2021-22 Lakeland College Annual Report

ANNUAL REPORT

MISSION,VISION, VALUES.

Mission

To inspire lifelong learning and leadership through experience, excellence, and innovation.

Vision

Transforming the future through innovative learning.

Values

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Askıyiwimamıhcıtotamowin

Here at Lakeland College, we acknowledge that the land we gather on is the traditional homeland, hunting, and ceremonial gathering places of the First Nations, Métis and Inuit. The Plains Cree, Woodland Cree, Saulteaux, Blackfoot, Métis, Dene, and Nakota Sioux people have practiced their culture and languages on Treaty 6 and Métis Region 2 territories for generations and were the original caretakers of this land. Many First Nation, Métis and Inuit peoples call this land home today and have done so for millennia. We would like to acknowledge the history we have created together on this land, and to be thankful for the opportunity to walk together side-by-side in friendship, learning from our past, and promoting positive relationships for the past, present and future.

Three members of our Indigenous Student Committee created this land acknowledgement for Lakeland College. Kiera Comeau, Samantha O’Reilly and Ryan Powder wrote the askīyiwimamīhcītotamowin. The English translation of this Cree concept is the act of acknowledging the earth (land). It was unveiled on April 6, 2022.

ACCOUNTABILITY STATEMENT

Lakeland College’s Annual Report for the year ended June 30, 2022, was prepared under the Board’s direction in accordance with the Fiscal Planning and Transparency Act and ministerial guidelines established pursuant to the Post-Secondary Learning Act. All material economic, environmental or fiscal implications of which we are aware have been considered in the preparation of this report. [Original signed by Adam Waterman] Chair

Lakeland College Board of Governors December 2022

MANAGEMENT’S RESPONSIBILITY FOR REPORTING

Lakeland College’s management is responsible for the preparation, accuracy, objectivity and integrity of the information contained in the Annual Report including the financial statements, performance results and supporting management information. Systems of internal control are designed and maintained by management to produce reliable information to meet reporting requirements. The system is designed to provide management with reasonable assurance that transactions are properly authorized, are executed in accordance with all relevant legislation, regulations and policies, reliable financial records are maintained and assets are properly accounted for and safeguarded.

The Annual Report has been developed under the oversight of the institution audit committee, as well as approved by the Board of Governors and is prepared in accordance with the Fiscal Planning and Transparency Act and the Post-Secondary Learning Act

The Auditor General of Alberta, the institution’s external auditor appointed under the Post-Secondary Learning Act, performs an annual independent audit of the consolidated financial statements which are prepared in accordance with Canadian public sector accounting standards.

[Original signed by James Smith] Chief Financial Officer Lakeland College

Public Interest Disclosure (Whistleblower Protection) Act

Under the Public Interest Disclosure (Whistleblower Protection) Act, Lakeland employees can report in good faith when they believe a wrongdoing has occurred. Lakeland has a detailed procedure that explains the whistleblower process that is followed.

A requirement of the Public Interest Disclosure (Whistleblower Protection) Act is that all disclosures made during the year are reported.

Lakeland did not receive any disclosures during the 2021-22 year.

MANDATE

This mandate statement has been developed by Lakeland College in consultation with the Minister of Advanced Education pursuant to Section 78 of the Post-Secondary Learning Act (PSLA).

1. Type of Institution, Sector, and Governance

Lakeland College is a board-governed public post-secondary institution operating in Alberta as a comprehensive community college under the authority of the PSLA.

2. Outcomes

Lakeland College is committed to preparing Albertans for success by helping its learners achieve their academic and career goals. Lakeland provides access to high-quality academic programs and is a leader in student-managed learning experiences and innovation. Providing work-integrated learning opportunities prepares students to excel as leaders in industry and their communities. Lakeland programs are responsive to the needs of industry and produce job-ready graduates prepared to contribute to Alberta’s economy. Lakeland works closely with employers and industry organizations to ensure curriculum and training are aligned with the labour market and that students can interact directly with industry while in their programs. Through practicums, work placements, co-ops, and on-campus student-managed enterprises, students develop hands-on skills and gain valuable experience directly related to their sector. These experiences help students develop a passion for their field, and to become critical thinkers, problem solvers, communicators, and contributing members of innovative teams. Lakeland instructors come from industry and bring a wealth of knowledge and experience into the classroom to enhance the learning experience.

This focus is making a difference. In a recent national survey of over 40,000 college and university students and recent graduates, Lakeland ranked as the #1 College Most Recommended by Students, #2 in Best Overall Value, #2 in the Most Skills-Focused Curriculum, and #3 in Best for Getting a Job. Employment outcomes also indicate the significance and quality of Lakeland programming; 89 per cent of Lakeland graduates are employed, 92 per cent are satisfied with their jobs, and 94 per cent would recommend Lakeland to other students. Feedback from employers is perhaps more impressive with 96 per cent of employers indicating that they would recommend a Lakeland graduate to other employers and 98.9 per cent of employers indicating that they would hire another Lakeland graduate. Much of this success can be attributed to the emphasis placed on academic excellence, hands-on learning, and the opportunity students have to participate in workintegrated learning experiences.

3. Clients/Students

Lakeland’s inclusive academic environment ensures a commitment to underrepresented learners. Located in the heart of Treaty 6 territory, Lakeland is an active participant in reconciliation, providing programming, services and campus planning to support our Indigenous learners to succeed in academics and beyond. Our 2020-21 stats indicate over 7.5 per cent of our student base identified as Indigenous. However, we know the actual number of Indigenous students exceed this percentage. Lakeland continues to serve the needs of the community which includes interacting with over 200 students who have identified needs and providing learner accommodations yearly. Within Lakeland’s Human Services academic school, 72 students take their programming in French.

Lakeland serves learners of all ages and stages of life from those entering the post-secondary world to mature learners who are seeking reskilling or upskilling. Lakeland transitional experiences, foundational learning, career exploration, certificates, diplomas, apprenticeship, and niche undergraduate study support students and meet the regional labour market needs.

4. Geographic Service Area and Type of Delivery

Established in 1913, Lakeland is a key driver in rural sustainability, economic recovery, development and expansion by providing learning opportunities to rural learners. Because these opportunities strongly align with the labour market, employers in this economically important region of Alberta have access to a skilled and well-trained workforce that is crucial to economic growth. To maximize learner access to programs and courses, a variety of instructional delivery methods are used including face-to-face, blended, and online learning. Lakeland’s digital use continues to evolve

to support programming, regional collaboration, and industry need. Lakeland’s stewardship model includes working with community-based adult learning programs and creating learner pathways that support dual credit programming and career and technology studies.

Consulting with a range of partners such as K-12 school divisions, industry associations, agricultural societies, Rotary clubs, Chambers of Commerce, professional associations, Friendship Centres, Métis associations, First Nations, Alberta Innovates, the Regional Business Accelerator, economic development organizations, and the Regional Innovation Network, Lakeland seeks to promote individual growth, informed community members, and educated citizens through facilitation, information sharing, and collective capacity building.

Program delivery at Lakeland includes opportunities for students to engage with student-managed learning enterprises. These work-integrated learning experiences are a significant part of Lakeland’s delivery model. Students, with mentorship from faculty, run several on-campus enterprises, including a play program, a concession at Rustler athletic events, a tax clinic, a power plant, a hair and esthetician salon, an environmental consulting office, and commercial crop and livestock business units.

5. Program Mandates and Credentials Offering

Lakeland awards certificates, diplomas, and bachelor’s degrees in niche programming areas, as well as post-diploma certificates and post-baccalaureate certificates. The college also offers apprenticeship programming that prepares people to become certified journeypersons. Collaboration with a range of post-secondary partners helps Lakeland meet the various needs within its regional stewardship area including collaboration with degree-granting institutions to offer baccalaureate degree programs when it is efficient to do so. As a member of Campus Alberta, Lakeland has partnerships and transfer agreements to expand its programming and service capacity while improving efficiencies for Alberta.

6. Special Program Areas/Areas of Specialization

Lakeland offers agricultural sciences, pre-employment, apprenticeship, agriculture technologies, foundational learning, energy, environmental sciences, fire and emergency services, health and wellness, human services, business, and university transfer programming. Lakeland also designs and delivers programs to meet specific learner, community, and industry needs through continuing education and corporate training models.

Lakeland’s programming combination complements the economic strengths of Alberta and its stewardship region. Aligning programming with the regional labour market of agriculture and oil and gas activity, Lakeland is the only post-secondary institution in Alberta with academic schools in all the following sectors: agricultural sciences, energy, and trades and technology. Lakeland’s Student-Managed Farm – Powered by New Holland (SMF) is renowned throughout Canada and is a key reason why the college is a national leader in commercial agricultural production programming. The SMF is a fully integrated, multi-enterprise, commercial farm that enables students to run a $6 million commercial agricultural business, a commercial-scale crop operation, and multiple commercial, research, and purebred livestock herds, including Lakeland’s 80-head beef research herd of crossbred Angus cattle, 280-head dairy herd, and new 200-head bison operation. Lakeland is the only institution in Alberta with diploma programs that specialize in commercial crop and forage as well as commercial beef production. Lakeland’s new Bachelor of Agriculture Technology program, the first degree of its kind in Canada, prepares students for the rapid evolution of technology in agriculture and for careers that bridge the gaps between emerging technologies such as data-enabled precision data systems, machine learning and artificial intelligence, and agriculture production and management.

Lakeland excels at embedding student-managed enterprises within program curriculum providing opportunities for students to enhance their learning and leadership skills. These enterprises are a strategic approach to work-integrated learning and provide authentic learning environments right on campus where students apply what they’ve learned and develop job-ready skills. This teaching and learning model helps develop curiosity, critical thinking, a passion for the sector, professionalism, and technological literacy.

7. System Collaboration and Partnerships

Lakeland works with a variety of agencies, institutions, advisory committees, learning councils, business, industry, and research organizations to meet the diverse need of its region, and ensure alignment with government priorities and college strategic goals.

To highlight a few collaborative activities, Lakeland continues its work with Community Adult Learning Programs (CALPs) to

understand the diverse needs. Programs and pathways such as Employment Skills Enhancement, and Digital Literacy for Employment become positive transitions to post-secondary experiences. Lakeland’s longstanding collaboration with Northern Lakes College supports foundational learning, while collaborations with Alberta and Saskatchewan school authorities make dual credit opportunities available to high school students throughout the two provinces.

Partnerships with industries such as: Masterfeeds, TrustBIX, MNP, Alberta Pulse Growers, SeCan, AgX, Canadian Angus Association and ALUS and other post-secondary institutions including University of Alberta, University of Calgary and Olds College help to advance agriculture research.

Lakeland collaborates with University of Alberta to deliver its Aboriginal Teacher Education Program at the Lloydminster campus.

To strengthen local economic development, Lakeland works with community partners such as Alberta Milk, New Holland, Canadian Natural Resources Limited, Cenovus, Peterbilt, Points West, Canadian Land Reclamation Association, Snap-on Tools, 4-H Foundation of Alberta, Top Grade Ag, Mosaic, BASF, OneCup Al, and Libby Young.

8. Research and Scholarly Activities

Applied research at Lakeland involves collaboration with industry and other end users for the purpose of benefiting the social, economic, and environmental aspects of its region. Applied research projects must complement teaching and learning and advance innovation-based rural economic development. Initiatives are geared towards supporting Alberta’s future economy by helping partners capitalize on new opportunities and find solutions to current challenges.

Lakeland is a founding member of Canadian Agri-Food Automation and Intelligence Network (CAAIN) which is focused on accelerating the automation and digitization of Canada’s agricultural sector.

With Lakeland’s applied research focus on agricultural sciences, research teams are specialized to enhance agricultural technology for improved productivity, efficiency, and sustainability in commercial crop and livestock production. A newly renovated 743 square metre Agriculture Technology Centre (ATC) will serve as the central hub for ag tech data collection, and home to the new Bachelor of Agriculture Technology program plus ag tech applied research activities. A data lab, large equipment lab and a makerspace area within the ATC will support innovation and entrepreneurship. Research in the ATC will focus on the development, implementation, validation, knowledge translation and commercialization of ag technology solutions that will enhance regional productivity and sustainability.

With the transfer of Alberta Agriculture and Forestry research teams in commercial beef production and pulse, Lakeland’s applied research footprint in commercial agriculture production has grown significantly over the past year. Lakeland now has three research scientists focused on commercial livestock production, as well as scientists focused on each of cereal production, pulse production, and canola production. The strategic research priorities of these teams are informed by two producer committees, one for crop research and another for livestock research. These research committees ensure Lakeland’s research priorities in commercial agriculture will benefit producers and support economic growth in the agriculture sector.

9. System Mandate

Lakeland plays a leading role in rural sustainability, economic recovery and development contributing to its broader social, economic, and environmental footprint. Lakeland is committed to providing training opportunities targeted at the labour market needs to ensure workforce preparedness and strengthen local economies.

Lakeland offers international projects, practicum experiences, and study abroad opportunities to prepare its students to participate in an interconnected world. The college welcomes international students and embraces the opportunity to provide an environment that supports global connectedness. To enhance each student’s college experience, Lakeland offers a full range of personal and academic services including academic advising, athletics, cafeterias, clubs, financial aid, health, Indigenous support services, learning strategies and support, recreation, residence, student centres, and career and wellness services. Lakeland strives to create an inclusive and welcoming culture for all. To enhance learner success, Lakeland provides a learning and teaching commons that creates personalized learning pathways and supports instructional excellence. Students develop competencies in different learning methods and technologies, so they are prepared for lifelong learning.

Approved by the Minister, Advanced Education

June 10, 2021

PRESIDENT’S MESSAGE

Tyler Bendfeld, a carpentry apprentice, won a silver medal at the Skills Canada National Competition.

Our 104th academic year was a year to remember.

A year that saw us:

• win competitions and claim championships

• adapt to changing health guidelines

• serve almost 6,000 credit and non-credit students, supporting them in and beyond the classroom

• and continue to offer an award-winning education that ensures our students are job ready when they graduate.

Hands-on learning has always been our focus. Despite the challenges brought on by COVID-19, we were able to successfully continue to offer programs on campus and in person, as safely as possible. This year 79 per cent of our programs offered work-integrated learning within their curriculum.

So, whether our students came to Lakeland this year to build a business, run a farm, put out fires, or work in environmental sustainability, they learned by doing.

We continued to offer more than 50 programs to meet the needs of industry as well as our region and provincial economy. And we launched several new programs, including the bachelor of agriculture technology, the first of its kind in Canada. More than 40 agricultural organizations were consulted to create this program.

We also launched:

• an agricultural sustainability diploma

• a post-bachelor certificate in commercial agriculture production

• and sustainable energy micro-credentials.

Our programs are vetted through our industry partners and advisory committees. And with their support, we continued to develop new programs that will be available in 2022-23, including:

• business administration marketing major

• barber certificate

• pre-employment automotive services certificate

• and a re-imagined agribusiness diploma featuring five streams. It includes value-added features to accommodate the changing needs of the food industry. With the support of the Government of Alberta, we also have the opportunity to expand enrolment in our animal health technology and health care aide programs.

COVID-19 played a significant factor in full load equivalents (FLEs) dropping to 1,901 in 2020-21. This year, FLEs increased to 1,970. We continued to invest in the spaces and places needed for our students to excel. The Agriculture Technology Centre opened in September 2021. Located at the Vermilion campus, it is home to the bachelor of agriculture technology program and ag tech applied research activities. It’s a space that cultivates learning, exploring and understanding, and is where our students and researchers are at the forefront of the high-tech advancements in agriculture. The modernized and expanded WHT Mead Building will open in September 2022. We appreciate the support we’ve received from government, donors and funding partners for these and other initiatives.

Our students and employees demonstrated exceptional leadership and excellence throughout the year:

• Tyler Bendfeld, a carpentry apprentice, won a silver medal at the Skills Canada National Competition in Vancouver

• Khyler Yockey, a clinical esthetician student, also reached the national podium, winning bronze

• Dr. Brenda Ralston, a livestock research scientist, received the 2022 Alberta Farm Animal Care Award of Distinction

• Our external relations team won a 2022 Circle of Excellence Award from the Council for Advancement and Support of Education. They were recognized with a bronze medal for their production of Excel, the college’s alumni magazine.

Our Rustlers experienced excellence on and off the field. Our teams won multiple Alberta Colleges Athletic Conference (ACAC) medals and our women’s basketball team won a Canadian Collegiate Athletic Association bronze. We’re proud that we had six Academic All Canadians, who excelled in their sport and in academics. The Rodeo Team continued its dominance, winning five championship buckles at the Canadian College Finals Rodeo. We cheered on alumni Scott Guenthner and Kolby Wanchuk as they competed in the Wrangler National Finals Rodeo in Las Vegas in December. And Rustlers Nation expanded with the addition of a women’s hockey team.

We welcomed new members to our board of governors, including Dr. Sean Lessard and Dean Fahselt. We said thanks and farewell to outgoing board chair Scott Webb, whose last official duty as chair was speaking at the opening of the Agriculture Technology Centre. Adam Waterman became the board chair Sept. 29, 2021.

Members of our Indigenous Student Committee created a new land acknowledgment for our campus community. Development is underway for a Belongingness Ecological System meeting human needs including diversity, inclusion and belonging.

We developed new partnerships with other post-secondary institutions, including a new degree transfer pathway with the University of Alberta.

Our research team grew with a new director, researchers, and staff - all who offer real solutions to real challenges and new opportunities to help producers and industry. Exciting research projects continued at Lakeland, thanks to Results Driven Agriculture Research; Alberta Innovates; Natural Sciences and Engineering Research Council of Canada’s Applied Research and Technology Partnership grant; Alberta's Research Capacity Program; Canada Foundation for Innovation; and our other partners. There were 36 active projects and 56 products, processes, and services developed or enhanced in 2021-22.

Our work supports the Alberta 2030: Building Skills for Jobs strategy. We strengthen the economy and support rural sustainability in numerous ways, including:

• providing quality programming, from foundational learning to apprenticeship training and micro-credentials to degrees.

• ensuring that students in our region can access post-secondary education close to home, as well as attracting students from across Canada and internationally.

• sharing our facilities and services with our community and region.

• providing skilled graduates for the workforce, ready to contribute. And most do. In our 2022 graduate outcome survey, 91 per cent of respondents were employed.

• employing a large local workforce. For the sixth consecutive year, we were named one of Alberta’s Top 75 Employers.

• and adding more than $130 million to the regional economy through our operations, student spending and alumni impact. Lakeland College is many things to many people. It is a place of learning and collaboration and a place that fosters creativity and innovation with its world-class academics and industry-changing research. By remaining focused on our mission, vision and values, we have ensured that Lakeland continues to be a safe, dynamic and world-class place for our students to gain the hands-on learning they need to succeed.

As we remain focused on our values of integrity, respect, excellence, community, innovation and learner success, there’s much we can accomplish together.

President and CEO Lakeland College

[Original signed by Dr. Alice Wainwright-Stewart]

OPERATIONAL OVERVIEW

Lakeland College provides truly immersive learning experiences that shape futures and prepare students for the real world. The college's campuses – one in Vermilion and one in Lloydminster – are designed to guide students beyond the classroom, creating tangible environments where they can learn, lead and manage. Lakeland's focus on hands-on learning ensures students graduate with the skills, knowledge and competencies to join the workforce or continue their education.

Lakeland is a hub for innovation, supportive student services and academic excellence. With high-quality, industry-relevant, affordable and accessible post-secondary education opportunities, Lakeland is focused on how best to serve its students, the region and the province. Lakeland plays a crucial role in strengthening Alberta's economic foundation by providing career preparation, jobs, programs and applied research that drive the province forward.

Programming areas at Lakeland include agricultural sciences, business, energy, environmental sciences, fire and emergency services, foundational learning, health and wellness, human services, interior design technology, trades and technology, and university transfer. In 2021-22, Lakeland welcomed the first cohort of students into its new bachelor of agriculture technology program, Canada's first such degree program.

Due to the response to COVID-19, Lakeland's full load equivalents (FLEs) dropped to 1,901 in 2020-21. Enrolment started to rebound in 2021-22, as FLEs increased to 1,970. This growth was on the strength of domestic enrolment, as international enrolment continued to decline due to travel restrictions. There was a slight increase in the number of self-identified Indigenous students attending Lakeland. The number increased from 287 in 2020-21 to 311 in 2022.

Student tuition and fees increased slightly in 2021-22, from $14,147,000 in 2020-21 to $14,972,000 in 2021-22. Revenue from sales of services and products declined to $7,372,000 in 2020-21, but this was offset by a modest recovery to $8,898,000 in 2021-22. The decline in sales of services and products revenue was due to restrictions on the number of students in residence and the loss of contract revenue from in-person training at the Emergency Training Centre. In 2020-21 and 2021-22 most of the losses in revenues were offset by reductions in expenses.

Economic overview

The full impact of the worldwide response to COVID-19 has yet to be felt. Government debt, the short and long-term effects on the supply of labour and on the supply of goods and services, and the effects of inflation have been and will continue to be significant. Significant increases to interest rates may result in an economic recession. These increases also increase the risk that governments will continue reducing support for postsecondary education to fund large interest payments on accumulated debts.

Since the fall of 2019, Lakeland has managed 9.3 per cent cuts to its operating grant and an additional budget reduction of $11.8 million. These reductions support expenditure targets outlined in the January 2020 Government of Alberta post-secondary funding framework. These changes have been managed through strategies to reduce expenditures to discretionary expenses such as travel, professional development and hosting, along with changes in programming and staffing levels.

The economic effect of the response to COVID-19 on Lakeland for 2019-20, 2020-21 and 2021-22 fiscal years was significant. However, for 2020-21 and 2021-22, the college was able to mitigate revenue losses with expenditure reductions, and the net effect on the bottom line was not significant.

Lakeland remains very prudent with its budgets. Although the government has relaxed restraints on increases to tuition and other student fees, enrolments may be negatively impacted by COVID-19 for several years.

Because of its fiscal situation, the provincial government has mandated a zero per cent increase in wages and benefits for post-secondary institutions. Nevertheless, if settlements cannot be negotiated, arbitrators make the final decision, and increases are possible regardless of the government mandate. Given significant increases to inflation, increases to salaries are anticipated. Every 1 per cent increase in salaries would increase the college's expenses by $400,000. Lakeland will soon face significant operating deficits if typical annual salary increases return.

Capital investment

Lakeland needs to invest heavily in revitalizing its infrastructure – the required investment is estimated to be $150 million. Lakeland continues to build a Strategic Investment Fund to address this critical need. Lakeland allocated $9 million to its Strategic Investment Fund for the year ended June 30, 2018, another $5 million for the 2019 fiscal year, $8 million in 2021 and a further $3 million in 2022. Internally restricted assets at June 30, 2022, now stand at $26.4 million, although $16.4 million of this is restricted to ongoing projects.

More funding is needed to invest in capital projects as aging infrastructure poses a significant risk to effective operations. Therefore, Lakeland will need to generate future surpluses and also receive funding support from the provincial and/or federal governments.

The Government of Alberta continues to recognize this needed investment. The government provided a $17.3 million grant in July 2020 for a significant renovation to the WHT Mead Building at the Vermilion Campus (completed in 2022) and $2.1 million to fund the Lloydminster campus heating plant replacement and renovation.

Risk management

Lakeland's largest risk is its dependence on funding from the Government of Alberta (56 per cent of revenue) and ongoing regulation of tuition fees (22 per cent of revenue). Currently the Government of Alberta has restricted its growth in grants but has allowed modest increases to tuition to help offset cost increases and pressures for post-secondary institutions. The Government of Alberta has also now tied the operating grant to certain performance metrics (enrolments, work-integrated learning, graduate outcomes and administration expenses) and if certain benchmarks are not achieved as written, an operating grant can be reduced quite significantly to the affected post-secondary institution.

Aging infrastructure is another major risk, as discussed previously.

Other risks, in addition to funding and aging infrastructure, include an emerging risk related to the short and long-term effects of the response to COVID-19 on the mental health of staff and students.

An ongoing and ever-changing risk is related to cyber security. The costs to protect Lakeland from cyber risks continue to increase, and processes necessary to prevent breaches add significant administrative burden. Much attention is focused on financial and cyber security controls in the public sector. The college has completed the documentation of its risk and control matrix. Recommendations from the review of the controls will require increased investment in control functions, including cyber security and internal audit. Increased government attention and red tape will also require more time and resources to address information and reporting requests. The chief financial officer has completed documentation and testing of Lakeland's internal control framework. This was developed with support from chief internal auditors in the sector. Lakeland also continued to provide chief financial officer consulting services to Portage College through a shared services arrangement. Other shared services and shared systems opportunities are being explored.

GOALS AND PERFORMANCE MEASURES

Lakeland’s Vision 2030 provides a holistic approach that ensures the Government of Alberta and Lakeland’s goals are met. Four overarching outcomes frame Lakeland’s Vision 2030 work: learner success, relevant programming and research, connectivity, and sustainability.

Lakeland is helping to drive forward the Alberta 2030: Building Skills for Jobs strategy by focusing on the following goals and performance measures that directly align with the government’s strategy.

Alberta 2030 Goal: Improve Access and Student Experience

Ensure all Albertans have access to high-quality post-secondary opportunities and that the student experience is coordinated and integrated.

Classes of 2019, 2020 & 2021 Graduate Follow-up Survey. Survey conducted in 2022 by Hanover Research.

Lakeland Goal Priority Initiatives Expected Outcome Performance Measures Result

Collaboration with Regional School Divisions Collaboration with regional high school divisions to continue offering dual credit programming.

Work with Indigenous partners to identify transition programming needs.

Progress made in 2021-22

Developing pathways to PSI.

Maintain number of dual credit offerings.

Maintain number of career and technology studies (CTS) offerings. Maintain number of transition programs.

Achieved Achieved Achieved

Lakeland maintained the number of dual credit courses it offered at 11. There were 133 unique students enrolled in dual credit courses during the year, with some completing multiple courses. Lakeland’s offerings attracted students from 15 different Alberta school divisions.

Career and technology studies courses remained the same, with mechanics, welding, electrical, interior design technology and carpentry once again offered by Lakeland. The number of students increased from 209 the previous year to 218 in 2021-22. New was a collaboration with Buffalo Trail Public Schools (BTPS) to deliver CTS courses in the summer. Mechanics and welding were offered in July 2021.

BTPS and Lakeland collaborated to host Campus Visit Day in May. A total of 215 high school students from throughout the school division toured the Lloydminster campus and learned more about Lakeland’s programs and services. New foundational learning courses offered within daytime programming were ELA A30 and Math Foundations 20. To optimize student access, foundational learning programs are offered Mondays through Fridays from 9 a.m. to 3:30 p.m., and Adult 12 courses are offered every second evening Mondays through Thursdays from 6:30 to 9 p.m. Lakeland implemented the Proof of Vaccine Policy Restrictions Program, ensuring foundational learning students could take classes in-person. Work was done in recent years to strengthen pathways for foundational learners and help them successfully transition through different programs and course levels. Lakeland conducts a thorough interview, intake, and assessment process to place students in the correct program or course to increase their likelihood of success. In addition, individualized attention, in-person classes, and access to counselling and wellness supports contribute to student success. The goal is to increase student completion rates so they can join the workforce and/or move to higher level skill specific training or post-secondary programming.

An introduction to welding course was held at the County Energy Park site for Onion Lake Cree Nation in April. There were nine students in the three-week course. Five students intend to continue their studies in Lakeland’s pre-employment welding program in the fall.

Eighteen Indigenous students from Frog Lake were at Lakeland for three days in May to explore Lakeland programs and services. They lived in residence during their time at the college. Six of the participants plan to attend Lakeland in the 2022-23 academic year.

Lakeland Goal Priority Initiatives

Increase

Expected Outcome Performance Measures Result

Increase

Not Achieved

Progress made in 2021-22

The number of students in foundational learning courses decreased by five from the previous year. There were 120 students in courses in 2020-21, and 115 in the 2021-22 academic year. The reason for the decline was COVID-19 although Lakeland was one of the few post-secondary institutions to successfully offer in-person classes. Lakeland implemented the Proof of Vaccine Policy Restrictions Program. In addition, the start date of a program was deferred due to COVID-19.

Lakeland Goal Priority Initiatives Expected Outcome Performance Measures Result

Flexible

Increase the total number of flexible program offerings.

Progress made in 2021-22

Achieved

Work was completed to offer ten first-year business administration courses online. Five courses were offered online beginning in the fall semester, with the remaining five available online starting in the winter semester.

Solar PV and energy advisor micro-credentials were successfully launched online during the year.

Animal health technology welcomed its first blended class, with 22 students taking classes online. Throughout the two-year program, students are required to be at the Vermilion campus five times to complete labs. The shortest stay is 5 days and the longest is 11 days.

American Sign Language and Deaf Culture Studies was offered online. University transfer also increased the number of courses it offered online.

For the first time, all three apprenticeship technical training periods for the parts technician program were offered online during the academic year.

Thanks to Government of Alberta funding plus support from the Town of Wainwright and Alberta Health Services, Lakeland’s health care aide program is expanding. The program will be offered in Wainwright in a blended delivery format in the 2022-23 academic year. The Town of Wainwright and Alberta Health Services helped with preparatory work for program approval, including curriculum review and a site visit. The program is also offered at the Lloydminster campus in a blended delivery format, with online theory, inperson labs and practicums.

Progress made in 2021-22

The number of transfer agreements increased from 178 to 199. The schools of agricultural sciences and environmental sciences entered into new agreements with the University of Lethbridge. An agreement was also signed with the University of Alberta ensuring animal science technology graduates can transfer their credits to the university’s Bachelor of Science in Agriculture.

Lakeland and Saskatchewan Polytechnic finalized a transfer agreement. Saskatchewan Polytechnic graduates of environmental engineering technology, integrated resources management, and civil engineering technologies: water resources can continue their studies in Lakeland’s Bachelor of Applied Science: Environmental Management program.

More Affordable Learning Resource Opportunities Expand blended/online learning opportunities.

and learnercentered program delivery models throughout the region.

Lakeland Goal Priority Initiatives Expected Outcome Performance Measures Result

Increase Transfer Credit Continue expanding the number of transfer agreements.

Students have more pathways to continue their education.

Increase the number of transfer agreements. Achieved

Alberta 2030 Goal: Develop Skills for Jobs

Progress made in 2021-22

Progress made in 2021-22

Lakeland

Lakeland’s proposal for energy technician was declined.

Lakeland Goal Priority Initiatives Expected Outcome Performance Measures Result

Ensure Programs are of the Highest Quality and Align with Labour Market Needs

Factor labour market information into decisions about program proposals and program suspensions. Revise our career fair model.

Stronger relationships with industry partners, better alignment between curriculum and the job market, and better employment outcomes for learners.

Graduate employment rate exceeds 85%.

Re-energize and fully engage with our industry advisory committees.

Assist students in setting up a LinkedIn account. Job interview skills developed.

Program curriculum reflects labour market needs.

Program evaluation process identifies gap areas within curriculum and program outcomes.

Graduate employment rate exceeds 85%.

Discipline specific skillsbased curriculum.

Develop industry mentorship programs.

Programs will identify skills to target for career specific needs.

Academic areas will develop plans where possible to create mentorship experiences. Students graduate with job-ready skills.

Completion of all annual program reviews and selected program evaluations. Graduate employment rate exceeds 85%.

Develop Alumni Mentorship program.

Sheila Musgrove type program for students.

Employment skills development.

Enhancing work integrated learning supports.

Students are confident about their job search abilities.

Every student can identify that they received this kind of guidance.

Graduate employment rate exceeds 85%

Achieved

Achieved Achieved Achieved Achieved

MEASURES

Progress made in 2021-22

Hanover Research conducted a graduate outcome survey in June. Graduates from the Classes of 2019, 2020 and 2021 were surveyed. Of the respondents 91% were employed and three per cent were continuing their education. In addition, 98% agreed that their education provided them with job-specific knowledge while 92% reported that their studies prepared them well for future employment.

Labour market information helped inform Lakeland’s proposals throughout the year, including successful submissions for the development of barber certificate, community support practitioner and reactivation of the business administration - marketing major. Proposals for targeted enrolment expansion funding were submitted for the animal health technology and health care aide programs. Both proposals were approved. Lakeland’s proposal for agri sales & customer relations was also approved. This was a submission in response to the Ministry of Advanced Education’s call for expansion of apprenticeship-style programs.

All annual program reviews were completed. Comprehensive program reviews were completed on health care aide, sustainable energy technology and agribusiness. In March, Lakeland announced that the agribusiness program was redesigned to feature a common first semester, after which students have the option to choose one of five specialties: production, marketing, agri-food and tourism, sustainability or finance. These specialties will be available in the 2022-23 academic year.

To meet shifting industry and organizational needs, 52 course changes were approved by Lakeland’s Academic Council during the year. This included pre/co-requisite changes, creating new courses for new programs, name and credit changes, and curriculum updates.

During the final period of apprenticeship technical training, students learn about mentorship and their role as a journeyperson. The new agri sales & customer relations program includes a mentorship component, as students will be mentored by an employer while taking online sales training.

Rather than a general fall Career Fair at the Vermilion campus and winter Job Fair at the Lloydminster campus, Lakeland’s crossfunctional team created a few new events. The Ag & Enviro Career Fair was held in September at the Vermilion campus. There were 36 employers registered and 309 attendees. Due to COVID-19, a Virtual Job Fair was held in February with 57 employers. While 190 people registered to attend, only 86 attended. It’s speculated that virtual fatigue was a factor in the lower-than-expected attendance.

Two LinkedIn Launchpad sessions were held in the fall. Students had the opportunity to get a professional photo taken and create an account. Forty-two students attended. A virtual LinkedIn Masterclass was also held in November 2021, teaching 35 students and alumni what tactics drive career results on the platform. The number of people following Lakeland’s LinkedIn account increased from 12,986 in July 2021 to 14,328 by the end of June 2022.

In addition to a LinkedIn Masterclass, two other Power Hour virtual sessions were held featuring Sheila Musgrove, a résumé and interview coach, and Chief Cadmus Delorme. The sessions help students and alumni connect and learn skills, build networks and prepare for career success.

Ladder Up sessions, featuring Lakeland alumni sharing career experiences, were also held throughout the year. Students and alumni were invited to attend the virtual mentorship sessions and learn from alumni.

An online job board debuted on Lakeland’s new website in September 2021, making it easier for employers to post jobs. It also increased student access to job opportunities. Employers posted 983 jobs on the board during the year.

Alberta 2030 Goal: Support Innovation and Commercialization

Contribute to Alberta’s innovation capacity by supporting post-secondary research and strengthening its commercialization potential to create new knowledge, develop future skills and diversify the economy.

Applied research by the numbers

36

active applied research projects

Academic year (July 1, 2021 - June 30, 2022).

56 products, processes and services developed

or enhanced

Lakeland Goal Priority Initiatives Expected Outcome Performance Measures

Build Capacity in InterCultural Understanding and Diversity

Continue to grow recruiting networks. Diversify recruiting regions.

Progress made in 2021-22

Continue to implement the international strategy.

138 students participated in research projects

Increase international students by 2% as COVID-19 restrictions are reduced.

Result

Not Achieved

International recruitment was hampered by COVID-19. As restrictions were still in place, Lakeland served 149 international students, a decrease of 45 students from the previous year.

MEASURES

Alberta 2030 Goal: Improve Sustainability and Affordability

Provide institutions greater flexibility to generate own-source revenue and strengthen student aid.

Lakeland met or exceeded all Investment Management

Agreement targets

Lakeland Goal Priority Initiatives Expected Outcome Performance Measures Result

Ensure Compliance with Government Submission and Reporting Guidelines

Ensure proper planning in financial framework. Expand shared support collaborations among other post-secondary institutions. Ensure proper planning in Investment Management Agreement (IMA) process.

Progress made in 2021-22

Adhere to the institutional accountability data deadlines set by the GOA.

Ensure Lakeland maintains a financially viable budget plan, capital plan, capital maintenance and renewal (CMR) program, and three-year savings plan.

Improved institutional performance.

Identify key leaders responsible for report completion and submission.

Adherence to board approved plans.

Achieved

Meet or exceed all IMA targets.

Achieved

Achieved

Required reports were assigned to specific departments and employees well in advance with follow up reminders to ensure deadlines were met, which they were. An accountability framework was also created.

The capital plan and budget plan were submitted to the Government of Alberta in May. The capital maintenance and renewal plan was updated.

Lakeland met or exceeded all of the Investment Management Agreement targets.

Lakeland Goal Priority Initiatives Expected Outcome Performance Measures Result

Ensure Compliance with Government Expectations

Ensure efficient operations and balancing total expenditures between overhead and nonoverhead operations.

Progress made in 2021-22

Adherence to deadlines.

Commit to actions identified by the Government of Alberta.

Achieved

Lakeland’s administration expense ratio continued to be under 10 per cent.

Alberta 2030 Goal: Strengthen System Governance

Modernize governance of the system to increase collaboration and drive outcomes.

60%

Percentage of graduates who reported finding employment in less than one month after graduation.

Classes of 2019, 2020 & 2021 Graduate Follow-up Survey. Survey conducted in 2022 by Hanover Research.

Lakeland Goal Priority Initiatives Expected Outcome Performance Measures Result

Increase Collaboration with Campus Alberta and Other Relevant Provincial Agencies.

Work with Campus Alberta personnel to develop collaborations.

Increased partnerships within the Campus Alberta system.

Continue shared Chief Financial Officer sharing partnership with Portage College.

Continue developing internal controls partnership.

Progress made in 2021-22

Achieved

Lakeland finalized an internal controls framework during the year. This framework documents and identifies key processes and controls that mitigate material misstatements with financial statements and reporting. The Office of the Auditor General is satisfied with this framework, and an internal audit plan will be annually developed from this framework for review and testing, beginning in 2022-23.

Lakeland also helped Portage College with its internal controls framework and testing. Chief financial officer consulting services were provided to Portage College on an 85-15 per cent shared services arrangement.

New transfer agreements were signed with the University of Lethbridge and the University of Alberta.

Applied research collaborated with numerous partners from post-secondary, government, industry, producer groups and more.

Lakeland Goal Priority Initiatives Expected Outcome Performance Measures Result

Adhere to Government of Alberta Strategy on Provincial Governance

Follow government guidelines related to new governance model.

Progress made in 2021-22

Identify areas of expertise required to strengthen our regional opportunities.

Ensure Lakeland’s Board matrix is updated annually.

Achieved

Adam Waterman was appointed chair of the Board of Governors in September 2021. He replaced Scott Webb who announced his retirement from the board after serving as board chair from 2018 to 2021.

Lakeland welcomed two new public members to the Board of Governors. Dean Fahselt and Dr. Sean Lessard were appointed as public members in January 2022.

The Board’s matrix was updated in November 2021 and March 2022.

ENROLMENT REPORT

Lakeland’s 2021-22 full load equivalents (FLEs) enrolment was 1,970.494. Enrolment continued to be affected by the impact of COVID-19. While domestic enrolment increased from the previous year, international enrolment declined.

Total FLEs 2019-20 2021-22 2020-21 2,032.416 1,901.085 1,970.494

Program completions (unique students)

2019-20 2021-22 LAKELAND COLLEGE

student enrolment FLEs Unique students 1,657 1,641 3,298 1,496 1,703 3,199 1,540 1,754 3,294 1,104 1,131 1,000 144.53 230 165.069 289 194.947 311 236.903 284 149.346 198 114.265 149

REGIONAL STEWARDSHIP, FOUNDATIONAL

UNDERREPRESENTED

As highlighted in our mandate, Lakeland’s inclusive academic environment ensures a commitment to underrepresented learners.

Indigenous services

Lakeland supports Indigenous students in four distinct areas: culture, wellness, academic and financial. The Indigenous Support Services (ISS) team offers various resources to help students, including Circles for Reconciliation. This program is open to Indigenous and non-Indigenous students. Throughout the academic year, ISS plans a variety of events and activities. During the 2021-22 academic year, more than 30 activities took place, ranging from soup and bannock days to Elder in Residence Speaking Series and sharing circles to Truth and Reconciliation Day. ISS works with the Indigenous Student Committee on a number of initiatives as well, including The Red Dress Project, Indigenous Awareness Week and more.

Three members of the Indigenous Student Committee created a land acknowledgement for Lakeland. Kiera Comeau, Samantha O’Reilly and Ryan Powder wrote the askīyiwimamīhcītotamowin. The English translation of this Cree concept is the act of acknowledging the earth (land). This acknowledgement is read at events, and posters are displayed throughout both campuses. External organizations in the region have approached Lakeland to use the acknowledgment for their events.

Lakeland is partnering with the First Nations University of Canada and Reconciliation Education to share a new opportunity with our campus community. The online course 4 Seasons of Reconciliation will be available to all employees in 2022-23. The 10 modules promote a renewed relationship between Indigenous Peoples and Canadians through transformative learning about truth and reconciliation.

Foundational learning

Foundational learning programming increased with two additional offerings. Work was done in recent years to strengthen pathways for foundational learners and help them successfully transition through different programs and course levels. Lakeland conducts a thorough interview, intake, and assessment process to place students in the correct program or course to increase their likelihood of success. In addition, individualized attention, in-person classes, and access to counselling and wellness supports contribute to student success. The goal is to increase student completion rates so they can join the workforce and/or move to higher level skill specific training or post-secondary programming.

With proceeds from the Feast on the Farm fundraiser, academic schools had access to money to deliver studentled initiatives. In 2020-21, foundational learning students started a family literacy project. Love of books and reading needs to start early for young people so confidence grows and building blocks are in place for reading and writing. With the Feast on the Farm funds, students organized custom-made literacy Christmas baskets for each family in the adult basic programs.

Accessibility services

Lakeland provides accessibility services, peer tutoring, health and wellness, and learning success services to help students succeed. During the year, 215 students registered with Accessibility Services. Fifty per cent of students with agreements had a documented learning disability, while 34 per cent had a documented mental health diagnosis. Almost 2,000 accommodated exams were facilitated across both campuses. Fifty-one peer tutors provided tutoring services to 215 students. The accessibility advisor conducted three virtual and five in-person learner success workshops that were attended by more than 160 students.

Financial support

Lakeland’s financial aid and awards team helps students find the funding they need. More than $1.2 million in awards, scholarships and bursaries were distributed to students. There was an increase in the number of students seeking funding via bursaries. There were 385 bursary applicants, an increase of almost 50 applicants, and 173 bursaries awarded.

The Students’ Association of Lakeland College has been operating an open food pantry and supplying grocery gift cards on both campuses since 2017. This initiative has been possible with the generous donations from many individuals and organizations, and the Students’ Association annual contribution. Keeping the pantries stocked was manageable previously, however, the pandemic and rising costs has meant that donations are no longer keeping up with the increased demand.

Community collaboration

Lakeland representatives attended two provincial regional stewardship meetings and the Lloydminster Learning Council annual general meeting.

Thanks to Government of Alberta funding, and support from the Town of Wainwright and Alberta Health Services, Lakeland’s health care aide program is expanding to Wainwright. The program will be offered in a blended delivery format in the 2022-23 academic year. The Town of Wainwright and Alberta Health Services helped with preparatory work for program approval, including curriculum review and a site visit.

College representatives are active members in numerous community organizations such as Alberta HUB, local chambers of commerce, Heart of Treaty 6 Reconciliation, Vermilion River Regional Alliance, Vermilion River Community Learning Adult Students Society, Northeast Alberta Regional Professional Development Consortia, 4-H, Tribal Chiefs Employment and Training Services Association, and Lloydminster Construction Association.

Lakeland employees are also members of the Vermilion and Rural Mental Health Project, Lakeland Wellness Coalition, Lloydminster Network Committee, Interval Home Advisory, and Inclusion Alberta.

CAPITAL PLAN

At Lakeland College, we know that interactive learning environments lead to deeper connections and more confident leaders. Investing in facilities that feature the dedicated resources for our industry-aligned programs is essential for Lakeland to continue to be a leader in award-winning, work-integrated educational opportunities.

In 2021-22, Lakeland completed the renovation and expansion of the WHT Mead Building at the Vermilion campus. It will be home to more than 600 agricultural sciences students and hundreds of environmental sciences and human services students, and was built to accommodate future growth. It features meeting rooms and flex areas for students to interact with each other and industry, faculty offices, and classrooms designed for flexibility to foster innovation, collaboration and the professional skills our graduates are known for. It’s also the home base for Lakeland’s Student-Managed Farm – Powered by New Holland and our applied research team. Thank you to the Government of Alberta for investing the modernization and expansion of this much-needed facility.

In 2016, Lakeland began work to secure funding to revitalize residences at both campuses. Thanks to a loan from the Government of Alberta, the extensive Residence Redevelopment Project is underway. As outlined in the chart on page 37, much progress has been made on the project.

Type

Proposed New Expansion Maintenance

Top 3 Priority Projects

Type of Project and Funding Sources

Project Description Total Project Cost

Funding Sources

• % GOA

• % GOC

• PSI funds

• % donation

• % foundation

• % industry

Priority 1 Expansion Student-Managed Farm Revitalization $12M 50% GOA 10% Donations 40% Internal

Funding Received to Date and Source Revised Funding Source

$600,000 65% Internal 35% GOA No change

Priority 2 Proposed Residence Redevelopment Project $16M 10% Internal 90% Financing $6M Financing No change

Priority 3 Expansion Vermilion Campus Revitalization – Phase 3-5

• Student Commons

• *Bentley Building

• Alumni Hall

Priority 4 Expansion Vermilion Campus Revitalization – Phase 2

• WHT Mead Building

$28M 50% GOA 10% GOA Capital Maintenance Renewal 40% Internal

$0M *As of fall 2022, Bentley Building is Lakeland's #1 capital priority.

$17.3M 100% GOA $17.3M - Funding was received in 2020 No change

Detailed Review

Project Timelines and Status

Project Description Project Timelines Expected Project Start Expected Project Completion

Student-Managed Farm Revitalization

Residence Redevelopment Project

January 2020June 2023

Project Status Progress Made in Last 12 Months

January 2020 June 2023 In progress

August 2021May 2023 August 2021 May 2023

Vermilion Campus Revitalization –Phase 3-5

• Student Commons

• *Bentley Building

• Alumni Hall

Vermilion Campus Revitalization –Phase 2

• WHT Mead Building

April 2022June 2024 April 2022 June 2024

September 2020 – August 2022

September 2020 June 2022 Completed

A new Dairy Dry Cow Shed was constructed to allow for more efficient single-person operation. The old Dairy Barn was demolished. A manure system upgrade is in progress.

Extensive work on the Residence Redevelopment project was underway at each campus:

• Vermilion Family Housing exteriors

• Vermilion roofing replacement: Euro shield® rubber roofing contains 95 percent recycled rubber. Its main ingredient is recycled tire rubber.

• Lloydminster paving upgrade: roadway and parking lots

• Lloydminster window replacement

• Lloydminster bathroom renovation

• Lloydminster mechanical upgrades

• Lloydminster Spin-wheel flooring upgrades

An RFP for bathroom upgrades is in progress.

Deferred maintenance items like rooftop air handling systems were updated in Alumni Hall. Sections of the roof (7D, 8A-c) were also replaced at Alumni Hall. The Alumni Hall storm drain catch basin replacement project is underway.

*As of fall 2022, Bentley Building is Lakeland's #1 capital priority.

The WHT Mead Building renovation and expansion was completed end of August 2022. The official opening was held in the fall on Sept. 28.

APPLIED RESEARCH

Research with an immediate impact – that’s the hallmark of Lakeland College’s applied research team’s work. In 2021-22, Lakeland’s research team and projects grew and thrived, creating real solutions for challenges producers face in agriculture. Lakeland continued to create paths and processes for stronger productivity, smarter sustainability, and a more profitable future for our region and Alberta.

Between July 1, 2021 and June 30, 2022, Lakeland’s applied research program secured a total of $3,255,397 in grant and industry contracts research revenue, ensuring applied research remains a vital and dynamic part of the college.

Research initiatives at Lakeland support the provincial and regional economy by advancing agriculture practices and technologies, transferring knowledge to agri-businesses, farms and ranches, and by providing Lakeland students with learning opportunities that build important skills.

On Sept. 14, 2021, Lakeland officially opened the Agriculture Technology Centre at the Vermilion campus. Home to Lakeland’s new bachelor of agriculture technology program and ag tech applied research activities, the Agriculture Technology Centre is where students, faculty and researchers collect and analyze production and sustainability data generated across the commercial-scale Student-Managed Farm – Powered by New Holland (SMF). The facility features a technology hub with displays and analytical tools, combined lab and classroom space, and an area for large farm equipment demonstrations and training. Research in the Agriculture Technology Centre focuses on the development, implementation, validation and commercialization of ag technology solutions that will enhance regional productivity and sustainability.

In 2021-22, seven students from the bachelor of agriculture technology program – the first program of its kind in Canada – were hired for eight-month research practicums at Lakeland. Students in the SMF Crop and Livestock Research units also worked alongside researchers and faculty. This integration of research and Lakeland’s commercial farm operation provides students with a learning experience that goes beyond the classroom and into the future of sustainable agriculture and economic development.

At the helm of Lakeland’s research department now is Dr. François Paradis who brings 20 years of experience and passion for agricultural research and innovation. Dr. Haider Abbas also joined the applied research team as a broadleaf research scientist. The power of collaboration in research is undeniable at Lakeland. We work with industry leaders, government officials, and other post-secondary institutions to ensure that our research efforts are at the forefront of discovery.

In 2021-22, Lakeland continued its Pan-Canadian Smart Farm Network partnership with Olds College and the Discovery Farm. The project, Comparisons of In-Field MicroClimate Variability and External Weather Stations, compares data from in-field to out-ofboundary weather stations at the three network sites. Disease development variation within each zone will be evaluated to provide producers with improved accuracy of localized weather data, and to determine if the data received within management zones can help them make informed farm-management decisions. This partnership with other smart farms in different geographical zones gives increased depth to the research and results.

In support of Alberta’s economic recovery, Lakeland and six other Alberta colleges and polytechnics signed a declaration to work together to advance agriculture and food research in Alberta. This declaration enables the seven post-secondary institutions to work together to enhance agriculture and food research through the sharing of data, expertise and research capabilities while supporting

the evolution of policy and advocating for the industry. It also provides a framework to identify joint research opportunities, support consistent and competitive fee structures for agriculture and food-related applied research services, facilitate work-integrated learning opportunities for students, and to collectively share data and results.

Throughout the 2021-22 year, several members of Lakeland’s research team secured grant funds for projects and developed new partnerships.

• Laurel Thompson, crop research scientist, received funding for a multi-year barley project through the Ag Funding Consortium.

• Dr. Obioha Durunna, livestock research scientist, received approval for a Natural Sciences and Engineering Research Council of Canada Engage grant.

• Dr. Durunna was also awarded the A&W Fellowship from the University of Saskatchewan.

• Dr. Susan Markus, a livestock research scientist, secured funding from the Canadian Agri-Food Automation and Intelligence Network for a precision ranching project.

• Robyne Bowness-Davidson, a crop research scientist, received funding from the Alberta Pulse Grower Commission to investigate lupin production as a new high protein pulse crop for Alberta.

Two research projects also received funding from the Government of Alberta through Alberta Innovates. The funds are part of the Smart Agriculture and Food Digitization and Automation Challenge. Dr. Markus’ project investigating the use of handheld devices for automatic blood analysis to monitor sheep pregnancy and predict litter size was awarded $145,000. Dr. Yuri Montanholi’s project optimizing non-contact sensing technologies to enhance the sustainability of bison farming was awarded $345,081.

A grant from the Government of Canada – the Applied Research and Technology Partnership grant – provided $320,900 to Lakeland’s research project examining the effectiveness of a calf supplement in improving neonatal health, immunity and hopefully reducing the need for antibiotics later in life. The project is being led by Dr. Brenda Ralston.

Funding of $821,236 from the Canada Foundation for Innovation was matched by the Government of Alberta’s Research Capacity Program in support of developing the Agriculture Technology Centre, the central repository for all data collected on the SMF.

Farm Credit Canada gifted Lakeland $10,000 to purchase a MobiLab unit and supplies from METOS Canada for the SMF. Designed to measure nutrients in the soil and plants, this integrated technology was used by Lakeland’s bachelor of agriculture technology students and research team to analyze samples and interpret results, allowing them to make informed decisions and create a positive return on investment for the application of nutrients. In addition, students evaluated the total costs and return of using MobiLab compared to conventional nutrient analysis methods.

By staying at the forefront of research in the agricultural industry, Lakeland continues to play a key role in supporting Alberta’s economic growth, creating jobs, programs, and partnerships that drive our region forward.

Statistics are for applied research conducted between July 1, 2021 and June 30, 2022.

FINANCIAL STATEMENT DISCUSSION AND ANALYSIS

This financial statement discussion and analysis (FSD&A) provides supplemental information that should be read in conjunction with Lakeland’s financial statements for the year ended June 30, 2022. The FSD&A and audited financial statements are reviewed and approved by Lakeland’s Board of Governors on the recommendation of the Audit, Risk and Sustainability Committee. Lakeland’s financial statements have been prepared in accordance with Canadian Public Sector Accounting Standards (“PSAS”).

Statement of Operations

(thousands of dollars)

Budget Actual Actual-2021 Variance from Prior Year Actual

Total revenue 67,793 68,667 63,429 5,238 Total expense 65,025 62,684 58,594 4,090

Annual operating surplus 2,768 5,983 4,835 1,148

Endowment contributions and capitalized investment income 300 39 1,111 (1,072)

Annual surplus 3,068 6,022 5,946 76

Lakeland generated an annual surplus of $6 million. This is a slight variance from the $5.9 million surplus reported for the prior year. Although the net variance was insignificant, revenues increased by $5.2 million, expenses increased by $4.1 million, and endowment related income decreased by $1 million. The increase in revenue can be primarily attributed to a reduction in COVID-19 restrictions, a return to more in-person attendance and a corresponding increase in sales and services revenues. There was a modest decrease in enrolment, but there was a seven per cent increase in tuition fees. The increase in expenses can also be attributed to a reduction in COVID-19 restrictions and a modest increase in discretionary expenses such as travel and professional development.

Through focused attention on the effects of the response to COVID-19 during the 2020-21 fiscal year, Lakeland was able to offset major revenue reductions with expense reductions. Therefore the net effects of COVID-19 on the college’s financial operations for 2020-21 and 2021-22 were quite modest. These revenue and expense reductions were less severe for the 2021-22 fiscal year. Although there were large variations in revenues and expenses, there was a $1.2 million positive variance between the budgeted and actual annual operating surplus (if the $2 million revenue contingencies in the 2021-22 budget are factored out).

On a cautionary note, Lakeland and most other post-secondary institutions have been able to manage their budgets effectively through the pandemic and managed significant reductions in operating grants mainly because salary increases have been effectively frozen for the last few years. Had cost of living increases occurred, these positive variances would have been unlikely. A more detailed analysis of variances follows.

Revenue

(thousands of dollars)

Budget Actual Per cent of Total Variance from Budget Actual-2021 Variance from Prior Year Actual

Government of Alberta grants 37,632 38,415 55.94% 783 36,851 1,564

Federal and other government grants 1,998 2,311 3.37% 313 1,818 493

Student tuition and fees 15,864 14,972 21.80% (892) 14,147 825 Sales of services and products 9,861 8,898 12.96% (963) 7,372 1,526

Donations and other grants 1,438 2,072 3.02% 634 2,046 26 Investment income 1,000 1,999 2.91% 999 1,195 804

Total revenue 67,793 68,667 100% 874 63,429 5,238

Actual revenues of $68.7 million were $900,000 higher than budget. The primary reasons for this were:

• The Ministry of Agriculture and Forestry transferred a major research program to Lakeland resulting in a positive variance of $783,000 in grant revenue from the Government of Alberta.

• Efforts to increase research funded activities continue to be successful, and as a result federal research grant income was $313,000 higher than budget.

• The $892,000 negative variance in student tuition and fees was due to a COVID-19 related reduction in enrolments and the related student tuition and fees of about $1.7 million. This was partially offset by the budgeted contingency of $1 million. There was a significant reduction in international students, and some enrolment losses in energy programs related to the Alberta economy.

• The $963,000 negative variance in sales of services and products was due to a reduction in residence revenues of almost $1 million, that was partially offset by a $500,000 contingency. Other variances were due to COVID-19 restrictions and reductions in in-person revenues and cancellation of events. Sales of livestock revenue were also lower than budget due to market price reductions to bison.

• Donations and other grants were $634,000 higher than budget mainly due to a bequest.

• Investment income was higher than budget due to an unexpected dividend payout of $625,000 in November 2021, plus a large operating bank account balance earned significantly more interest than budget. Lakeland’s operating bank account earns more than the short-term investment vehicles such as T-Bills.

Actual revenues were $5.2 million or 8.25 per cent higher than the prior year. The primary reasons for this were:

• Grants from the Government of Alberta increased by $1.6 million. The Ministry of Agriculture and Forestry grant transfer of $600,000 per year, plus new micro-credential grants are the primary reasons for this variance.

• Federal research grants continue to increase due to added focus in this area.

• Student tuition and other fees increased by $825,000 primarily due to the 7 per cent increase in tuition fees ($1.1 million) offset by COVID-19 related reductions to enrolment (although COVID-19 effects on enrolment were relatively consistent with the prior year).

• Sales of services and products revenues increased by $1.5 million primarily due to more classes in-person in January 2022 and related ancillary revenues.

• The increase of $804,000 in investment income was due to an unexpected dividend payout of $625,000 in November 2021, plus a large operating bank account balance earned significantly more interest than budget.

Government of Alberta grants

Government of Alberta grants are the primary revenue source for Lakeland (55.9 per cent in 2022, 58.1 per cent in 2021). Note 17 to the financial statements provides a breakdown of the types of grants received from the various departments and agencies of the Alberta Government. The primary difference in this note is related to the Mead Building grant of $17.3 million received in July 2020. This grant is not reflected in revenue until the related amortization expense is incurred. The grant from Alberta Agriculture and Forestry of $2.5 million is to be earned over three years. This note also shows the significant increase in federal research grants received.

Student tuition and fees

The second largest source of revenue for Lakeland is student tuition and fees (21.8 per cent in 2022, and 22.3 per cent in 2021). As per Government of Alberta directive, tuition fee increases were limited to a maximum of 7 per cent in total per year, for the current and prior two years. Increases in the future will be limited to the Alberta consumer price index.

The primary operational driver for Lakeland is student enrolment. Until the impact of the response to COVID-19, Lakeland was experiencing moderate enrolment increases. Primarily due to COVID-19, full load equivalents (FLEs) decreased from 2,146 in 201819 to 2,032 in 2019-20, and to 1,901 in 2021, with a modest recovery to 1,970 in 2021-22.

Sales of services and products

The next largest source of revenue for Lakeland is from sales of services and products at 13 per cent (11.6 per cent in 2021).

ANALYSIS

Ancillary revenues from the bookstore, residence, food services, campus farm, events, athletics and recreation are included here. This revenue source is highly dependent on student enrolments. The variance from budget was $963,000, mainly due to losses in residence income, a reduction in in-person sales, and cancellation of events all due to the response to COVID-19.

Donations and other grants

Actual donations can fluctuate quite significantly from year to year, but restricted donations are not recognized as revenue until they are spent on the purposes intended by the donor. In 2021-22 a bequest of over $500,000 was received. This was earned to income but $385,000 was permanently restricted to endowments by the Board of Governors.

Investment income

As at June 30, 2022 Lakeland held $43.4 million in investments and $29.6 million in cash. The average interest rate for its cash held was about .7 per cent (the interest is based on prime less 2.1 per cent so this rate has increased significantly since year end). The market value of investments held by CIBC at year end was $31 million. The market value decrease related to the CIBC investments, as reflected in the statement of remeasurement gains and losses, was $4 million. The accumulated remeasurement losses were $1.4 million at year end. These losses will not affect income unless an analysis determines whether such losses are permanent in nature. Lakeland’s scholarship and endowment fund is managed by TD Wealth. The market value of this fund at year end was $12.3 million, of which $9.9 million is permanently endowed, and $2.4 million is available for spending on the intended purpose. The market value decrease for the year was $1.2 million and the accumulated unrealized market gains are $1.1 million. Investment income related to the scholarship and endowment fund is externally restricted (deferred) and is only recognized as investment income in the statement of operations when the related expenditure is incurred. Total investment income for all cash and investments, as recognized on the statement of operations, was $2 million. This is primarily comprised of dividend and interest income, and the matching revenue earned against endowment expenses.

Expense

(thousands of dollars)

Expense by object

Budget Actual Per cent of Total Variance from Budget Actual-2021 Variance from Prior Year Actual

Salaries and benefits 38,641 37,046 59.10% (1,595) 36,448 598 Materials, supplies and services 13,339 12,681 20.23% (658) 9,969 2,712 Amortization of capital assets 6,971 6,581 10.50% (390) 6,479 102 Repairs and maintenance 2,134 1,809 2.89% (325) 1,840 (31) Utilities 2,460 2,717 4.33% 257 2,154 563

Scholarships and bursaries 696 1,214 1.94% 518 1,165 49 Cost of goods sold 784 636 1.01% (148) 539 97

Total expense 65,025 62,684 100% (2,341) 58,594 4,090

Expense by function

Instruction and training

Budget Actual Per cent of Total Variance from Budget Actual-2021 Variance from Prior Year Actual

24,813 23,513 37.51% (1,300) 22,857 656

Academic support 5,352 5,046 8.05% (306) 5,014 32 Student Services 7,252 7,339 11.71% 87 6,667 672

Facilities operation and maintenance 11,703 11,001 17.55% (702) 10,796 205

Institutional support 5,933 5,361 8.55% (572) 4,876 485

Computing and communication 3,625 3,346 5.34% (279) 3,122 224 Ancillary services 4,611 4,358 6.95% (253) 3,838 520

Sponsored research 1,326 2,062 3.29% 736 854 1,208 Special purpose 410 658 1.05% 248 570 88

Total expense 65,025 62,684 100% (2,341) 58,594 4,090

Lakeland’s expenses totaled $62.7 million in 2022, which represented a significant increase of $4.1 million from the prior year, and a positive variance of $2.3 million from the budget. The year-to-year variance was primarily due to an increase in in-person classes plus an easing of restrictions on discretionary expenses such as travel and professional development. Expenses are presented by function in the Statement of Operations and by object in note 15. The functional breakdown of expenses shows which activities Lakeland is spending its money on. The largest functional expense category is instruction and training.

Salaries and benefits

At 59.1 per cent of total, salaries and benefits is the largest expense for Lakeland. Most of the $598,000 variance from the prior year is related to increased activity in applied research. Most of the variance from budget was due to savings in temporary, sessional and casual staff due to lower enrolments, plus a one per cent decrease in pension rates.

Materials, supplies and services

At 20.2 per cent this is the second largest expense for Lakeland. These expenses were $658,000 lower than the budget, and $2.7 million higher than last year’s actual. Actual expenses were higher than last year but still under budget mainly due to savings in discretionary expenses (travel, professional development) necessary to offset revenue losses due to COVID-19 restrictions. Compared to budget, travel expenses were down by $527,000 and professional development was down by $285,000. On the other hand, actual travel expenses were $440,000 higher and professional development expenses were $250,000 higher than the prior year. Farm related expenses were $700,000 higher than the prior year due to the 2021 drought, inflation and a significant market value price reduction in bison.

Financial position

Lakeland incurred an annual surplus of $6 million resulting in an increase to the accumulated surplus from $78 million to $84 million. Accumulated re-measurement gains decreased by $4.5 million due to market value losses in investments. As per Public Sector Accounting Standards, market value gains or losses cannot be recognized in the statement of operations until they are realized via sale of the related investment or when permanent impairment occurs. After consideration of all the changes to accumulated net assets from operations (aka ‘available surplus’), as detailed in Note 11 to the financial statements, available surplus decreased from $7.1 million to $6.3 million. After the $3 million appropriation to internally restricted net assets (Strategic Investment Fund), the available surplus stands at $3.3 million. Except for 2019-20, Lakeland has generated modest surpluses over the last few years, and as a result, its financial position appears to be relatively healthy. Of the $82.6 million in net assets (see note 11), however, $52.9 million is not available for spending as $9.9 million relates to permanently restricted endowments and $43 million to investments in capital assets. Furthermore, approximately

DISCUSSION AND ANALYSIS

$16.4 million of Lakeland’s Strategic Investment Fund (internally restricted net assets) is committed to projects in progress (campus revitalization) and over $2.3 million of Lakeland’s operating surplus is committed to future capital expenditures (IT infrastructure, software development, research, etc.). This means that only approximately $11 million is available to fund high priority strategic initiatives. This is not enough for the significant investment that is needed to deal with Lakeland’s aging infrastructure, to revitalize its Vermilion campus, and to modernize labs and classrooms.

Although the Government of Alberta has cut Lakeland’s operating grant, it did provide a capital grant of $17.3 million in 2020-21 for the renovation of the WHT Mead Building. Construction will be completed in August 2022. The province also provided $2.1 million for capital renewal (formerly infrastructure maintenance), and a more than $2 million grant for its Lloydminster campus heating plant.

Due to anticipated enrolment growth (post COVID-19), prudent financial planning and careful management of cost increases, Lakeland still intends to generate modest surpluses, that if supplemented by capital grants from the Government of Alberta, and possibly donations from third parties, will be sufficient to offset its infrastructure deficit. Most of Lakeland’s annual surplus in the past ($3 million in 2022, $8 million in 2021, $5 million in 2019, and $9 million in 2018) was allocated to Lakeland’s Strategic Investment Fund (internally restricted net assets) in order to fund campus revitalization and modernization of labs and classrooms. Looming on the horizon, however, are significant anticipated increase to expenses, including salaries, due to inflation.

Net financial assets

Included in Lakeland’s net financial assets is $12.3 million that is related to investments restricted for endowments. $9.9 million of this relates to permanently restricted endowments and cannot be spent. These funds generate investment income that can be spent on operations, but only as intended by the donor. A more important indicator of solvency is Lakeland’s net financial assets excluding portfolio investments restricted for endowments. This was $23.6 million as of June 30, 2022 and at June 30, 2021.

Other significant variances on the statement of financial position:

• Cash increased by $9.6 million – primarily due to the annual surplus of $6 million, but also due to the liquidation of temporary securities for the WHT Mead Building grant (offset by WHT Mead Building expenditures).

• Portfolio investments (non-endowment) declined due to market value declines of $4 million and the liquidation of investments related to the WHT Mead Building ($17 million), offset by a transfer from the operating bank account of $10 million in the fall of 2021.

• Accounts receivable include $2.1 million related to the CMR grant that was received in early July.

• Accounts payable increased primarily due to the progress claims for the WHT Mead Building construction and residence renovations.

• Debt increased due to the receipt of $6 million of the $13.9 million loan approved for residence renovations.

• Deferred revenue decreased primarily due to WHT Mead Building expenditures.

• Tangible capital assets and spent deferred capital contributions increased primarily due to the WHT Mead Building construction.

Areas of significant financial risk

Deferred maintenance, campus revitalization, modernization of classrooms and labs

Lakeland has a significant deferred maintenance deficiency. Its buildings (inside and out), roads, and water and sewer lines are old and need significant investment to extend and/or maintain their useful life. Some of this deficiency can be funded by the Government of Alberta Infrastructure Maintenance Grant ($3.1 million in 2021-22). However, this grant fluctuates quite significantly (for instance it was not provided in the Government of Alberta’s 2019-20 fiscal year). The grant was reinstated in April 2020, but there is uncertainty as to how much it will be in future years. In the absence of adequate funding from the Government of Alberta, and operating surplus reductions due to grant cuts, Lakeland has limited options to deal with this critically important issue.

Grants from the province and tuition fees

The largest source of revenue for Lakeland is grants from the Government of Alberta. The second largest source is tuition. These two sources combined represent 77.7 per cent of Lakeland’s total revenue. Lakeland is exposed to significant financial risk if fiscal restraint results in further cuts to grants and restrictions on tuition fee increases. Operating grants will be tied to performance indicators that will be defined in future investment management agreements with the province. If Lakeland does not meet established benchmarks, operating grant funding could be reduced.

Statement Of Management Responsibility

Year ended June 30, 2022

The financial statements of Lakeland College (the College) have been prepared by management in accordance with Canadian public sector accounting standards as described in note 2 to the financial statements. The financial statements present fairly the financial position of the College as at June 30, 2022 and the results of its operations, changes in net financial assets, remeasurement gains and losses, and cash flows for the year then ended.

In fulfilling its responsibilities and recognizing the limits inherent in all systems, management has developed and maintains a system of internal control designed to provide reasonable assurance that the College assets are safeguarded from loss and that the accounting records are a reliable basis for the preparation of the financial statements.

The Board of Governors is responsible for reviewing and approving the financial statements and overseeing management's performance of its financial reporting responsibilities.

The Board of Governors carries out its responsibility for review of the financial statements principally through its Audit, Risk and Sustainability Committee, With the exceptions of the President and Staff Association Representative all members of the Audit, Risk and Sustainability Committee are not employees of the College. The Audit, Risk and Sustainability Committee meets with management and the external auditors to discuss the results of audit examinations and financial reporting matters. The external auditors have full access to the Audit, Risk and Sustainability Committee, with and without the presence of management.

These financial statements have been reported on by the Auditor General of Alberta, the auditor appointed under the Post-Secondary Learning Act. The Independent Auditor's Report outlines the scope of the audit and provides the audit opinion on the fairness of presentation of the information in the financial statements.

FINANCIAL STATEMENTS

Independent Auditor’s Report

To the Board of Governors of Lakeland College

Report on the Financial Statements Opinion

I have audited the financial statements of Lakeland College (the College), which comprise the statement of financial position as at June 30, 2022, and the statements of operations, remeasurement gains and losses, change in net financial assets, and cash flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies.

In my opinion, the accompanying financial statements present fairly, in all material respects, the financial position of the College as at June 30, 2022, and the results of its operations, its remeasurement gains and losses, its changes in net financial assets, and its cash flows for the year then ended in accordance with Canadian public sector accounting standards.

Basis for opinion

I conducted my audit in accordance with Canadian generally accepted auditing standards. My responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of my report. I am independent of the College in accordance with the ethical requirements that are relevant to my audit of the financial statements in Canada, and I have fulfilled my other ethical responsibilities in accordance with these requirements. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my opinion.

Other information

Management is responsible for the other information. The other information comprises the information included in the Annual Report, but does not include the financial statements and my auditor’s report thereon. The Annual Report is expected to be made available to me after the date of this auditor’s report.

My opinion on the financial statements does not cover the other information and I do not express any form of assurance conclusion thereon.

In connection with my audit of the financial statements, my responsibility is to read the other information identified above and, in doing so, consider whether the other information is materially inconsistent with the financial statements or my knowledge obtained in the audit, or otherwise appears to be materially misstated.

If, based on the work I will perform on this other information, I conclude that there is a material misstatement of this other information, I am required to communicate the matter to those charged with governance

Responsibilities of management and those charged with governance for the financial statements

Management is responsible for the preparation and fair presentation of the financial statements in accordance with Canadian public sector accounting standards, and for such internal control as management determines is necessary to enable the preparation of the financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is responsible for assessing the College’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless an intention exists to liquidate or to cease operations, or there is no realistic alternative but to do so.

Those charged with governance are responsible for overseeing the College’s financial reporting process.

Auditor's responsibilities for the audit of the financial statements

My objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes my opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Canadian generally accepted auditing standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with Canadian generally accepted auditing standards, I exercise professional judgment and maintain professional skepticism throughout the audit. I also:

• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for my opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

• Obtain an understanding of internal control relevant to the audit 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 College's internal control.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

• Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the College’s ability to continue as a going concern. If I conclude that a material uncertainty exists, I am required to draw attention in my auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify my opinion. My conclusions are based on the audit evidence obtained up to the date of my auditor’s report. However, future events or conditions may cause the College to cease to continue as a going concern.

• Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

FINANCIAL STATEMENTS

I communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that I identify during my audit.

[Original signed by W. Doug Wylie FCPA, FCMA, ICD.D]

W. Doug Wylie FCPA, FCMA, ICD.D Auditor General

October 12, 2022 Edmonton, Alberta

Statement of Financial Position

As at June 30, 2022 (thousands of dollars)

Financial assets excluding portfolio investments restricted for endowments

2022 2021

Cash $ 29,583 $ 19,922

Portfolio investments – non-endowment (note 3) 31,070 41,022

Accounts receivable 4,012 1,375 Inventories held for sale 707 758 65,372 63,077

Liabilities

Accounts payable and accrued liabilities 11,662 7,141

Debt (note 6) 6,600 720 Deferred revenue (note 7) 23,370 31,618 Environmental liabilities (note 10) 189 29 41,821 39,508

Net financial assets excluding portfolio investments restricted for endowments 23,551 23,569 Portfolio investments – restricted for endowments (note 3) 12,316 12,570 Net financial assets 35,867 36,139

Non-financial assets

Tangible capital assets (note 8) 116,554 104,267 Inventories of supplies 1,837 2,105 Prepaid expenses 2,011 1,787 120,402 108,159

Net assets before spent deferred capital contributions 156,269 144,298 Spent deferred capital contributions (note 9) 73,637 63,227 Net assets (note 11) $ 82,632 $ 81,071

Net assets is comprised of:

Accumulated surplus $ 84,028 $ 78,006 Accumulated remeasurement gains (losses) (1,396) 3,065 $ 82,632 $ 81,071

Contractual rights (note 13)

Contingent liabilities and contractual obligations (notes 12 and 14)

Approved by the Board of Governors

[Original signed by Chair, Board of Governors] [Original signed by Vice Chair, Board of Governors]

The accompanying notes are an integral part of these financial statements

Statement of Operations

Year ended June 30, 2022 (thousands of dollars)

Revenues

Government of Alberta grants (note 17)

Budget 2022 2021 (note 19)

$ 37,632 $ 38,415 $ 36,851

Federal and other government grants (note 17) 1,998 2,311 1,818 Student tuition and fees 15,864 14,972 14,147 Sales of services and products 9,861 8,898 7,372 Donations and other grants 1,438 2,072 2,046 Investment income 1,000 1,999 1,195 67,793 68,667 63,429

Expenses (note 15)

Instruction and training 24,813 23,513 22,857 Academic support 5,352 5,046 5,014 Student services 7,252 7,339 6,667 Facilities operation and maintenance 11,703 11,001 10,796 Institutional support 5,933 5,361 4,876

Computing and communication 3,625 3,346 3,122 Ancillary services 4,611 4.358 3,838 Sponsored research 1,326 2,062 854 Special purpose 410 658 570 65,025 62,684 58,594

Annual operating surplus 2,768 5,983 4,835

Endowment contributions and capitalized investment income

Endowment contributions (note 11) 300 39 137 Endowment capitalized investment income (note 11) - - 974 300 39 1,111

Annual surplus 3,068 6,022 5,946

Accumulated surplus, beginning of year 78,006 78,006 72,060

Accumulated surplus, end of year (note 11) $ 81,074 $ 84,028 $ 78,006

The accompanying notes are an integral part of these financial statements

Statement of Change in Net Financial Assets

Year ended June 30, 2022

(thousands of dollars)

Budget 2022 2021 (note 19)

Annual surplus $ 3,068 $ 6,022 $ 5,946

Acquisition of tangible capital assets (28,600) (18,880) (5,310)

Transfers from tangible capital assets to inventories held for sale - - 447 Proceeds on sale of tangible capital assets - 61 36

Amortization of tangible capital assets 6,971 6,580 6,479

Gain on disposal of tangible capital assets - (48) (33)

Decrease (increase) in inventories of supplies - 268 (658) (Increase) decrease in prepaid expenses - (224) 229

Increase (decrease) in spent deferred capital contributions 15,300 10,410 (310) (Decrease) increase in accumulated remeasurement gains (losses) (4,461) 2,199

(Decrease) increase in net financial assets (272) 9,025

Net financial assets, beginning of year 36,139 27,114

Net financial assets, end of year $ 35,867 $ 36,139

Statement of Remeasurement Gains and Losses

Year ended June 30, 2022 (thousands of dollars)

2022 2021

Accumulated remeasurement gains, beginning of year $ 3,065 $ 866

Unrealized (losses) gains attributable to: Quoted in active market financial instruments: Portfolio investments - non-endowment (3,999) 2,303

Amounts reclassified to statement of operations: Quoted in active market financial instruments: Portfolio investments - non-endowment (462) (104)

(Decrease) increase in accumulated remeasurement gains (4,461) 2,199

Accumulated remeasurement (losses) gains, end of year $ (1,396) $ 3,065

The accompanying notes are an integral part of these financial statements

Statement of Cash Flows

Year ended June 30, 2022 (thousands of dollars) 2022 2021

Operating transactions

Annual surplus $ 6,022 $ 5,946

Add (deduct) non-cash items:

Amortization of tangible capital assets 6,580 6,479

Gain on sale of portfolio investments (1,204) (420)

Gain on disposal of tangible capital assets (48) (33)

Expended capital contributions recognized as revenue (3,926) (3,686)

Increase in accounts receivable (2,637) (831)

Decrease (increase) in inventories held for sale 51 (400)

Increase (decrease) in accounts payable and accrued liabilities 4,521 (678) (Decrease) increase in deferred revenue (7,013) 19,191

Increase (decrease) in environmental liabilities 160 (23)

Decrease (increase) in inventories of supplies 268 (658) (Increase) decrease in prepaid expenses (224) 229

Cash provided by operating transactions 2,550 25,116

Capital transactions

Acquisition of tangible capital assets, less in-kind donations (18,880) (5,293)

Transfer to inventories held for sale - 447

Proceeds on sale of tangible capital assets 61 36

Cash applied to capital transactions (18,819) (4,810)

Investing transactions

Purchase of portfolio investments (22,151) (21,301)

Proceeds on sale of portfolio investments 27,865 13,585 Cash provided to (applied to) investing transactions 5,714 (7,716)

Financing transactions

Debt – repayment (120) (120)

Increase in debt 6,000 -

Increase in spent deferred capital contributions, less expended capital contributions recognized as revenue 14,336 3,359

Cash provided by financing transactions 20,216 3,239

Increase in cash 9,661 15,829

Cash, beginning of year 19,922 4,093

Cash, end of year $ 29,583 $ 19,922

The accompanying notes are an integral part of these financial statements

Notes to the Financial Statements

Year ended June 30, 2022 (thousands of dollars)

1. Authority and purpose

The Board of Governors of Lakeland College is a corporation which manages and operates Lakeland College ("the College") under the Post-Secondary Learning Act (Alberta). All members of the Board of Governors are appointed by either the Lieutenant Governor in Council or the Minister of Advanced Education, with the exception of the President, who is an ex officio member. Under the Post-Secondary Learning Act the College is a comprehensive community institution offering mandated credentials and programs. The College is a registered charity, and under section 149 of the Income Tax Act (Canada), is exempt from the payment of income tax.

2. Summary of significant accounting policies and reporting practices

{a} General - Canadian Public Sector Accounting Standards and Use of Estimates

These financial statements have been prepared in accordance with Canadian public sector accounting standards (PSAS). The measurement of certain assets, liabilities, revenues and expenses is contingent upon future events; therefore, the preparation of these financial statements requires the use of estimates, which may vary from actual results. The College's management uses judgment to determine such estimates. Amortization of tangible capital assets and the revenue recognition for expended capital contributions are the most significant items based on estimates. In management's opinion, the resulting estimates are within reasonable limits of materiality and are in accordance with the significant accounting policies summarized below. These significant accounting policies are presented to assist the reader in evaluating these financial statements and, together with the following notes, should be considered an integral part of the financial statements.

{b} Valuation of Financial Assets and Liabilities

The College's financial assets and liabilities are generally measured as follows:

Financial Statement Component Measurement

Cash Cost

Portfolio investments Fair value

Inventories held for resale

Accounts receivable

Lower of cost or net realizable value

Lower of cost or net recoverable value

Accounts payable and accrued liabilities Cost

Debt Amortized cost

Unrealized gains and losses from changes in the fair value of financial assets and liabilities are recognized in the statement of remeasurement gains and losses. When the restricted nature of a financial instrument and any related changes in fair value create a liability, unrealized gains and losses are recognized as deferred revenue.

All financial assets are tested annually for impairment. When financial assets are impaired, impairment losses are recorded in the statement of operations. A write-down of a portfolio investment to reflect a loss in value that is other than temporary is not reversed for a subsequent increase in value.

For financial assets and liabilities measured using amortized cost, excluding debt, the effective interest rate method is used to determine interest revenue or expense. Transaction costs are a component of cost for financial instruments measured using cost or amortized cost. Transaction costs are expensed for financial instruments measured at fair value. Investment management fees are expensed as incurred. The purchase and sale of cash and cash equivalents and portfolio investments are accounted for using trade-date accounting.

The College does not use foreign currency contracts or any other type of derivative financial instruments for trading or speculative purposes.

FINANCIAL STATEMENTS

2. Summary of significant accounting policies and reporting practices (continued)

Management evaluates contractual obligations for the existence of embedded derivatives and has determined that no embedded derivatives are present for the year ending June 30, 2022. When derivatives are identified, management elects to either designate the entire contract for fair value measurement or separately measure the value of the derivative component when characteristics of the derivative are not closely related to the economic characteristics and risks of the contract itself. Contracts to buy or sell non-financial items for the College’s normal purchase, sale or usage requirements are not recognized as financial assets or financial liabilities.

{c} Revenue Recognition

All revenues are reported on the accrual basis of accounting. Cash received for which goods or services have not been provided by year end is recorded as deferred revenue.

Government grants, non-government grants and donations

Government transfers are referred to as government grants.

Restricted grants and donations are recognized as deferred revenue if the terms for the use, or the terms along with the College’s actions and communications as to the use, create a liability. These grants and donations are recognized as revenue as the terms are met. If the grants and donations are used to acquire or construct tangible capital assets, revenue will be recognized over the useful life of the tangible capital assets.

Government grants without terms for the use of the grant are recorded as revenue when the College is eligible to receive the funds. Unrestricted non-government grants and donations are recorded as revenue in the year received or in the year the funds are committed to the College if the amount can be reasonably estimated and collection is reasonably assured.

In-kind donations of services, materials and tangible capital assets are recorded at fair value when such value can reasonably be determined. Transfers of tangible capital assets from related parties are recorded at the carrying value.

Grants and donations related to land

Grants and donations for the purchase of land are recognized as deferred revenue when received, and recognized as revenue when the land is purchased.

The College recognizes in-kind contributions of land as revenue at the fair value of the land when a fair value can be reasonably determined. When the College cannot determine the fair value, it records such in-kind contributions at nominal value.

Endowment contributions

Endowment contributions are recognized as revenue in the statement of operations in the year in which they are received, and are required by donors to be maintained intact in perpetuity.

Investment income

Investment income includes dividends, interest income and realized gains or losses on the sale of portfolio investments. Investment income from restricted grants and donations is recognized as deferred revenue when the terms for use create a liability, and is recognized as investment income when the terms of the grant or donation are met.

Realized and unrealized investment gains on portfolio investments restricted for endowments (which includes endowment principal and previously accumulated expendable investment gains) are recognized as deferred revenue when the terms for use by the endowment create a liability. Realized investment income allocated to endowment balances for the preservation of endowment capital purchasing power is recognized in the statement of operations as a component of endowment capitalized investment income.

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 (excluding unrealized income) must be used in accordance with the various purposes established by the donors or the Board of Governors. Benefactors as well as College policy stipulate that the

2. Summary of significant accounting policies and reporting practices (continued)

economic value of the endowments must be protected by limiting the amount of income that may be expended and reinvesting unexpended income.

Under the Post-Secondary Learning Act, the College has the authority to alter the terms and conditions of endowments to enable:

• income earned by the endowment to be withheld from distribution to avoid fluctuations in the amounts distributed and generally to regulate the distribution of income earned by the endowment.

• encroachment on the capital of the endowment to avoid fluctuations in the amounts distributed and generally to regulate the distribution of income earned by the endowment if, in the opinion of the Board of Governors, the encroachment benefits the College and does not impair the long-term value of the fund.

In any year, if the investment income earned on endowments, including unspent investment income from prior years, is insufficient to fund the spending allocation, the spending allocation is funded from the accumulated capitalized investment income.

Endowment contributions, matching contributions, and associated investment income allocated for the preservation of endowment capital purchasing power are recognized in the Statement of Operations in the period in which they are received.

{d} Inventories

Inventories held for sale are valued at the lower of cost or expected net realizable value and are determined using the firstin, first-out method. Inventories of supplies are valued at cost.

{e} Tangible Capital Assets

Tangible capital assets are recorded at cost, which includes amounts that are directly related to the acquisition, design, construction, development, improvement or betterment of the assets, and costs associated with asset retirement obligations. Cost includes overhead directly attributable to construction and development, and interest costs that are directly attributable to the acquisition or construction of the asset. Work in progress, which includes facilities and improvement projects and development of information systems, is not amortized until after the project is complete and the asset is in service.

Leases of tangible capital assets which transfer substantially all the benefits and risks of ownership are accounted for as leased tangible capital assets. Capital lease obligations are recorded at the present value of the future minimum lease payments at the inception of the lease, excluding executor costs (e.g. insurance, maintenance costs, etc.). The discount rate used to determine the present value of the lease payments is the lower of the College's rate for incremental borrowing or the interest rate implicit in the lease.

The cost, less residual value, of the tangible capital assets, excluding land, is amortized on a straight-line basis over the estimated useful lives as follows:

Building and site improvements

10-40 years

Furniture and equipment 5-40 years

Computer hardware and software 5-10 years

Tangible capital assets are written down when conditions indicate that they no longer contribute to the College’s ability to provide goods and services, or when the value of future economic benefits associated with the tangible capital assets are less than their net book value. The net write-downs are recognized as expenses in the statement of operations.

Intangible assets, works of art, historical treasures and collections are expensed when acquired and not recognized as tangible capital assets because a reasonable estimate of the future benefits associated with such property cannot be made.

{f} Foreign Currency Translation

Transaction amounts denominated in foreign currencies are translated into their Canadian dollar equivalents at exchange rates prevailing at the transaction dates. Carrying values of monetary assets and liabilities and non-monetary items included

FINANCIAL STATEMENTS

2. Summary of significant accounting policies and reporting practices (continued)

in the fair value category reflect the exchange rates at the statement of financial position date. Unrealized foreign exchange gains and losses are recognized in the statement of remeasurement gains and losses.

In the period of settlement, foreign exchange gains and losses are reclassified to the statement of operations, and the cumulative amount of remeasurement gains and losses is reversed in the statement of remeasurement gains and losses.

{g} Employee Future Benefits

Pension

The College participates with other employers in the Local Authorities Pension Plan (LAPP). This pension plan is a multi-employer defined benefit pension plan that provides pensions for the College's participating employees based on years of service and earnings.

The College does not have sufficient plan information on the LAPP to follow the standards for defined benefit accounting, and therefore follows the standards for defined contribution accounting. Accordingly, pension expense recorded for the LAPP is comprised of employer contributions to the plan that are required for its employees during the year; which are calculated based on actuarially pre-determined amounts that are expected to provide the plan’s future benefits.

Other employee future benefits

The College provides other employment benefits to eligible employees; namely, self-insured short-term disability and other post-employment benefits. These benefits are recorded as a liability and expense when the event obligating the College occurs, and value is determined by actual costs incurred.

The College provides long-term liability insurance through a 3rd party insurance provider and the premiums are recorded as an expense in the period that premiums are paid.

{h} Liability for contaminated sites

Contaminated sites are a result of contamination of a chemical, organic or radioactive material or live organism that exceeds an environmental standard, being introduced into soil, water or sediment. It does not include airborne contaminants. The College recognizes a liability for remediation of contaminated sites when the following criteria have been met:

• an environmental standard exists:

• there is evidence that contamination exceeds an environmental standard:

• the College is directly responsible or accepts responsibility for the contamination:

• it is expected that future economic benefits will be given up: and

• a reasonable estimate of the amount can be made.

A liability for a contaminated site may arise from operations that are either considered in productive use or no longer in productive use when environmental standards are exceeded. It will also arise when an unexpected event occurs resulting in contamination that exceeds an environmental standard.

In these situations the College reviews the information to determine if a contaminated site liability exists or if an environmental liability exists and if it does if will record the liability. In cases where the College's responsibility is not determinable or a reasonable estimate cannot be made, a contingent liability may be disclosed.

Where an environmental standard does not exist or contamination does not exceed an environmental standard, a liability for remediation of a site is recognized by the College when the following criteria have been met:

• the College has a duty or responsibility to others, leaving little or no discretion to avoid the obligation;

• the duty or responsibility to others entails settlement by future transfer or use of assets, or a provision of services at a specified or determinable date, or on demand; and

• the transaction or events obligating the College have already occurred.

2. Summary of significant accounting policies and reporting practices (continued)

In cases where a reasonable estimate cannot be made, a contingent liability may be disclosed. These liabilities reflect the College's best estimate, as of June 30th of the amount required to remediate the sites to the current minimum standard of use prior to contamination. Where possible, provisions for remediation are based on environmental assessments completed on a site; for those sites where an assessment has not been completed, estimates of the remediation are completed using information available for the site and by extrapolating from the cost to clean up similar sites. This liability is reported in accounts payable and accrued liabilities in the Statement of Financial Position.

{i} Expense by function

The College uses the following categories of functions on its Statement of Operations:

Instruction and training

Expenses relating directly to the provision of instruction and training programs of the College. This function includes the cost of instructional staff, other direct expenses related to instruction, and the cost of labs, including the College’s Student-Managed Farm.

Academic support

Expenses relating to support of the instruction and training function of the College. This function includes the cost of faculty professional development, program administrators, advisors, Deans, their offices and assistants.

Student services

Expenses related to providing services to students, including registration, counselling, library and advisory services.

Facilities operation and maintenance

Expenses relating to maintenance and renewal of facilities that house the teaching, research and administrative activities within the College. These include utilities, facilities administration, building maintenance, custodial services, landscaping and grounds keeping, as well as major repairs and renovations.

Institutional support

Expenses relating to support for operational functions of the College both directly and indirectly. This function includes expenses incurred by the administrative functions of the College.

Computing and communications

Expenses relating to information technology, including support, licensing and maintenance of computer software and hardware.

Ancillary services

Expenses relating to services and products provided to the College community and to external individuals and organizations. Services include the College bookstore, recreation and student residences.

Sponsored research

Expenses for all sponsored research activities specifically funded by restricted grants and donations.

Special purpose

Expenses related to fundraising and community service specifically funded by restricted grants.

{j} Funds and Internally Restricted Net Assets

Certain amounts, as approved by the Board of Governors, are set aside in accumulated surplus for future operating and capital purposes. Transfers to / from funds and internally restricted net assets are an adjustment to the respective fund when approved.

{k} Future Changes in Accounting Standards

In August 2018, the Public Sector Accounting Board (PSAB) issued PS 3280 Asset Retirement Obligations. This accounting

2. Summary of significant accounting policies and reporting practices (continued)

standard has been deferred by PSAB and is effective for fiscal years starting on or after April 1, 2022. Asset retirement obligations provides guidance on how to account for and report a liability for retirement of a tangible capital asset.

In November 2018, PSAB approved PS 3400 Revenue. This accounting standard has been deferred by PSAB and is effective for fiscal years starting on or after April 1, 2023. Revenue provides guidance on how to account for and report on revenue, specifically addressing revenue arising from exchange transactions and unilateral transactions.

In November 2020, PSAB issued PSG-8 Purchased Intangibles. This accounting guideline is effective for fiscal years starting on or after April 1, 2023. Purchased intangibles provides guidance on how to recognize intangibles as non-financial assets.

In April 2021, PSAB issued PS 3160 Public Private Partnership. This accounting standard is effective for fiscal years starting on or after April 1, 2023. Public private partnership provides guidance on how to account for infrastructure when procured under these types of arrangements.

The College has not yet adopted these standards and is currently assessing the impact of these new standards on the financial statements.

3. Portfolio investments

3. Portfolio investments (continued)

The fair value measurements are those derived from:

Level 1 – Quoted prices in active markets for identical assets;

Level 2 – Fair value measurements are those derived from inputs other than quoted prices included within level 1 that are observable for the assets, either directly (i.e. as prices) or indirectly (i.e. derived from prices);

Level 3 – While the College does not have any level 3 investments, their fair value measurements are those derived from valuation techniques that include inputs for the assets that are not based on observable market data (unobservable inputs).

4. Financial risk management

The College is exposed to the following risks:

Market price risk

The College is exposed to market price risk - the risk that the value of a financial instrument will fluctuate as a result of changes in market prices, whether those changes are caused by factors specific to the individual security, its issuer or general market factors affecting all securities. To manage this risk, the College has established an investment policy with a target asset mix that is diversified by asset class with individual issuer limits and is designed to achieve a long-term rate of return that in real terms equals or exceeds total endowment expenditures with an acceptable level of risk.

The College assesses its portfolio sensitivity to a percentage increase or decrease in market prices. The sensitivity rate is determined using the historical annualized standard deviation for portfolio investments over several years, as determined by the College's investment fund manager's reports.

At June 30, 2022, the impact of a change in the rate of return on portfolio investments would be as follows: Portfolio investments – non endowment

• 1.66% change in bonds would result in a $260 increase or decrease (2021 - 3.17% and $344)

• 6.16% change in equities would result in an $887 increase or decrease (2021 -13.54% and $1,652)

Portfolio investments – restricted for endowments

• 1.66% change in bonds would result in a $78 increase or decrease (2021 - 2.54% and $88)

• 8.67% change in equities would result in a $660 increase or decrease (2021 - 13.98% and $1,260)

Foreign currency risk

Foreign currency risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. The College is exposed to foreign exchange risk on investments that are denominated in foreign currencies. The College does not use foreign currency forward contracts or any other type of derivative financial instruments for trading or speculative purposes. The College's exposure to foreign exchange risk is very low due to minimal business activities conducted in a foreign currency.

Credit risk

Counterparty credit risk is the risk of loss arising from the failure of a counterparty to fully honor its financial obligations with the College. The College is exposed to credit risk on investments and has established an investment policy with required minimum credit quality standards and issuer limits to manage this risk. The credit risk from accounts receivable is low as the majority of balances are due from government agencies and corporate sponsors.

4.

Financial risk management (continued)

The credit risks on investments held are as follows:

Credit rating 2022 2021

AAA 3.3% 8.2%

AA+ 2.8% 0.0%

AA 38.0% 73.2%

AA- 2.9% 2.5%

A+ 13.6% 10,1%

A 39.4% 6.0% 100% 100%

Liquidity risk

Liquidity risk is the risk that the College will encounter difficulty in meeting obligations associated with its financial liabilities. This risk is managed by maintaining excess funds in the College's operating bank account which earns interest at a rate comparable to a short-term redeemable investment product.

Interest rate risk

Interest rate risk is the risk to the College's earnings that arise from the fluctuations in interest rates and the degree of volatility of these rates. This risk is managed by investment policies that limit the term to maturity of certain fixed income securities that the College holds. Interest risk on the College's debt is managed through fixed-rate agreements with the Department of Treasury Board and Finance (Note 6). A 1 % change in interest rates on bond and marketable securities values would result in a $214 increase or decrease (2021 - $323) in fair market value.

The maturity and effective market yield of interest bearing investments are as follows:

< 1 year 1 - 5 years > 5 years Average effective market yield

Asset class:

Cash and cash equivalents

100.0% 0.0% 0.0% 0.7%

Portfolio investments, short term 100.0% 0.0% 0.0% 2.1% Portfolio investments, fixed income 0.0% 51.8% 48.2% 4.0%

5.

Employee future benefit liabilities

Defined benefit plan accounted for on a defined contribution basis

Local Authorities Pension Plan (LAPP)

The LAPP is a multi-employer contributory defined benefit pension plan for faculty, administrative and support staff members and is accounted for on a defined contribution basis. At December 31, 2021, the LAPP reported an actuarial surplus of $11,922,000 (2020 - $4,961,000 surplus). An actuarial valuation of the LAPP was carried out as at December 31, 2020 and was then extrapolated to December 31, 2021. The pension expense recorded in these financial statements is $2,329 (2021 - $2,454). Other than the requirement to make additional contributions, the College does not bear any risk related to any deficit LAPP may have on an annual or cumulative basis.

6. Debt

Debt is measured at amortized cost and is comprised of the following:

Collateral

Debentures payable to Department of Treasury Board and Finance: Residences

2026 6.5% $ 600 $ 720 Residences 2036 2.1% 6,000$ 6,600 $ 720

Principal repayments in each of the next five years and thereafter are as follows:

Principal Interest Total

2023 $ 120 $ 166 $ 286 2024 508 156 $ 664

2025 517 140 $ 657

2026 525 123 $ 648 2027 534 107 $ 641 Thereafter 4,396 478 $ 4,874 $ 6,600 $ 1,170 $ 7,770

As at June 30, 2022 the Department of Treasury Board and Finance had advanced $6,000 of a $13,950 debenture to the College. Another installment of $2,000 will be advanced to the College on September 15, 2022, and the final installment of $5,950 will be advanced to the College on March 15, 2023. For value received, semi-annual principal payments on the total debenture of $13,950 will commence on September 15, 2023. As per the loan agreement, spending of the $13,950 is restricted to residence renovations. As at June 30, 2022 the College spent $2,044 on these renovations.

Interest expense on debt is $87 (2021 - $47) and is included in the statement of operations. The net book value of assets pledged as collateral is $90,928.

7. Deferred revenue

Deferred revenues are set aside for specific purposes as required either by legislation, regulation or agreement:

Balance, beginning of year $ 10,318 $ 18,402 $ 2,898 $ 31,618 $ 11,030 Grants, tuition, donations received 7,834 4,238 17,183 29,255 40,597

Restricted investment income 1,014 106 - 1,120 591 Change in unrealized gains (1,235) - - (1,235) 423 Transfers to spent deferred capital contributions (1,803) (12,533) - (14,336) (3,376)

Recognized as revenue (6,317) (379) (16,400) (23,096) (17,643) Other 44 - - 44 (4) Balance, end of year $ 9,855 $ 9,834 $ 3,681 $ 23,370 $ 31,618

STATEMENTS

8. Tangible capital assets

Cost

Balance, beginning of year $ 7,491 $ 179,551 $ 26,345 $ 19,081 $ 232,468 $ 228,871 Acquisitions - 14,937 2,074 1,869 18,880 5,310 Disposals, including write-downs - (1,555) (895) (2,260) (4,710) (1,713)

7,491 192,933 27,524 18,690 246,638 232,468

Accumulated amortization

Balance, beginning of year $ - $ 96,396 $ 16,072 $ 15,733 $ 128,201 $ 122,985

Amortization expense - 4,662 1,033 885 6,580 6,479 Effects on disposals, including write-downs - (1,554) (888) (2,255) (4,697) (1,263) - 99,504 16,217 14,363 130,084 128,201

Net book value at June 30, 2022 $ 7,491 $ 93,429 $ 11,307 $ 4,327 $ 116,554

Net book value at June 30, 2021 $ 7,491 $ 83,155 $ 10,273 $ 3,348 $ 104,267

No interest was capitalized by the College during the 2022 or 2021 fiscal years.

(1) Furniture & Equipment includes vehicles, office equipment and furniture, other equipment and learning resources.

(2) Cost includes work in progress at June 30, 2022 totaling $18,690 (2021 - $2,802) comprised of $16,794 in buildings and site improvements (2021 - $2,214), $857 in software (2021 - $170) and $1,039 in furniture and equipment (2021 - $417). These assets are not amortized as the assets are not available for use.

(3) Acquisitions during the year include in-kind contributions valued at $5 (2021 - $17).

9. Spent deferred capital contributions

Spent deferred capital contributions is comprised of restricted grants and donations spent on tangible capital acquisitions (not yet recognized as revenue). 2022 2021

Spent deferred capital contributions:

Balance, beginning of year $ 63,227 $ 63,537

Transfers from unspent deferred capital contributions 12,533 1,974

Transfers from deferred research and special purpose 1,803 1,402 Expended capital contributions recognized as revenue (3,926) (3,686)

Balance, end of year $ 73,637 $ 63,227

Land Building & site improvements Furniture & equipment Computer hardware & software

Total Total

10. Liability for contaminated sites

The composition of liabilities is as follows:

2022 2021

Balance, beginning of year $ 29 $ 52

Addition to liabilities during the year - 28 Change in estimate related to existing sites 173Remediation work performed (13) (51) Balance, end of year $ 189 $ 29

As at June 30, 2022 the liability for contaminated sites include two sites that were contaminated as a result of ongoing agricultural activity. Alberta Environment and Parks was informed of the contamination and a risk management plan has been provided for approval.

Liability estimates are based on third-party assessment. These estimates may change upon approval of the risk management plan and also based on ongoing assessments in future years.

11. Net assets

Accumulated net assets from operations

Investment in tangible capital assets

Internally restricted net assets

Endowments Total net assets

Net assets, as at June 30, 2020 $ 6,900 $ 41,389 $ 16,356 $ 8,281 $ 72,926 Annual surplus 5,946 - - - 5,946

Endowments -

New donations (137) - - 137Capitalized investment income (974) - - 974Transfer to endowments - - - - -

Tangible capital assetsAmortization of tangible capital assets 2,793 (2,793) - -Acquisition of tangible capital assets (872) 1,917 (1,045) - -

Debt repayment (120) 120 - -Net book value of tangible capital asset disposals (449) 449 - - -

Initiatives funded by operations 104 - (104) -Transfers (8,225) - 8,225 - -

Change in accumulated remeasurement gains 2,199 - - - 2,199

Net assets, as at June 30, 2021 $ 7,165 $ 41,082 $ 23,432 $ 9,392 $ 81,071 Annual surplus 6,022 - - - 6,022

Endowments -

Endowment contributions (39) - - 39Endowed by Board Motiontransfer (418) - - 418 -

Tangible capital assetsAmortization of tangible capital assets 2,655 (2,655) - - -

(continued)

Accumulated net assets from operations

Investment in tangible capital assets

Internally restricted net assets

Endowments Total net assets

Acquisition of tangible capital assets (4,379) 4,544 (165) - -

Debt repayment (120) 120 - -Net book value of tangible capital asset disposals 10 (10) - -Initiatives funded by operations 21 - (21) -Transfers from operating (145) 145 Board appropriation (3,000) - 3,000Change in accumulated remeasurement gains (4,461) - - - (4,461)

Net assets, as at June 30, 2022 $ 3,311 $ 43,081 $ 26,391 $ 9,849 $ 82,632

Net assets is comprised of:

Accumulated surplus $ 4,707 $ 43,081 $ 26,391 $ 9,849 $ 84,028 Accumulated remeasurement gains and losses (1,396) - - - (1,396)

$ 3,311 $ 43,081 $ 26,391 $ 9,849 $ 82,632

Investment in tangible capital assets represents the amount of the College's net assets that has been invested in the College's capital assets.

Internally restricted net assets represent amounts set aside or appropriated by the College's Board of Governors. Those amounts are not available for other purposes without the approval of the Board and do not have interest allocated to them. Internally restricted net assets reserved for future purposes are summarized as follows:

Appropriations for capital activities

Major capital projects $ 18,252 $ 3,000 $ (140) $ 21,112

Emerging capital needs 1,233 - (20) 1,213 19,485 3,000 (160) 22,325

Appropriations for operating activities

Major maintenance 2,922 - (5) 2,917

Emerging operating needs 220 - - 220

Delivery initiatives 805 145 (21) 929 3,947 145 (26) 4,066

Total appropriations $ 23,432 $ 3,145 $ (186) $ 26,391

12. Contingent liabilities

As at June 30, 2022, the College has been named as defendant in three (2021: one) specific legal actions. The resulting loss from these claims, if any, cannot be determined at this time.

The College has identified potential asset retirement obligations related to the existence of asbestos in a number of its facilities. Although not a current health hazard, upon renovation or demolition of these facilities, the College may be required to take appropriate remediation procedures to remove the asbestos. As the College has no legal obligation to remove the asbestos in these facilities as long as the asbestos is contained and does not pose a public health risk, the fair value of the obligation has not been estimated. Once the public sector accounting standard for asset retirement obligations comes into effect (see Note 2.k), retirement obligations related to asbestos removal will be recorded at that time.

The College continues to review environmental objectives and liabilities for its activities and properties as well as any potential remediation obligations. There may be contaminated sites that the institution has identified that have the potential to result in remediation obligations. A liability has not been recorded for these sites because either the likelihood of the institution becoming responsible for the site is not determinable, the amount of the liability cannot be estimated, or both.

The College's ongoing efforts to assess environmental liabilities may result in additional environmental remediation liabilities related to newly identified sites, or changes in the assessments or intended use of existing sites. Any changes to the environmental liabilities will be accrued in the year in which they are assessed as likely and measurable.

13. Contractual rights

Contractual rights are rights of the College to economic resources arising from contracts or agreements that will result in both assets and revenues in the future when the terms of those contracts or agreements are met. Estimated amounts that will be received or receivable for each of the next five years and thereafter are as follows:

14. Contractual obligations

The College has contractual obligations which are commitments that will become liabilities in the future when the terms of the contracts or agreements are met.

The estimated aggregate amounts payable for the unexpired terms of these contractual obligations are as follows:

14. Contractual obligations

(continued)

Service contracts

Capital projects Information systems and technology

Long-term leases Total

$ 2,407 $ 7,961 $ 216 $ 125 $ 10,709 2024 484 - 118 58 660 2025 390 - 119 16 525 2026 280 - 21 5 306 2027 68 - 20 - 88 Thereafter 32 - 20 - 52

2023

Total at June 30, 2022 $ 3,661 $ 7,961 $ 514 $ 204 $ 12,340

Capital projects includes $3,655 in contractual obligations related to the major renovation of the WHT Mead Building on the Vermilion campus.

15. Expense by object

The following is a summary of expense by object:

Total at June 30, 2021 $ 1,158 $ 3,004 $ 598 $ 321 $ 5,081 2022 2021 Budget Actual Actual

Salary and benefits $ 38,641 $ 37,046 $ 36,448 Material, supplies and services 13,339 12,682 9,969 Amortization of capital assets 6,971 6,580 6,479 Repairs and maintenance 2,134 1,809 1,840 Utilities 2,460 2,717 2,154 Scholarships and bursaries 696 1,214 1,165 Cost of goods sold 784 636 539 $ 65,025 $ 62,684 $ 58,594

16.

Related parties

The College is a related party with organizations within the Government of Alberta reporting entity. Key management personnel of the College and their close family members are also considered related parties. The College may enter into transactions with these entities and individuals in the normal course of operations and on normal terms.

The College has debt with the Department of Treasury Board and Finance as described in Note 6.

During the year, the College provided and received the following services at nominal or reduced amounts:

• Government of Alberta related parties occupied space from the College at a nominal cost. These costs and related revenues are recorded at carrying values that differ from values that would have been recorded if the parties were at arm's length.

The College has accounts receivable with the Ministry of Advanced Education in the amount of $2,149,572.

17. Government transfers

The College operates under the authority and statutes of the Province of Alberta. Transactions and balances between the College and the Government of Alberta are measured at the exchange amount and are summarized below.

18.

Grants from Government of Alberta Advanced Education:

Operating $ 31,612 $ 31,581 Capital 4,153 17,274 Other conditional grants 2,042 4,528 Total Advanced Education 37,807 53,383

Other Government of Alberta departments and agencies:

Alberta Agriculture and Forestry 188 2,462 Jobs, Economy and Innovation 1,196 (12)

Total other Government of Alberta departments and agencies 1,384 2,450

Total contributions received 39,191 55,833

Expended capital contributions recognized as revenue 3,275 2,973 Deferred revenue (4,051) (21,955) $ 38,415 $ 36,851

Federal and other government grants

Contributions received 2,995 1,786 Expended capital recognized as revenue 193 206 Deferred revenue (877) (174) $ 2,311 $ 1,818

FINANCIAL STATEMENTS

18. Salary and employee benefits (continued)

(1) Base salary includes pensionable base pay.

(2) Other cash benefits include honoraria, tuition fee waivers for student members, and severance, when applicable. No bonuses were paid in 2022.

(3) Other non-cash benefits include employer's share of all employee benefits and contributions or payments made on behalf of employees including pension, health care, dental coverage, vision coverage, out of country medical benefits, group life insurance, accidental disability and dismemberment insurance, long and short term disability plan and professional memberships.

(4) The Chair and Members of the Board of Governors receive no remuneration for participation on the Board.

(5) The VP Academic & Research resigned effective December 15, 2021. An interim VP was appointed in February 2022.

19. Budget f igures

The College's 2021-22 budget was approved by the Board of Governors on May 26, 2021 and submitted to the Minister of Advanced Education.

20. Comparative figures

Certain 2021 figures have been reclassified to conform to the presentation adopted in the 2022 financial statements.

APPENDIX

Donors

Lakeland College thanks the following supporters for their contributions to the college between July 1, 2021 and June 30, 2022. Our thanks also to the many donors who chose to make their gifts anonymously. Our apologies to anyone whose name we may have inadvertently missed.

4th Meridian Brewing Company

Aasen, Arne

Abrosimoff, Douglas & Linda Advanced Auto Cleaning Advisian

Agrai-Dairy Mart Agriculture Financial Services Corporation

Agri-Trade Equipment Expo Akinloye, Dr. Olusegun

Alberta Assessors' Association

Alberta Association of Animal Health Technologists

Alberta Blue Cross Alberta-British Columbia Seed Growers

Almberg, Craig & Family Alta-Sask Wellness - Lifemark Altman, Georgina & T.J. Anderson, Lyle & Carol Anderson, Stan Angeles, Javie Apex Distribution Inc. Arif, Aftab

Artemis PC Pump Systems Astec Safety Inc.

ATB Wealth

Atlantic AgriTech Inc. Attain Solutions Inc.

Austin, Howard Bangs, Jan Bar Engineering

Barnett, Cheryl Barnett, Corrine BASF Canada Inc.

Bates, Jason & Donna Battle River Community Foundation Bauer, Ruby Bell, Shanna Berg, Brad

Berg, Thyra Berry, Lisa Berry, Miles & Evelyn Big Steam Oilfield Services Bilben, Larry & Sharon Bjorndalen, Danita Bleakley, Dwaine & Lana Bocock, Bill Bocock, Terry & Kathleen Boehm's Physiotherapy Clinic Bosch, Peggy & Gary

BPC Directional Brassington, Neil Bullock, Patricia

Burnt Rock Adventure Co.

Butt, Darryl & Corinne Todd-Butt Cadieux, Robert Calkins, Eleanor Callander, Mary & Jim Cameron, Robert & Shirley Campbell McLennan Chrysler Campion, Todd & Lori Canadian Association of Petroleum Producers

Canadian Natural Resources Limited Capital Cares Capital Colour Carrillo, Neil Carter, Deanne Carter, Jennifer & Jordan Clarke Cave Inspection CCLMS

CEDA International Cenovus Energy Chandos Construction

Chykalsky, Jeanne & Walter Clark Buzz Spas Clark, Trevor & Susan Clark-BPA

Clarke, Tara & Olivia, Orry and Owen

CNH America LLC

Coca-Cola Bottling Limited

Colchester & District Agricultural Society

Colliers Project Leaders

Collins, Robert & Waunita

Compliant Environmental Services Convergint Technologies

Coolidge, Shelley Copper Cork Distillery Cornerstone Co-operative

County of Vermilion River

Creative Glass & Aluminum Crowe, Michael & Kathy

Crown Investments Corporation of Saskatchewan Culligan Water

Cuny, Robert & Perla

Curtis, Brian & Val Dancey, Randy & Brenda Dart Services

David's No Frills Davidson, Daryl & Shirley Davison, Lloyd & Linda Dawson, Sam

Dedman, Derek Derkatch, Susan Designer's Choice

Diachuk, Michael Dmytriw, Mark Domes, Jaclyn

Durand, Glen & Crystal Dusseldorp, Irene Dusseldorp, Ronald & Pat Dustow, Jeff Dziadyk, Rob & Rita Edmonton Kenworth

Edmonton Oilers Community Foundation

Eecol Electric Elanco Canada Limited

Electrical Contractors Association of Alberta Elevation, Mind Body Spirit Elliott, Doug Endless Summer Beachwear & Accessories

Engineered Air Erickson, Morris & Paulette Estate of Albert Miller Estate of Robert Huff Evans, Murray & Ramona Expert Fishing Co. Faltemeier, Harold & Barbara Farm Credit Canada Flindale, Rod Foisy, Andre Ford, Cathy & Lance Forget, Jenn Gabrielson, Carey & Ryan Gagnon, Calli Gamble, Rick Gannon, the late Frank Garnier, Morris Gavrailoff, Lauren Good, Arlene & C.Jay Good, Seamus Gordey, Barbara Gordeyko, Allan & Elouise Gould, Brendon Gould, Ross & Kay Gow, Diane Gow, Logan & Sheila Graham, Andrew & Melissa Graham, Myrna Gratton Coulee Agri Parts Greig, Brent & Kimberly Grindle, Travis & Tara

Guest Controls

H4 Ventures Hagell, Terry Hager, Alan & Charlene Hanlon, Patrick Harasym, Peter Harbourfront Wealth Management Harper, Kenneth & Sharon Hasegawa, Derrick & Sandra Hauk, Mark Haverslew, Robert & Lynda Hawboldt, Diana Hawboldt, Thomas Hawes, Leanne Hay, Richard & JoAnn Hermiston, Taylor Hickson, Raelean

Highland Feeders Limited Hill, Blair

Hill's Pet Nutrition Canada Inc. HMD Farms Honeker, Brian Hordy, Jennifer Horner, Cameron Hoskin, Douglas & Dawn Hoskin, Gaye & Gail Howell, Darrel & Elizabeth Hrapko, the late Julia Hrycun, Amanda Hryniw, Henry & Frances Hyndman, Kevin & Holly Ideal Office Solutions

Inclusion Lloydminster Ingram, Elizabeth Ingram, Marlene

Iron, Lindsay Janewski, Mary-Anne

JBC Anderson Foundation at Canada Gives

Jenson, Brett

Jibb, Joan

Jibb, Ralph & Wendy

Jibb, Winston & Sheila Johansson, Carl & Florence

Juba, Vic & Anna Jubb, Mike Kerstens, Liberty Kinsman, Thomas Kneen, Kagen Knourek, Kristine

Kubica, Roy Laird, Dennis

Lakeland College AHT Club

Lakeland College Staff Association

Lakeland College Stock Dog Club

Lakeland College Students' Association

Lakeland Student Association Clubs

Lamotte, Dale & Helen Landonville Ag

Lefsrud, Edmund & Ellen

Les Hanson IG Private Wealth Management Letkemann, Carmel

Liberty Run Ranch

Lindholm Seed Farm Lions Club of Lloydminster Lipp, Tim

Lloydminster Chamber of Commerce

Lloydminster KFC Lockhart, Wyman Long, Marvin Loxam, David

Lucien Beaulac Trucking

Lueck, Lindsay & Chris Strinja

Lumley, Greg & Annette

Lundell, Blaire & Linda Lundrigan, Erin Lutzak, Don

M. M. Ranching Company

Macaya, Marwin

MacKenzie, Kenneth & Mary MacLauchlan, Al & Joanne Maier, Larry & Janet Makichuk, William Malone, Arnold & Susan Manary, Russel & Jane Mann, Morgan Manners, Lynn & Bob Manners, Penny & Dan Young Market Master

Marksmen Vegetation Management Inc. Marlin Holdings Marwayne 4-H Beef Club Mason, Gerald Matrix Solutions Inc. Matters, Alta & Jay Matters, Kaitlyn Matthews, Idella & Robert Mattila Appraisals Inc. Maz Entertainment

McAllister, Neil & Carol McBain, Richard & Joyce McCarty, Barry & Beverly McCaw, Doreen & Glenn McDonald, Tanya McGrath, Frederick & Anne McIntyre, Doreen McLachlan, Kaitlin McLaren Families McLean-Lawrence, Ina McLennan, Dixie Meadus, Scott MIC Holdings Microserve Midwest Floorcovering Miedema, Geraldine

Mike Duriez Farming Miller, Gary & Wendy Miller, Les & Marilyn, Jason and Dana Milne, Sylvia & the late Robert Missfitz - Lindsee Michel Mitchell, Les & Marilyn Mix, Lorne

MNP LLP Montgomery, Barry More Than Just Feed - Nutrisource Morrison, Sabrina Moses, Gary & Isabelle Motley, Keith & Paula Murray, Loris

Nelson, Todd & Julie New Vision Health Newcart Contracting

Newton, Francine NKBA Prairie Provinces Chapter Noble, Warren Nocita, Nick & Kim Noeh, Vicky & Family North American Powertrain Components Northcott, Barbara Northern Factory Workwear Notorious Fitness Nott, John & Doreen NOV Canada ULC - Tuboscope NOV Completion Tools

Nutbrown, Dylan Ockerman, April Okkema, Aart & Donna Olive & Birch

Oshodi, Dr. Abiola Owchar, Tyrell Paniccia, Mike Paniccia, Tina Paradise Valley & District Ag Society

Paragon Mechanical

Pare, Jean Parkinson, Peter Parsons, Preston Patrie, Margaret Payless Car & Truck Wash Pearson, Edith & Rick Pek, Lisa Perillat, Cindy Perkins, Bryan & Sharon Perret, David

Pet Boutique & Salon Pickford Ranching Pilgaard, Donna Porozni, Robert & Colin Porozni Priest, Jade & Lori Priest, Margaret

Primerica-The World Class Leaders

Prince Albert Police Association

Princess Auto Foundation

Purser, Neil Pusod, Roxy Quinn, Frank & Margje R R Lamport Construction

Ranch and Feedlot Rider

Rathwell, Michael & Treena RBC Foundation

RBC Royal Bank

RE/MAX Prairie Realty Reddy, Ed

Redhead Equipment Redwing Farms

Reinert, Sally Repsol Oil & Gas Canada Inc. Riding, Wes Rivera, Ronaldo Robinson, William Rogan, Alan

Rotary Club of Lloydminster - Border City Rotary Club of Vermilion

Roth, Dennis & Kathy

Royal Canadian Legion Br 39

Royal Canadian Legion Kitscoty Br 158

Royal Canadian Legion, Alberta-NWT Command

Royal Canadian Legion, Marshall Branch 92

Ruller, Stacey & Jim Rutherford, Ken & Jennifer S2 Architecture

SAMA Sayeed, Raffath Schmidt, Agnes Scotiabank Scott, Jan Selinger, Lila

Selte Fuels Inc.

Selte, Don & Carol Selte, Trent

Sharun, Shawna & Brian and Cheyenne Shaw, Don

Shell Canada Products - Scotford Refinery

Shelter Valley Land & Cattle Sim, Timothy Skulski, Dr. Brian & Christine SmileWorks Dental Partnership Smith, Gary & Gisela SMP Engineering

Society of Petroleum EngineersLloydminster Sokalski, James & Hedi Solstice Canada Corp. Somerville, Laura Spartan Delta Corporation St. Michael Community & District Agricultural Society Stachura, Thomas & Florence

Stalwick, Rusty & Sherry Start Up Lloydminster Stevenson, Cliff Stredwick, Sharon Stricker, Greg Sunderland, Delmer & Karla Symes, Mike & Colleen Symes, Natalie Synergy Credit Union Szpajcher, Kathie Targerson, Ryan

TC Energy

TCFN-First Nations Bank Teasdale, Adam Thackeray, Don & Elda The Calgary Foundation The Ed Stelmach Community Foundation

Thomi, Andreas & Erika Thomson, Teira Thunder Welding Timmerman, Trina Tindall, Terri Tingley, Jack Tomyk, Kevin & Tania Town of Vermilion Troll Co. Company

Trumier, Ron & Lorel Turvey, John & Lynne

TVSMOR Drafting Services

UCG Universal Consulting Group Inc.

Upper Level Pottery & Art Gallery

Van Lent, Josephia

Vanvught, Will & Alice and Family Varga, Jewel & Darren Verleysen, Jim Verleysen, Walt Vermilion & Area Crisis Line

Vermilion & District Chamber of Commerce

Vermilion Charolais Group

Vermilion Credit Union

Vermilion Jr. B. Tigers VetStrategy Alberta Inc.

Vic Juba Community Theatre

Wagner, Ken & Carol Wainwright-Stewart, Dr. Alice

Walden, Murray & Eleanor Waldorf, Martha Walisser, Richard & Nicole Warkentin, Rebekah & Erwin Washington, Stephen Wayside Dental Partnership Werklund, Linda West, Terry

Western Feed Industry Association Westridge Buick GMC

Wetsch, Kimberley Wharram, Taran

White, George & Debbie WJ Garda Professional Corporation

WLS LLP Wolsey, Brian Wolters, CM

Worman, Nancy & Dave Wotten, Glenn & Pam and Mariah Wrubleski, Luke & Lillian WSP Canada

Yablonski, Ashlyn Yabut, Eleanor

Yackimec, Orest & Patricia Yole, Michael & Sheryl Young, Wendy Zayac, Jason & Carmen