Business Plan

Transcription

1 Business Plan

2 Index Introduction 3 Responsible, strategic growth 4 Dynamic partnerships 5 Student-focused teaching and learning 6 Core institutional priorities 7 Challenges to the realization of Business Plan objectives budget 9 Mission The student experience comes first at Durham College Vision Durham College is the premier post-secondary destination for students who succeed in a dynamic and supportive learning environment. Our graduates develop the professional and personal skills required to realize meaningful careers and make a difference in the world. Values Our values drive our organizational culture and behaviour in delivering our vision and mission. We value: Integrity and transparency we behave and communicate sincerely and honestly. Respect we treat everyone with dignity, deliver superior service and offer a safe environment. Equal access and diversity we embrace diversity, ensure accessibility and champion all learners. Personal and team accountability we do what we say we will do and are creative and innovative in how we conduct our business.

3 Introduction Durham College (DC) enters ready to build on its recent record of system-leading growth, innovation and success. The past few years have firmly established the college as both a post-secondary destination and employer of choice. The college has an ambitious year planned, with actions and activities captured in four key areas: Responsible, strategic growth. Dynamic partnerships. Student-focused teaching and learning. Core institutional priorities. This is the first year for the college s recently signed three-year Strategic Mandate Agreement (SMA), a document developed with the Ministry of Training, Colleges and Universities (MTCU) to identify DC s strengths, priorities and where it differentiates from other Ontario post-secondary institutions. The Business Plan sets a foundation for success by beginning to deliver on the SMA s priorities and also aligns with the goals of the college s Strategic Plan. In , the college will continue to excel in teaching and learning, with a greater commitment to online and hybrid learning, a new framework for better prioritizing programs, and approval for the launch of its first-ever degree programs. In addition, it will grow in enrolment, new programs, and space for students to study and learn; develop new partnerships and agreements that will ultimately support new opportunities for students in the classroom and post-graduation; introduce new services to better support students in and out of class; and lead the way with research projects that help the post-secondary sector and broader community further innovate and excel. The following pages capture these and dozens more objectives for the coming year. They involve input from every department and academic school on campus and require the collaboration and efforts of faculty, staff and students to be successful. The Business Plan was approved by the DC Board of Governors at its May 14, 2014 meeting. durhamcollege.ca/businessplan 3

4 Responsible, strategic growth DC has become Ontario s fastest growing college over the past number of years by planning strategically, introducing new programs and opportunities that are in demand by students and employers and being innovative in all partnerships and activities. The college understands that to keep pace with the needs of today s students, it has to be willing and able to react quickly and efficiently to the needs of students and its communities. In , the college will: Introduce large-scale brand/general awareness campaign in Durham Region, the rest of the Greater Toronto Area, Northumberland County and the Peterborough area to support recruitment, government relations, community relations, fundraising and strategic enrolment management efforts. Work with the University of Ontario Institute of Technology (UOIT) to complete a campus master plan that will meet the long-term growth needs of both institutions. Explore partnering with UOIT on a proposal for the provincial government s major capacity expansion program. Develop and implement a new delivery model for access and accommodation for students with disabilities. Continue to respond to its rapidly growing communities by strategically increasing its student population by six per cent, including growing international enrolment by 16 per cent. Develop a flexible, multi-year plan to best manage and respond to continued enrolment growth. Develop plans to retire the Simcoe building, the college s original academic building, and replace it with a new building that will support 21st-century teaching and learning and offer third-party incubation and entrepreneurial space. Construct a greenhouse and begin development of demonstration plots, plants, gardens, landscaping and other aspects to support the field component of the Centre for Food s (CFF) field-to-fork concept. Invest $2.8 million in campus renewal and revitalization, allowing for new teaching, learning, social and support space for students, along with renovations to residence. Grow Corporate Training Services high-value client base by four companies. Initiate a plan to determine future recreational space needs. Restructure and realign departments within the Student Affairs portfolio to meet evolving student needs for access, wellness support and leadership. Realize greater efficiencies across college operations through the revitalization of enterprise resource planning system software. Continue to expand student financial aid and awards services, including additional self-serve opportunities to all campuses. Explore strategic partnerships, such as an Energy Savings Company, to assess energy retrofits and provide guaranteed savings on projects. Alignment to the Strategic Plan Our Students Our People Our Business Our Community To provide students with the best possible learning experiences by offering new opportunities for experiential learning, fostering greater mobility within the post-secondary system and ensuring all necessary supports are in place. To capitalize on the vast experiences and expertise of our people and help them make the best possible contribution towards the student experience. To be prudent stewards of all resources so that we are financially responsible, demonstrate good governance and are system leaders in making decisions that support outstanding teaching and learning. To ensure the college, in all its actions and decisions, is contributing to the economic and social prosperity of our communities. 4 durhamcollege.ca/businessplan

5 Dynamic partnerships DC contributes greatly to the economic and social well-being of its communities. Partnerships with all levels of government, other post-secondary institutions, businesses and the broader community within and beyond the borders of Durham Region play a critical role in delivering high-quality education. By working with the community, understanding employer needs and tracking employment trends, Durham College students realize success in finding jobs after graduation. In , the college will continue to seek out new partnerships and agreements and will: Work with partners, the broader community and government to see advancement of the Durham Learning and Business Innovation Park (dlab). Develop business and functional space plans for a college entrepreneurial incubator to strengthen connections between students and businesses and pursue new industry-led research partnerships with local businesses in areas of importance to the community and government. Complete the installation and setup of research equipment funded through the Applied Research and Tools and Instruments grant. Pursue opportunities to further enhance the college s research agenda in the area of agri-business, advanced manufacturing, and craft brewing. Develop an updated Strategic Research Plan. Explore opportunities to participate in the recently announced Social Innovation Fund for colleges, which will be administered through the Social Sciences and Humanities Research Council of Canada. Implement an Ontario Council on Articulation and Transfer research project dealing with credit transfer. Develop a minimum of seven partnerships or agreements with universities and other colleges that establish new student pathways, including new opportunities for university graduates to pursue college studies that better prepare them for securing careers. Develop new opportunities for faculty, staff and domestic students to gain international experience. Participate in new strategic international recruitment events run by agents, the Canadian government and partner organizations. Activities will be expanded into new markets in Africa, Russia and Eastern Europe. Implement a new Community Outreach plan that will allow the college to be more strategic and focused on core priorities with its community activities. Participate in an online collaborative reference service with 10 other Ontario college libraries. Raise $1 million for the completion of the CFF landscaping. Develop a memorandum of understanding with UOIT about staffing within shared services. Alignment to the Strategic Plan Our Students Our Business Our Community To provide students with the best possible learning experiences by offering new opportunities for experiential learning, fostering greater mobility within the post-secondary system and ensuring all necessary supports are in place. To be prudent stewards of all resources so that we are financially responsible, demonstrate good governance and are system leaders in making decisions that support outstanding teaching and learning. To ensure the college, in all its actions and decisions, is contributing to the economic and social prosperity of our communities. durhamcollege.ca/businessplan 5

6 Student-focused teaching and learning DC faculty and staff take great pride each day in living the college s mission that the student experience comes first. They understand teaching and learning for the 21st century is different than at any point before. In , Durham College will begin to implement its new academic vision and introduce new support services and resources to foster student success. It will: Finalize and begin implementation of a renewed Academic Direction The Road Ahead. Develop standards for hybrid programs from which a strategy for future development can be derived. Build on the success of current practices and develop a model framework that will allow the college to further strengthen its approach to program prioritization. Develop one or two model courses that will lead to a template that can be used to redesign, in the coming years, all DC courses offered through OntarioLearn. Offer 15 to 20 new programs through Continuing Education, with a focus on online courses and programming at the CFF. Support Ontario Online course development by implementing a $525,000 project to develop seven new courses. Introduce a pilot project that connects students with campus coaches to set goals and identify strategies for academic, personal and professional success, from admission to graduation. Complete a full redesign of the communications curriculum across all programs including the development of material for hybrid and online learning components and a communications plan to inform all relevant stakeholders of the implementation strategy. Complete a new hybrid and online components for the Office Administration program, allowing for increased enrolment. Finish more than two years of work and achieve ministry approval for the launch of the college s first-ever four-year degree programs: Bachelor of Health Care Technology Management and Bachelor of Behavioural Sciences. Expand academic support service delivery locations and methods to meet growing populations in Whitby and Pickering, with attention on support for accounting and math. Complete an Academic Information Technology Strategic Plan. Launch four new post-secondary programs (Event Management; Hospitality Skills; Activation Coordination in Gerontology; and Journalism Broadcast and Electronic Media) and two new fast-track delivery models for two existing programs (Law Clerk Advanced and Mechanical Engineering Technician Non-Destructive Evaluation). Conduct a review of and then develop a plan forward for apprenticeship programs. Pilot a new, web-based course outline tool. Improve transparency and efficiency of the credit transfer process. Alignment to the Strategic Plan Our Students Our People Our Community To provide students with the best possible learning experiences by offering new opportunities for experiential learning, fostering greater mobility within the post-secondary system and ensuring all necessary supports are in place. To capitalize on the vast experiences and expertise of our people and help them make the best possible contribution towards the student experience. To ensure the college, in all its actions and decisions, is contributing to the economic and social prosperity of our communities. 6 durhamcollege.ca/businessplan

7 Core institutional priorities Continuing to grow strategically, developing new partnerships and further advancing academic excellence are all key areas of focus for DC in Additionally, the college will introduce a number of other initiatives and actions in the year ahead to best support students, staff, faculty and the community: system averages in regards to full-time, sessional, partial load and parttime faculty. Develop and submit applications for various categories of the Top Employer Awards. Conduct three lockdown simulation exercises at campuses and other college locations. Play a leadership role in the rollout of Accessibility for Ontarians with Disabilities Act standards and related training, policies and procedures. Monitor and assess the current campus identification program, ensuring there are appropriate technical resources to adequately meet the existing and future planned level of activity. Create and implement a new strategic Continuing Education marketing program using website, print and marketing strategies. Review results of the employee engagement survey and present strategies, actions and plans based on those findings to the Board of Governors. Realize a change in the average Durham College Key Performance Indicator (KPI) score that is better than the average change in the college system, when measured across the five core benchmark areas. Demonstrate fiscal responsibility by achieving a balanced budget. Begin work on an information security framework. Implement a solution to more effectively manage mobile traffic on the network. Implement a computerized maintenance management system. Implement changes and best practices regarding organization operational policies and procedures that will position Durham College as a leader in this area. Provide students with additional dining options by establishing agreements to have campus Flex dollars accepted at a minimum of six off-campus restaurants. Redesign the look of the Oshawa campus bookstore and investigate new commercial opportunities including the sale of items from the Pantry. Deliver a range of support services specific to the needs of international students including orientation, housing assistance and advice on immigration-related issues. Create and implement an enhanced international student recruitment program by utilizing electronic media and stronger relationship-marketing strategies. Implement a media relations strategy with an emphasis on earned media and enhanced media engagement to ensure Durham College is the go-to source for media requests. Develop a plan to review and then implement actions and recommendations that will increase institutional knowledge of privacy laws. Implement the next stages of records management for the college, specifically a finalizing of records management procedures, completed file plans and organization of all electronic files. Review and assess processes to ensure the best candidates possible are being hired for all college vacancies and that hiring practices reflect Alignment to the Strategic Plan Our Students Our People Our Business To provide students with the best possible learning experiences by offering new opportunities for experiential learning, fostering greater mobility within the post-secondary system and ensuring all necessary supports are in place. To capitalize on the vast experiences and expertise of our people and help them make the best possible contribution towards the student experience. To be prudent stewards of all resources so that we are financially responsible, demonstrate good governance and are system leaders in making decisions that support outstanding teaching and learning. durhamcollege.ca/businessplan 7

8 Challenges to the realization of Business Plan objectives The DC Business Plan has multiple objectives within four high-level goals that are designed to propel the college forward in the year ahead. The success of the plan will be realized through engagement and commitment by all faculty and staff, regular reviews of deliverables, reports to the Board of Governors and focused college leadership. As required by the provincial Minister s Binding Policy Directive, colleges must identify potential challenges to realizing success with the business plan objectives. These challenges are recognized as being outside the direct control of DC and could potentially result in one or more objectives not being achieved. These include: Competition with Durham Region one of the fastest growing areas of Ontario and with DC s enrolment growing at a faster rate than any other in the system over the past number of years, other colleges may target the region for their recruitment. Economic climate slow economic growth and competing demands for fundraising dollars in the community could have an impact on achieving fundraising targets. Enrolment failure to realize enrolment targets, both domestically and internationally, would impact on the college s budget. Funding levels less than budgeted or anticipated funding would result in the college not being able to fully deliver its agenda. Government priorities a change in government could result in changes to funding or policy priorities and impact the college s ability to balance its budget. Provincial approvals for new programs failure by the provincial government to remove its temporary freeze on new programs or provide timely ministry approval and/or related funds would impact the college s ability to introduce new programs in areas of demand by employers. 8 durhamcollege.ca/businessplan

9 Budget durhamcollege.ca/businessplan 9

10 Overview Durham College is presenting a balanced budget The budget includes targets to increase domestic and international enrolment. Total student population for fulltime domestic, Second Career, international and collaborative nursing program students is expected to increase by 623 from 10,205 in fall 2013 to 10,828 in fall 2014, an increase of 6.1 per cent. The budget includes funding for the employment of eight new faculty and 10 additional staff, of which two are part-time to address the increase in student enrolment. Balancing the budget has been particularly challenging due to the following factors: Decrease in the operating grant: Government funding per weighted funding unit remained static at $4,358 from to when it decreased to $4,317 and it will further decrease to $4,275 for The impact of this decrease results in a further reduction in operating grant by $0.2 million for Further, assuming an increase of 3 per cent in line with the increase in salaries and benefits each year, the gap created by the operating grants since reaches to $7.6 million in Colleges are being asked by MTCU to offset this reduction through efficiency improvement. Continuation of international student recovery from : Effective , MTCU implemented an international student recovery fee of $750 for every new international student. This fee was recovered through a reduction in the operating grant. Starting from , the international recovery fee will be applicable to all new and flow-through international students. The institution also now pays a municipal tax of $75 for payment in lieu of taxes for each international student. Due to the very competitive international student market, Durham College has not increased international student fees to offset this additional expense of $0.356 million. Small, Northern, Rural (SNR) grant: The SNR grant of $0.543 million was reduced to $0.271 in and eliminated in Tuition fees: The budget has been developed with an increase of 3 per cent to tuition fees based on MTCU s revised three-year Tuition Policy Framework (TPF), which began in In years prior to , the TPF had allowed for an annual five-per cent increase. Introduction of new programs: The introduction of six new programs in fiscal is forecasted to realize a net negative contribution of $0.1 million (eight per cent), as opposed to the, at minimum, positive 35 per cent overall contribution expected from all recurring programs. Only full tuition and student-related fee revenues will be realized in A portion of the General Purpose Operating Grant (GPOG) funding will be received in and the full GPOG funding will be realized in the subsequent year for these six programs. Budget gap closed The budget gap created by these challenges was closed through the collaborative efforts of the college s academic schools and service departments. This was accomplished via a thorough process of examination of all revenues and expenses and increased revenues from domestic and international enrolment growth. The budget includes funding that supports the college s business plan, meets the college s requirements for maintaining and improving the quality of academic programs and supports curriculum renewal and new program development. Actual Actual Budget Change over Enrolment GPOG funded 8,354 9,181 9, % Second Career program % International students % Collaborative nursing % Total 9,349 10,205 10, % Apprenticeship 1,320 1,219 1, % 10 durhamcollege.ca/businessplan

11 Durham College s post-secondary full-time domestic enrolment is targeted to reach 9,753 students in fall 2014, an increase of 572, or 6.2 per cent from the previous year. Six new programs will be introduced in including: Program name Duration Credential Activation Coordination in Gerontology One year Graduate Certificate Event Management One year Graduate Certificate Journalism Broadcast and Electronic Media Two years Ontario College Diploma Hospitality Skills One year Ontario College Certificate Law Clerk Advanced (fast-track) Three semesters Ontario College Advanced Diploma Mechanical Engineering Technician Non-Destructive Evaluation (fast-track) One year Ontario College Diploma These new programs are expected to contribute 106 students to the fall 2014 enrolment and 87 students to the winter 2015 enrolment. The following table presents fall semester post-secondary domestic full-time enrolment by academic schools: Actual Budget School Change Business, IT & Management 1,573 1, % Health & Community Services 1,681 1, % Interdisciplinary Studies & Employment Services % Justice & Emergency Services 1,493 1, % Media, Art & Design 1,537 1, % Science & Engineering Technology 1,047 1, % Centre for Food % Skilled Trades, Apprenticeship & Renewable Energy % Total 9,181 9, % durhamcollege.ca/businessplan 11

12 The Second Career program is forecasting an enrolment of 125 students, compared to 127 students in the previous year. The college s international education strategy is based on the recruitment of students to its campuses through a network of agents in targeted countries. International enrolment in fall 2014 is targeted to reach 400 students, as compared to 344 students the previous year, a 16.3-per cent increase. Enrolment in the Durham College-University of Ontario Institute of Technology (UOIT) Collaborative Bachelor of Science in Nursing program is expected to decrease slightly to 550 full-time equivalents in fall 2014, due to capacity limitations in this program. Post-secondary full-time enrolment, including Second Career, international and collaborative nursing students in fall 2014 is targeted to be 10,828. A total of 1,257 apprenticeship training students are expected to attend programs at the Whitby campus. This figure is 38 students or 3.1 per cent higher than In addition, 722 academic upgrading, 19,000 continuing education registrants and 1,800 secondary school students through the School-College Work Initiative are expected for Operating budget assumptions Operating grants Tuition fees Salaries and benefits full-time faculty Salaries and benefits contract faculty Salaries and benefits support staff Salaries and benefits administration Annual cost of interest Funding for base and growth funding units, according to the current funding formula with the decrease of $42 per weighted funding unit. 3 per cent overall increase for all programs as per the tuition fee policy announced by MTCU in Adjustment for collective agreement and step increases. The current collective agreement expires on August 31, Estimated inflationary adjustment. Adjustment for collective agreement and step increases. The current collective agreement expires on August 31, Estimated adjustment in pay bands and progress within pay bands based on performance. 4.0 per cent 12 durhamcollege.ca/businessplan

13 In-year college revenues and expenses for (forecast) and (budget) are presented below. Schedule of revenues and expenses Actual Forecast 1 Budget Variance budget $000s to forecast 2 Operating grants 47,388 48,961 51,485 2,525 Tuition fee revenue domestic 31,027 34,614 37,541 2,927 Apprenticeship training revenue 3,085 2,900 2,900 - International education revenue 3,910 4,189 4, Corporate training revenue 7,663 7,405 8, Other academic revenue 8,750 9,370 10, Total academic revenues 101, , ,729 7,290 Academic salaries and benefits 56,011 60,405 64,053 (3,648) Academic operating expenses 10,890 10,118 11,966 (1,848) Total academic expenses 66,902 70,523 76,019 (5,496) Academic contribution 34,921 36,916 38,710 1,794 Academic contribution margin 34.3% 34.4% 33.7% n/a Net funds allocated for services (28,930) (31,750) (34,445) (2,694) Ancillary operations 8,090 8,382 8, Other corporate revenues (expenses) (1,671) (1,116) (1,390) (274) Net amortization expense (7,938) (8,443) (8,633) (189) Interest expense (4,131) (3,964) (3,112) 851 Central revenues (expenses) (5,650) (5,140) (4,266) 874 In-year surplus (deficit) (0) (26) 1 Based on year-to-date activity and projections at February 28, Figures in brackets represent unfavourable variances. durhamcollege.ca/businessplan 13

14 Variance analysis between forecast and budget Operating grants: $2,525K (5.2 per cent) increase is due to post-secondary full-time enrolment growth in and Tuition fees: $2,927K (8.5 per cent) increase in full-time domestic tuition fee revenues is due to the combined effect of the tuition fee increase of three per cent and the enrolment increase of 6.2 per cent, partially offset by the relatively flat part-time student tuition fees. Apprenticeship revenue: no change is estimated in apprenticeship grant revenue due to per diem rates and classroom fees that have remained at a constant $67.35 since Declining enrolments are offset by student demand in the culinary apprenticeship program. International education revenue: $439K (10.5 per cent) increase is the result of additional students, offset by the new international student recovery fees, establishment of a tuition set-aside reserve for scholarships and bursaries and an increase in agent commissions. Corporate training revenue: $602K (8.1 per cent) increase in corporate training revenue is primarily attributable to the development of new business. Other academic revenue: $798K (8.5 per cent) increase is attributable to increases in student incidental fees due to a projected enrolment increase. Academic salaries and benefits: $3,648K (6 per cent) increase in academic salaries and benefits is the result of estimated increases for the new collective bargaining agreement for faculty and support staff and additional faculty hires. With the increase in enrolments, eight new faculty and five new support staff will be hired to the various schools. In addition, an inflationary adjustment has been provisioned for part-time faculty. Academic operating expenses: $1,848K (18.3 per cent) increase in academic operating expenses is due to an increase in new program offerings and increased costs for Employment Services, which are offset by associated revenues. Academic contribution margin: As the result of the changes explained above, the academic contribution margin improved from $36,916K in to $38,710K in This represents a decrease in the margin from 34.4 per cent in to 33.7 per cent in Net funds allocated for services: $2,694K (8.5 per cent) increase is primarily due to the investment of five additional positions to support growth on campus and annualization of operating costs for the CFF. Cost increases are also due to the inflationary salary adjustments for support staff and administrative employees. Termination of shared operations with UOIT for the Centre for Students with Disabilities, health-care services and insurance and risk management have made an additional impact on cost increases in the budget this year. A listing of net funds for services by service area is provided below. Actual Forecast Budget Variance budget $000s to forecast Library and other academic support (3,853) (4,549) (5,006) (456) Student Affairs (3,416) (3,724) (4,205) (481) Office of the Registrar (2,565) (2,728) (3,033) (305) Finance (2,473) (2,842) (3,058) (216) Communications and Marketing (2,740) (2,902) (2,878) 23 Information Technology Services (3,559) (3,972) (4,286) (314) Facilities (6,496) (7,208) (7,836) (628) Human Resources (2,351) (1,915) (2,085) (171) Campus Safety (663) (1,066) (1,106) (41) President s office and Board of Governors (BOG) (815) (844) (951) (106) Total (28,930) (31,750) (34,445) (2,694) 14 durhamcollege.ca/businessplan

15 Ancillary operations: $487K (5.8 per cent) increase is primarily attributed to the improvement in parking operations and increased profits for the residence. Other corporate revenues and expenses: $274K (24.6 per cent) increase in other corporate revenues and expenses is primarily due to the following: Elimination of one-time tax recovery grant ($578K unfavourable). Full-year costs for Campus Corners building lease ($66K unfavourable). Increase in legal fees provision ($50K unfavourable). Increase in miscellaneous revenues ($391K favourable). Net amortization expense: $189K (2.2 per cent) increase is due to the annualization of the CFF amortization and the additional capital investment for , which is not offset by additional revenues received. Interest expense: $851K (-21.5 per cent) decrease in interest expense is the result of lower interest rates obtained on the mortgage renewals for the Student Centre and South Village residence. Risk and opportunity assessment The budget was prepared through extensive consultation with the academic and service areas of the college. There is sufficient detail associated with this budget from an operational perspective to allow for effective control and monitoring of each budget unit and item. The primary risks in the budget can be summarized as follows: Post-secondary domestic and international enrolment: The achievement of domestic and international post-secondary enrolment targets depends on certain factors that are beyond the control of the college, including demographic trends, state of the regional economy and competitive factors. A 5 per cent change in domestic enrolment is calculated to have an impact of approximately $1.1 million on the budget. A 10 per cent change in international revenues creates a $0.45 million impact on the budget. Tuition set-aside allocation for overhead: In previous years, MTCU s Tuition Fee Set-Aside Guidelines have allowed for a 5-per cent allocation of tuition set-aside reserve to fund overhead. With the revised guidelines, it is proposed that this allocation will increase to 20 per cent to provide greater flexibility for colleges to use these funds as required. The impact of this change is $0.4 million to the budget, however this is yet to be confirmed by the ministry. School of Skilled Trades, Apprenticeship & Renewal Technology: Several post-secondary and apprenticeship programs within this school are experiencing a decline in enrolment resulting in a contribution loss. The program contribution is in the process of a review and a strategy will be developed to address any further loss. Shared services overhead: Although final calculations have been prepared, an agreement has not yet been reached with UOIT in regard to the annual overhead allocation for shared services. The budget assumes an allocation of $0.7 million for shared services overhead. Collective agreements: Both the full-time faculty and full-time support staff collective agreements expire on August 31, Negotiations are not scheduled to begin until June The validity of the budget assumptions on full-time faculty and support staff salaries is subject to the conclusion of these negotiations. The budget does not include any contingency allowance however the college was able to allocate $903K to various leadership and strategic initiatives including new program development. An additional $752K was allocated toward new hires. Eight new faculty will be hired to the various schools to match increasing enrolment in those schools directly related to new programs. Further, 10 new staff positions will be added to strengthen the academic delivery and services provided to students. The actualization of the budget will be closely monitored on a monthly basis and reported to the Audit and Finance Committee of the Durham College BOG. Any unforeseen budget pressure will first be mitigated by deferring the implementation of the strategic initiatives to the following year. Budget reduction measures will be implemented across the college if a probable budget deficit is foreseen during monthly budget reviews. Projection for fiscal year In line with the assumptions presented below, the college projects a deficit of $152K for the fiscal year. This indicates a potentially viable college operation provided that the conditions created by the budget can be sustained in Post-secondary domestic enrolment growth 4.0% increase Operating grants 5.0% increase Tuition fees 3.0% increase Annual cost of interest 4.0% Schedule of operating revenues and expenses Forecast 1 Budget Projection $000s Total academic revenues 107, , ,744 Total academic expenses 70,523 76,019 78,134 Academic contribution 36,916 38,710 40,610 Academic contribution margin 34.4% 33.7% 34.2% Net funds allocated for services (31,750) (34,444) (35,821) Central revenues (expenses) (5,140) (4,266) (4,941) In-year surplus (deficit) 26 0 (152) 1 Based on year-to-date activity and projections at February 28, Figures in brackets represent unfavourable variances. durhamcollege.ca/businessplan 15

16 Capital Expenditures budget Total capital expenditures for the fiscal year are budgeted at $9 million. The following table shows the distribution of the Capital Expenditures budget to major capital expenditure projects and the available funding from external sources. Budget Forecast 1 Budget $000s Available funding College Equipment Renewal Fund Facilities Renewal Fund Apprenticeship Enhancement Fund OPG donation Funded from AFHC fee Fiscal Sustainability Fund Residence reserve Aboriginal Fund Federal Government Accessibility Grant Total funding 1,640 2,128 2,689 Academic Apprenticeship projects Pickering Learning Site Total academic 1,218 1,082 1,102 Total student services and general administration ,140 Total information technology (IT) 2,100 2,350 2,200 Renovations 1,212 1,083 2,000 Road upgrade, landscaping, parking and signage Deferred maintenance Ancillary services CFF spending over original scope CFF landscaping and greenhouse Residence renovations Total facilities 2,865 3,292 4,333 Accessibility pool Contingency Total expenditures 6,824 7,370 9,000 Funded from college resources (5,184) (5,242) (6,312) 1 Based on year-to-date activity and preliminary projection at February 28, durhamcollege.ca/businessplan

17 The capital expenditures for the academic schools and functional areas include the following: General renovation projects IT School of Business, IT & Management School of Continuing Education School of Health & Community Services School of Justice & Emergency Services School of Media, Art & Design School of Science & Engineering Technology School of Skilled Trades, Apprenticeship & Renewable Technology Student services and general administration Renovations to the second floor of the L-wing, second floor of the C-wing, Room G213, additional computer lab at the Whitby campus, and the Whitby campus library. Implementation of Banner modules for Financial Aid and Awards, continuation of the Banner Revitalization initiative, operational data store and multiple enterprise platforms, wireless network controller redundancy, voic upgrade and computer equipment and lab refresh. Replacement of IT equipment for the Computer Systems Technician and Technology programs. Replacement of industrial sewing machines. Dental clinic equipment, models and ergometers. Replacement of monitors, defibrillators and lifepaks. New equipment, conversion of space. Patient simulator, safety analyzers and a fluorescence pectrophotometer. Hot water tanks, cargo hammer drills, furnaces and refrigerator system demonstrators. Athletic space and equipment at Whitby campus, recruitment booth enhancements, additional CCTV coverage on campus, a donor wall of honour and a computerized maintenance management system. durhamcollege.ca/businessplan 17

18 Capital expenditure projection for fiscal year The capital expenditures currently planned for fiscal year include the planning and design for continued renovations at the Oshawa and Whitby campuses for $2.0 million and deferred maintenance for $0.6 million. The balance of the capital expenditures will be planned during the preparation of the budget. Cash flow Cash flow from operations is estimated to be sufficient to pay for the planned capital expenditures however some funding may be required for working capital and some of the externally funded projects due to the differences between the time that funds are received and spent. A total of $3,431K is allocated for the principal payment in long-term debt. The college has a total $11.0 million line of credit and will have to use a portion of this facility due to the seasonality of the student revenues. The following table shows the budgeted cash flow for fiscal year. Budget $ Comments Cash flow from operations 8,983 Impact of adding back non-cash amortization expense and vacation accrual. Cash flow from working capital 550 Decrease in accounts receivable and increase in accounts payable. Investing activities (9,000) Capital expenditures. Deferred contributions 2,689 Deferred capital contributions and restricted contributions for capital. Re-payment of long-term debt (3,431) Principal payment on long-term loans. Net cash flow (209) Conclusion Durham College is presenting a balanced budget for despite significant funding reductions. The primary factor behind this achievement is the continuing increase in domestic and international enrolment. The budget targets are tight but achievable. The principal objective of the budget is to expand operating activities and enhance the academic quality and occupational relevance of the academic programs. The budget allows for the continuation of all existing academic programs and the introduction of six new programs. The budget also supports the college s business plan priorities for Major budget risks include the achievement of domestic and international enrolment targets and uncertainty regarding full-time support staff and fulltime faculty collective agreements. There is no contingency allowance in the budget, however funding is provided for strategic and leadership initiatives and new program development. The proposed capital budget provides $9 million for capital expenditures in fiscal including an investment in academic resources, IT and ongoing infrastructure investment. Of this amount $2.7 million will be funded from external sources and the remaining $6.3 million will be funded from the operational cash flow of the college. The projected cash flow indicates that the college will be able to sustain its operations without requiring additional external financing. As well, the college will be able to further reduce its previous long-term borrowing by $3,431 million in

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