LAKELAND COLLEGE Annual Repor t 2008 - 2009

LAKELAND COLLEGE Annual Repor t 2008 - 2009

Vermilion CAmpus 

5707 College Drive 

Vermilion, Alberta T9X 1K5 

Lloydminster CAmpus 

2602 - 59 Avenue 

Lloydminster, Alberta S9V 1Z3

ANNUAL REPORT 2008-2009 

1 

CONTENTs 

Board Accountability Statement ......................................................... 3 

Management’s Responsibility for Reporting....................................... 3 

Message from the President................................................................ 4 

Year in Review...................................................................................... 5 

Operational Overview........................................................................... 6 

Board of Governors....................................................................... 6 

Programming................................................................................ 6 

Enrolment..................................................................................... 8 

Facilities........................................................................................ 8 

Staffing ........................................................................................ 8 

Performance Review..................................................................... 8 

Management’s Discussion and Analysis.............................................. 14 

Overview....................................................................................... 14 

Financial Information.................................................................... 14 

Expenses....................................................................................... 15 

Financial Position.......................................................................... 16 

Capital Projects............................................................................. 16 

Areas of Risk................................................................................. 17 

Donors................................................................................................ .18 

Financial Statements............................................................................ 20 

Auditor’s Report........................................................................... 20 

Statement of Financial Position................................................... 21 

Statement of Operations.............................................................. 22 

Statement of Changes in Net Assets........................................... 23 

Statement of Cash Flows............................................................. 24 

Notes to the Financial Statements............................................... 25

2 

ANNUAL REPORT 2008-2009


3 

BOARd ACCOUNTABility sTATEmENT 

The Lakeland College Annual Report for the year ended June 30, 2009 was prepared under 

the Board’s direction in accordance with the Government Accountability Act and ministerial 

guidelines established pursuant to the Government Accountability Act. All material economic, 

environmental or fiscal implications of which we are aware have been considered in the 

preparation of this report. 

Doug Elliott, Chairman 

Lakeland College Board of Governors 

January 2010 

ManagemENT’s ResPONsibility fOR REPORTing 

Lakeland College’s management is responsible for the preparation, accuracy, objectivity and 

integrity of the information contained in the Annual Report including the financial statements, 

performance results, and supporting management information. Systems of internal control 

are designed and maintained by management to produce reliable information to meet 

reporting requirements. The system is designed to provide management with reasonable 

assurance that transactions are properly authorized, reliable financial records are maintained, 

and assets are properly accounted for and safeguarded. 

The Annual Report has been developed under the oversight of the institution audit committee, 

as well as approved by the Board of Governors and is prepared in accordance with the 

Government Accountability Act and the Post-secondary Learning Act. 

The Auditor General of the Province of Alberta, the institution’s external auditor appointed 

under the Auditor General Act, performs an annual independent audit of the financial 

statements in accordance to generally accepted accounting principles. 

Ralph Troschke 

Vice President, Student and College Services 

Lakeland College

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Message fROm the PREsidENT 

Lakeland College is following its new road map closely and it’s 

leading us exactly where we need to go. 

Future Directions – A Road Map Towards Our Next Century is the 

strategic plan we introduced in the 2008-2012 business plan. It 

contains six goals and outlines initiatives to achieve each goal. 

In this annual report we review the progress made towards 

achieving Lakeland’s goals. I’m happy to report that we haven’t 

hit too many bumps on the road. In fact, during the past year we 

successfully introduced a number of new programs and courses, 

our full-time enrolment increased, and our financial performance 

was strong. 

Our faculty and staff continue to be committed to helping our 

students succeed. As you’ll read in the pages that follow, their 

dedication to our students is making a difference. 

Although economic conditions have changed the employment 

market, Lakeland graduates are still doing well. We surveyed the 

Class of 2007 and learned that graduates have an employment rate 

Glenn Charlesworth, President and CEO 

of 93.9 per cent and a median annual salary of $41,930. 

We were fortunate to receive government grants that enabled us to start some priority capital projects. One major project – the Bill 

Kondro Wing – was completed. The two-storey wing at the Lloydminster campus was opened in September 2008. The additional 

space made it possible for Lakeland to grow not for the sake of growth, but grow to meet the real needs of students, businesses, 

communities and organizations in this region and beyond. University studies courses were expanded, a January intake for the practical 

nurse program was added, and event coordinator, massage therapy and pharmacy technician retail programs were offered at the 

Lloydminster campus. 

Renovations to the residence buildings at the Vermilion campus continued. Three modernized buildings opened during the year and in 

April 2009 renovations began in three more dorms. It was reported in the 2008-2012 business plan that unrestricted net assets would 

be used to pay for the residence renovations. Thanks to a strong balance sheet those dollars were not used. 

We are adapting to our role as a Comprehensive Community Institution but we know there is much more to be done. Processes are 

being developed to ensure we are working cooperatively with adult learning partners, school jurisdictions, organizations, industry and 

other community stakeholders to respond to learning needs in the regional service area. Collaboration is vital. 

The costs related to information technology (IT) continue to be a challenge. About two-thirds of the money available to internally 

fund capital items is spent by the IT department. We’ve also experienced higher than normal staff turnover in our IT department. 

Fortunately, that hasn’t been an issue in other departments. In fact, Lakeland recorded its lowest employee turnover rate since 2002. 

As we move forward I know there will be new curves to navigate but by remaining committed to our direction, Lakeland will continue 

to excel not only as we work towards our centenary in 2013, but for years beyond. 

Glenn Charlesworth 

President and Chief Executive Officer 

Lakeland College


5 

Year in Review 

Lakeland’s interior design technology students once again 

excelled in competitions. Pamela Berry of Saskatoon finished 

first and Whitney Jamieson of Maidstone placed fourth in 

an international charette design competition. Based at the 

Vermilion campus, the interior design technology program 

is one of Lakeland’s signature programs. The program also 

received the Excellence in Education Award from the National 

Kitchen and Bath Association (NKBA). The award recognizes 

excellence in design instruction at North American colleges, 

universities and technical institutes and is based on an annual 

review process that all schools with NKBA accreditation must 

complete in order to maintain NKBA certification. Award 

winners were required to earn a score of at least 93 out of a 

possible 100 points. Lakeland earned 95. 

Todd Field received Alberta’s top apprentice award for the 

parts technician trade during the Alberta Apprenticeship and 

Industry Training Board Awards in February 2009. Todd took 

his training at the Vermilion campus. He works at Lakeland as 

an inventory control technician. 

It was golden glory for Lakeland’s curling teams as the mixed 

and women’s curling teams won Alberta Colleges Athletic 

Conference (ACAC) championships. Lindsay Makichuk was 

named skip of the women’s all-star team and Neil Bratrud was 

recognized as skip of the mixed all-star team and ACAC male 

player of the year. 

Basketball star Ossie Hinds, captain of Lakeland’s men’s team, 

was an all-Canadian in addition to an ACAC north division 

first team all-star. As for other accomplishments, women’s 

volleyball coach Austin Dyer was coach of the year for the 

north division and volleyball players Nathan Unruh and 

Brianne Collette were named academic all-Canadians. Scott 

Sigfusson received the all-around cowboy award at the 

Canadian National College Finals. 

Kirk Ferguson-Uhrich, program chair of Lakeland’s sign 

language interpretation program, was in Newfoundland in 

September 2008 to receive the Richard W. Letourneau Service 

Award from the Association of Visual Language Interpreters of 

Canada. The award recognizes his long-standing commitment 

to promoting sign language interpreting and advocacy for the 

deaf. 

After years of planning and 22 months of construction, the 

Bill Kondro Wing at the Lloydminster campus was officially 

opened in September 2008. With 400 classroom seats and 

numerous labs, the wing makes it possible for Lakeland to 

serve hundreds of additional students each year. Features of 

the wing include two 90-seat lecture theatres, three 60-seat 

theatres, a 40-seat classroom, two 40-seat computer labs, 

two five-bed nurses labs with mannequin simulation beds, 

two 24-seat science labs and multimedia space for students 

to do project work. There is almost $1 million worth of new 

equipment and supplies in the science labs alone. The wing 

was named in honour of Bill Kondro in recognition of his 

contributions and commitment to Lakeland, including his time 

spent as the chairman of the board of governors. 

In March 2009, the University of Alberta and Lakeland finalized 

an agreement to transfer paramedic, emergency medical 

technician and emergency medical responder programs from 

the university’s community education unit at the Augustana 

campus to Lakeland. These programs are offered primarily 

online with some days spent in class learning technical skills. 

An energy cabin became part of the Vermilion campus 

landscape in November 2008. The cabin is used for applied 

research purposes and by environmental sciences students 

studying renewable energy systems. The building’s electricity 

comes from wind power and 1.7 kilowatts of solar photovoltaic 

panels. Solar hot water flows through in-floor piping and 

provides enough heat to keep the building warm from March 

until November. Lakeland launched an online renewable energy 

and conservation program in October 2008. 

In March 2009, Lakeland, East Central Alberta Catholic 

Schools and Credenda Virtual High School learned they would 

receive a $700,000 grant from Alberta Advanced Education 

and Technology’s Innovation Fund. The organizations are 

working on a project aimed at expanding access to educational 

and training opportunities for students in rural areas. As part 

of the project, dual credit courses will be developed to allow 

students in Grades 10 to 12 to take courses for credit outside 

of the current curriculum and outside of career technology 

studies. Once completed, the courses will give students 

advanced credit in a Lakeland program. 

In the summer of 2008, Lakeland was the filming site of 

two episodes of YTV’s In Real Life, a reality television show 

featuring youth. Broadcasting of Farm Frenzy and Firefighting 

episodes began in April 2009. 

Designed like mascot Rowdy Rustler, Lakeland’s first corn 

maze was a popular attraction in the fall of 2008. More than 

1,500 people toured the Vermilion campus maze which was a 

joint project of the adventure tourism and outdoor recreation 

program and agricultural sciences.

6 


The Lloydminster campus was converted into an Athletes 

Village for the 1,500 participants who competed in the 2008 

Saskatchewan Summer Games. Lakeland opened its doors 

again as a co-host of the Prairie All Star Soccer event in 

Lloydminster in May 2009. More than 200 athletes from 

Saskatchewan, Northwest Territories and Edmonton stayed in 

residence and took part in seminars at the campus. 

The desire to support a colleague and a student diagnosed 

with cancer sparked instructors in Lakeland’s electrical 

department to join the fight against the disease. As part of a 

local radio station’s radiothon, the instructors offered to do all 

the electrical work for a new home construction project. The 

winning bid for their services was $8,000. 

OPERATiONAL OvERview 

Board of Governors (as of June 30, 2009) 

Doug Elliott, Chairman 

Bob Mottram, Vice Chairman 

Public Member, Lloydminster Region 

Glenn Charlesworth, President and Chief Executive Officer 

Devan Arsenault, Student Member 

Rob Baron, Faculty Member 

Stan Fisher, Public Member, Strathcona County 

Terry Gunderson, Public Member, Strathcona County 

Mary Holtby, Public Member, Saskatchewan 

Sean Kingston, Non Academic Support Member 

Susan Long, Public Member, Vermilion Region 

Craig Solberg, Public Member, Vermilion Region 

Programming 

Lakeland proceeded with many of the program changes 

outlined in its 2008-2012 business plan. 

At the Vermilion campus, pre-employment welder and 

electrician programs ran as did second period intakes for 

instrument technician and steamfitter-pipefitter. The open 

studies program was also offered, but had mixed results. 

Without new funds for the program, it was difficult to respond 

to the individual academic needs of each student. The program 

will likely not continue. 

The opening of the Bill Kondro Wing allowed Lakeland to 

expand programming at the Lloydminster campus. Event 

coordinator, massage therapy and pharmacy-technician 

programs were offered and a January intake was added for 

the practical nurse program. University studies expanded its 

course offerings with beginner’s French I and II, intermediate 

French I and II, two first-year physics classes, and new 

physical education, psychology, sociology and art history 

courses. Two sections of English were added to lower the 

student-to-instructor ratio in the classes. 

Programming was also offered in a number of off-campus 

locations. Lakeland brokered its early learning and child care, 

educational assistant and office administration programs to 

Credenda, a virtual high school in Prince Albert, Sask. 

A total of 108 students registered in Lakeland courses offered 

through Credenda. Lakeland’s educational assistant program 

was also offered in Strathcona County and was brokered to 

Carlton Trail Regional College. Parkland Regional College 

offered Lakeland’s firefighter (NFPA 1001) in Melville, Sask., 

with some onsite training done at the training field at the 

Vermilion campus. 

Sign language interpretation was launched at the University 

of Alberta’s Edmonton campus. Lakeland is the first college to 

offer a program at the Edmonton campus. Three early learning 

and child care courses, one educational assistant course and 

one university studies course were offered in Wainwright. Two 

other courses were canceled due to low enrolment. 

The renewable energy and conservation online program 

started in October 2008. Four of the program’s 10 eight-week 

courses were delivered through eCampusAlberta during the 

academic year. Lakeland increased the number of online 

courses it offers through eCampusAlberta. In fact, Lakeland 

eCampusAlberta registrations increased from 91 in 2007-2008 

to 584 in 2008-2009. The bachelor of applied business: 

emergency services program accounted for the majority of the 

registrations. 

The following programs were offered by Lakeland during the 

2008-2009 academic year. 

Adult development programs 

Academic upgrading 

Transitional vocational 

Applied degree programs 

Bachelor of applied financial services 

Bachelor of applied business: emergency services 

Bachelor of applied science: environmental management


7 

Apprenticeship technical training 

Automotive service technician 

Carpenter 

Electrician 

Heavy equipment technician 

Instrument technician - periods one and two 

Parts technician 

Steamfitter-pipefitter - periods one and two 

Welder 

Certificate and diploma programs 

Accounting technician 

Adventure tourism and outdoor recreation 

Advanced business administration 

Agribusiness 

Agro-environmental technology 

Animal health technology 

Animal science technology 

Appraisal and assessment 

Business administration 

Child and youth care 

Conservation and restoration ecology 

Crop technology 

Dairy production 

Disability studies 

Early learning and child care (certificate and diploma) 

Educational assistant 

Emergency services technology 

Employment skills enhancement 

Environmental conservation and reclamation 

Environmental protection technology 

Esthetician 

Event coordinator 

Financial services 

Firefighter (NFPA 1001) 

General agriculture 

Heavy oil operations technician 

Human resource management 

Interior design technology 

Livestock production 

Management 

Management development 

Massage therapy 

Office administration 

Pharmacy technician – retail 

Practical nurse 

Pre-employment (welding and electrical) 

Professional accounting 

Ranch and feedlot rider 

Renewable energy and conservation 

Sign language interpretation 

Wildlife and fisheries conservation 

University studies 

Popular transfer routes include: 

• Arts 

• Commerce 

• Education 

• Science 

• Social work 

• Pre-dentistry 

• Pre-medicine 

• Pre-pharmacy 

• Pre-veterinary medicine 

Credit continuing education 

Emergency medical responder 

Fourth class power engineering 

Gas process operator 

Health care aide 

Pesticides 

Pesticides dispenser 

Sign language and deaf studies 

Credit general studies 

Firefighting and emergency services training 

General skills training 

Short or part-time non-credit 

AutoCad operator* 

Computer essentials* 

Petroleum office technician* 

Residential decorating* 

Truck driver training* 

Non-credit 

Open studies – leisure and interest* 

Collaborative degree programs 

Athabasca University 

• Bachelor of commerce 

• Bachelor of management 

• Bachelor of general studies – applied studies 

University of Calgary 

• Bachelor of social work* 

• Master of education (educational leadership)* 

*Programs with an asterisk are not included in the FLE count.

8 

Enrolment 


Credit student headcount 

Full-time Part-time Total 

2006-07 2,692 4,175 6,867 

2007-08 2,881 5,191 8,072 

2008-09 3,208 4,511 7,719 

Credit full-load equivalents (FLEs) 

2006-07 - 1,778 

2007-08 - 1,928 

2008-09 - 2,051 

FLEs by credential 

Diploma and post 

2006-07 2007-08 2008-09 

basic diploma 670.547 654.982 668.209 

Apprenticeship 241.729 313.163 314.954 

University studies 

applied degree 256.756 270.108 311.413 

Career certificate 377.626 378.668 455.418 

No credential 

not applicable 231.543 311.076 301.155 

Total 1,778.201 1,927.997 2,051.149 

Retention rate 

2006-07 2007-08 2008-09 

Certificate programs 70.1% 73.5% 78.2% 

Diploma programs 82.7% 88% 89.1% 

Facilities 

The new Bill Kondro Wing was officially opened in September 

2008. Located at the Lloydminster campus, the wing has 

lecture theatres, classrooms, computer labs, nursing and 

sciences labs and a student lounge. 

Residence renovations continued at the Vermilion campus. 

Three modernized buildings were opened to students during 

the year and in April 2009 renovations began in three more 

dorms. Additional buildings will be modernized during the 

2009-2010 year. 

Other projects that started or continued during the year 

include renovation of the Trades Centre mezzanine and 

upgrades to the Applied Engineering building. Installation of 

security CCTV continued. 

Vermilion campus 

Site area: 204.9 hectares 

Off site: 9.3 hectares 

Agricultural land: 62.86 hectares 

Non-residential building area: 50,838.80 sq. m 

Residence accommodation: Single beds – 544; 

family units – 17 

Lloydminster campus 

Site area: 26.70 hectares 

Non-residential building area: 17,258 sq. m 

Residence accommodation: Single beds – 256; 

family units – 48 

Staffing 

The downturn in the economy temporarily lightened Lakeland 

College’s previously identified concerns for attracting 

new staff. During the past year, Lakeland experienced its 

lowest turnover rate since 2002. With fewer people leaving 

the organization, coupled with the rise in the region’s 

unemployment rate, Lakeland experienced increased 

interest in available positions. However, it remains critical 

that Lakeland continues preparing its own people for future 

opportunities within the organization as nearly 30 per cent of 

faculty and administrators at the college are 55 years of age 

or older. 

The average number of employees at Lakeland each month 

was 609. This includes full-time, part-time, temporary, 

sessional, casual, student, government sponsored and 

contract employees. 

Permanent and continuing staff 

2006-07 2007-08 2008-09 

Administration 

Full-time 47 48 49 

Faculty 

Full-time 102 109 111 

Part or reduced time 5 5 5 

AUPE 

Full-time 157 160 167 

Part-time 7 9 9 

Performance Review 

Goals, Initiatives and Outcomes 

In working towards fulfilling its mission of inspiring learners 

to realize their individual potential, Lakeland included in its 

2008-2012 business plan six goals and developed initiatives 

for each goal. Details follow about Lakeland’s progress toward 

achieving its 2008-2009 objectives. 

Goal – Ensuring sustainable growth 

Initiatives 

1. Create high performance teams. 

Objectives for 2008-2009 

• Develop a database of potential employees. 

• Improve the new employee orientation program.


9 

• Expand “Lakeland 101”, an ongoing staff training program. 

• Expand the Green ‘n’ Gold employee recognition program to 

include an award that recognizes the accomplishments of a 

group of employees. 

• Improve performance management system. 

Analysis 

E New employee training: Monthly orientation sessions were 

offered and an orientation checklist for new employees was 

developed and used. 

E Green ‘n’ Gold group nominations were accepted. Eleven 

nominations for teams were submitted. 

E Sub-committee completed review of the Administrative 

Group Performance Review which took effect Nov. 1, 2008. 

E Internal training calendar was developed. 

E In April 2009, 204 employees participated in an internal 

staff survey. Employees were asked to rate their level 

of agreement with a number of statements. Responses 

were based on a scale of 1 to 5 with 5 indicating strong 

agreement. 

N I am proud to work at this institution. 4.24 

N I have adequate opportunities for training to improve my 

skills. 3.74 

N The type of work I do on most days is personally 

rewarding. 3.74 

N Rate your overall satisfaction with your employment at 

Lakeland. 4.03 

2. Collaborate with industry, government and post-secondary 

institutions in Alberta and Saskatchewan to offer programs 

that respond to current and emergent needs and interests of 

the region and/or provinces. 


• Offer courses in Wainwright. 

• Host an internal celebration of Lakeland successes. 

• Learn more about the needs of businesses in region. 

• Promote programs and courses to industry partners. 

Analysis 

E Three early learning and child care courses (six students), 

one educational assistant course (two students) and one 

university studies course (13 students) were offered in 

Wainwright. Two other courses were canceled due to low 

enrolment. 

E A staff golf tournament was held in August 2008 to 

celebrate the accomplishments of the previous year and get 

energized for the new academic year. 

E Programs and courses were promoted to industry partners 

who are members of advisory committees. 

E Lakeland joined the Wainwright on Wellness committee to 

deliver a school-based mental health program that targets 

youth and families. 

3. Excel at marketing and enrolment management. 


• Develop a retention plan. 

• Hold a College Student Success course for incoming 

students the week before fall classes begin. 

• Boost guerrilla marketing efforts to increase awareness of 

Lakeland. 

• Increase use of alumni in promotional campaigns. 

• Increase familiarity of Lakeland among elected and employed 

government officials. 

Analysis 

E Inaugural College Student Success course attracted 29 

participants. Eighty-eight per cent of the participants 

reported they would recommend the course to friends. 

E More than 1,000 junior and senior high school students 

received Lakeland shirts during the 2008 Summer Games in 

Lloydminster and about 300 athletes took home a Lakeland 

shirt from the Prairie All-Star Soccer event in Lloydminster. 

In addition, all people accepted into a Lakeland program 

received a shirt and, in August 2008, all staff received a 

Lakeland jacket. 

E Alumni spoke at program information sessions and 

testimonials were used in the viewbook and on the website. 

Additional alumni success stories were published in the 

newsletter Lakeland Link and alumni publication Alumni 

Pride. 

E Full-load equivalents increased by six per cent from the 

previous year and full-time student headcount increased by 

11 per cent. 

E Number of visits with elected and employed government 

officials: President Glenn Charlesworth – 39; Board of 

Governors Chairman Doug Elliott – 25. 

4. Align programming with the strategies and priorities of 

government. 


• Add a second intake for the practical nurse program to 

support Advanced Education and Technology’s goal of 

increasing the number of licensed practical nurse graduates 

from 559 to 1,000 by 2012.

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• Offer second period intakes for instrument technician and 

steamfitter-pipefitter to support Advanced Education and 

Technology’s goal of increasing seats in high demand areas 

such as trades. 

Analysis 

E A January intake of practical nurse students was added, 

resulting in an increase from 21 first year students in 

2007-08 to 43 first year students the following year. 

Lakeland continues to broker the program from NorQuest 

College. 

E Ten students registered for the second period of instrument 

technician and 22 students registered for the second period 

of steamfitter-pipefitter. 

Goal – Investing in Lakeland infrastructure 

Initiatives 

1. Commitment to Lakeland campuses. 


• Complete a facilities master plan. 

• Update infrastructure renewal plan and prioritize projects. 

• Preventative maintenance program underway with the 

assistance of Magic software. 

• Link the information technology infrastructure plan to 

Lakeland’s strategy and share plan with schools and 

departments. 

• Have current and up-to-date information technology 

systems and equipment to meet prioritized student and staff 

expectations. 

• Renovate two residence buildings at the Vermilion campus. 

Analysis 

E Department feedback on facilities master plan was 

completed. Kasian Architecture is incorporating feedback 

into the final plan which will be complete in the 2009-10 

year. 

E The three year infrastructure renewal plan was updated. 

E Three modernized residence buildings were opened to 

students during the year and in April 2009 renovations 

began on three more dorms. 

E Strategic planning action committee defined “current” as 

hardware that is less than five-years-old. 

E Information technology’s strategic plan was shared with 

Lakeland personnel in June 2009. 

2. Supportive friends. 


E Receive additional government grants to address 

infrastructure needs. 

E Complete enough maintenance projects to change the 

facilities condition index of the campuses. 

E Create a list of potential donors, including alumni, 

businesses and individuals. 

E Launch a centennial fundraising campaign. 

Analysis 

E In August 2008, the Alberta government announced 

Lakeland would receive $15.25 million to address priority 

capital maintenance projects, including upgrading the 

Applied Engineering building at the Vermilion campus, 

updating the fire alarm system at the Vermilion campus, 

and upgrading the security infrastructure at both campuses. 

E The federal government announced in May 2009 that 

Lakeland would receive $1.4 million through the Knowledge 

Infrastructure Program to upgrade the high voltage 

distribution system at the Vermilion campus. Money for 

this $2.8 million upgrade was also received from the 

Government of Alberta. 

E Centennial fundraising campaign was not launched. 

Goal – Fostering a people-centred environment 

Initiatives 

1. Focus on student success. 


• Minutes and recorded decisions will include a student impact 

statement. 

• Operationalize “Live the Learning”. 

Analysis 

E All Executive Team minutes now include a student impact 

statement. 

E School of Agricultural and Environmental Sciences 

implemented an early alert system to identify students who 

need assistance. 

E Renovations to convert Beta residence into a barrier-free 

residence began in the spring. Automatic doors, wider 

doors, barrier-free bathrooms, lower kitchen counters and 

main floor laundry facilities are among the changes being 

made. 

E In the 2008-09 student satisfaction survey, students were 

asked if their Lakeland experience met their expectations. 

Eighty-six per cent of respondents said their Lakeland


11 

experience met or exceeded their expectations, a drop from 

89 per cent the previous year. Asked if they had to do it all 

over again, would they enrol at Lakeland again, 80 per cent 

said yes compared to 81 per cent the previous year. 

E A graduate survey of members of the Class of ’07 showed 

that Lakeland graduates are succeeding. Of the people 

surveyed, 93.9 per cent said they were employed, 91 per 

cent said they recommend Lakeland to others and 87.2 per 

cent said the benefits of their Lakeland education outweigh 

the financial costs associated with post-secondary 

education. The median annual salary of graduates was 

$41,930, slightly higher than the provincial average of 

$40,000 reported among Class of 2006 certificate and 

diploma graduates in the Alberta Advanced Education and 

Technology October 2008 Facts and Figures pamphlet. 

2. Ignite passion in employees. 


• Improve the new employee orientation program. 

• Provide supervisors with an employee commencement 

checklist to ensure new employees are welcomed to Lakeland 

and informed of key information. 

• Encourage input from new employees on how to improve 

orientation process. 

Analysis 

E Monthly orientation sessions for new employees were 

added. 

E An employee commencement checklist was developed and 

is being used by supervisors. 

E Employees completed feedback forms after orientation 

activities. 

E In April 2009, 204 employees participated in an internal 

staff survey. Employees were asked to rate their level 

of agreement with a number of statements. Responses 

were based on a scale of 1 to 5 with 5 indicating strong 

agreement. 

N I am proud to work at this institution. 4.24 

N I have adequate opportunities for training to improve my 

skills. 3.74 

N The type of work I do on most days is personally 

rewarding. 3.74 

N Rate your overall satisfaction with your employment at 

Lakeland. 4.03 

3. Bolster College pride. 


• Recognize and celebrate achievements on both campuses. 

• Publish stories about the accomplishments of alumni in staff 

and student newsletters and in appropriate media. 

Analysis 

E Awards night and graduation ceremonies were held at both 

campuses. 

E Twelve stories about alumni were published in the 

newsletter Lakeland Link. 

4. Towards 2013. 


• Ensure that students, employees, alumni and community 

members know centenary activities are being planned. 

• Give employees the opportunity to be involved in the 

planning. 

• Launch a centennial fundraising campaign. 

Analysis 

E Email blasts and articles in the newsletter Lakeland Link 

invited people to join the planning committee. The first 

article was published in the Sept. 15, 2008 edition of the 

Link. 

E The centennial fundraising campaign launch was deferred 

to the 2009-10 year. 

5. Strengthen communication. 


• Strengthen relationships with and awareness of Lakeland in 

the community and surrounding area. 

• Purchase and install electronic display monitors at both 

campuses to provide information on various topics and 

events. 

• Continue development and enhancement of the Lakeland 

website to provide accurate, concise and user-friendly 

information. 

• Add newsletter Lakeland Link to the website and make 

media, alumni and community members aware that the Link 

is available online. 

Analysis 

E Lakeland Link was added to the website and throughout 

the year, the page was accessed 2,057 times. Midway 

through the year, the Link was also uploaded to Yudu, a 

free e-document site. The 21 issues on Yudu were viewed a 

total of 5,346 times. The Link is also emailed to media and

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advisory committee members, adult learning councils in the 

region and high schools in Western Canada. 

E Report to the Community was distributed via Canada Post 

to 29,850 homes within 100 km of Lakeland campuses. 

E Website consultation with Noel-Levitz concluded in early 

2009. 

E Virtual tours, a comprehensive calendar of events, a new 

campus life template and customized FAQ service were 

added to the website. Embedded video became more 

common and a new library website went online in the 

spring. 

E Ongoing search engine optimization consultation was 

started to improve the rankings of Lakeland program pages. 

E Forty-four e-mails were sent to 8,145 addresses. These 

e-mail campaigns started in November 2008 with weekly 

welcomes to prospective students as well as specific 

e-mails related to news, admissions information, activities 

and events. The open rate average was 27 per cent. 

Goal – Engaging our community 

Initiatives 

1. Cultivate partnerships with government. 


• Develop key messages and advocacy protocol guide. 

• Create inventory of staff, student, board, and alumni linkages 

with elected officials. 

• Hold brown bag luncheons with employees to share key 

messages and discuss their role in advocacy. 

Analysis 

E Key priorities document was created and used by the board 

of governors. 

E A list of people who have connections with elected officials 

was compiled. 

E Key messages document to be created in 2009-2010. 

2. Support our region. 


• Provide consistent training for all staff and faculty on the 

issue of public relations and dealing with the media. 

• Ensure Lakeland presence at local and regional events. 

• Clarify policy for external use of College facilities. 

• Add newsletter Lakeland Link to Lakeland’s website and 

make media, alumni and community members aware that the 

Link is available online. 

Analysis 

E Lakeland Link was added to the website and throughout 

the year, the page was accessed 2,057 times. Midway 

through the year, The Link was also uploaded to Yudu, a 

free e-document site. The 21 issues on Yudu were viewed a 

total of 5,346 times. The Link is also emailed to media and 

advisory committee members. 

E Lakeland was well represented by employees, students and 

board members at lots of events throughout the region. 

3. Work with industry. 


• Revitalize program advisory committee process, objectives 

and rationale. 

• Maintain list of employer and industry contacts. 

Analysis 

E A new advisory committee policy was created through a 

sub-committee of deans and chairs. 

4. Raise the College’s profile. 


• Encourage student involvement in community; promote 

citizenship 

• Strategic recruitment of high profile members for program 

advisory committees. 

Analysis 

E An email was sent to all faculty asking them to talk to 

students about community involvement. 

E Student newspapers published information about volunteer 

opportunities. 

Goal – Funding our future 

Initiatives 

1. Increase financial resources. 

• Contract a grant researcher to search, write and prepare 

grant applications. 

• Continue the alumni annual giving campaign. 

• Launch a centennial fundraising campaign. 

• Increase contact with people who have attended Lakeland 

since 1998 in an effort to foster future donations. 

• Initiate an internal campaign. 

• Cultivate a culture of philanthropy among current students. 

Analysis 

E A manager of grants and foundations was hired in 

November 2008.


13 

E A total of $8,540 was donated by 137 alumni during the 

alumni annual giving campaign. 

E About 2,500 Christmas cards were mailed to alumni who 

graduated during the past three years. 

E Centennial fundraising campaign was deferred to 2009-10. 

E An internal philanthropy training guide was distributed 

to interested people and about 150 employees attended 

sessions to learn about the philanthropic process at 

Lakeland. 

2. Ensure efficient and effective use of financial resources. 


• Internally review each program. 

• Gather benchmark statistics and set targets for FLEs, 

retention, graduate satisfaction, graduate employment, cost 

per FLE and operational expenses. 

Analysis 

E There were 34 programs reviewed internally. Seven 

agricultural sciences programs underwent a comprehensive 

review. 

E Benchmark statistics were compiled and will be used by 

enrolment management steering committee for setting 

targets. 

Goal – Providing innovative programs 

Initiatives 

1. Relevant programs, focused curriculum. 


• Define program profiles. 

Analysis 

E Templates were created and profiles developed for 100 per 

cent of full-time credit programs. 

2. On target. 


•Determine if evaluation processes with action plans are in 

place for programs and faculty. 

Analysis 

E All course/instructor evaluations are completed online by 

students within two weeks of the completion of the course. 

E Instructor evaluations are on target. 

3. Modern technology. 


• Create a committee and establish a plan to enhance learning 

through technology and alternate delivery. 

• Complete transition to a wireless campus. 

Analysis 

E A committee was established with representation from all 

schools at Lakeland. 

E Transition to a wireless campus was completed in June 

2009. 

4. Lifelong learning. 


• Establish relationship with Wainwright’s community adult 

learning council. 

• Establish relationship with one other council within 

Lakeland’s geographic region. 

Analysis 

E Lakeland met with representatives from Wainwright 

and District Council for Adult Lifelong Learning and 

Lloydminster Learning Council Association to gather input 

for the institutional access plan. 

E Lakeland Link is emailed to adult learning councils in the 

region. 

EVER TO EXCEL

14 


ManagemENT’s DisCUssiON ANd ANALysis 

Overview 

Management’s Discussion and Analysis should be read in conjunction with Lakeland’s annual audited financial statements and 

accompanying notes. These statements are reviewed and approved by the Lakeland College Board Audit Committee then forwarded to 

the Lakeland College Board of Governors for approval. 

In the 2008-2012 business plan, Lakeland budgeted an $800,000 deficit for the 2008-2009 year but the result was an excess of 

$437,000 of revenue over expenses. This $1.2 million variance is attributed to additional grants ($5.5 million), tuition ($800,000) and 

sales, rentals and services ($1 million) revenue exceeding budgeted amounts. These additional revenues were offset by supplies and 

services expenses of $7.1 million relating to grant spending and renovations to the Vermilion campus residences. 

In comparison to the 2007-2008 year, total revenue for 2008-2009 increased by $5.3 million while expenditures increased by $9.3 

million inclusive of the $4.4 million of renovation expenses related to the Vermilion campus residences. Revenue increase was mainly 

attributed to grants ($4.4 million), tuition ($400,000) and amortization of deferred capital contributions ($700,000) which increased 

as a result of the grant and donor funding spent on the Bill Kondro Wing expansion at the Lloydminster campus. The expense line 

increases relate to salaries and benefits ($2.5 million), supplies and services (including the Vermilion campus residence renovations) 

of $5.8 million and amortization of capital assets which increased as a result of the September 2008 opening of the Bill Kondro Wing. 

Financial Information 

Revenues 

Total revenues increased 8.8 per cent from $57 million in 2007-2008 to $62 million in 2008-2009. The following table details the 

revenue sources of Lakeland as presented in the audited financial statements. 

Revenue By Source 

2007 2008 2009 

Grants $ 28,105,537 $ 32,449,903 $ 36,821,751 

Tuition and related fees 10,892,314 10,304,775 10,746,780 

Sales, rentals and services 4,989,706 5,361,073 5,611,361 

Amortization of deferred capital contributions 2,486,207 2,578,117 3,292,462 

Contract revenue 4,917,143 2,676,791 2,205,562 

Investment income 807,262 1,060,282 877,119 

Donations 289,169 241,548 186,464 

Other 1,868,102 1,917,655 2,196,005 

Total Revenue $ 54,355,440 $ 56,590,144 $ 61,937,504 

Government grants 

Grant revenue represented about 59 per cent of Lakeland’s total revenue in 2008-2009, an increase of $4.4 million or 13 per cent 

from the previous year. Grants received from Advanced Education and Technology include base operations grants of $28.1 million 

(2007-2008 – $26 million), conditional grants of $4.2 million (2007-2008 – $1.8 million), as well as enrolment planning funding of 

$3.3 million (2007-2008 – $3.5 million). Conditional funding received from the Government of Saskatchewan was approximately $1.3 

million which was up slightly from the $1.2 million received in 2007-2008. 

The general operating grant increase of $2.1 million is made up of the six per cent budgeted increase of $1.6 million, a $300,000 

facility operations grant for the Bill Kondro Wing, and $200,000 tuition fee grant increase.


Conditional grants increased by $2.4 million, due primarily to infrastructure spending on various repair and maintenance projects 

throughout Lakeland. In addition, $12.7 million in infrastructure grants that were received in 2008-2009 were not spent as of June 30, 

2009. This money will be utilized for projects in future periods. 

Tuition 

Tuition revenue increased about $440,000 due to a significant increase in credit tuition fee revenue along with a decrease in non-credit 

programming tuition revenue. Credit tuition revenue increased by $1 million. This figure corresponds with the 6.5 per cent increase 

from the previous year in Full Load Equivalents (FLE). In addition, credit tuition fees were increased by the maximum allowable amount 

of 4.6 per cent for existing programs. 

New programs including event coordinator, renewable energy and conservation, pre-employment electrician, pre-employment 

welder and sign language interpretation accounted for 29 per cent of the FLE increase. The remaining growth is attributed to current 

programming particularly in the university studies and applied degree areas. Non-credit tuition decreased approximately $826,000 

which is reflective of the shift in the emergency training centre’s programming to credit programming and the closure of the 

Strathcona County learning centre. 

Amortization of deferred capital contributions 

In 2008-2009, amortization of deferred capital contributions increased by $714,000 to $3.3 million. This reflects increased externally 

restricted funding provided for capital asset acquisitions which are subject to amortization. The opening of the Bill Kondro Wing in 

September 2008 accounted for the majority of the increase. 

Investment income 

Lakeland’s total investment income increased $31,000 to $1.6 million in 2008-2009 (see Note 17 of the audited financial statements). 

A significant portion of this investment income relates to the unspent grant funds. The investment income received from these funds 

was allocated to deferred contributions and deferred capital contributions as opposed to being reflected as investment income on 

the statement of operations. This is why investment income as reported in the statement of operations is $877,000 which is down 

$184,000 from the 2007-2008 total of $1,061,000. This decline in investment income is a result of the volatility and weakening of the 

markets in 2008-2009. Investment market challenges contributed to the $1.6 million reduction of Lakeland’s investment portfolios as 

detailed in Note 11 of the audited financial statements. 

Expenses 

Total expenses increased from $52.2 million in 2007-2008 to $61.5 million in 2008-2009, an increase of 17.8 per cent. Of this amount, 

$4.4 million was directly related to the renovation of the Vermilion campus residences compared to $800,000 spent on the residences 

in 2007-2008. The following table details Lakeland’s expenses as presented in the audited financial statements. 

15 

Expense By Source 

2007 2008 2009 

Salaries and benefits 26,826,878 29,268,210 31,778,421 

Supplies and services 15,961,468 15,551,065 21,350,974 

Amortization of capital assets 4,444,772 4,731,510 5,496,614 

Utilities 1,849,871 1,841,927 2,179,431 

Severance payments 135,142 124,345 - 

Interest expense 227,344 310,928 330,422 

Scholarships and bursaries 374,835 366,505 355,405 

Loss (gain) on disposal of assets (6,367) 48,826 9,778 

Total expenses 49,813,943 52,243,316 61,501,045

16 


Salaries and benefits 

As shown in the Expense by Source table, salaries and benefits account for, on average, approximately 54 per cent of the total 

expenditure budget. In 2008-2009 this expense line increased by about nine per cent from the previous year because of negotiated 

contract settlement increases and the need for more staff to accommodate new programming and Lakeland’s enrolment increase. 

Supplies and Services 

In 2008-2009, supplies and services expenses were $21.4 million which is $5.8 million more than what was spent in 2007-2008. 

Compared to the previous year, about $3.8 million was spent on renovating the Vermilion campus residences. The remaining $2 million 

is attributed to the additional spending on infrastructure funded maintenance projects such as the security system, fire alarm, Trades 

Centre mezzanine renovation and the Applied Engineering upgrade. 

Amortization of capital assets 

Due primarily to the September 2008 opening of the Bill Kondro Wing, amortization expenses increased $800,000. 

Financial Position 

Net Assets 

Lakeland’s net asset balance at the end of 2008-2009 was $28.9 million which is $400,000 less than the previous year’s amount. The 

net asset balance is reported in four major categories: 

• Endowments: The endowment balances increased by $331,000 for an ending balance of $2.3 million. 

• Unrestricted: Lakeland’s unrestricted net assets balance at year end was $1.3 million which includes an adjustment for the unrealized 

loss on investments of $724,000 as detailed in Note 11 of the financial statements. In the 2008-2009 year, $11.2 million was 

transferred from unrestricted into restricted funds representing future spending initiatives of $4.5 million for further residence 

renovations, $2.7 million for new residence construction and $4 million for agricultural initiatives. The remaining decrease in 

unrestricted funds pertains to appropriations held with the Town of Vermilion regarding the joint operation of the swimming pool and 

with Alberta Environment regarding the pesticides program Lakeland helps deliver. 

• Internally restricted: Internally restricted net assets represent amounts set aside by Lakeland for specific purposes. These amounts 

are not available for use without approval from the board of governors. The balance increased from $100,000 to $11.4 million in 

2008-2009 which represents the board and management’s commitment to have the appropriate resources available for initiatives 

that support Lakeland’s strategic priorities. Details of these prioritized projects are in the previous paragraph on unrestricted net 

assets. 

Invested in capital assets: Net assets invested in capital assets increased from $11.5 million in 2007-2008 to $14 million in 2008-2009. 

This $2.5 million increase represents the investment in capital that Lakeland has undertaken, particularly in the areas of computer 

hardware and software ($1.6 million) and milk quota ($280,000), as well as the purchase of a fire truck ($202,000). 

Investments 

The cash, short term investment and cash equivalents balance at year end was $32 million, an increase of $13.6 million over the 

previous year. This increase is primarily due to the receipt of capital and infrastructure grants from the Government of Alberta that 

were not expended at June 30, 2009. 

The long-term investment balance decreased by $809,000 which includes an unrealized investment loss of $724,000 as disclosed 

in Note 11 of the financial statements. Lakeland has elected to record its investments utilizing the available for sale method whereby 

gains or losses in investments are disclosed in the investment section of the statement of financial position and in the net assets or 

deferred contributions section until the asset is removed from the statement of financial position. 

Capital Projects 

In the 2008-2009 year, Lakeland spent $3.8 million on computer hardware, computer software, vehicles, equipment, furnishings, 

library additions and milk quota. 

In addition, $1.5 million in buildings and $1.3 million for furniture and equipment was spent in 2008-2009 to complete the Bill Kondro 

Wing. This brought the total cost of the project to $12.5 million which includes $10.6 million on the building and site, and $1.9


17 

million for furniture and equipment. About 89 per cent of this project was funded by Alberta Advanced Education and Technology via 

infrastructure and renaissance grants and the remaining 11 per cent of the funding was provided from donors. 

As for other projects, as of June 30, 2009, 90 per cent of security updates were finished, the fire alarm upgrade was out for tender and 

design of the following Lakeland projects was underway: water treatment facility for fire etc., Lakeland’s emergency training centre, 

Applied Engineering building upgrade, Trades Centre mezzanine, student activity centre, Alumni Hall lift, and high voltage system 

upgrade. 

Areas of Risk 

Deferred maintenance 

In July 2002, the value of Lakeland’s supported total deferred maintenance was almost $9.9 million. Lakeland received a $1.4 million 

IMP grant in 2008-2009 – an increase from the previous sum of $464,000 a year – to help address deferred maintenance. However, 

escalation of costs has prevented Lakeland from getting even close to catching up. As of June 30, 2009, Lakeland’s supported 

deferred maintenance when adjusted for construction cost inflation was approximately $10.9 million. This doesn’t include unsupported 

items such as parking lots, roadways and residence buildings. 

Accurate budgeting 

Creating a financially sound and realistic budget is a challenge. Some of the factors impacting Lakeland’s budget process include: 

• The expectation that there will be no increase – and may be a decrease – in the general operating grant. 

• Negotiated salaries in excess of funding increases. 

• A tuition policy that limits tuition increases to rates below internal inflation rates. 

Lakeland is committed to addressing these budgetary pressures and will work closely with the Government of Alberta to develop longterm 

strategies to ensure that it can continue to deliver on its mandate and successfully implement its strategic plan.

18 


Donors 

Lakeland College thanks the many people and organizations who made a donation to the college between July 1, 2008 and June 30, 

2009. Our thanks also to the many donors who chose to make their contribution anonymously. Our apologies to anyone whose name 

we may have inadvertently missed. 

Agland 

Agriculture Financial 

Services Corporation 

Alberta Agriculture and Rural Development 

Alberta Assessors’ Association 

Alberta Blue Cross 

Alberta Business Education Association 

Alberta Treasury Branches 

Alberta Veterinary Medical Association 

Mark Alexander 

Glen and Linda Amundrud 

Angus Acres 

Animal Nutrition Association of Canada 

- Alberta Division 

Apple Drugs (Vermilion) 

Aramark Canada Ltd. 

Ardrossan Electric 2007 Ltd. 

Monte and Chris Armstrong 

Eleanor Astle 

ATCO Electric 

ATCO Gas 

Howard Austin 

Baddock’s Power Products Ltd. 

Duane Baldwin 

Keith Baker 

Barrhill Farms Ltd. 

Battle River Community Foundation 

BBNS Holdings Ltd. 

Bill Bentley 

Jo Berglund 

Bert Duncan Trailer Sales (2007) Inc. 

Bill Bocock 

BioResource Technologies 

Bluebird Truck Service Ltd. 

Boardom/Edyak Holdings Ltd. 

Bob Jack’s Sheet Metal Ltd. 

R.T. Bocock 

Lonnie Boothman 

Border City Concrete Ltd. 

Border Rock 106.1 The Goat 

Boundary Ford Sales Ltd. 

Robin Bourgonje 

Susan Brazeau 

Brian D. Larson Consulting Inc. 

Brian Schaumleffel Contracting 

Larry Bright 

Doug Brite 

Colin Broland 

Bry Sand Ice Arena Ltd. 

James W. Calderwood 

Mary Callander 

Robert Cameron 

Canadian Heavy Oil Association 

Canadian National Railways 

Canadian Natural Resources Limited 

Duncan Carey 

Cargill Limited 

Deanna M. Carter 

Castle Mountain Titans Basketball 

Cavalier Contracting 

CE Franklin Ltd. 

Denis Champagne 

Child and Youth Care Association 

Murray Coburn 

Coca Cola Bottling 

Colchester & District 

Agricultural Society 

College universitaire De Saint-Boniface 

John Connelly 

Convergint Technologies 

Shelly M. Corbiere 

County of Vermilion River No. 24 

Dave Cowan 

CPANSA and WMA 

Craig’s Vermilion Ltd. 

Cummins Western Canada 

Chad Cunningham 

Rex Cunningham 

Mary Daigneault 

Darmac Appraisals Ltd. 

Rosabelle Daugela 

Betty Dennett 

Doreen Der 

Devon Canada Corporation 

Greg Dewing 

Jason and Heather Dewling 

Doc Holidays Charters Ltd. 

Dr. Celia Takahashi Inc. 

Dr. Jack W. Chu Inc. 

Dr. Michael Henry Inc. 

Bev Dombrova 

Don Mazankowski Scholarship Foundation 

Bob A. Douglas 

Dakota Dustow 

Jeff Dustow 

Eagle Valley Industries Ltd. 

Eastalta Co-op Ltd. 

Ecochem Canada Ltd. 

Tracy Eger-Zaharko 

Doug and Joan Elliott 

Ken Emes 

End of the Roll 

Falcon Auto Leasing Inc. 

Farm Credit Canada 

Farmfair Hereford Show & Solitaire Classic 

Bert Featherstone 

David Fedun 

Ferbey Sand and Gravel Ltd. 

Joan Ferguson 

Roman Filipkowski 

Randy Fines 

Laura Finlayson 

Karen D. Firlotte 

First Alarm Accessories Ltd. 

Ken B. Fisher 

Flint Fluid Haul Services Ltd. 

Florence Productions Inc. 2008 

Focus 

Fountain Tire Ltd. 

Myrna G. Fox 

Frank’s Saddlery & Supply Ltd. 

Frontier Peterbilt Sales Ltd. 

Fulkerth Services Ltd. 

Joe & Sonja Galichowski 

Frank Gannon 

Troy Gartner 

Gazelle’s Oilfield Services Ltd. 

Robert M. Gehl 

Geo. C. Webb & Sons (1980) Ltd. 

Golden Jubilee Rebekah Lodge #133 

Goldstock Hereford Farm 

Tim Goodbrand 

Go Travel 

Elaine J. Gottfried 

David Gray 

Greenbelt Farms Ltd. 

Grit Industries Inc. 

Growing Alberta 

H. & L. Motors Ltd. 

Florence Hafso 

Belinda Halbach 

Half Circle TE Ranch 

Bill Hamblin 

Hanna Value Drug Mart 

Stacey Harasiuk-Adams 

Hardy Excavating Ltd. 

Mary Harrish 

Vernon Hauer 

Heavy Crude Hauling 

Heinsburg Oilfield Contracting Ltd. 

Hill Acme Machine Ltd. 

Hillsask Farm 

Dennis Hobman 

Audrey Hockley 

John and Marilyn Hoegl 

Ron Hoffman 

Henry G. Hofs 

Priscilla A. Holt 

Greg and Tami Holtby 

Mary Holtby 

Brian Honeker 

Honey Bee Manufacturing Ltd. 

Helen Huber 

Husky Energy Inc. 

Alfred Hutchinson 

Ideal Office Solutions 

IKON Office Solutions 

Image Press 

Independent Order of Odd Fellows No. 189 

Interior Designers of Alberta 

Interior Specialists Lloyd Ltd. 

Ireland Farm Equipment Ltd. 

Hazel Irving 

Carol A. Jaap Klass 

Barry A. Jackson 

Janeil Enterprises Inc. 

Jellybeans Hair Studio 

Joel Stobee Professional Corporation 

Johnson Inc. 

Alan D. Jones 

Roger Jones 

Vic and Ann Juba 

K. Kenn Industries Ltd. 

Kalahari Management Inc. 

Kasian Architecture Interior 

Design & Planning Ltd. 

Kelsey’s Bar & Grill 

Kenilworth Combustion Ltd. 

Keva Concrete Construction Ltd. 

Mahmood Khan 

Tom Kibblewhite 

Cecil E. King 

Koback Enterprises Ltd. 

Louise M. Krissa 

Roy J. Kubica 

KUDU Industries Ltd. 

Lakeland College Alumni Assoc. 

Lakeland College Staff Association 

Lakeland College Stockman’s Club


19 

Lakeland College Students’ Association 

Lakeland Ford Sales Ltd. 

Leckie and Associates 

Lee J. Moneo Professional Corporation 

Ken Leighton 

Robert Lemay 

Park Letts 

Kenton J. Lindenbach 

Suzanne Linklater 

Lions Club of Lloydminster Corp. 

Little’s Ranching Co. Ltd. 

Lloydminster Animal Hospital 

Lloydminster Chamber of Commerce 

Longridge Consulting 

Long’s Value Drug Mart 

Thea-Docia Lysne 

Tom MacDonell 

Edla B. MacLaine-Pont 

Tom Makepeace 

Manitoba Hydro 

Mannville Truck Wash 

Faye Marcoux 

Kurt Margolis 

Marsh Canada Limited 

Florence Martin 

Cecile Martindale 

Marvel Farms 

May Theatres (1984) Ltd. 

Richard McBain 

Marguerite A. McConnell 

Arthur J. McGinnis 

Doug McGinnis 

Jean McGuckin 

William G. McIldoon 

Ina McLean Lawrence 

George & Ivy McMillan 

Tim McMillan 

Walter McNary 

Bill Melenka 

Merck Frosst Canada Ltd. 

Meridian Booster 

Meridian Mud Services Ltd. 

Meyers Norris Penny 

Paula Mickelson 

Midwest Communications 

Midwest Furniture & Appliances 

Minburn Motors 1982 

Misty Hills Charolais Ltd. 

Meloche Monnex 

Monsanto Canada Inc. 

Delia Morgan 

Debbie Neigum 

Kathy Nelson 

Robert Nelson 

Newcap Broadcasting 

Nexen Inc. 

Loralee Nichols 

Norac Exploration Ltd. 

Noralta Technologies Inc. 

Northern EnviroSearch Ltd. 

Simone Odynski 

Orlando Omlid 

Paradise Hill Meat House 

Arch & Geretta Partington 

Payne Transportation 

Peace Island Tours 

Pembina Consumers Co-op (2000) Ltd. 

Pembina Pipeline Corporation 

Angelina P. Pennell 

Perkins Farms Inc. 

Perma Earth Consulting Ltd. 

Christina Perry 

Craig Peterson 

Margaret Peterson 

Petroleum Society of CIM 

PIC Investment Group Inc. 

Donna L. Pilgaard 

Todd and Wendy Plandowski 

Nick Porozni 

Robert Porozni 

Poundmaker Pork Farm Inc. 

Earl Priest 

Margaret Priest 

Priority Insurance Inc. 

Ranch & Feedlot Rider Club 

Aaron Rawlake 

RBC Foundation 

RBC Royal Bank 

Redhead Equipment Ltd. 

Regional Municipality of Wood Buffalo 

Richardson’s Jewellery 

Road Runner Water Hauling Ltd. 

John (Jack) and Dorothy Roberton 

Walter E. Roland 

Beth N. Ronaghan 

Betty Rost 

Rotary Club of Lloydminster 

Rotary Club of Vermilion 

Round Corner Welding 

Royal Canadian Legion, 

Alberta - N.W.T Command 

Royal Canadian Legion Br. 39 

Shaun J. Rue 

Ry-Lene Consulting Ltd. 

SAMA 

Sand Control Systems Ltd. 

Judy Sarsons 

SASK Power 

Saskarc 

Sask Assoc. of 

Veterinary Technologists Inc. 

Saskatchewan Association 

for Community Living Inc. 

Saskatchewan Outfitters Association 

Saskatoon Wholesale Tire Ltd. 

Leanne Sauer 

Russell J. Scheideman 

Scotia Bank 

James J. Scott 

Randa Scott-Olsen 

Lloyd G. Seath 

Selte Enterprises Ltd. 

Servus Credit Union 

Shell Canada 

Siemens Building Technologies Ltd. 

Walter Skripitsky 

Emily Skubleny 

Lloyd G. Smith 

Melvin Smith 

Solstice Canada Corp 

Raymond Sommerfeld 

Sorenson 

Spartan Controls 

Sportfactor Inc. 

Richard and Alison Starke 

Alex J. Stewart 

Diane Burt Stuckey 

Subway 

Sun Media 

Super 8 Motel 

Colleen Symes 

Synergy Credit Union 

John S. Taylor 

TCFN - Post Secondary Education 

TD Waterhouse 

Cliff Teasdale 

Brian G. Tetz 

The Bea Fisher Enterprises Inc. 

The Calgary Foundation 

The Canadian Wheat Board 

The Charlesworth Family 

The Esthetic Touch Ltd. 

The Luchynski Families 

The Prairie Provinces 

Chapter of the NKBA 

The Vermilion Standard 

Dianne Thorel 

Sherry Thorel 

TLC Landscaping 

Tourism Saskatchewan 

Town Of Edson 

Ellis Treffry 

Kristi Trefiak 

Triland Welding & Machine Ltd. 

Lillian Trowbridge 

Dennis Turner 

William C. Turner 

UCG Universal Consulting Group Ltd. 

United Farmers of Alberta 

Nathan Unrah 

Sandra L. Unruh 

Used Book Store 

Veracity Financial Services 

Vermilion & District 

Chamber of Commerce 

Vermilion Agricultural Society 

Vermilion Credit Union Ltd. 

Vermilion Jr. B Tigers 

Vermilion Shell 

Vermilion Truck Wash 

Viterra 

Viterra Research & Development 

Vulcan Mechanical Inc. 

Alice Wainwright-Stewart 

Charlie H. Wallish 

Jack F. Ward 

Waste Management of Canada 

Shannon Watson 

Heather Watt 

Weatherford 

Lucille Weinmeier 

Terry J. West 

Peter J. Weyenberg 

Wholesale Fire & Rescue Ltd. 

Patricia Wild 

Wilkinson Livingston Stevens LLP 

Anne Willard 

Shirley A. Williams 

Norman Wilson 

Wingrove Farms Ltd. 

Brian Wittmack 

Orest Yackimec 

Lori Young 

Jo-Anne B. Zawadiuk 

Max Zeise

20 


FiNANCiAL sTATEmENTs 

AudiTOR’s REPORT 

TO TH E BOA R D OF GOVE R N O R S 

O F L AKEL AND COLLEGE 

I have audited the statement of financial position of Lakeland College 

as at June 30, 2009 and the statements of operations, changes in 

net assets and cash flows for the year then ended. These financial 

statements are the responsibility of the College’s management. My 

responsibility is to express an opinion on these financial statements 

based on my audit. 

I conducted my audit in accordance with Canadian generally 

accepted auditing standards. Those standards require that I plan 

and perform an audit to obtain reasonable assurance whether the 

financial statements are free of material misstatement. An audit 

includes examining, on a test basis, evidence supporting the amounts 

and disclosures in the financial statements. An audit also includes 

assessing the accounting principles used and significant estimates 

made by management, as well as evaluating the overall financial 

statement presentation. 

In my opinion, these financial statements present fairly, in all material 

respects, the financial position of the College as at June 30, 2009 

and the results of its operations and its cash flows for the year then 

ended in accordance with Canadian generally accepted accounting 

principles. 

Edmonton, Alberta 

October 28, 2009 

Original signed by Fred J. Dunn, FCA 

Auditor General


21 

S tate m e nt of Fi n a n cial Position 

A s a t J u n e 3 0 , 2 0 0 9 

2009 2008 

(Restated - Note 26) 

AS S E T S 

Cash and short-term investments (Note 4) $ 27,957,462 $ 14,872,220 

Accounts receivable & Prepaids 3,016,991 2,639,571 

Inventories (Note 3) 1,072,191 951,956 

32,046,644 18,463,747 

Non-current cash and cash equivalents (Note 4) 4,677,718 4,757,088 

Investments (Note 5) 10,332,562 11,142,434 

Patronage dividends receivable 8,483 12,817 

Capital assets (Note 6) 65,766,338 64,691,334 

$ 112,831,745 $ 99,067,420 

liABiliti E S A N D N E T AS S E T S 

Accrued vacation pay $ 2,366,858 $ 2,036,406 

Accounts payable and accrued liabilities 6,136,987 4,198,343 

Unearned revenue (Note 7) 2,277,376 2,030,537 

Deferred contributions (Note 8) 14,957,120 1,677,760 

Current portion of long-term liabilities (Note 12) 607,462 607,462 

26,345,803 10,550,508 

Deferred capital contributions (Note 9) 6,400,030 8,476,424 

Unamortized deferred capital contributions (Note 10) 48,286,209 47,368,820 

Long-term liabilities (Note 12) 2,869,470 3,389,250 

83,901,512 69,785,002 

Net assets: 

Unrestricted 

Accumulated excess of revenue over expenses 1,991,244 15,366,494 

Accumulated net unrealized gain (loss) on investments (Note 11) (723,626) 396,293 

Internally restricted (Note 13) 11,397,486 120,545 

Invested in capital assets 14,003,196 11,468,428 

Endowments (Note 14) 2,261,933 1,930,658 

28,930,233 29,282,418 

$ 112,831,745 $ 99,067,420 

The accompanying notes are part of these financial statements.

22 


S tate m e nt of O p e rations 

Fo r t h e ye a r e n d e d J u n e 3 0 , 2 0 0 9 


Budget Actual Actual 

(Note 18) (Restated - Note 26) 

R E VE N u e : 

Grants (Note 15) $ 31,366,845 $ 36,821,751 $ 32,449,903 

Tuition and related fees 9,950,098 10,746,780 10,304,775 

Sales, rentals and services (Note 16) 4,654,689 5,611,361 5,361,073 

Amortization of deferred capital contributions (Note 10) 2,650,000 3,292,462 2,578,117 

Contract revenue 1,875,114 2,205,562 2,676,791 

Investment income (Note 17) 410,004 877,119 1,060,282 

Donations 231,732 186,464 241,548 

Other 1,162,049 2,196,005 1,917,655 

52,300,531 61,937,504 56,590,144 

E x P E N S E S (Note 16): 

Salaries and benefits (Note 19) 31,082,849 31,778,421 29,268,210 

Supplies and services 14,212,285 21,350,974 15,551,065 


Utilities 2,188,619 2,179,431 1,841,927 

Severance payments - - 124,345 

Interest expense 211,215 330,422 310,928 

Scholarships and bursaries 436,762 355,405 366,505 

Loss (Gain) on disposal of assets - 9,778 48,826 

53,100,534 61,501,045 52,243,316 

ExCESS (DEFicit ) OF REVENue OVER exPENSES 

$ (800,003) $ $436,459 $ 4,346,828 



23 

S tate m e nt of C h a n g es i n N et Assets 



Accumulated Net 

Unrealized Gain 

Internally (Loss) on Invested in Total 

Restricted Investments Capital (Restated 

Unrestricted (Note 13) (Note 11) Assets Endowments Total Note 26) 

Excess of revenue 

over expenses $ 436,459 $ - $ - $ - $ - $ 436,459 $ 4,346,828 

Endowment contributions 331,275 331,275 58,876 

Transfers: 

Net unrealized losses on 

available for sale 

investments (Note 11) (1,119,919) (1,119,919) (609,841) 

Amortization of internally 

funded capital assets 2,204,152 (2,204,152) - - 

Acquisition of internally 

funded capital assets (2,424,659) 2,424,659 - - 

Repayment of Loans (519,781) 519,781 - - 

From unrestricted (15,850,855) 15,850,855 

Costs incurred in residence 

repairs and maintenance 4,573,914 (4,573,914) 

Net book value of 

capital asset disposals 62,893 (62,893) - - 

(Decrease) increase 

in net assets (11,517,877) 11,276,941 (1,119,919) 677,395 331,275 (352,185) 3,795,863 

Net assets beginning of year 13,509,121 120,545 396,293 13,325,801 1,930,658 29,282,418 25,486,554 

Net assets at end of year $ 1,991,244 $ 11,397,486 $ (723,626) $ 14,003,196 $ 2,261,933 $ 28,930,233 $ 29,282,417 


24 


S tate m e nt of C ash Flows 


A s a t J u n e 3 0 , 2 0 0 9 


Restated 

Cash provided by: 

O P E R ATi N G AC Tiviti E S 

Surplus of revenue over expenses $ 436,459 $ 4,346,829 

Non-cash transactions 

Amortization of capital assets 5,496,614 4,731,510 

Amortization of deferred capital contributions (Note 10) (3,292,462) (2,578,117) 

Loss (Gain) on disposal of capital assets 9,778 48,826 

2,650,389 6,549,048 

Net change in non-cash working capital 15,301,974 (748,720) 

Cash provided by operating activities 17,952,363 5,800,328 

i N VESTi N G AC Tiviti E S 

Acquisition of capital assets 

Internally and debt funded (2,424,659) (4,426,807) 

Externally funded (4,209,851) (6,806,455) 

Net purchase and unrealized gains on investments (310,047) (2,503,252) 

Proceeds from disposal of capital assets 53,115 62,389 

Cash used in investing activities (6,891,442) (13,674,125) 

FiNAN C i N G AC Tiviti E S 

Endowment contributions 331,275 58,876 

Proceeds from capital lease - 2,038,984 

Repayment of long-term debt (519,781) (442,273) 

Capital contributions received (Note 9) 2,133,457 9,600,534 

Cash provided by financing activities 1,944,951 11,256,121 

Increase in cash and short term investments 13,005,872 3,382,324 

Cash and cash equivalents at beginning of the year 19,629,308 16,246,984 

Cash and cash equivalents at end of the year $ 32,635,180 $ 19,629,308 



25 

N otes to t h e Fi n a n cial S tate m e nts 


Note 1 Authority and Purpose 

Lakeland College (the “College”) operates under the authority of the Post Secondary Learning Act, Chapter P-19.5., Statutes 

of Alberta, 2003. The College, as an inter-provincial institution, provides educational services responsive to the needs of 

students in relation to the workplace, community and society. The College is exempt from the payment of income taxes under 

section 149 of the Income Tax Act and is a registered charity. 

Note 2 Summary of Significant Accounting Policies and Reporting Practices 

These financial statements have been prepared in accordance with Canadian generally accepted accounting principles. In 

preparing the College’s financial statements, management is required to make estimates and assumptions that affect the 

reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial 

statements and reported amounts of revenues and expenses during the period. Management believes its estimates to be 

appropriate, however, actual results could differ from these estimates. 

(a) Revenue Recognition 

Operating grants are recognized in the period when receivable. Operating grants received for a future period are deferred 

until that future period and are reported as deferred contributions. 

Amounts received for tuition fees and contract programs and sales, rentals and services are recognized as revenue in the 

period the goods are delivered or the services are provided. 

Capital grants and capital donations are recorded as deferred capital contributions until the amounts are invested in 

capital assets. Amounts invested representing funded capital assets are transferred to unamortized deferred capital 

contributions. Unamortized deferred capital contributions are recognized as revenue in the periods in which the related 

amortization expense for the funded capital assets is recorded. 

The College recognizes dividend and interest revenue as earned, and investment gains and losses when realized. 

Realized gains and losses represent the difference between the amounts recognized through sales of investments and 

their respective cost base, as well as the amounts provided for as a write-down due to impairment. Unrealized gains 

and losses on available-for-sale securities attributed to endowment net assets are recorded in deferred contributions. 

Unrealized gains and losses on available-for-sale securities attributed to other net assets are recorded in the Statement of 

Changes in Net Assets, and are recognized in the Statement of Operations when realized. 

Unrestricted cash donations are recognized as revenue when they are received. Donations of materials and services that 

would otherwise have been purchased are recorded at fair value when a fair value can be reasonably determined. 

Externally restricted non-capital contributions are deferred and are recognized as revenue in the period in which 

the related expenses are incurred. Externally restricted amounts can only be used for purposes designated by the 

contributors. Any externally restricted contributions containing stipulations that the amounts should be permanently 

maintained, are recorded as a direct increase to net assets. 

(b) Capital Assets 

Purchased capital assets are recorded at cost. Donated assets are recorded at their fair value when donated. Capital 

assets are amortized on a straight-line basis over the following estimated average useful lives: 

Buildings, leasehold and site improvements 

3 - 40 years 

Furniture, equipment and library 

10 years 

Vehicles, equipment, computers and telecommunication 5 years 

(c) Inventories 

Livestock inventory is recorded at net realizable value. All other inventories are valued at the lower of cost and net 

realizable value.

26 


(d) Financial Instruments 

The fair values of the College’s accounts receivable, accounts payable and accrued liabilities and accrued vacation pay 

are valued in accordance with the methods described below. Fair value of publicly traded securities are based on closing 

market prices. 

The College has classified its significant financial assets and financial liabilities as follows: 

- Cash and investments are classified as available-for-sale, and are measured at fair value with subsequent gains or 

losses included in net assets or deferred contributions until the asset is removed from the Statement of Financial 

position. Details of this are outlined in Note 11. 

- Accounts receivable classified as other loans and receivables. After initial fair value measurement, they are measured 

at amortized cost. 

- Accounts payable, accrued liabilities and employee benefits liabilities are classified as other financial liabilities. After 

their initial fair value measurement, they are measured at amortized cost using the effective interest rate method. 

Financial instruments of the College are exposed to credit risk, interest rate risk, foreign exchange risk and market risks. 

The College’s accounts receivable are due from a diverse group of customers and are subject to normal credit risk. The 

interest rate risk is the risk to the College’s earnings that arises from the fluctuations in interest rates and the degree 

of volatility of these rates. The foreign exchange risk is the risk of the rising costs related to purchase transactions in 

United States currency and the reduction of amounts collected for receivables which are due in United States currency. 

The market risk is the risk to the College’s earnings that arises from the fluctuation and the degree of volatility in the 

market value of long-term investments. Each of these risks is limited through the College’s collection procedures, 

investment guidelines and other internal policies, guidelines and procedures. 

Fixed income and marketable equity securities are classified as available-for-sale (investments held for long-term capital 

appreciation and generation of income), and are measured at fair value at each reporting date. The College utilizes 

settlement-date accounting for all purchases and sales of financial assets in its investment portfolio. Fixed income 

securities are initially recognized at acquisition cost (purchase price plus transaction costs), which reflects any premium 

or discount at date of purchase, and carried at fair value. Marketable equity securities are also initially recognized at 

acquisition cost, and subsequently measured at fair value. 

Financial assets classified as available-for-sale are measured at fair value with changes in fair values recognized in the 

Statement of Changes in Net Assets or deferred contributions as appropriate until realized, at which time the cumulative 

changes in fair value are recognized in the Statement of Operations. 

The College does not use hedge accounting and accordingly, is not impacted by the requirement of Section 3865 

Hedges. As permitted for Not-for-Profit Organizations, Lakeland has elected not to apply the standards for permitted for 

Not-for-Profit Organizations, Lakeland has elected not to apply the standards for embedded non-financial contracts and 

has elected to continue using section 3861: Disclosure and Presentation. 

(e) Employee Future Benefits 

The College participates in the Province of Alberta’s Local Authorities and the Management Employees Pension Plans. 

These pension plans are multi-employer defined benefit plans that provide pensions for the College’s participating 

employees, based on years of service and earnings. 

Pension costs included in these financial statements comprise the amount of employer contributions required for its 

employees during the year, based on rates which are expected to provide for benefits payable under the Local Authority 

and the Management Employees Pension Plans. The College’s portion of the pension plans’ deficit or surplus is not 

recorded by the College. 

(f) Pledges Receivable 

Pledges receivable are not recorded as assets in these financial statements.


27 

(g) Capital Disclosures 

Effective July 1, 2008, the College adopted CICA 1535: Capital Disclosures. The new standard requires an entity to 

disclose information that enables users of its financial statements to evaluate the entity’s objectives, policies and 

processes for managing capital. The new note disclosure is as follows: 

The College defines its capital as the amounts included in deferred capital contributions (Note 9) and unrestricted net 

assets. A significant portion of the College’s capital is externally restricted. The College’s unrestricted capital is funded 

primarily by Alberta Advanced Education and Technology. The College has investment policies (Note 5), spending 

policies and cash management procedures to ensure the College can meet its capital obligations. 

Under the Post-Secondary Learning Act, the College must receive ministerial approval for a deficit budget, borrowing 

and for the sale of land and buildings. 

Note 3 Inventories 

Inventories consist of: 


Livestock $ 379,415 $ 339,125 

Bookstore 398,068 323,948 

Firefighting agents 85,422 125,725 

Fuels 60,805 78,294 

Farm 146,064 81,632 

Quip shop 2,417 3,232 

$ 1,072,191 $ 951,956 

Note 4 Cash and Cash Equivalents 


Unrealized 

Unrealized 

Cost Gain (Loss) Market Cost Gain (Loss) Market 

Bank balance $ 5,758,093 $ - $ 5,758,093 $ 5,126,724 $ - $ 5,126,724 

Money market investments 24,239,369 - 24,239,369 11,905,496 - 11,905,496 

Endowment investment fund 2,518,490 119,228 2,637,718 2,045,406 551,682 2,597,088 

32,515,952 119,228 32,635,180 19,077,626 551,682 19,629,308 

Less non-current portion (4,677,718) (4,757,088) 

$27,957,462 $ 14,872,220 

Non-current cash and investments are comprised of: 


Endowments $ 2,637,718 $ 2,597,088 

Long Term Debt 2,040,000 2,160,000 

$ 4,677,718 $ 4,757,088 

Included in cash and cash equivalents, the College is holding $6 million for capital projects and $3 million in apprenticeship 

access funds.

28 


Note 5 Investments 


Unrealized 

Unrealized 

Cost Gain (Loss) Market Cost Gain (Loss) Market 

Bonds $ 5,489,187 $ 97,081 $ 5,586,268 $ 5,405,625 $ (69,141) $ 5,336,484 

Mutual Funds 5,963,293 (1,216,999) 4,746,294 5,340,516 465,434 5,805,950 

$ 11,452,481 $ (1,119,919) $ 10,332,562 $ 10,746,141 $ 396,293 $ 11,142,434 

The College’s investment strategy is to meet expenditure requirements within one year, investing such funds in liquid 

investments. The balance of funds are invested for a longer term with a mix of maturities between 1-10 years. Pooled Bond 

Funds have an average effective yield of 3.67% (in 2008, 4.68%) and weighted average term to maturity of more than one year. 

Note 6 Capital Assets 

Capital assets consist of: 


Accumulated Net Book Net Book 

Cost Amortization Value Value 

Land $ 1,612,439 $ - $ 1,612,439 $ 1,612,439 

Buildings 90,766,937 (46,519,962) 44,246,975 45,035,522 

Site improvements 18,262,918 (11,047,396) 7,215,522 7,674,691 

Furniture & equipment 15,577,026 (8,988,541) 6,588,485 4,750,836 

Computers, software & 

telecommunications equipment 13,777,376 (9,135,112) 4,642,264 4,400,262 

Vehicles 2,485,796 (1,911,858) 573,938 636,104 

Leasehold improvements - - - - 

Milk quotas 546,951 - 546,951 267,641 

Library 3,537,831 (3,198,067) 339,764 313,839 

$146,567,274 $ (80,800,936) $ 65,766,338 $ 64,691,334 

The Province of Alberta has been granted an option to purchase for $1 the whole or any part of the land, buildings and site 

improvements that it transferred to the College in 1982. 

Computers and telecommunications equipment include $645,813 (2008 - $117,614) to the wireless/network separation project, 

the common application system project and the accounts receivable PeopleSoft project. 

Amortization of these items is deferred until the completion of the projects. 

Note 7 Unearned Revenue 

Unearned revenue consists of: 


Tuition and residence fees $ 1,619,298 $ 1,480,565 

Contract advances 319,378 193,847 

Extension and community 

education course fees 52,812 58,897 

Projects & programs 285,888 297,228 

$ 2,277,376 $ 2,030,537


29 

Note 8 Deferred Contributions 

Changes in deferred contributions are as follows: 


Restricted donations & contributions received during the year: 

Conditional grants $ 20,990,173 $ 2,412,290 

Donations in kind 9,265 57,621 

Restricted donations 34,218 63,985 

Scholarships and bursaries 348,229 325,605 

Interest on grants (Note 17) 338,425 - 

Interest on endowments (Note 17) 147,759 120,066 

21,868,069 2,979,567 

Transferred to revenue: 

Conditional grants (Note 15) $ (7,440,752) $ (5,326,139) 

Interest earned on grants (8,630) - 

Restricted donations (27,314) (3,350) 

Donations in kind (9,265) (16,360) 

Scholarships and bursaries (361,143) (360,404) 

(7,847,104) (5,706,253) 

Transferred to endowments: Endowment scholarships (309,151) - 

Increase (decrease) during the year relating to operating funding 13,711,814 (2,726,686) 

Balance at beginning of the year relating to operating funding 1,126,078 3,852,764 

Balance at end of the year relating to operating funding 14,837,892 1,126,078 

Deferred contributions relating to unrealized gain on investments (Note 11) 

Unrealized gain on investments, beginning of year 551,682 644,700 

Change in unrealized gain on investments relating to deferred contribution (432,454) (93,018) 

Unrealized gain on investments, end of year 119,228 551,682 

Total deferred contributions, balance at end of the year $ 14,957,120 $ 1,677,760 

The balance consists of funds restricted for: 

Conditional programs $ 14,334,768 $ 757,799 

Scholarships and bursaries 444,303 330,710 

College development 58,821 37,569 

Unrealized gain on investments allocated to deferred contributions 119,228 551,682 

$ 14,957,120 $ 1,677,760

30 


Note 9 Deferred Capital Contributions 

Changes in deferred capital contributions are as follows: 


Contributions received during the year $ 1,913,037 $ 9,227,829 

Interest allocated to deferred capital contributions 220,420 372,705 

Total contributions received in the year 2,133,457 9,600,534 

Transferred to unamortized deferred capital contributions (Note 10) (4,209,851) (6,806,455) 

Balance at beginning of the year 8,476,424 5,682,345 

Balance at end of the year $ 6,400,030 $ 8,476,424 

Note 10 Unamortized Deferred Capital Contributions 


Transferred to revenue $ (3,292,462) $ (2,578,117) 

Transferred from deferred capital 

contributions (Note 9) 4,209,851 6,806,455 

917,389 4,228,338 

Balance at the beginning of the year 47,368,820 43,140,482 

Balance at the end of the year $ 48,286,209 $ 47,368,820 

Note 11 Net Unrealized Gains on Available-for-Sale Investments 


Net unrealized losses on available-for-sale investments arising during the year $ (1,629,934) $ (695,762) 

Net investment losses realized on available-for-sale investments during the 

year and reported in the statement of operations 77,561 (7,097) 

Change in net unrealized gains on available-for-sale investments (1,552,373) (702,859) 

Net unrealized gains on available-for-sale investments, beginning of year $ 947,975 $ 1,650,834 

Net unrealized gains on available-for-sale investments, end of year $ (604,398) $ 947,975 


Endowment net 

assets, recorded in Other 

deferred contributions Net 

(Note 8) Assets Total Total 

Balance, beginning of the year 

(Notes 2(b) and 3(b)) $ 551,682 $ 396,293 $ 947,975 $ 1,650,834 

Decrease during the year (432,454) (1,119,919) (1,552,373) (702,859) 

Balance, end of the year 119,228 (723,626) (604,398) 947,975


31 

Note 12 Long-Term Liabilities 


(a) Long Term Debt $ 2,160,000 $ 2,280,000 

(b) Capital Lease 1,316,932 1,716,712 

Total Long Term Liabilities $ 3,476,932 $ 3,996,712 

Current Portion (607,462) (607,462) 

Long Term Portion $ 2,869,470 $ 3,389,250 

a) Long-term Debt: 2009 2008 

Alberta capital financing authority (ACFA) $ 2,160,000 $ 2,280,000 

Less: current portion (120,000) (120,000) 

$ 2,040,000 $ 2,160,000 

The ACFA loan is a 25 year debenture secured by residences with value of $2,956,794. 

The debenture incurs interest at 6.5% per annum. 

AFCA Loan 

2009-10 $ 120,000 

2010-11 120,000 

2011-12 120,000 

2012-13 120,000 

2013-14 and subsequent 1,680,000 

$ 2,160,000 

(b) Capital Lease: 


IBM capital lease 1,316,932 1,669,202 

Less: current portion (487,462) (487,462) 

Non-current capital lease obligation 829,470 1,181,740 

The minimum annual payments under the capital lease obligation are as follows: 

IBM Lease 

2009-10 487,462 

2010-11 487,462 

2011-12 487,462 

Total minimum lease payments $ 1,462,386 

Less: amount representing interest (145,454) 

Capital lease obligation $ 1,316,932 

The IBM lease is for goods and services relating to the restructuring of the College network and enabling the wireless internet 

access system and is for a term of 5 years with an imputed interest rate of 4.75%. During the year, interest of $87,681 (2008 

-$74,963) has been charged to the expense.

32 


Note 13 Net Assets Internally Restricted by the Board 

Net assets internally restricted by the Board represent amounts set aside by the College’s Board of Governors to be used for the 

following designated purposes. These amounts are not available for other purposes without the approval of the Board. 


Major maintenance and equipment $ 4,591,488 $ 68,230 

Agriculture initiatives 4,000,000 - 

New residence construction 2,700,000 - 

Delivery initiatives 105,998 52,315 

$ 11,397,486 $ 120,545 

Note 14 Endowments 

External endowments consist of funds restricted for: 


College development $ 420,089 $ 420,089 

Scholarships and bursaries 1,841,844 1,510,569 

Funds are required to be maintained in perpetuity. 

$ 2,261,933 $ 1,930,658 

Note 15 Grants 

Grant revenue consists of: 



Advanced Education 

General Operating $ 27,726,485 $ 28,066,300 $ 25,939,714 

Conditional (Note 8) 2,566,436 7,440,752 5,326,139 

Other Government Grants 8,000 - - 

Province of Saskatchewan 

General Operating 1,065,924 1,314,699 1,184,050 

$ 31,366,845 $ 36,821,751 $ 32,499,903


33 

Note 16 Sales, Rentals and Services 

Revenue and direct expense for sales, rentals and services consists of: 



Revenue: 

Residences $ 2,446,660 $ 2,738,167 $ 2,646,975 

Bookstores 920,041 1,203,473 1,124,981 

Cafeterias 733,622 891,965 860,181 

Conference Services 229,000 300,180 306,304 

Printing 4,500 13,623 9,658 

Swimming Pools 209,768 192,503 177,055 

Other 111,098 271,450 235,919 

4,654,689 5,611,361 5,361,073 

Direct Expenses: 

Residences 4,173,592 6,247,517 3,001,736 

Bookstores 922,522 1,190,563 1,155,190 

Cafeterias 791,319 893,274 893,758 

Conference Services 262,580 324,157 277,818 

Printing 2,388 50 916 

Swimming Pools 313,132 279,625 254,804 

Other 162,053 223,890 409,730 

6,627,586 9,159,076 5,993,952 

Excess of Revenue over Direct Expenses $ (1,972,897) $ (3,547,715) $ (632,879) 

Note 17 Investment Revenue 


Investment income earned $ 1,551,927 $ 1,560,150 

Gain (loss) on sale of investments 31,796 (7,097) 

Investment income before transfer 1,583,723 1,553,053 

Less: amount transferred to deferred contributions 

relating to endowments (Note 8) (147,759) (120,066) 

Less: amount transferred to deferred contributions 

relating to grants (Note 8) (338,425) - 

Less: amount transferred to deferred capital contributions (Note 9) (220,420) (372,705) 

Investment Income from Unrestricted Sources $ 877,119 $ 1,060,282

34 


Note 18 Operating Expense 

Operating expense is summarized as follows: 



Instruction $ 21,183,463 $ 21,368,062 $ 21,250,076 


Cost of sales, rental & services (Note 16) 6,627,586 9,159,076 5,993,952 

Facility operations and maintenance 3,890,856 9,195,129 5,255,476 

Academic support 4,344,985 4,248,660 3,886,839 

Institutional support 6,389,465 5,919,794 5,575,780 

Student services 3,668,313 4,059,642 3,681,693 

Computing services 2,027,062 2,054,069 1,933,968 

$ 53,100,534 $ 61,501,046 $ 52,243,315 

Instruction encompasses all formal education and instructional program elements. Academic support includes all activities that 

directly support the educational and instructional elements such as academic administration, library and audio-visual services. 

Institutional support includes all activities that provide institution-wide support to other programs such as the president’s office, 

human resources and financial services. Student services includes all activities and services for the student body. 

Note 19 Salaries and Benefits 

The following information is prepared in accordance with Treasury Board Directive No. 12/98 as amended in 2007 and only 

includes salary and benefit information for the Board and Executive Management: 


Other 

Base Salary Other Cash Non-Cash 

(1) Benefits (2) Benefits (3) Total Total 

Chairman of the Board $ - $ 18,234 $ 816 $ 19,050 $ 15,160 

Other Board - 36,716 540 37,256 32,455 

- 54,950 1,356 56,306 47,615 

President 210,000 18,313 21,750 250,063 223,998 

VP Academics 152,000 21,697 173,697 150,333 

VP Student and College Services 150,000 21,699 171,699 150,182 

Director, Human Resources 116,421 19,792 136,213 126,635 

Director, Fund Development 96,012 17,293 113,305 101,382 

724,433 18,313 102,231 844,977 752,530 

Salaries & Benefit Expense in year $ 724,433 $ 73,263 $ 103,587 $ 901,283 $ 800,145 

(1) Base salary includes pensionable base pay. 

(2) Other cash benefits includes honoraria. 

(3) Employer’s share of all employee benefits and contributions or payments made on behalf of employees including pension, 

health care, dental coverage, vision coverage, out of country medical benefits, group life insurance, accidental disability 

and dismemberment insurance, long and short term disability plan, professional memberships and tuition. Other non-cash 

benefits also include the Employer’s share of the cost of additional benefits including sabbaticals or other special leave with 

pay, financial planning services, retirement planning services, concessionary loans, travel allowances, car allowances, and 

club memberships.


35 

Note 20 Budget 

The operating and capital budgets were approved by the Board of Governors on March 26, 2008. The operating budget does not 

include revenues and expenses for ad hoc programs negotiated subsequent to budget approval. The approved capital budget 

provided $2,653,842 (actual $2,482,428) for internally funded acquisitions of capital assets. 

Note 21 Commitments 

The College has the following commitments requiring future minimum annual payments for years ending June 30 as follows: 

2009-10 240,546 

2010-11 132,152 

2011-12 83,825 

2012-13 83,825 

2013-14 53,945 

$ 594,294 

Note 22 Related Party Transactions 

Province of Alberta 

The College is a Provincial Corporation as all the members of the Board of Governors are appointed by a combination of orders 

by the Lieutenant Governor in Council and the Minister of Advanced Education. Grant revenue transactions between the College 

and the Province are disclosed in the College financial statements as follows: 

2009 

Deferred 

Deferred Capital Grant 

Contributions Contributions Revenue Total 

Alberta Advanced Education 

Regular operating $ - $ - $ 28,066,300 $ 28,066,300 

Enrollment planning 3,483,931 133,126 3,290,985 6,908,042 

Conditional 676,886 933,013 406,544 2,016,443 

Alberta Infrastructure 

Infrastructure maintenance 16,656,000 - 3,743,223 20,399,223 

Total $ 20,816,817 $ 1,066,139 $ 35,507,052 $ 57,390,008 

2008 

Deferred 

Deferred Capital Grant 

Contributions Contributions Revenue Total 

Alberta Advanced Education 

Regular operating $ - $ - $ 25,939,714 $ 25,939,714 

Enrollment planning 383,698 23,126 3,530,576 3,937,400 

Conditional 271,022 1,801,615 237,363 2,310,000 

Alberta Infrastructure 

Infrastructure maintenance 19,345 5,355,105 1,558,200 6,932,649 

Total $ 674,065 $ 7,179,846 $ 31,265,853 $ 39,119,764

36 


The College has accounts payable to the Province of Alberta of $50,600 (2008 - $0) and long-term debt obligations with Alberta 

Capital Finance Authority as disclosed in Note 12. 

The College provided courses to other provincial colleges and participated in the development, sale and offering of certain 

courses with other public colleges. The revenues and expenses incurred for these have been included in the statement of 

operations but have not been separately quantified. These transactions were entered into on the same business terms as with 

non-related parties and are recorded at fair market value. 

Note 23 Pension Liability and Expense 

In the year ending June 30, 2009, the College participated the Local Authorities Pension Plan (LAPP) in the amount of 

$1,858,396 (2008-$1,611,372). As at December 31, 2008, the LAPP reported a deficiency of $4,413,971,000 (2007 - 

$1,183,334,000). The January 1, 2009 employers’ contribution rate was increased by 1.57%. Pension expenses are recorded in 

the Salaries and Benefits section of the Statement of Operations. 

Note 24 Contingent Liabilities 

There is one unresolved claim against the College. While the outcome of this claim cannot be predicted at this time, it is the 

opinion of management that the resolution of this claim will not have a material effect on the financial statements of the College 

and it has not been reflected in these statements. Additional costs of settling this claim, if any, will be charged to operations 

upon settlement, which in management’s opinion will not have a material effect on the financial position of the College. 

Note 25 Comparative Figures 

The 2008 figures have been reclassified where necessary to conform to 2009 presentation. 

Note 26 Prior Period Adjustment 

The 2008 figures have been adjusted for an understatement of the capital lease liability. The following adjustment was made to 

properly reflect the capital lease liability and amortization. 


Balance as 

Balance as 

previously stated Change restated 

Computers, software & 

telecommunications equipment 1,643,852 49,352 1,693,204 

Accounts Payable - 76,330 76,330 

Capital Lease Liability 1,669,201 47,511 1,716,712 

Amortization Expense 279,802 65,978 345,780 

Interest Expense 66,453 8,510 74,963 

Note 27 Approval of Financial Statements 

These financial statements were approved by the Board of Governors.

O u r M I S S I O N to i n s p i r e o u r l e arners to realize their individual pot ential. 

O u r vISION to ac h i e v e e d u c at ional excellence in a people-centred environment. 

O u r va l u es a r e r e s p e c t, s a f e ty, trust, pride, ethics, Quality and accountability.

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LAKELAND COLLEGE Annual Repor t 2008 - 2009

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