LAKELAND COLLEGE Annual Repor t 2008 - 2009
LAKELAND COLLEGE annual Report 2008 - 2009
LAKELAND COLLEGE annual Report 2008 - 2009
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<strong>LAKELAND</strong> <strong>COLLEGE</strong> <strong>Annual</strong> <strong>Repor</strong> t <strong>2008</strong> - <strong>2009</strong>
Vermilion CAmpus<br />
5707 College Drive<br />
Vermilion, Alberta T9X 1K5<br />
Lloydminster CAmpus<br />
2602 - 59 Avenue<br />
Lloydminster, Alberta S9V 1Z3
ANNUAL REPORT <strong>2008</strong>-<strong>2009</strong><br />
1<br />
CONTENTs<br />
Board Accountability Statement ......................................................... 3<br />
Management’s Responsibility for <strong>Repor</strong>ting....................................... 3<br />
Message from the President................................................................ 4<br />
Year in Review...................................................................................... 5<br />
Operational Overview........................................................................... 6<br />
Board of Governors....................................................................... 6<br />
Programming................................................................................ 6<br />
Enrolment..................................................................................... 8<br />
Facilities........................................................................................ 8<br />
Staffing ........................................................................................ 8<br />
Performance Review..................................................................... 8<br />
Management’s Discussion and Analysis.............................................. 14<br />
Overview....................................................................................... 14<br />
Financial Information.................................................................... 14<br />
Expenses....................................................................................... 15<br />
Financial Position.......................................................................... 16<br />
Capital Projects............................................................................. 16<br />
Areas of Risk................................................................................. 17<br />
Donors................................................................................................ .18<br />
Financial Statements............................................................................ 20<br />
Auditor’s <strong>Repor</strong>t........................................................................... 20<br />
Statement of Financial Position................................................... 21<br />
Statement of Operations.............................................................. 22<br />
Statement of Changes in Net Assets........................................... 23<br />
Statement of Cash Flows............................................................. 24<br />
Notes to the Financial Statements............................................... 25
2<br />
ANNUAL REPORT <strong>2008</strong>-<strong>2009</strong>
ANNUAL REPORT <strong>2008</strong>-<strong>2009</strong><br />
3<br />
BOARd ACCOUNTABility sTATEmENT<br />
The Lakeland College <strong>Annual</strong> <strong>Repor</strong>t for the year ended June 30, <strong>2009</strong> was prepared under<br />
the Board’s direction in accordance with the Government Accountability Act and ministerial<br />
guidelines established pursuant to the Government Accountability Act. All material economic,<br />
environmental or fiscal implications of which we are aware have been considered in the<br />
preparation of this report.<br />
Doug Elliott, Chairman<br />
Lakeland College Board of Governors<br />
January 2010<br />
ManagemENT’s ResPONsibility fOR REPORTing<br />
Lakeland College’s management is responsible for the preparation, accuracy, objectivity and<br />
integrity of the information contained in the <strong>Annual</strong> <strong>Repor</strong>t including the financial statements,<br />
performance results, and supporting management information. Systems of internal control<br />
are designed and maintained by management to produce reliable information to meet<br />
reporting requirements. The system is designed to provide management with reasonable<br />
assurance that transactions are properly authorized, reliable financial records are maintained,<br />
and assets are properly accounted for and safeguarded.<br />
The <strong>Annual</strong> <strong>Repor</strong>t has been developed under the oversight of the institution audit committee,<br />
as well as approved by the Board of Governors and is prepared in accordance with the<br />
Government Accountability Act and the Post-secondary Learning Act.<br />
The Auditor General of the Province of Alberta, the institution’s external auditor appointed<br />
under the Auditor General Act, performs an annual independent audit of the financial<br />
statements in accordance to generally accepted accounting principles.<br />
Ralph Troschke<br />
Vice President, Student and College Services<br />
Lakeland College
4<br />
ANNUAL REPORT <strong>2008</strong>-<strong>2009</strong><br />
Message fROm the PREsidENT<br />
Lakeland College is following its new road map closely and it’s<br />
leading us exactly where we need to go.<br />
Future Directions – A Road Map Towards Our Next Century is the<br />
strategic plan we introduced in the <strong>2008</strong>-2012 business plan. It<br />
contains six goals and outlines initiatives to achieve each goal.<br />
In this annual report we review the progress made towards<br />
achieving Lakeland’s goals. I’m happy to report that we haven’t<br />
hit too many bumps on the road. In fact, during the past year we<br />
successfully introduced a number of new programs and courses,<br />
our full-time enrolment increased, and our financial performance<br />
was strong.<br />
Our faculty and staff continue to be committed to helping our<br />
students succeed. As you’ll read in the pages that follow, their<br />
dedication to our students is making a difference.<br />
Although economic conditions have changed the employment<br />
market, Lakeland graduates are still doing well. We surveyed the<br />
Class of 2007 and learned that graduates have an employment rate<br />
Glenn Charlesworth, President and CEO<br />
of 93.9 per cent and a median annual salary of $41,930.<br />
We were fortunate to receive government grants that enabled us to start some priority capital projects. One major project – the Bill<br />
Kondro Wing – was completed. The two-storey wing at the Lloydminster campus was opened in September <strong>2008</strong>. The additional<br />
space made it possible for Lakeland to grow not for the sake of growth, but grow to meet the real needs of students, businesses,<br />
communities and organizations in this region and beyond. University studies courses were expanded, a January intake for the practical<br />
nurse program was added, and event coordinator, massage therapy and pharmacy technician retail programs were offered at the<br />
Lloydminster campus.<br />
Renovations to the residence buildings at the Vermilion campus continued. Three modernized buildings opened during the year and in<br />
April <strong>2009</strong> renovations began in three more dorms. It was reported in the <strong>2008</strong>-2012 business plan that unrestricted net assets would<br />
be used to pay for the residence renovations. Thanks to a strong balance sheet those dollars were not used.<br />
We are adapting to our role as a Comprehensive Community Institution but we know there is much more to be done. Processes are<br />
being developed to ensure we are working cooperatively with adult learning partners, school jurisdictions, organizations, industry and<br />
other community stakeholders to respond to learning needs in the regional service area. Collaboration is vital.<br />
The costs related to information technology (IT) continue to be a challenge. About two-thirds of the money available to internally<br />
fund capital items is spent by the IT department. We’ve also experienced higher than normal staff turnover in our IT department.<br />
Fortunately, that hasn’t been an issue in other departments. In fact, Lakeland recorded its lowest employee turnover rate since 2002.<br />
As we move forward I know there will be new curves to navigate but by remaining committed to our direction, Lakeland will continue<br />
to excel not only as we work towards our centenary in 2013, but for years beyond.<br />
Glenn Charlesworth<br />
President and Chief Executive Officer<br />
Lakeland College
ANNUAL REPORT <strong>2008</strong>-<strong>2009</strong><br />
5<br />
Year in Review<br />
Lakeland’s interior design technology students once again<br />
excelled in competitions. Pamela Berry of Saskatoon finished<br />
first and Whitney Jamieson of Maidstone placed fourth in<br />
an international charette design competition. Based at the<br />
Vermilion campus, the interior design technology program<br />
is one of Lakeland’s signature programs. The program also<br />
received the Excellence in Education Award from the National<br />
Kitchen and Bath Association (NKBA). The award recognizes<br />
excellence in design instruction at North American colleges,<br />
universities and technical institutes and is based on an annual<br />
review process that all schools with NKBA accreditation must<br />
complete in order to maintain NKBA certification. Award<br />
winners were required to earn a score of at least 93 out of a<br />
possible 100 points. Lakeland earned 95.<br />
Todd Field received Alberta’s top apprentice award for the<br />
parts technician trade during the Alberta Apprenticeship and<br />
Industry Training Board Awards in February <strong>2009</strong>. Todd took<br />
his training at the Vermilion campus. He works at Lakeland as<br />
an inventory control technician.<br />
It was golden glory for Lakeland’s curling teams as the mixed<br />
and women’s curling teams won Alberta Colleges Athletic<br />
Conference (ACAC) championships. Lindsay Makichuk was<br />
named skip of the women’s all-star team and Neil Bratrud was<br />
recognized as skip of the mixed all-star team and ACAC male<br />
player of the year.<br />
Basketball star Ossie Hinds, captain of Lakeland’s men’s team,<br />
was an all-Canadian in addition to an ACAC north division<br />
first team all-star. As for other accomplishments, women’s<br />
volleyball coach Austin Dyer was coach of the year for the<br />
north division and volleyball players Nathan Unruh and<br />
Brianne Collette were named academic all-Canadians. Scott<br />
Sigfusson received the all-around cowboy award at the<br />
Canadian National College Finals.<br />
Kirk Ferguson-Uhrich, program chair of Lakeland’s sign<br />
language interpretation program, was in Newfoundland in<br />
September <strong>2008</strong> to receive the Richard W. Letourneau Service<br />
Award from the Association of Visual Language Interpreters of<br />
Canada. The award recognizes his long-standing commitment<br />
to promoting sign language interpreting and advocacy for the<br />
deaf.<br />
After years of planning and 22 months of construction, the<br />
Bill Kondro Wing at the Lloydminster campus was officially<br />
opened in September <strong>2008</strong>. With 400 classroom seats and<br />
numerous labs, the wing makes it possible for Lakeland to<br />
serve hundreds of additional students each year. Features of<br />
the wing include two 90-seat lecture theatres, three 60-seat<br />
theatres, a 40-seat classroom, two 40-seat computer labs,<br />
two five-bed nurses labs with mannequin simulation beds,<br />
two 24-seat science labs and multimedia space for students<br />
to do project work. There is almost $1 million worth of new<br />
equipment and supplies in the science labs alone. The wing<br />
was named in honour of Bill Kondro in recognition of his<br />
contributions and commitment to Lakeland, including his time<br />
spent as the chairman of the board of governors.<br />
In March <strong>2009</strong>, the University of Alberta and Lakeland finalized<br />
an agreement to transfer paramedic, emergency medical<br />
technician and emergency medical responder programs from<br />
the university’s community education unit at the Augustana<br />
campus to Lakeland. These programs are offered primarily<br />
online with some days spent in class learning technical skills.<br />
An energy cabin became part of the Vermilion campus<br />
landscape in November <strong>2008</strong>. The cabin is used for applied<br />
research purposes and by environmental sciences students<br />
studying renewable energy systems. The building’s electricity<br />
comes from wind power and 1.7 kilowatts of solar photovoltaic<br />
panels. Solar hot water flows through in-floor piping and<br />
provides enough heat to keep the building warm from March<br />
until November. Lakeland launched an online renewable energy<br />
and conservation program in October <strong>2008</strong>.<br />
In March <strong>2009</strong>, Lakeland, East Central Alberta Catholic<br />
Schools and Credenda Virtual High School learned they would<br />
receive a $700,000 grant from Alberta Advanced Education<br />
and Technology’s Innovation Fund. The organizations are<br />
working on a project aimed at expanding access to educational<br />
and training opportunities for students in rural areas. As part<br />
of the project, dual credit courses will be developed to allow<br />
students in Grades 10 to 12 to take courses for credit outside<br />
of the current curriculum and outside of career technology<br />
studies. Once completed, the courses will give students<br />
advanced credit in a Lakeland program.<br />
In the summer of <strong>2008</strong>, Lakeland was the filming site of<br />
two episodes of YTV’s In Real Life, a reality television show<br />
featuring youth. Broadcasting of Farm Frenzy and Firefighting<br />
episodes began in April <strong>2009</strong>.<br />
Designed like mascot Rowdy Rustler, Lakeland’s first corn<br />
maze was a popular attraction in the fall of <strong>2008</strong>. More than<br />
1,500 people toured the Vermilion campus maze which was a<br />
joint project of the adventure tourism and outdoor recreation<br />
program and agricultural sciences.
6<br />
ANNUAL REPORT <strong>2008</strong>-<strong>2009</strong><br />
The Lloydminster campus was converted into an Athletes<br />
Village for the 1,500 participants who competed in the <strong>2008</strong><br />
Saskatchewan Summer Games. Lakeland opened its doors<br />
again as a co-host of the Prairie All Star Soccer event in<br />
Lloydminster in May <strong>2009</strong>. More than 200 athletes from<br />
Saskatchewan, Northwest Territories and Edmonton stayed in<br />
residence and took part in seminars at the campus.<br />
The desire to support a colleague and a student diagnosed<br />
with cancer sparked instructors in Lakeland’s electrical<br />
department to join the fight against the disease. As part of a<br />
local radio station’s radiothon, the instructors offered to do all<br />
the electrical work for a new home construction project. The<br />
winning bid for their services was $8,000.<br />
OPERATiONAL OvERview<br />
Board of Governors (as of June 30, <strong>2009</strong>)<br />
Doug Elliott, Chairman<br />
Bob Mottram, Vice Chairman<br />
Public Member, Lloydminster Region<br />
Glenn Charlesworth, President and Chief Executive Officer<br />
Devan Arsenault, Student Member<br />
Rob Baron, Faculty Member<br />
Stan Fisher, Public Member, Strathcona County<br />
Terry Gunderson, Public Member, Strathcona County<br />
Mary Holtby, Public Member, Saskatchewan<br />
Sean Kingston, Non Academic Support Member<br />
Susan Long, Public Member, Vermilion Region<br />
Craig Solberg, Public Member, Vermilion Region<br />
Programming<br />
Lakeland proceeded with many of the program changes<br />
outlined in its <strong>2008</strong>-2012 business plan.<br />
At the Vermilion campus, pre-employment welder and<br />
electrician programs ran as did second period intakes for<br />
instrument technician and steamfitter-pipefitter. The open<br />
studies program was also offered, but had mixed results.<br />
Without new funds for the program, it was difficult to respond<br />
to the individual academic needs of each student. The program<br />
will likely not continue.<br />
The opening of the Bill Kondro Wing allowed Lakeland to<br />
expand programming at the Lloydminster campus. Event<br />
coordinator, massage therapy and pharmacy-technician<br />
programs were offered and a January intake was added for<br />
the practical nurse program. University studies expanded its<br />
course offerings with beginner’s French I and II, intermediate<br />
French I and II, two first-year physics classes, and new<br />
physical education, psychology, sociology and art history<br />
courses. Two sections of English were added to lower the<br />
student-to-instructor ratio in the classes.<br />
Programming was also offered in a number of off-campus<br />
locations. Lakeland brokered its early learning and child care,<br />
educational assistant and office administration programs to<br />
Credenda, a virtual high school in Prince Albert, Sask.<br />
A total of 108 students registered in Lakeland courses offered<br />
through Credenda. Lakeland’s educational assistant program<br />
was also offered in Strathcona County and was brokered to<br />
Carlton Trail Regional College. Parkland Regional College<br />
offered Lakeland’s firefighter (NFPA 1001) in Melville, Sask.,<br />
with some onsite training done at the training field at the<br />
Vermilion campus.<br />
Sign language interpretation was launched at the University<br />
of Alberta’s Edmonton campus. Lakeland is the first college to<br />
offer a program at the Edmonton campus. Three early learning<br />
and child care courses, one educational assistant course and<br />
one university studies course were offered in Wainwright. Two<br />
other courses were canceled due to low enrolment.<br />
The renewable energy and conservation online program<br />
started in October <strong>2008</strong>. Four of the program’s 10 eight-week<br />
courses were delivered through eCampusAlberta during the<br />
academic year. Lakeland increased the number of online<br />
courses it offers through eCampusAlberta. In fact, Lakeland<br />
eCampusAlberta registrations increased from 91 in 2007-<strong>2008</strong><br />
to 584 in <strong>2008</strong>-<strong>2009</strong>. The bachelor of applied business:<br />
emergency services program accounted for the majority of the<br />
registrations.<br />
The following programs were offered by Lakeland during the<br />
<strong>2008</strong>-<strong>2009</strong> academic year.<br />
Adult development programs<br />
Academic upgrading<br />
Transitional vocational<br />
Applied degree programs<br />
Bachelor of applied financial services<br />
Bachelor of applied business: emergency services<br />
Bachelor of applied science: environmental management
ANNUAL REPORT <strong>2008</strong>-<strong>2009</strong><br />
7<br />
Apprenticeship technical training<br />
Automotive service technician<br />
Carpenter<br />
Electrician<br />
Heavy equipment technician<br />
Instrument technician - periods one and two<br />
Parts technician<br />
Steamfitter-pipefitter - periods one and two<br />
Welder<br />
Certificate and diploma programs<br />
Accounting technician<br />
Adventure tourism and outdoor recreation<br />
Advanced business administration<br />
Agribusiness<br />
Agro-environmental technology<br />
Animal health technology<br />
Animal science technology<br />
Appraisal and assessment<br />
Business administration<br />
Child and youth care<br />
Conservation and restoration ecology<br />
Crop technology<br />
Dairy production<br />
Disability studies<br />
Early learning and child care (certificate and diploma)<br />
Educational assistant<br />
Emergency services technology<br />
Employment skills enhancement<br />
Environmental conservation and reclamation<br />
Environmental protection technology<br />
Esthetician<br />
Event coordinator<br />
Financial services<br />
Firefighter (NFPA 1001)<br />
General agriculture<br />
Heavy oil operations technician<br />
Human resource management<br />
Interior design technology<br />
Livestock production<br />
Management<br />
Management development<br />
Massage therapy<br />
Office administration<br />
Pharmacy technician – retail<br />
Practical nurse<br />
Pre-employment (welding and electrical)<br />
Professional accounting<br />
Ranch and feedlot rider<br />
Renewable energy and conservation<br />
Sign language interpretation<br />
Wildlife and fisheries conservation<br />
University studies<br />
Popular transfer routes include:<br />
• Arts<br />
• Commerce<br />
• Education<br />
• Science<br />
• Social work<br />
• Pre-dentistry<br />
• Pre-medicine<br />
• Pre-pharmacy<br />
• Pre-veterinary medicine<br />
Credit continuing education<br />
Emergency medical responder<br />
Fourth class power engineering<br />
Gas process operator<br />
Health care aide<br />
Pesticides<br />
Pesticides dispenser<br />
Sign language and deaf studies<br />
Credit general studies<br />
Firefighting and emergency services training<br />
General skills training<br />
Short or part-time non-credit<br />
AutoCad operator*<br />
Computer essentials*<br />
Petroleum office technician*<br />
Residential decorating*<br />
Truck driver training*<br />
Non-credit<br />
Open studies – leisure and interest*<br />
Collaborative degree programs<br />
Athabasca University<br />
• Bachelor of commerce<br />
• Bachelor of management<br />
• Bachelor of general studies – applied studies<br />
University of Calgary<br />
• Bachelor of social work*<br />
• Master of education (educational leadership)*<br />
*Programs with an asterisk are not included in the FLE count.
8<br />
Enrolment<br />
ANNUAL REPORT <strong>2008</strong>-<strong>2009</strong><br />
Credit student headcount<br />
Full-time Part-time Total<br />
2006-07 2,692 4,175 6,867<br />
2007-08 2,881 5,191 8,072<br />
<strong>2008</strong>-09 3,208 4,511 7,719<br />
Credit full-load equivalents (FLEs)<br />
2006-07 - 1,778<br />
2007-08 - 1,928<br />
<strong>2008</strong>-09 - 2,051<br />
FLEs by credential<br />
Diploma and post<br />
2006-07 2007-08 <strong>2008</strong>-09<br />
basic diploma 670.547 654.982 668.209<br />
Apprenticeship 241.729 313.163 314.954<br />
University studies<br />
applied degree 256.756 270.108 311.413<br />
Career certificate 377.626 378.668 455.418<br />
No credential<br />
not applicable 231.543 311.076 301.155<br />
Total 1,778.201 1,927.997 2,051.149<br />
Retention rate<br />
2006-07 2007-08 <strong>2008</strong>-09<br />
Certificate programs 70.1% 73.5% 78.2%<br />
Diploma programs 82.7% 88% 89.1%<br />
Facilities<br />
The new Bill Kondro Wing was officially opened in September<br />
<strong>2008</strong>. Located at the Lloydminster campus, the wing has<br />
lecture theatres, classrooms, computer labs, nursing and<br />
sciences labs and a student lounge.<br />
Residence renovations continued at the Vermilion campus.<br />
Three modernized buildings were opened to students during<br />
the year and in April <strong>2009</strong> renovations began in three more<br />
dorms. Additional buildings will be modernized during the<br />
<strong>2009</strong>-2010 year.<br />
Other projects that started or continued during the year<br />
include renovation of the Trades Centre mezzanine and<br />
upgrades to the Applied Engineering building. Installation of<br />
security CCTV continued.<br />
Vermilion campus<br />
Site area: 204.9 hectares<br />
Off site: 9.3 hectares<br />
Agricultural land: 62.86 hectares<br />
Non-residential building area: 50,838.80 sq. m<br />
Residence accommodation: Single beds – 544;<br />
family units – 17<br />
Lloydminster campus<br />
Site area: 26.70 hectares<br />
Non-residential building area: 17,258 sq. m<br />
Residence accommodation: Single beds – 256;<br />
family units – 48<br />
Staffing<br />
The downturn in the economy temporarily lightened Lakeland<br />
College’s previously identified concerns for attracting<br />
new staff. During the past year, Lakeland experienced its<br />
lowest turnover rate since 2002. With fewer people leaving<br />
the organization, coupled with the rise in the region’s<br />
unemployment rate, Lakeland experienced increased<br />
interest in available positions. However, it remains critical<br />
that Lakeland continues preparing its own people for future<br />
opportunities within the organization as nearly 30 per cent of<br />
faculty and administrators at the college are 55 years of age<br />
or older.<br />
The average number of employees at Lakeland each month<br />
was 609. This includes full-time, part-time, temporary,<br />
sessional, casual, student, government sponsored and<br />
contract employees.<br />
Permanent and continuing staff<br />
2006-07 2007-08 <strong>2008</strong>-09<br />
Administration<br />
Full-time 47 48 49<br />
Faculty<br />
Full-time 102 109 111<br />
Part or reduced time 5 5 5<br />
AUPE<br />
Full-time 157 160 167<br />
Part-time 7 9 9<br />
Performance Review<br />
Goals, Initiatives and Outcomes<br />
In working towards fulfilling its mission of inspiring learners<br />
to realize their individual potential, Lakeland included in its<br />
<strong>2008</strong>-2012 business plan six goals and developed initiatives<br />
for each goal. Details follow about Lakeland’s progress toward<br />
achieving its <strong>2008</strong>-<strong>2009</strong> objectives.<br />
Goal – Ensuring sustainable growth<br />
Initiatives<br />
1. Create high performance teams.<br />
Objectives for <strong>2008</strong>-<strong>2009</strong><br />
• Develop a database of potential employees.<br />
• Improve the new employee orientation program.
ANNUAL REPORT <strong>2008</strong>-<strong>2009</strong><br />
9<br />
• Expand “Lakeland 101”, an ongoing staff training program.<br />
• Expand the Green ‘n’ Gold employee recognition program to<br />
include an award that recognizes the accomplishments of a<br />
group of employees.<br />
• Improve performance management system.<br />
Analysis<br />
E New employee training: Monthly orientation sessions were<br />
offered and an orientation checklist for new employees was<br />
developed and used.<br />
E Green ‘n’ Gold group nominations were accepted. Eleven<br />
nominations for teams were submitted.<br />
E Sub-committee completed review of the Administrative<br />
Group Performance Review which took effect Nov. 1, <strong>2008</strong>.<br />
E Internal training calendar was developed.<br />
E In April <strong>2009</strong>, 204 employees participated in an internal<br />
staff survey. Employees were asked to rate their level<br />
of agreement with a number of statements. Responses<br />
were based on a scale of 1 to 5 with 5 indicating strong<br />
agreement.<br />
N I am proud to work at this institution. 4.24<br />
N I have adequate opportunities for training to improve my<br />
skills. 3.74<br />
N The type of work I do on most days is personally<br />
rewarding. 3.74<br />
N Rate your overall satisfaction with your employment at<br />
Lakeland. 4.03<br />
2. Collaborate with industry, government and post-secondary<br />
institutions in Alberta and Saskatchewan to offer programs<br />
that respond to current and emergent needs and interests of<br />
the region and/or provinces.<br />
Objectives for <strong>2008</strong>-<strong>2009</strong><br />
• Offer courses in Wainwright.<br />
• Host an internal celebration of Lakeland successes.<br />
• Learn more about the needs of businesses in region.<br />
• Promote programs and courses to industry partners.<br />
Analysis<br />
E Three early learning and child care courses (six students),<br />
one educational assistant course (two students) and one<br />
university studies course (13 students) were offered in<br />
Wainwright. Two other courses were canceled due to low<br />
enrolment.<br />
E A staff golf tournament was held in August <strong>2008</strong> to<br />
celebrate the accomplishments of the previous year and get<br />
energized for the new academic year.<br />
E Programs and courses were promoted to industry partners<br />
who are members of advisory committees.<br />
E Lakeland joined the Wainwright on Wellness committee to<br />
deliver a school-based mental health program that targets<br />
youth and families.<br />
3. Excel at marketing and enrolment management.<br />
Objectives for <strong>2008</strong>-<strong>2009</strong><br />
• Develop a retention plan.<br />
• Hold a College Student Success course for incoming<br />
students the week before fall classes begin.<br />
• Boost guerrilla marketing efforts to increase awareness of<br />
Lakeland.<br />
• Increase use of alumni in promotional campaigns.<br />
• Increase familiarity of Lakeland among elected and employed<br />
government officials.<br />
Analysis<br />
E Inaugural College Student Success course attracted 29<br />
participants. Eighty-eight per cent of the participants<br />
reported they would recommend the course to friends.<br />
E More than 1,000 junior and senior high school students<br />
received Lakeland shirts during the <strong>2008</strong> Summer Games in<br />
Lloydminster and about 300 athletes took home a Lakeland<br />
shirt from the Prairie All-Star Soccer event in Lloydminster.<br />
In addition, all people accepted into a Lakeland program<br />
received a shirt and, in August <strong>2008</strong>, all staff received a<br />
Lakeland jacket.<br />
E Alumni spoke at program information sessions and<br />
testimonials were used in the viewbook and on the website.<br />
Additional alumni success stories were published in the<br />
newsletter Lakeland Link and alumni publication Alumni<br />
Pride.<br />
E Full-load equivalents increased by six per cent from the<br />
previous year and full-time student headcount increased by<br />
11 per cent.<br />
E Number of visits with elected and employed government<br />
officials: President Glenn Charlesworth – 39; Board of<br />
Governors Chairman Doug Elliott – 25.<br />
4. Align programming with the strategies and priorities of<br />
government.<br />
Objectives for <strong>2008</strong>-<strong>2009</strong><br />
• Add a second intake for the practical nurse program to<br />
support Advanced Education and Technology’s goal of<br />
increasing the number of licensed practical nurse graduates<br />
from 559 to 1,000 by 2012.
10<br />
ANNUAL REPORT <strong>2008</strong>-<strong>2009</strong><br />
• Offer second period intakes for instrument technician and<br />
steamfitter-pipefitter to support Advanced Education and<br />
Technology’s goal of increasing seats in high demand areas<br />
such as trades.<br />
Analysis<br />
E A January intake of practical nurse students was added,<br />
resulting in an increase from 21 first year students in<br />
2007-08 to 43 first year students the following year.<br />
Lakeland continues to broker the program from NorQuest<br />
College.<br />
E Ten students registered for the second period of instrument<br />
technician and 22 students registered for the second period<br />
of steamfitter-pipefitter.<br />
Goal – Investing in Lakeland infrastructure<br />
Initiatives<br />
1. Commitment to Lakeland campuses.<br />
Objectives for <strong>2008</strong>-<strong>2009</strong><br />
• Complete a facilities master plan.<br />
• Update infrastructure renewal plan and prioritize projects.<br />
• Preventative maintenance program underway with the<br />
assistance of Magic software.<br />
• Link the information technology infrastructure plan to<br />
Lakeland’s strategy and share plan with schools and<br />
departments.<br />
• Have current and up-to-date information technology<br />
systems and equipment to meet prioritized student and staff<br />
expectations.<br />
• Renovate two residence buildings at the Vermilion campus.<br />
Analysis<br />
E Department feedback on facilities master plan was<br />
completed. Kasian Architecture is incorporating feedback<br />
into the final plan which will be complete in the <strong>2009</strong>-10<br />
year.<br />
E The three year infrastructure renewal plan was updated.<br />
E Three modernized residence buildings were opened to<br />
students during the year and in April <strong>2009</strong> renovations<br />
began on three more dorms.<br />
E Strategic planning action committee defined “current” as<br />
hardware that is less than five-years-old.<br />
E Information technology’s strategic plan was shared with<br />
Lakeland personnel in June <strong>2009</strong>.<br />
2. Supportive friends.<br />
Objectives for <strong>2008</strong>-<strong>2009</strong><br />
E Receive additional government grants to address<br />
infrastructure needs.<br />
E Complete enough maintenance projects to change the<br />
facilities condition index of the campuses.<br />
E Create a list of potential donors, including alumni,<br />
businesses and individuals.<br />
E Launch a centennial fundraising campaign.<br />
Analysis<br />
E In August <strong>2008</strong>, the Alberta government announced<br />
Lakeland would receive $15.25 million to address priority<br />
capital maintenance projects, including upgrading the<br />
Applied Engineering building at the Vermilion campus,<br />
updating the fire alarm system at the Vermilion campus,<br />
and upgrading the security infrastructure at both campuses.<br />
E The federal government announced in May <strong>2009</strong> that<br />
Lakeland would receive $1.4 million through the Knowledge<br />
Infrastructure Program to upgrade the high voltage<br />
distribution system at the Vermilion campus. Money for<br />
this $2.8 million upgrade was also received from the<br />
Government of Alberta.<br />
E Centennial fundraising campaign was not launched.<br />
Goal – Fostering a people-centred environment<br />
Initiatives<br />
1. Focus on student success.<br />
Objectives for <strong>2008</strong>-<strong>2009</strong><br />
• Minutes and recorded decisions will include a student impact<br />
statement.<br />
• Operationalize “Live the Learning”.<br />
Analysis<br />
E All Executive Team minutes now include a student impact<br />
statement.<br />
E School of Agricultural and Environmental Sciences<br />
implemented an early alert system to identify students who<br />
need assistance.<br />
E Renovations to convert Beta residence into a barrier-free<br />
residence began in the spring. Automatic doors, wider<br />
doors, barrier-free bathrooms, lower kitchen counters and<br />
main floor laundry facilities are among the changes being<br />
made.<br />
E In the <strong>2008</strong>-09 student satisfaction survey, students were<br />
asked if their Lakeland experience met their expectations.<br />
Eighty-six per cent of respondents said their Lakeland
ANNUAL REPORT <strong>2008</strong>-<strong>2009</strong><br />
11<br />
experience met or exceeded their expectations, a drop from<br />
89 per cent the previous year. Asked if they had to do it all<br />
over again, would they enrol at Lakeland again, 80 per cent<br />
said yes compared to 81 per cent the previous year.<br />
E A graduate survey of members of the Class of ’07 showed<br />
that Lakeland graduates are succeeding. Of the people<br />
surveyed, 93.9 per cent said they were employed, 91 per<br />
cent said they recommend Lakeland to others and 87.2 per<br />
cent said the benefits of their Lakeland education outweigh<br />
the financial costs associated with post-secondary<br />
education. The median annual salary of graduates was<br />
$41,930, slightly higher than the provincial average of<br />
$40,000 reported among Class of 2006 certificate and<br />
diploma graduates in the Alberta Advanced Education and<br />
Technology October <strong>2008</strong> Facts and Figures pamphlet.<br />
2. Ignite passion in employees.<br />
Objectives for <strong>2008</strong>-<strong>2009</strong><br />
• Improve the new employee orientation program.<br />
• Provide supervisors with an employee commencement<br />
checklist to ensure new employees are welcomed to Lakeland<br />
and informed of key information.<br />
• Encourage input from new employees on how to improve<br />
orientation process.<br />
Analysis<br />
E Monthly orientation sessions for new employees were<br />
added.<br />
E An employee commencement checklist was developed and<br />
is being used by supervisors.<br />
E Employees completed feedback forms after orientation<br />
activities.<br />
E In April <strong>2009</strong>, 204 employees participated in an internal<br />
staff survey. Employees were asked to rate their level<br />
of agreement with a number of statements. Responses<br />
were based on a scale of 1 to 5 with 5 indicating strong<br />
agreement.<br />
N I am proud to work at this institution. 4.24<br />
N I have adequate opportunities for training to improve my<br />
skills. 3.74<br />
N The type of work I do on most days is personally<br />
rewarding. 3.74<br />
N Rate your overall satisfaction with your employment at<br />
Lakeland. 4.03<br />
3. Bolster College pride.<br />
Objectives for <strong>2008</strong>-<strong>2009</strong><br />
• Recognize and celebrate achievements on both campuses.<br />
• Publish stories about the accomplishments of alumni in staff<br />
and student newsletters and in appropriate media.<br />
Analysis<br />
E Awards night and graduation ceremonies were held at both<br />
campuses.<br />
E Twelve stories about alumni were published in the<br />
newsletter Lakeland Link.<br />
4. Towards 2013.<br />
Objectives for <strong>2008</strong>-<strong>2009</strong><br />
• Ensure that students, employees, alumni and community<br />
members know centenary activities are being planned.<br />
• Give employees the opportunity to be involved in the<br />
planning.<br />
• Launch a centennial fundraising campaign.<br />
Analysis<br />
E Email blasts and articles in the newsletter Lakeland Link<br />
invited people to join the planning committee. The first<br />
article was published in the Sept. 15, <strong>2008</strong> edition of the<br />
Link.<br />
E The centennial fundraising campaign launch was deferred<br />
to the <strong>2009</strong>-10 year.<br />
5. Strengthen communication.<br />
Objectives for <strong>2008</strong>-<strong>2009</strong><br />
• Strengthen relationships with and awareness of Lakeland in<br />
the community and surrounding area.<br />
• Purchase and install electronic display monitors at both<br />
campuses to provide information on various topics and<br />
events.<br />
• Continue development and enhancement of the Lakeland<br />
website to provide accurate, concise and user-friendly<br />
information.<br />
• Add newsletter Lakeland Link to the website and make<br />
media, alumni and community members aware that the Link<br />
is available online.<br />
Analysis<br />
E Lakeland Link was added to the website and throughout<br />
the year, the page was accessed 2,057 times. Midway<br />
through the year, the Link was also uploaded to Yudu, a<br />
free e-document site. The 21 issues on Yudu were viewed a<br />
total of 5,346 times. The Link is also emailed to media and
12<br />
ANNUAL REPORT <strong>2008</strong>-<strong>2009</strong><br />
advisory committee members, adult learning councils in the<br />
region and high schools in Western Canada.<br />
E <strong>Repor</strong>t to the Community was distributed via Canada Post<br />
to 29,850 homes within 100 km of Lakeland campuses.<br />
E Website consultation with Noel-Levitz concluded in early<br />
<strong>2009</strong>.<br />
E Virtual tours, a comprehensive calendar of events, a new<br />
campus life template and customized FAQ service were<br />
added to the website. Embedded video became more<br />
common and a new library website went online in the<br />
spring.<br />
E Ongoing search engine optimization consultation was<br />
started to improve the rankings of Lakeland program pages.<br />
E Forty-four e-mails were sent to 8,145 addresses. These<br />
e-mail campaigns started in November <strong>2008</strong> with weekly<br />
welcomes to prospective students as well as specific<br />
e-mails related to news, admissions information, activities<br />
and events. The open rate average was 27 per cent.<br />
Goal – Engaging our community<br />
Initiatives<br />
1. Cultivate partnerships with government.<br />
Objectives for <strong>2008</strong>-<strong>2009</strong><br />
• Develop key messages and advocacy protocol guide.<br />
• Create inventory of staff, student, board, and alumni linkages<br />
with elected officials.<br />
• Hold brown bag luncheons with employees to share key<br />
messages and discuss their role in advocacy.<br />
Analysis<br />
E Key priorities document was created and used by the board<br />
of governors.<br />
E A list of people who have connections with elected officials<br />
was compiled.<br />
E Key messages document to be created in <strong>2009</strong>-2010.<br />
2. Support our region.<br />
Objectives for <strong>2008</strong>-<strong>2009</strong><br />
• Provide consistent training for all staff and faculty on the<br />
issue of public relations and dealing with the media.<br />
• Ensure Lakeland presence at local and regional events.<br />
• Clarify policy for external use of College facilities.<br />
• Add newsletter Lakeland Link to Lakeland’s website and<br />
make media, alumni and community members aware that the<br />
Link is available online.<br />
Analysis<br />
E Lakeland Link was added to the website and throughout<br />
the year, the page was accessed 2,057 times. Midway<br />
through the year, The Link was also uploaded to Yudu, a<br />
free e-document site. The 21 issues on Yudu were viewed a<br />
total of 5,346 times. The Link is also emailed to media and<br />
advisory committee members.<br />
E Lakeland was well represented by employees, students and<br />
board members at lots of events throughout the region.<br />
3. Work with industry.<br />
Objectives for <strong>2008</strong>-<strong>2009</strong><br />
• Revitalize program advisory committee process, objectives<br />
and rationale.<br />
• Maintain list of employer and industry contacts.<br />
Analysis<br />
E A new advisory committee policy was created through a<br />
sub-committee of deans and chairs.<br />
4. Raise the College’s profile.<br />
Objectives for <strong>2008</strong>-<strong>2009</strong><br />
• Encourage student involvement in community; promote<br />
citizenship<br />
• Strategic recruitment of high profile members for program<br />
advisory committees.<br />
Analysis<br />
E An email was sent to all faculty asking them to talk to<br />
students about community involvement.<br />
E Student newspapers published information about volunteer<br />
opportunities.<br />
Goal – Funding our future<br />
Initiatives<br />
1. Increase financial resources.<br />
• Contract a grant researcher to search, write and prepare<br />
grant applications.<br />
• Continue the alumni annual giving campaign.<br />
• Launch a centennial fundraising campaign.<br />
• Increase contact with people who have attended Lakeland<br />
since 1998 in an effort to foster future donations.<br />
• Initiate an internal campaign.<br />
• Cultivate a culture of philanthropy among current students.<br />
Analysis<br />
E A manager of grants and foundations was hired in<br />
November <strong>2008</strong>.
ANNUAL REPORT <strong>2008</strong>-<strong>2009</strong><br />
13<br />
E A total of $8,540 was donated by 137 alumni during the<br />
alumni annual giving campaign.<br />
E About 2,500 Christmas cards were mailed to alumni who<br />
graduated during the past three years.<br />
E Centennial fundraising campaign was deferred to <strong>2009</strong>-10.<br />
E An internal philanthropy training guide was distributed<br />
to interested people and about 150 employees attended<br />
sessions to learn about the philanthropic process at<br />
Lakeland.<br />
2. Ensure efficient and effective use of financial resources.<br />
Objectives for <strong>2008</strong>-<strong>2009</strong><br />
• Internally review each program.<br />
• Gather benchmark statistics and set targets for FLEs,<br />
retention, graduate satisfaction, graduate employment, cost<br />
per FLE and operational expenses.<br />
Analysis<br />
E There were 34 programs reviewed internally. Seven<br />
agricultural sciences programs underwent a comprehensive<br />
review.<br />
E Benchmark statistics were compiled and will be used by<br />
enrolment management steering committee for setting<br />
targets.<br />
Goal – Providing innovative programs<br />
Initiatives<br />
1. Relevant programs, focused curriculum.<br />
Objectives for <strong>2008</strong>-<strong>2009</strong><br />
• Define program profiles.<br />
Analysis<br />
E Templates were created and profiles developed for 100 per<br />
cent of full-time credit programs.<br />
2. On target.<br />
Objectives for <strong>2008</strong>-<strong>2009</strong><br />
•Determine if evaluation processes with action plans are in<br />
place for programs and faculty.<br />
Analysis<br />
E All course/instructor evaluations are completed online by<br />
students within two weeks of the completion of the course.<br />
E Instructor evaluations are on target.<br />
3. Modern technology.<br />
Objectives for <strong>2008</strong>-<strong>2009</strong><br />
• Create a committee and establish a plan to enhance learning<br />
through technology and alternate delivery.<br />
• Complete transition to a wireless campus.<br />
Analysis<br />
E A committee was established with representation from all<br />
schools at Lakeland.<br />
E Transition to a wireless campus was completed in June<br />
<strong>2009</strong>.<br />
4. Lifelong learning.<br />
Objectives for <strong>2008</strong>-<strong>2009</strong><br />
• Establish relationship with Wainwright’s community adult<br />
learning council.<br />
• Establish relationship with one other council within<br />
Lakeland’s geographic region.<br />
Analysis<br />
E Lakeland met with representatives from Wainwright<br />
and District Council for Adult Lifelong Learning and<br />
Lloydminster Learning Council Association to gather input<br />
for the institutional access plan.<br />
E Lakeland Link is emailed to adult learning councils in the<br />
region.<br />
EVER TO EXCEL
14<br />
ANNUAL REPORT <strong>2008</strong>-<strong>2009</strong><br />
ManagemENT’s DisCUssiON ANd ANALysis<br />
Overview<br />
Management’s Discussion and Analysis should be read in conjunction with Lakeland’s annual audited financial statements and<br />
accompanying notes. These statements are reviewed and approved by the Lakeland College Board Audit Committee then forwarded to<br />
the Lakeland College Board of Governors for approval.<br />
In the <strong>2008</strong>-2012 business plan, Lakeland budgeted an $800,000 deficit for the <strong>2008</strong>-<strong>2009</strong> year but the result was an excess of<br />
$437,000 of revenue over expenses. This $1.2 million variance is attributed to additional grants ($5.5 million), tuition ($800,000) and<br />
sales, rentals and services ($1 million) revenue exceeding budgeted amounts. These additional revenues were offset by supplies and<br />
services expenses of $7.1 million relating to grant spending and renovations to the Vermilion campus residences.<br />
In comparison to the 2007-<strong>2008</strong> year, total revenue for <strong>2008</strong>-<strong>2009</strong> increased by $5.3 million while expenditures increased by $9.3<br />
million inclusive of the $4.4 million of renovation expenses related to the Vermilion campus residences. Revenue increase was mainly<br />
attributed to grants ($4.4 million), tuition ($400,000) and amortization of deferred capital contributions ($700,000) which increased<br />
as a result of the grant and donor funding spent on the Bill Kondro Wing expansion at the Lloydminster campus. The expense line<br />
increases relate to salaries and benefits ($2.5 million), supplies and services (including the Vermilion campus residence renovations)<br />
of $5.8 million and amortization of capital assets which increased as a result of the September <strong>2008</strong> opening of the Bill Kondro Wing.<br />
Financial Information<br />
Revenues<br />
Total revenues increased 8.8 per cent from $57 million in 2007-<strong>2008</strong> to $62 million in <strong>2008</strong>-<strong>2009</strong>. The following table details the<br />
revenue sources of Lakeland as presented in the audited financial statements.<br />
Revenue By Source<br />
2007 <strong>2008</strong> <strong>2009</strong><br />
Grants $ 28,105,537 $ 32,449,903 $ 36,821,751<br />
Tuition and related fees 10,892,314 10,304,775 10,746,780<br />
Sales, rentals and services 4,989,706 5,361,073 5,611,361<br />
Amortization of deferred capital contributions 2,486,207 2,578,117 3,292,462<br />
Contract revenue 4,917,143 2,676,791 2,205,562<br />
Investment income 807,262 1,060,282 877,119<br />
Donations 289,169 241,548 186,464<br />
Other 1,868,102 1,917,655 2,196,005<br />
Total Revenue $ 54,355,440 $ 56,590,144 $ 61,937,504<br />
Government grants<br />
Grant revenue represented about 59 per cent of Lakeland’s total revenue in <strong>2008</strong>-<strong>2009</strong>, an increase of $4.4 million or 13 per cent<br />
from the previous year. Grants received from Advanced Education and Technology include base operations grants of $28.1 million<br />
(2007-<strong>2008</strong> – $26 million), conditional grants of $4.2 million (2007-<strong>2008</strong> – $1.8 million), as well as enrolment planning funding of<br />
$3.3 million (2007-<strong>2008</strong> – $3.5 million). Conditional funding received from the Government of Saskatchewan was approximately $1.3<br />
million which was up slightly from the $1.2 million received in 2007-<strong>2008</strong>.<br />
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<br />
facility operations grant for the Bill Kondro Wing, and $200,000 tuition fee grant increase.
ANNUAL REPORT <strong>2008</strong>-<strong>2009</strong><br />
Conditional grants increased by $2.4 million, due primarily to infrastructure spending on various repair and maintenance projects<br />
throughout Lakeland. In addition, $12.7 million in infrastructure grants that were received in <strong>2008</strong>-<strong>2009</strong> were not spent as of June 30,<br />
<strong>2009</strong>. This money will be utilized for projects in future periods.<br />
Tuition<br />
Tuition revenue increased about $440,000 due to a significant increase in credit tuition fee revenue along with a decrease in non-credit<br />
programming tuition revenue. Credit tuition revenue increased by $1 million. This figure corresponds with the 6.5 per cent increase<br />
from the previous year in Full Load Equivalents (FLE). In addition, credit tuition fees were increased by the maximum allowable amount<br />
of 4.6 per cent for existing programs.<br />
New programs including event coordinator, renewable energy and conservation, pre-employment electrician, pre-employment<br />
welder and sign language interpretation accounted for 29 per cent of the FLE increase. The remaining growth is attributed to current<br />
programming particularly in the university studies and applied degree areas. Non-credit tuition decreased approximately $826,000<br />
which is reflective of the shift in the emergency training centre’s programming to credit programming and the closure of the<br />
Strathcona County learning centre.<br />
Amortization of deferred capital contributions<br />
In <strong>2008</strong>-<strong>2009</strong>, amortization of deferred capital contributions increased by $714,000 to $3.3 million. This reflects increased externally<br />
restricted funding provided for capital asset acquisitions which are subject to amortization. The opening of the Bill Kondro Wing in<br />
September <strong>2008</strong> accounted for the majority of the increase.<br />
Investment income<br />
Lakeland’s total investment income increased $31,000 to $1.6 million in <strong>2008</strong>-<strong>2009</strong> (see Note 17 of the audited financial statements).<br />
A significant portion of this investment income relates to the unspent grant funds. The investment income received from these funds<br />
was allocated to deferred contributions and deferred capital contributions as opposed to being reflected as investment income on<br />
the statement of operations. This is why investment income as reported in the statement of operations is $877,000 which is down<br />
$184,000 from the 2007-<strong>2008</strong> total of $1,061,000. This decline in investment income is a result of the volatility and weakening of the<br />
markets in <strong>2008</strong>-<strong>2009</strong>. Investment market challenges contributed to the $1.6 million reduction of Lakeland’s investment portfolios as<br />
detailed in Note 11 of the audited financial statements.<br />
Expenses<br />
Total expenses increased from $52.2 million in 2007-<strong>2008</strong> to $61.5 million in <strong>2008</strong>-<strong>2009</strong>, an increase of 17.8 per cent. Of this amount,<br />
$4.4 million was directly related to the renovation of the Vermilion campus residences compared to $800,000 spent on the residences<br />
in 2007-<strong>2008</strong>. The following table details Lakeland’s expenses as presented in the audited financial statements.<br />
15<br />
Expense By Source<br />
2007 <strong>2008</strong> <strong>2009</strong><br />
Salaries and benefits 26,826,878 29,268,210 31,778,421<br />
Supplies and services 15,961,468 15,551,065 21,350,974<br />
Amortization of capital assets 4,444,772 4,731,510 5,496,614<br />
Utilities 1,849,871 1,841,927 2,179,431<br />
Severance payments 135,142 124,345 -<br />
Interest expense 227,344 310,928 330,422<br />
Scholarships and bursaries 374,835 366,505 355,405<br />
Loss (gain) on disposal of assets (6,367) 48,826 9,778<br />
Total expenses 49,813,943 52,243,316 61,501,045
16<br />
ANNUAL REPORT <strong>2008</strong>-<strong>2009</strong><br />
Salaries and benefits<br />
As shown in the Expense by Source table, salaries and benefits account for, on average, approximately 54 per cent of the total<br />
expenditure budget. In <strong>2008</strong>-<strong>2009</strong> this expense line increased by about nine per cent from the previous year because of negotiated<br />
contract settlement increases and the need for more staff to accommodate new programming and Lakeland’s enrolment increase.<br />
Supplies and Services<br />
In <strong>2008</strong>-<strong>2009</strong>, supplies and services expenses were $21.4 million which is $5.8 million more than what was spent in 2007-<strong>2008</strong>.<br />
Compared to the previous year, about $3.8 million was spent on renovating the Vermilion campus residences. The remaining $2 million<br />
is attributed to the additional spending on infrastructure funded maintenance projects such as the security system, fire alarm, Trades<br />
Centre mezzanine renovation and the Applied Engineering upgrade.<br />
Amortization of capital assets<br />
Due primarily to the September <strong>2008</strong> opening of the Bill Kondro Wing, amortization expenses increased $800,000.<br />
Financial Position<br />
Net Assets<br />
Lakeland’s net asset balance at the end of <strong>2008</strong>-<strong>2009</strong> was $28.9 million which is $400,000 less than the previous year’s amount. The<br />
net asset balance is reported in four major categories:<br />
• Endowments: The endowment balances increased by $331,000 for an ending balance of $2.3 million.<br />
• Unrestricted: Lakeland’s unrestricted net assets balance at year end was $1.3 million which includes an adjustment for the unrealized<br />
loss on investments of $724,000 as detailed in Note 11 of the financial statements. In the <strong>2008</strong>-<strong>2009</strong> year, $11.2 million was<br />
transferred from unrestricted into restricted funds representing future spending initiatives of $4.5 million for further residence<br />
renovations, $2.7 million for new residence construction and $4 million for agricultural initiatives. The remaining decrease in<br />
unrestricted funds pertains to appropriations held with the Town of Vermilion regarding the joint operation of the swimming pool and<br />
with Alberta Environment regarding the pesticides program Lakeland helps deliver.<br />
• Internally restricted: Internally restricted net assets represent amounts set aside by Lakeland for specific purposes. These amounts<br />
are not available for use without approval from the board of governors. The balance increased from $100,000 to $11.4 million in<br />
<strong>2008</strong>-<strong>2009</strong> which represents the board and management’s commitment to have the appropriate resources available for initiatives<br />
that support Lakeland’s strategic priorities. Details of these prioritized projects are in the previous paragraph on unrestricted net<br />
assets.<br />
Invested in capital assets: Net assets invested in capital assets increased from $11.5 million in 2007-<strong>2008</strong> to $14 million in <strong>2008</strong>-<strong>2009</strong>.<br />
This $2.5 million increase represents the investment in capital that Lakeland has undertaken, particularly in the areas of computer<br />
hardware and software ($1.6 million) and milk quota ($280,000), as well as the purchase of a fire truck ($202,000).<br />
Investments<br />
The cash, short term investment and cash equivalents balance at year end was $32 million, an increase of $13.6 million over the<br />
previous year. This increase is primarily due to the receipt of capital and infrastructure grants from the Government of Alberta that<br />
were not expended at June 30, <strong>2009</strong>.<br />
The long-term investment balance decreased by $809,000 which includes an unrealized investment loss of $724,000 as disclosed<br />
in Note 11 of the financial statements. Lakeland has elected to record its investments utilizing the available for sale method whereby<br />
gains or losses in investments are disclosed in the investment section of the statement of financial position and in the net assets or<br />
deferred contributions section until the asset is removed from the statement of financial position.<br />
Capital Projects<br />
In the <strong>2008</strong>-<strong>2009</strong> year, Lakeland spent $3.8 million on computer hardware, computer software, vehicles, equipment, furnishings,<br />
library additions and milk quota.<br />
In addition, $1.5 million in buildings and $1.3 million for furniture and equipment was spent in <strong>2008</strong>-<strong>2009</strong> to complete the Bill Kondro<br />
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
ANNUAL REPORT <strong>2008</strong>-<strong>2009</strong><br />
17<br />
million for furniture and equipment. About 89 per cent of this project was funded by Alberta Advanced Education and Technology via<br />
infrastructure and renaissance grants and the remaining 11 per cent of the funding was provided from donors.<br />
As for other projects, as of June 30, <strong>2009</strong>, 90 per cent of security updates were finished, the fire alarm upgrade was out for tender and<br />
design of the following Lakeland projects was underway: water treatment facility for fire etc., Lakeland’s emergency training centre,<br />
Applied Engineering building upgrade, Trades Centre mezzanine, student activity centre, Alumni Hall lift, and high voltage system<br />
upgrade.<br />
Areas of Risk<br />
Deferred maintenance<br />
In July 2002, the value of Lakeland’s supported total deferred maintenance was almost $9.9 million. Lakeland received a $1.4 million<br />
IMP grant in <strong>2008</strong>-<strong>2009</strong> – an increase from the previous sum of $464,000 a year – to help address deferred maintenance. However,<br />
escalation of costs has prevented Lakeland from getting even close to catching up. As of June 30, <strong>2009</strong>, Lakeland’s supported<br />
deferred maintenance when adjusted for construction cost inflation was approximately $10.9 million. This doesn’t include unsupported<br />
items such as parking lots, roadways and residence buildings.<br />
Accurate budgeting<br />
Creating a financially sound and realistic budget is a challenge. Some of the factors impacting Lakeland’s budget process include:<br />
• The expectation that there will be no increase – and may be a decrease – in the general operating grant.<br />
• Negotiated salaries in excess of funding increases.<br />
• A tuition policy that limits tuition increases to rates below internal inflation rates.<br />
Lakeland is committed to addressing these budgetary pressures and will work closely with the Government of Alberta to develop longterm<br />
strategies to ensure that it can continue to deliver on its mandate and successfully implement its strategic plan.
18<br />
ANNUAL REPORT <strong>2008</strong>-<strong>2009</strong><br />
Donors<br />
Lakeland College thanks the many people and organizations who made a donation to the college between July 1, <strong>2008</strong> and June 30,<br />
<strong>2009</strong>. Our thanks also to the many donors who chose to make their contribution anonymously. Our apologies to anyone whose name<br />
we may have inadvertently missed.<br />
Agland<br />
Agriculture Financial<br />
Services Corporation<br />
Alberta Agriculture and Rural Development<br />
Alberta Assessors’ Association<br />
Alberta Blue Cross<br />
Alberta Business Education Association<br />
Alberta Treasury Branches<br />
Alberta Veterinary Medical Association<br />
Mark Alexander<br />
Glen and Linda Amundrud<br />
Angus Acres<br />
Animal Nutrition Association of Canada<br />
- Alberta Division<br />
Apple Drugs (Vermilion)<br />
Aramark Canada Ltd.<br />
Ardrossan Electric 2007 Ltd.<br />
Monte and Chris Armstrong<br />
Eleanor Astle<br />
ATCO Electric<br />
ATCO Gas<br />
Howard Austin<br />
Baddock’s Power Products Ltd.<br />
Duane Baldwin<br />
Keith Baker<br />
Barrhill Farms Ltd.<br />
Battle River Community Foundation<br />
BBNS Holdings Ltd.<br />
Bill Bentley<br />
Jo Berglund<br />
Bert Duncan Trailer Sales (2007) Inc.<br />
Bill Bocock<br />
BioResource Technologies<br />
Bluebird Truck Service Ltd.<br />
Boardom/Edyak Holdings Ltd.<br />
Bob Jack’s Sheet Metal Ltd.<br />
R.T. Bocock<br />
Lonnie Boothman<br />
Border City Concrete Ltd.<br />
Border Rock 106.1 The Goat<br />
Boundary Ford Sales Ltd.<br />
Robin Bourgonje<br />
Susan Brazeau<br />
Brian D. Larson Consulting Inc.<br />
Brian Schaumleffel Contracting<br />
Larry Bright<br />
Doug Brite<br />
Colin Broland<br />
Bry Sand Ice Arena Ltd.<br />
James W. Calderwood<br />
Mary Callander<br />
Robert Cameron<br />
Canadian Heavy Oil Association<br />
Canadian National Railways<br />
Canadian Natural Resources Limited<br />
Duncan Carey<br />
Cargill Limited<br />
Deanna M. Carter<br />
Castle Mountain Titans Basketball<br />
Cavalier Contracting<br />
CE Franklin Ltd.<br />
Denis Champagne<br />
Child and Youth Care Association<br />
Murray Coburn<br />
Coca Cola Bottling<br />
Colchester & District<br />
Agricultural Society<br />
College universitaire De Saint-Boniface<br />
John Connelly<br />
Convergint Technologies<br />
Shelly M. Corbiere<br />
County of Vermilion River No. 24<br />
Dave Cowan<br />
CPANSA and WMA<br />
Craig’s Vermilion Ltd.<br />
Cummins Western Canada<br />
Chad Cunningham<br />
Rex Cunningham<br />
Mary Daigneault<br />
Darmac Appraisals Ltd.<br />
Rosabelle Daugela<br />
Betty Dennett<br />
Doreen Der<br />
Devon Canada Corporation<br />
Greg Dewing<br />
Jason and Heather Dewling<br />
Doc Holidays Charters Ltd.<br />
Dr. Celia Takahashi Inc.<br />
Dr. Jack W. Chu Inc.<br />
Dr. Michael Henry Inc.<br />
Bev Dombrova<br />
Don Mazankowski Scholarship Foundation<br />
Bob A. Douglas<br />
Dakota Dustow<br />
Jeff Dustow<br />
Eagle Valley Industries Ltd.<br />
Eastalta Co-op Ltd.<br />
Ecochem Canada Ltd.<br />
Tracy Eger-Zaharko<br />
Doug and Joan Elliott<br />
Ken Emes<br />
End of the Roll<br />
Falcon Auto Leasing Inc.<br />
Farm Credit Canada<br />
Farmfair Hereford Show & Solitaire Classic<br />
Bert Featherstone<br />
David Fedun<br />
Ferbey Sand and Gravel Ltd.<br />
Joan Ferguson<br />
Roman Filipkowski<br />
Randy Fines<br />
Laura Finlayson<br />
Karen D. Firlotte<br />
First Alarm Accessories Ltd.<br />
Ken B. Fisher<br />
Flint Fluid Haul Services Ltd.<br />
Florence Productions Inc. <strong>2008</strong><br />
Focus<br />
Fountain Tire Ltd.<br />
Myrna G. Fox<br />
Frank’s Saddlery & Supply Ltd.<br />
Frontier Peterbilt Sales Ltd.<br />
Fulkerth Services Ltd.<br />
Joe & Sonja Galichowski<br />
Frank Gannon<br />
Troy Gartner<br />
Gazelle’s Oilfield Services Ltd.<br />
Robert M. Gehl<br />
Geo. C. Webb & Sons (1980) Ltd.<br />
Golden Jubilee Rebekah Lodge #133<br />
Goldstock Hereford Farm<br />
Tim Goodbrand<br />
Go Travel<br />
Elaine J. Gottfried<br />
David Gray<br />
Greenbelt Farms Ltd.<br />
Grit Industries Inc.<br />
Growing Alberta<br />
H. & L. Motors Ltd.<br />
Florence Hafso<br />
Belinda Halbach<br />
Half Circle TE Ranch<br />
Bill Hamblin<br />
Hanna Value Drug Mart<br />
Stacey Harasiuk-Adams<br />
Hardy Excavating Ltd.<br />
Mary Harrish<br />
Vernon Hauer<br />
Heavy Crude Hauling<br />
Heinsburg Oilfield Contracting Ltd.<br />
Hill Acme Machine Ltd.<br />
Hillsask Farm<br />
Dennis Hobman<br />
Audrey Hockley<br />
John and Marilyn Hoegl<br />
Ron Hoffman<br />
Henry G. Hofs<br />
Priscilla A. Holt<br />
Greg and Tami Holtby<br />
Mary Holtby<br />
Brian Honeker<br />
Honey Bee Manufacturing Ltd.<br />
Helen Huber<br />
Husky Energy Inc.<br />
Alfred Hutchinson<br />
Ideal Office Solutions<br />
IKON Office Solutions<br />
Image Press<br />
Independent Order of Odd Fellows No. 189<br />
Interior Designers of Alberta<br />
Interior Specialists Lloyd Ltd.<br />
Ireland Farm Equipment Ltd.<br />
Hazel Irving<br />
Carol A. Jaap Klass<br />
Barry A. Jackson<br />
Janeil Enterprises Inc.<br />
Jellybeans Hair Studio<br />
Joel Stobee Professional Corporation<br />
Johnson Inc.<br />
Alan D. Jones<br />
Roger Jones<br />
Vic and Ann Juba<br />
K. Kenn Industries Ltd.<br />
Kalahari Management Inc.<br />
Kasian Architecture Interior<br />
Design & Planning Ltd.<br />
Kelsey’s Bar & Grill<br />
Kenilworth Combustion Ltd.<br />
Keva Concrete Construction Ltd.<br />
Mahmood Khan<br />
Tom Kibblewhite<br />
Cecil E. King<br />
Koback Enterprises Ltd.<br />
Louise M. Krissa<br />
Roy J. Kubica<br />
KUDU Industries Ltd.<br />
Lakeland College Alumni Assoc.<br />
Lakeland College Staff Association<br />
Lakeland College Stockman’s Club
ANNUAL REPORT <strong>2008</strong>-<strong>2009</strong><br />
19<br />
Lakeland College Students’ Association<br />
Lakeland Ford Sales Ltd.<br />
Leckie and Associates<br />
Lee J. Moneo Professional Corporation<br />
Ken Leighton<br />
Robert Lemay<br />
Park Letts<br />
Kenton J. Lindenbach<br />
Suzanne Linklater<br />
Lions Club of Lloydminster Corp.<br />
Little’s Ranching Co. Ltd.<br />
Lloydminster Animal Hospital<br />
Lloydminster Chamber of Commerce<br />
Longridge Consulting<br />
Long’s Value Drug Mart<br />
Thea-Docia Lysne<br />
Tom MacDonell<br />
Edla B. MacLaine-Pont<br />
Tom Makepeace<br />
Manitoba Hydro<br />
Mannville Truck Wash<br />
Faye Marcoux<br />
Kurt Margolis<br />
Marsh Canada Limited<br />
Florence Martin<br />
Cecile Martindale<br />
Marvel Farms<br />
May Theatres (1984) Ltd.<br />
Richard McBain<br />
Marguerite A. McConnell<br />
Arthur J. McGinnis<br />
Doug McGinnis<br />
Jean McGuckin<br />
William G. McIldoon<br />
Ina McLean Lawrence<br />
George & Ivy McMillan<br />
Tim McMillan<br />
Walter McNary<br />
Bill Melenka<br />
Merck Frosst Canada Ltd.<br />
Meridian Booster<br />
Meridian Mud Services Ltd.<br />
Meyers Norris Penny<br />
Paula Mickelson<br />
Midwest Communications<br />
Midwest Furniture & Appliances<br />
Minburn Motors 1982<br />
Misty Hills Charolais Ltd.<br />
Meloche Monnex<br />
Monsanto Canada Inc.<br />
Delia Morgan<br />
Debbie Neigum<br />
Kathy Nelson<br />
Robert Nelson<br />
Newcap Broadcasting<br />
Nexen Inc.<br />
Loralee Nichols<br />
Norac Exploration Ltd.<br />
Noralta Technologies Inc.<br />
Northern EnviroSearch Ltd.<br />
Simone Odynski<br />
Orlando Omlid<br />
Paradise Hill Meat House<br />
Arch & Geretta Partington<br />
Payne Transportation<br />
Peace Island Tours<br />
Pembina Consumers Co-op (2000) Ltd.<br />
Pembina Pipeline Corporation<br />
Angelina P. Pennell<br />
Perkins Farms Inc.<br />
Perma Earth Consulting Ltd.<br />
Christina Perry<br />
Craig Peterson<br />
Margaret Peterson<br />
Petroleum Society of CIM<br />
PIC Investment Group Inc.<br />
Donna L. Pilgaard<br />
Todd and Wendy Plandowski<br />
Nick Porozni<br />
Robert Porozni<br />
Poundmaker Pork Farm Inc.<br />
Earl Priest<br />
Margaret Priest<br />
Priority Insurance Inc.<br />
Ranch & Feedlot Rider Club<br />
Aaron Rawlake<br />
RBC Foundation<br />
RBC Royal Bank<br />
Redhead Equipment Ltd.<br />
Regional Municipality of Wood Buffalo<br />
Richardson’s Jewellery<br />
Road Runner Water Hauling Ltd.<br />
John (Jack) and Dorothy Roberton<br />
Walter E. Roland<br />
Beth N. Ronaghan<br />
Betty Rost<br />
Rotary Club of Lloydminster<br />
Rotary Club of Vermilion<br />
Round Corner Welding<br />
Royal Canadian Legion,<br />
Alberta - N.W.T Command<br />
Royal Canadian Legion Br. 39<br />
Shaun J. Rue<br />
Ry-Lene Consulting Ltd.<br />
SAMA<br />
Sand Control Systems Ltd.<br />
Judy Sarsons<br />
SASK Power<br />
Saskarc<br />
Sask Assoc. of<br />
Veterinary Technologists Inc.<br />
Saskatchewan Association<br />
for Community Living Inc.<br />
Saskatchewan Outfitters Association<br />
Saskatoon Wholesale Tire Ltd.<br />
Leanne Sauer<br />
Russell J. Scheideman<br />
Scotia Bank<br />
James J. Scott<br />
Randa Scott-Olsen<br />
Lloyd G. Seath<br />
Selte Enterprises Ltd.<br />
Servus Credit Union<br />
Shell Canada<br />
Siemens Building Technologies Ltd.<br />
Walter Skripitsky<br />
Emily Skubleny<br />
Lloyd G. Smith<br />
Melvin Smith<br />
Solstice Canada Corp<br />
Raymond Sommerfeld<br />
Sorenson<br />
Spartan Controls<br />
Sportfactor Inc.<br />
Richard and Alison Starke<br />
Alex J. Stewart<br />
Diane Burt Stuckey<br />
Subway<br />
Sun Media<br />
Super 8 Motel<br />
Colleen Symes<br />
Synergy Credit Union<br />
John S. Taylor<br />
TCFN - Post Secondary Education<br />
TD Waterhouse<br />
Cliff Teasdale<br />
Brian G. Tetz<br />
The Bea Fisher Enterprises Inc.<br />
The Calgary Foundation<br />
The Canadian Wheat Board<br />
The Charlesworth Family<br />
The Esthetic Touch Ltd.<br />
The Luchynski Families<br />
The Prairie Provinces<br />
Chapter of the NKBA<br />
The Vermilion Standard<br />
Dianne Thorel<br />
Sherry Thorel<br />
TLC Landscaping<br />
Tourism Saskatchewan<br />
Town Of Edson<br />
Ellis Treffry<br />
Kristi Trefiak<br />
Triland Welding & Machine Ltd.<br />
Lillian Trowbridge<br />
Dennis Turner<br />
William C. Turner<br />
UCG Universal Consulting Group Ltd.<br />
United Farmers of Alberta<br />
Nathan Unrah<br />
Sandra L. Unruh<br />
Used Book Store<br />
Veracity Financial Services<br />
Vermilion & District<br />
Chamber of Commerce<br />
Vermilion Agricultural Society<br />
Vermilion Credit Union Ltd.<br />
Vermilion Jr. B Tigers<br />
Vermilion Shell<br />
Vermilion Truck Wash<br />
Viterra<br />
Viterra Research & Development<br />
Vulcan Mechanical Inc.<br />
Alice Wainwright-Stewart<br />
Charlie H. Wallish<br />
Jack F. Ward<br />
Waste Management of Canada<br />
Shannon Watson<br />
Heather Watt<br />
Weatherford<br />
Lucille Weinmeier<br />
Terry J. West<br />
Peter J. Weyenberg<br />
Wholesale Fire & Rescue Ltd.<br />
Patricia Wild<br />
Wilkinson Livingston Stevens LLP<br />
Anne Willard<br />
Shirley A. Williams<br />
Norman Wilson<br />
Wingrove Farms Ltd.<br />
Brian Wittmack<br />
Orest Yackimec<br />
Lori Young<br />
Jo-Anne B. Zawadiuk<br />
Max Zeise
20<br />
ANNUAL REPORT <strong>2008</strong>-<strong>2009</strong><br />
FiNANCiAL sTATEmENTs<br />
AudiTOR’s REPORT<br />
TO TH E BOA R D OF GOVE R N O R S<br />
O F L AKEL AND <strong>COLLEGE</strong><br />
I have audited the statement of financial position of Lakeland College<br />
as at June 30, <strong>2009</strong> and the statements of operations, changes in<br />
net assets and cash flows for the year then ended. These financial<br />
statements are the responsibility of the College’s management. My<br />
responsibility is to express an opinion on these financial statements<br />
based on my audit.<br />
I conducted my audit in accordance with Canadian generally<br />
accepted auditing standards. Those standards require that I plan<br />
and perform an audit to obtain reasonable assurance whether the<br />
financial statements are free of material misstatement. An audit<br />
includes examining, on a test basis, evidence supporting the amounts<br />
and disclosures in the financial statements. An audit also includes<br />
assessing the accounting principles used and significant estimates<br />
made by management, as well as evaluating the overall financial<br />
statement presentation.<br />
In my opinion, these financial statements present fairly, in all material<br />
respects, the financial position of the College as at June 30, <strong>2009</strong><br />
and the results of its operations and its cash flows for the year then<br />
ended in accordance with Canadian generally accepted accounting<br />
principles.<br />
Edmonton, Alberta<br />
October 28, <strong>2009</strong><br />
Original signed by Fred J. Dunn, FCA<br />
Auditor General
ANNUAL REPORT <strong>2008</strong>-<strong>2009</strong><br />
21<br />
S tate m e nt of Fi n a n cial Position<br />
A s a t J u n e 3 0 , 2 0 0 9<br />
<strong>2009</strong> <strong>2008</strong><br />
(Restated - Note 26)<br />
AS S E T S<br />
Cash and short-term investments (Note 4) $ 27,957,462 $ 14,872,220<br />
Accounts receivable & Prepaids 3,016,991 2,639,571<br />
Inventories (Note 3) 1,072,191 951,956<br />
32,046,644 18,463,747<br />
Non-current cash and cash equivalents (Note 4) 4,677,718 4,757,088<br />
Investments (Note 5) 10,332,562 11,142,434<br />
Patronage dividends receivable 8,483 12,817<br />
Capital assets (Note 6) 65,766,338 64,691,334<br />
$ 112,831,745 $ 99,067,420<br />
liABiliti E S A N D N E T AS S E T S<br />
Accrued vacation pay $ 2,366,858 $ 2,036,406<br />
Accounts payable and accrued liabilities 6,136,987 4,198,343<br />
Unearned revenue (Note 7) 2,277,376 2,030,537<br />
Deferred contributions (Note 8) 14,957,120 1,677,760<br />
Current portion of long-term liabilities (Note 12) 607,462 607,462<br />
26,345,803 10,550,508<br />
Deferred capital contributions (Note 9) 6,400,030 8,476,424<br />
Unamortized deferred capital contributions (Note 10) 48,286,209 47,368,820<br />
Long-term liabilities (Note 12) 2,869,470 3,389,250<br />
83,901,512 69,785,002<br />
Net assets:<br />
Unrestricted<br />
Accumulated excess of revenue over expenses 1,991,244 15,366,494<br />
Accumulated net unrealized gain (loss) on investments (Note 11) (723,626) 396,293<br />
Internally restricted (Note 13) 11,397,486 120,545<br />
Invested in capital assets 14,003,196 11,468,428<br />
Endowments (Note 14) 2,261,933 1,930,658<br />
28,930,233 29,282,418<br />
$ 112,831,745 $ 99,067,420<br />
The accompanying notes are part of these financial statements.
22<br />
ANNUAL REPORT <strong>2008</strong>-<strong>2009</strong><br />
S tate m e nt of O p e rations<br />
Fo r t h e ye a r e n d e d J u n e 3 0 , 2 0 0 9<br />
<strong>2009</strong> <strong>2008</strong><br />
Budget Actual Actual<br />
(Note 18) (Restated - Note 26)<br />
R E VE N u e :<br />
Grants (Note 15) $ 31,366,845 $ 36,821,751 $ 32,449,903<br />
Tuition and related fees 9,950,098 10,746,780 10,304,775<br />
Sales, rentals and services (Note 16) 4,654,689 5,611,361 5,361,073<br />
Amortization of deferred capital contributions (Note 10) 2,650,000 3,292,462 2,578,117<br />
Contract revenue 1,875,114 2,205,562 2,676,791<br />
Investment income (Note 17) 410,004 877,119 1,060,282<br />
Donations 231,732 186,464 241,548<br />
Other 1,162,049 2,196,005 1,917,655<br />
52,300,531 61,937,504 56,590,144<br />
E x P E N S E S (Note 16):<br />
Salaries and benefits (Note 19) 31,082,849 31,778,421 29,268,210<br />
Supplies and services 14,212,285 21,350,974 15,551,065<br />
Amortization of capital assets 4,968,804 5,496,614 4,731,510<br />
Utilities 2,188,619 2,179,431 1,841,927<br />
Severance payments - - 124,345<br />
Interest expense 211,215 330,422 310,928<br />
Scholarships and bursaries 436,762 355,405 366,505<br />
Loss (Gain) on disposal of assets - 9,778 48,826<br />
53,100,534 61,501,045 52,243,316<br />
ExCESS (DEFicit ) OF REVENue OVER exPENSES<br />
$ (800,003) $ $436,459 $ 4,346,828<br />
The accompanying notes are part of these financial statements.
ANNUAL REPORT <strong>2008</strong>-<strong>2009</strong><br />
23<br />
S tate m e nt of C h a n g es i n N et Assets<br />
Fo r t h e ye a r e n d e d J u n e 3 0 , 2 0 0 9<br />
<strong>2009</strong> <strong>2008</strong><br />
Accumulated Net<br />
Unrealized Gain<br />
Internally (Loss) on Invested in Total<br />
Restricted Investments Capital (Restated<br />
Unrestricted (Note 13) (Note 11) Assets Endowments Total Note 26)<br />
Excess of revenue<br />
over expenses $ 436,459 $ - $ - $ - $ - $ 436,459 $ 4,346,828<br />
Endowment contributions 331,275 331,275 58,876<br />
Transfers:<br />
Net unrealized losses on<br />
available for sale<br />
investments (Note 11) (1,119,919) (1,119,919) (609,841)<br />
Amortization of internally<br />
funded capital assets 2,204,152 (2,204,152) - -<br />
Acquisition of internally<br />
funded capital assets (2,424,659) 2,424,659 - -<br />
Repayment of Loans (519,781) 519,781 - -<br />
From unrestricted (15,850,855) 15,850,855<br />
Costs incurred in residence<br />
repairs and maintenance 4,573,914 (4,573,914)<br />
Net book value of<br />
capital asset disposals 62,893 (62,893) - -<br />
(Decrease) increase<br />
in net assets (11,517,877) 11,276,941 (1,119,919) 677,395 331,275 (352,185) 3,795,863<br />
Net assets beginning of year 13,509,121 120,545 396,293 13,325,801 1,930,658 29,282,418 25,486,554<br />
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<br />
The accompanying notes are part of these financial statements.
24<br />
ANNUAL REPORT <strong>2008</strong>-<strong>2009</strong><br />
S tate m e nt of C ash Flows<br />
Fo r t h e ye a r e n d e d J u n e 3 0 , 2 0 0 9<br />
A s a t J u n e 3 0 , 2 0 0 9<br />
<strong>2009</strong> <strong>2008</strong><br />
Restated<br />
Cash provided by:<br />
O P E R ATi N G AC Tiviti E S<br />
Surplus of revenue over expenses $ 436,459 $ 4,346,829<br />
Non-cash transactions<br />
Amortization of capital assets 5,496,614 4,731,510<br />
Amortization of deferred capital contributions (Note 10) (3,292,462) (2,578,117)<br />
Loss (Gain) on disposal of capital assets 9,778 48,826<br />
2,650,389 6,549,048<br />
Net change in non-cash working capital 15,301,974 (748,720)<br />
Cash provided by operating activities 17,952,363 5,800,328<br />
i N VESTi N G AC Tiviti E S<br />
Acquisition of capital assets<br />
Internally and debt funded (2,424,659) (4,426,807)<br />
Externally funded (4,209,851) (6,806,455)<br />
Net purchase and unrealized gains on investments (310,047) (2,503,252)<br />
Proceeds from disposal of capital assets 53,115 62,389<br />
Cash used in investing activities (6,891,442) (13,674,125)<br />
FiNAN C i N G AC Tiviti E S<br />
Endowment contributions 331,275 58,876<br />
Proceeds from capital lease - 2,038,984<br />
Repayment of long-term debt (519,781) (442,273)<br />
Capital contributions received (Note 9) 2,133,457 9,600,534<br />
Cash provided by financing activities 1,944,951 11,256,121<br />
Increase in cash and short term investments 13,005,872 3,382,324<br />
Cash and cash equivalents at beginning of the year 19,629,308 16,246,984<br />
Cash and cash equivalents at end of the year $ 32,635,180 $ 19,629,308<br />
The accompanying notes are part of these financial statements.
ANNUAL REPORT <strong>2008</strong>-<strong>2009</strong><br />
25<br />
N otes to t h e Fi n a n cial S tate m e nts<br />
Fo r t h e ye a r e n d e d J u n e 3 0 , 2 0 0 9<br />
Note 1 Authority and Purpose<br />
Lakeland College (the “College”) operates under the authority of the Post Secondary Learning Act, Chapter P-19.5., Statutes<br />
of Alberta, 2003. The College, as an inter-provincial institution, provides educational services responsive to the needs of<br />
students in relation to the workplace, community and society. The College is exempt from the payment of income taxes under<br />
section 149 of the Income Tax Act and is a registered charity.<br />
Note 2 Summary of Significant Accounting Policies and <strong>Repor</strong>ting Practices<br />
These financial statements have been prepared in accordance with Canadian generally accepted accounting principles. In<br />
preparing the College’s financial statements, management is required to make estimates and assumptions that affect the<br />
reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial<br />
statements and reported amounts of revenues and expenses during the period. Management believes its estimates to be<br />
appropriate, however, actual results could differ from these estimates.<br />
(a) Revenue Recognition<br />
Operating grants are recognized in the period when receivable. Operating grants received for a future period are deferred<br />
until that future period and are reported as deferred contributions.<br />
Amounts received for tuition fees and contract programs and sales, rentals and services are recognized as revenue in the<br />
period the goods are delivered or the services are provided.<br />
Capital grants and capital donations are recorded as deferred capital contributions until the amounts are invested in<br />
capital assets. Amounts invested representing funded capital assets are transferred to unamortized deferred capital<br />
contributions. Unamortized deferred capital contributions are recognized as revenue in the periods in which the related<br />
amortization expense for the funded capital assets is recorded.<br />
The College recognizes dividend and interest revenue as earned, and investment gains and losses when realized.<br />
Realized gains and losses represent the difference between the amounts recognized through sales of investments and<br />
their respective cost base, as well as the amounts provided for as a write-down due to impairment. Unrealized gains<br />
and losses on available-for-sale securities attributed to endowment net assets are recorded in deferred contributions.<br />
Unrealized gains and losses on available-for-sale securities attributed to other net assets are recorded in the Statement of<br />
Changes in Net Assets, and are recognized in the Statement of Operations when realized.<br />
Unrestricted cash donations are recognized as revenue when they are received. Donations of materials and services that<br />
would otherwise have been purchased are recorded at fair value when a fair value can be reasonably determined.<br />
Externally restricted non-capital contributions are deferred and are recognized as revenue in the period in which<br />
the related expenses are incurred. Externally restricted amounts can only be used for purposes designated by the<br />
contributors. Any externally restricted contributions containing stipulations that the amounts should be permanently<br />
maintained, are recorded as a direct increase to net assets.<br />
(b) Capital Assets<br />
Purchased capital assets are recorded at cost. Donated assets are recorded at their fair value when donated. Capital<br />
assets are amortized on a straight-line basis over the following estimated average useful lives:<br />
Buildings, leasehold and site improvements<br />
3 - 40 years<br />
Furniture, equipment and library<br />
10 years<br />
Vehicles, equipment, computers and telecommunication 5 years<br />
(c) Inventories<br />
Livestock inventory is recorded at net realizable value. All other inventories are valued at the lower of cost and net<br />
realizable value.
26<br />
ANNUAL REPORT <strong>2008</strong>-<strong>2009</strong><br />
(d) Financial Instruments<br />
The fair values of the College’s accounts receivable, accounts payable and accrued liabilities and accrued vacation pay<br />
are valued in accordance with the methods described below. Fair value of publicly traded securities are based on closing<br />
market prices.<br />
The College has classified its significant financial assets and financial liabilities as follows:<br />
- Cash and investments are classified as available-for-sale, and are measured at fair value with subsequent gains or<br />
losses included in net assets or deferred contributions until the asset is removed from the Statement of Financial<br />
position. Details of this are outlined in Note 11.<br />
- Accounts receivable classified as other loans and receivables. After initial fair value measurement, they are measured<br />
at amortized cost.<br />
- Accounts payable, accrued liabilities and employee benefits liabilities are classified as other financial liabilities. After<br />
their initial fair value measurement, they are measured at amortized cost using the effective interest rate method.<br />
Financial instruments of the College are exposed to credit risk, interest rate risk, foreign exchange risk and market risks.<br />
The College’s accounts receivable are due from a diverse group of customers and are subject to normal credit risk. The<br />
interest rate risk is the risk to the College’s earnings that arises from the fluctuations in interest rates and the degree<br />
of volatility of these rates. The foreign exchange risk is the risk of the rising costs related to purchase transactions in<br />
United States currency and the reduction of amounts collected for receivables which are due in United States currency.<br />
The market risk is the risk to the College’s earnings that arises from the fluctuation and the degree of volatility in the<br />
market value of long-term investments. Each of these risks is limited through the College’s collection procedures,<br />
investment guidelines and other internal policies, guidelines and procedures.<br />
Fixed income and marketable equity securities are classified as available-for-sale (investments held for long-term capital<br />
appreciation and generation of income), and are measured at fair value at each reporting date. The College utilizes<br />
settlement-date accounting for all purchases and sales of financial assets in its investment portfolio. Fixed income<br />
securities are initially recognized at acquisition cost (purchase price plus transaction costs), which reflects any premium<br />
or discount at date of purchase, and carried at fair value. Marketable equity securities are also initially recognized at<br />
acquisition cost, and subsequently measured at fair value.<br />
Financial assets classified as available-for-sale are measured at fair value with changes in fair values recognized in the<br />
Statement of Changes in Net Assets or deferred contributions as appropriate until realized, at which time the cumulative<br />
changes in fair value are recognized in the Statement of Operations.<br />
The College does not use hedge accounting and accordingly, is not impacted by the requirement of Section 3865<br />
Hedges. As permitted for Not-for-Profit Organizations, Lakeland has elected not to apply the standards for permitted for<br />
Not-for-Profit Organizations, Lakeland has elected not to apply the standards for embedded non-financial contracts and<br />
has elected to continue using section 3861: Disclosure and Presentation.<br />
(e) Employee Future Benefits<br />
The College participates in the Province of Alberta’s Local Authorities and the Management Employees Pension Plans.<br />
These pension plans are multi-employer defined benefit plans that provide pensions for the College’s participating<br />
employees, based on years of service and earnings.<br />
Pension costs included in these financial statements comprise the amount of employer contributions required for its<br />
employees during the year, based on rates which are expected to provide for benefits payable under the Local Authority<br />
and the Management Employees Pension Plans. The College’s portion of the pension plans’ deficit or surplus is not<br />
recorded by the College.<br />
(f) Pledges Receivable<br />
Pledges receivable are not recorded as assets in these financial statements.
ANNUAL REPORT <strong>2008</strong>-<strong>2009</strong><br />
27<br />
(g) Capital Disclosures<br />
Effective July 1, <strong>2008</strong>, the College adopted CICA 1535: Capital Disclosures. The new standard requires an entity to<br />
disclose information that enables users of its financial statements to evaluate the entity’s objectives, policies and<br />
processes for managing capital. The new note disclosure is as follows:<br />
The College defines its capital as the amounts included in deferred capital contributions (Note 9) and unrestricted net<br />
assets. A significant portion of the College’s capital is externally restricted. The College’s unrestricted capital is funded<br />
primarily by Alberta Advanced Education and Technology. The College has investment policies (Note 5), spending<br />
policies and cash management procedures to ensure the College can meet its capital obligations.<br />
Under the Post-Secondary Learning Act, the College must receive ministerial approval for a deficit budget, borrowing<br />
and for the sale of land and buildings.<br />
Note 3 Inventories<br />
Inventories consist of:<br />
<strong>2009</strong> <strong>2008</strong><br />
Livestock $ 379,415 $ 339,125<br />
Bookstore 398,068 323,948<br />
Firefighting agents 85,422 125,725<br />
Fuels 60,805 78,294<br />
Farm 146,064 81,632<br />
Quip shop 2,417 3,232<br />
$ 1,072,191 $ 951,956<br />
Note 4 Cash and Cash Equivalents<br />
<strong>2009</strong> <strong>2008</strong><br />
Unrealized<br />
Unrealized<br />
Cost Gain (Loss) Market Cost Gain (Loss) Market<br />
Bank balance $ 5,758,093 $ - $ 5,758,093 $ 5,126,724 $ - $ 5,126,724<br />
Money market investments 24,239,369 - 24,239,369 11,905,496 - 11,905,496<br />
Endowment investment fund 2,518,490 119,228 2,637,718 2,045,406 551,682 2,597,088<br />
32,515,952 119,228 32,635,180 19,077,626 551,682 19,629,308<br />
Less non-current portion (4,677,718) (4,757,088)<br />
$27,957,462 $ 14,872,220<br />
Non-current cash and investments are comprised of:<br />
<strong>2009</strong> <strong>2008</strong><br />
Endowments $ 2,637,718 $ 2,597,088<br />
Long Term Debt 2,040,000 2,160,000<br />
$ 4,677,718 $ 4,757,088<br />
Included in cash and cash equivalents, the College is holding $6 million for capital projects and $3 million in apprenticeship<br />
access funds.
28<br />
ANNUAL REPORT <strong>2008</strong>-<strong>2009</strong><br />
Note 5 Investments<br />
<strong>2009</strong> <strong>2008</strong><br />
Unrealized<br />
Unrealized<br />
Cost Gain (Loss) Market Cost Gain (Loss) Market<br />
Bonds $ 5,489,187 $ 97,081 $ 5,586,268 $ 5,405,625 $ (69,141) $ 5,336,484<br />
Mutual Funds 5,963,293 (1,216,999) 4,746,294 5,340,516 465,434 5,805,950<br />
$ 11,452,481 $ (1,119,919) $ 10,332,562 $ 10,746,141 $ 396,293 $ 11,142,434<br />
The College’s investment strategy is to meet expenditure requirements within one year, investing such funds in liquid<br />
investments. The balance of funds are invested for a longer term with a mix of maturities between 1-10 years. Pooled Bond<br />
Funds have an average effective yield of 3.67% (in <strong>2008</strong>, 4.68%) and weighted average term to maturity of more than one year.<br />
Note 6 Capital Assets<br />
Capital assets consist of:<br />
<strong>2009</strong> <strong>2008</strong><br />
Accumulated Net Book Net Book<br />
Cost Amortization Value Value<br />
Land $ 1,612,439 $ - $ 1,612,439 $ 1,612,439<br />
Buildings 90,766,937 (46,519,962) 44,246,975 45,035,522<br />
Site improvements 18,262,918 (11,047,396) 7,215,522 7,674,691<br />
Furniture & equipment 15,577,026 (8,988,541) 6,588,485 4,750,836<br />
Computers, software &<br />
telecommunications equipment 13,777,376 (9,135,112) 4,642,264 4,400,262<br />
Vehicles 2,485,796 (1,911,858) 573,938 636,104<br />
Leasehold improvements - - - -<br />
Milk quotas 546,951 - 546,951 267,641<br />
Library 3,537,831 (3,198,067) 339,764 313,839<br />
$146,567,274 $ (80,800,936) $ 65,766,338 $ 64,691,334<br />
The Province of Alberta has been granted an option to purchase for $1 the whole or any part of the land, buildings and site<br />
improvements that it transferred to the College in 1982.<br />
Computers and telecommunications equipment include $645,813 (<strong>2008</strong> - $117,614) to the wireless/network separation project,<br />
the common application system project and the accounts receivable PeopleSoft project.<br />
Amortization of these items is deferred until the completion of the projects.<br />
Note 7 Unearned Revenue<br />
Unearned revenue consists of:<br />
<strong>2009</strong> <strong>2008</strong><br />
Tuition and residence fees $ 1,619,298 $ 1,480,565<br />
Contract advances 319,378 193,847<br />
Extension and community<br />
education course fees 52,812 58,897<br />
Projects & programs 285,888 297,228<br />
$ 2,277,376 $ 2,030,537
ANNUAL REPORT <strong>2008</strong>-<strong>2009</strong><br />
29<br />
Note 8 Deferred Contributions<br />
Changes in deferred contributions are as follows:<br />
<strong>2009</strong> <strong>2008</strong><br />
Restricted donations & contributions received during the year:<br />
Conditional grants $ 20,990,173 $ 2,412,290<br />
Donations in kind 9,265 57,621<br />
Restricted donations 34,218 63,985<br />
Scholarships and bursaries 348,229 325,605<br />
Interest on grants (Note 17) 338,425 -<br />
Interest on endowments (Note 17) 147,759 120,066<br />
21,868,069 2,979,567<br />
Transferred to revenue:<br />
Conditional grants (Note 15) $ (7,440,752) $ (5,326,139)<br />
Interest earned on grants (8,630) -<br />
Restricted donations (27,314) (3,350)<br />
Donations in kind (9,265) (16,360)<br />
Scholarships and bursaries (361,143) (360,404)<br />
(7,847,104) (5,706,253)<br />
Transferred to endowments: Endowment scholarships (309,151) -<br />
Increase (decrease) during the year relating to operating funding 13,711,814 (2,726,686)<br />
Balance at beginning of the year relating to operating funding 1,126,078 3,852,764<br />
Balance at end of the year relating to operating funding 14,837,892 1,126,078<br />
Deferred contributions relating to unrealized gain on investments (Note 11)<br />
Unrealized gain on investments, beginning of year 551,682 644,700<br />
Change in unrealized gain on investments relating to deferred contribution (432,454) (93,018)<br />
Unrealized gain on investments, end of year 119,228 551,682<br />
Total deferred contributions, balance at end of the year $ 14,957,120 $ 1,677,760<br />
The balance consists of funds restricted for:<br />
Conditional programs $ 14,334,768 $ 757,799<br />
Scholarships and bursaries 444,303 330,710<br />
College development 58,821 37,569<br />
Unrealized gain on investments allocated to deferred contributions 119,228 551,682<br />
$ 14,957,120 $ 1,677,760
30<br />
ANNUAL REPORT <strong>2008</strong>-<strong>2009</strong><br />
Note 9 Deferred Capital Contributions<br />
Changes in deferred capital contributions are as follows:<br />
<strong>2009</strong> <strong>2008</strong><br />
Contributions received during the year $ 1,913,037 $ 9,227,829<br />
Interest allocated to deferred capital contributions 220,420 372,705<br />
Total contributions received in the year 2,133,457 9,600,534<br />
Transferred to unamortized deferred capital contributions (Note 10) (4,209,851) (6,806,455)<br />
Balance at beginning of the year 8,476,424 5,682,345<br />
Balance at end of the year $ 6,400,030 $ 8,476,424<br />
Note 10 Unamortized Deferred Capital Contributions<br />
<strong>2009</strong> <strong>2008</strong><br />
Transferred to revenue $ (3,292,462) $ (2,578,117)<br />
Transferred from deferred capital<br />
contributions (Note 9) 4,209,851 6,806,455<br />
917,389 4,228,338<br />
Balance at the beginning of the year 47,368,820 43,140,482<br />
Balance at the end of the year $ 48,286,209 $ 47,368,820<br />
Note 11 Net Unrealized Gains on Available-for-Sale Investments<br />
<strong>2009</strong> <strong>2008</strong><br />
Net unrealized losses on available-for-sale investments arising during the year $ (1,629,934) $ (695,762)<br />
Net investment losses realized on available-for-sale investments during the<br />
year and reported in the statement of operations 77,561 (7,097)<br />
Change in net unrealized gains on available-for-sale investments (1,552,373) (702,859)<br />
Net unrealized gains on available-for-sale investments, beginning of year $ 947,975 $ 1,650,834<br />
Net unrealized gains on available-for-sale investments, end of year $ (604,398) $ 947,975<br />
<strong>2009</strong> <strong>2008</strong><br />
Endowment net<br />
assets, recorded in Other<br />
deferred contributions Net<br />
(Note 8) Assets Total Total<br />
Balance, beginning of the year<br />
(Notes 2(b) and 3(b)) $ 551,682 $ 396,293 $ 947,975 $ 1,650,834<br />
Decrease during the year (432,454) (1,119,919) (1,552,373) (702,859)<br />
Balance, end of the year 119,228 (723,626) (604,398) 947,975
ANNUAL REPORT <strong>2008</strong>-<strong>2009</strong><br />
31<br />
Note 12 Long-Term Liabilities<br />
<strong>2009</strong> <strong>2008</strong><br />
(a) Long Term Debt $ 2,160,000 $ 2,280,000<br />
(b) Capital Lease 1,316,932 1,716,712<br />
Total Long Term Liabilities $ 3,476,932 $ 3,996,712<br />
Current Portion (607,462) (607,462)<br />
Long Term Portion $ 2,869,470 $ 3,389,250<br />
a) Long-term Debt: <strong>2009</strong> <strong>2008</strong><br />
Alberta capital financing authority (ACFA) $ 2,160,000 $ 2,280,000<br />
Less: current portion (120,000) (120,000)<br />
$ 2,040,000 $ 2,160,000<br />
The ACFA loan is a 25 year debenture secured by residences with value of $2,956,794.<br />
The debenture incurs interest at 6.5% per annum.<br />
AFCA Loan<br />
<strong>2009</strong>-10 $ 120,000<br />
2010-11 120,000<br />
2011-12 120,000<br />
2012-13 120,000<br />
2013-14 and subsequent 1,680,000<br />
$ 2,160,000<br />
(b) Capital Lease:<br />
<strong>2009</strong> <strong>2008</strong><br />
IBM capital lease 1,316,932 1,669,202<br />
Less: current portion (487,462) (487,462)<br />
Non-current capital lease obligation 829,470 1,181,740<br />
The minimum annual payments under the capital lease obligation are as follows:<br />
IBM Lease<br />
<strong>2009</strong>-10 487,462<br />
2010-11 487,462<br />
2011-12 487,462<br />
Total minimum lease payments $ 1,462,386<br />
Less: amount representing interest (145,454)<br />
Capital lease obligation $ 1,316,932<br />
The IBM lease is for goods and services relating to the restructuring of the College network and enabling the wireless internet<br />
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 (<strong>2008</strong><br />
-$74,963) has been charged to the expense.
32<br />
ANNUAL REPORT <strong>2008</strong>-<strong>2009</strong><br />
Note 13 Net Assets Internally Restricted by the Board<br />
Net assets internally restricted by the Board represent amounts set aside by the College’s Board of Governors to be used for the<br />
following designated purposes. These amounts are not available for other purposes without the approval of the Board.<br />
<strong>2009</strong> <strong>2008</strong><br />
Major maintenance and equipment $ 4,591,488 $ 68,230<br />
Agriculture initiatives 4,000,000 -<br />
New residence construction 2,700,000 -<br />
Delivery initiatives 105,998 52,315<br />
$ 11,397,486 $ 120,545<br />
Note 14 Endowments<br />
External endowments consist of funds restricted for:<br />
<strong>2009</strong> <strong>2008</strong><br />
College development $ 420,089 $ 420,089<br />
Scholarships and bursaries 1,841,844 1,510,569<br />
Funds are required to be maintained in perpetuity.<br />
$ 2,261,933 $ 1,930,658<br />
Note 15 Grants<br />
Grant revenue consists of:<br />
<strong>2009</strong> <strong>2008</strong><br />
Budget Actual Actual<br />
Advanced Education<br />
General Operating $ 27,726,485 $ 28,066,300 $ 25,939,714<br />
Conditional (Note 8) 2,566,436 7,440,752 5,326,139<br />
Other Government Grants 8,000 - -<br />
Province of Saskatchewan<br />
General Operating 1,065,924 1,314,699 1,184,050<br />
$ 31,366,845 $ 36,821,751 $ 32,499,903
ANNUAL REPORT <strong>2008</strong>-<strong>2009</strong><br />
33<br />
Note 16 Sales, Rentals and Services<br />
Revenue and direct expense for sales, rentals and services consists of:<br />
<strong>2009</strong> <strong>2008</strong><br />
Budget Actual Actual<br />
Revenue:<br />
Residences $ 2,446,660 $ 2,738,167 $ 2,646,975<br />
Bookstores 920,041 1,203,473 1,124,981<br />
Cafeterias 733,622 891,965 860,181<br />
Conference Services 229,000 300,180 306,304<br />
Printing 4,500 13,623 9,658<br />
Swimming Pools 209,768 192,503 177,055<br />
Other 111,098 271,450 235,919<br />
4,654,689 5,611,361 5,361,073<br />
Direct Expenses:<br />
Residences 4,173,592 6,247,517 3,001,736<br />
Bookstores 922,522 1,190,563 1,155,190<br />
Cafeterias 791,319 893,274 893,758<br />
Conference Services 262,580 324,157 277,818<br />
Printing 2,388 50 916<br />
Swimming Pools 313,132 279,625 254,804<br />
Other 162,053 223,890 409,730<br />
6,627,586 9,159,076 5,993,952<br />
Excess of Revenue over Direct Expenses $ (1,972,897) $ (3,547,715) $ (632,879)<br />
Note 17 Investment Revenue<br />
<strong>2009</strong> <strong>2008</strong><br />
Investment income earned $ 1,551,927 $ 1,560,150<br />
Gain (loss) on sale of investments 31,796 (7,097)<br />
Investment income before transfer 1,583,723 1,553,053<br />
Less: amount transferred to deferred contributions<br />
relating to endowments (Note 8) (147,759) (120,066)<br />
Less: amount transferred to deferred contributions<br />
relating to grants (Note 8) (338,425) -<br />
Less: amount transferred to deferred capital contributions (Note 9) (220,420) (372,705)<br />
Investment Income from Unrestricted Sources $ 877,119 $ 1,060,282
34<br />
ANNUAL REPORT <strong>2008</strong>-<strong>2009</strong><br />
Note 18 Operating Expense<br />
Operating expense is summarized as follows:<br />
<strong>2009</strong> <strong>2008</strong><br />
Budget Actual Actual<br />
Instruction $ 21,183,463 $ 21,368,062 $ 21,250,076<br />
Amortization of capital assets 4,968,804 5,496,614 4,665,531<br />
Cost of sales, rental & services (Note 16) 6,627,586 9,159,076 5,993,952<br />
Facility operations and maintenance 3,890,856 9,195,129 5,255,476<br />
Academic support 4,344,985 4,248,660 3,886,839<br />
Institutional support 6,389,465 5,919,794 5,575,780<br />
Student services 3,668,313 4,059,642 3,681,693<br />
Computing services 2,027,062 2,054,069 1,933,968<br />
$ 53,100,534 $ 61,501,046 $ 52,243,315<br />
Instruction encompasses all formal education and instructional program elements. Academic support includes all activities that<br />
directly support the educational and instructional elements such as academic administration, library and audio-visual services.<br />
Institutional support includes all activities that provide institution-wide support to other programs such as the president’s office,<br />
human resources and financial services. Student services includes all activities and services for the student body.<br />
Note 19 Salaries and Benefits<br />
The following information is prepared in accordance with Treasury Board Directive No. 12/98 as amended in 2007 and only<br />
includes salary and benefit information for the Board and Executive Management:<br />
<strong>2009</strong> <strong>2008</strong><br />
Other<br />
Base Salary Other Cash Non-Cash<br />
(1) Benefits (2) Benefits (3) Total Total<br />
Chairman of the Board $ - $ 18,234 $ 816 $ 19,050 $ 15,160<br />
Other Board - 36,716 540 37,256 32,455<br />
- 54,950 1,356 56,306 47,615<br />
President 210,000 18,313 21,750 250,063 223,998<br />
VP Academics 152,000 21,697 173,697 150,333<br />
VP Student and College Services 150,000 21,699 171,699 150,182<br />
Director, Human Resources 116,421 19,792 136,213 126,635<br />
Director, Fund Development 96,012 17,293 113,305 101,382<br />
724,433 18,313 102,231 844,977 752,530<br />
Salaries & Benefit Expense in year $ 724,433 $ 73,263 $ 103,587 $ 901,283 $ 800,145<br />
(1) Base salary includes pensionable base pay.<br />
(2) Other cash benefits includes honoraria.<br />
(3) Employer’s share of all employee benefits and contributions or payments made on behalf of employees including pension,<br />
health care, dental coverage, vision coverage, out of country medical benefits, group life insurance, accidental disability<br />
and dismemberment insurance, long and short term disability plan, professional memberships and tuition. Other non-cash<br />
benefits also include the Employer’s share of the cost of additional benefits including sabbaticals or other special leave with<br />
pay, financial planning services, retirement planning services, concessionary loans, travel allowances, car allowances, and<br />
club memberships.
ANNUAL REPORT <strong>2008</strong>-<strong>2009</strong><br />
35<br />
Note 20 Budget<br />
The operating and capital budgets were approved by the Board of Governors on March 26, <strong>2008</strong>. The operating budget does not<br />
include revenues and expenses for ad hoc programs negotiated subsequent to budget approval. The approved capital budget<br />
provided $2,653,842 (actual $2,482,428) for internally funded acquisitions of capital assets.<br />
Note 21 Commitments<br />
The College has the following commitments requiring future minimum annual payments for years ending June 30 as follows:<br />
<strong>2009</strong>-10 240,546<br />
2010-11 132,152<br />
2011-12 83,825<br />
2012-13 83,825<br />
2013-14 53,945<br />
$ 594,294<br />
Note 22 Related Party Transactions<br />
Province of Alberta<br />
The College is a Provincial Corporation as all the members of the Board of Governors are appointed by a combination of orders<br />
by the Lieutenant Governor in Council and the Minister of Advanced Education. Grant revenue transactions between the College<br />
and the Province are disclosed in the College financial statements as follows:<br />
<strong>2009</strong><br />
Deferred<br />
Deferred Capital Grant<br />
Contributions Contributions Revenue Total<br />
Alberta Advanced Education<br />
Regular operating $ - $ - $ 28,066,300 $ 28,066,300<br />
Enrollment planning 3,483,931 133,126 3,290,985 6,908,042<br />
Conditional 676,886 933,013 406,544 2,016,443<br />
Alberta Infrastructure<br />
Infrastructure maintenance 16,656,000 - 3,743,223 20,399,223<br />
Total $ 20,816,817 $ 1,066,139 $ 35,507,052 $ 57,390,008<br />
<strong>2008</strong><br />
Deferred<br />
Deferred Capital Grant<br />
Contributions Contributions Revenue Total<br />
Alberta Advanced Education<br />
Regular operating $ - $ - $ 25,939,714 $ 25,939,714<br />
Enrollment planning 383,698 23,126 3,530,576 3,937,400<br />
Conditional 271,022 1,801,615 237,363 2,310,000<br />
Alberta Infrastructure<br />
Infrastructure maintenance 19,345 5,355,105 1,558,200 6,932,649<br />
Total $ 674,065 $ 7,179,846 $ 31,265,853 $ 39,119,764
36<br />
ANNUAL REPORT <strong>2008</strong>-<strong>2009</strong><br />
The College has accounts payable to the Province of Alberta of $50,600 (<strong>2008</strong> - $0) and long-term debt obligations with Alberta<br />
Capital Finance Authority as disclosed in Note 12.<br />
The College provided courses to other provincial colleges and participated in the development, sale and offering of certain<br />
courses with other public colleges. The revenues and expenses incurred for these have been included in the statement of<br />
operations but have not been separately quantified. These transactions were entered into on the same business terms as with<br />
non-related parties and are recorded at fair market value.<br />
Note 23 Pension Liability and Expense<br />
In the year ending June 30, <strong>2009</strong>, the College participated the Local Authorities Pension Plan (LAPP) in the amount of<br />
$1,858,396 (<strong>2008</strong>-$1,611,372). As at December 31, <strong>2008</strong>, the LAPP reported a deficiency of $4,413,971,000 (2007 -<br />
$1,183,334,000). The January 1, <strong>2009</strong> employers’ contribution rate was increased by 1.57%. Pension expenses are recorded in<br />
the Salaries and Benefits section of the Statement of Operations.<br />
Note 24 Contingent Liabilities<br />
There is one unresolved claim against the College. While the outcome of this claim cannot be predicted at this time, it is the<br />
opinion of management that the resolution of this claim will not have a material effect on the financial statements of the College<br />
and it has not been reflected in these statements. Additional costs of settling this claim, if any, will be charged to operations<br />
upon settlement, which in management’s opinion will not have a material effect on the financial position of the College.<br />
Note 25 Comparative Figures<br />
The <strong>2008</strong> figures have been reclassified where necessary to conform to <strong>2009</strong> presentation.<br />
Note 26 Prior Period Adjustment<br />
The <strong>2008</strong> figures have been adjusted for an understatement of the capital lease liability. The following adjustment was made to<br />
properly reflect the capital lease liability and amortization.<br />
<strong>2008</strong> <strong>2008</strong><br />
Balance as<br />
Balance as<br />
previously stated Change restated<br />
Computers, software &<br />
telecommunications equipment 1,643,852 49,352 1,693,204<br />
Accounts Payable - 76,330 76,330<br />
Capital Lease Liability 1,669,201 47,511 1,716,712<br />
Amortization Expense 279,802 65,978 345,780<br />
Interest Expense 66,453 8,510 74,963<br />
Note 27 Approval of Financial Statements<br />
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.<br />
O u r vISION to ac h i e v e e d u c at ional excellence in a people-centred environment.<br />
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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