Director, University Secretariat

MEMORANDUM

DATE: ?

September 20, 2002

SUBJECT:

Annual Financial Statements

Section 32 of the University Act states: "The board shall make an annual report of its

transactions to the Minister, in which shall be set out a balance sheet and a statement of

revenue and expenditure for the year ending on the preceding March 31, and other

particulars the

Minister may require. A copy of the annual report shall be transmitted

promptly to the senate."

A copy of the report is attached.

NOTE:

IF YOU DO NOT WISH TO KEEP THE ANNUAL FINANCIAL STATEMENT, PLEASE

RETURN IT TO BOBBIE GRANT, OFFICE OF THE REGISTRAR

. .

FINANCIAL STATEMENTS

FOR THE YEAR ENDED MARCH 31, 2002

0 0

Statement of Management Responsibility

FINANCIAL STATEMENTS

MARCH 31, 2002

TABLE OF CONTENTS

Page

Report of the Vice-President Finance & Administration

? 2

Report of the Auditor General of British Columbia

4. Audited Statements

Statement of Financial Position ?

Statement of Operations and Changes in Operating Net Assets

Statement of Changes in Net Assets

Statement of Cash Flows ?

5. Notes to the Financial Statements ?

0 ?

STATEMENT OF MANAGEMENT RESPONSIBILITY

The University is responsible for the preparation of the financial statements and has

prepared them in accordance with Canadian generally accepted accounting principles

for not-for profit organizations. The financial statements present fairly the financial

position of the University as at March 31, 2002 and the results of its operations for the

year then ended.

In fulfilling its responsibilities and recognizing the limits inherent in all systems, the

University has developed and maintains a system of internal control designed to

provide reasonable assurance that university assets are safeguarded from loss and that

the accounting records are a reliable basis for the preparation of financial statements.

The Board of Governors cat-des out its responsibility for review of the financial

statements principally through its Audit Committee. The majority of the members of the

Audit Committee are not officers or employees of the University. The Audit Committee

meets with Management and the external auditors to discuss the results of audit

examinations and financial reporting matters. The external auditors have full access to

the Audit Committee, with and without the presence of Management.

The financial statements for the year ended March 31, 2002 have been reported on by

the Auditor General of the Province of British Columbia, the auditor appointed under the

•

University Act. The Auditor's Report outlines the scope of his examination and provides

his opinion on the fairness of presentation of the information in the financial statements.

Finance & Administration

REPORT

OF THE

FINANCE

AND

principles for not-for-profit organizations.

The operations for

the entire entity

have been combined

for reporting purposes. However, we continue to manage internally on a fund basis and I am pleased

to provide this financial information for the operating fund and additional information on the other

funds in the following pages.

Original

Restated*

Operating fund (000's)

Budget

Actual

2001/02

2000/01

Revenue

45,818

5,277

Prior year appropriations

24,517

18,055

Non recurring revenue

515

205,805

Expenses

Student financial assistance

5,166

5,711

5,673

5,054

Utilities and janitorials

34,664

181,288

Current year appropriations

27,182

24,517

Carryovers Departmental

6,098

6,783

Auxiliaries and Special projects

3,395

2,783

Research and other contracts

7,900

929

Specific Provisions

3,226

2,960

Non-recurring expenditures

6,563

5,062

Total

27.182

24,517

This statement reflects the format of the

2001/2002

operating budget, approved by the Board

of Governors in June

2001.

It groups expenses in a different format than the audited statements.

The summary of the appropriations of

to the financial statements.

* includes prior year appropriations, transfers to operating and transfers within operating.

BURNABY MOUNTAIN COMMUNITY CORPORATION

On February 10, 1999 the Burnaby Mountain Community Corporation was incorporated under

the Company Act of the Province of British Columbia. It is a taxable Canadian corporation and

is wholly owned by Simon Fraser University. The purpose of the corporation is to convert up to

100 acres of university land into a village of up to 10,000 residents. Since 1995 the university

has provided advances to BMCC to pay for salaries, benefits, travel and supplies, surveying,

rezoning, permits, engineering and environmental studies as well as preliminary architectural

drawings on behalf of the corporation. These expenses are not included in the expenses of the

university and at March 31, 2002 BMCC owes SFU $4,612,000. An amount of $3,103,000 is

recorded as an investment in the endowment fund and $1,509,000 is receivable to the capital

fund. These amounts are to be repaid to SFU when the corporation becomes profitable.

STATEMENT OF EXPENDITURES

Consulting & Professional

2001

336

Equipment & Furnishings

Legal Fees

624

*For the period April 1,

1995

to March 31, 2001.

SF UNIVENTURES CORPORATION

The university owns 100% of the shares of SF Univentures Corporation (SFUV), which was

established to promote technology transfer to the private sector. The consolidated assets of

SFUV are not considered to be material and are not included in these financial statements.

Page

Page 23

SFU FOUNDATION

2001

Deficiency of Revenue over Expenses

Financial Position

Results of Operation

$ ?

(38)

Operating Fund

Government grants for 2001/02 were $12,362,000 higher than the previous year. For

the year 2001/02 the government imposed a 5% reduction on tuition fees and gave the

university $1,565,000 in tuition reduction compensation. The core funding increased by

$6,381,000, of which $2,498,000 was to cover salary increases. An additional

$1,493,000, not originally budgeted for, was provided to cover the cost of pay equity and

salary market adjustments. SFU received a one-time grant of $4,939,999 for building

and equipment and library books to support the research infrastructure. Tuition revenue

was only slightly ahead of last year since the increase in graduate and visa students

enrollment was offset by the 5% tuition decrease. Non-credit revenue remained the

same at $5,300,000; English and language programs increased due to additional space

being available at Harbour Center while technology programs decreased due to the

downturn in the economy and more particularly the technology sector. Investment

income increased by $300,000 due to a larger base of capital to invest as a result of

higher appropriations and an increase in externally funded research.

Expenses increased by $16,300,000. Salary increases for the year were 2% for all

groups as prescribed by the Public Sector Employers Council guidelines. There was

also some remapping of the faculty salary grid, market adjustments for faculty and the

administrative staff, retroactive pay equity adjustments to some clerical and support

staff, 46 filled positions that were either new or vacant the year before and the normal

progression through the ranks, altogether increasing our salary & benefits costs by

9.6%. The student financial aid increased by $600,000 due partly to scholarships that

. were awarded in the current year instead of the previous year. Our utilities were

approximately $500,000 lower than the previous year when gas prices reached one of

their highest levels.

For a more complete analysis and commentary on revenues and for detail on

expenditure items, the 2001/02 year-end results and the 2002/2003 Operating Budget

are available at www.sfu.ca/finance/budgeticurrentlindex.htm

under the 2002/2003

Approved Operating Budget.

Ancillar

Enterprises

Included in Ancillary Enterprises are the Bookstore, Food Services, Residences, Parking

Operations and the Microcomputer Store. Ancillary Enterprises are mandated to break

even but are allowed to retain their surpluses for future upgrades to facilities, equipment

replacement and for new service initiatives. $1,000,000 of the residence reserve has

been set aside for a major renovation of Shell house to take place during the summer of

2002.

The Parking Operation supports all parking lot expenses and pays down the debt on the

parkade.

Food Services on the Burnaby campus, including the Diamond University Center, is

operated by Chartwells College and University Dining Services who signed a ten year

agreement effective April 1, 2002.

Related Entities that are not consolidated

SFU FOUNDATION

The Simon Fraser University Foundation was established in 1987 under the provisions of the

University Foundations Act. Its main purpose is to receive, manage and invest funds to further

the purposes of the university. The Province of British Columbia through the Minister of

Finance and Corporate Relations is the single shareholder. The Foundation is holding

residential lots for sale valued at $5,349,000 (2001 - $5,709,000) and the proceeds from the

sale of those lots will be transferred to the University. It is holding an undivided interest in 5%

of the land on Great Northern Way.

Page 22 ?

Page 3

b. WCUMBS

The University is one of five university members of the Western Canadian Universities Marine

Biological Society (WCUMBS) which operates a research station at Bamfield, British Columbia.

The university's operating grant to the Society was $176,000 (2001 - $176,000) and is recorded

as an expenditure by the University. There is no expectation of monetary gain to the University

2001

Financial Position

Total Assets

Total Liabilities

Fund balance - unrestricted

- capital

- endowment

- restricted

Results of Operation

Total Revenue

Total Expenses

Excess of Revenue over Expenses

The Microcomputer Store has increased the level of customer service to the campus by

offering on-site consultation, loaner equipment, and a more interactive environment for

the campus community. The Store negotiated significant savings to SFU on Anti-Virus

software for the next three 3 years, and is working on more software agreements to

decrease campus costs on software. It is assisting the university in setting up broad

'standards' for both hardware & software to reduce the overall operating cost of

computers to SFU.

The Society is a not-for-profit organization incorporated under the Society Act of British

Columbia. SFU's share of member's equity in capital assets is $423,000 (2001 - $420,000)..

Research

University research is mainly funded by Federal agencies such as NSERC and SSHRC

and the provincial government, although over $7 million comes from private sector

corporations and from non-profit organizations. For example, the Juvenile Diabetes

Foundation is providing SFU with $2 million over a three-year period. There are over

1400 active research accounts with total activity of over $36 million compared to $26

million in 2000/2001. The Canada Foundation for Innovation (CFI) continues to award

SFU with grants for infrastructure under several categories. $1.9 million was received

from CFI in 2001/02, matched by the same amount from the Province of BC's

Knowledge Development Fund. The Federal government has begun to award grants

under the Canada Research Chair Program. In 2001/02, SFU received $1.1 for Canada

Research Chair salaries and research purposes.

Endowment ?

S ?

The university's endowment consists of restricted donations to the university and

internal allocations, the principal of which is required to be maintained in perpetuity. The

investment income generated from endowments can be spent only in accordance with

the various purposes established by the donors or the university's Board of Governors.

WCUMBS

The Endowment Fund investment strategy aims to maintain the purchasing power of the

original capital value of endowments for future generations. It also ensures that

spending allocations remain stable each year through the use of an income stabilization

fund. The Endowment Fund is invested in bonds and equity markets to meet this

strategy over the long term.

The actual cash received during the year was $1,745,000 in new donations and

$1,465,000 of interest income was capitalized in order to protect the economic value of

the endowments. Our pledges receivable increased by $5 million over the previous

year. The fund stands at $93,873,000 at the end of the fiscal year.

ecific Purpose

The sources of specific purpose funds include government and corporate grants,

conference fees, private donations and interest income from endowments for programs

and scholarships. There are many international activities; the Canadian International

Development Agency funds projects in Indonesia, China and Mexico. Field Schools

Page 4

Page 21

17. ?

funded by participants were held in China, Fiji, Prague and Ghana and the Faculty of

Education also has a number of smaller international initiatives in Jamaica and Japan as

a. ?

TRIUMF

examples. Activity in the fund this year was the same as last year at $31 million.

Simon Fraser University is a member along with the University of Alberta, the University of

British Columbia, the University of Victoria and Carleton University in a joint venture called the

Tr-Universities Meson Facility (TRIUMF) located on the UBC campus. TRIUMF is Canada's

National Laboratory for research in Particle Physics. TRIUMF is not incorporated and each

university appoints three members to a Management Board. The facility and its operations are

funded by federal government grants and the university makes no direct financial contribution.

The land and buildings are owned by UBC.

The Canadian Institute of Health Research approved funding of $3,461,000 for hosting

the Institute of Nutrition, Metabolism and Diabetes. At March 31, 2002 a total of

$1,461,000 had been received.

Capital

In 2001/02 capital expenditures were limited to minor renovations and upgrade activity.

Strand Hall was expanded for $668,000, and an additional $230,000 spent on heating

TRIUMF

upgrades.

A further $90,000 was spent on strengthening the building as part of the

campus seismic upgrade program.

The athletics running track was widened and

resurfaced at a cost of $837,000. Other minor capital expenditures included

2001

$3.4M

for

Financial Position

minor capital additions, and a further $2 OM for maintenance and renovations

Total assets ?

$ 5,899

$ 6.896

interest in land on Great Northern Way was acquired through a donation.

Total Liabilities ?

4,324

3,083

New Ventures

Fund Balances - restricted

1.438

Simon Fraser University will be operating what was formerly Tech BC as of August 1,

,899

$ 6,896

2002

and SFU will be offering technology programs at "SFU Surrey" starting in

September

2002

with an expected enrollment of 400 students.

Results of Operation

Revenue ?

51,627

$50,959

Finning Ltd. made a gift of 20 acres of land on Great Northern Way in the False Creek

Expenses ?

53,865

51.886

area of Vancouver to be equally owned by Simon Fraser University, the University of

(927)

British Columbia, the British Columbia Institute of Technology and Emily Carr College

These four entities have signed a co-owners agreement - the Great Northern Way Joint

Venture - in order to develop the site for future educational and commercial purposes.

Chancellor emeritus Joseph Segal

making the 1916

Bank of Montreal building on the

corner of Pender and Granville available to the university to be dedicated as western

Canada's first Centre for graduate management studies.

The Board of Governors has approved the first phase of the Burnaby Mountain

Community Project and the East Neighbourhood Subdivision Plan has been submitted

to the City of Burnaby for approval. An Order-in-Council approval will be required before

the university is able to market development sites. Some clearing for roads and service

installation has been completed. In the spring of

2002 BMCC

is approaching developers

and actual housing construction is anticipated in the spring of 2003.

•.

Page 20

Page 5

Report of the Auditor General ?

of British Columbia

To the Minister ofAdvanced Education,

Province of British Columbia.

1"r

414

0 ?

.AdministrativefUnion Pension Plan

b. The latest actuarial valuation as at December 31, 1998 showed an actuarial liability of

$96,243,000 against market value assets of $111,730,000, resulting in a surplus of

$15,487,000. The university shall not suspend or reduce its contribution to the pension fund

without the prior approval of the employee organizations. Pursuant to an agreement

between the university and the employee organizations, the portion of the surplus in excess

of 15% of the defined-benefit portion of the above liabilities with assets taken at market

values was distributed to members. $1,743,000 of the above surplus, plus investment

earnings thereon, was distributed to the members in November 1999; the amounts

distributed were, to the extent permitted under the Income Tax rules, allocated to individual

money-purchase accounts for the members, within the Plan, and the balance was paid out

in cash.

C. ?

The rate of employer contribution was also increased from 10.82% to 11.61%, effective

January 1, 1999, as indicated by the 1998 actuarial valuation.

12.

Financial Instruments

The financial instruments consist of cash and short term investments, accounts receivable,

investments, accounts payable and accrued liabilities and long term debt. It is management's

opinion that the University is not exposed to significant interest, currency or credit risk arising from

these financial instruments.

0 ?

13. Pledges

Pledges made by donors to the university for donations to be received in future years are estimated

at $11,349,000 (2001 - $6,296,000). Pledges are not recorded in the financial statements until the

14.

Contingencies

Simon Fraser University is the defendant to several unresolved statements of claims. It is not

expected that the ultimate outcome of these claims will have a material effect on the financial

position of the university.

15.

Commitments

In order to expand its downtown campus the university entered into a 25-year lease for

additional property. The annual lease payments are $370,000 until November 30, 2006,

escalating every 5 years to $541,717.

16.

Subsequent Event - Technical University of Britsh Columbia (TechBC)

In February, 2002 the government of British Columbia decided to cease the operation of

TechBC, and requested Simon Fraser University (SFU) to take over the assets of TechBC by

July 31, 2002 and continue to offer academic programming in Surrey. The yearly budget for

SFU Surrey is expected to be approximately $9,500,000.

To the Members of the Board of Governors

of Simon Fraser University, and

I have audited the statement of financial position of

Simon Fraser University

as at

March 31, 2002 and the statements of operations and changes in operating net assets, changes in

net assets and cash flows for the year then ended. These financial statements are the

responsibility of the University's management. My responsibility is to express an opinion on

these financial statements based on my audit.

I conducted my audit in accordance with Canadian generally accepted auditing standards. Those

standards require that I plan and perform an audit to obtain reasonable assurance whether the

financial statements are free of material misstatement. An audit includes examining, on a test

basis, evidence supporting the amounts and disclosures in the financial statements. An audit also

includes assessing the accounting principles used and significant estimates made by management,

as well as evaluating the overall financial statement presentation.

In my opinion, these financial statements present fairly, in all material respects, the financial

position of

Simon Fraser University

as at March 31, 2002 and the results of its operations and its

cash flows for the year then ended in accordance with Canadian generally accepted accounting

principles.

Victoria, British Columbia

Finance and Administration

SIMON FRASER UNIVERSITY ?

STATEMENT OF FINANCIAL POSITION

AS AT MARCH 31,2002

Cash and short-term investments (Note 3)

CURRENT ASSETS

241 ?

Capital assets (Note 5)

320,114

Unamortized debt discount

208

$542,377

CURRENT LIABILITIES

Accounts payable and accrued liabilities

$ ?

26,323

23,302

Current portion of long term debt (Note 6)

5,782

2,909

32,105

26,211

Employees future benefits (Note 7)

13,978

12,978

Long-term debt (Note 6)

22,005

27,640

Deferred contributions (Note 8)

28,802

27,477

Deferred contributions related to capital assets (Note 8)

187,883

282,189

(16,178)

Restricted for specific commitments (Note 9)

74,868

70,053

Invested in capital assets

90,304

89,824

234,003

$516,192

The accompanying notes are an integral part of these financial statements

roved:

Endowment

2002

2001

Balance, beginning of year

Capitalized income and other transfers

Endowment consists of restricted donations to the University. The investment income generated

from endowments must be used in accordance with the various purposes established by the

donors or the Board of Governors. Donors as well as university policy stipulate that the economic

value of the endowments must be protected by limiting the amount of income that may be

expended, and reinvesting unexpended income. Included in the $93,873,000 (2001 - $89,824,000)

is a receivable of $5,135,000 (2001 - $5,709,000) from the SFU Foundation for future proceeds

from the sale of 16 remaining lots.

Pension Plans

The assets and liabilities of both Plans are not reflected in the university's financial statements.

Academic Pension Plan

The University Pension Plan for Academic Staff generally provides benefits on a money purchase

basis, but includes an option to members who were in the plan on March 20, 1973 to chooses

benefits based on years of service, and the average of the highest sixty (60) consecutive months'

salary.

An amendment to the plan in 1981 and a letter of agreement between the university and the

Faculty Association in 1990 addressed the funding and the distribution of the formula retirement

benefit account. The latest actuarial valuation for this group as at December 31, 2000 shows an

actuarial liability of $8,712,000 against the actuarial value of assets of $9,181,000 resulting in a

surplus of $469,000 in the fund.

Administrative/Union Pension Plan

The University Pension Plan for the Administrative/Union Staff provides benefits based on years of

service and the average of the highest sixty (60) consecutive months' salary. Under the Pension

Plan:

a. The university's contribution is based on the amounts estimated by the Actuary and

Governors of the university. The university shall contribute to the fund such amounts as the

Board of Governors determines are required to fund the retirement benefits.

Page 7

11.

10.

Restricted for Specific Commitments

2001

Carryovers - faculties & departments

General Operating

6,098

6,783

Auxiliaries and special projects

3,395

2,783

Research and other grants

Non-recurring expenditures

1 ?

6,363

5,062

Total General Operating

27,182

24,517

Ancillary enterprises

Long-term commitments

Total Restricted for Specific Commitments

$74868

$70.053

The General Operating is composed of carryover funds for faculties and departments under a

policy that allows them to carry over unspent budget. It also includes unspent balances on specific

projects, internally funded research already in progress, funds set aside for specific provisions and

one-time non-recurring expenditures as approved by the Board of Governors.

The Ancillary Enterprise represents accumulated funds held for the ongoing operations of

ancillaries such as the Bookstore, Food Services, Microcomputer Store, Residences and Parking.

Capital represents funds that are committed to capital projects.

Specific purpose represents funds from various sources that are allocated internally to specific

activities.

The funds committed for long term commitments are set aside to meet the cost of future

obligations.

Group insurance is designated for potential requirements related to self-insured long-term

disability plans. Annual premiums are funded from the general operating funds on a cost of

claim plus fee for services basis.

Lease commitment funds provide for commitments entered into for the occupancy of the

University's Harbour Centre facility which include lease payments, tenant loan payments and a

contribution towards operating costs. Lease and tenant loan obligations include annual

payments of $1,140,000, which started in September 1988 increasing to $1,648,000 over the

term of the lease, and a termination payment of $8,000,000 upon the expiry of the lease in

December 2017 or a discounted equivalent of that amount at an earlier date.

c. Self-insurance funds are held to pay self-insured property and liability losses.

SIMON FRASER UNIVERSITY

Statement

STATEMENT OF OPERATIONS and

CHANGES IN OPERATING NET ASSETS

FOR THE YEAR ENDED MARCH

31, 2002

Government grants and contracts

2001

REVENUE

Province of British Columbia

22,774

Student fees - credit courses

3,985

Gifts, grants and contracts

22,838

13,574

Sale of goods and services

24,883

Amortization of deferred capital contributions

8,055

EXPENSE

- other instruction and research

23,943

55,874

141,628

Employee benefits (Note 7)

28,459

25,216

Travel and personnel costs

10,431

10,353

Materials and supplies

10,834

10,661

Communications

1,331

1,292

Other operational expenses

21,830

Grants to other agencies

4,296

Renovations and alterations

3,846

3,159

Scholarships, bursaries and prizes

9,639

3,609

9,349

2,881

Equipment rental and maintenance

2,503

2,418

293,224

268,959

EXCESS OF REVENUE OVER EXPENSE

20,497

10,228

CHANGES IN NET ASSETS

Increase in specific commitments

(4,815)

(6,492)

Increase in investment in capital assets

(15

882)

(4,876)

NET CHANGE IN OPERATING EQUITY

(200)

(1,140)

OPERATING NET ASSETS, beginning of year,

(16,178)

(15,038)

OPERATING NET ASSETS, end of year

$ ?

NET ASSETS, 

beginning of year

Net change in operating equity ?

(200)

(1,140)

Endowment contributions ?

Capital preservation of endowment

- ?

26,282

6,492

93,873

Change in investment in capital assets

Amortization of deferred capital

contribution

Capital asset acquisitions

Donation of land

Debt

Deferred contributions

Depreciation

Internally imposed restrictions

CHANGE IN NET ASSETS 

NET ASSETS, 

end of year

Statement 3

...

Employees' Future Benefits

0 ?

SIMON FRASER UNIVERSITY

STATEMENT OF CHANGES IN NET ASSETS

The following shows the components of the changes to the balance of this liability.

FOR THE YEAR ENDED MARCH 31, 2002

Interest cost on benefit obligation

2001

7221,

673

1,279

1,136

Less actual payments to retirees during the year

(279

(246)

Net Increase in employee future benefits

Deferred Contributions

Deferred contributions represent unspent resources externally restricted for a particular use relating

to a subsequent period. Changes in the deferred contributions are as follows:

Capital Assets Endowment

Sponsored ?

Specific ?

Capital

2002 ?

2001

Research ?

Purpose

Total ?

Total

received during the year

Balance end of year ?

Under the deferred method of accounting for contributions, restricted

contributions related to

expenses of future periods are deferred and recognized as revenue in

the period in which the

related expenses are incurred.

The $186,938,000 of deferred capital contribution represents the

unamortized portion of restricted capital advances relating to assets which were purchased with

restricted contributions.

Page 16

Page 9

Statement 4

SIMON FRASER UNIVERSITY

Long Term Debt

STATEMENT OF CASH FLOWS

20011 ?

2001

FOR THE

YEAR ENDED MARCH 31, 2002

(000) ?

Excess of revenue over expense

4,500 ?

OPERATING ACTIVITIES

Debentures ?

213481,

27,348

Less: Sinking Funds ?

(6,499) ?

(7,130)

Net decrease in non-cash current assets

(929)

2,217

Net increase in accounts payable and accrued liabilities

3,021

1,611

Term loans, used to complete the Centre for Dialogue, are secured by promissory notes.

They

Amortization of deferred capital contributions

(8,072)

(8,055)

bear interest rates between 2.55% and 6.54%, have an amortization period of 20 years and are

Increase in deferred contributions

8,452

8,035

due December 30, 2014.

Endowment contributions

4,049

5,737

Increase in employees future benefits

1,000

890

Other long-term debt annual pnncipal and interest payments are funded through a charge to

Donation of land

(8,447)

Ancillary Enterprises operations and from contributions from the Simon Fraser Students Society for

a portion of the Maggie Benston Student Services Building.

CASH PROVIDED BY OPERATING

ACTIVITIES

41,798

42,493

CMHC Mortgages issued by the Canadian Mortgage and Housing Corporation are secured by

student residence buildings.

They bear interest rates between 5.375% to 6.875% and mature

INVESTING ACTIVITIES

between January 1, 2017 and July 1, 2019. Annual payments including principal and interest until

maturity amount to $248,000.

Net increase in long term investments

(13,124)

(12,530)

Capital asset acquisitions

(25,460)

(26,283)

Debentures are issued to the Province of British Columbia pursuant to the Financial Administrative

Act. They bear interest at rates from 6.0% to 9.5%, and mature between 2003 and 2022. Annual

CASH USED IN INVESTING ACTIVITIES

(38,584)

(38,813)

payments including principal and interest due within the next five years are as follows:

FINANCING ACTIVITIES

Total

(000)

Net debt principal (repaid) incurred

CASH PROVIDED USED IN FINANCING ACTIVITIES

NET INCREASE IN CASH AND

2006 ?

$2,210

SHORT TERM INVESTMENTS

CASH AND SHORT TERM INVESTMENTS, beginning of year

15,239

13,530

Employees' Future Benefits

CASH AND SHORT TERM INVESTMENTS, end of year

15,724

$ ?

15,239

Accounting standards issued by the Canadian Institute of Chartered Accountants require the use of

accrual accounting for costs related to employee future benefits including the cost of non-pension

benefits that will be paid to existing and future retirees.

The cost of these future benefits is

ADDITIONAL INFORMATION:

determined by an actuary and the costs are recognized over the service life of the employees or

During the year the University received a donation of land which has a fair market value of

$8,447,000.

the period to full eligibility of the employee group depending upon the type of cost.

Page 15

Page 10

...Long Term Investments

Simon Fraser University is an agent of the Crown and operates under the authority of the University

NOTES TO THE FINANCIAL STATEMENTS

Bonds and Debentures Analysis

FOR THE YEAR ENDED MARCH 31, 2002

2001

Authority and Purpose

Government bonds

Act, R.S. Chapter 468. The purpose of the university is to conduct research and deliver a full range

of undergraduate, graduate and continuing studies programs. Simon Fraser University is a not-for-

profit entity governed by a Board of Governors, the majority of which are appointed by the

provincial government of British Columbia

The academic governance of the university is vested in

the Senate. The university is a registered charity and is therefore exempt from income taxes under

section 149 of the Income Tax Act

The university receives a significant portion of its revenues

from the Province of British Columbia

Summary of Significant Accounting Policies and Reporting Practices

Accounting Method

Total Bonds and Debentures

The financial statements are prepared following Canadian generally accepted accounting principles

on a non-fund basis as the operations for the entire university have been combined for reporting

purposes. The university follows the accrual basis of accounting. Unrestricted revenue is recorded

Capital

Assets

when receivable and expenditures are recorded when goods or services are received.

Cost

Accumulated