Notes to Financial Statements

Note 7: Contingencies

(in thousands of dollars)

A claim of $4,651 has been made against the College relating to construction delays and additional charges for the building construction. Management and legal counsel believe the claim has no merit. No amount has been provided in these financial statements in respect of these claims, as the likelihood of the outcome is not determinable at this time. If any losses are sustained upon the resolution of these claims, they will be accounted for in the period of settlement in the statement of operations.

The College is involved in claims that rise from time to time in the normal course of operations. Other than noted above, management is unaware of any matters that will have a material adverse effect on the financial position of the College or its results of operations. No amount has been provided in these financial statements in respect of these claims. Gains or losses, if any, sustained upon the ultimate resolution of these claims will be accounted for prospectively in the period of settlement in the statement of operations.

The College has provided a letter of credit in the amount of $500 (2010 - $500) to OMERS to be used if the College is in default of its obligation in connection with the payment of employer and employee contributions to the pension plan.