Director, University Secretariat

MEMORANDUM

DATE: ?

August 21, 2001

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, 2001

. .

fl .

Statement of Management Responsibility

FINANCIAL STATEMENTS

MARCH 31, 2001

TABLE OF CONTENTS

2. Report of the Vice-President Finance & Administration

Report of the Auditor General of British Columbia

Audited Statements

of Financial Position

of Operations and Changes in Operating Net Assets

of Changes in Net Assets

S. Notes to the Financial Statements

of Cash Flows

. .

Page

0 ?

STATEMENT OF MANAGEMENT RESPONSIBILITY

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 paid 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 but are

included as a receivable from the corporation to be repaid when the corporation becomes

profitable. In the event that this receivable became uncollectible, the university would have to

write off this amount.

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

prepared them in accordance with generally accepted accounting principles for not-for

profit organizations. The financial statements present fairly the financial position of the

university as at March 31, 2001 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.

STATEMENT OF EXPENDITURES

The Board of Governors carries out its responsibility for review of the financial

statements principally through its Audit Committee ?

The majority of the members of the

2001

2000

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

Salaries & Benefits

336

456

the Audit Committee, with and without the presence of Management

Operating Expenses

Amortization of Capital Assets

The financial statements for the year ended March 31, 2001 have been reported on by

Legal Fees

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

Consulting & Professional

1624

683

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

$1.253

*For the period April

1, 1995

to March

31, 2001.

SF UNI VENTURES CORPORATION

Finance & Administration

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 24

Page 1

Carryovers: Departmental

Auxiliaries and Special projects

Research and other contracts

Specific Provisions

Non-recurring expenditures

REPORT OF THE VICE-PRESIDENT FINANCE AND ADMINISTRATION

The university prepares its annual financial statements according to generally accepted accounting

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 additional information for the different funds.

Original ?

Restated*

Operating fund (000's)

Budget ?

Actual

2000/01

2000101

1999/00

was established in 1987 under the provisions

C. ?

SFU FOUNDATION

The Simon Fraser University

Foundation

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

Finance and Corporate Relations is the single shareholder. The

Foundation

is holding

residential lots valued at $5,709,000 (2000 - $7,033,000)

and

the

proceeds from

the sale

those lots will be transferred to the University.

Revenue

Prior year appropriations

Non recurring revenue

Total revenue

Expenses

Salaries & benefits

Library acquisitions

Student financial assistance

Utilities and janitorials

Other non-salary

Total

Current year appropriations

2000

Financial Position

Total Liabilities

$6,867

281

$7.148

Results of Operation

263

Total Disbursements

295

Revenue over Expenses

(327)

This statement reflects the format of the 2000/2001 operating budget, approved by the Board

of Governors in June 2000. It groups expenses in a different format than the audited statements.

The summary of the appropriations of $24,517 at March 31, 2001 has been extracted

from note 9 to the financial statements.

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

Page 2

Page 23

Operating Fund

b. WCUMBS

In 2000/2001 the University received a grant increase of $6,181,000, or 5%. The

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

Universities Operating Budget Submission put forward by the Universities

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

President's Council had identified a $54 million system-wide funding gap and had

The university's operating grant to the Society was

$176,000 (2000 - $176,000)

and is recorded ?

requested a minimum annual funding increase of 5% for 8 years. This increase,

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

the first in several years, allowed for some strategic allocations to the Innovations

from this venture. ?

. ?

and Renewal Fund, the equipment budget and the downtown Harbour Centre

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

operation. A significant portion of the increase was used to fund salary and

Columbia. SFU's share of member's equity in capital assets is

$420,000. ?

benefit increases, the increasing cost of natural gas and library acquisitions.

WCUMBS

Revenues were above budget by 2.5%. ?

The Provincial government provided

funding for several initiatives - the Health and Welfare Benefits Accord, the Pay

2001

2000

Equity Accord for CUPE employees and one-time grant to provide relief for the

increased costs of natural gas.

(000)

Funds received from these initiatives were set

Financial

$2,09

$2 116

aside to meet the future commitments and expenses of these programs and are

reflected in the increase in Specific Provisions. The effect of the federal research

Total Liabilities

294

388

funding programs on the infrastructure of the university continues to be a major

Fund balance - unrestricted

(20)

concern. ?

Capital costs and related operating costs of plant operations and

- capital

1,652

1,635

maintenance, the Library, computing services and administrative areas are all

• restricted

132

113

impacted as research funds flow into the organization.

Natural gas rates are

$2,096

$2.116

anticipated to remain high for the near term and are seriously impacting flexibility

Results of Operation

in the upcoming budget year. Student fees were increased as enrolment grew in

$2,407

w ?

International Undergraduate ?

2.215

expected to increase again in 2001/2002, reversing a trend that had been

Excess of Revenue over Expenses

observed in the past. ?

Investment income exceeded budget due to an

extraordinary capital gain generated by the sale of bonds and the transfer of

funds to the Commonfund Canada Bond Fund.

Recoveries recognized by the

operation of the university telephone system were realized in 2000/2001 and

reflected as increased other income. These additional revenues funded the Non-

recurring expenditure provision, in part.

Expenditures were significantly below budget in the areas of salaries and

benefits. Departmental carryover in the areas of instructional and support staff

salaries grew this year as departments delayed or experienced delays in filling

positions; recruitment and retention is a growing concern across all departments,

in all employee categories and some positions are not readily filled. In addition,

no increases have been allocated to general non-salary budgets in several years

and departments are delaying expenditures to the extent possible in order to

conserve budgets. The university does budget on a fully annualized basis and

the mid-year implementation of contractual obligations against the full year salary

budget generated an additional source of funds for the non-recurring budget.

Benefits were below budget as a result of the under-expenditure in salaries and

following a one-time correction to the pension contributions made for

• ?

administrative employees on LTD. Expenses for library acquisitions and utilities

exceeded budget and have been dealt with in the upcoming 2001/2002 budget.

Page 22

Page 3

Financial Position

Total assets

Total Liabilities

Fund Balances - restricted

- other

Results of Operation

. ?

Revenue

Expenses

(Deficiency) Excess of Revenue

over Expenses

2000

The increasing cost of library holdings is further exacerbated by the fact that

$ 6,928

$ 2,187?

4,001 ?

740 ?

L6,928

$47,393

44.757

L2.636

many purchases are made in U.S. dollars. Natural gas rates climbed

dramatically in the past year and are not anticipated to decrease.

We continue to budget conservatively and to maintain the practice of annualizing

all budget items. In this way we endeavour to protect the core operation white at

the same time ensuring a source of funds for the non-recurring budget.

For a detailed description of the financial outcomes of 2000/2001, please refer to

the app2001/2002 Approved Operating Budget at:

www.sfu.ca/finance/budget/2002/index.htm

16. ?

Related Entities that are not consolidated

a. ?

TRIUMF

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

British Columbia and the University of Victoria, 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.

TRIUMF

Ancillary 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. All

areas of ancillaries increased their reserves during the year except for Parking.

The Parking Operation supports all lot and parkade construction, as well as

repair and maintenance. This reserve was reduced by $145,000 last year in

order to upgrade the drainage and paving in parking lots B and C. This unit

continues to promote improved personal security and has installed a closed

circuit television network extending from perimeter parking lots through to a

higher security pedestrian corridor and further to the residence areas of campus.

This is monitored centrally by Campus Security. This is an on going program as

more funding becomes available.

Residence maintained a 95% occupancy rate during fiscal year 1999/2000. In

the summer semester, conferences hosted 64 groups for a total of 13,300

bednights.

Food Services on the Burnaby campus was operated by Beaver Foods Ltd. until

November 30, 2000. On December 1, 2000 Beaver Foods was bought out by

Compass Group Canada/Chartwells and Food Services is now being operated

by Chartwells, which is the division of Compass that specializes in educational

institutions.

Research

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

SSHRC and the provincial government, although over $6 million comes from

corporations and other non-profit organizations. As an example, the Juvenile

Diabetics Foundation is in its second year of a 3 year, $2.7 million research

project. The Canadian Institute of Health Research is funding a $1.38 million

Page 4

Page 21

research* project over 4 years. The National Centre of Excellence for

Teleleaming continues to bring in $3.6 million per year of which $3 million is

distributed to other universities. SSHRC initiated a new program last year, the

Strategic Theme Grants program, to fund research networks. SFU will be

receiving $2 million' over four years under this program. There are over 1300

active research accounts with total activity of $27 million compared to $25 million

in 1999/00.

The new Canada Research Chair program administered by the three granting

councils in partnership with the Canada Foundation for Innovation and Industry

Canada will provide funding for 38 chairs at SFU. Funding is provided over a

five-year period and may be used for research and infrastructure support as well

as recruitment costs, salaries and benefits.

Endowment

The university's endowment fund 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.

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.

This fund received $1,804,000 in new donations during the year and $3,933,000

of interest income was capitalized in order to protect the economic value of the

endowments. The fund stands at $89,824,000 at the end of the fiscal year.

S p ecific Purpose

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

conference fees, private donations and interest income from endowments for

scholarships. There are many international activities; the Canadian International

Development Agency funds projects in Indonesia, the Philippines, China and

Ghana. Field Schools funded by participants were held in China, Fiji, Prague,

France, Greece and Ghana. The Faculty of Education also has a number of

smaller international initiatives in Jamaica, Japan and Greenland as examples.

• . ..AdministrativelUnion 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.

13.

Pledges

Pledges made

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

$6,296,000

(2000 - $5,753,000). 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.

Comparatives

Certain comparative figures have been restated to conform with the current year's presentation.

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

hosting the Institute of Nutrition, Metabolism and Diabetes. At March 31, 2001

$461,000 was received.

Page 20

Page 5

Activity in the fund this year was $31

million compared to $22 million in

1999/2000.

10. ?

Endowment

2000

Balance, beginning of year

Capital

$84O87

$81,288

No new capital construction has been undertaken for approximately four years

Donations ?

1,334

and is a concern as enrolment targets are increased each year and space

Capitalized income and other transfers

6.9:

1.465

becomes increasingly constrained.

Balance, end of year

$89.824 ?

$84.087

Construction was completed on the International Centre for Dialogue with

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

expenditures amounting to $4.7 million for the year.

Funding sources for this

' ?

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

project include a $4.0 million Federal government grant, private donations of $7.0

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

million and a bank loan of $6.3 million. The Centre opened its doors for business

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

in September 2000.

expended, and reinvesting unexpended income.

Included in the $89,824,000 is a receivable of

$5,709,000 from the SFU Foundation for future proceeds from the sale of

remaining lots.

Provincially funded minor capital cyclical maintenance on campus buildings

11. ?

Pension Plans

renovations and upgrades.

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

New Initiatives

Academic Pension Plan

The Board of Governors has approved the first phase of the

Burnaby Mountain

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

Community Project

and the East Neighbourhood Subdivision Plan has been

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

20, 1973

to choose

submitted to the City of Burnaby for approval. An Order-in Council approval will

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

be required before the university is able to market development sites. We expect

salary.

to approach developers in late fall and some clearing for roads and service

installation will commence at this time. Actual housing construction is anticipated

An amendment to the plan in

1981

and a letter of agreement between the university and the

in the summer or fall of 2002.

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 January 1,

1999

shows an

The provincial government gave approval in principle for the inclusion of Simon

actuarial liability of $5,694,000 against the actuarial value of assets of $5,984,000 resulting in a

Fraser University in the revitalization project in the downtown core. It is proposed

surplus of $290,000 in the fund.

that SFU would be a partner in the renovated

Woodward's

building, close to the

Administrative/Union Pension Plan

downtown Harbour Centre campus.

The project would provide approximately

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

160,000 square feet of leased space and

$35

million for future lease and

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

operating costs.

The University is currently in the pre-planning phase involving

Plan:

the preparation of a detailed business plan.

If brought to fruition, the design

could begin as early as this fall.

. ? 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.

2000

1,424

1.941

18,055

To the Members of the Board of Governors

of Simon Fraser University:

3,313

9,228

11,984

f1%

Report of the Auditor General

of British Columbia

9. ?

Restricted for Specific Commitments

I have audited the statement of financial position of

Simon Fraser University

as at

3,795 ?

March 31, 2001 and the statements of operations and changes in operating net assets, changes in

16,679 ?

net assets and cash flows. These financial statements are the responsibility of the University's

$63 561

management. My responsibility is to express an opinion on these financial statements based on

my audit.

General Operating

Carryovers - faculties & departments

$6,783

Auxiliaries and special projects

2,783

Research and other grants

6,929

Specific provisions

2,960

Non-recurring expenditures

5.062

Total General Operating

24,517

Ancillary enterprises

Long-term commitments

Total Restricted for Specific Commitments

L7!i

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 o

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

0 ?

Capital represents funds that are committed to capital projects.

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

activities.

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, 2001 and the results of its operations and its

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

principles.

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.

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

•.

y0fAt

A&044

Victoria, British Columbia

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

8. ?

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:

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

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

restricted contributions.

2000?

Interest cost on benefit obligation

Less actual payments to retirees during the year

Net Increase in employee future benefits

Balance end of year

2000

Total

received during the year

Less: Transferred

to revenue

Balance end of year

SIMON FRASER UNIVERSITY ?

STATEMENT OF FINANCIAL POSITION

AS AT MARCH 31, 2001

(thousands of dollars)

CURRENT ASSETS

Cash and short-term investments (Note 3)

Capital assets (Note 5)

Unamortized debt discount

I ILII I! II

I4-1

IS*1

CURRENT LIABILITIES

Accounts payable and accrued liabilities

Current portion of long term debt (Note 6)

Employees future benefits (Note 7)

Long-term debt (Note 6)

Deferred contributions (Note 8)

Deferred contributions related to capital assets (Note 8)

NET ASSETS

Operating

Restricted for specific commitments (Note 9)

Invested in capital assets

Employees' Future Benefits

$.499,751

The accompanying notes are an integral part of these financial statem ts

Finance and Administration

fl fl

2000

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

bear interest rates between 5.06% and 6.80%, have an amortization period of 15 years and are

due between January 30, 2002 and December 30, 2004.

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

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

a portion of the Maggie Benston Student Services Building.

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

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

maturity amount to $248,000.

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 2002 and 2022. The

debentures are secured by student residence buildings. Annual payments including principal and

interest due within the next five years are as follows:

Total

$2,622

SIMON FRASER

STATEMENT OF OPERATIONS and

CHANGES IN OPERATING NET ASSETS

FOR THE YEAR ENDED MARCH 31, 2001?

(thousands of dollars)

REVENUE

Government grants and contracts

Province of British Columbia

Government of Canada

Other governments

Student fees -

credit

courses

non-credit

courses

- other

Gifts, grants and contracts

Sale of goods and services

Investment income

Miscellaneous income

Amortization of deferred capital contributions

EXPENSE

Salaries - academic

other instruction

and research

- support

staff

Total salaries

Employee benefits (Note 7)

Travel and personnel costs

Materials and supplies

Communications

Other operational expenses

Depreciation

Grants to other agencies

Utilities

Renovations and alterations

Scholarships, bursaries and prizes

Contract services

Professional fees

Cost

of goods sold

Interest

Equipment rental and maintenance

Statement 2

2000

$ 134,335

19,739

1,103

41,390

6,330

3,741

14,042

22,559

10,289

3,032

7,780

264,340

58,620

25,385

54,125

138,130

25,153

8,999

9,794

1,262

10,405

21,562

3,593

3,856

3,378

9,874

3,202

6,546

7,982

2,634

2,233

Employees' Future Benefits

258,603

5,737

(6,988)

(1,227)?

(13,811)

$(15,038)

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

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

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

Page 16

EXCESS OF REVENUE OVER EXPENSE

CHANGES IN NET ASSETS

(Increase) decrease in specific commitments

Increase in investment in capital assets

NET CHANGE IN OPERATING EQUITY

OPERATING NET ASSETS, beginning of year,

OPERATING NET ASSETS, end of year

Page 9

Change in investment in capital assets

Amortization of deferred capital

contribution ?

- ?

8,055 ?

Capital asset acquisitions ?

26,282 ?

Deferred contributions ? -

Internally imposed restrictions

6,492 ?

- ?

CHANGE IN NET ASSETS ? 

NET ASSETS, 

end of year

$ ?

$89,824 ?

(21,562)

2001

2000

41.767

82,929

10.847

193.776

6.220

SIMON FRASER UNIVERSITY

STATEMENT OF CHANGES IN NET ASSETS

FOR THE YEAR ENDED MARCH 31, 2001

(thousands of dollars)

Capital Assets Endowment

Commitments

Principal ?

I

0 ?

...Long Term Investments

Bonds and Debentures Analysis

Sub-total externally held

Internally managed

Total Bonds and Debentures

NET ASSETS, 

beginning of year

Net change in operating equity

Endowment contributions

Capital preservation of endowment

2001

2000

Net

14,757

15,214

Leasehold improvements

6,913

9,086

Equipment & furnishings

25,962

26,910

$303.981

429

acres of land in Burnaby is

recorded in the financial statements at its

1965 assessed

value

of $572,000. Up to 100 acres of this land has been earmarked for development by the Burnaby

Mountain Community Corporation.

The downtown land

for the Centre for Dialogue

$1,148,000

1998.

Cash and Short Term Investments

Bonds maturing under one year

Total Cash and Short Term

Long Term Investments

Long term investments at fiscal year end are comprised of the following:

2000

Burnaby Mountain Community Corp

Total Long Term

The Vancouver Foundation holds a number of endowment funds for the benefit of the university.

These funds totalled $7,338,000 at March 31, 2001 and the portion of $5,305,000 belonging to the

university is included in the university's financial statements. In the fiscal year 2000/01 these funds

generated $648,000 of income (2000 - $618,000) for the university to be used for specific

purposes.

SIMON FRASER UNIVERSITY

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED MARCH 31, 2001

(thousands of dollars)

OPERATING ACTIVITIES

Excess of revenue over expense

Add (deduct)

Depreciation

Net decrease in non-cash current assets

Net increase in accounts payable and accrued liabilities

Amortization of deferred capital contributions

Increase in deferred contributions

Endowment contributions

Increase in employees future benefits

CASH PROVIDED BY OPERATING ACTIVITIES

INVESTING ACTIVITIES

Net increase in long term investments

Capital asset acquisitions

CASH USED IN INVESTING ACTIVITIES

FINANCING ACTIVITIES

Net debt principal (repaid) incurred

CASH PROVIDED USED IN FINANCING ACTIVITIES

NET INCREASE IN CASH AND

SHORT TERM INVESTMENTS

CASH AND SHORT TERM INVESTMENTS, beginning of year

CASH AND SHORT TERM INVESTMENTS, end of year

2000

Capital asset acquisitions are recorded on the statement of financial position at cost, except

donated assets which are recorded at fair market value at the date of acquisition. Depreciation is

recorded on a straight line basis over the estimated life of the asset as per the schedule below.

Equipment and furnishings

Computing equipment

Leasehold improvements

Works of art and collections are not amortized and include that portion of library assets considered

to have permanent value.

Investments

Short term investments are recorded at the lower of cost or market value.

Long term investments, which consist of marketable securities and real estate, are carried at cost

or, where donated, at their fair market value at the date of the ownership transfer of these assets to

the university. Where there has been a decline in the value of an investment that is not considered

temporary, the investment is written down to net realizable value.

Gains and losses on sales of these investments are recognized in the year of disposal and are

included in investment income.

Inventories

Inventories of supplies kept at Central Stores are recorded at cost. Inventories of merchandise

held for resale in the Bookstore and the Microcomputer Store are recorded at the lower of cost and

net realizable value.

Use of Estimates

The preparation of financial statements in accordance with generally accepted accounting

principles requires management to make estimates and assumptions that affect the reported

amounts of assets and liabilities at the date of the financial statements, and the reported amounts

of revenue and expenses during the reporting period. Actual results could differ from

management's best estimates as additional information becomes available in the future.