GreatPlainsCollege
Auditor'sReport
Financial Statements
For the Year Ended June 30, 2015
Statement 2
Great Plains College
Statement of Operations and Accumulated Surplus
for the year ended June 30, 2015
2015
Budget
(Note 15)
Revenues (Schedule 2)
Provincial government
Grants
Other
Federal government
Grants
Other revenue
Contracts
Interest
Rents
Resale items
Tuitions
Donations
Other
Total revenues
$
8,165,012
142,178
2015
Actual
$
8,150,976
187,180
2014
Actual
$
8,133,690
218,584
260,261
289,582
474,663
290,960
17,000
65,500
3,000
2,241,647
154,000
235,502
11,575,060
495,643
24,621
62,064
7,870
2,032,733
73,633
379,836
11,704,138
576,006
26,352
68,375
7,582
1,970,726
164,895
427,127
12,068,000
Expenses (Schedule 3)
General
Skills training
Basic education
University
Services
Scholarships
Development
Total expenses
7,452,828
2,884,541
1,165,969
184,622
766,188
252,000
294,654
13,000,802
7,368,647
2,915,537
1,094,001
216,659
622,796
167,700
276,732
12,662,072
7,143,602
2,909,374
1,148,080
114,317
618,650
216,650
210,337
12,361,010
Deficit for the Year from Operations
(1,425,742)
Accumulated Operating Surplus, Beginning of Year
16,949,664
Accumulated Operating Surplus, End of Year
$
15,523,922
(957,934)
(293,010)
16,928,207
$
15,970,273
The accompanying notes and schedules are an integral part of these financial statements
17,221,217
$
16,928,207
Statement 3
Great Plains College
Statement of Remeasurement Gains and Losses
for the year ended June 30, 2015
2015
Actual
Accumulated Remeasurement Gains, Beginning of Year
$
Unrealized gains attributable to:
Portfolio investments
Amounts reclassified to the statement of operations:
Portfolio investments
Net remeasurement gains for the year
Accumulated Remeasurement Gains, End of Year
$
18,012
2014
Actual
$
-
7,380
19,012
(4,000)
3,380
(1,000)
18,012
21,392
The accompanying notes and schedules are an integral part of these financial statements
$
18,012
Statement 4
Great Plains College
Statement of Changes in Net Financial Assets (Net Debt)
as at June 30, 2015
2015
Budget
(Note 15)
Net Financial Assets, Beginning of Year
$
Deficit for the Year from Operations
Acquisition of tangible capital assets
Amortization of tangible capital assets
Use of prepaid expenses
Net Remeasurement Gains
2,651,945
$
$
1,949,288
(957,934)
(600,231)
1,227,454
2,147
(293,010)
(359,172)
1,311,879
24,948
(292,242)
(328,564)
684,645
3,380
(292,242)
$
2,651,945
2014
Actual
(1,425,742)
(170,000)
1,290,000
13,500
-
Change in Net Financial Assets
Net Financial Assets, End of Year
2015
Actual
2,359,703
18,012
(325,184)
$
The accompanying notes and schedules are an integral part of these financial statements
2,326,761
702,657
$
2,651,945
Statement 5
Great Plains College
Statement of Cash Flows
for the year ended June 30, 2015
2015
Operating Activities
Deficit for the year from operations
Non-cash items included in deficit
Amortization of tangible capital assets
Changes in non-cash working capital
Decrease (increase) in accounts receivable
Decrease (increase) in inventories for resale
(Decrease) increase in accrued salaries and benefits
(Decrease) increase in accounts payable and accrued liabilities
Increase in deferred revenue
Increase in employee future benefits
Decrease in prepaid expenses
Cash Provided by Operating Activities
$
Capital Activities
Cash used to acquire tangible capital assets
Investing Activities
Cash used to acquire portfolio investments
Increase in Cash and Cash Equivalents
Cash and Cash Equivalents, Beginning of Year
Cash and Cash Equivalents, End of Year
$
The accompanying notes and schedules are an integral part of these financial statements
(957,934)
2014
$
(293,010)
1,227,454
1,311,879
1,113,000
(13,955)
20,093
(707,402)
88,357
10,900
2,147
782,660
(369,711)
4,385
(125,030)
547,151
7,010
10,500
24,948
1,118,122
600,231
359,172
14,000
178,195
168,429
580,755
2,004,785
1,424,030
2,173,214
$
2,004,785
Schedule 1
Great Plains College
Schedule of Revenues and Expenses by Function
for the year ended June 30, 2015
2015 Actual
Skills Training
Basic Education
General
Credit
Revenues (Schedule 2)
Provincial government
Federal government
Other
Total Revenues
$ 5,192,700
212,787
5,405,487
$ 1,828,085
1,889,213
3,717,298
Expenses (Schedule 3)
Agency contracts
Amortization
Equipment
Facilities
Information technology
Operating
Personal services
Total Expenses
14,694
1,227,454
221,452
465,222
245,757
1,065,545
4,128,523
7,368,647
1,095,724
4,065
7,092
139,238
1,456,260
2,702,379
Surplus (Deficit)
for the year
$ (1,963,160)
$ 1,014,919
Non-credit
$
210,091
210,091
Credit
$
27,553
97,808
18,991
68,806
213,158
$ (3,067)
701,461
350,582
1,052,043
Non-credit
$
1,000
15,630
568,931
585,561
$
466,482
461,853
289,582
1,164
752,599
13,723
3,291
81,038
410,388
508,440
$
244,159
2015
Services
Learner
Support
Counsel
$
37,057
66,388
103,445
4,906
752
259,565
265,223
$
University
Scholarships
Total
Actual
Credit
-
$
264,851
264,851
5,006
352,567
357,573
191,923
1,517
18,962
4,257
216,659
$ (161,778) $ (357,573)
$ 48,192
$
117,000
77,633
194,633
$
167,700
167,700
$
26,933
2015
2014
Budget
(Note 15)
Actual
Development
$
3,691
3,691
$ 8,338,156
289,582
3,076,400
11,704,138
26,603
250,129
276,732
1,349,523
1,227,454
323,325
477,122
245,757
1,539,465
7,499,426
12,662,072
(273,041)
$
(957,934)
$
8,307,190
260,261
3,007,609
11,575,060
$ 8,352,274
474,663
3,241,063
12,068,000
1,414,405
1,290,000
255,750
509,669
175,500
1,807,605
7,547,873
13,000,802
1,439,162
1,311,879
235,661
507,973
154,762
1,592,537
7,119,036
12,361,010
$ (1,425,742)
$
(293,010)
Schedule 2
Great Plains College
Schedule of Revenues by Function
for the year ended June 30, 2015
2015 Revenues Actual
Basic Education
Services
Learner
Credit
Non-credit
Support
Counsel
Skills Training
General
Credit
Provincial Government
Advanced Education/
Economy
Operating grants
Program grants
Capital grants
Other
Other provincial
Total Provincial
Federal Government
Program grants
Other Revenue
Contracts
Interest
Rents
Resale items
Tuitions
Donations
Other
Total Other
Total Revenues
Non-credit
$
-
$
601,077
601,077
601,077
100,384
$
425,029
425,029
425,029
36,824
$
37,057
37,057
37,057
-
$
$
1,784,613
1,784,613
1,784,613
43,472
5,192,700
1,828,085
-
701,461
461,853
37,057
-
-
-
-
-
-
289,582
-
-
20,621
62,064
7,870
122,232
147,336
1,686,917
54,960
1,910
198,181
10,000
346,397
4,185
1,164
66,388
212,787
1,889,213
210,091
350,582
1,164
66,388
$5,405,487
$3,717,298
#######
$1,052,043
$ 752,599
$ 103,445
-
Scholarships
Development
$
$
Credit
$5,039,200
147,000
5,186,200
5,186,200
6,500
$
-
University
$
-
-
$ 5,039,200
2,847,776
147,000
8,033,976
117,000
8,150,976
187,180
117,000
-
-
-
-
147,635
117,216
-
264,851
$ 264,851
$
117,000
117,000
-
2015
Total
Revenues
Actual
2015
Total
Revenues
Budget
(Note 15)
5,027,000
3,001,012
20,000
8,048,012
117,000
8,165,012
142,178
$ 4,953,200
3,043,490
20,000
8,016,690
117,000
8,133,690
218,584
8,338,156
8,307,190
8,352,274
-
289,582
260,261
474,663
4,000
73,633
-
3,691
495,643
24,621
62,064
7,870
2,032,733
73,633
379,836
290,960
17,000
65,500
3,000
2,241,647
154,000
235,502
576,006
26,352
68,375
7,582
1,970,726
164,895
427,127
77,633
3,691
3,076,400
3,007,609
3,241,063
3,691
$ 11,704,138
$ 11,575,060
$ 12,068,000
194,633
$
$
2014
Total
Revenues
Actual
Schedule 3
Great Plains College
Schedule of Expenses by Function
for the year ended June 30, 2015
2015 Expenses Actual
Basic Education
Services
Learner
Credit
Non-credit
Support
Counsel
Skills Training
General
(Schedule 4)
Agency Contracts
Contracts
Instructors
Amortization
Equipment
Equipment (non-capital)
Rental
Repairs and maintenance
Vehicle Lease
Facilities
Building supplies
Grounds
Janitorial
Rental
Repairs & maintenance buildings
Utilities
Information Technology
Computer services
Data communications
Equipment (non-capital)
Materials & supplies
Repairs & maintenance
Software (non-capital)
Operating
Advertising
Association fees & dues
Bad debts
Financial services
In-service (includes PD)
Insurance
Materials & supplies
Postage, freight & courier
Printing & copying
Professional services
Subscriptions
Telephone & fax
Travel
Other
Personal Services
Employee benefits
Honoraria
Salaries
Other
Total Expenses
$
Credit
Non-credit
14,694
14,694
$ 905,503
190,221
1,095,724
$ 14,446
13,107
27,553
1,227,454
-
33,237
78,513
19,209
90,493
221,452
$
1,000
1,000
$ 12,405
1,318
13,723
-
-
-
1,332
2,165
568
4,065
96,692
1,116
97,808
-
10,121
6,638
78,588
72,645
88,318
208,912
465,222
7,092
7,092
-
85,059
6,331
108,225
24,504
2,556
19,082
245,757
-
217,173
56,267
10,147
31,008
93,436
76,831
106,389
38,453
25,752
208,666
8,172
77,390
97,178
18,683
1,065,545
$
4,906
4,906
$
University
Scholarships
Development
$
$
Credit
-
$ 191,923
191,923
-
-
-
-
-
-
-
3,291
3,291
-
-
-
-
269
2,340
124
90,265
295
109
45,836
139,238
151
2,636
5,612
102
10,490
18,991
159
13,215
42
233
1,981
15,630
642,526
22,373
3,452,724
10,900
4,128,523
177,796
1,278,464
1,456,260
9,201
59,605
68,806
$ 7,368,647
$ 2,702,379
$ 213,158
-
$ 1,144,877
204,646
1,349,523
-
-
-
-
-
1,517
1,517
-
-
892
755
14,110
52,002
3,098
369
70
237
9,505
81,038
558
20
174
752
48,844
520,087
568,931
41,995
368,393
410,388
$ 585,561
$ 508,440
2015
Total
Expenses
Budget
(Note 15)
$ 1,076,487
362,675
1,439,162
1,227,454
1,290,000
1,311,879
-
34,569
177,370
20,893
90,493
323,325
44,600
118,400
19,250
73,500
255,750
77,278
99,913
4,487
53,983
235,661
-
-
10,121
6,638
78,588
84,545
88,318
208,912
477,122
16,750
14,500
88,500
99,099
79,000
211,820
509,669
17,678
25,322
83,460
87,924
65,650
227,939
507,973
-
-
-
85,059
6,331
108,225
24,504
2,556
19,082
245,757
79,500
5,000
50,000
13,000
8,000
20,000
175,500
59,655
5,375
53,778
17,775
3,474
14,705
154,762
37
851
4,118
5,006
14,865
3,901
196
18,962
167,700
167,700
4,044
900
9,281
177
1,886
7,088
654
2,573
26,603
237,394
60,262
10,147
31,008
107,705
79,591
281,260
42,065
28,109
215,754
8,584
79,152
172,051
186,383
1,539,465
262,400
69,290
5,000
32,600
177,750
68,240
311,753
43,700
28,050
249,800
8,022
93,030
201,331
256,639
1,807,605
242,583
94,088
4,588
34,546
126,723
66,196
277,457
33,079
24,970
181,468
6,567
87,764
194,704
217,804
1,592,537
43,846
215,719
259,565
53,006
299,561
352,567
1,286
2,971
4,257
-
42,781
207,348
250,129
1,061,281
22,373
6,404,872
10,900
7,499,426
1,072,668
29,750
6,404,205
41,250
7,547,873
978,981
24,910
6,062,976
52,169
7,119,036
$ 265,223
$ 357,573
$ 216,659
276,732
$ 12,662,072
$ 13,000,802
$ 12,361,010
167,700
$
$
2014
Total
Expenses
Actual
1,120,845
293,560
1,414,405
$
-
2015
Total
Expenses
Actual
Schedule 4
Great Plains College
Schedule of General Expenses by Functional Area
for the year ended June 30, 2015
Governance
Agency Contracts
Contracts
Instructors
$
Amortization
Equipment
Equipment (non-capital)
Rental
Repairs and maintenance
Facilities
Building supplies
Grounds
Janitorial
Rental
Repairs & maintenance
Utilities
Information Technology
Computer services
Data communications
Equipment (non-capital)
Materials & supplies
Repairs & maintenance
Software (non-capital)
Operating
Advertising
Association fees & dues
Bad debts
Financial services
In-service (includes PD)
Insurance
Materials & supplies
Postage, freight & courier
Printing & copying
Professional services
Subscriptions
Telephone & fax
Travel
Other
Personal Services
Employee benefits
Honoraria
Salaries
Other
Total General Expenses
$
-
2015 General Actual
Operating
Facilities
and
and
Administration
Equipment
Information
Technology
$
$
13,839
13,839
$
855
855
-
2015
Total
General
Actual
$
14,694
14,694
2015
Total
General
Budget
(Note 15)
$
12,715
6,000
18,715
2014
Total
General
Actual
$
13,304
3,304
16,608
-
1,227,454
-
-
1,227,454
1,290,000
1,311,879
-
9,244
76,301
14,166
99,711
23,993
92,705
5,043
121,741
-
33,237
169,006
19,209
221,452
30,500
147,900
9,250
187,650
61,390
127,261
3,889
192,540
-
5,583
80
5,663
10,121
6,638
78,588
67,062
88,238
208,912
459,559
-
10,121
6,638
78,588
72,645
88,318
208,912
465,222
16,750
14,500
88,500
73,300
79,000
211,820
483,870
17,678
25,322
83,460
71,775
65,650
227,939
491,824
-
60,927
60,927
-
24,132
6,331
108,225
24,504
2,556
19,082
184,830
85,059
6,331
108,225
24,504
2,556
19,082
245,757
79,500
5,000
50,000
13,000
8,000
20,000
175,500
59,655
5,375
53,778
17,775
3,474
14,705
154,762
3,130
21,317
10,147
3,546
15,999
5,198
8,920
15,894
84,151
214,043
24,355
31,008
89,890
124
99,830
38,453
25,514
199,746
8,172
13,800
75,760
18,683
839,378
60,708
1,128
238
61,511
1,663
125,248
10,595
233
2,079
3,861
16,768
217,173
56,267
10,147
31,008
93,436
76,831
106,389
38,453
25,752
208,666
8,172
77,390
97,178
18,683
1,065,545
247,500
64,390
5,000
32,600
169,800
68,240
136,375
39,150
27,050
242,300
8,022
90,580
116,100
2,000
1,249,107
201,056
89,790
4,588
34,546
116,979
65,591
125,694
28,809
24,022
167,855
6,186
86,461
106,833
1,154
1,059,564
161
10,123
3
10,287
572,720
12,250
3,075,617
10,900
3,671,487
33,535
172,995
206,530
36,110
204,109
240,219
642,526
22,373
3,452,724
10,900
4,128,523
643,176
29,250
3,375,560
4,047,986
592,746
24,910
3,288,269
10,500
3,916,425
441,817
$ 7,368,647
7,452,828
$ 7,143,602
94,438
$
5,918,459
$
913,933
$
$
GREAT PLAINS COLLEGE
Notes to the Financial Statements
For the year ended June 30, 2015
1. PURPOSE AND AUTHORITY
Great Plains College (the College) was established by Saskatchewan Order-inCouncil 465/2008 and 466/2008 dated June 27, 2008. It was created as a merger of
Cypress Hills Regional College and Prairie West Regional College and included all
liabilities and assets of the two former Colleges as of July 1, 2008.
The College offers educational services and programs under the authority of Section
14 of The Regional Colleges Act. The College Board of Governors plays an integral
part in strategic direction and management guidance.
The purpose of the College is to provide credit and non-credit classroom and
vocational training to meet the needs of regional constituents and industry. The
College is exempt from the payment of income tax.
2.
SIGNIFICANT ACCOUNTING POLICIES
Public Sector Accounting (PSA) Standards
As a government non-for-profit organization, the College prepared these financial
statements in accordance with CPA Canada Public Sector Accounting (PSA)
standards.
Significant aspects of the accounting policies adopted by the College are as follows:
(a) College Reporting Entity
The financial statements include all of the assets, liabilities, revenues and
expenses of the College reporting entity.
(b) Measurement Uncertainty and the Use of Estimates
The preparation of financial statements in conformity with PSA standards requires
management to make estimates and assumptions that affect the reported amount
of assets and liabilities and disclosure of contingent assets and liabilities at the
date of the financial statements, and the reported amounts of revenues and
expenses during the year. Uncertainty in the determination of the amount at which
an item is recognized or disclosed in financial statements is known as
measurement uncertainty. Such uncertainty exists when there is a variance
between the recognized or disclosed amount and another reasonably possible
amount.
Measurement uncertainty that may be material to these financial statements exists
for:


the liability for employee future benefits of $204,800 (June 30, 2014 $193,900) because actual experience may differ significantly from
actuarial or historical estimations and assumptions and
other significant areas requiring the use of estimates includes the
determination of the collectible amount of accounts receivable, the useful
lives of tangible capital assets for amortization purposes, and the amounts
recorded as accrued liabilities.
These estimates and assumptions are reviewed periodically and, as adjustments
become necessary, they are reported in earnings in the periods in which they
become known. While best estimates are used for reporting items subject to
measurement uncertainty, it is reasonably possible that changes in future
conditions, occurring within one fiscal year, could require a material change in the
amounts recognized or disclosed.
(c) Financial Instruments
Financial instruments create rights and obligations to receive or deliver economic
benefits. Financial instruments include cash and cash equivalents, portfolio
investments, accounts receivable, accrued salaries and benefits and accounts
payable and accrued liabilities.
Financial instruments are assigned to one of two measurement categories: fair
value, or cost or amortized cost.
i)
Fair Value
Fair value measurement applies to portfolio investments in equity
instruments that are quoted in an active market.
ii)
Cost or Amortized Cost
All other financial assets and financial liabilities are measured at cost or
amortized cost. Transaction costs are a component of cost for financial
instruments measured using cost or amortized cost. Receivables are
measured at amortized costs. Due to their short-term nature, the amortized
cost of these instruments approximates their fair value.
(d) Financial Assets
Financial assets are assets that could be used to discharge existing liabilities or
finance future operations and are not for consumption in the normal course of
operations. Valuation allowances are used where considered necessary to reduce
the amounts reported for financial assets to their net realizable value.
Cash and Cash Equivalents consist of cash, bank deposits and highly liquid
investments with initial maturity terms of three months or less and held for the
purpose of meeting short-term operating cash commitments rather than for
investing purposes.
Accounts Receivable are shown net of allowance for doubtful accounts to reflect
their expected net recoverable value. Valuation allowances are recorded where
recovery is considered uncertain. Changes in valuation allowances are recorded in
the statement of operations.
Inventories for Resale consist of books and materials which are held for sale in
the ordinary course of operations and are valued at the lower of cost and net
realizable value. Cost is determined by the average cost method. Net realizable
value is the estimated selling price in the ordinary course of business.
Portfolio Investments consist of mutual funds held for endowment purposes.
Investments quoted in an active market are reported at fair value, and any
associated transaction costs are expensed upon initial recognition. Gains and
losses on portfolio investments measured at fair value are recorded in
accumulated surplus as remeasurement gains and losses until realized. Upon
disposition of the investments, the cumulative remeasurement gains and losses are
reclassified to the statement of operations.
(e) Liabilities
Liabilities are present obligations arising from transactions and events occurring
prior to year end, which will be satisfied in the future through the use of assets or
another form of economic settlement.
Accrued Salaries and Benefits represents salaries and benefits owing to or on
behalf of work performed by employees, but not yet paid, at the end of the fiscal
period. Amounts are payable within one year.
Accounts Payable and Accrued Liabilities include accounts payable and
accrued liabilities owing to third parties for goods supplied and services rendered,
but not yet paid, at the end of the fiscal period. Amounts are payable within one
year.
Deferred revenue from government transfers represents restricted grants with
stipulations that give rise to a liability. The revenue is recognized as the
stipulation liabilities are settled. Deferred revenue from non-government sources
represents revenue related to fees or services received in advance of the fee being
earned or the services being performed, and other contributions for which the
contributor has placed restrictions on the use of the resources. Tuition and fee
revenue is recognized as the course is delivered, revenue from contractual
services is recognized as the services are delivered, and revenue from other
contributions is recognized in the fiscal year in which the resources are used for
the purpose specified.
Liability for Employee Future Benefits represents non-vesting sick leave
benefits that accrue to the College's employees. The cost of these benefits is
recorded as the benefits are earned by employees. The liability relating to these
benefits is actuarially determined using the projected benefit method pro-rated on
service and management’s best estimate of expected sick leave usage, discount
rate, inflation, salary escalation, termination and retirement rates and mortality.
Actuarial gains and losses are amortized on a straight line basis over the expected
average remaining service life of the related employee groups. Actuarial
valuations are performed periodically. Extrapolations of these valuations are
made when a valuation is not done in the current fiscal year.
(f) Non-Financial Assets
Non-financial assets are assets held for consumption in the provision of services.
These assets do not normally provide resources to discharge the liabilities of the
College unless they are sold.
Tangible Capital Assets have useful lives extending beyond the accounting
period, are used by the College to provide services to the public and are not
intended for sale in the ordinary course of operations. Tangible capital assets are
recorded at cost and include all costs directly attributable to the acquisition,
design, construction, development, installation and betterment of the tangible
capital asset. The College does not capitalize interest incurred while a tangible
capital asset is under construction. Contributed tangible capital assets are recorded
at their fair value at the date of receipt.
The cost of depreciable tangible capital assets, net of any residual value, is
amortized on a straight line basis over their estimated useful lives as follows:
Buildings
Office Furniture
Paving Lots
Office Equipment
Machinery
Computer Equipment
Leasehold Improvements
System Development
20 years
10 years
5 years
5 years
5 years
3 years
Term of lease
5 years
Write-downs are accounted for as expenses in the statement of operations.
Prepaid Expenses are prepaid amounts for goods or services and include prepaid
facility leases which will provide economic benefits in one or more future
periods. The prepaid amount is recognized as an expense in the year the goods or
services are consumed.
(g) Employee Pension Plans
Multi-Employer Defined Benefit Plans
The College’s employees participate in one of the following multi-employer
defined benefit plans:
i)
Teachers and other employees holding a teaching certificate participate in
either the retirement plan of the Saskatchewan Teachers’ Retirement Plan
(STRP) or Saskatchewan Teachers’ Superannuation Plan (STSP). The
ii)
College’s obligation for these plans is limited to collecting and remitting
contributions of the employees at rates determined by the plans.
All other employees participate in the Municipal Employees’ Pension Plan
(MEPP). In accordance with PSA standards, the plan is accounted for as a
defined contribution plan whereby the College’s contributions are
expensed when due.
(h) Revenue Recognition
Revenues are recorded on the accrual basis. Revenues are recognized in the period in
which the transactions or events occurred that gave rise to the revenues, provided the
amount to be received can be reasonably estimated and collection is reasonably
assured.
The College’s major sources of revenue include the following:
i)
Government Transfers (Grants)
Grants from governments are considered to be government transfers.
Government transfers are recognized as revenues when the transfer is
authorized, all eligibility criteria have been met, the amount can be
estimated, and collection is reasonably assured except when, and to the
extent, stipulations by the transferor give rise to an obligation that meets
the definition of a liability.
ii)
Fees and Services
Revenues from tuition fees and other services are recognized in the year they
are earned. Amounts that are restricted pursuant to legislation, regulation or
agreements with external parties that may only be used in the conduct of
certain programs or in the delivery of specific services and transactions are
initially recorded as deferred revenue and subsequently recognized as
revenue in the fiscal year the related expenses are incurred or services are
performed.
iii)
Interest Income
Interest is recognized on an accrual basis when it is earned.
iv)
Other (Non-Government Transfer) Contributions
Unrestricted contributions are recognized 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. Externally
restricted contributions are contributions for which the contributor has
placed restrictions on the use of the resources. Externally restricted
contributions are deferred until the resources are used for the purpose
specified, at which time the contributions are recognized as revenue. Inkind contributions are recorded at their fair value when they are received.
(i) Expenses
Expenses are reported on an accrual basis. The cost of all goods consumed and
services received during the year is expensed.
(j) Adoption of New Accounting Policy
On July 1, 2014, Great Plains College adopted Public Sector Accounting Board
standard PS 3260 Liability for Contaminated Sites. This section establishes
standards on how to account for and report a liability associated with the
remediation of contaminated sites. Contaminated sites are a result of
contamination being introduced into air, soil, water or sediment of a chemical,
organic or radioactive material or live organism that exceeds the maximum
acceptable concentrations under an environmental standard. The standard
requires the recognition of a liability for the remediation of contaminated sites in
the financial statements when the recognition criteria outlined in the standard is
met.
The adoption of PS 3260 has not resulted in any changes to the measurement and
recognition of liabilities in Great Plains College’s 2015 financial statements.
3. CASH AND CASH EQUIVALENTS
Due to the short-term nature of the investments, market value of cash and cash
equivalents approximates cost.
June 30
2015
June 30
2014
Cash and bank deposits
$ 2,173,214 $ 2,004,785
Cash and cash equivalents
$ 2,173,214 $ 2,004,785
4. ACCOUNTS RECEIVABLE
All accounts receivable presented on the statement of financial position are net of any
valuation allowances for doubtful accounts.
June 30
2014
June 30
2015
Provincial government:
Advanced Education/Economy
$
Other
Federal government
Other receivables
Accounts receivable, net of allowances
7,239 $
468,758
$
694,072
518,681
87,818
154,997
224,054
533,120
787,869 $
1,900,870
5. INVENTORIES FOR RESALE
June 30
2015
Book and materials for resale
$
85,560 $
June 30
2014
71,605
6. PORTFOLIO INVESTMENTS
Endowment funds are permanently restricted assets, the principal of which is
protected, and the income from which is restricted by the Board of Governors.
Unrealized gains and losses are recognized in the statement of remeasurement gains
and losses. Upon settlement, the cumulative gain or loss is reclassified from the
statement of remeasurement gains and losses and recognized in the statement of
operations.
June 30
2015
Cost
Fair Value
Portfolio investments in the fair value category:
Mutual Funds - Loran Endowment Fund
Signature Diversified Yield II Fund Class A
CI Signature High Income Fund
Portfolio Series Income Fund
Manulife Bank Investment Savings
Sentry Conservative Balanced Income Fund
Cash
$
92,195
$
$
Mutual Funds - Blanchard Endowment Fund
Signature Diversified Yield II Fund Class A
CI Signature High Income Fund
Portfolio Series Income Fund
Manulife Bank Investment Savings
Sentry Conservative Balanced Income Fund
Cash
$
92,195 $
100,000
Total portfolio investments reported at fair value
Accrued employee benefits
Accrued salaries and benefits
$
192,195 $
213,587 $
398,008 $
(1,327)
$
396,681 $
June 30
2014
377,434
(846)
376,588
8. ACCOUNTS PAYABLE AND ACCRUED LIABILITIES
June 30
2015
Ministries of Advanced Education/Economy
$
School Divisions
Regional Colleges
13,058 $
June 30
2014
418,920
9,002
19,250
770
9,484
Other Provincial
4,891
60,567
Federal Government
6,826
166,469
Sask Polytechnic
7,418
Western Trade Training Institute
-
Other
Accounts payable and accrued liabilities
$
100,000
100,000 $
June 30
2015
$
78,195
$
7. ACCRUED SALARIES AND BENEFITS
Accrued salaries & vacation pay
$
21,673
33,583
19,559
17,733
8,524
101,071 $
$
23,344
36,007
21,560
19,421
12,183
112,516 $
$
-
154,458
229,135
196,423 $
903,825
June 30
2014
Cost
Fair Value
$
78,195 $
$
18,432
28,736
16,678
5,076
15,387
640
84,949
100,000 $
23,170
36,733
21,223
9,390
19,926
815
111,257
178,195 $
196,206
9. DEFERRED REVENUE
June 30
2015
Tuitions & deposits
Other
Deferred revenue
$
$
June 30
2014
131,565 $
4,000
135,565 $
47,208
47,208
10. LIABILITY FOR EMPLOYEE FUTURE BENEFITS
The College provides certain post-employment, compensated absence and
termination benefits to its employees. These benefits include accumulating nonvested sick leave. The liability associated with these benefits is calculated as the
present value of expected future payments pro-rated for service and is recorded as
Liability for Employee Future Benefits in the statement of financial position.
Details of the employee future benefits are as follows:
Actuarial valuation date
Long-term assumptions used:
Salary escalation rate (percentage)
Discount rate (percentage)
Expected average remaining service life (years)
June 30
2015
June 30
2014
30-Jun-12
30-Jun-12
1.75%
2.80%
11.9
1.50%
2.80%
11.9
June 30
2015
Liability for Employee Future Benefits
Accrued Benefit Obligation - beginning of year
Current period benefit cost
Interest cost
Benefit payments
Actuarial gains / losses
$ 193,900 $ 186,400
34,200
33,700
5,600
5,300
(29,200)
(28,800)
3,800
-
Accrued Benefit Obligation - end of year
Unamortized Net Actuarial Gains / Losses
Liability for Employee Future Benefits
208,300
(3,500)
$ 193,900
June 30
2015
June 30
2014
$
Benefit cost
Interest cost on unfunded employee future benefits obligation
Total Employee Future Benefits Expense
196,600
(2,700)
$ 204,800
Employee Future Benefits Expense
Current period benefit cost
Amortization of net actuarial gain / loss
June 30
2014
$
34,200 $
300
33,700
300
34,500
5,600
40,100 $
34,000
5,300
39,300
11. TANGIBLE CAPITAL ASSETS
Land
Buildings
Paving Lot
Leasehold
Improv
Office
Computer
Furniture Office Equip Equip
Machinery
System
Develop
2015
2014
Tangible Capital Assets - at Cost:
Opening Balance at Start of Year
$ 168,550 $ 18,602,491 $ 482,422 $ 799,989 $ 314,818 $ 174,769 $ 326,666 $ 700,295 $ 303,721 $ 21,873,721 $ 21,514,549
Additions/Purchases
Closing Balance at End of Year
168,550
14,681
72,949
19,115,093
512,602
482,422
-
799,989
-
314,818
-
174,769
-
341,347
773,244
303,721
-
600,232
359,172
22,473,953
21,873,721
Tangible Capital Assets - Amortization:
Opening Balance at Start of Year
-
5,223,472
480,034
714,431
180,333
137,587
312,179
385,178
182,233
7,615,447
6,303,568
Amortization of the Period
-
922,432
2,388
42,779
29,191
25,846
16,056
128,019
60,744
1,227,455
1,311,879
Closing Balance at End of Year
-
6,145,904
482,422
757,210
209,524
163,433
328,235
513,197
242,977
8,842,902
7,615,447
2,388
85,558
134,485
37,182
14,487
315,117
121,488
14,258,274
15,210,981
-
42,779
105,294
11,336
13,112
260,047
60,744
13,631,051
14,258,274
(2,388)
(42,779)
(29,191)
(25,846)
(1,375)
(55,070)
(60,744)
(627,223)
(952,707)
Net Book Value:
Opening Balance at Start of Year
168,550
13,379,019
Closing Balance at End of Year
168,550
12,969,189
Change in Net Book Value
-
(409,830)
12. PREPAID EXPENSES
The College entered into an agreement with Prairie Spirit School Division for the
Warman facility in the high school. In March 2007, an initial lease payment of
$135,000 was paid to the School Division. The agreement provides for a refund of a
portion of the initial lease payment should the College vacate the facility and its
presence in the Town of Warman during the first ten years of the lease. The initial
lease amount to be refunded is reduced at the rate of $13,500 for each year the college
occupies the facility to a maximum of ten years.
June 30
2015
Prairie Spirit School Division - Long term operating Lease
$
Other prepaid expenses - current
Total Prepaid expenses
$
9,000 $
June 30
2014
22,500
24,853
13,500
33,853 $
36,000
Future lease expense for the Warman facility is as follows:
2016
2017
Future lease expense
Less current portion
Long term portion
13,500
9,000
22,500
13,500
$ 9,000
13. EMPLOYEE PENSION PLANS
Multi-Employer Defined Benefit Plans
Information on the multi-employer pension plans to which the College contributes is
as follows:
i) Saskatchewan Teachers’ Retirement Plan (STRP) or Saskatchewan Teachers’
Superannuation Plan (STSP):
The STRP and STSP provide retirement benefits based on length of service and
pensionable earnings.
The STRP and STSP are funded by contributions by the participating employee
members and the Government of Saskatchewan. The College’s obligation to the
STRP and STSP is limited to collecting and remitting contributions of the
employees at rates determined by the plans. Accordingly, these financial
statements do not include any expense for employer contributions to these plans.
Net pension assets or liabilities for these plans are not reflected in these financial
statements as ultimate responsibility for retirement benefits rests with the
Saskatchewan Teachers’ Federation for the STRP and with the Government of
Saskatchewan for the STSP.
Details of the contributions to these plans for the College’s employees are as
follows:
STRP
Number of active College members
STRP Member contribution rate (percentage of salary)
STSP Member contribution rate (percentage of salary)
Member contributions for the year
9
9.72%
$
57,777 $
2015
STSP
TOTAL
1
10
6.70%
5,238 $
63,015
2014
TOTAL
9
8.50%
6.70%
$ 48,148
ii) Municipal Employees’ Pension Plan (MEPP)
The MEPP provides retirement benefits based on length of service and
pensionable earnings.
The MEPP is funded by employer and employee contributions at rates set by the
Municipal Employees’ Pension Commission.
Every three years, an actuarial valuation is performed to assess the financial
position of the plan and the adequacy of plan funding. Any actuarially
determined deficiency is the responsibility of the participating employers and
employees which could affect future contribution rates and/or benefits.
The contributions to the MEPP by the participating employers are not segregated
in separate accounts or restricted to provide benefits to the employees of a
particular employer. As a result, individual employers are not able to identify
their share of the underlying assets and liabilities, and the net pension assets or
liabilities for this plan are not recognized in these financial statements. In
accordance with PSA standards, the plan is accounted for as a defined
contribution plan whereby the College’s contributions are expensed when due.
Details of the MEPP are as follows:
Number of active College members
Member contribution rate (percentage of salary)
College contribution rate (percentage of salary)
Member contributions for the year
College contributions for the year
2015
2014
94
99
8.15%
8.15%
8.15%
8.15%
$
402,840 $
384,051
$
402,840 $
376,650
14. RISK MANAGEMENT
The College is exposed to financial risks from its financial assets and liabilities.
These risks include credit risk, liquidity risk and market risk (consisting of interest
rate risk and foreign exchange risk).
i) Credit Risk
Credit risk is the risk to the College from potential non-payment of accounts
receivable. The credit risk related to the College's receivables from the provincial
government, federal government and their agencies are considered to be minimal.
The College does not have a significant exposure to any individual customer.
Management reviews accounts receivable on a case by case basis to determine if a
valuation allowance is necessary to reflect impairment in collectability.
The aging of accounts receivable at June 30, 2015 and June 30, 2014 was:
June 30, 2015
Accounts
Receivable
Current
61-90 days
91-120 days
Over 121 days
Total
Net
$
$
Allowance of
Doubtful
Accounts
755,159 $
16,752
1,998
25,078
798,987 $
$
June 30, 2014
Accounts
Receivable
Allowance of
Doubtful
Accounts
$ 1,825,028 $
35,297
4,520
11,118
40,613
4,588
11,118 $ 1,905,458 $
4,588
787,869
$ 1,900,870
ii) Liquidity Risk
Liquidity risk is the risk that the College will not be able to meet its financial
obligations as they come due. The College manages liquidity risk by maintaining
adequate cash balances and continual monitoring of annual budgeting and
trimester forecasting. The following table sets out the contractual maturities of the
College’s financial liabilities:
June 30, 2015
Within
6 months
Accrued salaries and benefits
$
Accounts payable and accrued liabilities
Total
$
80,565 $
196,423
276,988 $
6 months
to 1 year
316,116 $
316,116 $
1 to 5 years
> 5 years
- $
- $
-
iii) Market Risk
The College is exposed to market risks with respect to interest rates and foreign
currency exchange rates, as follows:
Interest Rate Risk:
Interest rate risk is the risk that the fair value or future cash flows of a financial
instrument will fluctuate because of changes in market interest rates. The
College’s interest rate exposure relates to cash and cash equivalents. The College
also has an authorized bank line of credit of $400,000 with interest payable
monthly at a rate of prime minus 0.60%. Changes in the bank's prime rate can
cause fluctuation in interest payments and cash flows. There was no balance
outstanding on this credit facility as of June 30, 2015.
Foreign Currency Risk:
Foreign currency risk is the risk that the fair value or future cash flows of a
financial instrument will fluctuate because of changes in foreign exchange rates.
The College is exposed to currency risk on purchases denominated in U.S. dollars
for which the related accounts payable balances are subject to exchange rate
fluctuations; however, this risk is minimal as the College does not make a
significant amount of purchases denominated on a foreign currency. The College
did not have any financial instruments denominated in foreign currency
outstanding at June 30, 2015 or June 30, 2014.
15. BUDGET FIGURES
Budget figures included in the financial statements were approved by the Board of
Governors on April 22, 2014 and the Minister of Advanced Education on July 15,
2014.
16. RELATED PARTIES
These financial statements include transactions with related parties. The College is
related to all Government of Saskatchewan ministries, agencies, boards, school
divisions, health authorities, colleges and crown corporations under the common
control of the Government of Saskatchewan. The College is also related to nonCrown enterprises that the Government jointly controls or significantly influences. In
addition, the College is related to other non-Government organizations by virtue of its
economic interest in these organizations.
Related Party Transactions:
Transactions with these related parties are in the normal course of operations. The
recorded amounts resulting from these transactions are included in the financial
statements and the table below.
June 30
2015
Revenues:
Ministry of Advanced Education/Economy/Finance
School Divisions
Association Of Sask Regional Colleges
Regional Health Authorities
Saskatchewan Polytechnic
Government Business Enterprise
Sask Apprenticeship and Trade
University of Regina
Regional Colleges
$
$
Expenses:
Saskatchewan Polytechnic
University of Regina
Government Business Enterprise
Ministry of Central Services
Regional Colleges
School Divisions
Western Trade Training Institute
Regional Health Authorities
Tourism Saskatchewan
$
$
June 30
2014
8,150,976 $
357,199
125,426
88,405
73,571
52,195
43,752
26,800
9,794
8,928,118 $
8,133,690
455,917
238,226
41,621
53,399
30,791
46,426
60,489
200
9,060,759
746,940 $
166,502
161,701
120,559
85,096
68,130
50,920
7,033
1,406,881 $
804,539
1,820
241,217
77,583
25,622
67,858
49,325
7,362
3,413
1,278,739
In addition, the College pays Provincial Sales Tax to the Saskatchewan Ministry of
Finance on all its taxable purchases and customer sales on items that are deemed
taxable. Taxes paid are recorded as part of the cost of those purchases.
The College receives long distance telephone service between major centres from
SaskTel, a related party, at reduced rates available to Government agencies.
17. CONTRACTUAL OBLIGATIONS AND COMMITMENTS
Significant contractual obligations and commitments of the College are as follows:

Lease agreement with Rosetown & District Civic Centre for the Rosetown
Program Centre facilities. This agreement covers the period July 2013
through July 2016. The operating lease obligation is as follows:
Future minimum lease payments:
2016
2017
$

31,368
31,368
The College also holds other small leases for office equipment.
18. ACCUMULATED SURPLUS
Accumulated surplus represents the financial assets and non-financial assets of the
College less liabilities. This represents the accumulated balance of net surplus arising
from the operations of the College and accumulated net remeasurement gains and
losses.
Certain amounts of the accumulated operating surplus, as approved by the Board of
Governors, have been designated for specific future purposes. These internally
restricted amounts are included in the accumulated surplus presented in the statement
of financial position.
The College does not maintain separate bank accounts for the internally restricted
amounts.
Details of accumulated surplus are as follows:
June 30
2014
Invested in Tangible Capital Assets:
Net Book Value of Tangible Capital Assets
Internally Restricted Operating Surplus:
Contributions to be Held in Perpetuity - Endowment Funds
Capital:
Building Maintenance - Kindersley Project
Building Maintenance - Kindersley HVAC
Building Renovations - GPC North
Capital Contingency
Building - Swift Current Campus - Rotary Club
Scholarships:
Other:
Prepaid Operating Lease - Warman
Student Health & Dental Reserve
Succession Planning
Program Development
Enrollment Growth
Programming:
Skills Training Allowance
Early Childhood Education
Adult Basic Education
ABE - On Reserve
English as a Second Language
Sask Community Literacy
Unrestricted Operating Surplus
Accumulated Operating Surplus
Accumulated Remeasurement Gains
Total Accumulated Surplus
$ 14,258,274 $
Additions
during
the year
578,230 $
178,000
14,000
150,000
163,896
250,000
150,000
20,000
52,245
125,000
12,933
36,000
27,057
12,500
312,644
59,501
Reductions
during
the year
(1,205,453) $ 13,631,051
-
375,000
150,000
10,000
65,178
-
(13,500)
(539)
(12,500)
(106,703)
-
22,500
26,518
205,941
59,501
620
39,140
296,019
83,363
56,484
1,581,644
757,578
7,809
20,640
181,002
(329,385)
(70,908)
(15,099)
(872,530)
396,761
823,312
(462,495)
18,012
$ 16,946,219 $
192,000
(150,000)
(163,896)
(10,000)
-
329,385
38,520
366,927
75,554
35,844
15,099
2,273,172
$ 16,928,207 $
June 30
2015
1,582,544 $
3,380
1,585,924 $
(2,540,478) $ 15,970,273
-
21,392
(2,540,478) $ 15,991,665