Standing Strong - Together with Ontario's Skilled Trades Workforce

STANDING STRONG TOGETHER WITH ONTARIO’S SKILLED TRADES WORKFORCE ONTARIO COLLEGE OF TRADES • 2016 Annual Report

CONTENTS

OUR STORY 3

MESSAGES FROM OUR CHAIR & REGISTRAR/CEO 4

OUR MEMBERS 6

PROMOTING & ENGAGING 9

OUT & ABOUT 2016 12

IMPROVING 14

PROTECTING 19

FINANCIAL REVIEW 22

GOVERNING 31

TRADES IN ONTARIO 33

COVER Karola Dirnberger, hairstylist Tom Phuong, chef Benjamin Lundgren, boilermaker apprentice

OUR MEMBERS Stock Transportation Ltd mechanics

IMPROVING Brandi Ferenc, refrigeration & air conditioning systems mechanic

PROTECTING Vincent Morizio, Lanterra Construction safety coordinator Courtney Hewitt, enforcement officer Donald Clark, Lanterra Construction health & safety manager

over

6,000 TEA APPLICANTS

2016

BY THE NUMBERS

13,975 FIELD VISITS

409

TICKETS ISSUED

68

PROSECUTIONS

OU R S T ORY The Ontario College of Trades (College) is an industry-driven organization that protects the public interest by regulating and promoting the skilled trades. The first of its kind in North America, the College puts decision-making back in the hands of skilled tradespeople. The College promotes the skilled trades as a career of first choice for young people, and works with parents, educators and industry leaders to find solutions to matters that affect the skilled trades system in Ontario.

MESSAGE FROM THE CHAIR T

his year has been a productive one for the Ontario College of Trades (College) as we began implementing some of the recommendations put forward by Mr. Tony Dean’s report, Supporting a Strong and Sustainable Ontario College of Trades.

Earlier in the year, the Ontario Government transferred the regulatory and administrative oversight of the College from the Ministry of Advanced Education and Skills Development (formerly the Ministry of Training, Colleges and Universities) to the Ministry of Labour, allowing them to directly apply expertise to complex labour matters, including any role the Ontario Labour Relations Board may play with regards to enforcement activities. The College continues to work in partnership with the Ministry of Advanced Education and Skills Development and organizations like Skills Ontario to promote skilled trades and the apprenticeship system.

On December 8, 2016, the Ontario Legislature passed Bill 70, which includes amendments to the Ontario College of Trades

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and Apprenticeship Act, 2009 based on Mr. Dean’s report. In 2017, the College will continue to deliver on its mandate as well as implement the legislative and regulatory changes outlined in Bill 70.

The College’s enforcement team worked diligently to bring uncertified workers into compliance, ensuring the public is protected from those who do not hold the proper qualifications. This year, the enforcement team began conducting industry blitzes.

Focusing on residential and commercial construction sites as well as on workers who repair school buses, inspectors visited over 500 locations across Ontario, issuing provincial offence notices and educating tradespeople about the Ontario College of Trades and Apprenticeship Act, 2009.

While the College’s enforcement officers ensure trades professionals are held to a high industry standard, members of our governance structure are the voice of trades professionals across Ontario. They advise on emerging trends and oversee the updating and development of apprenticeship training

standards, curriculum standards and exams.

I want to acknowledge the consistent efforts of our trade and divisional boards—by engaging the public, stakeholders and our members, they continue to create meaningful changes that will have a lasting impact on the skilled trades industry.

Finally, I’d like to say thank you to my fellow members on the Board of Governors.

Together with the CEO and Registrar, David Tsubouchi, and the College’s staff, they continue to raise the profile of skilled trades careers and achieve the goals set forth in serving the trades workforce in Ontario. I look forward to another exciting and successful year in 2017.

Sincerely,

Pat Blackwood Chair, Board of Governors

STANDING STRONG • Together with Ontario’s Skilled Trades Workforce

MESSAGE FROM THE REGISTRAR/CEO 2

016 was a year of wins for the College and its members. The College won its first Canada’s Best Diversity Employers award for exceptional workplace diversity, inclusiveness programs and projects to advance diversity within the trades industry. To best serve our members, we feel it’s important that diversity among College staff is reflective of the diversity of our members.

The College currently has 148 members who self-identify as First Nations or Métis, and we aim to grow those numbers in the coming years. To encourage more women to consider skilled trades careers, the College created and launched a Women in Trades campaign, which included a video highlighting women in the skilled trades, along with various print publications.

Another victory for the College and its members is our member publication, Trades Today, which won its first Gold Quill Award from the International Association of Business Communicators. The Gold Quill Awards program recognizes business

communications excellence globally, and is acknowledged as one of the most prestigious awards programs in the industry.

Through various marketing campaigns, input from members on content, and partnerships with industry stakeholders like DEWALT Black & Decker, we have been able to reach an even larger audience and continue to promote skilled trades in Ontario.

This year we went behind-the-scenes to showcase the tradespeople who help make films and television shows come to life. The Make Your Mark campaign was created to inspire youth and their parents to consider the many viable and exciting career opportunities that exist for young people in one of Ontario’s 156 skilled trades.

Along with encouraging youth to explore the skilled trades, the College also ensures those who have the proper skills and experience are fairly assessed to become eligible to work legally in Ontario.

Now in its third year of administration, the College’s Trade Equivalency Assessment

(TEA) team processed over 6,000 applications this year, of which 70 per cent were from Ontario. The College’s newly-designed TEA Guide was recognized by the Office of the Fairness Commissioner as an exemplary tool in communicating documentation requirements for refugees.

I would like to acknowledge and thank our members for their feedback and engagement on issues that matter to their sector and trade. I also want to acknowledge the behind-the-scenes work being done at the College, and extend my gratitude to the Board of Governors, its chair, Pat Blackwood, and the College’s management and staff for their continuous hard work.

Sincerely,

David Tsubouchi Registrar & CEO

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OUR MEMBERS 234,605 TOTAL COLLEGE MEMBERS

178,294

Journeypersons

53,134 Apprentices

2,754

Journeyperson Candidates

278

Employers/Sponsors

145

Tradespersons

7

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P R OMOT I N G & ENGAGING The promotion of trades as a viable career has to be supported everywhere possible. That message has to get to students and their parents, teachers and guidance counsellors.

David Cameron Welder and learning & development team leader at ArcelorMittal Dofasco (Trades Today spring 2016)

Educating the public about skilled trades opportunities is huge, starting with high schools.

Tracy Jones Fanshawe College’s institutional cook program coordinator (Trades Today winter 2016)

collegeoftrades.ca 601,595 earnwhileyoulearn.ca 41,141

UNIQUE SITE VISITS

The reality of the skilled trades as a viable career choice is starting to become recognized among Ontario parents. A 2016 Ipsos Reid poll commissioned by the College showed that of the 800 Ontario parents surveyed, 95 per cent said they would be supportive of their child’s choice to pursue a career in the trades. In fact, when ranked against other career paths, working in the skilled trades rated favourably among Ontario parents, placing it slightly ahead of both the financial and service industries.

hirewithconfidence.ca 10,383 collegeoftrades.ca/ public-register-search 1,374,646

74,579 CHANNEL VIEWS 28,675 IMPRESSIONS 8,873 ENGAGEMENTS

E

ngaging with Ontarians is a vital part of increasing public awareness and promoting the skilled trades. That’s why the College has reached out to youth and underrepresented groups through marketing campaigns, outreach presentations and our quarterly magazine to show Ontarians how to turn their passion into a fulfilling skilled trades career.

SOCIAL STATS

To share this message with youth, the College went behind-the-scenes to show that making TV and movie magic happen requires more than just glamourous actors and directors. The Make Your Mark campaign and video follows a young girl as her interest evolves into an exciting and rewarding behind-the-scenes skilled trades career where she “makes her mark” as a carpenter in the film and TV industry. The video gained over 47,000 views on YouTube in 2016 alone.

The Make Your Mark video went on tour while visiting Ontarians in-person at the 148

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stakeholder engagement events across the province. These events included the Canadian Mechanical & Plumbing Expo, Allied Beauty Association Show, Future Building 2016, Student Life Expo, Skills Ontario Competition, Ontario Cooperative Education Association Conference, Ontario School Counsellors’ Association Conference, and the Honda Indy.

Together with promoting the skilled trades to Ontarians, the College works to build professionalism within the trades and create respect for skilled trades professionals.

PROMOTING & ENGAGING • 2016 Annual Report

Featuring stories on College members, industry trends, certification and training changes, our quarterly magazine Trades Today is now sent to over 130,000 online subscribers and 5,500 print subscribers.

In 2016, Trades Today was recognized by the International Association of Business Communicators Gold Quill Awards program. This program recognizes business communication excellence globally, and is acknowledged as one of the most prestigious awards programs in the industry. With input from members and partnerships with industry stakeholders including DEWALT Black & Decker, George Brown College and the Rogers Centre, the College was able to create dynamic stories for Trades Today and gain behind-the-scenes access

at popular venues to illustrate the important contributions of skilled trades professionals in making major events a success.

With the excitement generated from these campaigns and stories, the College needed a platform to help connect aspiring apprentices with employers looking to hire. To help fill this gap, the College developed an online job board exclusively for skilled trades. HireWithConfidence.ca helps people search, apply and hire for skilled trades jobs and apprenticeships. Since its launch in March 2016, the site has had more than 10,000 users. Our goal is to make HireWithConfidence.ca Ontario’s leading online employment resource for both employers looking to hire and job seekers in the skilled trades.

Every day is different. Everything you do is really creative.”

Karola Dirnberger Hairstylist for film & TV (Trades Today summer 2016)

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OU T & A B O UT 20 1 6

IMPROVING The work that is being done in Ontario is being closely watched across Canada.

Caroline Blais Recruiting manager at Kriska Transportation and chair of the College’s tractor-trailer commercial driver trade board (Trades Today winter 2016)

15

It’s so much more than a curriculum document, in the end. We’ve built bridges and relationships.

It’s going to benefit all stakeholders involved.

Jennifer Sabatini Early childhood education coordinator at Seneca College (Trades Today fall 2016)

T

he College strives to update and further develop skilled trades standards and curriculum by utilizing the expertise of Ontario’s tradespeople, journeypersons and trades instructors.

In 2016, the National Occupational Analysis was updated through the newly designated Red Seal Occupational Standard (RSOS), which continues to harmonize the provincial and territorial processes and requirements for certifications and standards in the skilled trades.

Through the combined efforts of RSOS, subject matter experts and the College’s program development specialists, the RSOS updated and implemented seven new training standards, along with two new curriculum standards in the construction electrician and steamfitter/pipefitter trades.

This is just the beginning of standards and curriculum updates to be made in all 52 designated Red Seal trades.

New features of the RSOS include descriptions of performance, evidence of attainment, along with setting specific learning objectives and learning outcomes. These changes are a step towards harmonizing apprenticeship training across Canada and will continue to help apprenticeship training providers in developing programs that meet industry needs.

The first ever Interprovincial Red Seal exams for the heavy equipment operator trades were made available in the summer of 2016. Prior to the release of the exams, those who were approved through the College’s Trade Equivalency Assessment (TEA) process could apply to become a member of the College’s Journeypersons Class and be issued a provincial Certificate of Qualification.

Individuals who were applying for TEA in multiple heavy equipment trades were eligible for reduced fees. As a result of this discount initiative, the College assessed in excess of 500 heavy equipment operator applications resulting in 213 approved qualifications.

16

IMPROVING • 2016 Annual Report

Through the College’s TEA process, tradespeople throughout Ontario, including those across Canada and outside of the country, are being recognized for their skills and prior experience in the skilled trades.

TEA evaluates the individual’s skills, as well as any prior work experience, regardless of what province or country they were obtained, through a fair, straight forward system and aids candidates into gaining access into Ontario’s skilled trades industry.

In an effort to motivate more young women to consider a skilled trade, the College launched the informative video, Women in the Trades.

Highlighting successful tradespeople like electrician Kathy Choquette and refrigeration and air conditioning systems mechanic Brandi Ferenc, the video sheds light on the women who work within the skilled trades, dispelling the myth that the trades are a man’s world.

To further assist Ontario’s apprentices and tradespeople, in 2016 the Board of Governors decided to waive apprentice membership fees for military veterans and reservists of the Canadian Armed Forces

for up to five years. This not only assists our veterans and reservists in their transition from military to civilian life, but it continues to support apprenticeships in Ontario. Additionally, application fees payable (which include the fee for applications to have a Department of National Defence (QL5) credential recognized by the College, along with the TEA fee) may be waived or modified by the College.

Improving Ontario’s skilled trades by updating training and curriculum standards not only supports apprentices, it also supports the modernization of the trades and the Government of Ontario’s economic strategy.

Trained people make a huge difference to your bottom line.

Anthony Bevan Chef and coordinator for culinary programs at Georgian College in Owen Sound (Trades Today winter 2016)

In 2016, there were over 6,000 TEA applicants • 8% were from out of province • 22% were internationally trained

17

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PROTECTING We aren’t here just to enforce, we want our members to be successful.

Mary Kontopidis Enforcement officer (Trades Today summer 2016)

Tradespeople are still learning about the roles and responsibilities of our enforcement officers. We are here to help and educate as much as we can.

Bob Onyschuk Director of the compliance and enforcement division (Trades Today fall 2016)

T

he College’s work is about ensuring skills, standards and safety. Everyone in Ontario should feel confident that when they hire someone to fix their brakes or wire their home that the work is done by qualified and certified skilled trades professionals.

More and more Ontarians are becoming aware of the importance of protecting themselves from unqualified workers by verifying a tradespersons credentials using the College’s Public Register. In fact, the Public Register received over 1.3 million site visits in 2016 — an increase of over 72 per cent from the previous year.

Using the Public Register as a tool to prevent salon mishaps was the focus of a College consumer protection campaign. Beauty blogger Janine Falcon and certified hairstylists and trade board members Tanya Hill and Debbie Dunseath spoke to why it’s imperative that everyone doing hair in Ontario is a certified hairstylist. The educational video walks through how consumers can protect themselves from uncertified individuals, and avoid unnecessary health and safety risks.

In its duty to protect the public interest, panels of the Discipline Committee—an independent, adjudicative tribunal of the College—conducted their first-ever public hearings into allegations of professional misconduct or incompetence made against members of the College. Panels conduct hearings in a manner that is fair, transparent and in the best interest of the public. All findings made and penalties imposed against members to date, including their name, penalties, and place of business, are published on the College’s website—collegeoftrades.ca—and in Trades Today.

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Two hearings were completed in 2016 and several more began.

The outcome of each completed hearing, along with up-to-date information on current cases, can be found on the complaints and discipline page of the College’s website.

To ensure our members are maintaining a high industry standard, College enforcement officers are in the field every day visiting job sites and verifying credentials. In total, 13,975 field visits were conducted across the province—an average of over 38 field visits per day.

Four industry blitzes were also conducted in 2016. One focused on residential and ICI construction as well as garages and body shops in an eastern Ontario community. Another took place prior to the start of the school year and focused on truck and coach technicians servicing and repairing school buses. Collectively, over 500 locations were visited across Ontario during the blitzes.

PROTECTING • 2016 Annual Report

2016 COMPLIANCE & ENFORCEMENT ACTIVITIES

AUGUST 2016 - ONTARIO SCHOOL BUS BLITZ 244 Location Visits

MAY TO JUNE 2016 - OTTAWA RESIDENTIAL NEW CONSTRUCTION BLITZ 143 Location Visits

DECEMBER 2016 - BELLEVILLE ENFORCEMENT BLITZ 119 Location Visits JUNE 2016 - TORONTO ICI CONSTRUCTION BLITZ 21 Location Visits

13,975 field visits conducted by the College’s enforcement officers across the province • 409 Provincial Offences Notices (tickets) issued • 68 prosecutions for violators of the Ontario College of Trades and Apprenticeship Act, 2009 • 4,243 people found working in a compulsory trade without any authority or credentials to do so* * Unauthorized workers include: • • • • • •

Workers without credentials Workers whose membership has expired (including provisional) Workers whose membership has been suspended Workers with pending membership status Workers who have Registered Training Agreements with wrong employer Workers who are pre-apprentices

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FIN A N C I A L RE V I E W

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To the Board of Governors Ontario College of Trades We have audited the accompanying financial statements of the Ontario College of Trades (the ”College”), which comprise the statement of financial position as at December 31, 2016 and the statements of operations, changes in net assets, and cash flows for the year then ended, and a summary of significant accounting policies and other explanatory information.

Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with Canadian accounting standards for not-for-profit organizations and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion

Auditor’s Responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with Canadian generally accepted auditing standards.

Those standards require that we comply with the ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including

24

In our opinion, the financial statements present fairly, in all material respects, the financial position of the College as at December 31, 2016 and the results of its operations and its cash flows for the year then ended in accordance with Canadian accounting standard for not-for-profit organizations.

Chartered Professional Accountants Licensed Public Accountants April 25, 2017 Toronto, Ontario

FINANCIAL REVIEW • 2016 Annual Report

STATEMENT OF FINANCIAL POSITION AS AT DECEMBER 31, 2016 2016

STATEMENT OF OPERATIONS YEAR ENDED DECEMBER 31, 2016 2015

2016

2015

$

$

24,395,721

22,744,224

4,242,335 380,033 360,698 29,378,787

5,005,294 571,130 185,774 28,506,422

(Note 2)

$

$

ASSETS Current assets Cash Cash - internally restricted (Note 3) Accounts receivable (Note 5) Prepaid expenses

REVENUE Membership fees (Note 7) 9,503,643 — 1,930,090 551,134 11,984,867

13,845,348 6,000,000 688,361 671,841 21,205,550

15,176,177

­—

2,101,122

2,891,353

29,262,166

24,096,903

Other fees (Note 7) Amortization of deferred capital contributions Interest and other income

Expenses Investments (Notes 3 & 4) Capital assets (Note 6)

LIABILITIES Current liabilities Accounts payable and accrued liabilities (Note 7) Deferred revenue (Note 8) Current portion of deferred rent inducements

1,516,826

2,045,534

13,787,372

12,670,969

109,371

109,371

91,217

102,630

15,504,786

14,928,504

Deferred capital contributions (Note 9)

810,529

1,190,562

Deferred rent inducements

355,459

464,830

Current portion of capital lease obligation (Note 11)

15,474,213

15,044,122

General and administration

3,327,291

2,983,987

Professional services

1,074,322

602,872

Trade governance and stakeholder meetings

1,007,610

1,090,930

Member communications

2,369,981

1,690,745

Amortization of capital assets

1,035,544

1,104,166

24,288,961

22,516,822

5,089,826

5,989,600

Salaries and benefits

EXCESS OF REVENUE OVER EXPENSES

Long-term

Capital lease obligation (Note 11)

66,775

78,216

1,232,763

1,733,608

16,737,549

16,662,112

Commitments (Note 11) NET ASSETS (DEFICIT) Invested in capital assets Internally restricted (Note 3) Unrestricted

1,132,601

1,519,945

11,000,000

6,000,000

392,016

(85,154)

12,524,617

7,434,791

29,262,166

24,096,903 The accompanying notes to the financial statements are an integral part of this financial statement.

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STATEMENT OF CHANGES IN NET ASSETS YEAR ENDED DECEMBER 31, 2016 2016 Invested in capital Internally assets restricted Unrestricted $ NET ASSETS (DEFICIT), 1,519,945 BEGINNING OF YEAR Excess of revenue — over expenses Additions to 261,318 capital assets Proceeds on disposal (33,744) of capital assets Amortization of (1,035,544) capital assets Amortization of deferred capital 380,033 contribution Capital lease 22,854 Obligations repaid Inter-fund transfer — (Note 3)

NET ASSETS, END OF YEAR

$

$

STATEMENT OF CASH FLOWS YEAR ENDED DECEMBER 31, 2016 2016

2015

$

$

5,089,826

5,989,600

1,035,544 (380,033) (177,368) (109,371) (17,739) 5,440,859

1,104,166 (571,130) — (109,371) — 6,413,265

Net changes in non-cash working capital balances Accounts receivable (1,241,729)

2,474,676

120,707

(453,168)

2015

TOTAL

TOTAL

$

$

6,000,000

(85,154)

7,434,791

1,445,191

—

5,089,826

5,089,826

5,989,600

­—

(261,318)

­—

—

—

33,744

—

—

—

1,035,544

—

—

—

(380,033)

—

—

—

(22,854)

—

—

5,000,000

(5,000,000)

—

—

1,132,601 11,000,000

392,016

12,524,617

7,434,791

OPERATING ACTIVITIES Excess of revenue over expenses Add items not affecting cash Amortization of capital assets Amortization of deferred capital contributions Change in unrealized gains in investments Deferred rent inducements Gain on disposal of capital assets

Prepaid expenses Accounts payable and accrued liabilities

(528,708)

222,257

Deferred revenue

1,116,403 4,907,532

(1,057,421) 7,599,609

FINANCIAL ACTIVITIES Capital lease obligation incurred Capital lease obligations repaid

90,570

20,151

(113,424)

(10,622)

(22,854)

9,529

INVESTING ACTIVITIES Purchase of investments Additions to capital assets Proceeds on disposal of capital assets

(14,998,809)

—

(261,318)

(573,056)

33,744

­—

(15,226,383)

(573,053)

Net cash (outflow) inflow

(10,341,705)

7,036,082

Cash, beginning of year

19,845,348

12,809,266

CASH, END OF YEAR

9,503,643

19,845,348

9,503,643

13,845,348

COMPRISED OF Cash Cash - internally restricted

The accompanying notes to the financial statements are an integral part of this financial statement.

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—

6,000,000

9,503,643

19,845,348

FINANCIAL REVIEW • 2016 Annual Report

NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2016 1. NATURE OF OPERATIONS The Ontario College of Trades (the “College”) is a regulatory body incorporated without share capital under the Ontario College of Trades and Apprenticeship Act, 2009. The College has a statutory mandate to regulate certain skilled trades in Ontario in the public interest. It performs standard regulatory functions such as: • Protecting the public interest by monitoring and enforcing compliance with the Ontario College of Trades and Apprenticeship Act, 2009; • Promoting the skilled trades as a first-choice career option to youth and underrepresented groups; • Developing the curriculum, training standards and assessment tools; • Issuing certificates of qualification and statements of membership; and • Establishing apprenticeship programs.

As a not-for-profit corporation, the College is exempt from tax under section 149(1) of the Income Tax Act provided certain criteria are met. The College confirms it meets the criteria and qualifies for this tax status for all years since incorporation.

2. SIGNIFICANT ACCOUNTING POLICIES

membership fees of members transferred from MTCU. Members have the option to receive the MTCU credits in cash if they opt not to be a member of the College.

MTCU credits revenue is recognized when the invoice is paid, partially or in full, by the member. Any unused MTCU credit is recorded as deferred revenue. Unused MTCU credits will be returned to MAESD in the future upon demand.

The College charges other fees to its members such as examination fees, issuance of certificates, reinstatement, and other fees. These fees are recognized as revenue when services are rendered.

Financial instruments The College initially recognizes financial instruments at fair value. Subsequently, at each reporting date, it measures cash and investments at fair value, and accounts payable and accrued liabilities, debt and other liabilities at amortized cost. Any subsequent changes in fair value are recorded in the Statement of operations.

Capital assets Capital assets are records at cost. Amortization is provided on the straight line basis over the lesser of the remaining term of the lease or their estimated useful lives, as follows: Computer equipment Computer software Office equipment, furniture & fixtures Leasehold improvements Vehicles

3 years 3 to 5 years 5 years 10 years 5 years

Financial statement presentation These financial statements have been prepared in accordance with Canadian accounting standards for not-for-profit organizations, using the deferral method of reporting restricted contributions.

Revenue recognition Membership dues revenue is recognized over the 12-month period using the deferral method, net of allowance for doubtful accounts. During the year, management changed its policy regarding the recording of membership receivables and deferred revenue for membership dues not collected as at year-end. The retrospective application of this change in policy resulted in a decrease to accounts receivable and deferred revenue at December 31, 2015 of $4,811,758 and $4,272,876 respectively. As well, prepaid expenses and accounts payable and accrued liabilities increased by $281,205 and $257,677 respectively. There was no impact on net assets as at January 1, 2015 or December 31, 2015 as a result of this change.

Grant revenue is recognized as the related expenditures are incurred. Unearned amounts received are shown as deferred revenue at year end. In 2013, the College received an additional grant from the Ministry of Advanced Education and Skills Development (‘MAESD”), formerly known as the Ministry of Training, College and Universities (“MTCU”) (“MTCU Credits”). The grant was intended to partially offset

Allowances for doubtful accounts The College records an allowance for doubtful accounts considering the age of an outstanding receivable and the likelihood of its collection. Provisions are also made where collection of the receivable is doubtful based on information gathered through collection efforts. An allowance is reversed once collection of the debt is successful or the amount is written off.

Harmonized Sales Tax rebate and Input Tax Credit From October 14, 2010 to April 7, 2013, the College exercised its option to not collect Harmonized Sales Tax (“HST”) in respect of membership fees. Since the College qualified as a public service body it applied for a rebate of 50% of the Federal portion and 82% of the Provincial portion of the HST it paid. HST paid in respect of capital asset purchases has been deferred and will be recognized as revenue as the related capital assets are amortized.

The College started collecting membership fees on April 8, 2013 and opted to collect HST on the membership fees, net of the MTCU credits applied. Other transactional fees being collected (exam fees, provisional certificate fees etc.) are also charges HST. Consequently, the College started claiming Input Tax Credit on the same date.

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Deferred rent inducements

5. ACCOUNTS RECEIVABLE

Deferred rent inducements consisting of free rent, are amortized on the straightline basis over the term of the lease.

Accounts receivable are presented net of allowance for doubtful accounts which amounts to $1,706,131 as at December 31, 2016 (2015 - $755,919).

Use of estimates The preparation of the financial statements in conformity with Canadian accounting standards for not-for-profit organizations requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reports amounts of revenue and expenses during the reporting period.

Actual results could differ from those estimates. Accounts requiring significant estimates and assumptions include investments, accrued liabilities, deferred revenue, and the amortization of capital assets.

6. CAPITAL ASSETS

COST Accumulated amortization Computer equipment and related software Office equipment, furniture and fixtures

3. INTERNALLY RESTRICTED ASSETS

Leasehold improvements

During 2015, cash in the amount of $6,000,000 was internally restricted. In 2016, this cash was invested as described in Note 4.

Vehicles

2016

2015

Net book value

Net book value

$

$

$

$

2,878,447

1,885,900

992,547

1,350,107

999,532

863,827

135,705

226,949

1,498,565

809,342

689,223

847,606

818,909

535,262

283,647

466,691

6,195,453

4,094,331

2,101,122

2,891,353

Included in the above balance there are $121,596 (2015 - $191,036) related to computer software not being amortized because it is under development.

4. INVESTMENTS Investments include $11,000,000 that have been internally restricted for the purpose of the College’s long-term strategic initiatives.

The investments consist of the following:

7. ACCOUNTS PAYABLE AND ACCRUED LIABILITIES 2016

Cost

Fair value

2015 Cost

Fair value

Accounts payable and accrued liabilities include $139,371 (2015 - $281,514) in remittances owing to the government.

$

$

$

$

Money Market Funds

5,054,635

4,870,313

—

—

Fixed Income

3,019,179

3,115,247

—

—

Canadian equities

2,723,240

2,739,177

—

—

2016

Global equities

4,201,755

4,451,440

—

—

$

$

14,998,809

15,176,177

—

—

Opening balance (Note 2)

12,670,969

13,728,390

Add: amounts received

29,754,459

26,692,743

The fixed income investments bear interest at rates varying from 1.17% to 10.95% and mature at various dates from February 27, 2017 to December 2, 2048.

8. DEFERRED REVENUE

Less: refunds Less: membership fees recognized as revenue Less: other fees recognized as revenue Balance, end of year

28

2015

—

646

24,395,721

22,744,224

4,242,335

5,005,294

13,787,372

12,670,969

FINANCIAL REVIEW • 2016 Annual Report

9. DEFERRED CAPITAL CONTRIBUTIONS

12. PUBLIC SERVICE PENSION PLAN 2016

Opening balance

Some of the College`s employees transferred from the MTCU on April 1, 2011. These employees participate in the Public Service Pension Fund (`PSPF`) which is a defined benefit pension plan. The Province of Ontario, which is the sole sponsor of the PSPF, determines the College’s annual contributions to the PSPF. Since the College is not a sponsor of these funds, gains and losses arising from statutory actuarial funding valuations are not assets or obligations of the College, as the sponsor is responsible for ensuring that the pension funds are financially viable. The College’s expense is limited to the required contributions to the PSPF. The College’s employer contributions to the plan during 2016 amounted to $77,996 (2015 - $103,560).

2015

$

$

1,190,562

1,761,692

Less: amounts recognized as revenue

380,033

571,130

Balance, end of year

810,529

1,190,562

10. CREDIT FACILITY During the year, the College reduced its credit facility with a major bank from $3,000,000 to $1,000,000. The credit facility is unsecured and is accessible through corporate credit cards, operating line of credit and bankers` acceptances. No amounts were withdrawn during 2016 or 2015.

13. RISK MANAGEMENT Market risk The College is exposed to market risk as a result of its fixed income securities. To mitigate this risk the College invests in a diversified portfolio of investments in accordance with the College’s investment policy.

11. COMMITMENTS The College has obligations under non-cancelable capital and operation leases and a service agreement. The minimum annual payments consist of the following: Operating lease

Capital lease

$

$

2017

1,009,547

87,275

2018

1,011,960

45,884

2019

975,230

18,534

2020

989,327

—

2021

247,332

—­

4,233,396

151,693

—

6,299

Total obligations

4,233,396

157,992

Less: current portion

1,009,547

91,217

3,223,849

66,775

Minimum annual lease payments Add: amounts representing interest

Credit risk Credit risk arises as a result of the College’s investments and accounts receivable.

In order to reduce this risk the College’s investment policy defines permitted investments and provides guidelines and restrictions on acceptable investments; and regularly reviews the outstanding receivable balance to determine if any amounts are significantly past due.

Foreign exchange risk The College invests in non-Canadian equities and is therefore directly exposed to currency risk as the value of the equities are designated in other currencies will fluctuate due to changes in exchange rates.

The effective average interest rate of the capital leases is 2.66% (2015 – 2%) with an average term to maturity of three years (2015 – three years). Interest expense of $6,299 (2015 - $2,737) related to capital leases is included in the Statement of operations.

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30

G OV E R N I N G Being on the trade board has made me more passionate about my own trade.

Shawn Stoughton Plumber & steamfitter trade board member (Trades Today summer 2016)

LEFT TO RIGHT: (standing) James Barry, Howard Deane, Don Gosen, Suzette Cameron, David Pyper, David Tsubouchi (Registrar/CEO), Jamie Holmes, Pauline Faubert, Piero Cherubini, Robin Barker, Louie Leombruni (seated) Tom Carvin, Irene Harris, Pat Blackwood, Catherine Poultney, Paul Sousa (absent) Rob Brewer, Ron Johnson, Joseph Maloney, Royston Maybery, Douglas Reynolds

BOARD OF GOVERNORS Anyone interested in serving the public and advancing the skilled trades through the Board of Governors, Divisional Boards, or Trade Boards should visit the College of Trades Appointments Council’s website at cot-appointments.ca for more information.

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The College is governed by its Board of Governors, which provides leadership to manage and administer the College’s regulatory and business operations.

The Board is responsible for promoting the College’s mandate by providing oversight of management’s resource allocation, risk management and financial policies and decisions.

The Board conducts much of its work through its various committees, including statutory committees (Complaints, Discipline, Fitness to Practise, Registration Appeals, Executive, and Compliance & Enforcement committees) and standing committees (Finance & Audit, Investment, Governance & Nominations, Regulations, Research Advisory, and Steering Committee on Dean Report Recommendations).

DIVISIONAL BOARDS Four Divisional Boards, each comprised of five members, represent the four skilled trades sectors—construction, motive power, industrial and service.

TRADE BOARDS The College’s 49 Trade Boards are responsible for overseeing the development and updating of apprenticeship training standards, curriculum standards and exams.

The College held 113 Trade Board meetings across four sectors and participated in numerous events provincially and nationwide.

GOVERNING • 2016 Annual Report

TRADES IN ONTARIO COMPULSORY TRADES A trade in which registration as an apprentice, journeyperson candidate or certification as a journeyperson is mandatory.

There are 22 skilled trades that are designated as compulsory.* Alignment & Brakes Technician

Automotive Electronic Accessory Technician

Auto Body & Collision Damage Repairer

Automotive Service Technician

Auto Body Repairer

Electrician - Construction & Maintenance Electrician - Domestic & Rural

Fuel & Electrical Systems Technician Hairstylist Hoisting Engineer Mobile Crane Operator 1

Hoisting Engineer Mobile Crane Operator 2

Motorcycle Technician

Hoisting Engineer Tower Crane Operator

Refrigeration & Air Conditioning Systems Mechanic

Plumber

Residential (Low Rise) Sheet Metal Installer

Sheet Metal Worker

Residential Air Conditioning Systems Mechanic

Transmission Technician

Steamfitter

Truck & Coach Technician Truck-Trailer Service Technician

VOLUNTARY TRADES Every trade that is not identified as compulsory is, by default, voluntary. Certification is offered in some voluntary trades, but is not a requirement to practise in the trade.

Aboriginal Child Care Practitioner

Blacksmith

Agricultural – Dairy Herdsperson

Cabinetmaker

Brick & Stone Mason

Agricultural Fruit Grower

Cement (Concrete) Finisher

Agricultural – Swine Herdsperson

Chef

Agricultural Equipment Technician

Child Development Practitioner

Appliance Service Technician

Composite Structures Technician

Arborist

Computer Numerical Control (CNC) Programmer

Architectural Glass & Metal Technician Assistant Cook Automotive Glass Technician Automotive Painter Baker Baker-Patissier Bearings Mechanic

Child & Youth Worker

Concrete Pump Operator Construction Boilermaker Construction Craft Worker

Developmental Services Worker

Elevating Devices Mechanic

Heavy Equipment Operator - Dozer

Information Technology Motive Power - Hardware Technician Machinist

Pool, Hot Tub & Spa Installer

Die Designer

Entertainment Industry Power Technician

Heavy Equipment Operator - Excavator

Information Technology Mould Designer - Network Technician Mould Maker Institutional Cook Mould or Die Finisher Instrumentation Native Clothing & Control & Crafts Artisan Technician Native Residential Ironworker - Generalist Construction Worker

Pool, Hot Tub & Spa Service Technician

Draftsperson - Mechanical Draftsperson - Plastic Mould Design Draftsperson - Tool & Die Design Drywall Finisher & Plasterer Drywall, Acoustic & Lathing Applicator Educational Assistant Electric Motor System Technician Electrical Control (Machine) Builder Electrician (Signal Maintenance)

Electronic Service Construction Millwright Technician Cook

Exterior Insulated Finish Heavy Equipment Systems Mechanic Operator - Tractor Loader Backhoe Facilities Mechanic Horse Groom Facilities Technician Horse Harness Maker Fitter - Assembler (Motor Assembly) Horticultural Technician Floor Covering Installer Hydraulic/Pneumatic Mechanic Gemsetter/Goldsmith Industrial Electrician General Carpenter Industrial Mechanic General Machinist Millwright Hardware, Lumber Information Technology & Building Materials - Contact Centre Retailer Customer Service Agent Hazardous Materials Information Technology Worker - Contact Centre Sales Agent Heat & Frost Insulator

Ironworker - Structural & Ornamental

Network Cabling Specialist

Light Rail Overhead Contact

Optics Technician (Lens & Prism Maker)

Systems Linesperson

Packaging Machine Mechanic

Locksmith Machine Tool Builder & Integrator Marine Engine Technician

Painter & Decorator Industrial Painter & Decorator Commercial & Residential

Metal Fabricator (Fitter) Parts Technician Heavy Duty Equipment Information Technology Micro Electronics Pattern Maker - Contact Centre Technician Manufacturer Technical Support Agent

Powered Lift Truck Technician Powerline Technician Precast Concrete Erector Precast Concrete Finisher Precision Metal Fabricator Pressure Systems Welder Process Operator - Wood Products Process Operator - Food Manufacturing Process Operator - Power Process Operator - Refinery, Chemical & Liquid Processes

Pump Systems Installer

Surface Blaster

Railway Car Technician

Surface Mount Assembler

Recreation Vehicle Technician Refractory Mason Reinforcing Rodworker

Terrazzo, Tile & Marble Setter Thin Film Technician

Tire, Wheel Relay & Instrumentation & Rim Mechanic Technician Tool & Cutter Grinder Restoration Mason Tool & Die Maker Retail Meat Cutter Tool & Gauge Inspector Roll Grinder/Turner Tool/Tooling Maker Roofer Tractor-Trailer Saddlery Commercial Driver Saw Filer/Fitter Turf Equipment Technician Ski Lift Mechanic Small Engine Technician Utility Arborist Water Well Driller Special Events Coordinator Welder Sprinkler & Fire Protection Installer**

Wooden Boat Rebuilder

* 23 as of February 2, 2017 ** Compulsory as of February 2, 2017

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655 Bay Street Suite 600 To r o n t o , O N M 5 G 2 K4

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