Annual Report 2017-2018 Prepared for the Ministry of Advanced Education Ambrose University 150 Ambrose Circle SW Calgary, Alberta T3H 0L5 www.ambrose.edu
22 COMPREHENSIVE INSTITUTIONAL PLAN 2014-2017 Annual Report Academic Year 2017-2018 For Alberta Advanced Education
Contents
1. Accountability Statement ...... 2 2. Management’s Responsibility for Reporting ...... 2 3. Message from the President ...... 2 4. Public Interest Disclosure (Whistleblower Protection) Act ...... 3 5. Operational Overview ...... 4 6. Goals, Priority Initiatives, Expected Outcomes and Performance Measures ...... 6 Accessibility ...... 6 Affordability ...... 14 Quality ...... 16 Coordination ...... 22 Accountability ...... 26 Other ...... 26 7. Financial and Budget Information ...... 27 8. Enrolment Plan and Program Changes ...... 31 9. Research, Applied Research and Scholarly Activity ...... 35 10. Community Outreach and Underrepresented Learners ...... 36 11. Internationalization ...... 37 12. Capital Plan ...... 37 13. Information Technology ...... 37 Appendix A: Audited Financial Statement ...... 38
1 1. Accountability Statement Ambrose University’s Annual Report for the year ended April 30, 2018 was prepared under the Board’s direction in accordance with ministerial guidelines. All material economic, environmental or fiscal implications of which we are aware have been considered in the preparation of this report.
Kenneth Stankievech Chair, Board of Governors
2. Management’s Responsibility for Reporting Ambrose University’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, assets are properly accounted for and safeguarded.
The Annual Report has been approved by the Board of Governors and is prepared in accordance with Ministerial guidelines.
Gordon T. Smith, PhD President
3. Message from the President Ambrose University is an active participant in Campus Alberta. As one of the Independent Academic Institutions we value our partnership with the Ministry and with our fellow post-secondary institutions in the province. As an Independent Academic Institution, Ambrose University does not receive a mandate statement from the Minister of Advanced Education.
Unduplicated headcount in the 2017-2018 academic year was 1105, a 3.8% decline from the previous year. There was significant growth in the Bachelor of Education program which offset the decreases in other programs.
A marker of our progress towards achievement of our mission is reflected in the results of the National Survey of Student Engagement (NSSE). In response to questions about the quality of their overall experience at Ambrose, 96% of our senior students and 87% of our first year students rated their Ambrose experience as “Excellent” or “Good” (both measures are above the national average). This strong performance is an indicator that across the institution, in academic settings and in co-curricular activities, Ambrose faculty and staff are focused on creating a vibrant learning environment for our students. Another marker of success appeared in the results of the Ambrose Graduate Outcomes Survey: 93% of our graduates find employment following graduation.
2 Faculty in three programs were engaged in cyclical program reviews: Biology, Behavioral Studies and General Studies. The proposal for the Bachelor of Arts degree in Psychology was submitted to the Ministry and Campus Alberta Quality Council during the academic year.
Ambrose hosts three Institutes: the Jaffray Centre for Global Initiatives, the Flourishing Congregations Institute and the Canadian Poverty Institute. Each has a distinct mandate and identity within the institution, and each launched significant initiatives within the 2017-2018 academic year. Of particular interest was the Social Sciences and Humanities Research Council of Canada (SSHRC) grant that was secured by the Flourishing Congregations Institute, in collaboration with the University of Saskatchewan.
The Student Development division led the university community in developing a Community Standards policy and procedure document outlining parameters and policies for all students within and outside of classrooms, in the residence and while in the community representing the institution. The President’s Cabinet gave approval to this work at its August 2018 meeting.
Faculty and staff continue to advance the eleven recommendations identified by the Ambrose Commission responding to the Truth and Reconciliation Commission. The primary emphasis has been on developing relationships with Indigenous elders and in raising cultural awareness. Considerable work has occurred in the Bachelor of Education program through networks of relationships and our engagement in provincial initiatives funded by the Ministry of Education. We continue to address the eleven recommendations which include curriculum design and revision. The Teaching and Learning Committee, as well as individual departments and faculties, are engaged in further work to move these recommendations forward.
At the end of the 2017-2018 academic year there were vacancies in two senior administrative positions: the Vice President of Student Development and the Vice President Advancement with responsibility for Development (fundraising), Enrolment, Communications and Marketing, and Public Relations. Interim arrangements were made to ensure responsibilities related to both positions were fulfilled.
The financial forecasts for Ambrose present a challenge. We continue to experience very significant financial stress. Institutional management is developing a multi-year strategy to address the ongoing financial concerns that are forecasted to continue their downward trend in 2018-2019. We continue to seek a resolution of our funding formula with the Ministry. This is imperative if Ambrose University is going to continue to be a strong contributor to Campus Alberta.
We value our inclusion in Campus Alberta and support the government’s commitment to providing Albertans options for post-secondary education. Approximately 90% of our student body is from Alberta and we are pleased to provide additional access and capacity for the province. This was a challenging academic year for the institution, however, across the institution there were clear signals of growth and ongoing commitment to the institutional mission. The success and satisfaction of our students are affirmations and encouragements to us. 4. Public Interest Disclosure (Whistleblower Protection) Act As a private, independent Academic Institution, Ambrose University is not subject to this legislation.
3 5. Operational Overview No significant operating changes were made during this reporting period.
Alberta’s economic environment began to turn around in 2017-2018 following a deep and long recession. However, rising energy prices and a lower Canadian dollar drove up consumer prices. Rising costs and increasing interest rates slowed consumer spending (Economic Spotlight: A year in Review, Alberta Treasury Board and Finance, March 2018). The increased weight on household spending may have affected student decisions to enroll in a private university. After a spike in Arts and Science enrolment in 2016 (620 heads), enrolment was down to 558 in 2017. The overall undergraduate enrolment numbers were bolstered by an additional 70 students in the Education program. The decrease in Arts and Science enrolments may be related in part to our tuition rates and the economic environment, but may also be related to increasing enrolment capacities in other post-secondary institutions in Alberta.
The proposal for a Bachelor of Arts with a major in Psychology program (Part A) was submitted to the Ministry in December 2017 and Part B was submitted to Campus Alberta Quality Council 27 June 2018. The anticipated date for admission to the program is Fall 2020, however, program approval, resource capacity and ability to secure qualified faculty will influence when the program will be offered. No other new programs were introduced during this period.
The decision to conclude e-Campus Alberta had a direct impact on Ambrose’s decision related to e- learning initiatives. Courses developed with support from the former Access to the Future grant will continue but no new e-learning designed courses were added.
Ambrose has directed energy specifically towards teaching excellence since 2014. In the Fall of 2017, the Teaching and Learning Committee launched a two-year induction program designed to ensure new faculty are successful in their transition into the role of a professor at Ambrose. At the end of the first year of implementation an assessment of outcomes directed further changes for the second year of the program. A mentoring program for junior tenure-stream faculty continues and works together with the New Faculty Exchange program to provide a platform for junior faculty to achieve personal and professional excellence in the development of their teaching career. The long-term goal is to also increase retention of new faculty. This increased capacity in teaching and learning is being seen in measurable ways in the National Survey of Student Engagement (NSSE) results. Overall, satisfaction with an Ambrose education is very high.
Ambrose continues to work with Alberta Health Services and other post-secondary partners to design a Chaplaincy program to meet provincial needs that resulted from previous changes in education opportunities in this area. An Association of Theological Schools grant supported a feasibility study which was completed in 2017. The study’s recommendations focused primarily on program design with the purpose of clarifying the relationship of seminaries which deliver the didactic component and the service partners that provide the practicum components. The recommendations also extended to the types of courses necessary for the program. Ambrose has developed and implemented two courses in alignment with the recommendations. This is a unique way in which Ambrose can increase access to education within Campus Alberta.
4 Scholarship and research at Ambrose builds on our base as a teaching-focused institution, which values and prioritizes high quality research that supports student learning and benefits external stakeholders and partners. Our commitment to developing competent and well-trained student researchers (mainly undergraduate) positions us in the post-secondary landscape to benefit a strong Alberta economy moving forward. The various research activities at Ambrose – notably among our three research institutes – help with locating us as an important contributor to data collection on pressing concerns of contemporary life in Alberta (e.g., inequality). This past academic year, we completed 54 distinct pieces of scholarship – a major success for a small university. Our research activity also broadens the networking capacity between researchers, policy makers and frontline workers, plus knowledge dissemination, to support healthy Albertans and communities. And, in all of this, Ambrose offers its faculty a supportive infrastructure to pursue these research priorities.
The financial forecasts for Ambrose present a challenge. Institutional management is developing a multi- year strategy to address the ongoing financial concerns that are forecasted to continue their downward trend in 2018-2019.
A second internal Ambrose Graduate Outcomes Survey that was conducted in December 2017 indicated that graduates from 2016 were experiencing similar rates of employment upon graduation as graduates from other sectors of Campus Alberta. The most recent Alberta Graduate Outcomes survey data reports on graduates from the 2013-14 academic year, which was prior to the economic downturn. The design of the Ambrose survey was aligned with the Alberta Graduate Outcomes Survey to facilitate data comparisons. Ambrose Arts and Science program graduates (n = 108) from the spring of 2016 were surveyed 18 months post-graduation (63% response rate). The following chart summarizes the two years of Ambrose results with a comparison to other sectors using the Alberta Graduate Outcomes Survey 2013-14 data. The data supports the claim that Ambrose graduates contribute to the economic, scientific, education and artistic communities and fabric of Alberta.
Ambrose Ambrose Independents CARI BASI 2016 2015 Employment Rate (%) 93 93 93 93 93 Relatedness of Job to 80 82 75 82 81 Education (%) Job Satisfaction (%) 90 88 88 88 88
A closer look at the experience of Ambrose Arts and Science graduates revealed the following results:
Employment Rate (%) Relatedness of Job to Job Satisfaction (%) Education (%) 2016 2015 2016 2015 2016 2015 Behavioral Science 100 100 100 83 86 83 Business 100 100 75 86 100 100 Education 100 100 100 100 100 95 Arts 94 100 50 55 100 64 Science 88 100 40 33 60 100 Music 100 80 75 75 100 100
5 6. Goals, Priority Initiatives, Expected Outcomes and Performance Measures
Accessibility Goal 1: e-Learning Strategy Revised Expected Progress Made in Last Expected Type Description Completion Status 12 Months Completion Date Date G 1 The e-Learning Removed Strategy will provide from top enhanced learning institutional opportunities and priorities improved access to for 2018-19 Ambrose programs Priority Initiatives PI Development of 2-3 2017-18 Completed 2 hybrid seminary 1.1 new hybrid courses courses offered; 8 hybrid undergraduate courses PI Development of 6-8 2017-18 Completed 6 seminary courses 1.2 new online courses offered online; 3 undergraduate courses offered online PI Development of a 2017-18 Completed 3 classrooms equipped 1.3 multi-modality with multi-media classroom to technology to increase support eLearning access to hybrid initiatives courses Expected Outcomes EO 1 Wider access to Winter Students already Ambrose courses 2018 registered at Ambrose access hybrid and online courses to increase flexibility in their schedules Performance Measures PM 1 20 new students Winter No significant enrolled in online 2018 increases in new classes enrolments directly related to new technology or delivery format
6 Progress 2017-18 towards Goal 1 Implementation of the eLearning Strategy developed in 2015-16 was negatively affected by elimination of the e-Campus Alberta platform. The expectation while the strategy was in development was that Ambrose could provide access to courses not available from other institutions in this format. Under these new circumstances the online and hybrid courses offered at the undergraduate level only enrolled students already at Ambrose.
Given that the technology did not contribute to new enrolments, the e-strategy was removed from the list of top institutional priorities for 2018-19. Faculty will continue to develop hybrid courses where they make sense and can provide students greater access but there is no longer an expectation to actively grow this area. There is a difference between undergraduate and seminary student experiences and expectations with e-learning technologies that we will be attentive to over the next few years. We will monitor data about accessibility related to e-learning during the next 5 year period and determine if we need to elevate this priority again.
Goal 2: Response to Truth and Reconciliation Commission Revised Expected Progress Made in Last 12 Expected Type Description Completion Status Months Completion Date Date G 2 A President’s Spring 2017 Completed President’s appointed Commission will Commission delivered develop a plan for report to Board and responding in Ambrose community appropriate ways to the TRC’s Calls to Action Priority Initiatives PI 2.1 Decolonizing the Ongoing Held Professional Ongoing Campus Development event for faculty and administration led by Indigenous leader to raise cultural awareness PI 2.2 Curriculum that 2017-20 Ongoing See notes below for Ongoing builds Reconciliation Education
7 Goal 2: Response to Truth and Reconciliation Commission Revised Expected Progress Made in Last 12 Expected Type Description Completion Status Months Completion Date Date PI 2.3 Mutually beneficial 2017-20 Ongoing Faculty members Ongoing Relationships (with engaged in formal events Treaty 7 Peoples) to build relationships: - Calgary Alliance for the Common Good (with city council/Mayor) - 6 Community Reconciliation Dinners with Artists and Elders - Conducted workshops at Christian and Missionary Alliance conference Expected Outcomes EO 2 An indigenization 2017-20 Ongoing Implementation will be a process for Ambrose focus for years into the will be continue to future as we work to unfold through learn to live new and 2017-20 healthy relationships Performance Measures PM 2.1 Adoption of UN Fall 2017 Ongoing GFC created standing Ongoing Declaration and sub-committee to Recognition of address report from Territory statement President’s Commission and repudiation of Doctrine of Discovery PM 2.2 Identification of key Spring 2018 Ongoing Some progress in Spring 2021 learning outcomes in Education but requires collaboration with relationships with Elder Aboriginal advisors advisors to be build first PM 2.3 FNMI Advisory Spring 2018 Ongoing Elders identified for Spring 2020 Council in place Education degree, still building relationships with Elders before appointing a Council Progress 2017-18 towards Goal 2 The faculty in Education continued looking at indigeneity in the program and facilitated several events and activities to build understandings of the historical significance of residential schooling, Indigenous ways of knowing and pedagogy. This could not have happened without the guidance of Simon Ross, consultant, Randy Bottle, Elder Pablo Russell, Medicine Man, and Cowboy Smith X (filmmaker), Walter MacDonald White Bear (artist), Samantha Whelan (musician) and Chester Lees (artist). The faculty participated in an Indigenous Awareness Training with Simon in August 2017. This was followed by an Arts Program Day focused on the work of Alex Janvier. Students and faculty participated in The Blanket
8 Exercise. Several book studies in indigeneity, decolonization and land-based education were held and facilitated by the authors and faculty members. Students and faculty went to the Blackfoot exhibit at the Glenbow as well as attended a sponsored film night, Elder in the Making. The result of this work was clearly evident in the students’ Living Exhibition Portfolios presented in late April in which every student addressed their growing understanding and learning in this area.
Goal 3: Supports to Vulnerable Learners Revised Expected Progress Made in Last 12 Expected Type Description Completion Status Months Completion Date Date G 3 Accessibility and Ongoing Ongoing Continue to support Ongoing Support Services will Inclusion Alberta provide enhanced students support for student success 92 students registered with Accessibility and Support Services Priority Initiatives PI 3.1 Accessibility and Ongoing Ongoing Accessibility and Support Ongoing Support Services will Services staff in ensure that discussions with faculty implementation of regarding universal design for implementation of learning provides universal design supports for students principles that do not have documented learning disabilities PI 3.2 All students with Ongoing Ongoing Implementation of documented Ambrose Aware disabilities will supported the recording receive appropriate and tracking of student accommodations and needs supports Exam accommodations continue as the most frequently requested support
The demands exceed the physical space available
9 Goal 3: Supports to Vulnerable Learners Revised Expected Progress Made in Last 12 Expected Type Description Completion Status Months Completion Date Date Expected Outcome EO 3 Increased student Ongoing Freshman reported a use of support drop in the “Supportive services as indicated Environment”, however, by NSSE results a marginal increase was seen by senior students
Both measures require attention to reach target Performance Measures PM 3.1 Use NSSE survey 2018 Survey Ongoing See chart below question 14b and “Supportive Environment” measure for first year and senior students PM 3.2 Use NSSE survey 2018 Survey Ongoing See chart below question 14c for first year and senior students
Performance Measure: NSSE Results NSSE – Supportive Canada Environment 2015 2016 2017 2018 Goal 2018 First year 38.8 34.6 35.0 31.8 35.0 30.6 Senior 31.6 32.8 31.1 31.5 33.0 27.0
Providing support to help students succeed Canada academically (NSSE 14b) 2015 2016 2017 2018 Goal 2018 First year 3.07 3.19 3.16 3.04 3.3 2.83 Senior 3.08 3.23 3.04 3.06 3.2 2.62
Using learning support services (tutoring services, writing center, etc.) Canada (NSSE 14c) 2015 2016 2017 2018 Goal 2018 First year 2.89 2.82 2.89 2.96 3.0 2.74 Senior 2.46 2.67 2.58 2.66 2.8 2.47
10 Goal 4: Mental Health Initiative Revised Expected Progress Made in Last 12 Expected Type Description Completion Status Months Completion Date Date G 4 Enhance mental Ongoing Ongoing Hired a wellness Ongoing well-being for all coordinator and increased Ambrose students number of wellness related workshops
Increased training for student leaders to respond to mental health concerns
Increased counselling hours Priority Initiatives PI 4.1 Develop an Summer Completed Survey of students Ambrose specific 2018 completed and mental health recommendations strategy in identified alignment with the Alberta Post- Secondary Mental Health and Addiction Framework PI 4.2 Analyze, report and Fall 2017 In Initial recommendations Ongoing develop progress are being prioritized and with NCHA recommendations resources identified data on data collected from the recent Data was used to inform student wellness the mental health strategy survey as well as to inform design and implementation of wellness workshops and program delivery (i.e., Residence Program)
Coordination of the NCHA survey for January 2019 is underway Expected Outcomes EO 4 Enhanced levels of Ongoing In Ongoing psychological progress thriving for Ambrose students
11 Goal 4: Mental Health Initiative Revised Expected Progress Made in Last 12 Expected Type Description Completion Status Months Completion Date Date Performance Measures PM 4 Increased levels of Ongoing Ongoing The first survey was Ongoing emotional thriving reported in Fall 2017 and using the Thriving was repeated in Fall 2018 Quotient survey We have not yet established a clear baseline
Goal 5: Program Expansion Revised Expected Progress Made in Last 12 Expected Type Description Completion Status Months Completion Date Date G 5 Program expansion Ongoing Focus is on increasing enrolments in existing programs, rather than adding programs for 2018-19 Priority Initiatives PI Expansion to a Fall 2017 Completed Second cohort of BEd 5.1 second cohort in students admitted in Fall the Bachelor of 2017 & 2018 Education (After Degree) providing 40 places in the first year of this two-year program
PI Social science Psychology Ongoing Bachelor of Arts with a major 2020 5.2 offerings will be 2018 in Psychology program Part A expanded by submitted to Ministry in offering a major in December 2017 and Part B Psychology submitted to CAQC June 27, beginning the Fall 2018 of 2018 and exploring the Sociology submission on hold feasibility of a until more stable finances major in Sociology in the Fall of 2019
12 Goal 5: Program Expansion Revised Expected Progress Made in Last 12 Expected Type Description Completion Status Months Completion Date Date PI Begin working on a Work on On hold This proposal has been 5.3 program proposal proposal lowered in the list of priorities for a Bachelor of begins Fall Science major in 2017 Will consider its potential Kinesiology during the cyclical program review process PI The Master of Arts Fall 2017 Completed See Goal 10 in this report for 5.4 in Leadership and progress in Chaplaincy Ministry will offer certificates in Certificates in poverty poverty studies, studies, preaching and church chaplaincy, effectiveness were preaching and incorporated into degree in church 2016 effectiveness that ladder into the MALM Expected Outcomes EO 5 Program expansion 2019 Ongoing 2019 will provide new opportunities for learners in education, social science, natural science, and Christian ministry Performance Measures PM 40 Students in first Fall 2017 Met Two cohorts of first year 5.1 year cohort students admitted in 2017 and 2018 PM 39 Psychology Fall 2018 In Awaiting approval of degree Fall 2020 5.2 Major students progress PM Completion of Fall 2018 On hold The cyclical review process Fall 2019 5.3 program proposal will confirm the priority of in Kinesiology this proposal PM 5 new enrolments Fall 2017 Met Target met in preaching and 5.4 in Seminary church effectiveness, but certificate continue to monitor poverty programs studies and chaplaincy programs
13 Affordability Goal 6: Financial Assistance Revised Expected Progress Made in Last 12 Expected Type Description Completion Status Months Completion Date Date G 6 Remove financial Ongoing This is an ongoing discussion barriers to assist at the President’s Cabinet students in pursuing level as we balance financial an Ambrose barriers for student and education overall institutional financial status Priority Initiatives PI Use data from the 2018-19 In Progress Based on this research, Ongoing 6.1 Ruffalo Noel-Levitz tuition rates could continue Price Sensitivity at current rate of inflation, Research to develop however, developing new a strategic approach financial assistance is a to tuition costs to priority inform tuition rates and a needs-based Matching students with student aid needs-based funding is under program development
Targeting students receiving bursary money prior to enrolment assists in removing financial barriers PI Increase the profile 2017-18 Ongoing Partnered with student Ongoing 6.2 of the Financial Aid councils to provide office to assist awareness to student body students in on services available receiving the financial support Increase in student they are eligible for appointments, increase in from institutional, Student Aid Alberta funding provincial and accessed by Ambrose federal sources students
FA Office completed Student Aid Alberta training sessions (SA 101, SA 104,SA 106, SA 201) to provide ongoing and accurate information to students; increase of 242% of financial assistance applications (33 to 113)
14 Goal 6: Financial Assistance Revised Expected Progress Made in Last 12 Expected Type Description Completion Status Months Completion Date Date PI Provide good 2017-18 Ongoing FA office trained in Ongoing 6.3 counsel on financial Momentum financial wellness and all literacy; providing workshops available financial and sessions in each assistance semester including Ambrose 101; Personal Finance workshops; Ambrose Scholarships & Bursaries Expected Outcomes EO 6 A strategic Ongoing This item is on agendas of approach to Faculty and President affordability that councils addresses concerns that cost may be a barrier to Ambrose fulfilling its mission Performance Measures PM Increase the 2018-19 Ongoing Increased from $1200 to Ongoing 6.1 average award per $1300/student in 2017-18 undergraduate year student PM 30% of the student 2017-18 Ongoing Increased from 20% to 25% 2019 6.2 body have a of student body in 2017-18 consultation with year the Financial Aid Coordinator PM Student loan Ongoing Ongoing Canada Student Loans for 2019 6.3 repayment above Ambrose 2017: 93 80% borrowers; 289 disbursements; repayment rate of 92.4%; total loan $ value of $1,056,046 (Our repayment rate is very high in comparison to other post- secondary institutions.)
15 Quality Goal 7: Teaching Excellence Revised Expected Progress Made in Last 12 Expected Type Description Completion Status Months Completion Date Date G 7 Excellence in Ongoing Teaching and Student Achievement Priority Initiatives PI The Teaching and Completed Teaching Quality Standards 7.1 Learning Committee were approved by GFC will develop teaching quality Faculty accomplishments standards to assist reported against standards faculty as they move toward developing Professional development innovation and activities offered excellence in twice/month teaching Focus group held after first year resulting in revisions to program for upcoming year PI Encourage students Ongoing Continuing to embed in 7.2 to participate in a program expectations least two High Impact Practices Expected Outcomes EO 7 Ambrose will be Ongoing Ongoing Indicators that this is being known for achieved, see metrics below excellence in teaching and student achievement Performance Measures PM NSSE Engagement Ongoing The first two scores are 2019 7.1 Indicators: Higher- down from last year and the Order Learning, third slightly higher than last Reflective and year Integrative Learning, Effective Teaching We are aiming for Practices & 2 overall improvement, see chart indicators of quality below PM NSSE – Participation Ongoing This is up from last year, but 2019 7.2 in at least 2 HIPs still aiming for improvement, see chart below
16 The following performance measures from the relevant NSSE Engagement Indicators suggest that teaching excellence is being achieved as Ambrose continues to perform above the national mean.
Performance Measure: NSSE Results Canada 2015 2016 2017 2018 Goal NSSE – Higher-Order 2018 Learning (Senior) 42.3 40.1 41.0 39.3 43.0 36.9
Canada 2015 2016 2017 2018 Goal NSSE – Reflective & 2018 Integrative Learning (Senior) 41.4 40.4 40.7 37.2 41.0 36.1
Canada 2015 2016 2017 2018 Goal NSSE – Effective Teaching 2018 Practices (Senior) 40.2 44.1 40.2 40.5 41.0 34.9
Canada 2015 2016 2017 2018 Goal NSSE – Participation in at 2018 least 2 HIPs (Senior) 75% 82% 71% 72% 80% 52%
Overall Measures of Quality Canada NSSE – Evaluate your entire 2015 2016 2017 2018 Goal educational experience 2018 (Senior) 90% 93% 97% 96% 90% 79%
Canada 2015 2016 2017 2018 Goal NSSE – Same Institution 2018 Again (Senior) 89% 89% 95% 88% 90% 80%
17 Goal 8: Assessment of Residence Program Revised Expected Progress Made in Last 12 Expected Type Description Completion Status Months Completion Date Date G 8 Residence Life will Ongoing Ongoing Implemented outcomes Ongoing provide enhanced and programming priorities opportunities for all for Residence Life residence student to thrive: spiritually, Revised the job description academically, of the Associate Chaplain in psychologically and Residence to include socially greater supervisory responsibility
Increased the mental health training for Residence staff
Increased social opportunities to increase involvement and sense of belonging
Made significant changes to the residence policy to allow for more opportunity for students to exercise Responsible Freedom Priority Initiatives PI 8.1 Conduct a Fall 2017 Ongoing Exploring options for February comprehensive changing residence 2019 program review of requirement for incoming residence life students
Held two focus groups in 2017-2018 (new students and returning students)
Currently, assessing fees and barriers and student outcomes using survey (December & March)
Analyzing data residence trends (5 years)
18 Goal 8: Assessment of Residence Program Revised Expected Progress Made in Last 12 Expected Type Description Completion Status Months Completion Date Date PI 8.2 Revise qualifications Fall 2017 Complete Inclusion of this Complete for Residence requirement has made a Director will include significant difference in the MA in Higher quality of the residence life Education or Student program PI 8.3 Articulation of Fall 2018 Ongoing Implemented outcomes Ongoing student learning and programming priorities outcomes and for Residence Life, assessment in including: Identity and residence life Spiritual Formation, Community Responsibility, Academic Faithfulness, Personal Growth and Development, and Healthy Relationships
Will assess these outcomes starting in December Expected Outcomes EO 8 Growth in number of Fall Residence numbers have 2019 residence students 2017–19 been declining since Fall 2015, see table below
Performance Measures PM 8 Increase in student Fall On The first survey was Winter thriving scores over 3 2018-19 Progress reported in Fall 2017 and 2020 years using the was repeated in Fall 2018 Thriving Quotient We have not yet established a clear baseline
Performance Measure: Residence Census Fall 2014 Fall 2015 Fall 2016 Fall 2017 Fall 2018 Residence Numbers 172 185 178 170 148
19 Goal 9: Student-Faculty Interaction Revised Expected Progress Made in Last Expected Type Description Completion Status 12 Months Completion Date Date G 9 Create opportunities for Ongoing Ongoing Ongoing Student-Faculty interaction Priority Initiatives PI 9.1 Create a culture that Ongoing Ongoing Once a year, a full day Ongoing encourages faculty for program level interaction with students interaction among on academic, career and faculty and students wider issues outside of class
Both semesters have designated academic advising weeks PI 9.2 The Ambrose Research March Ongoing See note below Ongoing Conference and various 2018 program initiatives will continue to encourage research projects that include students Expected Outcomes EO 9 Ambrose will continue to Ongoing Ongoing The high level of Ongoing be recognized for high student faculty quality student-faculty interaction continues interactions as a key to be one of the valued-added element of strengths of Ambrose the Ambrose experience Performance Measures PM NSSE Engagement 2018 In This measure Ongoing 9.1 Indicator – Student-Faculty Progress decreased, monitoring Interaction for needed changes to achieve goal
See chart below PM NSSE Research with a 2018 In See chart below Ongoing 9.2 Faculty Member Progress
20 Performance Measure: NSSE Results Canada 2015 2016 2017 2018 Goal NSSE – Student-Faculty 2018 Interaction (Senior) 27.2 24.3 25.3 23.3 28.0 18.2
Canada 2015 2016 2017 2018 Goal NSSE – Research with Faculty 2018 (Senior) 38 32 27 28 28.0 22
As faculty develop their research agendas and activities, they are able to bring students into their scholarship. As revealed in the National Survey of Student Engagements (NSSE) results of 2018, Ambrose students have more opportunities to participate in research with faculty than our comparator groups.
In addition to original student research that takes place across many courses, Ambrose’s primary outlet for student research is the annual Ambrose Research Conference (ARC). ARC 2018, with the theme “The World after Tomorrow,” included 20 sessions spread over one day, including over 40 oral presentations and 20 poster presentations across an array of academic programs (Biology, Business, Chemistry, Christian Studies, Education, English, History, Music, Psychology, Science, Sociology and Theology). Students presented original research on a range of pressing issues to our economy and to supporting a healthy and vibrant society. These topics included crime and deviance, poverty, social inequality, medicine, environment, gender, fine arts, literature, immigration, organizational health, education, entrepreneurs and international supply chains and human rights. The culmination of student research presented at ARC continues to be instrumental for ongoing success among students across disciplines. They carry their research into graduate school and the workforce, from the research lab to the business world, to journalism, to law, to performing arts and more.
21 Coordination Goal 10: Chaplaincy Education Revised Expected Progress Made in Last 12 Expected Type Description Completion Status Months Completion Date Date G 10 To provide a program 2020 Ongoing Feasibility study was conducted 2020 to develop spiritual during the academic year and care professionals in completed in August 2018 collaboration with other Alberta The community of Alberta seminaries and theological colleges approved Alberta Health the recommendations in Services August 2018
Continue to use grant to facilitate development of curriculum proposals based on the study
Continued consultation with the seminaries as well as AHS and other chaplaincy advocacy organizations Priority Initiatives PI Continue to provide Ongoing Ongoing Ambrose continues to provide 10.1 registration services this service for students for CPE practicums in AHS and to provide financial processing for spiritual care education at AHS facilities PI Assess delivery of April 2017 Completed Report and recommendations 10.2 basic module of provided to organization course-based spiritual committee care training PI Develop advanced 2017-18 Ongoing Offered one course of the 10.3 modules of course- didactic component of based spiritual care chaplaincy education at training Ambrose, will offer biennially
Beginning May 2019 will offer a prison chaplaincy course in collaboration with Bridges
22 Goal 10: Chaplaincy Education Revised Expected Progress Made in Last 12 Expected Type Description Completion Status Months Completion Date Date Expected Outcomes EO Open new Ongoing Need to explore marketing, 2020 10 opportunities for visibility is increasing as more chaplaincy training for inquiries were received various vocational settings Performance Measures PM 10-12 students in 2017-18 Ongoing Refining means of tracking 10 course-based spiritual students and end goal targets care training (in MA Leadership and Ministry or MDiv programs)
Goal 11: Canadian Poverty Institute Revised Expected Progress Made in Last 12 Expected Type Description Completion Status Months Completion Date Date G 11 To facilitate the Ongoing Ongoing See notes below mobilization of knowledge about poverty among policy- makers, practitioners and academics Priority Initiatives PI In partnership with the 2017 In Awaiting the launch of the 2018 11.1 Canadian Observatory Progress redesigned Homeless Hub on Homelessness at York University, The Homeless Hub launch is establish a national now tentatively expected in Poverty Hub as an Q4 2018 and the Poverty Hub online repository of would launch simultaneously relevant research regarding the causes, impacts and solutions to poverty
23 Goal 11: Canadian Poverty Institute Revised Expected Progress Made in Last 12 Expected Type Description Completion Status Months Completion Date Date PI In partnership with a Beginning In Completed research project 2020 11.2 coalition of key justice in 2018 Progress on strategies for increasing service organizations coordination of justice sector in Calgary, conduct services to enhance access to research into barriers justice to accessing justice services by low- income individuals. Funded by the Law Foundation of Ontario Expected Outcomes EO Improved Ongoing Ongoing See notes below 11.1 collaboration among professionals, researchers and practitioners in the field of poverty reduction EO Implementation of 2019 In Report well received, led to 2020 11.2 recommendations to Progress request from Alberta Justice enhance service for a brief on the justice coordination and referral system integration within the justice sector in Alberta result in increased access to justice services for low-income individuals Performance Measures PM Number of resources 2017-18 In 2018 11.1 accessed / Progress downloaded from the Poverty Hub PM Recommendations for 2019 In Engaged in conversations 2020 11.2 service reform are Progress about implementation of adopted and recommendations implemented by partner justice service organizations
24 Progress 2017-18 towards Goal 11 The Canadian Poverty Institute (http://www.povertyinstitute.ca/) – an interdisciplinary initiative with business administration, history, sociology, psychology and theology – is working on several projects. These include: (a) 1000 voices, aimed at providing programs, services, supports, meeting space and office support for community initiatives; (b) a multidimensional definition of child poverty in Canada that accounts for factors such as material, economic, social/cultural, psychological, spiritual and moral needs; (c) an energy roundtable, which is a collaboration between government, energy providers and non-profit organizations to reduce energy poverty and develop policy and strategy recommendations for government and industry; (d) the justice sector and vulnerable Albertans project, examining the justice sector service system in Alberta to identify barriers to service coordination and integration and develop recommendations for more effective service integration; and (e) the neighborhood change project, examining the relationship between income inequality, average neighborhood income and isolation/inclusion and participation in community-based organizations.
Goal 12: Dual Credit Pilot Project Revised Expected Progress Made in Last 12 Expected Type Description Completion Status Months Completion Date Date G 12 Collaboration with Ongoing The Business program has 2020 Palliser Regional partnered with Palliser to Schools to provide offer BUS 100 (Introduction dual credit for High to Business) beginning in School students taking 2019. This would create a Ambrose Religion – separate cohort for high Christian Studies school students, which is courses different than the religious studies courses. Priority Initiatives PI Continue dual credit 2017-18 In The agreement for religious 2019 12.1 agreement with Progress studies courses is still open, Palliser Regional but due to difficulty in Schools aligning high school and university schedules and semesters, there have not been many students registered in these courses. Expected Outcomes EO Open new See above 12 opportunities for high school studies to begin post-secondary studies
25 Goal 12: Dual Credit Pilot Project Revised Expected Progress Made in Last 12 Expected Type Description Completion Status Months Completion Date Date Performance Measures PM 3.4 students enrolled 2017-18 In Fall course in Business 2020 12 under the dual credit Progress cancelled, will be offered in agreement Winter 2019
Accountability Since this was not a goal on its own in the 2016-17 – 2018/19 CIP, we have referenced our accountability related activities as performance measures within the reporting of the other 5 key goals. Other accountability activities are part of the cyclical program review process and reporting to accreditation bodies. In total, there are five undergraduate degree programs engaged in the cyclical review process and one graduate program undertaking a regularly scheduled accreditation review.
Other Goals and priority initiatives related to student mental health are presented above in Goal 4.
Ambrose developed their stand-alone sexual violence prevention policy in 2017. A task force with student, faculty and staff members was implemented. There is ongoing training for faculty and staff to increase awareness and provide related training.
26 7. Financial and Budget Information
The table below provides a comparison of actual and budgeted operating results for Ambrose’s fiscal year ended April 30, 2018.
Year ended April 30, 2018 Actual Budget Variance favourable (unfavourable) Revenue Tuition and student fees $ 8,753,513 $ 8,783,100 $ (29,587) -0.3% Operating donations 3,041,259 3,389,905 (348,646) -10.3% Government funding 2,866,462 2,828,304 38,158 1.3% Sales, rent and ancillary services, net 1,096,400 964,906 131,494 13.6% Endowment and other 749,790 469,700 280,090 59.6% Total revenue 16,507,424 16,435,915 71,509 0.4%
Operating expenses Employee compensation and benefits 10,857,204 10,897,496 40,292 0.4% Operating supplies 2,489,070 2,308,750 (180,320) -7.8% Scholarships and bursaries 968,757 1,013,600 44,843 4.4% Facilities 690,089 824,857 134,768 16.3% Communications, advertising and events 693,863 673,270 (20,593) -3.1% Total operating expenses 15,698,983 15,717,973 18,990 0.1%
Surplus before financing expenses and non-cash items 808,441 717,942 90,499 12.6%
Financing expenses Interest 846,644 780,979 (65,665) -8.4% Annuity payments 319,640 367,771 48,131 13.1% Total financing expenses 1,166,284 1,148,750 (17,534) -1.5%
Deficit before non-cash items (357,843) (430,808) 72,965 16.9%
Non-cash revenue (expenses) Amortization of deferred capital contributions 567,359 550,000 17,359 3.2% Amortization expense (1,631,167) (1,650,000) 18,833 1.1% Gain on annuity contract maturities 611,500 - 611,500 100.0% Change in fair value of interest rate swap 1,515,184 - 1,515,184 100.0% 1,062,876 (1,100,000) 2,162,876 196.6%
Net surplus (deficit) $ 705,033 $ (1,530,808) $ 2,235,841 146.1%
27 Revenue
The share of revenue by source is as follows.
Share of revenue Endowment and Sales, rent and other 4.5% ancillary services, net 6.6%
Government funding 17.4%
Tuition and student fees 53.0%
Operating donations 18.4%
Total revenue for the year ended April 30, 2018 was slightly higher than budget. Variances to budget for 2017-18 include: • Tuition and student fees o Tuition rates were increased in 2017-18 as budgeted:
Increase Tuition rate per credit hour 2016-17 2017-18 17-18 vs. 16-17 Arts & Science and School of Ministry $ 350 $ 364 $ 14 4.0% Education 365 375 10 2.7% Seminary 395 400 5 1.3%
o 2017-18 net paid credit hours compared to budget are as follows:
Actual Budget Variance Favourable (Unfavourable) Arts & Science and School of Ministry 15,642 16,629 (987) -5.9% Education 2,082 1,779 303 17.1% Seminary 2,026 2,027 (1) -0.1% Total 19,750 20,435 (685) -3.4%
o The decline net paid credit hours resulted in a negative variance to budgeted revenue of $232,000. o Unbudgeted student travel fees result in a positive variance to budget. This revenue is directly offset by unbudgeted operating supplies expense.
28 • Operating donations o Operating donations were 10% below budget resulting in a negative variance to budgeted revenue of $350,000. • Government funding o Operating grant funding increased 2% as budgeted. Special purpose grant funding recognized for mental health and students with disabilities was slightly higher than budget. • Sales, rent and ancillary services, net o Sales, rent and ancillary services revenue, net of direct expenses was $131,000 or 14% higher than budget as a result of a 4% increase in rental income, and lower cost of operations of food services as a result of position vacancies and efficiency improvements. • Endowment and other o Higher than anticipated investment returns on endowment funds was realized in 2017-18. This endowment income primarily funds student scholarships and bursaries. o Unbudgeted research grant funding of $200,000 was recognized in 2017-18, largely offset by unbudgeted operating expenses.
Operating expenses
Operating expenses for 2017-18 by category are as follows:
Total operating expenses for 2017-18 were slightly (0.1%) below budget. Variances to budget include: • Unbudgeted but fully funded educational trip costs. • Employee compensation and benefits expenditures was positively impacted by several vacant positions, offset by unbudgeted expenditures related to research projects and additional government grant funding. • Facilities expenses were below budget as certain expenditures, while budgeted as operating expenses, were accounted for as capital expenditures instead.
29 Operating expenses by function are as follows. Actual Budget Variance to budget favourable (unfavourable) Academic $ 6,306,421 $ 6,263,016 $ (43,405) -0.7% Institutional support 2,210,875 2,168,980 (41,895) -1.9% Student services 2,522,941 2,390,394 (132,547) -5.5% Facilities 2,031,801 2,225,507 193,706 8.7% Academic support 778,794 919,880 141,086 15.3% Externally restricted – funded scholarships 548,341 300,000 (248,341) -82.8% Total operating expenses $ 14,399,173 $ 14,267,777 $ (131,396) -0.9%
Surplus (deficit) – before and after financing expenses Surplus for 2017-18 before financing expenses, was 13% above budget, a result of higher than budget revenue and slightly lower than budget operating expenses.
The deficit after financing expenses was 17% or $73,000 favourable to budget.
Non-cash revenue (expenses) Net non-cash revenue (expenses) was $1.1 million positive, compared to $1.1 million negative as budgeted.
The change in fair market value of interest rate swap of $1.5 million is an unbudgeted accounting gain and arises as a result of long-term market interest rates. Unless the interest rate swap agreement is settled prior to its maturity in 2028, the accumulated amount ($1.4 million at April 30, 2018) will reverse in future years and has no current or future cash flow impact on Ambrose.
The gain on annuity contract maturities results from the deaths of annuitants and has no impact on cash flows except for reduced future annuity payments.
Net surplus (deficit) and cash flows Given the impact of the non-cash revenue and expenses noted above, the net surplus for the year is not meaningful in assessing overall financial results for 2017-18. A more relevant measure is the deficit before these non-cash items. While this amount was somewhat better than budgeted, the fact that it is a deficit is a sign of the significant financial challenges faced by Ambrose. This deficit is before both capital expenditures and debt principal repayment resulting in a significant cash flow deficit for 2017-18. Ambrose’s net cash position declined by almost $1.2 million in 2017-18, and sufficient cash was not in place at the start of the 2018-19 fiscal year to sustain operations over the near term.
Going concern risk Ambrose’s audited financial statements for the year ended April 30, 2018 are included as an Appendix and these statements include disclosure of risks associated with Ambrose’s ability to continue as a going concern. This is explained in note 2 to the financial statements.
As noted in the 2018 Comprehensive Institutional Plan, Ambrose is anticipating deficits, from both an accounting and cash flow perspective for each of the years from 2018 through 2021. Ambrose’s ability to continue as a going concern during this period is dependent upon the support of its lender and Ambrose being able to obtain additional borrowing until proceeds are realized from the sale of land.
30 8. Enrolment Plan and Program Changes
Fall enrolments by program (FLE) ACTUAL PROJECTED 2015 2016 2017 2017
ARTS AND SCIENCE
HUMANITIES CHRISTIAN STUDIES 10.6 12.6 10.5 13 ENGLISH LITERATURE 27.2 24.0 23.4 25 GENERAL STUDIES 40.8 35.5 23.6 36 HISTORY 22.3 29.2 22.9 30 HUMANITIES TOTAL 100.9 101.3 80.4 104
BEHAVIOURAL SCIENCE 112 122.2 133.3 130
BIOLOGY 88.6 96.7 117.4 105
MUSIC 35.8 35.6 28.9 36
BUSINESS 67.6 74.1 74.7 78
DIPLOMA IN ACTING 2.7 11.5 5.73 16
UNIVERSITY STUDIES 0.8 1.6 2.4 2
UNCLASSIFIED 10.8 5.2 7.2 7
TOTAL ARTS AND SCIENCE 419.2 448.2 450.0 478.0
EDUCATION 71.4 64.2 79.6 70
SCHOOL OF MINISTRY
BTH 12.2 4.9 4.1 3 FAMILY / CHILDREN 6.9 8.7 6.9 8 CHURCH 16.8 27.3 24.9 28 INTERCULTURAL 18.5 16.9 17.5 18 YOUTH 34.6 19.7 18.7 20 POST-PROFESSIONAL 1.6 0.9 0.4 2 AIM/ACCESS 0.8 2.0 2.3 0 TOTAL SCHOOL OF MINISTRY 91.4 80.4 74.8 79
31 Projected 2015 2016 Actual 2017 2017 AMBROSE SEMINARY
CERTIFICATES 0.6 0.2 1.6 1 DIPLOMAS 4.4 5.6 3.4 3 MA BIBLICAL & THEOLOGICAL 3.2 1.9 1.7 3 STUDIES M CHRISTIAN STUDIES 4.2 5.0 4.8 5 MA INTERCULTURAL MINISTRIES 3.8 2.8 3.2 3 MA INTERCULTURAL MINISTRIES - 0.2 0.4 0.4 1 ONLINE MA LEADERSHIP & MINISTRY 9.2 8.8 13.2 9 MA LEADERSHIP & MINISTRY - 2.4 2.0 2.8 3 ONLINE MASTER OF DIVINITY 19.4 23.6 22.8 23 OPEN STUDIES / VISITING 9.8 9.2 8.8 9 TOTAL AMBROSE SEMINARY 57.2 59.5 62.7 60
CHINESE SCHOOL OF THEOLOGY AT AMBROSE SEMINARY
DIPLOMAS 5.2 4.8 3.8 5 M CHRISTIAN STUDIES 4 5.6 4.0 5 MASTER OF DIVINITY 11.2 11.2 8.6 11 TOTAL CCSTAS 20.4 21.6 16.4 21
TOTAL SEMINARY PROGRAMS 77.6 81.1 79.1 81
TOTAL AMBROSE 659.6 673.9 683.5 708.0
Enrolment goals were set in the context of a steady upward trend that existed following our arrival at our new campus in 2008 (see Figure 1: Long-Term Enrolment Trend Analysis). Since the Fall of 2011, new student enrolment has been flat but an increase in returning students drove enrolment growth in new programs, particularly Education, Business, and Science. In 2016 and 2017, this pattern changed with both new and returning enrolment flat. In Fall 2018, there was a drop in both returning and new students. Enrolment goals going forward are being reassessed.
Of particular note, there was a decrease in student enrolment in the Humanities and Acting in the Fall of 2017. While admissions numbers were slightly down in the Humanities, retention was also down across the programs. There is no clear trend for increasing attrition, but retention between freshman and sophomore years is raising concern and being monitored closely. The Diploma in Acting had an unrealized admission target. In the Winter of 2018, there was an administrative reorganization of music and theatre into one department. A dance component was also added. The desired outcome is an optimization of resources such as marketing but more importantly the opportunity for students studying the arts to access all three areas during their program. This will in turn lead to better retention rates.
32
Long-Term Enrolment Trend Analysis 1000 900 800 700 600 500 400 300 200 100 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
New Students Returning Student Total Hdct
International Students Currently, international students (not including permanent residences) represent 5.1% (n = 32) of the undergraduate students and 6.25% (n = 9) of the seminary for a total of 4.79% (n = 41) of the total number of students at Ambrose. The projected international student enrolment for next year is flat at 4%. The following chart highlights undergraduate international student registration by program.
International Students: Fall Intake by program
Fall 2016 Fall 2017 Fall 2018 # % of Program # % of Program # % of Program Arts and Science* BHS 8 5.16% 12 7.27% 8 5.30% BIO 2 1.65% 4 2.94% 4 3.03% BUS 7 7.69% 8 8.99% 8 10.00% CST 0 0.00% 0 0.00% 1 5.00% EN 2 6.90% 2 7.41% 2 9.52% GST 2 4.44% 1 3.13% 2 6.25% HI 0 0.00% 1 3.70% 0 0.00% MUS 1 2.33% 1 2.94% 2 7.41% USD 0 0.00% 2 66.67% 0 0.00% TOTAL A&S 22 4.04% 31 5.84% 27 5.49%
33 Fall 2016 Fall 2017 Fall 2018 % of # # % of Program # % of Program Program School of Ministry BTH (old) 0 0.00% 1 14.29% 1 33.33% Children & Fam 1 8.33% 0 0.00% 0 0.00% Church 1 3.03% 1 2.86% 1 2.70% ICM 0 0.00% 1 4.55% 1 5.56% Youth 1 3.45% 1 3.85% 1 3.23% TOTAL School of 3 2.78% 4 3.85% 4 3.92% Ministry Open Studies 0 0 0 0 1 2.94% TOTAL UNDERGRAD 25 3.98% 35 5.57% 32 5.10%
SEMINARY Dipl CST 5 26.32% 4 21.05% 1 10.00% Dipl L&M 1 16.67% 0 0.00% 0 0.00% MABTS 1 20.00% 1 25.00% 1 50.00% MALM 2 8.33% 2 5.00% 0 0.00% MCS 3 10.71% 1 4.55% 0 0.00% MDIV 8 61.00% 10 19.23% 7 17.50% OPSTSEM 2 5.26% 1 2.63% 0 0.00% TOTAL SEMINARY 22 11.11% 19 10.00% 9 6.25%
OVERALL TOTAL 47 5.08% 54 5.86% 41 4.79%
The proposal for a Bachelor of Arts with a major in Psychology program (Part A) was submitted to the Ministry in December 2017 and Part B was submitted to CAQC 27 June 2018. The anticipated date for admission to the program is Fall 2020, however, program approval, resource capacity and ability to secure qualified faculty will influence when the program will be offered. No other new programs were introduced during this period.
34 9. Research, Applied Research and Scholarly Activities Ambrose University is in its formative years as an institution, particularly in the area of supporting and developing a robust research program. We have an emerging and growing array of research success among faculty and students, evident in both discovery and applied forms of research. The structures, which support, evaluate, protect and promote research and scholarly activity, are built upon the basis of the Ambrose Research Mandate, which affirms that, “research and scholarly activity complement the primary instructional role of faculty, enriching classroom teaching and creating a scholarly atmosphere on campus”. Moreover, it defines “our role as researchers whose scholarship contributes to our academic disciplines, our church constituencies, the public of Alberta and Canada and the international partners we serve”.
We are taking initial steps in describing our scholarship in relation to programs. For example, Arts faculty are producing creative scholarly work in classical music and in new storytelling forms. Science faculty are engaged in collaborative research projects that intentionally include undergraduate students in areas such as genetics, environmental chemistry and sustainability, and microbiology. Humanities faculty are conducting scholarly work in areas of Canadian Literature, public history, and the Roman imperial order, while also leading educational field study tours in England, Chile, Easter Island, Argentina, Brazil, Norway, Denmark and Sweden. Social Science faculty are engaged in a Social Sciences and Humanities Research Council (SSHRC) grant with colleagues from the University of Saskatchewan. A second SSHRC application is being developed in psychology. Business faculty hosted the fifth annual Soul of the Next Economy (Oct 2018), attracting 278 business investors, socially responsible business owners, entrepreneurs with domestic and international commitments, and students. One of their faculty members co-founded a peer-reviewed journal. Education faculty have strong connections with local First Nations communities to include relevant learning outcomes in the curriculum, they are also actively engaged in scholarly work related to curriculum development (scope and sequence).
Our current three strategic research priorities in connection with Ambrose University’s institutional goals and current provincial outcomes are to: strengthen the institutional infrastructure to support faculty research, provide high-level research and dissemination opportunities for students and support research that benefits external stakeholders and practitioners.
The discipline with the greatest unmet need in terms of research support is in the natural sciences. The nature of their research is resource intensive. To date, science faculty have relied on their professional development funds to purchase consumables and equipment. They also depend on being part of collaborative research teams across institutions through which they can access expensive scientific equipment. Ambrose is exploring the modification of the scholarship grant criteria which limit the researcher’s ability to apply the grant to the purchase of consumables and equipment.
In August 2018, the Ambrose Research Committee held our first Professional Development Day dedicated solely to scholarship. During that gathering, they completed a needs assessment which revealed the diverse needs of our scholars who represent junior to more senior researchers. This meeting also underscored the diversity of research interests among faculty. As we build research capacity, the need for developing individual faculty research agendas/programs is becoming apparent. The Research Committee is designing professional development activities to support faculty in developing these mid- and long-term scholarly activity plans. They are creating a prioritized list of necessary policies (e.g., responsible conduct of research) and are beginning to explore best practices to inform policy development.
35
In April 2018, we celebrated the scholarly activity of all faculty at Ambrose in an effort to promote and build our scholarly community. The event was named Scholars’ Corner and provided faculty opportunity to showcase their books and journal manuscripts that were produced over the past two years. Faculty members discussed their work with each other and shared their perceptions of the best and most difficult parts of the scholarship process. The most valuable part of the event was the comradery that was built among scholars who took time to talk with each other about their scholarly pursuits and challenges throughout all stages of the research process. Curiosity about each other’s work led to requests for this type of event to be held four times a year rather than only once a year.
The above reflections indicate the growing activity of a faculty adapting to the expectations, norms and standards of the research community. While identifying quantitative metrics are challenging at this point in our evolution, qualitative data provides evidence of growth since 2015 in terms of individual faculty activity and institutional support and infrastructure.
Under the guidance of the Vice President of Academic Affairs and the Ambrose Research Committee, Ambrose continues to work towards the following medium-range goals: • Explore the possibility of a Research Office, which would further the infrastructural supports for research among Ambrose faculty and students, and the three research institutes. • Develop training opportunities, particularly for tenure-track faculty, to strengthen their research productivity (e.g., sessions on funding, getting published or the research ethics process) • Build on the inaugural “Scholars’ Corner”, in April 2018, to publicly recognize scholarly achievements among Ambrose faculty
10. Community Outreach and Underrepresented Learners Ambrose is uniquely positioned to support our economy and healthy Albertans in all of our communities with three research institutes: Canadian Poverty Institute, Jaffray Institute for Global Initiatives and Flourishing Congregations Institute. These institutes are dedicated to research that simultaneously contributes to current academic discussions, provides students with first-hand research training and directly benefits external stakeholders and practitioners. All three Institutes attract notable funding dollars from various partners (e.g., Social Sciences and Humanities Research Council, Stronger Philanthropy and Cardus) to strengthen our capacity to do excellent research and share our research in ways that benefit the organizations/industries and communities that our research intersects with.
Together these institutes leverage existing and new partnerships with various external stakeholders (e.g., these institutes have nearly forty financial, educational, research and front line agency partners), enhance our focus on applied research training and excellence, meaningfully contribute to significant provincial, national and global conversations about “real world” contemporary challenges and opportunities, and help to make positive social contributions by linking research findings to policy and practitioner domains (e.g. directors of these institutes are regularly invited to present research findings with policy makers in their respective domains).
Beyond these institutes, other areas of research bridge Ambrose with external stakeholders and practitioners. For instance, faculty in our History program are progressing on two projects – one on memory in High River’s built environment (following the 2013 flood in southern Alberta) and another on the lives of German refugees in the aftermath of WWII. Our Business program hosts an annual conference, “Soul of the Next Economy,” where non-profit sector, government, business and
36 educational institutions converge to learn, connect and engage around innovation, collaboration and corporate social responsibility. Several of our students (e.g., Behavioural Science, Education and School of Ministry) also complete practicum-based research that involves volunteering, data collection and knowledge dissemination with over 100 partnering agencies in Calgary, and many more across Canada and around the world.
Our partnership with the Palliser Regional School District that promotes learning pathways for high school students is described above in Goal 12. Our initiatives related to supporting learners with disabilities are reported in Goal 3 above.
Ambrose seeks to connect with and contribute to our community through research and supportive learning initiatives, as well as through the Arts (music and theatre performances are open to the community), public academic lectures and through competitive sport (specifically basketball, volleyball and soccer).
11. Internationalization During this reporting period, Ambrose did not have off-shore or cross border initiatives that involve delivery of Alberta credentials or collaborative projects with non-Alberta based institutions.
12. Capital Plan Ambrose has not commenced any capital projects during the 2017-18 year. Capital expenditures in the year ended April 30, 2018 totaled $0.3 million and comprised campus renovation and refurbishment costs, as well as minor information technology and library purchases.
13. Information Technology Ambrose has not commenced any significant information technology projects during the 2017-18 year. However, small scale improvements were made to campus networking and security, and routine replacement of hardware, including classroom technology was undertaken.
37 Appendix A: Audited Financial Statement
38 Financial Statements April 30, 2018
KPMG LLP 205 5th Avenue SW Suite 3100 Calgary AB T2P 4B9 Telephone (403) 691-8000 Fax (403) 691-8008 www.kpmg.ca
Independent Auditors' Report
To the Board of Governors of Ambrose University We have audited the accompanying financial statements of Ambrose University, which comprise the statement of financial position as at April 30, 2018, the statements of operations, changes in net assets and cash flows for the year then ended, and notes, comprising a summary of significant accounting policies and other explanatory information.
Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with Canadian accounting standards for not-for-profit organizations, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
Auditors' Responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with Canadian generally accepted auditing standards. Those standards require that we comply with ethical requirements and plan and perform an audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
KPMG LLP is a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. KPMG Canada provides services to KPMG LLP.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on our judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, we consider internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Opinion In our opinion, the financial statements present fairly, in all material respects, the financial position of Ambrose University as at April 30, 2018, and its results of operations and its cash flows for the year then ended in accordance with Canadian accounting standards for not-for-profit organizations.
Emphasis of Matter Without modifying our opinion, we draw attention to note 2 in the financial statements which indicates that Ambrose University’s ability to continue as a going concern is dependent on generating sufficient cash flows from operations, servicing its existing debt obligations, the continued support of its current lenders, and access to new sources of financing. These conditions, along with other matters as set forth in note 2 in the financial statements, indicate the existence of a material uncertainty that casts significant doubt about Ambrose University’s ability to continue as a going concern.
Chartered Professional Accountants
September 19, 2018
Calgary, Canada
Ambrose University Statement of Financial Posi�on As at April 30, 2018
2018 2017 Assets Current assets Cash $ 362,763 $ 1,541,751 Accounts receivable (note 4) 303,257 320,575 Inventory 304,161 204,165 Prepaid expenses 431,335 249,030 Total current assets 1,401,516 2,315,521
Non-current assets Investments (note 5) 9,031,077 8,353,642 Capital assets (note 6) 36,438,496 37,784,934 $ 46,871,089 $ 48,454,097
Liabilities Current liabili�es Accounts payable and accrued liabili�es (note 7) $ 1,219,102 $ 1,090,477 Student deposits and deferred contribu�ons 1,847,790 1,602,033 Current por�on of loans and borrowings (note 8) 16,948,154 18,990,528 Total current liabili�es 20,015,046 21,683,038
Non-current liabili�es Loans and borrowings (note 8) 614,718 655,718 Deferred contribu�ons Annuity contracts (note 9) 4,745,932 5,493,932 Deferred capital contribu�ons (note 10) 13,566,870 14,065,364 18,312,802 19,559,296
Net Assets Accumulated opera�ng deficit (3,170,748) (2,654,112) Externally restricted (note 11) 9,181,606 8,514,161 Invested in capital assets (note 12) 1,917,665 695,996 7,928,523 6,556,045 $ 46,871,089 $ 48,454,097 Going concern assump�on (note 2) Subsequent events (note 8) The accompanying notes are an integral part of these financial statements
Approved by the Board of Governors
3
Ambrose University Statement of Operations Year ended April 30, 2018
2018 2017 Revenue Tuition and student fees $ 8,753,513 $ 8,407,181 Donations and constituent support (note 14) 3,041,259 3,299,467 Government grants 2,866,462 2,864,003 Sales, rent and ancillary, net (note 13) 1,096,400 981,587 Endowment and other 749,790 503,869 16,507,424 16,056,107 Expenses Employee compensation, benefits and other 10,857,204 10,118,877 Operating supplies 1,626,725 1,313,693 Scholarships and bursaries 968,757 1,012,505 Interest 846,644 866,704 Communications, advertising and events 693,863 680,550 Facilities 690,089 628,844 Travel and hospitality 374,383 381,492 Annuity payments (notes 8 and 9) 319,640 369,165 Professional fees 359,145 240,380 Other 128,817 22,832 16,865,267 15,635,042 Surplus (deficiency) of revenue over expenses before the following (357,843) 421,065 Amortization of capital assets (1,631,167) (1,673,356) Amortization of deferred capital contributions (note 10) 567,359 549,831 Gain on annuity contract maturities (note 9) 611,500 37,000 Change in fair value of interest rate swap (note 8) 1,515,184 335,234 Surplus (deficiency) of revenue over expenses $ 705,033 $ (330,226)
The accompanying notes are an integral part of these financial statements
4
Ambrose University Statement of Cash Flows Year ended April 30, 2018
2018 2017
Cash flow from operating activities: Cash received for tuition and student fees $ 8,853,743 $ 7,894,346 Cash received from donors and constituents 2,993,565 3,639,574 Government funding received 3,087,355 2,773,872 Cash received from customers, tenants and others 3,170,139 3,035,957 Cash paid to and on behalf of employees, suppliers and annuitants (17,763,105) (15,564,888) Interest received 11,261 11,956 Interest paid (772,549) (795,667) Net cash flow from operating activities (419,591) 995,150
Cash flow from financing activities: Capital contributions received 68,865 98,140 Restricted contributions received 316,972 307,308 Cash received from annuitants 13,500 ‐ Repayment of loans and borrowings (678,785) (584,680) Advances of loans and borrowings 36,500 4,200 Net cash flow from financing activities (242,948) (175,032)
Cash flow from investing activities: Capital expenditures (284,730) (254,397) Net change in investments (231,719) (400,201) Net cash flow from investing activities (516,449) (654,598)
Increase (decrease) in cash (1,178,988) 165,520 Cash, beginning of year 1,541,751 1,376,231 Cash, end of year $ 362,763 $ 1,541,751
The accompanying notes are an integral part of these financial statements
5
Ambrose University Statement of Changes in Net Assets
Year ended April 30, 2018 Accumulated Invested in operating Externally capital deficit restricted assets Total Balance, May 1, 2017 $ (2,654,112) $ 8,514,161 $ 695,996 $ 6,556,045 Surplus (deficiency) of revenue over expenses 1,355,794 - (650,761) 705,033 Direct changes in net assets: Restricted contributions received (note 14) - 650,762 - 650,762 Gain on annuity contract maturities (note 9) - 150,000 - 150,000 Net investment income - 526,280 - 526,280 Change in fair market value of investments - (185,892) - (185,892) Endowment distributions - (473,705) - (473,705) Transfers of net assets: Net change in investment in capital assets (note 12) (1,872,430) - 1,872,430 - Balance, April 30, 2018 $ (3,170,748) $ 9,181,606 $ 1,917,665 $ 7,928,523
Year ended April 30, 2017 Accumulated Invested in operating Externally capital deficit restricted assets Total Balance, May 1, 2016 $ (2,291,135) $ 7,621,326 $ 663,245 $ 5,993,436 Surplus (deficiency) of revenue over expenses 1,580,069 - (1,910,295) (330,226) Direct changes in net assets: Restricted contributions received - 447,232 - 447,232 Net investment income - 353,660 - 353,660 Change in fair market value of investments - 595,928 - 595,928 Endowment distributions - (503,985) - (503,985) Transfers of net assets: Net change in investment in capital assets (note 12) (1,943,046) - 1,943,046 - Balance, April 30, 2017 $ (2,654,112) $ 8,514,161 $ 695,996 $ 6,556,045
The accompanying notes are an integral part of these financial statements
6 Ambrose University Notes to the Financial Statements Year ended April 30, 2018
1. Purpose of the organization Ambrose University (“Ambrose”) is a Christian university offering provincially accredited undergraduate arts and science degrees, and undergraduate and post‐graduate degrees in ministry and theology. Ambrose was incorporated in Alberta on September 12, 2003 as Canadian Bible College/Canadian Theological Seminary Ltd. On March 24, 2004, after receiving accreditation by the Province of Alberta, the name was changed to Alliance University College Ltd. On May 2, 2007, the name was changed to Ambrose University College Ltd. after Canadian Nazarene University College Ltd., a separately accredited institution, transferred all of its net assets, operations and degree granting authority to Ambrose. On November 26, 2014 the name was changed to Ambrose University. The financial statements of Ambrose include 1282185 Alberta Ltd., a wholly‐owned bare trustee corporation that holds title to certain real property. There are no operations in 1282185 Alberta Ltd. Ambrose is a registered charity under the Income Tax Act, Canada. Ambrose is not subject to income taxes under the Income Tax Act and, as such, no provision for income taxes is included in these financial statements. 2. Basis of presentation and going concern basis of accounting The financial statements of Ambrose have been prepared by management on a going concern basis which assumes Ambrose will realize its assets and discharge its liabilities in the normal course of operations for at least 12 months from the date of issuance of the financial statements. As at April 30, 2018, Ambrose has insufficient working capital to continue its operations for at least 12 months from the date of issuance of the financial statements. Management is forecasting further deterioration in Ambrose’s financial condition over this same time period. Management has identified land that Ambrose does not require for the anticipated future expansion of the campus, and has begun the steps necessary to realize proceeds from the sale of this land. Proceeds from any land sale are not anticipated prior to Ambrose’s 2019‐2020 fiscal year. As a result Ambrose is pursuing additional borrowing arrangements to meet its short‐term cash flow needs. Ambrose has operated outside of compliance with a debt covenant requiring a minimum debt service coverage ratio for the 2015 through 2018 fiscal years (note 8). Non‐compliance with the covenant gives the lender the right to demand immediate repayment of the outstanding term loan balance. As a result of anticipated future non‐compliance with the covenant, the bank financing scheduled to be repaid to 2038 has been presented on the statement of financial position as a current liability. Repayment of the term loan would also require settlement of the interest rate swap agreement at potentially unfavourable terms (note 8). Should Ambrose be required to repay the term loan and settle the interest rate swap agreement as a result of demand by the lender, Ambrose would need to secure alternative financing. Accordingly, Ambrose’s ability to continue as a going concern requires the continued support of its current lenders, and access to new sources of financing. As a result of the foregoing there is a material uncertainty that casts significant doubt upon Ambrose’s ability to continue as a going concern. These financial statements do not reflect any adjustments that may be necessary if the going concern assumption were not appropriate, including adjustments to the carrying amounts of assets and liabilities, the reported revenues and expenses, and the statement of financial position classifications used.
7 Ambrose University Notes to the Financial Statements Year ended April 30, 2018
3. Significant accounting policies The financial statements of Ambrose have been prepared by management in accordance with the Canadian Accounting Standards for Not‐For‐Profit Organizations in Part III of the CPA Handbook (the “Standards”). The following is a summary of significant accounting policies followed in preparation of the financial statements. a. Use of estimates and judgement The preparation of financial statements in accordance with the Standards requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the recorded amounts of assets and liabilities and disclosure of contingent assets and liabilities and the reported amounts of revenue and expenses. Actual results may differ from those estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimates are revised and in any future periods affected. In preparing the financial statements, the significant judgments made by management in applying Ambrose’s accounting policies and the key sources of estimation were the allowance for doubtful accounts, amortization rates and useful lives of capital assets, and impairment of long‐lived assets. b. Revenue recognition Ambrose follows the deferral method of accounting for contributions, which include donations and government grants. i. Unrestricted contributions are recognized when received or receivable if the amount receivable can be reasonably estimated and collection is reasonably assured. ii. Contributions externally restricted for purposes other than scholarships, endowments and capital assets are deferred and recognized as revenue in the year in which related expenses are recognized. iii. Endowment contributions are recognized as direct increases in net assets in the year in which they are received. Investment income on endowment net assets is recognized as revenue in the year in which related expenses are recognized. iv. Contributions restricted for the acquisition of capital assets are recognized as revenue in amounts that match the amortization expense of the related capital assets purchased with the contributions. Tuition and student fees are recognized as revenue in the academic year to which they relate. Registration deposits and tuition payments for future academic terms are deferred. Sales and ancillary revenue is recognized when goods are sold or services are performed. Rental revenue is recognized in the period during which occupancy took place. Gains resulting from the maturity of annuity contracts designated for operating purposes is recognized on the date of maturity of the annuity contract. Annuity contracts designated for capital purposes are recognized as deferred capital contributions on the date of maturity of the annuity contract.
8 Ambrose University Notes to the Financial Statements Year ended April 30, 2018
c. Cash and cash equivalents Cash and cash equivalents include bank deposits. d. Inventory Inventory of bookstore merchandise is recorded at the lower of cost and net realizable value, determined on a first‐in, first‐out basis. Cost of goods sold is comprised of inventory expensed in the year. e. Investments Investments are recorded at market value, which is determined from published price quotations, and corresponding unrealized gains or losses that occur due to changes in market values are reported on the statement of operations for unrestricted funds and as direct changes in net assets for restricted funds. f. Capital assets Capital assets, except land and mineral rights, are measured at cost less accumulated amortization. Land and mineral rights are carried at cost and not amortized. Cost includes expenditures that are directly attributable to the acquisition of the asset. Amortization is calculated on a straight‐line basis over the estimated useful lives of the assets as follows: Asset category Term Buildings 30 ‐ 40 years Library materials 10 ‐ 12 years Equipment and computers 3 ‐ 10 years Land improvements 7 years Furnishings 3 ‐ 10 years Estimated useful lives of capital assets are reviewed annually and adjusted if appropriate. Any changes are accounted for prospectively. Capital assets are tested for impairment whenever events or changes in circumstances indicate that their carrying amounts may not be fully recoverable. An impairment loss is recognized in the period it is determined impairment exists and is calculated as the excess of the carrying value of the asset over its fair value. g. Annuity contracts Annuity contracts are recorded at the amount received at the inception of the annuity contract. Until the annuity matures, the difference between the face value of the contracts and the estimated actuarial liability is treated as deferred revenue. Annuity contracts wherein Ambrose is not the beneficiary upon maturity are recorded as loans and borrowings. Periodic annuity payments are recorded as expenses on the statement of operations. h. Financial instruments Financial instruments are recorded at fair value on initial recognition. Freestanding derivative instruments that are not in a qualifying hedging relationship and equity instruments that are quoted in an active market are subsequently measured at fair value. All other financial instruments are subsequently recorded at cost or amortized cost, unless management has elected to carry the instruments at fair value. Ambrose has not elected to carry any such financial instruments at fair value.
9 Ambrose University Notes to the Financial Statements Year ended April 30, 2018
Transaction costs incurred on the acquisition of financial instruments measured subsequently at fair value are expensed as incurred. All other financial instruments are adjusted by transaction costs incurred on acquisition and financing costs, which are amortized using the straight‐line method. Financial assets are assessed for impairment on an annual basis at the end of the fiscal year if there are indicators of impairment. If there is an indicator of impairment, Ambrose determines if there is a significant adverse change in the expected amount or timing of future cash flows from the financial asset. If there is a significant adverse change in the expected cash flows, the carrying value of the financial asset is reduced to the highest of the present value of the expected cash flows, the amount that could be realized from selling the financial asset or the amount Ambrose expects to realize by exercising its right to any collateral. If events and circumstances reverse in a future period, an impairment loss will be reversed to the extent of the improvement, not exceeding the initial carrying value. 4. Accounts receivable Accounts receivable at April 30 is comprised of the following: 2018 2017 Student accounts receivable $ 136,626 $ 84,763 Trade and other receivables 141,217 114,619 Government receivables ‐ 101,893 Goods and Services Tax recoverable 25,414 19,300 $ 303,257 $ 320,575 5. Investments Investments comprise pooled mutual funds professionally managed in accordance with the Investment Policy adopted by the Board of Governors. Fair values of investments are based on quoted market prices on the date of the statement of financial position. The carrying amount of investments at April 30 is as follows: 2018 2017 Investments at cost $ 8,405,834 $ 7,542,507 Unrealized gains 625,243 811,135 $ 9,031,077 $ 8,353,642 6. Capital assets The net carrying amount of capital assets at April 30 is as follows: 2018 2017 Accumulated Net book Net book Cost amortization value value Land $ 3,493,741 $ ‐ $ 3,493,741 $ 3,493,741 Buildings 42,746,246 10,787,383 31,958,863 33,152,826 Library materials 3,387,608 2,753,909 633,699 759,558 Equipment and computers 1,593,331 1,374,707 218,624 287,313 Land improvements 1,236,515 1,227,752 8,763 11,267 Furnishings 1,053,696 946,890 106,806 62,229 Mineral rights 18,000 ‐ 18,000 18,000 $ 53,529,137 $ 17,090,641 $ 36,438,496 $ 37,784,934
10 Ambrose University Notes to the Financial Statements Year ended April 30, 2018
7. Accounts payable and accrued liabilities Accounts payable and accrued liabilities at April 30 is comprised of the following: 2018 2017 Trade accounts payable $ 1,033,140 $ 912,635 Government payroll remittances payable 143,626 123,197 Accrued annuity payments 42,336 54,645 $ 1,219,102 $ 1,090,477 8. Loans and borrowings Loans and borrowings at April 30 is comprised of the following: Note 2018 2017 Current liabilities Constituent loans a) $ 74,867 $ 123,150 Bank financing b) 16,873,287 18,859,320 Current portion of annuity contracts ‐ 8,058 16,948,154 18,990,528 Non‐current liabilities Annuity contracts d) 614,718 655,718 $ 17,562,872 $ 19,646,246 a) Constituent loans Various constituents have advanced funds to Ambrose to provide cash for capital and operating purposes. The loans are repayable upon demand, unsecured and bear interest at rates from 1.5% to 3.5%. The effective annual rate of interest at April 30, 2018 is 2.5%. b) Bank financing 2018 2017 Bank term loan, with monthly payments of $109,600 to August 2038, bearing interest at 4.24% per annum until August 2028 $ 17,909,616 $ 18,453,843 Deferred financing costs, net of accumulated amortization (2,414,717) (2,488,095) Fair value of interest rate swap 1,378,388 2,893,572 $ 16,873,287 $ 18,859,320 Deferred financing costs are amortized over the repayment term of the bank term loan and $73,000 is included in interest expense on the statement of operations. The bank term loan bears interest at the bank’s prime rate. Ambrose has entered into an interest rate swap arrangement that secures an interest rate of 4.24% on the bank term loan until August 2028. The change in the fair market value of the interest rate swap is included on the statement of operations. The bank term loan is secured by a mortgage providing a first charge on land and buildings with a net carrying amount of $35.5 million and a General Security Agreement over net assets.
11 Ambrose University Notes to the Financial Statements Year ended April 30, 2018
Annual scheduled repayment of the bank term loan is as follows: Years ending April 30 Amount 2019 $ 568,000 2020 592,000 2021 618,000 2022 644,000 2023 672,000 Thereafter 14,815,616 $ 17,909,616 c) Financial covenant Ambrose is required to comply with certain covenants under its bank financing. Ambrose was not in compliance with a financial covenant that requires a minimum debt service coverage ratio of 110% for the year ended April 30, 2018. As a result of the non‐compliance the bank has the contractual right to demand repayment of the term loan and settlement of the interest rate swap and accordingly the bank financing is reported as a current liability. d) Annuity contracts Ambrose has entered into annuity contracts which pay the annuitants a periodic fixed amount for the lifetime of the annuitant, in exchange for an amount received from the annuitant upon inception of the contract. In accordance with the terms of the annuity contracts, any residual amount upon maturity of the annuity must be paid to third parties over the time period stipulated in the annuity contract. Annuity payment rates vary depending on the anticipated time to maturity at the inception of the contract, and range from 2.6% to 12.0% per annum. The effective annual rate on the contracts at April 30, 2018 is 5.2%. Scheduled annual annuity payments at April 30, 2018, assuming no annuity contracts mature, total $32,000. 2018 2017 Annuity contracts not yet matured $ 614,718 $ 655,718 Matured annuity contracts ‐ 8,058 614,718 663,776 Current portion of matured annuity contracts ‐ (8,058) $ 614,718 $ 655,718 e) Available borrowing and subsequent event Ambrose has entered into an agreement with an affiliated party, under which Ambrose will borrow and subsequently repay $1.5 million over the period of May through September 2018 to fund short term cash deficiencies. Loan advances bear interest at bank prime rate plus 0.5%. Loan advances are secured by land and buildings with a carrying amount of $34.1 million at April 30, 2018. Subsequent to April 30, 2018, Ambrose received these advances. Ambrose has a $0.5 million bank line of credit that may be used to fund short‐term cash deficiencies. Advances on this facility bear interest at the bank’s prime rate plus 0.5%. This facility was unutilized at April 30, 2018. Subsequent to April 30, 2018, Ambrose utilized advances on this line of credit to fund operating activities.
12 Ambrose University Notes to the Financial Statements Year ended April 30, 2018
9. Annuity contracts Ambrose has entered into annuity contracts which pay the annuitants a periodic fixed amount for the lifetime of the annuitant, in exchange for an amount received from the annuitant upon inception of the contract. Annuity payment rates vary depending on the anticipated time to maturity at inception of the contract and range from 2.6% to 13.0% per annum. The weighted‐ average annuity payment rate at April 30, 2018 is 6.3%. Scheduled annual annuity payments at April 30, 2018, assuming no annuity contracts mature, total $279,000. a) Changes in annuity contracts for the years ended April 30 comprise: 2018 2017 Balance, beginning of year $ 5,493,932 $ 5,355,099 New annuity contracts 13,500 ‐ Annuity contract amendments ‐ 175,833 Matured annuity contracts recognized as: Gain on annuity contract maturities (611,500) (37,000) Externally restricted net assets ‐ scholarships (150,000) ‐ Balance, end of year $ 4,745,932 $ 5,493,932
b) Annuity contract maturity Annuity contracts at April 30 will be derecognized upon maturity based on the terms of the annuity contracts as follows: 2018 2017 Gain on annuity contract maturities $ 1,220,649 $ 1,832,149 Deferred capital contributions 3,421,833 3,421,833 Externally restricted net assets ‐ scholarships 103,450 239,950 $ 4,745,932 $ 5,493,932
c) Annuity contract amendments During the year ended April 30, 2017, an annuitant and Ambrose agreed to amend certain existing annuity contracts, altering the beneficiary of the residual annuity amount from third parties to Ambrose. As a result these annuity contract amounts were reclassified from loans and borrowings to annuity contracts. 10. Deferred capital contributions Deferred capital contributions represent restricted funds received and designated to be used for capital purposes. Changes in deferred capital contributions for the years ended April 30 comprise the following: 2018 2017 Balance, beginning of year $ 14,065,364 $ 14,517,055 Capital contributions received 68,865 98,140 Amortization of deferred capital contributions recognized (567,359) (549,831) Balance, end of year $ 13,566,870 $ 14,065,364
13 Ambrose University Notes to the Financial Statements Year ended April 30, 2018
11. Externally restricted net assets Externally restricted net assets at April 30 comprise the following: 2018 2017 Endowed scholarships $ 6,743,572 $ 6,421,111 Other endowments 2,438,034 2,093,050 $ 9,181,606 $ 8,514,161 12. Investment in capital assets Net assets invested in capital assets at April 30 comprise the following: 2018 2017 Capital assets $ 36,438,496 $ 37,784,934 Amounts financed by: Loans and borrowings (17,532,128) (19,601,741) Annuity contracts (3,421,833) (3,421,833) Deferred capital contributions (13,566,870) (14,065,364) $ 1,917,665 $ 695,996 Net change in investment in capital assets for the years ended April 30 comprises: 2018 2017 Capital expenditures $ 284,730 $ 254,397 Payments of principal and interest on loans and borrowings 1,436,852 1,354,743 Advances of loans and borrowings (36,500) ‐ Annuity payments made 256,213 256,213 Annuity contract amendments ‐ 175,833 Financing provided by capital contributions received (68,865) (98,140) $ 1,872,430 $ 1,943,046 13. Sales, rent and ancillary revenue, net Sales, rent and ancillary net revenue for the years ended April 30 is comprised of the following:
2018 2017 Revenue Sales $ 1,246,952 $ 1,320,279 Rental 1,060,009 1,060,349 Events 180,795 130,919 2,487,756 2,511,547 Expenses Cost of goods sold 631,220 679,391 Contract services 585,013 667,928 Other 175,123 182,641 1,391,356 1,529,960
Sales, rent and ancillary revenue, net $ 1,096,400 $ 981,587
14 Ambrose University Notes to the Financial Statements Year ended April 30, 2018
14. Related party transactions During the year ended April 30, 2018, Ambrose received contributions of $1.4 million from district and national offices within the denominations of the Christian and Missionary Alliance in Canada and the Church of the Nazarene in Canada and in the United States. In addition, Ambrose received $0.4 million of restricted endowment contributions from a foundation affiliated with the Church of the Nazarene in Canada. Each of these parties is affiliated with Ambrose. These transactions are in the normal course of operations and are measured at the exchange amount which is the amount of consideration established and agreed to by the related parties. 15. Financial risks and concentration of credit risk a) Liquidity risk: Liquidity risk is the risk that Ambrose will be unable to fulfill its financial obligations on a timely basis or at a reasonable cost. Ambrose manages its liquidity risk by monitoring its operating cash flow requirements, and by preparing budgets and cash flow forecasts to ensure it has sufficient funds to meet its obligations. Liquidity risk exposure has increased in 2018 as discussed in note 2. b) Credit risk: Credit risk is the risk that a counter‐party will default on its contractual obligations resulting in a financial loss to Ambrose. Credit risk arises principally from Ambrose’s cash deposits, and receivables from students and third parties. Ambrose holds its cash deposits in a large Canadian financial institution. Management monitors its accounts receivable regularly and makes a provision for any amounts that are not collectible. There has been no change to credit risk exposure during the year. c) Interest rate risk: Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate as a result of changes in market interest rates. Ambrose is exposed to interest rate risk on interest‐bearing investments and cash deposits, and certain loans and borrowings that bear interest at rates that fluctuate with market interest rates. There has been no change to interest rate risk exposure during the year. d) Currency risk: Currency risk is the risk associated with transacting in and holding balances that are denominated in foreign currencies. In the normal course of operations, Ambrose purchases goods and services and receives revenue denominated in foreign currencies and at times a portion of investments may be denominated in a foreign currency. There has been no change to currency risk exposure during the year. e) Market risk: Market risk is the risk that the value of financial assets will change resulting in a financial loss. Ambrose is exposed to market risk on its investments. Ambrose manages its investment portfolio to earn investment income and invests according to guidelines established by the Board of Governors. Ambrose is not involved in any hedging relationships through its operations and does not hold or use any derivative financial instruments for trading purposes. There has been no change to market risk exposure during the year.
15 Ambrose University Notes to the Financial Statements Year ended April 30, 2018
16. Financial Information Return for purposes of the Charitable Fund‐raising Act of Alberta In accordance with Section 8 of the Charitable Fund‐raising Act of Alberta the following amounts are disclosed in addition to those disclosures reflected elsewhere in these financial statements which together comprise the Financial Information Return of Ambrose:
2018 2017 Donations $ 2,093,532 $ 2,125,835 Total direct expenses incurred for soliciting contributions 466,694 349,581 Remuneration to employees whose principal duties involved fundraising 290,094 227,706 17. Comparative figures Certain comparative figures for the year ended April 30, 2017, have been reclassified to conform to the financial statement presentation adopted in the current year.
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Ambrose University 150 Ambrose Circle SW Calgary, Alberta T3H 0L5 www.ambrose.edu