Lakeland College 2019-20 Annual Report

ANNUAL REPORT 2019-20

Annual Report | 1

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

VISION Transforming the future through innovative learning.

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

Please note, photos featuring students without face coverings were taken prior to COVID-19. Lakeland College follows all COVID-19 protocols.

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TABLE OF CONTENTS Accountability Statement............................................................. 4 Management’s Responsibility for Reporting............................. 5 Public Interest Disclosure (Whistleblower Protection) Act....... 5 President’s Message..................................................................... 6 Mandate......................................................................................... 8 Operational Overview ............................................................... 10 Goals, Priority Initiatives, Expected Outcomes and Performance Measures .............................................................. 14 Enrolment Plan and Program Changes ................................... 30 Underrepresented Learners, Regional Stewardship and Foundational learning................................................................ 36 Ministry Initiatives....................................................................... 40 Applied Research ....................................................................... 42 Internationalization .................................................................... 46 Information Technology............................................................. 48 Capital Plan.................................................................................. 50 Financial Discussion and Analysis ............................................ 54 Self-Generated Revenue ........................................................... 61 Financial Statements .................................................................. 63 Auditor’s Report ......................................................................... 64 Statement of Management Responsibility ............................. 67 Statement of Financial Position ................................................ 68 Statement of Operations .......................................................... 69 Statement of Change in Net Financial Assets ........................ 70 Statement of Remeasurement Gains and Losses .................. 70 Statement of Cash Flows .......................................................... 71 Notes to the Financial Statements ........................................... 72 Appendix: Donors ..................................................................... 87 Annual Report | 3

ACCOUNTABILITY STATEMENT Lakeland College’s Annual Report for the year ended June 30, 2020 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 2020

Board of Governors As of June 30, 2020 Chair Scott Webb Vice Chair Bryan Perkins President and CEO Dr. Alice Wainwright-Stewart

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Public Members Jason Bazinet Linnea Goodhand Jo-Ann Hall Dianne Harder Doreen McCaw Jay Woosaree

Student Members Quinn Hlus Matthew Peck Academic Member Don Henry Non-academic Member Merle Klumph

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 the Province of Alberta, the institution’s external auditor appointed under the Post-Secondary Learning Act, performs an annual independent audit of the consolidated financial statements which are prepared in accordance with Canadian public sector accounting standards.

[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 2019-20 year.

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The Lakeland College experience is one for doers.

We challenge every student to go beyond the classroom and to be part of student-led and student-managed experiences. These experiences lead to confident, collaborative graduates who are ready to thrive in their industries.

And by educating our local and regional workforce, Lakeland plays a large role in rural sustainability and economic development in Alberta.

According to our 2019-20 About to Graduate Survey, 98.3 per cent of students are confident they have the necessary skills to take into the workplace. Work-integrated learning opportunities are essential to developing these employability skills, which is why Lakeland places an emphasis on providing experiential learning opportunities at the college. One new opportunity is the partnership between Lakeland and Ridgeline Canada that will bring work-integrated environmental training programs and college credits to Indigenous students.

During the academic year, we reviewed our programs to ensure they offered these hands-on opportunities as well as created new opportunities in many, including agricultural sciences. We developed the new student-managed farm equine model that will be offered this fall and we also continued to make progress on our student-managed ranch, which will feature bison thanks to a major donation from Armin and Rita Mueller to Leading. Learning. The Lakeland Campaign.

MESSAGE FROM THE PRESIDENT 6 | Lakeland College 2019-20

In fact, the Muellers’ $4 million donation is a historic milestone for Lakeland.

Announced in February, it’s the largest single gift Lakeland has received. It will allow Lakeland to purchase land and establish a bison herd at the college, making Lakeland soon the only postsecondary institution in Canada where students, with mentorship from faculty, manage commercial-sized bison, beef, crop, and dairy enterprises. This announcement was followed by another impressive one in March when our dean

of the School of Agricultural Sciences, Josie Van Lent, received the John J Kennelly Western Canadian Dairy Seminar Award of Merit.

These exciting announcements enhanced our year of celebration for our award-winning Student-Managed Farm – Powered by New Holland, which celebrated its 30th anniversary in 2019-20.

We also celebrated international accolades from the National Kitchen & Bath Association (NKBA), which named Lakeland the 2019 NKBA College of the Year for the interior design technology program. Our NKBA accredited program was also one of five programs from across North America recognized with a 2019 Excellence in Education award. As well, Lakeland’s winning-streak continued in the NKBA student design competition, marking 16 consecutive years of student award winners.

Lakeland was also named one of Alberta’s Top 75 Employers. The 2020 announcement marked the fourth consecutive top employer accolade for Lakeland.

Our work to advance real-world agricultural productivity and sustainability in commercial crop and livestock production received welcome support. Lakeland was named one of eight organizations that will advance national agriculture technology priorities thanks to new funding for the Canadian Agri-Food Automation and Intelligence Network. Our agronomic research received a $150,000 grant to purchase a specialized research crop plot combine. It was provided by the Applied Research Tools and Instruments Grant from the Natural Sciences and Engineering Research Council (NSERC) of Canada’s College and Community Innovation (CCI) program. We were also allotted $900,000 in funding through the CCI- Innovation Enhancement Extend program to support commercial agricultural research over a three-year period. The funding from NSERC will be matched by more than $900,000 from industry partners, for a total project investment of $1.8 million. These investments are key to supporting our projects that all support the Alberta Research and Innovation Framework 2030 targets for food and agriculture.

A challenge of being the third oldest post-secondary institution in Alberta is that our campuses require revitalization. During 2019-20, we continued to invest in our infrastructure by completing Phase 1 of the Vermilion Campus Revitalization plan. We made progress on Phase 2 by completing design and building plans for the WHT Mead Animal Science Centre renovation and expansion.

As well, we continued our work to revitalize the Student-Managed Farm – Powered by New Holland as well as the Emergency Training Centre.

We also invested in ways to support our students and staff beyond the classroom. A number of initiatives and activities were organized to support our campus community’s physical and mental health. This work became even more important as we transitioned from in-person, on-campus program delivery to online in March due to COVID-19. Supporting and retaining our students, and communicating the latest updates was essential for them to successfully complete the academic year. I am very proud of how swiftly and safely our campus community came together to support one another and maintain the academic quality our students thrive with.

Despite facing financial constraints in 2019-20, we continued to exercise prudent financial management and remained focused on achieving Lakeland’s mission: to inspire lifelong learning and leadership through experience, excellence and innovation.

We remain focused on our strategic goals outlined in Vision 2030 – learner success, relevant programming and research, connectivity and sustainability – to ensure our students, our region and industry continue to benefit from the highest quality programming, leadership and research opportunities. We embrace our role in supporting our communities and rural sustainability.

Our 2019-20 Annual Report shares how we fulfilled our mandate as a Comprehensive Community College under the authority of the Post-Secondary Learning Act (approved by the Minister of Advanced Education on June 24, 2015). This report also illustrates how Lakeland strategically aligns with Alberta Advanced Education’s adult learning system principles.

On behalf of the Board of Governors and my colleagues, I proudly present Lakeland College’s annual report for the year ended June 30, 2020.

[Original signed by Dr. Alice Wainwright-Stewart] President and CEO Lakeland College Annual Report | 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 College under the authority of the PSLA.

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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 postsecondary 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, Advanced Education June 24, 2015

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OPERATIONAL OVERVIEW Lakeland College is a hub for innovation, supportive student services and academic excellence. With high quality, industry-relevant, affordable and accessible post-secondary education opportunities, Lakeland is focused on how best to serve its students, the region and the province.

Programming areas at Lakeland include agricultural sciences, business, energy, environmental sciences, fire and emergency services, foundational learning, health and wellness, human services, interior design technology, trades and technology, and university transfer.

Prior to the 2019-20 fiscal year, enrolment at Lakeland had increased from 2,073 full load equivalents (FLE) in 2016-17 to 2,146 FLE in 2018-19 (3.5 per cent). Despite this modest increase, there had been significant growth in the number of Indigenous students, from 216 to 239 (10.7 per cent), and more than a doubling of international students, from 112 to 248 (121 per cent). Enrolment was expected to increase in 2019-20 as well, but the response to the global pandemic in March resulted in a net decrease of 114 FLE students to 2,032 FLE for 2019-20.

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Economic Overview Although it appeared that the Alberta economy was poised for a recovery, because of the response to the global pandemic, and the deliberate actions by certain countries to over supply the oil market, Alberta has suffered a severe economic recession. The full impact has yet to be felt. For the few years leading up to the spring of 2020, crude oil prices had hovered around the mid-$50 range. Prices dropped to less than $25 per barrel in April 2020 and had only recovered to about $43 at the end of June 2020. This is not enough to maintain modest growth in the oil sector. Additionally, with uncertainty regarding access to markets via pipelines, Alberta’s economy may not recover for quite some time.

Given the significant deficit faced by the Government of Alberta due to plunging oil prices, lost income taxes and increased expenses to support those individuals and businesses suffering financially from the impacts of COVID-19, the provincial government’s future capacity to fund post-secondary education may be significantly compromised. The economic impacts and the massive increase in public debt around the world due to the response to COVID-19 will have a lasting effect.

Before the global pandemic, the Alberta government had intended to balance its operating budget within four years. The effect of this intention was already quite significant for the post-secondary sector. In the fall of 2019, Lakeland’s operating grant was cut by 7.2 per cent and then it was cut by a further 2.3 per cent in the spring of 2020. The result was a $3.5 million reduction in actual operating grant funding versus the amount budgeted. The Infrastructure Maintenance Program (IMP) grant was eliminated entirely for the Government of Alberta’s fiscal year ended March 31, 2020. The IMP typically provided about $2.1 million. This grant was, however, reinstated for the 2021 fiscal year. Lakeland was in a relatively healthy financial situation, and reasonable strategies to reduce expenditures were considered. In-year reductions to discretionary expenses such as travel, professional development and hosting were made. In January 2020 the Government of Alberta announced a major change to the post-secondary funding framework. Expenditure, enrolment and graduate outcome targets were established for the next three fiscal years, and the operating grant was dependent on the achievement of these targets. To meet the expenditure target for 2021 Lakeland reduced its budget (for 2020-21) by $12 million. In order to accomplish this, 46 staff positions were eliminated, either through early retirement or abolishment. Although this would not affect the 2019-20 fiscal year, severance costs of almost $2 million were paid prior to the year end. Lakeland also suspended intakes into five programs to adjust to the reduced Campus Alberta Grant. The suspended programs include three apprenticeship programs and two certificate programs: Gasfitter-Class A, steamfitter-pipefitter, instrumentation and control technician, pre-employment instrumentation and control technician, and street rod technologies.

The financial effect of the response to COVID-19 on Lakeland for the 2019-20 fiscal year was estimated to be a loss of approximately $1.7 million. Although most programs were able to complete obligations to students via online learning, the college cancelled its intake for apprenticeship programs, resulting in a net loss of $100,000. On-campus training offered by the Emergency Training Centre was cancelled, resulting in a net loss of $905,000. Students were refunded rent for the months of March and April, resulting in a loss of residence revenue of approximately $400,000. The grant reduction of $3.5 million, the severance costs of $2 million and the $1.7 million loss due to the response to the pandemic resulted in a total negative variance of $7.2 million and a deficit of $671,000 compared to last year’s surplus of $7.2 million.

The Government of Alberta indicated that it will not enforce its expenditure reduction targets for the 2020-21 fiscal year. However, given the dismal economic outlook for the province and the uncertainty regarding future responses to COVID-19, Lakeland must remain very prudent with future budgets. Although restraints on increases to tuition and other student fees have been relaxed, enrolments may be negatively impacted for several years.

Because of its fiscal situation, the provincial government has mandated a zero per cent increase to wages and benefits for postsecondary institutions. Nevertheless, if settlements cannot be negotiated, arbitrators make the final decision, and increases are possible regardless of the government mandate.

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Capital Investment Lakeland needs to invest heavily in the revitalization of its infrastructure – the investment needed is estimated to be $150 million.

Lakeland is building a Strategic Investment Fund in order to address this critical need. Lakeland allocated $9 million to its Strategic Investment Fund for the year ended June 30, 2018, and another $5 million for the 2019 fiscal year. However, due to the operating deficit, it was not able to allocate funds for the 2020 fiscal year, and internally restricted assets at June 30, 2020 are only $16.4 million.

More funding is needed to invest in capital projects; therefore, Lakeland will need to generate future surpluses and also receive funding support from the provincial and/or federal governments. Fortunately, Lakeland received a grant of $17.3 million in July 2020 from the Government of Alberta for a major renovation to its WHT Mead Animal Science Centre at the Vermilion campus.

Risk Management The biggest risk facing Lakeland is its dependence on funding from the Government of Alberta (57 per cent of revenue) and ongoing regulation of tuition fees (23 per cent of revenue). The government restricts growth in grants, and sometimes reduces them quite significantly and it also frequently limits tuition fee increases. Changes in governments and/or government policy can also significantly affect college operations – major reductions to grants have occurred and are likely to be announced for the current and future years.

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 college is currently documenting its risk and control matrix. Recommendations may require increased investment in control functions, including cyber security and internal audit. Increased government attention will also require more time and resources to address information and reporting requests.

The chief financial officer developed an internal audit framework and worked with chief internal auditors in the sector to prepare a proposal for a collaborative alliance to provide internal audit services across the sector. Lakeland continued to provide chief financial officer consulting services to Portage College through an 85-15 shared services arrangement.

Lakeland’s risk and compliance coordinator developed and presented a number of FOIP information/education sessions to key staff groups, including leadership team, administration, Student Services and the Board of Governors. A number of policies and procedures were updated and are in the process of review and approval.

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GOALS, PRIORITY INITIATIVES, EXPECTED OUTCOMES AND PERFORMANCE MEASURES In the 2019-22 Comprehensive Institutional Plan, Lakeland outlined how its key institutional outcomes directly align with Alberta Advanced Education’s (AE) five adult learning system principles.

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Accessibility • Maximize enrolment opportunities • Build learner pathways and enhance foundational learning programs • Build capacity in inter-cultural understanding and diversity • Expand educational activities within the Lakeland region • Foster a healthy and safe campus and community

Affordability • Increase sustainable resources and support students through external partnerships • Explore more affordable learning resource opportunities

Quality • Increase student-led learning • Ensure programs are of the highest quality and align with labour market needs • Empower staff to excel • Provide a modern learning environment

Accountability • Ensure full compliance with all relevant legislation • Ensure full compliance with financial reporting standards • Ensure full compliance with government submission and reporting guidelines

Coordination • Explore coordination opportunities within Alberta’s post-secondary system • Continue collaboration with regional school divisions

Lakeland’s Institutional Ends (Outcomes): • Learner Success: Lakeland will optimize learner success.

• Relevant Programming and Research: Lakeland, in conjunction with post-secondary partners, will strategically provide programming that meets student, government and industry expectations.

• Connectivity: Lakeland will be connected to its multiple stakeholders.

• Sustainability: Lakeland will achieve sustainable operations.

In the following pages, Lakeland reports on the progress made towards these outcomes.

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ACCESSIBILITY: AE Adult Learning Principle Every Albertan should have the same opportunity to get a post-secondary education.

Lakeland’s Institutional Ends (Outcomes) and AE Alignment: • Learner Success

• Relevant Programming and Research

At Lakeland College, students are provided equal access to a supportive, safe and welcoming learning community.

There are five goals outlined with accompanying priority initiatives for 2019-20.

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Priority Initiative

Expected Outcomes

Performance Measure

Maximize Enrolment Opportunities

Review current enrolment processes to improve conversion rates

Increase in recruitment and conversion rates by one per cent annually

Build Learner Pathways and Enhance Foundational Learning Programs

Establish a baseline of transfer agreements

Increase academic upgrading and foundational learning opportunities for learners seeking post-secondary access

Goals

Status

Progress Made in Last 12 months

Increase total number of students enrolled

Ongoing

In 2019-20, enrolment totaled 2,032 FLEs, which is 114 FLEs fewer than the previous academic year. Enrolment for several programs, including emergency services technology and apprenticeship, were down as they could not be offered due to COVID-19. Recruitment and retention initiatives were executed to increase enrolment, including integrated marketing campaigns, post-secondary nights to supplement open house and information sessions, and hiring student enrolment assistants. The student enrolment assistants connected with accepted applicants earlier in the admissions cycle. As of June 2020, the withdrawal rate of accepted applicants was down five per cent from the same time the previous year. The college deferred tuition fee deadlines due to COVID-19. The student journey map communications plan was updated.

Identification of current transfer agreements

Identify total number of transfer agreements

Ongoing

Student Services identified the total number of transfer agreements (173) and created a spreadsheet for future reference.

Students have access to foundational learning programs

Increase total number of students who access foundational learning programs

Ongoing

During the academic year, 88 unique students enrolled in foundational learning programs, including employment skills enhancement, adult basic education, essential skills for the workplace (ABE ESWP), heavy oil and gas, adult 12 ,and retail and reception host. Grade 4-11 academic upgrading was also offered through Northern Lakes College.

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Goals Build Capacity in Inter-Cultural Understanding and Diversity

Priority Initiative

Expected Outcomes

Performance Measure

Increase opportunities that support the Truth and Reconciliation of Canada’s Calls to Action

Implementation of the Indigenous strategy

Increase total headcount of Indigenous learners

Status

Progress Made in Last 12 months

Ongoing

In 2019-20, Lakeland’s Indigenous (self-identified) unique students total was 229 – a decrease from 237 the previous year. Recruitment efforts focused on events at schools in Indigenous communities.

Lakeland collaboratively offers the Aboriginal teacher education program (ATEP) with the University of Alberta (UAlberta). The college hosted coordinators from UAlberta, as well as held information sessions. In 2019-20, 28 students at Lakeland were working towards earning the required 60 credits to apply to ATEP.

Lakeland offered the Transition Program for Indigenous Students (TPIS) 101 in 2019-20 and 11 students enrolled.

A draft strategic plan for Indigenous Support Services was completed, featuring three pillars: student support, programming and cultural awareness.

In 2019-20, Lakeland’s Indigenous Support Services organized the following events and activities: Elder in Residence program, teepee raising, Missing and Murdered Indigenous Women Walk, Orange Shirt Day, pipe ceremonies, Reconciliation Speaker Series and Indigenous Awareness Day activities. The Land Based Learning Symposium scheduled for May was cancelled due to COVID-19.

Lakeland’s manager of Indigenous Support Services worked closely with the Indigenous Student Committee, native studies instructor, ATEP cohorts and foundational learning coordinator to support students’ needs. The manager also attended recruitment events at nine schools and worked with the School of Trades and Technology to support Exposure Camps for First Nations within the region. Working with student volunteers, Indigenous Support Services held monthly College Collective Kitchens, serving more than 800 meals and supporting over 750 students.

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Goals Expand Educational Activities within the Lakeland Region

Priority Initiative

Expected Outcomes

Performance Measure

Expand regional learning opportunities

Flexible and learner-centred program delivery models throughout the region

Increase total number of flexible program offerings

Status

Progress Made in Last 12 months

Ongoing

In February, Lakeland announced a blended delivery model for 2nd Class power engineering that would start in fall 2020. The business computer applications course (CU248) was piloted online. Accounting technician did not run in Wainwright, Alta., due to low enrolment.

Due to COVID-19, programs transitioned to online delivery. A blended model is expected for fall 2020.

Increase in student Increase in total enrolment from regional across Lakeland’s headcount region

Ongoing

Traditional and digital media campaigns were completed in the region. A series of webinars were held in June to promote the blended delivery model for fall 2020. Senior leadership continued to meet with mayors, principals and superintendents to tell the Lakeland story.

The regional headcount in 2019-20 was 1,451, compared to 1,668 the previous year.

Foster a Healthy and Safe Campus and Community

Increase awareness of sexual violence

Creation of a cross-functional team to promote zero tolerance for any form of sexual violence and the establishment of a safe and respectful college environment

Identify required support areas by cross-functional team

Ongoing

The existing Campus Wellness and Mental Health committee was expanded to focus on sexual violence awareness and establishing a safe and respectful college. The committee met twice.

Review of Lakeland’s sexual violence policy and procedures

Complete review by 2019

Completed

Lakeland’s sexual violence policy and procedures were reviewed and are adequate for campus needs. A violence risk assessment was also completed for both campuses.

Staff and student training program

Increase in number of staff and students trained

Ongoing

The Respect in the Workplace program was rolled out – 241 employees completed the training.

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AFFORDABILITY: AE Adult Learning Principle Every Albertan should have the same opportunity to get a postsecondary education.

Lakeland’s Institutional Ends (Outcomes) and AE Alignment: • Learner Success

• Sustainability

• Connectivity At Lakeland College, students from all socioeconomic strata are welcomed, accepted and supported in their quest for learning.

There are two goals outlined with accompanying priority initiatives for 2019-20.

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Goals Increase Sustainable Resources and Support Students through External Partnerships

Priority Initiative

Expected Outcomes

Performance Measure

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

Increase total number of student recipients

Increase in number of underrepresented learners receiving

Increase total number of underrepresented learner recipients

Status

Progress Made in Last 12 months

Ongoing

In 2019-20, Lakeland had 1,048 student awards program recipients at a value of $1,352,534 (includes scholarships paid by third parties). In 2018-19, there were 1,686 recipients at a value of $1,585,305. The decrease in overall awards, scholarships and bursaries awarded is due in large part to the Saskatchewan government’s restructuring of a provincial scholarship program, which removed post-secondary institutions from the administrative role.

Lakeland increased the number of Indigenous students recognized. As well, the college’s ability to assist students in high-cost programs has increased.

scholarships and bursaries Explore More Affordable Learning Resource Opportunities

Create a crossfunctional team to review current open learning resources availability

Lowered textbook expenses Increased open learning resource opportunities

Increased affordability of learning resources based on recommendations by cross-functional team

Delayed

A cross-functional team was not created; however, it has been an item discussed by the chairs council. Preliminary work was completed but nothing formal.

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QUALITY: AE Adult Learning Principle Albertans should get the best possible education here at home.

Lakeland’s Institutional Ends (Outcomes) and AE Alignment: • Learner Success

• Connectivity

• Relevant Programming and Research

• Sustainability

At Lakeland College, students have access to the highest quality of educational programming and services. There are four goals outlined with accompanying priority initiatives for 2019-20.

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Goals Increase StudentLed Learning

Priority Initiative

Expected Outcomes

Performance Measure

Increase experiential learning opportunities

Learner increase in discipline-specific and employability skills

Ensure at least 85 Ongoing per cent of students are confident they have the necessary skills to take into the workplace

Status

Progress Made in Last 12 months

According to the 2019-20 About to Graduate Survey, 98.28 per cent of students are confident they have the necessary skills to take into the workplace.

All deans reviewed course outlines to ensure they were up-to-date and included employable skills and experiential learning opportunities.

In 2019-20, Lakeland developed the studentmanaged farm equine model that will be offered in fall 2020 for second-year students in the animal science technology equine science major.

Lakeland also continued work on developing its student-managed ranch, which will feature bison thanks to a major donation from Armin and Rita Mueller that was announced in 2019-20.

The Emergency Training Centre worked with faculty to reexamine their existing “students in the lead� model and developed an enhanced version that gives more responsibilities and authority to students within class platoons.

Lakeland and Ridgeline Canada announced a partnership in May that will bring work-integrated environmental training programs and college credits to Indigenous students.

Ensure Programs are of the Highest Quality and Align with Labour Market Needs

Continue program evaluation process to ensure continuous improvement and industry relevancy

Continuation of program evaluation cycle and summative reviews

Ensure an up-todate summative cycle Identify actions taken from program reviews (when applicable)

Completed

Academic Advisory committees were scrutinized this year to ensure that the committees consist of engaged industry members with a strong commitment to the program and the academic school.

Consult industry within each academic advisory committee

Up-to-date advisory committees that meet annually

Ensure all advisory committees meet annually

Ongoing

Many program advisory committee meetings were held virtually in May and June 2020.

Increase student access to workintegrated learning experiences

Student graduates with job-ready skills

Exceed graduate employment rate of 85 per cent

Completed

Result: 95 per cent (Outcome Survey for the Publicly Funded Post-Secondary Institutions)

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Goals

Priority Initiative

Expected Outcomes

Performance Measure

Empower Staff to Excel

Foster a culture of engagement

Higher-performing employees who positively impact student success

Increase Completed engagement survey score by 10 per cent at the end of three years

Reflecting on the economic and environmental pressures of 2019-2020, the ability for Lakeland to maintain its engagement score year-over-year has been considered a success. The college’s mean engagement score for 2020 was 3.95 out of 5. The college continues to use the Gallup 12 engagement survey and witnessed a participation rate of 70 per cent.

Maintain Completed employee turnover rate at less than five per cent

The college’s voluntary turnover rate for 20192020 was 2.1 per cent and our five-year average is 3.5 per cent.

Decrease WCB incidence rate

Injuries that result in WCB claims remained higher than hoped for, with two lost time injuries in

Support a safe environment for working and learning together

Provide a Modern Update existing Learning academic space Environment

Safe working and learning environment

Enhanced experiential learning labs

Status

Completed

Progress Made in Last 12 months

2019-2020. It is a 50 per cent reduction from the previous year. The college has seen an increase in safety awareness and reporting but the lost time injury rate remained flat. Trends related to seasonal changes in weather and an aging workforce continue to be risks to this goal.

Fully implement the college’s safety management program

Completed

The college implemented all required components for an OH&S compliant safety program. Much of this program is employeeled through our safety committees on both campuses, which meet monthly. Some activities include moving new employee and supervisor orientation training online, and a workplace harassment and violence hazard assessment to improve campus safety.

Continue to develop the modern learning environment plan

Ongoing

In 2019-20, Lakeland completed Phase 1 of the Vermilion Campus Revitalization plan.

Renovations were completed in Alumni Hall’s Student Services and Learning Commons Information Technology areas. These renovations created student-centred spaces, improved service and business efficiency, and prioritized energy efficiency. The four enhanced environmental and agricultural sciences labs in Academic Link at the Vermilion campus opened at the beginning of the winter 2020 semester.

Building plans for the WHT Mead Animal Science Centre were completed. Work progressed on the student-managed lab revitalization, including the renovation of the Centre for Ag Technology.

Penning and pasture updates were completed, as well as biosecurity controls. Infrastructure work included access roads, entrances and road improvements.

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ACCOUNTABILITY: AE Adult Learning Principle Post-secondary education providers must be accountable to students, the government and Albertans.

Lakeland’s Institutional Ends (Outcomes) and AE Alignment: • Connectivity

• Sustainability

At Lakeland College, collaboration, transparency, communication and solid systems of controls ensure consistent and responsible use of resources. There are three goals outlined with accompanying priority initiatives for 2019-20.

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Priority Initiative

Expected Outcomes

Performance Measure

Ensure Full Compliance with all Relevant Legislation

Establish a risk management framework

Anticipation, migration and prevention of possible risks

Ensure Full Compliance with Financial Reporting Standards

Maintain list of all financial reporting primary requirements

Ensure Full Compliance with Government Submission and Reporting Guidelines

Ensure proper planning in financial framework

Goals

26 | Lakeland College 2019-20

Status

Progress Made in Last 12 months

Update risk inventory and risk mitigation measures

Completed

The Enterprise Risk Management inventory was updated in November 2019 and again in February/March 2020. The Enterprise Risk Management Report and risk inventory was provided to the Audit, Risk and Sustainability Committee at its June 24, 2020 meeting.

Adherence to reporting standards and deadlines

Report required information on time

Completed

Finance maintains the list of all financial reporting requirements and updates this monthly.

Adherence to deadlines

Ensure a clean audit

Completed

Lakeland had a successful year end. It was a clean audit for 2019-20. We have not yet received the score card for the fiscal year 2019-20.

COORDINATION: AE Adult Learning Principle Albertans should get full advantage from a diverse post-secondary system.

Lakeland’s Institutional Ends (Outcomes) and AE Alignment: • Relevant Programming and Research

• Connectivity

At Lakeland College, coordination with other post-secondary institutions ensures streamlined administrative systems as well as comprehensive and diverse program offerings for learners. There are two goals outlined with accompanying priority initiatives for 2019-20.

Annual Report | 27

Goals Explore Coordination Opportunities within Alberta’s Post-Secondary System

Priority Initiative

Expected Outcomes

Performance Measure

Increase collaboration with Campus Alberta

Collaboration of information technology department with NAIT and NorQuest on cyber security opportunities

Increase number of postsecondary partnerships

28 | Lakeland College 2019-20

Status

Progress Made in Last 12 months

Ongoing

Lakeland had a CISO under contract with our ShareIT partners that expired end of March 2020.

From this work, we created a full-time position ITSO (IT Security Officer) so the cyber security was inhouse. Lakeland is collaborating with NAIT on the college’s cloud transformation, which is part of IT’s five-year roadmap.

Collaboration with Northern Lakes College on upgrading and LPN programming

Lakeland continued to collaborate with Northern Lakes on academic upgrading programs and licensed practice nurse.

Internal audit

The internal control framework collaboration

collaboration with northern Colleges (Grande Prairie Regional College, Keyano College, Portage College, Northern Lakes College)

was initiated. Lakeland is currently working with Portage College and Olds College on building a risk and control matrix for each college. An internal auditor with the University of Alberta is providing the necessary expertise. Other colleges are interested in participating.

Collaboration with Athabasca University on degree completion

Lakeland continues to collaborate with Athabasca University (AU) on degree completion pathways for its business administration diploma program and university transfer (UT) program. Twelve new degree pathways were added to Lakeland’s existing AU agreement for UT, which were available in fall 2019.

Goals Continue Collaboration with Regional School Divisions

Priority Initiative

Expected Outcomes

Performance Measure

Continue collaboration with regional high school divisions

Continued dual credit offerings

Maintain number of dual credit offerings

Status

Progress Made in Last 12 months

Ongoing

Dual credit automotive service technician was newly offered in 2019-20 due to high interest. In 2019-20: • 11 students attended dual credit automotive service technician • Seven students attended dual credit carpentry In 2019-20, 215 additional students completed the following dual credit courses: • Play (38 students) • Health, nutrition and safety (7 students) • Introduction to esthetics (17 students) • Introduction to heavy oil and gas (77 students) • Environmental sustainability (23 students) • Introduction to soil science (nine students) • Health care aide (39 students) • Basic energy principles (five students - new course offered in 2019-2020) Twelve school divisions and 43 schools participated.

Continued CTS programming

Maintain number of CTS offerings

Ongoing

In 2019-20, Lakeland offered welding, automotive, electrical, carpentry and interior design technology in career and technology studies (CTS): • Buffalo Trail School Division: 104 attended training, 32 students were unable to attend due to COVID-19 (intake suspended in March) • East Central School Division: 95 seats were booked for three weeks in June, however due to COVID-19, these were not delivered.

• Frog Lake First Nation: 21 seats were booked for May and June; however, this was suspended dur to COViD-19.

In total, the School of Trades and Technology scheduled 252 CTS seat in 2019-20.

Lakeland also offered esthetician and hairstyling CTS courses, welcoming students from Buffalo Trail Public Schools and Frog Lake Education Authority to the programs: • Nine students participated in CTS esthetician • 11 students participated in CTS hairstyling

Annual Report | 29

ENROLMENT PLAN AND PROGRAM CHANGES In the 2019-22 Comprehensive Institutional Plan, Lakeland projected 2,157 full-load equivalents (FLEs). The actual number of FLEs for the 2019-20 year was 2,032.416.

30 | Lakeland College 2019-20

Programming areas that surpassed FLE projections include agribusiness, American Sign Language and Deaf culture studies, animal science technology, bachelor of applied business: emergency services, early learning and child care, hairstyling, and university transfer. While the western ranch and cow horse program was suspended, the restructured animal science technology program offers an equine science major that saw strong enrolment. Lakeland’s awardwinning reputation for agricultural sciences programming, the student-managed farm and successful alumni also help boost enrolment. Targeted marketing campaigns supported increased enrolment for other programs as well.

Lakeland projected 25 per cent of total enrolments in business administration as international students, the actual percentage was 43.02 in 2019-20. Strong international recruitment efforts helped increase growth in business administration.

Due to the COVID-19 pandemic, the spring 2020 intake of the emergency services technology program was postponed until 2021. The blended and on-site intakes for the firefighter training program were delayed until summer 2020 and required COVID-19 protocols, which impacted enrolment.

To best protect students and staff from COVID-19, apprenticeship intakes originally scheduled between March and June were cancelled, which impacted enrolment numbers.

Industry demand and the regional economic downturn connected to energy affected enrolment in power engineering and environmental sciences programs.

To address budgetary challenges, Lakeland announced suspension of intakes to three apprenticeship programs and two certificate programs: Gasfitter-Class A, steamfitterpipefitter, instrumentation and control technician, preemployment instrumentation and control technician, and street rod technologies. No new students will be accepted to these programs in September 2020.

Annual Report | 31

2019-20 Full-load Equivalent (FLE) Enrolment by Program Lakeland FLEs totaled 2,032.416, which is fewer than projected in the 2019-22 CIP.

Program

FLE Projection in CIP

Actual

Apprenticeship

200

126.872

2nd Class power engineering (new)

12

7.864

Accounting technician

10

6.9

Administrative professional

10

7.189

Animal Assisted Wellness

N/A

4

American Sign Language & Deaf Culture studies

16

28.1

Business administration

10

15.5

Community mental health

8

10.6

Early learning and child care

95

82.25

Educational assistant

50

47.455

Esthetician

14

16.5

Firefighter certificate of achievement

36

16.081

General agriculture

15

2.8

Hairstyling

20

27.7

Health care aide

30

20.244

Heavy oil operations technician

10

4.25

Power engineering (4th Class and gas process operator)

10

6.448

Pre-employment

20

20.636

Renewable energy and conservation

6

14

Street rod technologies

12

11

Veterinary medical assistant

26

24.545

Western ranch and cow horse

0

Suspended

Agribusiness

84

92.7

Animal health technology

140

123

Animal science technology

140

159.2

Business administration

236

233.583

Child and youth care

64

71.475

Crop technology

100

112.4

Early learning and child care

44

57.75

Emergency services technology

75.6

41.097

Environmental sciences

140

122.003

Heavy oil power engineering

150

116.597

Interior design technology

32

40.814

Renewable energy and conservation

5

2.73

Sign language interpretation

8

2

Bachelor of applied business: emergency services

36

48.683

Bachelor of applied science: environmental management

36

27.157

University Studies

215

240.3

Employment skills enhancement

16

18.866

Open studies

20

21.127

Total

2,151.6

2,032.416

International business diploma enrolment (per cent)

25

43.02

Certificate

Diploma

Applied Degree

Other Non-Credential

Petroleum Management was included in the enrolment chart in the 2019-20 CIP. Because the program's enrolment isn't included in the FLE count, it has been removed from this chart.

32 | Lakeland College 2019-20

Total FLEs 2,140.867 2,145.817 2,032.416

2017-18 2018-19 2019-20

Credit unique students Full-time

Part-time

Total 1,604

2017-18

1,659

2018-19

1,657 1,641

2019-20

2,086

3,690

1,973

3,632

3,298

Program completions 1,220 1,240 1,045

2017-18 2018-19 2019-20

Indigenous student enrolment (self-identified) FLEs

Unique students

2017-18

161.133 233

2018-19

146.824 237

2019-20

144.53 229

International student enrolment FLEs 2017-18

Unique students 135.224 179

2018-19

248.21 300

2019-20

236.528 281

Annual Report | 33

Program Changes Lakeland’s program development reflects student and labour market needs, and provides diverse programming options to Campus Alberta.

In the 2019-22 Comprehensive Institutional Plan (CIP), Lakeland identified potential new programs. The following is an update on the programs included in the CIP.

Program Proposal

CIP Overview

Outcome

Expansion to university transfer (UT) course offerings

• New first- and second-year UT courses to expand transfer options (technology, health and science) • Mostly full-time and on-campus • 2019-20 academic year

The UT program expanded its course offerings to include: • TPIS 100.3 – transition program for Indigenous students (will be offered in 2020-21) • TPIS 101.6 – full-year course (ran in 2019-20 and will again in 2020-21) • EXL 100.3 – one semester course, similar to TPIS, but focuses on academics, career planning and community involvement (to be offered in 2020-21) • NS 171.6 – introductory Cree (to be offered in 2020-21) • PAC 100.3 – applied resistance and training (to be offered in 2021) • ENG 224.3 – Indigenous story telling (to offered in 2020-21)

Animal science technology

• Full revamp of the animal science technology (AST) diploma program that will introduce four new majors: beef science, dairy science, livestock science and equine science.

• Full-time, on-campus • 2019-20 academic year

In March 2019, Lakeland announced the restructured AST diploma program and it was offered in fall 2019. Since the AST diploma program includes an equine science major, Lakeland suspended the one-year western ranch and cow horse certificate program.

Bachelor of Applied Science: Commercial Ag Technology

• Applied degree focusing on commercial agricultural production and the application of emerging agricultural technology at the commercial scale • Full-time, on-campus, blended options • 2020-21 academic year

Lakeland submitted the degree proposal and completed an institutional self-study for Campus Alberta Quality Council (CAQC) to review. The CAQC completed a site visit in December 2019 and provided recommendations and conditions, which Lakeland accepted and responded to. The proposed program is with the CAQC for final approval. Pending approval, Lakeland plans to offer the program in September 2021. The program has been renamed: Bachelor of Agriculture Technology

Information Technology and Cyber Security

• Two-year diploma in information technology • Full-time, on-campus • 2020-21 academic year

An application for funding for this program was completed, however it was not approved.

Clinical Esthetician

• One-year certificate program in esthetician training • Full-time, on-campus • 2020-21 academic year

Announced in March 2020, the clinical esthetician program launched in fall 2020. It shares the same curriculum as Lakeland’s esthetician program, with a third semester of advanced courses focused on clinical procedures.

34 | Lakeland College 2019-20

The 2019-22 CIP also proposed changes to existing programs as well as program expansions. The following is an update on the programs identified in the CIP.

Program Proposal

CIP Overview

Outcome

School of Agricultural Sciences

Accommodate ongoing growth, particularly in crop technology, animal science technology and agribusiness diplomas

Class and lab sizes were re-evaluated to accommodate growth, while also ensuring quality instruction.

School of Human Services

Accommodate growth in online enrolment

Human services’ full-time academic advisor helped support growth in online enrolment. In 2018-19, 145 courses were offered online and in 2019-20 134 courses were offered online, however 9.3 per cent more students were enrolled in courses in 2019-20.

School of Business

Introduce an online option for real estate appraisal and assessment (REAA) as well as for other business programming

In March 2020, all business programs transitioned to online delivery due to the COVID-19 pandemic, including REAA. In 2020-21, online delivery will continue.

Annual Report | 35

UNDERREPRESENTED LEARNERS, REGIONAL STEWARDSHIP AND FOUNDATIONAL LEARNING Underrepresented Learners Lakeland provides student support services that are timely and accessible.

Services are provided through The Commons – a teaching and learning department – for underrepresented students and disadvantaged learner groups including, but not limited to, students with disabilities, Indigenous students, LGBTQ2+ students and students from low-income backgrounds.

Lakeland also supports students transition to college from rural communities.

Lakeland focused on the following activities to support students in 2019-20: • Exam accommodations and tutors: 1,345 students received exam accommodations and 356 tutors were matched with students in 2019-20.

• Accessibility services: 218 students were registered for these services in 2019-20 • Learner success workshops, which focused on study skills, test-taking, time management and strategies for success, were delivered in the winter semester to students who were either on academic probation or had a GPA lower than 2.0.

• Preparatory courses, including avoiding procrastination, developing higher thinking skills and effective organizational habits, were accessible through a massive open online course at no charge.

During the academic year, Lakeland’s learner success strategist had approximately 400 student appointments, taught 107 classes and had 37 individual faculty meetings around student success.

36 | Lakeland College 2019-20

Annual Report | 37

Indigenous Learners Located in the heart of Treaty 6 Territory, Lakeland recognizes the critical importance of acknowledging Indigenous peoples’ values and beliefs. The college provides pathways for Indigenous students, as well as on-campus supports and programs, and supports Truth and Reconciliation initiatives with community partners.

In 2019-20, Lakeland’s manager of Indigenous Support Services worked with the college’s Indigenous Student Committee, as well as organized the following events and activities: • The Elder in Residence program ran monthly at the Vermilion and Lloydminster campuses. This initiative supports and educates students and staff on Indigenous spirituality, worldview and culture.

• A Métis beading workshop was held, in partnership with the Métis Nation of Alberta Region 2.

• The annual teepee raising event was held at the Lloydminster campus. It was attended by several community partners, including the two local school divisions, Lloydminster Sexual Assault Centre and Big Brothers Big Sisters, in addition to community members, and Lakeland staff and students.

• Indigenous Awareness Day activities were held at the Lloydminster campus. The event was cancelled at the Vermilion campus due to COVID-19.

• Orange Shirt Day was recognized at each campus with the help of the Indigenous Student Committee.

• Pipe ceremonies were held at each campus to welcome the new year.

• National Story Telling month was celebrated with author and Elder Walter Bonaise.

• A Reconciliation Speakers Series was held, as well as a Missing and Murdered Indigenous Women Walk.

• Monthly soup and bannock were served, and the monthly College Collective Kitchen that is supported by student volunteers served more than 800 meals and supported over 750 students.

The Land Based Learning Symposium scheduled for May was cancelled due to COVID-19.

Lakeland’s manager of Indigenous Support Services also worked closely with the native studies instructor, the Aboriginal Teacher Education Program (ATEP) cohorts and the foundational learning coordinator to support their students’ needs. They also continued work with the School of Trades and Technology and supported the Exposure Camps for First Nations within the region, and engaged with prospective learners. As well, they visited nine schools in northern Saskatchewan First Nations communities with Lakeland’s recruitment team.

A draft strategic plan for Indigenous Support Services was completed, featuring three pillars: student support, programming and cultural awareness.

Lakeland collaboratively offers ATEP with the University of Alberta (UAlberta). In 2019-20, 28 students at Lakeland were working towards earning the required 60 credits to apply to ATEP. The college hosted coordinators from UAlberta, as well as held information sessions.

Lakeland offered the Transition Program for Indigenous Students (TPIS) 101 in 2019-20 and 11 students enrolled.

Low-Income Learners Lakeland supported low-income students through many bursaries in 2019-20, including: • Support Our Student (SOS) Enhanced Bursary: 27 recipients totaling $100,000

• Lakeland Student Bursary Program: 185 recipients totaling $247,060 (includes SOS Bursary)

Lakeland also provided access to perishable food items, transportation and more to approximately 25 students with the SOS Bursary.

In 2019-20, Lakeland had 1,048 student awards program recipients at a value of $1,352,534 (includes third-party scholarships). In addition to Lakeland’s student awards program, the college maintains an extensive list of external bursary, award and scholarship opportunities on the website to share with students.

Lakeland also participated in the Great Canadian Giving Challenge in June to support the college’s student relief fund, which assisted students facing financial uncertainty due to COVID-19.

Regional Stewardship Lakeland is committed to rural sustainability and actively engages the community through regional stewardship. In 2019-20, 38 | Lakeland College 2019-20

Lakeland strove to be a community leader through several priority foundational learning, transitional programming and academic upgrading initiatives. During the academic year: • 14 students were enrolled in employment skills enhancement

• 13 in heavy oil and gas

• 10 in adult basic education essential skills for the workplace (ABE ESWP)

• 45 in adult 12 • Six in retail and reception host

Grade 4-11 academic upgrading was also offered through Northern Lakes College.

Lakeland continued to partner with Alberta school authorities to make a range of dual credit opportunities available to high school students. Lakeland’s School of Trades and Technology offered dual credit courses to: • Buffalo Trail School Division: 11 students took automotive service technician (new course offered in 2019-20) and four took carpentry.

• East Central Alberta Catholic School Division: three students took carpentry.

In 2019-20, 215 additional students completed the following dual credit courses: • Play (38 students)

• Introduction to soil science (nine students)

• Health, nutrition and safety (seven students)

• Health care aide (39 students)

• Introduction to esthetics (17 students)

• Basic energy principles (five students - new course offered in 2019-2020)

• Introduction to heavy oil and gas (77 students) • Environmental sustainability (23 students)

Twelve school divisions and 43 schools participated in these courses.

Lakeland continued to focus on community collaboration and work with Economic Development and Adult Learning in Wainwright, Alta., to offer programming. Due to low enrolment numbers though, the accounting technician program did not run in 2019-20.

Health care aide also did not run in Wainwright due to the changing curriculum.

The East Central Alberta Regional Innovation Network (ECARIN) envisions a vibrant, innovative and diverse business environment in the region that creates jobs, increases revenues and grows opportunities for local business to export to the global market.

Created through a partnership between Alberta Innovates, Startup Lloydminster and Lakeland, ECARIN exists to support innovative, technology and knowledge-based SMEs located in east central Alberta. The region represents a 35,000 km² area centralized around Vermilion. ECARIN achieves its goals through the provision of entrepreneurial and venture support services, and by building networks and connectivity in partnership with local community economic development stakeholders. ECARIN ensures that regional innovative entrepreneurs receive access to high quality support and services, and encourages them to sustain and grow their ventures to encourage regional innovation-based economic development.

In 2019-20, Lakeland continued to prioritize post-secondary collaboration and develop agreements with other post-secondary institutions to offer in-demand programming options and degree pathways. Lakeland partners with Northern Lakes College to deliver practical nurse, renewable energy and conservation, and academic upgrading.

Twelve new degree pathways were added to Lakeland’s existing Athabasca University agreement for the college’s university transfer program.

Lakeland’s block transfer agreement with the University of Saskatchewan’s Edwards School of Business came into effect in fall 2019.

The transfer agreement allows Lakeland students who’ve completed their business administration diploma the opportunity to continue their business education and have access to a degree.

When COVID-19 shut down in-person classes and derailed many practicums in spring 2020, Lakeland shared its virtual practicum simulations with Portage College’s early learning and child care students. This collaboration gave the students the opportunity to complete practicum hours virtually and continue their education.

Lakeland also continues to offer the University of Alberta’s Aboriginal Teacher Education Program at the Lloydminster campus.

In 2019-20, Lakeland’s business administration program was co-delivered at Cumberland College’s Tisdale, Sask., campus.

Each spring, Lakeland connects with Community Adult Learning Program (CALP) representatives to review programming and partnerships. This year though, the meeting did not take place due to COVID-19. Lakeland did attend two virtual provincial regional stewardship meetings as well as the Lloydminster Learning Council annual general meeting.

Lakeland Emergency Training Centre (ETC) is in communication with Vermilion CLASS. ETC shared the college’s continued support under their memorandum of understanding.

Annual Report | 39

MINISTRY INITIATIVES Sexual Violence Prevention Sexual violence prevention is a priority for Lakeland staff and students. Lakeland partners with the Lloydminster Sexual Assault Centre on initiatives annually, including sexual assault counselling, LGBTQ2+ inclusion and the “I Believe You” campaign.

The existing Campus Wellness and Mental Health committee was expanded to focus on sexual violence awareness and establishing a safe and respectful college. The committee met twice.

Lakeland’s sexual violence policy and procedures were reviewed and are adequate for campus needs. A violence risk assessment was also completed for both campuses.

Sexual violence training was also incorporated into the Rustlers Athletics student-athletes orientation.

Lakeland’s wellness advisor also ran a campaign in February – Consent: It’s as Simple as Tea – in addition to Workplace Violence Prevention Week.

40 | Lakeland College 2019-20

Student Mental Health With the college’s counselling and wellness team, Lakeland provides students with consistent access to physical and mental health supports. The counselling team works closely with Lakeland’s wellness advisor, health services coordinator and learner success strategist to provide a comprehensive approach to promote student mental health.

During the academic year, a number of initiatives were undertaken by Lakeland to support mental health: • Nine Lakeland staff were trained to facilitate Working Minds workshops, which trains everyone on mental health awareness, how to recognize mental health, and start the conversation. Train the Trainer sessions were also held for Inquiring Minds, which is delivered to students. Eighty-three employees participated in Working Mind sessions and 365 students participated in Inquiring Minds workshops. The Inquiring Minds training was embedded into the college’s new faculty orientation.

• Support animals are on campus on an ad hoc basis. A new policy was developed to provide direction for animal type, location and appropriate times of the year for animals to be available.

• In collaboration with Alberta Health Service, Bell Lets Talk Day activities were held.

• Safe Spaces Training was provided to faculty and staff.

• Coffee with a Cop was held with Constable Hagel and Victim Services. Forty students attended. An RCMP Vermilion campus tour was held as well.

• Anti-bullying resources were shared on Pink Shirt Day. • Lakeland collaborated with community partners to offer a workshop called "Creating Inclusive Environments for LGBTQ2+ Individuals and Families." Approximately 50 people attended.

• William Yapp, a Lakeland College student, and Tim Ira from NAIT provided two presentations on LGBTQ2+ students for staff, faculty and senior leadership in spring 2020. Approximately 50 people attended. This presentation was part of the initiative to ensure staff received awareness training prior to receiving a Safe Spaces sticker they could post on their office door/space.

• The college hosted Dr. James Makokis and Anthony Nelson on Indigenous Student Day (March 11). They are members of the Indigenous and LGBTQ2+ community, and provided workshops on both campuses. Students, staff, faculty and leadership, as well as local high school and community members attended. The presenters spent time with individuals and groups privately providing a 'master class.'

• Presentations were provided to faculty on personal wellness and mental health strategies.

• Mindfulness Based Stress Reduction and mindfulness Cognitive Therapy sessions were provided each semester by one of Lakeland’s counsellors, who is a certified mindfulness facilitator. They also provided a student/staff and community beginners mindfulness series (Thoughtless Thursdays), including a silent day retreat. Thirty people participated in these programs.

• A mental health service guide was created and shared with students. It serves as a pocket reference for self-assessment, complete with positive strategies to address mental health.

• After-hours counselling was initiated on both campuses.

• An additional staff member was trained and joined the Critical Incident Stress Debriefing group, which met once and is reviewing procedures and communication. Meetings were planed for the spring but cancelled due to COVID-19.

• Lakeland’s Lloydminster Mental Health Committee was discontinued and replaced with the Care and Advocacy Committee that one of Lakeland’s counsellors sits on. The committee is comprised of several stakeholders from Lloydminster that work in the area of mental health.

• A Wellness Fair was hosted, featuring Dr. Jody Carrington as the keynote speaker. Close to 100 students attended with an additional 50 Lakeland staff. Student awareness of additional mental health strategies and resources was central to the fair. One of Lakeland’s counselors also presented and spoke to transitioning from student life to a career pathway, as well as anxiety, grief, depression, addictions and relationships.

• Mental Health Week featured online sessions in May that covered various dimensions of wellness.

A cross-functional team was created to establish a campus-wide mental health policy. The committee met twice to create terms of reference, review the results of the National College Health Assessment Survey that was conducted earlier and set a path forward to use the health standards as a framework for Lakeland’s mental health strategy.

Annual Report | 41

APPLIED RESEARCH Lakeland’s tactical focus for applied research activity in 2019-20 was advancing real-world agricultural productivity and sustainability in key commercial crop and livestock sectors.

42 | Lakeland College 2019-20

Lakeland’s research projects strongly align with the Alberta Research and Innovation Framework 2030 targets for food and agriculture. Increasing crop and livestock yield, quality and productivity, while responsibly managing natural resources, is key to meeting the world’s growing food demands.

As part of Lakeland’s unique Student-Managed Farm - Powered by New Holland (SMF) learning model, over 200 animal science and crop technology students are exposed to and participate in crop, beef and dairy research activities annually.

The combination of $913,000 in research revenue thanks to grants and industry contracts, 40 active projects and 42 external partnerships equates to Lakeland’s ability to produce net research outcomes that sustainably enhance commercial agriculture in Alberta and Canada.

In 2019-20, Lakeland was named one of eight organizations that will advance national agriculture technology priorities thanks to new funding for the Canadian Agri-Food Automation and Intelligence Network (CAAIN). The Government of Canada’s Ministry of Innovation, Science and Economic Development announced an investment of $49.5 million through the Strategic Innovation Fund for CAAIN, a network comprised of academic, private sector and research institutions to accelerate the automation and digitization of Canada’s agricultural sector. Lakeland played a significant role in the development of the concept and proposal in partnership with the other collaborators.

Lakeland’s agronomic research received $150,000 in federal funding, which was used to purchase a specialized research crop plot combine to help build capacity and further serve the crop industry, as well as producers’ needs for enhanced agronomic research in the region. This was the second Applied Research Tools and Instruments Grant that Lakeland received in 2019 from the Natural Sciences and Engineering Research Council (NSERC) of Canada’s College and Community Innovation (CCI) program. In June 2019, Lakeland received $117,026 to purchase six SmartFeed-Pro systems for livestock research.

Lakeland was also allotted $900,000 in funding through the CCI- Innovation Enhancement Extend program for the college to support commercial agricultural research over a three-year period. The funding from NSERC will be matched by more than $900,000 from industry partners, for a total project investment of $1.8 million. An extension of a previous grant, the NSERC funding began April 1, 2020, and will run until March 31, 2023. With this funding, Lakeland will build on a strong foundation of crop and livestock research and industry partnerships.

With this NSERC funding, a crop research scientist with broadleaf expertise, a livestock research associate and two new research technologists will be hired. Applied research will focus on supporting commercial agriculture for major crops (wheat, canola, field pea, barley and oat) as well as commercial and purebred beef and dairy activities. The validation and implementation of agricultural technologies that will enhance regional productivity, efficiency and sustainability is another element of this research program.

Industry partners for this program include: Alberta Barley Commission, Alberta Canola Producers Commission, Alberta Pulse Growers Commission, Alberta Wheat Commission, Animal Inframetrics Inc, Anuvia Plant Nutrients, BASF Canada Inc, Canadian Angus Association, Canadian Charolais Association, Canola Council of Canada, Highland Feeders Ltd, Mosaic Company, Prairie Micro-Tech Inc, Pugh Farms, and SeCan Association.

Annual Report | 43

Crop research Lakeland’s crops applied research is focused on strategies that support increased crop productivity and quality that meets the longterm global food demand and balances responsible resource management.

In 2020, Lakeland conducted 41 trials on seven field sites with over 1,595 plots, nine crops and a significant diversity of projects.

Due to COVID-19 health and safety protocols, field schools were not held. Instead, a series of four videos were created to share project information with producers and industry. Lakeland research staff also participated in industry and commodity organization meetings and conferences disseminating current research data and information.

Project

Partners

Timeline

2020 Pulse Regional Variety Trials

Ag Call and Alberta Pulse Growers

April 1, 2018 – March 31, 2023

2020 Cereal Regional Variety Trials

Alberta Wheat Commission

May 1, 2020 – March 31, 2021

Calibration of Bin Drying

Alberta Innovates, Top Grade Ag

April 1, 2020 – March 31, 2021

Data collection and utilization of data for cropping decisions

Alberta Innovates, Metos

April 1, 2020 – March 31, 2021

Application of Hyperspectral Imaging for Crop Staging and Yield Prediction in Canola

Alberta Innovates, LandView Drones

April 1, 2020 – March 31, 2021

Field Scale Research Validation of Variable Rate Technology

Alberta Innovates

April 1, 2020 – March 31, 2022

Determining Field Pea Yield Response to Increasing Rates of P Fertilizer

Alberta Pulse Growers

April 1, 2019 – March 31, 2021

Managing malt genetics for feed end-use: increasing barley profitability by challenging traditional end-use boundaries (two trials)

Alberta Barley Commission, CAP, Syngenta

April 1, 2020 – March 31, 2021

Demonstration Small Plots

SeCan

April 1, 2020 – March 31, 2021

Adapting innovative solutions for increased barley profitability Alberta Barley Commission, Syngenta in Alberta: Expanding malt cultivar end-use

April 1, 2019 – March 31, 2021

Integrating Nitrogen Fertilizer Technologies

Agriculture and Agri-Foods Canada

April 1, 2020 – March 31, 2024

Product Demonstrations

Anuvia Plant Nutrients, The Mosaic Company

April 1, 2020 – March 31, 2021

Surveillance Networks for Beneficial Insects II: expanding surveillance of reservoir habitats and measuring their contributions to canola yield

University of Calgary (subcontract)

April 1, 2019 – March 31, 2023

Selecting crop sequences and developing a risk model to mitigate fusarium head blight (FHB) in Western Canadian cereal production

University of Manitoba (subcontract)

April 1, 2019 – March 31, 2021

2020 Canada AgXplore Canola and Wheat Systems Fertility Study

AgXplore

April 1, 2020 – March 31, 2021

Expanding and developing capacity as a provider of high-quality crop research that produces results of value to producers and the agriculture value chain is Lakeland’s goal. This is linked to Lakeland’s institutional academic goals and priorities and the learning system principles of quality and coordination.

Livestock research Lakeland’s livestock applied research is focused on feed efficiency and an array of livestock production and management activities.

As Lakeland develops and strengthens its current beef research capacity, the following areas of focus guide research priorities and are part of long-term strategies and goals for the college’s research program. Lakeland contributes to the sustainability, competitiveness and profitability of the beef industry through: • Enhanced Cow-calf Production Efficiency • Advanced Technologies that Improve Beef Production Efficiencies and ROI

44 | Lakeland College 2019-20

• Reduced Cow-calf Feed Costs (Improve Annual and Perennial Grain and Forage Production and Sustainability) • Using applied research to enhance and ensure the dissemination of knowledge throughout the industry

Lakeland also continues to build research of relevance to the dairy industry in its technologically advanced Dairy Learning Centre with projects that focus on animal health and welfare, energy and water efficiencies, and technologies that reduce labour and improve efficiencies. Research is conducted in collaboration with partners such as Alberta Milk, University of Calgary Faculty of Veterinary Medicine School, University of Alberta, Alberta Innovates and industry partners such as Solvet and One Cup AI. In 2019-20, 18 active livestock research projects were underway, including:

Project

Partners

Timeline

Evaluating Sire-Progeny Links, Breeding Plans and Information Management in Multi-Sire Breeding Scenarios on Commercial Herds

Canadian Agricultural Partnership, West Central Forage Association, Peace Country Beef and Forage Association, BIXSco, Quantum Gentix, Mayerthorpe Veterinary Services, Olds College, Alberta Agriculture and Forestry, Yellowhead County, Brazeau County, Lac Ste. Anne County

February 1, 2019 – February 1, 2022

On-Farm Validation of a Novel Biosensor Technology to Test for Hypocalcemia in Dairy Cows

Alberta Innovates, University of Calgary Faculty of Veterinary Medicine

April 1, 2020 – March 31, 2021

Evaluation of energy-use and water-use efficiency under the robot and parlor dairy systems

Alberta Innovates, Alberta Data Institute, Cybera

April 1, 2020 – March 31, 2021

Speckled Park RFI trials

Speckled Park Producers

December 10, 2019 – February 19, 2020

Feeding garlic powder to cattle: Effects on mineral intake, fly repellence and cattle performance

Government of Saskatchewan Ministry of Agriculture, Canadian Agricultural Partnership, NSERC, Highland Feeders, Masterfeeds, Prairie Micro Tech, Anchor Lazy U Cattle Co Ltd.

April 1, 2019 – March 31, 2021

Validation of imaging technology for assessing priority traits in Alberta Innovates, Canadian Angus Canadian Angus Association

April 1, 2020 – March 31, 2021

In December 2019, Lakeland held the Canadian Angus at Lakeland Technology & Information Field Day. Featuring industry experts from the Canadian Angus Association, GrowSafe, NeoGen, Datamars and Lakeland’s applied research team, as well as local producers, the event provided local producers and students with the latest industry news and research. The field day was held in the Centre for Ag Technology and G.N. Sweet Livestock Research Facility at the Vermilion campus.

Lakeland’s livestock production-efficiency research also received a makeover with upgrades to the existing GrowSafe® Feed Intake (GFI) technology and two four-position GrowSafe Beef (GSB) units. The new equipment and upgrades will improve Lakeland’s beef research activities and testing services for clients. They’ll also advance the training offered to students, enhance animal welfare and improve the overall efficiency of services provided to other research centres, breed associations and livestock producers.

Agriculture technology Lakeland supports research, innovation and education in on-farm technologies and digital enhancement of the Student-Managed Farm – Powered by New Holland. The college’s experience in crop, dairy, and beef research, unmanned aerial vehicle applications for agriculture, expertise in GIS and GPS, sensor systems, data-driven livestock research facilities and other precision technologies provides a solid foundation for the following projects, noted earlier in this section: • Application of Hyperspectral Imaging for Crop Staging and Yield Prediction in Canola

• On-farm Validation of a Novel Biosensor Technology to Test for Hypocalcemia in Dairy Cows

• Field Scale Research Validation of Variable Rate Technology • Calibration of Bin Drying

• Validation of Technology for Assessing Priority Traits in Canadian Angus

• Data Collection and Utilization of Data for Cropping Decisions

• Evaluation of Energy-use and Water-use Efficiency under the Robot and Parlour Dairy Systems

These projects support experiential learning for agricultural sciences students and align with future program development, including a degree in agriculture technology that is in development.

Annual Report | 45

INTERNATIONALIZATION Lakeland’s internationalization goals in 2019-20 focused on positively impacting the college’s operating budget, increasing the cultural diversity at Lakeland, providing increased cross-cultural awareness and education, and helping domestic students as well as staff and faculty to learn and work abroad.

In 2019-20, Lakeland recruited 281 international students from 20 different countries, including India, Australia, Nigeria and the Philippines. Comparatively, in 2018-19, Lakeland welcome 300 international students. Lakeland aims for international students to comprise 15 per cent of its student credit enrolment.

Lakeland continued to grow the international student base in programming areas that have unmet capacity, including business programs. Lakeland also focused on increasing country diversity within the college’s international student population.

International students did not have access to programs with waitlists or where they would otherwise prevent domestic students from accessing a particular program, nor will they in the future.

46 | Lakeland College 2019-20

International Student Recruitment Lakeland’s recruiting strategy focused on specific regions and invested significant effort and resources in those regions to attract students. The college has a contract agreement with M Square Global, a recruiting/brand building company, registered in Canada and India. The company was hired to build the Lakeland brand in India and to market Lakeland programs available for international students. To promote more country diversity, M Square targeted Pan India (India, Pakistan, Bangladesh, Nepal, Sri Lanka) and continental Africa as well. Lakeland also worked on recruitment in South East Asia and South America by attending virtual recruitment fairs and working with overseas agents.

With a committed international student coordinator on both the Vermilion and Lloydminster campuses, Lakeland supports international students from the time they inquire about the college through to their time as a student and graduate. Lakeland also has a Regulated International Student Immigration Advisor to support students.

Students have access to learning strategists, advisors, immigration consultants, student employment specialists, health services and other supports, as well as student clubs and recreation programs.

International lunch and learn sessions with departments were planned, however due to COVID-19 health and safety protocols, they were not held.

Lakeland was not engaged in off-shore/for-profit partnerships or in any cross-border delivery of Alberta credentials. Lakeland’s internationalization efforts were focused on student recruitment.

International Mobility for Domestic Students Another main component of Lakeland’s international strategy is to promote opportunities for domestic students to experience learning opportunities abroad.

However, due to COVID-19 health and safety protocols, Lakeland student travel trips did not occur.

International Development Lakeland joined the Academic Without Borders’ (AWB) Network of Canadian postsecondary institutions in September 2019. Through its membership in the Network, Lakeland faculty and staff will have special access to partnership opportunities provided by AWB through the organization's existing relationships with institutions and countries around the globe. Faculty will also be able to propose projects to AWB in conjunction with their post-secondary partners in the developing world.

While another key component of the college’s international strategy is engagement in international projects that are typically funded by Global Affairs Canada through Colleges and Institutes Canada, this was not possible due to COVID-19 health and safety protocols.

Annual Report | 47

INFORMATION TECHNOLOGY Lakeland’s Information Technology (IT) department is instrumental in enhancing and supporting teaching and learning experiences and outcomes for the campus community.

48 | Lakeland College 2019-20

In 2019-20, the following two-year initiatives were undertaken to improve the student experience as well as reduce operational costs and ensure long-term fiscal sustainability: • Cyber security governance, data protection and compliance • Authentication and identity management • Administrative system upgrades • Modernization of end-user technologies A five-year IT Roadmap was developed with processes to modernize infrastructure and technology support systems so that they are standardized across the college campuses. A strategic collaboration between Lakeland, Portage College and Northern Lakes College was initiated to align strategic direction based on shared goals. It will also help shape future enhancements to Lakeland’s IT Roadmap.

To align IT’s cloud-first strategy and IT Roadmap, a foundational system cleanup was completed to address all risk register items, including the implementation of an AI security monitoring platform. IT continues their work in modernizing back-end account management, updating old servers to current support versions, and decommissioning servers and services no longer required. IT is in the planning phase of moving major on-premise systems to the cloud, including the Enterprise Resource Planning (ERP) and administration systems.

IT implemented several essential service management processes including a formal IT change management system.

These processes play a crucial role in interactions with the IT department to help reduce operational risk and will continue to be implemented through the IT Roadmap.

An assessment of Lakeland’s existing ERP systems was undertaken, which included a cost analysis and an evaluation of Lakeland’s existing solution against best practices.

When Lakeland moved to online program delivery in midMarch due to COVID-19 protocols, the college accelerated the modernization of end-user technologies. Most teaching software programs were virtualized, and IT extended continued support of the online learning models for both students and instructors. IT provided the ability for live streaming to faculty, expanded the use of Microsoft Teams, Microsoft Stream, Zoom and D2L virtual classrooms.

Annual Report | 49

CAPITAL PLAN Lakeland College proactively and strategically prioritizes the maintenance and development of its facilities to provide quality academic and applied work-integrated experiences for students. Modern, technologically-advanced learning environments are essential for Lakeland students to thrive.

In 2019-20, Lakeland completed Phase 1 of the Vermilion Campus Revitalization plan. Renovations were completed in Alumni Hall’s Student Services and Learning Commons Information Technology areas. These renovations created student-centred spaces, improved service and business efficiency, and prioritized energy efficiency. The four enhanced environmental and agricultural sciences labs in Academic Link at the Vermilion campus opened at the beginning of the winter 2020 semester. They feature specialized equipment required in the study of soils, plants, aquatic organisms and chemistry.

The renovation also included improved ventilation, updated lighting, and new furniture and technology.

As a result of the upgrades, the labs have a more effective and comfortable layout for students to excel.

Investments from the provincial and federal governments, industry partners and donors are essential to Lakeland’s capital projects, as are internal financial resources.

Lakeland’s capital projects and investments align with the Government of Alberta’s goals of learner success, relevant programming and sustainability.

50 | Lakeland College 2019-20

Completed in January 2020, Lakeland put student experience at the forefront of newly renovated environmental sciences and agricultural sciences lab spaces in Academic Link.

Annual Report | 51

Type Proposed New Expansion Maintenance

Project Description

Total Project Cost

Funding Sources

Funding Received to Date and Source

Revised Funding Source

Top 3 Priority Projects Priority 1 Phase 1 Expansion

Vermilion Campus Revitalization Phase 1:

$9.5 million (M)

12% Government of $1.2M GOA Alberta (GOA) $1.2M IMP 12% GOA Infrastructure $7.1M Internal Maintenance Program (IMP) 76% Internal

No change.

$17.3M

50% GOA 50% Internal

$17.3M from GOA received in August 2020.

This project will be 100% funded by GOA.

$28M

50% GOA 10% GOA IMP 40% Internal

No funding received at this time.

No change.

• Science Labs • IT Office Space (Lower Commons) • Student Services Office Space (Alumni Hall) Priority 1 Phase 2 Expansion

Vermilion Campus Revitalization Phase 2: • WHT Mead Animal Science Centre

Priority 1 Phase 3-5 Expansion

Vermilion Campus Revitalization Phase 3: • Student Commons • Bentley Building • Alumni Hall

Priority 2a Expansion

Student-Managed Farm Renewal

$13.95M

50% GOA 10% Partnerships 40% Internal

New Initiative funding was announced in March 2020 ($431,000)

No change.

Priority 2b Expansion

Emergency Training Centre Lab Upgrade

$2M

70% GOA 30% Partnerships

New Initiative funding was announced in March 2020 ($231,000)

No change.

Priority 3 Proposed

Student Residence Redevelopment

$16M

10% Internal 90% Financing

No funding received at this time.

No change.

52 | Lakeland College 2019-20

Detailed Review Project Timelines and Status Project Description

Project Timelines

Expected Project Start

Expected Project Completion

Project Status

Vermilion Campus Revitalization: Phase 1 • Science Labs • IT Office Space (Lower Commons) • Student Services Office Space (Alumni Hall)

April 2019 – October 2019

April 2019

October 2019

Complete

Phase 1 of this project started in spring 2019.

The areas of focus in this phase includes four student labs in Academic Link, Alumni Hall Student Services and the Learning Commons Information Technology areas. Used by hundreds of environmental sciences and agricultural sciences students each year, the labs required a complete refresh to improve ventilation and technology, as well as update lighting, furniture and technology.

The labs were completed in January 2020. The renovated Student Services and IT areas improved service and business efficiency. Renovations in these two areas were completed by August 2019.

Vermilion Campus Revitalization: Phase 2 • WHT Mead Animal Science Centre

April 2020-June 2022

April 2020

June 2022

In progress

Staff, students, program advisory committees and elected officials were consulted on this project.

Design/building plans were completed. The Government of Alberta provided $17.3M for the project in August 2020. Construction is expected to begin January 2021.

Vermilion Campus April 2021-June Revitalization: 2023 Phases 3-5 • Student Commons • Bentley Building • Alumni Hall

April 2021

June 2023

Planning in progress

Planning is underway.

Student-Managed Lab Revitalization

April 2020-June 2025

April 2020

June 2025

Fundraising campaign and planning in progress

Progress made in 2019-2020 includes the renovation/retrofit of the Centre for Ag Technology, as well as technology upgrades and connectivity.

Penning and pasture updates were completed, as well as biosecurity controls. Infrastructure work included access roads, entrances and road improvements. The Student-Managed Farm – Powered by New Holland requires updating and sustainable management systems to extend the useful life of all buildings and infrastructure.

Emergency Training Centre (ETC) Lab Revitalization

April 2020-May 2022

April 2020

May 2022

In progress

Used by both Lakeland students and Alberta’s municipal volunteer fire force for training, the ETC lab requires refurbishment of props, waterlines and laboratory roadways. Paving was completed in July 2020.

Student Residence Redevelopment

February 2020-August 2022

February 2020

August 2025

Project pending funding approval (loan request)

While a business case was approved in December 2018 by Lakeland’s Board of Governors and was submitted to the GOA in May 2019 for approval, a revised business case is being prepared. Major renovations on both campuses and the moderate expansion of residence spaces on the Vermilion campus would increase Lakeland’s ability to serve student needs and enable the college to ensure appropriate access to education at both locations.

Progress Made in Last 12 Months

Annual Report | 53

FINANCIAL STATEMENT DISCUSSION AND ANALYSIS This financial statement discussion and analysis (FSD&A) provides supplemental information that should be read in conjunction with Lakeland’s financial statements for the year ended June 30, 2020. The FSD&A and audited financial statements are reviewed and approved by the Lakeland Board of Governors on the recommendation of the Lakeland Audit, Risk and Sustainability Committee. Lakeland’s financial statements have been prepared in accordance with Canadian Public Sector Accounting Standards (PSAS).

54 | Lakeland College 2019-20

Statement of Operations ($ thousands)

2020 Budget

2020 Actual

2019 Actual

Variance from Prior Year Actual

Total Revenue

76,150

65,986

74,263

(8,277)

Total Expense

(76,150 )

(66,657)

(67,059)

402

Annual Operating (Deficit) Surplus

-

(671)

7,204

(7,875)

Endowment contributions and capitalized interest

-

179

730

(551)

Annual (Deficit) Surplus

-

(492)

7,934

(8,426)

Lakeland generated an annual deficit of $492,000. This is a significant variance from the $7.9 million surplus for the prior year. The primary reasons for the variance included: a cut in the operating grant from the province of $3.5 million (9.5 per cent annualized); a net loss of approximately $1.7 million due to the response to COVID-19; and the payment of salary settlements of $2 million at the end of June 2020 for position abolishment and early retirement (to manage the expenditure reduction targets set by the Province for the 2020-21 fiscal year).

A more detailed analysis of variances follows.

Revenue ($ thousands)

2019 Actual

Variance from Prior Year Actual

(5,542)

41,302

(3,501)

2.46%

50

1,752

(128)

15,021

22.76%

(2,039)

16,503

(1,482)

11,726

8,494

12.87%

(3,232)

10,452

(1,958)

Donations and other grants

1,447

1,657

2.51%

210

2,726

(1,069)

Investment income

1,000

1,389

2.10%

389

1,528

(139)

76,150

65,986

100.00%

(10,164)

74,263

(8,277)

Per cent of Variance from Total Budget

2020 Budget

2020 Actual

43,343

37,801

57.29%

1,574

1,624

Student tuition and fees

17,060

Sales of services and products

Government of Alberta Grants Federal and other government grants

Total Revenue

Annual Report | 55

Revenue ($ millions) Budget

Actual

Government of Alberta grants Federal and other government grants

37.8

43.3

1.6 1.6

Student tuition and fees

17.0 15.0

Sales of services and products

8.5

Donation and other grants

1.4 1.7

Investment income

1.0 1.4

11.7

Actual revenues of $66 million were $10.2 million lower than the budget. The primary reasons for this were: • A reduction of $3.5 million in the operating grant from the province.

• Modest increases in some conditional grants from the province totaling $399,000.

• A $2.5 million reduction in the anticipated infrastructure maintenance program (IMP) grant revenue. The budget for this grant of $3.4 million included an unspent balance of $1.3 million at June 30, 2019, and an expected annual grant of $2.1 million. However, the annual grant was not approved by the province (for its fiscal year ended March 31, 2020). Lakeland did, however, receive $2.1 million in April 2020 (the Alberta Government’s next fiscal year), but most of it was not spent and earned before the end of the year. The amount deferred at June 30, 2020 was $2.1 million.

• A $2 million reduction in expected student tuition and fees due to lower than anticipated enrolments in energy and environmental sciences, and the closure of the college in mid-March as a response to COVID-19. Although most students completed their studies online, the spring intake of apprenticeship and Emergency Training Centre programs were cancelled, resulting in a loss in planned tuition revenue of approximately $1.2 million. Continuing education programs across the college were cancelled resulting in further reduction in tuition fees.

• A $3.2 million reduction in expected revenue from sales of services and products, primarily due to the response to COVID-19.

Spring and summer programming for the Emergency Training Centre was cancelled resulting in a loss of contract revenue of $1.1 million. Student residences were closed resulting in a loss of approximately $700,000. Events were cancelled, the Recreation Centre was closed, and sales and services revenues across the college were lost. Internal revenues are not included in actual revenues, resulting in a variance from budget of $697,000.

• Donations were $210,000 higher than budget.

• Although investment markets were adversely affected in March 2020 due to the response to COVID-19, they rebounded by the end of June 2020 and the college earned $389,000 more than the budget.

Actual revenues were $8.3 million or 11.1 per cent lower than the prior year, primarily due to the response to COVID-19 and the $3.5 million reduction in the operating grant. Actual student tuition and fees were down by $1.5 million, sales of services and products revenue was down by $2 million, and donations were down by $1 million (a grant for land of $1 million was earned in the prior year).

Government of Alberta Grants: Government of Alberta grants are the primary revenue source for Lakeland (57.3 per cent). Note 18 to the financial statements provides a breakdown of the types of grants received from the various departments and agencies of the Alberta Government.

56 | Lakeland College 2019-20

Student Tuition and Fees: The second largest source of revenue for Lakeland is student tuition and fees (22.8 per cent). As per Alberta government directive, tuition fee increases have been frozen for the last few years, although for the next three years, beginning in fiscal 2020-21, tuition fee increases of up to 7 per cent in each year will be permitted.

The primary operational driver for Lakeland is student enrolment. Lakeland has been experiencing moderate enrolment increases over the last several years, and although there was slight dip due to COVID-19, this trend is expected to continue.

Sales of Services and Products: The next largest source of revenue for Lakeland is from sales of services and products. Ancillary revenues from the Bookstore, Residence, Food Services, Farm, Athletics and Recreation are included here. This revenue source is highly dependent on student enrolments.

Donations and Other Grants: Actual donations can fluctuate quite significantly from year to year, but restricted donations are not recognized as revenue until they are spent on the purposes intended by the donor. In 2019-20, for example, a $3-million donation to purchase a bison herd and land was received, but it will not be recognized as revenue until the year the herd and land are purchased.

Investment Income As at June 30, 2020 Lakeland held $41.9 million in investments and $4.1 million in cash. The interest rate for its cash held was about 0.7 per cent. The market value of investments held by CIBC at year end was $24.3 million ($3.1 million in short term securities). The market value increase for the year was $263,000; these unrealized market gains are not recorded as revenue but are reflected as an increase in accumulated re-measurement gains on the statement of financial position (the total accumulated unrealized market gains are $866,000).

Lakeland’s scholarship and endowment fund is managed by TD Wealth. The market value of this fund at year end was $10.7 million. $8.3 million of this is permanently endowed, and $2.4 million is available for spending on the intended purpose. The market value increase for the year was $105,000, and the accumulated unrealized market gains are $972,000. Investment income related to the scholarship and endowment fund is externally restricted (deferred) and is only recognized as investment income in the statement of operations when the related expenditure is incurred. Total investment income for all cash and investments, as recognized on the statement of operations, was $1.4 million.

Expense ($ thousands)

2019 Actual

Variance from Prior Year Actual

(1,318)

40,711

931

17.88%

(5,365)

13,518

(1,597)

6,704

10.06%

(298)

6,293

411

4,688

2,330

3.50%

(2,358)

2,479

(149)

2,664

2,211

3.32%

(453)

2,501

(290)

Scholarships and bursaries

697

1,204

1.81%

507

692

512

Cost of goods sold

853

645

0.97%

(208)

865

(220)

76,150

66,657

100.00%

(9,493)

67,059

(402)

Per cent of Variance from Total Budget

2020 Budget

2020 Actual

Salaries and benefits

42,960

41,642

62.47%

Materials, supplies and services

17,286

11,921

Amortization of capital assets

7,002

Repairs and maintenance Utilities

Total Expense

Annual Report | 57

Expense by object ($ millions) Budget

Actual

Salaries and benefits

42.9 41.6

Materials, supplies and services

11.9

Amortization of capital assets

17.3

7.0 6.7

Repairs and maintenance

2.3

Utilities

4.7

2.7 2.2

Scholarships and bursaries

0.7 1.2

Cost of goods sold

0.9 0.6

Expense by function ($ millions) Budget

Actual

Instruction and training

27.9

Academic and student support

15.3 15.0

Facilities operation and maintenance

10.6

Institutional support

8.6 7.4

Ancillary services

Sponsored research

Special purpose

5.3 4.8 1.1 0.8 0.4 0.1

58 | Lakeland College 2019-20

14.5

31.0

Lakeland’s expenses totaled $66.7 million in 2020, which represented a modest decrease of $402,000 from the prior year, and a positive variance of $9.5 million from the budget.

Expenses are presented by function in the Statement of Operations and by object in note 16. The functional breakdown of expenses shows which activities Lakeland is spending its money on. In 2020, 64 per cent of Lakeland’s expenses related to activities related to direct instruction, training and related academic and student support. This compares quite favourably to other colleges of a similar size and/or mandate.

Salaries and benefits At 62.5 per cent of total, salaries and benefits is the largest expense for Lakeland. Although the college spent $2 million on severance due to position abolishment and early retirements, there was a positive variance from the budget of $1.3 million. This is mainly due to unused contingencies, position vacancies and reductions in expenses for the last three months of the year due to cancellation of some programs due to COVID-19. There was a year-over-year increase of $931,000, primarily due to the $2 million paid in severance at the end of the year. The freeze on administrative staff salaries and a zero per cent increase to bargaining unit staff salaries were the major reasons for holding the line here. The number of full-time equivalent staff decreased modestly from 423 to 416.

Materials supplies and services At 17.9 per cent this is the second largest expense for Lakeland. These expenses were $5.4 million lower than the budget, and $1.6 million lower than last year’s actual. Actual expenses were lower than last year mainly due to the cancellation of programming in mid-March due to COVID-19. Major reasons for variances from budget included: • Unused central contingencies for supplies and services of $563,000.

• Unspent central contingencies for professional development of $194,000.

• Unused central contingencies for consulting and professional fees of $568,000.

• Major reductions in travel at year end resulting in actual costs $414,000 lower than budget.

• Software and hardware maintenance fees were $150,000 lower than budget.

• Other reductions in expenditures at the end of the year in response to COVID-19.

• Expenditures for college functions were $248,000 lower than budget due to cancellation of President’s Gala and cancellations of other events due to COVID-19.

• Internal cost of sales of $697,000 eliminated for financial statement purposes.

Financial Position The college incurred an annual deficit of $492,000, resulting in a decrease to the accumulated surplus from $72.6 million to $72.1 million. Accumulated re-measurement gains increased by $263,000 due to market value increases in its investments. As per Public Sector Accounting Standards, market value gains cannot be recognized as revenue until they are realized via sale of the related investment.

Lakeland has generated modest surpluses over the last few years, and as a result, its financial position appears to be relatively healthy. Of the $72.1 million in accumulated surplus (see note 11), however, $49.7 million is not available for spending -- $8.3 million relates to permanently restricted endowments and $41.4 million to investments in capital assets. Furthermore, approximately $4.9 million of Lakeland’s Strategic Investment Fund (internally restricted net assets) is committed to projects in progress (campus revitalization) and over $3 million of Lakeland’s operating surplus is committed to future capital expenditures (IT infrastructure, software development, parking lot paving, research, etc.). This means that only approximately $14.5 million is available to fund high priority strategic initiatives. This is not enough for the significant investment that is needed to deal with Lakeland’s aging infrastructure, to revitalize its Vermilion campus, and to modernize labs and classrooms. Furthermore, with government cuts to operating grants, Lakeland College’s capacity to generate surpluses has been severely compromised, and campus revitalization plans will need to be curtailed unless capital and infrastructure grants are provided.

Due to enrolment growth, prudent financial planning and careful management of cost increases, surpluses have been generated in the last few years, but this likely will not continue. Most of Lakeland’s annual surplus in the past ($5 million in 2019, $9 million in 2018) was allocated to Lakeland’s Strategic Investment Fund (internally restricted net assets) in order to fund campus revitalization and modernization of labs and classrooms.

Lakeland’s investment in tangible capital assets increased by $5.6 million, primarily due to completion of renovations to the Academic Link, Student Commons and Student Services areas.

Annual Report | 59

Net Financial Assets Included in Lakeland’s net financial assets is $10.6 million that is related to investments restricted for endowments. $8.3 million of this relates to permanently restricted endowments and cannot be spent. These funds generate investment income that can be spent on operations, but only as intended by the donor. A more important indicator of solvency is Lakeland’s net financial assets excluding portfolio investments restricted for endowments. This was $16.5 million as at June 30, 2020, a decrease of $6 million from the prior year, primarily due to the acquisition of tangible capital assets.

Areas of Significant Financial Risk Deferred Maintenance, Campus Revitalization, Modernization of Classrooms and Labs Lakeland has a significant deferred maintenance deficiency. Its buildings (inside and out), roads, and water and sewer lines are old and need significant investment to extend and/or maintain their useful life. Some of this deficiency can be funded by the province’s Infrastructure Maintenance Grant ($2.1 million). However, this grant was not provided for the government’s 2019-20 fiscal year. The government reinstated the grant in April 2020, but there is uncertainty that it will continue. In the absence of adequate funding from the provincial government, and operating surplus reductions due to grant cuts, Lakeland has limited options to deal with this critically important issue.

Grants from the Province and Tuition Fees The largest source of revenue for Lakeland is grants from the Government of Alberta. The second largest source is tuition. These two sources combined represent 80 per cent of Lakeland’s total revenue. Lakeland is exposed to significant financial risk if the Alberta government fiscal restraint results in further cuts to grants. Furthermore, without funding for campus revitalization, Lakeland’s ability to provide quality, safe programming and services to students in the future will be severely compromised.

60 | Lakeland College 2019-20

SELF-GENERATED REVENUE Institutional self-generated revenue enterprises are categorized as follows:

Ancillary Services: Services provided to students and staff that are ‘ancillary’ to the core function of education. For Lakeland College these include Residence, Bookstore, Cafeteria, Event Services, the Be-Fit-For-Life program and the Aquatic Centre.

Academic Enterprises: These activities are an integral part of Lakeland College’s educational, research, public service and campus support functions. These include the Student-Managed Farm – Powered by New Holland and continuing education programming.

Commercial Enterprises: Lakeland College currently has no commercial enterprises. These enterprises are outside an institution’s primary education and research mandate. Students and staff are not directly served by, nor do they derive direct benefit from them.

Annual Report | 61

Revenue

2019-20 Expense

Net (4)

2018-19 Net

$(3,094,937)

$2,976,110

$(118,827)

$(562,495)

(927,300)

948,687

21,387

67,334

(67,622)

132,081

64,459

7,690

(1,019)

140,564

139,545

189,240

(321,319)

403,426

82,107

100,213

Ancillary Services: Residence (1) Bookstore Event Services Cafeteria (2) Aquatic Centre (3) Be Fit For Life Total Ancillary

(135,041)

147,377

12,336

6,332

(4,547,238)

4,748,245

201,007

(191,686)

(2,243,202)

2,791,483

548,281

514,743

Academic Enterprises: Student Managed Farm Continuing Education: Administration (centralized - Note 5)

-

(7,504)

(7,504)

144,069

Emergency Training Centre

(688,935)

746,398

57,463

(397,945)

Performing Arts

(191,457)

183,594

(7,863)

(2,131)

Agriculture

(108,740)

131,551

22,811

72,636

Environmental Sciences

(612,316)

599,079

(13,237)

(80,993)

(18,701)

24,452

5,751

(9,672)

(1,035,194)

1,052,825

17,631

(36,812)

Health and Wellness Trades Business and Energy Total Continuing Education Total Academic Enterprises Total Self Generated Enterprises

(408,018)

282,045

(125,973)

(12,758)

(3,063,361)

3,012,440

(50,921)

(323,606)

(5,306,563)

5,803,923

497,360

191,137

$(9,853,801)

$10,552,168

$698,367

$(549)

Note 1 - Includes direct operating costs and cost of utilities, repairs and maintenance, security and grounds Note 2 - Operated by a third party - costs include management fee, utilities, caretaking and equipment. First $50,000 profit on direct revenue less direct costs is payable to Lakeland College. No profit in past two years.

Note 3 - Cost sharing agreement with Town of Vermilion. Net cost to the College is limited by agreement to $100,000 per year. Any excess is set aside in internally restricted funds.

Note 4 - Operations negatively impacted by response to COVID-19 Note 5 - Continuing education administration was centralized prior to 2019-20.

62 | Lakeland College 2019-20

FINANCIAL STATEMENTS Table of Contents Independent Auditor’s Report...............................................................64 Statement of Management Responsibility...........................................67 Statement of Financial Position..............................................................68 Statement of Operations........................................................................69 Statement of Change in Net Financial Assets......................................70 Statement of Remeasurement Gains and Losses................................70 Statement of Cash Flows........................................................................71 Notes to the Financial Statements.........................................................72 Annual Report | 63

64 | Lakeland College 2019-20

Annual Report | 65

I communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit an internal control that I identify during my audit.

[Original signed by W. Doug Wylie FCPA, FCMA, ICD.D] Auditor General October 7, 2020 Edmonton, Alberta

66 | Lakeland College 2019-20

STATEMENT OF MANAGEMENT RESPONSIBILITY Year ended June 30, 2020 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, 2020 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, Risk and Sustainability Committee. With the exceptions of the President and Staff Association Representative all members of the Audit, Risk and Sustainability Committee are not employees of the College. The Audit, Risk and Sustainability 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, Risk and Sustainability 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 Post-Secondary Learning Act. The Independent Auditor’s Report outlines the scope of the audit and provides the audit opinion on the fairness of presentation of the information in the financial statements.

_______________________________________

_______________________________________

[Original signed by Dr. Alice Wainwright-Stewart] [Original signed by Murray Walford] President Chief Financial Officer

Annual Report | 67

STATEMENT OF FINANCIAL POSITION As at June 30, 2020 ($ thousands)

2020

2019

Financial assets excluding portfolio investments restricted for endowments Cash

$

Portfolio investments – non-endowment (note 3)

4,093

$

5,048

31,235

36,223

Accounts receivable

544

1,663

Inventories held for sale

358

301

36,230

43,235

7,819

8,840

Liabilities Accounts payable and accrued liabilities Debt (note 6) Deferred revenue (note 7) Environmental liabilities (note 10)

Net financial assets excluding portfolio investments restricted for endowments Portfolio investments – restricted for endowments (note 3) Net financial assets

840

960

11,030

10,912

52

70

19,741

20,782

16,489

22,453

10,625

10,289

27,114

32,742

Non-financial assets Tangible capital assets (note 8)

105,886

100,631

Inventories of supplies

1,447

1,412

Prepaid expenses

2,016

2,083

109,349

104,126

136,463

136,868

Net assets before deferred capital contributions Spent deferred capital contributions (note 9)

63,537

Net assets (note 11)

63,713

$

72,926

$

73,155

$

72,060

$

72,552

Net assets is comprised of: Accumulated surplus Accumulated remeasurement gains

866 $

72,926

Contingent assets and Contractual rights (note 12 and 14) Contingent liabilities and contractual obligations (notes 13 and 15) Approved by the Board of Governors

_______________________________________ [Original signed by Chair, Board of Governors]

_______________________________________ [Original signed by Vice Chair, Board of Governors]

The accompanying notes are an integral part of these financial statements

68 | Lakeland College 2019-20

603 $

73,155

STATEMENT OF OPERATIONS Year ended June 30, 2020 ($ thousands)

Budget

2020

2019

(note 20) Revenues Government of Alberta grants (note 18) Federal and other government grants (note 18)

$

43,343

$

37,801

$

41,302

1,574

1,624

1,752

Student tuition and fees

17,060

15,021

16,503

Sales of services and products

11,726

8,494

10,452

Donations and other grants

1,447

1,657

2,726

Investment income

1,000

1,389

1,528

76,150

65,986

74,263

Instruction and training

30,998

27,887

27,482

Academic and student support

15,272

15,008

14,704

Facilities operation and maintenance

Expenses (note 16)

14,496

10,599

10,959

Institutional support

8,641

7,378

7,202

Ancillary services

5,265

4,835

5,235

Sponsored research

1,063

805

1,036

415

145

441

76,150

66,657

67,059

-

(671)

7,204

153

371

Special purpose

Annual operating (deficit) surplus Endowment contributions (note 11) Endowment capitalized investment income (note 11)

Annual (deficit) surplus Accumulated surplus, beginning of year Accumulated surplus, end of year

$

26

359

179

730

(492)

7,934

72,552

64,618

72,060

$

72,552

The accompanying notes are an integral part of these financial statements

Annual Report | 69

STATEMENT OF CHANGE IN NET FINANCIAL ASSETS Year ended June 30, 2020 ($ thousands)

Budget Annual (deficit) surplus Acquisition of tangible capital assets, net of proceeds from sale

$

2020

-

$

(492)

2019 $

7,934

(9,575)

(11,898)

(12,373)

7,002

6,704

6,293

Gain on disposal of tangible capital assets

-

(61)

(139)

Change in inventories of supplies

-

(35)

272

Change in prepaid expenses

-

67

(252)

1,200

(176)

2,359

Amortization of tangible capital assets

Change in spent deferred capital contributions Change in accumulated remeasurement gains

263

358

Increase (decrease) in net financial assets

(5,628)

4,452

Net financial assets, beginning of year

32,742

28,290

Net financial assets, end of year

$

27,114

$

32,742

STATEMENT OF REMEASUREMENT GAINS AND LOSSES Year ended June 30, 2020 ($ thousands)

2020 Accumulated remeasurement gains, beginning of year

$

603

2019 $

245

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

260

407

3

(49)

Amounts reclassified to statement of operations: Quoted in active market financial instruments: Portfolio investments - non-endowment Change in accumulated remeasurement gains Accumulated remeasurement gains, end of year

The accompanying notes are an integral part of these financial statements

70 | Lakeland College 2019-20

263 $

866

358 $

603

STATEMENT OF CASH FLOWS Year ended June 30, 2020 ($ thousands)

2020

2019

Operating transactions Annual (deficit) surplus

$

(492)

$

7,934

Add (deduct) non-cash items: Amortization of tangible capital assets

6,704

6,293

Loss (Gain) on sale of portfolio investments

33

(152)

Gain on disposal of tangible capital assets

(61)

(139)

(3,439)

(3,910)

1,120

412

(57)

60

Expended capital recognized as revenue Decrease in accounts receivable (Increase) decrease in inventories held for sale (Decrease) increase in accounts payable and accrued liabilities

(1,022)

1,866

13

(4,761)

Decrease in environmental liabilities

(18)

(149)

(Increase) decrease in inventories of supplies

Increase (decrease) in deferred revenue

(35)

272

Decrease (increase) in prepaid expenses

67

(252)

Cash provided by operating transactions

2,813

7,474

(11,964)

(12,529)

103

163

(11,861)

(12,366)

(11,408)

(12,651)

Capital transactions Acquisition of tangible capital assets, less in-kind donations Proceeds on sale of tangible capital assets Cash (applied to) capital transactions Investing transactions Purchase of portfolio investments Proceeds on sale of portfolio investments Cash provided by (applied to) investing transactions

16,396

4,685

4,988

(7,966)

Financing transactions Debt – repayment

(120)

(120)

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

3,225

6,262

Cash applied to financing transactions

3,105

6,142

Decrease in cash

(955)

(6,716)

Cash, beginning of year

5,048

11,764

Cash, end of year

$

4,093

$

5,048

The accompanying notes are an integral part of these financial statements

Annual Report | 71

NOTES TO THE FINANCIAL STATEMENTS Year ended June 30, 2020 ($ thousands)

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

Portfolio investments

Inventories held for resale

Accounts receivable

Accounts payable and accrued liabilities

Debt

Measurement Cost Fair value Lower of cost or net realizable value Lower of cost or net recoverable value 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, 2020. 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 72 | Lakeland College 2019-20

Note 2 (continued) 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.

{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 and unrealized investment gains on portfolio investments restricted for endowments (which includes endowment principal and previously accumulated expendable investment gains) are recognized as deferred revenue when the terms for use by the endowment create a liability. Realized investment income allocated to endowment balances for the preservation of endowment capital purchasing power is recognized in the statement of operations as a component of endowment contributions and capitalized investment income.

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.

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.

Annual Report | 73

Note 2 (continued) • 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.

{d} Inventories Inventories held for sale 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.

{e}

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, and costs associated with asset retirement obligations. 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.

Leases of tangible capital assets which transfer substantially all the benefits and risks of ownership are accounted for as leased tangible capital assets. Capital lease obligations are recorded at the present value of the future minimum lease payments at the inception of the lease, excluding executor costs (e.g. insurance, maintenance costs, etc.). The discount rate used to determine the present value of the lease payments is the lower of the 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.

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.

{f}

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.

{g}

Foreign Currency Translation Transaction amounts denominated in foreign currencies are translated into their Canadian dollar equivalents at exchange rates prevailing at the transaction dates. Carrying values of monetary assets and liabilities and non-monetary items included

74 | Lakeland College 2019-20

Note 2 (continued) 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.

{h}

Employee Future Benefits Pension The College participates with other employers in the Local Authorities Pension Plan (LAPP). This pension plan is a multiemployer defined benefit pension plan that provides pensions for the 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.

The College provides long-term liability insurance through a 3rd party insurance provider and the premiums are recorded as an expense in the period that premiums are paid.

{i}

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. Contaminated sites occur when an environmental standard exists and contamination exceeds the environmental standard.

Contaminated sites in productive use: A liability for remediation of contaminated sites from an operation(s) that is in productive use is recognized net of any expected recoveries when all the following criteria are met:

i. the College has a duty or responsibility to others, leaving little or no discretion to avoid the obligation.

ii. the duty or responsibility to others entails settlement by future transfer or use of assets, or a provision of services at a specified or determinable date, or on demand: and

iii. the transaction or events obligating the College have already occurred.

Contaminated sites no longer in productive use: A liability for remediation of contaminated sites from an operation(s) no longer in productive use, and/or an unexpected event occurs resulting in contamination, is recognized net of any expected recoveries when all the following criteria are met:

i. the College is directly responsible or accepts responsibility:

ii. it is expected that future economic benefits will be given up; and

iii. a reasonable estimate of the amount can be made.

{j}

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.

Annual Report | 75

Note 2 (continued) 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 related to fundraising and community service specifically funded by restricted grants.

{k}

Funds and Internally Restricted Net Assets 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 internally restricted net assets are an adjustment to the respective fund when approved.

{l}

Future Accounting Changes The Public Sector Accounting Board has extended the effective dates for the adoption of accounting standards in response to the COVID-19 pandemic. The effective date of PS 3280 Asset Retirement Obligations has been extended to fiscal years starting on or after April 1, 2022, and the effective date of PS 3400 Revenue has been extended to fiscal years starting on or after April 1, 2023. The College has not yet adopted these standards. Management is currently assessing the impact of these standards on the financial statements.

PS 3280 Asset Retirement Obligations provides guidance on how to account for and report liabilities for retirement of tangible capital assets.

PS 3400 Revenue provides guidance on how to account for and report on revenue, specifically addressing revenue arising from exchange transactions and unilateral transactions.

76 | Lakeland College 2019-20

3.

Portfolio investments 2020 Portfolio investments – non-endowment

$

Portfolio investments – restricted for endowments

2019

31,235

$

10,625 $

36,223 10,289

41,860

$

46,512

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

2020 Level 1

Level 2

Total

Investments at fair value: Bonds Canadian bonds

$

Pooled investment funds

3,435

$

-

$

3,435

-

10,009

10,009

Canadian equities

2,741

-

2,741

Foreign equities

4,449

-

4,449

-

13,263

13,263

-

7,963

7,963

Equities

-

Pooled investment funds Money market and term securities $

10,625

$

31,235

25%

$

41,860

75%

100%

Level 2

Total

2019 Level 1 Investments at fair value: Bonds Canadian bonds

$

Pooled investment funds

3,482

$

-

$

3,482

-

10,092

10,092

Canadian equities

2,499

-

2,499

Foreign equities

4,308

-

4,308

-

18,155

18,155

-

7,976

7,976

Equities

-

Pooled investment funds Money market and term securities $

10,289 22%

$

36,223 78%

$

46,512 100%

The fair value measurements are those derived from: Level 1 – Quoted prices in active markets for identical assets; Level 2 – Fair value measurements are those derived from inputs other than quoted prices included 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).

Annual Report | 77

4.

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, 2020, the impact of a change in the rate of return on portfolio investments would be as follows: Portfolio investments – non endowment • 3.07% change in bonds would result in a $307 increase or decrease (2019 – 2.91% and $293) • 11.34% change in equities would result in a $1,508 increase or decrease (2019 – 6.03% and $1,095) Portfolio investments – restricted for endowments • 2.56% change in bonds would result in a $88 increase or decrease (2019 – 2.22% and $77) • 13.86% change in equities would result in a $996 increase or decrease (2019 – 9.63% and $655) 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 debt instruments 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

2020

2019

8.1%

5.6%

30.1%

87.7%

AA-

1.4%

0.0%

A+

16.0%

0.0%

A

44.4%

6.7%

100%

100%

AA

Liquidity risk Liquidity risk is the risk that the College will encounter difficulty in meeting obligations associated with its financial liabilities. This risk is managed by maintaining excess funds in the College’s operating bank account which earns interest at a rate comparable to a short-term redeemable investment product, as well as a revolving 6-month guaranteed investment certificate.

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 78 | Lakeland College 2019-20

Note 4 (continued) securities that the College holds. Interest risk on the College's debt is managed through fixed-risk agreements with Alberta Capital Finance Authority (note 6). A 1% change in interest rates on bond and marketable securities values would result in a $114 increase or decrease (2019 - $115) in fair market value.

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

Asset Class

Cash and cash equivalents Portfolio investments, short term Portfolio investments, fixed income

5.

Less than 1 year

1 to 5 years

Greater than 5 years

Average effective market yield

100.0%

0.0%

0.0%

0.7%

87.9%

12.1%

0.0%

1.0%

0.0%

42.5%

57.5%

1.5%

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 faculty, administrative and support staff members and is accounted for on a defined contribution basis. At December 31, 2019, the LAPP reported an actuarial surplus of $7,913 million (2018 - $3,469 million surplus). An actuarial valuation of the LAPP was carried out as at December 31, 2018 and was then extrapolated to December 31, 2019. The pension expense recorded in these financial statements is $2,682 (2019 - $2,874). Other than the requirement to make additional contributions, the College does not bear any risk related to the LAPP deficit.

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

Debentures payable to Alberta Capital Finance Authority

Collateral

Maturity

Interest Rate

2020

2019

Residences

2026

6.5%

$840

$960

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

Principal 2021

$

120

Interest $

55

Total $

175

2022

120

47

167

2023

120

39

159

2024

120

31

151

2025

120

23

143

Thereafter

240

23

263

$

840

$

218

$

1,058

Interest expense on debt is $55 (2019 - $63) and is included in the statement of operations.

The net book value of assets pledged as collateral is $1,887.

Annual Report | 79

7.

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

2020 Deferred research and special purpose Balance, beginning of year

$

4,863

$

Tuition and other fees

2,848

$

3,201

Total

$

10,912

Total

$

15,333

9,795

800

14,924

25,519

27,371

Restricted investment income

212

-

-

212

456

Change in unrealized gains

105

-

-

105

340

Transfers to spent deferred capital contributions

(2,597)

(666)

-

(3,263)

(6,269)

Recognized as revenue

(5,976)

-

(16,399)

(22,375)

(25,703)

(26)

-

-

(26)

(358)

Grants, tuition, donations received

Transfers to endowments Other

(54)

Balance, end of year

8.

2019

Unspent deferred capital contributions

$

-

6,322

$

$

1,726

(258)

(54)

-

2,982

$

11,030

$

10,912

Tangible capital assets 2020 Land

Building & site improvements

2019

Furniture & equipment

Computer hardware & software

$

$

Learning resources

Total

Total

Cost Balance, beginning of year

$

7,606

$

167,604

24,736

17,585

$

14

$

217,545

$

209,493

Acquisitions

-

8,576

1,654

1,771

-

12,001

12,537

Disposals, including Write-downs

-

(7)

(472)

(196)

-

(675)

(4,485)

7,606

176,173

25,918

19,160

14

228,871

217,545

Accumulated amortization Balance, beginning of year

$

-

$

87,821

$

14,983

$

14,096

$

14

$

116,914

$

115,081

Amortization expense

-

4,188

1,227

1,289

-

6,704

6,293

Effects on disposals, Including write-downs

-

(3)

(442)

(188)

-

(633)

(4,460)

-

92,006

15,768

15,197

14

122,985

116,914

Net book value at June 30, 2020

$

7,606

$

84,167

$

10,150

$

3,963

$

-

Net book value at June 30, 2019

$

7,605

$

79,782

$

9,753

$

3,490

$

-

No interest was capitalized by the College during the 2019 or 2018 fiscal years.

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

80 | Lakeland College 2019-20

$

105,886

$

100,631

Note 8 (continued) (2) Cost includes work in progress at June 30, 2020 totaling $871 (2019 - $3,250) comprised of $803 in buildings and site

improvements (2019 - $3,228), $42 in software (2019 - $22) and $26 in furniture and equipment (2019 - $0). These

assets are not amortized as the assets are not available for use.

(3) Acquisitions during the year include in-kind contributions valued at $37 (2019 - $7).

9.

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).

2020

2019

Spent deferred capital contributions Balance, beginning of year

$

63,713

$

61,355

Transfers from unspent deferred capital contributions

666

5,118

Transfers from deferred research and special purpose

2,597

1,150

Expended capital recognized as revenue Balance, end of year

10.

Environmental Liabilities

The composition of environmental liabilities is as follows:

(3,439) $

63,537

(3,910) $

63,713

2020 Balance, beginning of year

$

Addition to liabilities during the year

$

219

15

Change in estimate related to existing sites Remediation work performed Balance, end of year

70

2019

$

-

5

(40)

(38)

(109)

52

$

70

The College has accepted responsibility to perform remediation work for one site related to contaminated soils and groundwater. The site was contaminated as a result of the disposal of ash and petrochemical products; while remediation was performed in 2019, further remediation consisting of excavation and disposal of contaminated soil was completed in 2020.

The College has two additional sites that were contaminated as a result of ongoing agricultural activity. Alberta Environment and Parks was informed of the contamination and a risk management plan is under development. Estimated future costs of risk management are included in the environmental liability. These estimates may change upon completion and approval of the risk management plan and also based on assessments in future years.

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

Annual Report | 81

11.

Net assets Accumulated net assets from operations Net assets, as at June 30, 2018

$

Annual surplus

5,091

Investment in tangible capital assets $

31,734

Internally restricted net assets $

20,666

Total net assets

Endowments

$

7,372

$

64,863

7,934

-

-

-

7,934

New donations

(371)

-

-

371

-

Capitalized investment income

(359)

-

-

359

-

-

-

-

-

-

2,383

(2,383)

-

-

-

(2,528)

6,268

(3,740)

-

-

Endowments

-

Transfer to endowments Tangible capital assets

-

Amortization of tangible capital assets Acquisition of tangible capital assets Debt repayment

(120)

120

-

-

-

Net book value of tangible capital asset disposals

(21)

21

-

-

-

Operating expenses funded from internally restricted net assets

(36)

-

36

-

-

(5,000)

-

5,000

-

-

358

-

-

-

358

Net Board appropriation to internally restricted net assets Change in accumulated remeasurement gains Net assets, as at June 30, 2019

$

7,331

$

(492)

Annual deficit

35,760

$

-

21,962

$

-

8,102

$

-

(492)

Endowments

-

New donations Capitalized investment income Transfer to endowments

(153)

-

-

153

-

(26)

-

-

26

-

-

-

-

-

-

3,265

(3,265)

-

-

-

(3,196)

8,739

(5,543)

-

-

(120)

120

-

-

-

(35)

35

-

-

-

397

-

(397)

-

-

-

263

Tangible capital assets

-

Amortization of tangible capital assets Acquisition of tangible capital assets Debt repayment Net book value of tangible capital asset disposals Initiatives funded by operations

(334)

Transfers

334

263

Change in accumulated remeasurement gains Net assets, as at June 30, 2020

73,155

-

-

$

6,900

$

41,389

$

16,356

$

8,281

$

72,926

$

6,034

$

41,389

$

16,356

$

8,281

$

72,060

Net assets is comprised of: Accumulated surplus

866

Accumulated remeasurement gains and losses $

82 | Lakeland College 2019-20

6,900

$

41,389

$

16,356

$

8,281

866 $

72,926

Note 11 (continued) Investment in tangible capital assets represents the amount of the College's net assets that has been invested in the College's capital assets.

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

16,847

$

(258)

$

(5,405)

$

11,184

1,484

-

(138)

1,346

18,331

(258)

(5,543)

12,530

2,957

-

(32)

2,925

250

-

(30)

220

424

592

(335)

681

3,631

592

(397)

3,826

Appropriations for operating activities Major maintenance Emerging operating needs Delivery Initiatives Total appropriations

12.

$

21,962

$

334

$

(5,940)

$

16,356

Contingent Assets The College has conducted a review to determine if any contingent assets exist. There are no contingent assets to report.

13.

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.

The College has been named in three (2019: nil) employment related claims, the outcome of which are not determinable.

The claims have no amount specified.

14.

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:

Annual Report | 83

Note 14 (continued)

Operating Leases 2021

$

45

$

Total

734

$

779

2022

42

189

231

2023

31

117

148

2024

31

78

109

2025

17

-

17

171

-

171

Thereafter

15.

Other

Total at June 30, 2020

$

337

$

1,118

$

1,455

Total at June 30, 2019

$

416

$

1,795

$

2,210

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 2021

$

1,766

$

866

Information systems and technology $

57

Long-term leases $

121

Total

$

2,810

2022

338

22

58

106

524

2023

187

-

48

96

331

2024

104

-

10

39

153

2025

99

-

10

-

109

Thereafter

16.

Capital projects

1

-

-

-

1

Total at June 30, 2020

$

2,495

$

888

$

183

$

362

$

3,928

Total at June 30, 2019

$

2,616

$

6,515

$

191

$

528

$

9,849

Expense by object The following is a summary of expense by object:

2020

2019

Budget Salary and benefits

$

42,960

Actual $

41,642

Actual $

40,711

Material, supplies and services

17,286

11,921

13,518

Amortization of capital assets

7,002

6,704

6,293

Repairs and maintenance

4,688

2,330

2,479

Utilities

2,664

2,211

2,501

697

1,204

692

Scholarships and bursaries Cost of goods sold

853 $

84 | Lakeland College 2019-20

76,150

645 $

66,657

865 $

67,059

17.

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 6.

During the year, the College provided and received the following services at nominal or reduced amounts: • During the year, Government of Alberta related parties occupied space from the College at a nominal cost. 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.

18.

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.

2020

2019

Grants from Government of Alberta Advanced Education: Operating

$

Capital Other Conditional Grants Total Advanced Education

31,556

$

34,824

-

1,763

4,459

3,590

36,015

40,177

(21)

268

83

65

215

14

29

29

306

376

36,321

40,553

Other Government of Alberta departments and agencies: Alberta Agriculture and Forestry Culture, Multiculturalism and Status of Women Economic Development, Trade and Tourism Labour and Immigration Total other Government of Alberta departments and agencies Total contributions received Expended capital recognized as revenue Deferred revenue $

2,742

3,101

(1,262)

(2,352)

37,801

$

41,302

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

1,984

1,470

202

231

(562)

51

1,624

$

1,752

Annual Report | 85

19. Salary and employee benefits 2020 Base salary ¹

Other cash benefits ²

2019

Other non-cash benefits ³

Total

Total

Governance Chair of Board of Governors

$

Members of Board of Governors

-

$

4

$

-

$

4

$

2

-

6

-

6

10

-

10

-

10

12

275

-

14

289

308

VP Academic & Research

200

-

33

233

233

VP External Relations & Infrastructure

184

-

33

217

217

Chief Financial Officer

141

-

29

170

171

Director Human Resources

131

-

28

159

159

931

-

137

1,068

1,088

Senior Leadership President Vice Presidents

Other

$

931

$

10

$

137

$

1,078

$

1,100

(1) Base salary includes pensionable base pay.

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

(3)

20.

Other non-cash benefits include 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.

Budget figures The College's 2019-2020 budget was approved by the Board of Governors on May 22, 2019 and was presented to the Minister of Advanced Education as part of the College's submission of its 2019 - 2022 Comprehensive Institutional Plan.

21.

Change in operations In March 2020, in response to the “COVID-19” pandemic declared by the World Health Organization, and directives as provided by the Chief Medical Officer of Alberta, Lakeland College transitioned to online instruction for all programs in progress. The effects of the pandemic and responses are rapidly evolving and have caused material disruption to business and has resulted in an economic slowdown. The magnitude and duration of COVID-19, and responses to it, is uncertain and, accordingly, it is difficult to reliably measure the future impact on the College’s financial position and operations.

22.

Comparative figures Certain 2019 figures have been reclassified to conform to the presentation adopted in the 2020 financial statements.

86 | Lakeland College 2019-20

APPENDIX Donors Lakeland College thanks the following supporters for their donations to the college between July 1, 2019 and June 30, 2020. 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 | 87

3M/Scott Safety

Bullseye Feed Inc.

Devries, Bert & Beverley

Advisian

C5 Bar Ranch Inc.

Devries, Rob & Jodi

Agriculture Financial Services Corporation

Calderwood, James

Dickson, Bliss

Caliber Construction

Dustow, Jeff

Agri-Trade Equipment Expo

Calkins, Eleanor

Dutchak, Anita

Alberta Agriculture and Forestry

Callander, Mary & James

Dziadyk, Rob & Rita

Alberta Assessors' Association

Cameron, Bob & Shirley

Edmonton Antique Car Club

Alberta Association of Animal Health Technologists

Campbell, Annessa

Edmonton Kenworth Ltd.

Campbell, Tony & Rose

Edmonton Trailer Sales & Leasing Ltd.

Canadian Natural Resources Limited Canadian Plains Energy Services LP

Electrical Contractors Association of Alberta

Alberta Seed Growers Association

Canadian Senior Pro Rodeo Association

Elk Valley Ranches Inc.

Alberta Trail Riding Association

Canarie Inc.

Elliott, Doug

Alde, Kreg & Lee-Anne

Capital Cares

Erickson, Morris & Paulette

Altman, T.J. & Georgina

Carter, Deanna

Excel Construction Ltd.

Aramark Canada Ltd.

Casselman, Estate of Ernest John

Eyben, Judy

ATCO

CEDA International

Farm Credit Canada

Attain Solutions Inc.

Cervus Equipment

Fellner, Marcy

Austin, Howard

Chevraux, Stanley & Sharleen

Ferguson, Valeria

Bailey, Julie

Chisholm, Michael

Fingland, Ilene

Baker, Laura

Citadel Mechanical Ltd.

Finner, Evelyn

Bandola, Daniel & Erin

City of Lloydminster

First Truck Centre

Bar Engineering Co. Ltd.

Coca-Cola Refreshments Canada Company

Ford, Cathy

Compliant Environmental Services Ltd.

Fountain Tire

Convergint Technologies Ltd.

Gartner, Lacey

Cornerstone Co-operative

Geddes, Jeanne

County of Vermilion River

Gehl, Robert

Creative Glass & Aluminum Ltd.

General Motors of Canada Company

Crowe, Michael & Kathy

Gift Funds Canada

Bilben, Larry & Sharon

Crown Investments Corporation of Saskatchewan

Gordeyko, Allan & Elouise

Blight, Lane

Dahlseide, Melvin & Colleen

Government of Saskatchewan Adv Ed, Employment & Immigration

Block's Agencies

Dancey, Randy & Brenda

Gow, Diane

Bocock, Bill

Danielson, Anne

Greenwood, Irvin & Lydia

Bocock, Terry & Kathleen

Davison, Lloyd & Linda

Greenwood, Margaret

Boehm's Physiotherapy Clinic

Debusschere, Garry & Mary

Griffiths, Leanne

Border City Rotary Club

Dedman, Derek

Grundner, Theresia

Braun, Cameron & Gloria

Denca Cabinets

Haile, Bereket & Asia Hagos

Brooks, Jacquelin

Der, Doreen

Hanlon, Patrick

Buick, Byron

Designer's Choice (Lloyd) Ltd.

Harder, Patrick

Alberta Blue Cross Alberta Innovation & Advanced Education

Barr, Darlene Battle River Community Foundation Bauer, Ruby Bayer Inc. Animal Health Division Beckie, Carol Berry, Miles & Evelyn Berry, Shantelle

Bullock, Patricia 88 | Lakeland College 2019-20

Ford, Lance

Harris, Garrett

Kirkland, Cassandra

McCormick, Greg

Harrison, Ben

Kneen, Kagan

McCrae, J C

Hatch, Terri

Knourek, Kristine

McDonald, Judith

Hawes, Leanne

Konan, Solange

McLean Lawrence, Ina

Hermiston, Taylor

Krissa, James & Louise

McNeil, Marie

Hicks, Ashley & Lynda

Lakeland College A.H.T. Club

Midwest Furniture & Appliances

Hickson, Raelean

Lakeland College Alumni Association

Miller, Albert & Florence

Highland Feeders Limited

Lakeland College Staff Association

Miller, Justine

Hill's Pet Nutrition Canada Inc.

Lakeland College Stock Dog Club

Milne, Dale

Hirsch, Glenna

Lakeland College Students Association

Milne, Robert & Sylvia

Hoffman, Michel & Associates, PWM

MNP LLP

Holowaychuk, Hank

Latimer, Don & Jessie and Michelle Latimer

Honeker, Brian

Lemay, Robert & Janet

Moore, Melody

Howell, Darrel & Elizabeth

Lighthouse Mechanical Ltd.

Morgan-Tetz, Delia

Hudson's Snack Shack

Linfoot, Brian

Mortensen, Lola

Huedepohl, Bernie & Shirley

Lions Club of Lloydminster

Musgrave Agencies Real Estate Ltd.

Husky Group of Companies

Lloydminster & District United Way

Naqvi, Kiran & Dabir

ICSI Cable Inc.

Lloydminster Auto Club

Neigum, Dave & Debbie

Ideal Office Solutions

Lloydminster Chamber of Commerce

Nestle Purina PetCare Canada

Inclusion Saskatchewan Inc.

Lloydminster KFC

NKBA Prairie Provinces Chapter

Independent Order of Odd Fellows

Locke, Marjorie

Noralta Technologies Inc.

Intuit Welding Ltd.

Long, Marvin

Janewski, Tim & Mary-Anne

Longworth, Barry & Karren

North American Powertrain Components Ltd.

JBC Operations Ltd.

Loxam, David

Northcott, Barbara

Jenson, Ed

Lundell, Blaire & Linda

Northern Factory Workwear

Johnson Inc.

Lutzak, Don

Nott, John & Doreen

Jones, Barbara

Maidstone Pharmacy Inc.

O'Donnell, Marina

Journault, Albert

Malden, Mike & Val

Olympia Indepth Performance Centre

Juba, Vic & Anna

Manary, Russel

Orriss, Cliff & Bev

Just Kruzin

Manners, Arthur & Lynn

Owchar, Tyrell

Kaai, Wanjiku

Manners, Penny

Pacholik, Jillian

Kardas, Michael & Lynn

Market Master Ltd.

Parsons, Preston

Kasian Architecture Interior Design & Planning Ltd.

Marlin Holdings Ltd.

Pawsey, Douglas & Marilyn

Martinez, Raul & Norma

Pek, Ed & Carol

Katsiris, Jonathan

Marucot, Sixto

Perkins, Bryan & Sharon

Keranda Industrial Supply

Matthews, Robert & Idella

Perma Earth Consulting Ltd.

Kerr, Janet

Mayer, Joel

Pilgaard, Donna

Kevin's Pressure Service Ltd.

Maz Entertainment

Pilgrim, Rhonda

Kick-Ass Hair

McBain, Richard & Joyce

Pincemin, Lorne

Kinsmen Club of Lloydminster

McCarty, Barry & Bev

Prairie Livestock Inc.

Kipling, Donelda & Denis

McCaw, Doreen

Priest, Jade & Lori

Mobile 24 Diesel Tech Inc.

Annual Report | 89

Priest, Margaret

SGS - BioVision Seed Research Limited

Thomi, Andreas & Erika

Princess Auto Foundation Inc.

Sharpe, Robert & Wendy

Tobler, Kelly

Pro-Lift Crane Service Ltd.

Shaw, Don

Traynor, Sandra

Quickstad, Julien

Shiu, Jerome

Treffry, Ellis & Donna

Quwek, Michael

Shorty's Gardens & Greenhouse

Trimble, Wade

Rajotte, Benjamin

Simard, Pierre

True North Technical Ltd.

Ranch & Feedlot Rider Club

Sjerdal, Phillip & April Reeves

Turvey, John

RBC Royal Bank

SKS Enterprises Ltd.

UCG Universal Consulting Group Ltd.

RE/MAX Prairie Realty

Smith, Claire

Van Lent, Josephia

Redhead Equipment

Smith, Randy & Linda

Varga, Darren & Jewel

Reed, Shirley

Smith, Theresa

Vermilion & Area Volunteer Crisis Line

Repsol Oil & Gas Canada Inc.

Smith, Val

Rivera, Ronaldo Robinson, William

Society of Petroleum Engineers Lloydminster

Vermilion & District Chamber of Commerce

Rock Solid Nitrogen Services Ltd.

Solstice Canada Corp.

Vermilion Credit Union

Rock'n "H" Herefords

Somers, Lawrence & Tracey

Vermilion Jr. B Tigers

Rogan, Alan

Southern Shore Construction Ltd.

VetStrategy Alberta Inc.

Ronaghan, Elizabeth

Spenrath, Glenda

Vokins, Doug

Rotary Club of Vermilion

St. Michael Community & District Agricultural Society

Wagner, Ken & Carol

St. Paul Veterinary Clinic Inc.

Warkentin, Rebekah

Stantec Architecture Ltd.

Washington, Stephen

Starko, Austin & Riley Starko

Watson, Ron & Wendy

Royal Canadian Legion, Marshall Br 92

Steinley, Chelsea

Wayside Dental Centre

Ruller, Stacey

Stepanick, Amanda & Jason

Webb, Scott & Bernie

Rutherford Appraisal Group

Symes, Colleen & Mike

Weiler, Todd & Lynette

Rutherford, Ken & Jennifer

Synergy Credit Union, Lloydminster Branch

Werklund, Linda

Royal Canadian Legion Br 39 Royal Canadian Legion No 11 Royal Canadian Legion, Alberta - NWT Command

Ryan, Katie S R A Restaurants Limited Sander, LeeAnn Sapsford, Donald & Mary Lee Saskatchewan Assessment Management Agency

Synergy Credit Union, Maidstone Branch Tally, Dale Tally, Dan Tally, James TD Canada Trust

Schlamp, Jackie

Thalheimer, Clarabell

Schmidt, Agnes

The Alberta Union of Provincial Employees

Schroder, Robert

Vermilion Chrysler Ltd.

Wainwright-Stewart, Dr. Alice

West, Terry Western Canadian Consulting Inc. Wetsch, Michael & Kim Wheaton GMC Buick Cadillac Ltd. Williams, Shirley Williamson, Shelley Wingert, Ryan Wolters, CM

The Bea Fisher Centre Inc.

Yackimec, Orest & Patricia

The Calgary Foundation

Young, Dan

The Child and Youth Care Association of Alberta

Yuzik, Shawn & Heather

Selinger, Lila Senaratne, Chris

The Ed Stelmach Community Foundation

Sexty, George

The Great Canadian Oil Change

Schulhauser, Lindsay Scott, Jan

90 | Lakeland College 2019-20

Annual Report | 91

Vermilion Campus 5707 College Drive Vermilion, Alberta T9X 1K5 Lloydminster Campus 2602 59 Avenue Lloydminster, Alberta T9V 3N7 1.800.661.6490 | lakelandcollege.ca 92 | Lakeland College 2019-20