Durham College Annual Report

2009-2010
 Our People
Table of
contents
Message from the president 4

Mission, vision and values 5

Success matters strategic plan 6

Our students 7

Our people 11

Our business 12

Community outreach 13

Government announcements 14

Mapping Success 15

Audited financial statements 16

Our People 
 From the president

Dear friends,

It gives me great pleasure to present Durham College’s 2009-

2010 annual report.

This year has been one of tremendous growth for our college,
both in terms of our enrolment and infrastructure. Thanks to
significant investments from the federal, provincial and
regional governments, we celebrated the opening of Phase 1 of
our Whitby campus expansion; saw the groundbreaking of
Phase 2 and the new Student Services building at our Oshawa
campus.

We continue to create opportunities and pathways for

underrepresented students through projects such as the First
Generation Student Initiative, which has enabled us to create
bursaries for students who are the first in their family to attend
post-secondary education. In addition, our commitment to
second career learners remains strong with 498 Second Career
program students from a variety of backgrounds enrolled in
our programs this past academic year.

I would like to thank everyone who participated in the

consultation process for our new strategic plan. Your
contributions have helped shape the resulting document,
Mapping Success, which will drive our actions over the next
three years.

We have much to be proud of at Durham College and thanks to

the hard work and dedication of our staff and faculty, we have
a balanced budget this year and will remain in a strong
position to continue to grow and prosper in the years ahead.

Don Lovisa
President, Durham College

 Our People
 Mission:
The student experience comes first at Durham College.

Vision:
Durham College is the premier college in Canada for career-focused students who will
succeed in a challenging, supportive and inclusive learning environment;
Our programs are continually shaped by market needs and delivered by exceptional
teachers with real-world experience;
Our vibrant campus community enriches the student life experience; and
All of this combines to ensure our graduates have the market-ready skills to succeed in
their careers and make a difference in the world.

Values:
Our values drive our organizational culture and our behaviour in delivering our vision
and mission. They are:

Integrity and transparency...

We will behave and communicate sincerely and honestly.

Respect...
We will treat everyone with dignity and offer superior service.

Equality and diversity...

We will champion all learners and celebrate diversity.

Innovation...
We will be leaders in market-responsive learning experiences and solutions.

Personal and team accountability...

We will do what we say we will do.

Mission, visions and values 

 The success matters strategic plan
The 2009-2010 academic year marked the third year of Durham College’s five-year Success
Matters strategic plan. The annual report provides details on the implementation of this plan and
highlights achievements and success stories related to our mission that the student experience
comes first at Durham College.

The Success Matters strategic plan outlined a number of strategies and priority actions relating
to three key goals: Our Students, Our People and Our Business. It is through the lens of these
three goals that we share, in the pages ahead, the decisions and activities that took place over
the past year.

Supporting our mission, Durham College created a new strategic plan for 2010 to 2013 in the
spring of 2010. Designed to build on our previous strategic plan and based on extensive
consultation with the Durham College community including students, faculty, staff and the Board
of Governors, Mapping Success includes our mission statement, vision, values and goals as well
as our key strategies for the next three years.

 e success matters strategic plan

Our students

GOAL: Twenty-four students also completed a university preparation

program.
TO PROVIDE OUR STUDENTS WITH QUALITY LEARNING
EXPERIENCES AND SUPPORT IN FINDING PATHWAYS TO • Durham College delivered Job Connect programs in
GOOD JOBS AND PRODUCTIVE CITIZENSHIP. Bowmanville, Oshawa, Port Hope and Uxbridge, Ontario.
In 2009-2010 we:

» Welcomed more than 10,000 job seekers to the Job

Achievement highlights: Connect Employment Resource Centres and held several
ENROLMENT employer events;

In 2009, 2,341 students graduated with market-ready skills and » Provided employment counselling and placement support
qualifications from Durham College’s full-time post-secondary to more than 974 job seekers; and
programs in the following schools: » Ensured overall more than 71 per cent of clients placed
• School of Applied Sciences, Apprenticeship, with employers were still employed upon exiting the
Skilled Trades & Technology – 222 program.

• School of Business, IT & Management – 408 • The Community Employment Resource Centres in Port Perry,
downtown Oshawa and Beaverton served more than 2,760
• School of Career Development & Continuing Education – 356 new clients and had almost 19,740 repeat visits.

• School of Communication, Language & General Studies – 138

• School of Health & Community Services – 512 COMMUNITY CONSULTATIONS

• School of Justice & Emergency Services – 442 Durham College takes pride in our reputation for offering
programs and training that meet the employment needs of the
• School of Media, Art & Design – 263 region, province and country. One of the fundamental keys to
our success is our ability to forecast and identify emerging and
growing sectors where new programs and training are critical
APPRENTICESHIP to meeting the future needs of employers and the region’s
• Durham College is a major player in the province for economic base.
apprenticeship delivery, with one of the most diverse After conducting community consultations and feasibility
program mixes of any college. During the 2009-2010 processes in two growing sectors, energy and
academic year, the college offered 18 apprenticeship hospitality/tourism, both areas that require large numbers of
programs, 12 of which were Red Seal, and had more than skilled professionals to provide a boost to the local economy,
1,400 registered apprentices. Durham College will introduce several programs in the fall of
• Three hundred and sixty-one apprentices graduated in 2009. 2010 to meet those needs.

As Durham Region continues to be one of the fastest growing

areas in the country, Durham College will continue to respond by
CONTINUING EDUCATION AND CAREER offering programs in new and growing disciplines and sectors.
DEVELOPMENT
• Durham College offered approximately 1,000 continuing
education courses in a wide variety of career and personal
interest areas during 2009-2010, with total registrations
reaching 19,258.

• The School of Career Development & Continuing Education

provided academic upgrading in math, English, chemistry,
biology, physics, and computer skills to 995 adult learners in
Beaverton, Oshawa and Uxbridge, Ontario. Students received
151,668 instructional (contact) hours and out of the number
of students, who completed the program, 179 went on to
employment, 226 went on to further training and education
and 391 attained their academic goal.

Our students 
 New programs KEY PERFORMANCE INDICATORS SURVEY RESULTS
SEPTEMBER 2009 The results of the 2009 provincial government – annual Key
Performance Indicators surveys showed that Durham College
• Business – Entrepreneurship and Small Business diploma
graduates continue to find employment and employers
(two-year);
continue to be overwhelmingly satisfied by their decision to
• Business Fundamentals certificate (one-year); hire a Durham graduate. The college’s results in the survey’s
five benchmark areas were:
• Energy Audit Techniques certificate (one-year);
• Employer satisfaction, 93.8 per cent;
• General Arts and Science – Health Sciences Preparation
certificate (one-year); and • Graduate employment, 82.8 per cent;

• Renewable Energy Technician diploma (two-year). • Graduation rate, 67.5 per cent;

• Graduate satisfaction, 74.2 per cent; and

SEPTEMBER 2010 (PLANNED): • Student satisfaction, 71.5 per cent.

• Biomedical Engineering Technology advanced diploma

(compressed fast track);

• Culinary Skills certificate (one-year);

PQAPA – good news for
Durham College
• Food Processing Safety Techniques certificate (one-year);
In April 2008, Durham College welcomed the provincial Program
• Hospitality Management – Hotel, Restaurant and Tourism Quality Assurance Process Audit (PQAPA) review team to our
diploma (two-year); Oshawa and Whitby campuses for three days. The team met
with various groups across the organization (e.g. support staff,
• Mechanical Techniques – Precision Machining/CNC certificate students, faculty, program teams, Durham College Leadership
(one-year new delivery model); and Team, Academic Leadership Team, etc.) in its examination of the
• Mediation\Alternative Dispute Resolution graduate certificate college’s compliance with PQAPA key criteria.
(one-year). When the review committee’s final report was presented in
November 2008, it was very positive in terms of what was
observed during its site visit. An 18-month follow-up report was
then presented in March 2010 commending:
 Our students
• The Innovation Centre for being an effective resource for all • Durham College students in the Computer
college programs, specifically in the areas of curriculum, Programmer/Analyst and Computer Systems
program mapping, teaching and learning and continuing to Technician/Technology programs have the opportunity to
provide key support to the academic enterprise; and apply to university in Australia through Durham College’s
articulation agreement with Griffith University.
• The Office of Research Services and Innovation for adding
significant value to the college and, specifically, to the • Durham College graduates from the Business Administration,
program quality assurance process by expanding its capacity Sport Management, Computer Programmer Analyst and
and remaining a critical resource to quality assurance and the Computer Systems Technology programs are able to apply to
strategic direction of the college as a whole. the fourth year of degree programs (three for three) at
Davenport University in Grand Rapids, Michigan.
Under the leadership of a PQAPA Quality Council, many
ongoing initiatives are now in place to ensure we remain • An electronic targeted e-mail marketing campaign was
committed to a comprehensive quality assurance and created, the International website was completely revamped
improvement process with a focus on our students. and a new International DVD and brochure were created for
promotional purposes to increase the presence of Durham
College in the international educational market place.

Strategic enrolment management • An agent network was created in several South East Asian
Strategic Enrolment Management (SEM) was rolled out at countries including China, India, South Korea and Vietnam
Durham College to enable us to establish, achieve and sustain with a Durham College recruiter based in Beijing, China who
enrolment and retention targets, effective program mix and co-ordinates communication and interacts with the other
quality in accordance with the Strategic Plan and Academic international agents.
Direction.
• Durham College entered a partnership with a number of school
The SEM Leadership Team was tasked with the creation of a boards as part of the Ontario Ministry of Education and
culture within and among all Durham College faculty and staff Ministry of Training, Colleges and Universities' School College
that supports enrolment growth and quality student services Work Initiative. The college received more than $97,800 to use
that will allow us to achieve our strategic mission in which the towards activities and forums such as Building Future
student experience comes first at Durham College. Reflected in Connections, Taste of the Trades, Teacher-Candidate Forum,
a SEM Plan that focuses on the three key areas of (a) College Math Project and School of Media, Art & Design
recruitment and enrolment, (b) program mix, and (c) student workshops and working with a secondary school panel,
success and retention, the result will be high quality programs, provide clear pathways to students from high school to college.
niche markets, flexible delivery, accessible support services, an
• Durham College welcomed 300 Durham Region Grade 7 and 8
increase in non-traditional students and a reputation as the
students to campus in May 2009 to encourage them to start
college of choice in our region.
forging their pathway to success through the Building Future
Connections program. Students participated in workshops
covering a variety of topics including designing and building a
Strengthening our programs and model of an amusement park ride; bandaging techniques for
animals; the work of paramedics; overview of what it takes to
post-secondary pathways: begin a career in policing; and how computer networks
• Durham College graduates from the Fitness and Health operate. The event helped students explore some of the many
Promotion program are now able to bridge to the University exciting, market-driven careers that come with pursuing a
of Ontario Institute of Technology’s (UOIT) Bachelor of Health college education.
Sciences degree in Kinesiology;
• The School of Business, IT & Management piloted an
• Graduates of the Computer System Technology and opportunity for full-time students to take individual courses
Computer Program Analyst programs are now able to bridge at night or on-line as an alternative to daytime programming.
to UOIT’s Bachelor of Information Technology. This flexible and responsive program is of particular interest
to mature learners.
• The Registered Practical Nursing-Bachelor of Science in
Nursing (RPN-BScN) Degree Completion Collaborative • Durham College remained at the forefront for delivering on
program is now available to applicants who have completed the provincial government’s commitment to Second Career
their Practical Nursing diploma from an accredited Ontario learners, reflecting the demographic and workplace realities
college. The collaboration will enable Practical Nursing of Durham Region. The college saw a total of 498 Second
graduates to obtain a UOIT Bachelor of Science in Nursing Career students from a variety of backgrounds enroll in
(BScN) degree in only three years if studying on a full-time programs at every school, with the highest number located at
basis and within five years if studying part-time in a new the School of Applied Sciences, Apprenticeship, Skilled
articulation agreement between Durham College, UOIT, and Trades &Technology at the Whitby campus.
Georgian College.

students 
Our Students
 • The college developed specific strategies in order to
maximize retention opportunities such as expanding the
Peer Tutoring program; creating programs to support
under-prepared students in the areas of numeracy and
communication skills; offering group tutoring sessions; and
ensuring that all new programs scheduled for September
2009 and 2010 have field-work placements.

• Durham College launched a unique research project that will

offer valuable new insight into how post-secondary schools
can develop and deliver service and support to enhance the
Mandi Doris, a Durham College student-athlete, participated
potential for success in students with learning disabilities
in the 2010 Olympic Torch Relay on December 16, carrying the
(LD) or attention deficit hyperactivity disorder (ADHD). The
torch in Newcastle, Ontario. She was nominated to represent
Higher Education Quality Council of Ontario (HEQCO)
the college in this extraordinary event by Ken Babcock,
announced $230,722.80 in funding over a two-and-a-half-year
athletic director. Doris, a student in the Office Administration
period, the largest amount awarded to 19 approved post-
program and captain of the Durham Lord's women's varsity
secondary projects, only four of which were colleges. The
volleyball team, ran with the torch down Edward Street in
research is being conducted through the Centre for Students
Newcastle for 300 metres to the cheers of many onlookers.
with Disabilities and looks at the types of services students
do or do not use, how certain services contribute to their
success, how they interact with the services, who they go to • Brendon Van der Weer, a graduate of the Mechanical
for assistance, how they engage with professors, potential Technician – Mechanical Maintenance and Control program
barriers and more. won gold in the Industrial Mechanic Millwright (IMM)
competition at the Ontario Skills competition. He then went
• Durham College received $216,000 in funding from the
on to win bronze at the Millwright competition at the 15th
Ministry of Training, Colleges and Universities to support
Canadian Skills Competition held in Charlottetown. Durham
students who are the first in their family to attend post-
College animation students Travis Twilt and Dustin Hitchcock
secondary education. The money is being used to support
won gold and Diego Turro and Adam Kube won silver in Skills
First Generation bursaries ranging in value from $1,500 to
Ontario's Post-Secondary Animation Competition.
$3,000 and provide direct support to first-generation students
who demonstrate financial need. As part of this initiative, a • Hilary Walls, a student from Durham College's graphic design
student co-ordinator assisted more than 555 first-generation program received industry recognition for her rebranding and
first-year students by providing them with continued support redesign of the Sprite soft drink can and carton. Hilary
through e-mentoring, information sharing and the facilitation completed this project as a third-year classroom assignment.
of connections to on-campus resources. She was selected by the Packaging Association of Canada
(PAC) as one of seven finalists from submissions from
• Durham College received $70,500 in funding from the
universities and colleges across Canada. On May 5, 2009 at the
Ministry of Training, Colleges and Universities’ Aboriginal
PACK-EX trade show in Toronto, she was selected as the
Education Office in March 2010. The funding will be used to
People's Choice (Designer) and awarded a $250 gift certificate.
develop an Aboriginal Student Centre to support post-
She was then announced as the first-place national winner and
secondary and training outcomes for Aboriginal Students.
received a $3,000 award.

• In June 2009, St John Ambulance (SJA) Durham honoured the

Campus Emergency Response Team (CERT) members for
covering the most on duty hours within Durham Region.

Our students – CERT’s 75 members volunteered a total of 8,322 hours. CERT is

a volunteer, emergency medical response team run by
success stories: Durham College and UOIT students with funding provided by
the Student Association.

• After completing three rounds of intense and challenging • The Graphic Design program in the School of Media, Art &
networking tests, two Durham College students emerged as Design was chosen by American Essentials, to host an
the best in Canada after finishing as the top Canadian team at exclusive, in-college packaging design competition. Its
the international Cisco Networking Academy 2009 NetRiders decision to partner with Durham College was a result of the
Skills Challenge. Chris Cowie and Danny Machnik, third-year high quality work done by many of the college's Graphic
students in the Computer Systems Technology program were Design graduates, which is showcased on the Packaging
recognized as the top competitors in Canada and placed Association of Canada's website. While students were allowed
second overall out of 38 teams from North America after the to work in teams, it was Kathryn Nichol's individual entry of a
final round of the annual networking competition on tin bucket with brown detailing that impressed the judges and
November 20. took first place. For her innovative entry, Nichol was awarded
$500 and a $500 gift certificate from American Essentials.
• In what is best described as an once-in-a-lifetime opportunity,

 Our students
Our people
GOAL: • The college utilized the expertise and services of the
Innovation Centre to enhance faculty skills. The centre
TO SUPPORT AND EMPOWER EACH EMPLOYEE TO MAKE
provided 159 faculty training sessions to 544 Durham College
THE BEST POSSIBLE CONTRIBUTION TO ACHIEVING OUR
attendants along with 791 hours of one-on-one consulting.
MISSION.
Fifty faculty members participated in the three-day faculty
development program.

• As part of the administrative performance planning system

Achievement highlights: we adopted, 360° assessments were rolled out for all
• Durham College retained the services of an external consultant leadership team members. The assessments solicited
to conduct an anonymous employee engagement survey. With feedback from key stakeholders to determine areas for
a participation rate of more than 70 per cent, in the database of professional development. Reviews were conducted for
the company administering the survey; Durham College had deans and associate deans and directors will be included in
the most engaged workforce of any company in Canada. We the next year.
shared the results with employees and further engaged staff
and faculty through small focus group discussions on how to • The Human Resources department offered more than 30
enhance the college’s strengths and solicited ideas, training events for faculty and staff including all-staff training
suggestions and feedback on improvements to make the on the Accessibility for Ontarians with Disabilities Act
college an even better place to work. (AODA). Durham College met the provincial requirements for
customer service under the AODA.
• Employees had greater opportunities than ever before to
meet with and discuss issues of importance with the college’s • We continued to celebrate all employees and the innovative
leadership team. A number of town hall meetings were held work taking place on campus through Campus Professional
over the past 12 months as well as consultation sessions on Development Day in June. The annual event included
the new strategic plan. Both were designed to foster two-way displays by departments and schools about their business,
conversations about news affecting the college. opportunities to network with colleagues, a keynote speaker,
barbecue and live music.
• After conducting focus groups, testing and gathering other
feedback and input from employees, the Communications,
Marketing and External Relations department launched an • The annual Staff Appreciation night, which recognizes
employee intranet in May 2009. The intranet, Information employees who are celebrating service anniversaries,
Centre for Employees (ICE), provides a way for staff and continues to draw hundreds of employees. The event
faculty to communicate and collaborate as well as an easy-to- includes dinner and the presentation of awards. Employees
access centralized repository of information. Work continues with 20 years or more of service to the college are featured
on the site as it grows and changes to meet the evolving in a booklet (includes their photos and biographies) that is
needs of its users. handed out to event attendees.

• A comprehensive shared services plan was created in

consultation with the shared services vice-presidents. Some
preliminary work has been conducted on the sharing of costs
in conjunction with the discussions on shared services
employees with UOIT. The plan implementation is targeted to
begin in April 2010 and communication to employees is
ongoing. Our two OPSEU local unions were actively
consulted and are fully supportive of the realignment plan.

• The transition from integrated services to the use of service

level agreements (SLAs) is being planned and implemented
with utmost care due to college employees being impacted
by the transition. Durham College labour unions have been
informed and consulted where needed.

• Discussions on a client-focused service delivery model are

ongoing and training is being developed for employees who
will be impacted as final SLAs are completed.

Our people 
 Our people – in 2001, Willona dedicated her career to providing quality
services to students who are living with a disability. Over the

success stories: years, she has successfully implemented many programs to

enhance the lives of students with disabilities on campus;

• Kathleen Stewart, a professor with Durham College’s School • Rick Kerr, a professor with the School of Communication,
of Justice & Emergency Services, was named a top 20 finalist Language & General Studies, qualified for the Club Crew
for the fifth annual TVO Best Lecturer Competition. Stewart, World Championships in Macau, China in July 2010, where
who joined the college full-time in 2000, teaches in the Legal he and his team from the Pickering Dragon Boat Club will
Administration program; defend their title from the 2008 competition in Malaysia, Asia;

• Anna Rodrigues, a Journalism professor at Durham College, • Jessica Salt, an athletic therapist with the Campus Recreation
launched Global Student Journalists, an international website and Wellness Centre, was selected to be a member of the
that enabled students studying journalism all over the world medical staff for the 2010 Paralympic Winter Games in
to connect with each other and share their work and ideas; Vancouver, British Columbia; and

• Willona Blanche, director of the Centre for Students with • Judy Robinson, vice-president, Academic, was recognized for
Disabilities was the recipient of the Durham College and being one of the best administrators in the province by the
UOIT 2008/2009 Accessibility Advocate Award. After Ontario College Administrative Staff Association (OCASA).
becoming director of the Centre for Students with Disabilities

Our business
GOAL: Phase 2, currently under construction, will increase the shop
area in the Skills Training Centre to accommodate new
TO MAKE BUSINESS DECISIONS THAT ARE EVIDENCE-BASED,
programs such as Power Engineering Technology, Sustainable
REFLECT BEST PRACTICES AND RESULT IN THE COLLEGE
Energy, Biomass Energy and Building Trades and Technology as
BEING PROSPEROUS AND ACHIEVING ITS MISSION.
well as programs focused on the skilled trades sector including
Precision Machining, Metal Fabricator, Carpenter, Steamfitter,
Construction Millwright and Tower Crane Operator.
WHITBY CAMPUS EXPANSION
Durham College was joined by the Honourable John Milloy,
minister of Training, Colleges and Universities and minister of
Research and Innovation, in December 2009 to celebrate the
grand opening of Phase 1 of the Whitby campus expansion.

The event showcased the initial phase of the planned $30

million three-phase expansion which is designed to support
Durham Region as the energy centre Of Ontario.

The event included moving Phase 1 of the expansion off the

traditional electricity grid into a sustainable power environment
and an official ribbon-cutting ceremony. Guests were also given
tours of the new space including the second-store addition and
new classrooms and labs, as well as the state-of-the-art Skills
Training Centre.

Leadership in Energy and Environmental Design (LEED) gold-

certified, Phase 1 of the expansion includes an Incubation
Centre developed in partnership with the University of Ontario Phase 2 will also include two houses – one older home with
Institute of Technology (UOIT) and the Durham Strategic Energy dated technology and wiring and one newly constructed home
Alliance and living lab environments including solar water with the latest energy efficient and environmentally friendly
heating, solar cell systems, wind turbines, geothermal technology available – to give students a sense of the changes
technology systems and trombe wall solar thermal collections. that continue to occur in the construction and building trades
and how to utilize them effectively.

 Our people/Our business

The third phase of the expansion, a Food and Hospitality • Having run at an annual deficit for over five years, the
Centre, will house culinary arts programs; a food and decision was made to close The Early Learning Centre on
agricultural growing component; a food processing centre; and October 31, 2009.
agriculture and science laboratories.
• The campus operation in Panama ended on November 30,
2009. All courses were completed within the scheduled time
frame and graduating students were presented their
OSHAWA CAMPUS STUDENT SERVICES BUILDING
certificates.
With construction currently underway, Durham College will
soon find itself home to one of the most comprehensive and all-
encompassing student services buildings in the province.

The Student Services building, scheduled to be completed by Community outreach

December 2010, will support students in their education efforts
while fostering lifelong learning. It will also serve as a vital first – building stronger
point of access for potential applicants, current students and
graduates, establishing a familiar resource over the life of an communities
individual's relationship with the college.
• The 2009 United Way campus campaign raised more than
The new building will face Simcoe Street and run along
$41,000, exceeding our goal by five per cent.
Commencement Drive, connecting it to the Simcoe building
and creating flow between it and the rest of campus.
• The 2009 campus holiday food drive raised more than
$13,000, helped feed 48 campus families and enabled us to
contribute to the Campus Food Bank.
Achievement highlights:
• A strong fixture in Durham Region for more than 42 years,
Durham College continually works with the community to
ensure learners of all types have access to an excellent post-
secondary experience. This includes working with local
organizations such as Community Living Oshawa/Clarington
to assist with public outreach and support. In honour of our
dedication to the association, we were given a Community
Living Oshawa/Clarington Community Inclusion Award in the
fall of 2009 for the Community Integration through Co-
operative Education (CICE) program, which gives students
with learning challenges access to post-secondary education.

• Durham College got a jump start on our commitment to

applied research when it was granted membership in the
Colleges Ontario Network for Industry Innovation (CONII) in
2009. A consortium of 20 Ontario colleges dedicated to • The fifth annual Power of Pink campaign in support of breast
helping business and industry become more competitive in cancer research held in March, raised $21,816, a 30 per cent
the global economy, CONII is the result of a $10-million increase from the previous year.
Ontario Ministry of Research and Innovation investment in • Approximately $2,000 was raised for the Eastview Boys and
the 2009 Ontario Budget (over three years). Girls Club during the third annual Campus Charity Walk and
• Geared to meet the needs of its external audiences, Run. The five-kilometre event took donors on a wide circuit
the revamped Durham College website was launched in around campus.
June 2009. The college’s face to the world, the new site • A team comprised of faculty and staff raised more than
ensures we put our best foot forward and leave potential $1,500 for the annual Run for the Cure held in October. The
students and others visiting the site with a keen sense of Durham College family has been participating in the run in
what we’re all about. Durham Region for more than 10 years.
• Durham College delivered surplus results in fiscal year 2009- • Durham College faculty, staff, students and their families dug
2010. We also implemented an accountability based their paddles deep in the fight against breast cancer, at the
budgeting model in preparation for the 2010-2011 fiscal-year fourth annual Dragon Flies Dragon Boat Festival held in June
budget. The new model meets accountability, transparency 2009 in Port Perry, Ontario.
and efficiency objectives.

• As a result of our new approach to international education,

Durham College had a large increase in international
applicants.

Our business 
 Government announcements and visits

MAY 2009

Durham College received $30 million

in federal-provincial funding
Durham College welcomed a $30-million investment by the
federal and provincial governments to support the construction
of a new Student Services building at its Oshawa campus and
launch Phase 2 of its three-phase Whitby campus expansion.
The college received $10 million from each government to
support the construction of the Student Services building,
which will provide one-stop accessible services for the college's
full-time, part-time and continuing education students.

DECEMBER 2009 FEBRUARY 2010

Durham College celebrated Durham Region approved
grand opening of Phase 1 of $5 million in funding for Whitby
Whitby campus expansion campus expansion
The Honourable John Milloy, minister of Training, Colleges Durham College saw Durham Region Council agree – with a
and Universities and minister of Research and Innovation, very strong majority – to give the college $5 million over
joined Don Lovisa, president of Durham College, Roger seven years toward phases 2 and 3 of the Whitby campus
Anderson, chair of the Region of Durham; Pat Perkins, mayor expansion in February 2010. The funding will support the
of the Town of Whitby; Aileen Fletcher, chair of the Durham ongoing expansion and renovation that when complete, will
College Board of Governors local politicians and dignitaries; see more than $30 million invested in renewable energy,
and Durham College faculty, staff and students to celebrate the living lab environments and an expanded campus involving
grand opening of Phase 1 of the Whitby campus expansion. the food and agricultural communities.

 Government announcements and visits

Mapping success
As Durham College moves into the 2010-2011 fiscal year, it does We are excited for the new opportunities that lie ahead,
so with considerably renewed confidence, energy and financial including phases 2 and 3 of our Whitby campus expansion and
stability. With our new strategic plan, Mapping Success, we the new Student Services building under construction at our
have a clear focus on the strategies we require to provide a Oshawa campus.
comprehensive and relevant mix of existing and new academic
Durham College plans to maximize these opportunities and
programs to meet the market needs of the local, provincial and
mitigate the challenges and risks inherent to advancing our
national economies and ensure student employment post-
strategic growth to further our mission statement and vision to
graduation. We also remain committed to student success and
be the premier college in Canada for career-focused students
will continue to present exceptional learning experiences and
who are motivated to succeed in a challenging, supportive and
customer service at all levels of the college.
inclusive learning environment.

Mapping success 
DURHAM COLLEGE OF APPLIED ARTS AND TECHNOLOGY
MARCH 31, 2010

Audited financial
statements
DURHAM COLLEGE OF APPLIED ARTS AND TECHNOLOGY
Consolidated Financial Statements
Table of Contents
March 31, 2010

Page
Auditors’ Report

Financial Statements:

Consolidated Statement of Financial Position - Statement 1 1

Consolidated Statement of Operations – Statement 2 2
Consolidated Statement of Changes in Net Assets – Statement 3 3
Consolidated Statement of Cash Flows – Statement 4 4
Notes to the Consolidated Financial Statements 5-22

Supplementary Schedules:

Consolidated Analysis of Operating Revenue – Schedule 2-1 23

Consolidated Analysis of Operating Human Resources Expenditure - Schedule 2-2 24
Consolidated Analysis of Operating Administrative and Other Expenditure – Schedule 2-3 25
 KPMG LLP Telephone (416) 228-7000
Chartered Accountants Fax (416) 228-7123
Yonge Corporate Centre Internet www.kpmg.ca
4100 Yonge Street Suite 200
Toronto ON M2P 2H3
Canada

AUDITORS' REPORT

To the Board of Governors of

Durham College of Applied Arts and Technology

We have audited the consolidated statement of financial position of Durham College of Applied Arts
and Technology as at March 31, 2010 and the consolidated statements of operations, changes in net
assets and cash flows for the year then ended. These financial statements are the responsibility of
the College's management. Our responsibility is to express an opinion on these financial statements
based on our audit.
We conducted our audit in accordance with Canadian generally accepted auditing standards. Those
standards require that we 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 our opinion, these consolidated financial statements present fairly, in all material respects, the
financial position of the College as at March 31, 2010 and the results of its operations and its cash
flows for the year then ended in accordance with Canadian generally accepted accounting principles.

Chartered Accountants, Licensed Public Accountants

Toronto, Canada
May 14, 2010, except
as to note 20 which is
as of June 9, 2010

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.
DURHAM COLLEGE OF APPLIED ARTS AND TECHNOLOGY
Consolidated Statement of Financial Position
March 31, 2010

2010 2009
ASSETS
CURRENT ASSETS
Cash $ 2,903,729 $ -
Short-term investments (Note 3(a)) 138,525 -
Accounts receivable 12,045,223 13,564,995
Current portion of long-term loan receivable (Note 2) 225,843 225,843
Inventories 610,526 588,662
Prepaid expenses 448,141 399,209
16,371,987 14,778,709

LONG-TERM ASSETS
Long-term loan receivable (Note 2) 1,354,812 1,502,737
Long-term receivable - 1,000,000
Long-term investments (Note 3(b)) 8,646,473 6,590,269
Capital assets (Note 4) 169,421,436 161,595,119
179,422,721 170,688,125
$ 195,794,708 $ 185,466,834

LIABILITIES
CURRENT LIABILITIES
Bank indebtedness (Note 7) $ - $ 3,806,673
Accounts payable and accrued liabilities (Note 5) 24,229,074 19,658,680
Deferred revenue (Note 6(a)) 9,206,895 9,152,598
Current portion of long-term debt (Note 7) 2,644,563 2,504,822
36,080,532 35,122,773
LONG-TERM LIABILITIES
Deferred contributions (Note 6(b)) 68,928,737 58,714,447
Long-term debt (Note 7) 76,724,093 79,370,097
Derivative liability (Note 7) 2,313,578 4,364,992
Employee future benefits (Note 8) 565,000 554,000
Other long-term employee future benefits (Note 9) 2,467,967 2,692,021
150,999,375 145,695,557
187,079,907 180,818,330

NET ASSETS

UNRESTRICTED (23,379,581) (24,540,008)

INVESTED IN CAPITAL ASSETS 21,470,598 21,005,753
INTERNALLY RESTRICTED 1,625,670 1,217,459
ENDOWMENTS 8,998,114 6,965,300
8,714,801 4,648,504
$ 195,794,708 $ 185,466,834

See accompanying notes to the consolidated financial statements.

APPROVED ON BEHALF OF THE BOARD OF GOVERNORS:

................................... ..................................
Chair President

1
DURHAM COLLEGE OF APPLIED ARTS AND TECHNOLOGY
Consolidated Statement of Operations
Year ended March 31, 2010

2010 2009

REVENUE - Schedule 2-1

Grants and reimbursements $ 55,183,716 $ 52,297,756
Student tuition fees 24,648,355 22,914,408
Ancillary operations 9,062,084 8,818,130
Other income 15,212,021 19,497,084
Corporate training 6,920,924 7,747,408
Rental Income 8,896,440 8,572,187
Change in market value of derivative instruments 2,051,414 -
Amortization of deferred capital contributions 4,335,781 4,033,126
Total Revenue 126,310,735 123,880,099

EXPENDITURES
Operating Human Resources - Schedule 2-2 67,066,345 64,273,879
Corporate Training Human Resources 2,628,895 2,803,240
Ancillary Human Resources 1,503,799 1,637,011
Total Human Resources 71,199,039 68,714,130

Operating Administrative and Other - Schedule 2-3 28,522,608 34,370,844

Total Flow through - Schedule 2-3 1,866,275 1,603,674
Corporate Training Administrative and Other 2,821,182 3,652,758
Ancillary Administrative and Other 8,906,560 8,345,127
Total Administrative and Other 42,116,625 47,972,403

LOSS ON FOREIGN EXCHANGE 12,616 177,137

AMORTIZATION OF CAPITAL ASSETS 10,948,972 9,720,229

DISCONTINUED OPERATIONS (Note 21) - 1,592,835

TOTAL EXPENDITURES 124,277,252 128,176,734

EXCESS OF REVENUES OVER EXPENDITURES,

(EXPENDITURES OVER REVENUE) $ 2,033,483 $ (4,296,635)

See accompanying notes to the consolidated financial statements.

2
DURHAM COLLEGE OF APPLIED ARTS AND TECHNOLOGY
Consolidated Statement of Changes in Net Assets
Year ended March 31, 2010

Internally Restricted Net Assets

Total
Internally
Invested in Restricted Total
Unrestricted Capital Assets Residence Foundation Net Assets Endowments 2010 2009
(Note 14) (Note 20) (Note 10) (Note 10)

BALANCE - BEGINNING
OF YEAR $ (24,540,008) $ 21,005,753 $ 675,019 $ 542,440 $ 1,217,459 $ 6,965,300 $ 4,648,504 $ 9,166,316

EXCESS OF REVENUE
OVER EXPENDITURE
(EXPENDITURE
OVER REVENUE) 8,565,598 (6,613,191) 81,076 81,076 2,033,483 (4,296,635)

INVESTMENT IN
CAPITAL ASSETS (7,078,036) 7,078,036

ENDOWMENT CONTRIBUTIONS 2,032,814 2,032,814 (221,177)

TRANSFER (Note 20) (327,135) 327,135 327,135

NET CHANGES DURING
THE YEAR 1,160,427 464,845 327,135 81,076 408,211 2,032,814 4,066,297 (4,517,812)
BALANCE - END OF YEAR $ (23,379,581) $ 21,470,598 $ 1,002,154 $ 623,516 $ 1,625,670 $ 8,998,114 $ 8,714,801 $ 4,648,504

See accompanying notes to the consolidated financial statements.

3
DURHAM COLLEGE OF APPLIED ARTS AND TECHNOLOGY
Consolidated Statement of Cash Flows
Year ended March 31, 2010

2010 2009

NET (OUTFLOW) INFLOW OF CASH

RELATED TO THE FOLLOWING ACTIVITIES

OPERATING
Excess of (expenditure over revenue) revenue over expenditure $ 2,033,483 $ (4,296,635)
Items not affecting cash
Amortization of capital assets 10,948,972 9,720,229
Amortization of deferred capital contributions (4,335,781) (4,033,126)
Change in market value of derivative instruments (2,051,414) 2,786,416
Employee future benefits 11,000 (5,000)
Write-down of Investment - 500,000
6,606,260 4,671,884
Net change in non-cash working capital
balances relating to operations
Accounts receivable 1,519,772 (6,360,705)
Inventories (21,864) (2,612)
Prepaid expenses (48,932) (325,870)
Long-term receivable 1,000,000 (1,000,000)
Accounts payable, accrued liabilities and
other long-term employee future benefits 4,346,340 3,156,550
Deferred revenue 2,054,297 (544,802)
Total Operating Activities 15,455,873 (405,555)

INVESTING
Purchase of capital assets (18,775,289) (7,411,555)
Decrease in long-term loan receivable 147,925 115,997
Increase in short-term investments (138,525) -
Increase in long-term investments (2,056,204) (725,858)
Total Investing Activities (20,822,093) (8,021,416)

FINANCING
Deferred contributions 12,550,071 6,197,171
Endowment contributions 2,032,814 (221,177)
Repayment of long-term debt (2,506,263) (3,442,801)
Total Financing Activities 12,076,622 2,533,193

Discontinued operations - 4,877,471

NET CASH (OUTFLOW) INFLOW 6,710,402 (1,016,307)

CASH (BANK INDEBTEDNESS), BEGINNING OF YEAR (3,806,673) (2,790,366)

CASH (BANK INDEBTEDNESS), END OF YEAR $ 2,903,729 $ (3,806,673)

SUPPLEMENTARY CASH FLOW INFORMATION

Interest paid $ 4,368,699 $ 4,827,497

See accompanying notes to the consolidated financial statements.

4
DURHAM COLLEGE OF APPLIED ARTS AND TECHNOLOGY
Notes to the Consolidated Financial Statements
March 31, 2010

Durham College of Applied Arts and Technology (the "College") was established as a corporation
without share capital, as set out in the Ontario Colleges of Applied Arts and Technology Act. The
Corporations Act governs the corporate affairs of the College and became effective April 1, 2003. The
College is principally involved in providing post-secondary educational services. Under the Income Tax
Act (Canada), the College is considered a registered charity and, accordingly, is exempt from income
taxes, provided certain requirements of the Income Tax Act (Canada) are met.

1. SIGNIFICANT ACCOUNTING POLICIES AND DISCLOSURES

(a) Basis of presentation

The financial statements of the College have been prepared by management in accordance
with the accounting standards for not-for-profit organizations, published by the Canadian
Institute of Chartered Accountants (“CICA”), using the deferral method of reporting
restricted contributions. These consolidated financial statements reflect the assets, liabilities,
revenues and expenses of the College and its subsidiaries, Durham College Foundation (the
“Foundation”) and Durham College Education Network (“DCEN”). All significant
intercompany balances and transactions have been eliminated upon consolidation.

(b) Revenue recognition

The College follows the deferral method of accounting for restricted contributions which
include donations and government grants.

Operating grants are recorded as revenue in the period to which they relate. Grants earned
but not received at the end of an accounting period are accrued. When a portion of a grant
relates to a future period, it is deferred and recognized in that subsequent period.

Unrestricted contributions are recognized as revenue when received or receivable if the

amount to be received can be reasonably estimated and collection is reasonably assured.

Externally restricted contributions, other than endowment contributions, are recognized as

revenue in the year in which the related expenses are recognized. Contributions restricted for
the purchase of capital assets are deferred and amortized into revenue at a rate corresponding
with the amortization rate for the related capital assets.

Endowment contributions are recognized as direct increases in endowment net assets.

Investment income earned on endowment funds which will be expended is recognized as

revenue when the related expense occurs. Restricted investment income is recognized as
revenue in the year in which the related expenses are recognized. Unrestricted investment
income is recognized as revenue when earned.

Pledged contributions for the College and the Ontario Student Opportunity Trust Funds are
recognized as received when the related pledge is confirmed, the amount can be reasonably
estimated and collection is reasonably assured.

5
DURHAM COLLEGE OF APPLIED ARTS AND TECHNOLOGY
Notes to the Consolidated Financial Statements
March 31, 2010

1. SIGNIFICANT ACCOUNTING POLICIES AND DISCLOSURES (continued)

Tuition fees are deferred to the extent that the related courses extend beyond the fiscal year
of the College.

Other operating revenues are deferred to the extent that related services provided, or goods
sold, are rendered/delivered subsequent to the end of the College's fiscal year.

(c) Financial Instruments

(i) Long-term loan receivable

The College has designated its long-term loan receivable as Loans and Receivables and
carries it at amortized cost. The fair value of this instrument is equal to its carrying value as
the interest charged is at variable current rates.

(ii) Long-term investments

The College has designated all of its investments as held for trading and as such they are
recorded at fair value. Restricted investment income is recognized as revenue when related
expenses are incurred.

(iii) Long-term debt

The College has designated its long-term debt as Other Liabilities and carries them at
amortized cost.

(iv) Derivative financial instruments

The College uses interest rate swap agreements to economically manage the floating interest
rate portion of the debt portfolio and the related overall cost of borrowing. These
instruments are not designated as hedges for accounting purposes and are carried on the
balance sheet, under the caption derivative liability, at the estimated fair market value.
Realized and unrealized gains or losses arising from net payments made or received and
changes in fair value related to the interest rate swap agreements are recognized in the
statement of operations in the period of the change as change in market value of derivative
instruments.

The College does not enter into derivative financial instruments for trading or speculative
purposes.

(v) Other financial instruments

Cash, bank indebtedness, short term investments, accounts receivable, accounts payable and
accrued liabilities are all classified as held for trading and are carried at fair value.

6
DURHAM COLLEGE OF APPLIED ARTS AND TECHNOLOGY
Notes to the Consolidated Financial Statements
March 31, 2010

1. SIGNIFICANT ACCOUNTING POLICIES (continued)

(d) Capital assets

Purchased capital assets are recorded at cost, which includes interest incurred before the
commencement of commercial operations. Contributed capital assets are recorded at fair
value at the date of contribution when fair value is reasonably determinable. Otherwise,
contributed assets are recorded at a nominal value. Repairs and maintenance costs are
charged to expense. Betterments, which extend the estimated life of an asset, are capitalized.
When a capital asset no longer contributes to the College's ability to provide services, its
carrying amount is written down to its residual value.

Capital assets are amortized on a straight-line basis over their average useful lives, which
have been estimated to be as follows:

Buildings 40 years
Equipment and furniture 5 - 10 years
Computer equipment 3 years

Capital assets acquired during the year are amortized at half of the applicable rate.

(e) Valuation of inventories

Inventories are valued at the lower of cost and net realizable value. Cost is determined on a
first-in, first-out basis.

(f) Student organizations

These financial statements do not reflect the assets, liabilities, and results of operations of the
various student organizations as they are not controlled by the College.

(g) Accumulated sick leave credits

The College recognizes employee sick leave gratuity liabilities as they are earned during the
employees’ tenure of service.

(h) Employee future benefits

The College recognizes employee future benefits (health, dental, life insurance and other
retirement obligations) as they are earned during the employee’s tenure of service.

7
DURHAM COLLEGE OF APPLIED ARTS AND TECHNOLOGY
Notes to the Consolidated Financial Statements
March 31, 2010

1. SIGNIFICANT ACCOUNTING POLICIES (continued)

(i) Foreign currency translation

Transactions in foreign currencies are translated into Canadian dollars at rates of exchange at
the time of such transactions. Monetary assets and liabilities are translated at current rates of
exchange with the resulting gains and losses included in income. Foreign operations are
considered integrated and are translated into Canadian dollars using current rates of
exchange for monetary assets and liabilities, historical rate of exchange for non-monetary
assets and liabilities, and average rates of exchange for revenues and expenditures, except
amortization which is translated at rates of exchange applicable to the related assets. Gains
and losses resulting from these translation adjustments are included in income.

(j) Use of estimates

The preparation of financial statements in conformity with Canadian generally accepted

accounting principles requires management to make estimates and assumptions that affect
the reported amount of assets and liabilities, the disclosure of contingent assets and liabilities
at the date of financial statements, and the reported amounts of revenue and expenditures
during the year. Estimates are used in reporting allowance for doubtful accounts, employee
future benefits, and accrued liabilities. Actual results could differ from these estimates.

(k) Capital disclosures

The College manages its capital primarily through its investments and adheres to the
College’s investment policies.

(l) Changes in accounting policies

(i) Amendments to 4400 Sections of the CICA Handbook:

Effective April 1, 2009, the College adopted the CICA amendments to the 4400
Sections of the CICA Handbook. These amendments allow the option to eliminate the
requirement to show net assets invested in capital assets as a separate component of net
assets, clarify the requirement for revenue and expenses to be presented on a gross basis
when the not-for-profit organization is acting as principal and require a statement of
cash flow. Adoption of these recommendations had no significant impact on the
financial statements for the year ended March 31, 2010.

(ii) Amendments to Section 1000 Financial Statement Concepts:

Effective April 1, 2009, the College adopted the CICA amendments to section 1000 of
the CICA Handbook. These amendments clarified the criteria for recognition of an
asset or liability, removing the ability to recognize assets or liabilities solely on the basis
of matching of revenue and expense items. Adoption of these recommendations had no
effect on the financial statements for the year ended March 31, 2010.

8
DURHAM COLLEGE OF APPLIED ARTS AND TECHNOLOGY
Notes to the Consolidated Financial Statements
March 31, 2010

1. SIGNIFICANT ACCOUNTING POLICIES (continued)

(iii) Disclosure of allocated expenses by not-for-profit organizations, Section 4470:

The College classifies expenses on the statement of operations by function. The entity
does not allocate expenses between functions on the statement of operations.

2. LONG-TERM LOAN RECEIVABLE

Long-term loan receivable includes a loan receivable from the Durham College Student
Association Incorporated, amounting to $1,580,655 (2009 - $1,728,580) which is repayable from
an annual special levy on student fees over a period not to exceed 40 years. The loan bears interest
at prime rate calculated monthly. The fair value of the loan receivable is not determinable as the
repayment amounts fluctuate annually based on student levy rates.

3. INVESTMENTS

(a) Short term investments

2010 2009
Cost Market Cost Market

Mutual Funds $ 138,173 $ 138,525 $ - $ -

$ 138,173 $ 138,525 $ - $ -

(b) Long term investments

2010 2009
Cost Market Cost Market

Equities $ 5,360,382 $ 5,331,395 $ 4,443,343 $ 3,544,375

Fixed Income 2,691,033 2,740,221 2,810,078 2,791,970
Mutual Funds 576,732 574,857 362,095 253,924
$ 8,628,147 $ 8,646,473 $ 7,615,516 $ 6,590,269

The College has long-term investments in a managed portfolio of equities, fixed income
investments and mutual funds. These investments are recorded at fair value based on year-end
quoted market prices. The College’s long-term investment policy stipulates that the total value of
the portfolio shall not exceed 75% at any one point in time. The long-term target of the policy
stipulates that not more than 60% of the total value of the portfolio shall be invested in equity
securities and 40% in fixed income investments.

9
DURHAM COLLEGE OF APPLIED ARTS AND TECHNOLOGY
Notes to the Consolidated Financial Statements
March 31, 2010

3. INVESTMENTS (continued)

(b) Long term investments (continued)

U.S. equities are held in U.S. dollars, which have been converted to Canadian dollars as at year-
end, using the exchange rate at that date. Investments held in U.S. dollars at March 31, 2010 were
approximately $1,557,151 (2009 - $938,197) stated in Canadian dollars.

(i) Investment risk management:

Risk management relates to the understanding and active management of risks associated with
all areas of the College’s activities and the associated operating environment. Investments are
primarily exposed to credit, interest rate, foreign currency, market and liquidity risks. The
College has formal policies and procedures that establish target asset mix. The College’s
policies also require diversification of investments within categories, and set limits on exposure
to individual investments.

(ii) Credit, interest rate and maturity risk:

The value of fixed income securities will generally rise if interest rates fall and decrease if
interest rates rise. Changes in interest rates may also affect the value of equity securities. The
fixed income investments consist of government bonds and corporate bonds, bearing interest
at rates ranging from 2.00% to 7.768% (2009 - 3.60% to 6.15%) and maturing from May 25,
2010 to October 15, 2036 (2009 – May 25, 2010 to October 15, 2036).

(iii) Foreign currency risk:

The value of securities denominated in a currency other than Canadian dollars will be affected
by changes in the value of the Canadian dollar in relation to the value of the currency in which
the security is denominated.

(iv) Market risk:

Market risk arises as a result of trading fixed income securities. The value of equity securities
changes with stock market conditions, which are affected by general economic and market
conditions. Changes in interest rates may also affect the value of equity securities.
Fluctuation in the market exposes the College to a risk of loss.

(v) Liquidity risk:

Money market investments represent instruments in highly liquid investments that are readily
converted into known amounts of cash. Equities and mutual funds represent liquid securities
traded in public markets.

10
DURHAM COLLEGE OF APPLIED ARTS AND TECHNOLOGY
Notes to the Consolidated Financial Statements
March 31, 2010

4. CAPITAL ASSETS

Net Book Value

Ending Accumulated
Cost Amortization NBV 2010 NBV 2009

Land $ 14,328,016 $ - $ 14,328,016 $ 14,328,016

Buildings 215,153,380 74,225,798 140,927,582 135,196,769
Computers 2,429,393 2,086,240 343,153 1,159,207
Equipment
and furniture 69,194,831 58,824,606 10,370,225 9,903,627
Construction-
in-progress 3,452,460 3,452,460 1,007,500
$ 304,558,080 $ 135,136,644 $ 169,421,436 $ 161,595,119

Amortization for the current year totaled $10,948,972 (2009 - $9,720,229).

5. ACCOUNTS PAYABLE AND ACCRUED LIABILITIES

On September 4, 2003, the College purchased the Windfields Farms property for $7,831,815,
consisting of $1,000,000 of cash and $6,831,815 of debt, for the purposes of expansion including
the future development of the University of Ontario Institute of Technology. The ownership of the
land currently resides with the College.

Included in accounts payable and accrued liabilities is $6,831,815 from 2007 due to the University
of Ontario Institute of Technology relating to payments of $2,277,272 each in years 2005, 2006
and 2007 for the mortgage payments, paid by the University, for the Windfields Farms land.

6. DEFERRED CONTRIBUTIONS

(a) Deferred revenue

Deferred revenue represents grants, tuition fees and other revenue related to expenses of
future periods.

11
DURHAM COLLEGE OF APPLIED ARTS AND TECHNOLOGY
Notes to the Consolidated Financial Statements
March 31, 2010

6. DEFERRED CONTRIBUTIONS (continued)

(b) Deferred contributions

(i) Capital contributions

Deferred capital contributions represent the unamortized amount of donations and

grants for the purchase of capital assets. The amortization of capital contributions is
recorded as revenue in the Consolidated Statement of Operations at the same rate as
amortization is recorded on the related capital assets.

2010 2009

Balance, beginning of year $ 58,714,447 $ 55,175,353

Contributions 14,203,516 7,572,220
Less amounts amortized to revenue (4,335,781) (4,033,126)
Balance, end of year $ 68,582,182 $ 58,714,447

Included in contributions is an amount of $2,000,000 transferred from deferred

revenues as the amounts were spent on capital assets in the current year.

(ii) Foundation
2010 2009

Balance, beginning of year $ - $ 1,375,049

Deferred investment income 682,175 -
Amortized to revenue - (1,067,116)
Scholarships & Bursaries (335,620) (307,933)
Balance, end of year $ 346,555 $ -

Total deferred contributions $ 68,928,737 $ 58,714,447

12
DURHAM COLLEGE OF APPLIED ARTS AND TECHNOLOGY
Notes to the Consolidated Financial Statements
March 31, 2010

7. LONG TERM DEBT

2010 2009

5.48% unsecured mortgage on student residence, repayable in

monthly instalments of $69,740 principal and interest, due
December 2023, interest rate renewable in December 2013. $ 8,068,241 $ 8,451,521

5.51% unsecured mortgage on student residence, repayable in

monthly instalments of $61,392 principal and interest,
due July 2017. 8,176,445 8,454,208

5.57% unsecured mortgage on student residence, repayable in

monthly instalments of $204,649 principal and interest, due
May 2029, interest rate renewal in May 2014. 28,877,485 29,699,828

4.89% unsecured mortgage on student residence, repayable in

monthly instalments of $74,505 principal and interest,
due in May 2014. 11,089,285 11,432,074

4.69% unsecured loan to finance the Student Centre, repayable

in monthly instalments of $18,820 principal and interest,
due 2018, interest rate renewal in September 2013. 1,583,458 1,731,259

Variable rate secured mortgage, with an underlying swap

fixing the rate at 5.14% on 199 Wentworth Avenue,
due in April 2016, interest and principal paid monthly. 8,258,000 8,487,000

Variable rate secured mortgage, with an underlying swap

fixing the rate at 5.38% on the Athletic and Health Centre,
due in November 2032, interest and principal paid monthly. 13,315,742 13,619,029

79,368,656 81,874,919
Less current portion 2,644,563 2,504,822
$ 76,724,093 $ 79,370,097

13
DURHAM COLLEGE OF APPLIED ARTS AND TECHNOLOGY
Notes to the Consolidated Financial Statements
March 31, 2010

7. LONG TERM DEBT (continued)

Principal payments due in each of the next five years and thereafter are as follows:

2011 2,644,563
2012 2,786,178
2013 2,935,911
2014 3,093,150
2015 3,258,306
Thereafter 64,650,548
79,368,656

Interest expense on long term debt of $4,368,699 (2009 - $4,827,517) is included in bank services
and credit card charges expense (Schedule 2-3).

The fair value of the fixed rate mortgages was $58,101,616 (2009 - $60,034,914) compared to a
carrying value of $57,788,914 (2009 - $59,768,890). Fair value has been calculated using the
future cash flows of the actual outstanding debt instrument, discounted at current market rates
available to the College.

The College entered into an interest rate swap to manage the interest rate variability arising on the
25 year mortgage for the Athletic and Health Centre. The mortgage bears interest at floating rates
based on banker’s acceptances. The swap effectively fixes the interest rate at 5.38% on an initial
principal amount of $14,000,000 over the 25 year life of the mortgage. At March 31, 2010, the
fair value of the swap was a liability of $1,554,622 (2009 – liability of $3,111,036).

The College entered into an interest rate swap to manage the interest rate variability arising on the
10 year mortgage for 199 Wentworth Avenue. The mortgage bears interest at floating rates based
on banker’s acceptances. The swap effectively fixes the interest rate at 5.14% on an initial
principal amount of $9,100,000 over the 10 year life of the mortgage. At March 31, 2010, the fair
value of the swap was a liability of $758,956 (2009 – liability of $1,253,956).

The College has a credit facility agreement with a Canadian chartered bank, which provides for a
revolving operating line of credit up to $10,000,000, bearing interest at prime plus 1.25%. At
March 31, 2010, the College utilized $2,287,972 (2009 - $8,632,445) of the operating line of
credit.

The College has a credit facility agreement with another Canadian chartered bank, which provides
for a revolving operating line of credit up to $1,000,000 with a temporary bulge up to $6,000,000
during May 1 to August 30 and December 1 to January 15 each year. The facility bears interest at
prime on the $1,000,000 portion and prime plus 0.50% on the excess. As at March 31, 2010, nil
was utilized (2009 – nil).

The College has entered into Irrevocable Standby Letters of Credit with a Canadian chartered
bank. The letters of credit consist of $15,000 bearing interest at 1.2% and $43,025 bearing interest
at 0.4%.
14
DURHAM COLLEGE OF APPLIED ARTS AND TECHNOLOGY
Notes to the Consolidated Financial Statements
March 31, 2010

8. EMPLOYEE FUTURE BENEFITS

Employee future benefits are health and dental benefits, life insurance and other retirement
obligations that are provided to early retirees, future retirees and employees currently on long term
disability. The College recognizes these employee future benefits as they are earned during the
employees’ tenure of services. The related benefit liability at March 31, 2010 was determined by
an actuarial valuation study as at March 31, 2010 commissioned by the College Compensation and
Appointments Council using a discount rate of 4.75% (2009 – 5.5%).

Information about the College’s employee future benefits is as follows:

2010 2009

Balance, beginning of year $ 554,000 $ 559,000

Current service costs 63,000 56,000
Interest 20,000 28,000
Benefits paid (72,000) (89,000)
Balance, end of year $ 565,000 $ 554,000

9. OTHER LONG-TERM EMPLOYEE FUTURE BENEFITS

Included in other long-term accrued liabilities are the following:

(a) Early retirement incentive plans, payments incentive plans and other agreements:

Future employee retirement and other compensation payments are calculated based on
estimated employee retirement dates and are valued as at March 31, 2010 using a discount
rate of 4.75% (2009 - 5.5%).

(b) Employee sick leave gratuity:

The employee sick leave gratuity liability is calculated based on management’s best estimate
of salary escalation rates and expected retirement dates and using a discount rate of 4.75%
(2009 – 5.5%).

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DURHAM COLLEGE OF APPLIED ARTS AND TECHNOLOGY
Notes to the Consolidated Financial Statements
March 31, 2010

10. RESTRICTED NET ASSETS

Internally restricted

Residence reserve: These funds are expendable for major capital refurbishments. Income earned
is expendable.

Fundraising - General: These funds are expendable as directed by the individual donors. Income
earned is expendable.

Endowments

Endowment funds are restricted donations received by the College where the endowment principal
is required to be maintained. The investment income generated from these endowments must be
used in accordance with the various purposes established by donors. The College ensures, as part
of its fiduciary responsibilities, that all funds received and transferred to the Foundation with a
restricted purpose are expended for the purpose for which they were provided.

Endowment funds include grants provided by the Government of Ontario from the Ontario Student
Opportunity Trust Fund (“OSOTF”) and the Ontario Trust for Student Support (“OTSS”). Under
these programs, the government matches funds raised by the College. The purpose of these
programs is to assist academically qualified individuals who, for financial reasons, would not
otherwise be able to attend College.

The balance of endowments at March 31 consists of the following:

2010 2009

OSOTF (Note 11) $ 4,159,737 $ 3,613,013

OTSS (Note 12) 3,895,507 2,571,228
Other 942,870 781,059
$ 8,998,114 $ 6,965,300

These funds are donated specifically for student assistance. Income earned is expendable to
provide financial assistance to students.

11. ONTARIO STUDENT OPPORTUNITY TRUST FUNDS

Net assets restricted for endowments include monies provided by the Government of Ontario from
the Ontario Student Opportunity Trust Fund matching program to award student aid as a result of
raising an equal amount of endowment donations.

The College has recorded the following amounts under the program:

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DURHAM COLLEGE OF APPLIED ARTS AND TECHNOLOGY
Notes to the Consolidated Financial Statements
March 31, 2010

11. ONTARIO STUDENT OPPORTUNITY TRUST FUNDS (continued)

OSOTF I

Schedule of Changes in Endowment Fund Balance

for the year ended March 31 2010 2009

Endowment fund balance, beginning of year $ 1,807,973 $ 2,081,470

Preservation of Capital 273,497 (273,497)
Endowment fund balance, end of year $ 2,081,470 $ 1,807,973

Schedule of Changes in Expendable Funds Available for

Awards for the year ended March 31 2010 2009

Expendable balance, beginning of year $ 15,788 $ 98,919

Realized investment income 144,752 -
Bursaries awarded (89,628) (83,131)
Expendable balance, end of year 70,912 15,788

Number of bursaries awarded 109 107

Market value of endowment $ 2,129,761 $ 1,894,788

OSOTF II

Schedule of Changes in Endowment Fund Balance

for the year ended March 31 2010 2009

Endowment fund balance, beginning of year $ 1,805,040 $ 2,078,267

Preservation of Capital 273,227 (273,227)
Endowment fund balance, end of year $ 2,078,267 $ 1,805,040

Schedule of Changes in Expendable Funds Available for

Awards for the year ended March 31 2010 2009

Expendable balance, beginning of year $ 21,665 $ 125,397

Realized investment income 144,854 -
Bursaries awarded (89,766) (103,732)
Expendable balance, end of year 76,753 21,665
Number of bursaries awarded 109 107
Market value of endowment $ 2,155,020 $ 1,826,705

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DURHAM COLLEGE OF APPLIED ARTS AND TECHNOLOGY
Notes to the Consolidated Financial Statements
March 31, 2010

12. ONTARIO TRUST FOR STUDENT SUPPORT

Net assets restricted for endowments include monies provided by the Government of Ontario from
the Ontario Trust for Student Support matching program to award student aid as a result of raising
an equal amount of endowment donations.

The College has recorded the following amounts in this program:

Schedule of Changes in Endowment Fund Balance

for the year ended March 31 2010 2009

Endowment balance, beginning of year $ 2,571,228 $ 2,098,870

Eligible cash donations 421,986 351,416
Matching funds received/receivable from MTCU 626,369 396,866
Preservation of captial 275,924 (275,924)
Endowment fund balance, end of year $ 3,895,507 $ 2,571,228

Schedule of Changes in Expendable Funds Available for

Awards for the year ended March 31 2010 2009

Expendable balance, beginning of year $ - $ 74,011

Realized Investment income 161,861 -
Bursaries awarded (90,517) (74,011)
Expendable balance, end of year $ 71,344 $ -

Number of Bursaries awarded 110 108

13. PENSION PLANS

Employees are participants in the contributory retirement pension plans administered by the
Colleges of Applied Arts and Technology Pension Plan. Under this arrangement, the College
makes contributions to these plans equal to those of the employees. The College follows defined
contribution accounting for its portion of the multi-employer plan. In the 2010 fiscal year, the
College's contributions in respect to the current service costs for these pension plans amounted to
$5,668,270 (2009 - $5,169,885). The pension plan is administered by a Board of Trustees and,
based on the latest actuarial report of March 1, 2008, the plan has a going concern deficit and a
solvency deficit. These deficits are eliminated when the contribution increase over the next two
years is considered. Any unfunded liability would be shared equally between the colleges and
their employees.

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DURHAM COLLEGE OF APPLIED ARTS AND TECHNOLOGY
Notes to the Consolidated Financial Statements
March 31, 2010

14. INVESTED IN CAPITAL ASSETS

(a) Investment in capital assets represents the following:

2010 2009

Capital assets - net book value $ 169,421,436 $ 161,595,119

Less amount financed by deferred capital
contributions (Note 6(b)) (68,582,182) (58,714,447)
Less amount financed by long term debt (Note 7) (79,368,656) (81,874,919)
Investment in capital assets $ 21,470,598 $ 21,005,753

(b) Change in investment in capital assets is calculated as follows:

2010 2009

Amortization of deferred contributions related

to capital assets (Note 6(b)) $ 4,335,781 $ 4,033,126
Less amortization of capital assets (10,948,972) (9,720,229)
Less loss on disposal of capital assets (Note 22) - (1,908,968)
(6,613,191) (7,596,071)

Net change in investment in capital assets:

Purchases of capital assets 18,775,289 7,411,554

Amounts funded by:
Deferred capital contributions (14,203,516) (7,637,529)
Repayment of long-term debt 2,506,263 3,442,801
$ 7,078,036 $ 3,216,826

15. SERVICE COSTS

Durham College provides certain administrative services to the University of Ontario Institute of
Technology under a shared service agreement. The cost of salaries, benefits and operating
expenses allocated to the University has been calculated based on an individual percentage per
department.

Effective April 1, 2007, the ancillary operations are being allocated based on metrics per operation
between the College and the University of Ontario Institute of Technology. Prior to fiscal 2008,
the gross revenues and expenses were recorded on the Durham College statements and an
allocation of net profits was provided to the University.

19
DURHAM COLLEGE OF APPLIED ARTS AND TECHNOLOGY
Notes to the Consolidated Financial Statements
March 31, 2010

15. SERVICE COSTS (continued)

During 2009, the College and University began reviewing the organization of the integrated
services departments in order to best serve both institutions going forward. In the review, a need
was recognized for both the College and University to have certain dedicated teams to meet each
of the institutions’ objectives and, as such, some of the departments were segregated.

Both institutions have continued to review the remaining services to formalize service level
agreements where collaboration is required. As at March 31, 2010, service level agreements have
not been finalized.

16. COMMITMENTS

Computer equipment

The College has entered into various arrangements to lease laptop computers which will expire up
to and including Fiscal 2013. The current cost of these operating leases reflected in the financial
statements is $1,218,052 (2009 - $1,266,386).

Premises and equipment

Future minimum lease payments, exclusive of taxes and operating costs, for premises and
equipment under operating leases at March 31, 2010 are as follows:

2011 $ 363,331
2012 184,658
2013 56,400
$ 604,389

17. CONTINGENCIES

The College has been named as the defendant in certain legal actions, in which damages have been
sought. The outcome of these actions are not determinable as at March 31, 2010 and accordingly,
no provision has been made in these financial statements for any liability which may result.

The College is involved in various legal actions that are within the normal course of operations. In
the opinion of management, any resulting liabilities are not expected to have a material adverse
effect on the consolidated financial position or net operations.

In Fiscal 2004, the College entered into an agreement to construct a facility for which the
commitment has not yet been fulfilled. Management is in the process of determining an
alternative plan with the third party. A resolution has not yet been finalized and no accruals have
been recorded in the financial statements.

20
DURHAM COLLEGE OF APPLIED ARTS AND TECHNOLOGY
Notes to the Consolidated Financial Statements
March 31, 2010

18. GUARANTEES

The College’s primary guarantees are as follows:

(a) Indemnity has been provided to all directors and or officers of the College for various items
including, but not limited to, all settled suits or actions due to association with the College,
subject to certain restrictions. The College has purchased directors’ and officers’ liability
insurance to mitigate the cost of any potential future suits or actions. The term of
indemnification is not explicitly defined, but is limited to the period over which the
indemnified party served as a governor, director or officer of the College. The maximum
amount of any potential future payment cannot be reasonably estimated.

(b) In the normal course of business, the College has entered into agreements that include
indemnities in favour of third parties, such as student work placement agreements, purchase
and sale agreements, confidentiality agreements, engagement letters with advisors and
consultants, outsourcing agreements, leasing contracts, information technology agreements
and service agreements. These indemnification agreements may require the College to
compensate counterparties for losses incurred by the counterparties as a result of breaches in
representation and regulations or as a result of litigation claims or statutory sanctions that
may be suffered by the counterparty as a consequence of the transaction. The terms of these
indemnities are not explicitly defined and the maximum amount of any potential
reimbursement cannot be reasonably estimated.

(c) The College received approval from the Ministry of Finance, Ontario to guarantee
$220,000,000 in Series A Debentures for the University of Ontario Institute of Technology.
These debentures bear interest at 6.351%, payable semi-annually, with the principal due in
2034.

19. FINANCIAL INSTRUMENTS

Fair value

The fair value of financial assets and liabilities approximate their carrying value due to the related
short-term maturity. Fair value of long-term note receivable is disclosed in Note 2, long-term
investments in Note 3, and long-term debt in Note 7.

Interest rate risk

The College is exposed to interest rate fluctuations on its long-term debt. The College currently
does not use any hedging strategies to mitigate this interest rate exposure other than as disclosed in
Note 7.

21
DURHAM COLLEGE OF APPLIED ARTS AND TECHNOLOGY
Notes to the Consolidated Financial Statements
March 31, 2010

19. FINANCIAL INSTRUMENTS (continued)

Credit risk

Credit risk arises from the potential that a counterparty will fail to perform its obligations. The
College is exposed to credit risk from students and customers, however the risk is mitigated by
proactive credit collections.

20. INTERNALLY RESTRICTED NET ASSETS - RESIDENCE

On June 9, 2010, the Board resolved to approve a transfer of $327,135 to the Internally Restricted
Net Assets for the residence for the purpose of future improvements to the facility.

21. DISCONTINUED OPERATIONS

In fiscal 2008, the Durham College Board of Governors agreed to the divestiture of the subsidiary
operations, Durham Contact Centre (DCC) and the Productivity Improvement Centre (PIC) group
of companies.

On October 15, 2008, DCC was sold for a gain of $693,748. The Company was sold for proceeds
of $5,500,000, of which $3,000,000 was payable on closing and the balance payable in future
years. A balance receivable of $2,681,841 remains as at March 31, 2009 which includes a working
capital purchase and sale adjustment. Subsequent to the sale, the purchaser commenced litigation
against DCEN, the outcome of which is indeterminable.

On March 12, 2009, the PIC group of companies were sold for a loss of $2,286,583. The group of
companies was sold for $2,000,000 payable upon closing.

Related party transactions were eliminated upon consolidation. The net loss from the discontinued
operations was $1,592,835 for fiscal 2009.

22. COMPARTIVE FIGURES

Certain comparative figures have been reclassified to conform with the financial statement
presentation adopted in the current year.

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DURHAM COLLEGE OF APPLIED ARTS AND TECHNOLOGY
Consolidated Analysis of Operating Revenue
Year ended March 31, 2010 SCHEDULE 2.1

2010 2009

GRANTS AND REIMBURSEMENTS

General Operating (mainly Post Secondary) $ 38,430,839 $ 31,086,875
Grants In Lieu of Municipal Taxation 471,600 462,675
Special Programs/Projects 7,844,119 12,539,547
Other Reimbursements 1,199,083 1,024,458

Canadian Job Strategy

Apprenticeship 3,515,858 3,728,923

Ontario Training Strategy

Career and Employment Preparation Program
and Summer Job Services Program 2,156,363 2,042,678
Literacy and Basic Skills 1,565,854 1,412,600
55,183,716 52,297,756

STUDENT TUITION FEES

Full-Time Students 18,112,457 15,469,527
Part-Time Students 4,219,020 4,694,226
International 957,602 1,025,085
Tuition Set-Aside 1,359,276 1,725,570
24,648,355 22,914,408

ANCILLARY OPERATIONS 9,062,084 8,818,130

OTHER INCOME
Rental Income 8,896,440 8,572,187
Corporate Training Centre Fees 6,920,924 7,747,408
Other 10,945,588 15,350,537
Student Incidental Fees 4,266,433 4,146,547
31,029,385 35,816,679

CHANGE IN MARKET VALUE OF DERIVATIVE

INSTRUMENTS 2,051,414 -

AMORTIZATION OF DEFERRED CAPITAL

CONTRIBUTIONS 4,335,781 4,033,126

TOTAL OPERATING REVENUE $ 126,310,735 $ 123,880,099

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DURHAM COLLEGE OF APPLIED ARTS AND TECHNOLOGY
Consolidated Analysis of Operating Human Resource Expenditure
Year ended March 31, 2010 SCHEDULE 2.2

2010 2009

TEACHING SALARIES
Full-time academic $ 24,225,823 $ 23,030,269
Co-ordinators' allowances 207,544 225,905
Other leaves 202,235 339,719
Professional leaves 95,673 198,145
Overtime - academic 245,400 317,529
Part-time academic 4,673,841 4,203,012
Partial load academic 513,960 1,020,509
Sessional teaching 1,323,031 1,372,610
Contract teaching services 378,073 633,153
31,865,580 31,340,851

OTHER SALARIES
Full-time administration 9,144,225 7,265,507
Full-time support 12,827,122 12,814,509
Other leaves 551,721 669,591
Overtime - support 115,068 114,810
Part-time support 1,299,727 1,421,555
Other support 206,556 396,052
24,144,419 22,682,024

EMPLOYEE BENEFITS 11,056,346 10,251,004

TOTAL OPERATING HUMAN RESOURCE

EXPENDITURE $ 67,066,345 $ 64,273,879

24
DURHAM COLLEGE OF APPLIED ARTS AND TECHNOLOGY
Consolidated Analysis of Operating Administrative
and Other Expenditure
Year ended March 31, 2010 SCHEDULE 2.3

2010 2009

Instructional supplies $ 1,860,587 $ 2,779,707

Memberships and dues 105,056 127,919
Professional development and recruitment 396,737 411,376
Travel and accommodation 425,926 540,091
Promotion/public relations 1,130,162 1,293,173
Maintenance - equipment 607,017 618,875
Telecommunications 291,045 335,334
Office supplies and other 1,845,658 2,492,757
IT hardware, software & maintenance 1,449,189 918,461
Maintenance - buildings and grounds 678,144 683,834
Insurance 520,074 280,606
Professional fees 415,850 634,386
Contract - security services 641,058 599,912
Contract - cleaning services 1,396,284 1,245,019
Contract - other services 2,209,060 2,229,642
Utilities 2,624,711 2,487,151
Refuse removal 170,929 178,839
Postage 131,157 261,090
Bank services and credit card charges 5,006,122 5,551,027
Derivative interest - 2,786,281
Rental and leasing charges 1,501,002 1,344,845
Bad debts 1,873,379 3,335,130
International 323,765 479,032
Student assistance program 2,919,696 2,756,357
TOTAL ADMINISTRATIVE AND OTHER
OPERATING EXPENDITURES $ 28,522,608 $ 34,370,844

FLOW THROUGH EXPENDITURE

Participants Wages, Training Allowances and Benefits $ 904,013 $ 773,935
Special Support Allowances 61,377 61,456
Municipal Taxes 636,513 517,433
Termination Gratuities 228,251 211,636
Health Insurance Fees - -
Reimbursable Expenditure 36,121 39,214
TOTAL FLOW THROUGH EXPENDITURE $ 1,866,275 $ 1,603,674

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