustow, Non Academic Staff Member Ben Berg, Student Member Public Members: Ken Baker Crystal Fafard Darrel Howell Michael Kotelko Susan Long Gary Moses Craig Solberg
Programming The following programs were offered by Lakeland during the 2011-2012 academic year. Programs with an asterisk are not included in the full-load equivalent (FLE) count. Adult development programs Academic upgrading Transitional vocational Applied degree programs Bachelor of applied business: emergency services Bachelor of applied science: environmental management Apprenticeship technical training Automotive service technician Carpenter Electrician Heavy equipment technician Instrument technician Parts technician Steamfitter-pipefitter Welder Certificate and diploma programs Accounting technician Adventure tourism and outdoor recreation Agribusiness Animal health technology Animal science technology Appraisal and assessment (second year) Business administration Child and youth care Page 8
Conservation and restoration ecology (second year) Crop technology Early learning and child care (certificate and diploma) Educational assistant Emergency medical technician – ambulance Emergency medical technologist – paramedic Emergency services technology Employment skills enhancement English language learning Environmental conservation and reclamation (second year) Environmental sciences Environmental monitoring and protection (second year) Esthetician Event management Financial services (second year) Firefighter (NFPA 1001) General agriculture Heavy oil operations technician Interior design technology Management (second year) Office administration Petroleum management Practical nurse Pre-employment (automotive service/heavy equipment technician, carpenter, electrician, steamfitter-pipefitter, welder) Professional accounting (second year) Renewable energy and conservation Sign language interpretation Tourism ready to work Veterinary medical assistant Western ranch and cow horse Wildlife and fisheries conservation (second year) University studies Popular transfer routes include: • Arts • Commerce • Education • Science • Social work • Pre-bachelor of science in nursing • Pre-dentistry • Pre-medicine • Pre-pharmacy • Pre-veterinary medicine
Lakeland College
Credit continuing education American Sign Language and deaf culture studies Emergency medical responder Fourth class power engineering Gas process operator Health care aide Pesticides Pesticides dispenser Third class power engineering Credit general studies Firefighting and emergency services training General skills training Non-credit AutoCad operator* High school fire services* Open studies – leisure and interest* Truck driver training* Collaborative degree programs Athabasca University Bachelor of commerce Bachelor of general studies Bachelor of management
Facilities Vermilion campus Site area: 209.95 hectares Off site: 9.3 hectares Agricultural land: 649.4 hectares Non-residential building area: 53,704.61 sq. m Residence accommodation: Single beds – 544; family units – 17 Lloydminster campus Site area: 27.30 hectares Non-residential building area: 17,258 sq. m Residence accommodation: Single beds – 256; family units – 48
Enrolment After five consecutive years of enrolment growth, Lakeland’s enrolment, as measured by full-load equivalents, decreased by 2 per cent. Credit student headcount Full-time Part-time Total 2009-10 3,241 4,145 7,386 2010-11 3,330 4,595 7,925 2011-12 3,316 4,116 7,435 Credit full-load equivalents (FLEs) 2009-2010 - 2,099 2010-2011 - 2,250 2011-2012 - 2216 FLEs by credential
2009-2010 2010-2011 2011-2012
Diploma and post basic diploma
796.998
852.001
Apprenticeship 270.236 253.745 262.752 University studies/ applied degree
306.261
305.798
297.999
Career certificate
495.827
555.822
516.615
No credential/ not applicable
265.912
337.419
286.542
Student awards program Includes awards, scholarships and bursaries. Total value of awards:
*2009-2010 2010-2011 2011-2012 $691,317
$655,728
$758,497
Number of awards presented: 833 726
858
*Final year of the Alberta Opportunity Bursary program
Graduate follow-up surveys Surveys conducted two years after graduation.
Class of 2007 Class of 2010 2009 survey results 2012 survey results
Employment rate Average salary Job satisfaction
Annual Report 2011-2012
760.537
94% $48,102 94%
95% $52,298 92%
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Staffing
Information technology
Including full-time, part-time, temporary, sessional, casual, student and government sponsored employees, the average number of employees at Lakeland each month was 588.
Increased use of and rampant changes in mobile technologies have created new information technology challenges. IT staff are taxed to meet the “bring your own device” needs of students and staff who want to integrate the latest technologies into Lakeland’s current infrastructure. There is a recurrent need to increase bandwidth to accommodate wired and wireless learning technology. Major IT driven or supported projects during the year include the design and implementation of Lakeland’s wireless network for the Lloydminster and Vermilion campuses; PeopleSoft HR, Finance and Campus Solutions upgrade; installation of SMARTBoards or BrightLink interactive whiteboards to classrooms; and planning for virtual desktop implementation.
Permanent and continuing staff 2009-2010 2010-2011 2011-2012 Administration Full-time 49 51 48 Faculty Full-time Part or reduced time
112 115 114 5 5 5.6
AUPE Full-time Part-time
169 160 161 9 8 7
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Lakeland College
Performance Review In the 2011-2014 Comprehensive Institutional Plan, Lakeland outlined goals related to access, sustainability, community and competitiveness. In the following pages Lakeland reports on the progress made towards achieving its goals.
Access Goal 1 – Maximize student recruitment and retention for all programs Performance measures Targets
Results
2% increase of first-year students at the Vermilion campus.
The number of full-time and part-time first year students studying at the Vermilion campus increased six per cent.
2% increase of first-year students for business and university studies programs at the Lloydminster campus.
Total first year enrolment for these programs decreased by 1.6 FLEs. •F LEs for first year business studies increased from 121.735 in 2010-2011 to 137.736 in 2011-2012 •F LEs for first year university studies programming decreased from 157.608 in 2010-2011 to 140.004 in 2011-2012
85% for overall retention.
Completion rates were determined by comparing the 2011-2012 graduation rates to the first year class enrolments. Agricultural sciences – 96% Business – 73% (due to expected high attrition in first year business, graduation rate is calculated using the number of returning second year students) Emergency services technology – 85% Environmental sciences – 89% Esthetician – 80% Heavy oil operations technician – 95% Human services – 88% Interior design technology – 85% Paramedic/EMT – 65% Practical nurse – 88%
70% contact with drop-out students to develop a strategy to assist in program completion.
Students who do not perform as well as necessary are invited back to study within a customized timetable. When just one or two courses short, Lakeland assists students in finding comparable courses online or closer to home so they can complete their credential.
Interactive first day experience and returning student orientation for all programs.
All programs have varying degrees of orientation days/ weeks aimed at helping students adapt to campus life and program expectations. Lakeland now offers more spring orientation and information sessions. These sessions improved application to enrolment rates plus fall retention rates. In addition to activities after registration, a one day orientation session prior to registration day will be offered in the fall of 2012 at the Lloydminster campus.
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Access Goal 1 – Objectives for 2011-2012 • Deliver face-to-face recruitment strategies that focus on regional high school students and their parents • Deliver marketing strategies that utilize social networking, email and the Internet • Promote scholarships • Embed the importance of student retention for college sustainability into current faculty orientation process • Identify critical program retention trends • Develop an early-alert/intervention system for each school • Develop a program to bring back drop-out students
Access Goal 1 – Analysis ➢ A redesigned Lakeland website hit the electronic highway in July 2011. The redesign focused on improving navigation. New additions to the site included mega menus, detailed program pages and calls to action on every program page. Site architecture, page naming and content were updated to be more search engine friendly. There were also new sites added within the www.lakelandcollege.ca family including a mobile site to meet the needs of Lakeland’s on-the-go users who want content to download faster and be easier to read plus a centennial site in preparation for Lakeland’s 100th anniversary in 2013. ➢ Google, Facebook, LinkedIn, website ads and email campaigns were part of Lakeland’s marketing mix. Word of mouth marketing campaigns using Facebook and email campaigns to encourage current students to tell others about Lakeland’s fall Open House contributed to a 12 per cent increase in the number of applications received during the two day event. A total of 359 people applied during Open House 2011. ➢ Lakeland recruitment staff hosted evening information sessions for prospective students and parents in Wainwright, Bonnyville, North Battleford and Vegreville. ➢ Academic Excellence Scholarships for students with Grade 11 marks greater than 85 per cent were awarded to 25 deserving students who enrolled in business, university studies, educational assistant or environmental sciences programs. ➢ Most schools have implemented an early alert system to identify students who are struggling. Students identified are assigned learning contracts with directions on steps to take to improve success, including improved attendance, or attending time management, counseling and/or tutorial sessions.
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Lakeland College
Access Goal 2 – Create supports for under represented learners Performance measures Targets
Results
Establish baseline data on Aboriginal learners.
Aboriginal enrolment 2010-2011 2011-2012 Credit student headcount 372 312 Credit full-load equivalents (FLEs) 166 146 Graduates 63 37 Average age 30 28 Percentage female students 68% 63% Percentage male students 32% 37% Apprenticeship completers 12 18 The top four programs Aboriginal students were enrolled in were apprenticeship, early learning and childhood, university studies and academic upgrading.
Establish baseline data for learners with learning disabilities.
Existing resources for students with learning disabilities include contract tutors, exam accommodations (reader, scribe or quiet room), individual appointments, assistive technology, study skills workshops and provision of note takers. Every student who receives accommodations is asked to complete an Accommodation Evaluation Survey. Response rate was low but of the responses received, students ranked tutoring, extended time, quiet room and exam readers as resources that were the most beneficial.
Access Goal 2 – Objectives for 2011-2012 • Develop an Aboriginal learner retention plan by analyzing current data on the proportion of Aboriginal learners at both campuses • Develop a plan to increase support for learners with learning disabilities
Access Goal 2 – Analysis ➢ Aboriginal learner retention plan is in development but has not been finalized. ➢ Based on results of the Accommodation Evaluation Survey, Lakeland will investigate different ways to tutor students including group tutoring to create a community of learners. ➢ Lakeland and Onion Lake First Nation received the Program or Project Award at the 2012 Saskatchewan Literacy Awards of Merit held May 9 in Regina. Tory Littlewolfe of Onion Lake First Nation and Margo Hines of Lakeland accepted the award in recognition of their organizations’ efforts to spearhead the inclusion of literacy and essential skills programming in their workplace training. Lakeland and Onion Lake First Nation ran a vacuum truck operator program to help address the need for more qualified oilfield drivers in the Onion Lake First Nation region. Students developed literacy skills, earned their Class 1A license and industry specific safety certificates, and completed training in essential skills for the workplace to help them find and keep a job. Of the 10 students enrolled in the 12-week program, nine graduated. One student left the program early because he was offered employment.
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Access Goal 3 – Enhance efficiency and effectiveness of program mix Performance measures Targets
Results
The program review process will ensure that all program initiatives and changes are made in an effective and efficient fashion.
Thirty-nine programs were annually reviewed during the academic year. Of all of the annual program reviews that were expected to be completed, only two weren’t finalized during the year. During the annual program review, areas of concern were identified and action plans were developed to address these concerns. Six comprehensive program reviews were scheduled and one was completed during the year. The others were in progress but not completed by June 30, 2012.
Access Goal 3 - Objectives for 2011-2012 • Begin offering emergency service programs as needed within the study centre concept • Develop second year of renewable energy and conservation program • Expand heavy oil operations technician to a diploma program • Restructure business programming • Develop pre-employment hairstylist
Access Goal 3 - Analysis ➢ Emergency Training Centre staff submitted a report on offering programs within the study centre concept to Municipal Affairs. ➢ Diploma level courses for the renewable energy and conservation program were offered during the academic year. ➢ Three new university studies courses debuted in September 2011. The courses are Introduction to Ancient Greek History, Introductory Nutrition, and History of Science, Technology and Medicine. ➢ In May, Lakeland received approval from Alberta Enterprise and Advanced Education to offer heavy oil power engineering in the 2012-2013 academic year. The two year diploma program includes third class power engineering plus advanced heavy oil training. ➢ All business programming was consolidated at the Lloydminster campus. Diploma programming was restructured to feature one business administration diploma with five majors (accounting, appraisal and assessment, general business, marketing, and small business and entrepreneurship). FLEs for first year business studies increased from 121.735 in 2010-2011 to 137.736 in 2011-2012. A new development for 2012-2013 is the option for business students to participate in a four-month paid co-op placement. ➢ Pre-employment hairstylist was developed and will be offered in the 2012-2013 academic year. ➢ After successfully piloting four courses online, Lakeland will develop and deliver more online educational assistant and early learning and child care courses. ➢ High employment rates and strong satisfaction with their college program were a few of the highlights of a survey of Class of 2010 grads conducted by Insightrix Research in June 2012. Results of the survey showed that 95 per cent of the class is employed and the average annual income is $52,298. Job satisfaction is also high, as 92 per cent said they are satisfied or very satisfied with their current job. Grads were also asked about their experience at Lakeland. • 95% were satisfied or very satisfied with the quality of teaching • 94% were satisfied or very satisfied with their program • 95% were satisfied or very satisfied with the quality of their educational experience • 92% recommend their program to others • 94% recommend Lakeland College to others Page 14
Lakeland College
Sustainability Goal 1 – Maintain program viability Performance measures Targets
Results
Continued use of successful program review process with subsequent program decisions.
Thirty-nine programs were annually reviewed during the academic year and work began on six comprehensive program reviews (one was completed during the year).
Maintain current usage of eCampusAlberta.
Lakeland had 1,039 eCampusAlberta enrolments during the year, a decrease from the previous year’s registration total of 1,217. Lakeland received online curriculum development funds for the parts technician program and second year courses for the renewable energy and conservation program. This funding helped Lakeland expand the number and breadth of online courses available to students. Lakeland is working with Red Deer College to offer the online parts technician program (both colleges also have on-campus programs). Lakeland will deliver the first and third training periods and Red Deer the second training period.
Sustainability Goal 1 - Objectives for 2011-2012 • Continue using successful annual program review process • Use comprehensive list to identify programs to review • Use annual program review to identify areas of concern • Use worksheet to rate programs • Continue to alter, restructure, redefine, downsize or suspend programs as process indicates
Sustainability Goal 1 - Analysis ➢ Changes were made to the annual program review process to create a more structured review. The new structure will be used during the 2012-2013 academic year. ➢ Policies related to program structure, course development and revision, and program development and revision were revised. ➢ The comprehensive list was used to identify what programs to review. ➢D uring the annual program review, areas of concern were identified and action plans were developed to address the concerns. ➢ Results from program reviews will be presented to the Learners and Programs committee of the Board of Governors in the fall of 2012 and it’s expected that program changes will take place. ➢ Courses within eCampusAlberta are being transitioned from Blackboard learning management system to Desire2Learn which is Lakeland’s learning management system.
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Community Goal 1 – Unite College and community to meet learner needs Performance measures Targets
Results
An initial community needs assessment of Lakeland’s Regional Access Advisory Councils (RAAC) will be completed in 2012.
RAACs in Killam, Provost, Two Hills, Wainwright, Lloydminster and Vermilion recommended areas of programming that would be most beneficial to their regions.
A working relationship process will be supported by all RAACs in 2012.
Memorandums of understanding are in development.
Maintain current usage of eCampusAlberta in six regions.
This measure was not tracked.
Objectives for 2011-2012 • Strengthen relationship with RAACs • Investigate expanded usage of eCampusAlberta throughout the six RAACs • Investigate and pilot community resource usage in one of six regions
Analysis ➢ Lakeland is working on pilot projects with adult learning councils in Provost and Lloydminster to connect learners to credit education. ➢ The RAACs identified Lakeland’s one year business administration certificate program as a program that would be of value throughout the region. Lakeland will work with adult learning councils to deliver the program via blended learning. It’s expected that this program will be offered in the fall of 2013. akeland is involved in the Lloydminster and Region Business Incubator. The incubator connects new entrepreneurs with the ➢L expertise they need to launch a business plus the connections and coaching needed to help the business grow and be successful. ➢ Eleven students participated in dual-credit courses and more than 300 high school students took firefighter, esthetician, interior design, welding, automotive and carpentry CTS courses at Lakeland.
Competitiveness Goal 1 – Enhance Alberta’s competitiveness Performance Measures Targets
Results
Develop a system that tracks current PLAR processes.
Lakeland faculty and administrators reviewed the existing Recognition of Prior Learning procedure and continue to work with recruiters and enrolment specialists to streamline the process for applicants seeking advance or transfer credit.
Complete assessment of current and possible foundational learning opportunities.
This was not completed
Maintain support for underrepresented learners
Support continued as per previous years.
Objectives for 2011-2012 • Clarify the existing PLAR process and make improvements where necessary in order to respond to opportunities • Assess need for foundational learning opportunities and perhaps connect to an Aboriginal Employment strategy • Connect with communities to assess Lakeland’s possible role in assisting Albertans with low literacy skills, lack of English fluency, or socio-economical disadvantages Page 16
Lakeland College
Analysis ➢ Current Recognition of Prior Learning procedure was reviewed and work continues to be done to streamline the process for applicants seeking advance or transfer credit. Lakeland is also reviewing residency requirements for all programming. ➢ Lakeland offered two new programs to help people enter the region’s oil and gas industry. Oilfield truck operator and introduction to heavy oil and gas were both successful. Introduction to heavy oil and gas was a 21-week program delivered at the Onion Lake First Nation. The program prepared Aboriginal students to enter the oilfield workforce with entry level operator education or continue their education in the heavy oil operations technician program. ➢ Lakeland and Portage College signed a transfer agreement that makes graduates from Portage’s two-year natural resources technician diploma program eligible for admission into Lakeland’s bachelor of applied science: environmental management program.
Competitiveness Goal 2 - Globalize Lakeland College Performance measures Targets
Results
Increase international student enrolment by 33 per cent each year.
There were 20 international students enrolled at Lakeland during the 2011-2012 academic year, a substantial increase from the previous year’s total of seven international students.
Objectives for 2011-2012 • Identify factors involved with globalizing Lakeland
Analysis ➢ Lakeland applied for and received CARICOM (Caribbean Community) scholarships which resulted in 10 students from that region attending Lakeland. ➢ Lakeland accessed scholarship programs, partnerships and transfer agreements with overseas institutions to expand its reach. The major barriers Lakeland faces is marketing its brand, developing capacity internally to accept and fully support a growing number of international students, and offering the type of programs that appeal to international students. ➢ University studies, human services, and agricultural sciences along with a few individual students from other program areas participated in international course or practicum work. Animal health technology students were in Costa Rica to work with Vet Nurses in the Wild; university studies students were in Mexico to work with local teachers and learn more about education systems in other parts of the world; students in human services programs became the first Canadian students to team up with the Community Service Alliance in the Dominican Republic for a three-week service practicum experience; and students in the Ag Tour Club went to Brazil to experience agriculture South American style. ➢ In 2011 Lakeland College was awarded a sub contract to complete an analysis of the monitoring and evaluation systems used in Tanzania’s post-secondary education systems. The sub contract was part of the Association of Canadian Community Colleges Education for Employment project in Tanzania that is funded by Canadian International Development Agency. After reviewing policies, procedures and tools plus interviewing people involved in tracking outcomes, Lakeland submitted a detailed report with recommendations on how to improve the system. In June, three Tanzanians from the Ministry of Education and Vocational Training visited the Vermilion campus where they worked with college staff and representatives from Alberta Enterprise and Advanced Education to develop a national strategy and four specific outcomes for its post-secondary system. The recommendations will be presented to ministry and industry stakeholders in Tanzania in the summer of 2012.
Annual Report 2011-2012
Page 17
Management’s Discussion and Analysis The Management’s Discussion and Analysis (MD&A) should be read in conjunction with the Lakeland College annual audited financial statements for the year ended June 30, 2012 and accompanying notes. The MD&A and audited financial statements are reviewed and approved by the Board of Governors of Lakeland. Lakeland’s financial statements have been prepared in accordance with Canadian Generally Accepted Accounting Principles and are expressed in Canadian dollars. Lakeland College had another financially sound year in 2011-2012 with a surplus of $2.3 million being reported for the year ending June 30, 2012. This is a slight decrease ($500,000) from the previous year. The most notable differences in the current year compared to the prior year are the decreases in grant revenue reported ($43.5 in 2010-2011 and $35.7 in 2011-2012) as well as investment income reported ($1.4 in 2010-2011 and $600,000 in 2011-2012). These amounts were offset by costs incurred for maintenance and repairs expenses which were higher in 2010-2011 ($14.6 million) than in 2011-2012 ($4.4 million). The 2011-2012 budget forecasted a deficit of just over $500,000 as Lakeland completed the last of the residence renovations at the Vermilion campus. The $3 million positive budget variance was attributed to strong student numbers resulting in $1.1 million more in tuition revenue and $1.1 million more in bookstore, residence and other sales of services and products revenue. Cost efficiencies in the areas of benefits paid for staff, the cost of natural gas and less amortization than budgeted account for the remainder of the difference. The Management’s Discussion and Analysis provides an overview of the results Lakeland achieved in 2011-2012 with a detailed discussion and analysis of the institution’s: 1. Financial information 2. Future financial outlook 3. Capital projects
1. Financial information Statement of financial position Lakeland’s assets, liabilities and net assets amount to $114 million for the year ended June 30, 2012, as compared to $107.6 million for the year ended June 30, 2011. Highlights The cash and short term investments held by Lakeland at June 30, 2012 had a market value of $16.7 million, which is an increase of $3.4 million over 2011 (as detailed in notes 3 and 4). Long term investment balances increased $700,000 over the 2011 figures to $18.8 million in 2012 (inclusive of an unrealized gain of $600,000). These investment increases are attributed to the investment of grant and donor funds reported in the deferred contributions which increased $4.4 million in 2012 to a reported $15.8 million. The net book value (cost less accumulated amortization) of the capital assets owned by Lakeland amounted to $73.1 million in 2011-2012, as compared to $71.7 million in 2010-2011. Capital assets include buildings, land, site improvements, furnishings, equipment, systems, learning resources, vehicles, and milk quotas, and include amounts for work in progress. The total net book value increased because Lakeland completed work on the Lloydminster campus Child Development Centre, the Renewable Energy Learning Centre, and began work on the new Petroleum Centre. The purchase/acquisition of these capital assets is funded from two potential sources: 1. External funding from government or other external sources (for example, donations); 2. Use of unrestricted funds from Lakeland operations – internal sources.
Page 18
Lakeland College
Lakeland’s long-term deferred contributions and deferred capital contributions amounted to $4.7 million and $11.1 million respectively for the year ended June 30, 2012. Deferred contributions increased by $4.4 million for the year ended June 30, 2012 due to Petroleum Centre funding received but not expended at June 30, 2012. These numbers reflect all funding and/or contributions received from external parties that remain unspent at June 30, 2012. The category differs from deferred revenues in that they are funds Lakeland received from an external party that are restricted for a specific purpose. Some examples of what is included in this category are unspent Infrastructure Maintenance Program (IMP) grant funding, unspent conditional funds from Alberta Enterprise and Advanced Education, unspent donated funds, and unspent interest earned deferred balances. Lakeland’s unrestricted net assets (inclusive of unrealized gains on investments) increased by $800,000 to $4.3 million in 2011-2012. The investment in capital assets increased by $2.1 million to a reported $22.5 million in 2011-2012 as a result of an increase in self-funded capital asset purchases. Statement of operations For the year ended June 30, 2012, Lakeland reported a $2.3 million excess of revenue over expense, as compared to a $2.8 million excess of revenue over expense for the year ended June 30, 2011. Revenue highlights Lakeland’s largest source of revenue is government grants which accounted for 58 per cent ($37.7 million) of Lakeland’s total revenue. Revenue Total revenue decreased in 2011-2012 due to a drop in grants and investment income. This is attributed to significant repairs and maintenance projects completed during the 2010-2011 year. The following table details Lakeland’s revenue sources as presented in the audited financial statements. Revenue by source 2009-2010 2010-11 2011-12
$ 41,577,521 $ 44,962,987 $ 37,685,479 Grants Tuition and related fees 11,688,823 12,719,945 12,408,902 Sales of services & products 5,266,339 5,570,552 5,985,754 Amortization of deferred capital contributions 3,508,731 3,575,638 2,903,880 Contract & other revenue 4,473,117 5,119,171 5,291,987 Investment income 654,848 1,464,248 657,822 Donations 229,407 111,182 304,241 (9,303) 115,307 44,092 Gain (loss) on disposal of assets Total revenue
$ 67,389,483
$ 73,639,030
$ 65,282,157
Government grants Grant revenue represented about 58 per cent of Lakeland’s total revenue in 2011-2012 which is a slight decrease from the 20102011 amount of 61 per cent. Grants received from Alberta Enterprise and Advanced Education include base operations grants of $31.3 million (2010-2011 – $30.5 million), infrastructure grants of $1.6 million (2010-2011 – $10.5 million), as well as conditional and enrolment planning funding of $2.7 million (2010-2011 – $2.5 million). Conditional funding received from the Government of Saskatchewan was $1.4 million which is a slight increase over the previous year’s total of $1.2 million. More federal funding was utilized during the year and Lakeland progressed on several research projects totaling $549,000 (2010-11 – $236,000). Tuition Lakeland’s full-load equivalents decreased two per cent from the previous year which resulted in a tuition revenue decrease of about $300,000. Credit tuition fees were increased by the maximum allowable amount of .035 per cent. Annual Report 2011-2012
Page 19
Sales, rentals and services Sales, rentals and services revenue increased by about $400,000 which is attributed to ancillary operations performance in the bookstores and residences operating at close to full capacity. Investment income Investment income revenue decreased by about $800,000 in 2011-2012 due to 2010-2011 figures including around $600,000 that was attributed to investment income earned on grant monies that were spent and accordingly pulled into income in that year. Expense highlights Total expenditures decreased significantly due to the significant one-time repairs and maintenance expenses incurred in 2010-2011. Lakeland’s largest expense increase was in salaries and benefits, which increased from $35 million in 2010-2011 to $37.5 million in 2011-2012. This equates to a 7.1 per cent increase. This increase is attributed to annual salary grid increments, increased benefit costs as well as increased staffing in some program areas including applied research. Expense by source
2009-2010 2010-11
2011-12
Salaries and benefits Repairs and maintenance Materials, supplies and services Cost of goods sold Amortization of capital assets Utilities Scholarships and bursaries Severances
$ 34,598,928 13,249,060 8,960,676 1,920,098 6,007,186 1,847,245 448,532 –
$ 35,020,792 14,606,932 10,950,163 1,952,793 6,177,507 1,714,618 413,200 –
$ 37,493,724 4,383,754 10,865,686 1,879,373 5,789,481 1,832,255 492,560 210,281
Total expenses
$ 67,031,725
$ 70,836,005
$ 62,947,114
2. Financial outlook Lakeland is concerned about the sustainability of operations beyond the 2012-2013 fiscal year if reinvestment does not occur. With indications of 2 per cent provincial operating grant increases, and the requirement not to increase tuition beyond the consumer price index, it will be difficult for Lakeland to maintain a balanced budget. Sixty per cent of Lakeland’s operating budget is salary and benefits, the cost of which will continue to increase by an anticipated 5 per cent. Lakeland will need to identify creative and entrepreneurial opportunities to decrease expenses without negatively impacting programs and services. The budget process for the 2013-2014 fiscal year has begun and Lakeland’s goal is to identify sustainable solutions, create new revenue streams and source operating efficiencies. Lakeland is committed to sustaining its operating position to create exceptional learning experiences for students, and will continue to work with government to develop and implement longterm strategies that will address the financial challenges facing the post-secondary system.
3. Capital projects As detailed in note 5 of the financial statements, Lakeland continues to invest in its information technology infrastructure, spending close to $1.8 million in information technology hardware and software. In addition, a one-time allocation of $1 million for upgrading and replacing aging academic small equipment resulted in around $2.6 million being spent on furniture and equipment in 2011-2012. The grand opening of the Renewable Energy Learning Centre in Vermilion and Child Development Centre at the Lloydminster campus contributed to $1.7 million in building additions and site improvements.
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Lakeland College
Donors Lakeland College thanks the many people and organizations who made a donation to the college between July 1, 2011 and June 30, 2012. 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. * denotes Lakeland College staff Acer America Corporation ADM Agri-Industries Company Agriculture Financial Services Corporation Alberta Agriculture & Rural Development AB Association of Animal Health Technology Alberta Automotive Recyclers & Dismantlers Association Alberta Assessor’s Association Alberta Blue Cross Alberta Government Community Spirit Program Allan’s Backhoe Service Ltd. Allard Foundation Ltd. *Phil & Denise Allen Mark & Kristine Alexander AMIK Oilfield Equipment Rentals Ed & Janet Anderson George Jr. & Judy Andrews Animal Nutrition Association of Canada Apple Drugs (Vermilion) Aramark Canada Ltd. Ardrossan Electric (2007) Ltd. *Ronald Lee Arthur ATB Financial ATCO Electric ATCO Gas Donnie & Tori Atkinson Ken & Marion Atkinson *Laura Baker Walter & Elizabeth Baker Mark & Catherine Bartley Battle River Community Foundation The Bea Fisher Centre Inc. C. Beckie Ellen J. Berglund Bert Duncan Trailer Sales Inc. Dave & Alison Betz *Larry & Rosanne Bingham John Bocock Terry & Kathleen Bocock William Bocock *Charlene Bonnar
*Lonnie & Layne Boothman Border Logistics Inc. Boston Pizza, Westlock Boundary Ford Boutique on Forty Fourth Krystene Boyd Doug & Kathy Bracken *Susan & Wayne Brazeau Keith & Jean Brennan Darryl & Colleen Bretzer John & Joan Bretzer Brian D. Larson Consulting Inc. Neil Bridges Carmen Brindle *Brindle Family Michael Broderick Melanie & Shane Brooks Peter & Yvonne Brown *Khursten Bullock Glen & Jackie Burrows Bykowski Sand & Gravel Inc. Caco Consulting Ltd. Mary & Jim Callander James & Denise Calderwood The Calgary Foundation *Robert Cameron Cecil & Iona Campbell Canadian Association of Petroleum Producers Canadian Heavy Oil Association Canadian National Railways Canadian Tire (Portage la Prairie) The Canadian Wheat Board *Janet Carey Janet Carlyon Deanna Carter CDBA-Alberta Jerry Chapman *Glenn & Joanne Charlesworth The Child & Youth Care Association of Alberta Jarrett Chisholm CIBC Antoinette Ciwko Belle Clark Natalie Clennett
Annual Report 2011-2012
Cobbe’s Plumbing & Heating Ltd. Murray Coburn Coca Cola Bottling Company Colchester & District Agricultural Society Convergint Technologies Bob & Bev Cormack Glen Cottrell County of Vermilion River David Cowan Ken & Verny Cox CPANS Lorne Craig Craig’s Vermilion Ltd. Creative Glass & Aluminum Ltd. Crestline Coach Ltd. Danette Crevier Crown Investment Corporation *Denis & Nancy Cunninghame Dabane Trucking Ltd. Mary Daigneault Rosabelle Daugela Michael & Carol Davison D.B. Higginbotham Electric Ltd. Bliss Dickson Doc Holiday’s Charters Ltd. *Lorena Donkin *Blair, Lisa & Travis Dow Dow Downs Farm Jackie Drew D. Segberg Consulting Ltd. *Jeff Dustow Eastalta Co-op Ltd. John & Terrie Eaton Edmonton Oilers Community Foundation Edmonton Symphony Orchestra Elements Hair & Body Doug Elliott Karen & Lloyd Elgert Emergency Services Academy Ltd. Ken & Hanna Emes Enterprise Rent-A-Car Alberta EST Battalion XIV EST Fund Raising Account
Bernard & Audrey Eyben Fabutan Suntan Studio Barry & Connie Fahrion Farm Credit Canada Howard Farrell Joan & Brian Ferguson Valeria Ferguson Frank & Ilene Fingland *Mary Finlin Firemaster Oilfield Service Inc. *Bob & Mariette Fisher Florissima Flowers & Plants Focus For Lovers Only Fort MacLeod Fire Department *Cecelia & Don Foster Fountain Tire Social Fund Bill & Myrna Fox Jim & Rita Fraser Frontier Peterbilt Sales Ltd. Fulkerth Services Ltd. Joseph & Sonja Galichowski Robert Gehl Don & JoAnn Gnatiuk The Goat Mary & William Goertzen *Barbara Gordey Allan & Elouise Gordeyko Jim & Connie Graham Grower Direct Marshall & Susan Hall Harris Electric Company Ltd. Mary Harrish Harold & Gertrude Hauer Harvey & Kathleen Hauer Vernon & Charlotte Hauer Hawkings Epp Dumont LLP Heavy Crude Hauling LP Larry & Linda Henderson Blair Hill Gordon & Cicely Hills Hillsask Farm Dennis Hobman John & Marilyn Hoegl Brandi Hofer Rudie & Marcia Ann Holmen Page 21
John & Patricia Holmes C. Jaye & Priscilla Holt Brian Honeker Honky Tonk Man Consulting Inc. *HOOT Staff Hound Junkie Robert Huff Husky Group of Companies Kristine & Chris Hyde Ideal Office Solutions Interior Designers of Alberta Hazel Irving Clayton & Connie Jackson Harvey & Anne Jessup Johnson Inc. *Kara Johnston Roger Jones Vic & Ann Juba Kalahari Management Inc. Kasian Architecture Interior Design & Planning Ltd. Sarah Kassian Kibblewhite Families *Lalit & Manju Kilam Knight Accounting Service Knight Seeds *Kohel Family Irwin & Denise Kostesky Roy Kubica KUDU Industries Inc. Karen & Tim Laing Lori Lake Lakeland College AHT Club Lakeland College Alumni Association Lakeland College Staff Association Lakeland College Stock Dog Club Lakeland College Students’ Association Dave & Silke Lane Colin & Evelyn Lang Lange’s Country Meats Lisa Lange Terrance & Deborah Lauder Rob Laxdal Melanie Lay L 4 Ventures Inc. Lions Club Lloydminster
Page 22
*Fang Liu Lloydminster Chamber of Commerce Lloydminster & District Co-operative Ltd. The Long Family Marvin Long Lucki’s Exercise Equipment Gena Lynch & John Angus Guy MacDonald *Cathy & Steve MacKenzie Duncan & Jean MacMillan *Debbie Maddex Tom Makepeace Mannville Truckwash Allan Paul Markin Reggie & Jean Marler MARSH Canada Limited Dawn Mawer Michael Mayhood May Theatres (1984) Ltd. *Kelly Mazerolle Richard & Joyce McBain Norman & Kathleen McClellan *The McCullough Family *Joanne McDonald Vivian McElhinney Arthur & Gladys McGinnis William & Theresa McIldoon *Kirk & Pam McInroy Steven McKenzie Percy McKinnon Ina McLean-Lawrence Donald & June McMillan George & Ivy McMillan Bill & Marie Melenka Allen Mercier Meyers Norris Penny LLC Joseph Milligan Minburn Motors Ltd. Misty Hills Charolais Ltd. *Douglas Moeckl *Jo-Ann Mones Meloche Monnex Delia Morgan-Tetz Gary & Isabelle Moses *Al Motley Mutual Propane Ltd. *Cheryl Nawrot *Debbie & Dave Neigum
Robert Nelson Newcap Inc. *Loralee Nichols Ron & Bernadette Nikkel Noralta Technologies Inc. Northeast Chapter ECAA Northwind Radio Ltd. *Simone & Mike Odynski Mae Olson One Tooth Activewear Ina Palmer Parke Inspection & Consulting Ltd. Parkland College *Keith & Jeanine Passey Doug & Marilyn Pawsey Peace Island Tours Pembina Pipeline Corporation David Penner Larry & Jennifer Penner Perma Earth Consulting Ltd. Margaret & Don Peterson Richard & Frances Pfeiffer PIC Investment Group Inc. *Wendy Plandowski Plezia Insurance Brokers The Princess Auto Foundation Inc. Jeff Porozni Nick Porozni Robert & Colin Porozni Poundmaker Pork Farm Inc. The Prairie Provinces Chapter of the NKBA Janice Preece Prospect Completions Ltd. Purdy’s Chocolates Ranch & Feedlot Rider Club *Aaron & Trisha Rawlake RBC Foundation RBC Royal Bank Redhead Equipment Relay Distributing RE/MAX Prairie Realty Shawn Jacula Robert & Shirley Reed Raymond Renaud Sr Riteline Services Road Runner Water Hauling Ltd. Jack & Dorothy Roberton John Robinson & Alice Curry
*William L Robinson *Alan & Denise Rogan Elizabeth Ronaghan Ronwood Enterprises Ltd. Rosewood Villa Rotary Club of Vermilion Royal Canadian Legion Royal Canadian Legion, Alberta-NWT Command Royal Canadian Legion Br. 39 Sand Control Systems Ltd. Sandpiper Truck Services Ltd. Donald & Mary Lee Sapsford Saskatchewan Assessment Management Agency Saskatchewan Association for Community Living Saskatchewan Association of Veterinary Technologists Saskatchewan Innovation & Opportunity SaskTel - Lloydminster Colleen Sawyer Jordan Scaife Vern & Sharon Schaab Brittany Schuk Scotiabank Gary Schwindt Maryanne Segboer Servus Credit Union Ltd. *Kerri Ann Sinclair W. Skripitsky Brian & Ferryn Slater Slims Trucking Ltd. Dave & Diana Smith *Ken & Debi Smith Lloyd & Diane Smith *Tricia Smith Society of Petroleum Engineers Solstice Canada Corp. Spicers Canada Ltd. Garry & Michelle Spilde Linda Splawinski Sportfactor Inc. Staples *Amanda & Jay Stepanick Faye Stevens Kimberly Stevenson Dr. Alex J. Stewart *SarahJayne Stoop Gary & Anne Stordahl
Lakeland College
Jarvie Store Strathcona County Professional Fire Fighters Association Strathcona Vintage Tractor Association Shane Straty Subway *Colleen & Mike Symes Synergy Credit Union Synergy Strength and Conditioning James Tally Tanmar Consulting Inc Target Safety Services Tarpon Energy Services Ltd. Margaret Taylor TD Bank Financial Group Clarabell Thalheimer The Gwyn Morgan & Patricia Trottier Foundation The Old Liquor Store Ltd. Gilbert & Ruth Tillmar Ken & Clara Tillsley Allen Tinio Tirecraft - Lloydminster Totem Building Supplies Ltd. Tourism Saskatchewan Ellis & Donna Treffry Trelleborg Engineered Systems Tri Jet Services Inc. Tri-Line Agencies *Ralph Troschke Beryl Turner Dennis Turner Carol & Bryan Tyerman UCG Universal Consulting Group Ltd. 970316 Alberta Ltd. / Terry & Frans Van Der Hoorn Daniel & Treva Veilleux
Vermilion Agricultural Society Vermilion Credit Union Ltd. Vermilion & District Chamber of Commerce Vermilion Jr. B Tigers Vermilion Shell Vet Med Assistant Club Vetstrategy Alberta Inc. Via Rail Canada Vista Radio Viterra *Alice Wainwright-Stewart *Deborah Ward Shannon Watson Milt & Carol Wakefield Barbara & Douglas Walker Elena Wansbutter *Patricia Wasylik Webb’s Crop Services Ltd. Myrtle Wegner *Cary & Nicola Weimer Terry West West Jet - Edmonton Bernard & Marlene Whitten Wilkinson Livingston Stevens LLP *K. Williams Shirley Williams *Angela Wilm Norm Wilson Olga Wingrove *Catherine M. Wolters Orest & Patricia Yackimec Peter & Helena Yeung *Darla Yonkman *Jim Zadorozny & Merle Thomson Allan & Olive Zwierschke
Annual Report 2011-2012
Page 23
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, 2012, and the statements of operations, changes in net 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 generally accepted accounting principles, 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, 2012, and the results of its operations and cash flows for the year then ended in accordance with Canadian generally accepted accounting principles.
[Original signed by Merwan N. Saher, FCA] Auditor General October 30, 2012 Edmonton, Alberta
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Lakeland College
Statement of Financial Position as at June 30, 2012 2012 2011 (Restated)
Assets Current Cash and cash equivalents (note 3) $ 11,740,146 $ Investments (note 4) 5,000,000 Accounts receivable 2,547,583 Inventories and prepaid expenses 2,675,851
8,244,220 5,089,855 2,006,172 2,432,384
21,963,580
17,772,631
Long-term investments (note 4) Other long-term assets Capital assets (note 5)
18,878,062 9,296 73,131,296
18,156,351 9,265 71,681,447
$ Liabilities and net assets Current liabilities $ Accounts payable and accrued liabilities Current portion of long-term liabilities (note 7) Deferred revenue
$
107,619,694
6,973,105 $ 120,000 2,594,968
6,699,856 607,462 2,884,852
9,688,073
10,192,170
Long-term liabilities (note 7) Deferred contributions (note 8) Deferred capital contributions (note 8) Unamortized deferred capital contributions (note 9)
1,680,000 4,699,816 11,147,710 48,861,101
1,772,036 4,873,075 6,616,400 48,971,742
Net assets Unrestricted Accumulated excess of revenue over expenses Accumulated net unrealized gain (loss) on investments (note 10) Internally restricted (note 11) Investment in capital assets (note 12) Endowments (note 13)
76,076,700
72,425,423
3,964,468 346,083 5,823,867 22,470,195 5,300,921
3,180,524 311,158 6,412,756 20,330,207 4,959,626
37,905,534
35,194,271
Contingent liabilities and contractual obligations (note 14 and 15)
$
113,982,234
113,982,234
$
107,619,694
Approved by the Board of Governors
Milt Wakefield Chair, Board of Governors
Glenn Charlesworth President
The accompanying notes are part of these financial statements. Annual Report 2011-2012
Page 25
Statement of Operations for the year ended June 30
Budget
Revenue
(note 16)
Government of Alberta grants $ Federal and other government grants Student tuition and fees Sales of services and products Contract and other revenue Amortization of deferred capital contributions (note 9) Investment income (note 17) Donations and other contributions Gain on disposal of assets
2012 2011
(Restated)
32,991,196 $ 1,359,315 11,299,726 4,898,445 4,212,502 3,500,000 430,000 187,732 –
$ 58,878,916
Actual
Actual
35,700,501 $ 1,984,978 12,408,902 5,985,754 5,291,987 2,903,880 657,822 304,241 44,092
$ 65,282,157
43,495,109 1,467,878 12,719,945 5,570,552 5,119,171 3,575,638 1,464,248 111,182 115,307
$ 73,639,030
Expense Salaries and benefits (note 19) $ 37,030,895 $ 37,493,724 $ 35,020,792 Material, supplies and services 9,823,605 10,865,686 10,950,163 Cost of goods sold 1,625,523 1,879,373 1,952,793 Amortization of capital assets 6,270,204 5,789,481 6,177,507 Maintenance and repairs 2,384,441 4,383,754 14,606,932 Utilities 1,993,596 1,832,255 1,714,618 Scholarships and bursaries 416,152 492,560 413,200 Severances – 210,281 –
$ 59,544,416
$ 62,947,114
$ 70,836,005
Excess of revenue over expenses
$ (665,500)
$ 2,335,043
$ 2,803,025
The accompanying notes are part of these financial statements.
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Lakeland College
Statement of Changes in Net Assets for the year ended June 30
Unrestricted Net Assets
Accumulated Excess of Revenue Over Expenses
Accumulated Net Unrealized Gain (Loss) on Investments
Internally Restricted Net Assets
Investment in Capital Assets
Endowments
(restated)
(note 10)
(note 11)
(note 12)
(note 13)
Total
Net assets June 30, 2010 $ 4,333,641 $ (410,664) $ 8,023,502 $ 14,763,319 $ 3,911,135 $ 30,620,933 Excess of revenue over expense 2,803,025 – – – – 2,803,025 Investment income – 721,822 – – – 721,822 Endowment contributions – – – – 1,048,491 1,048,491 Transfers (note 11) (3,500,000) – 3,500,000 – – – Net investment in capital assets (note 12) (5,566,888) – – 5,566,888 – – Expenditures of internally restricted net assets (note 11) 5,110,746 – (5,110,746) – – –
Net assets June 30, 2011 $ 3,180,524 $ 311,158 $ 6,412,756 $ 20,330,207 $ 4,959,626 $ 35,194,271 Excess of revenue over expense 2,335,043 – – – – 2,335,043 Investment income – 34,925 – – – 34,925 Endowment contributions – – – – 341,295 341,295 Transfers (note 11) (651,133) – 651,133 – – – Net investment in capital assets (note 12) (2,139,988) – – 2,139,988 – – Expenditures of internally restricted net assets (note 11) 1,240,022 – (1,240,022) – – –
Net assets June 30, 2012
$ 3,964,468
Annual Report 2011-2012
$ 346,083
$ 5,823,867 $ 22,470,195
$ 5,300,921
$ 37,905,534
Page 27
Statement of Cash Flows for the year ended June 30, 2012 Cash provided from (used in) operating activities Excess of revenue over expense
2012 $
2,335,043
2011 (restated) $
2,803,025
Add (deduct) non-cash items: Amortization of capital assets Amortization of deferred capital contributions Gain on disposal of capital assets
5,789,481 (2,903,880) (44,092)
6,177,507 (3,575,638) (115,307)
Total non-cash items
2,841,509
2,486,562
Net change in non-cash working capital (*)
(245,495) (10,696,907)
4,931,057
Cash used in investing activities Purchases of capital assets, net of proceeds from disposals Purchases of long-term investments, net of sales
(5,407,320)
(7,195,240) (11,101,953) (1,169,019) (1,595,223)
(8,364,259) (12,697,176) Cash provided from (used in) financing activities Endowment contributions Capital contributions Repayment of long-term liabilities
184,075 7,324,549 (579,496)
1,048,491 7,500,133 (558,663)
6,929,128
7,989,961
Increase (decrease) in cash and cash equivalents 3,495,926 (10,114,535) 8,244,220 18,358,755 Cash and cash equivalents, beginning of year Cash and cash equivalents, end of year (note 3)
$ 11,740,146
$ 8,244,220
(*) Net change in non-cash working capital: Decrease in short-term investments $ Increase in accounts receivable Increase in inventories and prepaid expenses Increase in other long term assets Increase (decrease) in accounts payable and accrued liabilities Increase (decrease) in deferred contributions Increase (decrease) in deferred revenue
89,855 $ 935,145 (541,411) (46,504) (243,467) (433,936) (31) (75) 273,249 (2,331,143) 466,194 (8,846,122) (289,884) 25,728
(245,495)
Page 28
$
$ (10,696,907)
Lakeland College
Notes to the Financial Statements for the year ended June 30, 2012 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 Enterprise and 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 diploma and certificate programs as well as a full range of continuing education programs and activities. The College is a registered charity, and under section 149 of the Income Tax Act (Canada), is exempt from the payment of income tax. 2 Summary of Significant Accounting Policies and Reporting Practices a) General - GAAP and Use of Estimates These financial statements have been prepared in accordance with Canadian generally accepted accounting principles, for not for profit organizations. The measurement of certain assets and liabilities is contingent upon future events; therefore, the preparation of these financial statements requires the use of estimates, which may vary from actual results. College management uses judgment to determine such estimates with amortization of capital assets and amortization of deferred capital contributions being the most significant item based on these estimates. In management’s opinion, the resulting estimates are within reasonable limits of materiality and are in accordance with the significant accounting policies summarized below. These significant accounting policies are presented to assist the reader in evaluating these financial statements and, together with the following notes, should be considered an integral part of the financial statements. b) Financial Instruments The College’s financial assets and liabilities are generally classified and measured as follows: Financial Statement Component
Classification
Measurement
Cash and cash equivalents Investments Accounts receivable Other long-term assets Accounts payable and accrued liabilities Long-term liabilities
Available for sale Available for sale Loans and receivables Loans and receivables Other liabilities Other liabilities
Fair value Fair value Cost Amortized cost Cost Amortized cost
The College’s financial instruments are recognized on their trade date and transaction costs related to all financial instruments are expensed as incurred. Financial assets classified as available-for-sale are measured at fair value with changes in fair values recognized in the Statement of Changes in Net Assets or deferred contributions as appropriate until realized, at which time the cumulative changes in fair value are recognized in the Statement of Operations. The College does not use hedge accounting and accordingly, is not impacted by the requirement of Section 3865. As permitted for Not-for-Profit Organizations, the College has elected not to apply the standards on embedded derivatives in non financial contracts, and has elected to continue to follow Section 3861: Disclosure and Presentation. When the market value of an investment falls below its cost and the decline is determined to be other-than-temporary, the cumulative loss that had been recognized directly in net assets is removed and recognized directly in the Statement of Operations even though the financial asset has not been derecognized. Impairment losses recognized in the Statement of Operations for a financial instrument classified as available-for-sale are not reversed in subsequent years.
Annual Report 2011-2012
Page 29
Notes to the Financial Statements (continued) The carrying value of cash and cash equivalents, receivables, accounts payable, and accrued liabilities approximate their fair value due to the relatively short periods to maturity of the instruments. The fair value of investments is market value. Financial instruments are exposed to market risk, credit risk, interest rate risk and commodity price risk. Each of these risks are managed through the College’s collection procedures, investment guidelines, banking arrangements and other internal policies, guidelines and procedures. Market Risk The College is subject to market risk, foreign currency and interest rate risk with respect to its investment portfolio. To manage these risks, the College has established a target mix of investment types designed to achieve the optimal returns within reasonable risk tolerance. Credit Risk The credit risk for accounts receivable is relatively low as the majority of balances are due from government agencies and corporate sponsors. Credit risk from tuition is managed through restricted enrolment activities for students with delinquent balances and maintaining standard collection procedures. Commodity Price Risk The College is exposed to commodity price risk as a result of substantial electricity and natural gas usage required to operate the institution’s facilities. To mitigate these risks, the College has entered into contracts to fix the price for electricity. c) Inventories Livestock inventory is recorded at net realizable value. All other inventories are valued at the lower of cost and net realizable value. Cost is determined by first in first out method. apital Assets d) C Capital assets purchased are recorded at cost with a capitalization threshold of $1,000. In-kind contributions are initially recorded at fair value when a fair value can be reasonably determined. Work in progress (WIP) includes the costs directly attributable to the construction including engineering and legal fees attributed to the construction of capital assets. WIP is not amortized until the asset is put into service. Capital assets, once placed into service, are amortized on a straight-line basis over the following estimated average useful lives or term of lease: Buildings and site improvements Furnishings, equipment and learning resources Vehicles, systems and equipment
3 - 40 years 10 years 5 years
e) Revenue Recognition The financial statements record the following items as revenue - at the following times: • Unrestricted contributions - when received or receivable, if the amount can be reasonably estimated and collection is reasonably assured. • Pledges - when collected. • Unrestricted investment income - when earned; this includes interest, dividends, and realized gains and losses. • Tuition fees and contract programs and sales, rentals and services - when the goods are delivered or the services are provided and collection is reasonably assured. • Donations of materials and services that would otherwise have been purchased are recorded at fair value when a fair value can be reasonably determined. • Restricted contributions - based on the deferral method.
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Lakeland College
Notes to the Financial Statements (continued) Deferral method Contributions, including investment income on the contributions, which are restricted for purposes other than endowment or capital asset acquisitions, are deferred and recognized as revenue when the conditions of the contribution are met. Contributions to acquire capital assets with limited lives are first recorded as deferred capital contributions when received, and when expended they are transferred to unamortized deferred capital contributions and amortized to revenue over the useful lives of the related assets. Endowment contributions are recognized as direct increases in endowment net assets. Investment earnings, under agreements with benefactors or the Post-secondary Learning Act allocated to endowment principal, are also recognized as direct increases in endowment net assets. Endowment investment earnings that are allocated for spending are deferred and recognized as revenue when the conditions of the endowment are met. f) Foreign Currency Translation Financial assets and liabilities recorded in foreign currencies are translated to Canadian dollars at the year-end exchange rate. Revenues and expenses are translated at average weekly exchange rates. Gains or losses from these translations are included in investment income. g) Employee Future Benefits The College participates with other employers in the Local Authorities Pension Plan (LAPP). This pension plan is a multiemployer defined benefit pension plan that provides pensions for the College’s participating employees based on years of service and earnings. The College does not have sufficient plan information on the LAPP to follow the standards for defined benefit accounting, and therefore follows the standards for defined contribution accounting. Accordingly, pension expense recorded for the LAPP is comprised of employer contributions to the plan that are required for its employees during the year; which are calculated based on actuarially pre-determined amounts that are expected to provide the plan’s future benefits. h) Capital Disclosures The College defines its capital as the amounts included in deferred contributions (note 8), endowments (note 13) and unrestricted net assets. The College’s capital is created by funding from Alberta Enterprise and Advanced Education, other government funding agencies, donations and the College’s entrepreneurial activities. The College has investment policies (note 4), spending policies, and cash management procedures to ensure the College can meet its capital obligations. Under the Post-secondary Learning Act, the College must receive ministerial or Lieutenant Governor in council approval for a deficit budget, mortgage and debenture borrowing and the sale of any land, other than donated land, that is hereby held by and being used for the purpose of the College. i) Contributed Services Volunteers as well as members of the staff of the College contribute an indeterminable number of hours per year to assist the institution in carrying out its mission. Such contributed services are not recognized in these financial statements. j) Future Accounting Changes The Public Sector Accounting Board (PSAB) has issued a framework for financial reporting for government not-for-profit organizations. The framework will be effective for fiscal years beginning on or after January 1, 2012. Effective July 1, 2012, the College will adopt the Canadian Public Sector Accounting (PSA) standards without the public sector PS 4200 series. Adopting these new standards will impact the College’s financial statements. As a result, administration has identified the major difference between current and Canadian PSA accounting and reporting standards. Administration is developing a transition plan and continues to work through the remaining differences. The quantitative impact of the transition cannot be fully and reasonably determined at this time.
Annual Report 2011-2012
Page 31
Notes to the Financial Statements (continued) 3 Cash and Cash Equivalents Cash and cash equivalents, with a maximum maturity to 90 days as at purchase are as follows:
2012 2011 Cash $ 1,827,804 $ 3,631,541 Money market funds and guaranteed investment certificates 9,912,342 4,612,679
$
11,740,146
$
8,244,220
4 Investments As at June 30th, the composition and fair value on investments are as follows:
2012
Unrealized Cost Base Gain (Loss) Market Value
2011 Cost Base
Unrealized Gain
Market Value
Money market funds and guaranteed investment $ 10,421,245 $ 251,457 $ 10,672,702 $ 11,769,390 $ 727,064 $ 12,496,454 certificates Canadian bonds 5,500,507 264,914 5,765,421 5,418,247 80,204 5,498,451 Canadian equity 3,921,591 111,795 4,033,386 1,617,462 223,377 1,840,839 Foreign equity 3,177,816 (55,188) 3,122,628 3,153,467 8,859 3,162,326 Other 263,899 20,026 283,925 247,328 808 248,136 $ 23,285,058 $ 593,004 $ 23,878,062 $ 22,205,894 $ 1,040,312 $ 23,246,206 Short-term investments 5,000,000 – 5,000,000 5,089,855 – 5,089,855 Long-term investments $ 18,285,058 $ 593,004 $ 18,878,062 $ 17,116,039 $ 1,040,312 $ 18,156,351 The College’s investment strategy is to meet expenditure requirements within one year, investing such funds in liquid investments. The balance of funds are invested for a longer term with a mix of maturities between 1-10 years. Pooled Bond Funds have an average effective yield of 2.59% (in 2011, 3.17%) and weighted average term to maturity of more than one year. The College has policies and procedures in place governing asset mix, diversification, exposure limits, credit quality and performance measurement. The College’s Finance Committee, a subcommittee of the Board of Governors, has delegated authority for oversight of the College’s investments. The Finance Committee meets regularly to monitor investments, to review investment manager performance, to ensure compliance with the College’s investment policies and to evaluate the continued appropriateness of the College’s investment policies.
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Lakeland College
Notes to the Financial Statements (continued) 5 Capital Assets 2012
2011
Accumulated Net Book Accumulated Cost Amortization Value Cost Amortization
Net Book Value
Buildings and site improvements $ 119,719,130 $ (66,093,967) $ 53,625,163 $ 118,022,562 $ (63,713,010) $ 54,309,552 Furnishings, equipment and systems 37,897,237 (25,640,777) 12,256,460 33,471,225 (22,931,392) 10,539,833 Learning resources 3,538,780 (3,129,994) 408,786 3,449,479 (3,109,868) 339,611 Vehicles 2,833,167 (2,119,943) 713,224 2,490,738 (2,125,950) 364,788 Land 5,580,712 – 5,580,712 5,580,712 – 5,580,712 Milk quotas 546,951 – 546,951 546,951 – 546,951
$ 170,115,977 $ (96,984,681)
$ 73,131,296 $ 163,561,667
$ (91,880,220) $ 71,681,447
Included in buildings, furnishings, equipment and systems is $1,194,825 (2011 - $1,618,018) recorded as work in progress regarding building and information technology projects that were ongoing at year end. These assets are not amortized as the assets are not yet available for use. Acquisitions during the year include in-kind contributions (such as equipment, buildings and vehicles) in the amount of $53,297 (2011 - $29,710). During the 2010/11 year, Lakeland College acquired 100% of the shares in Barrhill Corporation with the title of land and buildings transferring to the College in April of 2011 at a purchase cost of $4,521,000. All assets of the corporation were transferred to the College and there are no liabilities assumed in relation to any of these assets. It is the College’s intention to utilize these assets for educational purposes. 6 Employee Future Benefit Liabilities Multi-Employer Pension Plans The Local Authority Pension Plan (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, 2011 the LAPP reported an actuarial deficiency of $4,639,390 (2010 - $4,635,250,000 deficiency). The pension expense recorded in these financial statements is $2,542,369 (2011 - $2,384,040). 7 Long-term Liabilities
Maturity Date
Debentures payable to Alberta Capital Finance Authority (ACFA) Capital lease with IBM
2018 2012
Amount Outstanding Interest Rate % 2012 2011 6.50% $ 4.75%
1,800,000 $ 1,920,000 _ 459,498
1,800,000 2,379,498 Less current portion
(120,000)
(607,462)
$ 1,680,000 $ 1,772,036 Annual Report 2011-2012
Page 33
Notes to the Financial Statements (continued) 7 Long-term Liabilities (continued) The ACFA loan is a 25 year debenture secured by residences with fair value of $2,527,909. The principal portion of long-term liability repayments required over the next five years and thereafter are:
2013 $ 120,000 2014 120,000 2015 120,000 2016 120,000 2017 120,000 2018 and thereafter $ 1,200,000
$ 1,800,000
8 Deferred Contributions Deferred contributions represent unspent externally restricted grants and donations. Changes in the deferred contributions balances are as follows:
2012
2011
Capital Other
Capital Other
$ 6,616,400 $ 4,873,075 $ 2,723,433 $ 13,433,658 Balance, beginning of year Grants and donations received 6,302,986 6,147,446 7,297,108 6,154,645 Investment income 165,264 558,713 43,813 348,828 Current year unrealized gain (loss) – (482,233) – 285,539 on endowments Recognized as income (83,713) (5,463,830) (76,303) (14,292,207) Grant funds allocated to endowments – (100,000) – (837,656) Transferred to unamortized (833,355) (3,371,651) (219,732) deferred capital contribution (note 9) (1,853,227) Balance, end of year
$ 11,147,710
$
4,699,816
$
6,616,400
$
4,873,075
9 Unamortized Deferred Capital Contributions Unamortized deferred capital contributions represent the unamortized grants and donations received to fund capital acquisitions. The amortization of unamortized deferred capital contributions is recorded as revenue in the statement of operations. The changes in the unamortized deferred capital contributions balance are as follows:
2012
2011
Balance, beginning of year $ 48,971,742 $ Additions from deferred contributions (note 8) 2,686,582 Additions from restricted contract revenue 106,657 Amortization to revenue (2,903,880)
48,940,217 3,591,383 15,780 (3,575,638)
Balance, end of year
48,971,742
Page 34
$
48,861,101
$
Lakeland College
Notes to the Financial Statements (continued) 10 Net Unrealized Gains (Losses) on Available-For-Sale Investments
2012
2011
Net unrealized gain (loss) on available for-sale investments $ (426,969) $ Net investment gain (loss) realized on available-for sale investments during the year and reported in Statement of Operations (20,339) Increase in unrealized gain (loss) on available-for sale investments Balance, beginning of year Balance, end of year
$
(447,308) 1,040,312 593,004
$
969,084 38,277 1,007,361 32,951 1,040,312
2012
Endowment net assets, recorded in deferred contributions
$ Balance, beginning of the year Gain (loss) during the year Balance, end of the year
Other Net Assets
729,154 $ (482,233)
$
246,921
Total (note 4)
311,158 $ 34,925
$
346,083
2011
$
Total
1,040,312 $ (447,308)
32,951 1,007,361
593,004 $
1,040,312
11 Internally Restricted Net Assets Internally restricted net assets represent amounts set aside by the College’s Board of Governors for specific purposes. Those amounts are not available for other purposes without the approval of the Board and do not have interest allocated to them. Internally restricted net assets are summarized as follows: Appropriations from Net addition or Balance at (returned to) unrestricted (disbursements) beginning of year net assets during the year Appropriations for capital activities Academic equipment $ New residence construction Heavy oil petroleum facility
1,000,000 $ 2,700,000 –
– $ (2,700,000) 3,000,000
(925,740) $ – –
Balance at end of year 74,260 – 3,000,000
3,700,000 300,000 (925,740) 3,074,260 Appropriations for operating activities Major maintenance Delivery Initiatives
– 2,579,099 133,657
– 326,133 25,000
– (311,474) (2,808)
– 2,593,758 155,849
2,712,756 351,133 (314,282) 2,749,607 Total appropriations
Annual Report 2011-2012
$ 6,412,756
$
651,133
$ (1,240,022) $ 5,823,867
Page 35
Notes to the Financial Statements (continued) 12 Investment in Capital Assets Net assets invested in capital assets and collections represent the carrying amount (net book value) of capital assets and collections less unamortized deferred capital contributions and any related debt.
2012
2011
Capital assets at net book value (note 5) $ 73,131,296 $ 71,681,447 Less amounts financed by: (48,971,742) Unamortized deferred capital contributions (note 9) (48,861,101) Long-term liabilities relating to capital expenditures (1,800,000) (2,379,498) Investment in capital assets, end of year
$
22,470,195
$
20,330,207
The changes during the year are as follows: 2012
Investment in capital assets, beginning of year
$
2011
20,330,207
$
14,763,319
Acquisitions of capital assets Long-term liability repayment Net book value of disposed assets Amortization of investment in capital assets
4,533,652 579,496 (87,559) (2,885,601)
7,661,810 558,663 (51,716) (2,601,869)
Net investment in capital assets
2,139,988
5,566,888
Investment in capital assets, end of year
$
22,470,195
$
20,330,207
13 Endowments Endowments consist of externally restricted donations received by the College and internal allocations by the College’s Board of Governors, the principal of which is required to be maintained intact in perpetuity. Investment income earned on endowments must be used in accordance with the various purposes established by the donors or the Board of Governors. Allocations to address inflation proofing of endowments are performed only when such an action is a specific requirement within the individual endowment agreement or when deemed appropriate to do so by the College’s Executive team. Under the Post-secondary Learning Act, the College has the authority to alter the terms and conditions of endowments to enable:
• income earned by the endowment to be withheld from distribution to avoid fluctuations in the amounts distributed and generally to regulate the distribution of income earned by the endowment.
• encroachment on the capital of the endowment to avoid fluctuations in the amounts distributed and generally to regulate the distribution of income earned by the endowment if, in the opinion of the Board of Governors, the encroachment benefits the College and does not impair the long-term value of the fund.
In any year, if the investment income earned on endowments is insufficient to fund the spending allocation, the college will pay the scholarships that have been advertised and committed to for that fiscal year. The status of future scholarship payments will be determined by the Executive Team. The composition of endowments is as follows:
2012
2011
Balance, beginning of year $ Gifts of endowment principal Grant funds allocated to endowments Internal transfer to endowments
4,959,626 $ 184,075 – 157,220
3,911,135 252,698 795,793 –
Balance, end of year
$
5,300,921
$
4,959,626
Cumulative contributions
$
5,300,921
$
4,959,626
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Lakeland College
Notes to the Financial Statements (continued) 14 Contingent Liabilities The College is a defendant in a number of legal proceedings. While the ultimate outcome and liability of these procedures cannot be reasonably estimated at this time, the College believes that any settlement will not have a material adverse effect on the financial position or the results of operations of the College. Administration has concluded that none of the claims meet the criteria for being recorded in the Financial Statements. 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. Service contracts $ Construction projects Information systems and technology
1,159,833 1,502,783 2,499,115
$ 5,161,731
The aggregate amounts payable for the unexpired terms of these contractual obligations are as follows:
Service contracts
Construction projects
Information systems and technology
$ 454,226 $ 1,327,753 $ 2013 436,391 175,030 2014 – 2015 162,625 – 2016 93,438 – 2017 13,153
$
1,159,833
$ 1,502,783
$
Total
668,164 $ 2,450,143 619,364 1,230,785 603,058 765,683 299,608 393,046 308,921 322,074 2,499,115
$ 5,161,731
Included in service contracts are electricity contracts in order to manage its exposure to the volatility in the electrical industry. The College has entered into a contract to fix a portion of its electrical cost at an average of $56.63 per megawatt hour that expires on December 31, 2015. 16 Budget Comparison The College’s 2011-12 budget was approved by the Board of Governors as was presented to the Minister of Enterprise and Advanced Education as part of the College’s submission of its 2011-2014 Comprehensive Institutional Plan. 17 Investment Income
2012 2011
Investment income on investments held for endowments $ Investment income on other investments
544,549 $ 837,250
212,342 1,644,547
1,381,799 1,856,889 Amounts deferred Gain charged to endowment net assets
(354,634) (369,343)
(392,641) –
(723,977) (392,641) Investment income
Annual Report 2011-2012
$
657,822
$
1,464,248
Page 37
Notes to the Financial Statements (continued) 18 Related Party Transactions and Balances The College operates under the authority and statutes of the Province of Alberta. Transactions between the College and the Government of Alberta (GOA) are measured at the exchange amount and summarized below.
2012
Contributions from Government of Alberta Enterprise and Advanced Education: Operating grants $ Capital grants Access to the future fund (matching fund) Other
31,312,419 5,600,000 – 3,435,355
$
2011
30,477,733 7,142,500 813,191 4,374,231
Total Enterprise and Advanced Education
40,347,774
42,807,655
Other Government of Alberta agencies grants: Alberta Agriculture Alberta Health and Wellness Alberta Culture and Community Spirit Alberta Employment and Immigration Alberta Innovates Future Technology Alberta Environment Alberta Municipal Affairs - Transportation
216,500 184,865 7,255 24,328 253,938 (4,968) 200,000
30,500 83,951 24,465 14,500 – (22,037) –
Total other government agencies
881,918
131,379
Total contributions received Less: deferred contributions
41,229,693 (13,129,779)
42,939,034 (9,309,973)
$ 28,099,913
Accounts Receivable Enterprise and Advanced Education Other Government of Alberta Departments and Agencies
$ 150,728
Accounts Payable Enterprise and Advanced Education Other Government of Alberta Departments and Agencies
– 150,728
– 43,547
$ 43,547
$ 33,629,061 1,852 78,874 $ 80,726 50,593 11,490 $ 62,083
The College has long-term liabilities with Alberta Finance and Alberta Capital Finance Authority as described in note 7.
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Lakeland College
Notes to the Financial Statements (continued) 19 Salary and Employee Benefits Treasury Board Directive 12-98 under the Financial Administration Act of the Province of Alberta requires the disclosure of certain salary and employee benefits information.
2012
Base Salary (1)
Other Cash Benefits (2)
2011
Other Non-Cash Benefits (3)
Total
Total
Governance (4) Chairman of the Board $ – $ 18,734 $ – $ 18,734 $ 13,101 Other Board Members – 35,260 575 35,835 54,515 – $ 53,994 $ 575 $ 54,569 $ 67,616 Executive President (5) VP Academics and Innovation VP Student and College Services VP Advancement
251,000 177,495 175,500 138,750
– 7,000 7,000 –
322,680 29,720 29,680 23,487
573,680 214,215 212,180 162,237
278,897 194,364 192,364 146,545
742,745 14,000 405,567 1,162,312 812,170 Salaries & Benefits $ 742,745 $ 67,994 $ 406,142 $ 1,216,881 $ 879,786 Expense in Year (1) Base salary includes pensionable base pay. (2) Other cash benefits includes honoraria and bonuses. (3) Employer’s share of all employee benefits and contributions or payments made on behalf of employees including pension, health care, dental coverage, vision coverage, out of country medical benefits, group life insurance, accidental disability and dismemberment insurance, long and short term disability plan, professional memberships and tuition. (4) The Chair and Members of the Board of Governors receive no remuneration for participation on the Board. (5) Includes 12 month exit payment negotiated in July 1, 2011 contract (6) In the 2011/12 year the Senior Executive Team was changed to include only the President and Vice Presidents. The Director of Community Relations and Director of Human Resources were no longer members of the Senior Executive Team.
Annual Report 2011-2012
Page 39
Notes to the Financial Statements (continued) 20 Compliance with the Charitable Fundraising Act and Regulation The following disclosure is prepared in accordance with the Charitable Fundraising Act and Charitable Fundraising Regulation of the Province of Alberta. The total non-personnel expenses incurred for the purpose of soliciting contributions was $111,496 (2011 - $93,285). The total amount paid as remuneration to employees of the College whose principal duties involve fundraising was $587,247 (2011- $413,407). 21 Prior Period Restatement The 2011 balances have been restated to correct an overstatement of benefit costs. The restatement was done to disclose the amount held in the employer funded Alberta Blue Cross plan.
Balance as previously stated Change
Balance as restated
Accumulated excess (Deficiency) of revenue over expenses (beginning balance)
$
3,962,862
$
370,778
$ 4,333,640
Inventories & Prepaid Expenses
$
2,061,606
$
370,778
$ 2,432,384
22 Canada - Alberta and Saskatchewan Knowledge Infrastructure Program The Canada – Alberta/Saskatchewan Knowledge Infrastructure Program (KIP) was established to provide funding in support of capital projects at post-secondary institutions in order to offset the impact of the global economic recession by providing employment opportunities. Eligible KIP projects can receive up to 50% of its funding from Government of Canada contributions through direct payments made by the Province. The remaining portion of funding for KIP projects is made up of internal resources and provincial contributions. The KIP program supports eligible costs incurred from February 24, 2009 to June 30, 2011, however some projects under the program have been extended to October 31, 2011. Amounts received from the Provinces of Alberta and Saskatchewan representing Government of Canada contributions and total eligible costs incurred on KIP projects are as follows: Contributions - Federal Total eligible costs
April 1, 2011 to June 30, 2011 $ $
– 38,079
July 1, 2010 to March 31, 2011 $ $
1,031,250 3,666,157
July 1, 2009 to June 30, 2010 $ $
1,731,250 2,721,952
The remaining contract obligations to meet will be expended in the 2011-12 year totalling:
Total $ 2,762,500 $ 6,426,188 $
–
22 Comparative Figures Certain 2011 figures have been reclassified to conform to the presentation adopted in the 2012 financial statements.
Page 40
Lakeland College
5
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