Annual Report 2010/11

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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
Page 8 and 9: About Grant MacEwanUniversityBoard
Page 10 and 11: 10 grant Macewan universityOperatio
Page 12 and 13: PeopleSoft program has enhanced sys
Page 14 and 15: surveys of baccalaureate students.
Page 16 and 17: Progress Report on Achievement ofSt
Page 18 and 19: The university has developed a rang
Page 20 and 21: external webinars and workshops on
Page 22 and 23: • Complete the implementation of
Page 24 and 25: ecommendations on locations for the
Page 26 and 27: Performance MeasuresMacEwan Univers
Page 28 and 29: Academic Programmingand DeliveryDeg
Page 30 and 31: to enhance services. Implementation
Page 32 and 33: Discussion and AnalysisThe followin
Page 34 and 35: • Expenditures funded through the
Page 36 and 37: ContentsManagement’s Responsibili
Page 38 and 39: Independent Auditor’s ReportTo th
Page 40 and 41: Consolidated Statement of Operation
Page 42 and 43: Consolidated Statement of Cash Flow
Page 44 and 45: Notes to the Consolidated Financial
Page 60: Grant MacEwan UniversityP.O. Box 17

Annual Report 2010/11

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