Annual Report 2010/11

About Grant MacEwanUniversityBoard of GovernorsChairJohn Day, QCPresidentDr. Paul J. Byrne (to June 30, 2011)Dr. David W. Atkinson (effective July 1, 2011)Students’ Association memberKassie RussellMacEwan Staff Association memberShawn McAuleyMacEwan Faculty Association memberDr. Chaldeans MensahPublic membersWilliam (Willie) GrieveJohn B. MitchellDr. William (Bill) JohnsonOryssia LennieGerry Martins, CGAElizabeth Hurley, CMCCarolyn Graham, FCAMission StatementGrant MacEwan University is a vibrant, innovativeeducational institution focused on student learning.MacEwan fosters student success and studentcontributions within local, national and internationalcommunities. Teaching and learning are centralto the academic endeavour, which is informedand enriched by research and scholarly pursuitsof highly engaged faculty and staff. MacEwanstrives to exemplify the values of respect, integrity,citizenship and environmental stewardship throughteaching, learning, scholarship, research andservice.Approved by the Grant MacEwan College Board of Governors,June 12, 2008 (Motion 03-6-12-2007/08) Name Changed byOrder-in-Council #481/1009, A. R. 254/2009 September 24,2009 Approved by Board of Governors’ Motion #01-10-8-2009/108 grant Macewan university

MandateGrant MacEwan University is a public, board-governedBaccalaureate and Applied Studies Institution withinAlberta’s post-secondary system, operating under theauthority of the public colleges section of the Post-Secondary Learning Act. The university was officiallyrenamed Grant MacEwan University by Order inCouncil on September 24, 2009.Grant MacEwan University focuses on four primarytypes of programming:• Baccalaureate degrees that prepare learners foremployment and for graduate studies.• Certificate, diploma and applied degree programsthat prepare learners for entry to careers andemployment, and for continued study in othercredential areas.• University transfer programs that prepare learnersfor degree completion at other degree-grantinginstitutions.• Preparatory programming that prepares learnersfor success in further post-secondary studies.Grant MacEwan University serves a diversity oflearners in the following major areas of study: liberalarts, business/commerce, communications, education,engineering, health and human services, performingand visual arts, physical education and science. Theuniversity’s innovative approaches to program deliveryare designed to maximize graduates’ opportunities toadvance their careers and further their education.and high quality student support. From prospectivelearners to alumni, students are provided with a widerange of services and support systems, residence andcampus life activities, and intercollegiate and intramuralsports programs. The university’s inclusive governancestructure provides many opportunities for leadershipdevelopment that enable learners to develop skillsto enhance their careers and future post-secondaryendeavours.Grant MacEwan University supports a culture ofresearch, scholarship and creative activity to informpedagogy, support economic and communitydevelopment, enhance learning, create opportunitiesfor innovation, and foster the application and creationof new knowledge. By incorporating a global focus inits research and teaching, serving a diverse range ofCanadian and international faculty and students, andproviding opportunities for knowledge disseminationand study abroad, the university aims to provide allresearchers and learners with opportunities to developthe skills and attitudes to function successfully in aninterconnected world economy and society.Grant MacEwan University serves primarily the greaterEdmonton region and northern Alberta by respondingto the learning needs of business, industry, governmentand communities. Through distance delivery andeCampusAlberta, the university extends educationalaccess across Canada and internationally. As astrong partner in Campus Alberta, Grant MacEwanUniversity collaborates with stakeholders and partnersto advance student mobility, conduct applied research,develop shared services and deliver continuingprofessional education and customized training.Approved by Grant MacEwan University Board of GovernorsJune 18, 2010 Board Motion: 02-06-18-2009/10Approved by the Minister of Advanced Education & Technology,August 19, 2010Grant MacEwan University emphasizes a learnercentredapproach to the provision of its programsand services. The university fosters student successthrough a focus on teaching excellence, interactionamong faculty and students, flexible learning deliveryAnnual Report 2010/2011 9

10 grant Macewan universityOperational Overview

Major AccomplishmentsPresidential search completedUpon the announcement of President PaulByrne’s retirement in February 2010, theuniversity embarked on a presidential search in2010/11. Through consultation with internal andexternal stakeholders, the Presidential SearchCommittee created a Position and CandidateProfile for candidate assessment. The interviewprocess took place in December and January.In February 2011, the university announced thesuccessful candidate for presidency was Dr.David W. Atkinson, who would become MacEwanUniversity’s fourth president in July 2011. Dr.Atkinson’s career in Canada’s post-secondarysystem has included presidencies with BrockUniversity and Carleton University, and mostrecently Kwantlen Polytechnic University in B.C.New Board chairRecently retired from his position as seniorlawyer and partner for law firm Fraser MilnerCasgrain LLP, local commercial real estate lawyerJohn Day assumed the role of chair of MacEwanUniversity’s Board of Governors in July 2010.Mr. Day has been actively involved in manycommunity endeavours, including servingas board member (for the Royal AlexandraHospital Foundation, the Edmonton EconomicDevelopment Authority and Edmonton AirServices), volunteer alumnus (for the University ofAlberta) and chairman of the board (for MarmotBasin and Mountain Park Lodges).New programs start accepting applicationsIn fall 2010, applications opened for three newprograms within the Centre for the Arts andCommunications. The Bachelor of Music in Jazzand Contemporary Popular Music, the Bachelorof Communication Studies, and the Arts andCultural Management diploma established astrong profile for Canada’s arts and culturalcircles, and moves the institution forward in itsplans for a new arts centre to be located on thedowntown City Centre Campus as part of theuniversity’s Single Sustainable Campus Plan.The university also introduced the accountingmajor in the Bachelor of Commerce, as well asthe Cardiac Care Nursing certificate within theCentre for Professional Nursing Education.Degree achievements and enhancementsSpring 2011 marked the graduation of the firstclass of 107 students in the Bachelor of Sciencein Nursing degree program. The universitydeveloped a proposal for a psychiatric nursingdegree using the current Psychiatric Nursingdiploma as a foundation.In 2010/11 MacEwan University signed newMemoranda of Understanding (MOU): withOlds College to offer the first year of the newBachelor of Science degree, and with GrandePrairie Regional College for degree completion inscience, arts and business.The construction of five new science labs wascompleted. The labs include an aquatics facility,tissue culture lab, microscopy suite and nuclearmagnetic resonance facility.These initiatives are described in detail within theprogress report portion of this publication, under“Academic Programming and Delivery”.New agreements open study abroadopportunitiesIn 2010/11, the university also signed exchangeagreements with international institutionsincluding Lille Catholic University (France) andDan Kook University (Korea). During the year,more than 200 students participated in studyabroad programs such as study tours andformal exchanges. Forty-two students studiedat international partner institutions for periodsranging from five weeks to a full term. In addition,Bachelor of Child and Youth Care studentstravelled to Ireland for 10 days in February aspart of a class exchange.Implementation of PeopleSoft EnterpriseResource Planning (ERP) systemMacEwan University launched a new ERP systemwith an initial implementation in Finance andHuman Resources. The third phase—the studentsystem component (Campus Solutions)—wasimplemented in summer 2010. The web-basedAnnual Report 2010/2011 11

PeopleSoft program has enhanced systemaccess and functionality across the universitycommunity. These new processes, controlsand technologies shift the institution from atransactional business approach towards abusiness intelligence model, allowing for morein-depth analysis and decision support.The university began sustainment initiativesin fall 2011 to ensure ongoing development,training and support. During this time period,an IT control framework was established withnew governance structures to guide the futuredevelopment of the new computing architecture.Website renewal projectThe university’s website, MacEwan.ca, was thefocus of a comprehensive renewal process thatsaw the introduction of new hardware (servers),new software (content management system)and a complete review and reconstruction ofthe site’s navigation structure and page content.The main purpose of the website is to marketMacEwan University and all it has to offer toprospective students: to “get the right studentinto the right program.”The resulting product is a simple, unclutteredwebsite that offers consistent navigation anda fresh, updated design—all of which combineto make it easy for potential students to findprogram and course information. Led by theOffice of Communications and Marketing andthe IT Web Services team, the process wasa collaborative effort that heavily involvedacademic and administrative areas from acrossthe university.University Service Centre opens forbusinessMacEwan University launched its SingleSustainable Campus Plan with the constructionof the University Service Centre (USC) onthe top level of the City Centre Campus westparkade. This 5,000 square-meter, state-of-theartspace opened April 2011, and houses 240administrative staff. By consolidating variousadministrative departments from across theuniversity, space at City Centre Campus wasfreed up to accommodate expansion of studentprogramming. Designed to LEED Silver Standardspecifications, the new facility is an exampleof the institution’s ongoing commitment tosustainability, using less energy and water in itsoperations.12 grant Macewan university

Creation of Corporate Services departmentaddresses risk managementAn Enterprise Risk Management (ERM)program was created in response to a 2009recommendation from the Office of the AuditorGeneral (OAG) to implement a comprehensiverisk management process covering all key areasof planning and operations for the institution. Thisprogram now forms part of a new departmentwithin University Services called CorporateServices, which has a mandate to help educate,support and assist all areas of the university inidentifying, assessing and managing key riskexposures.Work began with the Board and ExecutiveManagement to prepare MacEwan University’sfirst strategic risk register and annualassessment. Risk management was includedin a number of process improvement initiativesfor Corporate Services. They have formedpart of the tools included in the new StrategicProject Management Office, which is responsiblefor supporting and monitoring project riskmanagement. Work is close to completionfor introducing a more comprehensive riskmanagement approach that is aligned withefforts to improve process and projectmanagement across the university.Developments in university governanceThe academic year 2010/11 marked the secondfull year of Academic Governance Council (AGC)as the university’s senior academic decisionmakingbody. Academic Governance Councilreceived reviews from the MacEwan UniversityCurriculum Committee recommending: newprograms (including the Bachelor of PsychiatricNursing and majors within the Bachelor ofCommerce program, in human resourcesmanagement and marketing); program changes;program suspensions; and program admissioncriteria. These recommendations were debatedand approved by Academic Governance Council.Academic Governance Council also approvedten revised academic policies.In addition, Academic Governance Council andits committees were involved in developingkey areas of academic governance, includingacademic standards, faculty and school councils,a new vision for the university, and review of theuniversity’s Comprehensive Institutional Plan.MacEwan University measures upDuring 2010/11, MacEwan University receivedvery positive results on three Canada-wideAnnual Report 2010/2011 13

surveys of baccalaureate students. In theCanadian University Survey Consortium(CUSC) survey of first-year students, MacEwanUniversity students expressed very high levelsof satisfaction with their educational experience,including class size, quality of teaching, and theirchoice of university. The university’s results notonly compared positively against the universitiesin its comparator group of 20 similar-sizedinstitutions, but also with all 39 participatinguniversities.In the National Survey on Student Engagement(NSSE), ratings by first- and fourth-year studentswere fully comparable with 13 similar Canadianuniversities on measures relating to level ofacademic challenge, active and collaborativelearning, student-faculty interaction, enrichingeducational experience and supportive campusenvironment. In the Globe & Mail’s 2011Canadian University Report, the universityranked first among its comparator group of 20universities on 5 of 17 measures—including mostsatisfied students, student-faculty interaction,and quality of teaching—and among the top fiveon all measures.a year ahead of plan. Campaign achievementsincluded the creation of nearly 2,500 new studentawards, establishment of a Student SuccessBursary endowment and a Health and NursingTechnology endowment. Between 2006/07 and2010/11, the university’s pooled endowment fundnearly tripled, from $13.5 million to $40.2 million.The Community Relations and FundDevelopment department continued to enhancecommunity investment in the university with aparticular focus on supporting student awards,facilities development, and academic initiatives.Over the next 10 years, the university will embarkon a campaign to raise $90 million in support ofthose three key areas.More detailed information can be found withinthe progress report portion of this publication,under “Community Investment.”Community relations and fund developmentThe university’s “Front and Centre” campaignreached its $40 million goal in September 2010,14 grant Macewan university

Core ProgramsPrograms 2008 / 2009 2009 / 2010 2010 / 2011Baccalaureate degrees* 19 19 24Applied degrees 4 3 3Degree transfer programs 7 5 5Career diplomas 37 37 36Post-diploma certificates 3 4 4Career certificates 10 10 11Other credit programs / projects 4 4 4Non-credit courses offered 1,703 1,395 1,468*Updated degree numbers reflect the number of individual degree majors as approved by Campus Alberta Quality CouncilEnrolment, Facility and Staffing InformationEnrolments and Applications 2008 / 2009 2009 / 2010 2010 / 2011Credit full-load equivalents (FLE) 10,212 11,221 11,721Credit student headcount 18,235 18,739 19,501Non-credit student headcount 16,733 16,279 16,010International student headcount 759 855 1,020Program applications (total) 16,539 18,441 18,503Program applications (per quota place) 2.5 3.5 2.8Facilities 2008 / 2009 2009 / 2010 2010 / 2011Total supported space (m2) 151,540 151,540 158,579Student capacity (FLE) 11,903 11,832 11,553% of capacity utilized 80.5% 90.0% 93.1%Staffing 2008 / 2009 2009 / 2010 2010 / 2011Credit faculty / instructional (FTE) 670 714 738Non-credit instructional (FTE) 66 64 73Non-academic staff (FTE) 755 772 774Administration (FTE) 121 131 142Total staff (FTE) 1,612 1,681 1,727Total staff (Headcount) 3,812 3,166 3,250Student / faculty ratio (FLE / FTE fac.) 15.2 15.7 15.9Annual Report 2010/2011 15

Progress Report on Achievement ofStrategic Directions and SupportingObjectives, 2010/11 – 2014/1516 grant Macewan university

AcademicProgramming andDeliveryStrategic Direction: Develop andadapt academic programs anddelivery mechanisms as appropriateto a comprehensive undergraduateuniversity.Objectives:Develop an implementation plan for academicprograms to ensure university development andinvestments are effectively utilized to optimizelearner access.• Implement the Bachelor of Music in Jazz andContemporary Popular Music and the Bachelorof Communication Studies degrees.Considerable effort was applied to finalizingthe curriculum and syllabi in preparation for thefirst intake into the Bachelor of CommunicationStudies and the Bachelor of Music degrees infall 2011. In order to provide space for studentsas they progress through the music degree,programming for the Bachelor of CommunicationStudies will move from the Centre for the Artsand Communications to the City Centre Campusin 2012.• Complete the implementation of approvedprograms. The Bachelor of Commerce degree expandedits number of majors. The accounting majorwas implemented in September 2011, andhuman resources management and marketingmajors have been developed and proposed forSeptember 2012. These majors are intendedto increase choice for business students, asstudent demand for transfer into the Bachelorof Commerce program now outpaces availablespaces.The Bachelor of Arts began developing minorsin Spanish and French for 2013 and in honourshumanities for 2014.• Review and recommend new academicprogramming for the future.A proposal was developed for a psychiatricnursing degree that builds on the success of thePsychiatric Nursing diploma program offeredin both Ponoka and Edmonton. The proposeddegree offers graduates the advantage of anexpanded knowledge base, increased scopeof practice, and a greater range of careeropportunities. Program delivery is based on avariety of distance and online learning strategiesto allow for greater levels of student access.Within the context of the current freeze on newprogram funding, the proposal is based on acost-recovery model.The new Arts and Cultural Managementdiploma was developed for a fall 2011 launch.This diploma represents a comprehensivelearning pathway offering a certificate exit anda delivery modality that offers on-campus andeCampusAlberta access.In supporting academic programming, theuniversity approved an investment of morethan $1 million over the next several years toenhance digital and print collections for students.In addition, significant investments were madeto upgrade wireless network services forstudents, and funding was approved to upgradeand enhance the functionality and accessto asynchronous and synchronous learningsystems. The university has strengthenedthe role of workplace integrated learning andleveraging new endowments and partnershipsto support an expanded program of visiting andscholarly chairs.Develop mechanisms and strategies to assessand address Albertans’ changing domestic andinternational learning.• Implement a horizontal curriculum modelthat facilitates access through block transfer,bridging and laddering strategies.Annual Report 2010/2011 17

The university has developed a range of diplomato-degreecompletion opportunities, particularly inthe School of Business. This work is now extendingto internal partnerships with other schools andfaculties. The Management Studies and Arts andCultural Management diplomas developed anarticulation agreement whereby students fromeach program have a facilitated transfer path to theother program. A certificate-to-diploma pathwaycurriculum was also developed during 2010/11 todesignate the Special Needs Educational Assistantcertificate as an admission requirement into theDisability Studies: Leadership and Communitydiploma.An agreement was reached with Olds Collegeto offer the first year of the Bachelor of Sciencedegree at the college, beginning in fall 2011. Thispartnership is the university’s first extension ofscience degree access to rural Alberta.The university continues to pursue degreecompletion opportunities for its diploma studentswith Thompson Rivers University (TRU). In2010/11, a transfer agreement was reached forMacEwan University Travel diploma graduatesto transfer to TRU’s Bachelor of TourismManagement.• Increase online and full credential offeringsthrough eCampusAlberta.In 2010/2011 the university experienced a 55per cent enrollment increase in courses offeredthrough eCampusAlberta. This was a resultof increasing the number of available onlinecourses, and increased registration in existingcourses. The development of online credentialscontinues, with plans to offer a variety ofcompletion opportunities for programs such asthe Bachelor of Commerce degree and Arts andCultural Management diploma. An expandedselection of online undergraduate courses in thearts and sciences also contributed to this growthin enrolment.• Implement a university model for distributededucation.A Distance and Distributed Education Committeewas mandated to provide oversight to onlineeducation activities across the university. Policy,operational issues, development priorities, andquality assurance are all considerations for thecommittee, which provides an annual work planand report to the Academic Governance Council.An annual planning and approval process isbeing established to coordinate and prioritizeboth the development of new courses andcredentials, and the maintenance of the existinginventory. The university has fully adopted theeCampusAlberta Essential Quality Standards(EQS) as part of the standard developmentmethodology. External peer review is part of EQSprocess.Scholarship, Researchand Artistic CreationStrategic Direction: Expand thecapacity for and profile of researchand scholarly activity at the university.Objectives:Raise the profile of research, scholarly andcreative activity at the university (2010–15).• Increase faculty engagement in externallypeer-reviewed research.In support of this objective, the university’sResearch Office, in collaboration with FacultyDevelopment and Faculty Commons:o hosted sessions on external fundingopportunitieso provided information on the Faculty Commonswebsite about external funding agencies andopportunities, including links to commonlyapplied–to granting agencies and award18 grant Macewan university

programs, as well as funding programdescriptions and application deadlineso developed a peer-review program for externalgrant applications, as well as helpful resourceson grantsmanship and federal agencyadjudication processeso networked with external granting agenciesand community and industry partners, andcommunicated information/opportunities tofaculty.• Expand annual research showcases andpublish annual research reports.The 2009/10 showcase brochure was publishedin September 2011, and is available online athttps://facultycommons.macewan.ca/services/research-office-2/annual-reports. The 2009/10annual report on research and scholarly activitywas published in March 2011, and is availableonline at https://facultycommons.macewan.ca/services/research-office-2/annual-reports.• Prepare an institutional research plan to alignwith Alberta Research Capacity PlanningFramework (ARCPF).In keeping with Ministry requirements andguidelines, MacEwan University preparedand submitted an Institutional Research Planin December 2010, which summarized theuniversity’s current research capacity andactivities, identified strengths and areas forimprovement, and outlined initiatives and goalsfor the future.Increase university research capacity(2010–15).• Expand the undergraduate student researchstrategy.In support of this objective, the university’sResearch Office undertook a pilot initiative topromote and support student research, andestablished a sub-committee of the ResearchCouncil to manage this Student ResearchInitiative. As part of this initiative, a session ongrantsmanship and applying to the StudentResearch Fund was held, along with twocompetitive grant calls for funding studentresearch projects. The 65 applications thatwere received requested nearly $180,000; 30projects totaling just under $48,000 were funded.Of these, 22 were dissemination projects forstudents to present at national and internationalconferences.A variety of student research projects weresupported across the university, including:o The School of Business sponsored students toattend national and international conferencesto participate in presenting research. In 2011,five School of Business students attendedthe 3rd Annual Conference on Principlesfor Responsible Management Educationorganized by the William G. Rohrer College ofBusiness at Rowan University, Glassboro, NJ.Four School of Business students were amongthe 700 students from 129 countries whoattended the 2011 Education Without Bordersconference in Dubai, UAE.o The Centre for the Arts and Communicationssupported two students to co-present witha faculty member at a communicationsconference in Greece.o Four students in the Bachelor of Sciencein Nursing program delivered posterpresentations at the 32nd InternationalAssociation for Human Caring conference inSan Antonio, Texas in June 2011.• Provide research-related professionaldevelopment opportunities for faculty,members of research committees/councils andprofessional resource staff as appropriate.The university’s Research Ethics Board (REB)participated in professional conferences andexternal training opportunities; hosted internaltraining sessions and invited speakers (e.g.annual Canadian Association of Research EthicsBoards conference); and promoted internal andAnnual Report 2010/2011 19

external webinars and workshops on Tri-CouncilPolicy Statement (TCPS2): Ethical Conduct forResearch Involving Humans.The Animal Research Ethics Board (AREB)provided and supported faculty andadministrator training opportunities, redesignedAnimal User Training Part I, and delivered theinformation to all animal users, AREB membersand relevant administrators.Eight research-related workshops were heldthroughout the academic year, in collaborationwith Faculty Development and the FacultyCommons, on a variety of topics includingfunding opportunities, interdisciplinaryresearch/collaborations, research ethics, andgrantsmanship.• Develop Standards of Practice to support workof the Research Ethics Board and the AnimalCare and Ethics committee.University policy on Ethical Review of Researchwith Human Participants was revised to alignwith the national Tri-Council Policy Statement 2(TCPS2). Policy and terms of reference on AnimalCare and Ethics were revised to better align withthe Canadian Council on Animal Care (CCAC)guidelines and regulations.• Build library services and collections to fosterinformation literacy skills in support of facultyand student research.The Library acquired and hosted open accesspublishing software as part of a pilot project withthe School of Business and the Centre for theArts and Communications, both of which areundertaking the publication of e-journals. Thesoftware enables the university to host, manageand publish open access web-based e-journalpublications.Twenty faculty members participated in twofocus groups to provide feedback on how thelibrary can support and facilitate research at theuniversity. Feedback will inform a broader needsassessment which the Library has undertaken onthis topic.The Library has provided a link to its e-resourceswithin Google Scholar, which provides directaccess to university e-resources for individualsfrom the university who are conducting researchusing this search engine.Supportive Servicesand ProcessesStrategic Direction: Develop andenhance student and institutionalservices that contribute to students’overall experience at MacEwanUniversity and ensure effective andsustainable operation of the university.Objectives:Implement a comprehensive EnterpriseResource Planning (ERP) solution that willenable improved functionality and reportingin support of student, financial and humanresources systems (2010–2014).• Complete a comprehensive PeopleSoft ERPimplementation, including an integratedcustomer relationship management (CRM)solution and a comprehensive trainingprogram for staff and faculty.In 2010/2011 the university made importantprogress toward its comprehensive ERPimplementation. Successfully completedprojects include a new financial system(July 2010), a new human resources system(January 2011), and two stages of a newstudent system implementation (October 2010,April 2011).Examples of specific business sub-systemsin these implementations include assetmanagement, procurement, performance20 grant Macewan university

management, reporting, portal functionality,payroll, time and labour management,academic advisement, and course registration.This initiative also included the developmentof data exchange interfaces between ERPand ancillary applications, and the upgrade orreconfiguration of related ancillary applications.• Design and implement a learning technologyroad map to ensure the effective integrationof the university’s applications for delivery ofdistributed learning and resources.A project scope was established with threeelements: the selection and deployment of asolution for synchronous instructional delivery;a strategy for the migration or upgrade to anew primary LMS; and a solution to supportexamination delivery.In 2010/2011, the university acquired anddeployed a synchronous web-conferencingapplication to support the delivery of onlineeducation and to supplement synchronousdelivery. A project to develop a migration orupgrade strategy was initiated with approvedfunding, a draft charter, and confirmed staffresources in place. A similar project wasinitiated to establish requirements and examineoptions for a new system to support onlineexam invigilation and test bank functionality.• Implement a continuing review of businessprocess improvement (BPI) opportunitiesthrough the establishment of a BPI businesscentre.The centre was established under thenew Corporate Services department.Future initiatives include the roll-out of BPIfunctionality for ongoing review/improvementof processes and integration of BPI for theimplementation of operational plans.• Implement a digital/image records system forall student files and records (2012–2014). A business case was developed to implementa digital image system to address space andaccess considerations. However, as this isa major project that requires considerablehuman and financial resources, it has beendeferred until resources become available.Enhance financial management andadministrative processes and structuresto improve decision support and enhanceoperational efficiency and effectiveness(2010–2014).• Review service delivery options and modelsto ensure innovative and best practiceservice delivery.The requirements for a Business ProcessImprovement program have been integratedinto a comprehensive approach with risk andproject management which will be presentedto senior administration for review before fullimplementation. Ongoing service reviewshave produced recommendations for manyservice and support areas. Retail and CampusServices is currently developing a campuswidemodel of service delivery to enhance thestudent.An ERP sustainment team has been created toprovide ongoing training and support for thenew ERP system. The focus of this initiative isto ensure that user requirements drive systemdelivery and enhance the value of the system.• Develop and deploy business intelligenceand reporting solutions for effective decisionsupport.The 2010/2011 PeopleSoft ERPimplementation included the introduction ofa significant inventory of delivered reportsand queries, significantly improving access tobusiness information across the university. In2010/2011, the university acquired data-martsolutions for Campus Solutions (enrolmentmanagement data) and for Human Resourcesand Finance.A priority project to design and deploy theCampus Solutions Warehouse system wasapproved and initiated in 2010/2011 and is nowactive.Annual Report 2010/2011 21

• Complete the implementation of theuniversity’s Information TechnologyManagement (ITM) control framework.In 2010/2011 the focus of ITM projects was ongovernance. A new model of ITM governancewas implemented based on a conceptof collective system and data ownershipwhere IT-enabled business processes arecoordinated and aligned to meet the businessand academic objectives of the university.The new governance model will enable a setof end-to-end processes that define roles andresponsibilities, and will create a practicaland actionable mechanism for institutionaldecision-making. The model includes thebest-practice of Joint Application Support(JAS), which will support the university’sstrategic direction and priorities by providingco-ordination between the IT and businessenvironments.• Enhance internal controls and riskmanagement systems.The assessment of risk and mitigating controlsis integrated throughout a proposed initiativewhich will assist all areas of the universityto identify, document and assess the risksand controls for university programs andoperations.The Internal Audit function was implementedand an annual audit plan approved. Thisfunction will conduct audits and reviewsof operations and other matters to ensureeffective controls are in place, which is part ofa risk management framework.Develop frameworks and mechanismsfor reflective self-study, peer review, andbenchmarking of services.• Research service best practices andbenchmarks in preparation for self-study,peer review, and evaluation of service areas.A standard template for evaluation of serviceand support departments was developed,incorporating both self-study components andexternal benchmarking. These components ofthe evaluation process were completed as partof evaluations of the Human Resources andFacilities departments.Self-studies in support of evaluations ofRetail and Campus Services, the Library andInstitutional Research and Planning wereundertaken. These evaluations are scheduledfor completion in 2011/12.A process for the development, approvaland monitoring of action plans stemmingfrom service evaluations was developed andapproved by university administration, andwas implemented for the evaluation projectscompleted during the reporting year.• Develop a knowledge base of administrative,operational and service functions in thecontext of a university environment.A review of services and needs relatedto human resources within a universityenvironment was performed and initialrecommendations were made related tokey human resources requirements andfunctionality. Initial steps toward a businessprocess management framework were alsotaken. As part of this work, review of servicefunctionality and requirements was initiated.• Develop frameworks and processes toconnect services to the overall studentexperience.Student survey data was reviewed and is beingincorporated into service planning. In addition,University Services completed its third“customer” survey. Results from this researchwill provide trend data to inform planning foruniversity services.As previously noted, development of abusiness process management framework wasinitiated to examine service area functionalityand contributions. This framework will alsoinform planning for enhancement of studentrelatedservices.22 grant Macewan university

Develop and implement program-specificand institution-wide initiatives to supportstudent learning and academic success(2010–2012).• Identify best practices in student successand evaluate university practices againstthese benchmarks.• Develop an implementation strategy andwork plan to align activities with bestpractices.The university’s Student Success Committeecompleted a survey of student successactivities and compared these activities withhigher education benchmarks. Gaps wereidentified that will provide the basis for futureservice development aimed at improving thestudent experience and increasing retention.Workshops focused on actions that contributeto student success/retention were designedand offered to faculty members.The Student Resource Centre (SRC) developedtwo online workshops in support of studentsuccess initiatives, allowing students to readilyand easily access needed information.In addition, the SRC developed andimplemented a new test anxiety programdelivered to groups of students rather thanone-on-one, which reached a larger number ofstudents.Develop and implement systems,operations, processes and procedures insupport of sustainability and environmentalprinciples (2010–2015).• Develop and assess institutional sustainabilityprograms.o A draft Campus Sustainability Plan wasdeveloped and four staff, student and facultyforums were held to seek input into the plan,to be presented to senior administration infall 2011.o Presentations and support were provided forstudent learning projects.o The university’s Office of Sustainability wasinvolved in the University Service Centreproject to ensure compliance with LEEDrequirements.o Several key initiatives were launched topromote sustainability. These includedwebsite updates, communication campaignsand presentations.o The sustainability officer represented theuniversity on various external boards andcommittees related to sustainability and theenvironment.A Single SustainableCampusStrategic Direction: To develop asingle, sustainable campus on theCity Centre site by 2020 to create amore unified university communityand provide a uniformly high level offacilities to support student learning.Objectives:Obtain necessary approvals and funding fromkey provincial ministries to implement thesingle sustainable campus model in a phasedapproach (2010–2020).• Implement Phase I of the Single SustainableCampus Plan—Centre for the Arts andCommunications (CFAC) move to City CentreCampus.The university worked with the City of Edmontonto incorporate the Single Sustainable CampusPlan (SSCP) as one of four concurrent catalystprojects in the Edmonton Downtown Plan.In addition, the university contributed to theCity’s transportation planning process withAnnual Report 2010/2011 23

ecommendations on locations for the 112 Streetand 107 Street LRT stations.Numerous preparatory activities in support forthe SSCP were undertaken during 2010/11,including:o consolidation of City Centre Campus land titleso initiation of a process for the amendment ofthe DC2 Zoning to enable development ofthe whole campus and maximize the buildingpotential of remaining lando identification of, and negotiations with,interested parties on the disposition of theCFAC and South campuses.• Develop the Student Services neighborhoodat City Centre Campus—development ofServices for Students (S4S) space.Identification of functional requirements forthe S4S departments was completed, and thedesign process commenced. Construction isplanned to begin in spring 2012.• Review, develop and apply sustainable spacestandards.The university began a Space Standards Reviewand Update Project in 2010/11 to access currentspace utilization and allocations and to providerecommendations for cross-university standards.The project is in the final benchmarking phasewith completion planned for fall 2011.• Implement mid-range facilities plans insupport of the university’s strategic plan.A two-year phased project was undertaken tocomplete academic neighbourhoods on theCity Centre Campus and provide expandedaccommodation for Student Services.Develop a learning space plan, with strongfaculty input and participation, to inform midrangefacilities planning (2010–2012).• Develop a comprehensive learning spaceplan based on broad stakeholder input andindustry best practices.A Learning Space Management PlanningCommittee comprised of teaching faculty fromeach faculty/school and representatives ofScheduling, Facilities, Information Technologyand Institutional Research and Planningdeveloped and submitted an interim report whichincluded a literature review, documentationof instructional needs, and identified thetechnology needs for student support andstudent satisfaction. Work was also undertakenon principles and guidelines for future spaceplanning.• Develop a phased plan for long-term campusdevelopment.Alternative strategies were developed thatcould enable the university to accelerate theSingle Sustainable Campus Plan. The UniversityService Centre represents an initial step towardscampus consolidation. A self-reliant approach tocommencing Phase I will be assessed.Community InvestmentStrategic Direction: To enhancecommunity investment in MacEwanUniversity, with a particular focus onsupporting student awards, facilitiesdevelopment and academic initiatives.Objectives:Complete the Front and Centre Campaign by2011 (2006–2011).The purpose of the campaign was to supportstudent access to university programs throughthe provision of scholarships, bursaries andawards. The campaign goal of $40 million wasreached in September 2010, a year ahead ofplan. The campaign was officially closed on June30, 2011.24 grant Macewan university

• Student Scholarships, bursaries and awards($20 million)o Created 2,452 new student awards alignedwith strategic directions and priorities asidentified by Academic Affairs and StudentServices.o Distributed $2.6 million in new scholarships,bursaries and awards to MacEwan Universitystudents between July 1, 2006 and June 30,2011.o Increased the net proceeds of MacEwanUniversity’s Mad Hatter’s Gala and Pro-Amevents, enabling the creation of endowmentsvalued at $5.5 million and $864,567respectively (as of June 30, 2011).o Launched the Student Success Bursaryendowment to build an $8 million endowmentthat, when mature, will provide approximately$240,000 annually to high school studentsentering the university. The majority of thesebursaries will support degree students in theFaculty of Health and Community Studies andSchool of Business. As of June 30, 2011, theuniversity had achieved 53 per cent of thisgoal.• Academic projects ($5 million)o Secured nearly $1 million in corporatephilanthropic gifts to support the Bachelor ofCommerce Curriculum Enhancement Projectand a Distinguished Lecture Series in theSchool of Communications.o Secured support towards the Chair inInternational Health initiative.o Created the Health and Nursing Technologyendowment and secured nearly $700,000 inprivate donor funding towards the acquisitionand renewal of high-fidelity simulationequipment and software.o Tripled the principal value of MacEwanUniversity’s pooled endowment fund in fiveyears, from $13.5 million (July 1, 2006) to $40.2million (June 30, 2011).Plan and initiate the Building to 50 Campaign(2011–2021, Target: $90 million).• Single Sustainable Campus Plan ($50 milliongoal)o Identified potential donors and put tailoredcultivation plans in place pending capitalfunding approval by the Government ofAlberta.o Conducted initial valuation of property namingrights for existing and planned buildings at CityCentre Campus. Completed RFQ and RFPprocess to engage consultants to supportthe “sale” of these rights (philanthropic andsponsorship revenue); contract to be awardedin early 2011/12.• Comprehensive Student Awards program ($25million goal)o Transitioned fundraising efforts for studentscholarships, bursaries and awardsseamlessly from the success of the Front andCentre campaign to the implementation of theBuilding to 50 campaign.o Analyzed portfolios of student awards availableby faculty and program.o Identified funding gaps and clarified fundingpriorities and opportunities for increasedsupport.• Academic Projects ($15 million projects goal)Identified initiatives through interviews withfaculty and program leadership.• Leveraging Access to the Future Fund ($15million)o Successfully leveraged $15 million in Accessto the Future Fund grants (July 1, 2006 to June30, 2011).Annual Report 2010/2011 25

Performance MeasuresMacEwan University’s Strategic Plan and Budget Strategies for 2010/11–2014/15 identified a number ofperformance measures. The table below provides three years of performance data on each measure up tothe 2010/11 reporting year. It must be noted that most university surveys, such as the Student Satisfaction andGraduate Surveys, are conducted bi-annually, and that the three data years are not necessarily the last threecalendar years.Performance HistoryMeasureYear 1Year 2Year 3TargetCommentsStudent FocusStudent Satisfactionwith Overall Quality ofEducational Experience97%(2008/09SatisfactionSurveys)99%(2009/10BaccalaureateSurvey)96%(2010/11SatisfactionSurveys)95% fully/somewhatsatisfiedStudent surveys show thatMacEwan University continuesto exceed its goal of 95% overallstudent satisfaction.Graduate EmploymentRate (total employment)93%(2004/05GraduateSurvey)97%(2006/07GraduateSurvey)95%(2008/09GraduateSurvey)95%Graduate Surveys showsthat MacEwan University hasmet or exceeded its graduateemployment target since 2004/05.Tuition fees relative tocomparable Albertainstitutions(degree-granting)2008/09$4,332(2nd lowest of 7)2009/10$4,498(2nd lowest of 7)2010/11$4,522(2nd lowest of 7)MacEwan University’s tuitionfees are affordable comparedwith other public degree-grantinginstitutions in Alberta$ value of scholarships/bursaries awarded/FLE2008/09$1.822 M$178/FLE2009/10$1.929 M$173/FLE2010/11$2.356 M$201/FLEAnnualIncreaseTotal awards increased by 22%,while $ value of awards per FLEgrew by 16%.Program & Service QualityAccess/Enrolment2008/0910,212 FLE(100% of plan)2009/1011,157 FLE(105% of plan)2010/1111,721 FLE(104% of plan)100% ofplannedFLEMacEwan University’s 2010/11enrolment exceeded its target of11,279 FLE by 3.9% (442 FLE).Student Satisfactionwith Quality ofInstruction96%(2008/09SatisfactionSurveys)99%(2009/10BaccalaureateSurvey)95%(2010/11SatisfactionSurveys)95% fully/somewhatsatisfiedRecent satisfaction surveysshow that MacEwan Universitycontinues to meet or exceed itsgoal of 95% satisfaction with thequality of instruction.Resource Acquisition & UtilizationAchievement offundraising targets$25.9 M(Yr. 3)$35.7 M(Yr. 4)$40.5 M(Yr. 5)$40 Mtarget within5 yrs.Upon completion of the 5-yearcampaign, 101% of target hasbeen reached.% expenditure onadministration*2008/0910.6%2009/1010.2%2010/119.3%

Management’s Discussion and Analysis:Achievement of Strategic Directions andSupporting Objectives, 2010/11 – 2014/15Annual Report 2010/2011 27

Academic Programmingand DeliveryDegree programmingContinued progress in the implementation ofdegree programming was achieved during2010/11, with the addition of an accountingmajor in the Bachelor of Commerce program,and the completion of plans for two new degreeprograms—the Bachelor of Music and the Bachelorof Communication Studies—both of which beganaccepting students in fall 2011. Two additionalmajors in the commerce degree (human resourcesmanagement and marketing) are being planned forfall 2012 implementation. Two new minors in arts(French and Spanish) are being planned for the fallof 2013.The university achieved 105 per cent of itsenrolment target for baccalaureate programs in2010/11, which reinforces the success of degreeprogramming at the university. As previouslydiscussed, the next phase of program developmentincludes commencement of classes in the Artsand Cultural Management diploma in fall 2011, andimplementation of the new degree in psychiatricnursing.MacEwan University remains concerned with theimpact of provincial budget decisions for 2011/12and beyond. While some additional funding hasbeen received to support the Bachelor of Scienceprogram, this degree is still not fully funded,and the university continues to utilize reservesto support this program. The Bachelor of Musicprogram is currently operating with no provincialoperating funding, and university reserves arealso being drawn upon to implement this uniquesignature program. In addition, enrolment in thenursing degree continues to be reduced in order tooperate within funding constraints.Transfer arrangementsAs part of a Campus Alberta objective,additional steps were taken to expand transferarrangements for students from across Albertato access MacEwan University programs, and forMacEwan University students to pursue furtherstudies at other institutions. As discussed inpreceeding sections, an agreement was reachedwith Olds College to offer the first year of theuniversity’s Bachelor of Science degree at thecollege beginning in fall 2011, and the universitycontinues to develop transfer arrangements for itsdiploma graduates to pursue degree completionopportunities at Thompson Rivers University.The university would also like to accommodate arequest to expand its science degree to a northerncollege, but the fact this program remains onlypartially funded limits the university’s capacity toundertake such collaborative initiatives.Distributed technologiesThe university continued to expand its onlinecourse offerings through eCampusAlberta,achieving a 55 per cent increase in enrolment inthis area in 2010/11. Plans are being developedto offer the Bachelor of Commerce degree andthe Arts and Cultural Management diplomaonline. To ensure the quality of its online offerings,the university adopted the eCampusAlbertaEssential Quality Standards (EQS), which includesexternal peer review as part of its developmentmethodology.MacEwan University is a founder and active partnerof the eCampusAlberta Consortium. Developmentof new credentials and the re-development oflegacy curriculum are essential to the continuedsuccess of eCampus courses. Reduction andwithdrawal of curriculum development support forthe eCampus consortium presents a challenge forall members in sustaining this effort on behalf ofCampus Alberta.In all three cases, adequate levels of provincialfunding will be required to ensure the viability andsustainability of these programs.28 grant Macewan university

Scholarship, Researchand Artistic CreationDevelopment of institutional capacity for research,scholarly activity and artistic creation is a longtermprocess. The university’s Research Officeundertook a variety of initiatives during 2010/11to foster faculty research activity, includingsessions on external funding opportunities, onlineresources for funding agencies and applicationrequirements, and provision of peer-reviewservices for grant applications. Continued growthin the number of research publications andpresentations by university faculty is contributingto greater academic rigor within the university andto enhanced external credibility. It must be notedthat as more students enter senior years of degreeprograms, greater levels of internal and externalresearch funding will be required.Promotion of student research is an importantcurricular component of MacEwan University’sbaccalaureate programs. During 2010/11 theuniversity’s Research Office undertook a pilotinitiative to support student research, andestablished a sub-committee of the ResearchCouncil to manage the MacEwan StudentResearch Initiative, which included a sessionon grantsmanship and applying to the StudentResearch Fund, and two competitive grant calls forfunding student research projects. Thirty studentresearch projects were funded for a total of nearly$48,000.Research-related professional developmentfor faculty continued to be another high prioritystrategy to build research and capacity. Theuniversity’s research community participated inresearch-related conferences and workshopsrelated to ethics, animal care and grants.Supportive Servicesand ProcessesEnterprise Resource Planning (ERP)Progress was made towards the completeimplementation of the new PeopleSoft ERP systemduring 2010/11. The new financial system wasimplemented in July 2010, the human resourcessystem in January 2011, and the first two phaseson the student system (Campus Solutions) byApril 2011. The implementation process presentedsignificant challenges, and considerable workremains in order to realize the full benefits andpotential of the new system.Enhanced financial processes and structuresImplementation of the new financial system wasa critical step in the process of enhancing theuniversity’s financial processes and structures. Theuniversity implemented a new model for informationtechnology management, established an internalaudit function and approved an annual audit plan.Self-study, peer review and benchmarkingAs with many of the university’s objectives duringthis transitional period, the implementationof an institutional culture of self-review andbenchmarking is a long-term process. This processcontinued during 2010/11 with the development ofa standard process for evaluation of service andacademic support departments, and a mechanismfor action planning and follow-up from theseevaluations. Two service evaluation projects werecompleted during 2010/11, and three others wereinitiated.Student success initiativesA wide range of initiatives to promote studentretention and student success were undertakenduring 2010/11, many under the auspices, orthe involvement of, the university’s StudentSuccess Committee. Activities encompassed awide range of projects—from program-specificinitiatives to university-wide projects; rangingfrom improvements to orientation and studentadvising to the realignment of student spacesAnnual Report 2010/2011 29

to enhance services. Implementation of thePeopleSoft Campus Solutions module in 2010/11will significantly improve the university’s capacityto generate and analyze student retention data,which will in turn enable more detailed assessmentand evaluation of the impact of student successinitiatives.SustainabilityThe university demonstrated its commitmentto enhancing its environmental sustainability byestablishing a Sustainability Office. Future prioritiesfor the office were established and a number ofinitiatives are under development. Education andenhancing awareness of sustainability issues willbe a priority to ensure that this direction can bemaintained during difficult economic times.Single SustainableCampusPhase I of the university’s Single SustainableCampus Plan (SSCP) was completed with theApril 2011 opening of the University ServiceCentre—a 5,000 square metre facility designed toaccommodate 240 administrative staff. USC staffmoves freed up considerable space on City CentreCampus for educational purposes. In addition, theuniversity worked with the City of Edmonton toensure that its plan for a single campus is reflectedin the City’s Downtown Plan. Shorter-term facilitiesplanning also proceeded, including planningfor the completion of academic neighbourhooddevelopment on the City Centre Campus andexpansion of space for “Services for Students”(S4S) departments.Long-term planning for the university’s futureinstructional space requirements was undertakenby a Learning Space Management PlanningCommittee, which included strong representationof faculty from across the university. Thiscommittee developed a “White Paper” on futureinstructional space requirements, and initiatedthe development of principles and guidelines forplanning and design of future instructional space.Community InvestmentAs discussed in detail within the progress report,the university’s “Front and Centre” campaignreached its $40 million goal in September2010, a year ahead of plan. Notable campaignachievements included the creation of nearly 2,500new student awards, establishment of a StudentSuccess Bursary endowment and a Health andNursing Technology endowment. Between 2006/07and 2010/11, the university’s pooled endowmentfund nearly tripled, from $13.5 million to $40.2million.Planning began for the next major funddevelopment campaign, “Building to 50 Years,”with a target of $90 million over the comingdecade. This campaign will focus on three priorityareas: supporting development of a single campusfor the university; a comprehensive student awardsprogram; and support for key academic projects.Performance MeasuresMacEwan University met or exceeded its targetson all of the institution-wide performance measuresidentified in its Strategic Plan and BudgetStrategies for 2010/11.SummaryFrom a variety of perspectives, including programdevelopment, enrolment growth, expansionof research activity, capital planning andenhancement of service and support operations,the 2010/11 academic year was highly successfulfor Grant MacEwan University. At the sametime, limits on program and overall operationalfunding continued to pose significant longer-termchallenges. Addressing these challenges will be amajor focus of university planning over the next fewyears, until sufficient funding is obtained to supportcurrently unfunded and partially-funded programs.30 grant Macewan university

Management’s Discussion andAnalysis: Consolidated FinancialStatements, 2010/11Annual Report 2010/2011 31

Discussion and AnalysisThe following discussion and analysis of theconsolidated financial statements for the yearended June 30, 2011 should be reviewed inconjunction with the audited consolidated financialstatements and accompanying notes. Thefinancial statements represent the consolidatedfinancial position and results of operations of GrantMacEwan University and the MacEwan Foundation.Consolidated Statementof Financial PositionThe university’s assets totaled $443.9 million forthe year ended June 30, 2011 compared to $416.9million for the prior year.Assets HighlightsTotal cash and cash equivalents of $59.1 millionat June 30, 2011 are reduced from the prioryear’s $78 million, primarily due to investing in theEnterprise Resource Planning (ERP) system andthe University Service Centre.Liabilities HighlightsThere is no significant change to total liabilitiesat June 30, 2011, which were $246.2 millioncompared to $245.6 million the year before.Net Assets HighlightsTotal net assets have increased by $26.4 million asa result of the following:• Increase in endowments, including $9.1 million inexternal contributions and investments income.• Increase in investment in capital assets andcollections of $33.2 million includes theuniversity’s costs for the University ServiceCentre, the PeopleSoft ERP implementation andland purchases in connection with the singlesustainable campus project.• Net decrease in internally restricted net assetsof $16.9 million resulted from spending $40.2million on the University Service Centre,PeopleSoft ERP, and land for the singlesustainable campus project. This spending wasoffset by an additional $23.3 million that hasbeen restricted primarily for the music degreerenovation costs and the single sustainablecampus project.The long-term investments held by the universityhad a market value of $62.5 million at June 30,2011 compared to $49.2 million at June 30, 2010.This was partly due to the increase of $9.1 million inendowed funds.The university’s capital assets and collectionswere $286.1 million at June 30, 2011 comparedto $255.2 million at June 30, 2010. This netincrease of $30.9 million includes renovationand the balance of construction of Bachelor ofScience labs, the University Service Centre andthe PeopleSoft ERP implementation. Land wasalso purchased as part of the single sustainablecampus project.32 grant Macewan university

Revenue2011: $222.6 million (2010: $216.4 million) Consolidated Statementof OperationsRevenue highlights• Government grants decreased by $3.3 millionand there is a continuing freeze in operatingfunding.• The freeze was offset by increases in tuition andfees of $8 million due to enrolment growth fromCanadian and international students, includingincreased enrolment for the new degreeprograms in science and nursing. The universityalso implemented an approved annual tuitionincrease.• Investment income increased by $1.9 million asa result of the improved financial markets duringthe year.Expense highlights2011 2010Government of Alberta grants 49% 52%Federal and other governmentgrants 0% 0%Student Tuition and fees 33% 30%Sales of services and products 12% 13%Amortization of deferredcapital contributions 3% 3%Contract programs 1% 1%Donations and other grants 0% 1%Investment income 2% 1%• Salaries and employee benefits expensesincreased by $9 million as a result of increasedstaffing levels to support new initiatives and newdegree programs. Timing differences betweenthe plan and budget for new faculty positionsand actual hiring of new faculty has resultedin a significant positive salary variance. Also,the complement management process thatwas in place during the year resulted in hiringchallenges which, combined with other vacancyissues, added to the overall positive variance.These positive variances were partially offsetby higher non-faculty costs related to additionalterm staff and overtime required to managenumerous concurrent projects such as the ERPimplementation.• Materials, supplies and services increasedby $1.6 million due to contracted services foruniversity capital projects.• Amortization of capital assets increased by $1.9million due to capital renovations and the ERPproject.Annual Report 2010/2011 33

• Expenditures funded through the infrastructuremaintenance program grants are typicallybudgeted for as operating expenses. In thisyear a large number of these expenditures werecapitalized which, along with other smallervariances, resulted in the positive variance forrepairs and maintenance of $3.1 million.• The university changed its accounting policy forcapital assets to align with other universities. Thechange was to increase the dollar limit at whichassets are capitalized from $1,000 to $5,000.As a result of this change the asset base forcalculating amortization was reduced, whichresulted in lower annual amortization.Expenses2011: $208.0 million (2010: $198.0 million)Excess of revenue over expense• The university had an excess of $14.6 millionfor the year ended June 30, 2011 compared to$18.4 million for 2010.Planning for the FutureImplementation of the university’s new degreeprogramming involves significant activity relatedto new faculty recruitment, policy development,and curriculum revisions and reporting. Over thenext few years the university plans to develop andimplement additional degree programs in music,commerce and social work.Limitation in the resources available to the Ministryof Advanced Education and Technology, due tothe renewed global economic crisis, has resultedin fiscal challenges to the university. The institutioncontinues to work on strategies to maintain thehigh quality of education provided to students whilefaced with this financial constraint.The Single Sustainable Campus Plan is theuniversity’s long-term strategy to consolidateonto the City Centre Campus—which will providehigh-quality facilities for the above programs andservices. The University Service Centre was thefirst phase of the plan. Infrastructure will continueto be a critical component aimed at ensuringthat the university has the physical capacity toaccommodate the planned student enrolments.There is heightened interest from the community inbuying two of the university’s campuses and thiswill challenge the timelines as the institution movesforward on this project.2011 2010Salaries 55% 54%Employee benefits 9% 9%Materials, supplies and services 17% 17%Amortization of capital assets 7% 6%Cost of goods sold 5% 5%Utilities 2% 2%Maintenance and repairs 3% 5%Scholarhips and bursaries 1% 1%Interest on long term debt 1% 1%Ongoing investment in business intelligence,operational processes and technology isincreasingly a high priority. The university hasnow implemented the new Enterprise ResourcePlanning (ERP) system, and now needs to capitalizeon its investment to ensure infrastructure andstaffing are at optimal levels to maintain the currentenvironment at a reliable and sustainable level.34 grant Macewan university

Consolidated Financial Statementsfor the Year Ended June 30, 2011Annual Report 2010/2011 35

ContentsManagement’s Responsibility for the Consolidated Financial Statements....................................... 37Independent Auditor’s Report.........................................................................................................38Consolidated Statement of Financial Position.................................................................................39Consolidated Statement of Operations...........................................................................................40Consolidated Statement of Changes in Net Assets......................................................................... 41Consolidated Statement of Cash Flow............................................................................................ 42Notes to the Consolidated Financial Statements.............................................................................4336 grant Macewan university

Management’s Responsibility forthe Consolidated Financial StatementsThe accompanying financial statements of Grant MacEwan University are the responsibility ofmanagement and have been approved by the Board of Governors. The consolidated financialstatements have been prepared by management in conformity with generally accepted accountingprinciples described in Note 2.To discharge its responsibility for the integrity and objectivity of financial reporting, managementmaintains a system of internal accounting controls comprising written policies, guidelines andprocedures, and a formal authorization structure. This system is designed to provide managementwith reasonable assurance that transactions are properly authorized, reliable financial records aremaintained, and assets are adequately accounted for and safeguarded.The Board of Governors carries out its fiduciary responsibility for financial management of theUniversity through its Audit and Finance Committee. The Audit and Finance Committee meets withmanagement and the external auditor to discuss the results of audit examinations and financialreporting matters. The external auditor has full access to the Audit and Finance Committee, withand without the presence of management.The Auditor General of the Province of Alberta, the University’s external auditor, appointed underthe Auditor General Act, performs an annual independent audit of the consolidated financialstatements.On behalf of management,Original signed by David W. AtkinsonDavid W. Atkinson, PhDPresidentOriginal signed by Brent QuintonBrent Quinton, CA, MBAvice President, University Servicesconsolidated financial statements 2010/2011 37

Independent Auditor’s ReportTo the Board of Governors of Grant MacEwan UniversityReport on the Consolidated Financial StatementsI have audited the accompanying consolidated financial statements of Grant MacEwan University, whichcomprise the consolidated statement of financial position as at June 30, 2011, and the consolidatedstatements of operations, changes in net assets and cash flows for the year then ended, and a summary ofsignificant accounting policies and other explanatory information.Management’s Responsibility for the Consolidated Financial StatementsManagement is responsible for the preparation and fair presentation of these consolidated financialstatements in accordance with Canadian generally accepted accounting principles, and for such internalcontrol as management determines is necessary to enable the preparation of consolidated financialstatements that are free from material misstatement, whether due to fraud or error.Auditor’s ResponsibilityMy responsibility is to express an opinion on these consolidated financial statements based on my audit. Iconducted my audit in accordance with Canadian generally accepted auditing standards. Those standardsrequire that I comply with ethical requirements and plan and perform the audit to obtain reasonable assuranceabout whether the consolidated financial statements are free from material misstatement.An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in theconsolidated financial statements. The procedures selected depend on the auditor’s judgment, includingthe assessment of the risks of material misstatement of the consolidated financial statements, whether dueto fraud or error. In making those risk assessments, the auditor considers internal control relevant to theentity’s preparation and fair presentation of the consolidated financial statements in order to design auditprocedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion onthe effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness ofaccounting policies used and the reasonableness of accounting estimates made by management, as well asevaluating the overall presentation of the consolidated financial statements.I believe that the audit evidence I have obtained in my audit is sufficient and appropriate to provide a basis formy audit opinion.OpinionIn my opinion, the consolidated financial statements present fairly, in all material respects, the financial positionof Grant MacEwan University as at June 30, 2011, and the results of its operations, changes in net assets andits cash flows for the year then ended in accordance with Canadian generally accepted accounting principles.Original signed by Merwan N. SaherAuditor GeneralNovember 22, 2011Edmonton, Alberta38 grant Macewan university

Consolidated Statement of Financial PositionAs at June 30, 2011 (thousands of dollars)2011 2010Restated (Note 3)ASSETSCurrent Assets:Cash and cash equivalents (Note 4) $ 59,123 $ 78,006Short-term investments (Note 5) 25,471 25,063Accounts receivable 5,595 4,348Inventories and prepaid expenses 5,103 4,98095,292 112,397Long-term investments (Note 5) 62,510 49,243Capital assets and collections (Note 6) 286,174 255,293$ 443,976 $ 416,933LIABILITIES AND NET ASSETSCurrent Liabilities:Accounts payable and accrued liabilities $ 23,715 $ 20,376Deferred revenue 5,354 5,298Deferred contributions (Note 7) 21,938 21,368Current portion of long term liabilities (Note 10) 1,581 1,51852,588 48,560Employee future benefit liabilities (Note 9) 514 387Deferred contributions, capital (Note 7) 213 1,357Unamortized deferred capital contributions (Note 8) 146,953 147,721Long term liabilities (Note 10) 45,983 47,565246,251 245,590Net Assets:Endowments (Note 11) 39,887 30,791Investment in capital assets and collections (Note 13) 91,656 58,490Internally restricted (Note 14) 63,679 80,588Unrestricted 2,503 1,474197,725 171,343$ 443,976 $ 416,933Contractual obligations and contingent liabilities (Note 18 and Note 19)Approved by the Board of Governors:Original signed by John DayChair, Board of GovernorsOriginal signed by David W. AtkinsonPresidentThe accompanying notes are part of these consolidated financial statements.consolidated financial statements 2010/2011 39

Consolidated Statement of OperationsFor the Year Ended June 30, 2011 (thousands of dollars)Budget 2011 2011 2010(Note 17) Restated (Note 3)RevenueGovernment of Alberta grants $ 110,670 $ 109,004 $ 112,276Federal and other government grants 110 107 43Student tuition and fees 68,249 72,800 64,830Sales of services and products 24,875 26,445 26,728Amortization of deferred capital contributions (Note 8) 6,200 6,321 6,103Contract programs 3,193 2,547 3,047Donations and other grants 1,830 1,483 1,347Investment income (Note 12) 3,303 3,904 2,020218,430 222,611 216,394ExpenseSalaries 119,327 113,581 106,738Employee benefits 18,236 19,217 17,011Materials, supplies and services 36,667 35,841 34,279Amortization of capital assets 15,868 13,591 11,672Cost of goods sold 9,412 9,582 9,130Utilities 4,802 5,125 4,384Maintenance and repairs 9,052 5,958 9,989Scholarships and bursaries 2,210 2,319 1,929Interest on long term debt 2,856 2,748 2,826218,430 207,962 197,958Excess of revenue over expense $ - $ 14,649 $ 18,436The accompanying notes are part of these consolidated financial statements.40 grant Macewan university

Consolidated Statement of Changes in Net AssetsFor the Year Ended June 30, 2011 (thousands of dollars)Investmentin Capital InternallyAssets and Restricted UnrestrictedEndowments Collections Net Assets Net Assets(Note 11) (Note 13) (Note 14) (deficit)Restated (Note 3)NET ASSETS, June 30, 2009 $ 25,446 $ 48,045 $ 72,054 $ 1,238Excess of revenue over expense - - - 18,436Investment income (Note 12) 1,113 - - -Endowment contributions 4,132 - - -Net transfers 100 - - (100)Net change in investment in capital assets (Note 13) - 9,566 - (9,566)Contributions of assets not subject to amortization (Note 13) - 879 - -Net expenditures of internally restricted net assets - - 8,534 (8,534)NET ASSETS, June 30, 2010 $ 30,791 $ 58,490 $ 80,588 $ 1,474Excess of revenue over expense - - - 14,649Investment income (Note 12) 392 - - -Endowment contributions 8,693 - - -Net transfers 11 - - (11)Net change in investment in capital assets (Note 13) - 30,518 - (30,518)Contributions of assets not subject to amortization (Note 13) - 2,648 - -Net expenditures of internally restricted net assets - - (16,909) 16,909NET ASSETS, June 30, 2011 $ 39,887 $ 91,656 $ 63,679 $ 2,503The accompanying notes are part of these consolidated financial statements.consolidated financial statements 2010/2011 41

Consolidated Statement of Cash FlowFor the Year Ended June 30, 2011 (thousands of dollars)2011 2010Restated (Note 3)Cash provided from (used in) operating activities:Excess of revenue over expense $ 14,649 $ 18,436Add (deduct) non-cash items:Allowance for doubtful accounts (84) (38)Amortization of capital assets 13,591 11,672(Gain)/Loss on disposal of capital assets 79 66Amortization of deferred capital contributions (6,321) (6,103)Gift in Kind (247) (209)Change in employee future benefit liabilities 127 112Change in unrealized (gain) loss on investments (4,493) (2,396)17,301 21,540Net change in non-cash working capital (*) 2,371 (29,257)19,672 (7,717)Cash used in investing activities:Purchases of capital assets and collections, net of proceeds from disposals (44,470) (26,437)Purchase of long term investments, net of sales (8,316) (3,707)(52,786) (30,144)Cash provided from (used in) Financing activities:Endowment contributions 8,693 4,132Capital contributions 7,057 10,247Long-term liabilities - repayments (1,519) (1,506)14,231 12,873Increase (Decrease) in cash and cash equivalents (18,883) (24,988)Cash and cash equivalents, beginning of year 78,006 102,994Cash and cash equivalents, end of year $ 59,123 $ 78,006(*)Net Change in non-cash working capital:(Increase) decrease in accounts receivable $ (1,163) $ (28)(Increase) decrease in short-term investments (408) (25,063)(Increase) decrease in inventories and prepaid expenses (22) (803)Increase (decrease) in accounts payable and accrued liabilities 3,338 563Increase (decrease) in deferred revenue 56 896Increase (decrease) in deferred contributions 570 (4,822)The accompanying notes are part of these consolidated financial statements.$ 2,371 $ (29,257)42 grant Macewan university

Notes to the Consolidated Financial StatementsFor the Year Ended June 30, 2011 (thousands of dollars)Note 1Authority and PurposeThe Board of Governors of Grant MacEwan University is a corporation which manages andoperates Grant MacEwan University (the “University”) under the Post-Secondary Learning Act(Alberta). All members of the Board of Governors are appointed by either the Lieutenant Governorin Council or the Minister of Advanced Education and Technology, with the exception of thePresident, who is an ex officio member. Under the Post- Secondary Learning Act, Campus AlbertaSector Regulation, the University is a Baccalaureate and Applied Studies Institution offeringbaccalaureate degrees, certificates, diplomas, and applied degrees as well as a full range ofcontinuing education programs and activities. The University is a registered charity, and underSection 149 of the Income Tax Act (Canada), is exempt from payment of income tax.Note 2Summary of Significant Accounting Policies and Reporting Practices(a)General - Generally accepted accounting principles (GAAP) and use of estimatesThese consolidated financial statements are prepared in accordance with Canadian generallyaccepted accounting principles. The measurement of certain assets and liabilities is contingentupon future events; therefore, the preparation of these financial statements requires the useof estimates, which may vary from actual results. University management uses judgment todetermine such estimates. Employee future benefit liabilities and amortization of capital assets arethe most significant items based on estimates. In management’s opinion, the resulting estimatesare within reasonable limits of materiality and are in accordance with the significant accountingpolicies summarized below. These significant accounting policies are presented to assist thereader in evaluating these financial statements and, together with the following notes, should beconsidered an integral part of the financial statements.(b) Consolidated Financial StatementsThese consolidated financial statements include the accounts of the Grant MacEwan UniversityFoundation, which operates under part 9 of the Companies Act of Alberta for the support andadvancement of the University. The Foundation is a registered charity and is exempt from paymentof income tax.(c)Capital Assets and CollectionsCapital asset acquisitions are recorded at cost. Donated assets are recorded at fair value, whena fair value can be reasonably determined. Collections are not amortized and include the portionof library assets with permanent value and works of art held for education and public exhibitionpurposes.consolidated financial statements 2010/2011 43

Notes to the Consolidated Financial StatementsFor the Year Ended June 30, 2011 (thousands of dollars)Capital assets, once placed into service are amortized on a straight-line basis over the followingestimated useful lives:Buildings and site improvementsFurniture, equipment and vehiclesLibrary materialsComputers and telecommunications equipmentEquipment under capital lease10 to 40 years3 to 25 years10 years3 to 5 yearsperiod of the lease(d) Asset Retirement ObligationsThe fair value of a liability for an asset retirement obligation is recognized in the period incurred, if areasonable estimate of fair value based on the present value of estimated future cash flows can bemade. The associated asset retirement costs are capitalized as part of the net book value of theasset and amortized over its estimated useful life.(e) Revenue RecognitionThe financial statements record the following items as revenue at the following times:• Tuition fees when the instruction is delivered.• Revenues received for services and products when the services or products are substantiallyprovided and collection is reasonably assured.• Unrestricted contributions when received or receivable, if the amount can be reasonablyestimated and collection is reasonably assured.• Unrestricted investment income when earned; this includes interest, dividends, realized andunrealized gains and losses.• Donations of materials - are recorded at fair value when a fair value can be reasonablydetermined and when materials would otherwise have been purchased.• Pledges, when collected.• Restricted contributions - based on the deferral method.Deferral methodContributions, including investment income on the contributions, which are restricted for purposesother than endowment or capital asset acquisitions, are deferred and recognized as revenue whenthe conditions of the contribution are met.Contributions to acquire capital assets with limited lives are first recorded as deferredcontributions, capital when received and when expended they are transferred to unamortizeddeferred capital contributions and amortized to revenue over the useful lives of the related assets.Endowment contributions are recognized as direct increases in endowment net assets. Investmentearnings, under agreements with benefactors or the Post-Secondary Learning Act allocatedto endowment principal, are also recognized as direct increases in endowment net assets.Endowment investment earnings that are allocated for spending are deferred and recognized asrevenue when the conditions of the endowment are met.Restricted contributions for the purchase of capital assets that will be amortized should bedeferred and recognized as revenue on the same basis as the amortization expense related to theacquired capital assets.Restricted contributions for the purchase of capital assets that will not be amortized should berecognized as direct increases in net assets.44 grant Macewan university

Notes to the Consolidated Financial StatementsFor the Year Ended June 30, 2011 (thousands of dollars)(f)InventoriesInventories held for resale are valued at the lower of cost or net realizable value, with costdetermined on a moving average basis. Inventories held for consumption are valued at cost.(g) Foreign Currency TranslationFinancial assets and liabilities recorded in foreign currencies are translated to Canadian dollars atthe year-end exchange rate. Revenues and expenses are translated at daily exchange rates. Gainsor losses from these transactions are included in investment income.(h) Employee Future BenefitsPensionThe University participates with other employers in the Local Authorities Pension Plan (LAPP).This pension plan is a multi-employer defined benefit pension plan that provides pensions for theUniversity’s participating employees, based on years of service and earnings.The University does not have sufficient plan information on the LAPP to follow the standardsfor defined benefit accounting, and therefore follows the standards for defined contributionaccounting. Accordingly, pension expense recorded for the LAPP is comprised of employercontributions to the plan that are required for its employees during the year; which are calculatedbased on actuarially pre-determined amounts that are expected to provide the plan’s futurebenefits.Supplementary Retirement plansThe University maintains a supplementary pension plan for its current senior executives. Thepension expense for the defined benefit supplementary retirement plan is actuarially determinedusing the projected benefit method prorated on service. Actuarial gains or losses on the accruedbenefit obligation are amortized over the expected average remaining service life.(i)Financial InstrumentsThe University’s financial assets and liabilities are generally classified and measured as follows:Financial Statement Components Classification MeasurementCash and cash equivalents Held-for-trading Fair valueAccounts receivable Loans and receivables Amortized costInvestments Held-for-trading Fair valueAccounts payable and accrued liabilities Other liabilities Amortized costAccrued vacation pay other liabilities Amortized costLong-term liabilities other liabilities Amortized costFinancial instruments classified as held-for-trading are measured at fair value with changes in fairvalue recognized in the Statement of Operations. Financial instruments classified as loans andreceivables and classified as other financial liabilities are measured at amortized cost with gainsand losses recognized in the Statement of Operations when the asset or liability is derecognized.The value of the University’s financial instruments are recognized on their settlement date.Transaction costs related to all financial instruments are expensed as incurred.consolidated financial statements 2010/2011 45

Notes to the Consolidated Financial StatementsFor the Year Ended June 30, 2011 (thousands of dollars)Financial instruments of the University are exposed to market risk, liquidity risk, credit risk, interestrate risk, and commodity price risk.Market RiskThe University is subject to market risk, foreign currency and interest rate risk with respect toits investment portfolio. To manage these risks, the University has established a target mix ofinvestment types designed to achieve the optimal returns within reasonable risk tolerance.Liquidity RiskThe University maintains a comprehensive cash management process to ensure funds areavailable to meet current and forecasted financial requirements as cost effectively as possible.Credit RiskThe credit risk from accounts receivable is relatively low as the majority of balances are due fromgovernment agencies and corporate sponsors. Credit risk from tuition is managed by restrictingenrolment activities for students with delinquent balances and maintaining standard collectionprocedures.Interest Rate RiskInterest rate risk is the risk to the University’s earnings that arise from the fluctuations in interestrates and the degree of volatility of these rates. The risk is managed by maintaining an appopriatemix of maturity dates for the University’s fixed income securties.Commodity Price RiskThe University is exposed to commodity price risk as a result of substantial electricity and naturalgas usage required to operate the institution’s facilities. To mitigate these risks, the University hasentered into contracts to fix the price for electricity and gas.All derivative financial instruments of the University are classifed as held for trading. The Universitydoes not use foreign currency forward contracts or any other type of derivative financialinstruments for trading or speculative purposes. Forward contracts are marked to market at theend of each reporting period with any changes in the market value recorded in the statement ofoperations when the changes occur. As permitted for not-for-profit organizations, the Universityhas elected to not apply the standards on derivatives embedded in non-financial contracts, andthe University has elected to continue to follow Canadian Institute of Chartered Accountants (CICA)3861: Disclosure and Presentation.(j)Capital DisclosuresThe University defines its capital as the amounts included in deferred contributions (Note7), endowment net assets (Note 11) and unrestricted net assets. A significant portion of theUniversity’s capital is externally restricted and the University’s unrestricted capital is fundedprimarily by Alberta Advanced Education and Technology, other government funding agencies,donations and the University’s entrepreneurial activities. The University has investment policies(Note 5), spending policies and cash management procedures to ensure the University can meetits capital obligations.46 grant Macewan university

Notes to the Consolidated Financial StatementsFor the Year Ended June 30, 2011 (thousands of dollars)Under the Post-Secondary Learning Act, the University must receive ministerial or LieutenantGovernor in Council approval for a deficit budget, mortgage and debenture borrowing and thesale of any land, other than donated land, that is held by and being used for the purposes of theUniversity.(k) Contributed ServicesVolunteers as well as members of the staff of the University contribute an indeterminable numberof hours per year to assist the institution in carrying out its mission. Such contributed services arenot recognized in these financial statements.(l)Future Accounting ChangesThe Public Sector Accounting Board (PSAB) has issued a framework for financial reporting bygovernment notfor- profit organizations. The framework includes the PS4200 series of standardsfor government not-for-profit organizations. This framework will be effective for fiscal yearsbeginning January 1, 2012. Government Not-For- Profit Organizations have been presented theoption to apply either PS4200 series of standards plus the PSA Handbook; or PSA handbookwithout the PS4200 series of standards. The Government of Alberta has decided that AlbertaPublic Post-Secondary Institutions, as government not-for-profit entities will adopt the PSAhandbook without the PS4200 series of standards. The University has started to identify thedifferences in the standards that will impact the financial statements and will quantify thedifferences. The University will also determine whether any specific exemptions and exceptionsapplicable to the first time adoption of PSA standards by government not-for-profit organizationswill be applicable to the University.Note 3Prior Period AdjustmentThe University made an Accounting Policy change in order to align its capital asset threshold withother universities. The threshold for capitalized items increased from $1 to $5. These changeshave been applied retrospectively with restatement of comparative numbers.The University identified the following errors in the June 30, 2010 Consolidated FinancialStatements:• Received $878 grant funding for land remediation which should have been recognized as adirect increase in net assets instead of an increase in UDCC.• A grant funded capital lease in the amount of $45 was being amortized over 4 years instead of8 years.• The University determined that Faculty Development funding of $1,272 should be recorded asa liability instead of as Funds Held on Behalf of Others.• An accumulated surplus of $1,065 with Alberta Blue Cross and Manulife was not recorded.• Reversal of a prior year accrual for $174 was not recorded.• An accrual of the Health Spending Account liability for $197 was not recorded.• Sales of services and products for $409 was reclassifed to Student tuition and fees.consolidated financial statements 2010/2011 47

Notes to the Consolidated Financial StatementsFor the Year Ended June 30, 2011 (thousands of dollars)The impact on the prior year’s financial statements as a result of these changes is as follows:2010As Previously AdjustmentRecorded recorded As restatedIncrease (decrease) in:Consolidated Statement of Financial PositionCash and cash equivalents (Note 4) $ 76,734 $ 1,272 $ 78,006Accounts receivable 5,245 (897) 4,348Inventories and prepaid expenses 3,915 1,065 4,980Capital assets and collections (Note 6) 268,671 (13,378) 255,293Accounts payable and accrued liabilities 19,083 1,293 20,376Current portion of long term liabilities (Note 10) 2,385 (867) 1,518Unamortized deferred capital contributions (Note 8) 153,164 (5,443) 147,721Long term liabilities (Note 10) 48,762 (1,197) 47,565Investment in capital assets and collections (Note 13) 64,360 (5,870) 58,490Unrestricted net assets 1,330 144 1,474Consolidated Statement of OperationsGovernment of Alberta grants 111,953 323 112,276Student tuition and fees 64,421 409 64,830Sales of services and products 26,829 (101) 26,728Amortization of deferred capital contributions (Note 8) 6,882 (779) 6,103Employee benefits 17,249 (238) 17,011Materials, supplies and services 31,956 2,323 34,279Amortization of capital Assets 15,203 (3,531) 11,672Note 4Cash and Cash EquivalentsCash and Cash Equivalents with a maximum maturity of 90 days at date of purchase are as follows:2011 2010Cash $ 59,123 $ 78,006Note 5InvestmentsThe composition, fair value, and annual market yields on investments are as follows:2011 2010Market ValueMarket ValueShort-term GIC $ 25,471 $ 25,063Pooled fundsCommon stocks and equivalents 31,133 23,558Fixed income securities 26,136 19,954Cash and equivalents 2,328 2,712Cash holdings 2,129 2,260Cash surrender value of planned gifts (life insurance policies) 766 741other 18 18$ 87,981 $ 74,306Short-term investments 25,471 25,063Long-term and other investments 62,510 49,243$ 87,981 $ 74,306 48 grant Macewan university

Notes to the Consolidated Financial StatementsFor the Year Ended June 30, 2011 (thousands of dollars)As at June 30, 2011, the average annualized effective yields and the terms to maturity are asfollows:• Pooled Funds - Cash and equivalents: 1.01% (2010 - 1.08%); term to maturity: less than oneyear.• Pooled Funds - Fixed income securities: 3.82% (2010 - 3.99%); term to maturity: range frommore than one year to less than 20 years.The University has policies and procedures in place governing asset mix, diversification, exposurelimits, credit quality and performance measurement. The University’s Investment Committee,a sub-committee of the Audit and Finance Committee of the Board of Governors, has beendelegated authority for oversight of the University’s investments. The Investment Committee meetsregularly to monitor investments, to review investment manager performance, ensure compliancewith the University’s investment policies and to evaluate the continued appropriateness of theUniversity’s investment policies.The University’s long-term and other investment holdings are managed by RBC DominionSecurities using a specified range of asset mix in pooled funds to achieve an acceptable returnand risk appropriate for a publicly funded post-secondary educational institution. The investmentholdings managed by RBC Dominion Securities are currently separated into two funds,Unrestricted Operating and Restricted Endowments. As at June 30, 2011, the market value of thetwo funds were: Unrestricted Operating with investment holdings of $20,597 (2010 - $18,515); andRestricted Endowment with investment holdings of $39,000 (2010 - $27,709). The balance of theinvestment portfolio $2,913 (2010 - $3,019) is held in cash as identified above.Note 6CAPITAL ASSETS AND COLLECTIONS2011 2010Accumulated Net Book Accumulated Net BookCost Amortization Value Cost Amortization ValueLand $ 38,999 $ - $ 38,999 $ 23,617 $ - $ 23,617Buildings and site improvements 292,145 (83,849) 208,296 267,942 (76,731) 191,211Furniture, equipment and vehicles 22,819 (9,948) 12,871 17,428 (8,560) 8,868Library materials 15,160 (8,501) 6,659 14,290 (7,779) 6,511Computers and telecommunicationsequipment 26,023 (12,201) 13,822 16,025 (8,518) 7,507Equipment under capital lease 594 (338) 256 1,014 (662) 352Art collection 122 - 122 122 - 122Work in process 5,149 - 5,149 17,105 - 17,105$ 401,011 $ (114,837) $ 286,174 $ 357,543 $ (102,250) $ 255,293Work in process is not amortized as the assets are not yet available for use.Acquisitions during the year include in-kind contributions (such as furniture, equipment and library materials) inthe amount of $10 (2010 - $12).consolidated financial statements 2010/2011 49

Notes to the Consolidated Financial StatementsFor the Year Ended June 30, 2011 (thousands of dollars)Note 7Deferred ContributionsDeferred contributions represent unspent externally restricted grants and donations. Changes inthe deferred contributions balances are as follows:2011 2010ProgramProgramDeliveryDeliveryCapital and Other Capital and OtherBalance, beginning of the year $ 1,357 $ 21,368 $ 3,865 $ 26,190Grants and donations received 608 12,504 2,579 31,392Recognized as revenue (69) (6,424) - (27,391)transferred from/(to):• investment income (Note 12) 25 3,571 13 29• endowment - (5,226) - (2,076)• unamortized deferred capital contributions (Note 8) (1,708) (3,845) (4,925) (6,951)• Capital and program delivery - - (175) 175Funds returned to grantor - (10) - -Balance, end of the year $ 213 $ 21,938 $ 1,357 $ 21,368Note 8Unamortized Deferred Capital ContributionsUnamortized Deferred Capital Contributions (UDCC) represent the unamortized grants anddonations received to fund capital acquisitions. The amortization of UDCC is recorded as revenuein the statement of operations. The changes in the UDCC balance are as follows:2011 2010Balance at beginning of year $ 147,721 $ 141,948Additions from deferred contributions (Note 7) 5,553 11,876Less amount amortized to revenue (6,321) (6,103)Balance at end of year $ 146,953 $ 147,721Note 9Employee Future Benefit LiabilitiesEmployee future benefit liabilities are comprised of the following:2011 2010Supplemental Executive Retirement Plan (SERP) $ 514 $ 387Less current portion - -$ 514 $ 387(a)Defined benefit plan accounted for on a defined benefit basissupplemental Executive Retirement Plan (SERP)the University provides non-contributory defined benefit supplemental retirement benefits to executives. Anactuarial valuation of these benefits was carried out at June 30, 2011.50 grant Macewan university

Notes to the Consolidated Financial StatementsFor the Year Ended June 30, 2011 (thousands of dollars)The expense and financial position of the supplemental executive retirement plan is as follows:2011 2010expensesCurrent service cost $ 93 $ 91Interest cost 29 21Amortization of net actuarial (gains) losses 4 -Total Expense $ 126 $ 112financial PositionAccrued benefit obligation:Balance, beginning of year $ 425 $ 278Current service cost 93 92Interest cost 29 21Actuarial (gain) loss (4) 34Balance, end of year 543 425Unamortized net actuarial loss (29) (38)Accrued benefit liability $ 514 $ 387the University plans to use its working capital to finance these future obligations.the significant actuarial assumptions used to measure the accrued benefit obligations are as follows:2011 2010Discount rate 5.60 % 5.60 %Rate of compensation increase 4.00 % 4.00 %Inflation rate 2.50 % 2.50 %Estimated average remaining service life 8 9(b) Defined benefit plan accounted for on a defined contribution basislocal Authorities Pension Plan (LAPP)the LAPP is a multi-employer contributory defined benefit pension plan for participating staff members andis accounted for on a defined contribution basis. At December 31, 2010, the LAPP reported an actuarialdeficiency of $4,635,250 (2009 - $3,998,614). An actuarial valuation of the LAPP was carried out onDecember 31, 2010. The pension expense recorded in these financial statements is $8,811 (2010: $7,715).Note 10Long-term LIABILITIESMaturity Interest Amount outstandingCollateral Date Rate % 2011 2010Debentures payable to Alberta Capital Finance Authority:Parkade (1) April 2025 6.25 $ 4,692 $ 4,898Student residence (1) June 2030 5.85 35,747 36,754West parkade (1) Sept. 2030 4.39 5,175 5,340Robbins Health Learning Centre parkade (1) Sept. 2032 4.89 1,659 1,70247,273 48,694obligations under capital leases 291 38947,564 49,083Less current portion 1,581 1,518$ 45,983 $ 47,565Collateral: (1) cash flows from facilitythe principal portion of long-term debt repayments required over the next five years is as follows:2012 - $1,581; 2013 - $1,673; 2014 - $1,770; 2015 - $1,815; 2016 - $1,886 and thereafter - $38,839.Interest expense on long term liabilities is $2,748 (2010 - $2,826).consolidated financial statements 2010/2011 51

Notes to the Consolidated Financial StatementsFor the Year Ended June 30, 2011 (thousands of dollars)Note 11EndowmentsEndowments consist of externally restricted donations received by the University and internalallocations by the University and the endowments are to be held for a period of not less than 10years.Investment income earned on endowments must be used in accordance with the variouspurposes established by the donors or the Board of Governors. Benefactors as well as Universitypractice stipulate that the economic value of the endowments must be protected by limiting theamount of income that may be expended and reinvesting unexpended income.Under the Post-secondary Learning Act, the University has the authority to alter the terms andconditions of endowments to enable:• income earned by the endowment to be withheld from distribution to avoid fluctuations inthe amounts distributed and generally to regulate the distribution of income earned by theendowment.• encroachment on the capital of the endowment to avoid fluctuations in the amountsdistributed 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 University and doesnot impair the long-term value of the fund.In any year, if the investment income earned on endowments is insufficient to fund the spendingallocation then the University has the option to defer the spending allocation, fund the spendingallocation from the University’s operating funds or fund the spending allocation throughencroachment of endowment capital.2011 2010Balance beginning of year $ 30,791 $ 25,446Endowment contribution 8,693 4,132Internal transfer and University support 11 100Investment gain / (loss) 392 1,113$ 39,887 $ 30,791Cumulative contributions $ 40,243 $ 31,491Cumulative encroachment (356) (700)$ 39,887 $ 30,791During the 2011 year, endowment investment income of $3,886 net of fees of $96 (2010 – income$1,104) was used to bring the beginning balance of encroachment $700 (2010 - $1,805) downto $356 and the remaining portion of the investment earnings are deferred and reinvested. Theinterest earned on Access to the Future Fund contributions of $27 was transferred to endowments.At June 30, 2011, $356 was cumulatively encroached upon the principal value of someendowments. To preserve the principal value of the encroached endowments, the Universitydecided not to disburse any expenses on these endowments in 2011/2012.The total endowments market value is $43,428 as of June 30, 2011. Accumulated contributionsand encroachments in the amount of $39,887 are presented in the Endowments and $3,541unused earnings is included in Deferred Contributions. Endowment bank holds $1,800,investments holds $39,000 in long term portfolio and $2,129 in cash, the balance of endowments$499 is held in University’s operating bank.52 grant Macewan university

Notes to the Consolidated Financial StatementsFor the Year Ended June 30, 2011 (thousands of dollars)Note 12Investment Income2011 2010Income on investments held for endowments $ 4,004 $ 1,161Income on other investments 3,888 2,0147,892 3,175transfer from/(to):• deferred contributions (3,571) (29)• deferred capital contributions (25) (13)• endowments (392) (1,113)total investment income $ 3,904 $ 2,020Note 13Investment in Capital Assets and CollectionsNet assets invested in capital assets and collections represent the net book value of capital assets andcollections less unamortized deferred capital contributions and any related debt.2011 2010Capital assets and collections at net book value (Note 6) $ 286,174 $ 255,294Less amounts financed by:Unamortized deferred capital contributions (Note 8) (146,953) (147,721)Long-term liabilities related to capital expenditures (47,565) (49,083)Investment in capital assets and collections, end of year $ 91,656 $ 58,4902011 2010the changes during the year are as follows:Investment in capital assets and collections, beginning of year $ 58,490 $ 48,045Acquisition of capital assets and collections 37,204 13,713Contributions for assets previously funded internally (897) -Long-term liabilities - repayment 1,518 1,505net book value of asset disposals (76) (70)Amortization of investment in capital assets (7,231) (5,582)net change in investment in capital assets 30,518 9,566Contribution of assets not subject to amortization 2,648 879Increase for the year 33,166 10,445Investment in capital assets and collections, end of year $ 91,656 $ 58,490consolidated financial statements 2010/2011 53

Notes to the Consolidated Financial StatementsFor the Year Ended June 30, 2011 (thousands of dollars)Note 14Internally Restricted Net AssetsInternally restricted net assets represents the amount of unrestricted net assets that have been set aside forspecific purposes. Those amounts are not available for other purposes without the approval of the Board anddo not have interest allocated to them. Internally restricted net assets are summarized as follows:AppropriationsBalance atfrom (returnedbeginning of Disbursements to) unrestricted Balance atyear during the year net assets end of yearAppropriations for capital activities:University Service Centre $ 17,919 $ (12,493) $ (4,926) $ 500ERP renewal/tech. enhancement 11,083 (10,114) 2,031 3,000Capital renewal & replacement 7,952 (4,290) 2,500 6,162Music degree - renovations - - 2,500 2,500Infrastructure maintenance 5,000 - - 5,000Campus and Program Development 16,000 (11,875) 20,500 24,62557,954 (38,772) 22,605 41,787Appropriations for operating activities:Program & operating contingency 17,172 - - 17,172Student tuition reinvestment 1,000 - - 1,000Scholarships & bursaries 1,907 (174) - 1,733Sustainability 500 - - 500Special projects 465 (20) - 445Student technology reserve 1,590 (1,246) 698 1,04222,634 (1,440) 698 21,892$ 80,588 $ (40,212) $ 23,303 $ 63,679Note 15Salary & Employee Benefitstreasury Board directive 12-98 under the Financial Administration Act of the Province of Alberta requires thedisclosure of certain salary and employee benefits information.2011 2010otherother Cash Non-cashBase Salary Benefits Benefits(1) (2) (3) Total TotalGovernanceChairman of the Board $ - $ 6 $ - $ 6 $ 7Board Members - 30 - 30 30executivePresident (4) 291 1 344 636 433Provost and Executive Vice President, Academic (5) 238 11 47 296 290vice President, University Services (5) 224 11 45 280 283vice President, Fund Development and CommunityRelations (5) 201 11 37 249 240vice President, Student Services (5) 190 11 32 233 226Executive Director, Human Resources 155 1 25 181 179Executive Director, Strategic Planning 154 1 24 179 18054 grant Macewan university

Notes to the Consolidated Financial StatementsFor the Year Ended June 30, 2011 (thousands of dollars)(1) Base salary includes pensionable base pay.(2) Other cash benefits includes overtime, lump sum payments, honoraria, vacation payouts, and carallowances.(3) Other non-cash benefits include the University’s share of all employee benefits and contributions orpayments made on behalf of employees including pension, health care, dental coverage, out-of-countrymedical benefits, group life insurance, long and short-term disability plan, professional membershipsand tuition. Other non-cash benefits also includes the employer’s share of the cost of additional benefitsincluding Supplemental Executive Retirement Plan, sabbaticals or other special leave with pay, financialplanning services, retirement planning services, concessionary loans, and club memberships.(4) The University provides an automobile, the value of which is not included in other non-cash benefitfigures. Other non-cash benefits includes $279 (2010 - $87) representing the service cost for anapproved sabbatical leave to be taken in the 2011-12 year. The accrued obligation for the sabbatical leaveas at June 30, 2011 is $366. For 2010, other non-cash benefits figure includes the taxable benefit for thepurchase of the University’s leased vehicle.(5) Vice Presidents receive a car allowance, the value of which is included in other cash benefits.Under the terms of the Supplemental Executive Retirement Plan (SERP), executive officers may receivesupplemental retirement payments. Retirement arrangement costs as detailed below are not cash paymentsin the period but are period expense for rights to future compensation. Costs shown reflect the total estimatedcost to provide annual pension income over an actuarially determined post employment period. The SERPprovides future pension benefits to participants based on years of service and earnings. The cost of thesebenefits is actuarially determined using the projected benefit method pro-rated on services, a market interestrate, and management’s best estimate of expected costs and the period of benefit coverage. Net actuarialgains and losses of the benefit obligations are amortized over the average remaining service life of theemployee group. Current service cost is the actuarial present value of the benefits earned in the current year.Other costs include amortization of actuarial gains and losses and interest accruing on the actuarial liability.the current service cost and accrued obligation for each executive under the SERP is outlined in the followingtable:AccruedAccruedObligation Service Interest Actuarial ObligationJune 30, 2010 Cost Cost Loss (Gain) June 30, 2011President $ 201 $ 34 $ 13 $ 3 $ 251Provost and Executive Vice President, Academic 86 21 6 1 114vice Presidents:University Services 61 15 4 - 80Student Services 37 9 2 (2) 46Fund Development and Community Relations 24 12 2 - 38Executive DirectorsHuman Resources 7 1 1 (2) 7Strategic Planning 9 1 1 (4) 7$ 425 $ 93 $ 29 $ (4) $ 543the significant actuarial assumptions used to measure the accrued benefit obligation are disclosed in Note 9.consolidated financial statements 2010/2011 55

Notes to the Consolidated Financial StatementsFor the Year Ended June 30, 2011 (thousands of dollars)Note 16Related Party TransactionsThe University operates under the authority and statutes of the Province of Alberta. Transactionsand balances between the University and Government of Alberta (GOA) are measured at theexchange amount and summarized below.2011 2010Grants from GOAAdvanced Education and Technology:operating $ 111,534 $ 113,135Capital 2,336 4,318Access to the Future Fund 3,002 1,161total Advanced Education and Technology 116,872 118,614other GOA departments and agencies:Ministry of Education grants - 50Ministry of Culture and Community Spirit grant 50 52Alberta Foundation for the Arts 24 -total other GOA departments and agencies 74 102total contributions received 116,946 118,716Less: deferred contributions (8,203) (18)$ 108,743 $ 118,698Accounts receivableother GOA departments and agencies 358 222$ 358 $ 222Accounts payableother GOA departments and agencies 440 287$ 440 $ 287The GOA has provided $4,694 (2010 - $1,840) in matching grants for externally restrictedendowment contributions during the year, which is included in endowment net assets.The University has long-term obligations with Alberta Capital Finance Authority as described inNote 10 Long Term Debt.Note 17BudgetThe University’s 2010-2011 budget was approved by the Board of Governors and was presentedto the Minister of Advanced Education and Technology as part of the University’s submission of its2010-2011 Business Plan.56 grant Macewan university

Notes to the Consolidated Financial StatementsFor the Year Ended June 30, 2011 (thousands of dollars)Note 18Contractual ObligationsThe University has contractual obligations which are commitments that will become liabilities in thefuture when the terms of the contracts or agreements are met.2011 2010Service contracts $ 13,497 $ 12,047Capital projects 183 800Information systems and technology 302 11,500Long-Term leases 2,734 3,229$ 16,716 $ 27,576The estimated aggregate amounts payable for the unexpired terms of these contractual obligationsare as follows:2011InformationService Systems and Long-TermContracts technology Leases Capital total2012 $ 4,325 $ 279 $ 1,303 $ 121 $ 6,0282013 3,234 23 821 17 4,0952014 2,375 - 414 17 2,8062015 2,375 - 156 14 2,5452016 1,188 - 40 14 1,242Thereafter - - - - -13,497 302 2,734 183 16,716Note 19Contingent LiabilitiesThe University is a defendant in a number of legal proceedings. While the ultimate outcome andliability of these proceedings cannot be reasonably estimated at this time, the University believesthat any settlement will not have a material adverse effect on the financial position or the results ofoperations of the University. Management has concluded that none of the claims meet the criteriafor being recorded under GAAP.consolidated financial statements 2010/2011 57

Notes to the Consolidated Financial StatementsFor the Year Ended June 30, 2011 (thousands of dollars)Note 20Canada - Alberta Knowledge Infrastructure ProgramThe Canada - Alberta Knowledge Infrastructure Program (KIP) was established to providefunding in support of capital projects at post secondary institutions in order to offset the impactof the global economic recession by providing employment opportunities. Eligible KIP projectscan receive up to 50% of its funding from Government of Canada contributions through directpayments made by the Province. The remaining portion of funding for KIP projects is made up ofinternal resources, provincial contributions and research grants. The KIP program supports eligiblecosts incurred from February 24, 2009 to March 31, 2011. Amounts received from the Province ofAlberta representing Government of Canada contributions and total eligible costs incurred on KIPprojects are as follows:April 1, 2010 to April 1, 2009 to February 24, 2009March 31, 2011 March 31, 2010 to March 31, 2009 totalContributions $ 2,862 $ 1,151 $ - $ 4,013Total Eligible Costs $ 5,094 $ 1,494 - $ 6,588Note 21Comparative AmountsCertain 2010 figures have been reclassified to conform to the presentation adopted in 2011consolidated financial statements.Note 22Approval of Financial StatementsThese financial statements were approved by the Board of Governors on November 22, 2011.58 grant Macewan university

ContactPhone: 780-497-5000Fax: 780-497-5001Toll free: 1-888-497-4622CampusesAlberta College Campus10050 MacDonald DriveCentre for the Arts andCommunications10045 - 156 StreetCity Centre Campus10700 - 104 AvenueSouth Campus7319 - 29 AvenueAnnual Report 2010/2011 59

Grant MacEwan UniversityP.O. Box 1796Edmonton, Alberta, CANADAT5J 2P2www.MacEwan.ca