Annual Report 2019–2020 Table of Contents
Accountability Statement...... 1 Enrolment Plan and Capital Plan...... 31 Program Changes...... 14 Message from the Board Information Technology...... 34 Chair and the President...... 2 Research, Applied Research, and Scholarly Activities...... 20 Self-Generated Revenue...... 35 Public Interest Disclosure (Whistleblower Protection) Act...... 4 Regional Stewardship, Financial and Budget Foundational Learning, Information...... 36 Operational Overview: Underrepresented Learners...... 22 A Year in Review...... 5 Internationalization...... 29 Goals, Priority Initiatives, Expected Outcomes, and Performance Measures...... 10 Accountability Statement
The NorQuest College Annual Report for the year ended June 30, 2020 was prepared under the Board’s direction in accordance with the Fiscal Planning and Transparency Act and ministerial guidelines established pursuant to the Post-secondary Learning Act. All material economic, environmental, or fiscal implications of which we are aware have been considered in the preparation of this report.
[Original signed by Carla Madra]
Carla Madra Chair, Board of Governors December 16, 2020
Management’s Responsibility for Reporting
NorQuest College’s management is responsible for the preparation, accuracy, objectivity, and integrity of the information contained in the annual report including the financial statements, performance results, and supporting management information. Systems of internal control are designed and maintained by management to produce reliable information to meet reporting requirements. The system is designed to provide management with reasonable assurance that transactions are properly authorized, are executed in accordance with all relevant legislation, regulations, and policies, reliable financial records are maintained, and assets are properly accounted for and safeguarded.
The annual report has been developed under the oversight of the institution audit committee, as well as approved by the NorQuest College Board of Governors and is prepared in accordance with the Fiscal Planning and Transparency Act and the Post-secondary Learning Act.
The Auditor General of the Province of Alberta, the institution’s external auditor appointed under the Post-Secondary Learning Act, performs an annual independent audit of the consolidated financial statements which are prepared in accordance with Canadian public sector accounting standards.
[Original signed by Carolyn Campbell]
Carolyn Campbell President and CEO
ANNUAL REPORT 2019–2020 1 Message from the Board Chair and the President
Now more than ever, NorQuest College continues to grow and adapt to a changing economic and educational landscape, and is a leader in growing our province through the transformation of our learners’ lives.
As our society continues to adapt to the global COVID-19 pandemic, NorQuest certainly faces unprecedented challenges. At the same time, our college is resilient and charting an exciting path ahead. While resolving ourselves to the present, we are also looking to the future by collaborating with health authorities, government, industry, and communities to advance our important role in creating jobs and accelerating Alberta’s economy.
The past year has been a time of change and transition for NorQuest. After Dr. Jodi Abbott stepped down as President and CEO of the college in January 2020, we embarked on a search for our next leader. In July 2020, the Board of Governors was pleased and excited to welcome Carolyn Campbell as our new President and CEO.
As we think about the changes in learning affecting the world due to the disruption of a pandemic, we think progressively about the campus of the future and how we will get there. NorQuest knows that our past work on diversity and inclusion for all learners is an important guideline as our student base and Canadian society changes and evolves. Further, NorQuest continues to add value to the community by breaking new ground with unique educational programming such as our Justice, Settlement Studies, Energy Management, and Indigenous Studies diploma programs, which sit alongside our proven endeavors.
NorQuest College is in the final phases of our downtown campus development project and is a key player in Alberta’s economy and the education sector. Our significant growth, community impact, and valuable collaborations with business, industry, and government will ensure that NorQuest continues to provide valuable and life-changing education to our learners and the community.
[Original signed by Carla Madra] [Original signed by Carolyn Campbell]
Carla Madra Carolyn Campbell Chair, Board of Governors President and CEO
2 NORQUEST COLLEGE Board of Governors July 1, 2019 – June 30, 2020
Carla Madra Jennifer Cleall Troy Chalifoux Chair, Board of Governors Public Member Public Member Public Member (until April 22, 2020) Joette Decore Dr. S. Ann Colbourne Public Member Jim Gurnett Chair, Board of Governors Public Member Chris Lavin (until August 1, 2019) (until October 17, 2019) Public Member Dr. Jodi L. Abbott, ICD.D Kanwal Lali Lily Le President & CEO Public Member Public Member (until January 2020) (until April 22, 2020) Albert Nsapu Joan Hertz Dalyce McElhinney Student Member Interim President and CEO Public Member (January – June 2020) Dr. Philomina Okeke-Ihejirika (until October 17, 2019) Public Member Brian Hjlesvold Corey Stroeder Vice-Chair AJ Sandhu Non-Academic Staff Member Public Member Student Member (until May 13, 2020)
Jenny Adams Leslie Sayer Public Member Academic Staff Member
Bilan Ahmed Terry Anderson Public Member Public Member (until October 17, 2019) Gayle Burnett Public Member
ANNUAL REPORT 2019–2020 3 Public Interest Disclosure (Whistleblower Protection) Act
The Public Interest Disclosure (Whistleblower Protection) Act, which came into force June 1, 2013 requires that the college report annually on the number of disclosures that have been made to the college’s Designated Officer, number of investigations commenced, and any measures taken from an investigation in relation to the wrongdoing.
2019–2020 Reports
Inquiry Types: Number Received:
General Inquiries 0 Disclosures of Wrongdoing 2 Investigations 2 Reports Written 2
For the fiscal year July 1, 2019 to June 30, 2020 the college received two safe disclosures in accordance with the Public Interest Disclosure (Whistleblower Protection) Act.
1. The first complaint was investigated and the finding was there was insufficient evidence to prove, on a balance of probabilities, that any violations occurred. The matter was closed on December 17, 2019.
2. The second complaint was investigated and the finding was that there was insufficient evidence to prove, on a balance of probabilities, that any violations of the Code of Conduct occurred. There were some recommendations provided to the VP, Academic to address the concerns which included sharing an update on the outcome with the division’s employees, setting expectations for how these employees worked together going forward, reviewing teaching assignments, and adding another Associate Dean position. The matter was closed May 1, 2020.
4 NORQUEST COLLEGE Operational Overview: A Year in Review
Like all post-secondary institutions in Alberta, COVID-19 has had a significant impact on NorQuest College. At the outset of the COVID-19 pandemic, the entire college moved quickly over 14 days to not only transition more than 1,000 employees into a work from home environment, but also establish online instruction for more than 10,000 students so the winter 2020 term could successfully conclude and the spring and fall 2020 terms would happen as smoothly as possible. The college’s signature in-person events, such as our annual Open House and 1000 Women Luncheon, were also transitioned to online events with great engagement from the public. We continue to monitor the pandemic situation, policy landscape, and workforce and learner needs to ensure that we are highly responsive to the current environment.
College achievements
NorQuest welcomes new President and CEO
After an extensive recruitment campaign, the NorQuest College Board of Governors unanimously chose Carolyn Campbell as the college’s new President and CEO. Her official start date was July 20, 2020. President Campbell has served as a Deputy Minister with the Government of Alberta, a Deputy City Manager with the City of Edmonton, and an Associate Dean of the University of Alberta’s School of Business. She comes to NorQuest College having been the most recent Chair of United Way of the Alberta Capital Region and Vice Chair of the Banff Centre for Arts and Creativity. She has two undergraduate degrees in Art, and a Master of Fine Arts from the University of Alberta, and is a practicing artist. She is currently working on a doctorate with the University of Oxford in board governance. President Campbell is thrilled to lead NorQuest College, and describes the position as her dream role.
Transition to a New Tomorrow Project
Starting in July 2020, NorQuest College is offering free programming that will support mid- career workers from the oil and gas industry as they transition to new employment and career options. The Transition to a New Tomorrow Project is in direct response to the downturn in Alberta’s energy sector. While new opportunities are available in emerging industries, some mid-career workers may be hesitant to engage with a retraining process. This fear may result in individuals being reluctant to investigate their own skill sets, thus preventing them from understanding where those talents may be transferable. The Transition to a New Tomorrow Project will allow a minimum of 120 mid-career workers to participate and will take place in communities including Drayton Valley, Whitecourt, the industrial parks of Leduc and Nisku, and Acheson. Online options will also be available. In addition, through a partnership with Alberta’s Community Learning Network, the project will invite adult learning providers throughout the province to participate.
ANNUAL REPORT 2019–2020 5 Operational Overview: A Year in Review
Enoch Cree Nation and NorQuest College form bold education partnership
In November 2019, NorQuest College and Enoch Cree Nation formalized a partnership to drive economic and community development by reimagining opportunities in healthcare and education. The memorandum of understanding aims to develop training and learning opportunities including workshops, non- credit programming, dual-credit high school programs, and customized academic upgrading opportunities that meet the identified needs of the community. Additionally, the Enoch Cree Nation cultural department will lead Cree language and cultural learning opportunities. This important partnership between NorQuest and Enoch Cree Nation will transform lives and communities and aligns with the college’s goal of enhanced community presence.
NorQuest expands its international reach
NorQuest College continues to make waves in the international market by proactively developing mutually beneficial relationships with respected post-secondary institutions from around the world. One of the latest relationships is a new memorandum of understanding (MOU) with Curio College in Netherlands. Curio is a major healthcare education centre in the region, serving more than 20,000 learners. The MOU formalizes opportunities for the two colleges to collaboratively develop programs, share information in fields of mutual interest, and promote the development of joint research projects. Starting in 2020, students of Curio can take parts of their courses at NorQuest College and Lakeland College in Vermillion.
Cannabis collaboration
NorQuest College joined forces with Niagara, Durham, and Okanagan colleges, and Collège communautaire du Nouveau-Brunswick as the founding members of the Canadian College Consortium for Cannabis. NorQuest envisioned and led the development of the first-of- its-kind national advocacy body in the post-secondary sector. The consortium will identify opportunities to share and co-create curriculum, engage in applied research projects, and develop relationships with key individuals and organizations within the cannabis industry.
Colbourne Institute for Inclusive Leadership
The Colbourne Institute for Inclusive Leadership (CIIL) supported international work on revising the Global Diversity and Inclusion Benchmarks (GDIB), an inclusion audit tool used across the globe. Lori Campbell, the Principal of the CIIL, was invited as an expert panelist and led the writing of a specific section within the tool on an international sub-committee. The GDIB is a key tool in the Colbourne Institute’s portfolio to assist external clients in assessing the current state as they build equity, diversity, and inclusion strategies within their organizations. The GDIB assessment, conducted by the CIIL, helped lay the foundation for the City of Edmonton's Art of Inclusion project, aimed at strengthening diversity and inclusion within their workforce.
6 NORQUEST COLLEGE Operational Overview: A Year in Review
Beyond these specific initiatives, the CIIL offered customized and focused training solutions in diversity and inclusion leadership and intercultural education to clients across Alberta and beyond. Inclusive practices and culture support employees in any role to confidently engage with each other and their clients, and strengthen organizations in every aspect of work and results.
The Colbourne Institute is developing an Equity, Diversity, and Inclusion Certificate (EDI) program that will launch in 2021 at NorQuest. This four course certificate will be available for both credit and non-credit streams as well as potentially augmenting NQ students' programs with essential learning in the EDI area as a post-badge or micro-credential. This has been a collaboration between CIIL and Faculty of Skills and Foundational Learning, and is a key piece of NorQuest’s commitment to EDI on a research, teaching and organizational level.
Landmark Group Centre for Value Improvement
The Landmark Group Centre for Value Improvement (LGCVI) provides organizations across Alberta with the tools, methodology, training, and ongoing long-term support to address the critical success factors in process improvement. This support became particularly pertinent because of the challenges COVID-19 brought upon organizations across the province. Donations by both the Landmark Group and Cougar Drilling Solutions allowed the LGCVI to fund 135 individuals across 10 cohorts to complete Process Improvement training. The LGCVI was also able to navigate COVID-19 and ensure this training was rapidly transitioned online. All of these learners were then able to take these critical skills and apply them in helping organizations across Alberta navigate the ongoing COVID-19 pandemic.
Digital Credentialing
NorQuest moved further into the Digital Credentialing space in 2019–2020, to explore solutions that meet college needs and enable scalability in the future. In January 2020, NorQuest launched a pilot project for issuing digital badges to learners in select non-credit courses. The key objectives of this pilot were to develop the technical infrastructure and processes for issuing badges in order to better understand how NorQuest can maximize value for learners and employers. As a result of this project, NorQuest currently offers several non-credit badges and hosts them through the public NorQuest Acclaim profile page. In 2019–2020 we issued over 1,500 badges and see Digital Credentials as a key focus area to help prepare our learners for the economy of the future.
ANNUAL REPORT 2019–2020 7 Operational Overview: A Year in Review
Fundraising milestones
1000 Women virtual luncheon
Every year, NorQuest’s 1000 Women: A Million Possibilities fundraising luncheon is a signature event for the college, raising funds that help remove barriers for individuals who want to improve their lives through education. Due to the COVID-19 outbreak in March, rather than cancel this premiere event completely, the June luncheon was transitioned to a virtual event. Thanks to dedicated planning by creative NorQuest staff and outstanding engagement from the 1000 Women Advisory committee and college donors, more than $150,000 in donations and sponsorship was raised at the June 3 event, a significant achievement given the unique circumstances.
Awards and recognition
Inclusion Alberta
NorQuest College’s Business Administration Program was selected as a recipient of Inclusion Alberta’s Community Inclusion Award. This award is given annually to organizations that promote the concept and spirit of community inclusion for people with developmental disabilities. The award was presented at a virtual ceremony on May 22, 2020.
Colleges and Institutes Canada Gold Leadership Excellence Award
Viola Manokore, an instructor in NorQuest’s Practical Nursing department, received a Gold Leadership Excellence Award for Faculty in May 2020 from Colleges and Institutes Canada (CiCan). Manokore holds a PhD in curriculum, instruction, and teacher education, with over 15 years of post-secondary teaching experience in biological science, human anatomy and physiology, pathophysiology, and science education. She is committed to evidence-based, reflective, instructional practice, and is especially interested in helping students activate prior knowledge and refine critical thinking skills to overcome learning challenges. CiCan called Manokore “an outstanding educator, dedicated scholar, and exemplary researcher who has mentored many of her peers and students.” Manokore is also the recipient of NorQuest’s 2019 Quest for Excellence Research Award.
8 NORQUEST COLLEGE Operational Overview: A Year in Review
NorQuest students on the national stage
This past fall, students from the Faculty of Business, Environment and Technology (FBET) Business Administration program at NorQuest College took the lead on social responsibility with a community effort to help those most vulnerable. Working with Edmonton Emergency Relief Services Society, the college took donations of blankets in support of the Blanket Alberta in Warmth campaign. More than 200 blankets were donated for homeless citizens and those in most need this winter. The campaign also helped raise awareness of this growing issue (especially among youth) across our campus.
The community-minded project was nominated for the Colleges and Institutes Canada annual showcase in Ottawa by NorQuest Careers Instructor Mitch Fix. On February 26, 2020, three students represented NorQuest College and FBET and presented the blanket drive project at the 2020 CICan On the Hill student showcase event, featuring innovative projects and initiatives from across Canada with an emphasis on community impact.
President’s Medal award
Community Support Worker Program student Samuel Enyon Latigo earned NorQuest’s top student honour, the President’s Medal, in 2020. During his time at NorQuest, Latigo was extensively involved in NorQuest activities as an RBC Student Ambassador and a volunteer at Open House. He was a top academic performer in his program in addition to being highly engaged in the NorQuest and greater Edmonton communities.
ANNUAL REPORT 2019–2020 9 Goals, Priority Initiatives, Expected Outcomes, and Performance Measures
To realize its strategic outcome, NorQuest College has established three priorities to guide the college to 2025:
1. Delivering programming known for 2. Creating an enhanced presence 3. Developing a unique
its workforce relevance Broad recognition of the quality of a NorQuest market position Securing NorQuest’s value in the economy and College education is critical to the college’s future NorQuest College is establishing a bold market community is essential for the college’s continued accomplishments. An enhanced presence in the position that supports industry and the community success. NorQuest will demonstrate this through communities we serve will lead to NorQuest by building on its expertise in essential skills, two approaches: helping learners meet their credentials, programs, and services being intercultural education, Indigenous education, educational objectives; and providing consulting, increasingly sought after by learners and valued supports for learners with disabilities, and research, training, or other services to community by employers. It will also contribute to attracting workforce-relevant programming. NorQuest and industry. skilled and innovative educators with a passion for learners are well prepared for the workforce or for teaching. continuing their education. The college’s unique Our college’s Workforce Advisory Committee, market position maximizes opportunities that consisting of industry CEOs and decision makers, A greater presence in the post-secondary sector others don’t see by identifying market niches in works in an advisory role to NorQuest College will also enhance the college’s ability to secure programming and in student recruitment. and helps guide our programming decisions. community support, as well as the financial The council is focused primarily on five industry and government support needed to provide sectors: construction, financial services, health every student with an exceptional educational and wellness, hospitality, and service and experience. manufacturing.
Helping learners meet their educational objectives involves different approaches for different learners. It may mean offering programming that leads directly to a career; providing foundational education that will help learners continue their education; or providing specific learner supports to increase educational opportunities for Indigenous learners, immigrant learners, and learners with disabilities. NorQuest also uses work-integrated learning to connect students with employers for hands-on experience.
10 NORQUEST COLLEGE Goals, Priority Initiatives, Expected Outcomes, and Performance Measures
Accessibility Initiatives Outcomes Measures Status Result
Access to More learners 7,660 Full-Load Equivalents (2019– Achieved 7,692 FLEs for the 2019–2020 fiscal year, exceeding the target of 7,660. workforce educated in 2020) (2017–2018: 5,321; 2018–2019: relevant credit workforce 7,079) education relevant opportunities programs. Work with the provincial Achieved The new Government of Alberta funding model does not provide specific funding for technology programs, however, government on a plan to create new NorQuest successfully received Western Economic Diversification funding 2019–2020 from the Government of Canada to spaces for technology programs. develop Artificial Intelligence programming.
Downtown Consolidation • Renovation of floors two through Achieved All construction work for the Civic Employees Legacy Tower is 100% complete. Campus of NorQuest’s eight in Civic Employees Legacy Development Edmonton Tower are complete and ready for Project campuses on occupancy by end of August 2019 one downtown • Renovation of the basement and campus to main floors in Civic Employees create a safe Legacy Tower are complete and efficient and ready for occupancy by environment. September 2019
Campus Mental health Deliver and support Post-Secondary Achieved NorQuest continued to share the National College Health Assessment results through presentations and wellness and challenges are Student Mental Health Grant communication within the college, “did you know” facts on electronic display boards, and awareness booths. safety detected early initiatives. We launched a Peer Connections initiative that provides learners with the opportunity to meet others and form and learners friendships with fellow students, and help alleviate some feelings of isolation and loneliness among our learners as are readily well as increase belonging and resiliency. connected with appropriate The college also delivered Inquiring Minds, a resiliency based mental health awareness and education workshop for services. students and Question, Persuade, Refer, a suicide awareness and support skill development program for students and offered them training and supports. NorQuest also organized an “Ask a Banker: Fraud Awareness” event for students in partnership with ATB. NorQuest launched its’ Mental Health Strategy for all learners and employees in Spring 2020 and launched additional mental health resources to support the college community with the onset of the COVID-19 pandemic. Additional supports included: a mental health & COVID-19 web page, online stress management and self-care workshops, phone and virtual counselling to students, and Kognito, an online simulation designed to help students provide support to peers.
NorQuest • 90% or higher of Learners feel Achieved Per the NorQuest College survey cycle, the Student Satisfaction Survey was conducted in 2018-19. Student Satisfaction is a safe and physically and psychologically safe Survey results indicated that: inclusive campus on campus as measured by the • 95% of respondents felt that the building and access at NorQuest College is safe, and for students, Student Satisfaction Survey faculty, and • Implement four new wellness • 92% felt that NorQuest College is a safe place to express opinions. staff. initiatives for employees Three wellness initiatives were held on campus prior to the onset of the COVID-19 pandemic. Following this, NorQuest pivoted to online tools to support employees working from home. NorQuest offered an online mental health tool, created work from home supports to keep employees connected, and held regular communication sessions to share information, updates, and to connect informally.
ANNUAL REPORT 2019–2020 11 Goals, Priority Initiatives, Expected Outcomes, and Performance Measures
Accessibility continued Initiatives Outcomes Measures Status Result
Sexual violence • Continue to monitor and enhance Achieved • NorQuest reviewed and approved the colleges’ sexual violence policy and procedures in 2019–2020 in consultation with prevention sexual violence policies and students and numerous college departments. procedures in collaboration with • The Alberta Association of Sexual Assault Services Sexual Abuse and Assault First Responder Training was delivered to other PSIs student in partnership with the Students’ Association of NorQuest College. • Offer sexual violence awareness • NorQuest held a Sexual Violence Awareness event and provided information about consent, supports and resources sessions for employees and available to students, staff and faculty through presentations, orientation activities, and special events. The college also learners shared sexual violence resources, as well as sexual violence and consent awareness with LINC students.
Leverage Faculty and • >85% of learners are satisfied Achieved Per the NorQuest College survey cycle, the Student Satisfaction Survey was conducted in 2018–2019. Student Satisfaction employees’ staff with their level of inclusion Survey results indicated that: as measured by the Student and learners’ members are • 92% of students agreed that “instructors and staff make me feel welcome” diversity in competent and Satisfaction Survey • 90% agreed “instructors and staff do not discriminate” our curricula, experienced • >85% of learners report improved programming, in providing confidence to interact with • 95% agreed that “NorQuest College makes me feel welcome” and services inclusive people who are different than • Students agreed other students are accepting (95%), treat them with respect (94%), and do not discriminate (91%) learning them as measured by the Student environments. Satisfaction Survey • 90% of students agreed “my experience at NorQuest has improved my confidence to interact with people who are different than me” • 82% of employees college-wide have a satisfactory level of inclusive engagement.
Foster an Learners are 65% of employees have a Achieved In 2019–2020, NorQuest shifted its’ focus to builds a nurturing an inclusive culture through intentional actions. This intercultural taught by satisfactory level of inclusion year, these actions include identifying Culture Champions, offering Supporting Leaders Boot Camps, Indigenous and inclusive workforce engagement according to the Ways of Knowing, Intercultural Learning Circles, College-Wide Learning Day streaming keynotes, accessibility culture for our relevant faculty NorQuest College Inclusive training, and other college-wide diversity and inclusion awareness events that are delivered throughout the year. faculty, staff, members who Engagement Scale (college-wide). Over 80% of NorQuesters participated in The Quest culture infusions and Culture Bootcamp for Leaders had 87% and learners have current participation. skills.
Indigenization Increase Increase course completion rate Achieved Indigenous course completion rates for 2019–2020 were 74.2% compared to 72.7% in 2018–2019. The target was exceed success rate of Indigenous learners by 1% over as the total percentage point increase year-over-year was 1.5%. of Indigenous 2018–2019 (Annual goal to increase Course completion data also suggests that despite more course enrolments in 2019–2020 compared to 2018–2019, learners by be 1% over prior year’s rate). completion rates were still higher than the year prior. Over the coming year, NorQuest will work with faculties and enhancing programs to better understand predictive factors in course completion and non-completion rates by Indigenous services and learners and work collaboratively to create comprehensive student supports and adaptive and responsive programs. support.
12 NORQUEST COLLEGE Goals, Priority Initiatives, Expected Outcomes, and Performance Measures
Quality Initiatives Outcomes Measures Status Result
Programs Programs are Determine baseline level of industry Achieved NorQuest Employer Survey was conducted in 2019, and the results indicated that 97% of employers are satisfied with endorsed by reviewed, partner satisfaction with NorQuest NorQuest-educated preparation for employment in a field of study. business and endorsed, and graduate preparedness for intended community supported work experience (2019–2020). leaders by business, industry, and the community to ensure workforce relevance.
Diversification More diversity • Launch 15 new credit programs Achieved • NorQuest completed its Fast-Track program development work plan in 2019–2020 with 13 of 15 programs completing in Program in types and (2018–2021) the program development and approval process. Five additional programs, outside of the original Fast-Track Work Plan, Plan numbers of were also approved in 2019–2020. This brings the total number of approved new credit programs to 18, exceeding the • 86% of learners are satisfied with credentials and Fast-Track target. the variety of delivery options modalities. available as determined by the • As per the NorQuest College survey cycle, Student Point of Entry Survey was conducted in 2018–2019. The results Student Point of Entry Survey indicated that 87% of respondents were either satisfied or very satisfied with their program delivery method.
Coordination Initiatives Outcomes Measures Status Result
NorQuest NorQuest All new programs have mapped Achieved Laddering is described in the business case, and transfer credit is sought through Alberta Council on Admissions and College College and documented entry and exit Transfer, for each new program. welcomes provides laddering opportunities, including learners at any pathways for the creation of articulation stage in their learners to agreements, where appropriate. learning successfully ladder to their next stage of education.
ANNUAL REPORT 2019–2020 13 Enrolment Plan and Program Changes
NorQuest College served a total learner population of 20,319 in the 2019–2020 academic year. This number includes all credit and non-credit learners. The number of unique credit learners was 11,922 and non-credit or continuing education learners was 8,397. Credit Full- Load Equivalents (FLEs) reached 7,692, an increase of 8.6 per cent over 2018–2019. The overall number of FLEs showed an increase in Open Studies, Academic Upgrading, Administrative Professional, Business Administration, Early Learning and Child Care Diploma, Accounting Technician, Medical Office Assistant, Addictions Recovery Practitioner, Medical Device Reprocessing Technician, Pharmacy Technician, Teaching English as an Additional Language, and Veterinary Office Assistant. New programs that generated FLE during the 2019–2020 academic year included Business Administration Finance specialization, Dental Office Assistant, Disability Studies, Environmental Protection Technology, Health Care Aide (new provincial curriculum), Interdisciplinary Therapy Assistant, and Settlement Studies.
2019–2020 2018–2019 2017–2018 2016–2017 2015–2016 Total Learners Served 1 20,319 19,435 18,381 17,592 15,850 FLEs 2 7,692 7,083 6,521 5,712 5,012
1 The total number of learners served by NorQuest College in an academic year. 2 Full Load Equivalents: This number is calculated by Advanced Education and is calculated by taking the course load (instructional + practicum hours) of the student enrolled and dividing by the full load of a program.
14 NORQUEST COLLEGE Enrolment Plan and Program Changes
CIP Enrolment Plan 2019–2020 Full Load Equivalents (FLE) by Program and Credential
Program Name Approved Results Variance Explained 2019–20 2019–20 Certificate Accounting Technician 110 85 less than anticipated demand for international and dual credit Administrative Professional 395 339 less than anticipated demand for international and dual credit Community Support Worker 119 101 less than anticipated demand for international Day Home Provider 25 28 accommodated increased demand Dental Office Assistant 13 12 - Early Learning and Child Care 67 66 - Health Care Aide (including workplace) 506 349 late approval and limited time to recruit Hospital Unit Clerk 84 66 students taking less than full load Medical Device Reprocessing Technician 17 23 accommodated increased demand Medical Office Assistant 43 36 less than anticipated demand Therapeutic Recreation 57 67 accommodated increased demand Transitions to Employment (previously TVP) 23 24 - Vet Office Assistant 18 10 less than anticipated demand Diploma Business Administrationa. 840 773 students taking less than full load Disabilities Studies 45 30 less than anticipated demand Early Learning and Child Care 249 227 less than anticipated demand Environmental Protection Technology 30 9 less than anticipated demand Interdisciplinary Therapy Assistant (previous PTA) 66 41 less than anticipated demand as students remained in the Physical Therapy Assistant program Pharmacy Technician 63 67 accommodated students from 2018–2019 needing to complete program Physical Therapy Assistant - 15 accommodated students wanting to complete rather than moving into Interdisciplinary Therapy Assistant program Practical Nurse 1,313 1,258 students taking less than full load Settlement Studies 45 27 less than anticipated demand Social Work 85 77 students taking less than full load Therapeutic Recreation 35 31 students taking less than full load Post-Diploma Certificate Addictions Recovery Practitioner 10 18 accommodated increased demand Advanced Education in Orthopedics 22 25 accommodated increased demand Health Care Leadership Post-Diploma Certificate 16 - deferred launch due to less than anticipated demand Mental Health Recovery Practitioner 15 16 - Teaching English as a Second Language 41 11 less than anticipated demand Professional Non-Credential Academic Upgrading 1,322 1,582 accommodated increased demand Apprenticeship Prep 20 - less than anticipated demand ESL Intensive 426 406 students taking less than full load Language Instruction for Newcomers to Canada 1,302 1,481 accommodated increased demand (LINC) Open Studies 142 358 accommodated increased demand Upgrading for ESL Youth 48 34 students preferred Academic Upgrading Total Approved Programs 7,610 7,692 FLE Growth
ANNUAL REPORT 2019–2020 15 Enrolment Plan and Program Changes
Proposed New Programsb
Program Name Projected Results Variance Explained 2010–2020 2019–2020 Certificate Optical Office Assistant 6 - deferred launch due to less than anticipated demand Diploma Justice Program 44 - deferred launch due to late approval and limited time to recruit Total Proposed New Programs 50 - Total of All Programs 7,660 7,692 FLE Growth 0%
3-Year International FLE Projectionc
Program Name Projected Results Variance Explained 2010–2020 2019–2020 College-wide International Enrolment Percentage 14% 20% Accounting Technician Certificate 86% 82% less than anticipated demand Administrative Professional Certificate 71% 66% less than anticipated demand Business Administration Diploma 86% 92% accommodated increased demand Teaching English as an Additional Language Professional 80% 72% less than anticipated demand Community Support Worker 86% 58% less than anticipated demand Early Learning and Child Care Certificate 57% 66% accommodated increased demand Early Learning and Child Care Diploma 39% 64% accommodated increased demand Mental Health Recovery Practioner 29% 80% accommodated increased demand Social Work Diploma 31% 12% less than anticipated demand Health Care Aide (GoA 2019 curriculum) 0% 21% accommodated increased demand Disability Studies 0% 63% accommodated increased demand Environmental Protection Technology 0% 100% accommodated increased demand Pharmacy Technician 0% 31% accommodated increased demand Settlement Studies 0% 40% accommodated increased demand Therapeutic Recreation Diploma 0% 19% accommodated increased demand Addictions Recovery Practitioner 0% 71% accommodated increased demand
Notes: a. FLE of new specializations are included Business Administration Diploma program. - Finance Specialization, launching in 2019–2020 b. Proposed new program development is subject to Ministry approval, budget change, enrolment expansion opportunities, and changes to tuition & fees regulation. c. International enrolment is equal to or greater than 15% of the program's total enrolment This projection does not include new programming as it is unknown.
16 NORQUEST COLLEGE Enrolment Plan and Program Changes
For the past three years, NorQuest College has been engaged NorQuest College engaged in focused, intentional, and in a bold plan to increase the number of new credit programs evidence-based research to introduce and suspend the available at the college. NorQuest set an ambitious target following programs in 2019–2020: with the Fast-Track Work Plan which identified 15 new credit programs to begin the development process in 2017–2018. Launched New Programs The Fast-Track Work Plan concluded in 2019–2020 with 13 out of the 15 Fast-Track programs completing the new program Seven new programs launched in 2019–2020 (six Fast-Track): development process and receiving approval to launch at the college. Five additional programs, outside of the original • Dental Office Assistant Certificate – September 2019; Fast-Track Work Plan, were also approved in 2019–2020. This • Disability Studies Diploma – September 2019; brings the total number of approved new credit programs to 18, exceeding the Fast-Track target. • Environmental Protection Technology Diploma – September 2019; Accomplishing this plan has resulted in the expansion of • Finance specialization, Business Administration Diploma – workforce relevant programs for our students, with the September 2019; addition of four new certificate programs, eight new diploma programs, one new post-diploma certificate program, one • Health Care Aide, GOA (Government of Alberta Health new post-baccalaureate certificate program, and two new Care Aide Provincial Curriculum 2019) Certificate – non-credentialed pathway programs. Additionally, the September 2019 successful approval by Advanced Education and Alberta • Interdisciplinary Therapy Assistant Diploma – September 2019 Health of the new Health Care Aide, GOA and Health Care Aide, GOA – Workplace delivery (Government of Alberta • Settlement Studies Diploma – September 2019 Health Care Aide Provincial Curriculum 2019) certificate programs made NorQuest one of the first post-secondary Deferred Launch of New Fast-Track Programs institutions in Alberta to offer the new Health Care Aide Three Fast-Track programs were approved to launch in curriculum. 2019–2020 but intake was delayed to later academic years.
• Health Care Leadership Post-diploma delayed launch to 2021–2022
• Justice Diploma delayed launch to 2020–2021
• Optical Office Assistant Certificate delayed launch to 2021–2022
ANNUAL REPORT 2019–2020 17 Enrolment Plan and Program Changes
Approved New Programs • Health Care Aide, GOA – Workplace delivery (Government of Alberta Health Care Aide Curriculum Five new programs were approved by Advanced Education 2019) Certificate approved on January 20, 2020 to launch (one Fast-Track) and one new program was approved by in 2020 Executive Committee. • Indigenous Studies Diploma approved on May 13, 2020 to • Child and Youth Care Diploma approved on November 15, launch in 2021–2022; 2019 to launch in 2020–2021; • NorQuest Bridge to Post-Secondary Program • Educational Assistant Certificate approved on February (non-credentialed, pathway program under ESL Intensive), 10, 2020 to launch in 2020–2021 (Fast-Track program launch approved by Executive Committee on October 30, 2019 to delayed to 2021–2022); launch in 2020–2021 • Health Care Aide, GOA (Government of Alberta Health Care Aide Curriculum 2019) Certificate approved on August 26, 2019 to launch in 2019–2020;
New Programs in Development
Program Credential Proposed Status Launch Date (as of June 30, 2020) Artificial Intelligence Pathways TBD Fall 2021 Program development in progress. Submission to Advanced Education in 2020–2021. Energy Management Diploma Fall 2021 Proposal submitted to Advanced Education for approval. (Approval received in August 2020) Equity, Diversity, and Inclusion Certificate Winter 2022 Program development in progress. Submission to Advanced Education in 2020–2021. Indigenous Pathways Program, Non-credentialed, academic Fall 2021 Program development in progress. Academic Upgrading preparation for post-secondary Palliative Care Post-Diploma Fall 2022 Approved by Academic Council. Submission to Advanced Education in 2020–2021.
Suspended Programs
• Therapeutic Recreation certificate, effective July 1, 2020 – July 1, 2023. (Diploma unaffected)
18 NORQUEST COLLEGE Academic Quality Assurance
Academic Quality Assurance Yearly Data review
NorQuest College undertakes quality assurance initiatives • Academic Upgrading to support and foster a unique learning experience • Administrative Professional Certificate characterized by inclusive culture, exemplary faculty, authentic experiences, and accessible learning. The college • Addictions Recovery Practitioner Post–diploma has a cycle of annual program review in which programs are Certificate assessed on a wide range of criteria including curriculum, • Apprenticeship Preparation fit with mandate, student satisfaction, and student success rates. In the fourth year of the cycle, each program engages • Business Administration Diploma in a comprehensive review involving a visioning and self- • Community Support Worker Certificate study process. The comprehensive review is evaluated in the following academic year by a standing Program Review • Day Home Provider Certificate Panel of trained program evaluators in collaboration with the • Early Learning and Child Care Certificate academic programs. • Early Learning and Child Care Diploma Program Review had an effective year with 31 programs successfully completing the program review process including • ESL Intensive seven Post-Implementation Reviews, 22 Yearly Data Reviews, and two Comprehensive Program Review. • Foundations for Learning
In 2019–2020, the college conducted the following reviews: • Hospital Unit Clerk Certificate • Language Instruction for New Canadians (LINC) Post-Implementation Program reviews • Medical Device Reprocessing Technician Certificate • Dental Office Assistant Certificate • Medical Office Assistant Certificate • Disability Studies Diploma • Mental Health Recovery Practitioner Post-diploma • Environmental Protection Technology Diploma Certificate
• Health Care Aide, GOA Certificate • Practical Nurse Diploma
• Interdisciplinary Therapy Assistant Diploma • Practical Nurse Refresher Diploma
• Settlement Studies Diploma • Social Work Diploma
• Veterinary Office Assistant Certificate • Transitions to Employment Certificate
• Therapeutic Recreation Diploma
• Upgrading for ESL Youth (formally Youth in Transition)
Comprehensive Review
• Accounting Technician Certificate
• Advanced Education in Orthopaedics for LPNs Post- diploma Certificate
ANNUAL REPORT 2019–2020 19 Research, Applied Research, and Scholarly Activities
The 2019–2020 academic year saw the applied research, Through the college’s Innovation Studio, virtual reality and innovation, and scholarly activities at NorQuest College augmented reality programs were extensively incorporated begin to mature. Across the college, we undertook 34 internal into health programming. The Innovation Studio also projects, supported nine external research projects, and provided a home and central support to the college’s secured $1.92 million in net new research funding. Some of culture work. the new projects included: While the COVID-19 outbreak and subsequent social • Transitions to a New Tomorrow, a pilot project, funded by lockdown put several research projects on hold, it also the Future Skills Centre, that supports mid-career persons created unique research opportunities. Immigration, reskill and change careers; Refugee, and Citizenship Canada funded NorQuest College to complete a case study of NorQuest College’s, Red River • Two summer student research internships funded by the College’s, and Douglas College’s experience of moving their Senior’s Health Strategic Clinical Network; Language Instruction for Newcomers to Canada Program • A School to Work Transition Project, in partnership with online. The study surveyed both students and instructors in the Alberta Somali Community Centre and funded by the order to assess the main impacts and challenges associated Child and Youth Refugee Research Coalition, to support with emergency remote teaching and learning. Additionally, racialized newcomer youth successfully gain employment; two faculty members have undertaken a research study into the Educational Impact of Transitioning to Online Teaching as • A Digital Citizenship for Newcomers project, funded by a result of COVID-19. This research involves the participation Heritage Canada; and of instructors from throughout Alberta and involves faculty • Improving Continuing Care Outcomes for Traditionally and student surveys, as well as 10–15 individual instructor Marginalized Populations in Alberta, a project undertaken interviews. Data collection will be completed in October 2020. in partnership with Keyano College, the Institute for Continuing Care Education and Research, and five care Living Labs Initiative providers and funded by the Community and College The Living Labs Initiative, funded by Alberta Innovates, saw Social Innovation Fund. the completion of its project and launch of its second in We also received additional funding through the Child and 2019–2020. The first, Virtual Health Care, was undertaken Youth Refugee Research Coalition to turn the research results in partnership with the health technology firm, Maple, of our LINC Student Goals Pathways project into an engaging and Health City, and tested patient comfort levels using a board game, and conducted a Social Return on Investment healthcare app. COVID-19 resulted in the expansion of this Analysis of our Employment and Social Development project to further enable access to family physicians. The Canada funded project, LINC Works, that piloted embedding second project, Home Health Monitoring for Management essential and workplace skills into CLB level 5. of Heart Failure, was undertaken in partnership with Telus Health, Covenant Health, Mint Health + Drugs Pharmacy, In addition to our funded projects, the college also and the Institute of Health Economics. The project, still undertook several unfunded research and scholarship of underway, is using new technology to track in real-time teaching and learning projects. These included projects heart failure patients’ symptoms in order to improve care designed to improve learning through the use of high impact management. As of June 2020, a third Living Labs Initiative teaching practices such as scenario-based learning, a co- project, Virtual Resilience, was in development. writing software program, and guerilla-style co-teaching. Additionally, NorQuest College launched its first academic, peer reviewed journal in 2019–2020, the Journal of Practical Nurse Education and Practice.
20 NORQUEST COLLEGE Research, Applied Research, and Scholarly Activities
Scholarly Activities Q Award for Excellence in Research and the Anna de Luca Research Travel Grant Throughout 2019–2020, Scholarship of Teaching and Learning (SOTL) activities remained strong through NorQuest In 2019–2020, three researchers were nominated for the College. SOTL projects undertaken by faculty included Q Award for Excellence in Research and the Anna de Luca Flipped Classrooms in pharmacology and business (the latter, Research Travel Grant. The award was jointly given to Jasmine undertaken in partnership with Olds College), Whole Brain Guanlao and Allison McFadden-Squire for their research Teaching in Business, Vertical Surfaces in Math, Gamification into effective ways to prevent medication miscalculations. of Learning in Business, Understanding Academic Integrity, Their work has been presented to the Canadian Association using virtual reality and augmented reality in various of Practical Nurse Educators and will be presented at the programs, and Using Indigenous Pedagogies to promote International Nurse Education Conference in Spain in 2022. empathy and understanding. Five SOTL projects were presented at conference and/or published. The remaining Institutional Research projects were presented to department peers or the In addition to its applied research and scholarly activities, NorQuest College Innovative Teaching Group, a community NorQuest College undertakes rigorous institutional of practice focused on SOTL. research across the organization. This year, the Research As with our other research activities, COVID-19 presented Office continued to support the implementation of the both a challenge to existing SOTL projects and an Government of Alberta’s mandated Canadian University opportunity for new ones. The pandemic and resulting move Consortium Survey, in addition to running the college’s online spurred NorQuest faculty to take on the challenge of regular surveys and providing support across the organization effective online teaching by exploring new ways to capture for data requests, non-core surveys, pilot project evaluations, student interest, engage them in meaningful work, support and other institutional research projects. them through the learning process, and provide feedback through strategic formative and summative assessment practices. This exploration of online technologies, repositories, recording apps, and presentation software is presenting new opportunities for SOTL inquiries.
ANNUAL REPORT 2019–2020 21 Regional Stewardship, Foundational Learning, Underrepresented Learners
Regional Stewardship and Learners sponsored luncheons providing local guest speakers from cultural awareness, financial planning to promoting healthy NorQuest College fulfills its regional stewardship mandate living. The Wetaskiwin Campus increased programming by maintaining three local campuses in Drayton Valley, by offering the first year of the Business Administration Wetaskiwin, and Whitecourt. The principal aim of regional attracting international and domestic students. stewardship at NorQuest College is to understand and meet the diverse needs of learners and the communities in which The Drayton Valley campus continued several unique they live and work. The college is committed to working with opportunities this year. The college again recruited community partners to enhance access to and respond to international students from India into the Business our regional learner's needs. To that end, the college: Administration program. Learners will complete their second year of the Business Administration program studies online • Continued to collaborate with four Community Adult or onsite at our main campus. The Town of Drayton Valley Education Councils, made up of Community Adult also sponsored a Zero Fee Tuition Initiative in two programs: Learning Programs within our regional stewardship region. Health Care Aide and the Business Administration. With the • Continued the collaboration with the Regional Workforce support of the Town of Drayton Valley, local businesses, and and Post-Secondary Task Teams at our regional campuses. its community partners, the cohort of international learners The task teams include various community stakeholders, studied in Drayton Valley, contributing to its vibrancy and local industry, Indigenous representatives, and government. economy. The college continues an ongoing dialogue with These groups have a pulse on the education and training the Town of Drayton Valley in identifying new programming needs of the region and assist NorQuest in its efforts to initiatives in the technology and health services sector. offer credit and non-credit programming and create an enhanced presence in the communities being served.
• Continued the collaboration with the Government of Alberta Workforce Consultants, Chamber of Commerce, and economic development officers providing available economic and workforce trends in NorQuest College's service region.
• Worked in partnership with 26 rural communities, eight First Nations communities, and several community adult learning partners to increase the number of programs offered and attract more learners to post-secondary education.
• NorQuest also proactively continued to deliver programming within rural areas and engages in various initiatives that build capacity in over 100 communities. Our delivery is focusing on foundational, post-secondary, and non-credit programming based on community needs In Whitecourt, the college continued to offer firefighting and partnerships. The growing online programming in boot camps at high schools, Health Care Aide Dual Credit language training, foundational education, and high offering in Mayerthorpe, and computer training to local school courses offer additional access to NorQuest's businesses. NorQuest College has received funding through regional stewardship area. the Government of Alberta's Community Adult Learning Program (CALP) grant. The CALP program at NorQuest The Wetaskiwin Campus continued the RBC Indigenous College continued to help adult learners build foundational Mentorship Program with a small group of students who skills in literacy, numeracy, English language learning, basic collaborated with the Knowledge Keeper in facilitating digital skills, and foundational life skills. In addition to cultural and Indigenous awareness and special events. Also, building skills, the program offers a personal approach to the college hosted the fourth annual Wetaskiwin community accessible and affordable opportunities where adult learners round dance as well as campus community breakfasts and set and meet the goals that matter to them.
22 NORQUEST COLLEGE Regional Stewardship, Foundational Learning, Underrepresented Learners
NorQuest has created an all-new CALP advisory committee. NorQuest supports regional stewardship accountability by This advisory committee has been vital in identifying and building capacity in the communities themselves. Through monitoring emerging adult foundational learning needs in our dedicated resources, partnerships, and contract training, it region, recommending strategies and programs that respond offers many ways to collaborate. NorQuest is a key partner to these needs, and informing an outcomes-based evaluation on the advisory committee for the Community Learning of our programs. The CALP will operate within the Town of Network and provides in-kind professional development Whitecourt, with plans to offer programs to the surrounding workshops and networking support at their annual communities of Lac Ste. Anne County. The college along conference, promoting further relationships. NorQuest with other stakeholders also participated in workshops to staff engage in conversations that support contract training inform the Whitecourt Community Training Needs Analysis to assess rural learners, build programming for specific report on market trends, identifying training and educational demographics, and respond to community economic changes requirements for the Town of Whitecourt. through retraining. The college's approach has been to work with the local CALP to provide these services and build The Rural Routes program, through provincial and federal their capacity. Many of the new resources designed for this funding, is a staple of support for the CALP community in level of learners have been made digital, open resource, and rural Alberta. The program provided newcomer supports, provide training modules to support rural communities. professional development, and supports for literacy and foundational learning resources. This year, Rural Routes Career Moves provided significant support, relief, and leadership to the CALP community with online learning and transitioning to The Career Moves initiative is a federal grant received to remote working during the COVID-19 crisis. offer a one-year professional development program for mid- career workers aged 30–60, primarily in rural Alberta, who are Rural Regional Advisors work with, support, and serve: experiencing some type of career change. Participants range • Coordinators, learning facilitators, and tutors working from newcomers, to laid-off oil and gas and trades workers, with ESL learners in the 130 CALP-funded organizations to mid-career workers hoping to finally find their dream job. across Alberta. The program provides one-on-one career coaching, skill development workshops, up to $2,000 in tuition credits for • Instructors with other small agencies and community- further training worldwide, and opportunities for Work- based adult learning providers in urban and rural centres Integrated Learning and connections to industries. providing adult ESL training and support for immigrants. The Work-Integrated Learning and Career Education Centre • Community agencies, post-secondary institutions, library launched the Career Moves program in January 2020 with programs, and other ESL providers within rural and small funding from the Canada Future Skills Centre. As of October urban communities who have limited expertise in the 2020, 99 participants are moving through various phases area of immigrant education. Services align with Canadian of the program, developing skills and tools for long-term Language Benchmarks, best practices from the Alberta employability, increasing their confidence with technology Teachers of English as a Second Language, and guidelines use, and determining the next steps in their career in a for ESL programming. supported way. • Newcomer language training with diverse and expanded Language Instruction for Newcomers programming.
As part of the system-wide disruption caused by the COVID-19 pandemic and the evolving post-secondary funding model, NorQuest College announced transitioning physical campuses in Whitecourt and Drayton Valley to an online model as of August 30, 2020. NorQuest developed a model that ensures seamless delivery of classes and services to our students, and continues to provide a range of educational opportunities to these regions in formats that meet our learners' and the community’s needs.
ANNUAL REPORT 2019–2020 23 Regional Stewardship, Foundational Learning, Underrepresented Learners
In addition, learners with disabilities are referred to their accommodated support areas when meeting with a Student Navigator with the goal of streamlining their experience.
The transition to online learning has presented challenges to receiving and storing medical documentation that confirms disability, as such, the implementation of a confidential case management system is currently underway.
Reducing the Digital Divide
During the COVID-19 breakout in March, NorQuest transitioned to online and emergency remote teaching within a week. During this time, the digital divide amongst students became extremely apparent in both a lack of digital skills and access to appropriate devices. NorQuest immediately set out a distribution plan to lend laptops to registered Under-represented Learners students. New laptops were also purchased with donor support for subsequent terms given the high demand. In NorQuest College offers support to learners with total, 748 requests were made for devices, with 646 of these disabilities, including but not limited to: assistive technology, being Foundational learners. A total of 440 laptops were accommodated learning support, instructional assistance, distributed to those students. Since that time, NorQuest exam accommodations, and sign language interpretation. has devoted resources to bridge the digital divide including Between July 1, 2019 and June 30, 2020, there were in-person orientation and increased access to digital training 713 students with diagnosed disabilities that received for learning. accommodated supports, many of whom have multiple disabilities. This is an increase of 14 per cent from 2018 – 2019 Building new Career Pathways for Newcomers and NorQuest has supported an average annual increase of 20 per cent over the last five years in the number of students NorQuest College and Supply Chain Canada partnered to with diagnosed disabilities. build an innovative training program that offers a pathway to a career in the growing supply chain sector for newcomers NorQuest continued to offer learners with developmental to Canada. The curriculum is a customized program designed disabilities the opportunity to enroll in programs and audit to incorporate English language elements along with the core courses through NorQuest’s connection with Inclusion competencies of the Supply Management Training program. Alberta. Facilitators from Inclusion Alberta and employees Included in the program is a two-month work placement at the college work together to create inclusive learning component to provide an opportunity for newcomers experiences and support learners to find meaningful to Canada to get experience in the field. The current employment that reflects their career goals. pilot, supported by the Alberta Ministry of Labour and Immigration, attracted significant demand for the program. Universal Design for Learning initiatives are designed to support individuals with disabilities as well as others who Teaching our Indigenous History may have an undiagnosed disability, do not wish to share a diagnosis, may benefit from additional support, or are In addition to language, settlement, and essential skills, learning English as a second language. The college continued Indigenous awareness training has recently become one of its efforts to support this initiative specifically within the the core supports in the LINC program. The highly interactive assistive technology and learning support areas in order and engaging sessions provide an introduction to Indigenous to maximize the impact of these supports for learners. Peoples, First Nation History, Métis and Inuit History, Truth Specifically, the college continued read and write group and Reconciliation Commission and Residential Schools, sessions and academic coaching supports to all learners. Culture and Language, and many others. All assessments at the college are now delivered using the Universal Design model of time-and-a-half.
24 NORQUEST COLLEGE Regional Stewardship, Foundational Learning, Underrepresented Learners
The sessions have been very well received by LINC students Another example was the blanket drive hosted by the and instructors alike, and the college has received multiple Leadership and Intercultural Management class in the Faculty requests for similar training from several community of Business, Environment and Technology to support the partners. To support others in their Indigenous education Edmonton Emergency Relief Services Society “Blanket journey, an invite to the Indigenous awareness training has Alberta in Warmth” campaign. Over 200 blankets were been extended to LINC students and community partners donated on behalf of NorQuest College. This CSL experience from across Edmonton. was recognized nationally and enabled three students to go to Ottawa to a Colleges and Institutes Canada (CICan) event Open Educational Resources to showcase their work. In addition to sharing their initiative, three students were also able to participate in meetings with With funding from the Government of Canada, NorQuest Members of Parliament through an event called CiCan on the developed an interactive and engaging set of online learning Hill to promote the importance of higher learning. tools to provide newcomers to Canada and low literacy learners with knowledge about digital disinformation Sharing Expertise and Leadership and to empower them to support family, friends, and community members in dealing with online scams, threats Sharing of knowledge, resources, and promising practices and misinformation. These resources are freely available to is an important factor in building a successful settlement newcomers and service provider organizations across Canada. sector as a whole. As a program with a history of active involvement in the community at local, provincial, and Through a grant funded by the federal government, our national levels, LINC remained committed to collaboration, NorQuest LINC Works program has developed 30 modules innovation, and expertise. Through resource sharing with on learning English and Essential Skills. These courses are other providers, NorQuest helped foster a professional available in two levels and include training videos and teacher settlement sector. Not without some challenges, the preparation material to support the use of the resources. transition to the online environment due to the COVID-19 These courses have been piloted across the country and pandemic was successful for the LINC program, which has are downloadable from our website as open education had fully online programming as well as online components resources. within the face to face deliveries for several years. To Community Service Learning support the successful transition of community partners, LINC faculty with extensive training and experience in online In 2019–2020, the Work Integrated Learning and Career teaching and learning reached out, shared their expertise, Education Centre (WILCEC) created workforce relevant and provided support to others both at the college and opportunities for students to build transferable skills, externally. In addition to one-on-one mentoring, numerous including critical thinking, teamwork, and communication, group sessions were offered through multiple platforms to and learn about social responsibility through Community hundreds of Teachers of English as a Second Language (TESL) Service Learning (CSL). Even with the disruption of COVID-19, practitioners across Canada. many learning activities took place over the course of the For many years, instructors from across Canada have 2019–2020 academic year. Over 2,500 NorQuest students successfully used the NorQuest-developed Prep for Online completed over 10,000 hours of community service learning, Learning course to help their students become successful in developing skills, gaining Canadian work experience, and an online environment. The course has recently been revised benefitting the local community. and updated and, at the request of partners from across An example of CSL was a series of videos, created by Edmonton and the country, the new and easily accessible LINC students, sharing cultural poems, stories, and songs Digital Literacy course has been made available widely from their cultural background, developing their English through the NorQuest College web site. Many other college- presentation and digital literacy skills. These videos were developed teaching and learning resources such as LINC sent to seniors’ homes across the city in order to provide Works, a high quality open education resource developed an uplifting, intercultural experience to seniors significantly in partnership with subject matter experts from across the isolated during COVID-19. WILCEC continues to find new country, or Elders Speak, a series of Indigenous education ways to create opportunities in virtual and remote settings. videos and teaching materials, are widely shared and used by TESL practitioners throughout Canada.
ANNUAL REPORT 2019–2020 25 Regional Stewardship, Foundational Learning, Underrepresented Learners
Mental Health Sexual Violence
The NorQuest College Creating a safe environment for those impacted by sexual environment is one that violence is a priority at NorQuest College. Our efforts promotes health and include a comprehensive Sexual Violence Policy, providing wellness. Our services awareness of sexual violence supports and resources, and are offered to learners in offering education and awareness information to the college private settings, helping with community at various times throughout the year, including: matters that affect studies • Providing information about consent, supports and and personal well-being. resources available to 150 students at the International The college received a grant student orientation using education, break-out activities from Advanced Education and opportunities for discussion. to increase mental health supports to our learners, which • Offering Alberta Association of Sexual Assault Services allows access to dynamic Sexual Abuse and Assault First Responder Training in mental health supports. By investing in the mental health of partnership with the Students’ Association to students. Alberta's post-secondary students, we are creating stronger • Hosting a Sexual Violence Awareness event for students. communities and helping them to reach their full potential. • Providing information about consent, supports and The college is undertaking a number of activities to support resources available to 1,273 students, staff and faculty mental health in the college community, including: through presentations, orientation activities and special • Publishing a mental health strategy and beginning events. implementation. • Participating in the LINC Conference and sharing sexual • Providing the college community with online resources violence resources, as well as a sexual violence/consent to increase awareness and reduce stigma associated with awareness with students. mental health. In addition, the college hosted an online training opportunity • Encouraging a mechanism for students to provide for employees to learn about the warning signs and resources feedback on mental health initiatives by way of evaluation available for individuals impacted by human trafficking. forms. In response to COVID-19, NorQuest will undertake to • Collaborating with Healthy Campus Alberta and the develop an online workshop that provides the campus Edmonton Regional Post-Secondary Mental Health community with online resources and awareness including Committee to develop a coordinated approach to common stigmas and considerations when responding to student mental health transitions. disclosures of sexual violence. NorQuest College recognizes that the global pandemic has a significant impact on As a result of the global COVID-19 pandemic, NorQuest vulnerable sectors who are at increased risk for violence College prioritized mental health awareness for the college within the home and the corresponding domestic and sexual community. A mental health and COVID-19 web page was violence trends that may impact our campus community. added to the college web site and a number of mental health awareness videos were shared. The college pivoted to virtual counselling appointments and introduced a new tool for the entire college community named Kognito. This tool allows individuals to enter into a virtual environment and interact with someone who is struggling with mental health while building communication strategies aimed at compassionate strategies and referrals.
26 NORQUEST COLLEGE Indigenous Learners and Supports
Improving Access to Education for Indigenous peoples Indigenous Learner Success and communities Working to ensure Indigenous learners are achieving high NorQuest remains committed to Indigenous learner success, degrees of course completion within their respective which includes ensuring learners have access to post- programs also remains a priority focus for NorQuest secondary education. As such, NorQuest understands the College. We are pleased to report that for the 2019–2020 importance of designing and implementing access initiatives academic year, the course completion rate among Indigenous that are responsive to the needs and lived realities of learners increased by 1.5 per cent from 72.7 to 74.2 per Indigenous learners. The college undertook a comprehensive cent. Indigenous student enrolment also remained strong analysis of admissions data to better understand structural throughout the year with steady enrolment trends in both barriers to Indigenous access and participation in post- credit and non-credit programming. Several academic secondary within our admissions processes. As a result of programs and instructional locations have also observed this analysis, we identified key aspects of the admission improvements to Indigenous learner course completion process that have been adapted to respond to the needs of year over year, and analysis is ongoing to assess variability Indigenous learners. by program and delivery method to ensure learner supports and services are responsive and aligned to meet the distinct needs of the Indigenous learner population. To support Indigenous learner success, the college continues to make available Elders/Knowledge Keepers, online supports, and staff/advisors. The college is also working with faculty and curriculum development to increase the relevance of NorQuest programming to improve Indigenous learner retention and readiness and strengthen relationships with Indigenous community-partners.
Indigenous Education Initiatives
NorQuest was proud to host “Forgotten: The Métis Residential School Experience” travelling exhibit between In early 2020, NorQuest implemented a Tuition Deposit January and February 2020. This exhibit documents and gives Waiver so that Indigenous learners have the option of voice to the experiences of the many Métis children who securing a seat in their programs of choice without paying were forced to attend Indian Residential Schools. Guided a tuition deposit, thus avoiding a wait list for high-demand by a small, expert Métis advisory group, the Legacy of Hope programs. This focused access initiative is responsive to Foundation created this exhibit and associated resources to the impacts of colonialism on intergenerational wealth shed light on the history and legacy of the Métis residential accumulation and transfer, and ensures NorQuest advances school experience. the process of reconciliation and our commitments under our Indigenization strategy, Wahkohtowin. NorQuest Indigenous Student Services College also approved the Indigenous Imperative Roadmap The Indigenous Student Services Centre is an essential which identifies four priority areas designed to advance central gathering place for Indigenous learners, members of the college’s priority focus on Indigenous peoples and the community, and NorQuest employees. With its focus communities. One key aspect of the Roadmap is to increase on holistic and responsive support and services, the centre Indigenous learner enrolment through two responsive is an integral part of Indigenous learner success through the initiatives: (1) setting admissions targets and removing meaningful inclusion of Knowledge Keepers, Student Liaisons, waitlists in high-demand programs; and (2) developing an and enhanced mentorship opportunities through the RBC Indigenous admissions model. In addition, discussion began Indigenous Mentorship Program. In September 2019, the in early 2020 regarding setting targets for in high demand Indigenous Student Centre developed and implemented a programs in the Faculties of Health and Community Studies; lunch program and served approximately 1,200 hot lunches to Business, Environment, and Technology; and Skills and Indigenous learners throughout the school year. Foundational Learning.
ANNUAL REPORT 2019–2020 27 Indigenous Learners and Supports
These and other responsive supports strengthen Indigenous Alberta Indigenous Construction Career Centre learner connection, retention, and satisfaction and In 2019, the provincial government announced an additional enable greater success among Indigenous learners at the two year investment to support the Alberta Indigenous college. NorQuest continues to survey Indigenous learner Construction Career Centre (AICCC) at NorQuest College. experiences and perspectives in order to make system This provincial funding has enabled the AICCC to continue improvements and develop additional tailored supports the important work of connecting unemployed and and services. underemployed Indigenous peoples to employers who have In response to the COVID-19 pandemic, Indigenous Student construction-related job openings. Since the launch of the Services moved its services and supports online and pilot in 2015, the AICCC has supported more than 260 Alberta continues to be a vital source of connection for Indigenous employers in attracting skilled Indigenous job-seekers. This learners as they progress through their respective programs. year the college well-surpassed its intake target of 800 clients A calendar of events and student support sessions were and served approximately 1,300 Indigenous job-seekers. developed in the spring of 2020 and have continued Through the AICCC, Indigenous clients have been successful throughout the remainder of the year. in gaining the skills, training, and certification they need to be job ready, and the centre has provided approximately 3,560 job placements and more than 14,000 client training courses for Indigenous job-seekers. With its holistic, culturally- responsive, and client-focused approach, the AICCC offers meaningful career-related support to Indigenous peoples seeking rewarding careers in the construction industry. The AICCC has become well-known within the city of Edmonton and throughout Alberta for its demonstrated capacity to address employment-related barriers for Indigenous peoples and has attracted candidates from across Canada, including clients from the Northwest Territories, British Columbia, Saskatchewan, and Manitoba. With a concurrent focus on matching Indigenous candidates to employers who offer fair wages and opportunities for advancement, the AICCC has also contributed to narrowing the gap in the high unemployment rates that are disproportionately experienced by Indigenous peoples, and to moving Indigenous clients from the social and economic margins into the labour market. The college’s industry partnerships, including EllisDon, Chandos, Syncrude, and JV Driver, have been crucial to the success of the AICCC.
28 NORQUEST COLLEGE Internationalization
International Student Recruitment cultural adjustment support. The office has a team of 13 employees including three international student advisors The recruitment of highly motivated international students and one dedicated international student engagement officer. from around the world is one of NorQuest College’s major The office provides service to students, and organizes pillars of our Internationalization Strategy. In 2019–2020 face-to-face and virtual events in the areas of immigration, NorQuest welcomed 1,812 students from major markets settlement, orientation to campus, and cultural and social such as India, Philippines, Jamaica, and Nigeria. While the integration. majority of students come to study in NorQuest’s post- secondary programs, others who are less prepared may Innovative Offerings come for English as a Second Language training and other foundational programs such as Academic Upgrading. The India majority of NorQuest’s international learners intend to seek a Post-Graduate Work Permit upon completion of NorQuest currently has a contract with Orion Edutech their program, and would ultimately like the opportunity Pvt. Ltd. In India to provide English as a Second Language to immigrate to Canada. NorQuest undertakes a number of classes to students recruited by Orion in New Delhi, India strategies to recruit a diversified international student body at the Orion Campus. The ESL classes, which are currently including participation in fairs in emerging markets, use of on hold due to COVID-19, will be taught by jointly by qualified agents, use of digital recruitment platforms, high Orion and NorQuest faculty once travel restrictions school visits, webinars, and social media participation. Our are lifted. move toward digital recruitment methods in the last couple NorQuest also has a second contract with Orion Edutech of years served NorQuest well when COVID-19 hit in March. to provide an online offering of the Foundations in Direct Our early investment in this area meant that we had the Care program. NorQuest College has partnered with team, the technology, and the expertise to continue with our Workbay over the past year to develop this 80-hour innovative recruitment techniques virtually. online offering that can rapidly train workers at the frontlines of healthcare. The program aims to improve learners’ abilities in responding to most aspects of direct care performed by home-based care service providers to vulnerable individuals like the elderly and people needing physical care. Orion is hoping to extend this opportunity to over 100 learners throughout India.
China
Over the years NorQuest has strengthened our partnership with Guanghua International Education Association (GIEA) in China. Several of their partner institutions have visited NorQuest College and NorQuest has visited them in China. In August 2019, there was an International Careers Challenge which brought students from China to Edmonton compete in collaborative teams, which included students from Bow Valley College and NorQuest. Students described it as a life-changing International Student Support experience. Spectators specializing in building business connections between Netherlands and Canada were in NorQuest College has a dedicated International Office attendance and intend to bring Dutch students to Canada to support international students at all stages of their to participate in the future. educational journey – from recruitment support, to pre- arrival guidance, settlement support, and academic and
ANNUAL REPORT 2019–2020 29 Indigenous Learners and Supports
Partnerships and Projects 1. The first, which is in partnership with Seneca College and College of the Rockies will focus on building the China capacity of the Technical and Vocation Education Through GIEA, NorQuest has partnered with three post- and Training (TVET) Curriculum Development secondary institutions in China-Binzhou, Zhengzhou Assessment and Certification Council in Kenya by and Changzhou to offer nursing courses. The goal of leading the assessment of the existing approved and this partnership is to educate nurses in China that will accredited competency based education training work in their country and impact their system utilizing curricula. Recognizing the need for industry-relevant, the knowledge and skills they learn from NorQuest. The high-quality, and gender-responsive curricula, the initiative with Binzhou started last year. This year will be consortium's subject matter experts will work the first year Zhengzhou and Changzhou will have groups; closely with TVET’s council to build their capacity in Binzhou will start the second group. identifying curricula gaps at the centers of excellence. 2. The second, which is in partnership with Humber Kenya College and Red River College, will focus on the In 2019–2020 NorQuest got involved with the Young development of prior learning assessment and Africa Works Project funded by the MasterCard recognition guidelines and tools together with the Foundation and administered by Colleges and Institutes Kenyan Ministry of Education, the Kenyan National Canada. The ultimate goal of the project is to increase the Qualification Authority, the TVET Authority and participation of young Kenyans, particularly women, in the TVET Curriculum Development Assessment market-relevant training programs, subsequently creating and Certification Council. This will be instrumental employment opportunities for youth in dignified and in facilitating access, mobility, and progression of fulfilling work. NorQuest is involved in two sub-projects students while promoting self-esteem, social inclusion, under this initiative. and equity for disadvantaged and traditionally marginalized learners who are highly skilled and knowledgeable in their fields, but lack formal education or certification.
30 NORQUEST COLLEGE Capital Plan
NorQuest College considers four categories of asset investments:
• Evergreening: exchanging old equipment and technology for new where maintenance to upkeep the performance or quality of the asset is no longer cost-effective.
• Capacity: responding to increased volume in demand by increasing the supply of assets required.
• Ad hoc requests: responding to unplanned projects that are often unique in nature.
• Strategic: projects that contribute to meeting the college’s future strategic objectives.
Each project is scrutinized and prioritized based upon its strategic outcome and importance to the college. Top-scoring projects are executed with funding coming from government grants, accumulated surplus, and the generous support of our donors.
Our priority capital projects are largely focused on enhancing and growing our campus to meet our Imagine 2025 vision, provide a welcoming space conducive to learning, and develop a centre of excellence in continuing care education.
Type of Project and Funding Sources
Type Project description Total project Funding sources Funding Revised funding resources cost received to date and source
Expansion Downtown Campus $191.3 million 89% GOA GOA 100% No change Development Project 8% donation received (includes Civic 3% NorQuest Donations 35% Employees Legacy received Tower landscaping and Centre 102 demolition)
Proposed Teaching and Evaluation Evaluation underway No funds No change Research Continuing underway received to date Care Centre: planning for a centre of excellence in continuing care where teaching and research is formally paired with care provision.
Downtown Campus Development Project
NorQuest College’s top priority capital project, the Downtown Campus Development Project was initiated to help serve our fast-growing learner population. The Government of Alberta has committed $170 million towards this $193.8 million project while the remaining funding is a combination of internal college funding and donations. The Singhmar Centre for Learning was opened in 2017 and a multi-phase renovation to the Civic Employees Legacy Tower (CELT) started and continued for two years ending in 2019. This renovation included updating aging infrastructure such as lighting, windows, mechanical and life safety systems, and performing major upgrades to program delivery spaces.
ANNUAL REPORT 2019–2020 31 Capital Plan
Outcomes of the renovations include maximizing occupancy, new spaces to foster greater inclusiveness, updated work spaces, and upgraded learning technologies in all classrooms and labs. The project enabled the development of the Olsen Centre for Health Simulation that gives students the opportunity to hone their life saving skills in real-world environments. And, in fall of 2019, we consolidated our Edmonton-based Language Instruction for Newcomers to Canada programming to our downtown campus, allowing for efficiencies in our facilities expenditure and an enhanced experience for these learners.
Future phases are planned to include the demolition of Centre 102, remediation of soil contamination, and construction of a green space.
Project Timelines and Status
Project description Project timelines Project start Expected project Project status Progress made in last 6 completion months Downtown Campus September 2013 – September 2013 Estimated September In progress Project moved from 94% to Development Project September 2021 2021 95% in the last 6 months. (includes CELT landscaping CELT exterior improvement and Centre 102 demolition) construction (April 2020 to present)
Future Needs
NorQuest College continues to see unprecedented growth in learners as a result of offering workforce relevant training and education that leads directly to careers. Alongside this growth, the COVID-19 pandemic is rapidly changing the way students learn, and the way the college does business. In response, NorQuest is thinking strategically about education of the future and the virtual and physical infrastructure to get us there. This is culminating in the development of a long-term master campus plan that will provide for continued growth and positive student experiences.
The Alberta Teaching and Research Continuing Care Centre
NorQuest College and Covenant Care have begun to explore and design a new approach for providing continuing care to the growing population of aging people in the Edmonton region with the Teaching and Research Continuing Care Centre (TRCCC).
NorQuest College is leveraging its leadership in healthcare education and training to partner with Covenant Care – a leader in delivering innovative, client-focused care that empowers clients to thrive – to create the TRCCC project: an integrated learning, health, and residential facility in downtown Edmonton. The TRCCC would serve to improve teaching and research in continuing care by integrating innovative approaches to clinical and community care, education and training, and research.
32 NORQUEST COLLEGE Capital Plan
Both NorQuest College and Covenant Care share government’s commitment to attracting investment to our province. We also understand the current fiscal reality in Alberta. To ensure this innovative project becomes a reality, we remain dedicated to building on the provincial government’s vision for projects funded outside of provincial capital funds. This will be a first of its kind initiative, employing the expertise of public sector while harnessing the development opportunity through public-private partnership. The project ideally results in maximum benefit to each party, while serving as an innovation catalyst to the system.
Projects Funded from Accumulated Surplus
Our accumulated surplus results from our operating surpluses and is used to invest in NorQuest’s future. In 2019–2020, $1.3 million of this was invested including:
• Enhancements to information security infrastructure.
• Design for business intelligence capability and management system automation.
• Enhancements to the college’s PeopleSoft Enterprise Resource Planning system.
• Evergreening purchases of network and other technology infrastructure, desktop equipment, and health care program equipment.
Deferred Maintenance
NorQuest’s deferred maintenance totals more than $15 million and is expected to decrease following the government’s building assessment report to be finalized this year. A significant component of the college’s deferred maintenance was addressed with renovations to the Civic Employees Legacy Tower (CELT) completed in the summer as part of the Downtown Campus Development Project and funded by the provincial government.
The college’s deferred maintenance priorities include:
Description Expected start Expected completion Value Funding status
Replace CELT elevators Winter 2021 Summer 2022 $1.6 Million Approved and received
The Government of Alberta provides capital funding from the Infrastructure Maintenance Program (IMP) to assist in maintaining college facilities for efficient and effective delivery of programs. The IMP projects address renewal projects such as security and life safety systems, mechanical and electrical systems, hazardous material abatement, and building envelope systems. IMP funding will also contribute partially repairs and upgrades to elevators in CELT.
The college did not receive $1.1 million dollars of expected IMP funding for the 2019–2020 fiscal year and consequently reduced our expenditures where feasible. However, IMP funding has been received for 2020–2021 and is being strategically utilized.
ANNUAL REPORT 2019–2020 33 Information Technology
NorQuest continued to invest in technologies that foster Digital Security collaboration, improve and secure access to networks and As threats continue to evolve, so too does our IT information, and enable efficient, automated business security strategy. This year we implemented Multi-Factor processes. Our participation with Alberta Association in Authentication, improved our Virtual Private Network, and Higher Education for Information Technology and Cybera’s enhanced our anti-phishing technology to better protect shared procurement initiative, ShareIT, enabled us to share NorQuest’s digital assets. Further, our implementation of our expertise and benefit from our peers and coordinated next generation hardware and software has considerably buying power. matured NorQuest’s cybersecurity posture. Over the past year the college strengthened our position Annual IT security training continues to be required of all in Business Intelligence and Analytics and introduced on- college employees, and enhanced security evaluation criteria demand self-serve dashboard solutions to enhance evidence- have been implemented for all software. We continue to based decision making across the college, reduce costs, and update our software and hardware to offer high quality, increase efficiency. secure experiences to all of our users. We invested in automated and digital solutions that helped reduce costs, eliminate paper, minimize errors, provide for Educational Technology better security, and increase efficiency. This includes new Enhancing our educational technology was pivotal in ensuring payment solutions for our international customers, better that NorQuest students continued learning and faculty time reporting, digital expense claims, a new customer continued teaching during the COVID-19 pandemic. Major relationship management system, and digital signatures. projects that facilitated outstanding learning in exceptional A major highlight of the year has been our response to circumstances included: COVID-19 and the closure of the college campus. Not only • Scaling our online learning platform to fully support did the college quickly move 90 per cent of NorQuest online synchronous and asynchronous learning. employees to virtual work arrangements, but also loaned 440 laptops to students to minimize disruptions to their learning • Integrating online proctoring capabilities to support since the start of the pandemic. equitable digital learner assessment.
Other major initiatives included: • Significantly expanding the tools and activities available in our online learning platform to enhance both the faculty • Commenced the telephony system upgrade enabling and student experience. softphone technology and a true Work from Anywhere experience for our employees. • Implementing collaboration software that enables faculty and staff to come together in the creation and execution • Developed a strategy for enterprise resource planning of high-quality course content and materials. enhancements that will enable NorQuest to offer exceptional experiences to our staff and learners and Internal Controls increase efficiency. NorQuest College is committed to having strong internal • Further invested in our business intelligence strategy to controls, ensuring that its information and technology enhance evidence-based decision making throughout the assets are secure, accessible, and reliable, and its financial organization. accounting and reporting are accurate, complete, and timely. To that end, the college has engaged PwC annually since 2012 to review and make recommendations on the improvement of internal college controls. In addition, the Office of the Auditor General annually reviews the college's IT General Controls.
34 NORQUEST COLLEGE Self-Generated Revenue
NorQuest engages in additional activities that provide Revenue Gross profit further income and services to meet our mission of (Thousands of (Thousands of transforming lives and enriching our community. For the dollars) dollars) 2019–2020 fiscal year, NorQuest generated a total of Ancillary Services $5 million dollars in revenue from activities not directly ATB Agency $42 $ (206) related to our core business of delivering credit offerings. Bookstore $2,272 $352 Of the $5 million dollars, $3 million was generated through Food and Wellness $74 $72 ancillary services that provide additional services to students and the public. Such services are expected to be self- Parking $615 $424 sustaining and are not directly covered by grants or other Academic Enterprises funding. Continuing Education $2,028 $ (434) At NorQuest the following comprise our ancillary services portfolio: The remaining $2 million is generated through our academic • NorQuest/ATB Agency: NorQuest is unique in that it enterprises composed of contract training whereby owns and operates an ATB agency situated in the heart NorQuest is contracted to provide instruction or consulting of our campus in the Singhmar Centre for Learning. The services, as well as provides non-credit programs to members agency provides financial services to our employees, of the general public. This line of business saw a loss in students, and the public. This business is under review for 2019–2020 of $0.4 million due in part of the impact of future opportunities. COVID-19 in the latter part of the fiscal year. NorQuest currently has no commercial enterprises. • Campus Bookstore: The college bookstore is the primary retail space on campus and offers textbooks and other school supplies in addition to sundries and NorQuest- branded merchandise. With the onset of the COVID-19 pandemic, this business is being reimagined in a virtual setting.
• Food and Wellness Services: Composed of our retail food offerings including vending machines and fast food service restaurants as well as our fitness centre that was opened in 2019–2020.
• Campus Parking: Provides parking services for staff, students, and the general public at our downtown campus.
ANNUAL REPORT 2019–2020 35 Financial and Budget Information
Management Discussion and Analysis
The following discussion and analysis of the financial statements should be reviewed in conjunction with the audited financial statements and accompanying notes to the financial statements. The financial statements represent the financial position and results of operations for NorQuest College for the fiscal year ended June 30, 2020. The college’s consolidated financial statements for 2019–2020 have been prepared in accordance with Canadian Public Sector Accounting Standards and reflect the application of the net financial assets/net debt reporting model as issued by the Public Sector Accounting Board.
Consolidated Statement of Operations
It was a difficult year for the college as we pivoted around funding cuts, preparation for the provincial government’s performance-based funding, and COVID-19. For the year ended June 30, 2020, the college reported a $2.7 million operating deficit compared to a planned balanced budget and a restated $1.4 million surplus in 2018–2019. This deficit represents the unexpected challenges that 2019–2020 brought the college and the industry.
Revenues
2019–2020 Revenue ($Millions) 2019-2020 Revenue ($Millions)
$59.3 Government of Alberta grants $5.8 $42.8 $42.8 Student tuition & fees $10.0 Federal & other government grants $10.0 2019- $1.9 2020 $3.1 $5.8 Sales of services & products REVENUE $3.1 Other $1.2 $1.9 Investment income $59.3 $1.2 Donations & other grants
Total revenues of $121.0 million decreased $3.9 million year over year ($124.9 million in 2018– 2019), and are below the budgeted $127.6 million by $6.6 million.
Provincial grants represented $59.3 million of revenue in 2019–2020 with the majority ($44.3 million) being the Campus Alberta grant. With a budgeted $61.9 million in provincial grant funding, the variance of $2.6 million is due to an in-year decrease of our Campus Alberta operating grant of $1.9 million vs. budget, the cancellation of Infrastructure Maintenance Program funding for 2019–2020 ($1.1 million), and lower than budgeted capital expenditure recognition by $1.7 million (offset partially by a positive $0.8 million in DCDP revenue recognition and $1.3 million in other restricted provincial grants). As a percentage of total revenue, provincial grants decreased to 49.0 per cent from 54.2 per cent in the year prior. Federal and other government grants contributed $10.0 million revenue in 2019–2020, compared to a budget of $10.5 million.
36 NORQUEST COLLEGE Financial and Budget Information
Student tuition and fees increased $7.4 million from $35.4 million in 2018–2019 to $42.8 million in 2019–2020 as full load equivalents (FLEs) rose from 7,083 to 7,692 (8.6 per cent) as we continued to execute our Imagine 2025 strategy which focuses on learner growth. This increase was driven primarily by the planned enrollment growth of international students. Actual tuition revenue for 2019–2020 was below budget by $2.1 million. This is due to enrolment results differing from the budgeted enrolment plan.
Sales of Services and Products decreased $1.1 million from $7.0 million in 2018–2019 to $5.9 million this fiscal and was short of budget by $1.6 million. The primary reason for the gap is due to instructional contract revenue down $1.2 million year over year and below budget by $2.3 million. Investment income decreased $0.4 million to $1.9 million in 2019–2020 but exceeded expectations by $0.2 million. Donations and and other grants decreased by $0.1 million to $1.2 million in 2019–2020 as anticipated in the budget.
Revenue vs. Budget ($Millions) Revenue vs. Budget ($Millions)
$0.2 Investment Income
$0 Donations & Other Grants
Federal & Other Government Grants ($0.5) Federal & Other Government Grants
($1.6) Sales of Services & Products
($2.1) Student Tuition & Fees
($2.6) Government of Alberta Grants
Expenses
2019-2020 Expenses ($Millions) Expenses ($ Millions)
$91.2 Salaries, Wages, & Benefits $7.3 $17.8 Supplies & Services $17.8 $3.4 $7.3 Amortization 2019- 2020 $7.5 $1.4 $7.5 Other EXPENSES $1.4 $3.4 Leases, Maintenance & Repairs $1.1 $1.4 Cost of Goods Sold $91.2 $1.4 Utilities $0.2 $1.1 Scholarships, Bursaries, & Awards $0.2 Interest on Debt
ANNUAL REPORT 2019–2020 37 Financial and Budget Information
Total expenses of $123.8 million increased by $0.2 million compared to the year prior and were below budget by $3.8 million, primarily due to Salaries and Benefits being under budget by $1.6 million as we strategically managed costs with shifting learner program selection as well as a continued salary freeze across the organization.
Our greatest expense is Salaries and Benefits which is 74 per cent of our total costs. Salaries and Benefits increased by $8.1 million to $91.2 million, but ended under budget by $1.6 million. As part of our Imagine 2025 strategy, people costs were budgeted to increase by $9.7 million. However, during the year the Government of Alberta indicated that performance-based funding would be implemented in the following fiscal which required meeting stringent expense targets. Consequently, the college went through a restructuring process which resulted in exceptional severance and vacation payouts driving an additional $3.7 million in expense. The performance-based funding model for 2020–2021 was eventually cancelled due to the COVID-19 pandemic and the uncertainty it entailed.
The amortization expense of $7.3 million was a decrease of $2.9 million from last year and below budget by $1.8 million. This is due to the postponement of future phases Downtown Campus Development Project, and the change of the capital asset threshold from $1,000 to $5,000. Leases, Maintenance and Repairs was below budget by $1.0 million due primarily to the cancellation of IMP funding and the consequent cancellation of plans for those funds. Finally, the college was able to provide an additional $0.7 million in scholarships, bursaries, and awards to students as we changed our strategy in the review and utilization of donations.
Expenses vs. Budget ($Expenses Millions) vs. Budget ($Millions)
$0.7 Scholarships, Bursaries, & Awards
$0.1 Cost of Goods Sold
($0.1) Supplies & Services
($0.2) Utilities
($1.0) Leases, Maintenance, & Repairs
($1.6) Salaries, Wages, & Benefits
($1.8) Amortization
COVID-19 Impact
Revenue losses due to COVID-19 for the fiscal year are estimated at $2.6 million as ancillary services including the bookstore, parking, and food services faced significantly reduced demand, scaled back student enrollments and practicums, and demand for contractual instruction courses came to a standstill.
To offset these revenue losses, NorQuest managed costs in the last quarter while supporting the college’s additional needs around technology. Additional expenses were incurred to purchase IT assets to fully enable our staff to work from anywhere and providing students with laptops to minimize disruption to their studies. However, savings were realized as the college scaled back our operations in programming, eliminated travel and hosting, and cancelled or reimagined major events such as convocation and the 1000 Women Luncheon.
38 NORQUEST COLLEGE Financial and Budget Information
The estimated net impact on expenses due to COVID-19 is $1.3 million in savings; comprised of $0.6 million in additional expenses but an estimated $1.9 million in savings.
Overall, we estimate that COVID-19 had a negative impact to our operating results by $1.3 million for the 2019–2020 fiscal year.
Consolidated Statement of Financial Position Net Financial Assets
Financial Assets decreased by $7.0 million to $55.1 million primarily due to cash holdings declining from $24.6 million to $14.6 million, partially planned as a result of the slowed activities on our major capital project, the Downtown Campus Development Project. Liabilities decreased by $4.9 million over the same period to $42.1 million from the completion of Phase II of the Downtown Campus Development Project and recognition of deferred revenue related to amortization for Phases I and II of the Downtown Campus Development Project. As a result, Net Financial Assets ended the period at $18.5 million; a decrease of $1.9 million over the prior year. Note that Net Financial Assets also includes portfolio investments restricted for endowment with a value of $5.5 million.
Non-Financial Assets
Non-Financial Assets decreased over the prior year by $2.8 million to a total of $173.7 million. Net additions to capital assets of $4.2 million was offset by $7.3 million in amortization. There was a net increase in prepaid expenses of $0.3 million.
Net Assets
Net Assets decreased $2.1 million from $39.1 million in 2018–2019 to $37.0 million in 2019–2020 as a result of the annual operating deficit of $2.7 million and a change in the accumulated re-measurement gains of $0.6 million.
Change in Accounting Policy
Effective July 1, 2019, the college increased the tangible capital asset threshold from $1,000 to $5,000 to better align the effort of administering the recording, tracking and replacing of capital assets with the presentation of financial information and to align with practices across the post-secondary institution sector. This change in accounting policy has been applied retrospectively with restatement of comparative numbers. The impact on the prior year’s consolidated financial statements is included in Note 3 of the consolidated financial statements.
ANNUAL REPORT 2019–2020 39 Consolidated Financial Statements
Year ended June 30, 2020
41 Independent Auditor's Report 44 Statement of Management Responsibility 45 Consolidated Statement of Financial Position 46 Consolidated Statement of Operations 47 Consolidated Statement of Change in Net Financial Assets 48 Consolidated Statement of Remeasurement Gains and Losses 49 Consolidated Statement of Cash Flows 50 Notes to the Consolidated Financial Statements
40 NORQUEST COLLEGE Independent Auditor’s Report
To the Board of Governors of NorQuest College
Report on the Consolidated Financial Statements
Opinion
I have audited the consolidated financial statements of NorQuest College (the Group), which comprise the consolidated statement of financial position as at June 30, 2020, and the consolidated statements of operations, remeasurement gains and losses, change in net financial assets, and cash flows for the year then ended, and notes to the consolidated financial statements, including a summary of significant accounting policies.
In my opinion, the accompanying consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Group as at June 30, 2020, and the results of its operations, its remeasurement gains and losses, its changes in net financial assets, and its cash flows for the year then ended in accordance with Canadian public sector accounting standards.
Basis for opinion
I conducted my audit in accordance with Canadian generally accepted auditing standards. My responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Consolidated Financial Statements section of my report. I am independent of the Group in accordance with the ethical requirements that are relevant to my audit of the consolidated financial statements in Canada, and I have fulfilled my other ethical responsibilities in accordance with these requirements. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my opinion.
Other information
Management is responsible for the other information. The other information comprises the information included in the Annual Report, but does not include the consolidated financial statements and my auditor’s report thereon. The Annual Report is expected to be made available to me after the date of this auditor’s report.
My opinion on the consolidated financial statements does not cover the other information and I do not express any form of assurance conclusion thereon.
In connection with my audit of the consolidated financial statements, my responsibility is to read the other information identified above and, in doing so, consider whether the other information is materially inconsistent with the consolidated financial statements or my knowledge obtained in the audit, or otherwise appears to be materially misstated.
If, based on the work I will perform on this other information, I conclude that there is a material misstatement of this other information, I am required to communicate the matter to those charged with governance.
ANNUAL REPORT 2019–2020 41 Independent Auditor’s Report
Responsibilities of management and those charged with governance for the consolidated financial statements
Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with Canadian public sector accounting standards, and for such internal control as management determines is necessary to enable the preparation of the consolidated financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the consolidated financial statements, management is responsible for assessing the Group’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless an intention exists to liquidate or to cease operations, or there is no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Group’s financial reporting process.
Auditor's responsibilities for the audit of the consolidated financial statements
My objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes my opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Canadian generally accepted auditing standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements.
As part of an audit in accordance with Canadian generally accepted auditing standards, I exercise professional judgment and maintain professional skepticism throughout the audit. I also:
• Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for my opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit 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 Group’s internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
42 NORQUEST COLLEGE Independent Auditor’s Report
• Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group’s ability to continue as a going concern. If I conclude that a material uncertainty exists, I am required to draw attention in my auditor’s report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify my opinion. My conclusions are based on the audit evidence obtained up to the date of my auditor’s report. However, future events or conditions may cause the Group to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
• Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the consolidated financial statements. I am responsible for the direction, supervision and performance of the group audit. I remain solely responsible for my audit opinion.
I communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that I identify during my audit.
[Original signed by W. Doug Wylie FCPA, FCMA, ICD.D]
W. Doug Wylie FCPA, FCMA, ICD.D Auditor General
November 2, 2020 Edmonton, Alberta
ANNUAL REPORT 2019–2020 43 NorQuest College Statement of Management Responsibility
Year ended June 30, 2020
The consolidated financial statements of NorQuest College have been prepared by management in accordance with Canadian Public Sector Accounting Standards. The consolidated financial statements present fairly the financial position of the college as at June 30, 2020 and the results of its operations, remeasurement gains and losses, changes in net financial assets and cash flows for the year then ended.
In fulfilling its responsibilities and recognizing the limits inherent in all systems, management has developed and maintains a system of internal control designed to provide reasonable assurance the college assets are safeguarded from loss and that the accounting records are a reliable basis for the preparation of the consolidated financial statements.
The Board of Governors is responsible for reviewing and approving the consolidated financial statements, and overseeing management’s performance of its financial reporting responsibilities.
The Board of Governors carries out its responsibility for review of the consolidated financial statements principally through its Finance and Audit Committee. With the exception of the President, all members of the Finance and Audit Committee are not employees of the college. The Finance and Audit Committee meets with management and the external auditors to discuss the results of audit examinations and financial reporting matters. The external auditors have full access to the Finance and Audit Committee, with and without the presence of management.
These consolidated financial statements have been reported on by the Auditor General of Alberta, the auditor appointed under the Post secondary Learning Act. The Independent Auditor’s Report outlines the scope of the audit and provides the audit opinion on the fairness of presentation of the information in the consolidated financial statements.
[Original signed by [Original signed by Carolyn Campbell] Michelle Beck, B.Comm, CPA, CA]
Carolyn Campbell Michelle Beck, B.Comm, CPA, CA President & Chief Executive Officer Vice President, Corporate Services & Finance
44 NORQUEST COLLEGE NorQuest College Consolidated Statement of Financial Position
As at June 30, 2020 (in thousands of dollars) 2019 2020 Restated (note 3) Financial assets excluding portfolio investments restricted for endowments Cash $ 14,622 $ 24,643 Portfolio investments - non endowment (note 4) 35,081 33,232 Accounts receivable 5,018 4,074 Inventories held for sale 367 185 55,088 62,134
Liabilities Accounts payable and accrued liabilities 13,485 15,283 Employee future benefit liabilities (note 6) 1,581 1,118 Debt (note 7) 4,607 4,752 Deferred revenue (note 8) 22,400 25,819 42,073 46,972 Net financial assets excluding portfolio investments restricted for endowments 13,015 15,162 Portfolio investments - restricted for endowments (note 4) 5,467 5,279 Net financial assets 18,482 20,441
Non-financial assets Tangible capital assets (note 9) 172,503 175,640 Prepaid expenses 1,230 907 173,733 176,547 Net assets before spent deferred capital contributions 192,215 196,988 Spent deferred capital contributions (note 10) 155,256 157,9 07 Net assets (note 11) $ 36,959 $ 39,081
Net assets is comprised of: Accumulated surplus $ 35,487 $ 38,147 Accumulated remeasurement gains 1,472 934
$ 36,959 $ 39,081
Contingent asset and contractual rights (notes 12 and 14) Contingent liabilities and contractual obligations (notes 13 and 15)
Approved by the Board of Governors:
[Original signed by Carla Madra, [Original signed by Chris Lavin, CPA, CA] FCMC]
Carla Madra, CPA, CA Chris Lavin, FCMC Chair, Board of Governors Chair, Finance and Audit Committee
The accompanying notes are an integral part of these consolidated financial statements.
ANNUAL REPORT 2019–2020 45 NorQuest College Consolidated Statement of Operations
Year ended June 30, 2020 (in thousands of dollars) 2020 2019 Budget 2020 Restated (note 22) (note 3) Revenues Government of Alberta grants (note 19) $ 61,874 $ 59,336 $ 67,74 4 Federal and other government grants (note 19) 10,491 9,974 11,149 Sales of services and products 7, 514 5,850 7,033 Student tuition and fees 44,888 42,761 35,373 Donations and other grants 1,217 1,234 1,300 Investment income 1,659 1,893 2,322
127,643 121,048 124,921
Expenses (note 16) Instruction 44,259 42,464 40,223 Academic support 24,172 21,700 21,453 Student support 13,454 15,952 12,568 Computing and data communication 8,535 9,728 8,140 Facility operations and maintenance 14,237 14,037 19,933 Institutional support 19,648 17,334 17, 8 81 Ancillary services 2,794 2,362 2,226 Sponsored research 544 193 208 Special purpose - 4 1,001
127,643 123,774 123,633 - Annual operating (deficit) surplus (2,726) 1,288 Endowment contributions (note 11) - 30 110 Endowment capitalized investment income (note 11) - 36 42 - 66 152 Annual (deficit) surplus - (2,660) 1,440 Accumulated surplus, beginning of year 38,147 38,147 36,707
Accumulated surplus, end of year $ 38,147 $ 35,487 $ 38,147
The accompanying notes are an integral part of these consolidated financial statements.
46 NORQUEST COLLEGE NorQuest College Consolidated Statement of Change in Net Financial Assets
Year ended June 30, 2020 (in thousands of dollars) 2020 2019 Budget 2020 Restated (note 22) (note 3) Annual (deficit) surplus $ - $ (2,660) $ 1,440 Acquisition of tangible capital assets (10,211) (4,199) (24,879) Amortization of tangible capital assets 9,064 7,294 6,605 Loss on disposal of tangible capital assets 42 197 Write down of tangible capital assets - 3,362 Change in prepaid expenses (323) (159) Change in spent deferred capital contributions (2,651) 13,105 Change in accumulated remeasurement gains 538 732 (Decrease) increase in net financial assets (1,959) 403 Net financial assets, beginning of year 20,441 20,038 Net financial assets, end of year $ 18,482 $ 20,441
The accompanying notes are an integral part of these consolidated financial statements.
ANNUAL REPORT 2019–2020 47 NorQuest College Consolidated Statement of Remeasurement Gains and Losses
Year ended June 30, 2020 (in thousands of dollars) 2020 2019
Accumulated remeasurement gains, beginning of year $ 934 $ 202 Unrealized gains attributable to: Portfolio investments – non endowment Quoted in active market 538 732
Amounts reclassified to Consolidated Statement of Operations: Portfolio investments – non-endowment Quoted in active market - - Accumulated remeasurement gains, end of year $ 1,472 $ 934
48 NORQUEST COLLEGE NorQuest College Consolidated Statement of Cash Flows
Year ended June 30, 2020 (in thousands of dollars) 2020 2019 Restated
Operating transactions Annual (deficit) surplus $ (2,660) $ 1,440 Add (deduct) non cash items: Amortization of tangible capital assets 7,294 6,605 (Gain) loss on sale of portfolio investments (20) 25 Loss on disposal of tangible capital assets 42 197 Write down of tangible capital assets - 3,362 Expended capital recognized as revenue (5,577) (8,511) Increase in employee future benefit liabilities 463 304 Change in non cash items 2,202 1,982 (Increase) decrease in accounts receivable (944) 258 (Increase) decrease in inventories held for sale (182) 45 Decrease in accounts payable and accrued liabilities (1,798) (11,869) Decrease in deferred revenue, excluding change in restricted unrealized gain (3,318) (20,962) Increase in prepaid expenses (323) (159)
Cash applied to operating transactions (7,023) (29,265)
Capital transactions Acquisition of tangible capital assets (4,199) (24,879)
Cash applied to capital transactions (4,199) (24,879)
Investing transactions Purchase of portfolio investments (2,106) (12,445) Proceeds on sale of portfolio investments 526 19,698 Cash (applied to) provided by investing transactions (1,580) 7, 253
Financing transactions Debt – repayment (145) (180) Increase in spent deferred contribution, less expended capital recognized as revenue 2,926 21,616
Cash provided by financing transactions 2,781 21,436
Decrease in cash (10,021) (25,455)
Cash, beginning of year 24,643 50,098
Cash, end of year $ 14,622 $ 24,643
The accompanying notes are an integral part of these consolidated financial statements.
ANNUAL REPORT 2019–2020 49 NorQuest College Notes to the Consolidated Financial Statements Year ended June 30, 2020 (in thousands of dollars) 1. Authority and Purpose
The Board of Governors of NorQuest College is a corporation that manages and operates NorQuest College (“the college”) under the Post secondary Learning Act (Alberta). All members of the Board of Governors are appointed by either the Lieutenant Governor in Council or the Minister of Advanced Education, with the exception of the President, who is an ex officio member. Under the Post secondary Learning Act, Campus Alberta Sector Regulation, the college is a comprehensive community college offering diploma and certificate programs, as well as a wide range of foundational and preparatory programs. The college is a registered charity, and under section 149 of the Income Tax Act (Canada) is exempt from the payment of income tax.
2. Summary of Significant Accounting Policies and Reporting Practices a) General – Public Sector Accounting Standards (PSAS) and Use of Estimates
These consolidated financial statements have been prepared in accordance with Canadian PSAS.
The measurement of certain assets and liabilities is contingent upon future events; therefore, the preparation of these consolidated financial statements requires the use of estimates, which may vary from actual results. The college’s management uses judgment to determine such estimates. Employee future benefit liabilities, amortization of tangible capital assets and the revenue recognition for expended capital are the most significant items based on estimates. In management’s opinion, the resulting estimates are within reasonable limits of materiality and are in accordance with the significant accounting policies summarized below. These significant accounting policies are presented to assist the reader in evaluating these consolidated financial statements and, together with the following notes, should be considered an integral part of the consolidated financial statements. b) Valuation of Financial Assets and Liabilities
The college’s financial assets and liabilities are generally measured as follows:
Financial Statement Component Measurement Cash Cost Portfolio investments Fair value Accounts receivable Lower of cost or net realizable value Inventories held for sale Lower of cost or net recoverable value Accounts payable and accrued liabilities Cost Debt Amortized cost
Unrealized gains and losses from changes in the fair value of financial assets and liabilities are recognized in the Consolidated Statement of Remeasurement Gains and Losses. When the restricted nature of a financial instrument and any related changes in fair value create a liability, unrealized gains and losses are recognized as deferred revenue.
All financial assets are tested annually for impairment. When financial assets are impaired, impairment losses are recognized in the Consolidated Statement of Operations. A write down of a portfolio investment to reflect a loss in value is not reversed for a subsequent increase in value.
For financial assets and liabilities measured using amortized cost, the effective interest rate method is used to determine interest revenue or expense. Transaction costs are a component of cost for financial instruments measured using cost or amortized cost. Transaction costs are expensed for financial instruments measured at fair value. Investment management fees are expensed as incurred. The purchase and sale of cash and cash equivalents and portfolio investments are accounted for using trade-date accounting.
The college does not use foreign currency contracts or any other type of derivative financial instruments for trading or speculative purposes.
50 NORQUEST COLLEGE NorQuest College Notes to the Consolidated Financial Statements Year ended June 30, 2020 (in thousands of dollars)
2. Summary of Significant Accounting Policies and Reporting Practices (continued) b) Valuation of Financial Assets and Liabilities (continued)
Management evaluates contractual obligations for the existence of embedded derivatives and elects to either designate the entire contract for fair value measurement or separately measure the value of the derivative component when characteristics of the derivative are not closely related to the economic characteristics and risks of the contract itself. Contracts to buy or sell non financial items for the college’s normal purchase, sale or usage requirements are not recognized as financial assets or liabilities. The college does not have any embedded derivatives. c) Revenue Recognition
All revenues are reported on the accrual basis of accounting. Cash received for which goods or services have not been provided by year end is recognized as deferred revenue.
i. Government grants, non-government grants, and donations
Government transfers are referred to as government grants.
Restricted grants and donations are recognized as deferred revenue if the terms for the use, or the terms along with the college's actions and communications as to the use, create a liability. These grants and donations are recognized as revenue when the terms are met. If the grants and donations are used to acquire or construct tangible capital assets, revenue will be recognized over the useful life of the tangible capital assets.
Government grants without terms for the use of the grant are recognized as revenue when the college is eligible to receive the funds. Unrestricted non government grants and donations 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.
In-kind donations of services, materials and tangible capital assets are recognized at fair value when such value can reasonably be determined. Transfers of tangible capital assets from related parties are recognized at the carrying value.
ii. Grants and donations related to land
Grants and donations for the purchase of land are recognized as deferred revenue when received, and recognized as revenue when the land is purchased.
The college recognizes in-kind contributions of land as revenue at the fair value of the land when a fair value can be reasonably determined. When the college cannot determine the fair value, it records such in-kind contributions at nominal value.
iii. Endowment donations
Endowment donations are recognized as revenue in the Consolidated Statement of Operations in the year in which they are received, and are required by donors to be maintained intact in perpetuity.
iv. Investment income
Investment income includes dividends, interest income and realized gains or losses on the sale of unrestricted portfolio investments. Investment income from restricted grants and donations is recognized as deferred revenue when the terms for use create a liability, and is recognized as investment income when the terms of the grant or donation are met.
The endowment spending allocation portion of investment income earned by endowments is recognized as deferred revenue when the terms for the use by the endowment create a liability. Realized investment income allocated to endowment balances for the preservation of endowment capital purchasing power is recognized in the Consolidated Statement of Operations.
ANNUAL REPORT 2019–2020 51 NorQuest College Notes to the Consolidated Financial Statements Year ended June 30, 2020 (in thousands of dollars)
2. Summary of Significant Accounting Policies and Reporting Practices (continued) d) Endowments
Endowments consist of:
• Externally restricted donations received by the college, the principal of which is required to be maintained intact in perpetuity.
• Investment income earned (excluding unrealized income) on endowments in excess of the amount required for spending allocation is capitalized to build a reserve for use in future periods where earnings fall below target rates and grow the real value of the endowments. Benefactors as well as college policy stipulate that the economic value of the endowments must be protected by limiting the amount of income that may be expended and by reinvesting unexpended income. Investment income earned (excluding unrealized income) on endowments must be used in accordance with the various purposes established by the donors.
Under the Post secondary Learning Act, the college has the authority to alter the terms and conditions of endowments to enable:
• Income earned by the endowments to be withheld from distribution to avoid fluctuations in the amounts distributed and generally to regulate the distribution of income earned by the endowments.
• Encroachment on the capital of the endowments to avoid fluctuations in the amounts distributed and generally to regulate the distribution of investment income earned by the endowments if, in the opinion of the Board of Governors, the encroachment benefits the college and does not impair the long term value of the fund.
In any year, if the investment income earned on endowments is insufficient to fund the spending allocation, the spending allocation is funded from the accumulated capitalized investment income. However, for individual endowments without sufficient accumulated capitalized income, endowment principal is used in that year and is expected to be recovered by future investment income. e) Inventories Held for Sale
Inventories held for sale are valued at the lower of cost and expected net realizable value and are determined using the weighted average method. f) Tangible Capital Assets
Tangible capital assets are recognized at cost, which includes amounts that are directly related to the acquisition, design, construction, development, improvement or betterment of the asset, and cost associated with asset retirement obligations. Cost includes overhead directly attributable to construction and development. Work in progress, which includes facilities and improvement projects and development of information systems, is not amortized until after the project is complete and the asset is in service.
The cost, less residual value, of the tangible capital assets, excluding land, is amortized on a straight line basis over the estimated useful lives as follows:
Buildings and site improvements 10 – 40 years Leasehold improvements Term of lease Furniture, equipment and vehicle 10 years Computer hardware and software 3 years
52 NORQUEST COLLEGE NorQuest College Notes to the Consolidated Financial Statements Year ended June 30, 2020 (in thousands of dollars)
2. Summary of Significant Accounting Policies and Reporting Practices (continued)
Tangible capital assets write downs are recognized when conditions indicate they no longer contribute to the college’s ability to provide services, or when the value of future economic benefits associated with the tangible capital assets are less than their net book value. Net write downs are recognized as expenses.
Intangible assets, works of art, historical treasures and collections are expensed when acquired and not recognized as tangible capital assets because a reasonable estimate of the future benefits associated with such property cannot be made. g) Foreign Currency Translation
Transaction amounts denominated in foreign currencies are translated into their Canadian dollar equivalents at exchange rates prevailing at the transaction dates. In the period of settlement, foreign exchange gains and losses related to non capital items are recorded in the Consolidated Statement of Operations, and foreign exchange gains and losses related to capital items are recorded in the Consolidated Statement of Financial Position. h) Employee Future Benefits
i. Pension
The college participates with other employers in the Public Service Pension Plan (PSPP), the Management Employee Pension Plan (MEPP) and the Supplementary Retirement Plan (SRP). These pension plans are multi employer defined benefit pension plans that provide pensions for the college's participating employees based on years of service and earnings.
The college does not have sufficient plan information on the PSPP, MEPP and SRP to follow the standards for defined benefit accounting, and therefore follows the standards for defined contribution accounting. Accordingly, pension expense recognized for the PSPP, MEPP and SRP is comprised of employer contributions to the plan that are required for its employees during the year, which are calculated based on actuarially pre determined amounts that are expected to provide the plan’s future benefits.
ii. Long-term disability
The cost of providing non vesting and non accumulating employee future benefits for compensated absences under the college's long term disability plans is charged to expense in full when the event occurs which obligates the college to provide the benefits. The cost of these benefits is actuarially determined using the accumulated benefit method, a market interest rate and management's best estimate of the retirement ages of employees, expected health care costs and the period of employee disability. The college undertakes a formal actuarial review on a bi-annual basis and extrapolates the prior year actuarial information forward in the years in which a formal actuarial review is not performed. Actuarial or estimated gains or losses on the accrued benefit obligation are recognized in the period in which they occur.
iii. Short-term illness
The cost of providing non-vesting and non-accumulating employee future benefits for compensated absences under the college's short term illness plan is charged to expense in full when the event occurs which obligates the college to provide the benefits. The liability for these benefits is estimated using the specific rates of pay, the expected duration of their absence to a maximum of 80 days, and an estimate of their expected benefits for each employee. i) Basis of Consolidation
The consolidated financial statements use the line by line consolidated method to record the accounts of the NorQuest College Foundation ("the foundation"), which operates under the Companies Act (Alberta) to raise funds for projects, programs, and services that serve to improve opportunities for NorQuest College learners' success. The foundation is a registered charity and has been granted tax exempt status under the Income Tax Act (Canada).
ANNUAL REPORT 2019–2020 53 NorQuest College Notes to the Consolidated Financial Statements Year ended June 30, 2020 (in thousands of dollars)
2. Summary of Significant Accounting Policies and Reporting Practices (continued) j) Liability for Contaminated Sites
Contaminated sites are a result of contamination of a chemical, organic or radioactive material or live organism that exceeds an environmental standard, being introduced into soil, water or sediment. Contaminated sites occur when an environmental standard exists and contamination exceeds the environmental standard.
Contaminated sites in productive use:
A liability for remediation of contaminated sites from an operation(s) that is in productive use is recognized net of any expected recoveries when all of the following criteria are met: i. the college has a duty or responsibility to others, leaving little or no discretion to avoid the obligation; ii. the duty or responsibility to others entails settlement by future transfer or use of assets, or a provision of services at a specified or determinable date, or on demand; and iii. the transaction or events obligating the institution have already occurred.
Contaminated sites no longer in productive use: The college does not have contaminated sites no longer in productive use. k) Expense by Function
The college uses the following categories of functions in its Consolidated Statement of Operations:
Instruction
Expenses related to support all activities that are part of the college's credit and non credit programs and those non sponsored research and scholarly activities.
Academic support
Expenses related to the services, administrative and management activities that directly support academic functions, course and curriculum development activities, and academic personnel development.
Student support
Expenses related to admissions and registry functions and activities that support the student body or provide services to individual students or student groups. These include student services administration, social and cultural activities, counselling services and career guidance, financial aid administration, and scholarship awards.
Computing and data communication
Expenses related to resources, activities, and services that provide and support computing, networking, data communications, and other information technology functions.
Facility operations and maintenance
Expenses related to the maintenance and renewal of facilities that house the teaching, research, and administrative activities within the college. These include utilities, facilities administration, building maintenance, custodial services, landscaping and grounds keeping, as well as major repairs and renovations. Also includes amortization of buildings, site improvements, furniture, equipment and vehicles.
54 NORQUEST COLLEGE NorQuest College Notes to the Consolidated Financial Statements Year ended June 30, 2020 (in thousands of dollars)
2. Summary of Significant Accounting Policies and Reporting Practices (continued)
Institutional support
Expenses related to executive management, public relations, alumni relations, corporate marketing and communication, fund raising and funds development, corporate insurance premiums, corporate finance, human resources, and any other centralized college wide administrative services.
Ancillary services
Expenses related to operations ancillary to the normal institutional functions of instruction and research such as bookstores, food services, parking services, and amortization expenses related directly or attributable to such operations.
Sponsored research
Expenses related to all sponsored research activities specifically funded by restricted grants and donations from external organizations and undertaken within the college.
Special purpose
Expenses that do not support the major activities of the college such as instruction, ancillary services, and sponsored research. These include expenses that support special strategic initiatives outside of major activities specifically funded by restricted grants and donations, and internally restricted funds. l) Funds and Reserves
Certain amounts, as approved by the Board of Governors, are set aside in accumulated surplus for future operating and capital purposes. Transfers to or from funds and reserves are an adjustment to the respective fund when approved. m) Future Accounting Changes
In August 2018, the Public Sector Accounting Board issued PS 3280 Asset retirement obligations. This accounting standard is effective for fiscal years starting on or after April 1, 2022. Asset retirement obligations provides guidance on how to account for and report a liability for retirement of a tangible capital asset.
In November 2018, the Public Sector Accounting Board approved PS 3400 Revenue. This accounting standard is effective for fiscal years starting on or after April 1, 2023 and provides guidance on how to account for and report on revenue, specifically addressing revenue arising from exchange transactions and unilateral transactions.
Management is currently assessing the impact of these new standards on the consolidated financial statements.
ANNUAL REPORT 2019–2020 55 NorQuest College Notes to the Consolidated Financial Statements Year ended June 30, 2020 (in thousands of dollars)
3. Changes in Accounting Policy
Effective July 1, 2019, NorQuest College increased the threshold for recording tangible capital assets from $1,000 to $5,000 to better align the effort of administering the recording, tracking and replacing of capital assets with the presentation of financial information and to align with practices across the sector. This change in accounting policy has been applied retrospectively with restatement of comparative numbers. The impact on the prior year's consolidated financial statements is as follows:
2019 As previously Adjustment As reported reported restated
Increased (decrease) in: Consolidated Statement of Financial Position Tangible capital assets $ 181,507 $ (5,867) $ 175,640 Spent deferred capital contributions 161,691 (3,784) 157,9 07 Accumulated surplus 40,230 (2,083) 38,147 Consolidated Statement of Operations
Revenues Government of Alberta grants 67, 20 6 540 67,74 6 Expenses Computing and data communication 7,9 9 0 150 8,140 Facility operations and maintenance 19,209 724 19,933 Other(a) 93,311 23 93,334 Expense by Object Amortization of tangible capital assets 11,447 (1,283) 10,164 Materials, supplies and services 20,639 2,180 22,819
Consolidated Statement of Change in Net Financial Assets Acquisition of tangible capital assets (27,059) 2,180 (24,879) Amortization of tangible capital assets 7,888 (1,283) 6,605 Change in spent deferred capital contributions 13,645 (540) 13,105
(a) Include Instruction, Academic Support, Student Support, Institutional Support, Sponsored Research, and Special Purpose functions.
56 NORQUEST COLLEGE NorQuest College Notes to the Consolidated Financial Statements Year ended June 30, 2020 (in thousands of dollars)
4. Portfolio Investments
2020 2019 Portfolio investments – non-endowment $ 35,081 $ 33,232 Portfolio investments – restricted for endowments 5,467 5,279 $ 40,548 $ 38,511
The composition of portfolio investments measured at fair value is as follows: 2020 Level 1 Level 2 Level 3 Total Portfolio investments at fair value Pooled investment funds Fixed income $ - $ 24,925 $ - $ 24,925 Canadian equities - 6,100 - 6,100 Foreign equities - 9,523 - 9,523 Total portfolio investments $ - $ 40,548 $ - $ 40,548 0.0% 100.0% 0.0% 100.0%
2019 Level 1 Level 2 Level 3 Total Portfolio investments at fair value Pooled investment funds Fixed income $ - $ 23,456 $ - $ 23,456 Canadian equities - 6,490 - 6,490 Foreign equities - 8,565 - 8,565 Total portfolio investments $ - $ 38,511 $ - $ 38,511 0.0% 100.0% 0.0% 100.0%
The fair value measurements are those derived from: Level 1 - Quoted prices in active markets for identical assets. Level 2 - Fair value measurements are those derived from inputs other than quoted prices included within level 1 that are observable for the assets, either directly (i.e. as prices) or indirectly (i.e. derived from prices). Level 3 - Fair value measurements are those derived from valuation techniques that include inputs for the assets that are not based on observable market data (i.e. unobservable inputs).
The college has a formal investment policy that provides guidelines within which the college's investment portfolio is to be effectively and ethically maintained, managed and enhanced. The policy governs asset mix, exposure limits, credit quality and performance measurement. The Finance and Audit Committee, a committee of the Board of Governors, has been delegated oversight responsibility for the college's investments. The Finance and Audit Committee is provided with regular updates on the performance of the portfolio investments to ensure compliance with the stated policy objectives and to evaluate the ongoing appropriateness of the investment policy.
The college engages an external investment manager to manage the college's portfolio investments. The investment manager is delegated authority to purchase and sell securities within pooled funds subject to the college's investment policy. Investment holdings are currently separated into two funds: operating reserve and endowment, whose performances are monitored against established benchmark returns.
ANNUAL REPORT 2019–2020 57 NorQuest College Notes to the Consolidated Financial Statements Year ended June 30, 2020 (in thousands of dollars)
5. Financial Risk Management
The college is exposed to the following risk:
Market price risk
The college is exposed to moderate market price risk, the risk that the value of a financial instrument will fluctuate as a result of changes in market prices, whether those changes are caused by factors specific to the individual security, its issuer or general market factors affecting all securities. To manage this risk, the college has established an investment policy with a target asset mix that is diversified by asset class with individual issuer limits. The investment policy specifies minimum bond ratings, that securities be listed on approved stock exchanges and other benchmarks determined appropriate by the college for each of the operating, capital and endowment portfolio investments. The policy provides for an acceptable level of investment risk to: obtain a reasonable rate of return, provide growth and income that aligns with college obligations, and preserve capital amounts.
In 2020, the college invested solely in pooled investment funds that have market based unit values subject to fluctuation. The market value of a pooled investment fund is its net asset value, which is allocated to pool participants. Participants in the pools have no control over the management or selection of securities in the pool. The college is exposed to market price risk when it purchases units issued by the pools. Unrealized gains and losses attributable to changes in fair market value are reflected in either the Statement of Remeasurement Gains and Losses or deferred revenue if they relate to restricted funds.
The college assesses its portfolio sensitivity to a percentage increase (decrease) in market prices. The sensitivity rate is determined using the beta coefficient relative to the security's benchmark, weighted by holding over a one year period for total pooled equities as determined by the external investment manager. At June 30, 2020, if market prices had a 5% (2019 - 5%) increase or decrease, with all other variables held constant, the increase or decrease in market value of the college's investments in equities for the year would be $395 (2019 - $314).
Foreign currency risk
Foreign currency risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. The college does not hold any financial assets or liabilities denominated in foreign currencies. The college is exposed to foreign exchange risk on its pooled investments that hold foreign equities or bonds. The college does not use foreign currency forward contracts or any other type of derivative financial instruments for trading or speculative purposes. The college's exposure to foreign exchange risk is low due to minimal business activities conducted in foreign currencies.
Credit risk
Counterparty credit risk is the risk of loss arising from the failure of a counterparty to fully honor its financial obligations with the college.
The college is exposed to credit risk on its fixed income investments and has established an investment policy with required minimum credit quality standards and issuer limits to manage this risk. As at June 30, 2020, fixed income investments consisted solely of pooled investment funds with a low credit risk that carried an average credit quality rating of at least A (2019: A-).
The credit risk on fixed income investments held are as follows:
Credit Rating 2020 2019 A 100.0% - A- - 100.0%
58 NORQUEST COLLEGE NorQuest College Notes to the Consolidated Financial Statements Year ended June 30, 2020 (in thousands of dollars)
5. Financial Risk Management (continued)
Credit risk (continued)
The credit risk from accounts receivable is low as the majority of balances are due from government agencies. When appropriate, the college provides an allowance for doubtful accounts receivable. The college has agreements with donors for pledges, which are not enforceable by law, exposing it to counterparty credit risk. As the college does not record pledges receivable until collected, the credit risk is low.
Liquidity risk
Liquidity risk is the risk that the college will encounter difficulty in meeting obligations associated with its financial liabilities. The college's liquidity risk arises due to its cash outflow requirements related to accounts payable and accrued liabilities, debt and financing of capital construction in progress. The college maintains and monitors adequate working capital and a line of credit to ensure that funds are available to meet current and forecasted financial requirements in the most cost effective manner. The future contractual payments related to fixed rate debt are described in note 7 and for other contractual obligations in note 15.
Interest rate risk
Interest rate risk is the risk to the college’s earnings that arise from the fluctuations in interest rates and the degree of volatility of these rates. The college's interest sensitive assets that generate interest income are its cash and portfolio investments, while its interest sensitive liabilities that incur interest expense are debt. This risk is managed by investment policies that limit the term to maturity of certain fixed income securities that the college holds. In 2020, the college was exposed to low interest rate risk on its cash balances. There was a 150 basis point decrease in 2020 (2019 - 50 basis point increase) in the prime rate that affected the interest earned on cash balances held at the college's bank balances. Interest rates for pooled bond funds, fluctuated little in 2020 and 2019. If interest rates decreased by 1%, and all other variables are held constant, the potential gain in fair value to the college would be approximately 7.18% or $1,790 on total investments in pooled bond funds of $24,925 (2019 - approximately 6.15% or $1,443 on total investments in pooled bond funds of $23,456). Interest risk on the college's debt is managed through a fixed rate agreement with Alberta Capital Finance Authority as described in note 7.
The maturity and average effective market yield of interest bearing assets are as follows:
Average effective market Asset class < 1 year 1 - 5 years > 5 years yield Cash 100.00% - - 1.63% Portfolio investments - pooled bond funds - - 100.00% 2.60%
6. Employee Future Benefit Liabilities
Employee future benefit liabilities are comprised of the following: 2020 2019
Benefit liability for employees on long-term disability $ 1,542 $ 1,068 Liability for short-term illness 39 50
$ 1,581 $ 1,118
ANNUAL REPORT 2019–2020 59 NorQuest College Notes to the Consolidated Financial Statements Year ended June 30, 2020 (in thousands of dollars)
6. Financial Risk Management (continued) a) Defined Benefit Accounted for on a Defined Benefit Basis
i. Benefit liability for employees on long‑term disability (LTD)
The college provides long term disability defined benefits to its permanent and term employees. The LTD plan provides pension and non pension benefits after employment, but before the employee's normal retirement date.
Benefit liability for employees on LTD was actuarial valuated as at June 30, 2020. The college performs an actuarial valuation every second year with the next valuation scheduled for the 2022 fiscal year. Benefit liability for employees on LTD for 2019 was estimated assuming no change in actuarial assumptions and using forecasted values for new additions to the LTD plan from the 2018 actuarial assessment and adjusting for changes in volume of staff on LTD. The college had 15 (2019 - 14) employees on LTD as at June 30, 2020.
The expense and financial position of the benefit liability for employees on LTD are as follows:
2020 2019
Benefit liability for Benefit liability for employees on LTD employees on LTD Expense Interest cost $ 11 $ - Actuarial loss 1,226 305
Total expense $ 1,237 $ 305
Financial Position Accrued benefit obligation: Balance, beginning of year $ 1,068 $ 763 Adjustment for actuarial estimate (475) 157 Interest cost 11 - Benefits paid (288) (157) Actuarial loss 1,226 305 Accrued benefit obligation and benefit liability for LTD $ 1,542 $ 1,068
The college plans to use its working capital to finance these future obligations.
60 NORQUEST COLLEGE NorQuest College Notes to the Consolidated Financial Statements Year ended June 30, 2020 (in thousands of dollars)
6. Employee Future Benefit Liabilities (continued)
The significant actuarial assumptions used to measure the accrued benefit obligation are as follows:
2020 2019
Benefit liability for Benefit liability for employees on LTD employees on LTD
Accrued benefit obligation Discount rate 1.30% 2.40% Long-term average compensation increase 0.00% 3.50%
Benefit cost(a) Discount rate 1.30% 1.40% Long-term average compensation increase 0.00% 3.50% Alberta inflation (long-term)(a) 2.00% 2.00% Estimated average remaining service life(a) 5.80yrs 4.80yrs
(a) Benefit cost items, Alberta inflation and estimated average remaining service life are used in year over year comparative analysis. During 2020, there were three significant changes made to actuarial assumptions as compared to previous actuarial valuations.
(1) Discount rate - the 150 basis point reduction in the Canadian prime rate in March 2020 led to a revision of the discount rate used in estimating the current value of the liability. The decrease in the discount rate results in an increase in the calculated actuarial loss in 2020 as used in the calculation of the present value.
(2) Long term average compensation increase - once an employee enters the LTD program, their base salary is frozen for the period of time that are in receipt LTD benefits. Accordingly, the value for this assumption was set to zero for 2020.
(3) Estimated average remaining service life - during 2020, there was a high turnover of employees receiving LTD benefits. Ten (10) employees left the LTD program and were replaced by eleven (11) new LTD recipients. The ten departing employees had been participating on the LTD programs for multiple years and were generally older than the eleven employees that replaced them resulting in an average increase in the estimated period of the liability for all employees on LTD by one year.
As there are no assets set aside to fund these liabilities, the 2020 and 2019 discount rates used for the accrued benefit obligation and benefit cost were provided by the actuary engaged by the college in the 2020 actuarial review.
ii. Liability for Short-term Illness (STI)
The college provides short term illness defined benefits to its permanent and term employees. The liability for short term illness is recognized when an event occurs that obligates the college to provide such benefits for a maximum of 80 days. The college had 17 (2019 - 17) employees on STI as at June 30, 2020.
The financial position and expense of the STI plan are as follows:
2020 2019 Accrued benefit liability, beginning of year $ 50 $ 51 Obligations arising/expense during the year 738 961 Benefits paid (749) (962)
Accrued benefit liability, end of year $ 39 $ 50
ANNUAL REPORT 2019–2020 61 NorQuest College Notes to the Consolidated Financial Statements Year ended June 30, 2020 (in thousands of dollars)
6. Employee Future Benefit Liabilities (continued) b) Defined benefit accounted for on a defined contribution basis
Multi employer pension plans
(i) Public Service Pension Plan (PSPP)
The PSPP is a multi employer contributory defined benefit pension plan for all permanent and term employees excluding management positions and is accounted for on a defined contribution basis. The pension expense recorded in these consolidated financial statements is $6,618 (2019 - $6,238).
An actuarial valuation of the PSPP was carried out as at December 31, 2019. At December 31, 2019, the PSPP reported a surplus of $2,759,320 (2018 - $519,218). For the year ended December 31, 2019, PSPP reported employer contributions of $323,894 (2018 - $337,390) and employee contributions of $330,257 (2018 - $338,742). For the 2019 calendar year, the college's contributions were $6,385 (2018 - $5,874). (ii) Management Employee Pension Plan (MEPP)
The MEPP is a multi employer contributory defined benefit pension plan for management positions and is accounted for on a defined contribution basis. The pension expense recorded in these consolidated financial statements is $1,402 (2019 - $1,543).
An actuarial valuation of the MEPP was carried out as at December 31, 2018, and was then extrapolated to December 31, 2019. At December 31, 2019, the MEPP reported a surplus of $1,008,135 (2018 - $670,700). For the year ended December 31, 2019, MEPP reported employer contributions of $108,615 (2018 - $107,630) and employee contributions of $81,924 (2018 - $82,335). For the 2019 calendar year, the college's contributions were $1,603 (2018 - $1,442). (iii) Supplementary Retirement Plan (SRP)
The SRP is a multi employer contributory defined benefit pension plan providing additional pension benefits to managers of designated employers who participate in the Management Employee Pension Plan (MEPP) and whose annual salary exceeds the maximum pensionable salary limit under the Income Tax Act. It is accounted for on a defined contribution basis. The pension expense recorded in these consolidated financial statements is $131 (2019 - $112).
An actuarial valuation of the SRP was carried out as at December 31, 2018, and was then extrapolated to December 31, 2019. At December 31, 2019, the SRP reported an actuarial deficit of $44,698 (2018 - $70,310). For the year ended December 31, 2019, SRP reported employer contributions of $2,735 (2018 - $3,312) and employee contributions of $2,741 (2018 - $3,311). For the 2019 calendar year, the college's contributions were $125 (2018 - $122). The college participated in the SRP effective from January 1, 2013. The SRP's deficit is being discharged through additional contributions from the employers effective April 1, 2015. Other than the requirement to make additional contributions, the college does not bear any risk related to the SRP deficit.
62 NORQUEST COLLEGE NorQuest College Notes to the Consolidated Financial Statements Year ended June 30, 2020 (in thousands of dollars)
7. Debt Debt is measured at amortized cost and is comprised of the following:
Collateral Maturity date Interest rate 2020 2019 Debentures payable to Alberta Capital Finance Authority:
Debenture for parkade loan 1 September 2042 2.989% $ 4,607 $ 4,752
$ 4,607 $ 4,752
Collateral - (1) General security agreement. Principal and interest repayments in each of the next five years and thereafter are as follows:
Principal Interest Total 2021 $ 149 $ 136 $ 285 2022 153 132 285 2023 158 127 285 2024 163 122 285 2025 168 117 285 Thereafter 3,816 1,097 4,913
$ 4,607 $ 1,731 $ 6,338
Interest expense on debt is $141 (2019 - $188) and is included in the Consolidated Statement of Operations.
8. Deferred Revenue Deferred revenues are set aside for specific purposes as required either by legislation, regulation or agreement:
2020 2019
Unspent Deferred deferred capital Tuition and contribution contributions other fees Total Total
Balance, beginning of year $ 7,461 $ 9,643 $ 8,715 $ 25,819 $ 46,709 Grants, tuition, donations received during the year 15,896 - 42,423 58,319 57, 8 91 Restricted investment income ‑ realized gain 278 - - 278 445 Restricted investment income unrealized (loss) gain (100) - - (100) 71 Transfers to spent deferred capital contributions (372) (2,554) - (2,926) (22,156) Recognized as revenue (15,017) (1,198) (42,745) (58,960) (57,141) Transfer to endowments (30) - - (30) - Balance, end of year $ 8,116 $ 5,891 $ 8,393 $ 22,400 $ 25,819
ANNUAL REPORT 2019–2020 63 NorQuest College Notes to the Consolidated Financial Statements Year ended June 30, 2020 (in thousands of dollars)
9. Tangible Capital Assets
2020 2019 Restated
Buildings Furniture, Computer (note 3) & site Leasehold equipment hardware & Land improvements improvements & vehicle software Total Total
Cost Balance, beginning of year $ 6,752 $ 176,210 $ 4,234 $ 6,767 $ 13,402 $ 207,365 $ 190,284 Acquisitions - 2,681 334 686 498 4,199 24,879 Disposals, including write downs - - - (217) (305) (522) (7,7 9 8) 6,752 178,891 4,568 7,236 13,595 211,042 207, 365
Accumulated Amortization Balance, beginning of year $ - $ 16,288 $ 3,365 $ 2,416 $ 9,656 $ 31,725 $ 29,359 Amortization expense - 4,994 148 653 1,499 7,294 6,605 Disposals, including write downs - - - (179) (301) (480) (4,239) - 21,282 3,513 2,890 10,854 38,539 31,725 Net book value, June 30, 2020 $ 6,752 $ 157,609 $ 1,055 $ 4,346 $ 2,741 $ 172,503 Net book value, June 30, 2019 $ 6,752 $ 159,922 $ 869 $ 4,351 $ 3,746 $ 175,640
Historic cost includes work in progress as at June 30, 2020 totaling $1,735 (2019 - $13,544) comprised of site improvements $979 (2019 - $13,131), development of information systems $675 (2019 - $287) and equipment $81 (2019 - $2), leasehold improvement $0 (2019 - $124), which is not amortized as the assets are not in service.
10. Spent Deferred Capital Contributions
Spent deferred capital contributions are comprised of restricted grants and donations spent on tangible capital acquisitions (not yet recognized as revenue).
2020 2019 Restated (note 3) Balance, beginning of year $ 157,907 $ 144,262 Transfers from unspent deferred capital contributions 2,554 21,713 Transfers from deferred contributions 372 443 Expended capital recognized as revenue (5,577) (8,511) Balance, end of year $ 155,256 $ 157,9 07
64 NORQUEST COLLEGE NorQuest College Notes to the Consolidated Financial Statements Year ended June 30, 2020 (in thousands of dollars)
11. Net Assets
The composition of net assets is as follows: Accumulated Investment in Internally surplus from tangible restricted operations capital assets surplus Endowments Total (Restated (Restated (Restated note 3) note 3) note 3)
Net assets, as at June 30, 2018 $ 15,086 $ 9,901 $ 7,272 $ 4,650 $ 36,909 Annual operating surplus 1,288 - - - 1,288 Endowments New donations - - - 110 110 Capitalized investment income - - - 42 42 Internally funded tangible capital assets Amortization of tangible capital assets 1,566 (1,566) - - - Acquisition of tangible capital assets (3,889) 3,889 - - - Debt repayment (180) 180 - - - Net book value of tangible capital asset disposals 717 (717) - - - Expenditures funded from internally restricted surplus 5,054 - (5,054) - - Net Board appropriation to internally restricted surplus (2,000) - 2,000 - -
Changes in accumulated remeasurement gains 732 - - - 732 Net assets, as at July 1, 2019 $ 18,374 $ 11,687 $ 4,218 $ 4,802 $ 39,081 Annual operating deficit (2,726) - - - (2,726) Endowments Capitalized investment income - - - 36 36 Transfer from endowments - - - 30 30 Internally funded tangible capital assets
Amortization of tangible capital assets 1,753 (1,753) - - - Acquisition of tangible capital assets (1,278) 1,278 - - - Debt repayment (145) 145 - - - Net book value of tangible capital asset disposals 9 (9) - - - Expenditures funded from internally restricted surplus 1,409 - (1,409) - - Net Board appropriation to internally restricted surplus (2,100) - 2,100 - - Change in accumulated remeasurement gains 538 - - - 538 Net assets, as at June 30, 2020 $ 15,834 $ 11,348 $ 4,909 $ 4,868 $ 36,959
Net assets is comprised of: Accumulated surplus $ 14,362 $ 11,348 $ 4,909 $ 4,868 $ 35,487 Accumulated remeasurement gains 1,472 - - - 1,472 $ 15,834 $ 11,348 $ 4,909 $ 4,868 $ 36,959
ANNUAL REPORT 2019–2020 65 NorQuest College Notes to the Consolidated Financial Statements Year ended June 30, 2020 (in thousands of dollars)
11. Net Assets (continued)
Investment in tangible capital assets
Investment in tangible capital assets represents the amount of the college’s accumulated surplus that has been invested in the college’s tangible capital assets.
Internally restricted surplus
Internally restricted surplus represent amounts set aside by the college's Board of Governors for specific purposes. Those amounts are not available for other purposes without the approval of the Board and do not have interest allocated to them.
Internally restricted surplus with significant balances include:
Appropriations Balance at from Spent Balance at beginning of unrestricted during end the year net assets the year of the year Capital Downtown campus development $ 454 $ - $ - $ 454 Information and technology asset investment 1,134 1,864 (464) 2,534 Non-IT asset investment 825 236 (877) 184 2,413 2,100 (1,341) 3,172 Operating Program and curriculum development 1,500 - - 1,500 Scholarships and bursaries 59 - (2) 57 Other 96 - (66) 30 1,655 - (68) 1,587 Research Applied research 150 - - 150 $ 4,218 $ 2,100 $ (1,409) $ 4,909
12. Contingent Assets
The college may have potential recoveries arising in the normal course of business in which the outcomes may result in assets in the future. While the outcomes of the claims cannot be reasonably estimated at this time, the college believes that any settlement will not have a material effect on the financial position or the result of operations of the college. The contingent assets are not recorded in the consolidated financial statements.
66 NORQUEST COLLEGE NorQuest College Notes to the Consolidated Financial Statements Year ended June 30, 2020 (in thousands of dollars)
13. Contingent Liabilities
The college is a defendant in nine (2019 - seven) legal claims arising in the normal course of business. While the ultimate outcome and liability of these proceedings cannot be reasonably estimated at this time, the college believes that any settlement will not have a material adverse effect on the financial position or the results of operations of the college.
The college has contingent liabilities related to the existence of hazardous materials in a number of its owned facilities. Since 2014 the college has undergone extensive abatement of known hazardous materials in its facilities according to applicable environmental standards. Due to the age of some of the facilities, without extensive destructive testing, it is not possible to confirm if there is any remaining unknown hazardous materials and to reliably estimate a cost to remediate any unknown hazardous materials.
14. Contractual Rights
Contractual rights are the rights of the college to economic resources arising from contracts or agreements that will result in both assets and revenues in the future when the terms of those contracts or agreements are met.
Estimated amounts that will be received or receivable for each of the next five years and thereafter are as follows:
(a)Total Revenue Contracts 2021 $ 293 2022 76 2023 25 2024 2 2025 1 Thereafter 5 $ 402
Total at June 30, 2019 $ 444
(a) There are no operating and capital lease contracts.
ANNUAL REPORT 2019–2020 67 NorQuest College Notes to the Consolidated Financial Statements Year ended June 30, 2020 (in thousands of dollars)
15. Contractual Obligations
The college has contractual obligations which are commitments that will become liabilities in the future when the terms of the contracts or agreements are met. The estimated aggregate amount payable for the unexpired terms of these contractual obligations are as follows:
Information Service systems and Long-term Capital contracts technology leases projects Total 2021 $ 2,935 $ 1,319 $ 1,311 $ 1,616 $ 7,181 2022 913 946 1,060 502 3,421 2023 16 336 1,075 129 1,556 2024 - 191 1,018 124 1,333 2025 - 104 729 119 952 Thereafter 2 34 1,598 1,127 2,761 $ 3,866 $ 2,930 $ 6,791 $ 3,617 $ 17,204
Total at June 30, 2019 $ 4,155 $ 3,192 $ 8,215 $ 7, 262 $ 22,824
16. Expense by Object
The following is a summary of expense by object:
2019 2020 2020 Restated (note 3)
Budget Actual Actual Salaries $ 76,993 $ 75,610 $ 69,201 Employee benefits 15,782 15,545 13,902 Materials, supplies and services 17,952 17,834 22,819 Utilities 1,637 1,411 1,503 Leases, maintenance and repairs 4,371 3,358 3,916 Cost of goods sold 1,270 1,374 1,267 Scholarships and bursaries 432 1,122 673 Amortization of tangible capital assets (including loss on disposal) 9,064 7,336 10,164 Interest on debt 142 184 188 $ 127,643 $ 123,774 $ 123,633
68 NORQUEST COLLEGE NorQuest College Notes to the Consolidated Financial Statements Year ended June 30, 2020 (in thousands of dollars)
17. Funds Held on Behalf of Others
The college holds the following funds on behalf of others over which the Board has no power of appropriation. Accordingly, these funds are not included in the consolidated financial statements.
2020 2019 Deferred Salary Leave Plan $ 19 $ - NorQuest College Faculty Association 64 32 NorQuest College Student Association 1 1 Other 9 9 $ 93 $ 42
18. Related Parties
The college is a related party with organizations within the Government of Alberta reporting entity. Key management personnel of the college and their close family members are also considered related parties. The college may enter into transactions with these entities and individuals in the normal course of operations and on normal terms.
The college has no business relationships, outstanding amounts or transactions (other than compensation as described in note 20) with key management personnel.
The college has debt liabilities with Alberta Capital Finance Authority as described in note 7. The college received government transfers as described in note 19.
During the year, the college conducted business transactions with related parties, including ministries of the Government of Alberta and other post secondary institutions. The revenues and expenses incurred for these business transactions have been included in the Consolidated Statement of Operations but have not been separately quantified.
During the year, the college provided and received the following services at nominal or reduced amounts:
• The college had an agreement with Alberta Infrastructure to October 31, 2019 for the lease of 3,806 square meters of space and parking stalls related to the Westmount Campus. The college was responsible to pay its share of operating costs, however it paid rent of a nominal amount.
ANNUAL REPORT 2019–2020 69 NorQuest College Notes to the Consolidated Financial Statements Year ended June 30, 2020 (in thousands of dollars)
19. Government Transfers
The college operates under the authority and statutes of the Province of Alberta. Transactions and balances between the college and the Government of Alberta are measured at the exchange amount and summarized below.
2020 2019 Restated (note 3)
Grants from Government of Alberta Advanced Education: Operating $ 44,274 $ 45,935 Capital 1,142 2,342 Strategic Investment Fund - 167 Recurring restricted grants(a) 10,254 10,367 Other 1,144 949 Total Advanced Education 56,814 59,760
Other Government of Alberta departments and agencies Health - 72 Labour and Immigration 1,020 1,530 Other 23 250
Total other Government of Alberta departments and agencies 1,043 1,852
Total contributions received 57,857 61,612 Expended capital recognized as revenue 5,479 8,104 Change in deferred revenue (4,000) (1,972)
Total Government of Alberta grants $ 59,336 $ 67,74 4
Federal and other government grants Contributions received $ 10,196 $ 10,080 Expended capital recognized as revenue 13 770 Change in deferred revenue (235) 299
Total Federal and other government grants $ 9,974 $ 11,149
(a) Recurring restricted grants include grants for Health Workforce Action Plan, Support Learners with Disabilities, Inmate Education Programs and Work Foundations Tuition to Students.
70 NORQUEST COLLEGE NorQuest College Notes to the Consolidated Financial Statements Year ended June 30, 2020 (in thousands of dollars)
20. Salary and Employee Benefits
Under the authority of the Fiscal Management Act, the President of Treasury Board and Minster of Finance requires the disclosure of certain salary and employee benefits information.
2020 2019 Other Other cash non-cash Base salary(2) benefits(3)(4) benefits (5)(6) Total Total Governance(1) Chair of the Board of Governors $ - $ 5 $ - $ 5 $ 3 Members of the Board of Governors - 32 - 32 32 Executive President & Chief Executive Officer(7) 368 156 56 580 474 Chiefs/Vice‑Presidents (VP): Chief Culture & Transformation Office(8) 219 - 47 266 59 Chief Customer Experience Officer(8) 213 8 52 273 54 VP Teaching & Learning & Chief Academic Officer 198 31 47 276 286 VP Corporate Services & Finance(9) 169 - 44 213 237
VP External Affairs & Brand(10) 177 - 43 220 173
VP Business Development 193 19 43 255 262
VP People 193 - 47 240 221
(1) The chair and members of the Board of Governors receive no remuneration for participation on the Board. (2) Base salary includes pensionable base pay to Executive and non-pensionable compensation to Interim President. (3) Other cash benefits for Governance represents administrative honorarium for the chair and members of the Board of Governors. (4) Other cash benefits for Executive include earnings such as estimated variable compensation for the president and vice presidents and vacation payout. (5) Other non-cash benefits for Executive include the employer's share of all employee benefits and contributions or payments made on behalf of employees including pension, supplementary retirement plan, basic life insurance, employee and family assistance program, extended health care, dental plan, accidental death and dismemberment, long term disability plan, parking (per CRA guidelines), professional memberships, professional development and tuition fees. (6) The Supplementary Retirement Plan (SRP) was implemented effective January 1, 2013. Under the terms of the SRP, executive officers may receive supplemental payments. SRP is described in note 6. (7) The President & Chief Executive Officer position was vacated on January 3, 2020 and was replaced on an interim basis until July 19, 2020. The role was transitioned to the incoming president June 15 to July 19, 2020 with full responsibility starting on July 20, 2020. (8) New roles effective April 8, 2019. (9) The VP Corporate Services & Finance position was vacant at July 1, 2019 and was filled August 6, 2019. (10) The VP External Affairs & Brand position was vacant at July 1, 2019 and was filled July 29, 2019.
ANNUAL REPORT 2019–2020 71 NorQuest College Notes to the Consolidated Financial Statements Year ended June 30, 2020 (in thousands of dollars)
21. Impact of COVID-19
The COVID-19 pandemic continues to cause material disruption to NorQuest College by causing the temporary closure of buildings on campus and by creating an overall economic slowdown across Alberta and the rest of the world. The college continues to assess and monitor the impact of COVID-19 on its financial condition, including the likelihood of decreased revenues and increased expenditures as a direct result of this pandemic. The magnitude and duration of COVID-19 is uncertain and accordingly, it is difficult to reliably measure the potential future impact on the college's financial position and operations.
22. Budget Figures
Budgeted figures have been provided for comparison purposes and have been derived from the college’s Comprehensive Institutional Plan as approved by the Board of Governors.
23. Approval of Financial Statements
The consolidated financial statements were approved by the Board of Governors of NorQuest College.
24. Comparative Figures
Certain comparative figures have been reclassified to conform to the current year presentation.
72 NORQUEST COLLEGE ANNUAL REPORT 2019–2020 73 NorQuest College 10215 108 Street NW Edmonton, Alberta, Canada T5J 1L6 norquest.ca