Annual Report 2012-2013
Mission: To inspire learner success and community development through innovative learning in an inclusive and diverse environment. Vision: Ever to excel in a global society. Values: We value learner achievement, academic excellence and personal growth founded on our longstanding principles of: people-centred and respect, accountability and integrity, inclusiveness and collaboration, continuous self-improvement, innovation and pride.
Table of Contents Board Accountability Statement.................................................... 3 Management’s Responsibility for Reporting................................. 3 Message from the President........................................................... 4 Year in Review............................................................................... 5 Operational Overview.................................................................... 8 Board of Governors................................................................... 8 Programming............................................................................. 8 Enrolment.................................................................................. 9 Student Awards Program........................................................... 9 Facilities.................................................................................... 9 Staffing...................................................................................... 10 Performance Review...................................................................... 10 Goals, Targets, Results and Analysis........................................ 10 Management’s Discussion and Analysis........................................ 19 Transition to Public Sector Accounting Standards................... 19 Financial Results....................................................................... 19 Capital Planning........................................................................ 24 Areas of Significant Financial Risk........................................... 24 Donors............................................................................................ 25 Financial Statements...................................................................... 29 Auditor’s Report........................................................................ 29 Statement of Financial Position................................................ 30 Statement of Operations............................................................ 31 Statement of Cash Flows.......................................................... 32 Notes to the Financial Statement.............................................. 33 Schedule of Transition to Public Sector Accounting Standards.... 50
Annual Report 2012-2013
Lakeland College Page 1
Page 2 Lakeland College
Annual Report 2012-2013
Board Accountability Statement The Lakeland College Annual Report for the year ended June 30, 2013 was prepared under the Board’s direction in accordance with the Government Accountability Act and ministerial guidelines established pursuant to the Government Accountability Act. All material economic, environmental or fiscal implications of which we are aware have been considered in the preparation of this report.
[Original signed by Milt Wakefield] Chairman Lakeland College Board of Governors December 2013
Management’s Responsibility for Reporting Lakeland College’s management is responsible for the preparation, accuracy, objectivity and integrity of the information contained in the Annual Report including the financial statements, performance results, and supporting management information. Systems of internal control are designed and maintained by management to produce reliable information to meet reporting requirements. The system is designed to provide management with reasonable assurance that transactions are properly authorized, are executed in accordance with all relevant legislation, regulations and policies, reliable financial records are maintained, and assets are properly accounted for and safeguarded. The Annual Report has been developed under the oversight of the institution audit committee, as well as approved by the Board of Governors and is prepared in accordance with the Government Accountability Act and the Post-secondary Learning Act. The Auditor General of the Province of Alberta, the institution’s external auditor appointed under the Auditor General Act, performs an annual independent audit of the financial statements in accordance with generally accepted accounting principles.
[Original signed by Darla Stepanick] Vice President, Enterprise and Sustainability Lakeland College
Annual Report 2012-2013
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Message from the President Writing the annual report message is always a time of reflection for me. However, this message brings even more reflection as it is the last one I will write as the president of Lakeland College. At the end of 2013, following the conclusion of our centennial celebrations, I will retire and let a new president lead Lakeland into its second century. During convocation ceremonies this spring, I urged our graduates to always strive to be “a bit better today than you were the day before.” The same philosophy applies to Lakeland College. As you read the annual report, you’ll see that during the past year we made many changes to ensure that improvement is continuous. Here are a few examples: • We adopted new statements on our mission, vision, values and desired outcomes to guide our operations for the remainder of this decade. • We successfully piloted a new student-retention program so we can help more people to graduate. • We launched a co-operative internship program for business students so they could develop new skills, get exposure to different career paths, and make industry contacts. • We started construction of a petroleum centre so we can prepare more people to enter the petroleum industry, and offer professional development opportunities for people who already work in the sector. • We increased our applied research efforts and collaborated with new partners so we can further investigate new technologies and products, and support innovation for the betterment of the region and the province. These are just a few of the many accomplishments from the past year. As for our students, they continued to make us proud with their achievements in the classroom and in sporting events. For instance, interior design technology students received recognition in international design competitions and our women’s volleyball team hosted the Canadian Collegiate Athletic Association championship and electrified the college and the community by winning silver. During the past year the biggest challenge we faced was related to funding as we learned that our Campus Alberta grant would decrease in 2013-2014. To address our budget challenges, we suspended new intakes into seven programs and eliminated positions across all three employee groups. There’s no question that these changes were difficult. However, Lakeland College has a 100-year history of overcoming challenges and moving forward. That’s exactly what we will do again. I’ve worked at Lakeland for more than 30 years and served as the president since 2006. I’m proud of all that our employees and Board of Governors have accomplished together to help our students and our region succeed. Along the way we’ve had great support from many people including alumni, elected officials, community members, program advisory committee members, industry representatives and donors. Thanks to each of you for helping Lakeland College and its students Ever to Excel.
[Original signed by Glenn Charlesworth] President and Chief Executive Officer Lakeland College
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Annual Report 2012-2013
Year in Review Enrolment increased, students excelled in the classroom and in sports venues, applied research expanded, and Lakeland’s centennial served as a platform for a successful fundraising campaign and increased media exposure. Lakeland, like its counterparts throughout Alberta’s post-secondary system, faced funding challenges. Lakeland’s enrolment, as measured by full-load equivalents (FLEs), exceeded 2,300 for the first time in the college’s history. The increase to 2,302 from 2,216 the previous year is attributed primarily to enrolment growth in apprenticeship and diploma programs. Lakeland served students from every province and territory in Canada plus 16 other countries. A pilot programcompletion initiative helped many students who struggled academically to successfully complete their graduation requirements. A sod-turning ceremony was held in September for the new petroleum centre at the Lloydminster campus. A new boiler was installed in the current power engineering lab and students in Lakeland’s new heavy oil power engineering program were the first to use the boiler. Capital projects completed during the year included upgrades to props at the Emergency Training Centre and installation of a barrier-free outdoor playground at the Lloydminster campus. In November, Lakeland’s Board of Governors approved Focus 2020, Lakeland’s new mission, vision, values and outcomes that will guide operations into the next decade. Learner success, relevant programming and research, connectivity and sustainability are expected outcomes of the new direction.
Spotlight on students and alumni Interior design technology students continued to rack up wins in international design competitions. Chelsea Schwindt, Lauren Nikolaj, Tara Hobbins and Amanda Nordstrom all had top three finishes in student design events during the 2012-2013 academic year. Chelsea Schwindt’s entry was selected as the best out of 121 entries in a kitchen design competition hosted by the National Kitchen and Bath Association (NKBA). In the NKBA’s bathroom design category that attracted 140 submissions, Lauren Nikolaj claimed second place. As for Tara Hobbins and Amanda Nordstrom, they finished first and third respectively in General Electric’s charette competition. With the victories, Lakeland’s winning streak in student design competitions extended to 10 years. In August 2012 Courtney Federspiel, a 2012 interior design technology graduate, received the NKBA Outstanding Student Award. The award is given to students from NKBA-accredited colleges and universities from throughout North America. Federspiel was one of 17 students who received the recognition. You may not see them all on screen, but second year Lakeland agribusiness students all played big roles in the promotional video, “It’s Our Turn.” Created to change the way agriculture is viewed by consumers, the video was viewed more than 50,000 times on YouTube. In the fall of 2012, FarmOn Foundation turned to Lakeland students for help with the preproduction planning and then filming of the video. Students spent two weeks arranging scene locations, props, and a filming schedule. They also used social and traditional media to convince hundreds of students to participate in the video. Before the FarmOn team made final edits, students reviewed the video and provided feedback. Fittingly the students also planned and hosted a video launch party. Dr. Arthur McGinnis, ’41 and Margaret Page, ’96 and ’97 were the 2013 inductees to Lakeland’s Alumni Wall of Distinction. Both were recognized during Lakeland’s convocation ceremonies in June. Dr. McGinnis worked for Agriculture Canada for 35 years and is known nationally for his outstanding work in agricultural research and research management. Page is the founder and director of Beyond the Page Coaching, and Etiquette Page Enterprises. Two more people were named Distinguished Citizens and received honorary credentials during convocation ceremonies. Vermilion’s Beckie Scott, a two-time Olympic medalist in cross-country skiing and a tireless advocate for drug-free sport, received an honorary diploma in child and youth care. An honorary bachelor of applied business degree was presented to The Right Honorable Don Mazankowski. Raised in Vegreville, Mr. Mazankowski was the Member of Parliament for Vegreville from 1968 until 1993. He became the deputy prime minister in 1986. Agribusiness instructor Robert Dixon was named to Alberta Venture’s Next 10 list and students also selected him as the recipient of the Staff Appreciation Award at the Vermilion campus. An alumnus of Lakeland’s agribusiness program, Dixon is also a third-generation Lakeland employee. Annual Report 2012-2013
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Rustlers shine on national stage The Rustlers’ goal was to prove that although they were the host team of the 2013 Canadian Collegiate Athletic Association (CCAA) women’s volleyball championship, they belonged on the national stage. Mission accomplished. The women, ranked sixth in the CCAA prior to the March 2013 tournament, took their game to another level and in the process won Lakeland’s first-ever national medal. The Rustlers made it to the finals by defeating the number three ranked Humber Hawks and number two ranked Eduoard Monpetit Lynx before losing in the championship game to the top-ranked University of Fraser Valley Cascades. More than 1,000 fans packed the Lloydminster campus gymnasium to watch the final and an additional 1,250 people watched the match online at www.sportscanada.tv. Ashley Lange was one of the leaders of the women’s volleyball team. She received a CCAA All-Canadian player award, was named Alberta Colleges Athletic Conference (ACAC) Player of the Year, earned a spot on the first team ACAC AllConference Team, and was named a first team all-star at nationals. Lange is only the fifth Rustler in history to be named a CCAA All-Canadian. Other highlights of the 2012-2013 Rustler season included ACAC gold in women’s futsal, silver in men’s futsal and mixed curling, and bronze in men’s soccer. The women’s novice 8 and men’s novice 8 both won gold at the Western Canadian University Rowing Championship. Three rodeo team members won Canadian National College Finals Rodeo championships. Tessa Lay was the ACAC Futsal Player of the Year, Kevin Wagner was ACAC Female Futsal Coach of the Year and Chris McQuid was named ACAC Curling Coach of the Year.
Limitless research potential Lakeland’s agricultural research will expand next year thanks to a $2.3 million investment over five years from the Government of Canada’s College and Community Innovation (CCI) program. Announced in June, the funding allows Lakeland to expand commercial agriculture applied research projects in three key areas: livestock energy and nutritional efficiency; enhancing crop management; and advancing the bio economy. The CCI program is managed by the Natural Sciences and Engineering Research Council of Canada (NSERC). It’s the second major investment Lakeland has received from NSERC since 2010. Lakeland worked with Highland Feeders and Feedlot Health Management Services to evaluate the effects of two finishing diets - high moisture barley diet versus dry rolled barley. Feedlot performance, carcass characteristics and animal health of 120 yearling beef steers were analyzed during the trial. GrowSafe feed bunk technology allowed for the collection of daily individual feed intake data. The official opening of the Alberta Biochar Initiative (ABI) was held in May. ABI is a joint venture of Alberta Innovates Technology, Lakeland, and industry partners with assistance from Western Economic Diversification Canada. The purpose of ABI is to develop and demonstrate technologies that will enable the large scale commercial deployment of biochar products and biochar applications. Research staff shared their expertise at numerous conferences and workshops including the CleanTech Seminar, Energy Options Workshop, Canadian GeoExchange Conference and Trade Show, and Solar West.
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Annual Report 2012-2013
Centennial trek Lakeland’s year-long centennial celebrations kicked off in the fall of 2012. Lakeland’s journey from demonstration farm, to school of agriculture, to vocational college, to Lakeland College is being celebrated with numerous events. Activities during the 2012-2013 academic year included a pioneer celebration, steak cook-off, The Great Toboggan Ride, President’s Gala with guest speaker Roméo A. Dallaire, homecoming, and two golf tournaments. Lakeland hosted the CCAA women’s volleyball championship in March and the Alberta Services for Students Conference in May. Centennial celebrations conclude in November 2013 with The Green & Gold Weekend finale. As part of the celebrations, Lakeland started revealing its Century Club – a collection of 100 memorable people, places and things that have a special place in the college’s history. One of the club’s first inductees was Fred Bell, the college’s first student. It’s important to note that while the past has been celebrated, ample steps have been taken to transform the future. One way is through an ambitious centennial fundraising campaign that began during the 2010-2011 academic year and continues until June 30, 2014. The response from donors, which include businesses, external organizations, community members, staff, alumni, students and friends of the college, has been extremely strong. More than $2 million was raised in 2012-2013 alone (this doesn’t include pledged amounts). Lakeland employees donated $53,000 during the year. Cenovus Energy announced a $1.5 million donation to the campaign which will go towards the construction of the petroleum centre at the Lloydminster campus plus the creation of new scholarships for students. For the first time in Lakeland’s history, more than $1 million in bursaries, awards and scholarships was presented to students during the academic year.
Funding changes To address a 7.3 per cent reduction in Lakeland’s 2013-2014 Campus Alberta grant, Lakeland officials announced in April program intake suspensions, employee reductions, administrative group salary rollback, and reductions in travel, maintenance and professional development budgets. Facing a deficit of almost $4 million for the 2013-2014 fiscal year, substantial changes were needed to balance the budget. Decisions were based on focusing Lakeland’s resources on core programming areas which include agricultural sciences, environmental sciences, energy, and trades and technology, as well as applied research which supports many of these areas. As a result, during the 2013-2014 academic year, Lakeland will not accept new students into the following programs: academic upgrading, event management, practical nurse, office administration, transitional vocational, paramedic, and bachelor of applied business: emergency services. More than 40 permanent positions that were filled at the time of the announcement have been or will be eliminated during the next two years. Some non-permanent positions and contract positions will not be renewed next year. Other cost-saving measures to be implemented in 2013-2014 include consolidating two departments and no longer operating the child development centres at the Vermilion and Lloydminster campuses.
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Operational Overview Board of Governors (as of June 30, 2013) Milt Wakefield, Chairman Glenn Charlesworth, President Terri Rowat, Academic Staff Member Carla Anderson, Non Academic Staff Member Luke Wrubleski, Student Member Public Members: Ken Baker Darrel Howell Michael Kotelko Gary Moses (three public member positions were vacant)
Programming The following programs were offered by Lakeland during the 2012-2013 academic year. Programs with an asterisk are not included in the full-load equivalent (FLE) count. New programs that began during the year included heavy oil power engineering, pre-employment hairstylist, and gasfitter apprenticeship training. Adult development programs Academic upgrading Transitional vocational Applied degree programs Bachelor of applied business: emergency services Bachelor of applied science: environmental management Apprenticeship technical training Automotive service technician Carpenter Electrician Gasfitter Heavy equipment technician Instrument technician Parts technician Steamfitter-pipefitter Welder Certificate and diploma programs Accounting technician Adventure tourism and outdoor recreation (second year) Agribusiness Animal health technology Animal science technology Appraisal and assessment (second year) Page 8 Lakeland College
Business administration (certificate and diploma Child and youth care Conservation and restoration ecology (second year) Crop technology Early learning and child care (certificate and diploma) Educational assistant Emergency medical technician – ambulance Emergency medical technologist – paramedic Emergency services technology Employment skills enhancement Environmental conservation and reclamation (second year) Environmental sciences Environmental monitoring and protection (second year) Esthetician Event management Financial services (second year) Firefighter (NFPA 1001) General agriculture Heavy oil operations technician Heavy oil power engineering Interior design technology Office administration Petroleum management Practical nurse Pre-employment (automotive service/heavy equipment technician, carpenter, electrician, hairstylist, instrument technician, welder) Renewable energy and conservation Sign language interpretation Tourism ready to work Veterinary medical assistant Western ranch and cow horse Wildlife and fisheries conservation (second year) University studies Popular transfer routes include: • Arts • Commerce • Education • Science • Social work • Pre-bachelor of science in nursing • Pre-dentistry • Pre-medicine • Pre-pharmacy • Pre-veterinary medicine
Annual Report 2012-2013
Credit continuing education American Sign Language and deaf culture studies Emergency medical responder Fourth class power engineering Gas process operator Health care aide Pesticides Pesticides dispenser Third class power engineering
There were 55 international students enrolled in Lakeland programs during the 2012-2013 academic year, an increase from 23 the previous year.
Student awards program Includes awards, scholarships and bursaries. Total value of awards
Lakeland’s enrolment, as measured by full-load equivalents, increased by 4 per cent. 2010-2011 2011-2012 2012-2013
University studies/ applied degree
Staffing Including full-time, part-time, temporary, sessional, casual, student and government sponsored employees, the average number of employees at Lakeland each month was 609.
7,925 7,435 7,545 3,330 3,316 3,519 4,595 4,119 4,026
Permanent and continuing staff
2,250
Faculty Full-time Part or reduced time
2,216
2,303
FLEs by credential
Apprenticeship
2010-2011 2011-2012 2012-2013 Administration Full-time 51 48 48
AUPE 253.745 262.752 308.211 Full-time Part-time 852.001
115 114 117 5 5.6 2
911.207
305.798
297.999
292.760
Career certificate
555.822
516.615
468.174
No credential/ not applicable
337.419
286.542
322.205
Annual Report 2012-2013
858 1,090
Lloydminster campus Site area: 27.30 hectares Non-residential building area: 17,258 sq. m Residence accommodation: Single beds – 256; family units – 48
Enrolment
796.998
$1,055,577
Vermilion campus Site area: 209.95 hectares Off site: 9.3 hectares Agricultural land: 649.4 hectares Non-residential building area: 53,704.61 sq. m Residence accommodation: Single beds – 544; family units – 17
Collaborative degree programs Athabasca University Bachelor of commerce Bachelor of general studies Bachelor of management
Diploma and post basic diploma
726
$758,497
Facilities
Non-credit AutoCAD operator* High school fire services* Open studies – leisure and interest* Truck driver training*
Credit student headcount Full-time Part-time Credit full-load equivalents (FLEs)
2011-2012 2012-2013
$655,728
Number of awards presented
Credit general studies Firefighting and emergency services training General skills training Introduction to heavy oil and gas
2010-2011
160 161 178 8 7 6
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Performance Review In the 2012-2015 Comprehensive Institutional Plan, Lakeland outlined goals related to access, research, sustainability, and community. In the following pages Lakeland reports on the progress made towards achieving its goals.
Access Goal 1 – Maximize student recruitment and retention Performance measures Targets
Results
Maintenance of Vermilion campus enrolment (based on facility/lab restrictions, program seats and accommodation availability).
The number of FLEs attributed to Vermilion campus programs increased by 3.52%.
2% increase of first-year students for business and university studies programs at the Lloydminster campus.
Comparing Sept. 30, 2012 enrolment with the previous year, university studies full-time and part-time first-year student enrolment increased slightly. Enrolment in business decreased.
70% contact with drop-out students to develop a strategy to assist in program completion.
Lakeland piloted a retention program aimed at helping students complete their credential. A total of 361 students in 20 different certificate or diploma programs were tracked during their final term of study. Of these students, 294 (81.4%) finished program requirements on schedule. The 67 students who did not meet graduation requirements by the end of the term were contacted and attempts were made to work with each of them to provide a means to complete requirements. Options included special projects, re-writes, continuing studies in 2013-2014, and taking comparable courses online or at other post-secondary institutions. Of the 67 students, 27 took advantage of completion options immediately after the end of the semester and completed graduation requirements in time to participate in spring convocation ceremonies. This increased the graduation rate of this cohort to 88.9%. An additional 24 students are expected to complete their studies in 2013-2014. Only 16 students elected to not complete supplemental course work in order to graduate.
Early alert and early intervention system operationalized as soon as academic difficulties are recognized.
All of the academic schools use some type of early alert system to identify students who are struggling. Some systems are implemented as early as two-weeks into a term. Faculty or chairs typically meet individually with at-risk students to discuss success strategies and make students aware of services available at Lakeland. Some schools assign struggling students a faculty mentor. Retention strategies are also discussed during orientation sessions for new faculty.
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Annual Report 2012-2013
Access Goal 1 – Objectives for 2012-2013 • Review existing strategies that focus on regional high school students and their parents and modify as necessary. • Review existing social media marketing strategies as well as scholarships and promotion and modify as necessary. • Pilot the new student retention for college sustainability focus into current faculty orientation process. • Establish benchmarks and targets for admissions/graduate outcomes for each school at the diploma and certificate levels for full-time programming. Establish benchmarks and targets for course enrolment in programs delivered on a part-time basis. • Create program pathways. • Pilot the early-alert/intervention system for each school. • Pilot the program to bring back drop-out students. • Evaluate and enhance current international recruitment strategies.
Access Goal 1 – Analysis ➢ Facebook, LinkedIn, website ads, and email campaigns continue to be a big part of Lakeland’s marketing mix. The biggest change in marketing strategies involved the increased use of Google ad word campaigns and improvements to landing pages to capture prospects. ➢ About 60,000 visitors per month went to the Lakeland website. About 25 per cent of the traffic goes to Lakeland’s mobile website. Creation of a mobile app is being discussed. ➢ Lakeland’s centennial resulted in increased media exposure. For example, Lloydminster Booster, Lloydminster Source and Vermilion Standard ran monthly features on the college. Newcap TV in Lloydminster provided extensive coverage of events and Century Club announcements. Global worked with Lakeland staff to create a 30-second centennial commercial that will run until November 2013 on Global stations throughout Alberta and Saskatchewan. The Great Toboggan Ride which featured students and staff riding the world’s largest toboggan built to scale, attracted media attention from across Canada including Discovery Channel Canada’s Daily Planet and CBC radio and television stations. ➢ R ecruitment staff visited schools in Lakeland’s region in the fall rather than the spring in an effort to increase enrolment from the local areas. Regional information sessions were eliminated. ➢ Academic Excellence Scholarships for students who had a Grade 11 average of 85% or higher were awarded to 33 recipients. The previous year 25 students received the award. ➢R epresentatives from the School of Arts, Science and Business met with counselors from schools in Lloydminster and Marwayne twice a year to share information about programming. ➢L akeland hosted the Regional Skills Competition April 26. About 70 high school students from throughout the region were at the Vermilion campus for the event. Career and Technology Studies and dual-credit courses brought hundreds of students to campus during the year. ➢ Benchmarks and targets for admission, retention, graduation rates, and student satisfaction levels were developed. ➢ International enrolment increased to 55 students from 23 the previous year. ➢ To provide an opportunity for international students to study in Western Canada, Lambton College and Lakeland formed a partnership that enables Lambton College international students to study business programs at Lakeland. ➢ Agriculture Education for Employment projects in Tanzania concluded. Lakeland began work with the University of Belize, Guyana School of Agriculture (Belize), Parkland College and Bow Valley College on a CARICOM Education for Employment program in Belize. ➢ Lakeland started work with the Kazakhstani government and an organization in Kazakhstan to develop a working farm school modeled after Lakeland’s Student Managed Farm – Powered by New Holland. ➢ To help people prepare for college success, Lakeland created a one-day Early Bird Orientation program that was offered at the Lloydminster campus in the fall of 2012. There was such a demand for the program that more seats had to be added. An online college preparation course was developed and will be offered to students in the summer of 2013.
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Access Goal 2 – Create supports for underrepresented learners Performance measures Targets
Results
Analysis of needs and resources for learners with learning disabilities.
Disability support services were evaluated during the academic year and it was determined that the services are consistently meeting student needs. The evaluation brought to light opportunities to streamline several processes to increase efficiency during the next academic year.
Completion of regional assessment of current and possible foundational learning opportunities.
The assessment identified the need for a set of academic prep modules that cover foundational concepts in communications, chemistry, math and English as a second language. The modules will be developed in the next academic year.
Access Goal 2 – Objectives for 2012-2013 • Assess regional needs for foundational learning opportunities. • Finalize the development of the Aboriginal learner retention plan at both campuses. • Improve the current learning disability support plan.
Access Goal 2 – Analysis ➢ Work on the Aboriginal learner retention plan continued but uncertainty over resources available to implement strategies delayed the implementation of the plan. ➢ Regional needs assessment was completed. ➢ Introduction to heavy oil and gas was offered at the Onion Lake Cree Nation. Eleven students completed the program. ➢ Lakeland’s director of energy, entrepreneurship and Aboriginal programming met with local First Nations representatives to discuss training opportunities. ➢ Lakeland created a learning and teaching commons concept that creates personalized learning pathways and supports instructional excellence.
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Annual Report 2012-2013
Access Goal 3 – Enhance efficiency and effectiveness of program mix Performance measures Targets
Results
Assurance that all program initiatives and changes are made in an effective and efficient fashion.
Measurement under review.
Maintenance of access in light of Lakeland’s priorities and funding constraints.
Lakeland’s enrolment, as measured by full-load equivalents, increased by 4 per cent.
Access Goal 3 – Objectives for 2012-2013 • Nineteen objectives were outlined for 2012-2013 and many of the objectives were met.
Access Goal 3 – Analysis ➢ To address a 7.3 per cent reduction in Lakeland’s 2013-2014 Campus Alberta grant, substantial changes were needed to balance the budget. In the spring of 2013, it was announced that during the 2013-2014 academic year, Lakeland would not accept new students into the following programs: academic upgrading, event management, practical nurse, office administration, transitional vocational, paramedic, and bachelor of applied business: emergency services. Intakes to the American sign language and deaf culture studies and sign language interpretation programs were originally suspended but were reinstated before the end of the academic year. ➢ The first class of heavy oil power engineering students completed the diploma program. Twenty-seven students graduated. 4th Class, 3rd Class and Part B of 2nd Class power engineering were offered via online learning through the D2L platform. ➢ Study centre programming included study skills workshops, peer tutoring, support programs for students with disabilities and learning strategy support programs. ➢ Investigation into the development of an online emergency services diploma revealed that there isn’t industry or student demand for such a program. ➢ The paramedic program received CMA accreditation. ➢ Alberta Apprenticeship and Industry Training provided funding for third period instrument technician. The course was scheduled to run in April but due to a lack of instructors, it was cancelled. ➢ Two training dates were set for solar installation level 1 but both intakes were cancelled due to low enrolment. ➢ The School of Agricultural Sciences continued discussions with the University of Lethbridge to offer degree courses at the Vermilion campus. ➢ Students in the feedlot management course were very involved in a research project that evaluated the effects of two finishing diets (high moisture barley diet versus dry rolled barley) on feedlot performance, carcass characteristics and animal health of yearling beef steers. GrowSafe feed bunk technology allowed data on each yearling’s feed intake to be collected. ➢ Approval process application to the Education Standards Advisory Committee of the College of Licensed Practical Nurses of Alberta continued. Twenty-one students graduated with Lakeland’s practical nurse diploma due to the successful application to date. ➢ The business co-operative internship program was offered to students in year one of a business diploma program. Four students were placed with businesses starting in May 2013 for a four-month co-op. ➢ More than 625 practicum placements were completed with regional businesses and organizations. In energy related programming alone, 69 students participated in practicums. Human services students participated in multiple practicums thanks to the support of 98 different employers and agencies that hosted students.
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Research Goal 1 – Establish applied research and innovation at Lakeland Performance measures Targets
Results
Establishment of a clear policy framework for applied research and innovation.
Work is underway but staffing changes resulted in this not being completed.
Increase awareness of Lakeland applied research and innovation activities by increasing communication activities.
Lakeland’s profile has become more recognized nationally. Lakeland employees are frequently asked to speak at conferences and host workshops. These speaking engagements build Lakeland’s reputation for excellence in applied research and innovation.
Support growth of applied research and innovation activities in light of Lakeland priorities and funding constraints.
Despite funding challenges, Lakeland officials continued to support the growth of applied research and announced that research activities are a vital component of Lakeland’s operations.
Research Goal 1 – Objectives for 2012-2013 • Annual review of vision and mission. • Develop and finalize key procedures. • Communicate with stakeholders and review communication strategy.
Research Goal 1 – Analysis ➢ A research plan for the Renewable Energy Learning Centre was implemented. ➢ Due to staffing changes, the key procedures were not finalized. ➢ The annual publication Limitless, a celebration of research and innovation at Lakeland, was distributed throughout the year. A new version is in development for 2013-2014. Quarterly newsletters were distributed to contacts. ➢ Lakeland employees spoke about applied research projects at eight conferences in locations such as Toronto and Vancouver. Events included the CleanTech Seminar, Energy Options Workshop, Canadian GeoExchange Conference and Trade Show, and Solar West. ➢ Approximately 75 students toured the Renewable Energy Learning Centre. In addition, 14 meetings were held at the centre.
Research Goal 2 – Build applied research and innovation capacity in priority areas of programming strength Performance measures Targets
Results
Commence research activities at the Centre for Sustainable Innovation.
Achieved
Increase college and community engagement in the NSERC-funded renewable energy applied research project.
Ongoing
Support growth of applied research and innovation activities in the areas of the college’s programming strengths in support of the learner’s experience.
Facing a deficit of almost $4 million for the 2013-2014 fiscal year, substantial changes were needed to balance the budget. Lakeland officials announced that the decisions they made were based on focusing Lakeland’s resources on the core programming areas of the college (agricultural sciences, environmental sciences, energy, and trades and technology) as well as applied research which supports many of these areas.
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Research Goal 2 – Objectives for 2012-2013 • Complete renovations to research facilities. • Broaden college-wide faculty participation in NSERC-funded renewable energy research. • Explore opportunities for applied research and innovation in priority areas. • Develop infrastructure and equipment capacity in priority areas. • Support implementation of business incubation and regional innovation network.
Research Goal 2 – Analysis ➢ Renovations at the Renewable Energy Learning Centre were completed. ➢ Lakeland learned in June that it will receive a $2.3 million Innovation Enhancement grant. The five-year grant includes base funding of $500,000 a year for the first three years and $400,000 per year for the remaining two years. The funding will expand Lakeland’s capability to engage in commercial agriculture applied research projects in partnership with industry while also building the rural bio economy. ➢ Trials on canola varieties, crop inputs and pesticides were conducted in partnership with industry partners. ➢ The official opening of the Alberta Biochar Initiative (ABI) was held in May. ABI is a joint venture of Alberta Innovates Technology, Lakeland, and industry partners with assistance from Western Economic Diversification Canada. The purpose of ABI is to develop and demonstrate technologies that will enable the large scale commercial deployment of biochar products and biochar applications. ➢ Lakeland is working with NovaGreen and Alberta Innovates Technology to conduct Jerusalem Artichoke research. There is interest in commercially growing the plant in Canada because of the high concentrations of inulin in the plant. Inulin can be used to replace sugar with minimal impact on blood sugar, which is important for diabetics.
Sustainability Goal 1 – Maintain program viability Performance measures Targets
Results
Continued use of successful program review process with subsequent program decisions.
A total of 41 credit programs were reviewed.
Maintenance of current usage of eCampusAlberta.
Enrolment in Lakeland courses available within eCampusAlberta decreased by 7% from the previous year.
Sustainability Goal 1 – Objectives for 2012-2013 • Continue using successful annual program review process. • Use comprehensive list to identify programs to review. • Use annual program review to identify areas of concern. • Use worksheet to rate programs. • Continue to alter, restructure, redefine, downsize or suspend programs as process indicates. • Suspend adventure tourism and outdoor recreation program. • Utilize opportunities for eCampusAlberta usage.
Annual Report 2012-2013
Lakeland College Page 15
Sustainability Goal 1 – Analysis ➢ Lakeland offered 63 courses within eCampusAlberta. ➢ Adventure tourism and outdoor recreation was suspended at the end of the academic year. ➢ There were 61 credit programs offered at Lakeland during the academic year. Of these, 39 were annually reviewed, two were comprehensively reviewed and 20 were not reviewed. Nine were not reviewed because of program suspension announcements and six others weren’t reviewed because they are open studies, offer no credential, or are not typically reviewed. ➢ Petroleum management and gas process operator were comprehensively reviewed. ➢ Results from program reviews will be presented to the Learners and Programs committee of the Board of Governors in the fall of 2013 and it is expected program changes will take place.
Sustainability Goal 2 – Maintain financial sustainability Performance measures Targets
Results
Maintenance of Lakeland program and service offerings during budget reductions.
When the Alberta Government announced that Lakeland’s 2013-2014 Campus Alberta grant will decrease 7.3 per cent, Lakeland turned to employees and students for input on how to balance the budget. As is written in other sections of this report, following considerable review and consideration, changes in programming and staffing levels for the 2013-2014 year were announced in April. Other cost-saving measures to be implemented in 2013-2014 include consolidating two departments and no longer operating the child development centres at the Vermilion and Lloydminster campuses. Additional revenue is expected to be generated by some ancillary services plus increased international and trades enrolment.
Reallocation of resources to support new or expanded initiatives.
Lakeland invested more than $200,000 in equipment and facility development to prepare lab space for the street rod technologies program that starts in the fall of 2013.
Sustainability Goal 2 – Objectives for 2012-2013 • Devise several scenarios to deal with possible reduction in funding. • Facilitate revenue generation from other sources to support Lakeland sustainability.
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Annual Report 2012-2013
Sustainability Goal 2 - Analysis ➢ Realizing the Campus Alberta grant would decrease with the March budget announcement, Lakeland’s leadership team started devising scenarios in January to deal with a reduction in funding. ➢ When the vice president of student and college services position became vacant during the year, Lakeland assessed the current environment and decided to modify the position. A vice president of enterprise and sustainability position was created and Darla Stepanick assumed the role in April. The diverse position focuses on the entrepreneurial areas of business enterprise, process improvement and ancillary operations as well as the more traditional areas of facilities, finance and human resources. A key focus of this vice president position is to develop strategies to increase use of Lakeland’s assets in order to generate more revenue. ➢ Successful applications for applied research funding related to core programming enabled Lakeland to acquire more capital assets that aid in research and student learning.
Community Goal 1 – Unite Lakeland and community to meet learner needs Performance measures Targets
Results
Completion of MOU with all Community Adult Learning Councils (CALCs).
A memorandum of understanding template was developed. All memorandums will be updated during the next academic year.
College access points in all six regions.
Each access point was assigned a Lakeland dean to contact for information.
Maintain current usage of eCampusAlberta in six regions.
This measure was not tracked.
Community Goal 1 – Objectives for 2012-2013 • Continue to work with Regional Access Advisor Councils (RAAC) to meet community learner needs. Develop a memorandum of understanding with all CALCs. • Promote usage of eCampusAlberta in six regions. • Expand community resource usage in six regions.
Community Goal 1 – Analysis ➢ A memorandum of understanding template was developed. All memorandums will be updated during the next academic year. ➢ eCampusAlberta was promoted as the best method of delivery for regional courses. All regions were encouraged to access courses and programs through this consortium.
Annual Report 2012-2013
Lakeland College Page 17
Community Goal 2 – Advance innovation-based rural community economic development Performance measures Targets
Results
Creation of the Regional Business Accelerator as an independent entity.
Accomplished.
Increase of students participating in practicum or co-op placements to enhance their Live the Learning experience.
Business launched a co-operative internship program in 2013. Four students took advantage of the opportunity. In addition, 21 Lakeland programs had a practicum component.
Completion of feasibility research on the East-Central Regional Innovation Network.
Feasibility research was not completed due to staffing changes at Lakeland and partner organizations.
Support for regional development of business growth and maintenance strategies.
Lakeland continues to be very involved in regional business support and economic development agencies.
Community Goal 2 – Objectives for 2012-2013 • Continue to support BRAED, HUB, the Lloydminster Economic Development Corporation, and chambers through board membership and other collaborations. • Continue to support the development of the Regional Business Accelerator Centre. • Encourage practicum and co-op placements for Lakeland students with regional business.
Community Goal 2 – Analysis ➢ With staffing changes announced in the spring, Lakeland no longer has a director of community relations. Next year Lakeland intends to hire a director of enterprise. The person in that position will be involved in regional business support and economic development agencies. ➢ Deans attended strategic meetings to assist with Lakeland partnership opportunities. ➢ Support of the Regional Business Accelerator is ongoing. Lakeland President Glenn Charlesworth served on the board of directors. ➢ Hundreds of students participated in practicums. There were 625 practicums completed during the year. Some students completed more than one practicum during the year.
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Annual Report 2012-2013
Management’s Discussion and Analysis The Management’s Discussion and Analysis (MD&A) should be read in conjunction with Lakeland’s annual audited financial statements and accompanying notes. The MD&A and audited financial statements are reviewed and approved by the Board of Governors on the recommendation of the Audit Committee. Lakeland’s financial statements have been prepared in accordance with Canadian Public Sector Accounting Standards and are expressed in Canadian dollars. The MD&A is an overview of the financial results Lakeland achieved in the fiscal year ending June 30, 2013 and offers a detailed discussion and analysis of Lakeland’s: 1. Transition to Public Sector Accounting Standards 2. Financial results 3. Capital planning 4. Areas of significant financial risk
1. Transition to Public Sector Accounting Standards Effective July 1, 2012, Lakeland was required to adopt Public Sector Accounting Standards (PSAS), with retroactive application to show opening balances as at July 1, 2011. Lakeland previously reported using Not-for-Profit accounting standards. The major differences under PSAS include the following: • Intangible assets other than software are not included under PSAS, as valuation is difficult to reliably measure. • Assets and liabilities are no longer classified as short- and long-term. • Deferred capital contributions are no longer reported separately, but are now included in deferred revenue when there is a liability to the funder. • The Statement of Operations presents expenses by function (i.e., by operational area) rather than by object (i.e., by type), while expenses by type are detailed in the notes to the financial statements. The impacts associated with the transition are presented in Schedule 1 of the notes to the financial statements.
2. Financial results Lakeland had another fiscally strong year, and ended the 2013 fiscal year with a $2.1 million excess of revenue over expense. This compares well to the planned deficiency of $800,000. Lakeland’s net assets position increased by $3 million, mainly due to the $2.1 million excess of revenue over expense and an increase in unrealized gains on investments of $565,000.
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Lakeland College Page 19
Statement of Financial Position The changes in Lakeland’s financial position from the previous fiscal year are detailed below. Fiscal 2013 compared to Fiscal 2012 (amounts in thousands)
2012
2013
$ Change
Assets
Cash and cash equivalents $ Portfolio investments Accounts receivable Inventories and prepaid expenses Tangible capital assets
$
13,205 $ 25,997 1,995 3,087 72,661 116,944
$
11,496 $ 24,122 2,557 2,676 72,576 113,427
$
1,708 1,875 (562) 411 85 3,517
Liabilities
Accounts payable and accrued liabilities $ Employee future benefit liabilities Debt Deferred revenue
7,267 $ 260 1,680 67,386
6,680 $ 293 1,800 67,279
76,593
76,052
587 (33) (120) 107
$
541
Net assets
Accumulated surplus Accumulated operating surplus 33,809 Accumulated net unrealized gain on investments - Accumulated remeasurement gains and losses 911 Endowments 5,631
$ 116,944
31,728 346 - 5,301
$ 113,427
2,081 (346) 911 330
$ 3,517
The $3.5 million increase in assets is primarily composed of increases in cash and cash equivalents, and portfolio investments. These increases are attributable to stronger market performance, and donations and contributions received. Overall, there was little net change in accounts receivable, inventories and prepaid expenses, and tangible capital assets. The most significant change to liabilities is an increase in accounts payable and accrued liabilities. This $587,000 increase is largely attributable to an increase in operating accounts payable. Accumulated surplus (deficit) under PSAS has two sub components: 1. Accumulated operating surplus: This is made up of the accumulated surplus from operations (which is composed further of restricted and unrestricted surplus) and Lakeland’s investment in tangible capital assets amount. The restricted portion of our accumulated surplus is allocated by the Board of Governors. For 2013 the priority capital projects have been identified as completing the construction of the petroleum centre, and commencing renovations of our small animal clinic facility. The primary non-capital priority for spending is continued renovations of Lakeland residences. Further detail on these restricted funds is presented in Note 14.
2013
Unrestricted surplus $ Reserves for future purpose Investment in tangible capital assets
2,570 $ 3,985 $ 10,520 5,824 20,718 21, 919
33,809
Page 20 Lakeland College
$
2012
$
31,728
$ Change
$
(1,415) 4,696 (1,201) 2,080
Annual Report 2012-2013
2. Accumulated remeasurement gains: This account reports unrealized gains or losses from unrestricted investments that do not flow through to the Statement of Operations (under PSAS). Upon realizing the gain or loss the amounts will be transferred to revenue. At the end of fiscal 2012, Lakeland’s statements did not reflect any unrealized gains or losses from unrestricted investments while, at the end of fiscal 2013 (under PSAS), there was a $911,000 unrealized gain. Statement of Operations Revenue Lakeland’s revenue totaled $67.8 million in 2013, an increase of $6.3 million from 2012.
Revenue by source ($ millions) 37.2
39.6 38.1 Budget 2013 2012
11.7 12.7 12.4
Government of Alberta grants
1.3 1.5 1.5
0.7 0.6 0.6
Government of Saskatchewan grants
Other government grants
Student tuition and fees
9.6
11.5 11.4
Sales of services and products
0.4 0.8 0.7 Investment income
0.5 1.1 0.6 Donations and other grants
Government of Alberta grants Grants from the Government of Alberta continue to be the most significant funding source for Lakeland, generating $39.6 million in 2013, or 58% of all funding received. Grant revenue from the Government of Alberta increased by $1.5 million or 4% from the prior year. The majority of the increase was attributable to an increase in our Campus Alberta operating grant. Student tuition and fees Tuition and fees collected from students continues to be an important revenue source for Lakeland, and generated $12.7 million in 2013, or 19% of all revenue. Credit tuition fees were increased by the maximum allowable amount of 1.43%.
Annual Report 2012-2013
Lakeland College Page 21
Sales of services and products Sales of services and products are an aggregate of Lakeland’s ancillary activities, including revenues from the bookstores, student residences, and contracts. These areas continued to perform well with bookstore revenue surpassing budgets and residences being at or near capacity for the bulk of the academic year. These sales compose 17% of Lakeland’s revenue, and increased by 1% from the prior year. Expense Lakeland’s expenses totaled $65.7 million in 2013, an increase of $2.7 million from 2012.
Expenses - by function 29.3 26.2
($ millions) 27.4 Budget 2013 2012
11.2 11.1 9.7
Instruction and training
Academic and student support
10.7 9.9
9.4
Facilities operation and maintenance
9.0 9.0
7.8
Institutional support
6.0 5.4 6.3
Ancillary services
0.7 0.8 0.8 Sponsored research
One of the most noticeable differences required by Public Sector Accounting Standards is that expenses are presented both by function and by type, or object. Reporting expenses by function is intended to provide a summary of the major areas of spending. The traditional presentation of expenses by object is still reported in the notes to the financial statements. The most significant variances in both budget-to-actual and year-to-year are in instruction and training expenses. In this category, spending was 12% greater than budget and 7% greater than prior year. Both of these variances are largely attributable to salary and benefits costs.
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Annual Report 2012-2013
Expenses - by object 41.1 39.2
($ millions) 37.7 Budget 2013 2012
12.7
14.4
15.2
6.2 6.3 5.8 2.0 2.0 1.8
1.7 1.3 1.9 Salaries and benefits
Material, supplies and services
Cost of goods sold
0.4 0.6 0.5 Amortization of capital assets
Utilities
Scholarships and bursaries
Salaries and benefits Salaries and benefits are the largest expenditure for Lakeland, comprising 63% of all spending. These expenses were 5% greater than budget, and 9% greater than the prior year. The primary reason for both of these increases was severance costs as a result of budgetary realignment needed due to the Government of Alberta base funding reduction in the 2013-14 year. Materials supplies and services This group of expenses is the next largest area of spending for Lakeland, and made up 22% of all spending during 2013. These expenses came in 14% over budget, but 6% less than the prior year. The budget overage is a result of additional expenditures related to Lakeland’s centennial, while the savings over the prior year are a result of reduced project expenditures. Utilities and cost of goods sold Together, these expense categories make up 5% of all spending. There were no significant changes in these expenses during 2013. Scholarships and bursaries Lakeland paid out $600,000 in scholarships and bursaries in 2013, an increase of 45% over the budgeted amount, and an increase of 24% from the prior year. Lakeland’s students also collected 471 scholarships worth $500,000 from the governments of Alberta, Saskatchewan and Canada which are not included in the financial statements.
Annual Report 2012-2013
Lakeland College Page 23
3. Capital planning As detailed in Note 9 of the financial statements, Lakeland continued to invest in its facilities, spending $3.1 million on buildings, and a further $2.4 million on equipment. Much of this spending relates to the petroleum centre in Lloydminster, which is expected to be complete in 2014. Another important capital project completed during 2013 was the creation of an accessible playground in Lloydminster to accommodate children with mobility issues. The Emergency Training Centre completed the bulk of the work toward its live gas training props, which allowed the use of propane fuel, in turn enabling a more environmentally friendly as well as more efficient training facility.
4. Areas of significant financial risk Deferred maintenance While Lakeland has several exciting building projects underway, the annual infrastructure maintenance grants are insufficient to adequately maintain Lakeland’s existing facilities. The average age of campus buildings is 35 years, and with age comes increased maintenance requirements. Note 14 identifies Lakeland’s commitments to capital spending within the next year, but without more regular preventative maintenance, many of the facilities will simply require replacement. Predictable funding While Lakeland is committed to fiscal prudence and sustainable operations, the recent volatility in government funding presents a significant risk. With indications that operating grants will remain static and direction that tuition and fees must remain frozen, it will be difficult for Lakeland to maintain a balanced budget. The budget process for the 2014-2015 fiscal year has begun and Lakeland is demonstrating fiscal prudence by identifying sustainable solutions, creating new revenue streams and sourcing operating efficiencies. Lakeland is committed to sustaining its operating position to create exceptional learning experiences for students, and will continue to work with government to develop and implement long-term strategies that will address the financial challenges facing the post-secondary system.
Petroleum centre perspective
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Annual Report 2012-2013
Donors Lakeland College thanks the many people and organizations who made a donation to the college between July 1, 2012 and June 30, 2013. Our thanks also to the many donors who chose to make their contribution anonymously. Our apologies to anyone whose name we may have inadvertently missed. * denotes Lakeland College staff employed from July 1, 2012 - June 30, 2013. Melissa Ade Affinity Credit Union Agriculture Financial Services Corporation Alberta Agriculture & Rural Development Alberta Assessors’ Association AB Association of Animal Heath Technologists Alberta Beef Producers - Zone 8 Alberta Blue Cross Alberta Branch Canadian Seed Growers Association (1993) Alberta Government Community Initiatives Program Alberta Government Community Spirit Program Alberta Industrial Fire Protection Association Kristine & Mark Alexander Alexander’s Stock Farms Alexandria Wealth Management Gregor Allan Allan’s Backhoe Service Ltd. *Phil & Denise Allen All Nations Building Supplies AMIK Oilfield Equipment Rentals Animal Nutrition Association of Canada - Alberta Division A.N.M. Agri-Carriers Ltd. Anthony’s Classic Grill Antoniuk Farms Apex Distribution Inc. Apple Drugs (Vermilion) Aramark Canada Ltd. Arctic Spas & Billiards Arnie’s Stucco Ltd. Associated Ambulance & Services (Whitecourt) Ltd. ATB Financial ATCO Electric ATCO Gas ATL Mechanical Heavy Duty AUPE Local 071 Chapter 4 Baddock’s Power Products Ltd. *Laura Baker Sheldon Baker Bar Engineering Co. Ltd.
Annual Report 2012-2013
Glen Barlow Battle River Community Foundation C. Beckie Bend-Tec Fabricating Inc. Benoit Oilfield Construction (1997) Ltd. Jo Berglund Bert Duncan Trailer Sales (2007) Inc. Larry & Sharon Bilben Billi J. Miller Photography *Larry & Rosanne Bingham William Bocock *Charlene Bonnar Boomer Transport Ltd. *Layne & Lonnie Boothman Border City Concrete Ltd. Border Logistics Inc. Boston Pizza Vermilion Boundary Ford Sales Krystene Boyd *Wayne & Susan Brazeau John & Joan Bretzer Brian D. Larson Consulting Inc. Brian M. Thompson Professional Corp. Brixton Shoes Bruin Bros Construction Agnes & Kelvin Buchanan Bulldog Vacuum Service Ltd. *Khursten Bullock Rawrie Bullock Bullriders Welding & Services Ltd. Bykowski Sand & Gravel Inc. C. Anderson Welding Ltd. C. McKinaly Holdings Ltd. Cal-Gas Inc. Mary & Jim Callander *Bob & Shirley Cameron Canadian Association of Petroleum Producers Canadian Bull Congress Canadian Collegiate Athletic Association Canadian Heavy Oil Association
Canadian Imperial Bank of Commerce Canadian Natural Resources Limited Canarctic Power Tongs Care Factor Computer Services Inc. Cargill Limited Scott & Maureen Carlton Rod & Janet Carlyon Deanna Carter Cenovus Energy Inc. Century 21 Lloydminster Realty Katie Chapman *Joanne & Glenn Charlesworth Chatters Canada Ltd. Paul Chauvet Cheers Restaurant City of Lloydminster CNH America LLC Murray Coburn Coca-Cola Refreshments Canada Company Colchester & District Agricultural Society Greg Colemen & Dustin Colemen College Park Motors *Joy Collinge Compliant Environmental Services Ltd. Compugen Inc. Convergint Technologies Ltd. Cooper Wealth Management Group Corlane Holstein Ltd. Cornerstone Liquor Store County of Vermilion River CPANS Craig’s Vermilion Ltd. *Michael & Kathy Crowe Crown Investments Corporation of Saskatchewan Rex & Joyce Cunningham *Denis & Nancy Cunninghame Dabane Trucking Ltd. Dagg Construction Ltd. Mary Daigneault
Randy & Brenda Dancey Darmac Appraisals Ltd. Michael & Carol Davison Rosabelle Daugela Deb’s Country Garden Decals & Sign Obsessions Del Lloyd Corporation Denham Chrysler Ltd. Designer’s Choice (Lloyd) Ltd. Devon Canada Corporation Diamond International Trucks (Lloydminster) Ltd. Diamond 7 Meats Inc. Mark Diboll Bliss & Betty Dickson Mark Dobbs Doc Holiday’s Charters Ltd. *Lorena Donkin Dundonald Homes Ltd. *Jeff Dustow Eagle Well Servicing Eastalta Co-op Ltd. Eddie’s Men’s Wear Ltd. Edmonton Association of the Deaf Edson Telephone Answering Service (1996) Ltd. Electrical Contractors Association of Alberta Elements Hair & Body Lloyd & Karen Elgert Doug Elliott Elstel Canadian Meter Ken & Hanna Emes *Michael Evans-Smith Everest Trucking Ltd. Evergreen Oilfield Services Exhaust Masters (Lloydminster) Fabutan Suntan Studios Factory Sports Excellence Barry & Connie Fahrion Farm Credit Canada Cody Faux Fedler Electric Ferbey Sand & Gravel Ltd. James & Jacqueline Fielding Lakeland College Page 25
Donors (continued) Fillmore Construction Management Inc. *Mary Finlin Firesong Foremost Universal LP Dale Foss *Cecelia & Don Foster Foster Bulldozing Services Ltd. Fountain Tire Ltd. Bill & Myrna Fox Shawna Fraser Frog Lake First Nations 121/122 Frontier Peterbilt Sales Fulkerth Services Ltd. Future Shop Roy Galloway Frank Gannon Robert Gehl Gibson Energy Doug Gilby Glencoe Development Inc. *Barbara Gordey Grit Industries Inc. Megan Hafso Hall & Revering Amanda Hanesiak Margaret Harcus Laurie Harris Mary & Dennis Harrish Hawkings Epp Dumont LLP Heavy Crude Hauling LP Hemisphere Engineering Inc. James Hendrickson Jody & Sharon Herbus Dorian Herman Lance Herman Highland Feeders Limited Blair Hill Hillsask Farm/Ronald Oliver Owen Hilts Dennis Hobman Kenneth & Jessie Hoffman Murray & Sharon Hoffman Melissa Hofstra Elissa Hohler *Debbie Holden Holiday Inn & Suites Homes To Go Mfg. Ltd. Brian Honeker
Page 26 Lakeland College
Muriel Hong *Donna & Norman Horpestad Fritz Hostettler Hot Peppers Clothing Co. *Craig Hougen Darrel & Elizabeth Howell Mildred Hughes Husky Energy Fred Huxley IBM Canada Ideal Office Solutions Impact Clothing Company Ltd. Intact Insurance Interior Designers of Alberta Ireland Farm Equipment Ltd. Hazel Irving Clayton & Connie Jackson Jarvie General Store Brampton Jennings Harvey & Anne Jessup Johnson Inc. *Kara Johnston Roger Jones *Chris Jost Vic & Ann Juba K. Kenn Industries Ltd. Jeff Kappes Kasian Architecture Interior Design & Planning Ltd. Charlene Kasinec *Sarah Kastendieck Kenilworth Combustion Ltd. Brian Keating *Lalit & Manju Kilam Ken Kingdon Jennifer Kent The Kibblewhite Family Cecil King Jacinda Kitt Knight Seeds Carolyn & George Knispel *The Kohel Family Bill & Ruth Kondro Roy Kubica KUDU Industries Inc. L & L Oilfield Construction (1980) Ltd. Arlene Lachance Ladybug Scrapbook
Lakeland College A.H.T. Club Lakeland College Alumni Association Lakeland College Staff Association Lakeland College Stock Dog Club Lakeland College Students’ Association - Lloydminster Lakeland College Students’ Association - Vermilion Lakeland Country Florists Lamb Studios - Jenna Lamb Lammle’s Western Wear & Tack Verne Latta Arvel Lawson & Brian Tischler Joseph & Lauren Laxdal Leading Manufacturing Group Inc. *The Lefebvre Family Edmund & Ellen Lefsrud Legacy Building Contractors Inc. Park & Beth Letts Lions Club Lloydminster *Fang Liu Lloydminster Agricultural Exhibition Association Ltd. Lloydminster & District Co-operative Ltd. Lloydminster Animal Hospital Lloydminster Chamber of Commerce Lloydminster Golf & Curling Centre Lloydminster Jr. ‘A’ Bobcats Marjorie Locke Marvin Long Longridge Consulting Long’s Value Drug Mart Karren Longworth Rodney & Nadine Lustig Douglas Lynass Guy MacDonald Randi-Lynn MacDonald *Cathy MacKenzie Joanne MacLauchlan *Malcolm MacLean *Maurice & Heather MacMillan Allyssa MacPhaden *Debbie Maddex Janet Magdanz Darcie & Lorne Maier
Camille & Nick Malette Lynn Manners Mannville Truckwash Marsh Canada Limited Matrix Solutions Inc. David Matthews May Theatres (1984) Ltd. Richard & Joyce McBain Barbara & John McBride Arthur McCarty *The McCullough Family Mike McGinley Dr. Arthur & Gladys McGinnis Bill & Theresa McIldoon *Kirk & Pam McInroy Carol McKay Steven McKenzie Ina McLean-Lawrence George & Ivy McMillan June & Don McMillan McMinis & Company Judith & Barry Mehr Melcor Developments Ltd. Meridian Surveys (Alta.) Ltd. Jim Metherell Microserve Mid-East Partnership Midwest Furniture & Appliances MNP LLP *Douglas Moeckl *Jo-Ann Mones Delia Morgan-Tetz Gary & Isabelle Moses Motion Fitness *Al Motley Heather Nadeau *Debbie & Dave Neigum James Nelson Marc Neron, Hockey Alberta Harvey & Carol Neufeld Newcap Inc. Nexxus Enterprises Nick’s Family Restaurant Vermilion Nilsson Bros. Livestock Exchange Noralta Technologies Inc. Beatrice Nordli NorQuest College Northern Meadows Golf Club
Annual Report 2012-2013
Donors (continued) Northwind Radio Ltd. Richard & Margaret Nydokus *Simone & Mike Odynski OK Tire & Auto Service, Evansburg Olds College Lisa & William Osadchuk *Michelle Oswell Pankratz Enterprises Ltd. Robert & Patricia Parker Peace Country Alumni Peavey Mart Brian & Judy Pederson Eleanor Pegg Pembina Pipeline Corporation Pentacon Energy Services Ltd. Perma Earth Consulting Ltd. Perpetual Energy Inc. Margaret & Don Peterson Richard & Frances Pfeiffer PIC Investment Group Inc. Pier 49 Washhouse Ltd. *Wendy Plandowski PLH Erosion Control Services Inc. Cathy & Alf Plantz Dan Plourde Nick Porozni Robert Porozni & Colin Porozni Portage and District Recycling Inc. Powell Cats Ltd. Prairie Fire Volleyball
Annual Report 2012-2013
The Prairie Provinces Chapter of the NKBA Precision Contractors Ltd. Adam Prefontaine Princess Auto Pro-Tech Valve Sales Inc. Vera & John Protz Darin Prylowski Sandra Prylowski Pyrotec Fire & Safety Equipment Ltd. Quinn Contracting Ltd. Michael Quwek Ranch and Feedlot Rider Club *Aaron & Trisha Rawlake Joyce Raymond RBC Foundation RBC Royal Bank Carrie Resch R. Snelgrove & Sons Ltd. *Alan & Denise Rogan Anne Rogan Allen Ronaghan Real Canadian Superstore Redhead Equipment Ltd. Reid Signs Ltd. RE/Max of Lloydminster RE/Max Prairie Realty (Vermilion & Vegreville) Raymond Renaud Resch & Company Ltd. Richardson’s Jewellery Ricoh Canada Inc. Seetta & Steven Roccola
River Valley Rods & Collision Ltd. Brian Robinson William Robinson Rock Solid Nitrogen Services Ltd. Rona Roof Management & Inspection Services Rotary Club of Vermilion Sarah Roth Marie Roy & Juliette Popplestone Royal Canadian Legion Royal Canadian Legion, Alberta-NWT Command Royal Canadian Legion Branch 39 Lori Runzer Lawrence & Lillian Ruptash Russel Metals Inc. Patrick Rutherford Ry-lene Consulting Ltd. Sage Brush Holdings Adele, Norman & David Sale Sandpiper Truck Services Ltd. Mandeep Saran *Judy & Chris Sarsons Sask Assessment Management Agency (SAMA) Saskatchewan Association for Community Living Saskatchewan Association of Veterinary Technologists Agnes Schmidt Orvis Schneider
Brittany Schuk Scotiabank Hazel Scott SDMC Ag Inc. Sears Sellers R.V. Centre Ltd. *Chris Senaratne Olga Seniuk Servus Credit Union Ltd. Shaw Communications Inc. Shield Wireline Ltd. *Darina Shubert Silverwood Toyota Victoria Skitsko Dr. Brian Skulski Leanne Slootweg *Ken & Debbie Smith Lloyd & Diane Smith Mevin Smith Randy Smith Susan Smith *Tricia Smith *Val Smith Smyl Motors Ltd. Society of Petroleum Engineers - Lloydminster Section Solstice Canada Corp. Southern Alberta Fire Fighters Conference Southview Trucking Ltd. Gus Stamp & Eric Stamp Robbie Stanley Stantec Consulting Ltd. Staples Starfield
Lakeland College Page 27
Donors (continued) Austin & Riley Starko Carel & Scot Steele *Amanda & Jason Stepanick *Darla & Kevin Stepanick Stetson Casing Service Ltd. Faye Stevens Dr. Alex J. Stewart *Joyce Stewart *SarahJayne Stoop & Anthony Biglieni Strathcona Vintage Tractor Association Subaru of Saskatoon Summit Swing Stage Inc. Charene Sutherland Christian Swiggum *Mike & Colleen Symes Synergy Credit Union James Tally Tanmar Consulting Inc Tarpon Energy Services Ltd. TB Systems Solutions TD Bank Financial Group Tervita Waste Management The Bea Fisher Centre Inc. The Bounty Management Group Inc. The Calgary Foundation
Page 28 Lakeland College
The Child and Youth Care Association of Alberta The Children’s Ability Fund The Community Closet Society of Vermilion The Old Liquor Store Ltd. The Princess Auto Foundation Inc. Virginia Thiessen Tourism Saskatchewan Tradewinds Enterprises Ltd. Ellis & Donna Treffry Tri Jet Services Inc. Michele Tripps *Ralph Troschke Truly Amish Dennis Turner TW Crew Eli Ulan Ulmer Chevrolet Cadillac Ltd. United Farmers of Alberta Universal Consulting Group Ltd. Antoon & Ingrid Van Der Kamp *Josie Van Lent Vee Tee Feeders Ltd. Robin Verbeck Vermilion Agricultural Society Vermilion & District Chamber of Commerce
Vermilion Chrysler Vermilion Credit Union Ltd. Vermilion Eye Centre/ Dr. Lee J. Moneo Vermilion Hotel Vermilion Jr. B. Tigers Vermilion Liquor Store Vermilion-Lloydminster Constituency Office Vermilion Ready Mix Concrete Vermilion Veterinary Clinic (1977) Ltd. Vet Novations Canada Inc. Vetstrategy Alberta Inc. Vic Juba Community Theatre Viterra Inc. *Alice Wainwright-Stewart Milt & Carroll Wakefield *Peter & Bonnie Walsh Angela Watson Webb’s Crop Services Ltd. Webb’s Ford Ltd. Jerome Weiland Wellar Contracting Ltd. Melvin & Della Wells Werner & Chris Wennekamp Wentworth Oilfield Services Ltd. West Earth Developments
Western Builders Inc. Daniel Wheeler Bernard & Marlene Whitten Wild Rose Ranch Wilkinson Livingston Stevens LLP *Peter & Cindy Wilkinson Josephine Willes *K. Williams Shirley Williams Amber Willis Norm Wilson Windsor Plywood Olga Wingrove Winterburn Community League Wolfond Insurance & Investment Ltd. *C.M. Wolters WPD Ambulance WRW Chartered Accountant Orest & Patricia Yackimec Yanke Transfer Ltd. Douglas Yee Peter & Helena Yeung *Darla Yonkman Douglas York Your Dollar Store With More Y’s Marketing Les Zaweracka
Annual Report 2012-2013
Independent Auditor’s Report To the Board of Governors of Lakeland College Report on the Financial Statements I have audited the accompanying financial statements of Lakeland College, which comprise the statements of financial position as at June 30, 2013, June 30, 2012 and July 1, 2011 and the statements of operations and cash flows for the years ended June 30, 2013 and June 30, 2012, and the statement of remeasurement gains and losses for the year ended June 30, 2013 and a summary of significant accounting policies and other explanatory information. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with Canadian public sector accounting standards, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor’s Responsibility My responsibility is to express an opinion on these financial statements based on my audits. I conducted my audits in accordance with Canadian generally accepted auditing standards. Those standards require that I comply with ethical requirements and plan and perform the audits to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. I believe that the audit evidence I have obtained in my audits is sufficient and appropriate to provide a basis for my audit opinion. Opinion In my opinion, the financial statements present fairly, in all material respects, the financial position of Lakeland College as at June 30, 2013, June 30, 2012 and July 1, 2011 and the results of its operations and its cash flows for the years ended June 30, 2013 and June 30, 2012, and its remeasurement gains and losses for the year ended June 30, 2013, in accordance with Canadian public sector accounting standards.
[Original signed by Merwan N. Saher, FCA] Auditor General October 30, 2013 Edmonton, Alberta
Annual Report 2012-2013
Lakeland College Page 29
Statement of Financial Position as at June 30
June 30, 2012
June 30, 2013
(note 2)
Assets Cash and cash equivalents (note 5)
July 1, 2011
$ Portfolio investments (note 6) Accounts receivable (note 8) Inventories and prepaid expenses Tangible capital assets (note 9)
13,204,854 $ 25,997,159 1,994,521 3,086,863 72,660,564
$ 116,943,961
Liabilities Accounts payable and accrued liabilities
$
11,496,433 $ 3,960,701 24,121,775 27,529,725 2,556,879 2,015,437 2,675,851 2,432,384 72,575,613 71,130,064
$ 113,426,552
$ 107,068,311
Debt (note 11) Deferred revenue (note 12)
7,266,881 $ 260,000 1,680,000 67,385,797
6,680,106 $ 6,699,856 293,000 - 1,800,000 2,379,498 67,278,828 63,346,069
76,592,678
76,051,934
Employee future benefit liabilities (note 10)
72,425,423
Net assets Accumulated surplus (note 14) Accumulated operating surplus 33,808,914 31,727,614 29,372,104 Accumulated net unrealized gain (loss) on investments - 346,083 311,158 Accumulated remeasurement gains (losses) 911,266 - Endowments (note 13) 5,631,103 5,300,921 4,959,626
$ 116,943,961
$ 113,426,552
$ 107,068,311
Contingent liabilities and contractual obligations (notes 15 and 16) Approved by
[Original signed by Milt Wakefield] Chair, Board of Governors
[Original signed by Glenn Charlesworth] President & CEO
The accompanying notes are part of these financial statements.
Page 30 Lakeland College
Annual Report 2012-2013
Statement of Operations for the year ended June 30
2012
2013
Revenue
Government of Alberta grants (note 19) Federal and other government grants Student tuition and fees Sales of services and products Investment income (note 17) Donations and other grants
Actual
Budget Actual (note 2)
$
37,241,190 $ 1,940,300 11,733,430 9,550,627 432,000 517,032
39,591,049 $ 2,073,333 12,718,713 11,530,371 777,849 1,067,699
38,070,622 2,162,289 12,408,902 11,384,136 657,822 618,385
$
61,414,579
67,759,014
$65,302,157
$
Expense 29,310,284 $ 11,243,012 9,857,756 9,030,477 5,393,778 842,406
27,440,743 11,136,897 9,353,387 7,840,939 6,326,781 847,901
$ 62,224,579 $ 65,677,714 $ Operating surplus/(deficit) (810,000) 2,081,300
62,946,648
Instruction and training $ Academic and student support Facilities operation and maintenance Institutional support Ancillary services Sponsored research
26,201,630 $ 9,674,175 10,694,415 8,992,702 5,975,301 686,356
2,355,509
Accumulated operating surplus (deficit), beginning of year
31,727,613
31,727,614
29,372,104
Accumulated operating surplus (deficit) operations, end of year
$
30,917,613
33,808,914
31,727,613
$
$
Annual Report 2012-2013
Lakeland College Page 31
Statement of Cash Flows for the year ended June 30
2012
2013
Operating transactions Operating surplus $ 2,081,300 $ 2,355,510 Add (deduct) non-cash items: Amortization of tangible capital assets 6,300,407 5,789,014 Expended capital recognized as revenue (3,431,860) (2,903,880) Gain on disposal of tangible capital assets (63,180) (44,092) Change in employee future benefit liabilities (33,000) Total non-cash items 2,772,367 (Increase) decrease in accounts receivable 562,359 Increase in inventories and prepaid expenses (411,012) Increase in accounts payable and accrued liabilities 586,591 Increase in deferred revenue 3,498,456
2,841,042 (541,442) (243,467) 273,249 7,480,859
Cash Provided by (Applied to) Operating Transactions 9,090,061 12,165,751 Capital transactions Acquisition of tangible capital assets (6,433,631) (7,321,391) Proceeds on disposal of capital assets 106,831 126,151 Cash Provided by (Applied to) Capital Transactions (6,326,800) (7,195,240) Investing transactions Purchases of investments (net of sales) (1,265,273) 2,960.643 Cash Provided by (Applied to) Investing Transactions (1,265,273) Financing transactions Endowment contributions 330,432 Debt retirement (120,000)
2,960,643
Cash Provided by (Applied to) Financing Transactions 210,432 Increase (decrease) in cash and cash equivalents 1,708,420
(395,421)
Cash and cash equivalents, beginning of year
184,075 (579,496)
7,535,733
11,496,433 3,960,701
Cash and cash equivalents, end of year (note 5)
13,204,854
$ 11,496,433
Statement of Remeasurement Gains and Losses for the year ended June 30, 2013 Accumulated remeasurement gains/(losses) at beginning of year
2013 $
Adoption of PS3450 Unrealized gains (losses) attributable to: Portfolio investments Amounts reclassified to statement of operations, endowments, deferred revenue: Portfolio investments Accumulated remeasurement gains/(losses) at end of year Page 32 Lakeland College
346,083 602,349
(37,166) $
911,266 Annual Report 2012-2013
Notes to the Financial Statements for the year ended June 30, 2013 1 Authority and purpose The Board of Governors of Lakeland College is a corporation which manages and operates Lakeland College (“the College”) under the Post-secondary Learning Act (Alberta). All members of the Board of Governors are appointed by either the Lieutenant Governor in Council or the Minister of Enterprise and Advanced Education, with the exception of the President, who is an ex officio member. Under the Post-secondary Learning Act, Campus Alberta Sector Regulation, the College is a comprehensive community institution offering diploma and certificate programs as well as a full range of continuing education programs and activities. The College is a registered charity, and under section 149 of the Income Tax Act (Canada), is exempt from the payment of income tax.
2 Conversion to Public Sector Accounting Standards Commencing with the 2012/2013 fiscal year, the College has adopted Canadian Public Sector Accounting Standards (“PSAS”) as issued by the Public Sector Accounting Board. These financial statements are the first financial statements for which the College has applied Canadian PSAS. The adoption of PSAS is accounted for by retroactive application with a restatement of prior years, except for the accounting standards contained in PS 2601 and PS 3450 as these standards specifically prohibit retroactive application. The impact of the conversion to Canadian PSAS on the accumulated surplus/deficit at the date of transition and the comparative annual surplus is presented in Schedule 1. The College has not made any elections related to the adoption of PSAS.
3 Adoption of new accounting standards {a} Portfolio Investments As of July 1, 2012, the College adopted PSA Handbook Section 3041, Portfolio Investments. This section establishes standards on how to account for and report portfolio investments. This standard is applicable to the fiscal year in which PSA Handbook Sections 2601, Foreign Currency Translation, 3450, Financial Instruments and 1201, Financial Statement Presentation are adopted. The standard refers to 3450, Financial Instruments for recognition and measurement of investments held by the College. Comparative amounts are presented in accordance with the accounting policies applied by the College immediately preceding its adoption of this standard. Other than previously stated in this note, there were no significant impacts of adopting this standard for the year ended June 30, 2013. {b} Financial Instruments As of July 1, 2012, the College adopted PSA Handbook Section 3450, Financial Instruments. This new standard provides guidance for recognition, measurement and disclosure of financial instruments. The transitional provisions in the standard state that when a government organization applies this standard in the same year it adopts PSAS for the first time, this standard cannot be applied retroactively. Comparative amounts are presented in accordance with the accounting policies applied by the College immediately preceding its adoption of PSAS. Consequently, unrealized gains and losses reported in the Statement of Financial Position for July 1, 2011 and June 30, 2012 remain in accumulated surplus. The College has previously disclosed risks related to financial instruments in note 2 of its June 30, 2012 GAAP financial statements.
Annual Report 2012-2013
Lakeland College Page 33
Notes to the Financial Statements (continued) {c} Foreign Currency As of July 1, 2012, the College adopted PSA Handbook Section 2601, Foreign Currency Translation. This revised standard establishes standards on how to account for and report transactions that are denominated in a foreign currency. The transitional provisions in the standard state that when a government organization applies this standard in the same year it adopts PSAS for the first time, this standard cannot be applied retroactively. Comparative amounts are presented in accordance with the accounting policies applied by the College immediately preceding its adoption of PSAS. Other than disclosed above under Financial Instruments, there was no impact of adopting this standard. {d} Financial Statement Presentation As of July 1, 2012, the College adopted PSA Handbook Section 1201, Financial Statement Presentation. This section establishes general reporting principles and standards for the disclosure of information in financial statements. This standard is applicable to fiscal years that PSA Handbook Sections 2601, Foreign Currency Translation and 3450, Financial Instruments are adopted. Other than previously stated in this Note, there were no significant impacts of adopting this standard for the year ended June 30, 2013. {e} Government Transfers As of July 1, 2012, the College retroactively adopted revised PSA Handbook Section 3410, Government Transfers. This revised standard establishes standards on how to account for and report government transfers to individuals, organizations, and other governments from both a transferring government and a recipient government perspective. The adoption of this revised standard did not have any impact on the College’s comparative figures, but required additional disclosures in Note 4.
4 Summary of significant accounting policies and reporting practices {a} General - PSAS and Use of Estimates These financial statements have been prepared in accordance with Canadian PSAS. The measurement of certain assets and liabilities is contingent upon future events; therefore, the preparation of these financial statements requires the use of estimates, which may vary from actual results. College administration uses judgment to determine such estimates. Amortization of tangible capital assets is the most significant items based on estimates. In administration’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} Non-use of Net Debt Model Format PSAS require a net debt presentation for the statement of financial position in the summary financial statements of governments. Net debt presentation reports the difference between financial assets and liabilities as net debt or net financial assets as an indicator of the future revenues required to pay for past transactions and events. The College operates within the government reporting entity, and does not finance all its expenditures by independently raising revenues. Accordingly, these financial statements do not report a net debt indicator.
Page 34 Lakeland College
Annual Report 2012-2013
Notes to the Financial Statements (continued) {c} Valuation of Financial Assets and Liabilities The College’s financial assets and liabilities are generally measured as follows: Financial Statement Component
Measurement
Cash and cash equivalents Portfolio investments Fixed income investments Accounts receivable Accounts payable and accrued liabilities Debt
Amortized Cost Fair Value Amortized Cost Amortized Cost Amortized Cost Amortized Cost
Unrealized gains and losses from changes in the fair value of financial instruments are recognized in the statement of remeasurement gains and losses except for the restricted portions which is recognized as a liability under deferred revenue. Upon settlement, the cumulative gain or loss is reclassified from the statement of remeasurement gains and losses and recognized in the statement of operations. All financial assets are tested annually for impairment. When financial assets are impaired, impairment losses are recorded in the statement of operations. A write-down of a portfolio investment to reflect a loss in value is not reversed for a subsequent increase in value. For financial instruments measured using amortized cost, the effective interest rate method is used to determine interest revenue or expense. Transaction costs are a component of cost for financial instruments measured using cost or amortized cost. Transaction costs are expensed for financial instruments measured at fair value. Administration evaluates contractual obligations for the existence of embedded derivatives, and has determined that no embedded derivatives are present for the year ending June 30, 2013. When derivatives are identified, Administration 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. {d} 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. The College recognizes government grants, donations and other contributions as follows: Government transfers Government transfers and the associated externally restricted investment income are recorded as deferred revenue if the terms for use of the transfer, or the terms along with the College’s actions and communications as to the use of the transfer, create a liability. These transfers are recognized as revenue as the terms are met and, when applicable, the College complies with its communicated use of the transfer. Government transfers without terms for the use of the transfer are recorded as revenue when the College is eligible to receive the funds.
Annual Report 2012-2013
Lakeland College Page 35
Notes to the Financial Statements (continued) Donations and non-government contributions Donations and non-government contributions are received from individuals, corporations, and private sector not-for-profit organizations. Donations and non-government contributions may be unrestricted or restricted for operating or capital purposes or research purposes. Unrestricted donations and non-government contributions 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. Restricted donations, non-government contributions, realized and unrealized gains and losses for the associated externally restricted investment income are recorded as deferred revenue if the terms for their use, or the terms along with the College’s actions and communications as to the use, create a liability. These resources are recognized as revenue as the terms are met and, when applicable, the College complies with its communicated use. In kind donations of services and materials are recorded at fair value when such value can reasonably be determined. While volunteers contribute a significant amount of time each year to assist the College, the value of their services are not recognized as revenue and expenses in the financial statements because fair value cannot be reasonably determined. Grants and donations related to land The College recognizes transfers and donations to buy land as a liability when received and as revenue when the College buys the land. 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. Endowments Donations that must be maintained in perpetuity are recognized as a direct increase in endowment net assets when received. Realized gains and losses attributable to portfolio investments that also must be maintained in perpetuity are also recognized as a direct increase in endowment net assets when received. Investment Income Investment income includes dividend and interest income, and realized gains or losses on the sale of portfolio investments. Unrealized gains and losses on portfolio investments that are not from restricted transfers, donations or contributions are recognized in the Statement of Accumulated Remeasurement Gains and Losses until the related investments are sold. Once realized, these gains or losses are recognized in the Statement of Operations. {e} Inventories Inventories held for resale are valued at the lower of cost and expected net realizable value and are determined using the FIFO method. Inventories held for consumption are valued at cost.
Page 36 Lakeland College
Annual Report 2012-2013
Notes to the Financial Statements (continued) {f} Tangible Capital Assets angible capital assets are recorded at cost, which includes amounts that are directly related to the acquisition, design, T construction, development, improvement or betterment of the assets. Cost includes overhead directly attributable to construction and development, and interest costs that are directly attributable to the acquisition or construction of the asset. Work in progress, which includes facilities and improvement projects and development of information systems, is not amortized until after the project is complete and the asset is in service. apital lease obligations are recorded at the present value of the minimum lease payments excluding executor costs (e.g. C 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. he cost, less residual value, of the tangible capital assets, excluding land, is amortized on a straight-line basis over the T estimated useful lives as follows:
Building and site improvements Equipment Computer hardware and software Learning resources
3-40 years 5 years 5 years 10 years
angible capital assets are written down when conditions indicate that they no longer contribute to the College’s ability to T 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 accounted for as expenses in the statement of operations. ontributed capital assets are recorded as revenues at their fair market value on the date of donation, except in circumstances C where fair value cannot be reasonably determined, which are then recognized at nominal value. Transfers of capital assets from related parties are recorded at the carrying value. Works of art, historical treasures and collections are not recognized in the financial statements. {g} Employee Future Benefits Pension The College participates with other employers in the Local Authorities Pension Plan (LAPP). his pension plan is a multi-employer defined benefit pension plans that provide pensions for the College’s participating T employees based on years of service and earnings. he College does not have sufficient plan information on the LAPP to follow the standards for defined benefit accounting, T 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 he College provides other employment benefits to eligible employees; namely, self-insured short-term disability and other T 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. {h} Funds and Reserves Certain amounts, as approved by the Board of Governors, are set aside in accumulated surplus for future operating and capital purposes. Transfers to/from funds and reserves are an adjustment to the respective fund when approved.
Annual Report 2012-2013
Lakeland College Page 37
Notes to the Financial Statements (continued) 5 Cash and Cash Equivalents Cash and cash equivalents is composed of: 2013 2012 July 1, 2011 Cash $ (108,644) $ 1,827,804 $ 3,631,541 Money market funds, short term notes and 13,313,498 9,668,629 329,160 investment savings accounts $ 13,204,854 $ 11,496,433 $ 3,960,701 Cash equivalents include short term investments with a short maturity less than three months from the date of acquisition.
6 Portfolio Investments The composition, fair value, and annual market yields on portfolio investments are as follows. 2013 Level 1 Level 2 Level 3 Items at Cost or Amortized Cost: GICs Items at Fair Value: Bonds Canadian Bonds - 11,147,844 - Foreign Bonds - 302,244 - Equities Canadian equities - 4,727,663 - Foreign equities - 4,056,806 - Money Market - 441,706 -
-
20,676,263
Total Investments
-
20,676,263
$
$
$
- -
Page 38 Lakeland College
5,320,896 5,320,896 11,147,844 302,244 4,727,663 4,056,806 441,706 20,676,263
$ 25,997,159
2012 Level 1
Level 2
Level 3
Total
Items at Cost or Amortized Cost: GICs Items at Fair Value: Bonds Canadian Bonds - 10,850,270 - Foreign Bonds - 283,925 - Equities Canadian equities - 4,033,386 - Foreign equities - 3,122,628 - Money Market - 587,853 - Total Investments $
Total
-
18,878,062
-
18,878,062
$
$
5,243,713 5,243,713 10,850,270 283,925 4,033,386 3,122,628 587,853
-
18,878,062
-
24,121,775
$
Annual Report 2012-2013
Notes to the Financial Statements (continued) 6 Portfolio Investments (continued)
July 1, 2011
Level 1
Level 2
Level 3
Total
Items at Cost or Amortized Cost: GICs Items at Fair Value: Bonds Canadian Bonds - 12,571,796 - Foreign Bonds - 248,136 - Equities Canadian equities - 1,840,839 - Foreign equities - 3,162,326 - Money Market
-
Total Investments $
-
18,156,351
-
18,156,351
$
$
333,254
9,373,374 9,373,374 12,571,796 248,136 1,840,839 3,162,326
-
333,254
-
18,156,351
-
27,529,725
$
Level 1 – Quoted prices in active markets for identical assets or liabilities Level 2 – Market-based inputs other than quoted prices that are observable for the asset or liability either directly or indirectly Level 3 – Inputs for the asset or liability that are not based on observable market data; assumptions are based on the best internal and external information available and are most suitable and appropriate based on the type of financial instrument being valued in order to establish what the transaction price would have been on the measurement date in an arm’s length transaction. The average effective yields and the terms to maturity are as follows: • Money market funds: 1.30% (2012 - 1.20%); average term to maturity not more than 90 days (2012 - not more than 90 days) • Canadian bonds: 2.73% (2012 - 2.54%); average term to maturity of 6.93 years (2012 - 7.03 years) • International bonds: 2.32% (2012 - 4.08%); average term to maturity of 5.73 years (2012 - 10.97 years) The College has policies and procedures in place governing asset mix, diversification, exposure limits, credit quality and performance measurement. The College’s Sustainability Committee, a subcommittee of the Board of Governors, has delegated authority for oversight of the College’s investments. The Sustainability Committee meets regularly to monitor investments, to review investment manager performance, to ensure compliance with the College’s investment policy and to evaluate the continued appropriateness of the College’s investment policy. Unrealized gains and losses on endowment funds
2012
2013
July 1, 2011
Net unrealized gains/losses, beginning of year $ 246,921 $ 729,153 $ 443,614 Unrealized gains/losses attributable to: Portfolio investments 215,642 (68,144) 283,666 Amounts reclassified to statement of operations Portfolio investments (74,241) (414,088) 1,873 Change in unrealized gains/losses
141,401
(482,232)
Net unrealized gains/losses, end of year
388,321
246,921
Unrealized gains/losses allocated to deferred revenue
388,321
246,921
Annual Report 2012-2013
$
$
285,539 729,153
$ 729,153
Lakeland College Page 39
Notes to the Financial Statements (continued) 7 Financial Risk Management The College is exposed to the following risks: Market risk The College is exposed to market 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 following details the College’s portfolio sensitivity to a 2.5% increase or decrease in the market prices. The sensitivity rate is determined using the historical standard deviation for the total fund as determined by the investment advisor. At June 30, 2013, if market prices had a 2.5% (2012 - 2.5%; 2011 - 2.5%) increase or decrease with all other variables held constant, the increase or decrease in remeasurement gains and losses and endowment net assets - externally restricted contributions for the year would have been a total of $4,716 (2012 - $4,178; 2011 - $7,372). Credit risk The College is exposed to credit risk on investments arising from the potential failure of a counterparty, debtor or issuer to honour its contractual obligations. To manage this risk the College has established an investment policy with required minimum credit quality standards and issuer limits. The credit risk from accounts receivable is low as the majority of balances are due from government agencies and corporate sponsors. The credit risks on investments held are as follows:
Credit rating
2013 2012
AA
44.22%
44.29%
A
55.78%
55.71%
100.00%
100.00%
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 long-term liabilities is managed through fixed-risk agreements with Alberta Capital Finance Authority (note 11). The impact of a change in interest rates for various instruments is shown below: Fair value
+ or - 1% Variance
GIC
$
$ 5,320,896
-
+ or - 2% Variance $
-
+ or 3% Variance $
-
Bonds 11,450,088
3,101
6,202
9,303
3,101
$6,202
$9,303
$
Liquidity risk The College maintains a portfolio of short-term investments to manage short-term cash requirements.
Page 40 Lakeland College
Annual Report 2012-2013
Notes to the Financial Statements (continued) 8 Accounts Receivable
2013 2012 2011
Accounts receivable
$
2,006,259
$
2,563,188
$ 1,929,243
Accrued interest
17,674
19,346
94,176
Other receivables
-
+
-
Less: Provision for doubtful accounts
(29,412)
(25,654)
(7,982)
$
1,994,521
$
2,556,879
$ 2,015,437
Accounts Receivable are unsecured and non-interest bearing
9 Tangible Capital Assets
2013
Computer Building & Site Hardware Land Improvements Equipment & Software
Learning Resources
Total
Cost(a) Beginning of year $ 5,580,712 $ 119,719,132 $ 23,277,980 $ 17,452,423 $ 3,538,780 $ 169,569,027 Acquisitions(b) - 3,133,846 2,364,688 870,848 68,595 6,437,977 Disposals, including write-downs - - (332,815) (95,924) (68,360) (497,099)
$ 5,580,712 $ 122,852,977
$ 25,309,853 $ 18,227,347 $ 3,539,015 $ 175,509,905
Accumulated Amortization Beginning of year $ Amortization
- $ 66,093,967 $ 14,392,355 $ 13,364,805 $ 3,129,994 $ 96,981,122 - 3,005,209 1,988,127 1,240,713 65,996 6,300,045
Effects on disposals, including write-downs
-
$
-
$ 69,099,175
$ 16,112,586
$ 14,509,950
$ 3,127,630 $ 102,849,341
Net Book Value at June 30, 2013
$ 5,580,712
$ 53,753,802
$ 9,197,267
$ 3,717,398
$
Annual Report 2012-2013
-
(267,897)
(95,569)
(68,360)
(431,826)
411,385 $ 72,660,564
Lakeland College Page 41
Notes to the Financial Statements (continued) 9 Tangible Capital Assets (continued) 2012 Computer Building & Site Hardware & Software Land Improvements Equipment(1)
Learning Resources
Total
Cost(a) Beginning of year $ 5,580,712 $ 118,022,562 $ 20,710,359 $ 15,244,814 $ 3,449,479 $ 163,007,926 Acquisitions(b) - 1,696,569 3,172,874 2,341,761 110,187 7,321,391 Disposals, including write-downs - - (617,543) (134,151) (20,886) (772,579)
$ 5,580,712 $ 119,719,132
Accumulated Amortization Beginning of year $ Amortization
- $ -
Effects on disposals, including write-downs
-
$
- $ 66,093,967
Net Book Value at June 30, 2012
$ 5,580,712 $
$ 23,265,690 $ 17,452,424 $ 3,538,780 $ 169,556,737
63,713,011 $ 13,275,859 $ 11,779,124 $ 3,109,868 $ 91,877,862 2,380,956 1,649,449 1,716,866 41,012 5,788,283 -
53,625,165
(532,951)
(131,185)
(20,886)
(685,021)
$ 14,392,357
$ 13,364,805 $ 3,129,994 $ 96,981,124
$ 8,873,333
$ 4,087,618
$
408,786 $ 72,575,613
2011 Computer Building & Site Hardware Land Improvements Equipment & Software
Learning Resources
Total
Cost(a) Beginning of year $ 1,612,439 $ 113,043,907 $ 19,763,952 $ 14,471,282 $ 3,431,040 $ 152,322,620 Acquisitions(b) 3,968,273 4,978,655 1,259,432 998,840 63,772 11,268,972 Disposals, including write-downs - - (313,025) (225,309) (45,333) (583,667)
$ 5,580,712
$ 118,022,562
$ 20,710,359 $ 15,244,814 $ 3,449,479 $ 163,007,926
Accumulated Amortization Beginning of year $ Amortization
- $ 60,557,360 $ 12,061,581 $ 10,504,313 $ 3,084,620 $ 86,227,874 - 3,135,651 1,480,798 1,490,477 70,581 6,177,507
Effects on disposals, including write-downs
-
$
- $ 63,713,011
Net Book Value at June 30, 2011
$ 5,580,712
Page 42 Lakeland College
-
$ 54,309,552
(266,520)
(215,666)
(45,333)
(527,519)
$ 13,275,859
$ 11,779,124 $ 3,109,868 $ 91,877,862
$ 7,434,500
$ 3,465,690
$
339,611 $ 71,130,064 Annual Report 2012-2013
Notes to the Financial Statements (continued) 9 Tangible Capital Assets (continued) No interest was capitalized by the College in the 2012/13 year. (a) Cost includes work in progress at June 30, 2013 totalling $3,997,207 (2012 - $1,194,824; 2011 - $1,618,018) comprised of $3,656,154 in buildings and site improvements (2012 - $741,622; 2011 - $1,511,851) and $341,103 in equipment (2012 $463,202; 2011 - $106,167). These assets are not amortized as the assets are not yet available for use. (b) Acquisitions during the year include in-kind contributions in the amount of $4,346 (2012 - $53,297; 2011 - $29,710). (1) Equipment includes vehicles, office equipment and furniture, and other equipment.
10 Employee Future Benefit Liabilities Employee future benefit liabilities are comprised of the following:
2013
Academic Staff
Support Staff
Total
Post-employment benefit
$
-
$
260,000
$
260,000
$
-
$
260,000
$
260,000
2012
Academic Staff
Support Staff Total
Post-employment benefit
$
-
$
293,000
$
293,000
$
-
$
293,000
$
293,000
July 1, 2011
Academic Staff
Support Staff
Post-employment benefit
$
-
$
-
$
-
$
-
$
-
$
-
Total
A. Defined benefit plan accounted for on a defined contribution basis Local Authorities Pension Plan (LAPP) The LAPP is a multi-employer contributory defined benefit pension plan for support staff members and is accounted for on a defined contribution basis. At December 31, 2012, the LAPP reported an actuarial deficiency of $4,977,303,000 (2011 $4,639,390,000). The pension expense recorded in these financial statements is $2,745,733 (2012 - $2,542,369). B. Defined contribution The College provides other employment benefits to eligible employees which vest but do not accumulate; namely selfinsured short term disability and other post-employment benefits. Post-employment benefits consist of contractually-obligated termination benefits. These benefits are recorded as a liability when the event obligating the College occurs. The College’s total defined contribution expense for self-insured short-term disability and post-employment benefits was $260,000 (2012 $293,000, 2011 - $0).
Annual Report 2012-2013
Lakeland College Page 43
Notes to the Financial Statements (continued) 11 Debt Debt is measured at amortized cost and is comprised of the following:
2013
Maturity
Interest Rate
Amortized Cost Amortized Cost
2026
6.5%
$
1,680,000
$
1,800,000
$
1,680,000
$
1,800,000
Collateral
Debentures payable to Alberta Capital Finance Authority(1) Residences
2012
Collateral - (1) residence buildings with fair value of $2,527,909 Principal repayments in each of the next five years and thereafter are as follows: 2014 $ 120,000 2015 120,000 2016 120,000 2017 120,000 2018 120,000 Thereafter 1,080,000 $ 1,680,000 Interest expense on debt is $117,650 (2011 - $174,250) and is included in the statement of operations.
12 Deferred Revenue Deferred revenues are set aside for specific purposes as required either by legislation, regulation or agreement: 2013
Deferred research and special purpose
Unspent capital contributions
Spent capital contributions
Tuition and other fees
Total
Balance, beginning of year $ 4,646,937 $ 11,127,709 $ 48,856,334 $ 2,647,839 $ 67,278,819 Grants, tuition, donations received 7,839,985 1,244,031 - 15,604,941 24,688,956 Investment income 10,771 191,463 - - 202,234 Unearned capital acquisition transfers (646,069) (2,983,595) 3,629,663 - (0) Recognized as revenue (5,792,323) (155,334) (3,431,860) (15,546,095) (24,925,612) Unrealized investment income 141,401 - - - 141,401 Balance, end of year
$ 6,200,701
$
9,424,274
$ 49,054,137
$
2,706,685 $ 67,385,797
2012 Deferred research and special purpose
Unspent capital contributions
Spent capital contributions
Tuition and other fees
Total
Balance, beginning of year $ 5,163,246 $ 6,596,400 $ Grants, tuition, donations received 6,233,335 6,302,487 Investment income 14,163 165,264 Unearned capital acquisition transfers (935,245) (1,853,227) Recognized as revenue (5,346,332) (83,206) Unrealized investment income (482,232) -
48,971,742 $ 2,984,026 $ 63,715,415 - 14,661,529 27,197,351 - - 179,427 2,788,472 - (2,903,880) (14,997,716) (23,331,133) - - (482,232)
Balance, end of year
48,856,334 $
Page 44 Lakeland College
$ 4,646,937
$ 11,127,718
$
2,647,839 $ 67,278,828 Annual Report 2012-2013
Notes to the Financial Statements (continued) 13 Endowments Endowments consist of externally restricted donations received by the College and internal allocations by the College’s Board of Governors, the principal of which is required to be maintained intact in perpetuity. Investment income earned on endowments must be used in accordance with the various purposes established by the donors or the Board of Governors. Benefactors as well as College policy stipulate that the economic value of the endowments must be protected by limiting the amount of income that may be expended and reinvesting unexpended income. 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.
The composition of endowments is as follows:
June 30, 2013
June 30, 2012
Balance, beginning of year $ Endowment contributions Internal transfer to (from) endowments Investment gain (loss) realized Balance, end of year $
5,300,921 $ 329,740 (250) 692 5,631,103 $
4,959,625 183,429 157,220 647 5,300,921
Cumulative contributions Cumulative capitalized income
5,629,764 1,339
5,300,274 647
$ 5,631,103
$ 5,300,921
14 Accumulated Surplus The composition of accumulated surplus is as follows:
Unrestricted surplus Balance as at July 1, 2011 Operating surplus Transfers Net investment in capital assets Expenditures of internally restricted net assets Balance as at June 30, 2012 Operating surplus Transfers Net investment in capital assets Expenditures of internally restricted net assets Balance as at June 30, 2013 Annual Report 2012-2013
3,180,523
Reserves for future purpose
Surplus invested in tangible capital assets
Accumulated operating surplus
19,778,825
29,372,104
6,412,756
2,355,510 - 2,355,510 (651,133) 651,133 (2,139,988) 2,139,988 1,240,022 (1,240,022) 3,984,934
5,823,867
21,918,813
31,727,614
2,081,300 (5,477,550) 5,477,550 1,200,331 (1,200,331) 781,225 (781,225)
2,081,300 -
2,570,240 10,520,192
20,718,482 33,808,914
Lakeland College Page 45
Notes to the Financial Statements (continued) 14 Accumulated Surplus (continued) Reserves for future purpose represent amounts set aside 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. Reserves for future purposes are summarized as follows: Appropriations from (returned to) unrestricted net assets
Balance at beginning of year
Net additions (or disbursements) during the year
Balance at end of year
(6,573) - -
67,687 6,400,000 1,700,000
Appropriations for capital activities Academic equipment Heavy oil petroleum facility Small animal clinic facility
74,260 3,000,000 -
3,074,260 5,100,000
Appropriations for operating activities Major maintenance Delivery initiatives
2,593,758 155,849
352,550 25,000
(689,588) (85,065)
2,256,720 95,784
2,749,607
377,550
(774,653)
2,352,505
(781,225)
$ 10,520,192
Total appropriations
$
5,823,867
- 3,400,000 1,700,000
$
5,477,550
$
(6,573) 8,167,687
15 Contingent Liabilities (a) The College is a defendant in a number of legal proceedings. While the ultimate outcome and liability of these proceedings cannot be reasonably estimated at this time, the College believes that any settlement will not have a material adverse effect on the financial position or the results of operations of the College. Administration has concluded that none of the claims meet the criteria for being recorded under PSAS. (b) The College has identified potential asset retirement obligations related to the existence of asbestos in a number of its facilities. Although not a current health hazard, upon renovation or demolition of these facilities, the College may be required to take appropriate remediation procedures to remove the asbestos. As the College has no legal obligation to remove the asbestos in these facilities as long as the asbestos is contained and does not pose a public health risk, the fair value of the obligation cannot be reasonably estimated due to the indeterminate timing and scope of the removal. The asset retirement obligations for these assets will be recorded in the period in which there is certainty that the capital project will proceed and there is sufficient information to estimate fair value of the obligation.
16 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.
2013
2012
July 1, 2011
Service contracts $ 925,967 $ Capital projects 788,657 Information systems and technology 1,981,611 Long-term leases 51,100
1,159,833 $ 1,502,783 2,499,115 -
1,275,946 181,772 2,885,975 16,200
Total
5,161,731
4,359,893
Page 46 Lakeland College
$ 3,747,335
$
$
Annual Report 2012-2013
Notes to the Financial Statements (continued) 16 Contractual Obligations (continued) The estimated aggregate amounts payable for the unexpired terms of these contractual obligations are as follows: Information Total systems and Service Capital projects Long-term technology contracts leases 2014 $ 528,281 $ 788,657 $ 713,825 $ 51,100 $ 2,081,863 2015 205,499 - 675,804 881,303 2016 157,854 - 314,183 472,037 2017 34,333 - 277,799 312,132 2018 - - Thereafter -
$ 925,967 $
788,657
$ 1,981,611
$ 51,100
$ 3,747,335
Included in service contracts are electricity contracts in order to manage its exposure to the volatility in the electrical industry. The College has entered into a contract to fix a portion of its electrical cost at an average of $56.63 per megawatt hour that expires on December 31, 2015.
17 Investment Income
2013 2012
Income (loss) on investments held for endowments $ Income (loss) on other investments
211,306 $ 769,468
176,224 661,673
980,774 837,897 Amounts deferred Capitalized to endowment investments Investment income
$
(202,233) (692) 777,849
$
(179,428) (647) 657,822
18 Expense by Object The following is a summary of expense by object:
Budget
Salaries and benefits $ Material, supplies and services Cost of goods sold Amortization of capital assets Utilities Scholarships and bursaries
Annual Report 2012-2013
2012
2013 Actual
39,243,080 $ 41,123,142 $ 37,704,005 12,687,588 14,406,718 15,249,440 1,701,067 1,252,458 1,879,373 6,185,268 6,300,407 5,789,015 1,988,465 1,985,534 1,832,255 419,111 609,455 492,560
$ 62,224,579 $ 65,677,714
$ 62,946,648
Lakeland College Page 47
Notes to the Financial Statements (continued) 19 Related Party Transactions The College operates under the authority and statutes of the Province of Alberta. Transactions and balances between the College and the Government of Alberta (GOA) are measured at the exchange amount and summarized below.
2013 2012
Grants from GOA Enterprise and Advanced Education Operating $ Capital Alberta Innovates Technology Futures Other
32,307,055 $ 3,018,774 100,000 5,318,222
31,312,419 8,032,425 250,000 3,639,293
Total Enterprise and Advanced Education
$
40,744,050
$
43,234,137
Other Post-secondary Institutions
$
$
-
Other GOA departments and agencies Alberta Agriculture $ Alberta Environment Alberta Health Alberta Culture and Community Spirit Alberta Human Services Alberta Municipal Affairs Alberta Sport, Recreation, Parks and Wildlife
500 $ - 201,398 41,452 19,360 - 64,651
500 (4,968) 184,865 6,747 24,328 200,000
Total other GOA departments and agencies
327,361
411,472
$
Total grants received $ Less: deferred revenue
$ 30,572,648
33,147 73,090
$ 106,237
Accounts Payable Other Post-secondary Institutions Other GOA departments and agencies
$
41,006,760 $ 43,645,609 (1,415,711) (13,072,961)
$ 39,591,049
Accounts Receivable Other Post-secondary Institutions Other GOA departments and agencies
-
$ 150,728
19,076 1,221
$ 20,297
150,728
43,547
$ 43,547
The College has liabilities with Alberta Capital Finance Authority as described in note 11.
Page 48 Lakeland College
Annual Report 2012-2013
Notes to the Financial Statements (continued) 20 Salary and Employee Benefits Treasury Board Directive 12-98 under the Financial Administration Act of the Province of Alberta requires the disclosure of certain salary and employee benefits information.
2013 2012
Base salary
Governance Chair of Board of Governors $ Members of Board of Governors
(1)
Other cash Other non-cash (2) benefits benefits(3) Total Total
- $ 20,620 $ - 22,446
- $ 20,620 356 22,802
- 43,066 Executive - President(4) 260,000 Vice-Presidents VP Academics, Research & Innovation 186,500 - VP Student & College Services(5) 92,000 214,667 VP Student Services & Advancement(6) 168,750 - VP Enterprise & Sustainability(7) 43,500 -
$ 18,734 35,835
356 43,422
54,569
29,533 289,533
573,680
29,575 216,075 15,189 321,856
214,215 212,180
13,985 182,735 7,740 51,240
162,237 -
750,750 214,667 96,022 1,061,439 1,162,312
$ 750,750
$ 257,733
$
96,378
$ 1,104,861
$ 1,216,881
(1) Base salary includes pensionable base pay. (2) Other cash benefits includes honoraria and other non-salary payments. (3) Employer’s share of all employee benefits and contributions or payments made on behalf of employees including pension, health care, dental coverage, vision coverage, out of country medical benefits, group life insurance, accidental disability and dismemberment insurance, long and short term disability plan, professional memberships and tuition. (4) Includes 12 month exit payment negotiated in July 1, 2011 contract. (5) Position ended January 2013. (6) Position title changed from VP Advancement to VP Student Services and Advancement in January 2013. (7) Position created April 2013.
21 Budget Figures Budgeted figures have been provided for comparison purposes and have been derived from the College’s Comprehensive Institutional Plan as approved by the Board of Governors.
22 Comparative Figures Certain 2012 figures have been reclassified to conform to the presentation adopted in the 2013 financial statements.
23 Approval of Financial Statements The financial statements were approved by the Board of Governors of Lakeland College.
24 Compliance with the Charitable Fundraising Act and Regulation The following disclosure is prepared in accordance with the Charitable Fundraising Act and Charitable Fundraising Regulation of the Province of Alberta. The total non-personnel expenses incurred for the purpose of soliciting contributions was $267,041 (2012 $111,496; 2011 - $93,285). The total amount paid as remuneration to employees of the College whose principal duties involve fundraising was $546,008 (2012 - $587,247; 2011 - $413,407). Annual Report 2012-2013
Lakeland College Page 49
Lakeland College Schedule of Transition to Public Sector Accounting Standards for the year ended June 30, 2013 a) Reconciliation of Opening Statement of Financial Position July 1, 2011 July 1, 2011 GAAP(1) Capital assets Employee future Cash and cash Other Total PSAS benefits equivalents adjustments adjustments ASSETS Cash and cash equivalents(2) Investments(2) Accounts receivable(3) Inventories and prepaid expenses Long-term investments Other long-term assets(3) Capital assets(4)
8,244,220 5,089,855 2,006,172 2,432,384 18,156,351 9,265 71,681,447
- - - - - - (551,383)
- - - - - - -
(4,283,519) 4,283,519 - - - - -
- 18,156,351 9,265 - (18,156,351) (9,265) -
(4,283,519) 3,960,701 22,439,870 27,529,725 9,265 2,015,437 - 2,432,384 (18,156,351) (9,265) (551,383) 71,130,064
107,619,694
(551,383)
-
-
-
(551,383) 107,068,311
LIABILITIES AND NET ASSETS Accounts payable and accrued liabilities Employee future benefit liabilities Debt Deferred revenue(5) Deferred contributions(5) Deferred capital contributions(5) Unamortized deferred capital contributions(5)
48,971,742
72,425,423 - - - - - 72,425,423
Net Assets Unrestricted Accumulated excess of revenue over expenses(4) Accumulated net unrealized gains and losses on investments(3) Internally restricted Investment in capital assets Endowments
6,699,856 - - - - - 2,379,498 - - 2,884,852 - - 4,873,075 - - 6,616,400 - - -
3,180,524 (551,383)
-
-
311,158 - - 6,412,756 - 20,330,207 - - 4,959,626 - - 107,619,694 (551,383)
-
- - - 6,699,856 - - - - - - 2,379,498 - 60,461,217 60,461,217 63,346,069 - (4,873,075) (4,873,075) - (6,616,400) (6,616,400) - (48,971,742) (48,971,742)
-
-
- (551,383) 2,629,141
- - - 311,158 - - - 6,412,756 - - - 20,330,207 - - - 4,959,626 -
-
(551,383) 107,068,311
(1) Canadian Generally Accepted Accounting Principles (2) Reclassify cash equivalents and long-term investments to portfolio investments (3) Reclassify other long-term receivable into accounts receivable (4) Remove intangible assets from capital assets (5) Reclassify deferred contributions, deferred capital contributions, and unamortized deferred capital contributions as deferred revenue
Page 50 Lakeland College
Annual Report 2012-2013
Lakeland College Schedule of Transition to Public Sector Accounting Standards for the year ended June 30, 2013 (continued) b) Reconciliation of June 30, 2012 Statement of Financial Position June 30, 2012 June 30, 2012 GAAP(1) ASSETS Cash and cash equivalents(2) Investments(2) Accounts receivable(3) Inventories and prepaid expenses Long-term investments Other long-term assets(3) Tangible capital assets(4)
Capital assets Employee future Cash and cash benefits equivalents
Other adjustments
Total adjustments
PSAS
11,740,146 5,000,000 2,547,583 2,675,851 18,878,062 9,296 73,131,296
- - - - - - (555,683)
- - - - - - -
(243,713) 243,713 - - - - -
- 18,878,062 9,296 - (18,878,062) (9,296) -
(243,713) 11,496,433 19,121,775 24,121,775 9,296 2,556,879 - 2,675,851 (18,878,062) (9,296) (555,683) 72,575,613
113,982,234
(555,683)
-
-
-
(555,682) 113,426,552
LIABILITIES AND NET ASSETS Accounts payable and accrued liabilities(6) 6,973,105 - (293,000) (6) Employee future benefit liabilities - - 293,000 Debt 1,800,000 - - Deferred revenue(4) (5) (7) 2,594,968 (4,767) - Deferred contributions(5) 4,699,816 - - (5) Deferred capital contributions 11,147,710 - - Unamortized deferred capital contributions(5) 48,861,101 - -
- - (293,000) 6,680,105 - - 293,000 293,000 - - - 1,800,000 - 64,688,627 64,683,860 67,278,828 - (4,699,816) (4,699,816) - (11,147,710) (11,147,710) -
-
76,076,700
(4,767)
-
- (48,861,101) (48,861,101) (20,000)
-
(24,767) 76,051,933
Net Assets Unrestricted Accumulated excess of revenue over expenses(4) 3,964,468 467 - Accumulated net unrealized gains and losses on investments(3) 346,083 - - Internally restricted 5,823,867 - Investment in capital assets 22,470,195 - - Endowments 5,300,921 - -
- - - 346,083 - - - 5,823,867 - - - 22,470,195 - - - 5,300,921
-
113,982,234
(4,300)
-
- (531,382) (530,915) 3,433,553
(551,382)
(555,682) 113,426,552
(1) Canadian Generally Accepted Accounting Principles (2) Reclassify cash equivalents and long-term investments to portfolio investments (3) Reclassify other long-term receivable into accounts receivable (4) Remove intangible assets from capital assets (5) Reclassify deferred contributions, deferred capital contributions, and unamortized deferred capital contributions as deferred revenue (6) Reclassify employee future benefit from accounts payable (7) Reclassify deferred revenue as revenue
Annual Report 2012-2013
Lakeland College Page 51
Lakeland College Schedule of Transition to Public Sector Accounting Standards for the year ended June 30, 2013 (continued) c) Reconciliation of 2012 Statement of Operations June 30, 2012 June 30, 2012 GAAP(1) REVENUE Government of Alberta grants (note 19)(8) (9) Federal and other government grants(7) (8) Student tuition and fees Sales of services and products(9) Donations and other grants(8) Investment income (note 17) Amortization of deferred capital contributions (note 12)(4)
(in thousands)
Capital assets Employee future Cash and cash benefits equivalents
Other adjustments
Total adjustments
PSAS
35,700,501
-
-
-
2,370,121
2,370,121 38,070,622
1,984,978 12,408,902 11,321,833 304,241 657,822
- - - - -
- - - - -
- - - - -
177,311 - 62,303 314,144 -
177,311 2,162,289 - 12,408,902 62,303 11,384,136 314,144 618,385 - 657,822
2,903,880
-
-
-
(2,903,880)
65,282,157
-
-
-
(2,903,880)
20,000
-
20,000 65,302,157
EXPENSE Instructor and training 27,440,742 - - Academic & student support 11,136,897 - - Facility operations and maintenance 9,353,387 - - Institutional support(4) 7,841,405 (467) - Ancillary services 6,326,781 - - Sponsored research & special purpose 847,901 - -
-
-
-
-
-
-
-
20,000
20,467 2,355,510
467
-
20,000
20,467 2,355.510
Excess revenue over expense(4) (7)
62,947,114 2,335,043
Change in operating surplus(4) (7) 2,335,043 Accumulated operating surplus (deficit), beginning of year 29,372,104 Accumulated operating surplus (deficit), end of year $31,707,148
(467) 467
- - - 27,440,742 - - - 11,136,897 - - - 9,353,387 - - (467) 7,840,939 - - - 6,326,781 -
847,901
(467) 62,946,647
-
-
-
-
- 29,372,104
$ 467
$ -
$ -
$ 20,000
$ 20,467 $ 31,727,614
(1) Canadian Generally Accepted Accounting Principles (4) Remove intangible assets and related amortization from tangible capital assets (7) Reclassify deferred revenue as revenue (8) Reclassify amortization of deferred capital contributions as grant revenue (9) Reclassify incorrectly recorded grant revenue as contract revenue
Page 52 Lakeland College
Annual Report 2012-2013
Vermilion Campus 5707 College Drive Vermilion, Alberta T9X 1K5
Lloydminster Campus 2602 59 Avenue Lloydminster, Alberta T9V 3N7 1 800 661 6490 www.lakelandcollege.ca
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