TELUSSPARKAnnualReport2011

2011 ANNUAL REPORTCalgary Science Centre &

Creative Kids Museum Society

A place to foster innovation. A place to grow.

ContentsMission and Values 3

Message from the President and CEO 4

Message from the Chairman of the Board 5

Building for the Future 6

Reflecting on 2011 8

� 2011 At a Glance 9

� A Major Transition 11

� Growing Support 13

� Building Green 13

� By the Numbers 15

Introducing New Programs 16

Impact From The Results 18

Opening a New Kind of Science Centre 20

Continuing the Journey 24

Delivering Results 26

A Special Thank You To: 28

� 2011 Annual Donors 30

� Board of Directors 30

� Major Capital Campaign Sponsors 30

� Capital Campaign Sponsors & Donors 31

Operational and Financial Highlights 33

2 TELUS Spark

collaboration

VALUes

com

mit

men

t

curiosity

courage

We believe that encouraging debate and dialogue, embracing diverse perspectives, and partnership with our communities result in better ideas and outcomes.

We are passionate about our mission and pursue it in everything we do.

We believe in innovative thinking and taking risks. We embrace change. The courage to fail gives us the confidence to succeed.

We are always wondering, always questioning, always seeking to learn.

“We live in a society exquisitely dependent on science and technology, in which hardly anyone knows anything about science and technology.”

- Carl Sagan

Mission

TELUS Spark is a role model and force for innovation and social change.

2011 Annual Report 3

President & CEO – Jennifer Martin

The Science Centre started 2011 off with a bang, and ended the year with a monumentally impressive explosion.

Titanic: The Artifact Exhibition, the third and final travelling exhibition at our 11th St. location, led us into a year that would be full of metamorphosis. This

internationally enjoyed exhibit brought more than 100,000 visitors to the centre between February and June, continuing to grow our adult audience. It was a perfect transition to bid farewell to the Science Centre that had served us so well for 44 years, while simultaneously preparing us for, and getting us motivated and focused on what was to come at our new location.

TELUS World of Science – Calgary closed its doors from June 27 through October 28 in preparation for our new opening at St. George’s Dr. N.E. That closure period was hard for some. Staff not only said goodbye to the past to embrace the future, it also marked a four-month period without our valued visitors and Members coming to the Science Centre.

When October 29 finally arrived and the birth of Calgary’s new cultural landmark and first new purpose-built science centre in Canada in over 25 years was upon us, we were fueled with excitement. After more than a decade of planning and development, TELUS Spark opened its doors to Calgarians, southern Albertans and the World.

It has been a year full of triumph, challenge and success. The 153,000 square-foot science centre is supported with a new approach, new name and five new interactive galleries that house more than 120 exhibits, all of which were developed using a crowd-sourced, piloting process.

Over 10,000 southern Albertans helped to develop more than 1,000 exhibit and program concepts, which were then whittled down to the ones you see at TELUS Spark today.

Over the next decade, TELUS Spark will help to make Calgary the innovation capital of Canada by fostering an appreciation, appetite and passion for the important areas of science, technology, engineering and math (STEM). Joined with a creative and artistic environment, we are building for the future of our community. Children come to explore the fundamentals of science, be curious, creative and to experiment and play. Teens arrive at the centre to expand their interests and awareness of science, technology and creativity at a crucial time in their education and career development. Adults clamour to unravel the complexities and issues of the day. This is a new kind of science centre.

Calgary has been built by people who tackled the challenge of a tough environment to create a city of wealth, energy and promise. Our new facility will play a key part in turning the next generation of youngsters onto science, technology and art to generate a skilled, innovative and entrepreneurial future work force, while fostering an informed, scientifically-literate citizenry.

This is just the beginning. We look forward to our future progress and we know that our impact is going to be felt for generations to come.

On behalf of the TELUS Spark team,

Jennifer MartinPresident & CEO TELUS Spark

4 TELUS Spark

CALgAry’s new CULtUrAL LAndMArk

Chairman of the Board – Martin Kratz

What an explosive and wonderful year to be the Board Chair of TELUS Spark.

This pivotal year marked not only the completion of the new Science Centre, but also the fruition of a dream. That dream was a decade long commitment to bring a world-leading science, technology

and innovation centre to Calgary.

As a direct result of the focus, dedication and unwavering commitment of those behind the project — including The City of Calgary, the Province of Alberta, the Government of Canada, and many corporate, individual and community donors, volunteers and sponsors — TELUS Spark is now a place that has repositioned the importance of skill development, particularly those skills that are needed to fuel innovation; curiosity, creativity, problem solving, risk-taking and collaboration. It is a new kind of Science Centre.

As a volunteer Board with the responsibility of delivering the new Science Centre 2011 Project, I am proud to report that the $160 million initiative was delivered on time and on budget, through good governance and unbridled passion. We are deeply indebted to the vast community support that we received. Beyond the bricks and mortar of construction, many community organizations ranging from the Children’s Hospital to the Calgary Board of Education (CBE) and Calgary Catholic School District (CCSD) to Market Collective have been key to our success.

We are extremely proud of the investment we have made in this community and would respectfully observe that TELUS Spark has led the largest and most effectively managed public sector, capital development project in this city in recent times — a platform for future cooperative development in the community.

This is not the same format of science centre that visitors around the world have frequented for the past 44 years. It is one driven by the demands of the 21st Century. One that fosters the skills we need for our community, our city and our country to succeed.

TELUS Spark is an iconic facility, a leader and a new model for science centres; a trailblazer with the ability and determination to reach a broader segment of Calgary’s population; and a facility that will serve Calgary and surrounding area for generations to come. We can’t wait to see where this world-class facility will take us in the future.

On behalf of the current Board,

Martin KratzChairman of the BoardTELUS Spark

Doors close at the iconic 11th

St. location June 27, 2011

Doors open at TELUS Spark

October 29, 2011

The first purpose-built Science Centre in Canada in over 25 years.


TELUS Spark, is not just an attraction;

it’s a cultural asset.

It is predicted that the labour shortage

in Alberta will climb to 332,000

workers by 2025*.

We must inspire and encourage the next generation of Albertans to become the world’s future technology game changers. That process begins with creating a spark of interest, fueling a passion and igniting a movement amongst the community to embrace curiosity.

6 TELUS Spark

BUiLding for the fUtUre


It is predicted that the labour shortage in Alberta will climb to 332,000 workers by 2025*. That includes a shortage in the science, technology, medical and engineering sectors. How do we, not only as a province, but also as a country, begin to tackle this problem? It’s about helping to build the 21st Century skills necessary for innovation: curiosity, creativity, problem solving, risk-taking and collaboration needed to further the province, the country and the world.

In the Organization for Economic Co-operation and Development (OECD)’s 2010 publication: “The OECD Innovation Strategy: Getting a Head Start on Tomorrow,” one of their key recommendations is that in order for a country to be innovative it must empower its people to innovate by:

“Foster[ing] an entrepreneurial culture by instilling the skills and attitudes needed for creative enterprise.”

As a role model and force for innovation and social change, TELUS Spark’s mission supports the vision of Calgary as the innovation capital of Canada.

By fostering an appreciation, appetite and passion for the areas of science, technology, engineering, arts and math, we know this goal can be reached. For this reason, TELUS Spark, is not just an attraction; it’s a cultural asset. We believe that celebrating innovative thinking and curiosity is the key to success, not only for the individual, but to help further the community as a whole.

One of the major levers for constructive change in improving the research and development areas lies with our youth. TELUS Spark’s programming and exhibits are designed to positively influence children’s innovation

and entrepreneurship skills as they go forward through life. We are building a pipeline of skills for the future workforce. However, we’re not just for youngsters. From toddlers to seniors, TELUS Spark is a place for all ages.

In an effort to attract more diverse audiences to the new Science Centre, the travelling exhibitions at the 11th St. location played an integral part of an 18-month strategy to build new teen and adult audiences. As 2012 drew near, we also began to create additional partnerships and collaborations with community members and important institutions such as:

� Epcor Centre for the Performing Arts

� Hotchkiss Brain Institute

� Libin Cardiovascular Institute of Alberta

� Market Collective

� TRUCK Contemporary Art group

This is a radical shift from the small, destination-based Science Centre of our past. Building on a history of community support over 44 years, we have created a Science Centre for the Calgary of today.

Through diverse programming, exhibits and a wide range of partnerships with community change-makers, from the University of Calgary to various arts groups, TELUS Spark will be an integral part of helping to tackle the widening skills gap, and contribute to the greater innovation agenda.

To begin to inspire and encourage the next generation of Albertans to become the world’s future technology game changers, we must start by creating a spark of interest, that fuels the passion and ignites a movement amongst the community to embrace curiosity.

*Conference Board of Canada (2010)

“If science was taught like this when I went through school, I probably would have paid closer attention to what I was supposed to have learned! Every person there was amazing and energetic in their own way.”

— Parent Volunteer

In four and a half months, from

February until the end of June 2011,

Titanic: The Artifact Exhibition welcomed over 100,000 visitors.

Over 120 new exhibits fabricated

and installed

By spring of 2011, we began to see the final stages of the building and content development take place.

8 TELUS Spark

refLeCting on 2011

nEW CULTUrAL ASSET opened, On TIME and On BUDgET

refLeCting on 2011Ushering in 2011 was Titanic: The Artifact Exhibition, the third and final travelling exhibition at the 11th St. location. This 18-month strategy to position unique museum-quality exhibitions never-before-seen in this market informed many operational decisions for the new kind of Science Centre we were opening in late October. In four and a half months, from February until the end of June 2011, Titanic: The Artifact Exhibition welcomed over 100,000 visitors, captured a school audience of over 10,000 students and developed pivotal community collaborations to deliver 10 new programs

for each of our unique audiences. The internationally enjoyed travelling exhibition allowed our organization to foster numerous tourism partnerships with hoteliers, Tourism Calgary and Travel Alberta. Through those joint advertising and promotional partnerships, we saw that 15 per cent of Titanic: The Artifact Exhibition visitors for 2011 came from outside of Calgary’s city limits. The stories of Titanic touched visitors of all ages, but had a particular resonance for seniors and school groups who were captured by the programs “Canadian Connections” and “Titanic Tales;” both tributes to the legendary passengers who sailed on the maiden voyage.


3 new SCIEnCE DEMOnSTrATIOnS,

4 new ATrIUM EvEnTS and

15 new DrOP-In WOrKSHOPS developed and

launched

FACILITy SALES launch and

63 EvEnTS ArE HOSTED In 63 DAyS

2 nEW PArTnErS brought on board to

elevate our rETAIL AnD

CAFé/CATErIng offerings

34 nEW SCHOOL PrOgrAMS

developed, piloted and launched

More than 10,000 Southern Albertans are EngAgED In

THE vETTIng AnD DEvELOPMEnT

process for the new Science

Centre content

Over 120 nEW ExHIBITS fabricated

and installed

Over 100 nEW DIgITAL SCrEEnS

and central show control systems

introduced

Over 78% OF COnSTrUCTIOn

WASTE was diverted from landfills

Over 50 nEW EMPLOyEES and

over 80 vOLUnTEErS

brought on board

Over 100,000 vISIT Titanic: The Artifact

Exhibition and nearly 70,000 vISIT the

new Science Centre in the first two

months of operation

Over 10,000 MEMBErS By THE

EnD OF 2011 (6,000 over target)

8,860 hours vOLUnTEErED

Over 250 people EMPLOyED

full-time on the construction site

2011 At A gLAnCe:

+78 per cent construction waste

diverted from landfills

+7,500 active social media fans

and followers

+11,000 email subscribers

TELUS Spark designed and built the new facility to achieve Leadership in Energy and Environmental Design (LEED) Gold Certification.

refLeCting on 2011

10 TELUS Spark


A MAjor trAnsitionThe closure of the 11th St. location was nostalgic, reverential and celebratory, as we bid a fond farewell to a 44 year-old establishment that served a community on so many different levels. In our final 18 months, we captivated a teen audience that made up 20 per cent of our overall attendance and a senior audience that reached nearly 11 per cent for all three travelling exhibitions. Both audiences were a mere blip on our attendance radar in the past. A success worth celebrating, as reaching these audiences was an important component to our strategy, and a signal that we were certainly heading in the right direction with the new Science Centre.

As we began to transition from the old to the new, a three-phase social media strategy was introduced to maintain interest and to broaden both our audiences and reach during the closure period. The approach introduced a ‘Do Try This at Home’ video mini-series, profiles on the Exhibit Development process and extensive anticipation-building project updates that ultimately led to over 7,500 active social media fans and followers and over 11,000 email subscribers by the end of 2011.

By spring of 2011, we began to see the final stages of the building and content development take place. Exhibit ideas and concepts were prototyped and piloted with over 10,000 members of the community. Exhibit Developers visited the Alberta Children’s Hospital, C-Train platforms, The Calgary Zoo, as well as various arts events such as Market Collective, around the city to test new ideas and concepts with the greater public. The result? Over 120 original, participatory exhibits, housed in five galleries (Being Human, Earth & Sky, Energy & Innovation, Open Studio and the Creative Kids Museum) throughout the new Science Centre.

By April 2011, the new HD Digital Dome Theatre was fully enclosed and by July, the final fabrication inspections on several galleries had been finished. As August approached, exhibit installations were underway as construction of the internal finishes were completed. As the year turned to fall, TELUS Spark was nearing the final stages of bringing Canada’s first new, purpose-built science centre in over 25 years to Alberta. Two hundred and fifty full time construction staff worked on what was to become TELUS Spark, the new Science Centre.

October 2011 marked the culmination of over a decade of planning, design, development and construction. An Awareness Study conducted in October indicated 86 per cent of Calgarians were aware of new Science Centre’s opening timing and that 67 per cent of Calgarians were likely to visit within the next 12 months.

The grand opening was upon us and on October 22, over 1,000 dedicated employees, supporters, partners, donors and special guests were officially welcomed to the new Science Centre for a VIP event that celebrated the unveiling of our new identity: TELUS Spark.

A strong identity launched in full force, with:

� A new website, mobile website and supporting eCommerce site launches, with 65,000 unique website visitors and 20,000 unique mobile visitors in the first two months of operation.

� In-kind contributions from media partners more than doubling the paid value of the advertising campaign.

� Public Relations that drove more than 60 media stories during October and November 2011.

We have strived to design an

infrastructure and company

culture that works toward reduction of consumption of resources and our

ecological footprint.

In 2011, volunteers contributed 8,860

hours of time to our organization

with over 80 active, regular volunteers

We continue to see numbers grow — a true demonstration of the support southern Albertans have for their new cultural institution.

refLeCting on 2011

12 TELUS Spark


BUiLding greenTELUS Spark designed and built the new facility to achieve Leadership in Energy and Environmental Design (LEED) Gold Certification. LEED is a nationally accepted organization for design, operation and construction of high-performance green buildings. In every element of our build and operations we have strived to design an infrastructure and company culture that works toward reduction of consumption of resources and our ecological footprint. Not only does this ensure an energy efficient, economically sustainable building model in current context, it means we are built to accommodate future renewable energy resources, such as solar panels. In 2012 we will pursue the final phase to becoming completely LEED Gold certified.

Here are just a few ways TELUS Spark is environmentally sustainable:

� during construction in 2011 CANA Management Ltd. recycled 78.28 per cent of the build waste

� advanced filtration systems capture and use storm water to flush our toilets

� lighting control systems are driven by occupancy sensors

� radiant heating panels are present in the floors and cooling panels are located in the ceilings

� solar shading and protection are provided through an exterior scrim

� an Energy Star roof is installed with the ability to add future solar panels

� ponds have been designed to contain stormwater runoff

� extensive recycled and natural materials have been used throughout the building

� the site provides easy access to Calgary’s bike paths and LRT system

growing sUpportIn just two months of operation in 2011, TELUS Spark, the new Science Centre, welcomed nearly 70,000 visitors through its doors.

We continue to see numbers grow — a true demonstration of the support southern Albertans have for their new cultural hub.

� Attendance: In just two months of operation in 2011, TELUS Spark, the new Science Centre welcomed nearly 70,000 visitors through its doors.

� Membership: TELUS Spark exceeded expectations in membership numbers. By December of 2011, we had more than doubled the expected number of memberships purchased. As of April 2012, the new Science Centre had over 18,800 paid annual Members.

� Volunteers: In 2011, Volunteers contributed 8,860 hours of time to our organization with over 80 active, regular volunteers.

� Donors and Sponsors: In 2011, 239 Capital Sponsors and 50 Annual Donors gave to our organization – 142 of these were first time gifts!

Adults 23,478

Seniors 1,591 Youth 2,073

Children 11,411

School Groups 8,585

Members 10,637

Group and Event bookings 9,756

GEN

ERA

L A

DM

ISSI

ON

TELUS SPArK ATTEnDAnCE (OCT 29 - DEC 31, 2011): 67,531

TiTAnic: ThE ArTifAcT ExhibiTion ATTEnDAnCE (FEB 4 - JUnE 27, 2011): 101, 838

GENERAL ADMISSION

$

Adults 56,875

Seniors 5,975

Youth 5,920

Children 17,134

School Groups 10,696

Group andEvent bookings

5,238

14 TELUS Spark

refLeCting on 2011

Marvin Romanow, Past President and CEO, Nexen

Andrea Goertz, Senior VP Strategic Initiatives, TELUS Communications Inc.

John Wright, President and CEO, Petrobank Energy & Resources

Kevin Stashin, VP Exploitation, Devon Canada

Bill McCaffrey, Chairman, President, CEO MEG Energy

Dr Daryll Harrison, VP Technology, Nova Chemicals Corporation

Peter Kinnear, Manager Public Affairs, Canadian Natural Resources Limited

Cathy Glover, Director Stakeholder Relations and Community Investment, Suncor

Karen Radford, Executive VP People & Partners, Enbridge Inc.

Scott Saxberg, President and CEO, Crescent Point Energy

In 2011 , 239 Capital Sponsors and 50 Annual Donors gave to our organization – 142 of these were f i rst time gifts!


Donations, $591,664

Grants, $1,952,782

Admissions, Memberships,

Programs and Other$4,676,996

2010 Total: $7,221,442

Donations, $554,539

Grants, $2,857,594


Programs and Other$3,169,018

2011 Total:* $6,581,151

operAting fUnding

AnnUAL progrAM sUpport:TOTAL: $254,477

new sCienCe Centre CApitAL CAMpAign:TOTAL: $160,000,000

1.6%

21.2% 75.0%

2.2%

9% 62% 29%

Individual Corporate Gov’t/Fdn Remaining

*closed to the public June 28 to October 28, 2011.

“The Petro Group of Companies have always prided themselves on being involved in innovatively advancing the technology that we apply in the oil and gas industry … the Science Centre provides the chance for an intergenerational transfer of knowledge and the fun of exploring and discovering new things about our world, which we hope will over the long term actually provide us with bright new minds and a new generation of forward thinkers to help build our organizations and help us grown on a global basis,” John Wright, President and CEO, Petrobank Energy & Resources.

“My wife and I are really excited to watch our daughter, Luna, grow up with the Science Centre, discover new things about the world and really get immersed into the world of science.”

By the nUMBers

In november/December 2011, TELUS Spark played

host to 7,112 school children as part of our inquiry-based

school programming

As of April 23, 2012, over 36,000 students have

already taken part in our school programming.

16 TELUS Spark

With 153,000 square feet of new space to play with, and an enthusiastic and energetic team of creative thinkers raring to get started, it wasn’t hard to begin redefining programming at Calgary’s new Science Centre.

introdUCing new progrAMs


With 153,000 square feet of new space to play with, and an enthusiastic and energetic team of creative thinkers raring to get started, it wasn’t hard to begin redefining programming at Calgary’s new Science Centre.

� Astronomy Night: The first Thursday night of the month visitors are invited to peer into the Alberta night sky and explore other worlds with help from TELUS Spark programmers and volunteers from the Royal Astronomical Society of Calgary (RASC).

� Adults Only Night: The second Thursday night of the month, we bring out a new topic and supporting programming geared at the 18+ audience, with music, a bar and unique community partnerships. As of May 2012 we have welcomed more than 3,700 adults to these events since their launch in December 2011. Adults are encouraged to explore and discover in a child-free environment.

� Solar Observing: Visitors are invited to peer at sunspots and solar storms safely throughout the year.

� Material of the Season: Geared towards children eight and under, this series of programs allows for creative exploration of a new material each season through daily drop-in workshops hosted in the Creative Kids Museum.

� Drop-In Workshops: Over 45 concepts were piloted and have resulted in 15 powerful Drop-In Workshops hosted regularly in the exhibit galleries that allow the Facilitation team to more deeply engage visitors in activities that foster the skills of innovation. The numbers of these Drop-In Workshops continue to grow.

� On Target Events: This unique series of events allows visitors to hone their targeting and collaboration skills through challenges ranging from human hovercrafts to cloud cannons.

� Science Café: Informal evening gatherings at a local pub (the Ironwood Stage & Grill) with a town-hall atmosphere, continue to allow TELUS Spark to successfully reach out into the community to explore chances to ignite debate and encourage conversation around current issues in science.

� School Programs: During November/December 2011, TELUS Spark played host to 7,112 students as part of our inquiry-based school programming. These programs, available for students across Calgary and neighbouring southern Albertan communities, serve children ages five through 18. The educational

programs serve not only an important role in helping teachers relay science and technology information relevant to Alberta’s school curriculum, but also in inspiring the next generation to pursue STEM areas. As of April 2012, over 36,722 students have taken part in our school programming.

An inquiry-bAsed leArning ApproAch:TELUS Spark’s programs and exhibits are platforms for multiple learning outcomes, rooted in authentic science and current technology. Within this framework, students and visitors explore their own questions and develop their own solutions. Through a participatory approach to collaborative activities you explore the processes of science and creativity, concentrating on developing skills, attitudes and behaviours that are integral to growth back in the classroom and in our community.

TELUS Spark is an instrumental investment to Calgary’s cultural

and economic landscape

Collaborations between the City, and other local groups in 2011 helped to

build a Science Centre that supports a sustainable

and vibrant community.

TELUS Spark is reforecasting revenue and growth on a quarterly basis; this allows us to develop operational and staffing plans that are sustainable and effective.

18 TELUS Spark

iMpACt froM the resULts

During the first two months of operation, the new Science Centre welcomed five times the number of visitors through its doors, compared to the same period in 2010 at the old location.

Armed with a bold new approach to exhibit and program development, a true measure of success is the time people stay engaged with a particular exhibit or activity. Where an average science centre kiosk engages visitors for about 20 seconds, exhibits at TELUS Spark are known to sustain visitor interest for up to 25 minutes or more at a time.

TELUS Spark is an instrumental investment to Calgary’s cultural and economic landscape. Collaborations between the City, and other local groups in 2011 helped to build a Science Centre that supports a sustainable and vibrant community.

The challenges that came with bringing the travelling exhibit, Titanic: The Artifact Exhibition, to the confines of our previous downtown location were significant, however bringing this offering to the City was an instrumental part of the closing strategy for TELUS World of Science – Calgary, and a way to transition into the brand new entity we have become. Staff, volunteers and supporters were challenged with the task of not only successfully facilitating a world-class exhibition, but also preparing and executing a massive move of house and change in direction to the new Science Centre. During the process of hosting Titanic: The Artifact Exhibition for a Calgary audience, we learned valuable lessons about what might drive our attendance numbers in years to come. While travelling exhibits had proven in 2011 to drive an audience base, they were not strong enough alone to hit the targeted number of visitors we planned to strive for in 2012. Temporary shows definitely need to be coupled with strong permanent exhibits and programming to solidly meet our attendance targets.

Navigating pivotal change is always an interesting process. It requires solid planning, agile team members and

steadfast support from the community. 2011 certainly had its share of challenges, however it reminded us just how important strong civic partnerships would be in our journey towards a new vision. From transportation challenges to signage replacement, financial council to development permits, we continue to be very grateful for the alliances we have fostered with all of the City departments. Through on-going collaboration we have been able to create a cultural institution that serves all Calgarians.

Fostering partnerships and collaborations with community members, organizations and institutions was paramount for us in 2011. In an effort to broaden our reach and gain valuable insights for ongoing program development we were privileged to work with organizations such as:

� The Alberta Children’s Hospital

� Calgary Board of Education

� Calgary Catholic School District

� The Royal Astronomical Society of Alberta

� The University of Calgary

Through these collaborations, TELUS Spark has taken steps to bridge the gap between programming that covers science, technology, arts and culture.

With the travelling exhibitions added to our portfolio, partnerships between TELUS Spark and the tourism industry in Alberta helped to bolster Calgary’s position as a true destination for those visiting Western Canada. Extending that credibility are events hosted at TELUS Spark throughout 2012, including TEDxYYC, the Canadian Water Summit and the Canadian Science Policy Conference.

From 2013, TELUS Spark will once again bring world-class, travelling exhibitions to Calgary. We will also play host to the Canadian Association of Science Centres (CASC) annual conference in June 2013, which attracts members of the Science Centre community from across Canada.


20 TELUS Spark

Young artists, engineers and adventurers have a special place here. Children eight and under will create interactive waterfalls, explore climbing structures and make their own masterpieces.

Become a DJ with raindrops, sculpt landscapes with erosion or cause an avalanche. You’ll notice more about the world around you with each step you take in this gallery.

Release your potential energy or sharpen your targeting skills. From Human Hockey Puck Hovercrafts to Cloud Cannons, the daily Atrium events are not to be missed!

Watch educational, inspiring HD movies or Live Planetarium Shows in this state-of-the-art structure.

Join our Facilitators for Live Science Demonstrations featuring extreme explorations of fire and temperature or the science of what’s going on inside of us.

Discover how your brain reacts to falling in love or how your fingertips react to stress. Learn more about the most fascinating people on earth – your friends, your family and yourself.

Balance an electrical grid, design and test a wind turbine or explore connections between potential and kinetic energy. Discover your inner innovator!

BEIng HUMAn

Be CUrioUs. Be BoLd.

CrEATIvE KIDS MUSEUM

OPEn STUDIO

EnErgy & InnOvATIOn PrESEnTATIOn THEATrE

ATrIUM DOME THEATrE

EArTH &SKy

From creating your own animations to building kinetic sculptures or painting with light, this space will stretch your creative muscles.

Problem:

12345

How do we build for the

FUTUREof our community?

3.8 million Canadians will be retiring in the next 5-10 years**.

Alberta’s labour shortage estimated

to reach 332,000 by 2025*.

It takes a core set of skillsto create something new:

Solution:

YOUTH ARETHE WORKFORCEOF OUR FUTURE.

Fosterinnovation

COME UP WITH A QUESTION

HARNESS YOUR CREATIVITY

PROBLEM SOLVE

TAKE A RISK

COLLABORATE

CHILDREN ARENATURAL SCIENTISTS

AND INNOVATORS.

Ignitecreativity

ADULTS FACECOMPLEX ISSUESAND CONSTANT

CHANGE.Create

conversation

Over 200,000 young minds willpass through these doors this year. Just imagine the possibilities…

Over 700,000*** adults live in Calgary. Imagine if we couldget everyone asking more questions… and finding new solutions.

SOURCES: *Conference Board of Canada (2010) **Human Resources and Social Development Canada (2006-2015) ***Calgary Economic Development (2011)

Create a place for all ages toGAIN inspiration, confidence

and opportunities to EXPLOREscience, technology and art:

TELUS Spark.

I keep hearing that less than 20% of the

degrees awarded in Canada are in science

and engineering and yet this is where the

jobs are…how do I know if that's the right

direction for me?

= BUILD THE CONFIDENCETO DO IT AGAIN

weLCoMe to A new kind of sCienCe Centre

TELUS Spark 2011 Annual Report 21

20 TELUS Spark 2011 Annual Report 23

Young artists, engineers and adventurers have a special place here. Children eight and under will create interactive waterfalls, explore climbing structures and make their own masterpieces.

Become a DJ with raindrops, sculpt landscapes with erosion or cause an avalanche. You’ll notice more about the world around you with each step you take in this gallery.

Release your potential energy or sharpen your targeting skills. From Human Hockey Puck Hovercrafts to Cloud Cannons, the daily Atrium events are not to be missed!

Watch educational, inspiring HD movies or Live Planetarium Shows in this state-of-the-art structure.

Join our Facilitators for Live Science Demonstrations featuring extreme explorations of fire and temperature or the science of what’s going on inside of us.

Discover how your brain reacts to falling in love or how your fingertips react to stress. Learn more about the most fascinating people on earth – your friends, your family and yourself.

Balance an electrical grid, design and test a wind turbine or explore connections between potential and kinetic energy. Discover your inner innovator!

BEING HUMAN

BE CURIOUS. BE BOLD.

CrEAtIvE KIds MUsEUM

OPEN stUdIO

ENErGY & INNOvAtION PrEsENtAtION tHEAtrE

AtrIUM dOME tHEAtrE

EArtH &sKY

From creating your own animations to building kinetic sculptures or painting with light, this space will stretch your creative muscles.


Janu

ary

Febr

uary

Mar

ch

April

May

June

July

Augu

st

Sept

embe

rBy end of December 2011, we had more than doubled our projected number of Membership sales – a demonstration of the support Southern Albertans have for their new cultural institution.

“We’re blown away. I’m enjoying it just as much as the kids are, and it’s incredible to have this volume of knowledge at your fingertips. I’d absolutely recommend a Membership.”

— Adult Member

■ January 1, 2011 – October 20, 2011: Program and exhibit pilot testing for the new Science Centre continues in full force.

■ February 4, 2011 – June 27, 2011: Titanic: The Artifact Exhibition draws +100,000 visitors, including +15,500 from out of town

TELUS SPARK TIMELINEInnovation is at the heart of who we are and what we do

Driven to DonateMark Herman and his wife Jan Herman are long-time supporters of Calgary’s Science Centre – Mark even worked at the science centre as a part-time employee in the ‘70s and ‘80s during high school and university.

In 2011 Mark was reignited by the potential of the new Science Centre, and generously donated $10,000 in Dome Theatre seat purchases.

“The old Science Centre had a reputation for doing a lot with a little. We scrapped our way through getting enough dollars to build a new exhibit or build a new gallery. We tried to accomplish a lot with very little resources. To see the scale of this new Science Centre, and the opportunities that can come about from it is amazing. There’s a new, incredible level here in terms of what the new Science Centre can bring to the community to get society interested in science, and what science can do for us.

“Science and technology is important to all of us. So, if we can get more people interested in being scientists and engineers – instead of bankers and lawyers – it will benefit us all.”

Janu

ary

Febr

uary

Mar

ch

April

May

Oct

ober

Nov

embe

r

Dec

embe

r

Empowering our visitors. Empowered by our team.

� Over 260 Capital Sponsors

� Over 64 Annual Donors, and counting

� Over 80 regular Volunteers contributing over 700 hours each month

� Over 120 dedicated employees and a volunteer Board of 15

� 2 specialized partners onboard supporting Retail and Café/Catering

“Given the right tools, even the young minds can create wonders and be able to showcase their ideas. It is a great facility that will definitely help develop young people’s minds. “

— Grade Four Parent Volunteer ■ November 2011 – March 2012: Access Program review underway with over 35 prominent social service agencies and the City of Calgary

October ■ October 1, 2011: Google Adwords Grant

activated, providing up to $10,000 USD per month in online advertising reach

■ October 1 – 22, 2011: Installation of over 100 digital signs complete, including a central management, scheduling and distribution system to manage the content

■ October 1 – 31, 2011: Networks, servers and projection systems installation and final testing is complete and transition to the new Science Centre is well underway

■ October 20, 2011: Employees along with our new retail partner, Event Network, and Café & Catering partner, Compass Canada, are officially welcomed to the new location

January ■ January 20, 2011: Titanic: The Artifact Exhibition begins installation

February ■ February 25, 2011: Premier Ed Stelmach and the

Honourable Lindsay Blackett, Minister of Culture and Community Spirit tour the new Science Centre construction site for the first time since ground-breaking in 2009.

March ■ March 2011: Invitations for proposals extended to artists

internationally for a feature art installation at the new Science Centre: Art as Energy – Energy as Art. More than 65 submissions are received.

■ March 30, 2011: The exterior of the HD Digital Dome Theatre is finished

April ■ April 14, 2011: TELUS World of Science – Calgary

marks the 99th Anniversary of the sinking of Titanic with a special evening of events.

■ April 14, 2011: A transformational community partnership announced during National Volunteer Week: The Enbridge Volunteers in Partnership Program

July ■ July 2011: Art as Energy – Energy as Art winning artist, Ben Trautman, is

awarded the $180,000 contract with installation planned for 2012

■ July 14, 2011: A unique partnership is announced with Fluor to create a renowned position for a Champion of Engineering at the new Science Centre

■ July 25, 2011: New Facility Rental Program Launches

■ July 25, 2011: Charter Membership Program and Online Giving eCommerce site Launches

■ July 2011: Final fabrication inspections of both the Being Human Gallery and Open Studio Gallery take place

May ■ May 26, 2011: Over $151 Million of the $160 Million

Capital Campaign has been raised, with over $30 Million from corporate and individual donors.

■ May 26, 2011: Data Centre preparation and installation begins at the new Science Centre

■ May 30, 2011: Trees are planted at the new location

■ May 31, 2011: New 2011/12 School Programs for the new Science Centre launch

June ■ June 3, 2011: New Membership Program and Supporting eCommerce Site Launches

■ June 6 – 16: LED Light Testing takes place at the new Science Centre

■ June 14, 2011: Scrim Panels installed on the outside of the building

■ June 22, 2011: Opening date of the new Science Centre is announced

■ June 23, 2011: Social media and video content strategy launches to engage Southern Albertans through the closure period

■ June 2011: CANA celebrates over 700 days with no lost time, and is recognized as one of the top sites in Alberta for their safety record

■ June 27, 2011: The iconic 11th St. location permanently closes its doors, and with it, the highly acclaimed Titanic: The Artifact Exhibition concludes it’s stay in Calgary

August ■ August – October, 2011: New exhibit installation

underway at the new Science Centre

■ August 18 – 20, 2011: First ever Job Fair hosted, leading to new paid and new volunteer positions at the new Science Centre

september ■ September 18, 2011: 2nd Annual

Deliciously Sweet Run Fundraiser, in partnership with Urban Venus

■ September 23, 2011: Presentation Theatre seats are fully installed at the new Science Centre

■ September 23, 2011: A test audience from Nova Chemicals are invited to the Presentation Theatre to take in prototypes of our soon-to-be Live Science Demonstrations

■ September 27, 2011: The 2011/12 season of Science Café’s kicks off with a discussion on Carbon Capture

November ■ November 1, 2011: First students take part in the new School Programs

■ November 2011: Gift Card Program Launches and a mobile application to control exhibits is developed

■ November 3, 2011: First Monthly Astronomy Night Hosted

■ November 19, 2011: Surplus operating equipment and materials auctioned from the 11th St. location

december ■ December 8, 2011: First Monthly Adults Only Night Hosted

■ December 23, 2011: TELUS Spark 63 events in 63 days

January ■ January 11, 2012: New Birthday Party Program Launches

■ January 2012: Exhibit Developers invited to speak at the New York Hall of Science on TELUS Spark’s unique pilot testing and prototyping approach

■ January 9, 2012: 16th year of our involvement in Chevron’s Open Minds School Program begins

February ■ February 2, 2012: Visitor Creations site launches, allowing visitors

to share their animations with the world

■ February 27, 2012: First Homeschool Day takes place

March ■ March 2, 2012: New online science store launches, in

partnership with Event Network

■ March 26 – March 30, 2012: Over 140 youth take part in Spring Camps and new Summer Camp Program launches

May ■ May 2012: TELUS Spark website wins three

awards at the 18th Annual Communicator Awards

■ May 12, 2012: First Sleepover Program hosted

■ May 26, 2012: HD Digital Dome Theatre opens

And we’re just getting started.In 2011, we built strong momentum.

As we head passionately into 2012 we are on track to achieve our vision.

2012:BUILDINg TOwARDS A POwERfUL fUTURE

October 22, 2011: A special VIP welcome to the new Science Centre for our dedicated partners, donors, supporters and employees unveils a new identity: TELUS Spark

October 29, 2011: TELUS Spark opens its doors on time and on budget, with the three levels of government and over 15 media partners present to mark the occasion

Over the next year TELUS Spark has plans to excel in all areas of operations, from strengthening our organizat ional cu l ture to improving upon d ig i ta l technology and evolving our content and programing.

ContinUing the joUrney



deLiVering resULtsIn 2012, TELUS Spark’s overarching operating priorities and plans will include:

� Delivering state-of-the art experiences and events

� Improving upon revenue streams and developing a wealth of innovative partnerships

� Building a reserve fund to provide support to operations

� Tightly monitoring attendance trends and associated revenues

� Firmly monitoring expenditures

� Initiating market research to assess opportunities for growth, and potential areas of weakness

Over the next year, TELUS Spark has plans to excel in all areas of operations, from strengthening our organizational culture to improving upon digital technology and evolving our content and programing. We will continue to make pilot testing new exhibits, programs ideas and activities a priority. Our goals are to not only understand and manage resources required to operate in the new model, but also to identify audience interests that could be served through new or existing programs. General targets include: growing our school programs visitation, and changing 25 per cent of each exhibit gallery in the first year.

2012 will be a time when we leverage relationships with major sponsors and Canadian media to help proliferate our brand and vision. Staying visible and being good ambassadors in the community is paramount to this mission.

Our goal is to work hard to steadily increase membership and attendance numbers while making sure to appeal to the southern Alberta community, as well as attract travelers from around the globe.

As a not-for-profit resource, we appreciate how important the extension of access is. We have been undergoing a

deep review of our historic Access Program to ensure that what we offer in the future meets the changing needs of our current community landscape. We have recently concluded a multi-stage series of discussions with over 35 prominent social service agencies, and we will shortly conclude the review of our findings. TELUS Spark will be launching the pilot phase of an updated Access Program in the fall of 2012.

While we transition out of the significant Capital Campaign, the Fund Development office will be focused on building new connections in Calgary and its surrounding area, while building a strong base of support among Calgarians as both annual donors and volunteers.

The annual planning cycle will drive funding by appealing to donors through a variety of messages, focusing on corporate donations while also researching and testing strategies to target other important segments such as Members.

In many not-for-profit organizations, volunteers play an important role to support day to day activities. At TELUS Spark, volunteers are an integral part of many facets of our operation. From Board Members to fundraising, event support to IT, volunteers are necessary to help us achieve the results that are paramount to our success. In 2011, volunteers contributed 8,860 hours of time to the Science Centre. At present, we continue to work with 80 active regular volunteers. By the end of 2012, this resource pool is expected to grow to well over 200 active, regular volunteers and the volunteer hours contributed to our organization are expected to exceed 9,000. With Enbridge as a valuable corporate partner, our new Volunteer in Partnership Program is taking a fresh approach to meaningful volunteer positions within our organization. From engineers to meteorologists, event planners to chartered accountants, our roster is bursting at the seams with talented and passionate citizens all looking to make a difference. Whether directly or indirectly in line with their current career path, every volunteer it matched up with roles that are mutually beneficial. The end result: longer-term retention and attraction of invaluable community resources.

Staff and Contractors64%

Utilities and Maintenance

11%

Exhibits and Programs

8%

Operating Expenses

17%

projeCted 2012 eXpenses

Civic Grant 17%

Donations 12%


Programs60%

Food Service

and Facility Rentals

7%

Other Income

4% projeCted 2012 reVenUe

TELUS Spark is starting to tweak the interest of the world’s broader science community.

26 TELUS Spark

ContinUing to deLiVer resULts


By the end of 2012, it is anticipated that TELUS Spark will welcome over 70,000 students, 400,000 visitors and close to 30,000 new Members. As a valuable community asset and attraction, we have a powerful impact to be delivering, and our efforts have not gone unnoticed. TELUS Spark is starting to tweak the interest of the world’s broader science centre community. Because of the groundwork laid in 2011, Exhibit Developers Dana Schloss and Katherine Ziff were invited to speak about TELUS Spark’s exhibit development process at the New York Hall of Science. Erik Jacquemyn, CEO of Technopolis, the Flemish Science Centre in Belgium, was so intrigued by TELUS Spark’s programming concept that he paid the centre a visit in its opening days. Jacquemyn has since invited CEO & President Jennifer Martin and VP of Content Julie Bowen, to speak at the ECSITE Conference in France.

As of May 26, 2012, Calgary’s new Science Centre will celebrate the opening of the new HD Digital Dome Theatre. With 245 seats, this state-of-the-art theatre, equipped with the Digistar 4 projection system will have the ability to show high-definition movies (2D and 3D), live planetarium shows and more.

In late 2012, we will usher in a new Digital Media Studio. This unique educational space at the heart of the HD Digital Dome Theatre will be equipped with the latest

digital visualization and production technology – giving our visitors physical and digital tools to discover creativity and build their own experiences.

Pilot testing with our community and new program additions will continue at full speed, with High School Science Cafes and Summer Camps coming up on the immediate horizon and new public programs to engage young families and the tween/teen audiences continuing to roll out throughout 2012.

TELUS Spark’s new HD Digital Dome Theatre is a state-of-the-art space fuelled by Digistar 4 software with a highly comprehensive set of astronomical data from scientists and planetariums worldwide, including the American Museum of Natural History (AMNH) and NASA.

2011 CAPITAL CAMPAIgn ACCOMPLISHMEnTS

Earth & Sky gallery MEg Energy Corp.

Feature gallery Canadian natural resources Ltd.

Dome Theatre Lobby Progress Energy resources Corp.

Main Lobby ConocoPhillips Canada

Learning Centre Studios FirstEnergy Capital Corp.

Encana Corporation Scott Saxberg Husky Energy

Boardroom Harley L. Winger

Water Fountains The Sousa Family

Without the support of the community, municipal, provincial and federal government, as well as various individuals, corporations and other partners, TELUS Spark, the new Science Centre, would not have been possible.

28 TELUS Spark

thAnk yoU


Without the support of the community, municipal, provincial and federal governments, as well as various individuals, corporations and other partners, TELUS Spark, the new Science Centre, would not have been possible.

From those who helped us build from the ground up — Dialog, Stantec, CANA Construction, and SMP Consulting Electrical Engineers — the architects, engineers, construction crews and management teams that made the dream possible; to the more than 120 staff members who help keep the new Science Centre progressing, evolving and succeeding every single day, we have been privileged to collaborate with some of the very best.

The more than 18,800 Members that have pledged their support to TELUS Spark since our 2011 opening are a testament to the Calgary community, a population that truly recognizes the value in building 21st Century skills in our youth.

The 80 active volunteers that support us help to keep TELUS Spark’s daily operations flowing smoothly. We are honoured to have volunteers that offer not only their time, but their passion and expertise in the areas of science, technology and the arts. Since opening, through partnerships with local groups, such as the Enbridge Volunteers in Partnership Program and Youth Central, volunteers have contributed more than 5000 hours of service.

Our 15 volunteer Board Members and our Capital Campaign committee members have given us numerous tools to support our success. They have helped to elevate our reach in the community, as well as strengthen our leadership and financial base. They

have broadened our influence and helped to set a strong vision for the future, while giving us the backing we require to execute construction, programming, staffing and daily operations.

We are grateful to our dedicated sponsors, donors and partners who have extended their support beyond the monetary. Calgary is truly a community that champions an appreciation for innovation and a passion for the importance of areas such as STEM. We are a city built on promise and TELUS Spark will play a key part in inspiring an innovative and entrepreneurial future work force as well as foster an informed scientifically-literate citizenry. We know there is much work to do, but we embrace the opportunity and know that our journey will be that much more successful based on the support that the community has extended thus far. The impact of the depth of support that we receive will be felt for generations to come.

“I have a love of Science and Astronomy that I want to share with other interested people. I want to do something positive for the community and encourage people, young and old to always look up in the sky and ask why and how?”

— Joseph, Astronomy Volunteer

30 TELUS Spark

A big thank you to our generous supporters, sponsors and donors!

We cannot do what we do without you.

2011 AnnUAL donors COrPOrATIOnS, FOUnDATIOnS & gOvErnMEnT

AJM Petroleum Consultants

Alberta Culture & Community Spirit

APEGA - The Association of Professional Engineers and Geoscientists of Alberta

Calgary Board of Education

Cenovus Employee Foundation

Chevron Canada Resources

Odgers Berndtson

One Design Inc.

Patrick Airlie School

RBC Foundation

Spectra Energy

Stantec

TELUS

The W. Garfield Weston Foundation

InDIvIDUALS

All Anonymous DonorsCameron Bailey & Gelaine PearmanKari L. BrawnDylan, Kate & Nolan BurtonRyan CarnahanV. Richard GreenJacqueline, Todd, Mia & Tre HarkiesMatthew HeffernanJan & Mark HermanJeff & Susan HesselThe Hrycay FamilyThe Hurley FamilyImambaksh FamilyThe Klimuk FamilyThe Kothawala & Prazma FamilyThe McLean FamilyRyder McRitchieRoland & Heather Mueller & FamilyEthel NakanoBill OliverCameron PlewesJohn & Anita RossallShamini & Abe SamuelKim SturgessThe Waller FamilyDr. Donna Wood & Family

BoArd of direCtorsMartin Kratz - Chair

Brent Poohkay- Vice-Chair

Karen Prentice - Corporate Secretary

Lloyd Godfrey - Treasurer

Brent Allison

Cam Bailey

Mary Fong

Rodney D. Gray

Linda Heathcott

Don Kjosness - Past Chair

Michael Koury

Michelle McKenna

Jim Provias

Gayla Rogers

Rod Sousa

MAjor CApitAL CAMpAign sponsorsTELUS

Canadian Natural Resources Limited

Crescent Point Energy Corp.

Devon Canada Corporation

Enbridge Inc.

MEG Energy

Nexen Inc.

NOVA Chemicals Corporation

PetroBakken Energy Ltd.

Petrobank Energy and Resources Ltd.

Petrominerales Ltd.

Suncor Energy Foundation

thAnk yoU


CApitAL CAMpAign donors & sponsors Alba Apuzzo & Lazzaro Mautone

Kristal Allen

Brent & Laura Allison

Alloy Dining Ltd.

Emil Altier

APEGA - The Association of Professional Engineers and Geoscientists of Alberta

ARC Resources Ltd.

Grant Arnold

Gabriela Ascencio de Myers

Association of Fundraising Professionals Calgary & Area

Robert & Ellen Austin

Cameron Bailey & Gelaine Pearman

Tony Balasubramanian

Bennett Jones LLP

Nicole Bonsall

The Boyd Family

Julie Bowen & Ian Brunskill

Gloria Brehm

Karen Brimacombe

Catherine & Allan Brown

Ian D. Bruce

W. L. Buchanan Family

Megan Bufton

Poissant - Burroughs Family

Burstall Winger LLP

Roseann Caldwell

Calgary Herald

Candice Campbell-Behm

Care Factor Computer Services

Joan & David Carson

Steve & Michelle Caswell

Dennis & Grace Cheng

Chevron Canada Resources

Chinook Energy Inc.

Bill & Diane Chomik

Donald & Barbara Christensen

Cisco Systems Canada Inc.

Paul & Bernice Clark

Eric & Gayle Clavelle

Christine Colbert

Alan R. Collyer

ConocoPhillips Canada

David & Donalda Cormier

Dr. Marlee & John Cossar Family

Country 105, Q107, QR77

Barry Crean & Joanne Ho

Lisa Crosby

Robert & Loren Currie

Darcy & Kary Cuthill

In loving memory of Jenub & Joosub Da Da

Daylight Energy Limited

Walt & Irene DeBoni

Deloitte & Touche Foundation Canada

Jason Demers & June Fong

Devon Canada Corporation

DIALOG

Megan Douglas

Art & Bonnie Dumont

Edamame Kids Inc.

Enbridge Inc.

Encana

ESRI Canada

Renee Fagnou

Ken & Jillian Faulkner

FirstEnergy Capital Corp.

Helen C. Fitzpatrick

The Fitzpatrick Family

Fluor

Mary & Chris Fong

Gord Franson

Friends of the Science Centre

Art & Shirley Froehlich

Brian & Lori Fyke

Gibson Energy

Caroline Gill

Global Calgary

GlobeScan Incorporated

GMP Securities LP

Lloyd H. Godfrey

Lidia Gonzalez

Thomas Gosse

Elizabeth Gourlie

Rodney D. Gray

Jacob & Reed Grelowski

Karen Radford & Jason Grelowski

Barbara Hale

Mel Hamilton

Dr. Francis Hartman

Dick & Lois Haskayne Fund at the Calgary Foundation

Jennifer Martin & Linda Heimlich

Don & Maureen Henderson

Nancy & John Henderson

Jan & Mark Herman

Tina Ho-Chung-Qui

Christine Hohendorf

Kathy Holland

Leonore J. Hunt

Spencer Hunt

The Hurley Family

Husky Energy

IBM

Imperial Group

Imperial Oil Foundation

The Jackson Family

George Jacob

Jobe Family

JuneWarren-Nickle’s Energy Group

The Kahanoff Foundation

Ron, Kim, Kris & Kyler Kelly

Duncan & Judy Kent

Michael & Debra Kerr

Doug & Hayley Kirker

Dr. Don Kjosness

Debra Klippenstein

Danielle Kondla

Michael & Jennifer Koury

Martin & Christina Kratz

Philip & Lyndsey Krepela

John & Laura Krill

D, J, S Lake

Dr. Cooper Langford

Natalie & Jeff Lawson

Cindy LaValley & Carter Bond

Tanya Leavy

Michelle Lennox

Cynthia Loria

Stephen & Mary Lougheed

Carmen, Micheal Ly and Family

Geoff & Susan Mackey

Beverly MacLeod Family Fund at The Calgary Foundation

Bruce & Susan Madu

Jennifer & Steve Major

Christine A. Manion

Lisa Martens

Robin Masciangelo

M. Ann McCaig

CApitAL CAMpAign donors & sponsors (ContinUed)

McDaniel & Associates Consultants Ltd.

McKinsey & Company

Iris Meck

Melcor Developments

Danielle Meyers

Shawn Mesiatowsky

Michelle & Toby McKenna

Microsoft

Janice Miller

N. Deo Mishra

Bill Mooney

Peter & Lorraine Moore & Family

Mosaic Studios

N-Force Crane & Equipment Ltd.

Godfrey & Diane Nowlan

One Design Inc.

Julia Pasieka & William Pasieka

PATTISON Outdoor Advertising

In Memory of Edward James Peacock

Penn West Exploration

Peters & Co.

Alison Pidskalny & Douglas Robertson

Cameron Plewes

Michelle Podavin

Brent & Christine Poohkay

Christopher Potter

Karen & Jim Prentice

Progress Energy Resources Corp.

Bruce & Sylvia Pultz

RGO Office Products

Beth Riley

Dr. Gayla Rogers & Brian Rogers QC

Judith M. Romanchuk

The Russell Family

Wendie Ryder

D. S. Samcoe

Dr. Kyo Sato

The Saxberg Family

Al & Gisele Schreiner

Benjamin Shaw & Tittary Stones

Sheila M. Shaw

Dr. WA Sam & Claudia Shaw

Bill & Carol Smith

Karen & Ryan Shay

Scott R. Smith

Sousa Family

Spectrum Marketing Canada Corporation

Marc J. Stachiw & Family

Stantec

Ashley Stappler

S.i. Systems

Greg Stein

Hugh & Rhonda Stowell

Lionel Strasky

Brad Struble & Cheri Sydor

Lynn Sutherland, Brett & Barry Martin

Synergy Land Services

The TAO Foundation

TD Bank Group

TeamThink Inc.

Darrel Thiessen

David & Lia Thompson

Marg Thorson

TransCanada Corporation

Tara Tripp

Cary Turner

Georgine Ulmer & Glen Moyer

Urban Venus Nail Bar

Kathryn Vincent & Simon Bent

Linda & Gord Vogt

Blair Ward

Barry & Corinne Wasyliw

Philip Welch

Gordon & Helen Wells

Werklund Foundation

for Mike West

White Oak Associates Inc.

Mary-Jane Whittaker

Robert Willcox

Carolyn Wilton

Harley L. Winger

YMCA-Calgary

The Ralph & Gay Young Family Fund

1287827 Alberta Inc.

32 TELUS Spark


independent AUditor’s reportindependent AUditor’s reportDECEMBEr 31, 2011

To the Members of Calgary Science Centre & Creative Kids Museum Society

We have audited the accompanying financial statements of Calgary Science Centre & Creative Kids Museum Society, which comprise the statement of financial position as at December 31, 2011, and the statements of operations, changes in fund balances and cash flows for the year then ended, and a summary of significant accounting policies and other explanatory information.

Management’s Responsibility for the Financial StatementsManagement is responsible for the preparation and fair presentation of these financial statements in accordance with Canadian generally accepted accounting principles, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditor’s ResponsibilityOur 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 comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the 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 financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

OpinionIn our opinion, the financial statements present fairly, in all material respects, the financial position of Calgary Science Centre & Creative Kids Museum Society as at December 31, 2011, the results of its operations, changes in fund balances and its cash flows for the year then ended in accordance with Canadian generally accepted accounting principles.

Other matterThe financial statements of Calgary Science Centre & Creative Kids Museum Society as at December 31, 2010 and for the year then ended were audited by another firm of chartered accountants who provided an unmodified independent auditor’s report dated April 20, 2011.

Chartered Accountants

May 10, 2012

Deloitte & Touche LLP700 Bankers Court850 Second Street S.W.Calgary AB T2P 0R8CanadaTel: (403) 267-1700Fax: (403) 264-2871www.deloitte.ca

operAtionAL And finAnCiAL highLights

34 TELUS Spark

statement of operations yEAr EnDED DECEMBEr 31, 2011 CALgAry SCIEnCE CEnTrE & CrEATIvE KIDS MUSEUM SOCIETy(OPErATIng AS TELUS SPArK)

Capital Fund New Science

Centre Operating

Fund 2011 Total 2010 Total

$ $ $ $ $ Revenue

Donations 2,395 4,221,875 554,539 4,778,809 3,102,834 Grants (Note 13) 515,198 - 2,857,594 3,372,792 3,045,763 Admissions - - 1,996,947 1,996,947 2,691,022 Facility rentals - - 373,008 373,008 33,607 Parking - - 213,875 213,875 202,796 School programs - - 201,870 201,870 282,199 Retail - - 122,952 122,952 3,720 Food services - - 120,576 120,576 334,021 Memberships - - 98,085 98,085 160,919 Other income 3 34,624 25,324 59,951 101,235 Paid programs - - 16,381 16,381 108,606

517,596 4,256,499 6,581,151 11,355,246 10,066,722 Expenses

Compensation (Note 16) - 2,254,521 2,392,324 4,646,845 4,656,698 Professional fees and contract services 4,994 1,449,261 312,300 1,766,555 1,505,129 Amortization 425,460 - 1,133,079 1,558,539 931,563 Exhibit and film costs 61 - 650,145 650,206 1,041,164 Advertising - 193,435 401,812 595,247 498,670 Administration 368 295,147 209,713 505,228 280,333 Utilities and maintenance 86,713 21,985 386,295 494,993 439,462 Computer and telecommunications - 30,056 398,974 429,030 270,314 Facility rentals - - 240,391 240,391 -Hosting - 10,298 87,580 97,878 89,054 Food services - - 67,243 67,243 185,407 Program costs - 1,796 45,396 47,192 159,620 Retail - - 19,307 19,307 4,077 (Gain) loss on disposition of property and equipment - - (35,246) (35,246) 14,060

517,596 4,256,499 6,309,313 11,083,408 10,075,551 Excess (deficiency) of revenue over expenses

- - 271,838 271,838 (8,829)

statement of Changes in fund BalancesyEAr EnDED DECEMBEr 31, 2011

Capital Fund New Science

Centre Operating

Fund 2011 Total 2010 Total

$ $ $ $ $ Fund balances, beginning of year - - 126,969 126,969 135,798 Excess (deficiency) of revenue over expenses - - 271,838 271,838 (8,829)Fund balances,end of year - - 398,807 398,807 126,969


2011 2010 $ $

AssetsCurrent assets

Cash 9,857 8,860 Restricted cash (Note 4) 10,219,348 12,717,952 Marketable securities - 55,571 Accounts receivable 7,435,349 9,889,371 Current portion of contributions receivable (Note 6) 6,817,527 - Goods and services tax recoverable 526,901 1,993,760 Prepaid expenses 111,949 410,659 Inventory - 5,335

25,120,931 25,081,508

Long-term assets under construction (Note 5) 7,293,231 64,997,943 Long-term contributions receivable (Note 6) 11,143,426 - Property and equipment (Note 7) 111,142,225 444,210 154,699,813 90,523,661 LiabilitiesCurrent liabilities

Accounts payable and accrued liabilities 11,106,855 11,602,531 Deferred revenue 1,063,228 154,578 Current portion of long-term debt (Note 11) 3,243,334 -

15,413,417 11,757,109

Deferred contributions related to property and equipment (Note 9) 130,873,839 78,579,715 Deferred contributions related to operations (Note 10) 317,747 59,868 Long-term debt (Note 11) 7,696,003 -

154,301,006 90,396,692

Commitments (Note 14)

Fund balancesInternally restricted (Note 12) 398,807 126,969

154,699,813 90,523,661

Approved on behalf of the Board

Lloyd Godfrey, Board Treasurer Martin Kratz, Board Chair

statement of financial position yEAr EnDED DECEMBEr 31, 2011 CALgAry SCIEnCE CEnTrE & CrEATIvE KIDS MUSEUM SOCIETy(OPErATIng AS TELUS SPArK)

36 TELUS Spark

2011 2010 $ $

Operating activitiesExcess (deficiency) of revenue over expenses 271,838 (8,829)Non-cash transactions

Amortization 1,558,539 931,563 Amortization of deferred contributions related to property

and equipment (Note 9) (1,558,539) (931,563)(Gain) loss on disposition of property and equipment (35,246) 14,060

Change in non-cash working capitalAccounts receivable (408,645) 14,266 Goods and services tax recoverable (32,887) 13,838 Prepaid expenses 213,729 (197,367)Inventory 5,335 2,550 Accounts payable and accrued liabilities 434,299 233,714 Deferred revenue 908,650 (135,273)Deferred contributions related to operations 257,879 (126,315)

1,614,952 (189,356)

Investing activitiesPurchase of property and equipment (53,897,089) (40,126,369)Proceeds on disposal of property and equipment 35,246 - Decrease (increase) in marketable securities 11,059 (11,059)

(53,850,784) (40,137,428)

Financing activityDeferred contributions received for property and equipment 56,759,841 39,777,227 Long-term debt proceeds received 10,939,337 - Deferred contributions receivable for property and equipment (17,960,953) -

49,738,225 39,777,227

Decrease in cash (2,497,607) (549,557)Cash, beginning of year 12,726,812 13,276,369 Cash, end of year 10,229,205 12,726,812

Cash consists of:

Cash 9,857 8,860 Internally restricted cash 398,807 126,969 Externally Restricted cash 9,820,541 12,590,983

10,229,205 12,726,812

statement of Cash flows yEAr EnDED DECEMBEr 31, 2011 CALgAry SCIEnCE CEnTrE & CrEATIvE KIDS MUSEUM SOCIETy(OPErATIng AS TELUS SPArK)


notes to the financial statements yEAr EnDED DECEMBEr 31, 2011 CALgAry SCIEnCE CEnTrE & CrEATIvE KIDS MUSEUM SOCIETy(OPErATIng AS TELUS SPArK)

1. Purpose of the organizationThe Calgary Science Centre & Creative Kids Museum Society (the “Society”), operating as TELUS Spark, is incorporated under the Societies Act of Alberta. The Society is committed to helping people of all ages including families and students understand the importance of the arts, science and technology in their lives by providing fun-filled learning experiences. The Society is a registered charity and, is therefore exempt from the payment of income tax under section 149(1) of the Income Tax Act.

2. Basis of accountingIn accordance with Canadian generally accepted accounting principles (“GAAP”), the financial statements have been prepared using the going concern assumption, which assumes that the Society will be able to realize its assets and discharge its liabilities in the normal course of operations. The Society’s ability to continue as a going concern is dependent upon its ability to generate additional funding for the new Science Centre project sufficient to meet future obligations as described below and in Note 14, and to maintain financing sufficient to manage the anticipated timing differences between the incurrence of project costs and the receipt of committed funding, and receiving sufficient donations, grants and general admissions to fund all operating costs. Current operations for 2011 and 2010 have been in a transitional phase and as a consequence have received certain transitional funding from the new Science Centre project. These costs were anticipated in the approved project budget.

The Canadian Institute of Chartered Accountants (“CICA”) has issued a new accounting framework applicable to Canadian not-for-profit organizations. Effective for the annual reporting period that commences on or after January 1, 2012, not-for-profit organizations will have to choose between International Financial Reporting Standards (“IFRS”) and Canadian accounting standards for not-for-profit organizations, whichever accounting framework suits them best. Early adoption of these standards is permitted. The Society currently plans to adopt the new Canadian accounting standards for not-for-profit organizations for its fiscal year beginning January 1, 2012 and has not yet determined the impact of adoption.

The Society had substantially completed the construction of the new Science Centre on October 29, 2011 and started the new operations on that date. Effective January 1, 2012, the City of Calgary assumed all the benefits and obligations of the old science centre. The project costs, including construction costs and related expenses, are expected to total approximately $160 million. The Society has secured commitments for support from the City of Calgary, the Government of Alberta, and the Government of Canada in the amounts of $40 million each. Of the remaining project costs that the Society must obtain, approximately $35.7 million has been received or pledged from private sources to December 31, 2011, so the Society must obtain an additional amount of approximately $4.3 million from private or other sources. Capitalized expenditures to date are disclosed in Notes 5 and 7, and the current year’s non-capitalized expenditures are reported in the statement of operations as part of the new Science Centre operations.

A substantial portion of the restricted cash, accounts receivable, contributions receivable and accounts payable and accrued liabilities are related to the purchase of property and equipment.

3. Summary of significant accounting policiesThe financial statements have been prepared in accordance with Canadian GAAP and, in management’s opinion, have been properly prepared within reasonable limits of materiality and within the framework of the significant accounting policies summarized below.

Revenue recognition

The Society follows the deferral method of accounting for contributions. Restricted contributions are recognized as revenue in the year the related expenses are incurred. Unrestricted funds are recognized

38 TELUS Spark

notes to the financial statements AS AT DECEMBEr 31, 2011

3. Summary of significant accounting policies (continued)as revenue when received or receivable if the amount to be received can be reasonably estimated and collection is reasonably assured. Amounts pledged are recorded when received by the Society or when the amount can be reasonably estimated and the collection is reasonably assured. Donations received in kind are recorded at fair market value, determined at the date the donation is made.

Donated property and equipment and contributions received towards the acquisition of property and equipment are deferred and amortized to revenue on the same basis as the related depreciable property and equipment are amortized.

Operating grants, admissions, memberships, parking, school programs, food services, registrations and other revenue are recognized on an accrual basis.

Fund accounting

The Capital Fund is used to account for all of the revenue and expenses related to the Society’s property and equipment not specifically designated to the new Science Centre.

The new Science Centre fund is used to account for all of the revenue and expenses related to the Society’s new facility. new Science Centre costs which cannot be capitalized as part of the facility are expensed and an equivalent amount of deferred contributions are recognized as revenue.

The Operating Fund is used to account for revenue and expenses related to operations program delivery and administrative activities. The Society restricts the use of portions of its unrestricted fund balances for specific future uses. When incurred, related expenses are charged to the Operating Fund and the balance of internally restricted fund balances is reduced accordingly.

Property and equipment

Purchased property and equipment are recorded at cost. Donated property and equipment are recorded at their fair values at the date of donation. Amortization is provided on a straight-line basis over the asset’s estimated useful lives as follows:

Building (new Science Centre) 40 yearsSite improvements 40 yearsLeasehold improvements 5 yearsExhibits 3-5 yearsFurniture and fixtures 3 yearsComputers 3 years

Assets under construction are not amortized until the assets are available for use.

Property and equipment is tested for impairment whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. Any resulting impairment loss is recognized in the period it is determined and calculated as the excess of the carrying value of the asset over its fair value.

Inventory

Inventory is valued at the lower of cost and replacement value with the cost being determined on a first in, first-out basis. The net realizable value of inventories is determined using current estimated selling prices less selling costs. The estimated selling price takes into account management’s best estimate of the most probable set of economic conditions.

Financial instruments

The Society follows the requirements of CICA Handbook Section 3861 and has not adopted the provisions


CALgAry SCIEnCE CEnTrE & CrEATIvE KIDS MUSEUM SOCIETy(Operating as TELUS Spark)

3. Summary of significant accounting policies (continued)of Handbook Section 3862, Financial Instruments - Disclosures, or Section 3863, Financial Instruments - Presentation.

Financial instruments are initially recognized at fair value on the statement of financial position. The Society has categorized each financial instrument as follows:

Held-for-trading Cash and restricted cash

Loans and receivables Accounts receivable and contributions receivable

Other financial liabilities Accounts payable and accrued liabilities, deferred contributions and long-term debt

Subsequent measurement of the financial instruments is based on their classification.

Financial assets and financial liabilities held-for-trading are measured at fair value, and changes in these fair values are recognized in the statement of operations in the period in which they arise. Loans and receivables and other financial liabilities are measured at amortized cost using the effective-interest-rate method of amortization.

The Society assesses at each statement of financial position date whether a financial asset carried at cost is impaired. If there is objective evidence that an impairment loss exists, the amount of the loss is measured as the difference between the carrying amount of the asset and its fair value. The carrying amount of the asset is reduced to its fair value and the amount of the loss is recognized in the statement of operations.

The Society does not participate in hedging activities.

Transaction costs

Transaction costs incurred for the acquisition or disposition of all financial assets and liabilities are recorded in the statements of operations and changes in fund balances when incurred.

Contributed materials and services

Contributed materials and services are recognized in the financial statements when their fair value can be reasonably estimated and when the Society would have otherwise purchased them. Contribution of time by volunteers is not recorded as an expense as the dollar amount is not reasonably determinable.

Use of estimates

The financial statements have been prepared in conformity with Canadian GAAP, which require management to make estimates and assumptions that affect the amounts reported in the financial statements and the accompanying notes. In the opinion of management, these financial statements reflect, within reasonable limits of materiality, all adjustments necessary to present fairly the results for the years presented. Actual results could differ from these estimates. Assumptions are used in estimating useful life and potential impairment of property and equipment, the collectability of accounts and contributions receivable and accrued liabilities. Management reviews its estimates annually based on current available information.

4. Restricted cashRestricted cash is made up of an externally restricted portion of $9,820,541 (2010 - $12,590,983) and an internally restricted portion of $398,807 (2010 - $126,969). Externally restricted cash primarily relates to capital grants received which are restricted for purchases related to property and equipment for the new Science Centre. Externally restricted cash also includes $2,668,655 restricted for future interest payments on the long-term debt. The Society has internally restricted cash to accumulate an operating reserve (Note 12).

40 TELUS Spark

5. Long-term assets under construction

2011 2010 $ $

Building 7,293,231 51,000,710 Site improvements - 10,433,201 Exhibits - 3,411,155 Computers - 134,046 Furniture and fixtures - 18,831

7,293,231 64,997,943

6. Contributions receivableThe contributions receivable are unsecured, non-interest bearing and up to $17.0 million of the amount is used to secure the long-term debt (Note 11). The outstanding contributions receivable are expected to be collected over the following periods:

$ 2012 6,817,527 2013 3,571,464 2014 2,305,965 2015 2,215,676 2016 974,284 Thereafter 2,076,037

17,960,953

7. Property and equipment

2011

Cost Accumulated amortization

Net book value

$ $ $

Building 80,339,889 334,749 80,005,140 Site improvements 11,194,480 46,644 11,147,836 Exhibits 18,032,236 643,404 17,388,832 Computers 187,174 60,575 126,599 Furniture and fixtures 2,619,336 145,518 2,473,818

112,373,115 1,230,890 111,142,225

2010

Cost Accumulated amortization

Net book value

$ $ $

Site improvements 5,942,153 5,559,854 382,299 Exhibits 804,327 742,416 61,911 Computers 53,128 53,128 - Furniture and fixtures 105,263 105,263 -

6,904,871 6,460,661 444,210

notes to the financial statements yEAr EnDED DECEMBEr 31, 2011


8. Bank indebtednessAn overdraft facility has been authorized to a maximum of $250,000 and bears interest at the bank’s prime interest rate (2010 - prime interest rate plus 2.7%) per annum. As security, a Canadian chartered bank has a general security agreement covering the assets of the Society. No amount was outstanding on the overdraft facility at December 31, 2011 (2010 - $Nil).

9. Deferred contributions related to property and equipment

Beginning

Contributions

received and receivable

Expended on current

acquisitions Utilization 2011 $ $ $ $ $

Deferred contributions related to property and equipment 65,219,158 7,184 54,767,421 (1,558,539) 118,435,224

Deferred contributions restricted for future period property and equipment 13,360,557 58,067,354 (54,767,421) (4,221,875) 12,438,615

78,579,715 58,074,538 - (5,780,414) 130,873,839

Beginning

Contributions received and

receivable

Expended on current

acquisitions Utilization 2010 $ $ $ $ $

Deferred contributions related to property and equipment 22,275,702 261,222 43,613,797 (931,563) 65,219,158

Deferred contributions restricted for future period property and equipment 17,094,239 42,391,283 (43,613,797) (2,511,168) 13,360,557

39,369,941 42,652,505 - (3,442,731) 78,579,715

Deferred contributions related to property and equipment

Deferred contributions related to property and equipment represents the unamortized contributions received for the purchase of property and equipment that has been acquired. Recognition of these amounts as revenue is deferred to periods when the related property and equipment is amortized. The contributions are being recognized as revenue on the same basis as the assets acquired are amortized (Note 5).

Deferred contributions restricted for future period property and equipment and expenditures

Contributions restricted for future period acquisitions of property and equipment and expenditures are deferred until the property and equipment is acquired, and at that time amortization of the contribution to revenue begins, as described above. Contributions used to fund expenditures are recognized as revenue as funds are expended.


42 TELUS Spark

10. Deferred contributions related to operationsDeferred contributions related to operations is funding received in the current period for future period operations.

Beginning


receivable Utilization 2011 $ $ $ $

City of Calgary - Life Cycle contribution 57,326 288,000 (89,832) 255,494 Casino 2,542 62,014 (2,303) 62,253

59,868 350,014 (92,135) 317,747

Beginning


receivable Utilization 2010 $ $ $ $

City of Calgary - Life Cycle contribution 162,836 228,750 (334,260) 57,326 Casino 23,347 4,161 (24,966) 2,542

186,183 232,911 (359,226) 59,868

11. Long-term debtThe Society entered into a Guaranteed Credit Facility (the “Facility”) with TD Bank to a maximum of $17.0 million. The Facility bears interest at the bank’s prime interest rate minus 0.75% per annum.

The Facility is supported by a City guarantee to TD Bank in the amount of $17.0 million. The City guarantee expires on August 31, 2019.

In exchange for the City guarantee, the Society entered into a security agreement, in favour of the City, in the amount of $17.25 million. The security agreement provides the City with a security interest in, and assignment upon, all of the personal property of the Society, including monetary donations, grants and contributions, displays and naming rights, all present and future real property including leasehold improvements, and all other property and assets of the Society.

Repayment of the Facility commenced on March 22, 2012 in accordance with the terms and conditions of the agreement. Under the Facility, all specified pledged contributions identified in Note 6, net of commissions, received after March 22, 2012 are to be applied to the outstanding Facility amount.

2011 2010 $ $

Long-term debt 10,939,337 - Less: current portion 3,243,334 -

7,696,003 -

The amount shown as the current portion is equal to the specified contributions receivable identified in Note 6, net of commissions, that are expected to be collected after March 22, 2012, the repayment commencement date. Contributions received are directed exclusively to the repayment of the Facility.



Principal prepayments anticipated in each of the next four years are as follows:

$

2012 3 ,243,334 2013 3 ,571,464 2014 2 ,305,965 2015 1 ,818,574

10,939,337

12. Internally restricted fundsThe board of directors restricts the balance of otherwise unrestricted funds at the end of the fiscal year to accumulate an operating reserve. These funds are not available for expenditure without prior approval of the board of directors.

2011 2010 $ $

Operating reserve 398,807 106,305 Short term disability reserve - 20,664 Total internally restricted funds 398,807 126,969

13. Sources of grants recognized

Capital New Science OperatingFund Centre Fund 2011 2010

$ $ $ $ $

The City of Calgary 450,160 - 2,464,889 2,915,049 2,350,846 Province of Alberta 65,038 - 276,899 341,937 689,205 Government of Canada - - 115,806 115,806 5,712

515,198 - 2,857,594 3,372,792 3,045,763

14. New Science Centre commitmentsThe construction of the new Science Centre, which began in 2009, commenced operations October 29, 2011. The total costs of the project are projected by management to include approximately $140 million of capitalized expenditures, and an additional $20 million of project expenses not eligible for capitalization. Of these costs, in addition to what has been expended to date, the Society has entered into contracts with vendors amounting to approximately $9.9 million.

15. City of Calgary fundingThe City of Calgary has requested the following schedule be reported which relates to their annual cash contributions. For accounting purposes, the cash contributions may be recognized as revenue in the year received or deferred and amortized on the same basis as the property and equipment that the cash was used for (Note 9).


44 TELUS Spark

15. City of Calgary funding (continued)

Contributions deferred at

January 1, 2011 Funding

2011 Expenses

2011

Contributions recognized

2011


December 31, 2011 $ $ $ $

For current operations

Operations Grants City of Calgary Operating Grant 1,925,616 (1,925,616) 1,925,616 -

CPRiiP Grants CPRiiP - Building Interior Upgrade 137,307 - (137,307) 137,307 -

City Life Cycle Grant Life Cycle Grant 57,326 288,000 (89,832) 89,832 255,494 Total 194,633 2,213,616 (2,152,755) 2,152,755 255,494


January 1, 2011 Contributions

2011 Expensed

2011


December 31, 2011 $ $ $ $

For new Science Centre

City of Calgary Building Grant 5,948,476 16,324,463 (479,975) 21,792,964 City of Calgary Land Improvement Grant 10,433,201 761,279 (46,643) 11,147,837

16,381,677 17,085,742 (526,618) 32,940,801

16. Compensation pertaining to the new Science CentreDuring the construction of the new Science Centre, a number of science centre operations staff were dedicated, in whole or in part, to supporting the construction project. To accurately reflect this allocation of resources, related payroll costs were recorded in the new Science Centre Fund. This recording effectively transferred funds from the new Science Centre Fund to the Operating Fund. The prior year’s presentation of this transfer has been reclassified to conform with the current year’s presentation.

17. Financial instrumentsThe Society’s financial instruments consist of cash, accounts receivable, contributions receivable, accounts payable and accrued liabilities, deferred contributions and long-term debt. Except for contributions receivable and long-term debt, the carrying value of these financial instruments approximates their fair value due to their short term nature. The carrying value of contributions receivable approximates fair value. The carrying value of the long-term debt approximates fair value as the interest rate on the facility represents a current market rate.



Investment risk

The Society’s Audit Committee has approved an investment policy and procedures that provide guidelines for managing investments of the Society. Through this approach, investments are strategically distributed to safeguard the capital of the investment portfolio which 100% of the dollar limit will be invested in financial instruments where the principal of the investment is guaranteed and 100% liquidity is achieved.

Interest rate risk

Interest rate risk refers to adverse consequences of interest rate changes on the Society cash flows, financial position, investment income and interest expense. The Society’s fixed income investments and long-term contribution receivable are exposed to interest rate changes. The impact of adverse changes in interest rates is not considered material.

The Society is also exposed to interest rate risk that arises from the fluctuation in interest rates on its long-term floating rate debt which is based on the bank’s prime interest rate.

Credit risk

The Society is exposed to credit risk to the extent that its donors and customers may experience financial difficulty and would be unable to meet their obligations. However, the Society has a large number of diverse donors and customers, which minimizes concentration of credit risk.

18. Management of capitalThe Society’s objective when managing capital is to ensure it has adequate cash flow to maintain operations and fund capital projects. The Society manages its capital structure and makes adjustments due to changes in economic conditions and the risk characteristics of the underlying assets. In order to maintain or adjust the capital structure, the Society may obtain new debt and/or may obtain new debt to replace existing debt with different characteristics. Management and the board of directors also carefully consider donations, grants and fees to ensure that sufficient funds will be available to meet the Society’s short and long-term objectives.


220 St. George’s Drive NECalgary, AB, T2E 5T2

P: 403.817.6800E: [email protected]

TELUSSPARKAnnualReport2011

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