Annual Report 2010/11

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