Annual Report 2018-2019 Prepared for the Ministry of Advanced Education Ambrose University 150 Ambrose Circle SW Calgary, Alberta T3H 0L5

Annual Report 2018-2019 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 2018-2019 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 ...... 4 5. Operational Overview ...... 4 6. Goals, Priority Initiatives, Expected Outcomes and Performance Measures ...... 6 Accessibility ...... 6 Affordability ...... 15 Quality ...... 17 Coordination ...... 25 7. Financial and Budget Information...... 30 7. Enrolment Plan and Program Changes ...... 34 8. Research, Applied Research, and Scholarly Activities...... 37 9. Community Outreach and Underrepresented Learners ...... 41 10. Internationalization ...... 43 11. Capital Plan ...... 43 12. Information Technology ...... 43 Appendix A: Audited Financial Statement ...... 44

1 1. Accountability Statement Ambrose University’s Annual Report for the year ended April 30, 2019 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 appreciate our partnership with the Ministry and with the other 25 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.

After several years of steady growth, enrolments were down across the institution. When compared to the previous fall, there was a decrease of 7% in the fall 2018 headcount (6% in credit hours and FLE). This decrease was in undergraduate and graduate programs with the exception of the Bachelor of Education. A strategic enrolment management plan was developed to focus resources toward recruitment of mission-fit students.

Ambrose admitted students into the new Bachelor of Arts with a major in Psychology program in Fall 2019. This program provides students an opportunity to prepare for future graduate education. Through a generous donation, Ambrose was able to provide science students with a new learning space: a chemistry laboratory. These new initiatives were steps toward goals identified in the CIP. No other new programs were introduced during this period.

Ambrose continues to collaborate with secondary school regions to offer dual credit for high school students taking Ambrose religion and business courses. Over the 2018-2019 academic year, faculty collaborated with Bow Valley College to create transfer opportunities for Bow Valley students to complete a BA or BBA degree at Ambrose. These initiatives support coordination with the post- secondary system and respond to community needs.

Initiatives funded by the Post-Secondary Mental Health grant and the Students with Disabilities grant continue to provide students with critical services that support their academic success and their experience of thriving on our campus.

During 2018-2019, the staff and faculty were key participants in updating our institutional values statement. The document will be submitted for Board approval in the fall of 2019.

The institution was without a Vice President Advancement (responsible for fundraising, communications and marketing, and public relations) for most of the 2018-2019 academic year.

The financial forecasts for Ambrose continue to present a very significant challenge. Institutional management is addressing the ongoing financial concerns, which are forecasted to continue their downward trend in 2019-2020. Even though our programs are strong and we are able to draw quality faculty to Alberta and serve students, we still wait for a resolution of our funding formula with the Ministry. We are hopeful that the whole question of “equitable funding” will be addressed in the near future. This is imperative if Ambrose University is going to be a continued strong contributor to Campus Alberta.

We appreciate our inclusion in Campus Alberta and 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.

4. Public Interest Disclosure (Whistleblower Protection) Act As a private, independent Academic Institution, Ambrose University is not subject to this legislation.

5. Operational Overview No significant operating changes were made during this reporting period.

Faculty were actively engaged in institutional governance during 2018-2019. The Master Academic Plan was updated to support the goals of the CIP. This five-year plan guides resource and programming decisions. Through the General Faculties Council, faculty approved curriculum approval polices to support curriculum development (e.g., Curriculum Approval Process, Program Definitions, Prior Learning Assessment and Recognition).

An indicator of progress towards achievement of our mission is reflected in the results of the 2019 National Survey of Student Engagement (NSSE). In response to questions about the quality of their overall experience at Ambrose, 87% of our senior students and 91% of our first year students rated their Ambrose experience as “excellent” or “good” (both measures are above the national average). This strong response was similar to that measured by the 2018-19 College Student Thriving Quotient (a survey offered through the Council for Christian Colleges and Universities [CCCU]). In the Fall of 2018, 93% of surveyed students in all four years of their programs rated their overall experience at the university as being “somewhat satisfied” or greater compared to 84.5% of students for other CCCU institutions. The same survey also reported that 49.5% of Ambrose students indicate they are “consistently thriving” or “thriving most of the time” compared to 43.5% of students at other CCCU institutions. On the 2019 Canadian University Survey Consortium (CUSC) survey of first year students, 97% of first year students indicated they “strongly agreed” or “agreed” with the statement that they were satisfied with their overall quality of their education compared to the national average of 88%. Taken together, Ambrose appears to be delivering education programs that meet the needs of our students at a level they value.

Ambrose made progress in regards to program and curriculum development last year. The Bachelor of Arts in Psychology was approved by the Deputy Minister in a letter dated 19 February 2019 for implementation July 2019 with the first students admitted fall 2019. Faculty are engaged in six cyclical program reviews in undergraduate degrees: Biology, Behavioral Studies, English, Christian Studies, General Studies and Music. The Faculty of Theology is preparing for a spring 2021 institutional and graduate program review with the Association of Theological Studies.

Through a generous donation Ambrose was able to renovate existing facilities to provide science students with a new state of the art learning space. The Biology faculty began in the summer of 2018 with what seemed a relatively simple task of completing an inventory of supplies in the three existing lab spaces. As resources were counted, they undertook to reorganize the spaces and in the process also developed a comprehensive lab safety manual and updated their lab protocols. As this work proceeded it became clear that dedicated space for a chemistry lab was necessary. With the guidance of an external consultant, they worked with the Facilities Department, Dean, VP Academic and the President’s Office to design, equip, fund and build a new chemistry lab that supports dry and wet labs and research. The space was commissioned September 2019. This new space provides new opportunities for students

in natural science to prepare for future work environments or graduate research.

After a spike in Arts and Science enrolment in Fall 2016 (620 heads), enrolment was down to 558 (10%) in 2017 and a further drop to 526 (5.7%) in 2018. The overall undergraduate enrolment numbers for Fall 2018 were bolstered by an additional 84 students in the Education program. The undergraduate ministry programs were stable, but the graduate programs were down to 144 heads in fall 2018 from 190 the previous fall (a 24% drop). 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. Following a deep and long recession, Alberta’s economy rebounded in 2017 but growth was moderated in 2018. According to the Alberta Treasury Board and Finance, Alberta has recovered only about 87% of losses incurred during the downturn. Consumer confidence weakened considerably at the end of 2018 as economic conditions in the province deteriorated (Economic Spotlight May 31, 2019). The increased weight on household spending may have affected student decisions to enroll in an independent university.

Ambrose has focused considerable resources on teaching excellence since 2014. In the last two years, the Teaching and Learning Committee launched the New Faculty Exchange program, which is a two-year induction program designed to ensure new faculty are successful in their transition into the role of a professor at Ambrose and a faculty mentoring program. Together these programs support junior faculty in the development of their teaching career and their retention in the academe. 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 build capacity for scholarship and research. The high quality research supports student learning and benefits our community. In 2018-2019, our faculty produced 70 different works of scholarship, up from 54 in the previous year, with 43 being peer reviewed works, which is up from 32 in the previous year. We continue to uphold our commitment to developing competent and well-trained student researchers (mainly undergraduate) and showcase their work at our annual Ambrose Research Conference. A significant volume of research arises from our three research institutes that helps locate us as an important contributor to data collection on pressing concerns of contemporary life in Alberta. Our research activity broadens networking between researchers, policy makers and frontline workers, and, together with knowledge dissemination, supports healthy Albertans and communities.

Ambrose is home to three distinct 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 2018-2019 academic year. Of particular interest is the work of the Poverty Institute in identifying financial risk factors for low-income households and strategies to build financial resilience, disaster preparedness and resiliency for Canadian women, Indigenous populations and low-income populations and the youth resiliency program.

Ambrose continued to make progress towards the goals articulated in the CIP, even during a time of financial challenges.

6. Goals, Priority Initiatives, Expected Outcomes and Performance Measures

Accessibility Goal 1 Sexual Violence Prevention Policies Revised Expected Progress Made in Expected Type Description Completion Status Last 12 Months Completion Date Date G 1 Develop and Policy approve sexual completed – violence currently prevention policy implementing and procedure, and policy post to website Priority Initiatives PI Create a Completed Ongoing The committee has Ongoing 1.1 permanent sexual been implemented violence and meets bi- prevention task annually. force (HR, Student A prevention sub- Development, committee has been Faculty and established that Students) reports to permanent committee. PI Develop and Ongoing Ongoing Hosted 3 Sexual 1.2 implement sexual Violence Response violence to Disclosure prevention training trainings (2 for and educational students and 1 for awareness faculty and staff). opportunities Hosted 2 campus events about healthy relationships. PI Enhanced Ongoing Ongoing Incorporated 1.3 awareness and reporting training for the information in entire Ambrose Orientation. community, and Updated information improved access to online and added support for victims links from wellness resource page. Have signage about sexual violence and

Goal 1 Sexual Violence Prevention Policies Revised Expected Progress Made in Expected Type Description Completion Status Last 12 Months Completion Date Date accessing supports on campus. Continue to train and support advocates and provide FETI training for investigators. Expected Outcomes EO 1 Enhanced Continuing awareness and training for the entire Ambrose community, and improved access to support for victims Performance Measures PM Regular reporting Ongoing Annual reporting on 1.1 to Senior educational activities Administration of and stigma activities focused reduction efforts on reducing stigma, dispelling myths and reducing incidents PM All faculty and staff Ongoing Training offered 1.2 receive annual sexual violence and prevention training

Goal 2 Response to Truth and Reconciliation Commission Revised Expected Progress Made in Expected Type Description Completion Status Last 12 Months Completion Date Date G 2 A President’s Commission has developed a plan that will guide the Ambrose response to the TRC’s Calls to Action

Goal 2 Response to Truth and Reconciliation Commission Revised Expected Progress Made in Expected Type Description Completion Status Last 12 Months Completion Date Date Priority Initiatives PI Implement 2018-2021 Ongoing 2.1 recommendations identified in the report from the President’s Commission PI Mutually beneficial 2018-2021 Ongoing 2.2 relationships with Indigenous Peoples Expected Outcomes EO 2 Establish an 2018-2019 Completed Committee appointed implementation by President’s Office committee to lead the initiatives that will continue to unfold through 2018-2021 Performance Measures PM Review of policies Fall 2019 In process Part of regular cycle 2024 2.1 and procedures of policy review. New with reference to policies developed the UN Declaration with this in view. on the Rights of Indigenous Peoples PM Identification of key Spring 2019 In process Curricular work is 2.2 learning outcomes underway in collaboration with Aboriginal advisors PM Aboriginal Advisory Fall 2019 Delayed Current focus is on 2024 2.3 Council in place relationship building at the program level

Progress 2018-2019 This continues to be an area of focus although implementation is not following the model as originally conceived. In August 2018, all faculty attended a professional development session “Indigenous Awareness Training” with Holly Fortier. As various members of the Ambrose community began to explore pathways toward reconciliation, the advice we continually heard was to go slow and establish relationships that will guide an institutional response. At this stage, relationships are being built at the program level. Education is leading the way but all programs are engaged in identifying key learning

outcomes. At the level of curriculum, a course has been offered on Indian Residential Schools and classes in a variety of disciplines are addressing indigenous issues. Rather than undergoing a comprehensive policy review, it was decided to take a more measured approach. As institutional policies come up for review and new policies are developed these will be aligned with the recommendations of the TRC and the UN Declaration on the Rights of Indigenous Peoples.

Goal 3 Supports to Vulnerable Learners Revised Expected Progress Made in Expected Type Description Completion Status Last 12 Months Completion Date Date G 3 Accessibility and Support Services will provide enhanced support for student success Priority Initiatives PI Accessibility and Ongoing Complete After review, it has 3.1 Support Services been determined will ensure that that while elements implementation of of universal design universal design for are important, this learning provides will be adopted by supports for specific faculty students that do depending on not have teaching strategies documented and course content learning disabilities PI All students with Ongoing We continue to 3.2 documented provide the necessary disabilities will accommodations and receive appropriate supports for students accommodations with documented and supports disabilities across all programming PI Evaluate Winter 2019 Spring 2020 This has been year 3.3 implementation of two of a three-year student support project. Specific tool: Ambrose faculty training and Aware rollout of use of the tool has been successful to date.

Goal 3 Supports to Vulnerable Learners Revised Expected Progress Made in Expected Type Description Completion Status Last 12 Months Completion Date Date Expected Outcomes EO 3 Increased student Ongoing use of support services as indicted by NSSE results Performance Measures PM NSSE 14 b 2019 Survey Ongoing We came close to our 3.1 First year (FY) 3.3 goal, while increasing Senior Year (SR) 3.2 from 2018. Maintained from 2018. Both continue to be on par (slightly above) the national average. PM NSSE 14 c 2019 Survey Both areas continue 3.2 First year (FY) 3.0 to progress while Senior Year (SR) 2.8 meeting our goals

This table provides context for the above performance measures.

Canada NSSE Question 2017 2018 2019 Goal 2019 14 b Providing support to help FY 3.2 3.0 3.2 3.3 3.1 students succeed academically SR 3.0 3.1 3.1 3.2 2.9 14 c Using learning support FY 2.9 3.0 3.1 3.0 3.1 services SR 2.6 2.7 3.0 2.8 2.9

Goal 4 Healthy Campus Initiative Revised Expected Progress Made in Expected Type Description Completion Status Last 12 Months Completion Date Date G 4 Enhance well-being for all Ambrose students including mental, spiritual, relational and physical health Priority Initiatives PI Develop an Fall 2019 In progress, We experienced a December 31, 4.1 Ambrose specific near delay due to staff 2019 mental health completion turnover. strategy in We have continued alignment with the to meet as a Alberta Post- development Secondary Mental committee and are Health and nearing completion Addiction for November cabinet Framework and approval. other initiatives facilitated by recent government grant PI Analyze, report and Fall 2019 Completed Included results of 4.2 develop NCHA data in the recommendations Ambrose Mental on data collected Health strategy. from the recent Created a student Wellness presentation for the Survey to develop campus community. the mental health Presented pertinent strategic plan results to student leaders for program planning. PI Work with other Winter 2019 Ongoing We have participated 4.3 PSI’s in Calgary in Healthy Campus around Healthy Alberta initiatives and Campus Alberta served on regional networks for Calgary Expected Outcomes EO 4 Enhanced levels of psychological thriving for Ambrose students

Goal 4 Healthy Campus Initiative Revised Expected Progress Made in Expected Type Description Completion Status Last 12 Months Completion Date Date Performance Measures PM Indication of 2019-2021 This PM is being 4.1 student thriving reassessed as our above 80% as analysis of the measured by the Thriving Quotient Thriving Quotient Survey is providing Survey better data PM Regular 2019-2021 The NCHA was 4.2 administration and administered in the improved measures winter semester 2019 of mental health as measured by the National College Health Assessment (NCHA)

Progress 2018-2019 This initiative is developing with two additional recreation classes offered and a student intramural coordinator was hired. A Wellness Coordinator offered wellness related programs and workshops (i.e. sleep, mood, mindfulness and resiliency). In fall 2018, Ambrose participated for the third consecutive year in the Thriving Quotient Survey and this administration was through the Council of Christian Colleges and Universities (CCCU), which provided comparative data for similar institutions. Our analysis has moved from frequencies to means and the data shows some improvement in this measure of Thriving, and Ambrose compares well with other CCCU schools.

Thriving Quotient 2016 2017 2018 CCCU 2018 4.4 4.6 4.7 4.6

Goal 5 Program Expansion Revised Expected Progress Made in Expected Type Description Completion Status Last 12 Months Completion Date Date G 5 Program expansion

Priority Initiatives PI Build additional wet Fall 2019 Completed New Chemistry lab 5.1 lab to opened in fall 2019 accommodate increased numbers of biology students PI Social science 2020 Psychology Work on Sociology 5.2 offerings will be degree major has been expanded by launched in suspended offering a major in fall 2019 Psychology beginning the fall of 2019 and exploring the feasibility of a major in Sociology in the fall of 2020 PI Explore potential Winter 2020 Work on a Bachelor 5.3 for a Bachelor of of Humanities or Humanities or Philosophy degree Philosophy degree has been suspended PI Increase course Ongoing Spring offering 5.4 offerings in spring continue to provide semester to alternative delivery accommodate options program expansion Expected Outcomes EO Program expansion Completed There are no further will provide new plans to expand opportunities for program learners in social science and natural science Performance Measures PM 40 Psychology Fall 2019 27 students are 5.1 Major students enrolled in the Psychology major PM Initiate program Fall 2020 Suspended 5.2 proposal for new BA in Humanities or Philosophy

Goal 5 Program Expansion Revised Expected Progress Made in Expected Type Description Completion Status Last 12 Months Completion Date Date PM Increase spring Spring 2019 Enrolment for Spring 5.3 enrolments from 2018 was 83.5 FLE 60 FLE to 75 FLE

Progress 2018-2019 The Bachelor of Arts with a major in Psychology launched in fall 2019, bringing to fruition a strategic initiative long in the making. However, other new programming is on hold through this planning period. The strategic direction set by this iteration of the CIP was set in 2016-2017, reflecting several years of steady, if modest, enrolment growth. In that context, the plan projected this trend forward and set out pathways to expand programming and increase capacity. Since then, enrolment has plateaued and then declined. Plans for new programs in Sociology and Humanities are no longer being actively considered. Plans to increase online and spring semester course offerings were initially to expand capacity. These plans have been scaled back although these delivery modes provide wider options for access to Ambrose University’s courses.

Goal 6 Continuing Education Initiatives Revised Expected Progress Made in Expected Type Description Completion Status Last 12 Months Completion Date Date G 6 A Continuing Education strategy will enhance access to Ambrose programs. It is the next step of program development that incorporates the previous e-Learning Strategy. Priority Initiatives PI Add one more 2018-2019 Completed This space was 6.1 multi-access space available in fall 2019 to accommodate further development of e- Learning strategies

Goal 6 Continuing Education Initiatives Revised Expected Progress Made in Expected Type Description Completion Status Last 12 Months Completion Date Date PI Develop ‘Ambrose 2018-2019 Ambrose at Large 6.2 At Large’ website to launched in fall 2018 accommodate registrations for Continuing Education courses Expected Outcomes EO 6 Wider access to Winter 2019 Ambrose courses Performance Measures PM 6 2 new classes Winter 2019 Completed 6 Continuing offered as Education classes Continuing were offered Education

Progress 2018-2019 Requests from students for workshops, advanced content and workplace specific courses have increased over the past three years, so learning opportunities are being offered to provide current students, alumni and community members’ wider access to Ambrose and its programs. Ambrose Seminary began offering continuing education workshops to develop leadership capacity in the religious and non-profit sector. Ambrose School of Education, with funding from Alberta Education, developed a certification program for principals to launch in summer 2019 to comply with the Leadership Quality Standards.

Affordability Goal 7 Financial Assistance Revised Expected Progress Made in Expected Type Description Completion Status Last 12 Months Completion Date Date G 7 Remove financial barriers to assist students in pursuing an Ambrose education

Goal 7 Financial Assistance Revised Expected Progress Made in Expected Type Description Completion Status Last 12 Months Completion Date Date Priority Initiatives PI Use data from the 2018-2019 Initiative A needs-based 7.1 Ruffalo Noel-Levitz suspended student aid program Price Sensitivity is no longer being Research to considered develop a strategic approach to tuition costs to inform tuition rates and a needs-based student aid program PI Dedicate five 2019-2020 Ongoing 7.2 scholarships for recruitment into small programs Expected Outcomes EO 7 A strategic approach to affordability that addresses concerns that cost may be a barrier to Ambrose fulfilling its mission Performance Measures PM Increase the 2018-2019 The average award 7.1 average award per increased from undergraduate $1041.42 in 2017- student 2018 to $1319.95 in 2018-2019 PM Five new students 2018-2019 Scholarships were 7.2 in small programs awarded will receive scholarship PM Student loan Ongoing This continues to be 7.3 repayment the case continues above 80%

Quality Goal 8 Teaching Excellence Revised Expected Progress Made in Expected Type Description Completion Status Last 12 Months Completion Date Date G 8 Excellence in teaching and student achievement Priority Initiatives PI The Teaching and Ongoing 8.1 Learning Committee will implement teaching quality standards, an orientation and mentorship program, to assist faculty as they move toward developing innovation and excellence in teaching PI Encourage students Ongoing 8.2 to participate in a least two High Impact Practices PI Design Faculty Fall 2019 Completed 8.3 Annual Report template to accommodate evidence of meeting teaching quality standards Expected Outcomes EO 8 Ambrose will be known for excellence in teaching and student achievement

Goal 8 Teaching Excellence Revised Expected Progress Made in Expected Type Description Completion Status Last 12 Months Completion Date Date Performance Measures PM NSSE Engagement Ongoing A significant drop in 8.1 Indicator – Effective the NSSE Teaching Practices Engagement 41.0 or higher Indicator – Effective Teaching Practices PM NSSE – Ongoing A dramatic decrease 8.2 Participation in at in students reporting least 2 HIPs (Senior) 2 or more HIPs at 80% or higher PM New Faculty Annual Completed 8.3 Report template to facilitate tracking and assessment of our teaching quality standards

Progress 2018-2019 Ambrose has been tracking Effective Teaching Practices as a Performance measure since its introduction in 2013 and 2019 is the lowest result. Student participation in at least two High Impact Practices have been consistently in the 70% participation range among senior students and this year have fallen to 50%. However, this is offset to some degree by the 51% of senior students saying they have either worked on a culminating senior experience or plan to do so. These measures have been referred to the Teaching and Learning Committee, Faculty Councils and student focus groups to help us understand and act to improve this result.

Canada 2017 2018 2019 Goal 2019 NSSE – Effective Teaching Practices (Senior) 40.2 40.5 36.1 41.0 34.5 NSSE – Participation in at least 2 HIPs (Senior) 71% 72% 50% 80% 54%

Goal 9 Assessment of Residence Program Revised Expected Progress Made in Expected Type Description Completion Status Last 12 Months Completion Date Date G 9 Residence Life will provide enhanced opportunities for all residence student to thrive: spiritually, academically, psychologically and socially Priority Initiatives PI Conduct a Winter 2019 Complete Presented report to 9.1 comprehensive president exploring program review of mandatory residence residence life for all first year students including cost/benefit analysis. Did a five-year residence trends review. Completed audit on communication (on line, recruitment, website) about residence program. PI Revise Fall 2018 Complete Revision made 9.2 qualifications for Residence Director will include MA in Higher Education or comparable degree PI Articulation of Fall 2019 Complete Outcomes presented 9.3 student learning to Ambrose outcomes and community. assessment in Outcomes being residence life presented to board of governors in fall 2019. Outcomes presented to stakeholders and students.

Goal 9 Assessment of Residence Program Revised Expected Progress Made in Expected Type Description Completion Status Last 12 Months Completion Date Date Assessment bi- annually (December and March). Established internal reporting structure to capture all programs relating to each outcome. Expected Outcomes EO 9 Growth in number Our residence of residence numbers have students declined this fall Performance Measures PM 9 Indication of Ongoing With new multiple student “fit” above years of data and 90% as measured comparisons from by the Thriving other institutions, the Quotient Survey measure has been as reset as the Psychological Sense of Community

Progress 2018-2019 During this year, we have hired a new Residence Director and implemented programming pillars into orientation, passive programming and increased assessment of learning for programs. A community discussion program (anam cara) has been initiated. Levels of programming have been increased through Community Life for campus community at large for improved social connection. Over a three-year period, the Psychological Sense of Community measure from the Thriving Quotient Survey has indicated that participation in the Residence program can significantly increase students’ sense of belong to community.

Psychological Sense of Community 2016 2017 2018 CCCU 2018 All Ambrose 4.58 4.80 4.76 4.67 On Campus 4.64 5.12 5.12 Off Campus 4.55 4.68 4.64

Goal 10 Student-Faculty Interaction Revised Expected Progress Made in Expected Type Description Completion Status Last 12 Months Completion Date Date G 10 Create opportunities for student-faculty interaction Priority Initiatives PI Create a culture Ongoing 10.1 that encourages faculty interaction with students on academic, career and wider issues PI The Ambrose March 2019 ARC 2019 feature 2 10.2 Research plenary and 19 Conference and breakout sessions various program with 28 students, 14 initiatives will faculty and 1 guest continue to presenter. In addition encourage research there were 16 poster projects that presentations. include students Expected Outcomes EO Ambrose will 10 continue to be recognized for high quality student- faculty interactions as a key valued- added element of the Ambrose experience Performance Measures PM NSSE Engagement 2019 and NSSE Engagement 10.1 Indicator – Student- ongoing Indicator – Student- Faculty Interaction Faculty Interaction (Senior) 28.0 or (Senior) at 22.1 higher PM NSSE Research with 2019 and NSSE Research with a 10.2 a Faculty Member ongoing Faculty Member Senior (Done or in Senior (Done or in progress + Plan to progress + Plan to do) do) 45 % or higher has dropped over the past two years

Goal 10 Student-Faculty Interaction Revised Expected Progress Made in Expected Type Description Completion Status Last 12 Months Completion Date Date PM Inventory of the 2019 Eight program 10.3 activities on specific activity days campus in January provide intentional opportunities for student-faculty interaction. There were Academic Advising weeks in fall and winter featuring both group and individual academic advising.

Progress 2018-2019 Similar to NSSE results for Performance Measures for Goal 8 Teaching Excellence, results for Student- Faculty Interaction are significantly below both historic performance and goals established in the CIP. These results, along with those from Goal 8, will be referred for discussion and suggestions for improvement to the Teaching and Learning Committee, Faculty Councils and student focus groups.

Canada 2017 2018 2019 Goal 2017 NSSE – Student-Faculty Interaction (Senior) 25.3 23.3 22.1 28.0 19.7 NSSE Research with a Faculty Member Senior (Done or in progress + Plan to do) 41% 28% 16% 45% 36%

Goal 11 Scholarship Excellence Revised Expected Progress Made in Expected Type Description Completion Status Last 12 Months Completion Date Date G 11 Excellence in scholarship and research Priority Initiatives PI 11 Explore Winter 2019 Delayed Work on this has 2024 development of a been delayed Research Office to support faculty applications for external grants Expected Outcomes EO Ambrose will be 11 known for excellence in scholarship Performance Measures PM Collectively faculty Ongoing Faculty reported 3 11 will report 2 new grants received. grant applications, 33 peer reviewed 2 new publications, publications. 1 new research New project project (data “Church’s role in poverty reduction”. collected CAQC Annual Report and from Faculty of Theology Annual Reports)

Overall Quality Measures Some of the key performance measures that are used in the CIP to monitor quality were not achieved during the past year. This is indicated above and action is being taken to address these. The measures of overall quality in the table below show that the student experience at Ambrose continues to score above the national average. This data is confirmed by the Thriving Quotient Survey, administered to all undergraduates, which put satisfaction with “the amount you are learning in your classes” and “your overall experiences at this university” both at 93%, and satisfaction with “the quality of interactions with faculty” at 90%. The CUSC survey of first year students showed 92% considered their expectations at Ambrose to have been met or exceeded and 97% agreed or strongly agreed that they were satisfied with the quality of teaching.

Canada 2017 2018 2019 Goal 2017 NSSE – Evaluate your entire educational experience (Senior) 97% 97% 91% 90% 79% NSSE – Same Institution Again (Senior) 95% 88% 87% 90% 80%

Coordination Goal 12 Chaplaincy Education Revised Expected Progress Made in Expected Type Description Completion Status Last 12 Months Completion Date Date G To provide a 12 program to develop spiritual care professionals in collaboration with other Alberta seminaries and Alberta Health Services (AHS) Priority Initiatives PI Continue to provide Ongoing 12.1 registration services for students for Clinical Pastoral Education (CPE) practicums in AHS and to provide financial processing for spiritual care education at AHS facilities PI Action Fall 2019 Consultation with 12.2 recommendations chaplaincy employers from Feasibility June 2019. Plan completed in Finalized curriculum winter 2018 outcomes August 2019. Initial conversations to include students from University of Calgary April 2019. Continued progress on joint curriculum map. PI Develop advanced 2018-2019 Offered Introduction 12.3 modules of course- to Prison Chaplaincy based spiritual care in Spring 2019 and training are developing online version of the course for Fall 2020

Goal 12 Chaplaincy Education Revised Expected Progress Made in Expected Type Description Completion Status Last 12 Months Completion Date Date Expected Outcomes EO Open new 12 opportunities for chaplaincy training for various vocational settings Performance Measures PM 10-12 students in 2019-2020 SC 501 Introduction 12 course-based to Spiritual Care had spiritual care an enrolment of 12 in training (in MA January 2019 Leadership and Ministry or MDiv programs)

Goal 13 Research Institutes Revised Expected Progress Made in Expected Type Description Completion Status Last 12 Months Completion Date Date G 13 To facilitate the mobilization of knowledge identified through the three Institutes among policy- makers, practitioners and academics Priority Initiatives PI In partnership with 2019 Complete The Poverty Hub was 13.1 the Canadian launched in April Observatory on 2019 and is online at Homelessness at www.povertyhub.ca. York University, Work continues on establish a national engaging community Poverty Hub as an stakeholders to online repository of assume control of relevant research their subject regarding the domains.

Goal 13 Research Institutes Revised Expected Progress Made in Expected Type Description Completion Status Last 12 Months Completion Date Date causes, impacts and solutions to poverty PI In partnership with Beginning in Complete This project was 13.2 a coalition of key 2018 completed in 2018 justice service and has informed organizations in practice in the Justice Calgary, conduct Sector Constellation research into barriers to accessing justice services by low- income individuals. Funded by the Law Foundation of Ontario Expected Outcomes EO Improved Ongoing 13.1 collaboration among professionals, researchers and practitioners in the field of poverty reduction EO Implementation of 2019 Complete This project was 13.2 recommendations completed in 2018 to enhance service and has informed coordination and practice in the Justice integration within Sector Constellation the justice sector in Alberta result in increased access to justice services for low-income individuals

Goal 13 Research Institutes Revised Expected Progress Made in Expected Type Description Completion Status Last 12 Months Completion Date Date Performance Measures PM 300 new resources 2018-2019 Ongoing Currently there are 13.1 added annually to approximately 800 the Poverty Hub resources online PM Recommendations 2019-2020 In progress Partners will be 13.2 for service reform identifying actionable are adopted and recommendations for implemented by the upcoming year partner justice service organizations

Progress 2018-2019 The Canadian Poverty Institute supported three policy roundtables that brought together government, academics and non-profit organizations focused on Access to Justice, Energy Poverty and Decent Work. They contributed to the development of the City of Calgary Resilience Strategy, led development of the United Way poverty reduction strategy and coordinated the Poverty Studies Summer Institute that provided professional development training to 113 practitioners, government officials and community leaders.

Goal 14 Dual Credit Project Revised Expected Progress Made in Expected Type Description Completion Status Last 12 Months Completion Date Date G 14 Collaboration with Palliser Regional Schools to provide dual credit for High School students taking Ambrose religion and business courses Priority Initiatives PI Continue dual 2018-2019 Ongoing credit agreement with Palliser Regional Schools

Goal 14 Dual Credit Project Revised Expected Progress Made in Expected Type Description Completion Status Last 12 Months Completion Date Date Expected Outcomes EO Open new Offered two courses opportunities for for dual credit: high school studies REL 105 and BUS 100 to begin post- secondary studies Performance Measures PM 20 students 2018-2019 REL 105 2 enrolled under the BUS 100 – 7 students dual credit agreement

Progress 2018-2019 The dual credit initiative offered grade 11 and 12 students an opportunity to take courses and receive credit towards their post-secondary education. Two university courses are offered: an introductory course in business and a required general education course (religious studies). Our first attempt at offering this arrangement was not very successful, as the university and high school academic schedules were not well aligned, making attendance difficult for high school students. So, the class schedules were adjusted to accommodate later start and stop dates, as well as additional days off, to better align with the high school calendar. This has proven to be a much more successful schedule. There are two groups of high school students: the Palliser School Division and the Bearspaw Christian School. The high school students, who joined a small number of Ambrose students to take the course, have fit in well and are actively engaged in the classroom discussion.

7. Financial and Budget Information The following table compares actual and budgeted operating results for Ambrose’s fiscal year ended April 30, 2019. Additional information, including Ambrose’s financial position at April 30, 2019, revenue and expenses compared to the previous fiscal year, and cash flows, is included in the Ambrose audited financial statements (see Appendix).

Year ended April 30, 2019 Actual Budget Variance favourable (unfavourable) Revenue Tuition and student fees $ 8,570,603 $ 8,901,201 $ (330,598) -3.7% Operating donations 2,972,548 2,903,372 69,176 2.4% Government funding 2,996,829 3,009,506 (12,677) -0.4% Sales, rent and ancillary services, net 997,181 1,096,052 (98,871) -9.0% Endowment and other 759,853 478,711 281,142 58.7% Total revenue 16,297,014 16,388,842 (91,828) -0.6%

Operating expenses Employee compensation and benefits 10,982,711 10,959,524 (23,187) -0.2% Operating supplies 2,285,656 2,173,138 (112,518) -5.2% Scholarships and bursaries 951,726 980,950 29,224 3.0% Facilities 898,798 988,720 89,922 9.1% Communications, advertising and events 697,943 784,459 86,516 11.0% Total operating expenses 15,816,834 15,886,791 69,957 0.4%

Surplus before financing expenses and non-cash items 480,180 502,051 (21,871) -4.4%

Financing expenses Interest 843,153 781,907 (61,246) -7.8% Annuity payments 233,009 314,800 81,791 26.0% Total financing expenses 1,076,162 1,096,707 20,545 1.9%

Deficit before non-cash items (595,982) (594,656) (1,326) -0.2%

Non-cash revenue (expenses) Amortization of deferred capital contributions 601,757 550,000 51,757 9.4% Amortization expense (1,562,082) (1,600,000) 37,918 2.4% Gain on annuity contract maturities 35,000 - 35,000 100.0% Change in fair value of interest rate swap (549,327) - (549,327) -100.0%

Net surplus (deficit) $ (2,070,634) $ (1,644,656) $ (425,978) -25.9%

Revenue The share of revenue by source is as follows.

Total revenue for the year ended April 30, 2019 was slightly below budget. Variances to budget include:

• Tuition and student fees o Tuition rates were increased in 2018-2019 as budgeted: Tuition rate per credit hour 2017-2018 2018-2019 Increase Arts & Science and School of Ministry $ 364 $ 380 $ 16 4.4% Education 375 390 15 4.0% Seminary 400 420 20 5.0% o Enrolment, as measured in net paid credit hours, declined 4.1% from 2017-2018, and was 7.4% below budget for 2018-2019. Net paid credit hours compared to budget are as follows: Actual Budget Variance Favourable Net paid credit hours (Unfavourable) Arts & Science and School of Ministry 14,782 15,932 (1,150) -7.2% Education 2,493 2,533 (40) -1.6% Seminary 1,740 2,071 (331) -16.0% Total 19,016 20,536 (1,520) -7.4%

o The decline in net paid credit hours resulted in a $577,000 negative budget variance in tuition. Lower enrolment also contributed to lower mandatory non-instructional fee revenue. o Unbudgeted student travel fees result in a positive variance to budget. This revenue is directly offset by unbudgeted operating supplies expense.

• Sales, rent and ancillary services, net o Lower than budgeted residence occupancy negatively impacted both residence rental revenue and food services income. • Endowment and other o Higher than anticipated investment returns on endowment funds was realized in 2018-2019. This endowment income primarily funds student scholarships and bursaries. o Unbudgeted research grant funding was recognized in 2018-2019, largely offset by unbudgeted operating expenses.

Operating Expenses Operating expenses for 2018-2019, excluding both financing expenses and non-cash expenses, by category are as follows:

Total operating expenses for 2018-2019 were slightly (0.4%) below budget. Variances to budget include:

• Employee compensation and benefits expenditures was positively impacted by savings as a result of several vacant positions, offset by unbudgeted expenditures related to grant funded projects and severance costs. • Unbudgeted but fully funded educational trip costs. • Funded scholarships expenditures were higher than budget as a result of higher than budgeted endowment income. Unfunded scholarships were below budget for the year.

Operating expenses by function are as follows.

Actual Budget Variance to budget favourable (unfavourable) Academic $ 6,082,661 $ 6,502,900 $ 420,239 6.5% Institutional support 2,856,894 2,447,570 (409,324) -16.7% Student services, including scholarships 3,360,479 3,199,676 (160,803) -5.0% Facilities 2,537,851 2,549,595 11,744 0.5% Academic support 673,707 854,727 181,020 21.2% Externally restricted 305,242 332,323 27,081 8.1% Total operating expenses $ 15,816,834 $ 15,886,791 $ 69,957 0.4% Surplus (deficit) – Before and After Financing Expenses Surplus for 2018-2019 before financing expenses and non-cash items, was slightly below budget (4.4%), as a result of both lower than budget revenue and lower than budget operating expenses. The deficit after financing expenses was comparable to budget. Non-Cash Revenue (expenses) Net non-cash revenue (expenses) was $0.4 million below budget. Included in this is the change in fair market value of interest rate swap of $0.5 million ($1.5 million gain in the prior year). This amount is an unbudgeted accounting loss 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 ($1.9 million at April 30, 2019) will reverse in future years and has no current or future cash flow impact on Ambrose. Additional information is provided in the audited financial statements. The unbudgeted 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 Overall, Ambrose’s financial results for 2018-2019, excluding the unbudgeted loss on the interest rate swap, compare favourably with budget. Given the impact of the non-cash revenue and expenses noted above, the net surplus (deficit) for the year is not a meaningful measure in assessing overall financial results for 2018-2019. A more relevant measure is the deficit before these non-cash items. While this amount is comparable to the amount budgeted for 2018-2019, the fact that it is a deficit is a sign of the significant financial challenges faced by Ambrose. This operating deficit is before both capital expenditures and debt principal repayment resulting in a significant cash flow deficit for 2018-2019. Ambrose’s net cash position declined by almost $0.5 million in 2018-2019, and sufficient cash was not in place at the start of the 2019-2020 fiscal year to sustain operations over the near term. Ambrose’s accumulated deficit at April 30, 2019, is $4.6 million, representing 28% of annual revenue. Going Concern Risk Ambrose’s audited financial statements for the year ended April 30, 2019 include discussion of the risks associated with Ambrose’s ability to continue as a going concern (see Appendix A, note 2 to the financial statements, as well as the auditors’ report). As noted in Ambrose’s 2019 Comprehensive Institutional Plan, Ambrose is anticipating deficits, from both an accounting and cash flow perspective for each of the years from 2019 through 2021. Ambrose’s ability to continue as a going concern during this period is dependent upon the support of its lenders until proceeds are realized from the sale of land.

7. Enrolment Plan and Program Changes The Bachelor of Arts with a major in Psychology will launch in fall 2019, bringing to fruition a strategic initiative long in the making. However, other new programming is on hold through this planning period. The strategic direction set by this iteration of the CIP was set in 2016-2017, reflecting several years of steady, if modest, enrolment growth. In that context, the plan projected this trend forward and set out pathways to expand programming and increase capacity. Since then, enrolment has plateaued and then declined. Plans for new programs in Sociology and Humanities are no longer being actively considered. Plans to increase online and spring semester course offerings were initially to expand capacity. These plans have been scaled back although these delivery modes provide wider options for access to Ambrose University’s courses. BA Psychology (4-year) The Bachelor of Arts in Psychology will focus on the systematic study of human behaviour with an emphasis on the integration of knowledge, including theories and best practices, and application directed at individual, group and systems change. As such, the program structure enables students to demonstrate an appropriate knowledge base in the discipline of psychology, the capacity to engage in scientific inquiry and critical thinking, understanding of ethical and socially responsible behaviour in a pluralistic society, effective communication skills and professional development skills for the workplace. The program was approved by Advanced Education in February 2019 and will admit its first students in fall 2019.

Fall enrolments by program (FLE) 2018 PROJECTED 2016 2017 ACTUALS 2018

ARTS AND SCIENCE

HUMANITIES CHRISTIAN STUDIES 12.6 10.5 15.0 12 ENGLISH LITERATURE 24.0 23.4 17.0 25 GENERAL STUDIES 35.5 23.6 23.1 30 HISTORY 29.2 22.9 19.5 25 HUMANITIES TOTAL 101.3 80.4 74.6 92

BEHAVIOURAL SCIENCE 122.2 133.3 119.3 140

BIOLOGY 96.7 117.4 110.2 115

MUSIC 35.6 28.9 20.8 30

BUSINESS 74.1 74.7 64.5 75

DIPLOMA IN ACTING 11.5 5.73 2.7 8

UNIVERSITY STUDIES 1.6 2.4 3.1 2

UNCLASSIFIED 5.2 7.2 11.3 5

TOTAL ARTS AND SCIENCE 448.2 450.03 406.5 467.0

EDUCATION

TOTAL EDUCATION 64.2 79.6 93.8 80

SCHOOL OF MINISTRY

BTH 4.9 4.1 2.0 2 FAMILY / CHILDREN 8.7 6.9 8.8 8 CHURCH 27.3 24.9 29.5 25 INTERCULTURAL 16.9 17.5 14.9 18 YOUTH 19.7 18.7 23.8 20 POST-PROFESSIONAL 0.9 0.4 0.0 0 AIM/ACCESS 2.0 2.3 1.4 0

TOTAL SCHOOL OF MINISTRY 80.4 74.8 80.4 73

2018 PROJECTED 2016 2017 ACTUALS 2018 AMBROSE SEMINARY

CERTIFICATES 0.2 1.6 3.7 1 DIPLOMAS 5.6 3.4 5.0 3 MA BIBLICAL & THEOLOGICAL 1.9 1.7 0.8 3 STUDIES M CHRISTIAN STUDIES 5.0 4.8 3.4 5 MA INTERCULTURAL MINISTRIES 2.8 3.2 1.4 4 MA LEADERSHIP & MINISTRY 8.8 13.2 13.8 13 MASTER OF DIVINITY 23.6 22.8 18.2 23 OPEN STUDIES / VISITING 9.2 8.8 6.0 9

TOTAL AMBROSE SEMINARY 57.1 59.5 52.3 61

CHINESE SCHOOL OF THEOLOGY

AT AMBROSE SEMINARY

DIPLOMAS 4.8 3.8 0.4 5 M CHRISTIAN STUDIES 5.6 4.0 1.6 4 MASTER OF DIVINITY 11.2 8.6 5.0 9

TOTAL CCSTAS 21.6 16.4 7.0 18

TOTAL SEMINARY PROGRAMS 78.7 75.9 59.3 79

TOTAL AMBROSE 671.5 680.33 640 699

8. Research, Applied Research, and Scholarly Activities Introduction Ambrose University – a teaching-based university with undergraduate Arts and Science programs, an undergraduate School of Ministry and a graduate level Seminary – is in its formative years as an institution to support and develop 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”. The following overview captures our three strategic research priorities (and supporting infrastructure) in connection with Ambrose University’s institutional goals and current provincial outcomes: 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. Institutional Infrastructure to Support Faculty Research Ambrose continues to progress in its institutional infrastructure to support faculty research. Each faculty member is given $2,000 in Professional Development funds each year. In addition, faculty can apply for up to $6,000 in internal research grants (total of $35,000 is awarded each year). Ambrose also has a longstanding sabbatical policy where every six years faculty are eligible for a six-month sabbatical for 100% salary or a full year sabbatical at 85% salary, or every three years faculty can apply for a six-month sabbatical at 85% salary. In addition, tenured faculty are eligible for the “Sustaining Scholarship Program” that permits applications for a two year course release of one-to-two courses per annum, to help facilitate time-sensitive research projects. In addition, the “Scholarship Assistance Program” permits all faculty members to apply for a one-course release to advance a research project.

In 2019, Ambrose took several steps forward to support faculty research. April 2019 marked the second year of the “Scholars’ Corner,” an event to publicly recognize the scholarly achievements among Ambrose faculty. The 2019 school year also continued the development of initial infrastructure towards an Ambrose Research Office housed in the office of the Vice President of Academic Affairs. In August 2019, Ambrose hosted its second Research Day to explore the needs of Ambrose faculty regarding goals for future research support and to help faculty develop in key areas including: developing research ideas and a research agenda, getting published, collaborative research and large scale projects, and information mobilization. There is strong uptake on each of these initiatives among faculty thus far, with much anticipation that this supportive infrastructure will foster increased scholarly output among Ambrose faculty – evident recently, for example, with 52 peer-reviewed articles, chapters, books, or compositions published this past year among our 45 faculty members (publications in Biology, Business, English, Education, History, Psychology, Sociology and Theology). Faculty research has recently appeared in publications by Oxford University Press, University of London, Captus Press, McGill-Queen’s University Press, Routledge, Brill, Baker, and Vernon Press. Topics include human rights and the supply chain, culture and the cognitive science and religion, Jonson, Shakespeare and Aristotle on Comedy, flourishing churches and

neighbourhoods, the arts and education, the history of early Judaism and the development of messianism, Christianity and Indigenous spirituality, among other subjects.

In various ways, these research activities dovetail well with present provincial outcome goals of a strong economy and supporting healthy Albertans in all of our communities. Several of our faculty actively present their research and consult with market leaders and practitioners, linking research findings with practical application. Understandably, research at Ambrose is not of the scale or scope of larger research-based institutions, but, as a teaching-based university of this size, we have a solid research culture and a promising infrastructure to develop upon moving forward. Student Research In line with current provincial outcome objectives of a strong economy and supporting healthy Albertans in all of our communities, Ambrose sees student research as an important element to prepare Ambrose students well toward these ends. Developing the skills and capacities to conduct original research, to think carefully and critically about complex issues and to disseminate new knowledge, strengthens students’ abilities to obtain jobs post-graduation and to thrive professionally, personally and relationally. A few markers stand out that reveal our efforts and effectiveness in this regard.

Opportunities for student research is emerging as a strength of the Ambrose experience. The National Survey of Student Engagement (NSSE) identifies six High-Impact Practices it views as “life-changing” and key to student success, one of which is “research with faculty”. Of the senior students from Ambrose who participated in the NSSE survey, 16% recently responded that they were currently working, had worked or were planning to “work with a faculty member on a research project”. This compares to 25% in Canadian institutions as a whole and 19% in the independent sector. While the number of students involved with faculty in research is lower than the national average, Ambrose students are active in final senior projects above the average, 59% of Ambrose senior students say they have either worked on a culminating senior experience such as a capstone course, senior project, or thesis or plan to do so (ahead of peer institutions in Alberta, Canada and the independent sector). Engagement in such research helps student contribute to their local community.

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). The conference included 21 sessions spread over one day, including over 43 oral presentations and 16 poster presentations across an array of academic programs (Biology, Business, Chemistry, Christian Studies, Education, English, History, Music, Philosophy, Psychology, Science, Sociology, Theatre and Theology). In late March 2019, students presented original research on a range of pressing issues to our economy and that support 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.

External Stakeholders and Practitioners 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 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. Further, our Institutes are premised on providing students with first-hand research training and experience. Below, we feature some of the research within our Canadian Poverty Institute, followed by a high level overview of the other two Institutes.

The Canadian Poverty Institute (CPI) (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 neighbourhood income and isolation/inclusion and participation in community-based organizations and (f) creating a Canadian Poverty Hub, an online repository of relevant research and resources about the causes and impacts of poverty as well as policies and best practices in poverty prevention and reduction. The Poverty Hub provides a searchable database for researchers, practitioners and government policy officials to access current research on a range of poverty related issues. The CPI also published several key reports on poverty in Canada including “What does poverty look like in Canada? The Angus Reid Institute’s Study of Poverty in Canada: A Response from the Canadian Poverty Institute,” Ambrose University, Calgary. Rita Yembilah, PhD, July 2018, “Canadian Business and Human Rights in the Global Supply Chain” - Submission to The Subcommittee on International Human Rights of the Standing Committee on Foreign Affairs and International Development, May 2018, and contributed to the creation of the Federal Poverty Plan.

The current research at the Jaffray Institute for Global Initiatives (http://jaffrayglobal.com/) explores the role of churches and para-church organizations in immigrant, refugee and marginalized people’s settlement and integration process in Calgary. This institute is also examining how a young adult’s intercultural sojourn during their university years shapes long-term career choices. In January 2019, the Jaffray Institute hosted a JaffrayAng symposium exploring a variety of topics focused around the theme Beyond Hospitality: Multiculturalism, Migration and the Church with 50 invited guests, representing 16 ethnic or national backgrounds, 5 Canadian provinces and 1 territory, as well as 32 organizations and 10 denominations. The symposium focused on the complex issues associated with immigration, refugees,

and the response of religious organizations. The papers from this symposium were revised to form a manuscript for publication with Tyndale Academic Press.

The Flourishing Congregations Institute (www.flourishingcongregations.org) is in the middle of a multi- year Social Sciences and Humanities Research Council-funded national study on what contributes to a flourishing congregation. On the heels of phase one research (115 interviews and 9 focus groups across Canada) and phase two research (surveys with over 150 congregations and 4000 participants), including two peer reviewed publications – one on “what is a flourishing congregation” and another on “theological education” – the Institute is embarking on in-depth case study research with approximately 15 congregations across Canada.

Together these initiatives build on some of our research and teaching strengths as an institution. 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, research elsewhere bridges Ambrose with external stakeholders and practitioners too. For instance, faculty and students in our History program continued their oral history project 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 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.

9. Community Outreach and Underrepresented Learners Continuing Education During 2018-2019 Ambrose faculty offered a wide range of workshops, advanced content and workplace specific courses in response to an increasing demand from students, alumni and community members. In this way, Ambrose is providing wider access to its programs. Four examples of this activity are provided below.

Principal Certification With funding from Alberta Education’s Leadership Development Program in 2018-2019, Ambrose developed a two course noncredit certification program that meets Alberta’s new professional standards for principal certification. The program provides a flexible delivery that allows courses to be completed either simultaneously or sequentially. The first course was offered in July 2019. The education faculty anticipate offering twice in the upcoming year. Ambrose Seminary Continuing Education Ambrose Seminary began offering continuing education workshops to develop leadership capacity in the religious and non-profit sector in 2018. These workshops have proved successful and will be expanded depending on available resources in 2019-2020. Dual credit The dual credit initiative offers grade 11 and 12 students an opportunity to take courses and receive credit towards their post-secondary education. Currently, two university courses are offered: an introductory course in business and a required general education course (religious studies). Our first attempt at offering this arrangement was not very successful because of academic schedule alignment making attendance difficult for high school students. After adjustment to the schedules with later start and stop dates, this learning opportunity has proven to more successful. Two groups of high school students, one from the Palliser School Division and the other from Bearspaw Christian School, joined Ambrose students and have done well in the course. Bow Valley College As a contributing member of Campus Alberta, we began developing a collaboration with Bow Valley College in 2018-2019. The purpose was to provide their students, who have completed diplomas or are in Open Studies, an opportunity to complete degrees in the Humanities, Behavioral Sciences and Business. This collaboration provides Ambrose an opportunity to add students to upper level courses. Our already strong transfer agreements between the institutions through the Alberta Council on Admissions and Transfer will allow students to move between institutions without having to retake courses. The signing of the collaboration occurred in October 2019. A small number of students are anticipated in the fall of 2020. Ambrose continues to consider opportunities where we can join other post-secondary institutions in providing Alberta students with increased access to programs. Indigenous Learners The Calls to Action of the Truth and Reconciliation Commission (TRC) identified curriculum as an area requiring action. While a curricular response is important for all students, it is particularly so for pre- service teachers and those whose professional work will bring them in contact with Indigenous communities. Ambrose is committed to developing a curriculum that addresses difficult truths related to the history of Canada and its relationship with Indigenous peoples. Beyond identifying these difficult truths, the curriculum will provide models for redemptive engagement with Indigenous communities. This curriculum, in collaboration with Aboriginal advisors, will seek to integrate Indigenous knowledge.

For the past two years, faculty have collectively dedicated their fall professional development day to increasing their indigenous awareness by participating in full day workshops. The Education program has been at the forefront of our initiatives. Over the past year, the students and faculty met with Siksika elders to consider the scope and sequence of Indigenous content in the pre-service education curriculum, participated in workshops led by Indigenous leaders, facilitated Elder led Blanket Exercises with Education students, held an Arts Program Day with an Indigenous focus, visited local museums and historical sites, and hosted community event for the launching of indigenous films and books. Through a provincial grant, the education faculty are developing Indigenous focused competency-based teacher education.

Supports for Underrepresented Learners The Student Success Office provides a wide variety of opportunities to help students be successful as they transition into university life. While these services are available to all students, some of the most frequent users are students who face barriers to education in terms of social skills, accessibility issues and economic barriers. Thus, student services are free of charge to Ambrose students and are focused on reducing barriers. Services include writing and tutoring support, language support for English language learners, and accommodations for students with disabilities. Programs that support integration into the university also include New Student Orientation, Early Alert Referrals, and advising for students on academic probation and intervention. Accessibility services ensures that students experiencing disabilities have equal access to educational success by providing academic accommodations that are tailored to the individual student. The Accessibility Services lab provides students access to specialized equipment, software and resources for students registered with the Accessibility Office. Ambrose has partnered with Inclusion Alberta to provide an inclusive post-secondary experience for several students with developmental disabilities. The Ambrose Writing Centre provides students with academic support in reading and research, critical thinking and writing or speaking skills. Students have access to tutors and group workshops. Recently, Ambrose adopted a relational retention software program (Ambrose Aware) to support the early identification of at risk students and interventions that would foster their academic success. Initiatives funded by the Post-Secondary Mental Health grant and the Students with Disabilities grant continue to provide students with critical services that support their academic success and their experience of thriving on our campus.

10. 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.

11. Capital Plan Ambrose has not commenced any capital projects during the 2018-2019 year. Capital expenditures in the year ended April 30, 2019 totaled $0.4 million and comprised campus renovation and refurbishment costs, as well as minor information technology and library purchases.

12. Information Technology Ambrose has not commenced any significant information technology projects during the 2018-2019 year. However, small scale improvements were made to campus networking and security, and routine replacement of hardware, including classroom technology was undertaken.

Appendix A: Audited Financial Statement

Financial Statements And Independent Auditors’ Report thereon April 30, 2019

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

Opinion We have audited the financial statements of Ambrose University (the Entity), which comprise:  the statement of financial position as at April 30, 2019;  the statement of operations for the year then ended;  the statement of cash flows for the year then ended;  the statement of changes in net assets for the year then ended;  and notes to the financial statements, including a summary of significant accounting policies (hereinafter referred to as the ''financial statements''). In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of the Entity as at April 30, 2019, 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.

Basis for Opinion We conducted our audit in accordance with Canadian generally accepted auditing standards. Our responsibilities under those standards are further described in the ''Auditors' Responsibilities for the Audit of the Financial Statements'' section of our auditors' report. We are independent of the Entity in accordance with the ethical requirements that are relevant to our audit of the financial statements in Canada and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

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. Emphasis of Matter – Significant Judgments related to Going Concern 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 its ability to generate sufficient cash flows from operations, service its existing debt obligations and the continued support of its lender. As stated in Note 2 in the financial statements, these events or conditions, along with other matters as set forth in the financial statements, indicate that a material uncertainty exists that may cast significant doubt on the Entity's ability to continue as a going concern. Our opinion is not modified in respect of this matter.

Responsibilities of Management and Those Charged with Governance 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. In preparing the financial statements, management is responsible for assessing the Entity's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Entity or to cease operations, or has no realistic alternative but to do so. Those charged with governance are responsible for overseeing the Entity’s financial reporting process.

Auditors' Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors' report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Canadian generally accepted auditing standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the financial statements. As part of an audit in accordance with Canadian generally accepted auditing standards, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:  Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.  Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Entity's internal control.  Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.  Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Entity's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors' report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors' report. However, future events or conditions may cause the Entity's to cease to continue as a going concern.  Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.  Communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Chartered Professional Accountants

Calgary, Canada August 23, 2019

Ambrose University Statement of Operations Year ended April 30, 2019

2019 2018 Revenue Tuition and student fees $ 8,570,603 $ 8,753,513 Donations and constituent support (note 15) 2,972,547 3,041,259 Government grants 2,996,829 2,866,462 Sales, rent and ancillary, net (note 16) 997,181 1,096,400 Endowment and other 759,853 749,790 16,297,013 16,507,424 Expenses Employee compensation, benefits and other 10,982,711 10,857,204 Operating supplies 1,540,657 1,626,725 Scholarships and bursaries 951,726 968,757 Interest 843,153 846,644 Communications, advertising and events 697,943 693,863 Facilities 898,798 690,089 Travel and hospitality 345,480 374,383 Professional fees 367,138 359,145 Annuity payments (notes 10 and 11) 233,009 319,640 Other 32,380 128,817 16,892,995 16,865,267 Deficiency of revenue over expenses before the following (595,982) (357,843) Amortization of capital assets (1,562,082) (1,631,167) Amortization of deferred capital contributions (note 12) 601,757 567,359 Gain on annuity contract maturities (note 11) 35,000 611,500 Change in fair value of interest rate swap (note 10) (549,327) 1,515,184 Surplus (deficiency) of revenue over expenses $ (2,070,634) $ 705,033

The accompanying notes are an integral part of these financial statements

Ambrose University Statement of Cash Flows Year ended April 30, 2019

2019 2018

Cash flow from operating activities: Cash received for tuition and student fees $ 8,853,749 $ 8,853,743 Cash received from donors and constituents 3,018,723 2,993,565 Government funding received 2,983,482 3,087,355 Cash received from customers, tenants and others 3,151,003 3,170,139 Cash paid to and on behalf of employees, suppliers and annuitants (16,856,182) (17,763,105) Interest received 3,963 11,261 Interest paid (766,363) (772,549) Net cash flow from operating activities 388,375 (419,591)

Cash flow from financing activities: Capital contributions received 45,381 68,865 Restricted contributions received 267,721 316,972 Cash received from annuitants - 13,500 Repayment of loans and borrowings (581,850) (678,785) Advances of loans and borrowings - 36,500 Net cash flow from financing activities (268,748) (242,948)

Cash flow from investing activities: Capital expenditures (379,125) (284,730) Net change in investments (229,840) (231,719) Net cash flow from investing activities (608,965) (516,449)

Decrease in cash (489,338) (1,178,988) Cash, beginning of year 362,763 1,541,751 Cash (bank overdraft), end of year $ (126,575) $ 362,763

The accompanying notes are an integral part of these financial statements

Ambrose University Statement of Changes in Net Assets

Year ended April 30, 2019 Accumulated Invested in operating Externally capital deficit restricted assets Total Balance, May 1, 2018 $ (3,170,748) $ 9,181,606 $ 1,917,665 $ 7,928,523 Surplus (deficiency) of revenue over expenses (note 14) 394,447 - (2,465,081) (2,070,634) Direct changes in net assets: Restricted contributions received - 267,721 - 267,721 Net investment income - 617,463 - 617,463 Change in fair market value of investments - 212,727 - 212,727 Endowment distributions - (513,994) - (513,994) Transfers of net assets: Net investment in capital assets (note 14) (1,794,479) - 1,794,479 - Balance, April 30, 2019 $ (4,570,780) $ 9,765,523 $ 1,247,063 $ 6,441,806

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 (note 14) 1,355,794 - (650,761) 705,033 Direct changes in net assets: Restricted contributions received - 650,762 - 650,762 Gain on annuity contract maturities (note 11) - 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 investment in capital assets (note 14) (1,872,430) - 1,872,430 - Balance, April 30, 2018 $ (3,170,748) $ 9,181,606 $ 1,917,665 $ 7,928,523

The accompanying notes are an integral part of these financial statements

6 Ambrose University Notes to the Financial Statements Year ended April 30, 2019

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, 2019, Ambrose has insufficient working capital to continue its operations for at least 12 months from the date of issuance of the financial statements. In response to its financial position, management has entered into a conditional sale agreement for vacant land. Proceeds from the land sale are not anticipated prior to Ambrose’s fiscal year ending April 30, 2021. Ambrose has secured borrowing to meet its cash flow needs until the conditional land sale is completed (note 20). Ambrose has operated outside of compliance with a debt covenant requiring a minimum debt service coverage ratio for the 2015 through 2019 fiscal years (note 10). 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 10). 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 lender. 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, 2019

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. c. Cash and cash equivalents and bank overdraft Cash and cash equivalents and bank overdraft include bank deposits and bank overdraft. 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.

8 Ambrose University Notes to the Financial Statements Year ended April 30, 2019

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. 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.

9 Ambrose University Notes to the Financial Statements Year ended April 30, 2019

4. Accounts receivable

2019 2018 Student accounts receivable $ 158,206 $ 136,626 Trade and other receivables 142,096 141,217 Goods and Services Tax recoverable 7,358 25,414 $ 307,660 $ 303,257 5. Investments Investments comprise pooled mutual funds professionally managed in accordance with the Investment Policy adopted by the Ambrose Board of Governors. Fair values of investments are based on quoted market prices on the date of the statement of financial position. 2019 2018 Investments at cost $ 8,739,143 $ 8,405,834 Unrealized gains 837,971 625,243 $ 9,577,114 $ 9,031,077 6. Capital assets

2019 2018 Accumulated Net book Net book Cost amortization value value Land $ 3,602,942 $ ‐ $ 3,602,942 $ 3,493,741 Buildings 42,811,831 12,014,722 30,797,109 31,958,863 Library materials 3,481,798 2,940,832 540,966 633,699 Equipment and computers 1,671,979 1,488,721 183,258 218,624 Land improvements 1,236,515 1,230,256 6,259 8,763 Furnishings 1,085,198 978,193 107,005 106,806 Mineral rights 18,000 ‐ 18,000 18,000 $ 53,908,263 $ 18,652,724 $ 35,255,539 $ 36,438,496 7. Bank overdraft Ambrose has a $0.5 million demand 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% (April 30, 2019 – 4.45%). 8. Accounts payable and accrued liabilities

2019 2018 Trade accounts payable $ 1,123,625 $ 1,033,140 Government payroll remittances payable 141,572 143,626 Accrued annuity payments 42,336 42,336 $ 1,307,533 $ 1,219,102

10 Ambrose University Notes to the Financial Statements Year ended April 30, 2019

9. Deferred contributions and deposits

2019 2018 Student deposits and other prepayments $ 1,366,860 $ 923,235 Deferred donations 611,422 565,182 Deferred non‐government grant funding 398,298 240,373 Deferred government grant funding 105,653 118,999 $ 2,482,233 $ 1,847,790 10. Loans and borrowings

Note 2019 2018 Current liabilities Bank financing a) $ 16,931,431 $ 16,873,287 Constituent loans b) 60,989 74,867 16,992,420 16,948,154 Non‐current liabilities Annuity contracts c) 614,718 614,718 $ 17,607,138 $ 17,562,872 a) Bank financing 2019 2018 Bank term loan, with monthly payments of $109,600 to August $ 17,341,888 $ 17,909,616 2038, bearing interest at 4.24% per annum until August 2028 Deferred financing costs, net of accumulated amortization (2,338,172) (2,414,717) Fair value of interest rate swap 1,927,715 1,378,388 $ 16,931,431 $ 16,873,287 Deferred financing costs are amortized over the repayment term of the bank term loan and $76,545 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 at April 30, 2019 of $34.4 million and a General Security Agreement over net assets. Notwithstanding the demand right of the lender as a result of covenant non‐compliance, scheduled annual repayment of the bank term loan is as follows: Years ending April 30 Amount 2020 $ 592,000 2021 618,000 2022 644,000 2023 672,000 2024 701,000 Thereafter 14,114,888 $ 17,341,888

11 Ambrose University Notes to the Financial Statements Year ended April 30, 2019

b) 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 3.0%. The effective annual rate of interest at April 30, 2019 is 2.2%. c) 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 stipulated in the annuity contracts. 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, 2019 is 5.2%. Scheduled annual annuity payments at April 30, 2019, assuming no annuity contracts mature, total $32,000. d) 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, 2019. 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. 11. 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 12% per annum. The weighted‐ average annuity payment rate at April 30, 2019 is 5.2%. Scheduled annual annuity payments at April 30, 2019, assuming no annuity contracts mature, total $124,000. a) Changes in annuity contracts for the years ended April 30: 2019 2018 Balance, beginning of year $ 4,745,932 $ 5,493,932 New annuity contracts ‐ 13,500 Matured annuity contracts recognized as: Gain on annuity contract maturities (35,000) (611,500) Deferred capital contributions (2,335,000) ‐ Externally restricted net assets – scholarships ‐ (150,000) Balance, end of year $ 2,375,932 $ 4,745,932

12 Ambrose University Notes to the Financial Statements Year ended April 30, 2019

b) Annuity contract maturity Annuity contracts at April 30 will be derecognized upon maturity based on the terms of the annuity contracts as follows: 2019 2018 Gain on annuity contract maturities $ 1,185,649 $ 1,220,649 Deferred capital contributions 1,086,833 3,421,833 Externally restricted net assets ‐ scholarships 103,450 103,450 $ 2,375,932 $ 4,745,932

12. Deferred capital contributions Deferred capital contributions represent the unamortized amount of restricted funds received for capital purposes. 2019 2018 Balance, beginning of year $ 13,566,870 $ 14,065,364 Capital contributions received 45,381 68,865 Recognized upon annuity contract maturities 2,335,000 ‐ Amortization of deferred capital contributions recognized (601,757) (567,359) Balance, end of year $ 15,345,494 $ 13,566,870 13. Externally restricted net assets

2019 2018 Endowed scholarships $ 7,152,912 $ 6,743,572 Other endowments 2,612,611 2,438,034 $ 9,765,523 $ 9,181,606 14. Investment in capital assets

2019 2018 Capital assets $ 35,255,539 $ 36,438,496 Amounts financed by: Loans and borrowings (17,576,149) (17,532,128) Annuity contracts (1,086,833) (3,421,833) Deferred capital contributions (15,345,494) (13,566,870) $ 1,247,063 $ 1,917,665 a) Change in net assets invested in capital assets resulting from deficiency of revenue over expenses for the years ended April 30: 2019 2018 Interest $ (825,188) $ (845,924) Annuity payments (130,241) (256,213) Amortization of capital assets (1,562,082) (1,631,167) Amortization of deferred capital contributions 601,757 567,359 Change in fair value of interest rate swap (549,327) 1,515,184 $ (2,465,081) $ (650,761)

13 Ambrose University Notes to the Financial Statements Year ended April 30, 2019

b) Net investment in capital assets for the years ended April 30: 2019 2018 Capital expenditures $ 379,125 $ 284,730 Payments of principal and interest on loans and borrowings 1,330,494 1,436,852 Advances of loans and borrowings ‐ (36,500) Annuity payments made 130,241 256,213 Financing provided by capital contributions received (45,381) (68,865) $ 1,794,479 $ 1,872,430 15. Related party transactions During the year ended April 30, 2019, Ambrose received contributions of $1.3 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. 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. 16. Sales, rent and ancillary revenue, net

2019 2018 Revenue Sales $ 1,093,726 $ 1,246,952 Rental 986,696 1,060,009 Events 156,702 180,795 2,237,124 2,487,756 Expenses Cost of goods sold 614,068 631,220 Contract services 473,962 585,013 Other 151,913 175,123 1,239,943 1,391,356

Sales, rent and ancillary revenue, net $ 997,181 $ 1,096,400 17. 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. Operating and cash flow losses have increased liquidity risk exposure during the year (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. 14 Ambrose University Notes to the Financial Statements Year ended April 30, 2019

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. 18. Commitments Ambrose has entered into various equipment operating leases that require the following annual payments:

Years ending April 30 Amount 2020 $ 78,000 2021 78,000 2022 78,000 2023 16,000 19. 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:

2019 2018 Donations $ 2,031,799 $ 2,093,532 Total direct expenses incurred for soliciting contributions 611,522 466,694 Remuneration to employees whose principal duties involved fundraising 424,057 290,094 20. Subsequent event Subsequent to April 30, 2019, Ambrose entered into a financing arrangement with a private lender who will provide $4 million of financing on a revolving basis until April 30, 2021. Loan advances bear interest at bank prime rate plus 2% (5.95% as of April 30, 2019). The financing is secured by first charge on a 14 acre parcel of vacant land with a carrying amount at April 30, 2019 of $1.4 million. Ambrose received advances totaling $2.8 million subsequent to April 30, 2019.

15 Ambrose University 150 Ambrose Circle SW Calgary, Alberta T3H 0L5 www.ambrose.edu