Lakeland College 2017-18 Annual Report

ANNUAL REPORT 2017-18

OUR MISSION To inspire lifelong learning and leadership through experience, excellence, and innovation.

OUR VISION Transforming the future through innovative learning.

OUR VALUES • Learner Success • Integrity • Respect • Community • Excellence • Innovation

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TABLE OF CONTENTS

4

Accountability Statement

5

Management’s Responsibility for Reporting

5

Public Interest Disclosure (Whistleblower Protection) Act

6

President’s Message

8 Mandate 9

Operational Overview

11

Goals, Priority Initiatives, Expected Outcomes and Performance Measures

28

Access and Quality

30

Enrolment Plan

33

Community Outreach & Underrepresented Learners

37

Applied Research

39 Internationalization 40

Information Technology

41

Capital Plan

44

Financial Discussion and Analysis

52

Financial Statements

Auditor’s Report

Statement of Management Responsibility

Statement of Financial Position

Statement of Operations

Statement of Change in New Financial Assets

Statement of Remeasurement Gains and Losses

Statement of Cash Flows

Notes to the Financial Statements

75 Appendix

Donors

Annual Report 2017-18 | 3

ACCOUNTABILITY STATEMENT Lakeland College’s Annual Report for the year ended June 30, 2018 was prepared under the Board’s direction in accordance with the Fiscal Planning and Transparency 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 Scott Webb] Chair Lakeland College Board of Governors December 2018

Board of Governors As of June 30, 2018 Chair Darrel Howell

Student Member Rachel Lambert

Vice Chair Bryan Perkins

Academic Staff Member Wanjiku Kaai

President & CEO Dr. Alice Wainwright-Stewart

Non-academic Staff Member Debbie Holden

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Public Members Jason Bazinet Linnea Goodhand Jo-Ann Hall Dianne Harder Jenelle Saskiw Jay Woosaree

MANAGEMENT’S RESPONSIBILITY FOR REPORTING Lakeland College’s management is responsible for the preparation, accuracy, objectivity and integrity of the information contained in the Annual Report including the financial statements, performance results and supporting management information. Systems of internal control are designed and maintained by management to produce reliable information to meet reporting requirements. The system is designed to provide management with reasonable assurance that transactions are properly authorized, are executed in accordance with all relevant legislation, regulations and policies, reliable financial records are maintained and assets are properly accounted for and safeguarded.

The Annual Report has been developed under the oversight of the institution audit committee, as well as approved by the Board of Governors and is prepared in accordance with the Fiscal Planning and Transparency Act and the Post-secondary Learning Act. The Auditor General of Alberta, the institution’s external auditor appointed under the Auditor General Act, performs an annual independent audit of the financial statements which are prepared in accordance with Canadian public sector accounting standards.

[Original signed by Murray Walford] Chief Financial Officer Lakeland College

Public Interest Disclosure (Whistleblower Protection) Act Under the Public Interest Disclosure (Whistleblower Protection) Act, Lakeland employees can report in good faith when they believe a wrongdoing has occurred. Lakeland has a detailed procedure that explains the whistleblower process that is followed. A requirement of the Public Interest Disclosure (Whistleblower Protection) Act is that all disclosures made during the year are reported.

Lakeland did not receive any disclosures during the 2017-18 year.

Annual Report 2017-18 | 5

Lakeland College students are leaders and as I reflect on the 2017-18 academic year, a great many come to mind.

Lance Beloin, a parts technician, received the 2017 Top Apprentice Award from the Apprenticeship and Industry Training Board. Mandy Davediuk and Mackenzie Dieleman earned second- and third-place finishes, respectively, in the 2017-18 National Kitchen and Bath Association (NKBA) Student Design Competition. Our case team placed third at the 13th annual Alberta Deans of Business Case Competition. Chanell Stewart won the 2018 Best of the Prairies Makeup and Hair Competition. Lindsay Graham earned second place in the 2018 Alberta Provincial Skills Canada Competition steamfitter/ pipefitter category, while Dylan Rollheiser received gold and bronze was awarded to Derek Haggart in the automobile technology category.

PRESIDENT’S MESSAGE

While these students made headlines, many more developed essential skills and gained industry-relevant knowledge through a range of student-led and student-managed experiences, events and enterprises. From running crop, livestock and research units on the Student-Managed Farm – Powered by New Holland to organizing math fairs and operating a play program, to taking charge of projects through the Student-Environmental Consulting Office and more, these opportunities are what make Lakeland an award-winning leader in student-led learning.

More importantly though, these opportunities are what put our students in the lead and give them a chance to excel as leaders today.

An ongoing priority for Lakeland is to increase student-led learning opportunities, and we did so in 2017-18. Business students formed a student-led Concession Management Board, the Student Ambassador Program was revamped to include robust leadership opportunities and plans for retail sales in the student-run campus spa and salon progressed.

It’s exciting to see the possibilities our student leaders capitalize on with the quality education we provide. In turn, it’s what makes Lakeland one of the top post-secondary institutions in the nation according to the Campus Rankings 2017 Student Survey. Here are a few of Lakeland’s placements in the college rankings: • 1st in Most Recommended by Students • 1st in Best Academic Counselling • 1st in Most Approachable Professors • 2nd in Best Overall Value • 2nd in Happiest Students • 2nd in Most Skills-Focused Curriculum • 2nd in Most Involved Students We’ve created an environment where our students can develop

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the confidence and the groundwork to succeed. Lakeland staff are integral to this. They work hard and are committed to ensuring Lakeland continues its mission to inspire lifelong learning and leadership through experience, excellence and innovation.

Our team is instrumental in every facet of development and achievement at Lakeland, which there was much to celebrate in 2017-18. We opened our new 46,600 sq. ft. Dairy Learning Centre on Aug. 22 at the Vermilion campus; we celebrated the opening of our Indigenous Student Lounge at our Lloydminster campus on Jan. 18; and we opened our new Energy Park Site on April 18 thanks to the generosity of donor Barry Anderson.

We also completed construction of our new Animal Health Clinic, which will be available for students in the fall. Lakeland completed these projects thanks to investments from the Government of Alberta and the Government of Canada, generous donors and industry partners, and the use of internal financial resources.

With support from the Government of Alberta, we began repair work on our Trades Centre. Modernizing Lakeland’s learning environments to better meet our students’ needs is a key priority for Lakeland as aging infrastructure continues to be a significant challenge. This past year we completed the Vermilion Campus Revitalization plan to set the direction for much-needed investment at this campus. We also completed a residence assessment and draft business plan. With prudent financial strategies in place and the ongoing success of our Leading. Learning. The Lakeland Campaign., I am confident we will continue to make progress.

We continued our work to ensure Lakeland is an inclusive and supportive place for all students with learner support services, access to physical and mental health supports and initiatives, and further learning opportunities. We made great strides in our Indigenization efforts with a number of social and cultural events that celebrate and increase awareness of Indigenous culture throughout the college.

Beyond our campuses, we enhanced our program offerings in collaboration with several partners, including the University of Alberta, Northern Lakes College and the University of Calgary Faculty of Veterinary Medicine. On campus, we offered three new certificate programs in fall 2017 – including 2nd Class power engineering, hairstyling and administrative professional – all of which were vetted with industry partners, alumni and stakeholders to expand career opportunities for students.

the 2017 NKBA College of the Year for our interior design technology program. We made the list of Alberta’s Top 70 Employers for the second consecutive year. We applauded Josie Van Lent, dean of the School of Agricultural Sciences, for receiving the 2018 Gold Award of Excellence (staff-managerial) from Colleges and Institutes Canada, and Judy Eyben, residence life facilitator, for being recognized with the Josie Lamothe Memorial Award for outstanding student service.

We cheered on our Rustlers student-athletes, 15 of whom were recognized nationally as some of the top academic athletes in Canada. Our men’s basketball team finished second in the ACAC while our women’s volleyball team won the ACAC and returned home from the national championships with a bronze medal. These student-athletes also gave back to the community with 2,000 volunteer hours, which is something else that made us cheer.

We thanked our industry partners and stakeholders, community and alumni for their ongoing support at three key profile events that raised $132,250 for our students, and for their commitment to our Leading. Learning. The Lakeland Campaign.

In 2017-18, we also welcomed six new members to our Board of Governors who understand and value our vision to transform the future through innovative learning. As we move forward, our ongoing capital, programming and student leadership initiatives will continue to prepare Lakeland students for success in a diversified and technology-driven economy.

On behalf of the Board of Governors and my colleagues, I am pleased to present Lakeland’s annual report for the year ended June 30, 2018.

[Original signed by Alice Wainwright-Stewart] President and CEO Lakeland College

In enrolment, we saw an increase of 6.6 per cent full-load equivalents. New programs and increased enrolment in business, agricultural sciences, university transfer and human services contributed to this increase.

We also celebrated several awards, including being named Annual Report 2017-18 | 7

MANDATE Established under the Post-secondary Learning Act (PSLA), the Board manages and operates the post-secondary institution within its approved mandate [PSLA Section 60(1)(a)].

Lakeland College is a public, board-governed college operating as a Comprehensive Community Institution under the authority of the PSLA. Established in 1913, Lakeland College has campuses in Vermilion and Lloydminster. Lakeland College awards certificates, diplomas and applied degrees. The college also offers baccalaureate degree programs in collaboration with degree-granting institutions.

Complementing the economic strengths of Alberta, Lakeland College’s programming seeks to meet the needs of learners, communities, business and industry in its service region. Programming includes agricultural and environmental sciences, apprenticeship and industry training, energy, fire and emergency services training, wellness and human services, business and university transfer. The college also designs and delivers programs to meet specific learner, community and industry needs through continuing education and corporate training.

Lakeland College promotes innovation by conducting applied research activities that are relevant to its program areas, complement teaching and learning, and advance innovation-based rural community economic development. The focus of applied research is primarily in agricultural sciences, energy and environmental sciences. Initiatives are geared towards supporting Alberta’s future economy by helping industry partners capitalize on new opportunities and find solutions to current challenges.

Lakeland College’s commitment to the collaborative principles of Campus Alberta is demonstrated through partnerships and transfer agreements within the post-secondary system that strengthen its programming and service capacity while improving efficiencies. Lakeland College works with school jurisdictions to host career and technology studies courses and support learner pathways into post-secondary, such as providing dual credit programming so students can earn high school and college credits at the same time.

Using different instructional delivery methods including face-to-face, blended and distance learning, Lakeland College is able to maximize learner access to high-quality and affordable lifelong learning opportunities. To inspire learner success, Lakeland College provides a learning and teaching commons that creates personalized learning pathways and supports instructional excellence.

Students develop competencies in different learning methods and technologies so they are prepared for lifelong learning.

International projects, practicum experiences and study abroad opportunities combined with increased international student enrolment at the college’s campuses help prepare students for participation in an interconnected world.

To enhance students’ college experience, Lakeland College offers a full range of services including academic advising, athletics, cafeterias, clubs, financial aid, health, learning strategies and support, recreation, residence, student centres, student employment and wellness services. The college has numerous specialized facilities such as multiple music studios, two community theatres, two recreation centres, a swimming pool and an indoor riding arena that are often the site of community events and activities and help support the recreational, cultural, fitness and conferencing needs of the region it serves.

Approved by the Board of Governors March 25, 2015 Approved by the Minister, Innovation and Advanced Education June 24, 2015

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OPERATIONAL OVERVIEW Lakeland provides high quality, industry-relevant, affordable and accessible post-secondary education. Learners are transformed into leaders through student-managed enterprises, events and experiences at Lakeland. Programming areas at Lakeland include agricultural sciences, business, energy, environmental sciences, fire and emergency services, health and wellness, human services, interior design technology, trades and technology, and university transfer.

Over the last four years including 2017-18, enrolment at Lakeland increased. Business, agricultural sciences and university transfer reported the most growth in full-time students. Part-time programs that experienced the most gains were early learning and child care, and educational assistant.

Economic Overview The major recession, which was due to plunging oil prices that hit Alberta in the winter of 2014-15, appears to be over. The lowest point of the recession occurred in early 2016 when oil prices dipped below $30 per barrel. Since then, a steady recovery has occurred. The Alberta GDP (calculated from StatCan information) declined by 3.9 per cent in 2015, and another 3.6 per cent in 2016.

However, it increased by 4.9 per cent in 2017 and is expected to increase by another 2.7 per cent in 2018. By the end of 2017, crude oil prices reached $50 per barrel and steadily increased to over $60 by mid-2018. Although the price has leveled off to the mid-$50 range, forecasts suggest this is only a temporary slump and prices are expected to recover.

The state of the economy affects Lakeland’s enrolment in two ways. A recession will typically result in an increase in nonapprenticeship related enrolments, and a decrease (albeit delayed) in enrolments in apprenticeship programs. This ‘converse’ relationship was evident in the 2017-18 fiscal year when Lakeland had a large reduction in trades and technology apprenticeship seats and a moderate increase in enrolments in business, agricultural sciences, university transfer and human services programs, but an overall increase of 67 full-load equivalent students. This will likely reverse as the economy improves – increased seats in apprenticeship programs and fewer enrolments in other programs.

The economy also affects Lakeland because of its effect on the Government of Alberta budget. The government had a $11 billion deficit in 2016-17. Post-secondary institutions have been fortunate that the government chose not to reduce operating grants, and has in fact increased them by two per cent in each of the last two years (including 2018-19). It has also provided a new grant for mental health initiatives. Lakeland should be cautious with future budgets because this trend may not continue.

Because of its fiscal situation, the Government of Alberta mandated a zero per cent increase to salary and benefits for postsecondary institutions for 2017 and 2018. Lakeland has therefore not had to dip into its contingency fund to cover expected cost of living adjustments. Also, because salaries and benefits are not increasing as much as they had in the past, and good investment returns, the Local Authorities Pension Plan is now in a surplus position. As a result, employer and employee contributions were reduced by one per cent in 2018.

Government Funding Despite the province’s fiscal situation, the NDP government has been supportive of post-secondary institutions. Operating grants have increased with inflation and the ongoing tuition fee freeze was offset by a corresponding inflationary increase to the operating grant. A provincial election will be held in spring 2019.

Capital Investment Lakeland needs to invest heavily in the revitalization of its infrastructure – the investment needed is estimated to be $150 million (March 2018). Lakeland is building a Strategic Investment Fund in order to address this critical need. Lakeland allocated another $9 million into its Strategic Investment Fund for the year ended June 30, 2018. Total available funding is now just over $18 million.

Much more is needed and Lakeland will need to generate future surpluses and also receive funding support from the provincial and/or federal governments. Fortunately, Lakeland received funding from the Government of Canada’s Post-Secondary Institutions Strategic Investment Fund for the Dairy Learning Centre ($3.5 million, grand opening September 2017) and the Animal Health Clinic ($2.5 million, grand opening September 2018). From the Government of Alberta, Lakeland received $1.76 million for the Animal Health Clinic, and $6 million for the Trades Centre building roof replacement. Nevertheless, more funding will be needed in the future.

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Risk Management The biggest risk facing Lakeland is its dependence on funding from the Government of Alberta (55 per cent of revenue) and ongoing regulation of tuition fees (21 per cent of revenue). In normal fiscal environments, salary and benefit costs increase above the rate of inflation (cost of living and merit), however, the government restricts growth in grants and tuition fees to inflation. This structural ‘deficit’ must be offset by increased enrolments without corresponding increases in costs, and/or large increases to other revenue sources. Changes in governments and/or government policy can also significantly affect college operations – major reductions to grants have occurred in the past and should be expected in the future.

Aging infrastructure is another major risk, as discussed previously.

An emerging risk is related to new legislation regarding occupational health and safety. Providing a safe workplace for staff is the responsibility of Lakeland, and providing a workplace safe from harassment and bullying is now included in the legislation.

Cyber security continues to be a significant risk. MacEwan University’s much publicized loss due to phishing, and other incidents related to phishing and systems hostage, has turned attention to financial and cyber security controls in the public sector. The government is currently reviewing the financial control framework at post-secondary institutions. Recommendations may require increased investment in control functions – including cyber security and internal audit. Increasing attention from the government will also require more time and resources to address the ever-increasing information and reporting requests.

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GOALS, PRIORITY INITIATIVES, EXPECTED OUTCOMES AND PERFORMANCE MEASURES In the 2017-20 Comprehensive Institutional Plan, Lakeland outlined four strategic goals with accompanying priority initiatives, expected outcomes and performance measures that align with Alberta Advanced Education’s principles of accessibility, affordability, quality, coordination and accountability.

1. Learner Success • Increase student-led learning • Maximize student engagement • Enhance supports and services for learners and faculty • Indigenize Lakeland College 2. Relevant Programming and Research • Ensure programs are the highest possible quality • Align programs with the labour market • Build learner pathways • Expand research capacity

3. Connectivity • Increase sustainable resources and support student success through fundraising and external partnerships • Raise Lakeland’s profile as an institution of excellence that provides program pathways for all learners 4. Sustainability • Modernize the learning environment to better meet student learning needs • Optimize the use of resources to support a stable learning environment • Empower staff to excel to enable excellence in teaching and learning for Lakeland learners

In the following pages, Lakeland reports on the progress made towards achieving its goals.

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GOAL 1: LEARNER SUCCESS The aim of Lakeland’s Learner Success goal is to ensure students are supported and engaged with their learning and, as a result, are better prepared for the labour market or further learning. This goal includes four priority initiatives that align with the Government of Alberta’s (GOA) key principles of Quality and Accessibility.

Type

Description

Expected Completion Status Date (from CIP)

Progress Made in Last 12 Months

Priority Initiative P1 GOA Alignment: Quality

Increase student-led learning

June 2018, 2019, 2020

Achieved

Creation of authentic learning environments that strike the right balance between disciplinespecific competencies and essential skills

June 2019

Ongoing

At least 85 per cent of students are confident they have the necessary skills to take into the workforce (About to Graduate Survey)

June 2018

Achieved

Exceed CCSSE benchmark and be within the top 10 per cent of performing colleges in providing an active and collaborative learning environment

June 2020

Ongoing

Student-led learning is a key area of focus for Lakeland.

In 2017-18, the student-led Concession Management Board was created, plans for retail sales in the student-run campus spa and salon progressed, and the Student Ambassador Program was revamped.

Expected Outcomes EO1

Performance Measures PM1

Result: 95 per cent

Increasing student-led and student-managed learning opportunities remains a priority for Lakeland. Students take the lead by running crop, livestock and research units on the Student-Managed Farm – Powered by New Holland. They take charge of projects through the Student-Environmental Consulting Office. They manage a campus spa and salon, operate a play program, organize math fairs, serve as battalion chiefs and design award-winning kitchens and baths. Participating in student-managed enterprises, events and experiences helps students learn how to think critically and creatively while also developing leadership, teamwork and communication skills.

During the year a Concession Management Board (CMB) was created and run by the college’s first- and second-year business students. The CMB served food and beverages at Rustlers athletic games and events, and generated approximately $5,000 in profit.

Retail sales were introduced into the curricula of the hairstyling and esthetician programs.

The Student Ambassador Program was revamped to feature more opportunities for students to take the lead. Ambassadors contributed to local community projects, gave campus tours to visitors, prospective students and special guests, and completed phone campaigns with prospective students. They also helped with the Student-for-a-Day program, Open House and program information sessions.

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Type

Description

Expected Completion Status Date (from CIP)

Progress Made in Last 12 Months

Priority Initiative P2 GOA Alignment: Quality

Maximize student engagement

June 2018, 2019, 2020

Ongoing

Efforts to maximize student engagement in 2017-18 included increasing recreation programming and volunteer opportunities, creating an Indigenous Student Lounge, and hosting Wellness Fairs, international student orientation events, Reconciliation Speaker Series and Pride Week activities.

Interaction with faculty providing an environment that promotes belongingness

June 2018

Achieved

According to Campus Rankings 2017 Student Survey, Lakeland ranked 2nd for the overall levels of happiness that students feel about their experiences at school.

Exceed CCSSE benchmark and be within the top 10 per cent of performing colleges in ensuring student-faculty interaction

June 2020

Ongoing

At least 50 per cent of student base is involved in some kind of extracurricular activity

June 2019, 2020

Ongoing

Expected Outcomes EO2

Performance Measures PM2

More recreation programming activities were created for students in the first semester than previous years, and there was significant engagement in these unique recreation activities. The Rustlers student-athletes collectively volunteered 2,000 hours in the community.

To increase student engagement in the School of Energy, Social Wednesdays were planned, which increased student access to instructors, the chair and dean.

Annual Report 2017-18 | 13

Type

Description

Expected Completion Status Date (from CIP)

Enhance supports and services for learners and faculty

June 2018, 2019, 2020

Ongoing

Provision of timely, accessible, and targeted supports to underrepresented and disadvantaged learners to ensure their success

June 2018, 2019, 2020

Ongoing

Responsive and accommodating interactions between staff/faculty and students

June 2018, 2019, 2020

Ongoing

Exceed CCSSE benchmark and be within the top 10 per cent of performing colleges in ensuring that appropriate student supports are in place

June 2020

Ongoing

Meet a 95 per cent service level of requests for student support

June 2018

Unknown

Progress Made in Last 12 Months

Priority Initiative P3 GOA Alignment: Quality

The Teaching and Learning Commons department implemented phase one of an Early Alert System for students.

Plans for a new Student Services model are underway.

Expected Outcomes EO3

Performance Measures PM3

Lakeland is not able to accurately track this measurement at this time.

The Teaching and Learning Commons department circulated early alert material in September to faculty.

With the aim of restructuring Student Services to create a one-stop shop service model, the Student Services department participated in two days of facilitated strategic planning with PlanAlberta. A two-year plan was drafted and a plan is in place to develop a new service model for September 2019.

Mental health courses were delivered to firefighter training students.

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Type

Description

Expected Completion Status Date (from CIP)

Progress Made in Last 12 Months

Priority Initiative P4 GOA Alignment: Quality Accessibility

Indigenize Lakeland College

June 2018, 2019, 2020

Ongoing

The MĂŠtis and Treaty Six flags were raised at both campuses. Two flag-raising ceremonies were held in fall 2017.

An Indigenous Student Lounge opened at the Lloydminster campus on Jan. 8.

The Board of Governors participated in an Indigenous Awareness Training program.

Expected Outcomes EO4

College as a community leader in reconciliation initiatives that support Indigenouscentred services and honour cultural traditions

June 2018

Achieved

Indigenous-centred services support learner success

June 2018

Achieved

With funding to support mental health initiatives from the Ministry, Lakeland started an Elder in Residence program.

Lakeland is a community leader in reconciliation initiatives

June 2018, 2019, 2020

Ongoing

A Truth and Reconciliation Speaker Series was held at the Lloydminster campus.

Cultural traditions of Indigenous people are honoured at formal events and ceremonies

June 2018, 2019, 2020

Ongoing

Lakeland hosted The Heart of Treaty Six Reconciliation Declaration event, which symbolized the desire for 18 different communities and agencies to work together towards reconciliation efforts.

Performance Measures PM4

Convocation ceremonies include ceremonial prayers and honour songs. New this academic year was the introduction of territorial acknowledgments at the start of events.

Annual Report 2017-18 | 15

Efforts to Indigenize Lakeland were led by the Teaching and Learning Commons department. Numerous events were held on campus to raise awareness and honour cultural traditions, including the annual teepee raising event, Métis and Treaty Six flag raising ceremonies on both campuses, a reconciliation speakers series, Gordon Tootoosis theatre production, and Orange Shirt Day presentations featuring performances by Onion Lake Cree Nation youth.

The new Indigenous Student Lounge opened at the Lloydminster campus on Jan. 8 to provide a place for Indigenous students to share and learn more about their identity, culture and history and practice spiritual customs. Equipped with workstations, a SMART Board and digital display for presentations, the Indigenous Student Lounge is a place open to all Lakeland students to relax, meet and study. The lounge has a circular seating area which can seat up to 44 people, as well as a smudging area and asiniy (rock) shelf for spiritual practices.

Indigenous Awareness Week was held in April and featured a range of activities. The academic year ended with the honour song being played at convocation ceremonies in Vermilion and Lloydminster, as well as prayers from First Nations and Métis elders. A final reconciliation event was held at the Vermilion campus in June with the screening of Indian Horse.

Indigenous-related activities were also incorporated into the Continuing Education department’s employment skills enhancement, oilfield truck operator and heavy oil and gas programs. Weekly presentations were held in the Indigenous Student Lounge.

The Human Resources department created a recruitment program that minimizes barriers for Indigenous and underrepresented candidate pools. New recruitment software – PeopleSoft Candidate Gateway and Talent Acquisition – was chosen to be implemented. Two Human Resources staff members achieved Registered Professional Recruiter status. A bank of questions and best practices for hiring without systemic discrimination were created.

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GOAL 2: RELEVANT PROGRAMMING AND RESEARCH The aim of Lakeland’s Relevant Programming and Research goal is to ensure students have access to training that strongly aligns with the labour market needs. Research efforts support economic innovation. This goal includes four priority initiatives that align with the Government of Alberta’s (GOA) key principles of Quality and Coordination.

Type

Description

Expected Completion Status Date (from CIP)

Ensure programs are the highest possible quality

June 2018, 2019, 2020

Ongoing

Throughout all Lakeland programs, learning environments are competency-based and students are developing work-ready skills.

Evaluation of program learning outcomes and curriculum for quality and clarity

June 2018

Achieved

Deans completed Program Level Learning Outcomes and a five-year capital equipment plan.

Culture of instructional development and excellence with fully engaged academic staff utilizing modern equipment and facilities

June 2018

Achieved

A new draft of Appendix A on Faculty Evaluation was presented to the Professional Standards Committee..

At least 92 per cent of graduates are satisfied with the quality of education received (About to Graduate Survey)

June 2018, 2019, 2020

Ongoing

Result: 97 per cent

Exceed CCSSE benchmark and be within the top 10 per cent of performing colleges in providing programming that has an academic challenge

June 2019

Ongoing

Progress Made in Last 12 Months

Priority Initiative P1 GOA Alignment: Quality

Expected Outcomes EO1

Performance Measures PM1

At least 77 per cent of graduates June 2018, are satisfied that facilities, 2019, 2020 equipment, and materials are up to date (About to Graduate Survey)

Ongoing

Result: 92 per cent

A long-range funding plan was completed by the Financial Services department. It includes campus revitalization, upgraded classrooms and modern labs. A process to keep the plan updated will be implemented.

The Athletics department developed a three- to five-year strategic plan. Parts of the plan are in action, while others will be built into future plans. The creation of a marketing plan will be carried over into 2018-19.

The School of Environmental Sciences’ program committees met regularly to discuss program content and course outlines.

Curriculum changes were discussed in detail. New courses will be introduced by amalgamating or phasing out existing courses.

All programs offered at Lakeland College Emergency Training Centre meet and exceed recognized professional qualifications standards. Updating program material to the latest professional qualification standards is an ongoing operation.

Annual Report 2017-18 | 17

Type

Description

Expected Completion Status Date (from CIP)

Progress Made in Last 12 Months

Priority Initiative P2 GOA Alignment: Quality

Align programs with labour market

June 2018, 2019, 2020

Ongoing

Several program advisory committees added new members including environmental sciences, wellness and health so they can increase connections with industry and further align programs with the labour market.

The new animal assisted wellness program was approved. It will meet a unique market need by training professionals to safely incorporate animals into their line of work for a variety of purposes.

Accounting technician was offered in Wainwright to meet regional needs.

Expected Outcomes EO2

Lakeland as an employer of choice for graduate hires and corporate training

June 2019

Ongoing

Established and active advisory committees

June 2018

In progress

New and emerging programs fill regional and provincial gaps

June 2018, 2019, 2020

Ongoing

At least 85 per cent of graduates have the opportunity to apply knowledge to industry (About to Graduate Survey)

June 2018, 2019, 2020

Ongoing

Result: 88 per cent

Graduate employment rate exceeds 85 per cent

June 2018, 2019, 2020

Ongoing

Result: 89* per cent

Over 85 per cent of graduates feel the benefits of their program outweigh the financial cost

June 2018, 2019, 2020

Ongoing

Result: 86* per cent (*2014 Graduate Follow-up Survey completed in 2016)

100 per cent of programs hold advisory committee meetings annually

June 2018, 2019, 2020

Not achieved

Departments will continue to work towards holding advisory committee meetings annually.

Performance Measures PM2

Financial Services developed a new budget framework to contribute to Lakeland’s ability to be cost competitive and to contribute to the goal that "over 85 per cent of graduates feel the benefits of their program outweigh the financial cost."

The School of Agricultural Sciences developed an online delivery option for its animal health technology program to meet industry’s demand for more trained employees. The program will be offered in the next academic year. New Continuing Education training opportunities expanded with agricultural sciences programming.

Lakeland signed a memorandum of understanding with Northern Lakes College (NLC) that will have NLC deliver its academic upgrading program at the Lloydminster campus to adults whose education is within the Grade 4 to 9 level.

18 | Annual Report 2017-18

The School of Environmental Sciences re-engineered and re-energized its program advisory committees with new appointments.

They launched several Continuing Education programs, and applied for water and wastewater operator licensing through Alberta Environment and Parks.

Hairstyling, 2nd Class power engineering and administrative professional programs were offered for the first time.

Type

Description

Expected Completion Status Date (from CIP)

Progress Made in Last 12 Months

Priority Initiative P3 GOA Alignment: Coordination

Build learner pathways

June 2018, 2019, 2020

Ongoing

A transfer inventory was developed and will continue to be revised as needed, and new agreements are being established throughout the schools as this remains a priority.

Academic prep and adult 12 ran successfully.

An agreement was signed with Northern Lakes College to offer Grade 4-9 courses at Lakeland in 2018-19.

An agreement with the University of Alberta will see its Aboriginal teacher education program offered at Lakeland.

More Continuing Education programming was developed college-wide, with a concentration in agricultural and environmental sciences.

Expected Outcomes EO3

Availability of transfer framework June 2018, and degree-completion options (in 2019, 2020 partnership with degree-granting institutions) for learners

Ongoing

Increase in learner retention and applicant conversion

June 2020

Ongoing

Improvement of learner access in transitional programming

June 2018

Achieved

Grow inventory of transfer agreements by five per cent per year

June 2018, 2019, 2020

Ongoing

Performance Measures PM3

An inventory of transfer agreements was created and will be used to assess percentage growth in the future.

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The School of Agricultural Sciences began work on a proposal for a degree program in ag technologies. The application will be submitted to the Ministry in 2018-19.

The School of Energy improved its programs’ learner pathways by offering all first-year heavy oil courses online thanks to a Husky Energy development grant. An evening delivery option for 2nd Class power engineering was offered in January 2018.

The university transfer department signed an agreement with the University of Alberta to offer a cohort of its Aboriginal teacher education program (ATEP) at Lakeland. Students will complete the first two academic years in Lakeland’s university transfer program, and then apply to transfer into the ATEP for their third and fourth year. Students will be able to complete all four years at Lakeland.

Graduates will earn a bachelor of education (elementary).

Type

Description

Expected Completion Status Date (from CIP)

Progress Made in Last 12 Months

Priority Initiative P4 GOA Alignment: Quality

Expand research capacity

June 2018, 2019, 2020

Ongoing

Increased research capacity in crop research, livestock research, and energy and environmental research

June 2018

Achieved

Growth fostered in regional economic development

June 2018, 2019, 2020

Ongoing

Increase dollars to support research

June 2018, 2019, 2020

Ongoing

Applied Research expanded research capacity by growing crop and livestock research opportunities, partnerships, infrastructure and resources. Dr. Obioha Durunna joined Lakeland in January 2018, as the college’s new livestock research scientist.

Year three of the residual feed intake trial with Alberta Agriculture and Forestry was completed, upgrades were made to the G.N. Sweet Livestock Research Facility and a preliminary plan was developed for operationalizing research at the facility.

Expected Outcomes EO4

Performance Measures PM4

Applied Research worked on identifying strategies to engage areas of the college, including the School of Energy and School of Environmental Sciences. While progress was delayed due to resource allocation to the Smart Agri-Food Supercluster activities, all of Lakeland’s Research Centre buildings are tracking 100 per cent of data points.

20 | Annual Report 2017-18

GOAL 3: CONNECTIVITY The aim of Lakeland’s Connectivity goal is to ensure that all resources are in place to engage community partners in educational pursuits and to provide information to prospective, current and past students. This goal includes two priority initiatives that align with the Government of Alberta’s (GOA) key goals of Accessibility and Accountability.

Type

Description

Expected Completion Status Date (from CIP)

Progress Made in Last 12 Months

Priority Initiative P1 GOA Alignment: Accessibility Accountability

Increase sustainable resources and support student success through fundraising and external partnerships

June 2018, 2019, 2020

Ongoing

Three major fundraising events were held in 2017-18: President’s Gala, Feast on the Farm and the Rustlers Golf Tournament. Revenue from these profile events increased 17 per cent from the previous year to $132,250. The gala raised a record $72,000-plus for Lakeland’s Support Our Students Bursary program.

Ongoing work at the executive level continues with making connections with potential partners and donors.

Expected Outcomes EO1

Increase in annual fundraising efforts to provide additional support to awards, scholarships, bursaries, student success and operational needs

June 2018

Achieved

Successful achievement of fundraising targets through the Leading. Learning. The Lakeland Campaign. to complete educational facilities and provide supports for student leadership and success

June 2020

Ongoing

Increase in alumni engagement to support student mentorship, student outreach and school outreach with alumni partners in industry

June 2019, 2020

Ongoing

Successful municipal partnerships to ensure appropriate land and supports to maximize potential growth opportunities for student learning

June 2020

Ongoing

Annual Report 2017-18 | 21

Type

Description

Expected Completion Status Date (from CIP)

Progress Made in Last 12 Months

Performance Measures PM1

$1.3 million in student awards

June 2018, 2019, 2020

Ongoing

In the 2017-18 academic year, approximately $1.5 million in awards, scholarships and bursaries was distributed to Lakeland students. Lakeland provided $886,000 in scholarships and bursaries. Students also received $667,000 in scholarships and bursaries from other sources.

$5 million of the $10 million

June 2018

Achieved

To date, $5.3 million has

fundraising goal has been raised

been raised.

The Advancement department implemented its 2017-18 comprehensive fundraising plan, which included recruiting campaign cabinet members and revising the Campaign Case for Support document. Lakeland received contributions from 452 donors, including 173 new donors. Work will continue in 2018-19 on achieving a viable annual direct mail program.

The Advancement department created a number of information pieces to help cultivate and solicit gifts. During the 2017-18 year, a total of $2,026,274 was received as immediate or future pledged gifts. The Leading. Learning. The Lakeland Campaign. has raised more than $5.3 million towards the $10 million goal to date. Campaign priorities are: • Expand student success and student leadership initiatives, including student-managed enterprises, Indigenous programming, student mental health initiatives, student commons revitalization, assistive lab technology labs and more.

• Grow applied research, including crop and livestock research initiatives.

• Modernize the Student-Managed Farm – Powered by New Holland, including the Animal Health Clinic, the Equine Centre and four science labs used by agricultural sciences and environmental sciences students.

• •

These three priorities require a $29 million investment. In addition to fundraising, Lakeland is providing $10.5 million and government has contributed $8.5 million.

The School of Agricultural Sciences assisted with the campaign by meeting with five potential donors and attending seven key industry events to advance relationships.

Total attendance at nine Lakeland alumni events was 546 – a marginal decline from the previous year (581).

22 | Annual Report 2017-18

Type

Description

Expected Completion Status Date (from CIP)

Progress Made in Last 12 Months

Priority Initiative P2 GOA Alignment: Quality Accessibility Accountability

Raise Lakeland’s profile as an institution of excellence that provides program pathways for all learners

June 2018, 2019, 2020

Ongoing

Lakeland’s senior leadership team met with various government officials and external personnel to raise awareness of Lakeland and cultivate stronger relationships.

A framework was developed for how “raise the profile” can be delivered college-wide. Numerous awards were won, which helped bolster Lakeland’s reputation for academic excellence.

Clear information, in all modalities, provided to students and parents about programs, program pathways, skill development, and job placement

June 2018

Achieved

The Marketing and Communications department developed a three-year strategic marketing plan. An annual calendar of projects and events was completed, as well as a social media policy. A customer relationship management system was not implemented because the cost was higher than anticipated.

Marketing completed phase one of its responsive website. Learner pathways are featured on the home page. Phase two began and will be completed in 2018-19.

Brand recognition survey completed

June 2018

In progress

Insightrix Research was hired to complete the brand recognition survey. Results will be available in 2018-19.

Economic impact survey completed

September 2017

Achieved

An economic impact survey was completed in July 2017.

Expected Outcomes EO2

Performance Measures PM2

Annual Report 2017-18 | 23

Results from the economic impact survey include: • Lakeland's students and alumni added $120 million to the local economy, which is equivalent to supporting 2,524 jobs in the Lakeland service area.

• For every dollar they invested at the college, Lakeland students will receive a cumulative return of $4.70 in higher future earnings over the course of their working careers.

• As long as those students remain active in the provincial workforce, society will receive a cumulative value of $6.10 in benefits for every dollar they spend on education from Lakeland.

• Over the students’ working lives, provincial society will receive a present value of $555.5 million added income.

Diane Harms, director of Applied Research, was appointed chair of the Natural Sciences and Engineering Research Council of Canada selection committee for Synergy Innovation Awards and was nominated as the Alberta representative to the Colleges and Institutes Canada National Research Advisory Committee.

The official openings of the Dairy Learning Centre in August 2017 and the Energy Park Site in April 2018 attracted large crowds and generated positive media coverage. There were many award-winning accomplishments at the student, employee and college level that helped raise Lakeland’s profile. For example, Lakeland was named one of Alberta’s Top 70 Employers; Josie Van Lent, dean of the School of Agricultural Sciences, won the Colleges and Institutes Canada’s Leadership Excellence Award for managerial staff; and on the strength of its interior design technology program, Lakeland was named the National Kitchen and Bath Association’s 2017 College of the Year.

24 | Annual Report 2017-18

GOAL 4: SUSTAINABILITY The aim of Lakeland’s Sustainability goal is to ensure that all resources (staff, budget and infrastructure) are focused on providing a stable and meaningful learning experience for students. This goal includes three priority initiatives that align with the Government of Alberta’s (GOA) key principles of Quality and Accountability.

Type

Description

Expected Completion Status Date (from CIP)

Progress Made in Last 12 Months

Priority Initiative P1 GOA Alignment: Quality

Modernize the learning environment to better meet student learning needs

June 2018, 2019, 2020

Ongoing

In 2017-18, Lakeland opened the new Dairy Learning Centre, prepared to open the new Animal Health Clinic and initiated the Trades Centre roof repair project.

The Vermilion Campus Revitalization plan and residence assessment and draft business plan were completed. Farm revitalization, gas and water line assessments were initiated.

Expected Outcomes EO1

Creation of a new Dairy Learning Centre that meets the needs of learners and the dairy industry in Western Canada

September 2017

Achieved

Lakeland’s new Dairy Learning Centre officially opened on Aug. 22, 2017.

Creation of a new Animal Health Clinic through renovation and expansion of an underutilized building

April 2018

Achieved

Animal Health Clinic construction was completed in the spring. It will be ready for student-use in September.

Repair of the Trades Centre roof to ensure the continued delivery of apprenticeship programming within a safe environment

June 2018, 2020

In progress

In April 2018, the Government of Alberta announced that Lakeland will receive $6 million to complete Trades Centre repairs.

Initiation of plans for renovation and expansion of the Equine Centre

June 2018

Achieved

100 per cent of projects completed on time and on budget

June 2018, 2019, 2020

Ongoing

Initial plans for the renovation and expansion of the Equine Centre were completed; however, until funding is in place, this project won’t proceed.

Performance Measures PM1

A project tracker is being used as a reporting mechanism for the Facilities department.

The Dairy Learning Centre opened in August 2017. It features state-of-the-art technology in robotic and conventional milking and feeding systems. Alberta Milk provided the use of additional milk quota, and funds from the Government of Alberta Growing Forward 2 grant to incorporate energy efficient systems and design in the facility.

The new Animal Health Clinic reached substantial construction completion in the spring and will be ready for student-use in September 2018. The clinic has separate animal wards, a modern surgical suite and dental lab, a separate pharmacy, front desk and reception area, and more. Lakeland received funding from the Government of Canada’s Post-Secondary Institutions Strategic Investment Fund for both projects.

Annual Report 2017-18 | 25

Government of Alberta funding for the Trades Centre roof repair project was announced in April. Repair work will begin in summer 2018 and is expected to take up to two years to complete.

Financial Services developed a long-range plan that prioritizes campus revitalization projects that will help the college to modernize learning environments. The department also developed a project management and controls approach. Contract policies and contract administration will be implemented in 2019.

The Athletics department developed renovation plans for the Aquatic Centre at the Vermilion campus and the athletic facilities at the Lloydminster campus. Thanks to a $122,000 grant from the Community Facility Enhancement Program (CFEP) and matching funds from the Town of Vermilion, almost $245,000 will be spent on renovations to the Aquatic Centre. The Vermilion Fitness and Aquatic Society applied for the CFEP funding. Built in 1988, the pool at Lakeland’s Colonel Cormack Recreation Centre is jointly owned by the Town of Vermilion and Lakeland College and serves approximately 25,000 users every year.

Type

Description

Expected Completion Status Date (from CIP)

Progress Made in Last 12 Months

Priority Initiative P2 GOA Alignment: Quality Accountability

Optimize the use of resources to support a stable learning environment

June 2018, 2019, 2020

Ongoing

Refresh of college IT infrastructure to address end-of-life system issues, cyber security and changing learner needs

June 2019, 2020

Ongoing

Business continuity and risk frameworks are implemented to ensure the stability and safety of services for staff and students

June 2019, 2020

Ongoing

The statement of operations are balanced at fiscal year-end

June 2018, 2019, 2020

Ongoing

Financial Services developed a budget framework that reflects a financially sustainable plan and creates possible scenarios for grant decreases. The department completed organizational restructuring, which included hiring a director of finance and risk management.

Expected Outcomes EO2

Performance Measures PM2

Financial Services reviewed and developed internal policies and procedures to increase efficiency and manage risk.

The Financial Services department facilitated and supported the development of college-wide initiatives, including streamlining the processing of credit card transactions, developing a preferred vendors list and drafting student-managed enterprise guidelines.

The Information Technology department completed the implementation of network infrastructure for the main buildings at the Lloydminster and Vermilion campuses. New external and internal firewall deployments were completed providing better visibility into network monitoring and reporting.

26 | Annual Report 2017-18

Type

Description

Expected Completion Status Date (from CIP)

Progress Made in Last 12 Months

Priority Initiative P3 GOA Alignment: Quality

Empower staff to excel to enable excellence in teaching and learning for Lakeland learners

June 2018, 2019, 2020

Ongoing

Lakeland’s senior leadership team increased people engagement strategies with StrengthFinder sessions, peer mentoring and leadership training. Throughout Lakeland, departments continued with StrengthFinder sessions.

Human Resources completed and rolled out the results of the 2018 Gallup Engagement Survey.

Expected Outcomes EO3

Support and recognition of staff March 2018, for provision of services to learners 2019, 2020 and quality work

Ongoing

Increase 25 base points on engagement survey by end of three years

Ongoing

Performance Measures PM3

June 2020

The Engagement Survey was completed. The results showed that engagement remained status quo and the gains made between 2015 and 2017 were maintained.

An Engagement Survey will be completed in 2019.

The Human Resources department worked on a 10 per cent improvement of employee mental health and wellbeing by implementing the National Standard of Canada for Psychological Health and Safety in the Workplace. A psychological healthy and safety survey was completed and a cross-functional team was established. A new employee and family assistance program was implemented, and inclusion and respect in the workplace policies completed.

A cross-functional team of employees is creating definitions and guiding behaviours for Lakeland’s six values. These will be finalized in 2018-19.

Annual Report 2017-18 | 27

ACCESS AND QUALITY Lakeland designs new academic programs to meet the needs of students and the labour market, and to provide diversity to Campus Alberta programming options. All new programs are supported by significant, documented evidence of student and industry demand, alignment with government priorities and long-term financial sustainability.

In the 2017-20 Comprehensive Institutional Plan (CIP), Lakeland identified potential new programs. The following is an update on the programs included in the CIP.

28 | Annual Report 2017-18

Program Proposal

CIP Overview

Outcome

Hairstyling

• One-year certificate • Full-time, face-to-face, on-campus • 2017-18 academic year

Delivery of this program began in the 2017-18 academic year.

Administrative professional

• One-year certificate (formerly called office administration) • Blended delivery with full- and part-time options • 2017-18 academic year delivery

Delivery of this program began in the 2017-18 academic year.

2nd Class power engineering

• One-year certificate • Full-time, face-to-face, on-campus • 2017-18 academic year delivery

Delivery of this program began in the 2017-18 academic year.

Academic upgrading

• Target courses that students need to meet entrance requirements • Blended delivery, part-time • 2017-18 academic year delivery

Two adult 12 courses per semester were offered in the 2017-18 academic year.

University transfer courses

• Individual courses to expand transfer options for students wanting two years of study at Lakeland (science/nursing) • On-campus, mostly full-time students • 2017-18 academic year delivery

New individual courses were not offered as the Academic Council process took longer than anticipated, however, they are on track for a fall 2018 delivery.

Animal assisted interventions

• One-year certificate for people working with animals in mental health and wellness settings • Blended (online theory with on-campus practical) • 2018-19 academic year delivery

The animal assisted wellness program was approved and will be offered in the 2018-19 academic year.

Smart agriculture

• Two-year diploma ag technology and precision agriculture • Full-time, on-campus • 2018-19 academic year delivery

The School of Agricultural Sciences is pursuing an applied degree in agriculture technology rather than a diploma in smart agriculture (see information below).

Range and forage management

• Two-year diploma in range management • Full-time, on-campus • 2018-19 academic year delivery

After consultations with students and faculty, the development of a range and forage management diploma is on hold until the changes around specializations within the animal science technology program are completed.

Bachelor of business administration

• Degree completion option in partnership with a degree granting institution • Full-time, on-campus • 2018-19 academic year delivery

The bachelor of business administration was to be offered in partnership with NAIT, however this program has been postponed indefinitely.

Bachelor of arts: psychology

• Degree completion option in partnership with a degree granting institution • Full-time, on-campus • 2018-19 academic year delivery

Lakeland is continuing to work with Athabasca University on this degree completion option.

Aircraft rescue and firefighting

• NFPA 403 Compliant certificate • Full-time, on-campus, short-course • 2018-19 academic year delivery

Postponed until 2019-20 due to the NFPA releasing a new 2018 edition of the 403 standard.

Fire officer level III

• NFPA certificate • Full-time, on-campus, short-course • 2019-20 academic year delivery

On track but there may be issues relating to accreditation/certification from the accredited entity (Alberta Municipal Affairs – Public Safety Division). The accredited entity is currently not interested in pursuing certification to these higher levels.

Bachelor of applied science: agriculture

• Applied degree • Full-time, on-campus, blended options • 2019-20 academic year delivery

The development of an applied degree in agriculture technology is well underway. Robust industry, student and academic consultations and the PAPRS submission to Advanced Education are 80 per cent complete. The application will be submitted in the fall of 2018.

Annual Report 2017-18 | 29

ENROLMENT PLAN In the 2017-20 CIP, Lakeland projected 2,008 full-load equivalents (FLEs). The actual number of FLEs for the 2017-18 year is 2,140.867.

Lakeland inaccurately projected 60 per cent of total enrolments in business administration as international students; the accurate projection is 60 FLEs, which is 32 per cent of the total projected business administration FLEs. The actual percentage of international enrolment in business for 2017-18 is 36.5 per cent.

Programming areas that exceeded projections include business, agricultural sciences, university transfer and human services. Three new programs – 2nd Class power engineering, administrative professional and hairstyling – also contributed to the growth.

The number of apprenticeship technical training seats allotted to Lakeland dropped by 270 from the previous year. There are fewer apprentices in the province, thus a reduced demand for technical training, and there was an effort in previous years to allow apprentices to complete more technical training during the economic slowdown.

According to Alberta Economic Development and Trade’s Highlights of the Alberta Economy 2018, Alberta’s farm cash receipts totaled $13.5 billion in 2016 and the province posted the highest cattle receipts as well as the second highest total crop receipts in the country. Exports of crops and livestock rose 57 per cent between 2007 and 2017. The combination of Alberta’s agricultural sector’s industry growth and the increased profile of Lakeland’s award-winning Student-Managed Farm – Powered by New Holland is likely a contributing factor to the School of Agricultural Sciences increasing enrolment.

Online learners fueled growth in human services programs.

30 | Annual Report 2017-18

2017-18 Full-load Equivalent (FLE) Enrolment by Program Lakeland FLEs totaled 2,140.867, exceeding projections for the 2017-18 academic year.

Program

FLE Projection in CIP

Actual

Apprenticeship

330

242.59

2nd Class power engineering (new)

N/A

23.428

Accounting technician

12

19.5

Administrative professional (new)

N/A

9.099

American Sign Language and Deaf Culture studies

9

12.1

Business administration

9

8.5

Community mental health

2

7.967

Early learning and child care

75

99.25

Educational assistant

40

65.506

Emergency medical responder

1

0

Esthetician

15

9.966

Firefighter certificate of achievement

35

40.766

General agriculture

25

20.098

Hairstyling (new)

N/A

30

Health care aide

25

19.742

Heavy oil operations technician

9

5

Power engineering ( 3rd and 4th Class, gas processer operator)

42

9.177

Pre-employment

35

19.698

Renewable energy and conservation

36

18.5

Street rod technologies

18

11

Veterinary medical assistant

24

26.455

Western ranch and cow horse

21

13.5

Agribusiness

80

91.233

Animal health technology

80

75

Animal science technology

120

133.28

Business administration

187

230.869

Child and youth care

55

62.65

Crop technology

71

94.1

Early learning and child care

40

43

Emergency services technology

60

57.67

Environmental sciences

115

122.332

Heavy oil power engineering

125

154.205

Interior design technology

34

23.341

Renewable energy and conservation

5

5.73

Sign language interpretation

7

6.133

Bachelor of applied business: emergency services

10

18.393

Bachelor of applied science: environmental management

35

41.429

University Studies

175

220.1

Employment skills enhancement

10

18.1

Open studies

30

31.46

Tourism: ready to work

5

N/A

Total

2,008

2,140.867

Certificate

Diploma

Applied Degree

Other Non-Credential

Annual Report 2017-18 | 31

Total FLEs 1,957.11 2,073.25 2,140.867

2015-16 2016-17 2017-18

Credit unique students Full-time

Part-time

Total 1,341 2,378

2015-16 1,550 2016-17 1,604

2017-18

3,719

2,109

3,659

2,086

3,690

Program completions 2015-16 2016-17 2017-18

1,127 1,186 1,220

Indigenous student enrolment (self-identified) FLEs

Unique students 68.952

2015-16

133 132.67

2016-17

216 161.133

2017-18

233

International student enrolment FLEs

Unique students

2015-16 2016-17 2017-18

32 | Annual Report 2017-18

36.357

57 82.463

112 135.224

179

COMMUNITY OUTREACH & UNDERREPRESENTED LEARNERS Lakeland’s institutional priorities focus on maximizing student engagement, establishing Indigenization efforts, enhancing learner supports and services, and providing opportunities for students to further enhance their learning. The priorities reinforce Lakeland’s commitment to creating personalized learning pathways for students to help them realize their full potential. In the 2017-18, Lakeland worked towards achieving the following:

Annual Report 2017-18 | 33

Student Engagement Lakeland students had access to many enriching and meaningful experiences outside of the classroom, opportunities to pursue non-academic interests and develop leadership skills through extracurricular engagement, and a safe, inclusive environment in residence. While the Student Life Advisory Council disbanded in 2017-18, these experiences and opportunities were made available within existing support structures: • Student life activities – including clubs and on-campus recreational activities – were shared and promoted on Lakeland’s app. It is widely used and very effective. Lakeland’s SAFE app is also available for students and staff to connect with emergency contacts, a safe walk program and other resources.

• Email blasts, poster campaigns and social media were used to share student leadership opportunities and other extracurricular opportunities on campus.

• The Community College Survey of Student Engagement was conducted across both campuses in 2017-18.

Community College Survey of Student Engagement - Lakeland College (2018 Administration) 2018 Benchmark Scores Report - Main Survey Comparison Group: Small Colleges in the 2018 Cohort* [Weighted]

Benchmark

Your College Score

Small Colleges Score Difference

Active and Collaborative Learning

60.0

51.1

Student Effort

53.9

Academic Challenge

49.1

Student-Faculty Interaction Support for Learners

2018 Cohort Score Difference

8.8

50.0

10.0

50.8

3.1

50.0

3.9

50.1

-1.0

50.0

-0.9

51.0

52.7

-1.7

50.0

1.0

43.8

52.1

-8.3

50.0

-6.2

Communications to Prospective Students Effective and strategic communication with prospective students and their parents is an ongoing priority for Lakeland. Student success stories, information on student-managed and student-led learning opportunities, and details about education pathways are key messages Lakeland continued to share in 2017-18.

• Targeted marketing campaigns that included a mix of digital, traditional, and social media were completed.

• Faculty, staff and students spoke at relevant industry events, conferences and service organizations.

• Marketing used Meltwater to assist in sharing Lakelands’s story with traditional and online media.

• A customer relationship management system was to be implemented, however, the cost of services researched was higher than anticipated. Phase one of Lakeland’s new responsive website was launched late in 2017. Phase two of the new website was delayed and will be completed in 201819. While this delay prevented the delivery of e-newsletters for alumni and industry representatives, email campaigns were completed instead.

•

34 | Annual Report 2017-18

Indigenization Indigenization efforts are an ongoing priority for Lakeland. Located in the heart of Treaty 6 Territory, Lakeland is dedicated to guiding Indigenous students to be proud of their identity, language and culture, and to increasing appreciation and awareness of Indigenous culture throughout the college. In 2017-18: • Lakeland continued to be a partner in the Indigenous Economic Partnership Summit with the objective of making connections and exploring opportunities to develop business and industry partnerships.

• Lakeland continued to coordinate social and cultural events, such as the annual teepee raising, Indigenous Awareness Week and Truth and Reconciliation speaker series, which celebrate and promote the Indigenous way of life and honour the rich history and lived experience of Indigenous peoples.

• Clint Chocan, Lakeland’s manager of Indigenous student support, promoted cultural support services at Lakeland and in the community, and assisted with making those connections for students as well as worked with faculty to increase awareness.

• Lakeland worked with First Nations communities to develop a preparatory course in a blended format with instruction occurring on reserve and on campus.

Learner Supports Lakeland provides a range of support services to students that are timely, accessible and related to specific needs. In 2017-18, the following activities were offered to support students, among others: • Preparatory courses outlining important areas vital to college success: avoiding procrastination, developing higher thinking skills and effective organizational habits for the best college experience.

• A curriculum review was completed and enhancements were made to the College Prep course. It is available as a massive open online course. Specific chapters were added regarding local, international and online distance learners. Lakeland is in the developmental stages of preparing a face-to-face version of this course.

• Accessibility Services continued to provide support services

to students with disabilities. In 2017-18, 230 students were registered with Accessibility Services.

• The School of Agricultural Sciences and the School of Business offered Focus on Success workshops in each semester to students whose GPA was less than 2.0. In probation letters, students are given contact information for the Learner Success Strategist.

• Lakeland’s Early Alert System is in place for staff and faculty to refer students for services such as counselling, accessibility, wellness, learning strategist, health services and Indigenous support services.

Consistent student access to physical and mental health supports is a priority for Lakeland. In 2017-18, several initiatives were undertaken, including: • A mindfulness-based cognitive therapy group

• Wellness fairs (at both campuses)

• Suicide awareness

• Self-care for stress and anxiety

• I Believe You campaign

• Anti-bullying and healthy relationships campaign

• International student orientation (culture shock, homesickness, winter living)

• Domestic violence awareness • Exam stress (puppy rooms)

• Peer-assisted wellness program

• Pride awareness week campaign

• Mental health first aid (offered to staff, faculty and students) A sexual violence policy was approved in 2016 and a sexual violence procedure was drafted in 2017.

Regional Stewardship, Foundational Learning and Further Learning Lakeland continued its work to offer foundational training for adult learners with Community Adult Learning Programs (CALP) in 2017-18. Lakeland worked with the Town of Wainwright Economic Development and Wainwright Adult Learning to offer the accounting technician program. Plans are in effect to offer health care aide again in fall 2018 and the administrative professional program in 2019.

In 2017-18 Lakeland’s Continuing Education department focused on transitional programming for adult learners by preparing to offer a full-time Foundational Learning program for Grades 4-9 and academic upgrading for Grades 10-11 in collaboration with Annual Report 2017-18 | 35

Northern Lakes College in fall 2018. Another option available for adult learners through Adult Basic Education was Grade 12 courses, delivered part-time in the evenings, which led to a Grade 12 credential. An instructor-led GED preparatory course was also re-established for both Alberta and Saskatchewan students.

Lakeland’s annual regional summit identified the need to make available the Academic Prep online modules of math, English, biology, chemistry, science and physics to our Community Adult Learning Centres. Lakeland doesn’t track whether any of the people who completed modules were CALP-supported learners.

Academic Prep online modules were also available to Lakeland applicants.

A range of dual credit initiatives continued in 2017-18 with 22 different school divisions. Courses offered include: Soil Science, Environmental Sustainability, Introduction to Esthetics, Health Care Aide Sections 1 – 5, Health, Nutrition, and Safety, Play and Intro to Heavy Oil and Gas.

Enhancing Community Investment Lakeland worked hard to establish mutually-beneficial, strategic partnerships to enhance access and affordability for students. In 2017-18, Lakeland continued to cultivate relationships with a number of industry partners, including Alberta Milk and Eagle Builders.

Both organizations were integral to the success of the Dairy Learning Centre.

Three profile events – Feast on the Farm, President’s Gala and the Rustlers Golf Tournament – allowed Lakeland to connect with municipal leaders and community members. These events raised funds to support leadership opportunities, student awards and student-athletes.

Lakeland was a partner in the Smart Agri-Food Supercluster (SASC), which was one of nine shortlisted applicants for the Innovation Superclusters Initiative.

Lakeland worked with several other post-secondary institutions in 2017-18, including the University of Alberta (U of A). Lakeland and the U of A will offer the university’s Aboriginal teacher education program at the Lloydminster campus starting fall 2018. Lakeland and the University of Calgary Faculty of Veterinary Medicine signed a coordination agreement with the aim of developing more learning and research opportunities for students and faculty at both post-secondary institutions. The Lloydminster campus was the site of Northern Lakes College practical nurse program. The institutions also signed an agreement to offer academic upgrading programming at the Lloydminster campus starting fall 2018.

The Advancement department implemented its 2017-18 comprehensive fundraising plan. The total number of donors attained is 458, of which 175 are new. To date, the Leading. Learning. The Lakeland Campaign. has raised more than $5.3 million in immediate or pledged gifts thanks to generous donors and industry partners.

36 | Annual Report 2017-18

APPLIED RESEARCH Achieving excellent student outcomes and supporting the social, environmental and economic life of communities throughout Alberta and beyond are why Lakeland supports applied research. Students take the lead in learning and build important skills that contribute to industrial innovation with Lakeland’s applied research efforts.

Four priority areas for research were identified in the 2017-20 Comprehensive Institutional Plan for their relevance to the Lakeland economic region and to complement institutional strengths: • Agriculture

• Energy

• Environment

• Emergency Services

Lakeland focused on these priorities while also supporting innovation that aligns with the college’s institutional goals, the Alberta Research and Innovation Plan, and provincial target outcomes: a strong economy, effective resource management, environmental stewardship and supporting Albertans in all of our communities.

Lakeland reports on sponsored research revenues received in an annual report to the Government of Alberta. In fiscal year 201718, Lakeland-sponsored revenues for applied research declined significantly over 2016-17 reported data. This is partly due to the inclusion of a donation and additional installments of the Natural Sciences and Engineering Research Council of Canada (NSERC) grant received in 2016-17.

Annual Report 2017-18 | 37

Agriculture Lakeland focused on expanding research capacity by growing both crop and livestock research opportunities, partnerships, infrastructure and resources. This was completed in a number of ways on the crop side including the successful completion of the 2017 crop trial season. In 2017, 1,000 plots were grown, compared to 300 in 2016.

Lakeland’s applied research team presented at the American Society of Agronomy and the Canadian Weed Science Society meetings, and had seven confirmed funded projects (four new partners) for the 2018 season. A new tractor with GPS-RTK (global positioning system with real time kinematics) was purchased and significant investment in staff training and development was made.

As of June 2018, Lakeland was on target for funding requests for external resources.

On the livestock side of research, Dr. Obioha Durunna joined Lakeland in January 2018, as a livestock research scientist. Durunna will enable the growth and expansion of applied livestock research, specifically focused on supporting commercial livestock production relevant to the region. He was awarded an adjunct faculty position at the University of Saskatchewan, which will increase collaboration opportunities and holds the potential for graduate students to complete projects at Lakeland.

Year three of the residual feed intake trial with Alberta Agriculture and Forestry was completed, upgrades were made to the G.N. Sweet Livestock Research Facility and a preliminary plan was developed for operationalizing research at the facility.

The Applied Research team applied for and was awarded a Special Flight Operations Certificate for the Unmanned Aerial Vehicle, with permission to fly in all of Alberta. Several missions capturing images of the crop research plots were flown.

Energy and Environment Lakeland worked on identifying strategies to engage areas of the college, including the School of Energy and School of Environmental Sciences. While progress was delayed due to resource allocation to the Smart Agri-Food Supercluster activities, all of Lakeland’s Research Centre buildings are tracking 100 per cent of data points.

Lakeland was a part of the Natural Resources Canada-facilitated “Bioenergy Support Network for Sustainable Communities (BIOCOMM)” proposal, which submitted a Letter of Intent to the Clean Energy for Rural and Remote Communities (CERRC) Capacity Building Stream program.

Innovation and Rural Economic Development Lakeland fostered economic growth in partnership with the Regional Business Accelerator, which rebranded to Startup Lloydminster in March 2018. Since the rebrand, Startup Lloydminster has seen a 47 per cent increase in walk-in traffic.

Plans to grow regional innovation capacity to advance community economic development were delayed because of resource allocation to the Smart Agri-Food Supercluster activities. A report was submitted to Alberta Innovates on the East Central Alberta Regional Innovation Network (ECARIN) activities. All activities are on track with the ECARIN. Plans to host Maker Space and related youth outreach and continuing education opportunities will carry over in 2018-19.

Emergency Services Lakeland was approached by companies interested in testing novel fire suppression technologies using Lakeland facilities. To date, these projects have not moved forward due to the potential risk of damaging Lakeland assets. Lakeland will continue to explore research project possibilities.

38 | Annual Report 2017-18

INTERNATIONALIZATION Lakeland’s internationalization efforts are focused on student recruitment, international opportunities for domestic students and involvement in international development projects.

In 2017-18, Lakeland welcomed 179 international students from 17 different countries to its campuses. Approximately 70 per cent of these students were from India, which is the target region where Lakeland actively recruits. Many of these students enrolled in business programs at the Lloydminster campus, human services programs at the Vermilion campus, as well as numerous other programs at both campuses.

Three recruiting missions involving Lakeland staff and faculty took place in 2017-18. One staff member went on a mission to the Philippines in January; one staff and two faculty went to Ghana, Kenya and Mauritius in May; and one staff and three faculty went to Rwanda, Mauritius and Kenya in July.

Lakeland’s commitment to supporting its international students commences with recruitment and continues until convocation.

Student supports available to international students include learning strategists, advisors, immigration consultants, health services and more. Lakeland also has committed coordinators on each campus, in addition to a regulated international student immigration advisor.

Approximately 20 staff and faculty took part in Bow Valley College’s online Culturally and Linguistically Diverse Learners course, which offered classroom teaching skills to help ensure the academic success of international students.

Lakeland and NorQuest College continued a three-year remedial access training project in Tanzania with the Tanzania Vocational Education and Training Authority, which is part of Colleges and Institutes Canada’s Improving Skills Training for Employment Program. 2017-18 marks the second year of this project, which is scheduled to conclude in March 2019. The purpose of the project is to develop a remediation program for young adults struggling with academic readiness, who are entering the vocational education training system in Tanzania.

Three international domestic student trips were taken in 2017-18. Thirteen bachelor of applied science: environmental management students travelled to Sri Lanka. They strengthened Lakeland’s relationship with the University of Sri Jayewardenepura and shared presentations on topics related to Canada, such as water resources and reclamation. The trip also included visits at the Mahaweli River development project, tea plantations, rice farms and other destinations of environmental interest. This Sri Lanka trip received funding from the Campus Alberta Grant for overseas learning.

Human services students travelled to the island of Oahu in Hawaii for their international practicum. Students from the child and youth care, educational assistant and early learning and child care programs worked with a variety of agencies.

Students in the real estate appraisal and assessment business administration major travelled to Greece. This international learning opportunity also received funding from the Campus Alberta Grant for overseas learning. Lakeland students also travelled to Belize (Ag Tour Club) during the year for learning experiences.

No off-shore training was planned or conducted in 2017-18.

Annual Report 2017-18 | 39

INFORMATION TECHNOLOGY Lakeland’s Information Technology (IT) department continued to improve operational performance and end-user satisfaction with a focus on the following projects in 2017-18: • In June 2018, IT completed its three-year network infrastructure project for the Vermilion and Lloydminster campuses.

• IT started planning for transitioning to cloud based applications such as Microsoft Office 365 and Identity Management.

• Ongoing improvement continued on Lakeland’s cyber security governance, data protection and compliance centering on the development of security policies, standards and procedures with the assistance of the shared Chief Information Security Officer (CISO).

• In fall 2017, Lakeland completed a major upgrade to its ERP system. The Alberta Post-Secondary Application System was upgraded in spring 2018.

40 | Annual Report 2017-18

• IT played an important role with the development of the Animal Health Clinic.

CAPITAL PLAN Lakeland’s campuses continue to evolve as modern, technologically-advanced learning environments thanks to investments from the Government of Alberta and the Government of Canada, generous donors and industry partners, and the use of internal financial resources.

In 2017-18, Lakeland officially opened the new Dairy Learning Centre at the Vermilion campus and the Energy Park Site west of Lloydminster. Construction of the new Animal Health Clinic reached substantial completion before the end of the 2017-18 academic year.

The Vermilion Campus Revitalization plan was finalized and approved. The plan identifies the following priorities: • Conceptual design projects: The Learning Commons, Mead Building (including 150-seat classrooms) and the second floor of the Academic Link.

• Construction projects through to September 2019: Academic Link student lab areas, Alumni Hall Student Services and the Alumni Hall Learning Commons Information Technology area.

The plan is the culmination of effort to create a sustainable way to address student needs, modernize Lakeland’s environment and address deferred maintenance needs resulting in facilities that will last Lakeland another 30 years.

A residence condition assessment was completed as well as a business plan to fully renovate and expand the lifespan of residence facilities for an additional 30 years. As well, an addition of a small number of beds to the Vermilion campus.

Annual Report 2017-18 | 41

Type

Description

Funding Sources

Progress of Funding Collection

Expected Completion Date (from CIP)

April 2017June 2020

Status

Progress Made in Last 12 Months

Revised Expected Completion Date

Priority Projects Ongoing

February 2019 Utilizing results from a successful fix to a test area, a phased plan was developed to continue the repair project. This plan was submitted to the GOA and the basis for funding approval.

An RFP was issued for the work prior to fiscal year end, with the project awarded in July 2018.

Ongoing

The Vermilion Campus Revitalization Plan was approved in March 2018 based on the results of a feasibility study that forecast revitalization costs to be $50 million. $9.5 million was earmarked to begin the design and construction process for an identified first phase of the overall project.

April 2019-2021

Ongoing

Initial plans for the renovation and expansion of the Equine Centre were completed, however, until funding is in place, this project won’t proceed.

August 2022

April 2019-2022

Ongoing

The business case was approved in March 2018. Ongoing conversations continue to best support this case to achieve the desired loan.

September 2022

Preservation

Trades Centre Exterior and Roofing Repair Project (repairs to the metal cladding, glazing and roofing urgently needed)

Government of Alberta (GOA): $6 million (M)

$6M received from the GOA

Preservation and Renewal

Vermilion Campus Revitalization

GOA: $25M Fundraising: $8M Lakeland internal resources: $7M

Fundraising: April 2017Ongoing August 2027 Lakeland: $9.5M

Preservation and Renewal

Equine Centre

Fundraising: No measurable $1M progress Lakeland: $3.5M

Preservation and Expansion

Residence Renovation and Expansion

Lakeland will self-fund through the acquisition of a $16M loan.

42 | Annual Report 2017-18

In progress

Funding Sources

Progress of Funding Collection

Expected Completion Date (from CIP)

Revised Expected Completion Date

Type

Description

Preservation

Paving

Lakeland will self-fund the repair and replacement of paving as resources are available.

$135,000

June 2017June 2021

Ongoing

A small number of June 2022 repairs were completed on the Vermilion campus to test efficacy and to establish a baseline for future cost of additional paving projects.

Preservation

Co-generation, Utilities and Lighting Retrofit Project

IMP Grants will be used as resources are

$31,000

June 2017June 2021

Ongoing

Lighting upgrades continue as resources and priority permit.

available.

Status

Progress Made in Last 12 months

Co-generation strategy continues to be under consideration with no clear way forward at this time.

Annual Report 2017-18 | 43

FINANCIAL DISCUSSION AND ANALYSIS This Financial Statement Discussion and Analysis (FSD&A) provides supplemental information that should be read in conjunction with Lakeland College’s financial statements for the year ended June 30, 2018. The FSD&A and audited financial statements are reviewed and approved by Lakeland’s Board of Governors on the recommendation of the college’s Audit and Risk Committee.

Lakeland’s financial statements have been prepared in accordance with Canadian Public Sector Accounting Standards.

The FSD&A is an overview of Lakeland’s financial results for the year ending June 30, 2018 and offers analysis of the college’s: 1. Financial Results

3. Net Assets and Net Financial Assets

2. Capital Acquisitions

4. Areas of Significant Financial Risk

Financial Results Lakeland College ended the year with an annual surplus of $8.9 million; a significant increase over the $6.3 million surplus in 2017.

The $2.6 million increase (41 per cent) can be attributed to modest enrollment growth and most significantly to a $3.1 million, onetime realization of long-term investment gains; this was offset by higher repairs and maintenance costs related to facilities.

The $8.9-million surplus is a significant positive variance from the balanced budget that was approved by the Board of Governors in May 2017. A large portion of this variance is due to fiscal prudence. To minimize the possibility that an actual deficit might occur, management uses conservative estimates to prepare the budget, especially in relation to its enrolments and fundraising. Other major reasons for the variance relate to staff position vacancies, cost savings in a variety of operational areas and realizing the long term market gain.

44 | Annual Report 2017-18

Revenue Total revenues for the year ended June 30, 2018, were $75.3 million, an increase of $4 million (5.6 per cent) over the prior year and $5.3 million (7.4 per cent) over budget. Major components of revenue are as follows:

45.3% Government of Alberta Campus Alberta grant 9.4% Government of Alberta other grants 2.7% Federal and other government grants 20.6% Student tuition and fees 13.4% Sales of services and products 2.8% Donations and other grants 5.8% Investment income

Revenue ($ millions) Budget

2018

2017

Government of Alberta grants

40.3 41.2 41.4

Federal and other government grants

2.6 2.0 2.2

Student tuition and fees

14.9 15.5 14.9

Sales of services and products Donations and other grants Investment income

10.9 10.1 9.5 0.4

2.1 2.1

1.0 1.1

4.3 Annual Report 2017-18 | 45

Government of Alberta grants Grants from the Government of Alberta represented Lakeland’s single largest source of income at 54.8 per cent (2017 – 58.1 per cent). At $15,943 per student, the $34.1 million Campus Alberta Grant plays a key role in funding Lakeland’s programs. In addition to the Campus Alberta Grant, which reflects a two per cent cost of living adjustment and $196,000 in tuition freeze funding, the college received $1.9 million in apprenticeship technical training grants for 1,146 apprenticeship seats. This is a $1 million (34 per cent) reduction from the $2.9 million received in 2017. Lakeland also received a number of conditional and one-time grants, which included $290,000 in mental health funding, $6 million for the Trades Centre exterior building and roofing repairs, and $1.76 million from the Access to the Future program for the Animal Health Clinic. The $2.2 million in Post-Secondary Institutions Strategic Investment Fund provided by the federal government via Advanced Education brings the total contribution for the Animal Health Clinic and Dairy Learning Centre to $5.955 million.

While grants received from the Government of Alberta increased in 2018, the amount recognized in 2018 decreased by $200,000.

Conditional and capital grants are not recognized as revenue when received; they are deferred and recognized as revenue when the expense is incurred. For conditional grants this means that revenue will be recorded when expenses related to the grant purpose are incurred; and for capital grants this means that the grant revenue is recognized as amortization expense of the related externally funded capital asset is recorded. A detailed breakdown of these balances can be found in Note 20 of the financial statements.

Student tuition and fees At $15.5 million or 20.6 per cent (2017 - 20.9 per cent), student tuition and fees are Lakeland’s second largest revenue source. While tuition rates were held constant, the $600,000 increase over the prior year was a result of increased enrolment of approximately 68 full-load equivalent domestic and international students to 2,141. The Government of Alberta froze tuition fees for the past three fiscal years and in November 2018 the government announced that the tuition freeze will be extended to 2020.

Sales of services and products The third largest source of revenue for Lakeland at 13.4 per cent (2017 – 13.3 per cent) is from the sales of services and products.

Ancillary revenues from the Bookstore, Residence, Food Services, Athletics and Recreation generated $10.1 million in 2018. The $500,000 increase over the prior year is attributed to student enrolment growth and increased production from a larger dairy herd, which resulted in increased milk sales.

Investment income Investment income of $4.3 million was $3.2 million higher than the prior year and represented 5.8 per cent of total revenues (2017 – 1.6 per cent). This variance is predominantly due to a $3.1 million, one-time realization of gains that had accumulated over the prior years. The remaining income was comprised of $175,000 from cash, $978,000 from the CIBC investment fund and $103,000 from the TD Wealth scholarship and endowment fund.

Lakeland held $37.7 million in investments and $11.8 million in cash at year end. The college’s investments are comprised of a $9.7 million scholarship and endowment fund managed by TD Wealth and $28 million in other investments held by CIBC.

Donations and other grants Donations and other grants support many Lakeland College activities. In 2018, donations and other grants stayed static at $2.1 million or 2.8 per cent of total revenues (2017 – three per cent).

Federal and other government grants Federal and other government grants decreased by $225,000 to $2 million or 2.7 per cent (2017 – 3.1 per cent). This variance is a result of lower grant funding recognized related to Lakeland’s research activity.

46 | Annual Report 2017-18

Expense For the year ended June 30, 2018, Lakeland recorded $66.8 million in expenses representing an increase of $1.6 million (2.5 per cent) over the prior year and $3.2 million (4.6 per cent) under budget. Expense by object and function are as follows:

Expense by object 61.1% Salaries and benefits 18.7% Materials, supplies and services 8.8% Amortization of capital assets 4.4% Utilities 4.4% Repairs and maintenance 1.3% Cost of goods sold 1.3% Scholarships and bursaries

Expense by function 42.6% Instruction and training 20.7% Academic and student support 16.7% Facilities operation and maintenance 10.1% Institutional support 7.6% Ancillary services 1.5% Sponsored research 0.8% Special purpose

Annual Report 2017-18 | 47

Expense by Object ($ millions) Budget

2018

2017

Salaries and benefits

42.5 40.8 40.5

Materials, supplies and services

14.0 12.5 12.2

Amortization of capital assets

6.4 5.9 6.0

Utilities

Repairs and maintenance

3.4 2.9 2.4 2.1 2.9 2.3

Scholarships and bursaries

0.7 0.9 0.9

Cost of goods sold

0.9 0.9 0.8

Salaries and benefits Salaries and benefits are the single largest expense representing 61 per cent of Lakeland’s total expense (2017 – 62 per cent). There was a large positive variance from the budget of $1.7 million (4.1 per cent). This is mainly due to position vacancies, negotiated cost of living increases that were budgeted but have not been settled, and a one per cent reduction in LAPP employer contributions.

There was a modest year-over-year increase of $300,000; this was mainly due to merit adjustments.

Materials supplies and services At 18.7 per cent (2017 – 18.8 per cent), this is the second largest expense for Lakeland College. These expenses were $1.5 million (10.6 per cent) lower than budget, but the year-over-year variance was insignificant. The 2018 budget for feed purchases was significantly increased to support growth in both the dairy and the beef herd, but it was not fully utilized. As well, the budget for supplies and materials increased for 2018 to support the change in capital thresholds, but it was not spent due to a focus on discretionary spending.

Repairs and maintenance Repairs and maintenance expenses comprise only 4.4 per cent (2017 - 3.5 per cent) of the total. These expenses were $800,000 (37.5 per cent) more than budget and $600,000 (27.6 per cent) more than prior year’s actuals. These variances are primarily due to higher than anticipated spending on infrastructure maintenance projects, which are offset by the recognition of Government of Alberta Infrastructure Maintenance Program grant revenue.

Utilities and cost of goods sold Utilities comprise 4.4 per cent (2017 – 3.7 per cent), and cost of goods sold 1.3 per cent (2017 - 1.3 per cent) of Lakeland’s total expenses. Utility costs were $500,000 (13.6 per cent) less than budgeted and the cost of goods sold was on par. The college’s 48 | Annual Report 2017-18

$500,000 (20.7 per cent) utilities variance over the prior year is a result of the utility costs for the new Dairy Learning Centre and Animal Health Clinic. Lakeland also continues to face utility increases associated with the carbon tax.

Scholarships and bursaries Lakeland provided $886,000 in scholarships and bursaries in 2018, an increase of 27 per cent over budget and on par with the prior year. The college’s students also received $667,000 in scholarships and bursaries from other sources, which are not included in the financial statements.

Expense by Function ($ millions) Budget

2018

2017

Instruction and training

28.4 27.7

Academic and student support

12.5 13.8 12.9

Facilities operation and maintenance

9.7 11.2 10.0

Institutional support 6.8 7.8 Ancillary services

Sponsored research

Special purpose

31.1

10.7

5.0 5.1 5.3 1.0 1.0 1.0 0.0 0.6 0.5

Expenses as expressed by function were generally consistent with the prior year. In 2018, 63.2 per cent of Lakeland’s expenses were related to activities associated with instruction, training and related academic and student support. This compares quite favourably to other colleges of a similar size and/or mandate.

The most significant year-over-year variance was in institutional support. In this category, spending decreased by $1 million (13 per cent) over the prior year and was $3.9 million (37 per cent) under budget. This decrease can be attributed to reorganizational changes and resulting savings, a reduction in professional development expenditures, a one per cent decrease in LAPP employer contributions and a focus on discretionary spending.

On the other hand, facilities operation and maintenance increased by $1.2 million (12 per cent) over 2017 and was $1.5 million (15 per cent) over budget. The main reason for this increase was due to higher than anticipated spending on infrastructure maintenance projects.

Annual Report 2017-18 | 49

Capital Acquisitions With Lakeland’s aging infrastructure top of mind, the revitalization of the Vermilion campus and modernization of labs and classrooms continues to be a priority. In an effort to enhance the student learning experience, $12.8 million (2017 - $13.7 million) was expended on construction and other capital asset acquisitions in 2018. This spending is mostly attributed to the purchase of equipment for and the construction of the Dairy Learning Centre and Animal Health Clinic, the upgrade to PeopleSoft 9.2 and the implementation of a new firewall.

Net Assets and Net Financial Assets Net assets Lakeland’s net asset balance is an important indicator of financial health. Prudent financial planning and decision-making, combined with increased endowment contributions from donors, have all contributed to the college’s success. As a result of the annual surplus of $8.9 million, the accumulated surplus increased from $55.5 million to $64.4 million.

Net assets at June 30, 2018 are comprised of the following:

48.7% Investment in tangible capital assets 32.0% Strategic Investment Fund (Internally restricted net assets) 11.4% Endowments 7.9% Accumulated net assets from operations

Net assets ($ thousands) Balance at June 30, 2017

Accumulated net assets from operations $

8,762

Investment in tangible capital assets $

26,576

Internally restricted net assets $

16,297

Endowments

$

6,942

Total net assets

$

58,578

Annual surplus

8,895

-

-

-

8,895

Endowments

(430)

-

-

430

-

Tangible capital assets

(435)

4,952

(4,516)

-

-

115

-

(115)

-

-

Board appropriation to internally restricted net assets

(9,000)

-

9,000

-

-

Change in accumulated remeasurement gains

(2,816)

-

-

-

(2,816)

Operating expenses funded from internally restricted net assets

Balance at June 30, 2018

50 | Annual Report 2017-18

$

5,091

$

31,528

$

20,666

$

7,372

$

64,657

Lakeland has generated modest surpluses over the last few years, and as a result, its financial position is relatively healthy. Of the $64.7 million in accumulated surplus, $38.9 million is not available for spending; $7.4 million relates to permanently restricted endowments that must be maintained in perpetuity; and $31.5 million is invested in capital assets. Of the $20.7-million strategic investment fund (internally restricted net assets), approximately $10.8 million is committed to projects in progress (Animal Health Clinic, Vermilion Campus Revitalization, among others). Even with the $9 million Board approved transfer to the Strategic Investment Fund during the year, only $10 million in the Strategic Investment Fund remains to fund high priority strategic initiatives. With over $150 million in capital projects required to address the college’s aging infrastructure, surpluses and grant funding will continue to be required. Of the $5.1 million of accumulated net assets from operations, $3.2 million has been committed to future capital expenditures (PeopleSoft upgrade, IT infrastructure, fleet renewal, fire truck, among others).

Net financial assets The Net Financial Asset indicator is intended to identify the availability of net financial resources to fund future operations after considering liabilities owed to third parties. Included in Lakeland’s net financial assets is $9.7 million that is related to investments restricted for endowments. Portfolio investments restricted for endowments must be maintained in perpetuity with investment income used to fund specific donor supported scholarships. They are therefore not available to pay for college liabilities, nor can the college use the endowment portfolio investments to pay for future operating or capital purchases. Consequently, a more accurate indicator of solvency is Lakeland’s net financial assets, excluding portfolio investments restricted for endowments. This was $18.6 million as of June 30, 2018, an increase of $400,000 from the prior year.

Areas of Significant Financial Risk Deferred maintenance, campus revitalization, modernization of classrooms and labs With more than $150 million in deferred maintenance projects identified, this continues to be a significant financial risk for Lakeland.

Its buildings (inside and out), roads, and water and sewer lines need significant investment to extend and/or maintain their useful life. Infrastructure Maintenance Program funding from the province increased to $2 million (2017 - $1.4 million) but much more is needed. In the absence of adequate funding from the Government of Alberta, operating surpluses are needed to address this and other long-term strategically important initiatives.

Grants from the province and tuition fees The largest source of revenue for Lakeland is grants from the Government of Alberta, followed by student tuition and fees. These two sources represent 76 per cent of the college’s total revenue. Although the operating grant increased by two per cent for 2018, the Government of Alberta’s fiscal outlook suggests additional funding uncertainty. The college may face large grant reductions in the near future. Lakeland will therefore continue to explore cost savings and other revenue generating opportunities. Eventually, this structural revenue deficit may have to be offset by decreases in service, and/or staff.

Annual Report 2017-18 | 51

Independent Auditor’s Report To the Board of Governors of Lakeland College Report on the Financial Statements I have audited the accompanying financial statements of Lakeland College, which comprise the statement of financial position as at June 30, 2018, and the statements of operations, change in net financial assets, remeasurement gains and losses, and cash flows for the year then ended, and a summary of significant accounting policies and other explanatory information.

Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with Canadian public sector accounting standards, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditor's Responsibility My responsibility is to express an opinion on these financial statements based on my audit. I conducted my audit in accordance with Canadian generally accepted auditing standards. Those standards require that I comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements.

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

I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my audit opinion.

Opinion In my opinion, the financial statements present fairly, in all material respects, the financial position of Lakeland College as at June 30, 2018, 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.

[Original signed by W. Doug Wylie FCPA, FCMA, ICD.D] Auditor General October 17, 2018 Edmonton, Alberta

52 | Annual Report 2017-18

STATEMENT OF MANAGEMENT RESPONSIBILITY Year ended June 30, 2018

The financial statements of Lakeland College (the College) have been prepared by management in accordance with Canadian public sector accounting standards. The financial statements present fairly the financial position of the College as at June 30, 2018 and the results of its operations, remeasurement gains and losses, changes 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 Lakeland College assets are safeguarded from loss and that the accounting records are a reliable basis for the preparation of the financial statements.

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

The Board of Governors carries out its responsibility for review of the financial statements principally through its Audit and Risk Committee. With the exception of the President, all members of the Audit and Risk Committee are not employees of the College.

The Audit and Risk 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 and Risk Committee, with and without the presence of management.

These financial statements have been reported on by the Auditor General of Alberta, the auditor appointed under the Postsecondary 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 financial statements.

_______________________________________

_______________________________________

[Original signed by Alice Wainwright-Stewart] President

[Original signed by Murray Walford] Chief Financial Officer

Annual Report 2017-18 | 53

Statement of Financial Position As at June 30, 2018 2018

2017

Financial assets excluding portfolio investments restricted for endowments Cash and cash equivalents (note 4)

$

Portfolio investments - non-endowment (note 5) Accounts receivable Inventories for resale

11,764,095

$

10,833,036

28,015,559

26,878,703

2,076,075

3,678,776

360,691

260,681

42,216,420

41,651,196

Accounts payable and accrued liabilities

6,974,327

11,446,777

Debt (note 8)

1,080,000

1,200,000

15,332,902

10,709,720

Liabilities

Deferred revenue (note 9) Liability for contaminated sites (note 12)

Net financial assets excluding portfolio investments restricted for endowments Portfolio investments – restricted for endowments (note 5)

219,111

92,075

23,606,340

23,448,572

18,610,080

18,202,624

9,680,013

9,270,979

28,290,093

27,473,603

93,126,121

86,182,999

Inventories of supplies

1,683,884

1,347,272

Prepaid expenses

1,831,219

1,750,162

96,641,224

89,280,433

Net assets before deferred capital contributions

124,931,317

116,754,036

Spent deferred capital contributions (note 11)

60,274,416

58,176,217

Net financial assets Non-financial assets Tangible capital assets (note 10)

Net assets (note 13)

$

64,656,901

$

58,577,819

$

64,411,999

$

55,517,103

$

64,656,901

$

58,577,819

Net assets is comprised of: Accumulated surplus Accumulated remeasurement gains

244,902

3,060,716

Contingent assets and contractual rights (notes 14 and 16) Contingent liabilities and contractual obligations (notes 15 and 17) Approved by the Board of Governors

_______________________________________

_______________________________________

[Original signed by Scott Webb]

[Original signed by Bryan Perkins]

Chair, Board of Governors

Vice Chair, Board of Governors

54 | Annual Report 2017-18

Statement of Operations Year ended June 30, 2018 Budget

2018

2017

(note 22) Revenues Government of Alberta grants (note 20)

$

Federal and other government grants (note 20)

40,290,504

$

41,239,320

$

41,426,411

2,599,272

2,011,112

2,236,019

Student tuition and fees

14,856,340

15,503,316

14,921,836

Sales of services and products

10,863,009

10,064,064

9,482,246 2,111,451

Donations and other grants

429,450

2,107,134

1,000,000

4,348,064

1,105,112

70,038,575

75,273,010

71,283,075

Instruction and training

31,051,417

28,416,974

27,726,554

Academic and student support

12,486,112

13,799,112

12,921,128

9,719,772

11,166,996

9,977,438

10,731,656

6,752,640

7,786,994

Ancillary services

5,023,918

5,110,159

5,294,564

Sponsored research

1,025,700

1,006,413

1,036,088

555,630

458,892

70,038,575

66,807,924

65,201,658

-

8,465,086

6,081,417

429,548

197,467

Investment income

Expenses (note 18)

Facilities operation and maintenance Institutional support

Special purpose

Annual operating surplus

$

Endowment contributions (note 13) Endowment capitalized investment income (note 13)

Annual surplus Accumulated surplus, beginning of year Accumulated surplus, end of year

$

262

32,385

429,810

229,852

8,894,896

6,311,269

55,517,103

49,205,834

64,411,999

$

55,517,103

Annual Report 2017-18 | 55

Statement of Change in Net Financial Assets Year ended June 30, 2018 2018 Annual surplus

$

Acquisition of tangible capital assets, net of proceeds from sale Amortization of tangible capital assets (Gain) loss on disposal of tangible capital assets Change in inventories of supplies Change in prepaid expenses

8,894,896

2017 $

6,311,269

(12,795,796)

(13,658,469)

5,902,809

6,043,489

(50,136)

301,603

(336,612)

(263,526)

(81,057)

38,737

Change in spent deferred capital contributions

2,098,200

2,899,251

Change in accumulated remeasurement gains

(2,815,814)

789,021

816,490

2,461,375

27,473,603

25,012,228

Increase in net financial assets Net financial assets, beginning of year Net financial assets, end of year

56 | Annual Report 2017-18

$

28,290,093

$

27,473,603

Statement of Remeasurement Gains and Losses Year ended June 30, 2018 2018 Accumulated remeasurement gains, beginning of year

$

3,060,716

2017 $

2,271,695

Unrealized gains attributable to: Portfolio investments - non-endowment

276,479

792,068

(3,092,293)

(3,047)

Amounts reclassified to statement of operations: Portfolio investments - non-endowment Accumulated remeasurement gains, end of year

$

244,902

$

3,060,716

$

244,902

$

3,060,716

$

244,902

$

3,060,716

Accumulated remeasurement gains is comprised of: Portfolio investments – non-endowment

Annual Report 2017-18 | 57

Statement of Cash Flows Year ended June 30, 2018 2018

2017

Operating transactions Annual surplus

$

8,894,896

$

6,311,269

Add (deduct) non-cash items: Amortization of tangible capital assets (Gain) loss on sale of portfolio investments (Gain) loss on disposal of tangible capital assets

5,902,809

6,043,489

(2,986,933)

(149,930)

(50,136)

301,603

(3,293,717)

(3,871,330)

(Increase) decrease in accounts receivable

1,602,701

(1,104,418)

(Increase) decrease in inventories held for sale

(100,010)

28,040

(4,472,450)

4,869,312

4,415,741

647,486

Expended capital recognized as revenue

Increase (decrease) in accounts payable and accrued liabilities Increase in deferred revenue Increase (decrease) in liability for contaminated sitess (Increase) in inventories of supplies (Increase) decrease in prepaid expenses Cash provided by operating transactions

127,036

(1,901)

(336,612)

(263,526)

(81,057)

38,737

9,622,268

12,848,831

(12,830,784)

(11,395,221)

Capital transactions Acquisition of tangible capital assets Proceeds on sale of tangible capital assets

34,988

46,492

(12,795,796)

(11,348,729)

(17,900,341)

(7,181,679)

Proceeds on sale of portfolio investments

16,733,013

7,511,363

Cash (applied to) provided by investing transactions

(1,167,328)

329,684

Cash (applied to) capital transactions Investing transactions Purchase of portfolio investments

Financing transactions Debt – repayment

(120,000)

(120,000)

Increase in spent deferred capital contributions, less expended capital recognized as revenue

5,391,916

4,461,765

Cash applied to financing transactions

5,271,916

4,341,765

931,060

6,171,551

10,833,036

4,661,485

Increase in cash and cash equivalents Cash and cash equivalents, beginning of year Cash and cash equivalents, end of year

58 | Annual Report 2017-18

$

11,764,095

$

10,833,036

Notes to the Financial Statements Year ended June 30, 2018 1.

Authority and purpose

The Board of Governors of Lakeland College is a corporation which manages and operates Lakeland College (“the College”) 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, Campus Alberta Sector Regulation, the College is a comprehensive community institution offering mandated credentials and programs. The College 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 {a}

General – Public Sector Accounting Standards and Use of Estimates

These financial statements have been prepared in accordance with Canadian public sector accounting standards (PSAS).

The measurement of certain assets and liabilities is contingent upon future events; therefore, the preparation of these financial statements requires the use of estimates, which may vary from actual results. The College's management uses judgment to determine such estimates. Amortization of tangible capital assets and the revenue recognition for expended capital contributions are the most significant items based on estimates. In management's opinion, the resulting estimates are within reasonable limits of materiality and are in accordance with the significant accounting policies summarized below.

These significant accounting policies are presented to assist the reader in evaluating these financial statements and, together with the following notes, should be considered an integral part of the financial statements.

{b}

Valuation of Financial Assets and Liabilities

The college’s financial assets and liabilities are generally measured as follows:

Financial statement component

Cash and cash equivalents

Portfolio investments

Inventories held for resale

Accounts receivable

Accounts payable and accrued liabilities

Debt

Measurement Cost or amortized cost Fair value Lower of cost or net realizable value Amortized cost Amortized cost Amortized cost

Unrealized gains and losses from changes in the fair value of financial assets and liabilities are recognized in the 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 recorded in the statement of operations. A write-down of a portfolio investment to reflect a loss in value 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 College does not use foreign currency contracts or any other type of derivative financial instruments for trading or speculative purposes.

Management evaluates contractual obligations for the existence of embedded derivatives, and has determined that no embedded derivatives are present for the year ending June 30, 2018. When derivatives are identified, management elects to either designate the entire contract for 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 College’s normal purchase, sale or usage requirements are not recognized as financial assets or financial liabilities.

Annual Report 2017-18 | 59

Note 2 (continued)

{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 recorded 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 college’s actions and communications as to the use, create a liability. These grants and donations are recognized as revenue as the terms are met. If the grants and donations are used to acquire or construct tangible capital assets, revenue will be recognized over the useful life of the tangible capital assets.

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

In-kind donations of services, materials and tangible capital assets are recorded at fair value when such value can reasonably be determined. Transfers of tangible capital assets from related parties are recorded 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 college 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 college cannot determine the fair value, it records such in-kind contributions at nominal value.

Endowment donations

Endowment donations are recognized as revenue in the 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 or 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 donation are met.

Realized investment income allocated to endowment balances for the preservation of endowment capital purchasing power is recognized in the statement of operations as a component of endowment contributions and capitalized investment income.

{d} Endowments

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

Investment 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 college policy stipulate that the economic value of the endowments must be protected by limiting the amount of income that may be expended and reinvesting unexpended income.

60 | Annual Report 2017-18

Note 2 (continued)

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

• income earned by the endowment to be withheld from distribution to avoid fluctuations in the amounts distributed and generally to regulate the distribution of income earned by the endowment.

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

In any year, if the investment income earned on endowments, including unspent investment income from prior years, is insufficient to fund the spending allocation, the spending allocation is funded from the accumulated capitalized investment income.

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

{e} Inventories

Inventories held for resale are valued at the lower of cost or expected net realizable value and are determined using the

first-in-first-out method. Inventories of supplies are valued at cost.

{f}

Tangible Capital Assets

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

Capital lease obligations are recorded at the present value of the minimum lease payments 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 college’s rate for incremental borrowing or the interest rate implicit in the lease.

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

Building & site improvements Furniture and equipment Computer hardware and software Learning resources

3-40 years 5-40 years 5 years 10 years

Tangible capital assets are written down when conditions indicate that they no longer contribute to the college’s ability to provide goods and services, or when the value of future economic benefits associated with the tangible capital assets are less than their net book value. The net write-downs are recognized as expenses in the statement of operations.

Contributed capital assets are recorded as revenues at their fair market value on the date of donation, except in circumstances where fair value cannot be reasonably determined, which are then recognized at nominal value. Transfers of capital assets from related parties are recorded at the carrying value.

Intangible assets, 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.

Annual Report 2017-18 | 61

Note 2 (continued)

{g}

Asset Retirement Obligations

Asset retirement obligations are recognized for statutory, contractual or legal obligations associated with the retirement of tangible capital assets when those obligations result from the acquisition, construction, development or normal operation of the assets. The obligations are measured initially at fair value, determined using present value methodology, and the resulting costs capitalized into the carrying amount of the related asset. In subsequent periods, the liability is adjusted for the accretion of discount and any changes in the amount or timing of the underlying future cash flows. The capitalized asset retirement cost is amortized on the same basis as the related asset and the discount accretion is included in determining the results of operations.

{h}

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 statement of financial position date. Unrealized foreign exchange gains and losses are recognized in the statement of remeasurement gains and losses.

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

{i}

Employee Future Benefits

Pension

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

The college 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 recorded 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 pre-determined amounts that are expected to provide the plan’s future benefits.

Other employee future benefits

The college provides other employment benefits to eligible employees; namely, self-insured short- term disability and other post-employment benefits. These benefits are recorded as a liability and expense when the event obligating the college occurs, and value is determined by actual costs incurred.

{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. The liability is recognized net of any expected recoveries. A liability for remediation of contaminated sites normally results from an operation(s) that is no longer in productive use and is recognized when all of the following criteria are met:

i. an environmental standard exists; ii. contamination exceeds the environmental standard; iii. the college is directly responsible or accepts responsibility; iv. it is expected that future economic benefits will be given up; and v. a reasonable estimate of the amount can be made.

62 | Annual Report 2017-18

Note 2 (continued)

{k}

Expense by Function

The college uses the following categories of functions on its statement of operations:

Instruction and training

Expenses relating directly to instruction and training programs of the college. This function includes expenses incurred by faculties for their scholarly activities.

Academic and student support

Expenses relating to support for the academic functions of the college both directly and indirectly. This function also includes expenses incurred in order to provide services to students and faculty.

Facilities operation and maintenance

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

Institutional support

Expenses relating to support for operational functions of the college both directly and indirectly. This function includes expenses incurred by the administrative functions of the college.

Ancillary services

Expenses relating to services and products provided to the college community and to external individuals and organizations. Services include the college bookstore, recreation and student residences.

Sponsored research

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

Special purpose

Expenses for activities related to fundraising events.

{l}

Funds & Reserves

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

{m}

Future Accounting Changes

In June 2015, the Public Sector Accounting Board issued PS 3430 Restructuring Transactions. This accounting standard is effective for fiscal years starting on or after April 1, 2018. PS 3430 Restructuring Transactions defines a restructuring transaction and establishes standards for recognizing and measuring assets and liabilities transferred in a restructuring transaction.

In March 2018, the Public Sector Accounting Board approved PS 3280 Asset Retirement Obligations. This accounting standard is effective for fiscal years starting on or after April 1, 2021. PS 3280 Asset Retirement Obligations provides guidance on how to account for and report a liability for retirement of a tangible capital asset.

Management is currently assessing the impact of these new standards on the consolidated financial statements.

Annual Report 2017-18 | 63

3.

Adoption of new accounting standards

The institution has prospectively adopted standards from July 1, 2017:

• PS 2200 - Related party disclosures defines a related party and identifies disclosures for related parties and related party transactions, including key management personnel and close family members.

• PS 3420 - Inter-entity transactions, establishes standards on how to account for and report transactions between public sector entities that comprise a government's reporting entity from both a provider and recipient perspective.

• PS 3210 - Assets provides guidance for applying the definition of assets set out in PS 1000, Financial statement concepts, and establishes general disclosure standards for assets.

• PS 3320 - Contingent assets defines and establishes disclosure standards for contingent assets.

• PS 3380 - Contractual rights defines and establishes disclosure standards on contractual rights.

4.

Cash and cash equivalents

Cash and cash equivalents are composed of:

2018 Cash

$

2017

11,764,095

$

10,833,036

Cash equivalents include short term investments with a short maturity less than three months from the date of acquisition.

5.

Portfolio investments

2018 Portfolio investments – non-endowment

$

Portfolio investments – restricted for endowments

28,015,559

$

26,878,703

$

36,149,682

9,680,013 $

2017

9,270,979

37,695,572

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

2018 Level 1

Level 2

Total

Investments at fair value: Bonds Canadian bonds

$

Pooled investment funds

3,839,271

$

-

$

3,839,271

-

9,518,344

9,518,344

Canadian equities

2,581,957

-

2,581,957

Foreign equities

3,258,785

-

3,258,785

17,541,055

17,541,055

Equities

-

Pooled investment funds Money market and term securities

$

9,680,013 26%

64 | Annual Report 2017-18

956,160 $

28,015,559 74%

956,160 $

37,695,572 100%

Note 5 (continued)

2017 Level 1

Level 2

Total

Investments at fair value: Bonds Canadian bonds

$

6,085,024

Pooled investment funds

$

-

$

6,085,024

-

9,833,263

9,833,263

Canadian equities

1,462,237

-

1,462,237

Foreign equities

1,723,717

-

1,723,717

-

16,586,232

16,586,232

Equities

Pooled investment funds Money market and term securities

$

9,270,911 26%

459,276 $

26,878,703

459,276 $

74%

36,149,682 100%

The fair value measurements are those derived from:

Level 1 – Quoted prices in active markets for identical assets or liabilities;

Level 2 – Fair value measurements are those derived from inputs other than quoted prices included within level 1 that are observable for the assets, either directly (i.e. as prices) or indirectly (i.e. derived from prices);

Level 3 – While the college does not have any level 3 investments, their 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).

6.

Financial risk management

The college is exposed to the following risks:

Market price risk

The college is exposed to market price risk - the risk that the value of a 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 college 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 college assesses its portfolio sensitivity to a percentage increase or decrease in market prices. The sensitivity rate is determined using the historical annualized standard deviation for portfolio investments over several years, as determined by the college’s investment fund manager’s reports.

At June 30, 2018, the impact of a change in the rate of return on portfolio investments would be as follows:

Portfolio investments – non endowment

• 2.89% change in bonds would result in a $275,155 increase or decrease (2017 – 2.95% and $290,275)

• 6.03% change in equities would result in a $1,057,113 increase or decrease (2017 – 6.38% and $1,057,928)

Portfolio investments – restricted for endowments

• 2.22% change in bonds would result in a $85,232 increase or decrease (2017 – 2.43% and $147,864)

• 9.38% change in equities would result in a $547,676 increase or decrease (2017 – 9.11% and $290,214)

Annual Report 2017-18 | 65

Note 6 (continued)

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 college is exposed to foreign exchange risk on investments that are denominated in foreign currencies. The college does not use foreign currency forward contracts or any other type of derivative financial instruments for trading or speculative purposes. The college’s exposure to foreign exchange risk is very low due to minimal business activities conducted in a foreign currency.

Credit risk

Counterparty credit risk is the risk of loss arising from the failure of a counterparty to fully honor its financial obligations with the college. The college 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 are as follows:

Credit rating AAA

2018

2017

7.3%

14.3%

AA

86.9%

24.8%

AA-

0.0%

3.2%

A+

0.0%

20.7%

A

5.8%

37.0%

100%

100%

Liquidity risk

Liquidity risk is the risk that the college will encounter difficulty in meeting obligations associated with its financial liabilities. The college maintains a portfolio of short-term investments to manage short-term cash requirements.

Interest rate risk

Interest rate risk is the risk to the college’s earnings that arise from the fluctuations in interest rates and the degree of volatility of these rates. This risk is managed by investment policies that limit the term to maturity of certain fixed income securities that the college holds. Interest risk on the college’s debt is managed through fixed-risk agreements with Alberta Capital Finance Authority (note 8).

The maturity and effective market yield of interest bearing investments are as follows:

Less than 1 year

1 to 5 years

Greater than 5 years

Average effective market yield

Cash and cash equivalents

100.0%

0.0%

0.0%

1.7%

Portfolio investments, short term

100.0%

0.0%

0.0%

1.7%

0.0%

46.6%

53.4%

2.8%

Asset Class

Portfolio investments, fixed income

66 | Annual Report 2017-18

7.

Employee future benefit liabilities

Defined benefit plan accounted for on a defined contribution basis

Local Authorities 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 contribution basis. At December 31, 2017, the LAPP reported an actuarial surplus of $4,836 million (2016 - $637 million deficiency). An actuarial valuation of the LAPP was carried out as at December 31, 2016 and was then extrapolated to December 31, 2017. The pension expense recorded in these financial statements is $3,192,315 (2017 $3,277,117). Other than the requirement to make additional contributions, the College does not bear any risk related to the LAPP deficit.

8. Debt

Debt is measured at amortized cost and is comprised of the following:

Debentures payable to Alberta Capital Finance Authority

Collateral

Maturity

Interest Rate

Residences

2026

6.5%

2018

2017

$

1,080,000

$

1,200,000

$

1,080,000

$

1,200,000

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

Principal 2019

$

120,000

Interest $

Total

70,200

$

190,200

2020

120,000

62,400

182,400

2021

120,000

54,600

174,600

2022

120,000

46,800

166,800

2023

120,000

39,000

159,000

Thereafter

480,000 $

1,080,000

78,000 $

558,000

351,000

$

Interest expense on debt is $70,850 (2017 - $78,650) and is included in the statement of operations.

The net book value of assets pledged as collateral is $1,973,245.

9.

Deferred revenue

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

1,431,000

2018 Deferred research and special purpose Balance, beginning of year

$

6,260,626

Unspent deferred capital contributions $

1,852,976

2017 Tuition and other fees

$

2,596,118

Total

$

10,709,720

Total

$

10,079,536

7,365,313

9,657,357

18,625,139

35,647,809

Restricted investment income

121,217

53,645

-

174,862

359,878

Change in unrealized (losses) gains

207,441

-

-

207,441

(17,302)

Grants, tuition, donations received

33,209,166

Annual Report 2017-18 | 67

Note 9 (continued)

2018 Transfers to spent deferred capital contributions Recognized as revenue Transfers to endowments

(7,309)

(5,384,607)

-

(5,391,916)

(6,770,581)

(8,531,207)

(51,089)

(17,287,598)

(25,869,894)

(26,032,590)

(145,120)

Balance, end of year

$

2017

5,270,961

$

6,128,282

(145,120)

$

3,933,659

$

15,332,902

(118,387) $

10,709,720

10. Tangible capital assets 2018

2017

Computer

Building & site

Furniture &

improvements

equipment ¹

hardware & software

$ 6,030,712

$151,272,985

$ 21,374,309

$19,221,570

Acquisitions ³

-

7,731,277

2,638,740

2,460,752

15

12,830,784

13,704,963

Disposals, including Write-downs

-

(43,140)

(158,599)

(1,050,031)

-

(1,251,770)

(1,102,923)

6,030,712

158,961,122

23,854,450

20,632,291

14,446

209,493,021

197,914,007

-

$81,712,829

$ 13,360,162

$16,643,586

14,431 $111,731,008

$ 106,442,345

Amortization expense

-

3,654,043

1,296,101

952,665

-

5,902,809

6,043,490

Effects on disposals, Including write-downs

-

(43,140)

(177,382)

(1,046,395)

-

(1,266,917)

(754,827)

-

85,323,732

14,478,881

16,549,856

14,431

116,366,900

111,731,008

Net book value at June 30, 2018

$ 6,030,712

$73,637,390

$9,375,569

$ 4,082,435

$

15

$93,126,121

Net book value at June 30, 2017

$ 6,030,712

$69,560,156

$ 8,014,147

$ 2,786,913

$

-

Land

Learning

Total

Total

14,431 $197,914,007

$ 185,311,967

resources

Cost ² Balance, beginning of year

$

Accumulated amortization Balance, beginning of year

$

$

No interest was capitalized by the college during the 2018 or 2017 fiscal years.

(1) Equipment includes vehicles, office equipment and furniture, and other equipment.

$ 86,182,999

(a) Cost includes work in progress at June 30, 2018 totaling $7,809,271 (2017 - $9,934,694) comprised of $7,736,718 in

buildings and site improvements (2017 - $8,976,019), $0 in equipment (2017 - $788,427) and $72,553 in software

(2017 - $170,249). These assets are not amortized as the assets are not available for use.

(b) There were no acquisitions during the year as a result of in-kind contributions. In-kind contributions in 2017 were

valued at $2,740,322 (Land - $430,581, Buildings - $2,267,948 and Vehicles - $41,793).

68 | Annual Report 2017-18

11. Spent deferred capital contributions

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

2018

2017

Spent deferred capital contributions Balance, beginning of year

$

58,176,217

Transfers from unspent deferred capital contributions

$

55,276,966

5,384,607

Transfers from deferred research and special purpose Expended capital recognized as revenue Balance, end of year

$

6,718,027

7,309

52,554

(3,293,717)

(3,871,330)

60,274,416

$

58,176,217

12. Liability for contaminated sites

The composition of liabilities is a follows:

2018 Balance, beginning of year

$

Addition to liabilities during the year

92,075

$

93,976 -

-

-

(5,350)

Balance, end of year

$

132,386

Change in estimate related to existing sites Remediation work performed

2017

(1,901)

219,111

$

92,075

The college has accepted responsibility to perform remediation work on four sites related to contaminated soils and groundwater.

Two sites were contaminated as a result of ongoing agricultural activity; risk management and monitoring will continue over the next year. The third site was contaminated as a result of the disposal of ash and petrochemical products.

Remediation for this site is expected to consist of excavation and disposal of contaminated soil; this work is expected to be completed in 2019. The addition to the liability and the remaining site is associated with decommissioning a dairy lagoon; remediation of this site is expected to be completed in early 2019.

Liabilities have been calculated using estimates of undiscounted cash flows generated by third parties.

13. Net assets

Net assets, as at July 1, 2016 Annual surplus

Accumulated net assets from operations

Investment in tangible capital assets

$

$

4,779,204

22,088,712

$

Internally restricted net assets

Endowments

17,897,378

$

6,712,235

Total net assets

$

51,477,529

6,311,269

-

-

-

6,311,269

(197,467)

-

-

197,467

-

(32,385)

-

-

32,385

-

-

-

-

-

-

2,441,712

(2,441,712)

-

-

-

Endowments New donations Capitalized investment income Transfer to endowments Tangible capital assets Amortization of tangible capital assets

Annual Report 2017-18 | 69

Note 13 (continued)

Accumulated net assets from operations

Investment in tangible capital assets

Internally restricted net assets

Endowments

Total net assets

(1,396,808)

6,887,885

(5,491,077)

-

-

(120,000)

120,000

-

-

-

78,543

(78,543)

-

-

-

108,865

-

(108,865)

-

-

(4,000,000)

-

4,000,000

-

-

789,021

-

-

-

789,021

Acquisition of tangible capital assets Debt repayment Net book value of tangible capital asset disposals Operating expenses funded from internally restricted net assets Net board appropriation to internally restricted net assets Change in accumulated remeasurement gains Net assets, as at June 30, 2017

$

Annual surplus

8,761,954

$

26,576,342

$

16,297,436

$

6,942,087

$

58,577,819

8,894,896

-

-

-

8,894,896

(334,162)

-

-

334,162

-

(262)

-

-

262

-

(95,386)

-

-

95,386

-

2,609,092

(2,609,092)

-

-

-

(2,936,204)

7,452,355

(4,516,151)

-

-

(120,000)

120,000

-

-

-

11,724

(11,724)

-

-

-

114,874

-

(114,874)

-

-

Net board appropriation to internally restricted net assets

(9,000,000)

-

9,000,000

-

-

Change in accumulated remeasurement gains

(2,815,814)

-

-

-

(2,815,814)

Endowments

-

New donations Capitalized investment income Transfer to endowments Tangible capital assets

-

Amortization of tangible capital assets Acquisition of tangible capital assets Debt repayment Net book value of tangible capital asset disposals Operating expenses funded from internally restricted net assets

Net assets, at June 30, 2018

$

5,090,712

$

31,527,881

$

20,666,411

$

7,371,897

$

64,656,901

$

4,845,810

$

31,527,881

$

20,666,411

$

7,371,897

$

64,411,999

Net assets is comprised of: Accumulated surplus Accumulated remeasurement gains and losses

244,902 $

5,090,712

$

31,527,881

$

20,666,411

$

7,371,897

244,902 $

64,656,901

Investment in tangible capital assets represents the amount of the college’s net assets that has been invested in the college’s capital assets.

70 | Annual Report 2017-18

Note 13 (continued)

Internally restricted net assets represent amounts set aside or appropriated by the college’s Board of Governors. Those amounts are not available for other purposes without the approval of the Board and do not have interest allocated to them.

Internally restricted net assets reserved for future purposes are summarized as follows:

Balance, beginning of year

Appropriations Net additions from (returned or (disbursements) to) unrestricted during the year net assets

Balance, end of year

Appropriations for capital activities Major capital projects

$

Emerging capital needs

11,807,877

$

8,000,000

$

(3,834,446)

$

15,973,431

1,529,741

500,000

(681,705)

1,348,035

13,337,617

8,500,000

(4,516,151)

17,321,466

2,634,463

500,000

(148,912)

2,985,552

325,356

-

34,038

359,393

2,959,819

500,000

(114,874)

3,344,945

Appropriations for operating activities Major maintenance Delivery initiatives Total appropriations

$

16,297,436

$

9,000,000

$

(4,631,025)

$

20,666,411

14. Contingent assets

The College has not initiated any legal matters or insurance claims which may result in the recognition of assets.

15. Contingent liabilities

The College has identified potential asset retirement obligations related to the existence of asbestos in a number of its facilities. Although not a current health hazard, upon renovation or demolition of these facilities, the College may be required to take appropriate remediation procedures to remove the asbestos. As the College has no legal obligation to remove the asbestos in these facilities as long as the asbestos is contained and does not pose a public health risk, the fair value of the obligation cannot be reasonably estimated due to the indeterminate timing and scope of the removal.

The asset retirement obligations for these assets will be recorded in the period in which there is certainty that the capital project will proceed and there is sufficient information to estimate fair value of the obligation.

16. Contractual rights

Contractual rights are rights of the College 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 2019

$

56,909

Other $

748,423

Total $

805,332

2020

23,605

82,896

106,501

2021

18,000

82,896

100,896

2022

15,100

82,896

97,996

2023

5,600

82,896

88,496

Thereafter

72,800

52,896

125,696

Total at June 30, 2018

$

192,014

$

1,132,905

$

1,324,919

Total at June 30, 2017

$

253,977

$

2,260,777

$

2,514,754

Annual Report 2017-18 | 71

17. Contractual obligations

The College 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 amounts payable for the unexpired terms of these contractual obligations are as follows:

Service contracts 2019

$

1,288,755

$

Capital projects

Information systems and technology

5,350,855

$

146,574

Long term leases $

128,658

Total

$

6,914,842

2020

909,136

-

47,402

88,147

1,044,685

2021

655,502

-

44,402

38,252

738,156

2022

121,579

-

44,402

24,003

189,983

2023

6,902

-

44,402

7,001

58,305

Thereafter

1,104

-

-

-

1,104

Total at June 30, 2018

$

2,982,977

$

5,350,855

$

327,182

$

286,061

$

8,947,075

Total at June 30, 2017

$

3,495,787

$

8,050,161

$

205,157

$

369,011

$

12,120,116

18. Expense by object

The following is a summary of expense by object:

2018

2017

Budget Salaries and benefits

$

42,545,076

Actual $

40,779,979

Actual $

40,450,809

Material, supplies and services

13,958,270

12,480,609

12,231,643

Amortization of capital assets

6,365,407

5,902,809

6,043,489

Utilities

3,406,442

2,941,469

2,437,830

Repairs and maintenance

2,137,017

2,938,788

2,303,677

697,597

885,829

890,639

Scholarships and bursaries Cost of goods sold

928,766 $

70,038,575

878,441 $

66,807,924

843,571 $

65,201,658

19. Related parties

The institution is a related party with organizations within the Government of Alberta reporting entity. Key management personnel of the institution and their close family members are also considered related parties. The institution may enter into transactions with these entities and individuals in the normal course of operations and on normal terms.

The college has debt with the Alberta Capital Finance Authority as described in note 8.

During the year, the college provided and received the following services at nominal or reduced amounts:

• During the year the college occupied space from other Government of Alberta related parties at a nominal cost. As well, other Government of Alberta related parties occupied space from the college under similar financial terms. These costs and related revenues are recorded at carrying values that differ from values that would have been recorded if the parties were at arm’s length.

72 | Annual Report 2017-18

20. Government transfers

The college operates under the authority and statutes of the Province of Alberta. Transactions and balances between the college and the Government of Alberta are measured at the exchange amount and are summarized below.

2018

2017

Grants from Government of Alberta Advanced Education Operating

$

33,477,854

$

32,915,346

Capital

7,896,603

4,605,548

Other Conditional Grants

6,998,565

5,705,403

Total Advanced Education

$

48,373,022

$

21,548

$

43,226,297

Other Government of Alberta departments and agencies Alberta Agriculture and Forestry Culture and Tourism Economic Development & Trade Labour $

$

Expended capital recognized as revenue Deferred revenue $

128,000 64,651

38,000

30,000

14,175

Total other Government of Alberta departments and agencies Total contributions received

$

-

17,497

73,723

$

240,148

48,446,745

$

43,466,445

2,559,218

2,784,291

(9,766,643)

(4,824,325)

41,239,320

$

41,426,411

810,662

$

1,716,613

Federal and other government grants Contributions received Expended capital recognized as revenue

204,210

Deferred revenue

996,240

Revenue

$

$

2,011,112

461,396 58,010 $

2,236,019

The College has liabilities with Alberta Capital Finance Authority as described in note 8.

Annual Report 2017-18 | 73

21. Salary and employee benefits

2018 Other cash benefits ²

Base salary ¹ 1

2017

Other non-cash benefits ³

Total

Total 1

Governance Chair of Board of Governors

$

-

Members of Board of Governors

$

10,768

$

-

$

10,768

$

7,428

-

12,363

252

12,615

8,140

-

23,131

252

23,383

15,568

275,000

-

34,354

309,355

310,126

VP Academic & Research

200,000

-

34,379

234,379

224,758

VP External Relations & Infrastructure

183,700

-

34,404

218,104

198,312

VP Corporate Services �

-

-

-

-

234,684

Chief Financial Officer

141,057

-

32,602

173,659

39,893

Director Human Resources

130,591

-

29,375

159,966

161,376

930,348

-

165,114

1,095,462

1,169,149

Senior Leadership President Vice Presidents

Other

$

930,348

$

23,131

$

(1) Base salary includes pensionable base pay.

(2) Other cash benefits include honoraria and other non-salary payments.

165,366

$

1,118,845

$

1,184,717

(3) Employer's share of all employee benefits and contributions or payments made on behalf of employees including

pension, health care, dental coverage, vision coverage, out of country medical benefits, group life insurance, accidental

disability and dismemberment insurance, long and short term disability plan and professional memberships.

(4) The VP Corporate Services position was abolished June 30th, 2017 as a result of reorganization.

22. Budget figures

The college's 2017-2018 budget was approved by the Board of Governors on May 31, 2017 and was presented to the

Minister of Advanced Education as part of the college's submission of its 2017 - 2020 Comprehensive Institutional Plan.

Certain budget figures from the college's 2017 - 2020 Comprehensive Institutional Plan have been reclassified to conform to the presentation adopted in the 2018 financial statements.

23. Comparative figures

Certain 2017 figures have been reclassified to conform to the presentation adopted in the 2018 financial statements.

74 | Annual Report 2017-18

APPENDIX A – DONORS Lakeland College thanks the following supporters for their donations to the college between July 1, 2017 and June 30, 2018. Our thanks also to the many donors who chose to make their contribution anonymously.

Our apologies to anyone whose name we may have inadvertently missed.

Annual Report 2017-18 | 75

Christopher J. Sarsons Professional Corporation

3C Information Solutions Inc.

Bioclean Aquatic Centre

A.D.R. Farms Ltd.

BioVision Seed Labs

Adekunle Ogunnupe Professional Corp.

Black Magic Limo Service

Adoxio Business Solutions Limited

Blacklock, Darrell & Linda

Advanced Auto Cleaning

Block's Agencies

Advanced Pressure Testing Ltd.

Boardom Snow Skate Life

Advisian

Bocock, Bill

Affinity Management Ltd.

Boehm, Joan

Agriculture Financial Services Corp.

Boehm's Physiotherapy Clinic

Agri-Trade Equipment Expo

Bohaychuk, Ron

Alberta Assessors' Association

Border City Building Centre Ltd.

Alberta Blue Cross

Border City Rotary Club

Community Foundation Lethbridge & Southwestern Alberta

Alberta Industrial Fire and Emergency Management Association

Border Escape

Compliant Environmental Services Ltd.

Borja, Edmond & Karen

Alberta Seed Growers Association

Cook, Janet

Brandt, Bob & Ilona

Alberta Veterinary Technologist Association

Cornerstone Co-operative

Brehon, Jean

Country Side Golf Course

Brixton Shoes

County of Vermilion River

Brooks, Jacquelin

Cowan, David

Brown, Geoff & Melissa

Craig's Vermilion Ltd.

Butterfield, Brad

Creative Glass & Aluminum

C.K. McKean Roofing Ltd.

Crispin Shoes Inc.

C5 Bar Ranch Inc.

Crowe, Michael & Kathy

Calgary Stampede Foundation Calkins, Elsie

Crown Investments Corporation of Saskatchewan

Callander, Jim & Mary

Cubbon, David & Judy

Cameron, Robert & Shirley

Culligan Lloydminster

ATCO Gas

Canadian Association of Petroleum Producers

Cunningham, Rex & Joyce

Austin, Howard

Canadian Imperial Bank of Commerce

Baker, Laura & Sheldon

D.S. & G. Enterprises Ltd.

Bandola, Erin

Canadian Indoor Air Quality Investigators

Dahlseide, Melvin & Colleen

Bar Engineering Co. Ltd.

Canadian Natural Resources Limited

Barnhart, Cecil

Canadian Senior Pro Rodeo Association

Battle River Community Foundation

Canadian Tire

Baynton, Pastor Doug

Capital Colour Press (1992) Ltd.

Becker, Sheldon & Peggy

Carter, Deanna

Bernard, Noel & Rhea

CEDA International

Best Western, Cold Lake

Chisholm, Michael

Bilben, Larry & Sharon

Christie, Mike & Ann

Alley Kat Brewing Company Allied Blower Altman, TJ & Georgina Anderson, Frances Anderson, Mark Aramark Canada Ltd. Armstrong, Michelle Armstrong, S. Bryan & Jean ATB Financial ATCO Electric

76 | Annual Report 2017-18

Citadel Mechanical Ltd. Cliff Rose for Clothes Clive Athletic & Agricultural Society Coca-Cola Refreshments Canada Company Cold Lake Minor Soccer Cole, Grant & Donna Colliers Project Leaders Colony Chevrolet GMC Buick Ltd.

Cypress County

Dancey, Randy & Brenda Days Hotel & Suites de Vries, Rob & Jodi Delaire's Electric Designer's Choice (Lloyd) Ltd. Diachuk, Michael & Beverley Harnaha Digital Connection Inc. Digital Land Resources

Divine Healing Holistic Wellness Centre

Gow, Diane & the late William Gow

Knourek, Kristine

Dr. Michael JW Smith Professional Corporation

Grenier, Diane

Kotelko, Mike & Denise

Groch, Larissa

Kuse, Clarence

Dueck, Misty

Hancheruk, Debbie

Kuse, Craig & Kendra

Dust, Kaylee

Hardenne, Darlene

Kuzek, Jonathan

Dustow, Jeff

Harder, Dianne

Labrecque, Mark

DXV Canada

Harrison, Ben

Lakeland College A.H.T. Club

Dyer, Taylor

Hawes, Leanne

Lakeland College Bookstore

E&J Winterhalt Holdings Ltd.

Heritage Educational Foundation

Lakeland College Rowing Club

Eagle Builders LP

Highland Feeders Limited

Lakeland College Staff Association

East of Merlot Event Planning

Hill, Blair

Lakeland College Stock Dog Club

Edge Harley-Davidson

Hissett, Gordon

Lakeland College Students' Association

Edmonton Antique Car Club

Hofer, Brandi

Laura Lights Photography

Edmonton Kenworth Ltd.

Honeker, Brian

Lefsrud, Edmund & Ellen

Electrical Contractors Association of Alberta

Howell, Darrel & Elizabeth

Letts, Park & Beth

Hudson, Robert & Dorothy

Lexus of Edmonton

Husky Group of Companies

Lighthouse Mechanical Ltd.

Hutchison, January

Lions Club of Lloydminster

Hyndman, Garnet & Holly

Lloydminster & District Co-operative Limited

Elevation, Mind Body Spirit Elliott, Doug Ellw, Rick & Viv Enhanced Engineering (E2) Consulting Ltd.

Ideal Office Solutions

Estate of Douglas R Moeckl

Inclusion Lloydminster Inc.

Estate of Margaret M Harcus

Independent Order of Odd Fellows

Excel Construction Ltd.

Israel, Gerald & Jean

Executive Property Management Ltd.

J & A Heating & Plumbing

Factory Sports Excellence

J.J.W. Vending

Fehr, Jared

Jansen, Brian

Fenced In and Decked Out Ltd.

Jansen, Henry & Viola

Fey, Kay

Johre, Mark & Debbie

First General Services Lloydminster 2009 Ltd.

Jones, Barb

First Truck Centre

Just Kruzin

FOCUS

Katsiris, Jonathan

Ford, Alan & Ruth

Kauth, Amie

Fountain Tire

Keber, Alfred & Barbara Jenken

Friesen, Ron

KEM Juice Co.

Gartner, Lacey

King, Bill

Giesbrecht, Jim

Kinsmen Club of Lloydminster

Goodhand, Linnea

Kneen, Kagan

Juba, Vic & Ann

Lloydminster Auto Club Lloydminster Chamber of Commerce Lloydminster Concert Series Lloydminster Cultural & Science Centre Lloydminster KFC Lloydminster Medical Imaging Lloydminster Source Lo Elliott Orthodontics Inc. Lockhart, Ken Long, Marvin Longworth, Barry & Karren Lougheed, David & Janet Lowton, Shamira Lueck, Kelvin & Lesley Luscious Beauty Clinic MacFarlane, Vicki MacMillan, Lee Maier Ranching Ltd. Malaluan, Jason & Renzel Annual Report 2017-18 | 77

North American Powertrain Components Ltd.

Rolling Green Fairways Golf Course and RV Park

Nott, John & Doreen

Rotary Club of Vermilion

Oasis Hot Yoga Studio

Roy Kubica

Odney, Douglas

Royal Canadian Legion Branch 39

Marksmen Vegetation Management Inc.

Oleksyn, Terry & Darla

Marlin Travel

olive & birch

Royal Canadian Legion Marshall Branch 92

McBain, Richard & Joyce

Origin Wearables

McCarty, Barry & Bev

Osprey Scientific

McFarlane, Charlene

Papa John's

McGinnis, Arthur & Gladys

Paradise Hill Ranch & Western Wear Ltd.

McLean-Lawrence, Ina

Parson, Preston

McNaughton, Mark & Sandy

Peck, Matthew

McRobert, Shirley

Pek, Ed & Carol

Medernach, Kim & Carla

Pek, Steve

Menzies, Kassidy

Pelley, Brad

Midwest Floorcovering

Perkins, Bryan & Sharon

Midwest Furniture

Perma Earth Consulting Ltd.

Miller, Albert & Florence

Pillott, Krystene & Shaun

Miller, Justine

Prairie Skies Resort & Marina Ltd.

Milne, Dale

Pure Vibe Studios Ltd.

Minish, Deb

Pursuit Guiding Services

Minister of Finance Disbursement Account II

Quwek, Michael

MNP LLP

RBC Royal Bank

Morgan-Tetz, Delia

RE/MAX Prairie Realty

Morvik, M Scott

Red Bicycle

MTM Energy Services Inc.

Redhead Equipment

Nasby, Angie

Regional Business Accelerator

Nasby, Jeffrey

Reid Signs Ltd.

Nazarchuk, Debbie

Reprah Holdings Ltd.

Neigum, Dave & Debbie

Repsol Oil & Gas Canada Inc.

Nevermind Wellness

Richardson, Glen

Nickell, Ryan & Krista

Richardson's Jewellery

Bonneau, Andre & Inga Nielsen-Bonneau

Riseing, Ed

Manning, Allison Marchak, Robert & Bonnie Marchand, Roland Marianne Stelmaschuk Professional Corporation

NKBA, The Prairie Provinces Noralta Technologies Inc.

Ranch and Feedlot Rider Club

Robertson Moskal Sarsons Robinson, Ron & Myrtle Robinson, William & Marie Moet Rogan, Alan

78 | Annual Report 2017-18

Royal Canadian Legion No. 11 Royal Canadian Legion, Alberta-NWT Command Roy's Courier Service Rutherford, Ken & Jennifer Santhia, Gerald Saskatchewan Assessment Management Agency Saskatchewan Association for Community Living Saskatchewan Association of Veterinary Technologists Schewaga, Jeff & Joy Schiller & Associates Private Wealth Management Schwark, Jeff & Lisa Selinger, Gregory & Lila Senaratne, Chris Seniuk, Olga Servus Sports Centre Sexsmith, Heather Sexty, George & Doreen Sharpe, Kerry Sharpe, Robert & Wendy Shaw, Don & Chantal Shelast, James Siegel, Trent Sigurdson, Wayne & Susan Simple Farmer Country Store Skoretz, Wendy Smith, Val Society of Petroleum Engineers - Lloydminster

Solstice Canada Corp.

Van Lent, Josephia

Sorensen's Fine Furniture Ltd.

Vermilion & Area Volunteer Crisis Line

Spiro's Steak & Pizza

Vermilion & District Chamber of Commerce

Stantec Starko, Austin Starko, Riley Steeped Tea Stewart, Dr. Alex Stiles, Nancy Stocker, Theo & Brenda Stuart, Page Sunshine & Ski Ltd. Symes, Mike & Colleen Synergy Credit Union Tally, Dale Tally, Dan Tally, James Tanmar Consulting Inc. Tarala, Linda Taylor, E. Margaret TD Bank Financial Group TD Insurance Meloche Monnex The Bea Fisher Centre Inc. The Calgary Foundation The Child and Youth Care Association of Alberta

Vermilion Charolais Group Vermilion Credit Union Vermilion Jewellers Vermilion Jr. B Tigers Vermilion Veterinary Clinic (1977) Ltd. Vet Med Assistant Club Vista Radio Ltd. Vos, Anne Wagner, Ken & Carol Wainwright-Stewart, Dr. Alice Wakaw & District EMS Ltd. Wakefield, Milton & Carrol Wakeling, Karl Walisser, Richard & Nicole Walker-Perry, Nadine & Marvin Perry Walsh, Peter & Bonnie Washington, Stephen Webb, Scott & Bernie Weiler, Connor Weiler, Todd & Lynette West, Terry Wetsch, Michael & Kimberley

The Hair Studio

Wheaton GMC Buick Cadillac Ltd.

The Kohel Family

Willerton, Bruce

Thorpe, Todd

Williams, Shirley

Tim Dyck Financial Services Inc.

Williamson, Shelley

TJ Altman Investors Group

Wolters, CM

Tobler, Kelly

Woosaree, Jay

Treffry, Ellis & Donna

Yackimec, Orest & Patricia

Turner, Dennis

Yorke, David & Maureen

TVSMOR Drafting Services Ltd.

Zacharias, Neil

Twice as Nice

Zieglgansberger, Kimberly

UCG Universal Consulting Group Ltd.

Zimmer, Karen

Ungar, Jennifer Van Beek, Mike Annual Report 2017-18 | 79

Vermilion Campus 5707 College Drive Vermilion, Alberta T9X 1K5 Lloydminster Campus 2602 59 Avenue Lloydminster, Alberta T9V 3N7 1.800.661.6490 | lakelandcollege.ca