ANNUAL REPORT 2025-2026
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 Accountability Statement ................................................................................................................................................................................................................. 3 Public Interest Disclosure (Whistleblower Protection) Act .......................................................................................................................................................... 3 Goals and Performance Measures ...................................................................................................................................................................................................... 4 Summary of Achievements ............................................................................................................................................................................................................... 4 a. Student Supports and Resources ............................................................................................................................................................................................. 9 b. Strategic Research Priorities...................................................................................................................................................................................................... 10 c. Collaboration with Other Learning Providers ....................................................................................................................................................................... 12 Financial Information ............................................................................................................................................................................................................................... 15 Budget Variances ................................................................................................................................................................................................................................ 15 Self-generated Revenue ........................................................................................................................................................................................................................ 15 Tuition and Mandatory Fees ........................................................................................................................................................................................................... 15 Donations and Investment Income .............................................................................................................................................................................................. 16 Research Grants .................................................................................................................................................................................................................................. 16 Other Grants ......................................................................................................................................................................................................................................... 17 Auxiliary / Ancillary Services............................................................................................................................................................................................................ 17 Academic Enterprise .......................................................................................................................................................................................................................... 18 Land Trusts and For-Profit Ventures ............................................................................................................................................................................................. 18 Other ........................................................................................................................................................................................................................................................ 18 Capital Report ............................................................................................................................................................................................................................................ 19 Top 3 Projects........................................................................................................................................................................................................................................ 19 All Other Projects ................................................................................................................................................................................................................................ 22 Mandatory Non-instructional Fees (MNIF) Reporting ................................................................................................................................................................. 24 MNIF Financial Summary.................................................................................................................................................................................................................. 24 Compliance Statement.................................................................................................................................................................................................................... 25 Free Speech Reporting .......................................................................................................................................................................................................................... 26 Free Speech Policy Information .................................................................................................................................................................................................... 26 Cancelled Events................................................................................................................................................................................................................................ 26 Free Speech-Related Complaints ............................................................................................................................................................................................... 26 Complaints Process and Contact ................................................................................................................................................................................................ 26 Board of Governors Training on For-profit Ventures ................................................................................................................................................................... 26
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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 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. [Original signed by Dr. Vanessa Sheane, President & CEO, and Shawna Miller, Board Chair.]
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 2025-26 period.
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Goals and Performance Measures Summary of Achievements In 2024, Northwestern Polytechnic launched True North 2024–2030, a strategic roadmap shaped by extensive engagement with students, employees, industry leaders, Indigenous partners, and communities across our region. Built on a commitment to continuous improvement and meaningful impact, True North reflects NWP’s vision for the future as a responsive, community-focused polytechnic. It guides our decisions, priorities, and investments while ensuring we remain aligned with the needs of northern Alberta’s learners, employers, and communities. The plan is anchored by four strategic themes, each supported by specific goals and focus areas that will shape our direction, strengthen our outcomes, and amplify our impact through 2030.
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 2025-26 period: •
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During the 2025-26 LERS reporting period (Spring–Winter), NWP's overall enrolment remained relatively stable, with a modest 1% decline compared with 2024/25. Given the significant reduction in international enrolment resulting from recent federal policy changes affecting international students, this slight overall decline demonstrates the institution's resilience. Strong domestic enrolment (7.1%) helped offset much of the international student enrolment decrease (31.5%), limiting the overall impact. Enrolment (FLE) in degree programs increased by 88% from 2024/25 to 2025-26, supported in particular by the introduction of the Bachelor of Education – Elementary program in 2025-26. By fields of study, the strongest growths were observed in education and health, with FLE increasing by 21% and 7% respectively. Indigenous student enrolment (FLE) increased by 10% as compared to 2024/25. NWP broadened programming with new in-demand offerings added, including the following milestones: o May 2025 - Efforts to retain local talent and attract new students to the region ramped up with the addition of in-demand elite Golf and women’s Hockey programs to Wolves Athletics. Adding these new sports brings NWP’s roster of teams to 15, including women’s and men’s basketball, volleyball, soccer, futsal, cross-country and track. o June 2025 - NWP announced a dynamic two-year Graphic Design diploma that prepares students for creative careers in areas such as advertising, marketing, publishing, web design, and digital media. Graduates will leave with a strong portfolio, industry-relevant skills, and the creative confidence to thrive in today’s fast-paced design world. o September 2025 - NWP unveiled a collaborative partnership with local industry leader, Aquatera Utilities to develop and train Level 1 Water and Wastewater Technicians who will be able to monitor and operate essential water control systems and equipment. This 12-month 4
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Water and Wastewater Technician certificate program supports local education efforts to meet the workforce needs of regional employers and open up more exciting career opportunities for the community. o September 2025 - Winter 2026 intake options expanded with expedited launch of Graphic Design diploma, commitment to a second intake of popular Social Work diploma, and new one-year Information Technology Specialist certificate pathway focusing on cybersecurity, software development, and network administration o October 2025 - NWP added a new Bachelor of Education - Secondary degree to growing portfolio of four-year credentials. In just three years, NWP has successfully introduced three new locally-based programs to complement other impactful Science, Engineering, Kinesiology, Arts and Fine Arts, and Commerce University Transfer programs. o October 2025 - NWP entered into an agreement with VIA University College in Denmark, paving the way for innovative collaborations in international education. The partnership will explore opportunities such as student and faculty exchanges, internships, joint research projects, study abroad programs, and other initiatives to expand global learning experiences. o January 2026 - NWP announced a new partnership with Tallcree Tribal Government that will expand access to post-secondary education for students in northern Alberta. Through a tailored combination of remote and in-person program delivery, Tallcree community members can access NWP’s Educational Assistant Certificate program. o March 2026 - NWP confirms addition of new Grande Prairie apprenticeship programs in Skilled Trades Training Centre starting Fall 2026: ▪ Automotive Service Technician ▪ Gasfitter ▪ Heavy Equipment Technician ▪ Plumber ▪ Steamfitter - Pipefitter The Office of Applied Research and Innovation (OARI) secured over $1.4M in funding during the 202526 period. This amount is a 27.3% increase from the previous reporting period and includes the following funded projects: o National Bee Diagnostic Centre - Honey Testing Design/Certification ($390K), Supplementary Technology Access Centre (TAC) funding ($400K), Mass Spectrometry investment for analysis of honey and other agricultural products ($178K), Varroa Mite studies ($199K) o General Funding - Pin2cle PrairiesCan Stronger Economy ($994K), Mitacs Eco-Friendly Ag ($60K), CiCan Virtu-Work-Integrated-Learning ($38K) o Consortia Participation - Canada’s National Network for Innovation, Commercialization and Entrepreneurship Skills Training of Students, Researchers and Highly Qualified Persons (32M), College-University Lab to Market Network for Entrepreneurship and Research Commercialization ($24M). Some additional milestones that advanced the momentum of the OARI include: o Strengthened applied research and innovation capacity by investing in four Faculty Innovation Fund projects, providing seed funding to catalyze emerging research initiatives, foster faculty scholarship, and expand Northwestern Polytechnic's applied research ecosystem. o Successfully completed an NSERC-funded research project on precision agriculture technology adoption, generating valuable insights to support sustainable agricultural practices in northern Alberta. Research findings were shared with industry and community partners through OARI's inaugural Research Spotlight event, enhancing knowledge mobilization and collaboration. 5
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o
o
o
Elevated Northwestern Polytechnic's national and international research profile through presentations by research leaders from the National Bee Diagnostic Centre (NBDC) and the Agricultural Bioscience Applied Research Centre (ABARC) at global forums, including Apimondia 2025 in Copenhagen, advancing research excellence in pollinator health, biodiversity, and agriculture. Expanded global research partnerships and innovation networks through participation in leading international conferences and industry events, including TAC Innovates, the World Agri-Tech Innovation Summit, the High-Performance Thin-Layer Chromatography Association Global Meeting, and the Institute of Food Technologists, creating new opportunities for collaboration and applied research growth. Increased community engagement and awareness of applied research through the NBDC’s partnership with the Outland Youth Employment Program, providing Indigenous youth with hands-on exposure to pollinator science, research careers, and innovation pathways. Advanced the national dialogue on Indigenous education by presenting Northwestern Polytechnic's simulation-based Indigenous cultural safety training resource at the Colleges and Institutes Canada (CICan) National Indigenous Education Symposium, demonstrating the impact of applied research in creating inclusive and culturally responsive learning environments.
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 NWP strengthened strategic partnerships and secured new investments and resources to expand opportunities for learners, enhance community impact, and advance institutional priorities. •
•
•
July 2025 - NWP secured a $250K investment from AltaGas to establish the AltaGas Collaboration Corner within the Spartan Controls Northwestern Centre for Industrial Automation & Innovation. The dedicated student space will support collaboration, peer engagement, and community-building within NWP’s new 15,565-square-foot teaching and learning facility, scheduled to open in September 2025. September 2025 - NWP celebrated the official opening of the $16M Spartan Controls Northwestern Centre for Industrial Automation & Innovation. The state-of-the-art facility was developed in partnership with Spartan Controls to provide immersive, industry-replicated training environments for students in Instrumentation and Control Technician Apprenticeship and 3rd Class Power Engineering. The ribbon-cutting marked a significant milestone in NWP's commitment to expanding workforceready education and strengthening northern Alberta's skilled trades and industrial workforce. November 2025 - NWP and CDN Controls sign 8-year partnership to advance electrical education in northern Alberta. The CDN Electrical Education Centre, a Hoffmann Family of Companies Community Commitment, will carry the naming rights for NWP’s state-of-the-art Electrical Education Centre on the Grande Prairie campus, and will serve as lead supporter for Skilled Trades Dual Credit Pathways,
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giving high-school students an early jumpstart on their careers in the electrical and instrumentation fields, among others. November 2025 - NWP and Ovintiv announce a strategic partnership. As part of this collaboration, Ovintiv is sponsoring the naming of a new 1,620-square-foot Tool Hub at the Grande Prairie campus. The facility features a state-of-the-art inventory management system along with a comprehensive selection of training aids, tools, and technology to support hands-on learning for trades students. The Ovintiv Tool Hub reflects a generous $500K community investment from the North American energy industry leader, designed to support the training and development of next-generation skilled trades professionals in the North. NWP continued to advance the Side Family Centre for Entrepreneurial Excellence, a regional initiative supported through a $3.2M investment from Prairies Economic Development Canada (PrairiesCan) to strengthen entrepreneurship, innovation, and business development across the Peace Region. While development of the Centre's permanent facility remains underway, the initiative reached a significant milestone during the reporting period with the launch of entrepreneurship programming. Through workshops, mentorship, networking opportunities, and business supports, the Centre is already helping entrepreneurs and innovators develop the skills, connections, and resources needed to grow successful ventures, while laying the foundation for a permanent hub that will enhance regional economic development and competitiveness.
Focused Engagement •
•
•
•
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In early 2026, NWP's Indigenous Learning Series provided meaningful opportunities for learning and dialogue through presentations by speakers, Elders, and Knowledge Holders on topics including Indigenous governance, traditional medicines, storytelling, and reconciliation. Fall 2025 - NWP hosted its second annual Academic Showcase, welcoming school counsellors, education leaders, and educators from across the region to connect, explore post-secondary opportunities, and learn more about the programs, pathways, and student supports available at NWP. October 2025 - NWP's Side Centre for Entrepreneurial Excellence hosted Venture AI: From Insight to Action, a one-day symposium that brought together entrepreneurs, business leaders, and community partners to explore practical applications of artificial intelligence. Through keynote presentations, expert panels, and hands-on sessions, attendees gained actionable insights into how AI can enhance productivity, drive innovation, and support growth across industries in northern Alberta. January 2026 - NWP hosted two Industry Nights on campus, bringing together industry partners to provide updates on institutional developments and gather feedback on Skilled Trades programs, intake windows, and workforce needs. Attendees received a preview of the floor plans for the new Skilled Trades Training Centre, along with updates on planned renovations to L Wing, reinforcing NWP's commitment to delivering industry-informed training and modern learning environments. 2025-26 - Targeted skilled trades focus groups provided valuable insights into workforce needs, emerging trends, and industry expectations, helping inform program development, training priorities, and future investments that support regional economic growth.
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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: •
• • •
•
Master Academic Plan 2025-30 finalized. MOMENTUM translates NWP’s institutional priorities into clear academic direction that will enhance programming, deepen student success, and strengthen connections with communities and industries. Invested in employee growth by providing professional development funding, leadership development opportunities, and support for applied research initiatives. Celebrated the NWP community through the NWPeople initiative, sharing bi-weekly stories highlighting the achievements and experiences of students, faculty, staff, and alumni. Throughout the 2025–26 academic year, NWP's inaugural Inspire Arts Concert Series showcased talented musicians while offering masterclasses that provided students and community members with unique learning opportunities alongside accomplished performers. Between the Student Research Assistant Program, Faculty Innovation Fund Award, and other grant streams, a total of 29 students were hired by NWP’s Office of Applied Research and Innovation (OARI) in 2025-26. 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 awarded four projects. 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. •
•
Northwestern Polytechnic continues to make progress in strengthening operational efficiency and responsible resource management. A sustained trend of cost reductions across direct instruction, student supports, and administrative areas reflects ongoing efforts to optimize delivery while maintaining quality learning experiences. Campus consolidation is expected to deliver value over time, with operational costs anticipated to stabilize and decline as transition activities are completed and the benefits of strategic capital investments and a more efficient operating model are realized. NWP’s cost profile is also influenced by its unique programming mix, with a higher proportion of apprenticeship seats compared to other Alberta polytechnics. This delivery model contributes to higher direct instructional costs per FLE, reflecting the resource-intensive nature of skilled trades training and the important role NWP plays in preparing Alberta’s workforce. During 2025–26, Northwestern Polytechnic celebrated the successful completion of its $5M Power Engineering and Instrumentation fundraising campaign, supporting new learning spaces that opened to students in September 2025. This achievement was made possible through exceptional 8
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partnerships with industry, whose support has enhanced student learning, strengthened workforce connections, and expanded opportunities for future generations. NWP improved operational effectiveness through strategic planning, innovation, and efficiencyfocused initiatives that enhanced service delivery and strengthened the institution’s ability to respond to evolving needs. o Summer 2025 - NWP implemented a new service delivery model for select ancillary services by partnering with external providers. This transition enhanced operational efficiency while reducing operating costs. o October 2025 - NWP announced strategic realignment of programming into a consolidated polytechnic model in Grande Prairie starting Fall 2026. o December 2025 - Northwestern Polytechnic purchased 40,000 square foot facility located at 112 Street and 100 Avenue. Opening in Fall 2026, the Skilled Trades Training Centre will be home to in-demand apprenticeship and trades training.
a. Student Supports and Resources Student success extends beyond the classroom. At NWP, learners have access to a network of services, programs, and experiences that support academic achievement, personal well-being, financial confidence, and meaningful campus connections from their first day through graduation. Financial Support •
Removing financial barriers remains a priority. NWP actively promotes more than 300 scholarships, awards, bursaries, and grants, helping current and prospective students access the funding they need to pursue and complete their education.
A Connected Campus •
•
NWP fosters an inclusive and engaging campus environment where students can build relationships, access support, and take part in experiences that enrich their educational journey. Services such as Career Services, mental health supports, Wolves Athletics, and Campus Recreation contribute to a vibrant student experience that promotes well-being alongside academic success. Indigenous student success continues to be supported through the Friendship Centre, Circle of Indigenous Students, and Elder in Residence program. Throughout the year, students participated in initiatives including Blanket Exercises, Indigenous Floor Map Teachings, Rock Your Mocs, beading workshops, Elder lunches, Cree with Kookum, the Welcome Tea Dance, and a variety of Truth and Reconciliation activities that celebrated culture, strengthened community, and created opportunities for learning.
Career Connections •
NWP continued to strengthen connections between students and employers through its bi-annual Career Fairs and the Thriving in the City initiative. These events introduced students to career opportunities, expanded professional networks, and supported regional workforce development by connecting local employers with emerging talent.
Academic Support •
The Learning Commons and academic support services remained central to student achievement, offering access to research resources, tutoring, academic coaching, and dedicated study spaces. These services help students strengthen essential skills such as critical thinking, time management, and effective study strategies, empowering them to achieve their academic goals. 9
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Research and Innovation Support •
NWP fostered student engagement in applied research by creating meaningful opportunities for students to develop skills, gain hands-on experience, and contribute to innovation. During 2025-26, key student-focused initiatives included: o Student Research Expo – Hosted the annual Student Research Expo, showcasing student research and innovation while providing a platform for students to present their work to faculty, peers, industry partners, and the broader community. o Student Research Assistant Program – Expanded experiential learning opportunities through paid research assistant positions, enabling 29 students from multiple disciplines to work alongside faculty researchers and industry partners on applied research projects through OARI and the National Bee Diagnostic Centre (NBDC). o Research Skills Development – Delivered targeted workshops and professional development opportunities to strengthen students' research competencies, build confidence in applied research methodologies, and support the development of the next generation of researchers and innovators. Enhance Student Support - The Learning Commons is committed to enhancing the learner’s experience by ensuring equitable access to integrated academic supports, resources, and services that promote student success, persistence, and achievement.
b. Strategic Research Priorities Northwestern Polytechnic (NWP) is helping advance Alberta's vision for a skilled, innovative, and resilient economy by aligning its applied research, education, and industry partnerships with the priorities outlined in Building Skills for Jobs 2030 and the Technology and Innovation Strategy. Applied research at NWP is focused on addressing challenges that matter to northern Alberta while creating opportunities for innovation, knowledge transfer, and commercialization. By working alongside industry, community organizations, and academic partners, NWP is developing practical solutions that strengthen regional industries, respond to workforce needs, and support long-term economic diversification. This collaborative approach also enhances the student experience. Through applied research projects and expanded work-integrated learning opportunities, students gain valuable hands-on experience while contributing to projects with real-world impact. These experiences equip graduates with the skills employers need and reinforce NWP's role in supporting workforce development, innovation, and economic growth across the province. Applied Research Priorities The Office of Applied Research and Innovation (OARI) advances Northwestern Polytechnic's polytechnic mandate by connecting education, research, industry, and communities to address regional and provincial priorities. Through applied research, OARI transforms real-world challenges into practical solutions that strengthen Alberta's economy, support workforce development, foster innovation, and improve the quality of life for communities across northern Alberta. OARI's research priorities are intentionally aligned with Alberta Government priorities, including economic diversification, innovation, environmental stewardship, food security, health system sustainability, and resilient communities. Guided by the evolving needs of industry, Indigenous and community partners, and northern Alberta, OARI delivers applied research that generates measurable economic, environmental, and social impact while providing students with meaningful experiential learning opportunities. During 2025-26, OARI's applied research portfolio focused on four strategic priority areas. 10 2025-26 Annual Report
Agriculture and Ecosystems Agriculture, environmental stewardship, and natural resource management are fundamental to Alberta's economy and the long-term prosperity of northern communities. Leveraging Northwestern Polytechnic's regional expertise and nationally recognized research centres, OARI advances applied research that enhances agricultural productivity, strengthens food security, protects biodiversity, and supports responsible environmental management. The National Bee Diagnostic Centre (NBDC) continues to serve as Canada's leading centre for pollinator diagnostics and research, supporting producers, governments, and industry through innovations that improve pollinator health and agricultural resilience. Complementing this work, the Agricultural and Applied Bioscience Research Centre (ABARC) expands NWP's research capacity in biodiversity, ecosystem restoration, water quality, land reclamation, regenerative agriculture, and environmental monitoring. Together, these centres position Northwestern Polytechnic as a provincial leader in delivering practical, industry-driven research that supports Alberta's agriculture and natural resource sectors while strengthening environmental sustainability. Key projects: • • • • • •
Development of an AI-powered web application capable of identifying wild bee genus and species from digital images using deep learning technologies. Detection of Miticide Resistance in Varroa destructor Mite Populations in Canadian Apiaries, funded by Results Driven Agriculture Research (RDAR). Detection of Quinclorac and its Transformation Products in Honey Over Time, funded by BeeMaid Honey. Determining the Prevalence of the Amoeba Malpighamoeba mellificae in Canadian Apiaries, funded by the Canada Biomedical Research Fund. Northern Regenerative Agricultural Systems: Enhancing Production, Resilience, and Ecosystem Health, a multi-year NSERC-funded research program. Evaluation of a Plant Extract as a Prophylactic Treatment for Honey Bees to Reduce Bacterial and Viral Diseases, funded by NSERC and ApiSave.
Community Enhancement and Social Innovation Strong communities are essential to Alberta's long-term economic and social prosperity. OARI advances applied research that addresses complex social challenges, strengthens workforce resilience, improves community well-being, and supports evidence-informed decision-making across northern Alberta. By collaborating with industry, community organizations, Indigenous partners, and governments, OARI develops practical solutions that improve health, safety, workforce sustainability, and quality of life. Key projects: •
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One Is Too Many: A Collaborative Approach to Psychological Health and Safety and Suicide Prevention in Trades and Energy, supported through more than $354,341 in NSERC funding over three years. A P2INACLE, International Minerals Innovation Institute (IMII), and PrairiesCan-funded sprint project examining mental health within Alberta's mining industry, led by Student Research Assistants.
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Health and Wellness Supporting healthy, resilient communities is critical to Alberta's future workforce and economic success. OARI's health and wellness research advances innovative approaches that improve workplace safety, strengthen workforce capacity, and contribute to healthier communities through applied, industry-responsive research. Key projects: •
Industrial Safety and Trades Innovation Sprint, funded through P2INACLE, IMII, and PrairiesCan. The project analyzed serious incidents and injuries across mining and related industries to identify opportunities to improve workplace safety and inform industry best practices.
Energy and Environment Northern Alberta is a global leader in energy production and natural resource development. OARI supports the responsible evolution of these sectors by advancing applied research that promotes environmental sustainability, resource stewardship, innovation, and regional economic competitiveness. Working alongside municipalities, industry, and community partners, OARI develops practical solutions that support sustainable land use, environmental management, and responsible resource development. Key projects: •
Completion of the Eco-Agricultural Park Analysis, a Mitacs-funded partnership with the MD of Greenview. Engineering, Veterinary Technology, and Business Administration students collaborated with faculty researchers to complete a comprehensive feasibility study supporting regional economic diversification and sustainable development.
c. Collaboration with Other Learning Providers Collaborative Delivery (satellite or other arrangements) •
•
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Advancing Rural Medical Education - Northwestern Polytechnic's partnership with the University of Alberta continued to gain momentum during the reporting period as the first cohort of Northern Alberta Medical Program students was welcomed to Grande Prairie. Building on the historic Memorandum of Understanding signed in 2024, the collaboration is creating new opportunities to recruit, educate, and retain physicians in northern Alberta. Delivered through NWP's Health Education Centre at the Grande Prairie Regional Hospital, the program represents a significant step toward strengthening healthcare access and building a sustainable rural physician workforce for the region. Expanding Access Through Indigenous Partnership - Responding to community priorities, Northwestern Polytechnic partnered with Tallcree Tribal Government to bring post-secondary education closer to learners. A dedicated cohort of 10 students began the Educational Assistant Certificate through a flexible delivery model, creating new opportunities for community members to earn credentials, pursue careers in education, and contribute to stronger local schools and communities. Growing Teachers in the North - Northwestern Polytechnic partnered with Fort Vermilion School Division to expand access to teacher education for learners in Alberta's northernmost communities. Through a flexible blend of remote and in-person instruction, the partnership enables students to complete NWP's Bachelor of Elementary Education degree while remaining in their home communities, with practicums taking place in local classrooms. By creating pathways to train and retain educators locally, the initiative strengthens the region's education workforce and helps meet the growing demand for qualified teachers in northern Alberta. 12
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•
Strengthening Regional Collaboration - Northwestern Polytechnic continued to advance its partnership with Keyano College, Lakeland College, Northern Lakes College, and Portage College through a historic Memorandum of Understanding that is strengthening post-secondary collaboration across northern Alberta. The agreement continues to support work toward expanded transfer opportunities, improved student mobility, and coordinated educational pathways, ensuring learners have greater flexibility to access education and build careers throughout the region while helping address northern workforce needs.
Institution-level Research Collaborations Northwestern Polytechnic’s Office of Applied Research and Innovation (OARI) continues to strengthen Alberta's applied research and innovation ecosystem by fostering strategic collaborations with colleges, polytechnics, universities, and national innovation networks. These partnerships expand research capacity, leverage shared expertise and infrastructure, and create new opportunities for industry engagement, commercialization, and economic development across the province and beyond. Key collaborative initiatives during 2025-26 included: •
•
•
P2INACLE (Prairie Polytechnic Innovation Network for Applied Commercialization and Leadership Excellence) – Continued to advance western Canada's applied research capacity through active participation in this collaborative network of prairie polytechnics. During the reporting period, NWP's research team participated in partner site visits, strategic planning, and collaborative project development activities that strengthened institutional research capacity and positioned NWP for future multi-institutional initiatives. o Investment: $899K: PrairiesCan-funded initiative. o Partners: NAIT, SAIT, Red Deer Polytechnic, Red River College Polytechnic, Saskatchewan Polytechnic, and NWP. o Impact: Through the PrairiesCan-funded project Leveraging Innovation in Prairie Polytechnic Applied Research for a Stronger Economy, NWP successfully led three applied research sprint projects, demonstrating the value of coordinated institutional expertise in addressing regional industry challenges. Applied Research Network (ARN) – Continued to collaborate with Alberta's leading colleges and polytechnics to strengthen provincial applied research capacity, accelerate knowledge sharing, and support industry-driven innovation and technology adoption o Investment: Collaborative institutional investment supported by project-based funding. o Partners: $185K: NAIT, SAIT, Red Deer Polytechnic, Olds College, and NWP. o Impact: Participation in the Alberta Innovates-funded Alberta College and Polytechnic Applied Research Network: Driving Innovation, Economic Growth and Industry Collaboration project enhanced collaborative research opportunities and strengthened Alberta's innovation ecosystem. Lab2Market Network - Expanded opportunities for innovation and commercialization through participation in Canada's national entrepreneurship and commercialization network. The initiative provides researchers, faculty, and students with access to training, mentorship, industry connections, and commercialization pathways that accelerate the translation of research into economic and community impact. o Investment: $24M: Federally supported innovation programming and commercialization funding. o Partners: More than 30 colleges, polytechnics, and universities across Canada, including NWP. o Impact: A new chapter for applied research and entrepreneurship, NWP’s participation represents a first-of-its-kind opportunity for colleges and polytechnics to play a leading role 13
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in a federally supported commercialization network. The initiative expands access to mentorship, industry connections, and entrepreneurial supports while strengthening innovation opportunities for northern, rural, and Indigenous communities. Learner Pathways (e.g., transfer credit for courses/programs) •
•
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Expanding Dual Credit Opportunities - Northwestern Polytechnic has expanded access to postsecondary learning through the implementation of its Dual Credit Pathways initiative, creating stronger connections between high school and post-secondary education. Through partnerships with local high schools, students can now earn both secondary and post-secondary credits by participating in college-level courses delivered through NWP. The initiative provides learners with an early introduction to post-secondary education, helps build confidence and skills, and creates a smoother transition into future academic and career opportunities. During the 2025–26 reporting period, Northwestern Polytechnic expanded Dual Credit programming with the addition of a Health Care Aide Certificate and an Introduction to Skilled Trades program, to existing Health, Education, Humanities, and Business offerings. Dual Credit enrolment also increased significantly, growing from nearly a dozen learner registrations in 2024–25 to more than 100 in 2025–26. Broadening Degree Pathways for Northern Learners - Northwestern Polytechnic continues to strengthen access to university education through a combination of locally delivered degrees and established university transfer pathways. With eight existing university transfer programs, alongside a growing portfolio of NWP degree offerings, learners have more opportunities to begin and complete their educational journey in northern Alberta. These pathways provide flexibility, support seamless transitions to partner institutions, and reflect NWP’s ongoing commitment to expanding high-quality degree opportunities close to home. Connecting Credentials to Careers - Northwestern Polytechnic continues to expand opportunities for learners to advance their education through credential laddering pathways that support progression from certificates and diplomas into degree programs. In areas such as computing, health care, and business, students can build on their previous learning, gain additional credentials, and pursue higher levels of education while remaining connected to their communities. These pathways provide greater flexibility for learners and help address the evolving workforce needs of northern Alberta.
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Financial Information Budget Variances Category
Budgeted Amount
Actual Amount
Variance
Variance Explanation
Government of Alberta grants
$ 48,027,524
$ 50,885,129
$
2,857,605
Grant variance due to increase in Power Engineering Grant
Student tuition and fees
$ 17,410,179
$ 18,540,396
$
1,130,217
Increase in international registered students due to increased programs
Investment income
$ 3,730,000
$ 2,768,306
$
- 961,694
Market fluctuations during the year
Audited Financial Statements can be found by visiting https://www.nwpolytech.ca/about/leadership/plansreports
Self-generated Revenue Tuition and Mandatory Fees Revenue Source
Description
Annual Revenue
Domestic Tuition
All tuition related to domestic students
$
8,535,994
International Student Tuition
All tuition related to international students
$
6,816,829
Continuing Education Fees
All revenue related to Continuing Education including enrolment, parking, and registration fees
$
841,664
Other Mandatory Student Fees
Includes non-refundable application fees, MNIFs, nonrefundable tuition deposits, and testing fees
$
2,345,909
Subtotal
$ 18,540,396
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Donations and Investment Income Revenue Source
Description
Annual Revenue
Cash Donations
restricted and unrestricted
$
1,917,082
Donations In-Kind
restricted
$
154,199
Interest Earned
unrestricted
$ 1,732,160
Interest on Endowments
restricted
$
78,764
Realized Gains/Losses
unrestricted
$
957,382
Unrealized Gains/Losses Other
unrestricted
$
364,279
Subtotal
$ 5,203,866
Description
Annual Revenue
Research Grants Grant Source Not-for-Profit Organizations
$
-
$
1,111,657
Other Provincial Governments
$
-
Businesses
$
-
Other
$
365,676
Federal Government
Includes NSERC and PrairiesCan
Subtotal
$ 1,477,333
16 2025-26 Annual Report
Other Grants Grant Source
Description
Not-for-Profit Organizations
Annual Revenue $
-
$
291,308
Other Provincial Governments
$
-
Businesses
$
-
Other
$
220,948
$
512,256
Federal Government
PrairiesCan
Subtotal
Auxiliary / Ancillary Services Service
Description
Annual Revenue
Bookstores
Bookstore sales
$
382,741
Student Residences
Rental revenue, cancellation fees, and housing damages
$
3,111,699
Parking Services
Parking lot pass sales
$
492,040
Laundry Facilities
Laundry facilities sales
$
12,733
Printing Services
Copying, duplicating, student printing revenue
$
107,195
Sports and Recreational Facilities
Rentals, game day food sales, memberships
$
229,021
Rental Services
Theatre rentals, classroom rentals, conference rentals
$
705,691
Catering Operations
-
Cafeterias
Cafeteria sales
$
1,537
Other
Theatre, course materials, other income
$ 1,666,979
Subtotal
$ 6,709,636
17 2025-26 Annual Report
Academic Enterprise Enterprise
Description
Annual Revenue
Continuing Education Programs
Non-Credit revenue
$
191,352
$
-
$
226,877
Breweries
$
-
Other
$
-
$
418,229
Culinary School Restaurants Agricultural Operations
Farm sales
Subtotal
Land Trusts and For-Profit Ventures Venture
Description of Primary Business and Areas of Operation
Annual Revenue
Ventures
The Corporation established its Board of Directors and began business planning activities. Planning for the future development of the project is ongoing, with land acquisition and leasing activities yet to commence.
$
0
Subtotal
$
0
Description of Primary Business and Areas of Operation
Annual Revenue
Other Revenue Source Other Sources
$
-
Subtotal
$
-
Grand Total
$
32,861,716
18 2025-26 Annual Report
Capital Report Top 3 Projects Project 1 - Northern Edge Technology Centre Description
Total Project Cost
Start Date
End Date
The Northern Edge Technology Centre project involves the development of a multi-disciplinary training facility designed to support allied health, engineering, and skilled trades programs by November 2029. The facility will provide modern, hands-on learning environments equipped with industry-standard tools and technologies to deliver practical training in Diagnostic Medical Sonography, Laboratory and XRay Technology, plumbing, pipefitting, refrigeration, and engineering disciplines. The project strengthens workforce readiness and aligns education with regional labour market demands.
$78,520,000
May 28, 2026
November 13, 2029
Source
Amount
Percentage
Received to Date
Government of Alberta
$
32,260,000
41%
$
1,000,000
Government of Canada
$
32,260,000
41%
$
0
Institutional Funds
$
4,000,000
5%
$
0
Donations
$
10,000,000
13%
$
1,700,000
Foundations
$
-
0%
$
-
Industry
$
-
0%
$
-
Total
$
78,520,000
100%
$
2,700,000
Funding Sources
19 2025-26 Annual Report
Project 2 - Skilled Trades Training Centre (112 Street Building) Description
Total Project Cost
Start Date
End Date
The Skilled Trades Training Centre project (112 St) involves the renovation and expansion of an existing facility to create a dedicated, purpose-built hub for skilled trades training by August 2026. The upgraded building will accommodate programs relocating as part of campus consolidation efforts, including steamfitter/pipefitter, gasfitter, heavy equipment technician, and automotive service technician, providing modernized shop environments and instructional spaces that support hands-on, industryrelevant education.
$14,200,000
December 11, 2025
August 30, 2026
Source
Amount
Percentage
Received to Date
Government of Alberta
$
-
0%
$
-
Government of Canada
$
-
0%
$
-
Institutional Funds
$
14,200,000
100%
$
14,200,000
Donations
$
-
0%
$
-
Foundations
$
-
0%
$
-
Industry
$
-
0%
$
-
Total
$
14,200,000
100%
$
14,200,000
Funding Sources
20 2025-26 Annual Report
Project 3 - Welding Grounds - Grounds Building Renovation Description
Total Project Cost
Start Date
End Date
The Welding Grounds Building Renovation project will redevelop and expand the existing Facilities Grounds Shop into a dedicated welding training facility, with completion targeted for August 2026. The renovation will transform underutilized space into a modern, purpose-built learning environment that supports hands-on instruction, aligns with industry standards, and strengthens Northwestern Polytechnic's skilled trades training capacity. Upon completion, the facility will increase welding training capacity from 12 to 48 learner spaces, creating greater access to highdemand programming and helping meet Alberta's growing need for skilled trades professionals.
$7,500,000
November 24, 2025
August 30, 2026
Source
Amount
Percentage
Received to Date
Government of Alberta
$
-
0%
$
-
Government of Canada
$
-
0%
$
-
Institutional Funds
$
7,500,000
100%
$
7,500,000
Donations
$
-
0%
$
-
Foundations
$
-
0%
$
-
Industry
$
-
0%
$
-
Total
$
7,500,000
100%
$
7,500,000
Funding Sources
21 2025-26 Annual Report
All Other Projects Name and Description
Type
Total Cost
Current Status
Project 4 - The Power Engineering and Instrumentation expansion within the M-Wing of NWP’s main campus was substantially completed, creating improved learning environments for students in these high-demand fields. The project included targeted maintenance and upgrades to address health and safety considerations, enhance lab functionality, and modernize training spaces. Improvements included enhancements to the automation lab, updated specialized tools and software, and engineering-led piping modifications within the power lab, ensuring students have access to safe, industry-aligned learning environments that reflect current operational standards.
Maintenance
$
18,700,000
Substantially complete
Project 5 - NAMP Anatomy and Lecture Spaces The substantially completed expansion within the JWing science labs of NWP's main campus building and lecture space created and upgraded in the Health Education Centre within the Grande Prairie Regional Hospital (GPRH). The Northern Alberta Medical Program (NAMP) Anatomy and Lecture Space project focuses on creating modern, purpose-built teaching environments to support medical education delivery. It includes the development of advanced anatomy labs and flexible lecture spaces equipped with contemporary technology to facilitate interactive, collaborative, and clinically relevant learning. The project enhances the student learning experience while supporting the training of future physicians in rural northern Alberta.
Maintenance
$
7,000,000
Substantially complete
Project 6 - CEE Building Exterior Renovations The Centre for Entrepreneurial Excellence (CEE) Exterior Renovation project focuses on revitalizing the building’s outward appearance and site interface to better reflect its role as a hub for innovation and collaboration by January 2027. The upgrades will enhance visibility, accessibility, and campus presence while creating a welcoming and professional environment for students, faculty, and external partners.
Expansion
$
5,100,000
In-progress
22 2025-26 Annual Report
Project 7 - CEE Building/School of Business Interior Renovations The Centre for Entrepreneurial Excellence (CEE) Interior Renovation project focuses on modernizing and reconfiguring existing space to support NWP’s Bachelor of Business Administration (BBA) program while creating collaborative environments for external businesses by January 2027. The project aims to establish a dynamic, think tank-style hub that fosters innovation, entrepreneurship, applied learning, and industry engagement.
Expansion
$
5,400,000
In-progress
Project 8 - ERP (Finance & HCM) The Enterprise Resource Planning (ERP) System Implementation project involves the deployment of an integrated digital platform to streamline and modernize NWP’s core administrative functions. The system will include modules for finance and human capital management (HCM), enabling improved data management, reporting, and decision-making across the institution through coordinated implementation by Facilities Maintenance and Operations, Information Technology, Finance, and Human Resources.
New
$
6,500,000
In-progress
Project 9 - Equipment Relocation The Equipment Relocation project supports NWP’s campus consolidation strategy by coordinating the transfer of select trades training equipment to Grande Prairie by August 2026. The initiative ensures that essential assets for automotive service technician, heavy equipment technician, welding, steamfitter/pipefitter, and gasfitter programs are relocated, installed, and operational in their new facilities.
Expansion
$
2,600,000
Total
In-progress
$45,300,000
23 2025-26 Annual Report
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
$
568,864
Actual Amount
Variance Explanation
$
590,035
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.
This fee is also applied to university-level courses offered in collaboration with the University of Alberta.
Technology Fee
The fee supports the ongoing maintenance and upgrades to administrative systems that support the Polytechnic's infrastructure.
$
234,377
$
353,668
The fee supports the ongoing maintenance and upgrades to administrative systems that support the Polytechnic's infrastructure.
Athletic/ Recreation 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.
$
308,308
$
316,747
The fee to supports student wellness.
24 2025-26 Annual Report
Health & Wellness Fee
This fee supports the provision of health and wellness 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
$
279,211
$
299,859
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.
301,977
Actual service fees and delivery requirements outpaced revenue collection.
$
256,575
$
$
1,647,336
$ 1,862,286
Compliance Statement Northwestern Polytechnic did not introduce any MNIFs, and no existing MNIFs were substantively changed during the reporting period.
25 2025-26 Annual Report
Free Speech Reporting Free Speech Policy Information Northwestern Polytechnic’s Freedom of Expression policy can be found at the following URL: https://www.nwpolytech.ca/leadership/policies/display?ID=505 The Academic Freedom policy can be found at the following URL: https://www.nwpolytech.ca/leadership/policies/display?ID=4 During the 2025-26 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.
Complaints Process and Contact The institution supports the resolution of concerns through open dialogue and engagement with the appropriate School or institutional office, encouraging transparency, collaboration, and timely attention while utilizing existing institutional policies where applicable. Freedom of Expression complaints may be made to the CEO and President as per the existing policy by emailing President@NWPolytech.ca Complaints related to Academic Freedom may be made to the Vice President Academic by emailing VPAR@NWPolytech.ca
Board of Governors Training on For-profit Ventures KPMG provided training to the NWP Board of Governors on for-profit ventures related to the NWP Business Corporation (Properties Trust) in early January 2026. This presentation focused on the Board's role of oversight and governance related to the business corporation. Slide Deck attached.
26 2025-26 Annual Report
Northwestern Polytechnic Consolidated Financial Statements March 31, 2026
Northwestern Polytechnic Year Ended March 31, 2026
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, 2026 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. [signed by V. Sheane, PhD, RN] ___________________________ Vanessa Sheane, PhD, RN President and CEO
[signed by N. Merali] ________________________________ Nazim Merali Acting Vice President Finance and 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, 2026, and the consolidated statements of operations, remeasurement gains and losses, change in net financial assets, 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, 2026, and the results of its operations, its remeasurement gains and losses, its changes in net financial assets, 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.
Classification: Public
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
Classification: Public
• •
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. Phillip D. Peters FCPA, FCA, KC Auditor General of Alberta
May 28, 2026 Edmonton, Alberta
Classification: Public
Northwestern Polytechnic Consolidated Statement of Financial Position As at March 31, 2026 2026 Financial assets excluding portfolio investments restricted for endowments Cash and cash equivalents (note 3)
$
2025
Portfolio investments - non-endowment (note 4)
3,873,846 38,553,940
Accounts receivable (note 5)
14,083,306
4,100,182
Inventories held for sale
628,387
390,612
Cash surrender value on life insurance (note 6)
203,006
179,086
57,342,484
62,387,842
16,202,754
11,362,347
Employee future benefit liabilities (note 9)
1,311,463
1,080,189
Debt (note 10) Deferred revenue (note 11)
9,010,788
9,732,518
26,255,958
18,148,452
Asset retirement obligations (note 14)
8,010,526
4,758,464
60,791,489
45,081,970
(3,449,006)
17,305,872
9,815,751
9,031,185
6,366,745
26,337,057
113,061,630
83,073,373
Liabilities Accounts payable and accrued liabilities (note 7)
Net financial assets (Net financial liabilities) excluding portfolio investments restricted for endowments Portfolio investments - restricted for endowments (note 4) Net financial assets Non-financial assets Tangible capital assets (note 12) Inventories of supplies Prepaid expenses
Net assets before spent deferred capital contributions Spent deferred capital contributions (note 13)
$
4,774,391 52,943,571
132,147
109,937
1,017,157
1,480,198
114,210,934
84,663,508
120,577,680
111,000,565
51,485,830
44,176,331
Net assets (note 15)
$
69,091,849
$
66,824,234
Net assets are comprised of: Accumulated surplus
$
68,724,013
$
67,087,645
Accumulated remeasurement gains (losses)
367,836 $
69,091,849
(263,411) $
66,824,234
Contingent assets and contractual rights (notes 16 and 18) Contingent liabilities and contractual obligations (notes 17 and 19)
Approved by the Board of Governors:
[signed by V. Sheane, PhD, RN] _____________________________ _ Vanessa Sheane, PhD, RN President & CEO
[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, 2026 Budget (note 26) Revenues Government of Alberta grants (note 23)
$
2026
48,027,524
$
50,885,129
2025
$
49,068,835
Federal and other government grants (note 23)
1,770,603
1,989,589
2,104,905
Student tuition and fees
17,410,179
18,540,396
19,799,883
Sales of services and products
6,377,330
7,127,865
7,059,346
Donations and other grants
2,335,779
2,435,560
1,529,236
Investment income (note 24)
3,730,000
2,768,306
8,087,090
79,651,415
83,746,845
87,649,295
Expenses (note 20) Instruction
31,726,009
31,025,004
28,448,850
Academic and student support
14,511,267
14,322,923
13,956,974
Facility operations and maintenance
14,224,546
15,838,954
16,186,887
Institutional support
12,818,633
14,935,922
12,884,740
Ancillary services
3,870,094
3,793,043
3,863,915
Sponsored research
1,173,989
1,395,906
1,145,324
Special purpose
1,326,876
1,001,725
766,549
79,651,415 -
82,313,477 1,433,368
77,253,239 10,396,056
-
203,000
1,245,630
Annual surplus
-
1,636,368
11,641,686
Accumulated surplus, beginning of year
-
67,087,645
55,445,959
Annual operating surplus Endowment contributions (note 15)
Accumulated surplus, end of year (note 15)
$
-
$
68,724,013
$
67,087,645
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, 2026
Budget (note 26) Annual surplus
2026 $
1,636,368
2025 $
11,641,686
Acquisition of tangible capital assets (note 12)
(35,932,931)
(23,538,037)
Proceeds from sale of tangible capital assets
16,929
26,790
5,944,674
5,916,258
(16,929)
(11,449)
Amortization of tangible capital assets (note 12)
6,000,000
(Gain) loss on disposal of tangible capital assets Increase in inventories of supplies
(22,210)
(26,296)
Decrease (increase) in prepaid expenses
463,042
(375,286)
Increase in spent deferred capital contributions
7,309,499
9,488,727
631,246
(3,407,680)
(19,970,312) $
(285,287)
Increase (decrease) in accumulated remeasurement gains (losses) Decrease in net financial assets
$
Net financial assets, beginning of year Net financial assets, end of year
26,337,057 $
6,366,745
26,622,344 $
26,337,057
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, 2026 2026 Accumulated remeasurement (losses) gains, beginning of year
$
(263,411)
2025 $
3,144,269
Unrealized gains (losses) attributable to: Quoted in active market financial instruments: Portfolio investments - non-endowment
868,378
(654,253)
141,571
290,676
(378,702)
(3,044,103)
Change in accumulated remeasurement gains (losses)
631,247
(3,407,680)
Accumulated remeasurement gains (losses), end of year
367,836
(263,411)
Accumulated remeasurement gains (losses) are comprised of: Portfolio investments - non-endowment
226,265
(554,087)
141,571
290,676
Foreign exchange gain Amounts reclassified to the consolidated statement of operations: Net realized gains (losses) on investments: Portfolio investments - non-endowment
Foreign exchange gain $
367,836
$
(263,411)
The accompanying notes are an integral part of these consolidated financial statements. 8
Northwestern Polytechnic Consolidated Statement of Cash Flows Year Ended March 31, 2026
Operating transactions Annual surplus
$
2026
2025
1,636,368 $
11,641,686
Add (deduct) non-cash items: Unrealized gain on cash surrender value of life insurance Amortization of tangible capital assets (note 12)
(23,920)
(12,196)
5,944,674
5,916,258
Assets received through in-kind donations (note 12)
(68,940)
(218,001)
Gain on disposal of portfolio investments
(844,159)
(8,628,999)
Gain on disposal of tangible capital assets Expended capital contributions recognized as revenue (note 13)
(16,929)
(11,449)
(2,875,581)
(3,377,133)
Change in employee future benefit liabilities
231,274
(44,317)
Accretion of asset retirement obligation (note 14)
141,640
120,585
Bad debt expense
24,207
-
4,148,634
5,386,434
(9,983,124)
(1,920,621)
Change in non-cash items: Increase in accounts receiveable Increase in inventories held for resale
(237,775)
(131,082)
Increase in accounts payable and accrued liabilities
4,840,407
4,326,909
Increase in deferred revenue, less unrealized deferred (gains) losses
9,334,885
1,767,060
Increase in inventories of supplies
(22,210)
(26,296)
Increase in prepaid expenses
463,041
(375,286)
8,543,858
9,027,118
(33,292,873)
(43,647,249)
50,232,182
41,939,794
16,939,309
(1,707,455)
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 Funding received for capital contributions (note 13) Cash provided by financing transactions Capital transactions Acquisition of tangible capital assets, less in-kind donations
(721,730)
(637,557)
10,185,080
12,865,859
9,463,350
12,228,302
(35,863,991)
(23,320,036)
16,929
26,791
(35,847,062)
(23,293,245)
(900,545) 4,774,391
(3,745,280) 8,519,671
3,873,846 $
4,774,391
Proceeds on sale of tangible capital assets Cash applied to capital transactions Decrease in cash and cash equivalents Cash and cash equivalents at beginning of year 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, 2026
1.
Authority and purpose The Board of Governors of Northwestern Polytechnic is a corporation that 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 estimates made in the preparation of these consolidated financial statements. 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 cost or net recoverable 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, 2026
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 or to purchase intangible assets, revenue will be recognized over the useful life of the tangible capital asset or the intangible assets. 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. Land transferred from related parties is recognized as revenue at the related party's carrying amount.
11
Northwestern Polytechnic Notes to the Consolidated Financial Statements Year Ended March 31, 2026
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, 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, 2026
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, 2026
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, 2026 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, 2026
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, 2026
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, 2026. Where an environmental standard does not exist or contamination does not exceed an environmental standard, a liability for remediation of site is recognized by the Polytechnic when the following criteria have been met : • • •
the Polytechnic has a duty or responsibility to others, leaving little or no discretion to avoid the obligation. the duty or responsibility to others entails settlement by future transfer or use of assets, or a provision of services at a specific or determinable date, or on demand; and the transactions or events obligating the Polytechnic have already occured.
16
Northwestern Polytechnic Notes to the Consolidated Financial Statements Year Ended March 31, 2026
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, 2026
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, 2026
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. In addition to the above (meaning the Conceptual Framework), the Public Sector Accounting Board (PSAB) has approved PS 3251: Employee Benefits standard effective for fiscal years starting on or after April 1, 2029. This standard establishes requirements for the recognition, measurement, presentation and disclosure of employee benefits. It replaces PS 3250, Retirement Benefits, and PS 3255, Post-Employment Benefits, Compensated Absences and Termination Benefits. In May 2025, PSAB issued amendments to Section PS 3150, Tangible Capital Assets. The amendments are effective for fiscal years beginning on or after April 1, 2029. Key changes include revised definitions, new guidance on collections, contributed materials and labour costs, and enhanced disclosures. The Polytechnic is currently assessing the impact of the new conceptual framework and standards,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
$
2026
2025
3,873,846 $
4,774,391
Cash balances earn a rate of return of Prime less 1.8% (2025 - Prime less 1.8%). The Polytechnic holds a $4 million revolving line of credit that had no draws for the year ended March 31, 2026. The line of credit bears interest at Prime less 0.25% per annum.
4.
Portfolio investments Portfolio investments - non-endowment
$
Portfolio investments - endowment $
2026
2025
38,553,940 $
52,943,571
9,815,751
9,031,185
48,369,691 $
61,974,756
19
Northwestern Polytechnic Notes to the Consolidated Financial Statements Year Ended March 31, 2026
The composition of portfolio investments measured at fair value is as follows:
2026 Fixed income Canadian bonds
Level 1
$
Level 2
Level 3
Total
- $
9,629,560 $
-
-
11,503,454
-
11,503,454
Equities Canadian equities
13,026,345
-
-
13,026,345
Foreign equities
14,210,332
-
-
14,210,332
- $
48,369,691
Global fixed income mutual funds
Total portfolio investments
$
27,236,677 $ 56 %
2025 Fixed income Canadian bonds
Level 1
$
21,133,014 $ 44 %
Level 2
$
9,629,560
100 %
-%
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 %
29,607,810 $ 48 %
-%
$
15,814,985
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).
There were no transfers between levels during the year.
20
Northwestern Polytechnic Notes to the Consolidated Financial Statements Year Ended March 31, 2026
5.
Accounts receivable Accounts receivable consists of the following:
Trade receivables
$
2025
3,792,070 $
2,733,327
Government of Alberta grants receivable
8,010,309
48,550
Federal Government grants receivable
954,224
1,296,220
1,329,211
24,431
(2,508)
(2,345)
Accrued receivables Allowance for doubtful accounts $ 6.
2026
14,083,306 $
4,100,183
Cash surrender value of life insurance The Foundation is the assignee and beneficiary of life insurance policies with cash surrender values totalling $203,006 (2025 - $179,086).
7.
Accounts payable Accounts payable consists of the following: 2026
2025
11,143,336 $
7,089,261
Accrued liabilities
1,832,729
1,388,369
Vacation liability
3,226,689
2,884,717
16,202,754 $
11,362,347
Trade payables
$
$ 8.
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, 2026 if market prices had a 7.40% (2025 - 6.18%) 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 $2,728,727 (2025 - $2,979,122).
21
Northwestern Polytechnic Notes to the Consolidated Financial Statements Year Ended March 31, 2026
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
$
14,210,332 $
13,855,074 $
14,068,229 $
14,352,435 $
14,565,590
$
17,414,020 $
16,978,669 $
17,239,880 $
17,588,160 $
17,849,370
2026 Foreign currency equities 2025 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: 2026 Credit Rating AAA
$
$
2025 %
$
%
3,506,610
36 % $
3,944,928
25 %
AA
1,879,962
20 %
7,134,184
45 %
A
4,009,356
42 %
3,927,127
25 %
BBB
233,633
2%
808,746
5%
9,629,560
100.00 % $
15,814,985
100.00 %
$ Liquidity risk
Liquidity risk is the risk that the Polytechnic will encounter difficulty in meeting obligations associated with its financial liabilities. To manage this risk, management prepares operating budgets and monitors cash flow needs throughout the year. In the event there are cash flow shortages, the Polytechnic may utilize its portfolio of investments.
22
Northwestern Polytechnic Notes to the Consolidated Financial Statements Year Ended March 31, 2026 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% (2025 - 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 6.96%, of total investments (2025 - 7.14%). 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: 2026
Less than 1 year Canadian bonds
$
Greater than 5 years
1-5 years
333,607 $
2,356,534 $
6,939,419
Average effective market yield
Total $
3.74 %
9,629,560
2025
Less than 1 year Canadian bonds 9.
$
Greater than 5 years
1-5 years - $
2,688,144 $
13,126,841
Average effective market yield
Total $
3.81 %
15,814,985
Employee future benefit liabilities Employee future benefits liabilities are comprised of the following: 2026 Academic staff Long-term disability
$
Support staff
2025 Total
Academic staff
Support staff
Total
155,349 $
517,836 $ 673,185 $
147,285 $
500,347 $
647,632
Sick leave
113,118
96,424
209,542
115,680
98,607
214,287
Leave plans
281,746
85,300
367,046
133,282
54,236
187,518
Maternity and paternity leave
46,291
4,083
50,374
-
25,261
25,261
-
11,316
11,316
-
5,491
5,491
Supplementary retirement plans $ a)
596,504 $
714,959 $1,311,463 $
396,247 $
683,942 $
1,080,189
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, 2026. 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, 2026 and March 31, 2025.
23
Northwestern Polytechnic Notes to the Consolidated Financial Statements Year Ended March 31, 2026
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, 2026. The expense and financial position of these defined benefit plans are as follows: 2026 Sick leave (1)
LTD Expense Current service cost
SRP (1)
96,083 $
32,356 $
Interest cost
34,088
6,310
963
Amortization of net actuarial (gain) loss
(9,063)
(12,952)
631
Total Expense
$
2025
$
121,108 $
Total
4,231 $ 132,670 $
25,714 $
LTD
Sick leave (1)
Sick leave(1)
Total
43,699 $
30,216 $
4,071 $
77,986
41,361
21,798
6,629
2,387
30,814
(21,384)
(37,671)
(13,368)
1,435
(49,604)
27,826 $
23,477 $
7,893 $
59,196
5,825 $ 152,647 $
2026 LTD
SRP (1)
2025
SRP (1)
Total
LTD
Sick leave (1)
SRP (1)
Total
Financial Position Accrued benefit obligation: Balance, beginning of year
783,360 $
149,298 $
19,252 $ 951,910 $ 461,372 $
140,748 $
82,678 $
684,798
Current service cost
96,083
32,356
4,231
132,670
43,699
30,216
4,071
77,986
Interest cost
34,088
6,310
963
41,361
21,798
6,629
2,387
30,814
Benefits paid
(95,555)
(30,459)
-
(126,014)
(58,191)
(32,578)
(69,884)
(160,653)
Actuarial (gain) loss
(147,748)
(2,421)
(3,061)
(153,230)
314,682
4,283
-
318,965
Balance, end of year Unamortized net actuarial gain (loss)
670,228
155,084
21,385
846,697
783,360
149,298
19,252
951,910
2,957
54,458
(10,069)
47,346
(135,728)
64,989
(13,761)
(84,500)
673,185 $
209,542 $
11,316 $ 894,043 $ 647,632 $
Accrued benefit liability
$
$
214,287 $
5,491 $
867,410
(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.
24
Northwestern Polytechnic Notes to the Consolidated Financial Statements Year Ended March 31, 2026
The significant actuarial assumptions used to measure the accrued benefit obligations are as follows: 2026 LTD
2025
Sick leave
SRP
LTD
Sick leave
SRP
4.50%
5.20%
4.35%
4.20%
5.00%
N/A
3.00%
2.75% per year
N/A
3.00%
2.75% per year
4.65%
4.50%
5.20%
4.35%
4.20%
5.00%
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)
12.1 years
10.3 years
16.9 years
11 years
10.3 years
11.8 years
Accrued benefit obligation: Discount rate 4.65% Long-term average compensation increase Benefit cost: Discount rate
(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, 2025, the LAPP reported an actuarial surplus of $22,561,246 (2024 - surplus of $19,557,148). The pension expense recorded in these consolidated financial statements is $2,652,162 (2025 - $2,580,225). Other than the requirement to make additional contributions, the Polytechnic does not bear any risk related to the LAPP if it runs a deficit.
25
Northwestern Polytechnic Notes to the Consolidated Financial Statements Year Ended March 31, 2026
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. 2026 Employee's contributions to the Polytechnic
$
Interest held on employee's contributions Balance, end of year
$
2025
354,974 $
183,497
12,072
4,021
367,046 $
187,518
EA self-initiated leave and ASA Four for Five plans expenses were $nil (2025 - $61,383). 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 $101,194 (2025 - $81,112).
26
Northwestern Polytechnic Notes to the Consolidated Financial Statements Year Ended March 31, 2026
10.
Debt 2026 Maturity Loan #1500775
2025
Interest Rate (%) Amortized Cost Amortized Cost
November 2026
6.0
% $
Loan #1500778
July 2027
6.1
%
-
60,000
Loan #3500015
September 2030
4.4
%
629,921
753,952
Loan #4000180
December 2036
4.4
%
3,032,201
3,242,149
Loan #4000464
March 2038
4.7
%
2,444,121
2,592,793
Loan #4000728
June 2039
5.1
%
2,904,545
3,051,624
9,010,788 $
9,732,518
$
- $
32,000
Collateral for all loans is the title to student residence land and buildings with a carrying value of $5,990,974 (2025 - $6,813,847). Loans #150075 and #150078 were fully repaid during the year and had no outstanding balance at year-end. 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 2027
$
Interest
Total
659,227 $
415,939 $
1,075,166
2028
690,110
385,056
1,075,166
2029
722,444
352,722
1,075,166
2030
756,299
318,867
1,075,166
2031
713,846
283,421
997,267
5,468,862
1,064,614
6,533,477
9,010,788 $
2,820,620 $
11,831,408
Thereafter $
Interest expense on debt is $445,479 (2025 - $474,162) and is included in the consolidated statement of operations.
27
Northwestern Polytechnic Notes to the Consolidated Financial Statements Year Ended March 31, 2026
11.
Deferred revenue Deferred revenues are set aside for specific purposes as required either by legislation, regulation or agreement:
2026 Unspent externally restricted contributions Balance, beginning of year
$
Grants, tuition, and other donations Investment income Unrealized gains (losses) Transfers to spent deferred capital contributions (note 13) Transfers to endowments (note 15) Recognized revenue Balance, end of year
$
2025
Student tuition, fees and other revenue
Total
Total
13,792,079 $
4,356,373 $
18,148,452 $
18,003,927
71,110,583
3,441,855
74,552,438
29,907,140
205,747
-
205,747
2,946,657
1,227,379
-
1,227,379
(1,622,535)
(10,185,080)
-
(10,185,080)
(12,865,859)
(100,000)
-
(100,000)
(1,095,630)
(53,359,955)
(4,233,023)
(57,592,978)
(17,125,249)
22,690,753 $
3,565,205 $
26,255,958 $
18,148,452
28
Northwestern Polytechnic Notes to the Consolidated Financial Statements Year Ended March 31, 2026
12.
Tangible capital assets
Land
Buildings and site improvements
Furnishings, equipment & systems
(a)
(a,b)
2026
2025
Total
Total
Learning resources (c)
Cost Balance, beginning of year
$
2,706,654 $ 190,185,776 $
52,335,586 $
643,422 $ 245,871,438 $ 224,485,813
2,065,921
32,078,701
1,731,986
56,323
35,932,931
23,538,037
-
-
(99,800)
-
(99,800)
(2,152,411)
4,772,575
222,264,477
53,967,772
699,745
281,704,569
245,871,439
Accumulated Amortization Balance, beginning of year
-
121,800,807
40,623,431
373,827
162,798,065
159,018,875
Amortization expense
-
3,708,638
2,178,614
57,422
5,944,674
5,916,258
Effects on disposals, including writedowns
-
-
(99,800)
-
(99,800)
(2,137,068)
-
168,642,939
162,798,065
Acquisitions Disposals, including write-downs
125,509,445
42,702,245
431,249
Net Book value at March 31, 2026
$
4,772,575 $
96,755,032 $
11,265,527 $
268,496 $ 113,061,630
Net book value at March 31, 2025
$
2,706,654 $
68,384,969 $
11,712,155 $
269,595
$ 83,073,373
No interest was capitalized by the Polytechnic in 2026 (2025 - $nil). (a) Cost includes work in progress at March 31, 2026, totalling $44,503,597 (2025 - $20,484,893) comprised of buildings and site improvements of $44,503,597 (2025 - $20,270,251) primarily for the Power Engineering and Instrumentation Lab, Rural Alberta Medical Program Anatomy Lab and Health Education Centre, trade expansion and relocation, and furnishings, equipment and systems of $nil (2025 - $214,642). These assets are not amortized until put in use.
Costs includes asset retirement obligations at March 31, 2026, totalling $8,187,676 (2025 - $4,560,385) comprised of buildings and site improvements of $8,182,020 (2025 - $4,554,728) and furnishings, equipment and systems of $5,567 (2025 - $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 $68,940, of gift-in-kind donations (2025 - $218,001). (c) Learning resources consists of library holdings.
29
Northwestern Polytechnic Notes to the Consolidated Financial Statements Year Ended March 31, 2026
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). Deferred capital contributions are amortized into revenue at the same rates the underlying tangible capital assets purchased are amortized.
2026 Balance, beginning of year
44,176,331 $
34,687,606
Funding received for capital contributions
10,185,080
12,865,859
Expended capital contributions recognized as revenue
(2,875,581)
(3,377,133)
51,485,830 $
44,176,331
Balance, end of year 14.
$
2025
$
Asset retirement obligations 2026 Balance, beginning of year
$
4,758,464 $
2025 4,637,879
Revision in estimates
1,372,365
-
Liability incurred
1,738,057
-
Accretion expense
141,640
120,585
3,252,062 8,010,526 $
120,585 4,758,464
Increase in asset retirement obligations Asset retirement obligations, end of year
$ $
Asset retirement obligations at March 31, 2026, totalling $8,010,526 (2025 - $4,758,464) include buildings and site improvements of $8,003,787 (2025 - $4,752,595) and furnishings, equipments and systems of $6,739 (2025 - $5,869). 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, accredited third party valuator. Asset retirement obligations are expected to be settled over the next 1 to 28 years.
30
Northwestern Polytechnic Notes to the Consolidated Financial Statements Year Ended March 31, 2026
15.
Net assets The composition of net assets is as follows: Accumulated surplus from operations Net assets as at March 31, 2024
$
Investment in tangible capital assets (a)
3,733,296 $
15,771,377 $
Internally restricted surplus (b)
Endowments
31,300,000 $
7,785,555 $
Total accumulated surplus 58,590,228
Annual surplus
11,641,686
-
-
-
11,641,686
Endowments New donations
(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 (note 12)
(3,120,872)
10,672,177
(7,551,305)
-
-
Debt - repayment
(637,557)
637,557
-
-
-
Change in asset retirement obligations (note 14)
120,585
(120,585)
-
-
-
Net book value of tangible capital asset disposals
15,342
(15,342)
-
-
-
(9,508,487)
-
9,508,487
-
-
(3,407,680)
-
-
-
(3,407,680)
Net transfer to internally restricted surplus Change in accumulated remeasurement gains (losses) Net assets as of March 31, 2025
$
129,808 $
24,406,059 $
33,257,182 $
9,031,185 $
66,824,234
Annual surplus
1,636,368
-
-
-
1,636,368
Endowments New donations
(103,000)
-
-
103,000
-
Transfer from deferred revenue (note 11)
(100,000)
-
-
100,000
-
Tangible capital assets Amortization of internally funded tangible capital assets (note 12)
3,069,093
(3,069,093)
-
-
-
Internally funded acquisition of tangible capital assets
(6,651,678)
25,747,851
(19,096,173)
-
-
Debt - repayment
(721,730)
721,730
-
-
-
Change in asset retirement obligations (note 14)
3,252,063
(3,252,063)
-
-
-
Net transfer to internally restricted net assets
(701,953)
-
701,953
-
-
Change in accumulated remeasurement gains (losses)
631,247
-
-
-
631,247
Net assets as at March 31, 2026
$
440,218 $
44,554,484 $
14,862,962 $
9,234,185 $
69,091,849 31
Northwestern Polytechnic Notes to the Consolidated Financial Statements Year Ended March 31, 2026
Accumulated surplus from operations
Investment in tangible capital assets (a)
Net assets are comprised of: Accumulated surplus
72,382
44,554,484
Accumulated remeasurement gains (losses)
367,836
-
$
440,218 $
44,554,484 $
Internally restricted surplus (b)
Endowments
Total accumulated surplus
14,862,962
9,234,185
68,724,013
-
-
367,836
14,862,962 $
9,234,185 $
69,091,849
(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:
2026 Capital Renewal and Upgrade
$
2025
4,757,830 $
Information Technology Renewal and Upgrades
15,716,630
-
6,500,000
Center for Entrepreneurial Excellence
2,044,793
3,182,166
Operating Contingency
4,000,000
6,000,000
Foundation
1,502,704
1,262,096
Amount set aside for NWP Business Corporation
1,500,000
-
Polytechnic appropriations for operating activities
1,057,635
596,290
14,862,962 $
33,257,182
Total
$
Internally restricted net assets under Capital 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, 2026, the Polytechnic does not have any open matters which would give rise to contingent assets.
17.
Contingent liabilities As of March 31, 2026, Northwestern Polytechnic was named a defendant in four (2025 - 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.
32
Northwestern Polytechnic Notes to the Consolidated Financial Statements Year Ended March 31, 2026 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 2027
19.
$
Service & Other Contracts
204,576 $
Total
165,103 $
369,679
2028
200,125
-
200,125
2029
184,535
-
184,535
2030
121,770
-
121,770
2031
104,594
-
104,594
Thereafter
742,356
-
742,356
Total at March 31, 2026
$
1,557,956 $
165,103 $
1,723,059
Total at March 31, 2025
$
699,181 $
348,685 $
1,047,866
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 2027
$
Information Systems and Technology
Capital Projects
4,571,300 $
17,717,328 $
Long-Term Leases
Total
881,571 $
5,746 $
23,175,945
2028
1,935,647
713,580
767,346
5,740
3,422,313
2029
389,351
-
637,304
5,734
1,032,389
2030
-
-
618,667
5,734
624,401
2031
-
-
498,595
4,601
503,196
Thereafter
-
-
508,568
41
508,609
Total at March 31, 2026
$
6,896,298 $
18,430,908 $
3,912,051 $
27,596 $
29,266,853
Total at March 31, 2025
$
3,804,213 $
6,857,616 $
4,259,290 $
917 $
14,922,036
33
Northwestern Polytechnic Notes to the Consolidated Financial Statements Year Ended March 31, 2026
20.
Expense by object The following is a summary of expense by object:
Salaries and benefits
$
Materials, supplies and services
2025
Budget (note 26)
Actual
Actual
50,434,086 $
48,860,741 $
46,757,782 15,299,961
16,335,097
18,630,956
Cost of goods sold
44,870
267,997
61,250
Scholarships and bursaries
600,000
619,298
734,679
Maintenance and repairs
3,937,819
6,256,641
6,331,668
Utilities
2,299,543
1,733,170
2,151,641
Amortization of tangible capital assets
6,000,000
5,944,674
5,916,258
79,651,415 $
82,313,477 $
77,253,239
$ 21.
2026
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. 2026 Academic Staff Association Professional Growth
$
505,069
Alberta Union of Public Employees Staff Development (receivable)
(10,272)
7,284
Other
67,368
232,994
70,330 $
745,347
$ 22.
13,234 $
2025
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.
34
Northwestern Polytechnic Notes to the Consolidated Financial Statements Year Ended March 31, 2026
23.
Government transfers 2026
2025
37,117,089 $
37,117,089
Grants from Government of Alberta: Advanced Education: Operating
$
Power Engineering and Instrumentation Lab
-
9,300,000
Atrium and Library Upgrades
6,400,000
-
Capital Maintenance Renewal
4,884,803
3,434,803
Apprenticeship
3,255,010
4,270,515
Apprenticeship Education Program
1,249,593
-
Skilled Trades Expansion Project
1,000,000
-
Target Enrolment Expansion
924,620
588,385
Veterinary Technician Transition
750,000
-
Student Mental Health
220,000
144,903
Mental Health Professionals
120,619
708,325
Other
877,849
870,590
56,799,583
56,434,610
Total Advanced Education Other Government of Alberta departments and agencies: Northern Alberta Medical Program
7,073,183
425,919
Department of Children and Family Services
702,313
601,225
Other
145,000
132,147
Total other Government of Alberta departments and agencies
7,920,496
1,159,291
Total contributions received
64,720,078
57,593,900
Expended capital contributions recognized as revenue
2,055,480
2,566,152
(15,890,429)
(11,091,217)
50,885,129 $
49,068,835
Deferred revenue $ Federal and other government grants: PrairiesCan
1,174,448
-
Natural Sciences and Engineering Research Council
794,391
1,043,300
Other
670,627
201,388
2,639,466
1,244,688
455,790
455,822
(1,105,667)
404,395
Total contributions received Expended capital contributions recognized as revenue Deferred revenue $
1,989,589 $
2,104,905
35
Northwestern Polytechnic Notes to the Consolidated Financial Statements Year Ended March 31, 2026
24.
Investment income Investment income consists of the following:
Investment income earned during the year
$
2026
2025
2,974,052 $
11,033,747
Investment income deferred on capital projects Investment income deferred on restricted grants and donations $
-
(67,674)
(205,747)
(2,878,983)
2,768,306 $
8,087,090
2026
2025
Investment income earned during the year consists of the following:
Interest
$
Dividends Realized gain classified to income Investment income earned during the year
$
798,694
$
1,039,144
1,402,591
1,317,433
772,767
8,677,170
2,974,052
$
11,033,747
36
Northwestern Polytechnic Notes to the Consolidated Financial Statements Year Ended March 31, 2026
25.
Salary and employee benefits 2026 Other cash benefits (c)
Base salary (b) Governance (a) Chair of the Board of Governors
$
2025
Other non-cash benefits (d)
Total
- $
7,334 $
7,565 $
8,268
-
36,819
1,459
38,278
38,510
Executive President
252,535
21,000
37,066
310,601
305,340
Vice Presidents Academics and Research
Members of the Board of Governors
231 $
Total
207,251
6,000
36,936
250,187
270,359
Finance and Administration (e)
128,634
242,955
20,222
391,811
240,420
External Relations
198,134
12,480
36,132
246,746
225,852
184,288
6,480
33,332
224,100
225,990
333,068 $
165,378 $
1,469,288 $
1,314,739
Other Executive Director, Human Resources Total
$
970,842 $
(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 (2025 - $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) The former Vice President of Finance and Adminstration was in this role from August 21, 2023, to November 14, 2025. This position is currently vacant.The position was renamed to Vice President Finance and Administration during the year. This position was formerly Vice President Administration.
37
Northwestern Polytechnic Notes to the Consolidated Financial Statements Year Ended March 31, 2026
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 2025 Presidents: Current President
Interest Cost
Service Cost
Benefit Payments
Actuarial Loss (Gain)
Accrued Obligation 2026
$
19,252 $
963 $
4,231 $
- $
(3,061) $
21,385
$
19,252 $
963 $
4,231 $
- $
(3,061) $
21,385
The significant actuarial assumptions used to measure the accrued benefit obligation are disclosed in note 9. 26.
Budget figures The Polytechnic's 2025-26 budget was approved by the Board of Governors and submitted to the Minister of Advanced Education.
38
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