CONSOLIDATED FINANCIAL STATEMENTS For year ended March 31, 2016 PUBLISHED IN ACCORDANCE WITH THE FINANCIAL INFORMATION ACT (FORMATTED FOR UBC WEBSITE) Vancouver, B.C. Canada
Consolidated Financial Statements Year ended March 31, 2016 Published in Accordance with the Financial Information Act Table of Contents Statement of Management Responsibility... 1 Auditors Report... 2-3 Consolidated Financial Statements (audited): - Consolidated Statement of Financial Position... 4 - Consolidated Statement of Operations and Accumulated Surplus... 5 - Consolidated Statement of Changes in Net Debt... 6 - Consolidated Statement of Cash Flows... 7 - Consolidated Statement of Remeasurement Gains and Losses... 8 Notes to the Consolidated Financial Statements... 9 39 Schedule of Debt... 40 Schedule of Guarantee and Indemnity Agreements... 41 Schedule of Remuneration and Expenses in Respect of the Members of the Board of Governors... 42 Schedule of Remuneration and Expenses Paid to Employees or On Behalf of Employees... 43-146 Schedule of Payments for Goods and Services... 147-191 Schedule of Grants Paid to Other Agencies... 192-195
Page 1
KPMG LLP PO Box 10426 777 Dunsmuir Street Vancouver BC V7Y 1K3 Canada Telephone (604) 691-3000 Fax (604) 691-3031 INDEPENDENT AUDITORS REPORT To the Board of Governors of the University of British Columbia, and To the Minister of Advanced Education, Province of British Columbia We have audited the accompanying consolidated financial statements of the University of British Columbia, which comprise the consolidated statement of financial position as at March 31, 2016, the consolidated statements of operations, remeasurement gains and losses, change in net debt and cash flows, for the year then ended, and notes, comprising a summary of significant accounting policies and other explanatory information. Management's Responsibility for the Consolidated Financial Statements Management is responsible for the preparation of these consolidated financial statements in accordance with the financial reporting provisions of Section 23.1 of the Budget Transparency and Accountability Act of the Province of British Columbia, and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error. Auditors Responsibility Our responsibility is to express an opinion on these consolidated financial statements based on our audit. We conducted our audit in accordance with Canadian generally accepted auditing standards. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial statements. The procedures selected depend on our judgment, including the assessment of the risks of material misstatement of the consolidated financial statements, whether due to fraud or error. In making those risk assessments, we consider internal control relevant to the entity's preparation of the consolidated financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that the audit evidence we have obtained in our audit is sufficient and appropriate to provide a basis for our audit opinion. KPMG LLP is a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ( KPMG International ), a Swiss entity. KPMG Canada provides services to KPMG LLP. Page 2
Opinion In our opinion, the consolidated financial statements of the University of British Columbia as at March 31, 2016 and for the year then ended are prepared, in all material respects, in accordance with the financial reporting provisions of Section 23.1 of the Budget Transparency and Accountability Act of the Province of British Columbia. Emphasis of Matter Without modifying our opinion, we draw attention to Note 2 to the consolidated financial statements which describes the basis of accounting and the significant differences between such basis of accounting and Canadian public sector accounting standards. Chartered Professional Accountants June 14, 2016 Vancouver, Canada Page 3
CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT MARCH 31 (in thousands of dollars) March 31 March 31 2016 2015 FINANCIAL ASSETS Cash and cash equivalents (Note 4) $ 101,412 $ 80,364 Accounts receivable 175,901 230,558 Inventories for resale 6,330 7,051 Investments (Note 5) Operating 319,376 335,045 Endowment (expendable balance) 576,199 621,832 Investments in government business enterprises (Note 6) 17,111 11,672 1,196,329 1,286,522 LIABILITIES Accounts payable and accrued liabilities (Note 8) 279,516 242,412 Employee future benefits (Note 9) 11,960 11,429 Deferred contributions (Note 10) 817,913 819,826 Deferred capital contributions (Note 11) 1,413,581 1,405,548 Deferred land lease revenue (Note 12) 555,542 522,451 Debt (Note 13) 363,474 365,976 3,441,986 3,367,642 Net debt (2,245,657) (2,081,120) NON-FINANCIAL ASSETS Tangible capital assets (Note 14) 3,100,234 2,910,855 Investments Endowment (original contribution) (Note 5) 885,806 847,887 Inventories held for use 2,141 2,490 Prepaid expenses 8,238 7,408 3,996,419 3,768,640 Accumulated surplus $ 1,750,762 $ 1,687,520 Accumulated surplus is comprised of: Accumulated surplus $ 1,723,671 $ 1,632,471 Accumulated remeasurement gains 27,091 55,049 $ 1,750,762 $ 1,687,520 Contractual obligations and contingent liabilities (Note 17) Approved on behalf of the Board of Governors: Chair, Board of Governors (See accompanying notes to the consolidated financial statements) Vice-President Finance Page 1 Page 4
CONSOLIDATED STATEMENT OF OPERATIONS AND ACCUMULATED SURPLUS YEAR ENDED MARCH 31 (in thousands of dollars) Budget 2016 2015 (Notes 2(p) and 19) Revenues Government grants and contracts (note 16) $ 1,062,071 $ 1,059,734 $ 1,063,846 Tuition and student fees 537,634 560,490 503,277 Sales and services 331,790 332,136 322,107 Non-government grants, contracts and donations 143,990 156,709 142,653 Investment income 61,916 81,954 71,957 Income (loss) from government business enterprises (note 6) - 2,382 (100) Revenue recognized from deferred capital contributions (note 11) 80,567 76,355 87,985 2,217,968 2,269,760 2,191,725 Expenses Learning 1,069,336 1,088,526 1,038,231 Research 479,351 474,334 475,522 Facilities 275,954 260,738 272,372 Students 276,306 275,131 259,492 Community engagement 49,539 49,088 47,586 Administration 67,482 67,543 67,079 2,217,968 2,215,360 2,160,282 Annual surplus from operations - 54,400 31,443 External endowment donations 20,000 36,800 17,751 Annual surplus 20,000 91,200 49,194 Accumulated surplus, beginning of period $ 1,632,471 $ 1,632,471 $ 1,583,277 Accumulated surplus, end of period $ 1,652,471 $ 1,723,671 $ 1,632,471 (See accompanying notes to the consolidated financial statements) Page 2 Page 5
CONSOLIDATED STATEMENT OF CHANGES IN NET DEBT YEAR ENDED MARCH 31 (in thousands of dollars) 2016 2015 Budget Total Total (Notes 2(p) and 19) Annual surplus $ 20,000 $ 91,200 $ 49,194 Exclude items not affecting net debt: Endowment donations and transfers (20,000) (37,919) (18,732) - 53,281 30,462 Acquisition of tangible capital assets (429,433) (371,385) (367,480) Amortization of tangible capital assets 187,579 182,006 203,135 (241,854) (189,379) (164,345) Acquisition of inventories held for use (1,000) (4,574) (4,837) Acquisition of prepaid expense (1,000) (7,179) (6,733) Consumption of inventories held for use - 4,923 4,907 Use of prepaid expense - 6,349 8,046 (2,000) (481) 1,383 (243,854) (136,579) (132,500) Net remeasurement gains (losses) 4,326 (27,619) 21,556 Self-supported subsidiary other comprehensive income - (339) (773) Increase in net debt (239,528) (164,537) (111,717) Net debt, beginning of year (2,081,120) (2,081,120) (1,969,403) Net debt, end of year $ (2,320,648) $ (2,245,657) $ (2,081,120) Page 3 Page 6
CONSOLIDATED STATEMENT OF CASH FLOWS YEAR ENDED MARCH 31 (in thousands of dollars) 2016 2015 Cash provided from operating activities Annual surplus $ 91,200 $ 49,194 Add non-cash items: Amortization of tangible capital assets 182,006 203,135 Amortization of deferred capital contributions (76,355) (87,985) Amortization of deferred land lease revenue (5,737) (5,045) Change in employee future benefits 531 561 191,645 159,860 Change in non-cash operating working capital: Decrease (increase) in accounts receivable 54,657 (82,495) Decrease (increase) in inventories 1,070 (388) Decrease (increase) in prepaid expenses (830) 1,313 Increase (decrease) in accounts payable and accrued liabilities 37,104 42,949 283,646 121,239 Cash used in capital activities Tangible capital asset acquisitions (371,385) (367,480) Cash used in investing activities (Increase) decrease in investment in government business enterprises (5,439) 55,451 Net (acquisitions) dispositions in investments (98,747) (23,382) (104,186) 32,069 Cash provided from financing activities Net increase (decrease) in deferred contributions 93,201 63,131 Net decrease in long-term debt (3,444) (3,550) Increase in deferred land lease revenue 38,828 62,061 Increase in deferred capital contributions 84,388 82,329 212,973 203,971 Increase (decrease) in cash and cash equivalents 21,048 (10,201) Cash and cash equivalents, beginning of year 80,364 90,565 Cash and cash equivalents, end of year $ 101,412 $ 80,364 Supplemental cash flow information Cash paid for Interest $ 21,417 $ 21,676 (See accompanying notes to the consolidated financial statements) Page 4 Page 7
CONSOLIDATED STATEMENT OF REMEASUREMENT GAINS AND LOSSES YEAR ENDED MARCH 31 (in thousands of dollars) 2016 2015 Accumulated remeasurement gains, beginning of year $ 55,049 $ 34,266 Remeasurement gains (losses) realized and reclassified to the statement of operations from: Equity investments quoted in active market (11,086) (4,045) Other investments designated at fair value (331) 193 Unrealized gains (losses) generated during the year from: Equity investments quoted in active market (8,412) 10,024 Other investments designated at fair value (7,790) 15,384 Other comprehensive income from government business enterprises (339) (773) Net remeasurement gains (losses) for the year (27,958) 20,783 Accumulated remeasurement gains, end of year $ 27,091 $ 55,049 (See accompanying notes to the consolidated financial statements) Page 5 Page 8
ConsolidatedFinancialStatements YearendedMarch31,2016 (alltabularamountsareinthousandsofdollars) NotestotheConsolidatedFinancialStatements 1AuthorityandPurpose TheUniversityofBritishColumbia(UBCortheUniversity)operatesundertheauthorityoftheUniversityAct of British Columbia. UBC is a comprehensive research university offering a full range of undergraduate, graduateandcontinuingstudiesprograms.theacademicgovernanceoftheuniversityisvestedinthesenate. Asanotforprofitentity,UBCisgovernedbyaBoardofGovernors,themajorityofwhomareappointedby theprovincialgovernmentofbritishcolumbia.ubcisalsoaregisteredcharityandisthereforeexemptfrom incometaxesundersection149oftheincometaxact. 2SignificantAccountingPolicies TheconsolidatedfinancialstatementsoftheUniversityarepreparedbymanagementinaccordancewiththe basisofaccountingdescribedbelow.significantaccountingpoliciesofubcareasfollows: (a) Basisofaccounting: TheconsolidatedfinancialstatementshavebeenpreparedinaccordancewithSection23.1oftheBudget Transparency and Accountability Act of the Province of British Columbia supplemented by Regulations 257/2010and198/2011issuedbytheProvinceofBritishColumbiaTreasuryBoard. TheBudgetTransparencyandAccountabilityActrequiresthattheconsolidatedfinancialstatementsbe prepared in accordance with the set of standards and guidelines that comprise generally accepted accountingprinciplesforseniorgovernmentsincanada,orifthetreasuryboardmakesaregulation,the set of standards and guidelines that comprise generally accepted accounting principles for senior governmentsincanadaasmodifiedbythealternatestandardorguidelineorpartthereofadoptedinthe regulation. Regulation257/2010requiresalltaxpayersupportedorganizationsintheSchools,Universities,Colleges andhospitalssectorstoadoptcanadianpublicsectoraccountingstandardswithoutanyps4200elections effectivetheirfirstfiscalyearcommencingafterjanuary1,2012. Regulation198/2011requiresthatrestrictedcontributionsreceivedorreceivablearetobereportedas revenue depending on the nature of the restrictions on the use of the funds by the contributors as follows: (i) (ii) Contributionsforthepurposeofacquiringordevelopingadepreciabletangiblecapitalassetor contributionsintheformofadepreciabletangiblecapitalassetarerecordedand,referredtoas deferredcapitalcontributionsandrecognizedinrevenueatthesameratethatamortizationofthe relatedtangiblecapitalassetisrecorded.thereductionofthedeferredcapitalcontributionsand therecognitionoftherevenueareaccountedforinthefiscalperiodduringwhichthetangible capitalassetisusedtoprovideservices. Contributionsrestrictedforspecificpurposesotherthanthosefortheacquisitionordevelopment ofadepreciabletangiblecapitalassetarerecordedasdeferredcontributionsandrecognizedin revenueintheyearinwhichthestipulationorrestrictiononthecontributionshavebeenmet. Page 6 Page 9
ConsolidatedFinancialStatements YearendedMarch31,2016 (alltabularamountsareinthousandsofdollars) ForBritishColumbiataxpayersupportedorganizations,thesecontributionsincludegovernmenttransfers andexternallyrestrictedcontributions. The accounting policy requirements under Regulation 198/2011 are significantly different from the requirementsofcanadianpublicsectoraccountingstandardswhichrequirethat government transfers, which do not contain a stipulation that creates a liability, be recognized as revenuebytherecipientwhenapprovedbythetransferorandtheeligibilitycriteriahavebeenmetin accordancewithpublicsectoraccountingstandardps3410;and externallyrestrictedcontributionsberecognizedasrevenueintheperiodinwhichtheresourcesare used for the purpose or purposes specified in accordance with public sector accounting standard PS3100. As a result, revenue recognized in the Statement of Operations and Accumulated Surplus and certain related deferred capital contributions would be recorded differently under Canadian Public Sector AccountingStandards. (b) BasisofPresentation TheUniversityreportsitsoperationsonaconsolidatedbasis,whichincludesactivitiesfromvariousfunds withintheuniversityandexternalentities. (c) Basisofconsolidation: (i) Consolidatedentities The consolidated financial statements reflect the assets, liabilities, revenues, and expenses of organizations which are controlled by UBC. Controlled organizations are consolidated except for government business enterprises which are accounted for by the modified equity method. Inter organizationaltransactions,balances,andactivitieshavebeeneliminatedonconsolidation. ThefollowingnotforprofitorganizationswhoseactivitiesareintendedtobenefitUBCarecontrolled bytheuniversityandarefullyconsolidatedinthesefinancialstatements: UBC Foundation, a notforprofit foundation formed to develop public awareness and encourage financialsupportfortheuniversity. AmericanFoundationforUBC,anAmericancharitablefoundationthatencouragesfinancialsupport oftheuniversity. Hong Kong Foundation for UBC, a notforprofit organization incorporated in Hong Kong that promotesandadvancesallmattersconcerningeducationinhongkongandelsewhere. Page 7 Page 10
ConsolidatedFinancialStatements YearendedMarch31,2016 (alltabularamountsareinthousandsofdollars) UK Foundation for the University of British Columbia, an official charitable organization in the United Kingdom that promotes and advances all matters concerning education in the UK and elsewhereintheworld. UBCSocietyfortheEducationofYoungChildren,anotforprofitorganizationthatmaintainsand operatesaneducationalprogramforyoungchildren. UBC Asia Pacific Regional Office Limited, a HongKong based association formed to promote and advancetheacademicandresearchinterestsoftheuniversityanditspartnersintheasiapacific region. ThefollowingforprofitentitiesarecontrolledbytheUniversityandarefullyconsolidatedinthese financialstatements: UBCInvestmentManagementTrust,whoseprimarypurposeistomanagetheinvestmentassetsof theuniversity sendowmentfundandthestaffpensionplan. UBCResearchEnterprisesInc.,whichpromotesthecreation,testing,development,productionand commercializationofintellectualpropertyownedbytheuniversity. (ii) Investmentingovernmentbusinessenterprises Government business enterprises are accounted for by the modified equity method. Under this method,theuniversity sinvestmentinthebusinessenterpriseanditsnetincomeandotherchanges inequityarerecorded.noadjustmentismadetoconformtheaccountingpoliciesofthegovernment business enterprise to those of UBC other than if other comprehensive income exists, which is accountedforasanadjustmenttoaccumulatedsurplus(deficit)oftheuniversity.interorganizational transactions and balances have not been eliminated, except for any profit or loss on transactions betweenentitiesofassetsthatremainwithintheentitiescontrolledbyubc. The following organizations are government business enterprises and are accounted for by the modifiedequitymethod: UBC Properties Investments Ltd. (UBCPIL) is controlled by UBC and is the bare trustee for UBC Properties Trust, which was established to carry out real estate development activities for the benefitoftheuniversity. GreatNorthernWayCampusTrust TheUniversityhasa25%(2015 25%)interestintheGreatNorthernWayCampusTrust.TheTrust was formed on September 15, 2002 to include the lands and premises comprising the Great Northern Way Campus for the equal benefit of the University, Simon Fraser University, British ColumbiaInstituteofTechnologyandtheEmilyCarrInstituteofArtandDesign. Page 8 Page 11
ConsolidatedFinancialStatements YearendedMarch31,2016 (alltabularamountsareinthousandsofdollars) (iii)investmentingovernmentpartnerships Government partnerships that are business partnerships are accounted for by the modified equity method.accountingpoliciesofthebusinesspartnershiparenotconformedtothoseofthepartners beforetheequitypickup.theuniversityisnotpartytoanygovernmentbusinesspartnerships. Government partnerships that are not business partnerships are accounted for under the proportionateconsolidationmethod.theuniversityaccountsforitsshareofthepartnershiponaline by line basis on the financial statements and eliminates any interorganizational transactions and balances.accountingpoliciesofthepartnershipwhichisnotabusinesspartnershipareconformedto thoseofubcbeforeitisproportionatelyconsolidated. Thefinancialstatementsincludetheaccountsofthefollowinggovernmentpartnerships,whichare not business partnerships, and are accounted for by the University using the proportionate consolidationmethodofaccounting: TriUniversitiesMesonFacility(TRIUMF) TheUniversityhasa8.33%(2015 8.33%)interestinTRIUMF.TRIUMFisajointventureamongst theuniversityandelevenotheruniversities,whichwasestablishedtooperateafacilityforresearch insubatomicphysics.triumfoperatesontheubccampusandelsewhere. WesternCanadianUniversitiesMarineSciencesSociety(WCUMSS) TheUniversityhasa20%(2015 20%)interestinWCUMSS.TheUniversityisoneoffiveuniversity membersofwcumss. CDRD Ventures Inc. (formerly DDI Drug Development Inc.), a development stage biotechnology enterprise. TheUniversityhasa33%(2015 33%)interestinCDRDVenturesInc.TheUniversityisoneofthree universitymembersofcdrdventuresinc. (iv)trustsunderadministration Trusts administered by UBC as directed by agreement or statute for certain beneficiaries are not includedintheuniversity sfinancialstatements. (d) Cashandcashequivalents Cashandcashequivalentsincludehighlyliquidinvestmentswithatermtomaturityofthreemonthsor lessatthedateofpurchase. Page 9 Page 12
ConsolidatedFinancialStatements YearendedMarch31,2016 (alltabularamountsareinthousandsofdollars) (e) RevenueRecognition (i) RestrictedRevenue TheUniversityfollowsthedeferralmethodofaccountingforcontributions.Somecontributions,such as grants and donations for research or capital purposes, are restricted in use by the external contributor. Externally restricted contributions are recognized as revenue when the restrictions imposedbythecontributorsontheuseofthemoniesaresatisfiedasfollows: Noncapital contributions for specific purposes are recorded as deferred contributions and recognizedasrevenueintheyearinwhichthestipulationorrestrictiononthecontributionhave beenmet;usuallytheyearinwhichtherelatedexpenseisincurred. Contributionsforthepurposeofacquiringordevelopingadepreciabletangiblecapitalassetorin the form of a depreciable tangible capital asset, in each case for use in providing services, are recordedandreferredtoasdeferredcapitalcontributionsandrecognizedinrevenueatthesame ratethatamortizationofthetangiblecapitalassetisrecorded.thereductionofthedeferredcapital contributionsandtherecognitionoftherevenueareaccountedforinthefiscalperiodduringwhich the tangible capital asset is used to provide services. Where the capital asset involved has an unlimited life, the contribution is recorded in the Statement of Operations and Accumulated Surplus. Somerestrictedcontributionsmustberetainedinperpetuity,allowingonlytheinvestmentincome earnedthereontobespent,andarerecordedasexternalendowmentdonationsonthestatementof Operations and Accumulated Surplus for the portion to be held in perpetuity and as deferred contributionsfortheinvestmentincomeearnedthereon. (ii) UnrestrictedRevenue Unrestrictedcontributionsarerecordedasrevenuewhenreceivableiftheamountscanbeestimated andcollectionisreasonablyassured.governmentgrantsnotrestrictedastotheirusearerecognized asrevenuewhenreceivable.otherunrestrictedrevenue,includingtuitionfeesandsalesofservices and products, are reported as revenue at the time the services are provided or the products are delivered. Tuition fees received in advance of courses being delivered are deferred and recognized whenthecoursesaredelivered. (iii)deferredlandleaserevenue TheUniversityleasescertainpropertiestothirdpartiesforaperiodof99years.Cashreceivedfrom landleasesisdeferredandrecognizedasrevenueoverthetermofthelease. (iv) InvestmentIncome Investmentincomeincludesinterestrecordedonanaccrualbasisanddividendsrecordedasdeclared, realized gains or losses on the sale of investments, writedowns on investments where the loss in value is determined to be other than temporary, and fair value adjustment of investments. Page 10 Page 13
ConsolidatedFinancialStatements YearendedMarch31,2016 (alltabularamountsareinthousandsofdollars) Investment transactions are recorded on a trade date basis. Transaction costs are expensed as incurred.totheextentthatinvestmentincomerelatestoexternallyrestrictedendowments,income isrecordedintheyearinwhichtherelatedexpensesareincurred. (f) FinancialInstruments (i) Classification,DisclosureandPresentation Financialinstrumentsareclassifiedintotwocategories:fairvalueorcost. Fair value category: Portfolio investments that are quoted in an active market, private equity investments,andlongtermfloatingnotesareallreflectedatfairvalueasatthereportingdate.sales and purchases of investments are recorded on the trade date. Transaction costs related to the acquisitionofinvestmentsarerecordedasanexpense.unrealizedgainsandlossesonfinancialassets, except those that are related to restricted endowments, are recognized in the Statement of Remeasurement Gains and Losses until such time that the financial asset is derecognized due to disposal or impairment. At the time of derecognition, the related realized gains and losses are recognizedinthestatementofoperationsandaccumulatedsurplusandrelatedbalancesreversed from the Statement of Remeasurement Gains and Losses. Unrealized gains and losses on financial assetsrelatedtorestrictedendowmentsareincludedindeferredcontributions. Cost category: Gains and losses are recognized in the Statement of Operations and Accumulated Surpluswhenthefinancialassetisderecognizedduetodisposalorimpairment.Salesandpurchases of investments are recorded on the trade date. Transaction costs related to the acquisition of investmentsareincludedinthecostoftherelatedinvestments. (g)shortterminvestments Shortterminvestmentsaredefinedtoincludehighlyliquidsecuritieswithtermstomaturityofoneyear orless.shortterminvestmentsarecashableondemandandarerecordedatfairvalue. (h) Inventoriesforresale Inventoriesheldforresale,includingbooks,foodservices,andgiftshopitems,arerecordedatthelower ofcostornetrealizablevalue.costisdeterminedusingtheweightedaveragebasis.costincludesinvoice cost and other costs incurred in bringing the inventories to their present location and condition. Net realizable value is the estimated selling price less the estimated costs necessary to make the sale. Inventoriesarewrittendowntonetrealizablevaluewhenthecostofinventoriesisestimatednottobe recoverable.whencircumstancesthatpreviouslycausedinventoriestobewrittendownbelowcostno longerexist,theamountofwritedownpreviouslyrecordedisreversed. (i) Nonfinancialassets Nonfinancialassetsarenotavailabletodischargeexistingliabilitiesandareheldforuseintheprovision ofservices.theyhaveusefullivesextendingbeyondthecurrentyearandarenotintendedforsaleinthe ordinarycourseofoperations. Page 11 Page 14
ConsolidatedFinancialStatements YearendedMarch31,2016 (alltabularamountsareinthousandsofdollars) (i)tangiblecapitalassets Tangible capital asset acquisitions are recorded at cost, which includes amounts that are directly attributable to acquisition, construction, development or betterment of the asset. Interest is not capitalized whenever external debt is issued to finance the construction of tangible capital assets. Donatedassetsarerecordedatfairvalueatthedateofdonation.Inunusualcircumstanceswherefair value cannot be reasonably determined, the tangible capital asset would be recognized at nominal value.transfersofcapitalassetsfromrelatedpartiesarerecordedatcarryingvalue. Capitalassetsareamortizedonastraightlinebasisovertheirestimatedusefullifeasshownbelow. Landisnotamortizedasitisdeemedtohaveapermanentvalue. Siteimprovements Buildings Buildingrenovations Furnishings,equipmentandsystems Librarybooks Assetsunderconstructionarenotamortizeduntiltheassetisavailableforproductiveuse. Tangiblecapitalassetsarewrittendownwhenconditionsindicatethattheynolongercontributeto UBC sabilitytoprovidegoodsandservices,orwhenthevalueoffutureeconomicbenefitsassociated withthetangiblecapitalassetsarelessthantheirnetbookvalue. (ii)worksofartandhistoricassets Worksofartandhistoricassetsarenotrecordedasassetsinthesefinancialstatements. (iii)inventoriesheldforuse Inventoriesheldforusearerecordedatthelowerofcostandreplacementcost. Costincludestheoriginalpurchasecost,plusshippingandapplicableduties.Replacementcostisthe estimatedcurrentpricetoreplacetheitems. (iv)leasedtangiblecapitalassets Leaseswhichtransfersubstantiallyallofthebenefitsandrisksincidentaltoownershipofproperty areaccountedforasleasedtangiblecapitalassets.allotherleasesareaccountedforasoperating leasesandtherelatedpaymentsarechargedtoexpensesasincurred. 1580years 1050years 540years 310years 10years Page 12 Page 15
ConsolidatedFinancialStatements YearendedMarch31,2016 (alltabularamountsareinthousandsofdollars) (j) EmployeeFutureBenefits (i) PensionPlans TheUniversityhastwopensionplansandasupplementalarrangementplanprovidingpensionand other benefits to its employees. The assets and liabilities of these plans are not included in the University sfinancialstatements. FacultyPensionPlan TheFacultyPensionPlanisadefinedcontributionplanprovidingbenefitsonamoneypurchasebasis. The cost of pension benefits includes the current service cost based on 10% of salary, less a fixed offsetting amount relating to Canada Pension Plan contributory earnings. The University expenses contributionstothisplanintheyearthecontributionsarerelatedto. StaffPensionPlan TheStaffPensionPlanprovidesbenefitsbasedon1.8%oftheaveragebestthreeyears basicsalary multipliedbythenumberofyearsofcontributoryservice.theuniversity scontributionforthestaff Pension Plan is 10% of salary, less a fixed offsetting amount relating to Canada Pension Plan contributoryearnings.intheeventoffundingdeficiencies,theuniversity scontributionsremainfixed andbenefitsformembersmaybereduced.accordingly,theuniversityexpensescontributionstothis planintheyearoftherelatedcontributions.benefitssecurityforemployeesisimprovedbytheplan maintaining a contingency reserve. The contingency reserve ceiling recommended by the plan s actuaryandapprovedbythepensionboardandcanadarevenueagencyis40%ofliabilities. SupplementalArrangement TheSupplementalArrangementhasbeenestablishedforthoseFacultyPensionPlanmemberswhose aggregateannualpensioncontributionsexceedthecontributionlimitallowedundertheincometax Act for registered plans. Excess University contributions are deposited into notional accounts establishedforeachmemberinthesupplementalarrangementaccount.nopaymentsaremadeout of the Supplemental Arrangement account before the earliest of the member s termination, retirementordeath. (ii) IncomeReplacementPlan Theincomereplacementplanprovidesincomefordisabledemployees.Theincomereplacementplan commences after a qualifying period of six months disability. When an employee is in receipt of incomereplacementbenefits,theuniversitycontinuestopaythecostsofcertainmemberbenefits. Thecostsoftheplanareemployeefunded.TheUniversityisnotrequiredtocontributetotheplan norisitresponsibleforanydeficitthattheplanmayincur. Page 13 Page 16
ConsolidatedFinancialStatements YearendedMarch31,2016 (alltabularamountsareinthousandsofdollars) (iii)sickleavebenefits Sick leave benefits are also available to UBC s employees. Employees are entitled to sick leave in accordancewiththetermsandconditionsoftheiremploymentcontracts.thecostsofthosebenefits which vest or accumulate are actuarially determined based on service and estimates of retirement ages and expected future salary or wage increases. The obligation is accrued based on projected benefitsastheemployeesrenderservicesnecessarytoearnthefuturebenefits.actuarialgainsand lossesareamortizedovertheexpectedaverageremainingservicelifeoftheemployees. (k)liabilityforcontaminatedsites Contaminatedsitesarearesultofcontaminationbeingintroducedintoair,soil,waterorsedimentofa chemical, organic or radioactive material or live organism that exceeds an environmental standard. Liabilitiesarerecordednetofanyexpectedrecoveries.Aliabilityforremediationofcontaminatedsitesis recognizedwhenallthefollowingcriteriaaremet: (i) anenvironmentalstandardexists; (ii) contaminationexceedstheenvironmentalstandard; (iii) theuniversityisdirectlyresponsibleoracceptsresponsibility; (iv) Itisexpectedthatfutureeconomicbenefitswillbegivenup;and (v) areasonableestimateoftheamountcanbemade. (l)useofestimates ThepreparationoffinancialstatementsinaccordancewithCanadianpublicsectoraccountingstandards requiresmanagementtomakeestimatesandassumptionsthataffectthereportedamountsofassetsand liabilities,anddisclosuresofcontingentassetsandliabilitiesatthedateofthefinancialstatementsand thereportedamountsofrevenuesandexpensesduringthereportingperiod.significantareasrequiring theuseofmanagementestimatesandassumptionsrelatetothedeterminationofusefullivesoftangible capitalassetsforamortizationandtheamortizationofrelateddeferredcapitalcontributions,valuationof financialinstruments,thepresentvalueofemployeefuturebenefitsandcommitments,andprovisionsfor contingencies. Where actual results differ from these estimates and assumptions, the impact will be recordedinfutureperiodswhenthedifferencebecomesknown. (m)debtissuecosts Theunderwritingdiscountalongwithconsultingfeesrelatingtothedebentureissuancesarecapitalized andamortizedtomatchthetermofthelongtermdebenture.amortizationiscalculatedbasedonthe effectiveinterestratemethod. Page 14 Page 17
ConsolidatedFinancialStatements YearendedMarch31,2016 (alltabularamountsareinthousandsofdollars) (n)assetretirementobligation TheUniversityrecognizesassetretirementobligationsintheperiodinwhichitincursalegalobligation associatedwiththeretirementofatangiblelonglivedassetincludingleasedpremisesresultingfromthe acquisition, construction, development, and/or normal use of the asset. The fair value of the asset retirement cost is capitalized as part of the carrying value of the related longlived asset and is depreciated over the life of the asset. The liability may be changed to reflect the passage of time and changesinthefairvalueassessmentoftheretirementobligation. (o) FunctionalClassificationofExpenses Expenses in the Consolidated Statement of Operations and Accumulated Surplus have been classified baseduponfunctionallinesofserviceprovidedbytheuniversity.theoutlineofservicesprovidedbyeach functionisasfollows: (i) Learning This function includes expenses related to all direct educational delivery within the institutionandactivitiesthatdirectlysupporttheacademicfunctionsoftheinstitution.thisincludes credit and noncredit courses, diploma, certificate and degree programs; continuing education; curriculum and program development; libraries and galleries; online delivery; information technology;specificpurposefunding;andendowmentnonawardfunding.costsassociatedwiththis functionincludecontractexpenses;deans/directorsand/orchairs;andinstructionaladministration (generalandfinancial),supportstaffandsupportcostsdirectlyrelatedtotheseactivities. (ii) ResearchThis function includes research activities specifically funded by contracts and/or grants from external organizations and undertaken within the institution to produce research outcomes. Costs associated with this function include such things as research administration, research accounting, support costs established to conduct all research projects, and research related amortization. (iii) Facilities This function includes all capital asset related expenditures for the operation of the University. These include the operation and maintenance of physical plant and equipment for all institutional activities; utilities; facilities administration; custodial services; landscaping and grounds keeping; major repairs and renovations; security services; administration of infrastructure development;amortizationexpense(otherthanresearchrelated)anddebtservicingcostsrelatedto theentireuniversity. (iv) StudentsThisfunctionincludesactivitiesthatdirectlysupporttheindividualstudentsorgroupsof students. These include: student service administration; counseling; career services; social developmentandrecreation;financialaidadministration;scholarshipsandbursaries;andanyother centralizedgeneralandfinancialadministrationandsupportcostsrelatedtotheseactivities.italso includes ancillary operations that provide goods and services to the students, Endowment Award relatedfundingandawardfundsthatsupportstudents.costsassociatedwiththisfunctioninclude generalandfinancialadministrationandsupportcostsdirectlyrelatedtotheseactivities. (v) Communityengagement Thisfunctionincludesactivitiesthatsupporttherelationshipbetweenthe University and the community. It includes campus planning; advancement and development office; alumni;public/governmentrelations;communityaffairs,andanyothercentralizedinstitutionwide Page 15 Page 18
ConsolidatedFinancialStatements YearendedMarch31,2016 (alltabularamountsareinthousandsofdollars) external affairs. Costs associated with this function include general, financial administration and supportcostsdirectlyrelatedtotheseactivities. (vi) Administration This function includes activities that support the institution as a whole, such as executive management; governance committees; the Board and Senate; corporate finance; human resources;purchasing;andanyothercentralizedinstitutionwidegeneraladministrativeactivities. (p) BudgetFigures Budgetfigureshavebeenprovidedforcomparativepurposesandhavebeenderivedfromthe2015/16 ConsolidatedBudgetapprovedbytheBoardofGovernorsofUBConJuly10,2015.Thebudgetisreflected inthestatementofoperationsandaccumulatedsurplusandthestatementofchangesinnetdebt.note 19reconcilestheapprovedbudgettothebudgetinformationpresentedintheseconsolidatedfinancial statements. 3RecastofComparativeFigures During the year the University determined that three adjustments were required in its comparative figures to correcttheinvestingandfinancingactivitiesonthestatementofcashflows,thecategorizationofinvestmentsin itsfairvaluehierarchyintheinvestmentnotedisclosure,andthecomponentsinthedeferredcontributionsnote disclosure. Onthestatementofcashflows,$56.1millionwasadjustedtodecreasefinancingactivitiesandincreaseinvesting activitiesrelatedtounrealizedgains(losses).thisresultedincashflowsfrominvestingactivitiesof$32.1million andcashflowsfromfinancingactivitiesof$203.9million.thisadjustmentresultedinanetnilimpacttototal cashflows. Inthedisclosureofinvestments,$179.2millionwasreclassifiedfromtheLevel3fairvaluehierarchyasfollows: $137.8millionintoLevel1and$41.4millionintoLevel2.Thisresultedininvestmentsinthefollowinghierarchy: Level 1: $1,473.8 million, Level 2: $66.1 million, Level 3: $253.7 million.this adjustment resulted in a net nilimpacttoinvestments. Inthedisclosurefordeferredcontributions,$26.7millionwasadjustedintheadditionsandrevenuecomponents ofthenotetoremoveunrestrictedinvestmentincomerelatedtoendowments.thisadjustmentresultedinanet nilimpacttodeferredcontributions. 4CashandCashEquivalents March31, March31, 2016 2015 Cash $ 26,402 $ 10,682 Cashequivalents 75,010 69,682 $ 101,412 $ 80,364 Page 16 Page 19
ConsolidatedFinancialStatements YearendedMarch31,2016 (alltabularamountsareinthousandsofdollars) TheUniversityhasaseasonalrevolvinglineofcredit.DuringSeptember1toMay31,thelineofcreditisCAD $40million,andduringJune1toAugust31,thelineofcreditisincreasedtoCAD$60million.Thisoperating facilityincludes,asasublimit,ausdollarcurrentaccountoverdraftfacilityuptous$5million(march31, 2015 the University had a CAD $40 million revolving line of credit with a sub limit of US $5 million line of credit). 5Investments Investmentsincludeoperating,endowmentandsinkingfundinvestments.Operatinginvestmentsconsistof research, capital, and other funds received and held in advance for future expenditures. Endowment investments consist of donations held in perpetuity and land lease revenues received by the University to benefitcurrentandfuturegenerations.sinkingfundinvestmentsaremanagedbytheprovincialgovernment andwillbeappliedagainstrepaymentofprovincialdebenturesonmaturity(note13). (a) AnalysisofInvestments March31, March31, 2016 2015 Governmentandcorporatebonds Maturity Lessthan1year $ 30,078 $ 45,338 15years 178,287 259,357 Greaterthan5years 107,260 26,817 Various pooled 276,151 270,192 591,776 601,704 Shorttermnotesandtreasurybills 10,798 8,049 Canadianequities 189,348 171,043 Canadianpooledfunds 263,687 287,049 UnitedStatesequitiesandpooledfunds 136,975 172,008 Otherinternationalpooledfunds 558,998 540,561 Other 50,219 43,037 $ 1,801,801 $ 1,823,451 Page 17 Page 20
ConsolidatedFinancialStatements YearendedMarch31,2016 (alltabularamountsareinthousandsofdollars) Theseinvestmentsarepresentedintheconsolidatedfinancialstatementsas: March31, March31, 2016 2015 Operatinginvestments $ 319,376 $ 335,045 Endowment(expendablebalance) 576,199 621,832 Endowment(originalcontribution) 885,806 847,887 Sinkingfundinvestments(Note13) 20,420 18,687 $ 1,801,801 $ 1,823,451 Investmentsmaturingbetween90daysandoneyearincludepromissorynotesof$30.1million(March31, 2015 $45.3 million) with a related party, UBC Properties Trust (Note 6(b)). The promissory notes are unsecuredwithfloatinginterestratessetatthegreaterofeitherprimerateless1.0%orafloorrateof2.5% perannum. Other investments include cash and shortterm investments related to endowments and real estate investments,promissorynotesissuedbyunrelatedparties,andlongtermfloatingnotes(ltfn). (b)endowmentinvestments (i)endowmentinvestmentsarereportedasfinancialassets(expendableportion)andnonfinancialassets (externally restricted principal portion). The portion reported as nonfinancial assets comprise investments representing the original donation, which are externally restricted by donors and, therefore,cannotbespentandarenotconsideredfinancialassets. March31, March31, 2016 2015 Principal Expendable Total Principal Expendable Total Balance,beginningofyear $847,887 $621,832 $1,469,719 $829,155 $492,706 $1,321,861 Donations 36,800 36,800 17,751 17,751 Internaltransfers 1,119 (1,244) (125) 981 (2,666) (1,685) Transfersto/fromcash (1,597) (1,597) (4,046) (4,046) Investmentincome 12,514 12,514 181,029 181,029 Expenses (55,306) (55,306) (45,191) (45,191) Balance,endofyear $885,806 $576,199 $1,462,005 $847,887 $621,832 $1,469,719 (ii)endowmentsheldbyvancouverfoundation Endowmentswithafairvalueof$23.7million(March31,2015 $22.5million)areheldbytheVancouver FoundationinperpetuityforthebenefitoftheUniversityandarenotincludedintheUniversity sfinancial statements.thecapitaloftheseendowmentfundsareheldpermanentlybyvancouverfoundationand investedinaccordancewiththeprovisionsofthevancouverfoundationsact. Page 18 Page 21
ConsolidatedFinancialStatements YearendedMarch31,2016 (alltabularamountsareinthousandsofdollars) Endowmentswithafairvalueof$26.0million(March31,2015 $24.7million)areheldandmanagedby VancouverFoundationandareincludedintheUniversity sfinancialstatements.theuniversityhasthe discretion to direct Vancouver Foundation to transfer the whole or any part of the capital of these endowmentfundstotheuniversity. (c) FairValueofFinancialInstruments Fairvalueofafinancialinstrumentisdefinedastheamountatwhichtheinstrumentcouldbeexchangedina currenttransactionbetweenwillingparties.ubcusesthefollowingmethodsandassumptionstoestimatethe fair value of each class of financial instruments for which the carrying amounts are included in the ConsolidatedStatementofFinancialPositionunderthefollowingcaptions: Financialassetsandliabilitiesrecordedatfairvaluearecomprisedofthefollowing: Cashandcashequivalents,accountsreceivableandaccountspayableandaccruedliabilities thecarrying amountsapproximatefairvaluebecauseoftheshortmaturityoftheseinstruments. Operatinginvestments Endowmentinvestments The financial instruments measured at fair value held within each investment are classified according to a hierarchy which includes three levels, reflecting the reliability of the inputs involved in the fair value determination.thedifferentlevelsaredefinedasfollows: Level1:quotedprices(unadjusted)inactivemarketsforidenticalassetsorliabilities Level 2: inputs other than quoted prices included within Level 1 that are observable for the asset or liability,eitherdirectly(i.e.asprices)orindirectly(i.e.derivedfromprices) Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs). Page 19 Page 22
ConsolidatedFinancialStatements YearendedMarch31,2016 (alltabularamountsareinthousandsofdollars) Thecompositionofinvestmentsrecordedatfairvalueisasfollows: Quotedprices Significant inactive other Significant marketsfor observable unobservable March31,2016 identical assets inputs inputs Total (Level1) (Level2) (Level3) Endowmentinvestments: Cashandshorttermnotes $ 25,029 $ 25,029 $ $ Fixedincome Mutualfunds 177,457 177,457 Canadianequities 265,052 265,052 Canadianequitiesmutualfunds 166,697 166,697 UnitedStatesequitiesmutualfunds 91,500 91,500 Internationalequitiesmutualfunds 413,691 324,263 89,428 Realestate 22,004 22,004 Privateequity 264,393 264,393 Other 25,979 25,979 Totalendowmentinvestments recordedatfairvalue 1,451,802 1,049,998 115,407 286,397 Operatinginvestments: Shortterminvestments Fixedincome Government 308,948 308,948 Mutualfunds 1,755 1,755 Canadianequities 2,058 2,058 UnitedStatesequities Privateequity 6,615 6,615 Totaloperatinginvestmentsrecorded atfairvalue 319,376 311,006 8,370 Total $ 1,771,178 $ 1,361,004 $ 115,407 $ 294,767 Page 20 Page 23
ConsolidatedFinancialStatements YearendedMarch31,2016 (alltabularamountsareinthousandsofdollars) Quotedprices Significant inactive other Significant marketsfor observable unobservable March31,2015 identical assets inputs Inputs Total (Level1) (Level2) (Level3) Endowmentinvestments: Cashandshorttermnotes $ 16,562 $ 16,562 $ $ Fixedincome Mutualfunds 175,426 175,426 Canadianequities 244,054 244,054 Canadianequitiesmutualfunds 194,332 194,332 UnitedStatesequitiesmutualfunds 143,560 143,560 Internationalequitiesmutualfunds 414,654 373,281 41,373 Realestate 34,841 34,841 Privateequity 211,424 211,424 Other 24,716 24,716 Totalendowmentinvestments recordedatfairvalue 1,459,569 1,147,215 66,089 246,265 Operatinginvestments: Shortterminvestments Fixedincome Government 323,806 323,806 Mutualfunds 1,184 1,184 Canadianequities 2,742 2,742 UnitedStatesequities 20 20 Privateequity 6,293 6,293 Totaloperatinginvestments recordedatfairvalue 334,045 326,568 7,477 Total $ 1,793,614 $ 1,473,783 $ 66,089 $ 253,742 Page 21 Page 24
ConsolidatedFinancialStatements YearendedMarch31,2016 (alltabularamountsareinthousandsofdollars) The following table reconciles the changes in fair value of financial instruments classified as level 3 during the year. March31, 2016 March31, 2015 Balance,beginningofyear $ 253,742 $ 248,148 Unrealizedgainsor(losses) (4,012) 11,627 Purchases 70,008 31,808 Dispositions (24,971) (37,841) Balance,endofyear $ 294,767 $ 253,742 Page 22 Page 25
ConsolidatedFinancialStatements YearendedMarch31,2016 (alltabularamountsareinthousandsofdollars) 6InvestmentsinGovernmentBusinessEnterprises TwoentitiesareaccountedforintheUniversity sfinancialstatementsusingthemodifiedequitymethodof accountingforgovernmentbusinessenterprises(note2(c)(ii)). Financialinformationinrespectoftheseentitiesisdisclosedbelow. UBCPropertiesInvestmentsLtd. GreatNorthernWay ConsolidatedStatementof March31, 2016 March31, 2015 March31, 2016 March31, 2015 FinancialPosition: Financialassets $ 90,387 $ 62,311 $ 66,668 $ 65,278 Liabilities 385,631 363,798 17,733 17,036 Netliabilities (295,244) (301,487) 48,935 48,242 Nonfinancialassets 329,866 306,880 14,130 14,485 Accumulatedsurplus $ 34,622 $ 5,393 $ 63,065 $ 63,087 AdjustmentforInfrastructure (33,277) (9,493) ImpactCharges(IIC's)and contributions Adjustedaccumulatedsurplus $ 1,345 $ (4,100) $ 63,065 $ 63,087 UBC'sproportionateshare $ 1,345 $ (4,100) $ 15,766 $ 15,772 UBCPropertiesInvestmentsLtd. GreatNorthernWay ConsolidatedStatementof March31, 2016 March31, 2015 March31, 2016 March31, 2015 Operations: Revenue $ 49,778 $ 48,459 $ 8,592 $ 13,072 Expenses 7,092 6,852 7,259 8,515 Surplusfortheyear 42,686 41,607 1,333 4,557 Adjustmenttodeferlandsales (40,847) (43,056) AdjustmentforIIC's 210 210 Adjustedaccumulatedsurplus $ 2,049 $ (1,239)$ 1,333 $ 4,557 UBC'sproportionateshare $ 2,049 $ (1,239)$ 333 $ 1,139 (a) UBCPropertiesInvestmentsLtd.recognizesrevenuefromsalesof99yearleasesinitsincomestatement in the year that the transaction is completed. The University defers these revenues on the Statement Financial Position and amortizes the balance to the Statement of Operations and Accumulated Surplus overthedurationofthelease(note12). (b) Duringtheyear,thefollowingsignificantrelatedpartytransactionsoccurred: UBCPropertiesTrust,asubsidiaryofUBCPropertiesInvestmentLtd,invoicedtheUniversity$4.4million (2015 $4.1million)forprojectmanagementfees. Page 23 Page 26
ConsolidatedFinancialStatements YearendedMarch31,2016 (alltabularamountsareinthousandsofdollars) UBC Properties Trust issued promissory notes in favour of the University amounting to $30.1 million (March31,2015 $45.3million).Thisisreflectedwithininvestments(Note5).TheUniversitycharged UBCPropertiesTrustinterestintheamountof$0.4million(2015 $1.1million). The University collected $2.5 million from UBC Properties Trust (2015$21.2million) for infrastructure impactcharges.thesechargeshavebeeneliminatedintheconsolidatedfinancialstatements. 7InvestmentsinGovernmentPartnerships UBC provides contributions to fund the operations of TRIUMF, WCUMSS, and CDRD Ventures Inc. Their financial results are proportionately consolidated with those of UBC based upon UBC s share of their total contributions. Theamountsincludedintheseconsolidatedfinancialstatementsareasfollows: TRIUMF WCUMSS CDRDVenturesInc. March31, March31, March31, March31, March31, March31, ConsolidatedStatementof 2016 2015 2016 2015 2016 2015 FinancialPosition: Financialassets $ 32,148 $ 26,382 $ 752 $ 696 $ 1,574 $ 1,579 Liabilities 33,747 34,275 2,314 2,204 7,695 6,910 NetLiabilities (1,599) (7,893) (1,562) (1,508) (6,121) (5,331) Nonfinancialassets 22,850 25,032 5,572 5,360 48 79 Accumulatedsurplus(deficit) $ 21,251 $ 17,139 $ 4,010 $ 3,852 $ (6,073) $ (5,252) UBC'sproportionateshare $ 1,771 $ 1,428 $ 802 $ 770 $ (2,024) $ (1,751) ConsolidatedStatementof Operations: Revenue $ 70,615 $ 84,564 $ 3,281 $ 3,136 $ 366 $ 911 Expenses 66,502 79,602 3,123 3,314 1,187 2,835 Surplus(deficit)fortheyear $ 4,113 $ 4,962 $ 158 $ (178) $ (821) $ (1,924) UBC'sproportionateshare $ 343 $ 414 $ 32 $ (36) $ (274) $ (641) TRUIMFexpensesallcapitalassetsinitsincomestatementasacquired;theUniversitycapitalizesthecapital assetsandamortizesthemovertheusefullives.triumfrecognizesrevenueintheyearitisreceived,whereas theuniversityfollowsthedeferralmethodofaccountingforcontributions. Page 24 Page 27
ConsolidatedFinancialStatements YearendedMarch31,2016 (alltabularamountsareinthousandsofdollars) 8AccountsPayableandAccruedLiabilities March31, March31, 2016 2015 Accountspayableandaccruedliabilities $ 211,304 $ 197,828 Salariesandbenefitspayable 30,913 17,110 Accruedvacationpay 7,430 7,376 Amountspayabletogovernmentorganizations 29,869 20,098 $ 279,516 $ 242,412 IncludedinaccountspayableandaccruedliabilitiesatMarch31,2016isabalanceof$34.6millionowingto UBCPropertiesInvestmentsLtd(March31,2015$38.6million). 9EmployeeFutureBenefits (a) ContributionstoPensionPlans Universitycontributionsmadetoeachofthepensionplanswere: March31, March31, 2016 2015 FacultyPensionPlan $ 39,033 $ 38,145 StaffPensionPlan 37,882 37,304 SupplementalArrangement 3,070 3,180 $ 79,985 $ 78,629 Page 25 Page 28