Statement of Financial Information Prepared Under the Financial Information Act for Year Ended March 31, 2018

STATEMENT OF FINANCIAL INFORMATION PREPARED UNDER THE FINANCIAL INFORMATION ACT FOR YEAR ENDED MARCH 31, 2018

VANCOUVER ISLAND UNIVERSITY

900 FIFTH STREET

NANAIMO, BC

V9R 5S5

STATEMENT OF FINANCIAL INFORMATION

PREPARED UNDER THE FINANCIAL INFORMATION ACT

FOR YEAR ENDED MARCH 31, 2018

TABLE OF CONTENTS

Management Report ...... page 3

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

Schedule of Debts ...... page 5

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

Statement of Severance Agreements ...... page 8

Schedule of Remuneration and Expenses, Board of Governors...... page 9

Schedule of Employee Remuneration and Expenses ...... page 10

Schedule of Suppliers of Goods and Services ...... page 24

Reconciliation ...... page 31

Consolidated Financial Statements 2017-2018 ...... Appendix 1

STATEMENT OF FINANCIAL INFORMATION

PREPARED UNDER THE FINANCIAL INFORMATION ACT

FOR YEAR ENDED MARCH 31, 2018

SCHEDULE OF DEBTS

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

Vancouver Island University has not incurred any debt during the 2017-18 fiscal period

STATEMENT OF FINANCIAL INFORMATION

PREPARED UNDER THE FINANCIAL INFORMATION ACT

FOR YEAR ENDED MARCH 31, 2018

SCHEDULE OF GUARANTEE AND INDEMNITY AGREEMENTS

Prepared Under Financial Information Regulation, Schedule 1, Section 5

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

Allstream Business Inc.

BC One Call Limited

British Columbia Institute of Technology as represented by British Columbia Council on Admissions and Transfer (BCCAT)

City of Burnaby

City of Nanaimo

District of Ucluelet

Environmental Careers Organization of Canada

Friesens Corporation

Her Majesty the Queen in Right of Canada as represented by Parks Canada Agency

Her Majesty the Queen in Right of Canada as represented by the Minister of the Environment and Climate Change

Island Trust

Mitacs Inc.

Nature Trust of British Columbia

6 noodleStream.com LLC dba SafetySkills

Page One Publishing Inc.

Process Pathways Inc.

Rational Canada Inc.

Regional District of Nanaimo

Ricoh Canada Inc.

Rideau Hall Foundation

Starbucks Coffee Canada Inc.

The Port Theatre Society

TimberWest Forest Corp.

TimberWest Holdings Ltd.

Timberwest Forest Company, a partnership of TimberWest Forest Corp. and Timberwest Holdings Ltd.

Town of Comox

Unit4 Business Software Corporation

Vancouver Island Conference Centre

Vancouver Island Health

Vancouver Island Providence Community Association

Workers' Compensation Board doing business as WorkSafeBC

World University Service of Canada and Centre for International Studies and Cooperation

World Wildlife Fund Canada

STATEMENT OF FINANCIAL INFORMATION

PREPARED UNDER THE FINANCIAL INFORMATION ACT

FOR YEAR ENDED MARCH 31, 2018

STATEMENT OF SEVERANCE AGREEMENTS

Prepared under the Financial Information Regulation, Schedule 1, Subsection 6(7)

There were 3 severance agreements under which payment commenced between Vancouver Island University and its non- unionized employees during fiscal year 2017/2018. These agreements represent from 3.267 to 13.5 months of compensation.

STATEMENT OF FINANCIAL INFORMATION PREPARED UNDER THE FINANCIAL INFORMATION ACT FOR YEAR ENDED MARCH 31, 2018

SCHEDULE OF REMUNERATION AND EXPENSES BOARD OF GOVERNORS

Prepared Under Financial Information Regulation, Schedule 1, Section 6

Board Member 2017-18 Total Expenses

Louise Mandell Chancellor $9,738.56 Makenzie Leine Chair 1,994.46 Allan Wiekenkamp Past-Chair 848.95 Warren Erhart Appointed Board Member 2,234.65 Claire Moglove Appointed Board Member 1,695.20 Jonalan Oddleifson Appointed Board Member 1,123.58 Erralyn Thomas Appointed Board Member 300.00 Terence Fitzgerald Appointed Board Member 489.75 Gregory Constable Appointed Board Member 300.00 Sheila Davidson Elected Employee 300.00 Chris Burnley Elected Faculty 100.00 Linda Derksen Elected Faculty 300.00 Eliza Gardiner Elected Faculty 225.00 Aubrey Robertson Elected Student 100.00 Imtiaz Taj Elected Student 318.50

$20,068.65

9 STATEMENT OF FINANCIAL INFORMATION PREPARED UNDER THE FINANCIAL INFORMATION ACT FOR YEAR ENDED MARCH 31, 2017

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

Employee Salary and Expenses $75,000 or more

Total Salary & Total Employee Employee Employee Name Employee Expenses Salaries Expenses ACHARYA, ARCHNA$ - $ 85,575.38 $ 85,575.38 ACOSTA, MALENA 456.79 91,598.45 92,055.24 AFFLECK, JOSLYNN 1,000.00 80,402.00 81,402.00 AGYEKUM, ERIC 1,000.00 107,456.14 108,456.14 AIKMAN, ALLAN 2,346.01 90,543.43 92,889.44 ALEXANDER, DON 1,628.35 92,683.70 94,312.05 ALEXANDER, SANDY 2,430.98 92,762.47 95,193.45 ALLEN, SUSAN 4,251.19 80,194.71 84,445.90 ALPHONSE, DANIELLE 8,695.74 79,198.31 87,894.05 ALTON, MICHAEL 960.21 79,614.33 80,574.54 ALTON, RITA 630.72 99,199.36 99,830.08 ANDERSON, GILLIAN 1,000.00 77,861.00 78,861.00 ANSELL, JIM 1,992.16 90,683.70 92,675.86 ANTONIADIS, ANASTASIA 968.95 93,422.21 94,391.16 ARKOS, GREGORY 1,000.00 95,124.13 96,124.13 ARMOUR, ANDREW 3,015.09 83,474.01 86,489.10 ARMSTRONG, CLAY 1,000.00 91,062.71 92,062.71 ARMSTRONG, MARIE 4,508.68 154,533.90 159,042.58 ARNOLD, SYLVIA - 90,042.28 90,042.28 ASSAF, TANYA 465.36 91,598.45 92,063.81 ATKINSON, ANNA 1,000.00 90,683.70 91,683.70 ATKINSON, JAMES 1,000.00 76,491.68 77,491.68 AUGUSTUS, CAMIE 1,763.31 74,461.92 76,225.23 AYERS, JIM 501.81 93,199.70 93,701.51 BAILDHAM, LORRIE 3,666.41 99,826.08 103,492.49

10 Total Salary & Total Employee Employee Employee Name Employee Expenses Salaries Expenses BAILEY, MEGAN$ 6,522.34 $ 74,323.23 $ 80,845.57 BAKER, DAN 3,677.55 90,068.88 93,746.43 BALL, GEOFF 7,464.78 86,633.65 94,098.43 BALL, GREGORY 1,000.00 95,989.71 96,989.71 BALLAM, BRUCE 3,848.12 99,615.81 103,463.93 BARBER, TERRI 1,031.00 82,028.95 83,059.95 BARCK, DAVE 1,750.78 74,131.54 75,882.32 BARCLAY, LESLIE 1,250.00 89,840.08 91,090.08 BARNETT, MARTIN 4,696.67 91,598.45 96,295.12 BARSBY, TODD 1,000.00 93,852.59 94,852.59 BASCOM, ERIN 671.29 78,588.75 79,260.04 BAUMEL, DALE 400.49 79,913.46 80,313.95 BEAUBIER, ALEXIS 1,668.85 83,616.68 85,285.53 BEBYCK, TOM 105.81 77,271.92 77,377.73 BENISKY, BARRY 3,115.35 115,327.56 118,442.91 BEVIS, RICK 1,732.12 96,764.76 98,496.88 BIGELOW, DAVID 1,024.14 94,921.29 95,945.43 BLACK, JOHN 5,105.68 102,822.17 107,927.85 BLACKBURN, JEAN 3,256.47 90,683.71 93,940.18 BLACKELL, MARK 5,252.83 95,260.23 100,513.06 BLAIKLOCK, FELICITY 1,565.03 90,683.71 92,248.74 BLAKEBOROUGH, JOHNNY 1,000.00 77,091.41 78,091.41 BLANEY, LEIGH 1,595.20 91,820.71 93,415.91 BORTOLIN, KATHLEEN 3,491.30 84,617.53 88,108.83 BOTTERILL, PAM 4,614.92 78,608.74 83,223.66 BOWES, MATTHEW 1,000.00 78,982.00 79,982.00 BRACK, NONA 1,595.20 90,683.71 92,278.91 BRAUN, MICHAEL 398.48 98,210.12 98,608.60 BRAZIER, CATHERINE 12,340.87 114,838.88 127,179.75 BRIMACOMBE, ELIZABETH 5,848.57 83,684.26 89,532.83 BRISCOE, PETER 10,452.48 102,759.13 113,211.61 BROCKLEBANK, JOANNE 3,848.82 110,537.61 114,386.43 BROOKS, TASHA 11,249.56 67,358.64 78,608.20 BRYDGES, DAN 1,000.00 80,582.25 81,582.25 BUFFIE, BONNIE-JEAN 1,693.47 84,882.04 86,575.51 BURGOYNE, DANIEL 2,002.65 90,683.70 92,686.35 BURNLEY, CAROLINE 1,000.00 91,252.21 92,252.21 BURNLEY, CHRIS 2,522.50 91,062.71 93,585.21 BUSH, GREGORY 1,000.00 91,062.71 92,062.71 BUTLER, DAVID 5,769.08 91,598.45 97,367.53

11 Total Salary & Total Employee Employee Employee Name Employee Expenses Salaries Expenses BUTTERWORTH, CARL$ 2,484.62 $ 83,604.31 $ 86,088.93 BUZZARD, GORDON 881.50 91,723.45 92,604.95 CADIEUX, DEAN 2,182.83 94,658.90 96,841.73 CAKE, DAVE 1,634.35 90,683.71 92,318.06 CAMERON, CATHY 8,929.91 75,973.64 84,903.55 CARPENTER, MICHAEL 670.14 76,758.99 77,429.13 CARPENTIER, SALLY 2,285.36 128,074.99 130,360.35 CARROLL, ANITA 2,042.12 90,683.71 92,725.83 CARRUTHERS, SARAH 1,219.19 77,658.86 78,878.05 CATHERS, DEVON 1,000.00 75,120.38 76,120.38 CAVIN, ELIZABETH 1,924.00 76,414.67 78,338.67 CEBULIAK, JIM - 91,598.45 91,598.45 CHACON, ENRIQUE 5,109.67 90,683.71 95,793.38 CHASSELS, CARRIE 2,818.51 139,948.90 142,767.41 CHASTER, WILLIAM 6,880.74 82,186.15 89,066.89 CHEUNG, STEVE - 91,598.45 91,598.45 CHICQUEN, KEITH 4,141.60 101,826.09 105,967.69 CHRISTOFFERSEN, JENNIFER 1,175.24 90,683.71 91,858.95 CHUANKAMNERDKARN, PATRICK 395.26 90,683.71 91,078.97 CHYPLYK, KRISTINE 18,141.12 71,804.37 89,945.49 CLEGG, JEREMY 3,251.50 99,889.97 103,141.47 CLEMENTS, STEPHEN 4,818.45 101,330.94 106,149.39 CLEMOTTE, OSCAR 1,000.00 91,441.71 92,441.71 COATES, JASON 2,860.58 93,769.93 96,630.51 COLE, JANE 1,000.00 93,715.71 94,715.71 COLLICOTT, BRIAN 4,413.22 72,148.54 76,561.76 CONDIE, BRUCE 49,251.28 93,804.91 143,056.19 COOPER, SHEILA 14,498.46 62,896.86 77,395.32 CORRIN, DOUG 1,564.63 94,473.71 96,038.34 COTE, DENIS 2,618.14 86,597.05 89,215.19 COVEY, JAMIE 1,036.40 84,869.74 85,906.14 COWEN, GORDON - 91,598.45 91,598.45 COX, RIKI 1,485.06 90,683.71 92,168.77 CRAN, GREG 12,505.49 113,829.90 126,335.39 CROCKER, STEPHANIE 874.00 84,450.01 85,324.01 CROFT, DAVID - 75,835.45 75,835.45 CRUICKSHANKS, NADINE 5,153.11 90,683.70 95,836.81 CUMBERS, ALAN 3,390.29 144,490.51 147,880.80 DAMES, SHANNON 6,215.85 90,683.71 96,899.56 DAOUST, MICHELLE 1,476.36 83,842.22 85,318.58

12 Total Salary & Total Employee Employee Employee Name Employee Expenses Salaries Expenses DAS, ANUPAM$ 2,000.00 $ 102,700.30 $ 104,700.30 DAVIDSON, SHARON 5,098.26 79,114.50 84,212.76 DAVIES, ROBIN 3,599.20 91,129.68 94,728.88 DAVIES, STEPHEN 1,006.04 97,720.81 98,726.85 DE LA BARRE, SUZANNE 2,488.61 76,431.37 78,919.98 DELAMERE, TOM 2,772.89 92,482.24 95,255.13 DEMERS, ERIC 1,172.10 97,858.38 99,030.48 DENHOFF, DEBORAH 942.76 86,819.36 87,762.12 DEPAPE, RON 1,456.35 84,836.88 86,293.23 DERBY, BRENDAN - 81,578.37 81,578.37 DERKSEN, TERI 3,134.25 89,572.25 92,706.50 DESILETS, CAROL 4,614.36 106,728.21 111,342.57 DIAMENTE, PETER 1,000.00 76,270.75 77,270.75 DICK, BRIAN 10,334.53 98,010.06 108,344.59 DOUGHTY, TERRI 1,301.56 90,683.71 91,985.27 DOWN, MICHAEL 2,487.30 96,947.71 99,435.01 DRURY, DAVID 346.65 91,598.45 91,945.10 DUFF, STEFANIE 1,156.48 97,760.99 98,917.47 DUTCHUK, MARK - 87,633.12 87,633.12 EASTON, GINA 286.27 88,454.48 88,740.75 EBY, EIKO 8,086.73 92,578.71 100,665.44 ECCLES, LIZ - 89,937.08 89,937.08 EDMONDSON, GORDON 1,683.98 78,251.71 79,935.69 EGAN, MARK 2,226.78 78,588.75 80,815.53 EGELAND, ERIN 3,424.95 104,925.41 108,350.36 EPP, LORNE 952.22 74,558.88 75,511.10 ERGASHEVA, MAK 5,324.40 73,597.05 78,921.45 EVANS, LORI 1,981.28 90,683.71 92,664.99 EVELEIGH, DARREN 12,025.61 97,276.95 109,302.56 FALVAI, JOANNE 1,289.50 91,820.71 93,110.21 FARRANT, SUSAN 2,008.22 84,184.13 86,192.35 FARRELL, TERESA 1,687.70 78,073.99 79,761.69 FERGUSON, ROB 8,638.93 118,227.63 126,866.56 FILGATE, LAURA - 75,742.86 75,742.86 FISCHER RUSSELL, DANIELA 7,349.62 98,618.02 105,967.64 FISHER, PAIGE 22,250.66 103,503.53 125,754.19 FLANNIGAN, SUZANNE 23,336.12 94,279.46 117,615.58 FLEMING, ALLYSON 1,296.36 78,793.02 80,089.38 FOOTE, CHRIS 1,611.20 94,884.29 96,495.49 FORD, JENNIFER 4,596.69 110,484.03 115,080.72

13 Total Salary & Total Employee Employee Employee Name Employee Expenses Salaries Expenses FORRESTER, DAVID$ 1,618.28 $ 82,377.67 $ 83,995.95 FOSTER, JACQUELINE - 91,598.45 91,598.45 FOSTER, PATRICK 1,000.00 88,814.25 89,814.25 FOX, DANIEL 726.83 116,246.36 116,973.19 FOX, SABRINA - 85,146.63 85,146.63 FRIESEN, DUANE 616.94 94,329.27 94,946.21 FUNK, MARILYN 2,741.06 90,683.71 93,424.77 GABLER, JOERG 2,310.06 91,598.45 93,908.51 GALLANT, MAURICE 2,096.08 91,598.45 93,694.53 GEORGE, DOUGLAS - 75,742.86 75,742.86 GIBLER, JULIE 1,637.20 92,762.47 94,399.67 GILCHRIST, ALAN 1,000.00 92,010.21 93,010.21 GILL, CHRIS 17,092.96 93,801.52 110,894.48 GILLIS, LIZ 1,903.78 95,962.04 97,865.82 GILLIS, TRACY 2,406.00 92,370.65 94,776.65 GOATER, TIM 1,000.00 91,631.21 92,631.21 GORRELL, JAMIE 1,300.00 76,003.06 77,303.06 GOVER, LAURA 1,582.75 85,618.41 87,201.16 GOVOROV, MICHAEL 3,275.00 90,683.71 93,958.71 GOWER, RITA 4,151.13 81,417.17 85,568.30 GREENWAY, SARAH 2,637.27 86,309.77 88,947.04 GRESS, JASON 1,852.29 95,030.65 96,882.94 GRIEVE, SHEILA 9,272.70 107,935.94 117,208.64 GROOT, ERICK 1,000.00 85,928.31 86,928.31 GULBRANSON, BURKE 3,526.40 79,981.86 83,508.26 HAGAN, SANDRA 1,003.64 90,683.71 91,687.35 HAIME, COLIN 976.50 90,683.71 91,660.21 HALLAM, MICHAEL 4,584.73 91,598.46 96,183.19 HAMILTON, NANCY 1,630.35 88,802.00 90,432.35 HANNESSON, DARREN 1,057.35 103,141.22 104,198.57 HANNESSON, TERESA 3,651.10 93,131.29 96,782.39 HANSON, CRAIG 147.00 95,611.03 95,758.03 HARAPNUK, EILEEN 2,010.27 83,052.47 85,062.74 HARDER, MARTI 2,480.31 109,175.39 111,655.70 HARPER, KEN 5,173.80 91,070.94 96,244.74 HASAN, SHAHRIAR - 92,103.25 92,103.25 HASSIB, ASHRAF 1,389.68 92,957.71 94,347.39 HAWAMDEH, MOHAMMED 1,095.00 83,499.63 84,594.63 HAYDEN, KATHLEEN 1,391.08 93,588.94 94,980.02 HEARN, DEBORAH 1,000.00 90,683.71 91,683.71

14 Total Salary & Total Employee Employee Employee Name Employee Expenses Salaries Expenses HEESE, BRIAN$ 1,351.93 $ 98,840.68 $ 100,192.61 HEIKKILA, RICK - 94,112.37 94,112.37 HERNANDEZ, MERCEDES 1,000.00 94,927.33 95,927.33 HESKETH, JOANNA 6,331.23 82,710.62 89,041.85 HILL, JOHN 1,344.57 91,683.71 93,028.28 HINBEST, JERRY 5,427.50 93,147.20 98,574.70 HINDE, JOHN 1,000.00 91,441.71 92,441.71 HOBENSHIELD, SHARON 16,560.03 99,901.08 116,461.11 HOFFMAN-MCGAW, CAMERON 1,343.44 75,836.17 77,179.61 HOLDING, SARAH 1,582.75 94,884.42 96,467.17 HOLLENBERG, ANDREW 1,874.00 93,913.41 95,787.41 HOLLEY, ROSEMARY 267.00 91,598.45 91,865.45 HOLROYD, ANN 2,695.36 90,683.71 93,379.07 HOOK, DENISE 1,524.63 85,217.53 86,742.16 HOPWOOD, DAVID 3,134.52 89,874.47 93,008.99 HOPWOOD, MARIE 2,322.88 72,963.73 75,286.61 HORNOSTY, JANINA 1,000.00 106,255.36 107,255.36 HUCULAK, GARY 22.05 75,444.36 75,466.41 HUNT, DALE 932.90 81,978.02 82,910.92 HUNTER, BRUCE 1,000.00 91,062.71 92,062.71 HUNTER, GLENDA 471.17 86,966.91 87,438.08 HUNTLEY, MARGE 3,247.20 95,066.64 98,313.84 HYDE, DANIELLE 1,804.80 76,758.99 78,563.79 HYMAN, BEN 5,202.26 121,030.32 126,232.58 IRWIN, WES 2,180.34 93,325.57 95,505.91 JACKLIN, DEBRA 7,415.28 72,877.40 80,292.68 JACKLIN, FRED 4,754.48 109,681.10 114,435.58 JAEGER, CHRIS 2,806.43 103,999.86 106,806.29 JANZEN, HARRY 7,338.31 79,762.76 87,101.07 JASTER, LISA 36,060.67 72,796.15 108,856.82 JAVORSKI, STEPHEN 1,623.96 78,832.00 80,455.96 JEAN LOUIS, ROSMY 3,958.70 109,807.66 113,766.36 JENNINGS, KATE 14,927.23 88,002.31 102,929.54 JENSEN, KEITH 1,000.00 133,714.49 134,714.49 JIRNIAGUINE, ALEXEI 1,000.00 91,008.95 92,008.95 JIWAJI, AAMERA 16,189.00 64,420.99 80,609.99 JOHNSON, AMANDA 1,205.85 103,884.99 105,090.84 JOHNSON, SAMUEL - 91,598.45 91,598.45 JOHNSRUDE, IAN 13,155.87 71,182.34 84,338.21 JOHNSTONE, SANDRA 1,000.00 81,238.56 82,238.56

15 Total Salary & Total Employee Employee Employee Name Employee Expenses Salaries Expenses JONES, KEVIN$ 847.85 $ 91,598.45 $ 92,446.30 JOSEFSSON, CAROLINE 1,595.10 96,392.77 97,987.87 JUNG, PIERA 1,676.32 91,441.71 93,118.03 KELLOW, MATT 4,100.88 76,890.05 80,990.93 KELLY, GEORGE 2,417.78 90,936.38 93,354.16 KELLY, SHARON 1,000.00 84,280.50 85,280.50 KEY, JESSIE 1,000.00 81,554.16 82,554.16 KIMOTO, STUART - 91,598.45 91,598.45 KING, JANET 3,077.87 90,180.25 93,258.12 KIRSON, RUTH 1,000.00 91,631.21 92,631.21 KLAASSEN, NIKKI 30,092.17 93,769.93 123,862.10 KNAACK, LIESEL 7,830.79 106,728.21 114,559.00 KNOWLES, JONELLE 8,829.83 103,569.71 112,399.54 KOSSOWAN, SHELLEY 1,169.62 85,732.02 86,901.64 KROEKER, ELISABETH 3,418.91 91,941.70 95,360.61 KROGH, ERIK 7,719.18 100,643.01 108,362.19 KUBOTA, SAYURI 4,760.08 91,598.45 96,358.53 KURULAK, DONNA 40.04 91,598.45 91,638.49 L'ABBE, SONNET 1,000.00 82,929.47 83,929.47 LAFRENIERE, SYLVIE 1,000.00 91,414.42 92,414.42 LANE, BRENDA 2,243.20 90,883.71 93,126.91 LANE, RICHARD 1,000.00 91,062.71 92,062.71 LANE, SARAH - 91,598.45 91,598.45 LATULIPPE, JOHAN (713.22) 155,569.14 154,855.92 LAVOIE, CARMEN 1,859.20 90,683.71 92,542.91 LE MASURIER, GUY 3,685.55 94,349.40 98,034.95 LEAF, SCOTT 1,000.00 93,755.64 94,755.64 LEAVITT, TOM - 91,598.45 91,598.45 LEGIN, SHELLEY 15,245.74 172,990.23 188,235.97 LEITH, HOPE 625.00 100,916.71 101,541.71 LESEMANN, JEROME 560.72 82,923.47 83,484.19 LEVINS, KEVIN 6,368.29 94,015.62 100,383.91 LEWIS, JEFF 1,000.00 92,768.20 93,768.20 LEWIS, RICHARD 13,437.37 106,728.21 120,165.58 LEWIS, TIMOTHY 1,035.85 91,820.71 92,856.56 LIN, ANDY 3,313.30 133,841.60 137,154.90 LITCHFIELD, WILLIAM 9,202.78 138,634.28 147,837.06 LITTLEJOHN, DEANNA 9,036.23 88,380.65 97,416.88 LIU, HUI (JOY) 1,115.00 97,884.71 98,999.71 LIU, HUIZHU 1,000.00 93,336.71 94,336.71

16 Total Salary & Total Employee Employee Employee Name Employee Expenses Salaries Expenses LIVINGSTONE, DAVID$ 1,000.00 $ 91,183.71 $ 92,183.71 LLOYD, JASON - 97,146.53 97,146.53 LLOYD, SUSAN - 78,064.70 78,064.70 LORD, JOANNA 55.12 85,508.75 85,563.87 LUMSDEN, SHELLEY 2,139.88 79,758.99 81,898.87 MACCOLL, MICHAEL 2,352.84 134,310.08 136,662.92 MACKAY, ROSS 8,264.67 126,247.74 134,512.41 MACSWEEN, NORMA 6,032.59 112,834.75 118,867.34 MADZIYA, PAULA - 78,987.08 78,987.08 MAGEE-CHALMERS, JESSIE 16,240.93 106,491.52 122,732.45 MAKEPEACE, MYRON 1,000.00 91,062.71 92,062.71 MALBON, LES 3,300.00 94,960.26 98,260.26 MALTESEN, JEAN 7,945.52 140,059.13 148,004.65 MANSON, GERALDINE 2,828.15 76,690.30 79,518.45 MARCHANT, ELLIOTT - 96,610.71 96,610.71 MARK, JAMES 1,006.24 77,482.11 78,488.35 MARTENS, MARTIN 3,274.41 119,568.61 122,843.02 MARTINFLATT, ASHLEIGH 1,547.72 83,842.21 85,389.93 MASSON, CYNTHEA 1,000.00 90,683.71 91,683.71 MATHESON, DEBORAH 5,851.62 129,499.08 135,350.70 MATHESON, KATHLEEN - 91,598.45 91,598.45 MATTAR, LOUIS 1,000.00 86,898.15 87,898.15 MAZUTINEC, KEVIN 1,042.12 77,476.08 78,518.20 MCCARTNEY, MICKI 2,678.28 80,323.83 83,002.11 MCCLUSKEY, ELLEN 3,938.98 95,989.70 99,928.68 MCCOMB, TINA 7,467.03 106,728.21 114,195.24 MCFARLAND, DANA 3,523.60 90,683.71 94,207.31 MCGRAIL, JUSTIN 5,083.44 98,857.83 103,941.27 MCGUIGAN, BRUCE 1,000.00 77,511.61 78,511.61 MCKAY, BRENDA 5,927.91 126,107.84 132,035.75 MCKINNON, SHERRI - 91,598.45 91,598.45 MCLAREN, RHONDA 392.93 95,415.20 95,808.13 MCLAY, ROBIN 10,799.53 87,967.77 98,767.30 MCLEAN, DOUG - 78,080.82 78,080.82 MCLIN, ELIZABETH 3,297.28 87,221.47 90,518.75 MCVEIGH, COLLEEN 9,046.00 72,455.32 81,501.32 MCWHIRTER, JOY - 91,998.45 91,998.45 MEIJER DREES, LAURIE 2,412.17 110,796.81 113,208.98 MERNER, JENNIFER 1,000.00 90,683.71 91,683.71 METCALF, BARBARA 2,018.15 88,814.25 90,832.40

17 Total Salary & Total Employee Employee Employee Name Employee Expenses Salaries Expenses MILLARD, LORNA$ 1,000.00 $ 90,683.71 $ 91,683.71 MIZUNO, RITA - 91,598.45 91,598.45 MOHABEER, RAVINDRA 1,135.52 91,441.71 92,577.23 MOLL, RACHEL 5,177.52 94,948.70 100,126.22 MOLONEY, MARY ANNE 5,836.17 96,870.55 102,706.72 MORESIDE, SANDRA - 91,598.45 91,598.45 MORGAN, JOHN 3,756.36 103,850.45 107,606.81 MOTTERSHEAD, PAUL 13,154.24 106,728.21 119,882.45 MUSTAFA, SAMEER 2,935.36 96,400.38 99,335.74 NACHTSHEIM, SUZY 350.00 91,598.45 91,948.45 NAESCHKE, RITA - 80,407.80 80,407.80 NEILSON, LINDA 1,000.00 84,313.31 85,313.31 NELSON, BRANDON 3,395.01 71,635.20 75,030.21 NETHERTON, ALEXANDER 1,735.87 91,820.71 93,556.58 NG, PATRICK 1,000.00 113,026.26 114,026.26 NICOL, JEFFREY 1,000.00 107,999.74 108,999.74 NILSON, RALPH 68,131.57 216,842.38 284,973.95 NILSON, SUZANNE 777.70 90,936.38 91,714.08 NKWETA, ZAA 55,286.70 66,023.46 121,310.16 NOAKES, DON 5,767.45 125,701.35 131,468.80 NOHR, LARRY 962.63 95,034.34 95,996.97 NOLAN, DAVID 6,045.64 91,508.11 97,553.75 NOYON, MARK 3,564.36 95,384.92 98,949.28 O'CONNOR, MAUREEN 1,947.21 90,683.71 92,630.92 OKUN, MAUREEN 1,034.00 92,957.71 93,991.71 ONCESCU, JACKIE 3,881.41 106,625.87 110,507.28 O'NEILL, MARY 2,489.85 93,168.70 95,658.55 O'NEILL, MELANIE 1,000.00 100,537.71 101,537.71 O'SHEA, MICHAEL 1,000.00 96,361.86 97,361.86 O'TOOLE, SHAWN 1,565.56 90,683.71 92,249.27 PAGE, NANCY 1,000.00 91,062.71 92,062.71 PALM, JUDY - 107,591.13 107,591.13 PAPROSKI, DARREN 8,536.36 150,767.98 159,304.34 PASTRO, HEATHER 5,613.45 90,683.70 96,297.15 PATERSON, DAVID 9,250.94 79,355.76 88,606.70 PATOLA, ELIZABETH 595.20 74,688.78 75,283.98 PATTERSON, GAY 165.36 112,340.72 112,506.08 PATTERSON, LYNDA 1,055.12 90,683.71 91,738.83 PEARCE, BROOK 6,246.30 79,104.89 85,351.19 PELLEY, STEPHEN 1,158.54 92,566.63 93,725.17

18 Total Salary & Total Employee Employee Employee Name Employee Expenses Salaries Expenses PENNER, RAYMOND$ 1,242.24 $ 92,110.67 $ 93,352.91 PEPPER-SMITH, ROBERT 1,000.00 92,199.70 93,199.70 PEREZA ROLLS, TINA 595.20 90,683.71 91,278.91 PEVEC, ALEXANDER 6,757.96 111,312.24 118,070.20 PHIPPS, ART 3,530.50 72,951.98 76,482.48 PICHE, MARIE 1,474.10 99,312.08 100,786.18 PIKE, GRAHAM 34,627.96 127,003.51 161,631.47 POLSON, JANETTE 1,618.61 78,588.75 80,207.36 POTTER, LEON 3,391.57 92,279.70 95,671.27 PREDYK, JOHN 3,342.03 97,804.59 101,146.62 PRICE, COLLEEN 2,648.60 85,326.47 87,975.07 PRIESTMAN, SCOTT 1,525.00 75,986.36 77,511.36 PRUESSE, GARA 2,233.62 94,852.71 97,086.33 PUGH, GLEN 1,000.00 100,066.52 101,066.52 PURSE, STEVEN 2,921.59 102,001.12 104,922.71 PUSHOR, DARYL - 81,586.27 81,586.27 PUTZ, DON 1,160.25 93,769.93 94,930.18 PYNN, DANA - 86,675.03 86,675.03 RAMEY, CAROL 356.70 90,135.37 90,492.07 RANDALL, CARLEIGH 7,372.03 81,930.31 89,302.34 RASMUSSEN, LEIF 2,943.75 85,777.59 88,721.34 READ, MICHAEL 1,000.00 95,192.31 96,192.31 REED, KATHLEEN 1,681.60 94,825.28 96,506.88 REIMER, BRAD 2,228.05 91,315.38 93,543.43 REMBOLD, DIANE 2,159.92 87,281.09 89,441.01 RICHARDS, MARY ANN 1,000.00 91,594.11 92,594.11 RIEDEL, MARIAN 1,922.92 90,683.71 92,606.63 RIGGAN, ROBERT - 90,683.71 90,683.71 ROBERSON, BILL 1,419.64 90,683.71 92,103.35 ROBERTSON, TONY 1,000.00 96,368.71 97,368.71 ROBICHAUD, JEAN-GUY 8,143.18 97,126.71 105,269.89 ROBINSON, DAVID 1,116.00 93,103.23 94,219.23 ROBINSON, LYNDA 5,373.23 79,683.90 85,057.13 RODEN, MARIANNE 407.56 91,598.45 92,006.01 ROELANTS, DOMINIQUE 181.41 90,683.71 90,865.12 ROLLISON, LYNN 3,372.90 96,231.71 99,604.61 ROLLWAGEN, KATHARINE 2,565.55 78,174.00 80,739.55 ROSE, LEANNE 2,393.60 84,280.11 86,673.71 RUSSELL, BONITA 3,383.73 163,733.46 167,117.19 RUSSELL, SPENCER 1,000.00 95,122.38 96,122.38

19 Total Salary & Total Employee Employee Employee Name Employee Expenses Salaries Expenses RUZESKY, JAY$ 2,326.52 $ 92,199.70 $ 94,526.22 SACKEY, HARRY 1,534.31 120,304.00 121,838.31 SANDERS, SUSAN 1,000.00 101,120.27 102,120.27 SANRUD, HEATHER 2,667.08 90,683.70 93,350.78 SCHELL, CHARLES 958.69 113,381.83 114,340.52 SCHROEDER, JOANNE 1,501.38 87,787.65 89,289.03 SCHULTZ, DEANNE 1,000.00 90,683.71 91,683.71 SCOW, SYLVIA 9,006.48 74,767.84 83,774.32 SEINEN, ALBERT 1,792.50 90,684.23 92,476.73 SERJEANT, BETTY - 79,997.66 79,997.66 SHARDLOW, SUE - 91,598.45 91,598.45 SHARPE, KIM 1,600.95 78,588.75 80,189.70 SHAW, PAM 2,917.85 91,820.71 94,738.56 SHEA, LINDA 1,945.95 90,683.71 92,629.66 SHEDLETZKY, FAYE 423.80 79,482.36 79,906.16 SHORE, DEBBIE 5,687.00 91,598.45 97,285.45 SIFTON, DANIEL 2,296.56 90,683.71 92,980.27 SIMONS, DANIEL 823.24 79,236.57 80,059.81 SINCLAIR, JANET 6,678.21 93,277.23 99,955.44 SITTER, RON 4,539.00 108,849.46 113,388.46 SKIPSEY, JOE 1,267.34 91,598.45 92,865.79 SLOCUM, JOANNE 3,196.02 85,018.59 88,214.61 SLONOWSKY, DEAN 829.90 93,509.85 94,339.75 SMILSKI, ANDREA 4,232.74 120,137.60 124,370.34 SMILSKI, DEBRA 162.24 93,933.83 94,096.07 SMITH, ELFIE 9,779.85 98,972.44 108,752.29 SMITH, KEITH 1,000.00 94,803.21 95,803.21 SMITH, TONI 1,000.00 90,683.70 91,683.70 SNOW, KATHRYN 5,707.70 76,758.99 82,466.69 SPEED, ANDREW 15,739.48 105,986.09 121,725.57 SPEIGHT, PAMELA 1,131.92 97,884.71 99,016.63 SPENCE, CATHRYN 1,000.00 74,100.35 75,100.35 STAJIC, JANINA 4,740.04 91,270.29 96,010.33 STANLEY, MARNI 1,600.00 93,888.86 95,488.86 STASIUK, MARY 1,559.55 90,683.71 92,243.26 STEEL, MICHELLE 1,574.92 90,683.71 92,258.63 STEEN, GLYNIS 4,477.76 124,593.44 129,071.20 STEPHENS, MELISSA 1,019.24 81,515.39 82,534.63 STERN, LOUISE 6,564.22 90,683.70 97,247.92 STETAR, DOUG 4,199.32 91,820.70 96,020.02

20 Total Salary & Total Employee Employee Employee Name Employee Expenses Salaries Expenses STEVENSON, MAXWELL$ 2,077.31 $ 80,757.67 $ 82,834.98 STEWART, CHARLENE 626.35 91,598.45 92,224.80 STEWART, JANICE 1,671.20 90,683.71 92,354.91 STOKES, TIM 6,083.43 88,602.67 94,686.10 STUART, CAROL 27,890.02 136,312.09 164,202.11 STYLES, LAUREEN 4,184.44 90,873.21 95,057.65 SUFRIN, DAVID 2,433.12 75,002.16 77,435.28 SULLY, BRENDA 1,000.00 107,271.90 108,271.90 SUNDBY, LESLIE 6,182.19 90,683.71 96,865.90 SUSKI, LAURA 1,000.00 91,062.70 92,062.70 SUTTON, JASON 728.55 87,263.98 87,992.53 SWARTS, JACOBUS 1,976.52 91,062.71 93,039.23 TABERNER, NEIL 188.99 76,059.11 76,248.10 TAKISHITA, FAITH 1,000.00 90,683.71 91,683.71 TALBOT, IAN - 86,228.99 86,228.99 TAPLAY, ALISON 7,648.08 92,105.37 99,753.45 TAYLOR, DREW 1,790.55 95,534.62 97,325.17 TAYLOR, KAREN - 82,426.02 82,426.02 TEREPOCKI, TRACEY 4,660.57 97,822.12 102,482.69 TESSIER, NATTALLE 6,299.25 78,614.50 84,913.75 THIBAULT, PENNY 1,444.69 78,419.96 79,864.65 THIBODEAU, MIKE 3,733.96 75,048.46 78,782.42 THIESSEN, ILKA 5,272.89 109,521.07 114,793.96 THOMAS, BARBARA 1,282.28 103,136.42 104,418.70 THOMPSON, DAWN 1,000.00 85,082.51 86,082.51 TILLEY, CARLA 1,595.20 91,541.37 93,136.57 TOAL, SEAN 6,373.27 103,257.28 109,630.55 TONG, CHRISTINE 1,000.00 90,330.25 91,330.25 TORKKO, DEBORAH 1,000.00 90,683.71 91,683.71 TOWNSEND, MELISSA 3,490.02 76,758.99 80,249.01 TROOST, WILLIAM - 86,240.50 86,240.50 TSISSEREV, ALEX 1,000.00 90,683.71 91,683.71 TURNER, CHRIS 7,781.36 78,743.46 86,524.82 TURTON, AMINA 1,661.44 78,325.23 79,986.67 TWYNAM, DAVE 1,566.65 137,790.35 139,357.00 UPPAL, MANJEET 2,653.60 91,441.71 94,095.31 VAILLANCOURT, DAN 1,488.24 73,837.63 75,325.87 VALLEE, MICHEL 6,418.81 91,441.70 97,860.51 VANDERSLUIS, DAN 6,629.25 140,603.83 147,233.08 VAUGEOIS, NICOLE 22,147.96 121,824.82 143,972.78

21 Total Salary & Total Employee Employee Employee Name Employee Expenses Salaries Expenses VIEIRA, ANA$ 2,365.45 $ 73,038.76 $ 75,404.21 VINDEN, DEAN - 78,359.83 78,359.83 VINDEN, SALLY 13,549.26 80,604.10 94,153.36 WAGNER, WENDY 2,054.83 101,623.46 103,678.29 WAHL, SHARON 11,332.65 102,919.29 114,251.94 WALSH, PETER - 90,683.71 90,683.71 WARSH, CHERYL 13,203.01 90,683.71 103,886.72 WATKINS, PAUL 1,885.04 75,365.36 77,250.40 WEAVER, DUANE 924.29 94,336.71 95,261.00 WEBB, PAUL 1,000.00 86,425.26 87,425.26 WEBBER, BRYAN 5,763.06 103,440.18 109,203.24 WEBER, KATHRYN - 90,543.43 90,543.43 WEBSTER, MARK 603.75 84,323.20 84,926.95 WEIGHILL, AGGIE 16,332.90 100,457.57 116,790.47 WEIR, WARREN 9,347.97 126,247.74 135,595.71 WEISSFLOCH, ALEXANDRA 1,750.00 93,512.03 95,262.03 WENDLING, MARY 2,232.34 91,152.54 93,384.88 WESSELS, DAVID 716.79 97,068.95 97,785.74 WHITE, ALI 5,129.24 82,377.67 87,506.91 WHITE, DOUGLAS 1,080.00 99,911.94 100,991.94 WHITE, STEPHANIE 7,462.24 96,613.74 104,075.98 WHITEHOUSE, IAN 4,300.88 122,933.39 127,234.27 WHITELEY, SARAH 1,145.14 83,663.97 84,809.11 WILKINSON, JIM 1,564.63 90,683.71 92,248.34 WILLIAMS, ALANNA 1,000.00 97,126.71 98,126.71 WILLIAMS, MARK 1,607.25 90,498.37 92,105.62 WILLIS, ROBERT 1,186.60 106,078.45 107,265.05 WILSON, HANNAH 1,631.67 97,479.48 99,111.15 WITTY, DAVID 16,185.26 172,990.23 189,175.49 WOODWARD, DAVID 9,316.57 78,614.50 87,931.07 WOYCHUK, JOHN 5,571.89 78,614.50 84,186.39 WYTENBROEK, LYNN 4,621.79 95,852.70 100,474.49 YOUNG, TRICIA 69.00 84,916.65 84,985.65 YOUNG, WENDY 5,562.27 139,756.65 145,318.92 ZANDBERGEN, PAUL - 92,098.37 92,098.37 ZANDEE, TRACY 2,100.06 84,709.29 86,809.35

TOTAL SALARIES & EMPLOYEE EXPENSES $75,000 OR MORE $ 1,832,294.30 $ 46,692,831.77 $ 48,525,126.07

22 Total Salary & Total Employee Employee Employee Name Employee Expenses Salaries Expenses TOTAL SALARIES & EMPLOYEE EXPENSES UNDER $75,000 $ 908,195.76 $ 37,427,307.34 $ 38,335,503.10

GRAND TOTAL: SALARIES & EMPLOYEE EXPENSES $ 2,740,490.06 $ 84,120,139.11 $ 86,860,629.17

23 STATEMENT OF FINANCIAL INFORMATION PREPARED UNDER THE FINANCIAL INFORMATION ACT FOR THE YEAR ENDED MARCH 31, 2018

SCHEDULE OF SUPPLIERS OF GOODS AND SERVICES Prepared Under Financial Information Regulation, Schedule 1, Section 7

Suppliers of Goods and Services Over $25,000

Vendor Name Expenses

6742505 CANADA CORP$ 87,510.53 682770 ONTARIO INC. O/A ITC SYSTEMS 27,708.95 ABE AVENDER 27,761.04 ACCESS COPYRIGHT 73,717.74 ACER LANDSCAPING LTD. 125,240.87 AIR CANADA 43,814.25 AJ FORSYTH (DIV OF RUSSEL METALS INC.) 54,734.44 ALFA LAVAL INC 272,720.00 ALLSTREAM BUSINESS INC. 32,193.12 ALSCO CANADA CORP 116,203.66 AMAZON 77,461.39 APPLE CANADA INC. 51,064.01 ARCHIE JOHNSTONE PLUMBING & HEATING LTD 72,870.03 ART'S PLUMBING & HEATING LTD 47,777.54 ATCO STRUCTURES & LOGISTICS LTD. 27,780.48 AURORA ROOFING LTD. 712,806.15 AYVA EDUCATIONAL SOLUTIONS LTD. 51,086.35 B&F MANUFACTURING LTD 44,688.00 B.C. FERRY CORPORATION 60,452.76 BC HYDRO & POWER AUTHORITY 1,398,151.50 BCNET 416,985.01 BELFOR (CANADA) INC. 49,299.05 BELL CANADA 27,735.80 BEST WESTERN 27,324.71 BLACK BOX NETWORK SERVICES 44,121.68

24 Vendor Name Expenses BLAKE, CASSELS & GRAYDON LLP$ 36,079.68 BLOOMBERG FINANCE LP 36,942.71 BROADVIEW PRESS 32,482.78 BRUCE CAMPBELL 32,529.00 BULLET SECURITY 170,870.25 C2F INC 32,617.45 CALEDONIA FIRE PROTECTION LTD 71,638.31 CAMOSUN COLLEGE 86,693.85 CAN-ACHIEVE EDUCATION CONSULTANTS LTD. 49,724.25 CANADIAN EDUCATION PATHWAYS LTD. 99,408.55 CANADIAN RESEARCH KNOWLEDGE NETWORK 495,497.67 CANAM CONSULTANTS LTD. 75,375.11 CHERNOFF THOMPSON ARCHITECTS 549,907.34 CHEVRON CANADA LIMITED 46,020.26 CITY OF NANAIMO 406,401.57 CITY OF PARKSVILLE 49,962.74 CLIMATE CONSULT (T) LTD 35,716.82 COAST BASTION HOTEL 53,770.78 COCA-COLA REFRESHMENTS 134,532.05 COGNISCO TECHNOLOGIES INC 43,596.00 COLLEGES AND INSTITUTES CANADA 36,956.00 COMMUNITY CAFE & CATERING CO 42,671.73 COMOX VALLEY NISSAN 38,128.96 CONCISE SYSTEMS CORPORATION 61,011.12 COPCAN CIVIL LTD. 96,965.48 CORAL CANADA WIDE LTD 105,193.78 COUNCIL OF PRAIRIE AND PACIFIC UNIVERSITY LIBRARIES 99,029.66 COWICHAN TRIBES 272,792.73 CREATIVE CONSORTIUM INC. 135,194.14 CVI JOBS / PARKSVILLE CAREER CENTRE 40,000.00 DATA A LA CARTE CONSULTING INC. 26,967.30 DAVIES PARK & ASSOCIATES (VANCOUVER) INC. 48,755.24 DEVLIN ELECTRIC SIGN CO. INC. 45,292.80 DUBWEAR CLOTHING CO 62,269.47 DYNACON CONTRACTING 70,454.56 EBSCO CANADA LTD 34,830.08 EDITIONS DU RENOUVEAU PEDAGOGIQUE INC 25,901.85 EDUGLOBAL CHINA LIMITED 84,955.15 EDWISE INTERNATIONAL L.L.P. 50,581.00 EMSI 40,960.45 ESC AUTOMATION INC 112,272.29

25 Vendor Name Expenses F & M INSTALLATIONS LTD.$ 455,789.90 FALCON ENGINEERING LTD. 104,616.16 FISHER SCIENTIFIC 74,729.99 FLIGHT CENTRE 50,528.70 FLORENCE AND ABROAD 26,086.80 FOLIOT FURNITURE 38,171.27 FOLLETT HIGHER EDUCATION GROUP 28,603.92 FOOTPRINTS SECURITY PATROL LTD 60,683.54 FORTISBC - NATURAL GAS 335,504.23 FOTOPRINT 26,600.65 FOUNDATION FOR EDUCATIONAL EXCHANGE BETWEEN CANADA & 31,512.50 THE UNITED STATES OF AMERICA GABRIEL ROSS CONTRACT 64,324.07 GARDAWORLD CASH SERVICES CANADA CORPORATION 31,827.97 GASPARD LP 32,827.16 GLACIER COMMUNICATIONS INC. 49,039.20 GOOGLE 57,887.54 GORDON FOOD SERVICE CAN. LTD 800,622.68 GRAND & TOY LTD. 291,105.55 GRAPHIC OFFICE INTERIORS LTD 275,462.14 GREAT BEAR INITIATIVE SOCIETY 269,208.00 GREGG DISTRIBUTORS 44,538.22 GROK GLOBAL SERVICES 102,159.76 GUARD.ME INTERNATIONAL INSURANCE 83,595.60 GUILLEVIN INTERNATIONAL CO 29,944.70 H B TRAVEL CORPORATION 51,320.75 HAARSMA WASTE INNOVATIONS INC. 75,528.83 HARBOUR ELECTRICAL SERVICES LTD. 60,654.30 HARRIS & COMPANY 356,124.89 HAZELWOOD CONSTRUCTION SERVICES INC. 555,268.03 HB ELECTRIC LTD 25,410.22 HEILTSUK TRIBAL COUNCIL 45,475.00 HENRY SCHEIN CANADA INC 38,052.47 HEROLD ENGINEERING LTD 101,072.49 HOMEWOOD HEALTH INC. 67,335.89 HOULE ELECTRIC LIMITED 98,455.10 IDP EDUCATION PTY LTD 69,559.34 INNOVATIONS IN BUSINESS SYSTEMS, INC. 77,979.19 INSURANCE CORPORATION OF BRITISH COLUMBIA (ICBC) 82,737.00 INSURANCE INSTITUTE OF BC 7,746.20 ISLAND HEALTH 33,184.00

26 Vendor Name Expenses ISLAND IRRIGATION, LANDSCAPING & HYDROSEEDING$ 60,635.74 ISLAND SAVINGS INSURANCE SERVICES LTD. 126,492.00 ITHAKA 33,622.98 JJL INTERNATIONAL EDUCATION EXCHANGE PROMOTION 37,226.50 JOHN WILEY & SONS CANADA LTD 161,760.27 KAO CANADA INC. 33,369.09 KNAPPETT PROJECTS INC 640,549.82 KONE INC 99,295.28 KPL JAMES ARCHITECTURE 56,662.80 KPMG LLP 69,163.50 LAFARGE CANADA INC. 167,874.78 LAIRD WHEATON CHEVROLET BUICK GMC CADILLAC 52,882.96 LANARC 2015 CONSULTANTS LTD 44,089.00 LAROSE LAW 27,391.49 LEDCOR CONSTRUCTION LIMITED 33,692,483.11 LEVERTON & ASSOCIATES LTD. 45,228.07 LEWKOWICH ENGINEERING ASSOCIATES LTD 110,104.09 LIL'WAT NATION 107,255.00 LINKEDIN IRELAND UNLIMITED COMPANY 47,918.49 LITERACY CENTRAL VANCOUVER ISLAND 75,000.00 LITERACY NOW COWICHAN SOCIETY 30,000.00 LOGIN CANADA 134,676.30 LONG VIEW SYSTEMS 358,878.41 LOOMIS EXPRESS 26,925.00 LYNEAR THINKING STRATEGY & COMMUNICATIONS LTD 29,725.20 MAPLE LEAF EDUCONNECT PVT. 80,984.00 MARSH CANADA LIMITED 41,399.04 MATRIX VIDEO COMMUNICATION CORPORATION 117,144.88 MATT KUZMINSKI 30,505.48 MCCARTAN CONTRACTING 57,508.92 MCGRAW-HILL RYERSON LTD 124,828.64 MICROSERVE 660,280.27 MINISTER OF FINANCE 265,113.70 MNP LLP 367,585.27 MODERN TOOL LTD. 35,280.00 MONERIS SOLUTIONS 392,985.93 MONK OFFICE SUPPLY LTD 99,042.89 MOUNT BENSON MECHANICAL (1991) 25,860.78 MPS 42,095.52 N & N CHOPRA CONSULTANTS PVT. LTD. 25,415.00 NANAIMO GOLF CLUB 26,355.48

27 Vendor Name Expenses NANAIMO MINUTE MEN$ 33,641.79 NANWAKOLAS COUNCIL 132,839.00 NEBRASKA BOOK COMPANY 92,698.38 NELSON EDUCATION LTD 404,329.74 NEOPOST CANADA LTD. 123,772.37 NORTH ISLAND COLLEGE 454,179.46 NUU-CHAH-NULTH TRIBAL COUNCIL 46,865.00 OKANAGAN GEOTHERMAL LTD 57,243.12 OLYMPUS CANADA INC 25,503.74 ORACLE CANADA ULC 145,690.82 ORGANIZATION FOR WORLDWIDE EDUCATION 312,761.48 ORIAC 26,921.70 OSBORNE ELECTRO-MECHANICS LTD. 38,142.12 OXFORD UNIVERSITY PRESS 141,074.41 PACIFIC PLUMBING & HEATING 66,415.71 PACWEST 26,953.70 PANGLOBAL TRAINING SYSTEMS LTD. 43,472.96 PANTHEON SYSTEMS INC. 26,796.52 PARKLAND REFINING (B.C.) LTD 30,167.10 PAYLESS BUILDING MAINTENANCE LTD 922,619.34 PEARSON EDUCATION CANADA 409,881.24 PENELAKUT TRIBES 50,902.50 PENGUIN RANDOM HOUSE CANADA LIMITED 30,841.02 PERKINS+WILL CANADA ARCHITECTS CO. 1,548,938.47 POST-SECONDARY EMPLOYERS' ASSOCIATION 25,040.97 POWELL RIVER EMPLOYMENT PROGRAM SOCIETY 36,796.80 POWELL RIVER MAINTENANCE AND JANITORIAL 78,260.08 PRAXAIR DISTRIBUTION 180,210.26 PRECISION DECORATING LTD. 60,144.00 PRICE'S ALARM SYSTEMS LTD 32,737.99 PROQUEST LLC 165,660.93 PROSCI CANADA, ULC 83,408.98 PROVINCE OF BRITISH COLUMBIA 83,910.17 PUROLATOR COURIER LTD 26,529.06 PUTRENKO VIKTOR VALENTINOVICH 25,089.13 QUALITY FOODS 56,079.13 RESTEL HOTELS LTD. 27,583.35 RICOH CANADA INC. 50,646.82 ROGERS WIRELESS INC 173,766.90 SALT SPRING COFFEE COMPANY 65,509.91 SANDALE UTILITY PRODUCTS 78,398.33

28 Vendor Name Expenses SCALAR DECISIONS INC.$ 135,681.23 SECURCO SERVICES INC 108,437.65 SFU - BC ELECTRONIC LIBRARY 213,622.22 SHANDONG INSTITUTE OF BUSINESS 108,911.09 SHARPER MARKETING INC 40,386.92 SHAYNA WORTHINGTON 39,095.00 SHELL ENERGY NORTH AMERICA (CANADA) INC. 124,396.65 SIMON FRASER UNIVERSITY 26,523.40 SINO-CA EDUCATION AND TRAINING DEVELOPMENT INC. 29,532.65 SIRSI/DYNIX 61,410.19 SMITH TRANSPORTATION LTD 29,264.87 SMITHS MEDICAL CANADA LIMITED 41,278.72 SNOW CAP ENTERPRISES LTD 73,592.59 SNUNEYMUXW FIRST NATION 83,041.00 SOFTCHOICE LP 36,842.21 SPICERS CANADA ULC 46,878.66 SSA QUANTITY SURVEYORS LTD. 40,294.00 STAPLES 29,253.64 STAPLES BUSINESS ADVANTAGE CANADA 55,023.81 STARBUCKS COFFEE CANADA 632,956.82 STARGARDEN CORPORATION 38,287.50 STZ'UMINUS FIRST NATION 134,136.04 SYDNEY R. STONE & CO. LIMITED 36,888.18 SYNNEX CANADA 31,041.61 SYSCO VICTORIA INC 173,314.65 TEAM SALES 39,525.93 TELUS COMMUNICATIONS 195,395.83 TENLINE SALES LTD 31,897.26 TESSERAC USER EXPERIENCE DESIGN LTD 36,211.25 TEVAN ENTERPRISES LTD 33,952.96 THE WALRUS FOUNDATION 50,000.00 TIDALWEST BUILDING PROJECTS LTD. 40,000.00 TIGH-NA-MARA RESORT 28,835.70 TILLICUM LELUM ABORIGINAL FRIENDSHIP CENTRE 35,800.00 TLA'AMIN NATION 32,062.27 TONY BRYCE 25,912.65 TYCO INTEGRATED FIRE & SECURITY CANADA, INC. 61,657.28 UAP/NAPA 115,271.74 UNIT4 BUSINESS SOFTWARE CORPORATION 448,480.60 UNIT4 EDUCATION SOLUTIONS INC. 681,582.45 UNIVERSITIES CANADA 59,381.50

29 Vendor Name Expenses UNIVERSITY OF HERTFORDSHIRE$ 125,940.18 UNIVERSITY OF THE FRASER VALLEY 63,773.00 UNIVERSITY OF TORONTO PRESS INC 35,502.66 UNIVERSITY OF VICTORIA 37,722.94 VANCOUVER ISLAND CONFERENCE CENTRE 86,761.02 VIU HOCKEY ASSOCIATION 39,750.00 VIU STUDENTS' UNION 32,040.09 VIU STUDENTS' UNION - WUSC COMMITTEE 32,365.00 VIUFA - VANCOUVER ISLAND UNIVERSITY FACULTY ASSOC 96,579.57 WESTCOAST ROOF INSPECTION 54,747.00 WESTERN FINANCIAL GROUP 26,953.17 WESTERRA EQUIPMENT LP 78,977.43 WESTPARK PARKING SERVICES (2015) 675,200.21 WILD ROVER ENTERPRISES LTD. 43,795.50 WINDSOR PLYWOOD LTD 53,480.00

Total: Suppliers of Goods and Services over $25,000$ 64,027,100.64

Total for Suppliers of Goods and Services under $25,000$ 9,082,519.20

Total for Suppliers of Goods and Services$ 73,109,619.84

Total Paid to Receiver General For Canada 4,066,660.10 Total Paid for Other Fringe Benefits 14,545,528.26

Total Schedule A: Suppliers of Goods and Services$ 91,721,808.20

30 STATEMENT OF FINANCIAL INFORMATION PREPARED UNDER THE FINANCIAL INFORMATION ACT FOR THE YEAR ENDED MARCH 31, 2018

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

Total per Schedule of Employee Remuneration and Expenses$ 86,860,629 Total per Schedule of Board Expenses 20,069 Total per Schedule of Suppliers of Goods and Services 91,721,808

Total per Financial Information Act Submission $ 178,602,506

Capital fund amortization not included in Vendor file 8,696,033 Capital fund expenditures not included in Statement of Operations (44,564,725) Operating capital expenditures not included in Statement of Operations (415,247) Consolidation adjustments - Related Entities 3,744,501 GST rebate (693,241) Other Adjustments 529,964 $ 145,899,791

Total per Statement of Operations, Consolidated Financial Statements $ 145,899,791

Appendix 1

VANCOUVER ISLAND UNIVERSITY

CONSOLIDATED FINANCIAL STATEMENTS

MARCH 31, 2018

KPMG LLP St. Andrew’s Square II 800-730 View Street Victoria BC V8W 3Y7 Canada Telephone 250-480-3500 Fax 250-480-3539

INDEPENDENT AUDITORS’ REPORT

To the Board of Governors of Vancouver Island University and the Minister of Advanced Education, Skills and Training

We have audited the accompanying consolidated financial statements of Vancouver Island University, which comprise the consolidated statement of financial position as at March 31, 2018, the consolidated statements of operations and accumulated operating surplus, changes in net debt, cash flows and remeasurement gains and losses for the year then ended, and notes, comprising a summary of significant accounting policies and other explanatory information.

Management's Responsibility for the Consolidated Financial Statements Management is responsible for the preparation of these consolidated financial statements in accordance with the financial reporting provisions of Section 23.1 of the Budget Transparency and Accountability Act of the Province of British Columbia, and for such internal control as management determines is necessary to enable the preparation of consolidated 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 consolidated financial statements based on our audit. We conducted our audit in accordance with Canadian generally accepted auditing standards. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial statements. The procedures selected depend on our judgment, including the assessment of the risks of material misstatement of the consolidated financial statements, whether due to fraud or error. In making those risk assessments, we consider internal control relevant to the entity's preparation of the consolidated 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 consolidated financial statements.

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. Vancouver Island University Page 2

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the consolidated financial statements of Vancouver Island University as at March 31, 2018, are prepared, in all material respects, in accordance with the financial reporting provisions of Section 23.1 of the Budget Transparency and Accountability Act of the Province of British Columbia. Emphasis of Matter Without modifying our opinion, we draw attention to note 1(a) to the consolidated financial statements which describes the basis of accounting and the significant differences between such basis of accounting and Canadian public sector accounting standards.

Chartered Professional Accountants

Victoria, Canada May 24, 2018

VANCOUVER ISLAND UNIVERSITY Consolidated Statement of Operations and Accumulated Operating Surplus As at March 31, 2018, with comparative information for March 31, 2017

Budget 2018 2017 (note 1(k))

Revenue Province of British Columbia grants $ 58,659,968 $ 61,247,182 $ 61,699,256 Government of Canada grants 864,292 748,725 898,605 Other grants and contracts 2,413,942 4,008,320 2,682,192 Tuition and student fees 61,330,392 59,045,835 56,039,529 Sales of goods and services 8,846,882 8,750,275 8,275,520 Rental income 2,816,950 2,871,363 2,721,815 Revenue recognized from deferred capital contributions (note 9) 5,000,000 5,285,496 5,284,173 Investment income 1,320,502 1,712,809 1,562,859 Gifts, grants and bequests 1,479,200 1,460,976 1,575,564 Loss on investments - (8,127) (19,256) Gain on sale of tangible capital assets - 179,315 - Other 966,463 1,356,341 1,475,117 143,698,591 146,658,510 142,195,374

Expenses (note 15) Instruction and student support 131,447,473 133,081,589 130,905,889 Ancillary 12,251,118 12,818,202 12,429,894 143,698,591 145,899,791 143,335,783

Annual operating surplus (deficit) - 758,719 (1,140,409)

Endowment contributions (note 14) - 682,173 391,491

Annual surplus (deficit) - 1,440,892 (748,918)

Accumulated operating surplus, beginning of year 76,483,271 76,483,271 77,232,189

Accumulated operating surplus, end of year $ 76,483,271 $ 77,924,163 $ 76,483,271

See accompanying notes to consolidated financial statements.

2 VANCOUVER ISLAND UNIVERSITY

Consolidated Statement of Changes in Net Debt As at March 31, 2018, with comparative information for March 31, 2017

Budget 2018 2017 (note 1(k))

Annual surplus (deficit) $ - $ 1,440,892 $ (748,918)

Acquisition of tangible capital assets - (44,201,609) (9,359,648) Amortization of tangible capital assets 8,500,000 8,696,033 8,655,729 Proceeds on sale of tangible capital assets - 703,970 - Gain on sale of tangible capital assets - (179,315) - 8,500,000 (34,980,921) (703,919)

Acquisition of prepaid expense - (36,127) 27,306 Net restricted endowment contributions - (685,870) (392,469) Net effect of remeasurement gains - (287,367) 270,262 - (1,009,364) (94,901)

Increase in net debt 8,500,000 (34,549,393) (1,547,738)

Net debt, beginning of year (88,041,996) (88,041,996) (86,494,258)

Net debt, end of year $ (79,541,996) $ (122,591,389) $ (88,041,996)

See accompanying notes to consolidated financial statements.

3 VANCOUVER ISLAND UNIVERSITY Consolidated Statement of Cash Flows As at March 31, 2018, with comparative information for March 31, 2017

2018 2017

Cash provided by (used in): Operations: Annual operating surplus (deficit) $ 1,440,892 $ (748,918) Items not involving cash: Amortization of tangible capital assets 8,696,033 8,655,729 Revenue recognized from deferred capital contributions (5,285,496) (5,284,173) Change in employee future benefits 115,121 394,088 Change in non-cash operating working capital: Decrease in accounts receivable 48,989 737,039 Decrease (increase) in prepaid expenses (36,127) 27,306 Decrease (increase) in inventories for resale (39,835) 67,478 Increase in accounts payable and accrued liabilities 7,461,100 1,030,195 Increase (decrease) in deferred contributions 1,923,214 (779,115) Increase in deferred revenue 5,421,063 3,076,410 19,744,954 7,176,039

Capital activities: Cash used to acquire tangible capital assets (44,201,609) (9,359,648) Proceeds on sale of tangible capital assets 703,970 - (Gain) on sale of tangible capital assets (179,315) - (43,676,954) (9,359,648)

Financing activities: Received deferred capital contributions 35,650,496 9,276,699

Investing activities: Net purchase of investments (2,840,738) (7,188,713)

Net change in cash 8,877,758 (95,623)

Cash and cash equivalents, beginning of year 27,405,809 27,501,432

Cash and cash equivalents, end of year $ 36,283,567 $ 27,405,809

Cash is comprised of cash and cash equivalents.

See accompanying notes to consolidated financial statements.

4 VANCOUVER ISLAND UNIVERSITY Consolidated Statement of Remeasurement Gains and Losses As at March 31, 2018, with comparative information for March 31, 2017

2018 2017

Unrealized gains (losses) attributed to: Long term bonds $ (320,752) $ 12,156 Equity investments 33,306 253,932 (287,446) 266,088

Amounts reclassified to the statement of operations: Equity investments 79 (826) Foreign currency translation - 5,000 79 4,174

Net remeasurement gains (losses) for the year (287,367) 270,262

Accumulated remeasurement gains, beginning of year 872,253 601,991

Accumulated remeasurement gains, end of year $ 584,886 $ 872,253

See accompanying notes to consolidated financial statements.

5 VANCOUVER ISLAND UNIVERSITY Notes to Consolidated Financial Statements

Year ended March 31, 2018

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

1. Significant accounting policies

These consolidated financial statements are prepared in accordance with the following principles:

(a) Basis of accounting

Budget Transparency and Accountability Act

These consolidated financial statements have been prepared in accordance with Section 23.1 of the Budget Transparency and Accountability Act of the Province of British Columbia supplemented by certain regulations (257/2010 and 198/2011) issued by the Province of British Columbia Treasury Board.

The Budget Transparency and Accountability Act requires that the consolidated financial statements be prepared in accordance with the set of standards and guidelines that comprise generally accepted accounting principles for senior governments in Canada, or if the Treasury Board makes a regulation, the set of standards and guidelines that comprise generally accepted accounting principles for senior governments in Canada as modified by the alternate standard or guideline or part thereof adopted in the regulation.

The issued regulations require all taxpayer supported organizations in the school, University, college and hospital sectors to adopt Canadian public sector accounting standards without any PS4200 elections, effective their first fiscal year commencing after January 1, 2012.

The regulations require that restricted contributions received or receivable are to be reported as revenue depending on the nature of the restrictions on the use of the funds by the contributors as follows:

(i) Contributions for the purpose of acquiring or developing a depreciable tangible capital asset or contributions in the form of a depreciable tangible capital asset are recorded and, referred to as deferred capital contributions, recognized in revenue at the same rate that amortization of the related tangible capital asset is recorded. The reduction of the deferred capital contributions and the recognition of the revenue are accounted for in the fiscal period during which the tangible capital asset is used to provide services.

(ii) Contributions restricted for specific purposes other than those for the acquisition or development of a depreciable tangible capital asset are recorded as deferred contributions and recognized in revenue in the year in which the stipulation or restriction on the contributions have been met.

For British Columbia taxpayer supported organizations, these contributions include government transfers and externally restricted contributions.

VANCOUVER ISLAND UNIVERSITY Notes to Consolidated Financial Statements

Year ended March 31, 2018

1. Significant accounting policies (continued)

(a) Basis of accounting (continued)

Public sector accounting standards

The accounting policy requirements under the Regulations are significantly different from the requirements of Canadian public sector accounting standards which require that:

(i) Government transfers, which do not contain a stipulation that creates a liability, be recognized as revenue by the recipient when approved by the transferor and certain eligibility criteria have been met, and

(ii) Externally restricted contributions be recognized as revenue in the period in which the resources are used for the purpose or purposes specified.

As a result, revenue recognized in the Consolidated Statement of Operations and certain related deferred capital contributions, would be recorded differently under Canadian public sector accounting standards.

(b) Basis of consolidation

The University has consolidated the assets, liabilities, revenues and expenses of all funds and controlled entities after the elimination of inter-entity transactions and balances. The consolidated financial statements include the accounts of the University, and its controlled entities, Vancouver Island University Foundation (the "Foundation"), The International High School at Vancouver Island University Association and The High School at Vancouver Island University Association – (collectively “the High Schools”), and Milner Gardens and Woodland Society (“Milner Gardens”).

The Foundation is a registered charity incorporated under the Society Act (British Columbia). The main purposes of the Foundation are fundraising in order to further the interests of the University and administering the University’s endowment funds.

The High Schools are registered charities incorporated under the Society Act (British Columbia). They jointly operate a private high school for local and international students. The High Schools’ fiscal year-end of June 30, 2017 have been consolidated into these financial statements. No material transactions or events have occurred between July 1, 2017 and March 31, 2018.

Milner Gardens manages donated funds and operates fundraising events specifically in support of Milner Gardens.

Revenue is recognized when amounts can be reasonably estimated and when collection is reasonably assured as follows:

Operating government grants with or without eligibility criteria stipulations are recognized when received or receivable. Government grants, containing stipulations as to their use, are recognized as revenue in the period the transfer is authorized and all eligibility criteria have been met, except when and to the extent that the transfer gives rise to an obligation and meets the definition of a liability.

VANCOUVER ISLAND UNIVERSITY Notes to Consolidated Financial Statements

Year ended March 31, 2018

1. Significant accounting policies (continued)

Externally restricted non-capital contributions are deferred and recognized as revenue in the period in which the related expenses are incurred.

Other unrestricted revenue, including student fees, interest, and sales of goods and services, are reported as revenue at the time the services or products are provided.

As discussed above, contributions restricted for the purpose of acquiring or developing a depreciable tangible capital asset are recorded as deferred capital contributions and amortized over the remaining useful life of the related capital assets on the same basis as the related cost.

Investment income includes interest recorded on an accrual basis and dividends recorded as declared and realized gains and losses on the sale of investments.

Endowment contributions are recognized in the statement of operations in the period in which they are received or earned. Investment income earned on externally restricted endowment contributions is deferred until used for the specific purpose.

Gifts-in-kind are only recorded if the University would have otherwise have paid for them. Gifts-in- kind are recorded at fair market value on the date of the donation or at a nominal value when fair value cannot be reasonably determined.

Unrestricted donations and grants are recorded as revenue when receivable if the amounts can be estimated and collection is reasonable assured. Pledges from donors are recorded when payment is received or when the transfer of property is complete.

Volunteers contribute service to assist the University in carrying out its mission. Such contributions of services are not recognized in these financial statements.

(d) Cash and cash equivalents

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

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

(f) Employee future benefits

The University and its employees make contributions to two multi-employer joint trustee plans. These plans are defined benefit plans, providing a pension on retirement based on the member’s age at retirement, length of service and highest earnings averaged over five years. Inflation adjustments are contingent upon available funding. As the assets and liabilities of the plans are not segregated by institution, the plans are accounted for as defined contribution plans and any contributions of the University to the plans are expensed as incurred.

VANCOUVER ISLAND UNIVERSITY Notes to Consolidated Financial Statements

Year ended March 31, 2018

1. Significant accounting policies (continued)

(f) Employee future benefits (continued)

Sick leave benefits and retirement severance benefits are also available to the University’s employees. The costs of these benefits are actuarially determined based on service and best estimates of retirement ages and expected future salary and wage increases. The obligation under these benefit plans are accrued based on projected benefits as the employees render services necessary to earn the future benefits. Actuarial gains and losses are amortized over the expected average remaining service life of the employees.

Vacation entitlements earned by employees for future use are valued at the fiscal year end and accrued as a liability.

(g) Non-financial assets

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

(i) Tangible capital assets

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

Asset Years

Buildings 5 - 40 Library books 10 Site Improvements 10 - 20 Computing equipment and software 5 Furniture and equipment 5 -10 Vehicles 5 Leasehold improvements Term of Lease

Work in progress is not amortized until the asset is available for productive use.

Land use rights are not recognized as assets in these financial statements.

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

VANCOUVER ISLAND UNIVERSITY Notes to Consolidated Financial Statements

Year ended March 31, 2018

1. Significant accounting policies (continued)

(h) Foreign currency translation

Transaction amounts denominated in foreign currencies are translated into their Canadian dollar equivalents at exchange rates prevailing at the transaction dates. Carrying values of monetary assets and liabilities denominated in a foreign currency are translated using the exchange rates at the Statement of Financial Position date. Any gain or loss resulting from a change in rates between the transaction date and Statement of Financial Position date is recognized in the Statement of Remeasurement Gains and Losses. In the period of settlement, the related cumulative remeasurement gain or loss is reversed in the Statement of Remeasurement Gains and Losses and the exchange gain or loss in relation to the exchange rate at the date of the item’s initial recognition is recognized in the Statement of Operations.

(i) Use of estimates

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

(j) Financial instruments

Financial instruments are classified into two categories: fair value or cost.

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

(ii) Cost category: Gains and losses are recognized in the Statement of Operations and Accumulated Surplus when the financial asset is derecognized due to disposal or impairment. (a) Accounts receivable and due from government/other government organizations are measured at amortized cost using the effective interest method. (b) Accounts payable and accrued liabilities are measured at amortized cost. Any gains, losses or interest expense is recorded on the Statement of Operations and Accumulated Surplus depending on the nature of the financial liability that gave rise to the gain, loss or expense.

VANCOUVER ISLAND UNIVERSITY Notes to Consolidated Financial Statements

Year ended March 31, 2018

1. Significant accounting policies (continued)

(k) Budget figures

Budget figures have been provided for comparative purposes and have been derived from the 2017- 2018 Consolidated Resource Plan approved by the Board of Governors of the University on March 30, 2017. The budget is reflected in the Statement of Operations and Accumulated Surplus and the Statement of Changes in Net Financial Debt.

2. Financial instruments

(a) Fair value of financial instruments

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

(i) Cash and cash equivalents, accounts receivable, and accounts payable and accrued liabilities approximate fair value because of the short maturity of these instruments (ii) The Standards require an organization to classify fair value measurements using a fair value hierarchy, which includes three levels of information that may be used to measure fair value:

Level 1 - Unadjusted quoted market prices in an active market for identical assets or liabilities,

Level 2 - Observable or corroborated inputs, other than level 1, such as quoted prices for similar assets or liabilities in inactive markets or market data for substantially the full term of the assets or liabilities; and

Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets and liabilities.

Bonds and fixed term instruments and pooled funds are classified as level 2 in the fair value hierarchy.

(b) Financial asset impairment

At each year-end date, the University is required to evaluate and record any other-than-temporary impairment of its financial assets, other than those carried at fair value. Accordingly, the University has compared the carrying value of each of these financial assets to its fair value as at March 31, 2018. No provision for impairment was recorded in the current year, as the fair value of all financial assets exceeded or did not differ significantly from their carrying value.

VANCOUVER ISLAND UNIVERSITY Notes to Consolidated Financial Statements

Year ended March 31, 2018

2. Financial instruments (continued)

The University, as part of its operations, has established objectives to mitigate risk related to financial instruments as risk management objectives.

All significant financial assets and financial liabilities of the University are either recognized or disclosed in the financial statements together with other information relevant for making a reasonable assessment of future cash flows, interest rate risk and credit risk.

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

(i) Foreign currency risk

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

(ii) Credit risk

Financial instruments that potentially subject the University to concentrations of credit risk include cash and cash equivalents, accounts receivable, and investments in other than equity investments. The maximum credit risk exposure is $63,532,055 (2017 - $54,216,931).

The University’s credit exposure is limited due to the large customer base, regular monitoring of the receivables and providing allowances for potentially uncollectable amounts.

Total financial instruments that are past-due, but not considered to be impaired, are $19,571 (2017 - $8,132).

The University believes there is minimal credit risk associated with its marketable securities and accounts receivable as the University expects that its counterparties will meet their obligations.

(iii) Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument might be adversely affected by a change in interest rates. Changes in market interest rates may have an effect on the cash flows associated with some financial assets and liabilities, known as cash flow risk, and on the fair value of other financial assets or liabilities, known as price risk. In seeking to minimize the risks from interest rate fluctuations, the University manages exposure on its marketable securities, short term investments, and endowment and other investments which have fixed interest rates by varying the maturity dates. The University manages exposure on the interest-bearing investments by investing in a widely diversified portfolio with varying interest rates and maturity dates.

VANCOUVER ISLAND UNIVERSITY Notes to Consolidated Financial Statements

Year ended March 31, 2018

2. Financial instruments (continued)

(iv) Liquidity risk

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

(v) Other price risk

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

3. Accounts receivable

2018 2017

Trade accounts receivable $ 1,789,816 $ 1,357,957 Due from Federal government 332,451 523,041 Due from Provincial government 1,024,639 1,382,671 Due from other government organizations 253,391 185,617

$ 3,400,297 $ 3,449,286

VANCOUVER ISLAND UNIVERSITY Notes to Consolidated Financial Statements

Year ended March 31, 2018

4. Investments

2018 2017

Cash and cash equivalents $ 1,417,501 $ 1,336,234 Bonds and fixed term instruments – at fair value 25,508,154 24,226,850 Pooled funds – at fair value 27,485,033 26,294,233

$ 54,410,688 $ 51,857,317

Classified as: Portfolio investments $ 40,123,875 $ 38,256,374 Restricted endowment investments 14,286,813 13,600,943

$ 54,410,688 $ 51,857,317

Fixed term investments mature between June 2018 and February 2027 and have a total maturity/face value of $25,605,932 (2017 - $23,937,102). Interest rates range between 1.4% and 5.0%.

5. Accounts payable and accrued liabilities

2018 2017

Accounts payables and accrued liabilities $ 16,099,605 $ 9,161,339 Salaries and benefits payable 4,111,374 3,811,471 Accrued vacation pay 7,083,460 6,860,529

$ 27,294,439 $ 19,833,339

VANCOUVER ISLAND UNIVERSITY Notes to Consolidated Financial Statements

Year ended March 31, 2018

6. Employee future benefits

(a) Vacation, termination benefits, and compensated absences

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

2018 2017

Accrued benefit obligation, beginning of year $ 5,597,001 $ 5,614,401 Unamortized actuarial gains , beginning of year 1,026,120 573,667 6,623,121 6,188,068

Current service cost 718,741 813,899 Interest cost 155,900 156,200 Benefits paid (656,907) (477,679) Amortization of actuarial (gain) (102,613) (57,367)

Accrued benefit obligation, end of year $ 6,738,242 $ 6,623,121

Accrued benefit obligation, end of year consists of:

2018 2017

Accrued liability, end of year $ 5,591,600 $ 5,597,001 Unamortized actuarial gains, end of year 1,146,642 1,026,120

Accrued benefit obligation, end of year $ 6,738,242 $ 6,623,121

Actuarial gains and losses are amortized over 10 years, being the expected average remaining service life of the employees. The total expense recorded in the financial statements in respect of obligations under this plan amounts to $772,028 (2017 - $912,732).

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

2018 2017

Discount rate for termination benefits 2.70% 2.70% Expected future inflation rate 2.70% 2.70%

VANCOUVER ISLAND UNIVERSITY Notes to Consolidated Financial Statements

Year ended March 31, 2018

6. Employee future benefits (continued)

(b) Pension liability

The University and its employees contribute to the College Pension Plan and Municipal Pension Plan (jointly trusteed pension plans). The boards of trustees for these plans, representing plan members and employers, are responsible for administering the pension plans, including investing assets and administering benefits. The plans are multi-employer defined benefit pension plans. Basic pension benefits provided are based on a formula. As at August 31, 2017, the College Pension Plan has about 14,000 active members, and approximately 7,500 retired members. As at December 31, 2016, the Municipal Pension Plan has about 193,000 active members, including approximately 5,800 from colleges.

Every three years, an actuarial valuation is performed to assess the financial position of the plans and adequacy of plan funding. The actuary determines an appropriate combined employer and member contribution rate to fund the plans. The actuary’s calculated contribution rate is based on the entry-age normal cost method, which produces the long-term rate of member and employer contributions sufficient to provide benefits for average future entrants to the plans. This rate may be adjusted for the amortization of any actuarial funding surplus and will be adjusted for the amortization of any unfunded actuarial liability.

The most recent actuarial valuation for the College Pension Plan as at August 31, 2015, indicated a $67 million surplus for basic pension benefits on a going concern basis.

The most recent valuation for the Municipal Pension Plan as at December 31, 2015, indicated a $2,224 million funding surplus for basic pension benefits on a going concern basis. As a result of the 2015 basic account actuarial valuation surplus and pursuant to the joint trustee agreement, $1,927 million was transferred to the rate stabilization account and $297 million of the surplus ensured the required contribution rates remained unchanged.

The University paid $7,526,003 (2017 - $7,113,531) for employer contributions to the plans in fiscal 2017-18.

The next valuation for the College Pension Plan will be as at August 31, 2018, with results available in 2019. The next valuation for the Municipal Pension Plan will be December 31, 2018, with results available in 2019.

Employers participating in the plans record their pension expense as the amount of employer contributions made during the fiscal year (defined contribution pension plan accounting). This is because the plans record accrued liabilities and accrued assets for each plan in aggregate, resulting in no consistent and reliable basis for allocating the obligation, assets and cost to individual employers participating in the plans.

VANCOUVER ISLAND UNIVERSITY Notes to Consolidated Financial Statements

Year ended March 31, 2018

7. Deferred revenue

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

2018 2017

Tuition $ 17,570,487 $ 13,056,726 Donations 7,802,094 7,603,913 Grant and contract service funding 4,636,858 3,971,492 Other 425,444 381,689 $ 30,434,883 $ 25,013,820

8. Deferred contributions

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

2018 2017

Balance, beginning of year $ 3,448,726 $ 4,227,841 Contributions received during the year 10,031,882 3,448,726 Revenue recognized from deferred contributions (8,108,668) (4,227,841) Balance, end of year $ 5,371,940 $ 3,448,726

9. Deferred capital contributions

Contributions restricted for the purpose of acquiring or developing depreciable tangible capital assets are recorded as deferred capital contributions. Amounts are recognized into revenue over the useful life of the asset. Treasury Board provided direction on accounting treatment as disclosed in note 1. Changes in the deferred capital contributions balance are as follows:

2018 2017

Balance, beginning of year $ 103,351,151 $ 99,358,625 Contributions received during the year - cash 35,650,496 9,276,699 Revenue recognized from deferred capital (5,285,496) (5,284,173) Balance, end of year $ 133,716,151 $ 103,351,151

At March 31, 2018, $39,866,930 (2017 - $6,481,507) in deferred capital contributions were included in deferred capital contributions where assets have not yet been completed and placed in service.

VANCOUVER ISLAND UNIVERSITY Notes to Consolidated Financial Statements

Year ended March 31, 2018

10. Tangible capital assets

Disposals, Write-offs & Balance at Balance at Additions & WIP WIP Transfers March 31, Cost March 31, 2017 Transfers In Out 2018

Land $ 12,401,247 $ - $ 310,600 $ 12,090,647 Buildings 198,724,387 3,017,145 552,399 201,189,133 Work In Progress (“WIP”) 3,812,194 39,350,251 - 43,162,445 Site improvements 7,416,925 179,920 7,780 7,589,065 Leasehold improvements 400,236 - - 400,236 Furniture and equipment 23,256,692 1,176,650 2,789,048 21,644,294 Computing equipment and software 7,189,433 288,588 1,196,398 6,281,623 Library books 2,381,882 151,065 340,220 2,192,727 Vehicles 1,150,534 37,990 - 1,188,524

$ 256,733,530 $ 44,201,609 $ 5,196,445 $ 295,738,694

Balance at Accumulated Balance at Disposals and Amortization March 31, amortization March 31, 2017 Write-offs expense 2018

Land $ - $ - $ - $ - Buildings 76,469,758 338,345 5,092,943 81,224,356 Work In Progress - - - - Site improvements 6,136,040 7,780 118,015 6,246,275 Leasehold improvements 140,084 - 40,024 180,108 Furniture and equipment 16,655,406 2,789,048 2,366,139 16,232,497 Computing equipment and software 5,378,362 1,196,398 748,689 4,930,653 Library books 1,475,364 340,219 198,258 1,333,403 Vehicles 703,695 - 131,965 835,660

$ 106,958,709 $ 4,671,790 $ 8,696,033 $ 110,982,952

VANCOUVER ISLAND UNIVERSITY Notes to Consolidated Financial Statements

Year ended March 31, 2018

10. Tangible capital assets (continued)

Net book value Net book value March 31, 2018 March 31, 2017

Land $ 12,090,647 $ 12,401,247 Buildings 119,964,777 122,254,629 Work In Progress 43,162,445 3,812,194 Site improvements 1,342,790 1,280,885 Leasehold Improvements 220,128 260,152 Furniture and equipment 5,411,797 6,601,286 Computing equipment and 1,350,970 1,811,071 software Library books 859,324 906,518 Vehicles 352,864 446,839

$ 184,755,742 $ 149,774,821

(a) Contributed tangible capital assets

There were no contributed tangible capital asset additions to land, buildings, or equipment in 2018 or 2017.

(b) Works of art and historical treasures

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

The write-off of tangible capital assets during the year was for assets with an original cost of $4,333,446 (2017 - $5,199,334). Writedowns were only applied to fully depreciated tangible capital assets that have reached pre-established age thresholds set beyond their useful lives.

The University has no direct insurance coverage against loss on any of its capital assets except vehicles. The insurance on University property is the responsibility of the Province of British Columbia. Claims for loss are submitted to the Province of British Columbia for consideration for compensation.

During the year ending March 31, 1999, a building was constructed by the Malaspina Students' Union Society on the campus owned by the University in Nanaimo. The cost of this building has been financed by the Student Union, however, title to the building remains with the University. The University has entered into a lease agreement with the Student Union in the amount of $1 per annum for a period of 50 years. The building is not recorded as an asset in the financial statements of the University.

VANCOUVER ISLAND UNIVERSITY Notes to Consolidated Financial Statements

Year ended March 31, 2018

11. Accumulated operating surplus

The accumulated operating surplus is comprised of the following:

2018 2017

Investment in tangible capital assets $ 51,039,591 $ 49,092,982 Endowments (note 14) 14,286,813 13,600,943 Internally restricted surplus 12,597,759 13,789,346 $ 77,924,163 $ 76,483,271

12. Contractual obligations

The nature of the University’s activities can result in multiyear contracts and obligations whereby the University will be committed to make future payments. Currently the University has $27,905,892 in contractual obligations related to operations that extend beyond the 2017-18 fiscal year.

13. Contingencies

(a) Letters of credit

The University had a total of $272,180 in letters of credit outstanding at March 31, 2018 for a bond posted on behalf of the High Schools to the Ministry of Finance and Corporate Relations. These letters of credit can be drawn upon to refund tuition to students if the High Schools fail to provide or complete the related academic program. No provision has been made for this contingency in the financial statements.

(b) Legal claims

The nature of the University’s activities is such that there is usually litigation pending or in process at any time. With respect to unsettled claims at March 31, 2018, management believes the University has valid defenses and appropriate insurance coverage in place. In the event any claims are successful, management believes that such claims are not expected to have a material effect on the University’s financial position.

VANCOUVER ISLAND UNIVERSITY Notes to Consolidated Financial Statements

Year ended March 31, 2018

14. Endowments

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

Endowments included as part of accumulated surplus is as follows:

2018 2017

Balance, beginning of year $ 13,600,943 $ 13,208,474 Contributions received 682,173 391,491 Capitalized interest 3,697 978 Balance, end of year $ 14,286,813 $ 13,600,943

15. Expenses by object

The following is a summary of expenses by object:

2018 2017

Salaries and benefits $ 103,233,490 $ 99,774,576 Fees and purchased services 10,040,038 10,995,386 Travel and training 2,990,397 2,936,830 Scholarships and bursaries 4,580,375 3,714,560 Equipment rental and maintenance 1,333,574 1,618,043 Utilities, insurance and taxes 3,275,351 3,047,648 Materials and supplies 7,321,437 8,021,439 Amortization of capital assets 8,696,033 8,655,729 Cost of goods sold 4,429,096 4,571,572

$ 145,899,791 $ 143,335,783

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

VANCOUVER ISLAND UNIVERSITY Notes to Consolidated Financial Statements

Year ended March 31, 2018

16. Contractual rights

The University has entered into a multi-year contract to partner in the delivery of services related to increasing the numbers of Indigenous youth enrolling in and completing tertiary education, and successfully transitioning to employment with a total contract value over 5 years of $13,415,800. The contract commenced on August 1, 2017 and the final quarterly payment will be received on May 1, 2022.

17. Comparative figures

Certain comparative figures have been reclassified to conform to current year presentation.