STATEMENT OF FINANCIAL INFORMATION PREPARED UNDER … · 2019. 12. 16. · STATEMENT OF FINANCIAL...

STATEMENT OF FINANCIAL INFORMATION

PREPARED UNDER THE FINANCIAL INFORMATION ACT

FOR YEAR ENDED MARCH 31, 2013

VANCOUVER ISLAND UNIVERSITY

900 FIFTH STREET

NANAIMO, BC

V9R 5S5




TABLE OF CONTENTS

Management Report ................................................................................................................ page 3

Approval of Financial Information ............................................................................................ page 4

Schedule of Debts ................................................................................................................... page 5

Schedule of Guarantee and Indemnity .................................................................................... page 6

Schedule of Severance Agreements ....................................................................................... page 7

Schedule of Board Remuneration ............................................................................................ page 8

Schedule of Employee Remuneration and Expenses .............................................................. page 9

Schedule of Suppliers of Goods and Services ....................................................................... page 18

Reconciliation ........................................................................................................................ page 22

Consolidated Financial Statements 2012-2013 ................................................................. appendix 1




STATEMENT OF DEBTS

Prepared under the Financial Information Regulation, Schedule 1, Section 4

Information on all debts for Vancouver Island University is included in Note 12 (page 18) of the 2012-2013 Consolidated Financial Statements.

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SCHEDULE OF GUARANTEE AND INDEMNITY AGREEMENTS

Prepared Under Financial Information Regulation, Schedule 1, Section 5

List of Financial guarantee and indemnity agreements in force which required government approval prior to being given under the Financial Administration Act Guarantees and Indemnities Regulations (BC Reg.258/87):

Air Liquide Canada Inc AMEC Earth & Environmental Compliance Coal Corporation BC Pavilion Corporation BCNET BC Investment Agriculture Foundation Capilano University City of Nanaimo (4) City of Parksville Cowichan Tribes Frame & Associates Consulting Inc Golden District Arts Council Parks Canada Environment Canada BC Minister of Citizens’ Services and Open Government BC Minister of Public Safety and Solicitor General, Corrections Branch BC Minister of the Environment Meltwater News Canada Inc Regional District of Nanaimo and Sylvis Environmental Services Inc Simon Fraser Universty Conference and Guest Accommodations The Active Network Ltd The Port Theatre Society (2) TimberWest Forest Company

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STATEMENT OF SEVERANCE AGREEMENTS

Prepared under the Financial Information Regulation, Schedule 1, Section 6

There was one severance agreement made between Vancouver Island University and its non-unionized employees during fiscal year 2012-2013. The agreement represents 18 months of compensation.

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SCHEDULE OF REMUNERATION AND EXPENSES

BOARD OF GOVERNORS


Board Member 2012/2013 Total Expenses

Shawn A-in-chut Atleo Chancellor 3,696.05

Ralph Nilson President and Vice-Chancellor 2,394.26

Mike Brown Chair 16,647.52

Barb Carle-Thiesson (to November 2012) Vice-Chair 300.00

Ann Scott (effective November 2012) Vice-Chair 200.00

John Phillips Past Chair 2,108.50

William Cripps Board Member 6,545.62

Jerry Doman Board Member 200.00

William Yoachim Board Member 300.00

Stewart Hawthorne Board Member 200.00

Allan Wiekenkamp (January 2013) Board Member -

Steven Purse (to June 2016) Faculty Representative 398.00

Chris Burnley (to June 2014) Faculty Representative 175.00

Kristine Chyplyk (to June 2013) Support Staff Representative 410.00

Patrick Barbosa (to June 2013) Student Representative 410.00

Chris Bergen (to June 2013) Student Representative 225.00

Total Expenses 34,209.95$

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SCHEDULE OF EMPLOYEE REMUNERATION AND EXPENSES Prepared Under Financial Information Regulation, Schedule 1, Section 6

Employee NameTotal Employee

Expenses

Employee

Salaries

Total:Salary & Employee

Expenses

AGYEKUM, ERIC 1,000.00 100,691.27 101,691.27AIKMAN, ALLAN 478.07 86,605.51 87,083.58ALEXANDER, DON 1,000.00 82,308.19 83,308.19

ALEXANDER, SANDY 1,493.76 84,505.95 85,999.71ALLAN, JANET 0.00 83,791.79 83,791.79AMARAL, JOHN 1,000.00 86,576.68 87,576.68AMOS, DARYL 1,328.54 76,989.37 78,317.91ANDERSEN, DENISE 87.23 79,729.01 79,816.24ANDERSON, GILLIAN 1,191.20 82,308.19 83,499.39ARKOS, GREGORY 1,609.83 82,308.19 83,918.02ARMSTRONG, CLAY 1,050.00 82,308.19 83,358.19ARMSTRONG, MIKE 1,000.00 110,680.20 111,680.20ARNOLD, RICHARD 1,000.00 82,308.19 83,308.19ATKINSON, ANNA 1,000.00 82,308.19 83,308.19AYERS, JIM 3,703.00 83,445.19 87,148.19BAILDHAM, LORRIE 575.71 95,222.92 95,798.63

BALL, GEOFF 1,899.01 82,717.07 84,616.08BALL, GREGORY 1,213.95 85,719.19 86,933.14BALLAM, BRUCE 2,011.32 100,047.52 102,058.84BARKER, DUANE 4,333.56 71,095.83 75,429.39

BARNETT, MARTIN 1,524.65 89,574.56 91,099.21BARSBY, TODD 1,000.00 82,308.19 83,308.19BEEDHAM, MATTHEW 1,000.00 82,308.19 83,308.19BEESE, BILL 6,125.48 82,308.19 88,433.67BENISKY, BARRY 120.00 81,934.93 82,054.93BEVIS, RICK 2,694.62 85,885.86 88,580.48BIGELOW, DAVID 2,431.00 100,943.21 103,374.21BIGELOW, HAROLD 95.00 87,634.92 87,729.92BLACK, JOHN 6,991.07 113,565.53 120,556.60BLACKBURN, JEAN 1,410.21 82,308.19 83,718.40BLACKELL, MARK 2,668.73 83,066.19 85,734.92BLANEY, LEIGH 2,133.76 82,946.24 85,080.00

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Expenses

Employee

Salaries


Expenses

BRACK, NONA 4,716.51 82,946.24 87,662.75BRAUN, MICHAEL 319.00 85,847.23 86,166.23BRISCOE, PETER 5,152.50 82,308.19 87,460.69BROCKLEBANK, JOANNE 1,400.85 85,488.34 86,889.19BROWN, BRONWYN 175.00 78,630.38 78,805.38BROWNLOW, JENNIFER 2,929.00 82,308.19 85,237.19BUFFIE, BONNIE-JEAN 2,154.00 82,467.70 84,621.70BURGOYNE, DANIEL 1,037.50 83,945.19 84,982.69BURNLEY, CAROLINE 1,352.80 82,687.19 84,039.99BURNLEY, CHRIS 2,867.07 83,824.19 86,691.26BURNS, KAREN 696.46 83,791.79 84,488.25BURR, STEPHEN 7,786.63 88,497.26 96,283.89BUSH, GREGORY 1,000.00 82,308.19 83,308.19BUTLER, DAVID 40.00 77,120.99 77,160.99BUTTERWORTH, CARL 6,421.26 73,218.60 79,639.86BUZZARD, GORDON 0.00 83,791.79 83,791.79BYRNES, LINDA 4,574.53 82,946.24 87,520.77CADIEUX, DEAN 994.39 85,385.24 86,379.63CAKE, DAVE 1,000.00 76,183.01 77,183.01CAMPBELL, TAMMY 1,702.21 93,603.33 95,305.54CARPENTER, MICHAEL 3,643.24 73,218.60 76,861.84CARPENTER, PATRICK 1,000.00 82,308.19 83,308.19CARPENTIER, SALLY 3,242.00 77,099.26 80,341.26CASWELL, SUSIE 6,841.77 78,578.24 85,420.01CEBULIAK, JIM 0.00 83,954.49 83,954.49CHANG, JOSEPH 2,741.11 149,109.06 151,850.17CHICQUEN, KEITH 2,211.05 95,222.92 97,433.97CHRISTOFFERSEN, JENNIFER 1,670.50 80,291.59 81,962.09CHUANKAMNERDKARN, PATRICK 1,000.00 82,308.19 83,308.19CLEMENTS, STEPHEN 5,564.05 81,678.47 87,242.52COHEN, DON 1,224.80 82,641.53 83,866.33COLBY, LUCY 0.00 85,451.93 85,451.93COLE, JANE 1,083.50 86,977.19 88,060.69COLLETTE, DANA 2,948.43 93,222.57 96,171.00CONDIE, BRUCE 54,031.97 93,918.01 147,949.98CONLIN, ARDITH 2,581.59 73,218.60 75,800.19COOPER, RACHEL 2,294.20 84,013.69 86,307.89CORRIN, DOUG 3,490.87 82,308.19 85,799.06

COWEN, GORDON 0.00 83,791.79 83,791.79

CRANMER, LAURA 1,006.00 82,687.19 83,693.19

CRAWFORD, GREG 11,035.56 120,426.28 131,461.84

DAHLKE, SHERRY 4,366.48 89,016.22 93,382.70

DAOUST, MICHELLE 2,740.86 83,516.35 86,257.21

DARLING, BOB 485.26 83,791.79 84,277.05

DAS, ANUPAM 1,000.00 81,749.00 82,749.00

DAUK, PHILIP 1,000.00 92,975.72 93,975.72

DAVIES, STEPHEN 1,000.00 88,118.00 89,118.00

DELAMERE, TOM 2,394.75 82,308.19 84,702.94

DERBY, BRENDAN 0.00 84,409.98 84,409.98

DESILETS, CAROL 2,838.51 74,140.71 76,979.22

DHILLON, SUKI 1,000.00 81,670.14 82,670.14

DIAMENTE, PETER 1,320.00 74,886.76 76,206.76

DICK, BRIAN 2,561.22 81,573.50 84,134.72

DILL, CHERYL 1,492.80 80,611.78 82,104.58

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Expenses

Employee

Salaries


Expenses

DONAT, ANA MARIA 1,317.46 87,873.70 89,191.16

DOOLIN, GARY 0.00 83,791.79 83,791.79

DOUGHTY, TERRI 2,377.90 86,977.19 89,355.09

DOWN, MICHAEL 1,469.00 81,707.45 83,176.45

DUDAS, SARAH 1,041.45 82,946.24 83,987.69

DUTCHUK, MARK 0.00 79,846.28 79,846.28

DYKEMAN, BROCK 12,380.18 85,294.37 97,674.55

EAGAR, PAT 15,003.02 168,044.45 183,047.47

EARLE, STEVEN 3,535.59 87,235.19 90,770.78

EASTERBROOK, GRANT 279.99 75,656.67 75,936.66

EBY, EIKO 1,660.94 88,118.32 89,779.26

EDMUNDS, EILEEN 5,455.80 82,308.19 87,763.99

EGAN, MARK 5,079.06 73,218.60 78,297.66

EGELAND, ERIN 1,987.28 84,528.71 86,515.99

ELLINS, BODIL 1,428.09 76,087.29 77,515.38

EVANS, LORI 2,386.76 83,744.74 86,131.50

FEHR, CINDY 1,609.76 82,946.24 84,556.00

FISHER, PAIGE 16,301.38 82,308.19 98,609.57

FOLEY, BOB 8,418.73 112,770.23 121,188.96

FOOTE, CHRIS 1,407.00 87,684.79 89,091.79

FORRESTER, DAVID 6,890.51 78,578.24 85,468.75

FOSTER, JACQUELINE 1,652.95 84,605.30 86,258.25

FREEBORN, DEBBIE 1,455.90 83,547.74 85,003.64

FRIESEN, DUANE 1,000.00 83,691.57 84,691.57

FUNK, MARILYN 2,646.86 82,308.19 84,955.05

FURNELL, DON 1,000.00 88,918.58 89,918.58

GABLER, JOERG 0.00 81,337.86 81,337.86

GALL, MARK 6,712.87 84,008.23 90,721.10

GALLANT, MAURICE 750.00 97,073.05 97,823.05

GALLOWAY, GLEN 0.00 83,791.79 83,791.79

GANASSIN, ROSEMARIE 1,000.00 83,595.69 84,595.69

GIBSON, ALLAN 2,299.46 82,308.19 84,607.65

GIL, YCHA 1,565.07 82,627.21 84,192.28

GILCHRIST, ALAN 2,242.08 82,308.19 84,550.27

GILL, CHRIS 18,314.97 92,308.19 110,623.16

GILLIS, LIZ 1,705.56 80,872.25 82,577.81

GILLIS, TRACY 5,467.72 95,891.19 101,358.91

GIRARD, MICHAEL 429.71 87,809.02 88,238.73

GOATER, TIM 1,978.85 84,353.92 86,332.77

GOLD, ANNE 0.00 83,791.79 83,791.79

GOMES, MARIA 648.56 104,485.59 105,134.15

GOVOROV, MICHAEL 3,891.27 82,308.19 86,199.46

GRIEVE, SHEILA 4,147.00 70,964.67 75,111.67

GROOT, ERICK 1,000.00 82,687.19 83,687.19

GUPPY, STEVE 1,000.00 82,308.19 83,308.19

HADLEY, VALERIE 349.00 108,528.96 108,877.96

HAGAN, SANDRA 1,003.00 77,699.01 78,702.01

HAGEN, DEBRA 2,868.72 82,308.19 85,176.91

HAIME, COLIN 2,159.20 87,492.33 89,651.53

HAK, GORDON 1,000.00 82,308.19 83,308.19

HALLAM, MICHAEL 643.32 78,838.75 79,482.07

HAMILTON, NANCY 931.36 82,747.54 83,678.90

of 23


Expenses

Employee

Salaries


Expenses

HAMMER, KEN 4,925.10 78,236.59 83,161.69

HAMMOND-KAARREMAA, LIZ 2,211.02 108,743.44 110,954.46

HANNESSON, DARREN 1,000.00 82,687.19 83,687.19

HANNESSON, TERESA 1,764.76 84,023.18 85,787.94

HANSON, CRAIG 213.18 89,076.00 89,289.18

HARPER, KEN 0.00 83,222.33 83,222.33

HARRIS, COLLEEN 598.40 76,811.70 77,410.10

HARRISON, KEITH 1,560.00 82,308.19 83,868.19

HASSIB, ASHRAF 1,000.00 82,308.19 83,308.19

HAWTHORNE, DAN 3,703.00 82,808.19 86,511.19

HAYRE, MANDY 1,794.80 84,873.26 86,668.06

HEARN, DEBORAH 1,000.00 82,308.19 83,308.19

HEBERT, DARREN 11,587.57 89,554.59 101,142.16

HEBRON, JANET 1,182.10 83,954.49 85,136.59

HEIKKILA, RICK 0.00 77,756.34 77,756.34

HERNANDEZ, MERCEDES 1,000.00 82,687.19 83,687.19

HESKETH, JOANNA 14,043.99 66,363.28 80,407.27

HILBERT, SOPHIA 4,633.29 74,654.58 79,287.87

HILES, WAYNE 2,238.60 83,333.90 85,572.50

HINBEST, JERRY 3,498.16 82,687.19 86,185.35

HINDE, JOHN 1,435.62 82,308.19 83,743.81

HOBENSHIELD, SHARON 16,512.13 93,245.21 109,757.34

HOLDING, SARAH 4,978.80 91,227.84 96,206.64

HOLLENBERG, ANDREW 2,268.29 80,493.25 82,761.54

HOLLEY, ROSEMARY 186.50 80,787.63 80,974.13

HOLLING, ERICA 1,000.00 76,853.86 77,853.86

HOLROYD, ANN 2,729.41 91,846.24 94,575.65

HOLYER, GORDON 4,438.10 113,765.32 118,203.42

HORNOSTY, JANINA 1,000.00 83,066.19 84,066.19

HUML, MARGARET 2,253.76 85,292.23 87,545.99

HUNTER, BRUCE 8,486.66 92,677.45 101,164.11

HUNTER, GLENDA 0.00 77,609.26 77,609.26

HURLEY, DAN 19,184.44 77,016.60 96,201.04

IDELS, LEV 4,260.00 82,687.19 86,947.19

ILAGAN, PATRICIA 1,047.50 82,946.24 83,993.74

JACKLIN, FRED 10,101.03 101,806.38 111,907.41

JAEGER, CHRIS 3,106.99 87,354.42 90,461.41

JANZEN, HARRY 31,932.17 126,910.74 158,842.91

JEAN LOUIS, ROSMY 5,952.09 124,706.68 130,658.77

JENSEN, KEITH 2,039.72 101,054.35 103,094.07

JONES, KEVIN 51.70 85,805.30 85,857.00

JONES, STEVE 1,000.00 82,308.19 83,308.19

JUNG, PIERA 2,323.72 82,641.53 84,965.25

KEENAN, JULIE 2,718.93 110,696.64 113,415.57

KELLY, GEORGE 1,000.00 82,308.19 83,308.19

KELLY, JANE 8,014.38 83,992.48 92,006.86

KELLY, SHARON 1,000.00 82,308.45 83,308.45

KELM, RIC 19,672.75 139,143.31 158,816.06

KENNEDY, MAGGIE 7,553.15 70,408.76 77,961.91

KETELSEN, JIM 1,992.68 82,992.67 84,985.35

KINGZETT, BRIAN 3,323.37 83,992.48 87,315.85

KIRSON, RUTH 4,175.11 82,630.86 86,805.97

of 23


Expenses

Employee

Salaries


Expenses

KLIMES, GREG 1,196.75 82,308.19 83,504.94

KNAACK, LIESEL 6,949.27 95,222.92 102,172.19

KNOST, MARION 8,088.06 76,767.54 84,855.60

KONKIN, PATRICK 4,327.31 82,627.21 86,954.52

KRIVEL-ZACKS, GAIL 1,000.00 88,065.49 89,065.49

KROEK, RUTH 2,279.21 82,308.19 84,587.40

KROEKER, ELISABETH 1,000.00 85,074.19 86,074.19

KROGH, ERIK 19,221.69 92,308.19 111,529.88

KRYNOWSKY, BERNIE 1,320.00 82,308.19 83,628.19

KUBOTA, SAYURI 3,372.49 81,025.85 84,398.34

KURULAK, DONNA 1,000.00 82,627.21 83,627.21

LANE, BRENDA 1,473.76 84,146.24 85,620.00

LANE, RICHARD 1,000.00 77,124.11 78,124.11

LANE, STEVE 18,693.29 141,693.22 160,386.51

LAURIDSEN, MARIA 457.00 106,861.90 107,318.90

LE MASURIER, GUY 2,095.00 76,683.01 78,778.01

LEAF, SCOTT 1,000.00 80,790.46 81,790.46

LEAVITT, TOM 15.33 84,198.71 84,214.04

LEFURGEY, LINDA 2,604.10 89,445.72 92,049.82

LEITH, HOPE 1,160.00 94,436.19 95,596.19

LEVINS, KEVIN 0.00 75,889.42 75,889.42

LEWIS, JEFF 1,000.00 83,445.19 84,445.19

LEWIS, TIMOTHY 1,520.23 82,308.19 83,828.42

LIGHT, DAN 1,406.32 109,470.15 110,876.47

LIM, IMOGENE 1,000.00 83,824.19 84,824.19

LIN, ANDY 5,450.56 115,215.78 120,666.34

LINDSAY, MARY 1,560.00 82,308.19 83,868.19

LITTLEJOHN, DEANNA 3,842.67 79,768.05 83,610.72

LIU, HUIZHU 1,000.00 79,478.90 80,478.90

LIVINGSTONE, DAVID 7,130.78 92,160.34 99,291.12

LOVE, KIM 0.00 96,459.11 96,459.11

LUM, APRIL 0.00 83,954.49 83,954.49

MACCARTHY, VIRGINIA 1,453.91 82,308.19 83,762.10

MACCOLL, MICHAEL 2,513.44 107,064.59 109,578.03

MACDONALD, FRED 6,594.13 120,426.28 127,020.41

MACGILLIVRAY, MAXINE 0.00 83,954.49 83,954.49

MACKAY, ROSS 3,289.84 107,222.79 110,512.63

MACMILLAN, NEIL 3,174.49 82,308.19 85,482.68

MACQUARRIE, COLLIN 1,000.00 82,308.19 83,308.19

MAGEE-CHALMERS, JESSIE 1,345.21 76,511.30 77,856.51

MAGUIRE, BRAD 1,000.00 82,308.19 83,308.19

MAKEPEACE, MYRON 1,000.00 82,308.19 83,308.19

MAKEPEACE-DORE, MAUREEN 1,473.76 82,946.24 84,420.00

MALBON, LES 1,064.99 88,830.63 89,895.62

MALTESEN, JEAN 2,742.44 114,403.33 117,145.77

MANSBRIDGE, DARREL 2,991.35 135,292.49 138,283.84

MARCHANT, ELLIOTT 1,000.00 88,751.19 89,751.19

MARSHALL, CLAIRE 60.48 86,092.45 86,152.93

MARTENS, MARTIN 1,000.00 89,400.64 90,400.64

MARTIN, JEANNIE 1,000.00 82,308.19 83,308.19

MARTIN, MELODY 1,303.70 83,325.24 84,628.94

MARTINFLATT, ASHLEIGH 1,841.66 79,375.81 81,217.47

of 23


Expenses

Employee

Salaries


Expenses

MARTTALA, RAIMO 1,614.29 98,686.56 100,300.85

MASSON, CYNTHEA 1,320.00 82,308.19 83,628.19

MATHESON, DEBORAH 2,684.00 83,066.19 85,750.19

MATHESON, KATHLEEN 2,031.22 83,954.49 85,985.71

MCCAW, LYNN 1,000.00 89,189.68 90,189.68

MCCLUSKEY, ELLEN 1,580.10 95,822.81 97,402.91

MCCOMB, TINA 4,125.37 102,091.09 106,216.46

MCCRAE, LORNA 2,360.10 82,308.36 84,668.46

MCDONALD, DAN 12,808.44 66,389.11 79,197.55

MCDONELL, LINDA 6,728.30 108,297.72 115,026.02

MCFARLAND, DANA 4,440.70 82,308.19 86,748.89

MCGRAIL, JUSTIN 2,606.10 87,614.19 90,220.29

MCGUIGAN, CRAIG 1,465.07 82,308.19 83,773.26

MCKAY, BRENDA 4,427.80 104,379.53 108,807.33

MCKINNON, SHERRI 0.00 83,748.78 83,748.78

MCLAREN, RHONDA 106.00 78,480.11 78,586.11

MCLEAN, DAWN 1,168.71 75,563.79 76,732.50

MCLEAN, DOUG 328.23 82,891.82 83,220.05

MCWHIRTER, JOY 1,891.48 83,954.49 85,845.97

MEIJER DREES, LAURIE 1,000.00 83,704.24 84,704.24

MEYERS, LYNN 2,742.89 74,407.48 77,150.37

MILLARD, LORNA 1,000.00 82,308.19 83,308.19

MITCHELL, CHRISTINE 2.25 109,921.92 109,924.17

MOHABEER, RAVINDRA 1,000.00 82,308.19 83,308.19

MOLL, RACHEL 11,704.02 68,002.63 79,706.65

MORGAN, JOHN 1,635.00 94,252.97 95,887.97

MORTON, LILLIAN 2,737.50 78,096.51 80,834.01

MOTTERSHEAD, PAUL 4,706.64 86,605.51 91,312.15

MUNRO, CHRIS 4,935.25 85,832.46 90,767.71

MURRAY, GRANT 12,053.77 90,472.29 102,526.06

MUSTAFA, SAMEER 2,654.80 75,262.52 77,917.32

NACHTSHEIM, SUZY 0.00 83,954.49 83,954.49

NETHERTON, ALEXANDER 1,287.88 82,687.19 83,975.07

NG, PATRICK 1,000.00 82,308.19 83,308.19

NILSON, RALPH 72,133.56 207,698.39 279,831.95

NILSON, SUZANNE 5,990.34 82,434.53 88,424.87

NOHR, LARRY 611.75 74,781.08 75,392.83

NOONAN, VICKI 340.00 83,791.79 84,131.79

O'CONNOR, MAUREEN 2,218.26 84,462.24 86,680.50

OKUN, MAUREEN 4,792.91 91,402.34 96,195.25

O'NEILL, MARY 2,400.53 82,308.19 84,708.72

O'NEILL, MELANIE 1,240.00 75,497.75 76,737.75

O'SHEA, MICHAEL 1,236.20 105,288.14 106,524.34

PALM, JUDY 3,684.26 82,308.19 85,992.45

PAPROSKI, DARREN 5,485.65 105,192.99 110,678.64

PARKER, STEPHANIE 0.00 83,954.49 83,954.49

PASTRO, HEATHER 3,192.42 90,722.68 93,915.10

PATRICK, SANDRA 1,000.00 82,308.19 83,308.19

PATTERSON, LYNDA 1,000.00 82,308.19 83,308.19

PATTERSON, MICHELE 1,839.62 101,844.08 103,683.70

PELLETIER, MICHAEL 408.68 84,605.30 85,013.98

PELLEY, STEPHEN 1,176.34 83,791.79 84,968.13

of 23


Expenses

Employee

Salaries


Expenses

PENNER, RAYMOND 1,000.00 82,308.19 83,308.19

PEPPER, KATHERINE 5,535.25 82,558.19 88,093.44

PEPPER-SMITH, ROBERT 1,000.00 82,308.46 83,308.46

PEREZA ROLLS, TINA 1,000.00 82,946.24 83,946.24

PETERSEN, LESLIE 395.28 78,578.24 78,973.52

PEVEC, ALEXANDER 1,000.00 88,118.19 89,118.19

PHIPPS, JOHN 4,994.27 82,308.19 87,302.46

PICHE, MARIE 1,736.11 79,984.06 81,720.17

PIEKKOLA, BRAD 1,000.00 83,824.19 84,824.19

PIKE, GRAHAM 36,434.93 121,428.73 157,863.66

PORTEOUS, JANICE 2,383.00 83,066.19 85,449.19

POTTER, LEON 1,000.00 87,690.37 88,690.37

POTVIN, LIZA 1,000.00 77,289.58 78,289.58

PRUESSE, GARA 5,343.00 82,308.19 87,651.19

PUGH, GLEN 1,000.00 98,151.89 99,151.89

PURSE, STEVEN 3,810.72 101,682.38 105,493.10

PUTZ, DON 4,476.08 80,671.66 85,147.74

PYNN, DANA 514.96 83,954.49 84,469.45

RAAEN, ARLETTE 9,106.36 108,743.44 117,849.80

RALPH, STEWART 2,086.12 95,222.92 97,309.04

REED, JANINE 5,405.06 118,092.12 123,497.18

REES, DAVID 5,777.22 89,445.72 95,222.94

REIMER, BRAD 1,324.46 83,744.71 85,069.17

RIGGAN, ROBERT 1,000.00 82,308.19 83,308.19

ROBERTSON, TONY 1,000.00 85,340.19 86,340.19

ROELANTS, DOMINIQUE 1,000.00 82,627.21 83,627.21

ROLLINS, RICK 19,179.57 83,514.49 102,694.06

ROLLISON, LYNN 5,385.06 86,658.81 92,043.87

ROSE, LEANNE 3,894.65 87,592.33 91,486.98

ROUT, KATHARINA 3,515.84 73,073.13 76,588.97

RUSSELL, BONITA 4,276.27 96,014.01 100,290.28

RUZESKY, JAY 1,000.00 83,445.19 84,445.19

SACKEY, HARRY 1,361.40 102,171.88 103,533.28

SANDERS, SUSAN 1,656.05 79,081.63 80,737.68

SANDLAND, RON 1,070.00 82,308.19 83,378.19

SANRUD, HEATHER 2,335.20 82,558.19 84,893.39

SCHELL, CHARLES 2,165.51 79,316.36 81,481.87

SCHULTZ, DEANNE 1,560.00 82,308.19 83,868.19

SCORETZ, MARIE 1,013.00 80,291.59 81,304.59

SEIFERT, STU 254.51 84,198.54 84,453.05

SERJEANT, BETTY 0.00 83,891.79 83,891.79

SHARDLOW, SUE 0.00 79,398.82 79,398.82

SHAW, PAM 4,053.50 84,582.19 88,635.69

SHELDRAKE, CHARLOTTE 12,364.54 91,724.13 104,088.67

SHORE, DEBBIE 1,729.06 85,054.49 86,783.55

SIMISTER, JOANNE 1,857.08 92,596.73 94,453.81

SIMONS, DANIEL 2,446.95 93,928.23 96,375.18

SINCLAIR, JANET 5,109.41 77,047.33 82,156.74

SITTER, RON 1,000.00 75,079.34 76,079.34

SKIPSEY, JOE 64.92 83,791.79 83,856.71

SKOVGAARD, PREBEN 2.75 130,942.23 130,944.98

SMILSKI, ANDREA 854.30 81,531.76 82,386.06

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Expenses

Employee

Salaries


Expenses

SMITH, ELFIE 2,897.98 78,578.24 81,476.22

SMITH, KEITH 1,000.00 82,467.70 83,467.70

SMITH, TONI 1,000.00 75,399.79 76,399.79

SPEED, ANDREW 2,922.88 95,222.92 98,145.80

SPEIGHT, PAMELA 1,000.00 88,629.33 89,629.33

SPRONK, TERRI 1,700.90 82,308.19 84,009.09

SPROUT, FRANCES 1,000.00 82,308.19 83,308.19

STANLEY, MARNI 1,572.00 82,308.19 83,880.19

STASIUK, MARY 1,000.00 82,946.24 83,946.24

STEEN, GLYNIS 334.07 97,889.78 98,223.85

STETAR, DOUG 3,000.00 82,308.19 85,308.19

STUART, CAROL 4,880.74 120,426.28 125,307.02

SULLY, BRENDA 1,000.00 82,308.19 83,308.19

SUNDBY, LESLIE 6,134.53 105,406.83 111,541.36

SUSKI, LAURA 1,168.00 74,173.20 75,341.20

TAKISHITA, FAITH 1,055.42 82,308.19 83,363.61

TAPPING, CRAIG 1,000.00 82,308.19 83,308.19

TAUGHER, MIKE 1,252.72 83,066.19 84,318.91

TAYLOR, DREW 1,435.80 89,076.00 90,511.80

TEREPOCKI, TRACEY 2,092.86 78,578.24 80,671.10

THEUERKORN, FRANK 2,479.54 89,369.36 91,848.90

THIESSEN, ILKA 1,000.00 82,687.19 83,687.19

THOMAS, BARBARA 1,379.87 98,100.68 99,480.55

THOMPSON, DAWN 1,500.00 80,181.37 81,681.37

TILLAPAUGH, DON 11,117.39 119,267.78 130,385.17

TISDALE, CAROL 0.00 111,001.16 111,001.16

TONSKI, JEAN 1,000.00 82,308.19 83,308.19

TORKKO, DEBORAH 1,000.00 79,117.95 80,117.95

TROOST, WILLIAM 1,000.00 79,394.25 80,394.25

TSISSEREV, ALEX 1,000.00 83,318.79 84,318.79

TWYNAM, DAVE 14,145.07 120,426.28 134,571.35

TWYNAM, NANCY 4,234.31 82,308.19 86,542.50

UHL, JAMES 1,039.00 82,274.40 83,313.40

UPPAL, MANJEET 2,275.79 80,291.29 82,567.08

VALLEE, MICHEL 6,954.94 82,308.19 89,263.13

VAN BEERS, DINY 10,891.56 142,737.41 153,628.97

VAN DOORN, JACK 64.92 83,791.79 83,856.71

VAN DOORN, WILL 340.04 86,052.21 86,392.25

VAN OSCH, ED 39,627.19 74,360.00 113,987.19

VAUGEOIS, NICOLE 21,370.67 86,209.65 107,580.32

VINDEN, SALLY 3,227.69 80,456.40 83,684.09

WAHL, SHARON 5,168.29 95,345.37 100,513.66

WALSH, PETER 1,000.00 77,699.01 78,699.01

WARNKE, ALLAN 1,000.00 84,961.19 85,961.19

WARRINER, CHARLES 5,000.00 73,218.60 78,218.60

WARSH, CHERYL 2,820.00 82,687.19 85,507.19

WATSON, JANE 900.00 82,787.19 83,687.19

WATSON, KEITH 28,487.85 108,743.44 137,231.29

WEAVER, DUANE 1,030.00 87,027.72 88,057.72

WEBBER, BRYAN 1,000.00 82,388.25 83,388.25

WEIGHILL, AGGIE 6,870.05 85,719.19 92,589.24

WESSELS, DAVID 1,000.00 92,596.72 93,596.72

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Expenses

Employee

Salaries


Expenses

WHITE, ALI 9,279.55 68,307.60 77,587.15

WHITEHOUSE, IAN 2,269.00 82,308.19 84,577.19

WICKMAN, MARISE 1,609.73 82,308.19 83,917.92

WILKINSON, JIM 1,572.23 82,687.19 84,259.42

WILLIAMS, ALANNA 2,000.00 80,493.25 82,493.25

WILLIS, ROBERT 1,000.00 91,304.41 92,304.41

WILSON, CALVIN 4,823.98 103,169.98 107,993.96

WILSON, HANNAH 1,000.00 88,968.45 89,968.45

WILSON, HEATHER 3,964.76 75,561.38 79,526.14

WITTY, DAVID 16,212.53 164,873.80 181,086.33

WOODS, ANNE 405.92 83,791.79 84,197.71

WYTENBROEK, LYNN 4,233.00 88,618.02 92,851.02

YEARLEY, JO'ANNE 7,283.17 82,308.19 89,591.36

YOUNG, TRICIA 256.00 78,422.60 78,678.60

YOUNG, WENDY 2,584.31 120,426.28 123,010.59

Total for Employees Over $75,000 1,427,134.52 36,199,164.84 37,626,299.36

Total for Employees Under $75,000 907,840.83 33,164,981.39 34,072,822.22

Total Schedule : Employee

Remuneration and Expenses 2,334,975.35 69,364,146.23 71,699,121.58

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FOR THE YEAR ENDED MARCH 31, 2013

SCHEDULE OF SUPPLIERS OF GOODS AND SERVICES


Suppliers of Goods and Services Over $25,000 Total Expenses 6742505 CANADA CORP 107,377.47 A & K TIMBER CO. LTD. 66,488.90 A&A CONTRACT CUSTOMS BROKERS LTD 49,793.15 ACCC - ASSOCIATION OF CANADIAN COMMUNITY COLLEGES 29,423.37 ACCESS COPYRIGHT 108,472.43 ACER LANDSCAPING LTD. 99,576.38 ACKLANDS-GRAINGER INC 33,085.66 ACRODEX 98,673.84 AJ FORSYTH (DIV OF RUSSEL METALS INC.) 29,245.64 ALPHA ROOFING & SHEET METAL INC 44,601.39 ALSCO CANADA CORP 102,280.93 AMAZON 41,346.59 AOJI ENROLMENT CENTRE OF INTERNATIONAL EDUCATION 28,328.63 APPLE CANADA INC. 196,918.36 APPLIED ENGINEERING SOLUTIONS LTD 98,686.36 ARCHIE JOHNSTONE PLUMBING & HEATING LTD 100,450.10 ART'S PLUMBING & HEATING LTD 88,237.80 AUCC 49,509.00 B&F MANUFACTURING LTD 44,569.28 B. KIRKBRIDE PAINTING 28,319.20 BAKER SUPPLY LTD 139,153.02 BC ACADEMIC HEALTH COUNCIL 46,956.56 BC FERRIES 50,302.31 BC HYDRO & POWER AUTHORITY 1,032,667.85 BELFOR PROPERTY RESTORATION 32,308.79 BELL CANADA 545,857.17 BEST FACILITIES SERVICES LTD. 679,546.51 BLACK PRESS GROUP LTD 48,513.19 BLACKBIRD GR 40,464.40 BLACKBOARD INC. 26,013.12 BLANCHET GRAPHICS 38,877.24 BRENT DUNLOP 48,929.00 BRUCE CAMPBELL 25,367.90 BW GLOBAL STRUCTURES INC 52,889.94 C2F INC 34,490.73 CALEDONIA FIRE PROTECTION LTD 40,838.90 CAMOSUN COLLEGE 72,068.39

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CANADIAN COLLEGIATE ATHLETIC ASSOCIATION 29,124.38 CANADIAN RESEARCH KNOWLEDGE NETWORK 359,485.65 CANTERBURY FOOD SERVICE LTD 45,986.11 CASCADE CAPITAL MACHINE SALES INC. 86,077.60 CE INTERNATIONAL CONSULTANTS 80,520.00 CHEVRON CANADA LIMITED 108,903.01 CHILO TRANSPORT LTD 44,517.66 CHINA EASTE 30,510.71 CITY OF NANAIMO 279,660.22 CITY OF PARKSVILLE 52,164.86 COAST BASTION HOTEL 64,221.87 COASTAL COMMUNITY CREDIT UNION 38,900.48 CONCISE SYSTEMS CORPORATION 81,392.01 CONTI 81,683.33 COPCAN CONTRACTING LTD. 44,129.27 COUNCIL OF PRAIRIE AND PACIFIC 76,751.91 COVAL SECURITY SERVICES LTD 46,065.44 COWICHAN VALLEY INTERCULTURAL 48,000.00 CSA GROUP 26,670.63 CULLEN DIESEL POWER LTD 39,754.40 CUMMINS WESTERN CANADA 32,096.56 CVI JOBS 54,255.00 DAVIES PARK EXECUTIVE SEARCH CONSULTANTS 155,823.88 DAY & ROSS INC 29,510.55 DEL EQUIPMENT LTD 26,953.92 DELL CANADA INC 28,189.87 DENTSPLY CANADA 34,512.43 DESIRE2LEARN 134,163.62 DSL LIMITED 39,869.20 DYNAMIC AQUA-SUPPLY LTD 34,193.82 EAVES MOTOR SALES LTD. 35,441.68 EBOOKS CORPORATION LTD 54,091.25 EBSCO CANADA LTD 30,744.81 ECONOMY RENTALS & REPAIRS LTD 31,055.78 EDITIONS DU RENOUVEAU PEDAGOGIQUE INC 46,330.87 ELLEFSON, LEE 26,680.00 ELLISON TRAVEL & TOURS LTD. 50,315.20 EM BAKERY EQUIPMENT B.C. LTD. 39,988.48 ESC AUTOMATION INC 123,168.29 FAIRWINDS COMMUNITY & RESORT 27,124.62 FINNING (CANADA) 39,427.92 FISHER SCIENTIFIC 79,437.03 FLORENCE AND ABROAD 29,894.58 FOLLETT HIGHER EDUCATION GROUP 36,673.42 FOOTPRINTS SECURITY PATROL LTD 34,576.87 FORTISBC - NATURAL GAS 803,386.07 FOTOPRINT 28,176.70 FUTURE SHOP 30,474.14 G4S CASH SOLUTIONS (CANADA) LTD 32,544.62 GASPARD LP 25,012.97 GENERATION PRINTING LTD 50,089.74 GLOBAL STUDENT SERVICES INC. 38,886.88 GOC-DFAIT/MAECI-CASHIER 25,500.00 GRAND & TOY LTD. 338,785.84 GRAPHIC OFFICE INTERIORS LTD 557,143.35 GREGG DISTRIBUTORS 27,561.44

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HAARSMA WASTE INNOVATIONS INC. 90,579.10 HARRIS & COMPANY 270,691.83 HAY GROUP LIMITED 55,541.52 HB ELECTRIC LTD 47,687.20 HEMLOCK PRINTERS LTD. 60,160.78 HENRY SCHEIN CANADA INC 26,033.89 HERC EXCHANGE LLC 69,525.92 HEROLD ENGINEERING LTD 38,718.08 HIGHER EDUCATION INFORMATION TECHNOLOGY 62,346.47 HILL-ROM CANADA, LTD. 28,088.40 HOTLINE APPAREL SYSTEMS INC 34,930.56 HOULE ELECTRIC LIMITED 2,883,173.90 HUB CITY PAVING LTD 44,256.80 IBM CANADA LIMITED 48,790.91 IMPERIAL OIL 33,695.43 IN A FIX BUILDING MAINTENANCE 30,216.83 INSURANCE CORPORATION OF BRITISH COLUMBIA (ICBC) 70,910.16 ISLAND KEY COMPUTER LTD. 296,878.96 ISLAND SAVINGS INSURANCE SERVICES LTD. 96,737.16 JJL OVERSEAS EDUCATION CONSULTING & 28,855.48 JOE ELLIOTT 26,000.00 JOHN WILEY & SONS CANADA LTD 57,483.05 KALTURA, INC. 60,462.69 KAO CANADA INC. 58,703.34 KNAPPETT PROJECTS INC 34,534.65 KONE INC 70,109.27 KONICA MINOLTA BUSINESS 32,320.42 LAB-VOLT 297,601.93 LEADING BY DESIGN 25,671.42 LEAVITT MACHINERY 76,546.40 LI GUIHUA 25,087.50 LITERACY CENTRAL VANCOUVER ISLAND 88,450.00 LITERACY NOW COWICHAN SOCIETY 39,940.00 LJ WELDING AUTOMATION LTD. 27,440.00 LOGIN BROTHERS CANADA 167,611.04 LONG VIEW SYSTEMS 287,338.89 LORDCO PARTS LTD 59,770.49 MAPLE LEAF EDUCONNECT PVT. 52,593.43 MARTELL/CORAL REFRIGERATION 29,901.65 MCCARTAN CONTRACTING 260,842.28 MCCARTHY TETRAULT LLP 39,873.23 MCGRAW-HILL RYERSON LTD 233,037.61 MHPM PROJECT MANAGEMENT INC. 68,795.14 MILLENNIUM PROFESSIONAL SERVICES LTD. 206,419.58 MINISTER OF FINANCE 201,185.43 MITCHELL PRESS LIMITED 56,383.04 MNP LLP 107,516.92 MODERN TOOL LTD. 63,056.00 MONERIS SOLUTIONS 230,617.67 MORNEAU SHEPELL LTD. 50,157.58 MOUNT BENSON MECHANICAL (1991) 99,223.50 MPS 172,396.80 NAS RECRUITMENT COMMUNICATIONS 43,567.37 NEBRASKA BOOK COMPANY 71,587.38 NELSON EDUCATION LTD 570,033.01 NEOPOST CANADA LTD. 147,652.82

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NEW IMAGE INTERIORS LTD. 35,626.80 NORTH ISLAND COLLEGE 443,341.00 NOVA BEAUTY CO LTD 85,019.00 ORGANIZATION FOR WORLDWIDE EDUCATION 160,868.05 ORIAC TRADING COMPANY 47,764.79 OXFORD UNIVERSITY PRESS 87,673.01 PACIFIC CARBON TRUST 87,275.85 PACIFIC LEADERSHIP DESIGN 27,720.66 PACIFIC RESTAURANT SUPPLY 202,877.71 PARKWAY AUTOMOTIVE 47,092.37 PARTNERS IN GRIME 41,556.41 PATTERSON DENTAL SUPPLY INC 172,154.79 PAYLESS BUILDING MAINTENANCE LTD 150,424.83 PEARSON EDUCATION CANADA 479,327.38 PETER J. SANDERSON 111,545.21 POST SECONDARY EMPLOYERS' ASSN 28,957.29 POWELL RIVER EMPLOYMENT PROGRAM SOCIETY 38,160.00 PRAXAIR DISTRIBUTION 160,949.03 PRICE'S ALARM SYSTEMS LTD 25,494.20 PROQUEST LLC 80,098.75 PUROLATOR COURIER LTD 35,929.41 QUALITY FOODS 49,926.46 R.F. BAKERY EQUIPMENT 28,336.00 RAMCO INC 63,183.14 RAMSAY LAMPMAN RHODES 48,575.08 RED-D-ARC LTD 149,440.24 RICHARD PAYNE 63,563.26 RITCHIE BROS. AUCTIONEERS 98,705.97 ROBBINS PARKING SERVICE LTD. 611,414.30 ROBINSON & ROBINSON INC. 38,360.00 ROGERS PUBLISHING LIMITED 30,240.00 ROGERS WIRELESS INC 115,296.80 ROSLYN KUNIN & ASSOCIATES 55,935.45 SAPUTO DAIRY PRODUCTS CANADA GP 48,213.15 SEA STAR AQUARIUM PRODUCTS LTD. 47,040.00 SECURCO SERVICES INC 87,233.93 SEL CONFERENCE SERVICES 43,402.19 SHANDONG INSTITUTE OF BUSINESS 63,635.00 SHARON STYVE 29,666.62 SHARP'S AUDIO VISUAL LTD 87,712.65 SHAW ELECTRICAL SERVICES LTD. 47,591.52 SIMON FRASER UNIVERSITY 147,574.56 SIRSI/DYNIX 40,487.36 SMITH TRANSPORTATION LTD 31,335.88 SNOW CAP ENTERPRISES LTD 93,436.70 SNUNEYMUXW FIRST NATION 41,721.17 SOFTCHOICE CORPORATION 26,411.55 SPEEDTREK INTERNATIONAL INC 53,889.51 SPRINGER 25,546.86 STARGARDEN CORPORATION 47,237.40 STARREZ INC 37,624.06 STRYKER INC 64,935.00 SYSCO VICTORIA INC 549,659.36 T CHARLOTTE HOGGARD INC 30,345.00 TACTIX GOVERNMENT RELATIONS 29,750.94 TAYLOR & FRANCIS GROUP LLC 128,832.03

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TAYLORMADE SOLUTIONS 37,055.02 T-BASE COMMUNICATIONS INC 32,361.06 TECTONICA MANAGEMENT INC 68,867.34 TELUS COMMUNICATIONS 150,738.02 TENLINE SALES LTD 37,639.39 TEVAN ENTERPRISES LTD 29,719.61 THE ADVISORY BOARD COMPANY 38,791.65 THE DOUGLAS STEWART COMPANY 26,434.84 THE LAMAR COMPANIES 28,910.38 THE PEPSI BOTTLING GROUP 97,526.58 THOMAS CAREY 41,113.21 TILLICUM LELUM ABORIGINAL 29,500.00 TINSMITH MECHANICAL LTD 91,624.80 TOPLINE ROOFING LTD. 63,827.68 UNITY BUSINESS SYSTEMS LTD 47,771.20 UNIVERSITY OF HERTFORDSHIRE 116,311.06 UNIVERSITY OF THE FRASER VALLEY 70,578.00 UNIVERSITY OF VICTORIA 79,628.20 UNIVERSITY, COLLEGE & INSTITUTE PROTECTION PGRM 95,678.02 VALLEY BUILDING SUPPLIES 29,729.31 VAN ISLE FOOD EQUIPMENT LTD. 54,258.37 VANCOUVER ISLAND CONFERENCE CENTRE 42,050.19 VANCOUVER ISLAND HEALTH AUTHORITY (VIHA) 49,885.20 VANCOUVER ISLAND NEWSPAPER GROUP 55,554.81 VANCOUVER ISLAND UNIVERSITY STUDENT UNION 37,495.50 VIUFA - VANCOUVER ISLAND UNIVERSITY FACULTY ASSN 83,092.53 WESTERN FINANCIAL GROUP 25,764.75 WESTERRA EQUIPMENT LP 47,191.12 WILD ROVER ENTERPRISES LTD. 56,625.02 WINDLEY CONTRACTING LTD. 93,963.62 WORDSWORTH & ASSOCIATES 71,011.14 WR ADDISON LOADING & HAULING 70,318.74 Total Suppliers of Goods/Services Over $25,000 25,342,093.39 - Total of Suppliers of Goods/Services Under $25,000 10,206,606.05 Total Suppliers of Goods and Services 35,548,699.44 Total Paid to Receiver General For Canada 3,342,585.62 Total Paid for Other Fringe Benefits 11,307,301.77 Total Schedule : Suppliers of Goods and Services 50,198,586.83

of 23

Prepared Under Financial Information Regulation, Schedule 1, Section 6 and 7

Total per Schedule of Employee Remuneration and Expenses 71,699,122 Total per Schedule of Board Expenses 34,210 Total per Schedule of Suppliers of Goods and Services 50,198,587 Total per Financial Information Act Submission 121,931,918

Capital fund expenditures not included in Statement of Operations (5,869,967) Operating capital expenditures not included in Statement of Operations (1,911,530) Western Student Housing expenditures not included in Statement of Operations (750,848) High School expenditures not included in Statement of Operations (987,067) Capital fund interest on long-term debt not included in Vendor file 868,020 Capital fund amortization not included in Vendor file 7,327,559

Other Adjustments (245,010)

Reconciled Total 120,363,075

Total Expenditures, per Statement of Operations,

Consolidated Audited Finanacial Statements p.2 of Appendix 1 120,363,075

STATEMENT OF FINANCIAL INFORMATION PREPARED UNDER THE FINANCIAL INFORMATION ACT

FOR THE YEAR ENDED MARCH 31, 2013

RECONCILIATION

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VANCOUVER ISLAND UNIVERSITY

CONSOLIDATED FINANCIAL STATEMENTS

MARCH 31, 2013

VANCOUVER ISLAND UNIVERSITY Consolidated Financial Statements Table of Contents

Page Statement of Administrative Responsibility Independent Auditors' Report Consolidated Statement of Financial Position 1 Consolidated Statement of Changes in Net Debt 2 Consolidated Statement of Operations and Accumulated Surplus 3 Consolidated Statement of Cash Flows 4 Consolidated Statement of Remeasurement Gains and Losses 5 Notes to Consolidated Financial Statements 6

96 Wallace Street, Nanaimo, BC V9R 0E2 Phone: (250) 753-8251

Independent Auditors' Report To the Board of Governors of Vancouver Island University and the Minister of Advanced Education: We have audited the accompanying consolidated financial statements of Vancouver Island University, which comprise the consolidated statement of financial position as at March 31, 2013, March 31, 2012 and April 1, 2011, and the consolidated statements of changes in net debt, operations and accumulated surplus, cash flows and remeasurement gains and losses for the years ended March 31, 2013 and March 31, 2012, and a summary of significant accounting policies and other explanatory information. Management’s Responsibility for Financial Statements Management is responsible for the preparation and presentation of these consolidated financial statements in accordance with the financial reporting framework specified in Section 23.1 of the Budget Transparency and Accountability Act of the Province of British Columbia and Treasury Board Regulation 198/2011, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor’s Responsibility Our responsibility is to express an opinion on these consolidated 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 of material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors’ judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. 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 consolidated financial statements present the financial position of Vancouver Island University as at March 31, 2013, March 31, 2012 and April 1, 2011 and the results of its operations, changes in net debt, cash flows and remeasurement gains and losses for the years ended March 31, 2013 and March 31, 2012 in compliance with, in all material respects, the financial reporting framework specified in Section 23.1 of the Budget Transparency and Accountability Act of the Province of British Columbia and Treasury Board Regulation 198/2011. Emphasis of Matter

We draw attention to Note 1a which describes the financial reporting framework being followed by Vancouver Island University. Nanaimo, British Columbia

May 23, 2013 Chartered Accountants

Appendix 1 1

VANCOUVER ISLAND UNIVERSITYConsolidated Statement of Operations and Accumulated Surplus

Year ended March 31, 2013, with comparative figures for 2012

Budget 2013 2012(note 1) (restated)

RevenueProvince of British Columbia grants 58,013,778$ 59,821,620$ 61,339,559$ Government of Canada grants 1,335,968 1,402,032 1,587,127 Other grants and contracts 4,051,295 3,389,740 4,883,389 Tuition and student fees 43,398,113 44,324,798 45,041,702 Sales of goods and services 10,186,376 9,265,058 8,748,230 Investment income 1,001,317 1,308,806 1,163,773 Gifts, grants and bequests 956,540 1,041,668 1,269,947 Gain (loss) on interest rate swap derivative - (3,312) (4,373) Revenue recognized from deferred capital contributions (note 11) 3,965,850 4,171,097 3,726,700 Other 978,172 915,376 1,340,463

123,887,409 125,636,883 129,096,517

Expenses (note 18)Instruction & Student Support 111,553,624 108,790,299 109,549,007 Ancillary 12,333,785 11,572,776 10,736,679

123,887,409 120,363,075 120,285,686

Annual operating surplus - 5,273,808 8,810,831

Endowment contributions (note 17) - 150,773 185,822

Annual surplus - 5,424,581 8,996,653

Accumulated operating surplus, beginning of year 65,530,801 56,534,148

Accumulated operating surplus, end of year -$ 70,955,382$ 65,530,801$

See accompanying notes to consolidated financial statements.

Appendix 1 2

VANCOUVER ISLAND UNIVERSITYConsolidated Statement of Changes in Net Debt


Budget 2013 2012(note 1) (restated)

Annual surplus -$ 5,424,581$ 8,996,653$

Tangible capital assets:Acquisition of tangible capital assets - (7,880,201) (4,082,514) Amortization of tangible capital assets 7,018,049 7,327,559 7,279,849 Proceeds on sale of tangible capital assets - - -

7,018,049 (552,642) 3,197,335

Prepaid expenses:Acquisition of prepaid expense - 109,667 (257,903)

Changes in net remeasurement gains (losses) - (29,422) 82,403

Decrease in net debt 7,018,049 4,952,184 12,018,488

Net debt, beginning of year (87,050,783) (87,050,783) (99,069,271)

Net debt, end of year (80,032,734)$ (82,098,599)$ (87,050,783)$


Appendix 1 3

VANCOUVER ISLAND UNIVERSITYConsolidated Statement of Cash FlowsYear ended March 31, 2013, with comparative figures for 2012

2013 2012(restated)

Cash provided by (used in):Operations:

Annual operating surplus 5,273,808$ 8,810,831$ Items not involving cash:

Amortization of tangible capital assets 7,327,559 7,279,849 Revenue recognized from deferred capital contributions (4,171,097) (3,726,700) Change in employee future benefits 55,552 552,575 (Gain) loss on interest rate swap derivative (2,155) 17,417 Unrealized (Gain) loss on endowment and other investments (29,422) 82,403

Change in non-cash operating working capital:Decrease (increase) in accounts receivable 591,178 5,695,980 Decrease (increase) in prepaid expenses 109,667 (257,903) Decrease (increase) in note receivable - 466,000 Decrease (increase) in inventories held for sale (117,274) 88,640 Increase (decrease) in accounts payable and accrued liabilities 2,858,824 (4,622,136) Increase (decrease) in deferred contributions 1,736,448 (3,154,996) Increase (decrease) in deferred revenue 3,246,370 (2,427,618)

16,879,458 8,804,342

Capital activities:Cash used to acquire tangible capital assets (7,487,201) (4,082,514)

Financing activities:Repayment of long-term debt (751,456) (736,265) Increase in endowments 150,773 185,822 Proceeds from deferred capital contributions 5,712,249 1,697,347

5,111,566 1,146,904

Investing activities:Net draw (purchase) of investments (3,061,483) (784,757)

Net change in cash 11,442,340 5,083,975

Cash, beginning of year 25,479,503 20,395,528

Cash, end of year 36,921,843$ 25,479,503$

Cash is comprised of cash and cash equivalents.


Appendix 1 4

VANCOUVER ISLAND UNIVERSITYConsolidated Statement of Remeasurement Gains and Losses


2013 2012

Unrealized gains (losses) attributed to:Derivatives 5,467$ (13,044)$ Long term bonds (247,809) 79,414 Equity investments 213,505 9,358 Foreign currency translation 2,111 2,066 Short-term bonds 630

(26,726) 78,424

Amounts reclassified to the statement of operations:Equity investments (630) - Foreign currency translation (2,066) 3,979

(2,696) 3,979

Net remeasurement gains (losses) for the year (29,422) 82,403

Accumulated remeasurement gains, beginning of year (195,607) (278,010)

Accumulated remeasurement gains (losses), end of year (225,029)$ (195,607)$


Appendix 1 5

Vancouver Island University (the "University") is a post-secondary educational institution incorporated under the amended University Act (Bill 34 was enacted on September 1, 2008). The University is a registered charity, governed by a Board of Governors, the majority of which are appointed by the Provincial Government of British Columbia. The University offers a broad range of program options including undergraduate and graduate degrees, career diplomas, and trades training at its Nanaimo, Cowichan, Parksville and Powell River campuses. 1. Significant Accounting Policies

The consolidated financial statements are prepared in accordance with the following principles: a. Basis of accounting

In 2010, a directive was provided by the Province of British Columbia Treasury Board (“Treasury Board”) through Government Organization Accounting Standards Regulation 257/2010 requiring the University to adopt Public Sector Accounting Board (PSAB) standards of the Canadian Institute of Chartered Accountants (CICA) without any PS4200 elections from their first fiscal year commencing after January 1, 2012. In March 2011, PSAB released a new Public Sector Accounting Standard PS 3410 “Government Transfers”. In November 2011, Treasury Board provided a directive through Restricted Contributions Regulation 198/2011 providing direction for the reporting of restricted contributions whether they are received or receivable by the University before or after this regulation was in effect. The Treasury Board direction on the accounting treatment of restricted contributions is as described in Note 1c. These consolidated financial statements have been prepared in accordance with the financial reporting framework described above.

b. Basis of consolidation The University has consolidated the assets, liabilities, revenues and expenses of all funds and certain controlled entities after the elimination of inter-entity transactions and balances. The consolidated financial statements include the accounts of the University, its wholly owned subsidiary, Western Student Housing Ltd., and its controlled entities, Vancouver Island University Foundation (the "Foundation"), Malaspina International High School and Malaspina High School (collectively “the High Schools”), and Milner Gardens and Woodland Society (“Milner Gardens”). Western Student Housing Ltd. manages real-estate holdings of the University used for student residences. The Foundation is a registered charity incorporated under the Society Act (British Columbia). The main purpose of the Foundation is fundraising in order to further the interests of the University and administering the University’s endowment funds. The High Schools are registered charities incorporated under the Society Act (British Columbia). They jointly operate a private high school for local and international students. The High Schools’ fiscal year-end of June 30, 2012 have been consolidated into these financial statements. No material transactions or events have occurred between July 1, 2012 and March 31, 2013.

Appendix 1 6

1. Significant Accounting Policies (continued) Milner Gardens and Woodland Society manage donated funds and operate fundraising events specifically in support of Milner Gardens. The Society’s fiscal year-end of March 31, 2012 has been consolidated into these financial statements. Material transactions between April 1, 2012 and March 31, 2013 have been incorporated into the financial statements.

c. Revenue recognition

Revenue is recognized when amounts can be reasonably estimated and when collection is reasonably assured as follows: Operating government grants with or without eligibility criteria stipulations are recognized when received or receivable. Grants, containing stipulations as to their use, are recognized as revenue in the period the transfer is authorized and all eligibility criteria have been met, except when and to the extent that the transfer gives rise to an obligation and meets the definition of a liability. Other unrestricted revenue, including student fees, interest, and sales of goods and services, are reported as revenue at the time the services or products are provided. In accordance with Regulation 198/2011, contributions restricted for the purpose of acquiring or developing a depreciable tangible capital asset are recorded as deferred contributions until the amount is invested in tangible capital assets. If the tangible capital asset has a limited life, the amount invested is recorded as a deferred capital contribution and amortized over the useful life of the asset. Amortization of deferred capital contributions for tangible capital assets is recorded on a straight-line basis over the estimated life of the related asset and commences in the year of purchase or substantial completion of construction. Investment income includes interest recorded on an accrual basis and dividends recorded as declared and realized gains and losses on the sale of investments. Endowment contributions are recognized in the period in which they are received or earned. Investment income earned on externally restricted contributions is deferred until needed for the specific purpose. Gifts-in-kind are only recorded if the University would have otherwise have paid for them. Gifts-in-kind are recorded at fair market value on the date of the donation or at a nominal value when fair value cannot be reasonably determined. Unrestricted donations and grants are recorded as revenue when receivable if the amounts can be estimated and collection is reasonable assured. Pledges from donors are recorded when payment is received or when the transfer of property is complete. Volunteers contribute service to assist the University in carrying out its mission. Such contributions of services are not recognized in these financial statements.

d. Cash and cash equivalents Cash and cash equivalents include highly liquid investments with a maturity of 90 days or less at the date of purchase.

Appendix 1 7

1. Significant Accounting Policies (continued)

e. Inventories for resale

Inventories held for resale, including books, food, and school supplies are recorded at the lower of cost or net realizable value using the weighted average method. Cost includes the original purchase cost, plus shipping and applicable duties. Net realizable value is the estimated selling costs less any costs to sell.

f. Interest rate swap derivative

An interest rate swap is a derivative financial contract between two parties who agree to exchange fixed rate interest payments for floating rate payments on a predetermined notional amount and term. The University has entered into swap agreements with the Royal Bank of Canada to manage the interest rate exposure associated with debt obligations. Because long-term swap agreements effectively and completely hedge the underlying short-term obligations, the University reflects the obligation as debt in the financial statements.

g. Employee future benefits The University and its employees make contributions to two multi-employer joint trustee plans. These plans are defined benefit plans, providing a pension on retirement based on the member’s age at retirement, length of service and highest earnings averaged over five years. Inflation adjustments are contingent upon available funding. As the assets and liabilities of the plans are not segregated by institution, the plans are accounted for as defined contribution plans and any contributions of the University to the plans are expensed as incurred. Sick leave benefits and retirement severance benefits are also available to the University’s employees. The costs of these benefits are actuarially determined based on service and best estimates of retirement ages and expected future salary and wage increases. The obligation under these benefit plans are accrued based on projected benefits as the employees render services necessary to earn the future benefits. Actuarial gains and losses are amortized over the expected average remaining service life of the employees.

h. Non-financial assets

Non-financial assets are not available to discharge existing liabilities and are held for use in the provision of services. They have useful lives extending beyond the current year and are not intended for sale in the ordinary course of operations

(i) Tangible capital assets

Tangible capital asset acquisitions are recorded at cost which includes amounts that are directly attributable to acquisition, construction, development or betterment of the asset. Interest is not capitalized whenever external debt is issued to finance the construction of tangible capital assets. Donated assets are recorded at fair value as of the date of donation. Amortization of capital assets is recorded on a straight line basis over the estimated life of the asset, commencing with a half year amortization in the year of acquisition or substantial completion of construction, as shown below. Land is not amortized as it is deemed to have a permanent value:

Appendix 1 8


Asset Years Buildings 40 Library books 10 Site Improvements 10 Computing equipment & software 5 Furniture and equipment 5 Vehicles 5 Leasehold improvements Term of Lease

Assets under construction are not amortized until the asset is available for productive use. (a) Land use rights

Land use rights are not recognized as assets in the financial statements (b) Works of art and historic treasures

Works of art and historic treasures are not recognized as assets in the financial statements

i. 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 in a foreign currency are translated using the exchange rates at the statement of financial position date. Any gain or loss resulting from a change in rates between the transaction date and the settlement date or balance sheet date is recognized in the Statement of Remeasurement Gains and Losses. In the period of settlement, the related cumulative remeasurement gain or loss is reversed in the Statement of Remeasurement Gains and Losses and the exchange gain or loss in relation to the exchange rate at the date of the item’s initial recognition is recognized in the Statement of Operations.

j. Use of estimates

The preparation of financial statements in conformity with Treasury Board regulations requires management to make estimates and assumptions that affect the reported amounts 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 reporting period. Significant areas requiring the use of management estimates include the impairment of assets (provisions are made for slow moving and obsolete inventory), provision for doubtful accounts, amortization period for tangible capital assets and deferred capital contributions, and actuarial assumptions for employee future benefits. Actual results could differ from management’s best estimates as additional information becomes available in future years. As adjustments to estimates become necessary they are reported in earnings in the period in which they become known.

Appendix 1 9


k. Financial instruments Financial instruments are classified into two categories: fair value or cost. (i) Fair value category: Cash and cash equivalents are recorded at fair value due to the short

term nature of the instrument. Investments that are managed and evaluated as a group and derivative instruments are reflected at fair value as at the reporting date. Sales and purchases of investments are recorded on the trade date. Transaction costs related to the acquisition of investments are recorded as an expense. Unrealized gains and losses on financial assets are recognized in the Statement of Remeasurement Gains and Losses until such time that the financial asset is derecognized due to disposal or impairment. At the time of derecognition, the related realized gains and losses are recognized in the Statement of Operations and Accumulated Surplus and related balances reversed from the Statement of Remeasurement Gains and Losses.

(ii) Cost category: Gains and losses are recognized in the Statement of Operations and Accumulated Surplus when the financial asset is derecognized due to disposal or impairment. Sales and purchases of investments are recorded on the trade date. Transaction costs related to the acquisition of investments are included in the cost of the related investments.

(a) Accounts receivable and due from government/other government organizations are measured at amortized cost using the effective interest method.

(b) Accounts payable and accrued liabilities are measured at amortized cost. Any gains, losses or interest expense is recorded on the Statement of Operations and Accumulated Surplus depending on the nature of the financial liability that gave rise to the gain, loss or expense

l. Budget figures

Budget figures have been provided for comparative purposes and have been derived from the 2012-2013 Consolidated Resource Plan approved by the Board of Governors of the University on May 24, 2012. The budget is reflected in the Statement of Operations and Accumulated Surplus and the Statement of Changes in Net Financial Debt.

2. Adoption of New Financial Reporting Framework Effective April 1, 2012, the University adopted the financial reporting framework described in note 1(a). These financial statements are the first financial statements for which the University has applied this financial reporting framework. The impact of the adoption of this financial reporting framework on the University’s accumulated surplus (deficit) position at the date of transition and the comparative annual surplus is presented below. These accounting changes have been applied retroactively with restatement of prior periods.

Appendix 1 10

2. Adoption of new financial reporting framework (continued) The University has elected to use the Retirement and Post-Employment Benefits exemption allowed upon first-time adoption. Under this election the University is permitted to delay application of the new discount rate until the sooner of date of the next actuarial valuation or three years from the date of transition. The University has also elected to record all cumulative gains and losses from inception to date of transition into accumulated surplus.

Key adjustments on the University’s financial statements resulting from the adoption of this accounting standard are as follows: (a) Employee Future Benefits

i. Previously, the University was not required to record an accrued benefit obligation related

to sick leave benefits as the benefits do not vest. Canadian Public Sector Accounting Standards require that a liability and an expense be recognized for post-employment benefits and compensated absences that vest or accumulate in the period in which employees render services to the University in return for the benefits.

ii. The corridor method previously used required that only differences greater then 10% between the actuarial liability for employee future benefits and the actual liability needed to be amortized to income in a systematic and rational manner over the remaining average service period of the related employees. This provision has now been removed resulting in a requirement to amortize all differences between the actuarial liability for employee future benefits and the actual liability to income.

An adjustment was made to recognize a liability and an expense related to the employee future benefit changes described above. The resulting adjustment to the liability for employee future benefits at April 1, 2011 was $(906,765). An additional expense of $191,708 was recognized in the 2012 fiscal year. The liability for employee future benefits recorded at March 31, 2012 was decreased to $10,951,723 as a result of these adjustments.

(b) Usage rights are not included in the definition of a tangible capital asset under Canadian Public

Sector Accounting Standards. The 2012 opening balances have been revised to exclude usage rights of $350,000, previously recorded as a capital asset.

(c) Canadian Public Sector Accounting Standards require consolidation of organizations controlled

by the University. Previously, the High Schools and Milner Gardens were not consolidated. The resulting adjustments resulted in a net increase to opening surplus of $944,633 and a decrease in the annual surplus of $97,357 for the 2012 comparative figures.

(d) Canadian Public Sector Accounting Standards requires that income earned on endowments be deferred until such time as it is utilized for the specific purpose dictated by the terms of the endowment. Previously, income earned on endowment contributions was recognized as earned. This change resulted in a decrease in the opening surplus of $1,301,284 and a decrease in the annual surplus of $251,307 for the 2012 comparative figures ,

Appendix 1 11

2. Adoption of new financial reporting framework (continued) Summary of adjustments

April 1, 2011 continuity Accumulated surplus, as previously reported

$ 56,223,996

April 1, 2011 adjustments

Write-off Land usage rights (350,000)

Consolidation of previously unconsolidated entities 944,633

Defer endowment revenue (1,301,284)

Employee Future benefits and compensated absences 906,765

Other deferral and accrual adjustments (167,972)

32,142 Accumulated surplus, as restated $ 56,256,138

March 31, 2012 continuity

Accumulated surplus, as previously reported

$ 65,831,237

April 1, 2011 adjustments (as above) 32,142 March 31, 2012 adjustments

Consolidation of previously unconsolidated entities (97,357)

Defer endowment revenue (276,330)

Employee Future benefits and compensated absences (191,708)

Other deferral and accrual adjustments 37,210 Accumulated surplus, as restated $ 65,335,194

3. Financial Instruments

Fair Value of Financial Instruments Public Sector Accounting Standards define the fair value of a financial instrument as the amount at which the instrument could be exchanged in a current transaction between willing parties. The University uses the following methods and assumptions to estimate the fair value of each class of financial instruments for which the carrying amounts are included in the Consolidated Statement of Financial Position under the following captions:

• Cash and cash equivalents, accounts receivable, and accounts payable and accrued liabilities approximate fair value because of the short maturity of these instruments

Appendix 1 12

3. Financial Instruments (continued)

• Investments and the interest rate swap derivative fair value is determined by published price quotations in an active market

• Long term debt is recorded at amortized cost Financial asset impairment At each year-end date, the University is required to evaluate and record any other-than-temporary impairment of its financial assets, other than those carried at fair value. Accordingly, the University has compared the carrying value of each of these financial assets to its fair value as at March 31, 2013. No provision for impairment was recorded in the current year, as the fair value of all financial assets exceeded or did not differ significantly from their carrying value. Risk Management Policy The University, as part of its operations, has established objectives (i.e., hedging of risk exposures and avoidance of undue concentrations of risk) to mitigate credit risk as risk management objectives. In seeking to meet these objectives, the University has entered into long-term interest rate swap agreements to manage interest rate exposure associated on debt obligations. By setting interest rates on a long-term basis the University has completely hedged the underlying short-term obligations. All significant financial assets and financial liabilities of the University are either recognized or disclosed in the financial statements together with other information relevant for making a reasonable assessment of future cash flows, interest rate risk and credit risk.

Financial instruments are exposed to risk through the normal course of operation. These risks are managed through the University’s collection procedures, investment guidelines and other internal policies and procedures. These risks include: a. Foreign currency risk

Foreign currency risk is the risk that the fair value of a financial instrument will fluctuate because of changes in foreign currency rates. The University has no material exposure to changes in foreign currency rates.

b. Credit risk Financial instruments that potentially subject the University to concentrations of credit include cash and cash equivalents, accounts receivable, the interest rate swap derivative financial instrument, and investments in other than equity investments. The maximum credit risk exposure is $56,946,709 (2012 - $45,678,393). 11% of the accounts receivable balance is due from the Provincial government and is thought to be fully collectible. The University’s credit exposure is limited due to the large customer base, regular monitoring of the receivables and it provides allowances for potentially uncollectable amounts. Total financial instruments that are past-due, but not considered to be impaired, are $259,467 (2012 - $148,548).

Appendix 1 13

3. Risk Management Policy (continued) The University believes there is minimal credit risk associated with its marketable securities, accounts receivable, interest rate swap derivative financial instrument or note receivable as the University expects that its counterparties will meet their obligation.

c. Interest rate risk Interest rate risk is the risk that the value of a financial instrument might be adversely affected by a change in interest rates. Changes in market interest rates may have an effect on the cash flows associated with some financial assets and liabilities, known as cash flow risk, and on the fair value of other financial assets or liabilities, known as price risk. In seeking to minimize the risks from interest rate fluctuations, the University manages exposure on its marketable securities, note receivables, short term investments, and endowment and other investments which have fixed interest rates by varying the maturity dates. The University manages exposure on the interest-bearing investments by investing in a widely diversified portfolio with varying fixed and variable interest rates and maturity dates. Exposure on its debt is managed by using declining balance interest rate swaps. The University entered into two interest rate swap agreements. The agreements were entered into in November 2003 and June 2004 for initial amounts of $4,900,000 and $13,200,000 to fix the interest rates on the Royal Bank of Canada term loans. The first swap agreement stipulates that the University receives a floating rate equal to the three month Canadian Banker’s Acceptance plus a spread of 0.35% and pays interest on the swap at 5.79%. The second swap agreement stipulates that the University receives a floating rate equal to the three month Canadian Banker’s acceptance plus a spread of 0.30% and pays interest on the swap at 6.31%. The swaps mature on February 2017 and August 2030 matching the maturity date of the underlying debt. The University did not elect to use hedge accounting for these agreements.

d. Liquidity risk

Liquidity risk is the risk that the University will encounter difficulty in meeting obligations associated with financial liabilities. The University enters into transactions to purchase goods and services, lease premises and to borrow funds from financial institutions to finance capital projects for which payments are required at various dates. Liquidity risk is measured by reviewing the University’s future net cash flows for the possibility of a negative net cash flow.

e. Other price risk Other price risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices (other than those arising from interest rate risk or foreign currency risk), whether those changes are caused by factors specific to the individual financial instrument or its issuer, or factors affecting all similar financial instruments traded in the market. The University enters into transactions to purchase investments, for which the market price fluctuates. The University manages this risk through its investment policy which prescribes the maximum amount of investments that can be made in any one investment type.

Appendix 1 14

4. Cash and cash equivalents Vancouver Island University cash balances held on deposit in a single Chartered Bank are in excess of the $100,000 insured by the Canadian Deposit Insurance Corporation. Vancouver Island University Foundation cash balances are held on deposit in a single Credit Union and are fully insured. Restricted cash balances are externally restricted for scholarships and bursaries or to support Milner Gardens. 2013 2012

(restated) Restricted cash

$ 1,327,817

$ 2,027,510

Unrestricted cash and demand deposits 35,594,026 23,451,993

Balance, end of year $ 36,921,843 $ 25,479,503 5. Accounts receivable

2013 2012 (restated)

Trade accounts receivable

$ 2,112,921

$ 2,050,312

Due from Federal government 397,219 819,816

Due from Provincial government 422,510 643,854

Due from Other government organizations 259,964 269,809 Balance, end of year $ 3,192,613 $ 3,783,791

6. Investments

2013 2012

(restated) Endowment

$ 11,156,696

$ 11,005,922

Investments 23,178,407 20,267,698

Internally restricted investments 1,000,000 1,000,000 Balance, end of year $ 35,335,103 $ 32,273,620

Fixed term investments mature between December 2013 - December 2017 and have a total maturity/face value of $16,419,725 (2012 - $15,842,196). Interest rates range between 2.1% and 4.9%.

Appendix 1 15

7. Accounts payable and accrued liabilities

2013 2012 (restated)

Trade payables and accrued liabilities

$ 6,476,461

$ 5,619,480

Salaries and benefits payable 2,126,060 1,860,396

Payable to other government agencies 1,811,999 75,820 $ 10,414,520 $ 7,555,696

8. Employee future benefits

a. Vacation, termination benefits, and compensated absences Employees with ten or more years of service are entitled to receive special payments upon retirement or termination as specified by collective and administrator agreements. These payments are based upon accumulated sick credits and entitlements for each year of service. 2013 2012

(restated)

Accrued benefit obligation, beginning of year $ 10,589,462 $ 10,399,149 Unamortized actuarial gains (losses), beginning of year 362,261 - 10,951,723 10,399,149 Current service cost 399,821 398,637 Interest cost 224,031 223,494 Benefits paid (453,085) (317,739) Amortization of actuarial (gain) loss (36,226) - Increase (decrease) in vacation liability (78,989) 248,182 Accrued benefit obligation, end of year $ 11,007,275 $ 10,951,723

Accrued benefit obligation, end of year consists of: Accrued liability, end of year $ 10,548,325 $ 10,589,462 Unamortized actuarial gains (losses), end of year 458,950 362,261 Accrued benefit obligation, end of year $ 11,007,275 $ 10,951,723

The significant actuarial assumptions adopted in measuring the University’s accrued benefit obligation are as follows:

2013 2012 Discount rate for termination benefits 5.80% 5.80% Discount rate for compensated absences 3.75 3.75 Expected future inflation rates 2.00 2.00 Expected wage and salary increases 2.75 2.75

Appendix 1 16

8. Employee future benefits (continued)

b. Pension liability The University and its employees contribute to College Pension Plan and Municipal Pension Plan, jointly trusteed pension plans. The boards of trustees for these plans represent plan members and employers and are responsible for the management of the pension plan including investment of assets and administration of benefits. The pension plans are multi-employer contributory pension plans. Basic pension benefits provided are defined. The College Pension plan has about 13,000 active members from senior administration and instructional staff and approximately 5,000 retired members. The Municipal Pension Plan has about 173,000 active members, with approximately 5,600 from post-secondary institutes.

The most recent actuarial valuation for the College Pension Plan as at August 31, 2009 indicated a $28 million deficit for basic pension benefits. The next valuation will be as at August 31, 2012 with results available in 2013. The most recent actuarial valuation for the Municipal Pension Plan as at December 31, 2009 indicated a $1.024 billion deficit for basic pension benefits. The next valuation will be as at December 31, 2012 with results available in 2013. Defined contribution plan accounting is applied to the plan as the plan exposes the participating entities to actuarial risks associated with the current and former employees of other entities, with the result that there is no consistent and reliable basis for allocating the obligation, plan assets and cost to individual entities participating in the plan.

The University paid $5,738,328 (2012 - $5,377,748) for employer contributions to the Plans during the fiscal year.

9. Deferred revenue

Deferred revenue includes unspent funds externally restricted for non-capital purposes from all sources except Federal and Provincial government reporting entities. The main components are tuition, grant and contract service funding, and donations as listed below.

2013

2012 (restated)

Tuition $ 11,456,610

$ 9,366,901 Donations 3,391,434 2,099,430 Grant and contract service funding 1,686,344 1,820,315 Other 343,588 344,960 $ 16,877,976 $ 13,631,606

Appendix 1 17

10. Deferred contributions

Deferred operating and special purpose contributions include unspent grant and contract services contributions externally restricted for non-capital purposes from Federal and Provincial government reporting entities. Changes in deferred contributions are as follows:

2013 2012

(restated)

Balance, beginning of year $ 2,640,076 $ 5,795,072 Contributions received during the year 4,772,594 2,681,160 Revenue recognized from deferred contributions (3,036,146) (5,836,156) Balance, end of year $ 4,376,524 $ 2,640,076

11. Deferred capital contributions

Contributions for capital that meet the definition of a liability are referred to as deferred capital contributions. Amounts are recognized into revenue as the liability is extinguished over the useful life of the asset. Treasury Board provided direction on accounting treatment as disclosed in note 1. Changes in the deferred capital contributions balance are as follows:

2013 2012

(restated) Deferred contributions, beginning of year

$ 101,196,748

$ 103,183,101

Contributions received during the year - cash 5,712,249 1,740,347 Contributions received during the year – in-kind 393,000 - Revenue recognized from deferred capital contributions (4,171,097) (3,726,700) Deferred contributions, end of year $ 103,130,900 $ 101,196,748

12. Debt

2013 2012

(restated) Royal Bank of Canada Term loan with blended quarterly payments bearing interest fixed at 6.31% through an interest rate swap, due August 2030. $ 11,074,000 $ 11,417,000 Royal Bank of Canada Term loan with blended monthly payments bearing interest fixed at 5.79% through an interest rate swap, due February 2017. 1,958,000 2,396,000 Accrued interest 46,328 16,784

$ 13,078,328 $ 13,829,784 Interest expense for the year on outstanding debt $ 868,020 $ 884,402

Appendix 1 18

12. Debt (continued)

Minimum principal payments required over the next five years and thereafter are as follows: 2014 $ 827,000 2015 874,000 2016 927,000 2017 932,000 2018 466,000 thereafter 9,006,000 $ 13,032,000

13. Tangible capital assets

Cost Balance at March

31, 2012 Additions & WIP

Transfers Writedowns

Balance at March 31,

2013 Land $ 12,401,247 - - 12,401,247

Buildings 184,793,870 3,878,944 - 188,672,814

Work In Progress (“WIP”) 103,818 391,962 - 495,780

Site improvements 7,500,187 - 308,184 7,192,003

Leasehold improvements 447,213 - 447,213 -

Furniture and equipment 21,842,012 3,195,092 1,803,691 23,233,413

Computing equipment and software 8,393,860 171,787 1,019,686 7,545,961

Library books 3,565,833 211,983 598,850 3,178,966

Vehicles 494,479 30,434 - 524,913

$ 239,542,519 $ 7,880,202 $ 4,177,624 $ 243,245,097

Accumulated amortization

Balance at March 31, 2012 Writedowns

Amortization expense

Balance at March 31,

2013 Land $ - $ - $ - $ - Buildings 52,610,094 - 4,668,335 57,278,429

Work In Progress - - - -

Site improvements 6,763,336 308,184 331,037 6,786,189

Leasehold improvements 447,213 447,213 - -

Furniture and equipment 18,678,852 1,803,691 1,559,314 18,434,475

Computing equipment and software 7,583,555 1,019,686 384,114 6,947,983

Library books 2,325,414 598,850 282,819 2,009,383

Vehicles 94,820 - 101,941 196,761

$ 88,503,284 $ 4,177,624 $ 7,327,560 $ 91,653,920

Appendix 1 19

13. Tangible Capital Assets (continued)

Net book value March 31, 2013

Net book value March 31, 2012

Land $ 12,401,247 $ 12,401,247 Buildings 131,394,385 132,183,776

Work In Progress 495,780 103,818

Site improvements 405,814 736,851

Furniture and equipment 4,798,938 3,163,160

Computing equipment and software 597,978 810,305

Library books 1,169,583 1,240,419

Vehicles 328,152 399,659

$ 151,591,877 $ 151,039,235

(a) Contributed tangible capital assets

Additions to land, buildings, and equipment include the following contributed tangible capital assets:

2013 2012

Land for the benefit of Milner Gardens $ - $ 124,000 Buildings for the benefit of Milner Gardens - 133,000 Equipment 393,000 - $ 393,000 $ 257,000

(b) Works of art and historical treasures

The Institution manages and controls various works of art and non-operational historical cultural assets including artifacts, paintings and sculptures located at University sites and public display areas. These assets are not recorded as tangible capital asses and are not amortized.

(c) Writedown of tangible capital assets The writedown of tangible capital assets during the year was $4,177,624 (2012 - $4,616,526). Writedowns were only applied to fully depreciated tangible capital assets that have reached pre-established age thresholds set beyond their useful lives.

The University has no direct insurance coverage against loss of any of its capital assets except vehicles. The insurance on University property is the responsibility of the Province of British Columbia. Claims for loss are submitted to the Province of British Columbia for consideration for compensation. During the year ending March 31, 1999, a building was constructed by the Malaspina Students' Union Society on the campus owned by the University in Nanaimo. The cost of this building has been financed by the Student Union, however, title to the building remains with the University. The University has entered into a lease agreement with the Student Union in the amount of $1 per annum for a period of 50 years. The building is not recorded as an asset in the financial statements of the University.

Appendix 1 20

14. Accumulated operating surplus The accumulated operating surplus is comprised of the following: 2013 2012

(restated) Investment in tangible capital assets

$ 35,524,422

$ 36,157,788

Endowments (note 17) 11,156,695 11,005,922 Internally restricted surplus 17,344,962 12,703,808 Unrestricted surplus 6,929,303 5,663,283 Total accumulated operating surplus $ 70,955,382 $ 65,530,801

15. Contractual obligations

The nature of the University’s activities can result in multiyear contracts and obligations whereby the University will be committed to make future payments. Currently the University has no significant contractual obligations related to operations that extend beyond the 2013-14 fiscal year.

16. Contingencies

a. Letters of credit: The University had a total of $506,518 in letters of credit outstanding at March 31, 2013 for a bond posted on behalf of Malaspina International High School (the “High School”) to the Ministry of Finance and Corporate Relations. These letters of credit can be drawn upon to refund tuition to students if the High School fails to provide or complete the related academic program. No provision has been made for this contingency in the financial statements.

b. Legal claims: The nature of the University’s activities is such that there is usually litigation pending or in process at any time. With respect to unsettled claims at March 31, 2013, management believes the University has valid defenses and appropriate insurance coverage in place. In the event any claims are successful, management believes that such claims are not expected to have a material effect on the University’s financial position.

Appendix 1 21

17. Endowments Endowments form part of the accumulated surplus balance and consist of externally restricted donations, the principal of which is required to be maintained in perpetuity. The endowment fund balance is restricted for the payment of scholarships and bursaries, and the two BC Regional Innovation Chairs (Tourism and Sustainable Rural Development & Aboriginal and Early Childhood Education). Investments are managed by an external fund management company. Scholarships and bursaries are controlled by the Foundation and chairs are controlled by VIU. On March 15, 2012, the VIU Board of Governors passed policy 42.11 granting full authority to the VIU Foundation to manage VIU endowment funds consistent with VIU Foundation policy. Endowments included as part of accumulated surplus is as follows:

2013 2012

(restated) Balance, beginning of year

$ 11,005,922

$ 10,820,100

Contributions 150,773 185,822 Balance, end of year $ 11,156,695 $ 11,005,922

18. Expenses by object

The following is a summary of expenses by object: 2013 2012

(restated) Salaries & benefits

$ 85,860,134

$ 85,239,632

Fees & purchased services 8,288,674 8,095,579 Travel & training 2,329,246 2,520,992 Scholarships & bursaries 1,758,554 1,360,201 Equipment rental & maintenance 1,325,926 1,795,205 Utilities, insurance & taxes 2,545,051 2,377,277 Materials & supplies 6,025,683 6,708,232 Amortization of capital assets 7,327,559 7,279,849 Cost of goods sold 4,034,228 4,024,317 Interest on long term debt 868,020 884,402 $ 120,363,075 $ 120,285,686

Under the University Act, the University has been designated a special purpose teaching university. As such, the University’s primary purpose is the delivery of educational services. Segmented reporting has not been provided as it would not provide additional material information to users of the financial statements.

Appendix 1 22

19. Comparative Figures Certain comparative figures have been restated to conform to current year presentation.

Appendix 1 23

STATEMENT OF FINANCIAL INFORMATION PREPARED UNDER … · 2019. 12. 16. · STATEMENT OF FINANCIAL...

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