ar2003 04 cover - College of the North Atlantic

1 LETTER FROM THE BOARD CHAIR

2 LETTER FROM THE PRESIDENT

3 COLLEGE OVERVIEWProvincial Role: Responsiveness and InnovationNational and International RolePartnership and Cooperation: Facilitating Student Access and MobilityInstitutional Structure

5 THE 2002-03 YEAR IN REVIEWAchievements and AdvancementsProgramsAccreditationTransfer Agreements and Cooperative PartnershipsStudent ServicesApplied ResearchTechnology

8 CONTINUING TO DIVERSIFYRegional Consultative ProcessIncreasing Access and ResponsivenessExpanding the College’s International RoleCollege of the North Atlantic-Qatar

10 STUDENTS: ACHIEVEMENTS AND CHALLENGESEvidence of Graduate SuccessAwards and Recognition for College of the North Atlantic StudentsAccessibility

13 EMPLOYEE AND INSTITUTIONAL ACHIEVEMENTS AND RECOGNITIONEmployeesCampusesCollege

15 MANAGEMENT DISCUSSION AND ANALYSISRevenuesExpenditures

22 CHALLENGES

24 LETTER FROM THE BOARD OF GOVERNORS’ AUDIT COMMITTEE

25 AUDITORS’ REPORTStatement of Financial PositionStatement of Changes in Net AssetsStatement of OperationsStatement of Cash FlowNotes to the Financial Statements

TABLE OF CONTENTS

OUR VISION

To fulfill its mission, the public college of

Newfoundland & Labrador will:

• Be recognized for satisfied employable graduates

whose skills meet industry’s standards and

respond to the broad range of labour market

demands.

• Research and deliver quality programs that are

responsive to changing social, personal and

economic needs of learners through continuous

review and modification of programs.

• Monitor accountability to ensure effectiveness

and efficiency.

• Continually enhance learning opportunities by

implementing superior methods of instructional

delivery.

• Be proactive in the social and economic

development of the Province.

• Enhance the capacity of the College and the

Province through international initiatives.

• Recognize and respect the value of employees

and their contribution to quality programs and

services.

OUR MISSION

College of the North Atlantic is Newfoundland &

Labrador’s public college. We are committed to

providing accessible, responsive, quality learning

opportunities that prepare people to become self-

sufficient contributors to social and economic

development in a global context.

Annual Report 2002-2003 | 1

LETTER FROM THE BOARD CHAIR

The Board of Governors of College of the North Atlantic isthe legislated owner and final authority for the College,whose assets and operations they hold in trust for the peopleof Newfoundland and Labrador. The Board of Governors,therefore, is ultimately accountable to the public for howwell the College has managed its assets and operations.

As the trustee, the Board is also ultimately responsible formaintaining the overall integrity of the institution. It is theBoard’s collective duty to insist that the mission and visionof the College is clearly understood by stakeholders and thatthe organization’s major financial and educational decisionsare consistent with them. This annual report, in our respect-ful opinion, provides clear evidence that College of theNorth Atlantic continues to make considerable progress inthis regard. The Board firmly believes that the collective pur-suit of the College’s mission and vision – as first articulatedby the Board in September 1999 – will allow College of theNorth Atlantic to continue to thrive and excel as it pursuesits mandate provincially, nationally and internationally.

The Board recognizes and acknowledges the incredibleachievements of the College as an institution, and those ofthe many outstanding faculty, staff and students who makethe College what it is today. We know that exceptional fac-ulty, staff and students are no guarantee of success.However, we also know that any college without exception-al faculty, staff and students cannot achieve the kind of suc-cess that ours has.

I am very pleased to report that, like the College, theBoard of Governors continues to make considerable progressin our own pursuit of excellence. The Board has adopted and

continually aspires to six overarching good governance prin-ciples: leadership and stewardship; empowerment andaccountability; communication and transparency; serviceand fairness; accomplishment and measurement; and con-tinuous learning and growth.

The Board has made a conscious decision to lead andsteward the organization by championing the College’sstrategic planning and accountability initiatives. The wis-dom of this decision is already quite evident. We are veryconfident that the strategic pursuit of our collective missionand vision will lead only to further successes.

We will continue to work with the Government ofNewfoundland and Labrador to ensure that the Board iscomposed of individuals who possess the highest degree ofrelevant experience, skill and expertise; individuals who areleaders in their respective communities; individuals whoreflect the values of the people of Newfoundland andLabrador.

In that regard, the Board is extremely pleased to welcome10 new Board members. The new Board members comefrom a wide range of backgrounds and have industry expert-ise and experience that will benefit the College considerablyas it moves forward in fulfillment of its mandate. All of thenew Board members were strategically chosen for theirexpertise and the industry sectors they represent.

The Board of Governors of College of the North Atlanticis very proud of the organization’s many achievements overthe past 12 months. We continue to believe the College iswell positioned to successfully respond to the various chal-lenges it will face in the coming months and years.

Moya CahillBoard Chair

2 | College of the North Atlantic

LETTER FROM THE PRESIDENT

I am pleased to submit this report on the activities andaccomplishments at College of the North Atlantic for the2002-03 operating year. The College continues to be anextremely vibrant and exciting place. The past year has onceagain witnessed extraordinary achievements by our students,alumni, faculty and staff.

Of course, all of these activities and accomplishments arepresented within a context of calls for greater accountabilityfrom the public sector. The College has made and will con-tinue to make great progress in this regard. This annualreport is but one example of that progress.

The College continues to play a vital leadership role inthe communities it serves. Indeed, students, employers andmembers of the general public increasingly recognize theCollege’s significant contribution to the social and econom-ic development and sustainability of the entire Province ofNewfoundland and Labrador.

I would be remiss if I did not acknowledge the tireless

devotion of our faculty, staff and administrators who haveendorsed the concept of a student-centred college environ-ment. I pay tribute to their commitment and hard work. Itruly appreciate all that they have done, and all that theycontinue to do.

The College has many community partners who supportits mission and vision and who contribute to its many suc-cesses. The College works hard to promote partnerships withsecondary and post-secondary institutions, government,non-profit organizations and local businesses. I am extreme-ly grateful to the many community partners who continue toenable the College to leverage limited resources in order toprovide programming that makes a difference in the lives ofso many.

Thanks to the extraordinary efforts and commitment ofour students, alumni, faculty, staff, administrators, boardmembers and many friends, I am confident the College iswell prepared for whatever challenges may lie ahead.

Sincerely,

Pamela WalshPresident


College of the North Atlantic (CNA), Newfoundland andLabrador’s public college, is one of the largest post-second-ary education and training institutions in Canada. Over20,000 students are enrolled annually in a broad range offull-time and part-time programs.

The College offers more than 90 core training programsleading to certificate, diploma and advanced diploma quali-fications. Although the majority of students complete theirtraining on a full-time basis, the College also offers theoption of part-time enrollment in the core training pro-grams. In addition to the core training programs, theCollege delivers more than 300 courses through bothContinuing Education and Distance Education. TheCollege also works with a range of public and private organ-izations, employers and employer associations to developand deliver programs of customized training and, in cooper-ation with Memorial University, the College offers theopportunity for completion of the equivalent of a first yearof university studies at several of its campuses.

Of approximately 10,000 students enrolled in certificateand diploma programs of one to three years duration (Chart1), as many as 3,000 complete their programs annually andgraduate with highly marketable credentials. Most graduatesof the certificate and diploma programs take their skillsdirectly to the labour market where the College’s reputationfor quality training is widely recognized. However, there arealso many who choose to build on the strong foundation ofskills acquired at the College and continue on to completedegree programs at partner institutions.

PROVINCIAL ROLE: RESPONSIVENESS AND

INNOVATION

College of the North Atlantic, as the province’s sole publiccollege, has a mandate to deliver programs and services thatmake a substantial contribution to the development of theprovince’s workforce and economy. This is a mandate theCollege has fulfilled for several decades and one it continuesto pursue through the development and delivery of highquality skills training programs at its 17 regionally distrib-uted campuses.

The founding principle of the College, and one thatremains central to its role as the province’s public college, isthat programs of training should equip this province’s work-force with the knowledge and skills to compete with the bestin the provincial, national and international labour markets.The pursuit of this principle has required the College to con-tinuously assess changing labour market needs and torespond in an innovative manner to those needs as articulat-ed by labour market analysts, employers and communities. Ithas also required that the College work closely with its edu-cational and training partners, as well as the full range ofstakeholders, in the development and delivery of trainingprograms.

The College employs up to 1,500 faculty and staff atpeak periods. College faculty and staff also play a vital rolein the broader development of Newfoundland and Labrador– within their communities and their regions as well as at theprovincial level. Acting as representatives of the College, theyprovide expertise and leadership as members of RegionalEconomic Development Boards, Labour MarketDevelopment Committees and many other local, regionaland provincial committees and associations. In some com-munities, the College’s contribution extends to developingand incubating new businesses, developing prototypes, test-ing and analyzing products and providing much neededaccess to expertise, technology and state-of-the-art equip-ment.

COLLEGE OVERVIEW

Chart 1 - Annual Total Enrollment

9,501

10,11110,020

9,886

10,338

9,000

9,200

9,400

9,600

9,800

10,000

10,200

10,400

1998/99 1999/00 2000/01 2001/02 2002/03

Source: College of the North Atlantic

"Through a partnershipwith College of theNorth Atlantic, the IronOre Company of Canadahas been very success-ful in meeting its humanresource planningobjectives.The Collegehas been the education-al partner for the imple-mentation and deliveryof numerous trainingactivities to meet theneed of the miningindustry in LabradorWest. The College isvery capable of provid-ing training for the cur-rent workforce and ofpreparing individuals forthe workforce of thefuture which is so criti-cal to the success ofthe Company."Iron Ore Company of Canada


“Thanks to the innova-tive programs of Collegeof the North Atlantic,graduates are skilled tomeet the maintenanceand labour needs of thepulp and paper industry,thus enhancing partner-ships so critical to thesuccess of an industryoperating in a competi-tive international envi-ronment.”Abitibi-Consolidated

NATIONAL AND INTERNATIONAL ROLE

Though the College’s mandate remains centrally focused onthe training needs of this province’s workforce, it has alsoplayed a role in helping to shape the national training agen-da and, in recent years, has assumed an international role aswell. This involves membership and active participation ina number of national and international organizations includ-ing the Association of Canadian Community Colleges andthe Canadian Bureau for International Education. TheCollege is a participant in World University ServicesCanada’s refugee program and is becoming increasinglyproactive in the recruitment of international students. TheCollege also seeks opportunities for its students, staff andfaculty to take part in international education and contracttraining initiatives.

The most significant development in the College’sexpanding international role has been the establishment of acampus in the State of Qatar in the Arabian Gulf, nowbeginning its second academic year. CNA has undertaken a10-year contract to build a comprehensive college of tech-nology in Qatar’s capital city of Doha. Valued at US$500million, the Qatar contract represents the largest export con-tract ever awarded to a Canadian post-secondary education-al institution. The College’s success in attaining this contractis testimony to the strength of expertise and experience thathas been developed in Newfoundland and Labrador andwhich has served the residents of this province well for sev-eral decades. It is this expertise and experience which willalso enable the faculty and staff at College of the NorthAtlantic-Qatar (CNA-Q) to assist the State of Qatar in pro-viding quality education and training for the achievement ofits social and economic goals.

PARTNERSHIP AND COOPERATION:FACILITATING STUDENT ACCESS AND

MOBILITY

College of the North Atlantic continuously seeks to ensurethat its students benefit from the widest possible education-al and training opportunities. It also strives to be responsiveto the growing needs of all post-secondary students lookingto gain practical skills in order to secure employment. Tothat end, it has established formal articulation (transfer)agreements with universities in Canada and abroad. Theseagreements allow students in qualifying programs to transferseamlessly from a College diploma program to a universitydegree program with advanced standing. They also allowqualifying university students to transfer to College pro-grams with advanced standing.

The College has established partnerships and transferagreements with several Canadian and American institu-tions, including Memorial University in this province,Lakehead University in Ontario, University College of CapeBreton in Nova Scotia and Northwood University inMichigan. As noted earlier, the College also has an agree-ment with Memorial University that allows students at sev-eral CNA campuses to complete the equivalent of first yearuniversity studies.

INSTITUTIONAL STRUCTURE

The development and delivery of high quality programs thatare responsive to changing social and labour market needsrequires a strong and well-organized institutional structure.It also requires an institutional culture that ensures continu-ity and encourages innovation. The College’s school-basedmodel provides the structure in which such an institutionalculture can flourish. Within this model, programs are organ-ized under the following schools:

• Academic, General, and Transfer Studies• Applied Arts• Business Studies• Engineering Technology• Health Sciences• Industrial Trades• Information Technology• Natural Resources

As the province’s sole public college, College of theNorth Atlantic takes seriously its mandate to serve the peo-ple of Newfoundland and Labrador and to ensure that accessto programs and services is given priority status at all times.The distribution of campuses throughout all regions of theprovince ensures that, as far as possible, programs and serv-ices are responsive to local and regional needs.

Campus sites


ACHIEVEMENTS AND ADVANCEMENTS

College of the North Atlantic achieved significant progressin a number of program and service related areas during the2002-03 academic year. New programs were developed anda number of existing programs were successful in gaining orrenewing their national accreditation status. Partnershipswith other education and training institutions were extend-ed and existing partnerships strengthened. Student supportservices were improved and the College’s information tech-nology systems were upgraded and enhanced. Also, CNA’sresearch capability and services were expanded. The follow-ing provides a sample of the past year’s achievements andadvancements in these areas:

PROGRAMS

During 2002-03 the following new programs were devel-oped and approved by the College’s Academic Council fordelivery in 2003-04:

• Film and Video Production • Cultural Management• Environmental Health Technology• Primary Care Paramedicine• English as a Second Language• Internet Application Developer

In addition to these new programs, developmental workwas initiated in several other program areas. While the workis still ongoing in a number of areas, substantial review andupdating has been completed for the following:

• Business Administration/Management• Community Recreation Leadership• Community Studies• Information Technology• Digital Animation

ACCREDITATION

National and provincial accreditation status provide theassurance that the College’s programs meet the rigorous

quality standards set by each profession as represented by theaccrediting bodies. They also guarantee that students whograduate from these accredited programs have credentialsthat are recognized and accepted for their full value byemployers and other educational and training institutionsacross the country.

The following programs were successful in having theirnational accreditation status renewed by the relevant bodiesover the 2002-03 academic year:

• Medical Laboratory Science, accredited by the CanadianMedical Association

• Aircraft Maintenance Engineering, accredited by theMinistry of Transport

• Electronics Engineering Technology, MechanicalEngineering Technology (Co-op), and ElectricalEngineering Technology (Industrial Controls), accredit-ed by the Canadian Technology Accreditation Board

• Fish and Wildlife Technician, accredited by the NorthAmerican Technology Association

In addition to these, two other programs are in the finalstages of accreditation:

• Programmer Analyst (Co-op), St. John’s• Programmer Analyst, Grand Falls–Windsor

TRANSFER AGREEMENTS AND COOPERATIVE

PARTNERSHIPS

A key element of the College’s approach to achieving its edu-cational and organizational objectives is the forging ofalliances, partnerships and cooperative agreements with rele-vant institutions, organizations and agencies. In particular,transfer agreements with other post-secondary institutions inboth the college and university sectors are pursued for theirvalue to student mobility and access. In the past year two sig-nificant new agreements have been signed. An agreementwith the University College of Cape Breton (UCCB) allowsCollege of the North Atlantic Business Management gradu-ates to complete a Bachelor of Business Administration, and

THE 2002-03 YEAR IN REVIEW "The Civil EngineeringTechnology program atCollege of the NorthAtlantic not only pre-pared me for the work-place, it provided mewith the knowledge andabilities required toadvance technically atLakehead University inOntario. The courses Icompleted in theEngineering Technologyprogram were com-pletely transferable tothe engineering pro-gram at Lakehead. Thisenabled me to completemy undergraduate stud-ies in Civil Engineeringwithin two years ofgraduating from theCollege.”Lee Bennett, B.Eng., E.I.T. - Project

Engineer, Davis Engineering and

Associates Limited


Engineering Technology graduates to complete a Bachelor ofTechnology. An agreement with Memorial University allowsCollege of the North Atlantic Business students to transferto the University’s Bachelor of Business Administration pro-gram.

There have also been reciprocal benefits derived from theCollege’s cooperation with other organizations during thepast year. One notable example has been the College’s sup-port, along with other partners, for the Humber EducationAlliance’s opening of an International Student Centre inCorner Brook in January 2003. The Humber EducationAlliance was also instrumental in recruiting students fromCentral America to the College in the 2002-03 academicyear.

STUDENT SERVICES

The provision of services and support for students continuesto be an area of highest priority. The College works contin-uously to ensure students in all regions of the province haveaccess to quality post-secondary education, that their experi-ence as students of the College is optimal, and that they areprovided the greatest possible opportunity to make a suc-cessful transition from their training to the labour market orto further education and training. One especially significantadvancement in the area of student services and support dur-ing the 2002-03 academic year was the implementation ofAccess for Success, a project designed to improve both accessand retention. Resources were also allocated for the improve-ment of student recruitment processes and strategies, includ-ing the more effective use of e-mail.

Another area in which the College has significantlyimproved access for students has been in the provision oflearning opportunities through distance education. Over200 programs and courses are now available over theInternet through the College’s Distributed LearningServices, 40 of which were newly developed or re-designedduring the 2002-03 academic year. The College also provid-ed on-line training in Distributed Learning methodologiesto 77 College faculty during the year.

The 2002-03 enrollment in the College’s DistributedLearning courses totaled over 3,200 learners from more than250 Newfoundland and Labrador communities. The cours-es were also subscribed to by learners in each of the othernine provinces of Canada.

APPLIED RESEARCH

College of the North Atlantic recognizes the critical impor-tance of applied research to the continued relevancy and cur-rency of many program offerings and, as a public institution,to the College’s role in the communities served. Steps weretaken during the 2002-03 academic year to advance theCollege’s capacity for applied research and a strategy wasdeveloped for the establishment of an Office of AppliedResearch within the College.

The most significant development in respect to theCollege’s applied research capacity has been the establish-ment of the Atlantic Canada Opportunities Agency (ACOA)-supported Geospatial Research Facility at its Corner Brookcampus. Staffing of this facility began during the 2002-03academic year, with the first researchers taking up their posi-tions in September 2003. The facility is a key element of theexpansion of research and innovation capacity in terrestrialresources sectors (Forestry, Wildlife) in Atlantic Canada. Itwill utilize multi-agency and multi-disciplinary collabora-tion in the pursuit of its mandate to assist terrestrial resourcesectors in the region in the solution of problems and chal-lenges. Research projects to be undertaken at the facilityinclude:

• Biodiversity Assessment and Modeling• Three-Dimensional Visualization of Terrestrial

Environments• Landscape-Level Spatial Forest Modeling• Spatial Data Management and Communications• Sub-surface Mapping, Modeling and Visualization

TECHNOLOGY

The College is aware of the need to continuously upgrade itsinformation technology infrastructure and to utilize themost efficient software for the achievement of administrativeas well as program and service delivery objectives. Duringthe 2002-03 academic year, a number of steps were taken toensure the optimal use of IT systems to support administra-tive work, networking and learning/teaching activities. Thefollowing improvements and advancements are of particularnote:

Administrative The College is in the process of purchasing an EnterpriseResource Planning system which will replace the existingsystems for the running of its institutional affairs – includ-ing student administration, finance and human resources.The new system will allow for significant improvements inadministrative processes within the College and will provideenhanced capacity for processing business transactions bothinternally and externally.

Transfer agreementsbetween universitiesand colleges are “thewave of the future.” Paul Davenport, President,

University of Western Ontario

“The largest portion ofnew job creation isexpected in occupationsthat require a communi-ty college diploma ortrades certificate, suchas construction andtransportation trades,health and computersciences, firefightingand police work.” Dropouts Need Not Apply, The

Ottawa Citizen, August 28, 2000

3D visualization from theGeospatial Research Facility


NetworkingThe College’s Provincial Network Operating Centre (locat-ed at Ridge Road campus, St. John’s) has established newhardware and software maintenance agreements, which willensure that its networking system operates with minimuminterruption 24 hours a day, seven days a week. The Centrehas also undergone significant upgrading over the past yearto achieve the following:

• Increased data storage space• Better and faster access to data• Automated tape backup system to enable restoration of

data when required

Learning/TeachingAnother important area in which technological advanceswere made in the 2002-03 academic year was in support oflearning and teaching activities through the College’s web-based learning environment. Classroom-based teaching,video conferences, web-casts, graduation exercises and arange of other activities can now be recorded for later broad-cast, accessible to both students and faculty as required.

“I would recommendCollege of the NorthAtlantic to anyone whois looking for a qualityeducation. The Collegeoffers a better chancefor success because ofsmaller classes, andbecause of the qualityof instructors – theygenuinely care aboutour success.”Alicia Gillis, Second Year Tourism

Studies student and Fairfax

Financial Holdings Limited

Scholarship winner

“Anyone wishing toattain a solid foundationfor their career shouldattend College of theNorth Atlantic. Thequality of training andinstruction, and equallyas important, the sup-portive environment ofthe College, helped meto attain success in mychosen career.”Kent D. Goobie, Senior Technical

Account Manager, Premier

Support, Microsoft Canada, and

CNA Business Computer

Programming graduate


Over the past year College of the North Atlantic has contin-ued to diversify its programs and services, both proactivelyand in response to articulated needs. The College works withpublic and private employers and employer associations, aswell as a number of other organizations and agenciesthroughout the province, to assess the educational and train-ing needs of their staff and members and to develop anddeliver appropriate customized programs. In this, theCollege is at the forefront of a national trend towards anincreasingly responsive role for public colleges – a trendwhich has seen colleges become the largest supplier of adulttraining and education in Canada (Association of CanadianCommunity Colleges, Innovation Strategy, September 2002).

While much of the impetus towards diversification ofprograms and services has been consistent with the broadernational trend, there are factors specific to Newfoundlandand Labrador that require the College to adopt a responsiveand innovative approach to the delivery of programs andservices. The province’s relatively dispersed population, forexample, creates particular challenges for access. The pre-dominance of a regionalized approach to economic develop-ment and training initiatives (both provincial and federal)also requires that the College is able to provide a ‘fit’ betweenthe needs as articulated regionally and the programs andservices provided in each region. Perhaps the greatest chal-lenge the College faces, however, relates to the continuingproblem of out-migration from this province in the wake ofthe crisis in the fishing industry. Because of an exodus of98,700 from Newfoundland and Labrador in the periodfrom 1977 and 2002 (Government of Newfoundland andLabrador, Strategic Social Plan: From the Ground Up, 2002),College of the North Atlantic recognizes that its mandate tomake a substantial contribution to the economic develop-ment of this province includes, crucially, playing a role instemming this tide.

Another direction in which the College has continued toexpand and diversify is in the international arena. College ofthe North Atlantic, like many other Canadian public col-leges, has recognized the value of extending its role beyondprovincial and national borders in order to attract students

from outside the country. The value of recruiting interna-tional students lies not only in increased potential to gener-ate revenues but, perhaps more importantly, in the sharingand exchange of knowledge and expertise with other nationsand cultures. The College recognizes that such sharing andexchange benefits all participants, and it is of particular valueto the development of world class status for this province’spublic college.

Over the past year, efforts to provide diverse and respon-sive programs and services in order to meet the province’sneeds and to achieve the College’s growth objectives in theinternational arena have included province-wide consulta-tions as well as the creation of several new initiatives and therevision and updating of others. The following brief descrip-tions give an indication of the direction and scope of theseefforts:

REGIONAL CONSULTATIVE PROCESS

As a part of the process of assessing workforce training needsand social and economic development priorities, College ofthe North Atlantic has organized and conducted a series ofregionally-based consultation sessions over the past year.Fifty-three such sessions involving staff and students fromthe College campuses, members of community economicdevelopment agencies, representatives of municipalities andChambers of Commerce, funding agencies and industry rep-resentatives have provided the opportunity for all the stake-holders to participate in the identification of the issues fac-ing communities and regions and the training and econom-ic development needs of their populations. The sessions havealso given stakeholders the opportunity to help define themost appropriate role for their public college in addressingthose issues and needs, which include (as identified throughthe consultative process) changing demographics, projectedskills shortages, recruitment and retention of students andfaculty and physical infrastructure issues.

INCREASING ACCESS AND RESPONSIVENESS

In response to the need for flexibility in the delivery of itsprograms, the College’s continuing education service has

CONTINUING TO DIVERSIFY“The government musttake the lead nationallyto realize college andinstitute ownership …and act to facilitate theinfrastructure, fundingand technologicalupgrading required tolet these institutions dotheir jobs and stop theerosion of the essentialfoundations of a strongeconomy.” A National Skills Agenda, 2001

Association of Canadian

Community Colleges


assumed a central and growing role. In the past academicyear, over 450 continuing education courses were deliveredthroughout the province to more than 5,000 participants.

Responding to the training and developmental needs ofthe province’s workforce, as well as its public and privateagencies, organizations and associations, dictates a centrallyimportant role for the College’s community and corporateservices. These services have been enhanced over the pastyear. In particular, a revised approach to corporate contracttraining is intended to ensure the College is able to meet theneeds of employers, while at the same time improve its rev-enue generating capabilities in this area.

EXPANDING THE COLLEGE’S INTERNATIONAL

ROLE

In addition to the College’s substantial involvement in estab-lishing a fully comprehensive college of technology in theState of Qatar, considerable progress has been made in thepast year in extending the College’s other international activ-ities and linkages. For example, several new business andresearch contracts were secured in locations such as Peru,Vietnam and India and 29 Chinese students were recruitedto the College’s Engineering Technology programs in St.John’s. In addition, over 500 students now study College ofthe North Atlantic’s Engineering curriculum at JilinUniversity and Southern Yangtze University in China.

The College’s Distributed Learning Service also providedservices in the international arena over the 2002-03 year.These included the creation of a feasibility study for theCaribbean Distance Education Network (for the Institutefor Connectivity in the Americas and World Bank) and theestablishment of online distance education for fisheriestraining in Vietnam (for the International DevelopmentResearch Council).

Significant progress has also been made with respect toplanning and strategizing for increased international activi-ties with the finalization of an international business devel-opment plan and an international student recruitmentstrategy.

COLLEGE OF THE NORTH ATLANTIC-QATAR

As stated earlier in this report, the College has entered intoa 10-year agreement with the State of Qatar to develop andoperate a technical college in that Middle East country.

September 2001 saw this new college, consideredCollege of the North Atlantic’s 18th campus, accept its firstintake of students.

An average of 269 students enrolled in the expandingrange of programming offered at College of the NorthAtlantic-Qatar in 2001. It is expected the number of stu-dents attending this institution will rise each year, reaching aminimum of 3,000 by the end of the contract in 2012.

By all measures, the first year of operations for CNA-Q was

a tremendous success. But this triumph did not come with-out challenges. The most significant of these was maintain-ing normal operations during the United States-led waragainst Iraq.

Qatar is approximately 800 kilometres from Iraq andleading up to the war there was concern for the safety of col-lege personnel at the campus. Prior to the start of the con-flict, the college developed and successfully tested an emer-gency contingency evacuation plan. Also, a warden systemwas devised to keep all faculty and staff informed of the lat-est advisories and cautions from the various internationalembassies located in the Middle East. College employeesheeded the advice received through the warden system andas the conflict wore on, employees’ concerns about their per-sonal safety were alleviated.

Surprisingly, news reports in Canada and the UnitedStates during the war resulted in a greater awareness of Qataramongst North Americans. This was due to the coalitionforces being headquartered at a base in the country’s capitalcity of Doha, the same location as the Qatar campus, and ledto increased interest in the project from potential faculty andother staff. As new opportunities were identified and newprograms were under development, additional staff wasrecruited. When the academic year ended, CNA-Q employed69 people, including 10 managers, 40 instructors, and 19support staff.

CNA-Q carried out its first year of operations in a tempo-rary facility while its permanent home was being construct-ed. There were no negative impacts experienced as a result ofthis temporary set-up, however everyone involved with theproject is looking forward to moving into the new location,with classrooms and labs specifically designed to accommo-date the College’s program offerings. It is expected the per-manent facility will be ready for the 2004-05 academic year.

“Our partnership withCollege of the NorthAtlantic training depart-ments has been a verysuccessful one. Thecustomizing of coursesto meet specific indus-try needs is a uniqueservice offering thatprovides real value toan organization likeAliant. Training coordi-nators and staff of theCollege have been veryaccommodating in pur-suing solutions for ourparticular trainingrequirements. We areconfident that we canlook to College of theNorth Atlantic to meetsimilar needs asrequired.”Aliant


EVIDENCE OF GRADUATE SUCCESS

The overall success of College of the North Atlantic’s educa-tional and training capabilities is clearly evidenced in theresults of a 2002 study conducted by the Department ofYouth Services and Post-Secondary Education, Governmentof Newfoundland and Labrador. The report on that study,CareerSearch 2002: Employment Experience and Earnings of2000 Graduates provides detailed program-level informationon graduate employment, length of job searches, earninglevels, and satisfaction with time and money invested in theirprograms of study.

The study compared graduates from College of theNorth Atlantic, Memorial University and private colleges inthe province. On several measures, College of the NorthAtlantic graduates reported higher levels of success thaneither of the other two cohorts – including finding full-timeemployment (Chart 2) and, just as importantly, findingemployment directly related to job training (Chart 3).Graduates of the College’s three-year programs also reportedhigher earnings than either private college graduates or grad-uates of Memorial University’s four-year degree programs(Charts 4 and 5); overall CNA graduates also reported higherlevels of satisfaction with the time and money which theyhad invested in their post-secondary studies (Chart 6), aresult which may be in part attributed to College of theNorth Atlantic’s relatively low tuition fees. Frozen since1998, the College’s tuition fees are now the lowest in the

Atlantic region, according to research conducted by theCanada Millennium Scholarship Foundation (Chart 12, page 17).

STUDENTS: ACHIEVEMENTS AND

CHALLENGES

Chart 2 - Graduates Employed Full Time(More Than 30 Hours Per Week)

During Reference Week

58.2%

68.3% 69.2%

61.0%64.7%

55.9%46.7%

66.5%

58.5%

0%

20%

40%

60%

80%

1996 1998 2000Year Graduated

CNA MUN Undergraduate Private Colleges

Source: CareerSearch

Chart 3 - Job Directly Related to TrainingDuring Reference Week

58.4%62.4%62.2%

44.5%

50.8% 49.5%

66.2%

56.1%56.3%

0%

20%

40%

60%

80%




Chart 4 - Graduate Gross Weekly Wage $560 or MoreDuring Reference Week (June 24-30, 2001)

57.5%

67.9%

0%

20%

40%

60%

80%

MUN Undergraduate College 3 Year

Source: CareerSearch 2002

Chart 5 - Graduate Gross Weekly Wage $800 or MoreDuring Reference Week (June 24-30, 2001)

25%

30%

0%

5%

10%

15%

20%

25%

30%

35%

40%

MUN Undergraduate College 3 YearSource: CareerSearch 2002

Student Award of ExcellenceDawn Hamilton began her study of Miningand Mineral Processing in the WinterSemester of 2000 and completed a workterm in each of the Mine, Pellet Plant andConcentrator at the Iron Ore Company ofCanada. She has earned a certificate forher successful completion of the YouthProject Training Session from theCanadian Injured Workers Alliance.

After getting involved with the StudentActivities Council as a member at large inJanuary 2002, Dawn successfully ran forTreasurer in September 2002 and took itupon herself to represent students of thecampus on the Hyron Youth DevelopmentCommittee, which covers the LabradorWest and Churchill Falls area.

Dawn was a founding member of thecampus graduation committee in theWinter Semester 2002 and was activelyinvolved in many fundraising activities,helping to raise several hundred dollars forthe graduating class.

Dawn is currently working with the IronOre Company of Canada as a ProcessTechnologist in the Mineral Concentrator.This contractual staff position is for a dura-tion of five months, although hopes arevery high for an extension at the end of thisperiod.


AWARDS AND RECOGNITION FOR COLLEGE OF

THE NORTH ATLANTIC STUDENTS

While much of the evidence of student success is providedby surveys and research, there are other indicators of whichstudents, staff and faculty have more direct and immediateknowledge. These indicators range from the many everydaytriumphs that students experience as they gain new knowl-edge and master new challenges, to the annual graduationceremonies. But they also include, importantly, the awards,medals, outstanding performances, scholarships and bur-saries through which the excellence of CNA students is for-mally recognized. The following list provides a sample of thetypes of recognition CNA students have achieved over thepast academic year:

Scott Anstey, a second year Electronics EngineeringTechnology student at Corner Brook campus, was one oftwo students in the country to win the 2002/03 CanadianCouncil of Technicians and Technologists/Manulife FinancialScholarship, valued at $1,000.

Dena Budd was the first recipient of a new award forgraduates of the Medical Radiography program at PrincePhilip Drive campus in recognition of excellence in patientcare.

Alicia Gillis, of the Tourism Studies program at Bay St.George campus, and Candace Pilgrim, of the EarlyChildhood Education program at Corner Brook campus,each received the national Fairfax Financial HoldingsLimited Award in November 2002, valued at $3,500.

Kelly Lambert, a student in Adult Basic Education atClarenville campus, won the 2002 Canada Post IndividualLiteracy Achievement Award.

Robin Drodge, a Business Administration student atClarenville campus, was appointed to the Board of Directorsfor the National Educational Association of Disabled Students.

Brian Pretty, a student at Burin campus, won the R. M.Gooderham Bursary awarded by the Canadian WeldingBureau.

Jason Sparrow, Michael Greene, Jason Conway, andAlfred Sanford, a team of students from Prince Philip Drivecampus, won top honours at the First Annual Skills Canada

National Manufacturing Team Challenge in May 2003. Theteam went on to represent Canada at the 37th World SkillsCompetition in St. Gallen, Switzerland in June 2003.

College of the North Atlantic students won 16 GoldMedals in the 6th Provincial Skills Canada Competitions inMay 2003. Altogether, College students won 30 medals in17 categories at the competitions. Winners included: MarkButt, Conrad Sampson, Mark Porter, Geri Coady, RandyStead, Nolan Munden, Darrell Noseworthy, William Scott,Keith Bartlett, Greg Cook, Fraser Rees, Robert Terry,Cindy Pike, Danny Chapman, Krista Jostican, DouglasThomas, Brian Pretty, Glenn Osmond, ChristopherRussell, Wayne Haynes, Leo Dillon, Darin Dyson, MelissaStockwood, Catherine Bennett, Tina Smith, RogerTorraville, Kevin Hillier, Bradley Brake, Terri Pittman,Angela Wyatt and Dionne Power.

Eight College of the North Atlantic students won sevenmedals, including one Gold, in the Ninth National SkillsCanada Competition in May 2003. Winners included:Wayne Haynes, Daniel Chapman, Melissa Stockwood,Geri Coady, Mark Porter, Leo Dillon, William Scott andDana Young.

Fifty College of the North Atlantic students eachreceived the Atlantic Accord Award valued at $1,000.

Respiratory Therapy program students achieved a 100%pass rate on the Canadian Board for Respiratory CareNational Certification Examinations in September 2002,with the highest average marks of any school across Canadain that exam.

ACCESSIBILITY

The College continuously strives to identify and remove bar-riers to access and, over the 2002-03 academic year madesome significant advances in this area. In particular, theCollege has recognized the need for special attentions andinterventions to improve access for students from the fol-lowing groups:

Adults with Disabilities As a result of the College’s efforts to increase access, manymore people with some degree of disability are applying toenter programs. While many services available are of benefitto students with disability, it is recognized that in many casesthere may be need for a level of support and a range of serv-ices over and above what is available to the general studentpopulation. There may also be a need for a variety of accom-modations to be made. The College is committed to makingthe necessary supports and services available wherever possi-ble. Over the 2002-03 academic year, a guiding documentwas developed to support the transition of students with dis-abilities into College programs through a comprehensiveprocess aimed at documenting their needs and organizing tomeet those needs.

Chart 6 - Graduates Satisfied With Financial InvestmentDuring Reference Week

81.2%78.4%

82.6%

74.7% 74.0%

48.6%

66.8%

56.4% 56.6%

0%

20%

40%

60%

80%




Program Award of ExcellenceThe Occupational Therapist’s Assistant/Physiotherapist’s Assistant programs aredelivered via the World Wide Web throughthe Prince Philip Drive campus. Each pro-gram consists of 13 courses available onthe Internet plus a nine-week field place-ment. The Distributed Learning formatenables learners to take part in educationwithout the restraints of geography andtime. Technology enabled learning offersflexibility, collaboration, and interactionwithout the isolation normally associatedwith traditional distance education. It alsoimproves access for independent disci-plined learners. The first class graduated in1999 and since then enrollment in the pro-gram has continued to grow.


Older AdultsOne of the impacts of continued out-migration fromNewfoundland and Labrador is that the province’s popula-tion has a relatively smaller youth cohort than is the case inmany other parts of Canada. The College recognizes that agreater proportion of its student population in the future islikely to be older than may be the norm for student popula-tions generally. As older students enter College programs totrain or retrain, it will be necessary to make adjustments andaccommodations in order to facilitate access and success.Among the efforts the College continued to improve on overthe past year are:

• Prior Learning Assessment and Recognition – provid-ing students with the opportunity to receive credit forinformal learning gained through work and volunteerexperience

• Access to Training and Careers Initiative – facilitatingthe transition to College and providing the initial infor-mation, guidance and skills needed to make appropriatetraining and career choices

• Adult Basic Education Program – providing high schoolequivalency for those students who did not completetheir initial schooling

• Part-time and Distributed Learning – providing oppor-tunities for students to participate in programs whilethey work or retain full-time homemaking roles

Aboriginal PopulationsThe College recognizes that aboriginal populations inNewfoundland and Labrador may confront unique chal-lenges as they seek to improve their education or gain skillsthrough formal training programs. These challenges rangefrom geographical remoteness to language, literacy and edu-cational attainment barriers. There has been considerablesuccess in overcoming these challenges, however, and arecord number of aboriginal students enrolled in Collegeprograms at its campuses and learning centres in the 2002-03 academic year (Chart 7). Several factors contributed tothis success, including the introduction of theCollege/University Transfer Year, Community Studies, and

the Access to Training and Careers initiative as well as the re-offering of Orientation to Trades and Technology forWomen.

Women Responding to accessibility issues for women interested inpursuing post-secondary skills training is an importantdimension of the College’s access agenda. It is recognizedthat many of the initiatives to increase access for the groupslisted earlier will be of particular benefit for women who aremembers of those groups. But it is also recognized that theremay be access issues that affect women in particular and theCollege is committed to identifying and addressing any suchissues. One of the most significant achievements in respectto women’s access was the establishment of a partnershipbetween College of the North Atlantic and the province’sWomen in Resource Development Committee. Throughthis partnership the College hopes to better assist womenwith developmental issues related to participation in post-secondary, college-level programming.

Chart 7 - Ethnic Origin of Students Attending CNA

8.4%

3.1%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

9.0%

10.0%

Aboriginal Visible Minority


Teaching Award of ExcellenceBen Turpin is a Steamfitting/Pipefittinginstructor at Clarenville campus. Ben hasbeen teaching for over 25 years and holdsthe interprovincial Red Seal Certification, aDiploma of Vocational Education, a certifi-cate of training from the NationalEngineering Training Association Ltd., andhas Offshore Skills Certification.

His commitment to teaching is obviousin the lengths at which he goes to help hisstudents. He is known for embracing newtechnologies and teaching methodologiesto deliver quality education with a positiveapproach.

He developed a teaching videotape andmanual for the Steamfitting/Pipefitting pro-gram as well as PowerPoint lectures and awebsite to reach beyond the classroom.

He’s also written a computer programusing GWBasic to allow students to pro-vide feedback on his program.


The success of College of the North Atlantic owes much tothe quality of its leadership as well as its faculty and staff.Over the 2002-03 academic year, there have been manynotable achievements at the individual, campus and collegelevels. There has also been public recognition for the value ofthe work carried out by the College. It is not possible to listall the distinctions, awards and advances achieved by theCollege’s administration, faculty and staff over the past year.The following is a sample:

EMPLOYEES

Guy Penney, an Instructor in Business Management(Accounting) at Prince Philip Drive campus, received the2002 Gary Bourne Award in recognition of his contributionto the Certified General Accountant’s Association.

Jim Davis, a Program Development Coordinator atCollege headquarters, was presented with an Honorary LifeMembership by the Newfoundland and Labrador Associationfor Adult Education for his contribution to adult educationin the province.

Wade Pinhorn, a Coordinating Instructor in the MusicIndustry and Performance program at Bay St. George cam-pus, received the Music Educator of the Year Award from theMusic Industry Association of Newfoundland and Labrador.

Lori Lynn Lynch, an Instructional Assistant atCarbonear campus who is completing a Masters ofEngineering degree, received a Fellow of the School ofGraduate Studies Award from Memorial University.

Cyril Organ, an Associate District Administrator at BaySt. George campus, received a provincial Community ITHero Award for his contribution to the utilization of infor-mation technology in his community.

Pamela Walsh, President of College of the NorthAtlantic, received a Queen’s Golden Jubilee Medal for her con-tribution to post-secondary education. She was also recog-nized as one of the Top 50 CEOs in Atlantic Canada byAtlantic Business magazine and was appointed to IndustryCanada’s National Selection Committee for the Broadband forRural and Northern Development pilot project.

Bob Simms, District Administrator at Happy Valley-

Goose Bay campus, received a Queen’s Golden Jubilee Medalfor his contribution to post-secondary education.

The Queen’s Golden Jubilee Medal was also awarded to 11former employees of the College in recognition of their con-tributions to the province’s public college system: DormChipp, Fintan Costello, Dolorosa Dollard, Kenneth F.Duggan, Doug Fowlow, Fred Green, Donald G. Heale,Newman Kelland, Arend (Art) van Kesteren, Ron Sparkesand Eric G. Yetman.

CAMPUSES

Corner Brook campus reintroduced the Millwright andWelding programs in the 2002-03 academic year. It alsolaunched the Manufacturing Operations Technology pro-gram in 2002 and partnered with the Department of ForestResources and Agrifoods to establish three laboratories in theregion.

Gander campus was recognized during the 2002-03 yearby the Lifesaving Society for its contribution to boating safe-ty in the province. It was also recognized by the Governmentof Newfoundland and Labrador in 2002 for its role in host-ing stranded airline passengers following the September 11,2001 terrorist attacks in the United States.

Port aux Basques campus is one of 10 Non-DestructiveTesting examination centres in Canada. In December 2002,the Non-Destructive Testing Certifying Agency(Department of Natural Resources, Canada) gave the Portaux Basques centre the top ranking in the country based onsatisfaction surveys of students examined there.

Bay St. George campus enrolled its first student fromMexico through the Humber Education Alliance partner-ship. Eric Resendiz is a student in the Business program.

Ridge Road campus registered 29 students from Chinain the Electronics Engineering Technology program.

EMPLOYEE AND INSTITUTIONAL

ACHIEVEMENTS AND RECOGNITION

Staff Award of ExcellenceDebbie McCarthy began working with theCollege in 1986 at the Topsail Road campusas a Laboratory Technologist with theHealth Sciences department. She trans-ferred to the Engineering TechnologyCentre in 1996 and has remained there untilpresent day, working with the variouschemistry programs as a LaboratoryTechnologist II.

Eric Resendiz experiences snow for thefirst time at the Bay St. George campus.


COLLEGE

College of the North Atlantic Awards of Excellence (2002) wereawarded to Debbie McCarthy, Staff; Ben Turpin, Teaching;John King, Leadership; Dawn Hamilton, Student; andOccupational Therapist’s Assistant/Physiotherapist’sAssistant, Program.

College of the North Atlantic, along with the MarineInstitute, co-hosted the Association of Canadian CommunityCollege’s annual conference in May 2002 in St. John’s. CollegePresident, Pamela Walsh, chaired the conference, attendedby approximately 1,000 faculty, staff, administrators andstudents from colleges across the country.

College of the North Atlantic-Qatar campus opened inSeptember 2002. Nearly 300 students successfully complet-ed their first year of studies at CNA-Q in June 2003.

The College’s Board of Governors was expanded in 2002to include a broader range of representatives from businessand industry.

The College held its first graduation ceremony outsidethe province in September 2002. Fifty-six students at JilinUniversity in Changchun, China received College of theNorth Atlantic diplomas in Electronics EngineeringTechnology.

Leadership Award of ExcellenceJohn King, manager of the DistributedLearning Centre, and now Chair of theDistributed Learning Service, has managedthe Distributed Learning Centre inClarenville since its inception in 1999. Inthat time, the Centre has been recognizedas one of only six Certified WebCTInstitutes in Canada and has received theCanadian Association of DistanceEducation (CADE) Excellence inPartnership award.

John has led the Centre in its develop-ment of over 200 online courses, variousprivate sector contracts and internationalinitiatives. In addition to his professionalresponsibilities John is an active communi-ty volunteer. He has served on theExecutive of the Clarenville Chamber ofCommerce and is the current Vice-Chair ofthe Terra Nova Heritage Foundation.


College of the North Atlantic headquarters is located inStephenville, on the west coast of the island portion of theprovince. Headquarters consists of the President’s office, theoffice of the General Counsel and Corporate Secretary, andthe four Executive Divisions: Administration, Programs,Student Services, and Advancement/College Development.Regional administration is provided by each of the College’sfive District Administrators (one per district) and the 21Associate District Administrators located throughout theCollege’s 17 campuses.

Of the College’s approximately $90 million annualbudget, about 50% comes from a provincial governmentgrant. The Management Discussion and Analysis section

details how the college efficiently uses its revenues and elab-orates on the significant challenges and operational issuesfaced by the institution.

REVENUES

On a national level, the education sector continues to com-pete for increasingly scarce public sector funds – and it con-tinues to lose ground. For example, from 1998-2002,national health care spending increased by 59% while edu-cation spending increased by only 22%. The ConferenceBoard of Canada reports that public health care expenditureswill increase from 32.4% of total provincial governmentexpenditures in 2000/01 to 44.8% in 2019/20. At the same

MANAGEMENT DISCUSSION AND

ANALYSIS

DEPARTMENT OF YOUTH SERVICES& POST-SECONDARY EDUCATION

BOARD OF GOVERNORS

PRESIDENT

ADMINISTRATION PROGRAMS

GENERAL COUNSEL &CORPORATE SECRETARY

STUDENT SERVICESCOLLEGE DEVELOPMENT

DISTRICT 1

Happy Valley–Goose BayLabrador West

DISTRICT 4

BonavistaClarenville

BurinCarbonearPlacentia

DISTRICT 5

Prince Philip DriveRidge RoadSeal Cove

DISTRICT 3

Grand Falls–WindsorGander

Baie Verte

DISTRICT 2

Corner BrookSt. Anthony

Bay St. GeorgePort aux Basques

Organizational Chart


time, education expenditures are projected to decline fromtheir current levels of 19.5% to 18.8% over the same period(Chart 8).

An analysis of public sector spending in Newfoundlandand Labrador continues to yield results that are similar tothose found in national studies. As recently as 1993-94spending on education and health care in this province werevirtually identical (Chart 9). Since 1993-94, however, spend-ing on education has declined from 22.47% of the provin-cial government’s total expenditures to its current level of19.2%. At the same time, health care spending has increasedfrom 1993-94 levels of 22.1% of the provincial government’stotal expenditures to their current levels of 30.7% (Chart10).

Table 1 on the following page lists the sources, sourcepercentage, and percentage change of College revenue(excluding the amortization of deferred capital contribu-tions).

Total revenue, excluding the amortization of deferredcapital contributions for fiscal year ending March 31, 2003,was $90,662,339, compared with $86,709,111 for fiscalyear ending March 31, 2002. This represents a year-to-yearincrease of 4.56%. The following discussion highlights fac-tors contributing to fluctuations.

Provincial Grant-In-Aid (GIA) contributions continue torepresent the single largest source of revenue for the Collegeand have remained relatively constant as a portion of theCollege’s total revenue.

An analysis of GIA contributions (direct subsidies) to theNewfoundland and Labrador public college system (sincethe 1992-93 fiscal year) reveals that GIA contributionspeaked in 1994-95 at $53 million, declined sharply to $39.6million in 1997-98 when the five former regional collegeswere amalgamated, and then increased marginally each yearto the current allocation of $47.3 million under the one-col-lege system. However, when the GIA is indexed to inflation,a different picture emerges. In 1994-95 indexed GIA peakedat $52 million (1992 dollars), declined to $36.8 million in1997-98 (1992 dollars) – when the five former regional col-leges were amalgamated – increased modestly over the nexttwo years to approximately $40 million and then remainedrelatively constant the last four years (Chart 11).

Administration includes revenue from interest, facilityrentals, and proceeds on disposition of assets. Fiscal year2003 saw a decrease in interest rates causing the decrease ininterest revenue.

Table 1 demonstrates an increase in instructional revenuethat is comprised of all revenue sources from regular pro-gram offerings according to a predefined program plan.More specifically, this includes tuition, equipment and mate-rials fees, funding provided through the Skills DevelopmentContribution Agreement (SDCA) between the province andthe federal government, and sponsorship revenue from

Chart 8 - Total Public Spending on Health and Education

($ b

illio

ns)

0

10

20

30

40

50

60

70

80

90

1966 1969 1972 1975 1978 1981 1984 1987 1990 1993 1996 1999 2002f 2005f

Education Health care Source: Conference Board of Canada

Chart 9 - Health Care and Education Sector Expendituresfor Newfoundland and Labrador

($ m

illio

n)

0

200

400

600

800

1,000

1,200

1,400

1991

/92

1992

/93

1993

/94

1994

/95

1995

/96

1996

/97

1997

/98

1998

/99

1999

/00

2000

/01

2001

/02

2002

/03

2003

/04

Education Health care Source: Government of Newfoundland and Labrador

Chart 10 - Education and Health Care Expenditures as a Share of Newfoundland and Labrador's Total Expenditures

0%

5%

10%

15%

20%

25%

30%

35%

1991

/92

1992

/93

1993

/94

1994

/95

1995

/96

1996

/97

1997

/98

1998

/99

1999

/00

2000

/01

2001

/02

2002

/03

Education Health care Source: Government of Newfoundland and Labrador

agencies such as the Worker’s CompensationCommission, Human Resources &Employment and native groups. Under theSDCA the College invoices for each HumanResources Development Canada sponsoredstudent. While the College was initially lim-ited to $10 million, this has increased to$11.2 million. In prior years, the College hasreceived more than the limit due to slippagein other program areas.

As provincial governments, includingthe Government of Newfoundland andLabrador, struggle to strike a balancebetween competing demands for theirincreasingly scarce resources, their educa-tional institutions, including public collegesand universities, are left with few alterna-tives. Publicly funded educational institu-tions, especially publicly funded post-sec-ondary educational institutions, must findways of providing increasingly expensivelearning opportunities to the consuming public in an envi-ronment of diminishing government support. College of theNorth Atlantic is no exception.

Many educational institutions have responded to thechallenge by making extremely difficult decisions. In somecases they have increased tuition fees, while in others theyhave searched for more unconventional sources of revenue,often reluctantly settling for a combination of both. CNA has,in collaboration with its provincial government, avoidedincreasing tuition fees. In fact, in 1998, as part of its man-date to maintain and increase accessibility, the Collegeimplemented a voluntary tuition freeze. As a result of thatfreeze, College of the North Atlantic students now enjoysome of the lowest tuition fees in the country. According toresearch conducted by the Canada Millennium ScholarshipFoundation, as of 2002 College of the North Atlantic’stuition remained the lowest of all the Atlantic Provinces(Chart 12).

The revenue implications of this tuition freeze are suchthat the College has managed to realize modest growth (inreal dollars), due to relatively stable enrollment growth, froma low of $7.33 million in 1998-99 to its current level of$8.95 million. However, when tuition revenues are indexedto inflation, there is a marked decline in tuition revenue.Indexed tuition revenue peaks in 1999-2000 at $8.23 mil-lion (1992 dollars) and then declines steadily over the nextthree years to $7.68 million (1992 dollars) (Chart 13).

Application and registration fees are the main compo-nent of Student Services revenue. The fiscal year endingMarch 31, 2002 saw higher than normal revenue due to achange in the timing of acceptance letters being issued andregistrations fees assessed. Acceptance letters were historically


Chart 11 - Grant-in-Aid Revenues (Actual and Indexed)

($ m

illio

n)

0

10

20

30

40

50

60

70

1991

/92

1992

/93

1993

/94

1994

/95

1995

/96

1996

/97

1997

/98

1998

/99

1999

/00

2000

/01

2001

/02

2002

/03

Actual Indexed (1992) Source: College of the North Atlantic

Chart 12 - College Tuition Rates for Atlantic Canada

$0

$500

$1000

$1500

$2000

$2500

$3000

$3500

1991

/92

1992

/93

1993

/94

1994

/95

1995

/96

1996

/97

1997

/98

1998

/99

1999

/00

2000

/01

2001

/02

2002

/03

2003

/04

NL PEI NS NB Source: Millenium Scholarship Foundation

CategoryGrant-in-aidFacilitiesAdministrationInstructionalStudent ServicesResaleApprenticeshipContract/Community EdInternationalSpecial ProjectsSubtotal

GIA/Functional - AboveDeferred CapitalTotal

Change%

1.42-21.18-22.68

6.60-15.73-0.033.71

-0.0361.1561.58

4.56

4.5617.915.26

March 31, 2003Amount ($)47,267,165

5,213199,910

21,208,223554,924

4,345,5432,223,9299,436,6821,127,0274,293,723

90,662,339

90,662,3391,563,403

92,225,742

%52.130.010.22

23.390.614.792.45

10.401.244.73

100.00

97.842.16

100.00

March 31, 2002Amount ($)46,602,831

6,614258,572

19,895,038658,553

4,347,0562,144,2329,439,565

699,3292,657,321

86,709,111

86,709,1111,325,945

88,035,056

%53.750.010.30

22.940.765.012.47

10.880.803.06

100.00

98.491.51

100.00

Table 1 - Summary of Revenues


sent to students during the summer months, however in2002 they were issued in January. This change resulted in aone-time increase in Student Services revenue.

As a result of relatively stagnant revenue streams in theface of escalating operational costs, College of the NorthAtlantic has been compelled to invest significant energiesand resources into the generation of revenue from alternativesources. Today a significant portion of the College’s revenuesis derived from non-grant-in-aid sources like community,corporate and international training initiatives. While someof these activities have produced tangible results, especiallyin the international arena, they continue to produce mar-ginal net revenue gains for the College.

Revenue from all other sources including retail (book-store sales, other sales and community, corporate and inter-national contract training, amongst others) has increasedover the past five years. In 1998-99, revenues from all othersources amounted to $31.2 million. In 2002-03, revenuesfrom all other sources increased to in excess of $36 million(Chart 14). However as a percentage of total revenues, itremained relatively constant in the 37%– 39% range.

This is further demonstrated by a review of the data inTable 1. Resale, apprenticeship, and contract/communityeducation has remained stable. International revenue has

increased due to international tuition received from studentsinvolved in the College’s China project. In addition, theCollege is involved in a contract training agreement with RasGas Petroleum – an oil and gas company located in Doha,Qatar – whereby Ras Gas employees attend programs at theSeal Cove and Placentia campuses.

In March 2002, the College was able to secure ACOA

funding to purchase approximately $4 million in capitalequipment to address the need to upgrade existing programsand to develop new programs. As of the fiscal year endingMarch 31, 2003 the College was a full year into its agree-ment with the State of Qatar on the startup of the Qatarcampus. These two activities have resulted in an increase tospecial project revenue.

The amortization of deferred capital contributionsincreased from $1,325,945 for fiscal year ending March 31,2002 to $1,563,403 for fiscal year ending March 31, 2003.This represents the revenue from grants received by theCollege to purchase capital items and is directly related tothe amortization expense of these same assets.

EXPENDITURES

In a pattern that roughly parallels year-to-year changes inCollege revenues, total College expenditures have fluctuatedover the past eight years. Total expenditures reached a highof $97.2 million in 1995-96, a low of $72.6 million in1997-98, and have increased steadily since, to their currentlevels of $93.9 million (Chart 15).

Total expenditures are displayed in the table on the fol-lowing page. The table breaks down expenditures excludingsalaries, benefits, and amortization for each functional area,showing their percentage of the total direct operating costand percentage change from fiscal year ending March 31,2002.

Expenditures totaled $93,964,843 for fiscal year endingMarch 31, 2003, compared to $90,542,793 for fiscal yearending March 31, 2002. This represents an increase in expen-ditures of 3.78%. Of this total, the core functional areas(facilities, administration, instructional, student services,and information technology) totalled $13,517,640 for fiscal

Chart 13 - Tuition Revenues (Actual and Indexed)

($ m

illio

n)

5.0

5.5

6.0

6.5

7.0

7.5

8.0

8.5

9.0

9.5

10.0

1997/98 1998/99 1999/00 2000/01 2001/02 2002/03

Actual Indexed (1992) Source: College of the North Atlantic

Chart 14 - Other Revenues

($ m

illio

n)

0

5

10

15

20

25

30

35

40

45

1991

/92

1992

/93

1993

/94

1994

/95

1995

/96

1996

/97

1997

/98

1998

/99

1999

/00

2000

/01

2001

/02

2002

/03

Source: Government of Newfoundland and Labrador

Chart 15 - Total Expenditures

($ m

illio

n)

0

20

40

60

80

100

120

1995/96 1996/97 1997/98 1998/99 1999/00 2000/01 2001/02 2002/03



year ending March 31, 2003 compared to$14,423,717 for the previous fiscal year.This was a decrease of $906,077 or 6.28%which is mainly attributable to reductions inspending. As with preceding revenue analy-sis, the following discussion concerns signif-icant fluctuations only.

Administration captures expenses relatedto the oversight of campuses as well as thesupport services provided by College head-quarters. It is important to note that thisfunction includes some expenses that havenot been allocated to other functional areas(i.e. telephone, office supplies). The decreaseexperienced in this area is attributable to anumber of different factors. First, a plannedreduction in travel was achieved. Second,the awarding of the photocopier tender infiscal year 2002 has seen an annualization ofcost savings. Also in the last fiscal year, theCollege finalized its fixed asset valuation andinventory project and assets are now writtenoff after the conclusion of inventory counts.

Instructional expenses reflect all expenses related directlyto the offering of the College’s program plan. Primary costsaving components to the reduction in this area relate to adecrease in professional development spending, and achieve-ment of planned reductions in travel. One other area of costsavings was the reduction in project contributions from theinstructional budget.

Registrar, counselling, and general inquiry services, alongwith the executive leadership function, are all areas includedunder Student Services. While a number of these expendi-ture areas fluctuated, the main reason for the overall reduc-tion is due to a decrease in general materials and suppliesspending as discussed earlier.

Information Technology comprises all expenses related tocomputer support at the campus and provincial level, localand wide area networks, and Internet access. The increase inspending is attributable to an increase in the tenderedamount for Internet access, based on improvements to band-width at individual campus levels. All hardware related tothe management information system, e-mail and databases ishoused in St. John’s. These systems are then accessed by allcampuses and employees province-wide, including head-quarters. Another factor was an increase to minor computerequipment, a result of an increase in the limit of capitaliza-tion.

Under the resale function, expenses for bookstores, day-cares, cafeterias, and residences are accumulated. While rev-enue has remained consistent, there has been a reduction inoverall expenses excluding salaries, benefits and amortization(Table 2). The most significant expenses under this category

are the costs of textbooks and food. The reduction in resaleexpenditures is due primarily to a reduction in cost of text-books. This can be attributed to higher inventory levels($706,643 for March 31, 2003; $635,488 for March 31,2002) as a result of lower than expected sales levels for fiscalyear ending March 31, 2003.

As explained under the revenue discussion,contract/community education, international and specialproject costs fluctuate depending on the contract/projectactivity of the current fiscal year. The type of activity willdictate the expenses incurred.

The single largest expenditure item for the College issalaries and related benefits. In 1995-96 salaries and relatedbenefits totaled $70.8 million. Salaries and related benefitsthen dropped after amalgamation to a low of $51.6 millionin 1997-98, and have, like total expenditures, increasedsteadily to their current levels of $66.56 million (Chart 16).While the increase in salaries and benefits appears significantin terms of dollar values, there is actually very little changein terms of percentage of total expenditures. In fact, since

Chart 16 - Salaries and Benefits

($ m

illio

ns)

0

10

20

30

40

50

60

70

80

1995/96 1996/97 1997/98 1998/99 1999/00 2000/01 2001/02 2002/03


CategoryFacilitiesAdministrationInstructionalStudent ServicesInformation TechnologyResaleApprenticeshipContract/Community EdInternationalSpecial ProjectsSubtotal

Functional Areas - AboveSalaries & BenefitsAmortizationTotal

Change%

0.78-9.34

-12.51-5.229.26

-2.98-6.87-3.3919.30

126.051.87

1.875.06

-4.243.78

March 31, 2003Amount ($)

3,203,1034,506,1103,693,660

843,1261,271,6413,140,799

432,9842,549,191

525,1512,612,906

22,778,671

22,778,67166,563,6544,622,518

93,964,843

%14.0619.7816.223.705.58

13.791.90

11.192.31

11.74100.00

24.2470.844.92

100.00

March 31, 2002Amount ($)

3,178,3834,970,0854,221,770

889,5991,163,8803,237,379

464,9062,638,545

440,1951,155,910

22,360,652

22,360,65263,355,2024,826,939

90,542,793

%14.2122.2318.883.985.21

14.482.08

11.801.975.16

100.00

24.7069.975.33

100.00

Table 2 - Summary of Expenditures


1996-97, when salaries and related benefits accounted for73% of the College’s total expenditures, salaries and relatedbenefits expenditures have remained relatively stable,accounting for approximately 70% of total expenditures(Chart 17).

As noted previously, salaries and benefits for 2001-02totaled $63,355,202 compared with $66,563,654 for thispast fiscal year. This represents a total increase of $3,208,452or 5.06%. Salary expenditure increases can be attributed tothree variables: negotiated wage settlements with bargainingunit employees, the College’s aging workforce, and increasesin overall College activity. For example, the number ofemployees earning over $50,000 annually has increased from306 in 1998 to 493 in 2002. Similarly, the number ofemployees earning less than $25,000 has decreased from 338

in 1998 to 225 in 2002(excludes those earningless than $10,000)(Table 3).

For the past fouryears, College of theNorth Atlantic has, inco-operation with theAssociation of Canadian

Community Colleges (ACCC), participated in the Financialand Resource Allocation Benchmarking studies being con-ducted by the national consulting firm KPMG. The last study,conducted in 2002, involved the comparison of 11 collegeslocated in seven provinces.

The purpose of the study is not to determine which col-lege has the best financial administration or who best allo-cates resources, but to provide the participant colleges withan opportunity to benchmark their own financial expendi-tures and to compare them with those of other colleges. Inthis context, colleges are very different and comparisons canoften be quite difficult. There are a number of internal andexternal variables that determine why one college investsmore money in one area and spends less in another.Geography, labour market conditions and government

funding levels are just a few factors that will impact uponresource allocations.

The College’s 1.9:1 ratio of faculty full-time employees(FTE) to the total management and support staff FTEs was thehighest among the 11 study participants, and almost twicethe median of 1.1:1 faculty FTEs to management and sup-port FTEs (Chart 18). Similarly, the study examined the ratio

of instructional costs to instructional administration andsupport costs. Again, the College’s results appear to befavourable. CNA’s expenditure ratio of 6.2:1 instructionaldollars for every dollar of instructional administration andsupport was third best in the study and a full 1.3 dollarsabove the study median (Chart 19).

For College of the North Atlantic, the sheer number ofcampuses, provincial demography and geographical limita-tions make it very difficult to carry out valid comparisonswith other colleges. Nonetheless, KPMG participant NovaScotia Community College (NSCC) does have a number ofsimilarities with CNA. Its program offerings, administrativestructure, and the large number of campuses spread out overa fairly large region allow for some meaningful comparisons.

When compared to NSCC, the College’s expendituresappear to be reasonable. In 2002, the College expended40.1% of its budget on instructional personnel while NSCC

expended 38.9%. Similarly, the College expended 29.9% of

Chart 17 - Salaries and Benefits as a Portion of Total Expenditures

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

1995/96 1996/97 1997/98 1998/99 1999/00 2000/01 2001/02 2002/03


Chart 18 - FTE Ratios - Instructors to Total Management

00.20.40.60.81.01.21.41.61.82.0

6 8 4 10 11 5 2NSCC

7 1 3 9CNA

Source: KPMG

Chart 19 - Ratio - Teaching Costs toTeaching Administration Costs

0

1

2

3

4

5

6

7

8

9

10

2 4 6 7 1 10 5 9CNA

3 11

Source: KPMG

1998

774

338

539

299

7

1999

601

302

520

352

13

2000

1,204

251

615

361

10

2001

1,139

271

581

429

19

2002

730

225

562

447

46

Under $10 000

$10 001 to $25 000

$25 001 to $50 000

$50 001 to $75 000

Over $75 000

Table 3 - Employee Income Stratification


its budget on management and administrative support,while NSCC expended 30% of its budget on the same. Whenfacility, ancillary and contracted services costs and large one-time expenditures are excluded, CNA’s expenditures levelsappear to be even more favourable. (Chart 20).

The change in amortization is a reflection of the timingof asset purchase and the method of amortization used. TheCollege uses the straight-line method of amortization whereoutside of capital improvements, the maximum rate is fiveyears. While the amount spent on fixed assets has remainedfairly stable, the major purchase of computer related items in2000 was completely amortized by the end of fiscal year –March 31, 2003 – accounting for the decrease in amortiza-tion expense.

The investment in fixed assets for fiscal year endingMarch 31, 2003 amounted to $4.4 million. Normally, fund-ing for fixed assets is from a $500,000 capital grant from theprovincial government, operating savings and contract/proj-ect activity. In some years, the College’s provincial govern-ment allotment has been increased for special purposes. Inthe fiscal year ending March 31, 2003, there were fewerfunds spent on fixed assets from general operating funds dueto budget constraints. The main source of funding for thefixed assets purchased was from agreements with ACOA,which contributed $3.7 million of the total.

As demonstrated earlier in Tables 1 and 2, the Collegeincurred a deficit of $1,739,101 for fiscal year 2003. Afterinclusion of unfunded severance and annual leave liabilitiesthis loss per the audited financial statements totaled$3,728,850.

This total deficit is a combination of operating deficit,capital equity and severance/annual leave deficit. The oper-ating deficit is a representation of the cumulative impact oftotal revenue and expenses without any impact for capitalasset adjustments and severance/annual leave.

Capital equity represents the net book value of assetsfunded through operating funds. Capital purchased throughprovincial capital grants and specialized funding (i.e. ACOA),are represented in a deferred capital contributions fund forfuture revenue recognition as the assets are amortized.

The severance/annual leave deficit represents the cumu-lative liability which is not part of the College’s fundingequation from the provincial government.

Chart 20 - 2002 Comparative Expenditures

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

Stud

ent S

uppo

rt Se

rvic

es

Info

rmat

ion

Tech

nolo

gy

Libr

ary

Serv

ices

Inst

ruct

iona

l Per

sonn

el

Inst

ruct

iona

l Man

agem

ent &

Sup

port

Inst

itutio

nal

Man

agem

ent &

Sup

port

Faci

litie

s

CNA NSCC

Source: KPMG


CHALLENGES

Despite making advances in technology, learning, and acces-sibility, CNA has encountered major challenges in respondingto and preparing for the highly publicized national skills-shortage forecast to take place over the next 20 years. Thefederal government’s 2000 Job Futures manual states thatsome form of post-secondary education or training will berequired for 72% of the 1.3 million new jobs currently beingcreated in the Canadian economy.

In order for College of the North Atlantic to respond tonew labour market demands, especially through the provi-sion of new and revised programs, it will be called upon toinvest more of its revenues in the area of new program devel-opment – whether for new capital acquisitions, constructionand infrastructure upgrades, or employee recruitment andprofessional development. CNA must strengthen its capabili-ty to access funding through labour market developmentagreements designed to support workforce training. TheCollege also must work diligently with employers to raiseawareness of their need to invest and reinvest in workforcetraining.

Without question College of the North Atlantic is con-cerned about the erosion of its physical infrastructure.Eleven of its buildings will be 40 years old in 2004. Anothernine buildings will be at least 30 years old that same year.These buildings require significant infusions of capital foressential maintenance and repairs. In some instances build-ing envelopes are in an advanced state of disrepair and canno longer be maintained. The College has estimated thetotal replacement cost of the buildings it currently occupiesto be approximately $240 million.

The Association of Canadian Community Colleges(ACCC) has identified deferred maintenance as a pressingnational problem, further exacerbated by simultaneous high-er student enrollment and retirement of faculty.

Required expansions to existing facilities ($15,420,000),renovations to existing facilities ($1,141,000), air qualityimprovements ($1,365,000), improvements to environmen-tal conditioning, such as asbestos testing and replacement ofcarpets and windows ($3,380,500) and building accessibili-ty improvements ($360,000) carry hefty price tags, com-

pounding the College’s capital challenges. Replacing capitalequipment, such as classroom furnishings, and computer,laboratory and shop equipment is estimated to cost between$4 and $5 million annually. The College’s annual capitalgrant is $500,000. In addition to growing concerns aboutthe quality of the work and learning environments, air qual-ity issues inhibit the College’s ability to operate effectively inthe warmer months of the year and tax the informationtechnology infrastructure.

Timing is critical in the goal of continuing to meetindustry standards while attracting national and internation-al stakeholders. Now that College of the North Atlantic hasmade significant advancements in programming and train-ing, it is imperative that it not lose momentum.

The College is faced with addressing issues in the humanresources side of the organization that include compensationpackages, recruitment and retirements. One key compensa-tion challenge is the level of faculty salaries under the currentfaculty classification system. In many instances trades andtechnology instructors are capable of earning two and threetimes their instructional salaries while working in their des-ignated trades. This is especially true where specializedknowledge is required.

With regard to employee recruitment, over the past sev-eral years the College has experienced an increasing numberof situations where positions have been declared hard-to-fill.In some cases, candidates have declined offers due to reloca-tion compensation issues.

CNA has a large number of employees eligible to retire ineach of the next 10 years. Within the next four years, a totalof 154 employees (approximately 16.5% of the College’sfull-time workforce) are eligible to retire. A large number ofthese employees are faculty (20%). Of the total managementpool, 25% are due to retire in the next four years, and of thetotal support staff, 9% are eligible to retire (Chart 21).

Over the past several years, approximately 35 employeeshave been eligible to retire each year, but only 17 people peryear, on average, have actually retired. If that trend contin-ues, there will be a large group of employees still in theCollege’s workforce who are eligible for retirement. An age

“Without additionalfunding for physicalinfrastructure andlearning technology, ourcolleges and instituteswill not be able to pro-vide the highly skilledworkforce that is sonecessary for ournation’s success andfuture prosperity.”ACCC Submission to the Standing

Committee on Finance Pre-Budget

Consultation, August 2000


analysis of the College’s employees suggests that this trendwill continue for the foreseeable future.

Another related challenge is that growth in the province’slabour market tends to favour urban economies. The chal-lenge in this context is to provide a meaningful response tothese new labour market demands without endangering theCollege’s – and province’s – commitment to improving post-secondary education levels in Newfoundland and Labrador’srural areas.

In terms of student recruitment, the province’s changingdemographics presents a number of challenges. According tothe Government of Newfoundland and Labrador’s 2003report entitled Beyond High School: The Report of the Follow-up Survey of June 2001 High School Graduates, high schoolenrollment is declining steadily. For instance, the number ofgraduates in June 1996, totaling 7,251, had declined to5,992 by June 2001. This may mean a decline for directentry high school students enrolling at the College.

There are internal and external challenges facing Collegeof the North Atlantic with respect to the provision of careercounselling and related career information to high schoolstudents and graduates. These challenges include externalfactors such as limited access to students while they areenrolled in high school, lack of transitional planning andinsufficient career development processes. Access is limitedgiven the increasingly competitive nature of post-secondaryeducation. This competitive environment refers in particularto the number of public and private institutions from with-in and outside the province attempting to gain an audiencewith the same high school population.

The College is also faced with addressing internalresource issues when it comes to providing adequate levels ofstudent recruitment and enrollment services. Through theseservices, CNA strives to ensure that current students andpotential students are well informed about the educationalprograms and services available to them and that they areappropriately supported during their participation.However, even with multiple campus locations across theprovince, providing an equitable level of such services in var-ious regions is a constant challenge.

As a publicly funded organization, the College is subjectto the issues/challenges experienced by the province’s gov-ernment. And while the challenges are significant, theCollege believes that by working closely with government,industry, and the communities it serves, it can meet andovercome the challenges that lie ahead and help build a bet-ter and brighter future for the people of Newfoundland andLabrador.

Chart 21 - Pending Retirement by Year

43

3438 39 40

59

33

51 50

64

45

0

10

20

30

40

50

60

70

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012


“According to theACCC, in the nextdecade the combinationof higher enrollmentsand faculty retirementswill create a need forthe recruitment of25,000-30,000 additionalprofessors.” Knowledge Matters: Skills and

Learning for Canadians, National

Summit on Innovation and

Learning, Government of Canada,

2002


A standing committee of the Board of Governors, the AuditCommittee of College of the North Atlantic reviews theaudited financial statements of the College prior to theirapproval by the Board. It reviews and recommends to theBoard the appointment of the external auditor and monitorsthe accounting, financial reporting, control and audit func-tions of the College.

The Audit Committee reviews the audit plans of theinternal and external auditors and meets with them, in eachcase independently of management. The Committee ques-tions the external auditor and receives a written statement onits independence based on criteria found in the recommen-dations of the Canadian Institute of Chartered Accountants.

In addition, the Committee reviews the budget of theCollege prior to its approval by the Board.

All members of the Committee are independent of man-agement and the membership provides for an appropriatelevel of financial expertise and literacy to conform to thehighest standards of governance principles.

Submitted by the Chair,Susan Adams, FCA

LETTER FROM THE BOARD OF

GOVERNORS’ AUDIT COMMITTEE


To the Board of Governors of the College of the NorthAtlantic

We have audited the statement of financial position of theCollege of the North Atlantic as at March 31, 2003 and thestatements of operations, changes in net assets and cash flowfor the year then ended. These financial statements are theresponsibility of the Board's management. Our responsibili-ty is to express an opinion on these financial statementsbased on our audit.

We conducted our audit in accordance with Canadiangenerally accepted auditing standards. Those standardsrequire that we plan and perform an audit to obtain reason-able assurance whether the financial statements are free ofmaterial misstatement. An audit includes examining, on atest basis, evidence supporting the amounts and disclosuresin the financial statements. An audit also includes assessingthe accounting principles used and significant estimatesmade by management, as well as evaluating the overall finan-cial statement presentation.

In our opinion, these financial statements present fairly,in all material respects, the financial position of the Collegeas at March 31, 2003, and the results of its operations andthe changes in net assets and cash flows for the year thenended, in accordance with Canadian generally acceptedaccounting principles.

Chartered Accountants

Gander, NewfoundlandJune 24, 2003

AUDITORS’ REPORT


ASSETS

Current assetsCashReceivables - Note 2InventoryPrepaid expenses

Total current assets

Capital assets - Note 3Trust accounts - Note 4

LIABILITIES AND EQUITY

Current liabilitiesPayables and accruals - Note 10Deferred revenueDeferred revenue - Qatar campusAccrued vacation - managementAccrued vacation - otherCurrent portion of severance

Total current liabilities

Trust and scholarship accounts - Note 4Deferred capital contributions - Note 5Accrued severance pay

Surplus (deficit), per accompanying statement

2002

$ 208,627 9,425,983

635,488 899,943

11,170,041

9,832,236 388,706

$ 21,390,983

$ 6,229,435 4,225,038

972,241 3,559,107 1,000,000

15,985,821

396,982 3,073,815 8,218,087

27,674,705

(6,283,722)

$ 21,390,983

2003

$ 2,266,919 9,639,972

706,643 867,653

13,481,187

9,592,341 374,294

$ 23,447,822

$ 5,918,745 4,631,934 2,159,362 1,102,807 3,893,473 1,000,000

18,706,321

390,702 4,489,901 9,873,470

33,460,394

(10,012,572)

$ 23,447,822

STATEMENT OF FINANCIAL

POSITIONMarch 31, 2003


Balance, beginning

Capital purchases during year

Amortization of capital assets

Capital grants received during the year

Amortization of deferred capitalcontributions

Net book value of assets disposed during theyear

Surplus (deficit) of revenue over expenditureper accompanying statement

Balance, ending

Operating

$ (264,949)

(4,404,713)

4,622,518

2,979,489

(1,563,403)

22,090

(1,739,101)

$ (348,069)

Capital Assets

$ 6,758,421

4,404,713

(4,622,518)

(2,979,489)

1,563,403

(22,090)

$ 5,102,440

Severance andAnnual Leave

$ (12,777,194)

(1,989,749)

$ (14,766,943)

2003 Total

$ (6,283,722)

(3,728,850)

$ (10,012,572)

2002 Total

$ (2,604,335)

(3,679,387)

$ (6,283,722)

STATEMENT OF CHANGES IN

NET ASSETSMarch 31, 2003


REVENUE - Schedule 1Grant-in-aidFacilitiesAdministrationInstructionalStudent servicesInformation technologyResaleApprenticeshipCommunity education ContractsInternationalSpecial projects

Total revenue

EXPENDITURE - Schedules 2 to 13FacilitiesAdministrationInstructionalStudent servicesInformation technologyResaleApprenticeshipCommunity education ContractsInternationalSpecial projects

Total expenditure

Surplus (deficit) before unfunded adjustments

Unfunded adjustments:SeveranceVacation pay

Total unfunded adjustments

Surplus (deficit) of revenue over expenditures

2003$ 47,267,165

8,328 395,966

22,537,371 564,311 10,069

4,347,080 2,231,130

701,728 8,740,291 1,127,473 4,294,830

92,225,742

4,484,748 14,785,183 43,490,219 6,264,634 3,849,309 5,055,227 1,811,822

552,741 8,842,417 1,074,286 3,754,257

93,964,843

(1,739,101)

(1,655,383)(334,366)

(1,989,749)

$ (3,728,850)

2002$ 46,602,831

8,172 558,589

20,885,781 666,642

6,207 4,348,219 2,149,487

709,060 8,739,692

700,842 2,659,534

88,035,056

4,830,743 14,950,638 42,069,633 5,996,282 3,503,031 5,004,677 1,740,580

623,637 8,809,893

885,596 2,128,083

90,542,793

(2,507,737)

(951,271)(220,379)

(1,171,650)

$ (3,679,387)

STATEMENT OF OPERATIONSMarch 31, 2003


Cash flows:Surplus (deficit) of revenue over expenditure

Add items of a non-cash nature:Loss of assetsGain on disposal of capital assetsAmortization

Changes in:Current assetsTrust accountsCurrent liabilitiesAccrued severance

Financing:Change in deferred capital contributions

Investing:Proceeds from sale of assetsAdditions to capital assets

Net increase (decrease) in cash

Cash, beginning

Cash, ending

2003

$ (3,728,850)

1,233 (21,380)

4,622,518

873,521

(252,854)8,132

2,720,500 1,655,383

5,004,682

1,416,086

42,237 (4,404,713)

(4,362,476)

2,058,292

208,627

$ 2,266,919

2002

$ (3,679,387)

114,110 59,549

4,826,937

1,321,209

(223,579)1,676

664,594 961,728

2,725,628

(298,931)

70,284 (4,602,310)

(4,532,026)

(2,105,329)

2,313,956

$ 208,627

STATEMENT OF CASH FLOWMarch 31, 2003


AUTHORITY AND PURPOSE

College of the North Atlantic (the College) operates underthe authority of the College Act, 1996, Province ofNewfoundland and Labrador. In accordance with Section 6of the College Act, 1996, the College is a statutory crowncorporation and as such is not subject to either Federal orProvincial income taxes and is exempt from Municipal taxes.The College is Newfoundland and Labrador's public college.The College is committed to providing accessible, respon-sive, quality learning opportunities that prepare people tobecome self-sufficient contributors to social and economicdevelopment both in a provincial and global context.

1. SIGNIFICANT ACCOUNTING POLICIES

The financial statements of the College have been preparedwithin the framework of Canadian generally acceptedaccounting principles which requires the use of estimatesand assumptions that affect the amounts reported and dis-closed in these statements and related notes. Any variationsbetween these estimates and actual amounts are not expect-ed to materially affect reported results. The more significantaccounting policies of the College are as follows:

(a) Revenue recognitionThe College follows the deferral method of accounting forcontributions which includes donations and governmentgrants. Grants for expenditures of future periods are deferredand recognized as revenue in the year in which the relatedexpenditures incurred. Grants for capital assets are deferredand recognized as revenue on the same basis as the acquiredcapital assets are amortized. Revenue from contractual serv-ices is recognized as the service is delivered.

(b) Basis of accountingThe College follows the accrual basis of accounting.

(c) InventoryInventory which consists mainly of books and food suppliesis recorded at the lower of cost or net realizable value.

(d) Capital AssetsCapital assets recorded prior to the April 1, 1997 amalga-mation of the former Colleges are recorded at either cost,nominal, or approximate fair value. Capital assets acquired

after April 1, 1997 are recorded at cost. Amortization isrecorded on a straight line basis using the following estimat-ed useful lives:

Artwork No amortizationCapital improvements 10 and 5 yearsComputer and peripherals 3 yearsFurnishings 5 yearsInstructional equipment 5 yearsOther electronic equipment 5 yearsSoftware 3 yearsVehicles 5 years

One half year's amortization is taken in the year of acquisi-tion.

The value of donated artwork has not been recorded in thesefinancial statements. Due to the inability to secure profes-sional appraisal services, an accurate valuation of donatedartwork could not be obtained at March 31, 2003.

Minor equipment purchases are charged to operations in theyear of acquisition.

On disposal, assets are removed from the accounts at theirnet book value. Proceeds from disposals are recorded andany resulting gain or loss on disposal is realized.

(e) Severance and vacation paySeverance and vacation pay are recorded on an accrual basis.

The College is liable for severance pay to employees whohave nine or more years of continuous public service. Anamount has been recorded in the financial statements toreflect this liability. No provision for severance has beenmade for employees with less than the required years of serv-ice.

(f) Foreign CurrenciesTransactions in foreign currencies are recorded in Canadiandollars at the date of the transaction. Monetary assets andliabilities denominated in foreign currencies are translated atthe Balance Sheet date. Exchange gains or losses arising fromthe translations are included in the Statement of Operations.

NOTES TO THE FINANCIAL

STATEMENTSMarch 31, 2003


ArtworkCapital improvementsComputer and peripheralsFurnishingsInstructional equipmentOther electronic equipmentSoftwareVehicles

The land and buildings being used by the College, with the exception of some rental property, are the properties of the Provinceof Newfoundland and Labrador. Expenditures for repairs and maintenance of these buildings, paid by the Province, are notrecorded in the financial statements of the College.

2003 20023. CAPITAL ASSETS

Cost$ 5,500

6,010,41915,696,047

735,93925,468,702

544,222394,781

3,356,325

$ 52,211,935

Accumulated Amortization

$4,887,604

13,465,522634,561

20,489,389436,904283,814

2,421,800

$ 42,619,594

Net Book Value$ 5,500

1,122,8152,230,525

101,3784,979,313

107,318110,967934,525

$ 9,592,341

Net Book Value$ 5,500

1,052,7123,810,501

124,0113,903,193

50,501173,950711,868

$ 9,832,236

4. TRUST ACCOUNTS

Trust accounts represent donations and related interestrestricted for scholarships, awards and other specified pur-poses. Changes in the trust account balance are as follows:

Opening balanceDepositsPaymentsInterest

Closing balance

At year end, the trust accounts were invested as follows:RB SecuritiesMiscellaneous scholarships in general account

2002$ 376,477

23,479(24,752)

13,502

$ 388,706

$ 388,7068,276

$ 396,982

2003$ 388,706

6,050(34,052)

13,590

$ 374,294

$ 374,29416,408

$ 390,702

2. RECEIVABLES

Government of Newfoundland and LabradorHRD SubsidyStudentsOther

Less allowance for doubtful accounts

2002$ 1,922,606

2,217,636780,445

4,912,8639,833,550

407,567

$ 9,425,983

2003$ 2,555,946

3,033,3431,065,5933,471,881

10,126,763486,791

$ 9,639,972


5. DEFERRED CAPITAL CONTRIBUTIONS

Deferred capital contributions represent the unamortizedamount of grants and special funding received for the pur-chase of capital assets. Changes in the deferred capital con-tributions balances are as follows:

6. PENSIONS

Under Section 26 of the College Act, 1996, College staff aresubject to the Public Service Pension Act, 1996. Employeecontributions are matched by the College and then remittedto the Province of Newfoundland and Labrador PooledPension Fund from which pensions will be paid to employ-ees when they retire.

7. LEASE COMMITMENTS

The College leases some equipment under long-term oper-ating leases. Lease payments for the next five years, commit-ted under operating leases extending beyond one year, are asfollows:

2003-2004 $ 389,9412004-2005 321,6032005-2006 311,2642006-2007 164,1502007-2008 3,122

8. COMPREHENSIVE AGREEMENT WITH THE

STATE OF QATAR

The College has a comprehensive agreement with the Stateof Qatar to establish, staff, operate and administer a Collegeof Applied Arts and Technology in Doha, Qatar for a 10-year period, September 30, 2001 to August 31, 2012. Theagreement is funded by the State of Qatar. For its services,the College is paid an annual Management Fee of 10% ofbase salaries.

9. FINANCIAL INSTRUMENTS

The carrying values of cash and cash equivalents, accountsreceivable, accounts payable and accrued liabilities, approxi-mate their fair values due to the relatively short periods tomaturity of these instruments.

10. RENTAL ACCRUAL

Included in accounts payable is an accrual totaling $755,518for unpaid lease payments and related interest for rental ofLabrador West campus. The monthly lease amount wasraised from $50,000 to $80,000, however based on direc-tions from the Department of Works, Services andTransportation, the College continues to pay the originallease amount. As of the financial statement date, the out-come of any possible litigation regarding this dispute couldnot be determined. It is possible the College could have arecovery of some portion of this accrued liability.

11. COMPARATIVE FIGURES

Certain of the 2002 comparative figures have been reclassi-fied to conform to the financial presentation adopted in2003.

Balance, beginning of year

Contributions received for capital

purposes - Provincial grants

- Special projects

Amortization of deferred capital

contributions

2002

$ 3,372,746

514,493

563,489

(1,376,913)

$ 3,073,815

2003

$ 3,073,815

676,831

2,302,658

(1,563,403)

$ 4,489,901

BOARD OF GOVERNORS

MOYA CAHILL

Board Chair, President, PanMaritime Energy ServicesIncorporated

ALAN MACKINNON

Office Leader, Deloitte & Touche EDWARD DELANEY

Retired SchoolTeacher/Principal/School BoardAdministrator

MICHAEL TOBIN

Board Vice Chair, FormerEducator, ProvincialSecondary/Post-Secondary

SYLVIA ALEXANDER

InstructorLEONARD WINSOR

Real Estate Advisor,Owner/Operator, DEW EnterprisesLimited

PAMELA WALSH

President, College of the NorthAtlantic

STANLEY SPARKES

Retired Educator/SchoolAdministrator

SUSAN ADAMS

Chartered Accountant, FinancialConsultant

GARY REARDON

President/Managing Director,Reardon Construction andDevelopment Ltd., and ReardonRealty Services; Past President, St.John’s Board of Trade

TERRY WHITE

Barrister and SolicitorJOANNE HUSSEY

Project Manager/Researcher,Gander Women’s Centre

GUNTHER BAUMGARTNER

President, Refinery Manager, NorthAtlantic Refining

AUDREY MANNING

ConsultantMARILYN TUCKER

President, Newfoundland &Labrador Employers Council

JAMIE MACDONALD

StudentJULIET CROSBIE

Manager, Human Resources,Newfoundland Power

JENNY LYALL

Program Director, AboriginalFamily Centre

For additional copies of this report please contact:Communications & Marketing Tel: 709 643.7928College of the North Atlantic Toll free: 1 888 982.2268432 Massachusetts Drive Fax: 709 643.7932P.O. Box 5400, Stephenville, NL, A2N 2Z6Canada Design: Paul O’Keefe

An electronic version of this document is available online at: www.cna.nl.ca

DAVID LEWIS

CEO, Central East Health CareCorporation

1 888 [email protected]

ar2003 04 cover - College of the North Atlantic

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