Annual Report 2010/11

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