KWANTLEN POLYTECHNIC Kwantlen...been met in accordance with Public Sector Accounting Standard...

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  • Financial Statements of

    KWANTLEN POLYTECHNIC UNIVERSITY

    Year ended March 31, 2014

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  • KPMG LLPChartered Accountants Telephone (604) 854-2200 32575 Simon Avenue Fax (604) 853-2756 Abbotsford BC V2T 4W6 Internet www.kpmg.ca Canada

    KPMGLLPisaCanadianlimitedliabilitypartnershipandamemberfirmoftheKPMGnetworkofindependentmemberfirmsaffiliatedwithKPMGInternationalCooperative(KPMGInternational),aSwissentity.KPMGCanadaprovidesservicestoKPMGLLP.

    INDEPENDENT AUDITORS REPORT

    To the Board of Governors of Kwantlen Polytechnic University, and To the Minister of Advanced Education, Province of British Columbia We have audited the accompanying financial statements of Kwantlen Polytechnic University, which comprise the statement of financial position as at March 31, 2014, the statements of operations, remeasurement gains and losses, changes in net debt and cash flows for the year then ended, and notes, comprising a summary of significant accounting policies and other explanatory information. Managements Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with the accounting requirements of Section 23.1 of the Budget Transparency and Accountability Act of the Province of British Columbia, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. Auditors Responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with Canadian generally accepted auditing standards. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on our judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, we consider internal control relevant to the entitys preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entitys internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

  • Opinion In our opinion, the financial statements of Kwantlen Polytechnic University as at March 31, 2014 and for the year then ended are prepared, in all material respects, in accordance with the financial reporting provisions of Section 23.1 of the Budget Transparency and Accountability Act of the Province of British Columbia. Emphasis of Matter Without modifying our opinion, we draw attention to Note 2(a) to the financial statements, which describes the basis of accounting and the significant differences between such basis of accounting and Canadian public sector accounting standards.

    Chartered Accountants June 4, 2014 Abbotsford, British Columbia

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  • KWANTLEN POLYTECHNIC UNIVERSITYStatement of Operations(in '000s)Year ended March 31, 2014, with comparative information for 2013

    Budget 2014 2013(Note 2(j))

    Revenue:Province of British Columbia grants (Note 9) 70,014$ 72,109$ 72,753$ Other grants (Note 9) 2,191 1,983 1,609 Tuition and student fees 55,272 58,416 53,589 Ancillary services 9,035 8,039 8,191 Other revenue 6,600 5,067 4,621 Amortization of deferred capital contributions (Note 10) 5,105 5,097 4,860

    148,217 150,711 145,623

    Expenses: (Note 17)Instruction and instructional support 133,868 136,657 129,001 Ancillary operations 8,057 8,013 8,630 Externally sponsored activity 2,664 2,352 1,918 Research activity 3,603 3,618 3,317

    148,192 150,640 142,866

    Annual surplus before restricted funding 25 71 2,757

    Restricted endowment contributions - - 317

    Annual surplus 25 71 3,074

    Accumulated operating surplus, beginning of year 77,345 77,345 74,271

    Accumulated operating surplus, end of year 77,370$ 77,416$ 77,345$

    See accompanying notes to financial statements.

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  • KWANTLEN POLYTECHNIC UNIVERSITYStatement of Changes in Net Debt(in '000s)Year ended March 31, 2014, with comparative information for 2013

    Budget 2014 2013(Note 2(j))

    Annual surplus 25$ 71$ 3,074$

    Acquisition of tangible capital assets - (10,582) (11,098) Amortization of tangible capital assets 11,000 10,432 9,858

    11,000 (150) (1,240)

    Restricted endowment contributions - - (317)

    Acquisition net of use of prepaid expense - (440) 228

    Net remeasurement gains (losses) - (86) 319

    Change in net debt 11,025 (605) 2,064

    Net debt, beginning of year (105,654) (105,654) (107,718)

    Net debt, end of year (94,629)$ (106,259)$ (105,654)$

    See accompanying notes to financial statements.

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  • KWANTLEN POLYTECHNIC UNIVERSITYStatement of Cash Flows(in '000s)Year ended March 31, 2014, with comparative information for 2013

    2014 2013

    Cash provided by (used in):

    Operations:Annual surplus 71$ 3,074$ Items not involving cash:

    Amortization of tangible capital assets 10,432 9,858 Amortization of deferred capital contributions (5,097) (4,860)

    Change in non-cash operating working capital:Decrease (increase) in accounts receivable 1,193 (715) Decrease (increase) in prepaid expenses (440) 228 Increase in inventories for resale (28) (400) Increase in accounts payable

    and accrued liabilities 1,957 1,485 Increase in deferred revenue 555 1,251 Increase in deferred contributions 916 1,159

    Net change in cash from operating activities 9,559 11,080

    Capital activities:Cash used to acquire tangible capital assets (10,582) (11,098) Net change in cash from capital activities (10,582) (11,098)

    Financing activities:Contributions received for tangible capital assets 4,573 834 Principal payments on capital lease obligations (35) (64) Net change in cash from financing activities 4,538 770

    Investing activities:Decrease (increase) in investments 1,463 (2,813) Increase in endowment investments - (317) Net remeasurement gains (losses) (86) 319Net change in cash from financing activities 1,377 (2,811)

    Net change in cash and cash equivalents 4,892 (2,059)

    Cash and cash equivalents, beginning of year 20,535 22,594

    Cash and cash equivalents, end of year 25,427$ 20,535$

    See accompanying notes to financial statements.

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  • KWANTLEN POLYTECHNIC UNIVERSITYStatement of Remeasurement Gains and Losses(in '000s)Year ended March 31, 2014, with comparative information for 2013

    2014 2013

    Accumulated remeasurement gains, beginning of year 319$ -$

    Unrealized gains (losses) attributed to:Long term bonds (377) 324 Securities (31) (3) Foreign currency translation (1) (2)

    Amounts reclassified to the Statement of Operations:Long term bonds 284 - Securities 23 - Foreign currency translation 16

    Net remeasurement gains (losses) for the year (86) 319

    Accumulated remeasurement gains, end of year 233$