ANNUAL BUDGET. A Presentation to the Board of Governors February 2013

Transcription

1 ANNUAL BUDGET A Presentation to the Board of Governors February 2013

2 Table of Contents President s Budget Overview... 1 Treasurer s Report of the 2013/2014 Budget... 3 Pro Forma Summary Statement of Financial Position Revenue Schedule Expenditures Schedule Funding for Strategic Investment Priorities Schedule Net Assets Continuity Schedule...16 Summary of Funded Positions /2014 Projected Enrolment vs. 2012/2013 Actual Enrolment... 18

3 President s Budget Overview Dear Colleagues, I am honoured to present to the Board of Governors the 2013/14 Annual Budget and Business Plan, the result of work completed by a dedicated group of Algonquin employees who have spent the past few months re-imagining the College s budget and business planning efforts. Balanced and focused, the budget and companion business plan work collaboratively to deliver on our mission to transform hopes and dreams into lifelong career success. This year s budget process took a significantly different path, seeking the guidance and advice of stakeholders from across the organization, no matter their role or years of service. Appropriately, the effort began with two-days of discussion with the Board of Governors. Armed with these insights and guided by the College s new Strategic Plan, similar retreats were held by departments, the College Leadership Council, and the President s Council, launching a participatory planning process that will, in the years to come, seek to engage an even greater number of stakeholders. Our commitment to an open budget and business planning process is an extension of our belief in the concept of the Connected College. As detailed in our new Strategic Plan, Algonquin seeks to differentiate itself locally, nationally and globally. Building on the foundation of past plans, the Strategic Plan identified four pillars essential to ensuring the College fulfills its vision of being a global leader of digitally-connected, applied education and training. In short, the 2013/14 Annual Budget and Business Plan moves the College closer to realizing its aspirations in the following ways: To champion applied education and training, this year s Business Plan seeks to broaden access both on-campus and online through the development of new degrees and graduate certificates. In addition, we have set aside funds for curriculum development, maturing the co-curricular transcript concept, broadening our retention efforts, and better coordinating community volunteer opportunities. The Budget also includes investments in our strategic enrolment management capacity, the expansion of our Mobile Learning Program, and the continued digitization of education and its delivery. Students, no matter their age or background, attend Algonquin for the purpose of securing a rewarding job. To help them achieve their dreams we are working to ensure we deliver the most effective form of education and training available one that is applied, hands-on and experiential. 1

4 To improve student and client success, investments of time and resources are focused on enhancing our student success and retention capacity, piloting the availability of writing support, and benchmarking alumni satisfaction. We also believe significant productivity and service improvements can be realized through investments in automation, the development of a long-term enterprise resource planning (ERP) strategy, and the expansion of our current client relationship management (CRM) pilot. To empower people, the Budget and Business Plan build on our existing investments in professional development. The Algonquin College Employee Engagement survey confirms what we have long suspected: that Algonquin employees are among the most engaged in the country, are finely focused on student success, and are exceptionally proud to work at the College. The Survey also identifies areas for improvement, among them aligning incentives and rewards, celebrating success, and working to ensure hiring practices are viewed as open and fair. This Budget and Business Plan aim to make Algonquin an even more rewarding place to work by expanding Kaleidoscope, piloting the impact of volunteerism and community service, increasing access to professional development programs and further investigating the opportunities surrounding a responsibility centered management model. Finally, to ensure financial sustainability, the College will spend the time required to develop detailed plans for growing the contribution realized from ancillary services, international education and fundraising. Efforts will also focus on expanding our relationship with the Federal Government, investing in our information systems, and enhancing our ability to make more informed, datadriven decisions. In summary, demographic shifts, technological advances, rising global demand, and changing government priorities are certain to present a series of opportunities and challenges, the likes of which we have not seen in recent memory. Our new Strategic Plan lays out an ambitious path and the 2013/14 Annual Budget and Business Plan moves us forward in a manner that honours the College values of Caring, Learning, Integrity and Respect. Yours sincerely, Dr. Kent MacDonald President 2

5 Treasurer s Report of the 2013/14 Annual Budget The College s annual budget preparation process has concluded with a budgeted net contribution of $813,000. Last year, the College concluded fiscal year 2011/12 with a net contribution of $11.7 million which exceeded the 2011/12 Approved Budget net contribution of $1.7 million by $10 million. In addition to various operating savings, this positive variance was achieved primarily due to the following: Digital College Grant announced post-budget $1,864,000 International Education Centre Contribution exceeded Approved Budget Enrollment Bridging Grants announced post-budget $2,163,000 $849,000 Investment Income higher than anticipated $961,000 Reductions in liabilities for Vacation, Sick Leave and Post-Employment Benefits $1,454,000 In March 2012, the Ontario Government was predicting that our economy would experience continued lacklustre expansion with projected Gross Domestic Product growth of 1.7 per cent for The Provincial deficit for 2011/12 was estimated to be $15.3 billion and projected to be at the same level at the end of 2012/13. The Ontario Government presented its Provincial budget that included many measures to reduce the deficit including several funding adjustments for Ontario colleges. These adjustments are estimated to result in funding reductions of $2.4 million in 2013/14 and $4.8 million in 2014/15 for Algonquin College. Details are provided in the Chart below: Annual Algonquin Impact of Funding Reductions Provincial Budget Measure 2013/ /15 International Student Recovery Fee $ (340,000) $ (923,000) Elimination of Small Northern and Rural Grant (900,000) (1,800,000) Policy Levers Operating Grant Reductions (1,000,000) (2,000,000) International Student Municipal Tax (86,000) (86,000) Elimination of Ontario Special Bursary Program TBD* TBD* TOTAL IMPACT ON ALGONQUIN COLLEGE $ (2,326,000) $ (4,809,000) *Dependent on impact of Ontario Tuition Grant 3

6 In Spring of 2012, Algonquin College approved an updated Strategic Plan for 2012 to 2017 which contains twelve goals under four pillars: Applied Education and Training, Student and Client Success, Empowered People and Financial Sustainability. Under the Financial Sustainability pillar, Goal 9 of the Plan is to Align our funded operational expenditures with provincial funding. The College has restructured its budget to clearly identify Funded Activity and is committed to containing the operating expenditures required to deliver applied education, training and student support services within the Province s grant and tuition fee framework. Non-Funded Activities include College Ancillary Services, International Education Centre and Contract and Other Non-Funded Activity. The College s objective is to maximize the net contribution from Non-Funded Activities to supplement its capacity for Strategic Investment Priorities. On June 11, 2012, the Board of Governors approved a new Financial Management Policy to provide clarity and support in its responsibility to oversee the financial integrity of the College. The following points are made to demonstrate that the 2013/14 Annual Budget is in compliance with this Policy: Complies with regulations and policy directives issued under OCAAT Act; Expenditures are not budgeted to exceed revenues and there is no planned spending from General Reserve Funds; and Ancillary expenditures are not budgeted to exceed ancillary revenues. The new Robert C. Gillett Student Commons facility was completed and opened at the start of the Fall 2012 academic term. This $52 million facility provides our students with greater access to services in an environment that promotes collaboration, communication and engagement. The College is very appreciative of the Algonquin Students Association contribution of $30 million towards this facility. The College secured a 25-year term loan at a fixed rate of 4% to finance its $22 million contribution. A provision for debt servicing has been incorporated in this annual budget. In 2012/13, the College is projected to maintain core operating expenditures within the tuition fee and funding framework. However, Non-Funded Activities are projected to contribute less than budgeted due to stagnant or declining economies around the world, altered spending patterns of students and over-estimated revenue targets. In answer to this situation, during 2013/14, the College will be focussing efforts on developing plans to resume the growth of its Non-Funded Activities and ensure sufficient capacity exists to support investments required to achieve the College s strategic objectives. 4

7 ASSUMPTIONS A number of assumptions were made in the preparation of estimates to be included in the budget. A list of the most significant assumptions for 2013/14 follows: Revenues Grant projections are based on the assumption that the existing College Funding Framework (released in June 2009) for operating and enrolment growth grants will be extended for a fifth year and will be funded at the same rate as the first 4 years of this model; Tuition fee rates for funded programs has been conservatively estimated to have a 0% increase; Enrolment growth in full-time post-secondary programs is projected to increase by 3.1% over 2012/13 enrolment levels due to growth in existing programs, the launch of new programs, and improved retention; Colleges will be fully reimbursed for the 30% tuition discount implemented under the Ontario Tuition Grant program; and The following other non-funded revenue sources have been updated to respond to the projected enrolment changes, the economic downturn, international opportunities and anticipated market conditions: o Contract Activity o International Tuition o College Ancillary Services Operating Expenditures Wage increases for non-bargaining unit staff will not exceed the current range of wage increases in the public sector; Existing collective agreements and prescribed wage rates for faculty and support staff will remain in effect for the duration of the fiscal year (both collective agreements expire August 31, 2014); The College will augment its existing faculty complement with additional hires to accommodate projected enrolment growth; and Other expenditures will increase at a rate consistent with the rate of inflation. Funding for Strategic Investment Priorities Through the alignment of operating revenues and expenditures within the Province s funding and tuition fee framework, the College is able to direct contributions from nonfunded activities to strategic investment priorities. Priority setting has been based on investments that are deemed to be essential, support the College s strategic directions, renew curriculum and develop new programs, deliver high quality instructional 5

8 equipment for students, and mitigate the risk of physical and technological infrastructure failure. More specifically, the annual budget provides funding for the following initiatives: Adapt teaching environments to accommodate students with mobile devices as part of the mobile learning program project; Developing additional hybrid courses, online programs, graduate certificates and degree programs to meet the needs of today s student; Launch an e-text strategy for students that will result in lower costs for students and provide increased flexibility for learning; Enhance and expand the College s client relationship management system; Implement strategies to improve employee engagement; Continue to upgrade and improve the service and reliability of wired and wireless networks; and Upgrade the College s financial information system to a current version and expand the scope of functionality; Internally Restricted Net Assets The College has consistently grown its accumulated surplus balance over the past 8 years in the Internally Restricted Net Asset accounts. These funds are managed and grown to provide resources to fund Strategic Investment Priorities, both short-term initiatives and long-term development projects. The Annual Budget includes provisions to increase the Contingency Reserve Fund to $7.25 million by March 31, As per the motion approved by the Board of Governors on June 11, 2012, this Fund will be increased to 3% of operating revenues by the end of 2015/16 and will be maintained at this level each year thereafter to mitigate the financial impact of adverse events. The Annual Budget includes a provision to increase the General Reserve Funds by $2 million. In addition, cash donations received in 2013/14 in lieu of past Capital Campaign pledges will be contributed to the General Reserve Funds. During construction of the new Perth and Pembroke campuses and the Algonquin Centre for Construction Excellence, the Board of Governors authorized the temporary use of General Reserve Funds to finance a portion of construction costs until such time that capital campaign pledges were honoured with cash donations. 6

9 The College s Financial Management Policy stipulates that The President may not approve an unbudgeted expenditure or commitment that will result in the College s fiscal year-end total balance of unrestricted net assets plus internally restricted net assets being lower than budgeted without the approval of the Board. The Board of Governors approved the following motion at the meeting held on June 11, 2012: That the College prepares its annual budgets in a manner that always produces positive projected fiscal year-end balances of its Unrestricted Net Assets plus Internally Restricted Net Assets beginning with the 2012/13 fiscal year. The budgeted 2013/14 fiscal year-end total balance of unrestricted net assets plus internally restricted net assets are as follows: Unrestricted Net Assets $ 1,000,000 Internally Restricted Net Assets Specific Reserves Other Projects and Initiatives 14,690,000 Ancillary Services Reserve Fund 6,012,000 Employment Stabilization Fund 542,000 Other Student Aid 20,000 Contingency Reserve Fund 7,250,000 General Reserve Funds 22,807,000 Total Unrestricted and Internally Restricted Net Assets 52,321,000 7

10 RISKS We believe this budget is reasonable under the circumstances. The following identifies and assesses major risks: Risk Identification Enrolment Less than Projection resulting in Reduced Tuition Fee Revenue Provincial Operating Grants Less than Budgeted Other Revenues Less than Budgeted RISK SCHEDULE Impact in Likelihood 2013/14 in 2013/14 Low Moderate Moderate Low Moderate Low Labour Relations Moderate Moderate Information Technology Assets and Services Business Interruption Facilities Quality and Space Constraints High Moderate Low Low Risk Management New Programs Retention Initiatives Reduce Direct Expenses Reduce Planned Contributions to Reserves Province May Allow Tuition Fee Rate Increase Increase Winter Intakes Reduce Direct Expenses Further Review Programs and Services for Efficiencies Defer Strategic One Time Investments International Initiatives Contract Training Monitor Government Actions Advocate for additional Government Funding Budget Provision for additional Positions Management of the Arbitration Process and Costs Upgraded IT Infrastructure Contingency Accounts Available Business Continuity/Disaster Recovery Planning Develop Alternative Growth Strategies Leverage use of Technology Energy Services Contract 8

11 BUDGET IMPACT The 2013/14 Annual Budget provides adequate resources for programs and services to operate the College and fund initiatives that support the Strategic Plan. In order to produce a balanced budget, a number of budget reduction and expansion initiatives were implemented: Budget Reductions Elimination of acceptance of credit cards to pay for tuition fees Contingency Funds in Operating Budget Budget Expansion Full-Time Enrolment Increase Mobile Learning Programs Impact $400,000 in cost reduction in 2012/13 with anticipated additional $400,000 to be realized in 2013/14. Online banking option has been fully implemented to provide alternative payment method to students. $500,000 reduction in contingency provision to mitigate unforeseen operating budget impacts. Impact $4.4 million increase in full-time tuition fee revenues and $2.8 million increase in the Enrolment Growth Grant. $2 million increase in Mobile Learning fees More specifically, this budget includes provisions for the following program and service improvements: Digital college and online learning initiatives; Effective academic advising and retention initiatives; Provide employees with opportunities for professional development; Development of business intelligence capabilities to obtain information to support strategic decision making; Additional faculty positions in the Academic area; and Additional positions in other areas that support the College s strategic directions. Additional details of new initiatives are included in the College s annual Business Plan. I would like to conclude by thanking all of those involved for their hard work and ongoing commitment to the College. Duane McNair Treasurer and Vice-President, Finance and Administration 9

12 PRO FORMA SUMMARY (all figures in $ 000's) Annual Q3 Annual Actual Budget Projection Budget Pro Forma Pro Forma 2011/ / / / / /2016 Funded Activity/College Operations Revenue $ 175,808 $ 190,813 $ 192,777 $ 197,985 $ 202,157 $ 207,803 Expenditures * 181, , , , , ,011 Net Contribution (5,348) 2,166 7,120 3,414 2,751 2,792 Contract Activity & Other Non-Funded Activity Revenue 25,616 27,781 24,221 27,866 27,407 27,995 Expenditures 22,173 23,405 22,086 25,716 25,225 25,595 Net Contribution 3,443 4,376 2,135 2,150 2,182 2,400 College Ancillary Services Revenue 39,383 40,641 39,939 40,285 40,938 41,608 Expenditures * 34,355 34,118 33,215 33,613 34,005 34,525 Net Contribution 5,028 6,523 6,724 6,672 6,933 7,083 International Education Centre Revenue 17,096 16,575 14,420 14,864 17,361 19,429 Expenditures 6,296 12,032 10,844 11,262 13,102 14,629 Net Contribution 10,800 4,543 3,576 3,602 4,259 4,800 Strategic Investment Priorities Revenue 38,717 24,974 21,216 2, Expenditures ** 65,906 65,571 57,459 16,433 14,200 14,983 Net Contribution (27,189) (40,597) (36,243) (13,533) (13,600) (14,383) Non-Cash Revenue Adjustments Capital Grants recorded as Deferred Capital Contributions (35,817) (17,591) (16,668) (2,560) (1,000) (1,000) Amortization of Deferred Capital Contributions 6,306 7,528 7,912 7,900 7,900 7,900 Non-Cash Expenditure Adjustments Expenditures to be Capitalized 66,138 50,565 45,462 7,000 7,000 7,000 Amortization Expense (12,720) (14,758) (15,131) (15,000) (15,000) (15,000) Change in Vacation, Sick Leave & Post-Employment Benefits 1, ,168 (523) (576) Net Contribution as per Public Sector Accounting Standards (PSAS) *** $ 11,739 $ 3,272 $ 5,404 $ 813 $ 902 $ 1,016 * Expenditures do not include 'Contributions to Reserve Funds' and 'Principal Repayments of Debt'. ** Strategic Investment Priorities Expenditures includes authorized and proposed spending from Internally Restricted Net Assets. *** 2011/2012 Actuals, 2012/2013 Approved Budget, and 2012/2013 Q3 Projection Net Contributions are presented as per Generally Accepted Accounting Principles (GAAP). Annual Budget 2013/

13 PRO FORMA SUMMARY (all figures in $ 000's) Net Assets Annual Q3 Annual Actual Budget Projection Budget Pro Forma Pro Forma 2011/ / / / / /2016 Unrestricted 1,000 1,000 1,000 1,000 1,000 1,000 Investment in Capital Assets 38,034 55,731 55,306 55,140 56,688 58,399 Vacation, Sick Leave and Post-Employment Benefits **** (14,443) (13,842) (13,926) (19,147) (19,670) (20,246) Internally Restricted Appropriations 1, Specific Reserves 13,222 8,585 21,516 21,264 18,650 16,589 Contingency Reserve Fund 1,750-4,500 7,250 8,250 8,923 General Reserve Funds 41,459 22,970 19,106 22,807 24,299 25,568 Interest Rate Swaps (14,148) (8,744) (14,200) (13,916) (13,638) (13,365) Endowments 16,455 15,871 17,056 17,656 18,156 18,656 TOTAL NET ASSETS $ 84,406 $ 81,571 $ 90,358 $ 92,054 $ 93,735 $ 95,524 **** 2013/2014 year-end adjustment for Vacation, Sick Leave & Post-Employment Benefits include a ($6.4M estimated) restatement for PSAS, however the prior years have not yet been restated. Annual Budget 2013/

14 STATEMENT OF FINANCIAL POSITION (all figures in $ 000's) March 31, 2013 March 31, 2013 March 31, 2014 Annual Budget Q3 Projection Annual Budget ASSETS Current Assets Cash and Short Term Investments $ 23,616 $ 27,227 $ 25,452 Accounts Receivable 21,986 21,986 22,500 Inventory 2,154 1,644 1,700 Prepaid Expenses 907 1,200 1,400 48,663 52,057 51,052 Investments 43,204 50,565 47,269 Endowment Assets 15,871 17,056 17,656 Capital Assets 284, , ,799 TOTAL ASSETS $ 391,952 $ 403,477 $ 391,776 LIABILITIES AND NET ASSETS Current Liabilities Accounts Payable & Accrued Liabilities 26,811 26,500 20,000 Accrued Salaries & Employee Deductions Payable 10,431 10,000 6,000 Deferred Revenue 22,068 20,000 20,000 Current Portion of Long Term Debt 2,386 2,494 2,647 61,696 58,994 48,647 Long Term Debt 62,986 62,365 59,718 Vacation, Sick Leave & Post-Employment Benefits 13,841 13,926 19,147 Deferred Capital Contributions 163, , ,294 Interest Rate Swaps 8,744 14,200 13,916 Net Assets Unrestricted 1,000 1,000 1,000 Investment in Capital Assets 55,731 55,306 55,140 Vacation, Sick Leave & Post-Employment Benefits (13,842) (13,926) (19,147) Internally Restricted 31,555 45,122 51,321 Interest Rate Swaps (8,744) (14,200) (13,916) Endowment Fund 15,871 17,056 17,656 81,571 90,358 92,054 TOTAL LIABILITIES AND NET ASSETS $ 391,952 $ 403,477 $ 391,776 Annual Budget 2013/

15 REVENUE SCHEDULE (all figures in $ 000's) Funded Activity/ Contract College International Strategic Annual Q3 Annual College Activity & Other Ancillary Education Investment Budget Projection Budget Actual Operations Non-Funded Activity Services Centre Priorities 2013/ / / /2012 Grants Post Secondary Activity $ 94,584 $ - $ - $ - $ - $ 94,584 $ 94,101 $ 94,075 $ 92,262 Capital & Equipment ,900 2,900 5,672 4,785 18,665 Apprentice 4, ,972 4,789 4,855 5,288 Flow-Through Student Aid 1, ,710 1,148 1,808 2,715 TOTAL GRANTS 101, , , , , ,930 Tuition Fees Full-Time Post Secondary 55, ,913-69,470 66,464 66,304 60,170 Full-Time Non-Funded - 1, ,955 1,726 1,787 1,859 Part-Time 10,544 1, ,804 9,862 11,930 11,091 Adult Training ,583 1,643 1,561 Student IT & Mobile Computing Fees 6, ,707 4,622 4,513 3,329 TOTAL TUITION FEES 73,692 3,215-13,913-90,820 84,257 86,177 78,010 Contract Educational Services Provincially Funded Programs - 8, ,406 10,307 8,726 8,466 Corporate & Other Programs 3,082 14, ,580 17,221 17,663 16,980 Grants, Fees & Other Income Associated with Contract Activity - 1, ,182 1,272 1,253 1,260 TOTAL CONTRACT EDUCATIONAL SERVICES 3,082 24, ,168 28,800 27,642 26,706 COLLEGE ANCILLARY SERVICES SALES , ,285 39,939 40,551 39,383 Other Students' Association Contribution (Student Commons & Pembroke) ,117 16,389 16,557 Capital Campaign ,427 1,300 3,495 Early Learning Centre Student Ancillary Fees 4, ,702 4,588 4,355 5,864 Student Services Grant Investment Income 1, ,400 1,433 1,587 2,387 Internal Transfer of International Revenue 5, ,948 5,202 6,648 - Miscellaneous 7, ,465 6,062 9,574 4,279 TOTAL OTHER 19, ,461 33,867 40,891 33,592 TOTAL REVENUE $ 197,985 $ 27,866 $ 40,285 $ 14,864 $ 2,900 $ 283,900 $ 292,573 $ 300,784 $ 296,620 Funded Activity/College Operations $ 197,985 $ 192,777 $ 190,813 $ 175,808 Contract Activity & Other Non-Funded Activity 27,866 24,221 27,781 25,616 College Ancillary Operations 40,285 39,939 40,641 39,383 International Education Centre 14,864 14,420 16,575 17,096 Strategic Investment Priorities 2,900 21,216 24,974 38,717 Total Revenue $ 283,900 $ 292,573 $ 300,784 $ 296,620 Annual Budget 2013/

16 EXPENDITURES SCHEDULE (all figures in $ 000's) Funded Activity/ Contract College International Strategic Annual Q3 Annual College Activity & Other Ancillary Education Investment Budget Projection Budget Actual Operations Non-Funded Activity Services Centre Priorities 2013/ / / /2012 Full-Time Salaries & Benefits Full-Time Salaries & Benefits - Academic $ 61,783 $ 2,378 $ - $ - $ - $ 64,161 $ 61,491 $ 62,707 $ 59,441 Full-Time Salaries & Benefits - Administration 17,736 2,217 1, ,337 20,727 21,685 19,210 Full-Time Salaries & Benefits - Support 31,915 2,557 4, ,165 36,280 36,794 32,558 Total Full-Time Salaries & Benefits 111,434 7,152 5,966 1, , , , ,209 Other Staff Salaries & Benefits Other Staff Salaries & Benefits - Academic 21,445 1, ,450 23,650 23,102 24,648 Other Staff Salaries & Benefits - Administration 1,747 1, ,007 3,696 3,583 2,897 Other Staff Salaries & Benefits - Support 5,155 1,409 1, ,424 9,398 6,820 9,002 Total Other Staff Salaries & Benefits 28,347 5,311 1, ,881 36,744 33,505 36,547 TOTAL SALARY & BENEFITS 139,781 12,463 7,767 1, , , , ,756 Other Operating Mandated Student Aid 4, ,862 4,761 4,673 4,566 Contingencies 5, ,342 4,032 6,169 3,417 Long Term Debt Interest 1,024-2, ,600 3,477 4,440 3,319 Contract Services 8,089 7,356 2,335 1,545-19,325 14,529 18,054 15,288 Instructional Supplies & Equipment 3,373 1, ,676 5,759 3,982 4,258 Information Technology 5, ,595 4,753 4,810 4,909 Promotion 2, ,088 2,967 3,172 2,981 Building Maintenance & Utilities 10, , ,343 10,505 10,691 9,213 Flow-Through Student Aid 1, ,710 1,148 1,800 2,714 Cost of Goods Sold 1,021-16, ,509 17,581 17,024 17,427 Internal Transfer of International Revenue ,948-5,948 5,202 6,647 - Other 11,963 3,845 3,002 1,810-20,620 21,845 22,049 28,132 TOTAL OTHER OPERATING 54,790 13,253 25,846 9, ,618 96, ,511 96,224 FUNDING FOR STRATEGIC INVESTMENT PRIORITIES ,433 16,433 57,459 65,571 65,906 TOTAL EXPENDITURES $ 194,571 $ 25,716 $ 33,613 $ 11,262 $ 16,433 $ 281,595 $ 309,261 $ 323,773 $ 309,886 Funded Activity/College Operations $ 194,571 $ 185,657 $ 188,647 $ 181,156 Contract Activity & Other Non-Funded Activity 25,716 22,086 23,405 22,173 College Ancillary Operations 33,613 33,215 34,118 34,355 International Education Centre 11,262 10,844 12,032 6,296 Strategic Investment Priorities 16,433 57,459 65,571 65,906 Total Expenditures $ 281,595 $ 309,261 $ 323,773 $ 309,886 Annual Budget 2013/

17 FUNDING FOR STRATEGIC INVESTMENT PRIORITIES SCHEDULE (all figures in $ 000's) Annual Q3 Annual Grants & College Budget Projection Budget Actual Fundraising Funded 2013/ / / /2012 Source of Funds Facilities Renewal Grant $ 600 $ - $ 600 $ 601 $ 585 $ 601 College Equipment Renewal Fund Grant Knowledge Infrastructure Program ,593 Apprenticeship Enhancement Fund Grant Students' Association Contribution (Student Commons & Pembroke) ,117 16,389 16,557 Capital Campaign ,427 1,300 3,495 Digital College 2,300-2,300 2,602 3,200 1,864 Enabling Accessibility Fund ,000 2,023 Other , TOTAL SOURCE OF FUNDS 2,900-2,900 21,216 24,974 38,717 Expenditures Campus Expansion Digital College 3,900-3,900 3,806 3,200 - Algonquin Centre for Construction Excellence ,080 Perth Campus ,899 Pembroke Campus ,028 19,224 15,002 Student Commons ,681 25,786 25,110 Total Campus Expansion 3,900-3,900 42,515 48,210 57,091 Other College Technologies - 2,650 2,650 1,323 2,000 1,743 College Space & Infrastructure 600 2,050 2,650 3,448 2,585 2,579 New Program Initiatives - 1,000 1, Academic & Other Equipment - 1,800 1,800 1,513 1,513 1,669 Initiatives & Opportunities - 4,433 4,433 7,526 11,013 1,638 Apprenticeship Enhancement Fund Total Other ,933 12,533 14,944 17,361 8,815 TOTAL EXPENDITURES 4,500 11,933 16,433 57,459 65,571 65,906 NET CONTRIBUTION $ (1,600) $ (11,933) $ (13,533) $ (36,243) $ (40,597) $ (27,189) Annual Budget 2013/

18 2013/2014 NET ASSETS CONTINUITY SCHEDULE (all figures in $ 000's) Q3 Projection March 31, /2014 Budgeted In Year Use of Funds 2013/2014 Budgeted Year End Adjustments Budgeted Balance March 31, 2014 Appropriations $ - $ - $ - $ - Specific Reserves Other Projects & Initiatives 15,259 5,055 4,486 14,690 Ancillary Services Reserve Fund 5, ,219 6,012 Employment Stabilization Funds Other Student Aid ,516 6,030 5,778 21,264 Contingency Reserve Fund 4,500-2,750 7,250 Reserve Funds Future Capital Expansion 19,106-3,701 22,807 TOTAL INTERNALLY RESTRICTED NET ASSETS $ 45,122 $ 6,030 $ 12,229 $ 51,321 * TOTAL UNRESTRICTED NET ASSETS $ 1,000 $ - $ - $ 1,000 * Investment in Capital Assets $ 55,306 $ - $ (166) $ 55,140 Vacation, Sick Leave & Post-Employment Benefits ** (13,926) - (5,221) (19,147) Interest Rate Swaps (14,200) (13,916) Endowment Fund 17, ,656 TOTAL NET ASSETS $ 90,358 $ 6,030 $ 7,726 $ 92,054 * Budgeted balances of Internally Restricted Net Assets and Unrestricted Net Assets includes the impact of budgeted expenditures from Appropriations, Specific Reserves and Reserve Funds and contributions to Reserve Funds for the fiscal year 2013/2014. The Board of Governors Financial Management Policy requires that the Board of Governors approve any spending from Reserve Funds. ** 2013/2014 year-end adjustment for Vacation, Sick Leave & Post-Employment Benefits include a ($6.4M estimated) restatement for PSAS. Annual Budget 2013/

19 SUMMARY OF FUNDED POSITIONS 3rd Quarter 2012/2013 Position Changes Annual Budget 2013/2014 Admin Support Academic Total Positions Opened Positions Closed Positions Transferred Admin Support Academic Total President & Board of Governors President's Office Total Human Resources Human Resources Total Administration Vice-President's Office College Ancillary Services (1) Finance & Administrative Services Information, Institutional Research & Technology Services Physical Resources Total (1) Student Services Vice-President's Office Student Support Services Algonquin College Foundation Registrar Total Academic Services Vice-President's Office School/College Work Initiative Faculty of Arts, Media & Design School of Business School of Hospitality & Tourism Faculty of Technology & Trades Algonquin College Heritage Institute Faculty of Health, Public Safety & Community Studies Learning & Teaching Services (15) Mobile Computing Centre for Continuing & Online Learning Personal Development Institute Applied Research & Development Business Development & Corporate Training International & Corporate Business Development Algonquin College in the Ottawa Valley Total (15) Advancement Executive Director's Office Recruitment Marketing Services Total COLLEGE TOTAL , (1) ,291 Annual Budget 2013/2014 The complement report represents the total number of positions for each of the College s major areas. Not all positions are 100% funded in the budget as some positions are vacant at the start of the year and other positions have a start date projected for other than April 1st. 17

20 2013/2014 PROJECTED ENROLMENT vs. 2012/2013 ACTUAL ENROLMENT Co-op Post Secondary / Applied Diploma Post Diploma Degree Apprenticeship Actual Actual Actual Projected (unaudited) Projected (unaudited) Projected (unaudited) FACULTY/SCHOOL 2013/ /2013 Change 2013/ /2013 Change 2013/ /2013 Change Arts, Media & Design Level 1 2,580 2,627 (47) Returning 4,233 4, (11) TOTAL 6,813 6, (11) % Change Business Level 1 1,844 1,863 (19) (4) Returning 4,831 4, TOTAL 6,675 6, Hospitality & Tourism Level 1 1,031 1, Returning 1,603 1, TOTAL 2,634 2, Technology & Trades Level 1 2,250 2,291 (41) Returning 5,027 4, TOTAL 7,277 7, Health, Public Safety & Community Studies Level 1 2,116 2,201 (85) Returning 5,143 4, TOTAL 7,259 7, Centre for Continuing & Online Learning Level Returning TOTAL 1,193 1, Business Development Algonquin College Heritage Institute Level Returning (1) TOTAL (1) Level Returning TOTAL Algonquin College in the Ottawa Valley Level Returning TOTAL 1,409 1, TOTAL Level 1 11,093 11,206 (113) % TOTAL Returning 22,897 21,821 1, % TOTAL 33,990 33, % In addition to the above, the budget supports: 1,946 semestered enrolments in the Collaborative Programs; 1,725 semestered enrolments in Full-Time Non-Funded Programs; and 2,803 Seat Purchases in the Apprentice Programs. Annual Budget 2013/