LAKELAND COLLEGE Annual Repor t 2008 - 2009

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ANNUAL REPORT 2008-2009
ManagemENT’s DisCUssiON ANd ANALysis
Overview
Management’s Discussion and Analysis should be read in conjunction with Lakeland’s annual audited financial statements and
accompanying notes. These statements are reviewed and approved by the Lakeland College Board Audit Committee then forwarded to
the Lakeland College Board of Governors for approval.
In the 2008-2012 business plan, Lakeland budgeted an $800,000 deficit for the 2008-2009 year but the result was an excess of
$437,000 of revenue over expenses. This $1.2 million variance is attributed to additional grants ($5.5 million), tuition ($800,000) and
sales, rentals and services ($1 million) revenue exceeding budgeted amounts. These additional revenues were offset by supplies and
services expenses of $7.1 million relating to grant spending and renovations to the Vermilion campus residences.
In comparison to the 2007-2008 year, total revenue for 2008-2009 increased by $5.3 million while expenditures increased by $9.3
million inclusive of the $4.4 million of renovation expenses related to the Vermilion campus residences. Revenue increase was mainly
attributed to grants ($4.4 million), tuition ($400,000) and amortization of deferred capital contributions ($700,000) which increased
as a result of the grant and donor funding spent on the Bill Kondro Wing expansion at the Lloydminster campus. The expense line
increases relate to salaries and benefits ($2.5 million), supplies and services (including the Vermilion campus residence renovations)
of $5.8 million and amortization of capital assets which increased as a result of the September 2008 opening of the Bill Kondro Wing.
Financial Information
Revenues
Total revenues increased 8.8 per cent from $57 million in 2007-2008 to $62 million in 2008-2009. The following table details the
revenue sources of Lakeland as presented in the audited financial statements.
Revenue By Source
2007 2008 2009
Grants $ 28,105,537 $ 32,449,903 $ 36,821,751
Tuition and related fees 10,892,314 10,304,775 10,746,780
Sales, rentals and services 4,989,706 5,361,073 5,611,361
Amortization of deferred capital contributions 2,486,207 2,578,117 3,292,462
Contract revenue 4,917,143 2,676,791 2,205,562
Investment income 807,262 1,060,282 877,119
Donations 289,169 241,548 186,464
Other 1,868,102 1,917,655 2,196,005
Total Revenue $ 54,355,440 $ 56,590,144 $ 61,937,504
Government grants
Grant revenue represented about 59 per cent of Lakeland’s total revenue in 2008-2009, an increase of $4.4 million or 13 per cent
from the previous year. Grants received from Advanced Education and Technology include base operations grants of $28.1 million
(2007-2008 – $26 million), conditional grants of $4.2 million (2007-2008 – $1.8 million), as well as enrolment planning funding of
$3.3 million (2007-2008 – $3.5 million). Conditional funding received from the Government of Saskatchewan was approximately $1.3
million which was up slightly from the $1.2 million received in 2007-2008.
The general operating grant increase of $2.1 million is made up of the six per cent budgeted increase of $1.6 million, a $300,000
facility operations grant for the Bill Kondro Wing, and $200,000 tuition fee grant increase.