Management’s Discussion and Analysis The Management’s Discussion and Analysis (MD&A) should be read in conjunction with the Lakeland College annual audited financial statements for the year ended June 30, 2012 and accompanying notes. The MD&A and audited financial statements are reviewed and approved by the Board of Governors of Lakeland. Lakeland’s financial statements have been prepared in accordance with Canadian Generally Accepted Accounting Principles and are expressed in Canadian dollars. Lakeland College had another financially sound year in 2011-2012 with a surplus of $2.3 million being reported for the year ending June 30, 2012. This is a slight decrease ($500,000) from the previous year. The most notable differences in the current year compared to the prior year are the decreases in grant revenue reported ($43.5 in 2010-2011 and $35.7 in 2011-2012) as well as investment income reported ($1.4 in 2010-2011 and $600,000 in 2011-2012). These amounts were offset by costs incurred for maintenance and repairs expenses which were higher in 2010-2011 ($14.6 million) than in 2011-2012 ($4.4 million). The 2011-2012 budget forecasted a deficit of just over $500,000 as Lakeland completed the last of the residence renovations at the Vermilion campus. The $3 million positive budget variance was attributed to strong student numbers resulting in $1.1 million more in tuition revenue and $1.1 million more in bookstore, residence and other sales of services and products revenue. Cost efficiencies in the areas of benefits paid for staff, the cost of natural gas and less amortization than budgeted account for the remainder of the difference. The Management’s Discussion and Analysis provides an overview of the results Lakeland achieved in 2011-2012 with a detailed discussion and analysis of the institution’s: 1. Financial information 2. Future financial outlook 3. Capital projects
1. Financial information Statement of financial position Lakeland’s assets, liabilities and net assets amount to $114 million for the year ended June 30, 2012, as compared to $107.6 million for the year ended June 30, 2011. Highlights The cash and short term investments held by Lakeland at June 30, 2012 had a market value of $16.7 million, which is an increase of $3.4 million over 2011 (as detailed in notes 3 and 4). Long term investment balances increased $700,000 over the 2011 figures to $18.8 million in 2012 (inclusive of an unrealized gain of $600,000). These investment increases are attributed to the investment of grant and donor funds reported in the deferred contributions which increased $4.4 million in 2012 to a reported $15.8 million. The net book value (cost less accumulated amortization) of the capital assets owned by Lakeland amounted to $73.1 million in 2011-2012, as compared to $71.7 million in 2010-2011. Capital assets include buildings, land, site improvements, furnishings, equipment, systems, learning resources, vehicles, and milk quotas, and include amounts for work in progress. The total net book value increased because Lakeland completed work on the Lloydminster campus Child Development Centre, the Renewable Energy Learning Centre, and began work on the new Petroleum Centre. The purchase/acquisition of these capital assets is funded from two potential sources: 1. External funding from government or other external sources (for example, donations); 2. Use of unrestricted funds from Lakeland operations – internal sources.
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Lakeland College