2024-25 Annual Report

Annual Report April 1, 2024 to March 31, 2025

Contents Land Acknowledgement .................................................................................................................................................................................................................. 2 Vision, Mission, Values ................................................................................................................................................................................................................. 2 Core Values .............................................................................................................................................................................................................................. 2 Mission ....................................................................................................................................................................................................................................... 2 Vision .......................................................................................................................................................................................................................................... 2 Institution Information ................................................................................................................................................................................................................. 3 Accountability Acknowledgement .......................................................................................................................................................................................... 3 Public Post-secondary Institutions .................................................................................................................................................................................... 3 a. Accountability Statement ............................................................................................................................................................................................... 3 b. Management's Responsibility for Reporting ............................................................................................................................................................... 3 Public Interest Disclosure (Whistleblower Protection) Act ................................................................................................................................................ 4 Goals and Performance Measures .......................................................................................................................................................................................... 4 Summary of Achievements .................................................................................................................................................................................................. 4 a. Student Supports and Resources.................................................................................................................................................................................. 8 b. Strategic Research Priorities ........................................................................................................................................................................................... 8 c. Collaboration with Other Learning Providers ........................................................................................................................................................... 10 Free Speech Reporting ...............................................................................................................................................................................................................11 Free Speech Policy Information ..........................................................................................................................................................................................11 Cancelled Events....................................................................................................................................................................................................................11 Free Speech-Related Complaints .....................................................................................................................................................................................11 Board of Governors Training on For-profit Ventures ...........................................................................................................................................................11 Financial Information.................................................................................................................................................................................................................. 12 Budget Variances .................................................................................................................................................................................................................. 12 Self-generated Revenue........................................................................................................................................................................................................... 12 Tuition and Mandatory Fees............................................................................................................................................................................................... 12 Donations and Investment Income .................................................................................................................................................................................. 13 Research Grants .................................................................................................................................................................................................................... 13 Other Grants ...........................................................................................................................................................................................................................14 Auxiliary / Ancillary Services ...............................................................................................................................................................................................14 Academic Enterprise ............................................................................................................................................................................................................ 15 Land Trusts and For-Profit Ventures ................................................................................................................................................................................. 15 Other......................................................................................................................................................................................................................................... 15 Capital Report ............................................................................................................................................................................................................................. 16 Top 3 Projects ......................................................................................................................................................................................................................... 16 All Other Projects ................................................................................................................................................................................................................... 19 Mandatory Non-instructional Fees (MNIF) Reporting ........................................................................................................................................................ 21 MNIF Financial Summary ..................................................................................................................................................................................................... 21 Compliance Statement ...................................................................................................................................................................................................... 22

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Land Acknowledgement Northwestern Polytechnic acknowledges that our campuses are located on Treaty 8 territory, the ancestral and present-day home to many diverse First Nations, Métis, and Inuit people. We are grateful to work, live and learn on the traditional territory of Duncan's First Nation, Horse Lake First Nation and Sturgeon Lake Cree Nation, who are the original caretakers of this land.

We acknowledge the history of this land and we are thankful for the opportunity to walk together in friendship, where we will encourage and promote positive change for present and future generations.

Vision, Mission, Values Core Values Innovative: We are innovative in how we identify, develop, and deliver quality programming and services.

Responsive: We are flexible and adaptable to our students, partners, and communities through accountability, integrity, and transparency.

Connected: We encourage inclusivity and are connected to our students, staff, partners, and communities.

Mission Be it with our students, staff, faculty, alumni, donors or valued community partners, our core purpose is to spark and empower success.

Vision To transform postsecondary education in Northern Alberta through polytechnic education, research, and partnerships.

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Institution Information Institution Name: Northwestern Polytechnic President's Name: Dr. Vanessa Sheane Board Chair's Name: Shawna Miller

Accountability Acknowledgement Public Post-secondary Institutions a. Accountability Statement The institution’s Annual Report for the year ended was prepared under the Board’s direction in accordance with the Sustainable Fiscal Planning and Reporting Act and ministerial guidelines established pursuant to the Post-secondary Learning Act. All material economic, environmental, or fiscal implications of which we are aware have been considered in the preparation of this report.

b. Management's Responsibility for Reporting "The institution’s management is responsible for the preparation, accuracy, objectivity, and integrity of the information contained in the Annual Report. Systems of internal control are designed and maintained by management to produce reliable information to meet reporting requirements. The system is designed to provide management with reasonable assurance that transactions are properly authorized, are executed in accordance with all relevant legislation, regulations and policies, reliable financial records are maintained, and assets are properly accounted for and safeguarded.

The Annual Report has been developed under the oversight of the institution's audit committee, as well as approved by the Board of Governors and is prepared in accordance with the Sustainable Fiscal Planning and Reporting Act and the Post-secondary Learning Act. The Auditor General of Alberta, the institution’s external auditor appointed under the Post-secondary Learning Act, performs an annual independent audit of the consolidated financial statements which are prepared in accordance with Canadian public sector accounting standards. (Note: This last paragraph does not apply to The Banff Centre.)"

[Original signed by Dr. Vanessa Sheane, President & CEO, and Shawna Miller, Board Chair.]

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Public Interest Disclosure (Whistleblower Protection) Act As per Section 32(3) of the Act, which requires that disclosures be included in public entities’ annual reports: Northwestern Polytechnic did not have any Public Interest Disclosures to report during the 2024/25 period.

Goals and Performance Measures Summary of Achievements In October 2024, Northwestern Polytechnic proudly unveiled True North 2024-2030. This Strategic Plan was carefully developed after much consultation with our learning community, industry partners, and fellow regional champions.

As we strive for continuous learning, marked improvement, and achievement of our polytechnic mandate, we are cognizant of the need to be authentic in our approach, and optimize value for the communities and industries we serve. True North provides a guidepost for NWP with four overarching themes that have associated goals and focus areas that define our direction and drive our impact over the next six years:

1. Programming and Research We are recognized for quality, in-demand programs, and applied research that leverages our strengths and creates opportunity.

Focus: Data-driven decision making, Seizing opportunities for growth, Implementation of the Master Academic Plan.

Achievements During the 2024-25 period: NWP enrolment increased by approximately 13%. This FLE growth was led by Health programming, increasing NWP degree offerings, International student engagement, and Trades which had the most notable growth in our ThinkBIG programming (32%). This globally recognized, one-of-a-kind partnership with Caterpillar Inc. and Finning Canada launches graduates directly from the classroom to career.

• •

NWP saw a 7% increase (FLEs) in the number of Indigenous learners.

NWP broadened programming with 18 new in-demand offerings added including: o April 2024 - Historic Medical Education Partnership between U of A and NWP announced.

Starting Fall 2025, medical students will have the opportunity to become diverse, competent, and compassionate physician leaders, right in the heart of the Peace Region. o Spring 2024 – Two new additions to the School of Applied Science and Technology: Water and Wastewater Technician Certificate and Agriculture Operations Diploma. Both programs are designed to boost regional capacity by supporting essential industries and developing specialized, in-demand talent. o April 2024 – Introduction of two new Educational Assistant certificates focusing on inclusion and literacy supports. Delivered online, these programs will equip educational assistants with foundational skills for the evolving needs of Alberta classrooms. o May 2024 – A new Power Engineering Technology Diploma program to match the state-of-theart Power Engineering & Instrumentation Lab development.

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o o

o o

o

June 2024 –Two new foundational University Arts and University Biological Sciences Diploma pathways to support success in social science, humanities, health, environment, and technology careers.

Summer 2024 – Recognizing the value of short-term, competency building education, NWP doubled Micro-credential offerings through our Continuing Education department. Newly launched programs include: Remotely Piloted Aircraft, Electric Vehicle Service and Maintenance, Materials Handling and Warehousing.

July 2024 – A new Emergency Medical Responder Certificate geared at individuals with an interest in quick entry into healthcare, or laddering into paramedic and nursing programs.

September 2024 – Grant funding secured to facilitate new program development and implementation (pending program approvals):  Psychiatric Nurse Diploma - 2025/26  Social Work Diploma - 2025/26  Bachelor of Arts in Psychology - 2026/27  Bachelor of Social Work - 2026/27 November 2024 - Bachelor of Education, Elementary specialization - Starting in Fall 2025, aspiring elementary school educators will be able to obtain their full teaching qualification right in the Peace Country.

The Office of Research and Innovation (OARI) is also continuing to generate attention. Research Funding secured during the 2024-25 period totalled more than $1.1M. This amount is similar to the previous period, with funded projects including: •

• •

National Bee Diagnostic Centre - Honey Testing Design/Certification ($390K), Supplementary TAC funding ($400K), Mass Spectrometry investment for analysis of honey an other agricultural products ($178K), Varroa Mite studies ($199K) General Funding - Pin2cle PrairiesCan Stronger Economy ($994K), Mitacs Eco-Friendly Ag ($60K), CiCan Virtu-Work-Integrated-Learning ($38K) Consortia Participation - Canada’s National Network for Innovation, Commercialization and Entrepreneurship Skills Training of Students, Researchers and Highly Qualified Persons (32M), CollegeUniversity Lab to Market Network for Entrepreneurship and Research Commercialization ($24M).

Some additional OARI momentum builders include: •

Chair of Canadian Association of Research Administrators (CARA) West, and member of the organizing committee for the national panel which explored the unique research enterprise ecosystem in Alberta.

• Organized a national applied research panel on “Reimagining the research enterprise ecosystem: navigating institutional research goals” (National Thought Forum) • Presented at Canadian Science Policy Conference: Applied research: multi-sectoral collaboration with industry, advancing economic development and empowering and training the future workforce.”

• Strategic presentation to the Clean Energy Unit on applied research eco-system in Alberta with SAIT, NAIT and Red Deer Polytechnic.

• Presented at InVentures on the Polytechnic Panel: Innovation, collaboration and pushing your product across the finish line is what Alberta's Polytech institutions do.

• Provided submission to the Standing Committee on Science and Technology.

• Attended the EAIE Conference and Exhibition to enhance access for applied research funding through the Horizon2020 program.

• NWP research project showcased at the largest global trade fair, Hannover-Messe, hosted by Canada, on-site in Hannover, Germany.

• Participation in invitation-only training on Horizon Europe funding.

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2. Community and Industry We are a trusted partner that builds community relationships, supports industry, and is committed to Indigenization.

Focus: Fulfilling the Indigenous Education Protocol, Achieving meaningful engagement, Shared-value partnership development, Telling our story.

Achievements: Various partnerships were established in this year, elevating programming, infrastructure, sponsorships, and advocacy/advisory roles. A few highlights include: Building Regional Assets •

•

Power Engineering and Instrumentation Training and Education Flagship Facility – Announced in 2023, this project has continued to gather momentum. Multiple industry leaders signed on to the capital campaign during the 2024/25 period, demonstrating strong sector support. A major milestone was reached in February 2025, when Spartan Controls - a Canadian leader in industrial automation committed to a 15-year exclusive naming partnership with Northwestern Polytechnic (NWP). This new $16 million, full-service training and education space is set to open in fall 2025 and will be known as the Spartan Controls Northwestern Centre for Industrial Automation & Innovation.

Centre for Entrepreneurial Excellence - In a move that showcases the power of collaboration, Northwestern Polytechnic and Prairies Economic Development Canada (PrairiesCan) announced support for an initiative aimed at building local entrepreneurial skills and business capacity by enhancing service coordination within the Peace Region through a new centre for entrepreneurial excellence.

The business case for the enterprising venture was developed in 2023 by NWP and submitted to PrairiesCan, the federal department that supports economic growth and diversification in the Prairie provinces. Following the receipt of $3.2M through PrairiesCan's Regional Innovation Ecosystems program, NWP has worked with local partners to secure a naming sponsorship. Once operational in Spring 2026, The Side Family Centre for Entrepreneurial Excellence will be integral in driving economic development and enhancing regional competitiveness. In addition to accelerating the growth of high-impact businesses, this initiative will focus on fostering a thriving entrepreneurial ecosystem that will attract investment, retain talent, and promote innovation.

Collaborative Success • • •

Nine 10 and Fletcher Mudryk’s commitment to multiple year sponsorship for signature annual fundraising events, Finning Canada’s continued equipment donations and curriculum engagement.

More than a dozen unsolicited letters from different pipe trade companies wanting to work with NWP for a solution to their workforce needs.

Focused Engagement •

•

Re-signing of the Indigenous Education Protocol alongside the Circle of Indigenous Students. This protocol is on display throughout our campuses and NWP tracks progress and reports semi-annually to the Indigenous Advisory Council.

Ensuring each academic department has at least one advisory committee comprised of regional industry partners who provide advice on program curriculum, graduate outcomes, industry needs, and student skills.

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•

Hosting Industry Nights at both the Fairview and Grande Prairie campuses with the goal of enhancing local connections and identifying new partnership opportunities.

3. Student, Faculty, and Staff Experience We are the polytechnic of choice for students, faculty, and staff to advance their personal and professional growth.

Focus: Building a place for people to thrive, Celebrating our people, Implementation of the Strategic Enrolment Management Action Plan.

Achievements: • • • • • •

•

Completion of employee engagement survey in the Fall of 2024.

Provision of formal, monthly leadership development training to senior and executive leaders.

Continued support of faculty and staff through professional development funds, leadership development funds, and applied research support.

Bi-weekly student, staff, faculty, and alumni features shared online through NWPeople initiative NWP.me/NWPeople Initiation of Student Lifecycle mapping exercise as part of Strategic Enrolment Management (SEM) efforts to gain a deeper understanding of the learner journey, current challenges, and gaps in support.

New NWP website development geared at enhancing user experience by providing streamlined access to information, improving engagement, and supporting digital information management for students, staff, and prospective applicants.

Between the Student Research Assistant Program, Faculty Innovation Fund Award, and other grant streams, a total of 11 students were hired by NWP’s Office of Applied Research and Innovation (OARI) OARI in 2024/25. Highlights include: o Student Research Assistant (RA) program launch, with five RA positions available for students eager to apply classroom learning to real world problems. Students gain hands-on applied research experience working on ongoing projects with NWP faculty. o NWP’s Faculty Innovation Fund unveiling in May 2024, with a second intake in September 2024.

The award was created to develop concepts and build ideas in the pursuit of applied research, scholarly, and creative activity. This award supports NWP faculty in the early stages of their projects so that applicants can build their research program to develop scholarly and creative outputs, apply for additional external grants and/or leverage partnerships in community and industry.

4. Operational Effectiveness We are fiscally responsible and aligned with our sector, ensuring sustainability and growth.

Focus: Investing in growth, Process and data management improvements, Decreasing costs, Increasing revenue.

This past year, we have increased our non-tuition revenue by over $7M. This increase is from Federal grants, sales of services and products, donations and other grants, and investment income.

NWP prioritized the development of a comprehensive Campus Sustainability Plan with a view to refining our approach and informing proactive operational, capital, and budget planning for the 2026-2027 period.

NWP remains focused on reducing our costs per FLE. While the Polytechnic is an outlier in direct instructional cost, student supports, admin, and operational costs, we achieved cost decreases in all of these areas except for operational. This can be attributed to our capital project investments. Proportionally, we also offer 2024/25 Annual Report

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more apprenticeship seats to credit seats than the other polytechnics, which contributes to the higher direct instructional cost per FLE. During the 2024-25 period, NWP also identified philanthropic priorities and developed a targeted Advancement Plan to guide our fundraising and sponsorship efforts.

a. Student Supports and Resources Outline student support services and resources your institution offers that address the diverse needs of your students and helps them to excel in and to complete their post-secondary studies (e.g., academic and career advising, financial and housing assistance, health & wellness services, etc.).

Our commitment to empowering learners is reflected in the wide range of student supports and resources we offer, providing comprehensive academic, emotional, and practical assistance to help students thrive throughout their educational journey.

Helpful Resources Recognizing that financial challenges are one of the most significant challenges to post-secondary access, NWP has more than 300 Awards, Bursaries and Grants that actively are promoted to current and prospective learners.

Campus Engagement From Mental Health Supports and Career Services to Wolves’ Athletics and Campus Recreation, the NWP student experience is seamlessly designed to foster both personal and academic growth.

We are proud to offer cultural connections and support through our On-campus Friendship Centre, and Circle of Indigenous Students. During the 2024-25 period students benefited from our Elder in Residence as well as other distinctive initiatives including Beading workshops, Elder Lunches, Cree with Kookum, Welcome Tea Dance, and other Truth and Reconciliation focused initiatives.

NWP’s Residence Services offers help settling into the NWP home away from home. A regular newsletter keeps students informed and activities such as Movie Evenings and BBQs continue to build community.

Growing Networks NWP’s bi-annual Career Fairs and Thriving in the City initiatives give students an opportunity to connect with potential employers, gain industry insights, and build professional networks. These popular events are integral in supporting community growth by linking local talent with regional workforce needs.

Academic Success NWP’s Learning Commons and academic support services continued to provide students with access to reliable resources, personalized guidance, and quiet, focused environments that foster learning, research, and academic success. These services are helping students develop critical thinking, study, and time management skills.

b. Strategic Research Priorities Outline your institution's strategic research priorities. Describe how these priorities align with provincial strategies (e.g., Alberta 2030: Building Skills for Jobs, Alberta Technology and Innovation Strategy, etc.). For each priority area, describe key achievements, and how they have contributed to the advancement of your institution’s own strategic research priorities.

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Alignment to GoA Strategic Priorities At Northwestern Polytechnic (NWP), we are actively supporting the goals of Alberta’s Building Skills for Jobs 2030 and Alberta’s Technology and Innovation Strategy by advancing research and innovation that align with the province’s evolving economic priorities, building capacity, and deepening collaboration with industry and community partners.

In line with these distinctive strategies' focus on boosting innovation capacity, NWP is fostering applied research opportunities that contribute to real-world solutions while exploring pathways for commercialization. We are also intent on building strong partnerships with industry, community, and other institutions to ensure that our research aligns with labour market needs and supports regional economic growth.

As a Polytechnic, NWP appreciates the value of practical problem-solving and applied learning. At every step, NWP is expanding work-integrated learning opportunities that connect students with hands-on experience, reinforcing the link between academic training, industry collaboration, and innovation-led job creation.

Focused Efforts Established in 2023, Northwestern Polytechnic’s Office of Applied Research & Innovation (OARI) provides a wide range of support services and guidance to faculty, researchers, students, industry and community partners. We are proud to advance research in agriculture and ecosystems, energy and environment, health and wellness and social innovation. The OARI strives to make a positive impact by: • • • • •

Facilitating practical solutions to industry challenges Identifying opportunities to enhance community through research Creating beneficial partnerships and work-integrated learning opportunities for students Supporting applied and scholarly research and creative activities Adding value and contributing to regional and provincial economic growth and competitiveness

As a polytechnic, NWP is focused on applied research opportunities that deliver practical solutions. NWP’s National Bee Diagnostic Centre (NBDC), continues to be the only facility in Canada dedicated to improving pollinator health through pest and pathogen management.This lab is central to our work with ag and forestry partners and holds great promise for agriculture and ecosystem focused applied research initiatives.

Serving as the largest post-secondary in northern Alberta, and located within a key industrial corridor, NWP recognizes the importance of advancing Community Enhancement and Social Innovation learnings. Notable projects during this period include: •

•

Civic Belonging in a Northern Resource Economy: At-Risk Youth Re-connection in Northwest Alberta - This project represents the first regional use of the youth participatory action research (YPAR) approach. This Community Enhancement Research project aims to address the issue of low community connection and engagement among youth in resource-dependent northern Alberta communities.

Precision Agriculture Technology Adoption for Sustainable Northern Alberta Farms - NWP is looking for ways to make northern agriculture more time and energy efficient. The institution has received funding from NSERC via the Applied Research and Technology Partnership (ARTP) grant to explore innovative applications of data-driven precision agriculture (PA) technology.

NWP is proud to lead the way with various research projects and conference investments including: •

Co-hosting Mental Health Summit alongside Resource Centre for Suicide Prevention - May 2024.

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• • • • •

Highlighting the innovation eco-system in the Peace Region AsTech Awards participation - February 2025.

Participation at InVentures including NBDC on display as part of the broader Technology Access Centre booth.

Attending the World Ag Tech in San Francisco with Team Alberta.

Coordinating an AG panel at Growing the North and unpacking how AgTech will change the future of farming in our region.

Co-hosting 2nd annual RDAR conference in November in Rycroft.

c. Collaboration with Other Learning Providers Collaborative delivery (satellite or other arrangements) Northwestern Polytechnic has worked diligently to build strong partnerships with other post-secondary institutions, expanding learning pathways and creating greater opportunities for our students to thrive within a broader academic community.

These joint efforts include a pathway from NWP’s Veterinary Technology Diploma into specialized degree programs at the University of Lethbridge as well as impactful University Transfer programs with the University of Alberta (U of A), collaborative delivery of a four-year Bachelor of Science in Nursing with the U of A, and a focused effort on training and retaining aspiring educators through the Teacher Education North program which offers the third and fourth year of the U of A, Bachelor of Education Elementary Degree in collaboration with Northwestern Polytechnic. The program is designed to prepare teachers to teach elementary school students. Teaching in northern rural schools and working with northern communities are the two themes integrated throughout the program.

Most recently our Polytechnic partnered with the U of A to launch the Northern Alberta Medical Program (NAMP), enabling students to complete their U of A MD entirely in Grande Prairie, and helping train and retain much-needed rural family physicians right in northern Alberta.

Institution-level research collaborations In January 2025, Northwestern Polytechnic (NWP) joined forces with other Canadian institutions through two major national research commercialization initiatives, totalling over $56M in funding, that will enhance innovation and entrepreneurship across Canada.

• •

$32M Lab2Market grant awarded to Dalhousie University, connecting over 45 post-secondary institutions and research centers. $24M Lab to Market initiative led by Red River College Polytechnic, involving 38 post-secondary institutions.

Learner pathways (e.g., transfer credit for courses/programs) During the 2024–2025 period, NWP continued to collaborate across the broader learning community, cultivating strategic partnerships aimed at bridging recognized gaps in northern Alberta’s education landscape and expanding access to meaningful, regionally responsive learning opportunities.

•

Northern Alberta PSI Memorandum of Understanding - Education in northern Alberta is now more connected than ever, thanks to a collaborative agreement between five post-secondary institutions signed in March 2025. At its core, the partnership between Keyano College, Lakeland College, Northern Lakes College, Northwestern Polytechnic (NWP), and Portage College aims to ensure that postsecondary education in northern Alberta remains accessible, relevant, and sustainable. A first of its kind in

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•

northern Alberta, this collaboration will deliver a strengthened skills and training approach that will stretch 700 kms east to west from Lloydminster to Grande Prairie, roughly 560km north to south from Fort McMurray to Vermillion, and everywhere in between.

Dual Credit Pathways – In an effort to enhance the transition from high school to post-secondary education, Northwestern Polytechnic (NWP) began exploring strategic partnerships with local high schools. These collaborative discussions laid the foundation for the Dual Credit Pathways initiative, which, once fully operational in Summer 2025, will enable high school students to earn both secondary and post-secondary credits concurrently by enrolling in college-level courses delivered through NWP.

Free Speech Reporting Free Speech Policy Information As requested, Northwestern Polytechnic’s free speech policy can be found at the following URL: https://www.nwpolytech.ca/leadership/policies/display?ID=505 During the 2024-25 fiscal year, Northwestern Polytechnic made no amendments to its Free Speech Policy.

Cancelled Events During the reporting period, no events at Northwestern Polytechnic were cancelled for reasons related to free speech.

Free Speech-Related Complaints During the reporting period, no free speech-related complaints were received.

Board of Governors Training on For-profit Ventures Training opportunities for board members on for-profit ventures included an education session delivered by Paul Girgulis, from Field Law, in the January 30, 2025, board meeting on Land Trust. The presentation is attached and is entitled "Why a Trust?" This information was shared before the meeting, and board members continue to have access to it through the board package/information site. This session provided information to the Board on monetizing the surplus lands, the relationship and role of the Board of Governors to the trust, and why a trust would be beneficial.

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Financial Information Budget Variances Category

Budgeted Amount

Actual Amount

Variance

Variance Explanation

Government of Alberta grants

$ 46,423,320

$ 49,068,835

$

2,645,515

Government of Alberta grant variance due to increased Capital Maintenance Renewal spending as well as additional funding received under the Apprenticeship Learning grant and Northern Alberta Medical Program grant

Student tuition and fees

$ 16,140,416

$ 19,799,883

$

3,659,467

Higher than expected enrolment increase for international students

Investment income

$ 1,500,000

$ 8,087,090

$

6,587,090

Increase in realized investment gains

Self-generated Revenue Tuition and Mandatory Fees Revenue Source

Description

Annual Revenue

Domestic Tuition

All tuition related to domestic students

$

8,269,198

International Student Tuition

All tuition related to international students

$

8,185,530

Continuing Education Fees

All revenue related to Continuing Education including enrollment, parking, and registration fees

$

983,273

Other Mandatory Student Fees

Includes non-refundable application fees, MNIFs, nonrefundable tuition deposits, and testing fees

$

2,361,882

Subtotal

$

19,799,883

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Donations and Investment Income Revenue Source

Description

Annual Revenue

Cash Donations

restricted and unrestricted

$ 1,025,688

Donations In-Kind

restricted

$

Interest Earned

unrestricted

$ 1,836,074

Interest on Endowments

restricted

$

Realized Gains/Losses

unrestricted

$ 6,028,674

Unrealized Gains/Losses Other

148,388

222,342

$

-

unrestricted

$

355,159

Subtotal

$

9,616,326

Description

Annual Revenue

Research Grants Grant Source Not-for-Profit Organizations

$

-

$

825,984

Other Provincial Governments

$

-

Businesses

$

-

Other

$

370,318

Federal Government

Includes NSERC and PrairiesCan

Subtotal

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$ 1,196,302

13

Other Grants Grant Source

Description

Not-for-Profit Organizations

Annual Revenue $

-

$

764,504

Other Provincial Governments

$

-

Businesses

$

-

Other

$

144,099

$

908,603

Federal Government

PrairiesCan

Subtotal

Auxiliary / Ancillary Services Service

Description

Annual Revenue

Bookstores

Bookstore sales

$

Student Residences

Rental revenue, cancellation fees, and housing damages

$ 3,009,829

Parking Services

Parking lot pass sales

$

492,063

Laundry Facilities

Laundry facilities sales

$

40,436

Printing Services

Copying, duplicating, student printing revenue

$

95,554

Sports and Recreational Facilities

Rentals, game day food sales, memberships

$

162,116

Rental Services

Theatre rentals, classroom rentals, conference rentals

$

672,303

$

15,427

Catering Operations

258,611

Cafeterias

Cafeteria sales

$

Other

Theatre, course materials, other income

$ 1,858,588

Subtotal

$ 6,604,927

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Academic Enterprise Enterprise

Description

Annual Revenue

Continuing Education Programs

Non-Credit revenue

$

264,781

$

-

$

189,638

Breweries

$

-

Other

$

-

$

454,419

Culinary School Restaurants Agricultural Operations

Farm sales

Subtotal

Land Trusts and For-Profit Ventures Venture

Description of Primary Business and Areas of Operation

Ventures

Annual Revenue $

-

Subtotal

$

-

Description of Primary Business and Areas of Operation

Annual Revenue

Other Revenue Source Other Sources

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$

-

Subtotal

$

-

Grand Total

$38,580,460

15

Capital Report Top 3 Projects Project 1 - Grande Prairie Campus – Trades Expansion Total Project Cost

Start Date

End Date

$70.5 Million

Spring 2025

Fall 2029

Source

Amount

Percentage

Received to Date

Government of Alberta

$

70,551,793

100%

$

1,000,000

Government of Canada

$

-

0%

$

-

Institutional Funds

$

-

0%

$

-

Donations

$

-

0%

$

-

Foundations

$

-

0%

$

-

Industry

$

-

0%

$

-

Total

$

70,551,793

100%

$

1,000,000

Description The project scope includes the building of a new 50,000 square foot facility with six shops that will provide skilled trades training in welding, refrigeration, construction technology, and industry-specific needs.

These shops will allow 600 additional students to learn on our Grande Prairie campus annually.

Construction will be conducted using an integrated project delivery (IPD) method. The project also includes a new entrance into the campus and expansion of parking areas to accommodate increased student capacity.

Funding Sources

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Project 2 - Enterprise Resource Management (ERP) System Upgrade Description

Total Project Cost

Start Date

End Date

This project will support the purchase and implementation of a new ERP system that will replace outdated legacy systems. This is an essential information technology system will support NWP’s finance and human resource functions in Phase 1, and the student information system in Phase 2.

$6.5 Million

Fall 2024

Summer 2028

Source

Amount

Percentage

Received to Date

Government of Alberta

$

-

0%

$

-

Government of Canada

$

-

0%

$

-

Institutional Funds

$

6,500,000

100%

$

2,500,000

Donations

$

-

0%

$

-

Foundations

$

-

0%

$

-

Industry

$

-

0%

$

-

Total

$

6,500,000

100%

$

2,500,000

Funding Sources

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Project 3 - Grande Prairie Campus - Power Engineering & Instrumentation Labs Description

Total Project Cost

Start Date

End Date

This project supports the growth of NWP’s Power Engineering and Instrumentation programs through the development of new state-of-the-art learning spaces within M-Wing of the Douglas J Cardinal building on the Grande Prairie Campus. The investment will result in 60 additional spaces by adding capacity for 3rd and 4th-class power engineering programs and 3rd and 4th-period instrumentation.

$15.8 Million

Spring 2023

Summer 2025

Source

Amount

Percentage

Received to Date

Government of Alberta

$

11,300,000

Government of Canada

$

-

Institutional Funds

$

Donations

Funding Sources

71.50%

$

11,300,000

0%

$

-

3,000,000

19.00%

$

3,000,000

$

1,500,000

9.50%

$

1,500,000

Foundations

$

-

0%

$

-

Industry

$

-

0%

$

-

Total

$

15,800,000

100%

$

15,800,000

2024/25 Annual Report

18

All Other Projects Name and Description

Type

Total Cost

Current Status

Project 4 - Grande Prairie Campus – Millwright Expansion This project supports the expansion of the Millwright program by constructing an addition to the second floor that will enable all four periods to run concurrently.

Expansion

$

4,500,000

Construction

Project 5 - Grande Prairie Campus - The Side Family Centre for Entrepreneurial Excellence (CEE) This project includes an exterior envelope upgrade, a new front vestibule, landscaping, and interior renovations to the existing Trades and Technology building. The renovated space will be home to the Side Family CEE, NWP’s Continuing Education and Applied Research and Innovation departments.

Maintenance

$

4,850,000

Construction

Project 6 - Grande Prairie Campus – NAMP Anatomy Lab and Lecture Space This project is in partnership with the University of Alberta for the Northern Alberta Medical Program.

NWP’s main campus will see an expansion and development of an anatomy lab, while the Health Education Centre will have the shelled space built out into a new lecture space.

Expansion

$

7,670,000

Construction

Project 7 - Fairview Campus – Hemstock and Loggie Residence Modernization This project supports improving student life by modernizing the student residence units along with updating various building systems.

Maintenance

$

1,600,000

Construction

Project 8 - Fairview Campus – TIB Atrium Roof and Skylights This project will renew the glazing and roof systems that are at the end of life, which will improve thermal comfort and energy efficiency.

Maintenance

$

3,000,000

Design

Project 9 - Fairview Campus – Electrical Panel Replacements This project will see the replacement of electrical infrastructure that is part of the campus’ sub distribution system.

Maintenance

$

2,000,000

Design

2024/25 Annual Report

19

Project 10 - Fairview Campus – P9 Parking Lot Expansion This project will see the parking lot expanded to accommodate students, faculty, and staff.

Fairview Campus – P9 Parking Lot Expansion This project will see the parking lot expanded to allow for parking for students, faculty, and staff.

Expansion

$

1,000,000

Design

Project 11 - Fairview Campus – Replacement of inground Services This project will see the replacement of original underground services including water, sewer, and power infrastructure.

Maintenance

$

10,000,000

Planning

Project 12 - Fairview Campus – Sagitawa Residence Modernization This project supports improving student life by modernizing the student residence units along with updating various building systems.

Maintenance

$

1,600,000

Planning

$

36,220,000

Total

2024/25 Annual Report

20

Mandatory Non-instructional Fees (MNIF) Reporting MNIF Financial Summary Fee Name

Student Services Fee

Supported Goods / Services This fee is collected for the purpose of offering services to students.

These services include but are not limited to admissions, registration, advising, graduation, convocation, and access to student systems.

Budgeted Amount

$

574,859

Actual Amount

Variance Explanation

$

599,662

Higher-than-anticipated enrolment growth resulted in greater fee revenue collection. Fees are assessed per credit for credit programs, and per week for apprenticeship offerings.

265,791

The fee supports the ongoing maintenance and upgrades to administrative systems that support the Polytechnic's infrastructure.

320,487

Actual service fees and delivery requirements outpaced revenue collection.

This fee is also applied to university-level courses offered in collaboration with SAIT and the University of Alberta.

Technology Fee

The fee supports the ongoing maintenance and upgrades to administrative systems that support the Polytechnic's infrastructure.

Health & Wellness Fee

This fee supports the provision of recreation and wellness services, access to recreation and sport facilities, and the administrative support for these services, including varsity athletics, group classes, fitness activities, and special events.

2024/25 Annual Report

$

$

250,517

337,893

$

$

21

Mental Health Services Fee

This fee supports the provision of mental health services available to students, including on-campus counselling, 24/7 access to My Student Support Program, mental health events and workshops.

Library Fee

This fee supports the provision of services available through the Learning Commons, including but not limited to academic coaching, assistive technology, exam accommodations, skills building, testing services, and access to a wide range of print and digital learning resources.

Total

$

272,129

$

304,586

Higher-than-anticipated enrolment growth resulted in greater fee revenue collection. Fees are assessed per credit for credit programs, and per week for apprenticeship offerings.

Actual service fees and delivery requirements outpaced revenue collection.

$

287,758

$

280,428

$

1,723,156

$

1,770,954

Compliance Statement Northwestern Polytechnic did not introduce any MNIFs, and no existing MNIFs were substantively changed during the reporting period.

2024/25 Annual Report

22

Northwestern Polytechnic Consolidated Financial Statements March 31, 2025

Northwestern Polytechnic Year Ended March 31, 2025

Table of Contents

Consolidated Financial Statements Statement of Management Responsibility

1

Independent Auditor's Report

2

Consolidated Statement of Financial Position

5

Consolidated Statement of Operations

6

Consolidated Statement of Change in Net Financial Assets

7

Consolidated Statement of Remeasurement Gains and Losses

8

Consolidated Statement of Cash Flows

9

Notes to the Consolidated Financial Statements

10

Statement of Management Responsibility

The consolidated financial statements of Northwestern Polytechnic (Polytechnic), have been prepared by management in accordance with Canadian public sector accounting standards as described in note 2 to the consolidated financial statements. The consolidated financial statements present fairly the financial position of the Polytechnic as at March 31, 2025 and the results of its operations, remeasurement gains and losses, change in net financial assets and cash flows for the year then ended.

In fulfilling its responsibilities and recognizing the limits inherent in all systems, management has developed and maintains a system of internal control designed to provide reasonable assurance that the Polytechnic's assets are safeguarded from loss and that the accounting records are a reliable basis for preparation of the consolidated financial statements.

The Board of Governors is responsible for reviewing and approving the consolidated financial statements, and overseeing management's performance of its financial reporting responsibilities.

The Board of Governors carries out its responsibility for review of the consolidated financial statements principally through its Audit Committee. With the exception of the President, all members of the Audit Committee are not employees of the Polytechnic. The President is an ex-officio member of the committee and is ineligible to vote. The Audit Committee meets with management and the external auditors to discuss the results of audit examinations and financial reporting matters. The external auditors have full access to the Audit Committee, with and without the presence of management.

These consolidated financial statements have been reported on by the Auditor General of Alberta, the auditor appointed under the Post-secondary Learning Act. The Independent Auditor's report outlines the scope of the audit and provides the audit opinion on the fairness of presentation of the information in the consolidated financial statements.

[Original signed by V. Sheane, PhD, RN] Vanessa Sheane, PhD, RN President and CEO

[Original signed by T. Watts, MBA] Thomas Watts, MBA Vice President Administration

1

Independent Auditor’s Report To the Board of Governors of the Northwestern Polytechnic Report on the Consolidated Financial Statements

Opinion I have audited the consolidated financial statements of the Northwestern Polytechnic (the Group), which comprise the consolidated statement of financial position as at March 31, 2025, and the consolidated statements of operations, change in net financial assets, remeasurement gains and losses and cash flows for the year then ended, and notes to the consolidated financial statements, including a summary of significant accounting policies.

In my opinion, the accompanying consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Group as at March 31, 2025, and the results of its operations, its changes in net financial assets, its remeasurement gains and losses, and its cash flows for the year then ended in accordance with Canadian public sector accounting standards.

Basis for opinion I conducted my audit in accordance with Canadian generally accepted auditing standards. My responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Consolidated Financial Statements section of my report. I am independent of the Group in accordance with the ethical requirements that are relevant to my audit of the consolidated financial statements in Canada, and I have fulfilled my other ethical responsibilities in accordance with these requirements. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my opinion.

Other information Management is responsible for the other information. The other information comprises the information included in the Annual Report, but does not include the consolidated financial statements and my auditor’s report thereon. The Annual Report is expected to be made available to me after the date of this auditor’s report.

My opinion on the consolidated financial statements does not cover the other information and I do not express any form of assurance conclusion thereon.

In connection with my audit of the consolidated financial statements, my responsibility is to read the other information identified above and, in doing so, consider whether the other information is materially inconsistent with the consolidated financial statements or my knowledge obtained in the audit, or otherwise appears to be materially misstated.

2

If, based on the work I will perform on this other information, I conclude that there is a material misstatement of this other information, I am required to communicate the matter to those charged with governance.

Responsibilities of management and those charged with governance for the consolidated financial statements Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with Canadian public sector accounting standards, and for such internal control as management determines is necessary to enable the preparation of the consolidated financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the consolidated financial statements, management is responsible for assessing the Group’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless an intention exists to liquidate or to cease operations, or there is no realistic alternative but to do so.

Those charged with governance are responsible for overseeing the Group’s financial reporting process.

Auditor's responsibilities for the audit of the consolidated financial statements My objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes my opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Canadian generally accepted auditing standards will always detect a material misstatement when it exists.

Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements.

As part of an audit in accordance with Canadian generally accepted auditing standards, I exercise professional judgment and maintain professional skepticism throughout the audit. I also: • Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for my opinion.

The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

• Obtain an understanding of internal control relevant to the audit 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 Group’s internal control.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

• Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group’s ability to continue as a going concern. If I conclude that a material uncertainty exists, I am required to draw attention in my auditor’s report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify my opinion. My conclusions are based on the audit

3

• •

evidence obtained up to the date of my auditor’s report. However, future events or conditions may cause the Group to cease to continue as a going concern.

Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

Plan and perform the group audit to obtain sufficient appropriate audit evidence regarding the financial information of the entities or business units within the Group as a basis for forming an opinion on the group financial statements. I am responsible for the direction, supervision and review of the audit work performed for purposes of the group audit. I remain solely responsible for my audit opinion.

I communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that I identify during my audit.

[Original signed by W. Doug Wylie FCPA, FCMA, ICD.D] Auditor General May 28, 2025 Edmonton, Alberta

4

Northwestern Polytechnic Consolidated Statement of Financial Position As at March 31, 2025 2025 Financial assets excluding portfolio investments restricted for endowments Cash and cash equivalents (note 3)

$

2024

Portfolio investments - non-endowment (note 4)

4,774,391 52,943,571

Accounts receivable (note 5)

4,100,182

2,179,561

Inventories held for sale

390,612

259,530

Cash surrender value on life insurance (note 6)

179,086

166,890

62,387,842

59,288,093

11,362,347

7,035,437

Employee future benefit liabilities (note 9)

1,080,189

1,124,506

Debt (note 10) Deferred revenue (note 11)

9,732,518

10,370,075

18,148,452

18,003,927

Asset retirement obligations (note 14)

4,758,464

4,637,879

45,081,970

41,171,824

17,305,872

18,116,269

9,031,185

8,506,075

Net financial assets

26,337,057

26,622,344

Non-financial assets Tangible capital assets (note 12)

83,073,373

65,466,937

Liabilities Accounts payable and accrued liabilities (note 7)

Net financial assets excluding portfolio investments restricted for endowments Portfolio investments - restricted for endowments (note 4)

Inventories of supplies Prepaid expenses

Net assets before spent deferred capital contributions Spent deferred capital contributions (note 13)

$

8,519,671 48,162,441

109,937

83,641

1,480,198

1,104,912

84,663,508

66,655,490

111,000,565

93,277,834

44,176,331

34,687,606

Net assets (note 15)

$

66,824,234

$

58,590,228

Net assets are comprised of: Accumulated surplus

$

67,087,645

$

55,445,959

(263,411)

Accumulated remeasurement (losses) gains $

66,824,234

3,144,269 $

58,590,228

Contingent assets and contractual rights (notes 16 and 18) Contingent liabilities and contractual obligations (notes 17 and 19)

Approved by the Board of Governors: [Original signed by V. Sheane, PhD, RN] Vanessa Sheane, PhD, RN President & CEO

[Original signed by S. Miller] Shawna Miller Chair, Board of Governors

The accompanying notes are an integral part of these consolidated financial statements.

5

Northwestern Polytechnic Consolidated Statement of Operations Year Ended March 31, 2025 Budget (note 26) Revenues Government of Alberta grants (note 23)

$

Federal and other government grants (note 23)

2025

46,423,320

$

49,068,835

2024

$

51,202,108

990,000

2,104,905

1,040,922

Student tuition and fees

16,140,416

19,799,883

16,245,721

Sales of services and products

5,744,235

7,059,346

5,969,995

Donations and other grants

1,199,525

1,529,236

1,412,640

Investment income (note 24)

1,500,000

8,087,090

1,062,950

71,997,496

87,649,295

76,934,336

Expenses (note 20) Instruction

26,807,049

28,448,850

26,900,612

Academic and student support

12,437,728

13,956,974

12,273,308

Facility operations and maintenance

15,131,163

16,186,887

18,092,415

Institutional support

12,113,437

12,884,740

11,927,867

Ancillary services

3,498,739

3,863,915

3,588,881

Sponsored research

863,325

1,145,324

1,063,623

1,146,055

766,549

618,834

71,997,496 -

77,253,239 10,396,056

74,465,540 2,468,796

-

1,245,630

30,000

Annual surplus

-

11,641,686

2,498,796

Accumulated surplus, beginning of year

-

55,445,959

52,947,163

Special purpose

Annual operating surplus Endowment contributions (note 15)

Accumulated surplus, end of year (note 15)

$

-

$

67,087,645

$

55,445,959

The accompanying notes are an integral part of these consolidated financial statements.

6

Northwestern Polytechnic Consolidated Statement of Change in Net Financial Assets Year Ended March 31, 2025

Budget (note 26) Annual surplus

2025 $

Acquisition of tangible capital assets (note 12)

11,641,686

5,800,000

$

2,498,796

(23,538,037)

(4,971,562)

26,790

90,518

5,916,258

5,458,071

(11,449)

457,965

Proceeds from sale of tangible capital assets Amortization of tangible capital assets (note 12)

2024

(Gain) loss on disposal of tangible capital assets Increase in inventories of supplies

(26,296)

(46,313)

Increase in prepaid expenses

(375,286)

(625,523)

Increase (decrease) in spent deferred capital contributions

9,488,727

(231,464)

Increase (decrease) in accumulated remeasurement gains (losses)

(3,407,680)

3,659,631

(Decrease) increase in net financial assets

$

26,622,344

Net financial assets, beginning of year Net financial assets, end of year

(285,287) $

$

26,337,057

6,290,119

20,332,225 $

26,622,344

The accompanying notes are an integral part of these consolidated financial statements.

7

Northwestern Polytechnic Consolidated Statement of Remeasurement Gains and Losses Year Ended March 31, 2025 2025 Accumulated remeasurement gains (losses), beginning of year

$

3,144,269

2024 $

(515,362)

Unrealized gains (losses) attributable to: Quoted in active market financial instruments: Portfolio investments - non-endowment

Foreign exchange gain

(654,253)

2,994,196

290,676

598,806

Amounts reclassified to the consolidated statement of operations: Net realized (gains) losses on investments: Portfolio investments - non-endowment

(3,044,103)

66,629

(3,407,680)

3,659,631

Accumulated remeasurement (losses) gains, end of year

(263,411)

3,144,269

Accumulated remeasurement (losses) gains are comprised of: Portfolio investments - non-endowment

(554,087)

2,545,463

290,676

598,806

Change in accumulated remeasurement gains (losses)

Foreign exchange gain $

(263,411)

$

3,144,269

The accompanying notes are an integral part of these consolidated financial statements.

8

Northwestern Polytechnic Consolidated Statement of Cash Flows Year Ended March 31, 2025

Operating transactions Annual surplus

$

2025

2024

11,641,686 $

2,498,796

Add (deduct) non-cash items: Unrealized (gain) loss on cash surrender value of life insurance Amortization of tangible capital assets (note 12) Assets received through in-kind donations (note 12)

Gain on disposal of portfolio investments

(12,196)

36,513

5,916,258

5,458,071

(218,001)

(116,999)

(8,628,999)

(693,116)

(Gain) loss on disposal of tangible capital assets

(11,449)

457,965

(3,377,133)

(2,900,527)

Change in employee future benefit liabilities

(44,317)

(46,885)

Accretion of asset retirement obligation (note 14)

120,585

77,494

5,386,434

4,771,312

Expended capital contributions recognized as revenue (note 13)

Change in non-cash items: (Increase) decrease in accounts receiveable

(1,920,621)

798,946

(Increase) decrease in inventories held for resale

(131,082)

55,730

Increase in accounts payable and accrued liabilities

4,326,909

1,342,691

Increase in deferred revenue, less unrealized deferred (gains) losses

1,767,060

1,098,947

-

1,907

Increase in asset retirement obligation (note 14) Increase in inventories of supplies

(26,296)

(46,313)

Increase in prepaid expenses

(375,286)

(625,523)

9,027,118

7,397,697

(43,647,249)

(16,792,702)

41,939,794

10,741,051

(1,707,455)

(6,051,651)

Cash provided by operating transactions Investing transactions Purchase of portfolio investments

Proceeds on sale of portfolio investments Cash applied to investing transactions Financing transactions Debt - repayment

(637,557)

(610,647)

12,865,859

2,669,064

12,228,302

2,058,417

(23,320,036)

(4,854,562)

26,791

90,517

Cash applied to capital transactions

(23,293,245)

(4,764,045)

Decrease in cash and cash equivalents Cash and cash equivalents at beginning of year

(3,745,280) 8,519,671

(1,359,582) 9,879,253

4,774,391 $

8,519,671

Funding received for capital contributions (note 13) Cash provided by financing transactions Capital transactions Acquisition of tangible capital assets, less in-kind donations

Proceeds on sale of tangible capital assets

Cash and cash equivalents at end of year

$

The accompanying notes are an integral part of these consolidated financial statements.

9

Northwestern Polytechnic Notes to the Consolidated Financial Statements Year Ended March 31, 2025

1.

Authority and purpose

The Board of Governors of Northwestern Polytechnic is a corporation which manages and operates Northwestern Polytechnic ("the Polytechnic") under the Post-secondary Learning Act (Alberta). All members of the Board of Governors are appointed by either the Lieutenant Governor in Council or the Minister of Advanced Education, with the exception of the President, who is an ex-officio member.

Under the Post-secondary Learning Act the Polytechnic is a polytechnic institute offering mandated credentials and programs. The Polytechnic is a registered charity, and under section 149 of the Income Tax Act (Canada), is exempt from the payment of income tax.

2.

Summary of significant accounting policies and reporting practices

These consolidated financial statements have been prepared in accordance with Canadian public sector accounting standards (PSAS) as recommended by the Chartered Professional Accountants of Canada (CPA Canada). Significant aspects of the accounting policies adopted by the Polytechnic are as follows: a)

Use of estimates

The measurement of certain assets, liabilities, revenues and expenses is contingent upon future events; therefore, the preparation of these consolidated financial statements requires the use of estimates, which may vary from actual results. The Polytechnic's management uses judgement to determine such estimates. Employee future benefit liabilities, amortization of tangible capital assets, asset retirement obligations, allowance for doubtful accounts, fair values for recognition of in-kind donations, and the revenue recognition for expended capital are the most significant items based on estimates. In management's opinion, the resulting estimates are within reasonable limits of materiality and are in accordance with the significant accounting policies summarized below. These significant accounting policies are presented to assist the reader in evaluating these consolidated financial statements and, together with the following notes, should be considered an integral part of the consolidated financial statements.

There is measurement uncertainty related to asset retirement obligations as it involves estimates in determining settlement amount, discount rates and timing of settlement. Changes to any of these estimates and assumptions may result in changes to the obligation. b)

Valuation of financial assets and liabilities

The Polytechnic's financial assets and liabilities are measured as follows:

Financial Statement Component

Measurement

Cash and cash equivalents

Cost

Portfolio investments

Fair value

Inventories held for sale

Lower of cost or net realizable value

Accounts receivable

Lower of carrying value or net realizable value

Cash surrender value of life insurance

Cost

Accounts payable and accrued liabilities

Cost

Asset retirement obligations

Amortized cost

Debt

Amortized cost

10

Northwestern Polytechnic Notes to the Consolidated Financial Statements Year Ended March 31, 2025

Unrealized gains and losses from changes in the fair value of financial assets and liabilities are recognized in the consolidated statement of remeasurement gains and losses. When the restricted nature of a financial instrument and any related changes in fair value create a liability, unrealized gains and losses are recognized as deferred revenue.

All financial assets are tested annually for impairment. When financial assets are impaired, impairment losses are recognized in the consolidated statement of operations. A write-down of a portfolio investment to reflect a loss in value that is other than temporary is not reversed for a subsequent increase in value.

For financial assets and liabilities measured using amortized cost, the effective interest rate method is used to determine interest revenue or expense. Transaction costs are a component of cost for financial instruments measured using cost or amortized cost.

Transaction costs are expensed for financial instruments measured at fair value. Investment management fees are expensed as incurred. The purchase and sale of cash and cash equivalents and portfolio investments are accounted for using trade-date accounting.

The Polytechnic does not use foreign currency contracts or any type of derivative financial instruments for trading or speculative purposes. Management evaluates contractual obligations for the existence of embedded derivatives and elects to either designate the entire contract for the fair value measurement or separately measure the value of the derivative component when characteristics of the derivative are not closely related to the economic characteristics and risks of the contract itself. Contracts to buy or sell non-financial items for the Polytechnic's normal purchase, sale or usage requirements are not recognized as financial assets or liabilities. The Polytechnic does not have any embedded derivatives. c)

Revenue recognition

All revenues are reported on the accrual basis of accounting. Cash received for which goods or services have not been provided by year end is recognized as deferred revenue.

Government grants, non-government grants and donations Government transfers are referred to as government grants.

Restricted grants and donations are recognized as deferred revenue if the terms for the use, or the terms along with the Polytechnic's actions and communications as to the use, create a liability. These grants and donations are recognized as revenue as the terms are met. If the grants and donations are used to acquire or construct tangible capital assets, revenue will be recognized over the useful life of the tangible capital asset.

Government grants without terms for the use of the grant are recognized as revenue when the Polytechnic is eligible to receive the funds. Unrestricted non-government grants and donations are recognized as revenue in the year received or in the year the funds are committed to the Polytechnic if the amount can be reasonably estimated and collection is reasonably assured.

In-kind donations of services, materials and tangible capital assets are recognized at fair value when such value can reasonably be determined. Transfers of tangible capital assets from related parties are recognized at the carrying value.

Grants and donations related to land Grants and donations for the purchase of land are recognized as deferred revenue when received, and recognized as revenue when the land is purchased.

The Polytechnic recognizes in-kind contributions of land as revenue at the fair value of the land when a fair value can be reasonably determined. When the Polytechnic cannot determine the fair value, it recognizes such in-kind contributions at nominal value.

11

Northwestern Polytechnic Notes to the Consolidated Financial Statements Year Ended March 31, 2025

Sales of services and product Sales of services and products represents revenues from non-tuition related services and/or products such as parking fees, locker rental fees, one day workshops, media production, laundry revenues, conferences, amenities fees, recreation program registration fees, membership fees, food services and related commissions, vending revenue, gift certificates, book sales, rental income, theatre ticket sales, fine and surcharges, non-refundable application fees, interest revenue, sponsorship revenue, other administrative charges.

These revenues, with the exception of parking fines and surcharges, non-refundable application fees, cancellation fees and some administrative fees, are considered revenues arising from exchange transactions. Revenue from these transactions is recognized when or as the Polytechnic fulfils its performance obligation(s) and transfers control of the promised goods and services to the payor. If the performance obligation is outstanding at year-end, the remaining revenue is deferred.

Revenue without performance obligations is a non-exchange transaction with a payor and is recognized when the Polytechnic has the authority to claim or retain an inflow of economic resources and identifies a past transaction or event that gives rise to an asset.

Student tuition and fees Student tuition and fees are charged for the programs offered by the Polytechnic such as program registration and application fees, course delivery fees, student ID fees and laboratory fees.

These fees are considered revenue arising from exchange transactions with performance obligations. The Polytechnic recognizes revenue from program registration and application fees when received as the performance obligations of registering the student are met when paid. Revenue from course delivery and laboratory fees are recognized over the course of each academic period/semester as the Polytechnic fulfils its performance obligations by delivering the courses.

If the performance obligation is outstanding at year-end, the remaining revenue is deferred. Revenue from student ID fees is recognized when the performance obligation to provide the student ID cards to the student has been met.

Endowment contributions Endowment contributions are recognized as revenue in the consolidated statement of operations in the year in which they are received, and are required by donors to be maintained intact in perpetuity.

Investment income Investment income includes dividends, interest income, and realized gains and losses on the sale of portfolio investments. Investment income from restricted grants and donations is recognized as deferred revenue when the terms for use create a liability, and is recognized as investment income when the terms of the grant or donations are met.

The endowment spending allocation portion of investment income earned by the endowments is recognized as deferred revenue when the terms for the use by the endowment create a liability. Realized investment income allocated to endowment balances for the preservation of endowment capital purchasing power is recognized in the consolidated statement of operations.

12

Northwestern Polytechnic Notes to the Consolidated Financial Statements Year Ended March 31, 2025

d)

Endowments

Endowments consist of externally restricted donations received by the Polytechnic and internal allocations from the Polytechnic's Board of Governors, the principal of which is required to be maintained intact in perpetuity.

Investment income (excluding unrealized income) earned on endowments must be used in accordance with the various purposes established by the donors or the Board of Governors. Benefactors, as well as the Polytechnic policy, stipulate that the economic value of the endowments must be protected by limiting the amount of income that may be expended.

Under the Post-secondary Learning Act, the Polytechnic has the authority to alter the terms and conditions of endowments to enable: 

Income earned by the endowments to be withheld from distribution to avoid fluctuations in the amounts distributed, generally to regulate the distribution of income earned by the endowments.



Encroachment on the capital of the endowments to avoid fluctuations in the amounts distributed and generally to regulate the distribution of investment income earned by the endowments if, in the opinion of the Board of Governors, the encroachment benefits the Polytechnic and does not impair the long-term value of the fund.

In any year, if the investment income earned on endowments is insufficient to fund the spending allocation, the spending allocation is funded from the accumulated capitalized investment income. However, for individual endowment funds without sufficient accumulated capitalized income, endowment principal is used in that year. The amount is expected to be recovered by future investment income.

Endowment contributions, matching contributions, and associated investment income allocated for the preservation of endowment capital purchasing power are recognized in the consolidated statement of operations in the period in which they are received. e)

Inventories

Inventories held for sale are valued at the lower of cost and expected net realizable value and are determined using the first-in, first-out basis. Inventories of supplies are valued at the lower of cost or replacement cost.

13

Northwestern Polytechnic Notes to the Consolidated Financial Statements Year Ended March 31, 2025

f)

Tangible capital assets

Tangible capital assets are recognized at cost, which includes amounts that are directly related to the acquisition, design, construction, development, improvement or betterment of the assets and costs associated with asset retirement obligations. Cost includes overhead directly attributable to construction and development, as well as interest costs that are directly attributable to the acquisition or construction of the asset. Work-in-progress, which includes facilities construction and improvement projects and development of information systems, is not amortized until after the project is complete and the asset is in service.

All leases are recorded in the financial statements as either a capital or operating lease. Any lease which transfers substantially all the benefits and risks of ownership associated with the leased asset are accounted for as leased tangible capital assets.

Capital lease assets and liabilities are recognized at the lesser of the present value of the future minimum lease payments and the asset's fair market value at the inception of the lease, excluding executor costs (e.g. insurance, maintenance costs, etc.). The discount rate used to determine the present value of the lease payments is the lower of the Polytechnic's rate for incremental borrowing or the interest rate implicit in the lease. As at March 31, 2025 the Polytechnic did not hold any capital leases.

The cost, less residual value, of tangible capital assets, excluding land, is amortized on a straight-line basis over the estimated useful lives as follows: Buildings and site improvements

25-40 years

Furnishings, equipment and systems

5-15 years

Learning resources

10 years

Tangible capital asset write-downs are recognized when conditions indicate they no longer contribute to the Polytechnic's ability to provide services, or when the value of future economic benefits associated with the tangible capital assets are less than their net book value. Net write-downs are recognized as expenses.

Works of art, historical treasures and collections are expensed when acquired and not recognized as tangible capital assets because a reasonable estimate of the future benefits associated with such property cannot be made. g)

Foreign currency translation

Transaction amounts denominated in foreign currencies are translated into their Canadian dollar equivalents at exchange rates prevailing at the transaction dates. Carrying values of monetary assets and liabilities and non-monetary items included in the fair value category reflect the exchange rates at the consolidated statement of financial position date. Unrealized foreign exchange gains and losses are recognized in the consolidated statement of remeasurement gains and losses.

In the period of settlement, foreign exchange gains and losses are reclassified to the consolidated statement of operations, and the cumulative amount of remeasurement gains and losses is reversed in the consolidated statement of remeasurement gains and losses.

14

Northwestern Polytechnic Notes to the Consolidated Financial Statements Year Ended March 31, 2025

h)

Employee future benefits

Pension The Polytechnic participates with other employers in the Local Authorities Pension Plan (LAPP). This pension plan is a multiemployer defined benefit pension plan that provides pensions for the Polytechnic's participating employees based on years of service and earnings.

The Polytechnic does not have sufficient plan information on the LAPP to follow the standards for defined benefit accounting, and therefore follows the standards for defined contribution accounting. Accordingly, pension expense recognized for the LAPP is comprised of employer contributions to the plan that are required for its employees during the year, which are calculated based on actuarially predetermined amounts that are expected to provide the plan's future benefits.

Supplementary retirement plans (SRP) The Polytechnic provides a non-contributory defined benefit supplementary retirement plan for executive members based on years of service and earnings. The expense for this plan is actuarially determined using the projected benefit method prorated on service. Actuarial gains or losses on the accrued benefit obligation are amortized over the expected average remaining service life.

Accumulating non-vesting sick leave liability Sick leave benefits accumulate with employee service and are provided by the Polytechnic to all employee groups as defined by employment agreements to cover illness related to absences that are outside of long-term disability coverage. The maximum accumulated sick leave is up to 81 days depending on the employee group. The liability for the accumulated non-vested sick pay benefit is actuarially determined with an excess utilization model. The cost of accumulating non-vesting sick benefits are expensed as the benefits are earned.

Long-term disability (LTD) The cost of providing non-vesting and non-accumulating employee future benefits for compensated absences under the Polytechnic's long-term disability plans is charged to expense in full when the event occurs which obligates the Polytechnic to provide the benefits. The cost of these benefits is actuarially determined using the accumulated benefit method, a market interest rate and administration's best estimate of the retirement ages of employees, expected health care costs and the period of employee disability. Actuarial gains or losses on the accrued benefit obligation are amortized over the average expected period the benefits will be paid.

Leave plans The leave plans allow employees to make contributions of their salary towards a year of leave. In the year of leave, the Polytechnic makes a one-time contribution of a portion of the employee's salary and continues to pay the employee's benefits.

The cost of these benefits is based on actual costs once the leave plan is approved and commences. The employee's contributions and interest are held by the Polytechnic and recorded as a liability until the leave period when they are paid to the employee, along with the Polytechnic's contributions.

Maternity and parental leave The Polytechnic offers a Supplemental Employment Insurance Benefit (SEIB) plan to all employee groups. During the leave, the Polytechnic makes supplemental payments for a portion of the employee's salary and continues to pay the employee's benefits.

The cost of these benefits is based on actual costs once the employee's SEIB plan is approved.

15

Northwestern Polytechnic Notes to the Consolidated Financial Statements Year Ended March 31, 2025

i)

Basis of consolidation

The consolidated financial statements include the financial position and results of the Northwestern Polytechnic Foundation ("the Foundation"). The Foundation's Board of Directors is made up of individuals from the Board of Governors from the Polytechnic.

The Polytechnic is the sole beneficiary of the activities of the Foundation.

The Foundation operates under the Alberta Companies Act and is a registered charity for income tax purposes. The Foundation's activities are directed to support the advancement of the Polytechnic. All transactions between the Polytechnic and the Foundation are eliminated upon consolidation. The accounts of the consolidated entity is consolidated using the line-by-line method. j)

Liability for contaminated sites Contaminated sites are a result of contamination of a chemical, organic, or radioactive material or live organism that exceeds an environmental standard, being introduced into soil, water or sediment. It does not include airborne contaminants. The Polytechnic recognizes a liability for remediation of contaminated sites when the following criteria have been met:     

an environmental standard exists; there is evidence that contamination exceeds an environmental standard; the Polytechnic is directly responsible or accepts responsibility; it is expected that future economic benefits will be given up; and a reasonable estimate of the amount can be made.

A liability for a contaminated site may arise from operations that are either considered in productive use or no longer in productive use when environmental standards are exceeded. It will also arise when an unexpected event occurs resulting in contamination that exceeds an environmental standard. The Polytechnic has determined that a contaminated site liability does not exist at March 31, 2025.

16

Northwestern Polytechnic Notes to the Consolidated Financial Statements Year Ended March 31, 2025

k)

Asset retirement obligations

Asset retirement obligations are legal obligations associated with the retirement of tangible capital assets. The tangible capital assets include but are not limited to assets in productive use, assets no longer in productive use, and leased tangible capital assets. Asset retirement activities include all activities relating to an asset retirement obligation. These may include, but are not limited to:    

decommissioning or dismantling a tangible capital asset that was acquired, constructed or developed; remediation of contamination of a tangible capital asset created by its normal use; post-retirement activities such as monitoring; and constructing other tangible capital assets to perform post-retirement activities.

A liability for an asset retirement obligation is recognized when, as at the financial statement reporting date, all of the following criteria are met:    

there is a legal obligation to incur retirement costs in relation to a tangible capital asset; the past transaction or event giving rise to the liability has occurred; it is expected that future economic benefits will be given up; and a reasonable estimate of the amount can be made.

When a liability for asset retirement obligation is recognized, asset retirement costs related to the recognized tangible capital assets in productive use are capitalized by increasing the carrying amount of the related asset and are amortized over the estimated useful life of the underlying tangible capital asset. Asset retirement costs related to unrecognized tangible capital assets and those not in productive use are expensed.

When the present value technique is used to measure a liability, the liability is adjusted for the passage of time and is recognized as accretion expense in the consolidated statement of operations. This expense ensures that the time value of money is considered when recognizing outstanding liabilities at each reporting date. When a present value technique is not used, the asset retirement obligation is measured at the current estimated cost to settle or otherwise extinguish the liability. The Polytechnic measures all asset retirement obligations at their current estimated cost to settle as the estimated settlement date of these obligations is indeterminable.

17

Northwestern Polytechnic Notes to the Consolidated Financial Statements Year Ended March 31, 2025

l)

Expense by function

The Polytechnic uses the following categories of functions on its consolidated statement of operations: Instruction Instruction is the purposeful direction of the learning process and is one of the major teacher class activities along with planning and management of existing curriculum. This is the primary function of the institution and includes all activities, salaries and benefits and materials and supplies that provide learning to the students.

Academic and student support Expenses relating to activities directly supporting the academic functions of the Polytechnic. This includes items such as libraries, galleries and expenses for Deans. Academic and student support also include expenses for centralized functions that support individual students or groups of students.

Facility operations and maintenance Expenses relating to maintenance and renewal of facilities that house the teaching, research and administrative activities within the Polytechnic. These include utilities, facilities administration, building maintenance, custodial services, landscaping and grounds keeping, as well as major repairs and renovations.

Institutional support Expenses for centralized Polytechnic-wide administration including executive management, public relations, alumni relations and development, corporate insurance premiums, corporate finance, human resources, centralized core computing, network and data communications.

Ancillary services Expenses relating to services and products provided to the Polytechnic community and to external individuals and organizations.

Services include the Polytechnic's bookstore, parking services, food services and student residences.

Sponsored research Expenses for all sponsored research activities specifically funded by restricted grants and donations.

Special purpose Expenses for fundraising and donations related to the Foundation, and other programs specifically funded by restricted grants and donations. m)

Funds and reserves

Certain amounts, as approved by the Board of Governors, are set aside in accumulated operating surplus for future operating and capital purposes. Transfers to and from funds and reserves are an adjustment to the respective fund when approved.

18

Northwestern Polytechnic Notes to the Consolidated Financial Statements Year Ended March 31, 2025

n)

Future changes in accounting standards The Polytechnic will adopt the following new conceptual framework and accounting standard approved by the Public Sector Accounting Board:

Effective April 1, 2026, The Conceptual Framework for Financial Reporting in the Public Sector. The Conceptual Framework is the foundation for the public sector financial reporting standards. It replaces the conceptual aspects of Section PS 1000, Financial Statement Concepts, and Section PS 1100, Financial Statement Objectives. The conceptual framework highlights considerations fundamental for the consistent application of accounting issues in the absence of specific standards.

Effective April 1, 2026, PS 1202, Financial Statement Presentation. Section PS 1202 sets out general and specific requirements for the presentation of information in general purpose financial statements. The financial statement presentation principles are based on the concepts within the Conceptual Framework.

The Polytechnic is currently assessing the impact of the new conceptual framework and standard, and the extent of the impact of their adoption on the consolidated financial statements has not yet been determined.

3.

Cash and cash equivalents

Cash and cash equivalents consist of the following:

Cash on deposit

$

2025

2024

4,774,391 $

8,519,671

Cash balances earn a rate of return of Prime less 1.8% (2024 - Prime less 1.8%).

The Polytechnic holds a $4 million revolving line of credit that has no draws on it at March 31, 2025. The line of credit bears interest at Prime less 0.25% per annum.

4.

Portfolio investments

Portfolio investments - non-endowment

$

Portfolio investments - endowment $

2025

2024

52,943,571 $

48,162,441

9,031,185

8,506,075

61,974,756 $

56,668,516

19

Northwestern Polytechnic Notes to the Consolidated Financial Statements Year Ended March 31, 2025

The composition of portfolio investments measured at fair value is as follows:

2025 Fixed income Canadian bonds

Level 1

$

Level 2

Level 3

Total

- $

15,814,985 $

-

-

13,792,825

-

13,792,825

Equities Canadian equities

14,952,926

-

-

14,952,926

Foreign equities

17,414,020

-

-

17,414,020

- $

61,974,756

Global fixed income mutual funds

Total portfolio investments

$

32,366,946 $ 52 %

2024 Fixed income Canadian bonds

Level 1

$

29,607,810 $ 48 %

Level 2

$

15,814,985

100 %

-%

Level 3

Total

- $

13,327,135 $

-

-

11,927,405

-

11,927,405

Equities Canadian equities

13,662,148

-

-

13,662,148

Foreign equities

17,751,828

-

-

17,751,828

- $

56,668,516

Global fixed income mutual funds

Total portfolio investments

$

31,413,976 $ 55 %

25,254,540 $ 45 %

-%

$

13,327,135

100 %

The fair value measurements are those derived from:   

Level 1: Quoted prices in active markets for identical assets; Level 2: Fair value measurements are those derived from inputs other than quoted prices included with Level 1 that are observable for the assets, either directly (i.e as prices) or indirectly (i.e derived from prices); Level 3: Fair value measurements are those derived from valuation techniques that include inputs for the assets that are not based on observable market data (unobservable inputs).

20

Northwestern Polytechnic Notes to the Consolidated Financial Statements Year Ended March 31, 2025

5.

Accounts receivable

Accounts receivable consists of the following:

Trade receivables

$

Accrued receivables Allowance for doubtful accounts $ 6.

2025

2024

2,733,327 $

2,050,034

1,369,200

132,232

(2,345)

(2,705)

4,100,182 $

2,179,561

Cash surrender value of life insurance

The Foundation is the assignee and beneficiary of life insurance policies with cash surrender values totalling $179,086 (2024 - $166,890).

7.

Accounts payable

Accounts payable consists of the following:

Trade payables

$

2024

7,089,261 $

3,526,496

Accrued liabilities

1,388,369

719,796

Vacation liability

2,884,717

2,789,145

11,362,347 $

7,035,437

$ 8.

2025

Financial risk management

The Polytechnic is exposed to a variety of financial risks on its financial instrument holdings, including market price risk, foreign currency risk, liquidity risk, credit risk, and interest rate risk. To manage investment risks, the Polytechnic invests in a diversified portfolio of investments that is guided by established investment policies that outline risk and return objectives. The long term objectives of the Polytechnic's investment policies are to achieve a long term real rate of return in excess of fees and expenses and maintain the real value of the fund. To manage interest rate risks, the Polytechnic utilizes fixed-rate agreements.

Market price risk The Polytechnic is exposed to market price risk - the risk that the value of the financial instrument will fluctuate as a result of changes in market prices, whether those changes are caused by factors specific to the individual security, its issuer, or general market factors affecting all securities. To manage this risk, the Polytechnic has established an investment policy with a target asset mix that is diversified by asset class with individual issuer limits and is designed to achieve a long-term rate of return that in real terms equals or exceeds total endowment expenditures with an acceptable level of risk.

The Polytechnic assesses its portfolio sensitivity to a percentage increase or decrease in the market prices. The sensitivity rate is determined using the historical annualized standard deviation for the total portfolio over a five-year period as determined by a consulting report. At March 31, 2025 if market prices had a 6.18% (2024 - 7.86%) increase or decrease, with all other variables held constant, the increase or decrease in accumulated remeasurement gains and losses and endowment net assets for the year would be $2,979,122 (2024 - $3,515,082).

21

Northwestern Polytechnic Notes to the Consolidated Financial Statements Year Ended March 31, 2025

Foreign currency risk Foreign currency risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. The Polytechnic is exposed to foreign exchange risk on investments that are denominated in foreign currencies and uses foreign currency investment limits to manage this risk. The Polytechnic does not use foreign currency forward contracts or any other type of derivative financial instrument for trading or speculative purposes. The Polytechnic's exposure to foreign exchange risk due to daily operating activities is very low due to minimal business activities conducted in a foreign currency.

The impact of a change in value of the Canadian dollar against the foreign currency portfolio investments is as follows:

Fair Value

2.5% decrease

1.0% decrease

1.0% increase

2.5% increase

$

17,414,020 $

16,978,669 $

17,239,880 $

17,588,160 $

17,849,370

$

17,751,828 $

17,308,032 $

17,574,310 $

17,929,346 $

18,195,624

2025 Foreign currency equities 2024 Foreign currency equities

The Global fixed income mutual funds are denominated in Canadian dollars, therefore the foreign currency risk exposure is indirect.

Credit risk Counterparty credit risk is the risk of loss arising from the failure of a counterparty to fully honour its financial obligations with the Polytechnic. The Polytechnic is exposed to credit risk on investments and has established an investment policy with required minimum credit quality standards and issuer limits to manage this risk. The credit risk from accounts receivable is low as the majority of balances are due from government agencies and corporate sponsors.

The credit risks on investments held as bonds are as follows: 2025 Credit Rating

$

%

$

%

3,944,928

25 % $

3,515,459

27 %

AA

7,134,184

45 %

2,051,610

15 %

A

3,927,127

25 %

7,760,066

58 %

BBB

808,746

5%

-

15,814,985

100.00 % $

AAA

$

2024

$

13,327,135

100.00 %

Liquidity risk Liquidity risk is the risk that the Polytechnic will encounter difficulty in meeting obligations associated with its financial liabilities. The Polytechnic maintains a portfolio of investments that are highly liquid and readily convertible to cash, to manage short-term cash requirements.

22

Northwestern Polytechnic Notes to the Consolidated Financial Statements Year Ended March 31, 2025

Interest rate risk Interest rate risk is the risk to the Polytechnic's earnings that arise from the fluctuations in interest rates and the degree of volatility of these rates. The risk is managed by investment policies that limit the term to maturity of certain fixed income securities that the Polytechnic holds. If interest rates increased by 1% (2024 - 1%), across all points of the yield curve and all other variables are held constant, the potential loss in fair value to the Polytechnic would be approximately 7.14%, of total investments (2024 - 7.20%). Interest risk on the Polytechnic's debt is managed through fixed-rate agreements with the Department of Treasury Board and Finance. (note 10) The maturity and effective market yield of interest bearing investments are as follows: 2025

Less than 1 year Canadian bonds

$

Greater than 5 years

1-5 years - $

2,688,144 $

Average effective market yield

13,126,841

3.81 %

2024

Less than 1 year Canadian bonds 9.

$

Greater than 5 years

1-5 years - $

764,925 $

Average effective market yield

12,562,209

3.44 %

Employee future benefit liabilities

Employee future benefits liabilities are comprised of the following: 2025

Academic staff Long-term disability

$

Support staff

2024

Total

Academic staff 154,191 $

Support staff

Total

147,285 $

500,347 $ 647,632 $

523,806 $

677,997

Sick leave

115,680

98,607

214,287

-

223,387

223,387

Leave plans

133,282

54,236

187,518

80,246

24,245

104,491

Maternity and paternity leave

-

25,261

25,261

51,148

-

51,148

Supplementary retirement plans

-

5,491

5,491

-

67,482

67,482

838,920 $

1,124,506

$

396,247 $

683,941 $1,080,189 $

285,585 $

23

Northwestern Polytechnic Notes to the Consolidated Financial Statements Year Ended March 31, 2025

a)

Defined benefit plan accounted for on a defined benefit basis

Long-term disability (LTD) The Polytechnic provides long-term disability (academic and support staff) defined benefits to its employees. An actuarial valuation for these benefits was carried out as at March 31, 2025. Benefits for all employees approved by the group benefits provider for long-term disability include the payment of monthly benefits until approval ceases or the age of 65, and the employee and employer Local Authority Pension Plan (LAPP) contributor for a total of five years for members of the Academic Staff Association (ASA).

Sick leave Sick leave benefits are provided by the Polytechnic to all employee groups and accumulate with employee service, as defined by employment agreements, to cover illness related to absences that are outside of long-term disability coverage. The maximum accumulated sick leave is up to 81 days depending on the employee group. An actuarial valuation of these benefits was carried out as at March 31, 2025 and March 31, 2024.

Supplementary retirement plans (SRP) The Polytechnic provides a non-contributory defined benefit supplementary retirement benefit to executives. An actuarial valuation of these benefits was carried out as at March 31, 2024 and the results were used to calculate the March 31, 2025 liability.

24

Northwestern Polytechnic Notes to the Consolidated Financial Statements Year Ended March 31, 2025

The expense and financial position of these defined benefit plans are as follows: 2025 Sick leave (1)

LTD Expense Current service cost

SRP (1)

Total

LTD

Sick leave (1)

SRP (1)

Total

43,699 $

30,216 $

4,071 $

77,986 $

38,573 $

22,705 $

4,076 $

65,354

Interest cost

21,798

6,629

2,387

30,814

19,686

7,341

5,412

32,439

Amortization of net actuarial (gain) loss

(37,671)

(13,368)

1,435

(49,604)

(34,105)

(11,349)

1,603

(43,851)

27,826 $

23,477 $

7,893 $

59,196 $

24,154 $

18,697 $ 11,091 $

Total Expense

$

2024

$

2025 LTD

Sick leave(1)

53,942

2024 SRP (1)

Total

LTD

Sick leave (1)

SRP (1)

Total

Financial Position Accrued benefit obligation: Balance, beginning of year $

461,372 $

140,748 $ 82,678 $ 684,798 $ 418,556 $

154,907 $ 139,014 $

712,477

Current service cost

43,699

30,216

22,705

65,354

4,071

77,986

38,573

4,076

Interest cost

21,798

6,629

2,387

30,814

19,686

7,341

5,412

32,439

Benefits paid

(58,191)

(32,578)

(69,884)

(160,653)

(55,424)

(23,412)

(69,884)

(148,720)

Actuarial (gain) loss

314,682

4,283

-

318,965

39,981

(20,793)

4,060

23,248

Balance, end of year Unamortized net actuarial gain (loss)

783,360

149,298

19,252

951,910

461,372

140,748

82,678

684,798

(135,728)

64,989

(13,761)

(84,500)

216,625

82,639

(15,196)

284,068

647,632 $

214,287 $

Accrued benefit liability

$

5,491 $ 867,410 $ 677,997 $

223,387 $ 67,482 $

968,866

(1)The Polytechnic plans to use its working capital to finance these future obligations.

The accrued benefit liability does not include obligations under the leave plans, maternity and parental leave benefits as described in section c.

25

Northwestern Polytechnic Notes to the Consolidated Financial Statements Year Ended March 31, 2025

The significant actuarial assumptions used to measure the accrued benefit obligations are as follows: 2025

2024

LTD

Sick leave

SRP

LTD

Sick leave

SRP

Accrued benefit obligation: Discount rate

4.35%

4.20%

5.00%

4.80%

4.75%

5.00%

Long-term average compensation increase

N/A

3.00%

2.75% per year

N/A

3.00%

2.75% per year

Benefit cost: Discount rate

4.35%

4.20%

5.00%

4.80%

4.75%

5.20%

Long-term average compensation increase

N/A

3.00%

2.75% per year

N/A

3.00%

2.75% per year

Alberta inflation (long-term)

N/A

N/A

2.00%

N/A

N/A

2.00%

Estimated average remaining service life(1)

11 years

10.3 years

11.8 years

10.2 years

10.3 years

11.8 years

(1)SRP actuarial gains and losses are amortized over the remaining contract terms of the participants.

b)

Defined benefit plan accounted for on a defined contribution basis

Local authority pension plan (LAPP) The LAPP is a multi-employer contributory defined benefit pension plan for support staff members and is accounted for on a defined benefit contribution basis. At December 31, 2024, the LAPP reported an actuarial surplus of $19,557,148 (2023 - surplus of $15,056,661). The pension expense recorded in these consolidated financial statements is $2,580,225 (2024 - $2,480,247).

Other than the requirement to make additional contributions, the Polytechnic does not bear any risk related to the LAPP if it runs a deficit.

26

Northwestern Polytechnic Notes to the Consolidated Financial Statements Year Ended March 31, 2025

c)

Defined contribution

Leave plans The Polytechnic provides two leave plans, one for the Academic Staff Association (ASA) employees and one for the Employee Association (EA) employees.

The ASA Four for Five leave plan allows the employee to make contributions up to 14% of their salary to the plan for 4 years. In the year of the leave, the Polytechnic will make a one-time contribution of 24% of the employee's annual salary and will continue to pay the Polytechnic's normal premium costs for the employee's benefits.

The EA self-initiated leave plan allows for the employee to make contributions of their salary to the plan. In the year of leave, the Polytechnic will make a one-time contribution of 15% of the employee's annual salary and will continue to pay the Polytechnic's normal premium costs for the employee's benefits.

2025 Employee's contributions to the Polytechnic

$

Interest held on employee's contributions Balance, end of year

$

2024

183,497 $

100,026

4,021

4,465

187,518 $

104,491

EA self-initiated leave and ASA Four for Five plans expenses were $61,383 (2024 - $108,668).

Maternity and parental leave The Polytechnic offers a Supplemental Employment Insurance Benefits (SEIB) to all employee groups; Academic Staff Association (ASA), Alberta Union of Provincial Employees (AUPE), Employee Association (EA) and Administrative Group (Admin).

The SEIB plan offered to the Employees' Association (EA) and the Alberta Union of Provincial Employees (AUPE) allows eligible employees to receive a supplemental salary payment from the Polytechnic during an eight-week period for two weeks prior to the delivery and six weeks following delivery. The employee will receive 95% of their regular salary during the one-week waiting period for Employment Insurance (EI) benefits. Thereafter, the employee will receive the difference between the EI payments and 95% of their regular salary. The Polytechnic will continue to pay its portion of benefits premiums during the time the employee is receiving SEIB plan payments.

The SEIB plan offered to the Academic Staff Association (ASA) and the Administrative Group allows eligible employees to receive a supplemental salary payment from the Polytechnic during a sixteen week period for one week prior to the delivery or adoption and up to sixteen weeks following delivery with a medical certificate (cannot exceed sixteen weeks). The employee will receive 100% of their regular salary during the one-week waiting period for EI benefits. Thereafter, the employee will receive the difference between EI benefit payments and 100% of their salary. The Polytechnic will continue to pay its portion of the benefits premiums during the time the employee is receiving SEIB plan payments. SEIB plan for eligible employees combined with EI payments must not exceed 100% of the employees regular salary for the sixteen-week period.

The Polytechnic's SEIB plan expense was $81,112 (2024 - $15,131).

27

Northwestern Polytechnic Notes to the Consolidated Financial Statements Year Ended March 31, 2025

10.

Debt

2025 Maturity Loan #1500775

2024

Interest Rate (%) Amortized Cost Amortized Cost

November 2026

6.0

% $

Loan #1500778

July 2027

6.1

%

60,000

80,000

Loan #3500015

September 2030

4.4

%

753,952

872,710

Loan #4000180

December 2036

4.4

%

3,242,149

3,443,102

Loan #4000464

March 2038

4.7

%

2,592,793

2,734,716

Loan #4000728

June 2039

5.1

%

3,051,624

3,191,547

9,732,518 $

10,370,075

$

32,000 $

48,000

Collateral for all loans is the title to student residence land and buildings with a carrying value of $6,813,847 (2024 - $7,636,720).

The Polytechnic's debt is with the Department of Treasury Board and Finance.

Principal and interest repayments in each of the next five years and thereafter are as follows: Principal 2026

$

Interest

Total

665,730 $

451,031 $

1,116,761

2027

695,227

419,349

1,114,576

2028

710,110

386,281

1,096,391

2029

722,444

352,722

1,075,166

2030 Thereafter $

756,299

318,867

1,075,166

6,182,709

1,348,035

7,530,744

9,732,518 $

3,276,286 $

13,008,804

Interest expense on debt is $474,162 (2024 - $505,249) and is included in the consolidated statement of operations.

28

Northwestern Polytechnic Notes to the Consolidated Financial Statements Year Ended March 31, 2025

11.

Deferred revenue

Deferred revenues are set aside for specific purposes as required either by legislation, regulation or agreement:

2025 Unspent externally restricted contributions

Student tuition, fees and other revenue

Total

Total

12,563,622 $

5,440,306 $

18,003,927 $

16,905,077

25,728,571

4,178,569

29,907,140

18,159,856

Investment income

2,946,657

-

2,946,657

595,714

Unrealized gains (losses)

(1,622,535)

-

(1,622,535)

1,341,517

Transfers to spent deferred capital contributions (note 13)

(12,865,859)

-

(12,865,859)

(2,669,064)

Transfers to Endowments (note 15)

(1,095,630)

(1,095,630)

-

Recognized revenue

(11,862,748)

(5,262,501)

(17,125,249)

(16,329,174)

13,792,079 $

4,356,374 $

18,148,452 $

18,003,927

Balance, beginning of year

$

2024

Grants, tuition, and other donations

Balance, end of year

$

29

Northwestern Polytechnic Notes to the Consolidated Financial Statements Year Ended March 31, 2025

12.

Tangible capital assets

2025

Land

Buildings and site improvements

Furnishings, equipment & systems

(a)

(a,b)

2024 Learning resources (c)

Total

Total

Cost Balance, beginning of year

$

2,706,654 $ 169,874,554 $

50,283,599 $ 1,621,006 $ 224,485,814 $ 221,414,115

Acquisitions

12,000

20,311,222

3,156,478

58,336

23,538,037

4,971,562

Disposals, including write-downs

(12,000)

-

(1,104,491)

(1,035,920)

(2,152,411)

(1,899,864)

2,706,654

190,185,776

52,335,586

643,422

245,871,438

224,485,814

Accumulated Amortization Balance, beginning of year

-

118,141,235

39,525,004

1,352,636

159,018,875

154,912,187

Amortization expense

-

3,659,572

2,199,575

57,111

5,916,258

5,458,071

Effects on disposals, including writedowns

-

-

(1,101,148)

(1,035,920)

(2,137,069)

(1,351,383)

-

162,798,066

159,018,875

121,800,807

40,623,431

373,827

Net Book value at March 31, 2025

$

2,706,654 $

68,384,969 $

11,712,155 $

269,595 $ 83,073,373

Net book value at March 31, 2024

$

2,706,654 $

51,733,319 $

10,758,595 $

268,370

$ 65,466,937

No interest was capitalized by the Polytechnic in 2025 (2024 - $nil). (a)

Cost includes work in progress at March 31, 2025, totalling $20,484,893 (2024 - $1,184,947) comprised of buildings and site improvements of $20,270,251 (2024 - $1,102,732) primarily for the Power Engineering and Instrumentation Lab, and furnishings, equipment and systems of $214,642 (2024 - $82,215). These assets are not amortized until put in use.

Costs includes asset retirement obligations at March 31, 2025, totalling $4,560,385 (2024 - $4,560,385) comprised of buildings and site improvements of $4,554,728 (2024 - $4,554,728) and furnishings, equipment and systems of $5,657 (2024 - $5,657). (b)

Furnishings, equipment and systems include vehicles, heavy equipment, office equipment, computer and electronic equipment, instruction equipment, furniture and other equipment. Acquisitions include $218,001, of gift-in-kind donations (2024 - $116,999). (c) Learning resources consists of library holdings.

30

Northwestern Polytechnic Notes to the Consolidated Financial Statements Year Ended March 31, 2025

13.

Spent deferred capital contributions

Spent deferred capital contributions are comprised of externally restricted grants and donations spent on tangible capital acquisitions (not yet recognized as revenue).

2025 Balance, beginning of year

34,687,606 $

34,919,069

Funding received for capital contributions

12,865,859

2,669,064

Expended capital contributions recognized as revenue

(3,377,133)

(2,900,527)

44,176,331 $

34,687,606

Balance, end of year 14.

$

2024

$

Asset retirement obligations

2025 Balance, beginning of year

$

Liability incurred Accretion expense Increase in asset retirement obligations Asset retirement obligations, end of year

$ $

2024

4,637,879 $

4,558,478

-

1,907

120,585

77,494

120,585 4,758,464 $

79,401 4,637,879

Asset retirement obligations at March 31, 2025, totalling $4,758,464 (2024 - $4,637,879) include buildings and site improvements of $4,752,595 (2024 - $4,632,158) and furnishings, equipments and systems of $5,869 (2024 - $5,721). The Polytechnic has asset retirement obligations to remove hazardous asbestos fibre containing materials from various buildings under its control. Regulations require the Polytechnic to handle and dispose of the asbestos in a prescribed manner when it is disturbed, such as when the building undergoes renovations or is demolished. Although timing of the asbestos removal is conditional on the building undergoing renovations or being demolished, regulations create an existing obligation for the Polytechnic to remove the asbestos when asset retirement activities occur.

Asset retirement obligations are initially measured as of the date the legal obligation was incurred, based on management's best estimate of the amount required to retire tangible capital assets and may be subsequently re-measured at each financial reporting date taking into account any new information and the appropriateness of assumptions used. The estimate of the liability is based on independent, third party quotes.

Asset retirement obligations are expected to be settled over the next 1 to 31 years.

31

Northwestern Polytechnic Notes to the Consolidated Financial Statements Year Ended March 31, 2025

15.

Net assets

The composition of net assets is as follows:

Investment in tangible capital assets (a)

Accumulated surplus from operations Net assets as at March 31, 2023

$

202,109

$

Internally restricted surplus (b)

16,043,659

$

Total accumulated surplus

Endowments

28,430,478

$

7,755,555

$

52,431,801

Annual surplus

2,498,796

-

-

-

2,498,796

Endowments New donations

(30,000)

-

-

30,000

-

Tangible capital assets Amortization of internally funded tangible capital assets (note 12)

2,557,544

(2,557,544)

-

-

-

Internally funded acquisition of tangible capital assets (note 12)

(2,300,591)

2,300,591

-

-

-

(610,647)

610,647

-

-

-

-

-

-

Debt - repayment Increase (decrease) in asset retirement obligations (note 14)

77,494

(77,494)

Net book value of tangible capital asset disposals

548,482

(548,482)

-

-

-

Net transfer to internally restricted surplus

(2,869,522)

-

2,869,522

-

-

Change in accumulated remeasurement gains (losses)

3,659,631

-

-

-

3,659,631

Net assets as of March 31, 2024

$

Annual surplus Endowments New donations

3,733,296

$

15,771,377

$

31,300,000

11,641,686

-

-

$

7,785,555

$

58,590,228

-

11,641,686

(150,000)

-

-

150,000

-

Transfer from deferred revenue (note 11)

(1,095,630)

-

-

1,095,630

-

Tangible capital assets Amortization of internally funded tangible capital assets (note 12)

2,539,125

(2,539,125)

-

-

-

Internally funded acquisition of tangible capital assets

(3,120,872)

10,672,177

(7,551,305)

-

-

Debt - repayment

(637,557)

637,557

-

-

-

Accretion expense (note 14)

120,585

(120,585)

-

-

-

Net book value of tangible capital asset disposals

15,342

(15,342)

-

-

-

Net transfer to internally restricted net assets

(9,508,487)

-

9,508,487

-

-

Change in accumulated remeasurement gains (losses)

(3,407,680)

-

-

-

(3,407,680)

Net assets as at March 31, 2025

$

129,808

$

24,406,059

$

33,257,182

$

9,031,185

$

66,824,234

Net assets are comprised of: Accumulated surplus

393,219

24,406,059

33,257,182

9,031,185

67,087,645

Accumulated remeasurement gains (losses)

(263,411)

-

-

-

(263,411)

$

129,808

$

24,406,059

$

33,257,182

$

9,031,185

$

66,824,234

32

Northwestern Polytechnic Notes to the Consolidated Financial Statements Year Ended March 31, 2025

(a) The Polytechnic's closing net

assets invested in tangible capital assets is the sum of its tangible capital assets, less debt, asset retirement obligation and spent deferred capital contribution balances.

Investment in tangible capital assets represents the amount of the Polytechnic's accumulated surplus that has been invested in the Polytechnic's capital assets. (b) Internally restricted accumulated surplus represents amounts set aside by the Polytechnic's Board of Governors for specific purposes.

Those amounts are not available for other purposes without the approval of the Board.

Internally restricted net assets with significant balances include:

2025

2024

15,716,630 $

16,216,630

Information Technology Renewal and Upgrades

6,500,000

6,500,000

Operating Contingency

6,000,000

4,000,000

Center for Entrepreneurial Excellence

3,182,166

3,182,166

Foundation

1,262,096

970,240

596,290

430,964

33,257,182 $

31,300,000

Capital Renewal and Upgrade

$

Polytechnic appropriations for operating activities Total

$

Internally restricted net assets under Capital Renewal and Upgrade, Information Technology Renewal and Upgrade, and Center for Entrepreneurial Excellence are expected to be used over the next 5 fiscal years based on the current capital plan as approved by the Board.

16.

Contingent assets

As of March 31, 2025, the Polytechnic does not have any open matters which would give rise to contingent assets.

17.

Contingent liabilities

As of March 31, 2025, Northwestern Polytechnic was named a defendant in three (2024 - three) specific legal actions. For all the claims, no specified amount has yet to be claimed; the amount of these claims will be determined at trial. The loss from these claims, if any, cannot be determined. Management has concluded that none of the claims meet the criteria for recognizing a liability.

The Polytechnic's on-going efforts to assess environmental liabilities may result in additional environmental remediation liabilities related to newly identified sites, or changes in the assessments or intended use of existing sites. Any changes to the environmental liabilities will be accrued in the year in which they are assessed as likely and measurable.

33

Northwestern Polytechnic Notes to the Consolidated Financial Statements Year Ended March 31, 2025

18.

Contractual rights

Contractual rights are rights of the Polytechnic to economic resources arising from contracts or agreements that will result in both assets and revenues in the future when the terms of those contracts or agreements are met.

Estimated amounts that will be received or receivable for each of the next five years and thereafter are as follows: Operating Leases 2026

19.

$

Service & Other Contracts

Total

279,412 $

278,582 $

557,994

2027

169,601

70,103

239,704

2028

71,783

-

71,783

2029

56,193

-

56,193

2030

22,177

-

22,177

Thereafter

100,015

-

100,015

Total at March 31, 2025

$

699,181 $

348,685 $

1,047,866

Total at March 31, 2024

$

477,726 $

464,662 $

942,388

Contractual obligations

The Polytechnic has contractual obligations which are commitments that will become liabilities in the future when the terms of the contracts or agreements are met. The estimated aggregate amount payable for the unexpired terms of these contractual obligations are as follows: Service Contracts 2026

$

Information Systems and Technology

Capital Projects

1,671,016 $

6,829,632 $

Long-Term Leases

Total

933,795 $

853 $

9,435,296

2027

1,058,630

27,983

676,810

13

1,763,436

2028

1,039,514

-

629,908

7

1,669,429

2029

35,053

-

517,989

1

553,043

2030

-

-

493,626

1

493,627

Thereafter

-

-

1,007,163

42

1,007,205

Total at March 31, 2025

$

3,804,213 $

6,857,616 $

4,259,290 $

917 $

14,922,036

Total at March 31, 2024

$

2,502,868 $

14,578,547 $

725,710 $

5,481 $

17,812,606

34

Northwestern Polytechnic Notes to the Consolidated Financial Statements Year Ended March 31, 2025

20.

Expense by object

The following is a summary of expense by object: 2025

Salaries and benefits

$

Materials, supplies and services

Budget (note 26)

Actual

Actual

46,155,856 $

46,757,782 $

43,243,536

12,895,009

15,299,961

14,834,745

Cost of goods sold

49,444

61,250

154,477

Scholarships and bursaries

600,000

734,679

774,800

Maintenance and repairs

3,415,129

6,331,668

7,776,334

Utilities

3,082,058

2,151,641

2,223,577

Amortization of tangible capital assets

5,800,000

5,916,258

5,458,071

71,997,496 $

77,253,239 $

74,465,540

$ 21.

2024

Funds held on behalf of others

The Polytechnic holds the following funds on behalf of others over which the Board has no power of appropriation. Accordingly these funds are not included in the consolidated financial statements.

2025 Academic Staff Association Professional Growth

$

Alberta Union of Public Employees Staff Development Other $ 22.

2024

505,069 $

512,940

7,284

12,349

232,994

64,746

745,347 $

590,035

Related parties

The Polytechnic is a related party with organizations within the Government of Alberta reporting entity. Key management personnel of the Polytechnic and their close family members are also considered related parties. The Polytechnic may enter into arm's length transactions with these entities and individuals.

The Polytechnic has debt with the Department of Treasury Board and Finance as described in note 10.

The Polytechnic holds a lease agreement with Alberta Health Services (AHS) for 34,132 square feet of instructional space within Grande Prairie Regional Hospital. The lease is for a nominal amount and has a term of 30 years, beginning June 1, 2022, with two, ten-year extensions. The construction costs of the leased space was $40.8 million and was funded by Alberta Infrastructure. AHS receives funding from the Provincial Government to support the operating costs related to the leased space.

The Polytechnic received one (2024 - three) lot of land from Alberta Infrastructure during the year for a nominal amount of $12,000 (2024 - $0.03). The land is recorded at a nominal value.

35

Northwestern Polytechnic Notes to the Consolidated Financial Statements Year Ended March 31, 2025

23.

Government transfers

2025

2024

37,117,089 $

37,117,089

Grants from Government of Alberta: Advanced Education: Operating

$

Power Engineering and Instrumentation Lab

9,300,000

-

Apprenticeship

4,270,515

2,331,104

Capital Maintenance Renewal

3,434,803

5,434,804

Mental Health Professionals

708,325

-

Target Enrolment Expansion

588,385

514,622

Student Mental Health

144,903

220,000

Internationally Educated Nurses

128,776

221,658

Other

741,814

855,884

56,434,610

46,695,161

601,225

554,765

Total Advanced Education Other Government of Alberta departments and agencies: Department of Children and Family Services

Northern Alberta Medical Program

425,919

-

Other

132,147

142,853

1,159,291

697,618

57,593,900

47,392,779

Total other Government of Alberta departments and agencies

Total contributions received Expended capital contributions recognized as revenue Deferred revenue $ Federal and other government grants: Natural Sciences and Engineering Research Council Other

Total contributions received

2,566,152

2,548,782

(11,091,217)

1,260,547

49,068,835 $

51,202,108

1,043,300

911,575

201,388

244,499

1,244,688

1,156,075

Expended capital contributions recognized as revenue

455,822

127,493

Deferred revenue

404,395

(242,646)

2,104,905 $

1,040,922

$

36

Northwestern Polytechnic Notes to the Consolidated Financial Statements Year Ended March 31, 2025

24.

Investment income Investment income consists of the following:

Investment income earned during the year

$

Investment income deferred on capital projects Investment income deferred on restricted grants and donations $

2025

2024

11,033,747 $

1,679,995

(67,674)

(273,128)

(2,878,983)

(343,917)

8,087,090 $

1,062,950

2025

2024

Investment income earned during the year consists of the following:

Interest

$

1,039,144

$

1,317,584

Dividends

1,317,433

1,031,635

Realized gain (loss) classified to income

8,677,170

(669,224)

Investment income earned during the year

$

11,033,747

$

1,679,995

37

Northwestern Polytechnic Notes to the Consolidated Financial Statements Year Ended March 31, 2025

25.

Salary and employee benefits

2025 Other cash benefits (c)

Base salary (b) Governance (a) Chair of the Board of Governors

$

2024

Other non-cash benefits (d)

Total

Total

- $

8,000 $

268 $

8,268 $

7,426

-

37,965

545

38,510

35,335

Executive President

245,180

21,000

39,160

305,340

528,891

Vice Presidents Academics and Research (e)

Members of the Board of Governors

172,839

62,209

35,311

270,359

265,147

Administration (f)

199,820

6,000

34,600

240,420

316,487

External Relations

192,363

6,480

27,009

225,852

107,446

181,914

6,480

37,596

225,990

111,356

-

-

-

-

85,338

Other Executive Director, Human Resources

Chief of Staff (g) Total

$

992,116 $

148,134 $

174,489 $

1,314,739 $

1,457,426

(a) The Chair and Members of the Board of Governors receive honorariums and other payments for participation on the Board. The annual

Chair remuneration was $4,500 (2024 - $4,500). The Chair and Members of the Board also receive $500 per year for each subcommittee. (b) Base salary includes pensionable base pay. (c) Other cash benefits include cash payments for health and retirement benefits specifically for the President. Other earnings include

honoraria, car allowance, moving allowance, retiring allowance, remote retention allowance, and vacation payouts. Bonuses are not paid to employees. (d) Other non-cash benefits include the Polytechnic's share of all employee benefits and contributions or payments made on behalf of

employees including pension, group life insurance, employee family assistance program, supplementary health care, long-term disability plans, dental coverage, accidental death and disbursement, flexible health and wellness spending accounts, professional development and memberships, computer equipment, tuition and current and prior year service cost of the supplementary retirement plan. (e) This position was occupied by two individuals during the fiscal year. The former Vice President of Academics and Research was in this

role from June 3, 2024, to March 13, 2025. The Interim Vice President of Academic and Research has occupied this role since March 18, 2025. This position was vacant outside of these dates. (f)The position was renamed to Vice President Administration during the year. This position was formerly Vice President Finance and

Administration. (g) The Chief of Staff position is no longer part of the organizational structure.

38

Northwestern Polytechnic Notes to the Consolidated Financial Statements Year Ended March 31, 2025

Under the terms of the supplementary retirement plan (SRP), executive members may receive supplemental payments. Retirement arrangement costs as detailed below are not cash payments in the period but are period expenses for rights to future compensation.

Costs shown reflect the total estimated cost to provide annual pension income over the post employment period. SRP provides future pension benefits to participants based on years of service and earnings. The cost of these benefits is actuarially determined using the projected benefit method pro-rated on services, market interest rate, and management's best estimate of expected costs and the period of benefit coverage. Net actuarial gains and losses of the benefit obligation are amortized over the average remaining service life of the employee group. Current service cost is the present value of the benefits earned in the current year.

Accrued Obligation 2024 Presidents: Former Presidents

$

Current President

47,841 $ 19,641

$

67,482 $

Interest Cost

Service Cost

Benefit Payments

2,387 $

4,071 $

-

-

2,387 $

4,071 $

Actuarial Loss (Gain)

(69,884) $ -

(69,884) $

Accrued Obligation 2025

15,585 $ (14,150)

1,435 $

5,491

5,491

The significant actuarial assumptions used to measure the accrued benefit obligation are disclosed in note 9.

26.

Budget figures

The Polytechnic's 2024-25 budget was approved by the Board of Governors and submitted to the Minister of Advanced Education.

27.

Approval of consolidated financial statements

The consolidated financial statements were approved by the Board of Governors at the Polytechnic's Board Meeting on May 28, 2025.

39

36