Durham College. Business Plan

Transcription

1 Durham College Business Plan

2 Index Introduction... 4 Responsible, strategic growth... 5 Dynamic partnerships... 6 Student-focused teaching and learning... 7 Core institutional priorities... 8 Challenges to the business plan objectives Budget... 10

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4 Introduction Durham College has firmly established itself as a community builder over its 45-year history. Given its vast range of academic programs and training all determined in close partnership with employers Durham College has a direct impact on the social and economic well-being of virtually every facet of its rapidly growing communities. That reputation and track record of post-secondary excellence will continue to grow in the coming year as the college achieves a number of significant milestones, including the exceeding (two years ahead of schedule) of its 10,000 full-time postsecondary enrolment goal, the opening of its unique Centre for Food, the launch of a new strategic plan, and even more opportunities for students from every walk of life to pursue a quality post-secondary education that results in rewarding careers. The Business Plan has been developed to build upon the significant momentum of the past few years, and also to begin the process of implementing the objectives established within the proposed Strategic Mandate Agreement (SMA) that was submitted to the provincial government in Fall The SMA was developed with feedback and input from more than 200 internal and external partners, including students, and has served as the basis for the college s new Strategic Plan, which is being launched in Spring An additional 100 people were consulted in the drafting of the Strategic Plan, which serves as the highreaching guide to the annual Business Plan. The college has set a series of objectives and activities for the year ahead that when fully implemented will ensure success within the four key goal areas of the Business Plan: Responsible, strategic growth; Dynamic partnerships; Student-focused teaching and learning; and Core institutional priorities. Taken together, realization of these four goals will allow growth in the college s physical infrastructure and resources, its partnerships, the way it teaches, its human resources, and ultimately its reputation. The Durham College Business Plan was approved by the Durham College Board of Governors at its April 10, 2013 meeting. 4 durhamcollege.ca/businessplan

5 Business Plan goal: Responsible, strategic growth Durham College is Ontario s fastest growing college and this rate of growth is projected to continue well into the future. It has realized this standing by offering highquality programs, extensive supports and expertise in and outside the classroom, and a well-rounded student life experience. This growth has allowed the college to introduce new programs in fast-growing areas of the economy, extensively renovate the campus to create new learning and social areas, and add dozens of new employees to better serve students. The year ahead will see the college grow in students, faculty, staff, resources, and partnerships, allowing it to continue to further its reputation as a college of choice. In Durham College will: Develop a new Strategic Enrolment Management plan for that will allow the college to grow strategically beyond 10,000 students, while still considering its current space constraints. Complete construction on the Centre for Food and welcome the first class of students in September Complete a new campus master plan with UOIT that will allow both postsecondary institutions to grow strategically into the future. Increase the college s overall utilization of learning space by expanding the learning day from 8 a.m. to 6 p.m. to 8 a.m. to 9 p.m., where required. Streamline the process for applying for credit transfer by implementing recommendations of the Credit Transfer Working Group. Further access to student services by launching Q-nomy online appointment and event booking system. Upgrade campus connectivity through investment in wireless technology at the Whitby campus and Simcoe building. Determine stability and reliability of campus IT network through a network vulnerability assessment. Respond to the growing demand for skilled employees by securing Technical Standards and Safety Authority (TSSA) approval and developing three new apprenticeship programs Developmental Service Worker, Institutional Cook and Gas Fitter. Implement Whitby campus three-year student services plan to support new programming model and increased student population. Implement a mental health strategy, including new community partnerships, to support student success and safety. Invest in the following IT software that will allow for additional resources that better support, understand and meet the needs of students: Banner Financial Aid Banner Enterprise Data Warehouse Banner Operational Data Store Further communication channels with students by increasing the number of digital signage monitors in the Gordon Willey building by four and at the Whitby campus by three. Alignment to the Durham College Strategic Plan: Our Students 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. Our Business 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. Our Community 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 Business Plan goal: Dynamic partnerships Durham College is driven and energized by its partnerships. These partnerships allow the college to offer high-quality education, enhance the economic and social well-being of its communities and provide financial support to students. The year ahead will see renewed emphasis on capitalizing on the unique relationship between the college and UOIT, spurring new ideas and growth in the community and helping small- and medium-sized enterprises innovate and flourish through applied research. In Durham College will: Develop a plan for the diversification of training and growth of Corporate Training Services. Participate in the Core21 Incubation Centre to investigate new ways to benefit the college s entrepreneurial students. Working with UOIT, begin establishing a laddering model that will foster student mobility from apprenticeship to PhD. Develop with UOIT and submit to government plans to fund construction of a joint health services centre proposal, Campus Library expansion and a new administrative office complex. Pursue new funding opportunities with the Applied Research and Development (ARD) grant available through Natural Sciences and Engineering Research Council of Canada (NSERC) and the Technical Problem Solving (TPS) grant available through the Ontario Centres of Excellence (OCE) to do industry-led research partnerships with local businesses. Pursue new fields of research in the agriculture/horticulture sector and initiate at least two research projects at the Centre for Food with anticipated FedDev funding. Implement the $45,800 research project funded by the Higher Education Quality Council of Ontario (HEQCO) to pilot a student success eportfolio across selected health programs. The project is designed to assess the development of essential employability skills by students. Implement the $265,000 ONCAT-funded joint research project involving Durham College, George Brown College, UOIT, and Trent and Nipissing universities. The project is designed to assess the student experience and challenges in transitioning from college to university academic pathways. Implement the $123,000 ONCAT-funded research project designed to assess the Effectiveness of Ontario college preparatory programs offered at Durham College. Begin to implement the Durham Learning and Business Innovation Park (dlab) plan by establishing a not-for-profit corporation with dlab partners that will allow for the public launch of the project to advance the social and economic elements of the vision. Support the importance of two-way student mobility by increasing by five per cent the number of UOIT graduates enrolling in Durham College programs from 192 in Fall 2011 and Durham College students enrolling in UOIT programs from 215. Develop a joint Durham College-UOIT marketing plan for academic pathways between the two institutions. Alignment to the Durham College Strategic Plan: Our Students 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. Our Business 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. Our Community 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 Business Plan goal: Student-focused teaching and learning The proliferation of information technology is transforming the delivery of post-secondary education. Whether it s through digital textbooks, open courses available on the Internet, or hybrid and online courses, teachers and students have access to information in a way that is new in this century. In the year ahead, Durham College will continue its commitment to experiential learning opportunities and the use of technology to support and enhance the learning experience for students. In Durham College will: Realize a cumulative improvement of three per cent over 2013 in the five benchmark areas of the provincial government s key performance indicator surveys. Further leverage the tools available on DC Connect to assist faculty in the classroom by offering four training sessions through the CAFE. Pursue opportunities for students to develop e-portfolios through the investigation of an electronic tool. Better utilize available space across the institution by completing the move of nine programs from Oshawa to the Whitby campus. Engage 20 to 25 faculty in training and delivery of courses offered in a hybrid format that combines hands-on lab time with online learning and real-world experience in the field. Begin the process of establishing uniform Communications course curriculum across all programs by mapping the current offerings and ensuring the uniform curriculum will meet the needs of the student population. Complete implementation of the Ontario Adult Literacy Curriculum Framework for Academic Upgrading. Begin a process that will see the review and updating of 15 Durham College OntarioLearn courses to ensure they are relevant and meeting the needs of learners. Establish principles of sharing with respect to educational learning objects, internally, and explore the establishment of an exclusive sharing partnership with three other colleges. Realize a successful Program Quality Assessment Process Audit (PQAPA) site visit by successfully meeting all six criteria. Enter into a virtual reference library service with 10 other colleges that will expand the number of resources available to students Alignment to the Durham College Strategic Plan: Our Students 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. Our People to capitalize on the vast experiences and expertise of our people and help them make the best possible contribution towards the student experience. Our Business 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. Our Community to ensure the college, in all its actions and decisions, is contributing to the economic and social prosperity of our communities. durhamcollege.ca/businessplan 7

8 Business Plan goal: Core institutional priorities Durham College has steadily grown its reputation as a post-secondary institution of choice over the past number of years. Each day, all employees live the college s mission that the student experience comes first. Along with growing programs, developing new partnerships and furthering its approach to teaching and learning, Durham College will take a number of other actions in the year ahead that will ensure it is living its mission. These actions will further support the college s students, staff, faculty, approach to business and its impact in the community. In Durham College will: Expand the college s part-time hiring project to all academic schools so as to realize greater support for associate deans, automation, and eliminate data duplication. Launch an Accessibility for Ontarians with Disabilities Act (AODA) awareness campaign in Fall 2013 so that everyone in the campus community understands the importance of this legislation and being an inclusive college. Complete three lockdown exercises that will help prepare the campus communities for safe and effective response to an emergency or crisis situation. Prepare for and complete an employee engagement survey in Winter 2014 that will provide greater understanding of the needs of the college family. Produce and distribute a Health and Safety handbook/manual that will set out the specific expectations, responsibilities and requirements for all employees. Develop a student mobile application that includes campus way-finding capabilities. Realize content integration between the employee intranet (ICE), MyCampus, digital signage, the external corporate website and social media. Fully launch the I Heart DC committee and host one event per month, with a goal of further maximizing the student experience and creating an essence of appreciation and celebration on campus. Create a stewardship program that will increase the engagement and involvement of college donors and alumni. Complete the current $5 million fundraising campaign in support of the Centre for Food. Collaborate with Centennial College to raise $200,000 in support for the Pickering Learning Site. Demonstrate fiscal responsibility by achieving a balanced budget. Demonstrate college system leadership through the establishment of a new tuition set-aside fund that will be used to support the financial needs of international students. Implement the Student Affairs office restructuring and expansion plan. Alignment to the Durham College Strategic Plan: Our Students 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. Our People to capitalize on the vast experiences and expertise of our people and help them make the best possible contribution towards the student experience. Our Business 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. Our Community to ensure the college, in all its actions and decisions, is contributing to the economic and social prosperity of our communities. 8 durhamcollege.ca/businessplan

9 Challenges to the realization of Business Plan objectives The Durham College Business Plan establishes four high-level goals and a series of measurable objectives designed to realize these goals. The success of the plan will be realized by the engagement of 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. There are a few potential challenges outside the control of Durham College that may impact the achievement of one or more deliverables. These include: Competition with Durham Region the fastest growing area of the GTA and with Durham College s enrolment growth at higher levels than any other in the system, other colleges may target the region for their recruitment. Economic climate continued 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 and its long-term expansion plans. 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 provincial government leadership could result in changes to funding or policy priorities and impact on the college s ability to balance its budget. Outside contractors unexpected delays or failure to meet agreed-upon timelines could result in projects being delayed and impact on related plans. Provincial approvals for new programs failure to receive ministry approval and/or related funding would impact on the introduction of new programs. durhamcollege.ca/businessplan 9

10 Budget 10 durhamcollege.ca/businessplan

11 Overview: A balanced budget for The budget targets increases in domestic and international enrolment, with total full-time domestic, second career, international, and collaborative nursing student enrolment expected to increase by 564 from 9,362 in Fall 2012 to 9,926 in Fall 2013, an increase of six per cent. The budget includes funding for the employment of 15 new faculty and 20 additional staff to address this increase in enrolment. Total impact of these reductions on the budget is $0.9 million. Tuition fees: At the time of budget preparation, the institution had not received communication from MTCU with respect to the tuition policy framework. The budget has been developed based on the assumption that a three per cent tuition fee increase is likely. Introduction of new programs: The introduction of 11 new programs in fiscal is forecasted to realize a net negative contribution of $0.1 million (eight per cent), as opposed to a positive 30 per cent overall contribution expected from all recurring programs. Only full tuition and student-related fee revenues will be realized in as a portion of the general purpose operating grant funding will not be received until the subsequent year. Additional lease expense: The lease for the former day care space at Campus Corners is a Durham College commitment. It was occupied and paid for by UOIT in , however the university will be vacating the space for and the college will assume the liability for the lease commitments, which are $0.3 million annually. Pickering Learning Site: The annualized expense budgeted for the Pickering Learning Site is $0.375 million. The budget gap that was created by these challenges was closed with collaborative efforts from the academic schools and service departments through 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 of maintaining and improving the quality of academic programs, and supporting curriculum renewal and new program development. Balancing has been particularly challenging for the college due to the following factors: Decrease in operating grant: Government funding per weighted funding unit had remained static at $4,358 since and has decreased to $4,317 for , a reduction in operating grant of $0.432 million for Further, assuming an increase of three per cent in line with the increase in salaries and benefits each year, the gap created by the operating grants since reaches to $5.2 million in Colleges are asked by the Ministry of Training, Colleges and Universities (MTCU) to offset this reduction through efficiency improvement. Introduction of new international student recovery: Effective , MTCU has implemented an international student recovery fee of $750 for every new international student. This fee will be recovered through a reduction in the operating grant. Also, a municipal tax of $75 for payment in lieu of taxes will be paid by institutions 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 $0.2 million. Small, Northern, Rural (SNR) grant: The SNR grant of $0.543 million is being eliminated with reductions of 50 per cent in and the remaining 50 per cent in durhamcollege.ca/businessplan 11

12 Enrolment Durham College s post-secondary, full-time domestic enrolment is targeted to reach 8,896 students in Fall 2014, an increase of 518, or 6.2 per cent from the previous year. Eleven new programs will be introduced in : Architectural Technician; Architectural Technology; Broadcasting for Contemporary Media; Contemporary Media Design; Culinary Management; Electrical Techniques; Information Systems Security Computers and Networking; Mechanical Techniques Plumbing; Occupational Therapist Assistant/Physiotherapist Assistant; Project Management; and Special Events Planning. These new programs are expected to contribute 257 students to the Fall 2013 enrolment and 70 students to the Winter 2014 enrolment. In addition, the Web Applications for Mobile Computing and Horticulture Food and Farming programs, which were approved for but did not obtain sufficient enrolments, will be reintroduced in Fall 2013 if there is sufficient enrolment. The following table presents fall semester post-secondary domestic full-time enrolment by academic schools: Actual Budget School Change Business, IT and Management 1,516 1, % Health and Community Services 1,496 1, % Interdisciplinry Studies and Enrolment Services % Justice and Emergency Services 1,547 1, % Media, Art and Design 1,432 1, % Science and Engineering Technology 949 1, % Skilled Trades, Apprenticeship and Renewable Energy % Total 8,878 8, % The following table shows the breakdown of the estimated number of post-secondary and apprenticeship enrolment for the fall semester in comparison to and Change Actual Actual Budget over Enrolment GPOG funded 7,488 8,378 8, % Second Career program % International students % Collaborative Nursing Program % Total 8,332 9,362 9, % Apprenticeship 1,375 1,320 1, % 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 Funding for base and growth funding units according to the current funding formula, with the decrease of $41 per weighted funding unit. Tuition fees 3% overall increase for all programs tuition fee policy not announced by MTCU at the time of this report. Salaries and benefits full-time faculty Adjustment for step increases as per the current collective agreement. Salaries and benefits contract faculty $3,000 per 42-hour course. No change from Salaries and benefits support staff 1.75% economic adjustment as per the current collective agreement, plus step increases. Salaries and benefits administration Increase for progress in pay-band based on performance. Annual cost of interest 4.0% The Second Career program is forecasting an enrolment of 150 students, compared to 153 students in the previous year. This represents a decrease of three students over fall 2012 or -2.0 per cent. The international education strategy, which is based on the recruitment of students through a network of agents in targeted South and East Asian countries, was implemented in fiscal As a result of this initiative, international enrolment in Fall 2013 is targeted to reach to 350 students, as compared to 301 students a year earlier, an increase of 49 students or 16.3 per cent. Enrolment in the Durham College-UOIT Collaborative Bachelor of Science in Nursing program is expected to be 530 full-time equivalents in Fall Post-secondary, full-time enrolment including Second Career, international and collaborative nursing students in Fall 2013 is targeted to be 9,926, which is 564 or six per cent higher than fall A total of 1,303 apprenticeship students are expected this year, which is 17 students or 1.2 per cent lower than durhamcollege.ca/businessplan

13 In-year college revenues and expenses for (forecast) and (budget) are presented below. Schedule of revenues and expenses Variance Actual Forecast 1 Budget budget to $000s forecast 2 Operating grants 45,883 46,857 49,102 2,246 Tuition fee revenue - domestic 27,408 31,284 34,367 3,083 Apprenticeship training revenue 3,071 3,048 3, International education revenue 2,068 3,966 4, Corporate Training revenue 7,479 7,386 7, Other academic revenue 9,499 9,211 8,653 (558) Total academic revenues 95, , ,777 5,026 Academic salaries and benefits 52,378 56,350 58,863 (2,513) Academic operating expenses 9,785 10,671 11,089 (418) Total academic expenses 62,162 67,021 69,952 (2,930) Academic contribution 33,246 34,730 36,826 2,094 Academic contribution margin 34.8% 34.1% 34.5% n/a Net funds allocated for services (27,108) (29,112) (32,571) (3,459) Ancillary operations 7,820 7,990 8, Other corporate revenues (expenses) (56) (1,661) 85 1,746 Net amortization expense (7,754) (8,422) (8,552) (130) Interest expense (4,168) (4,199) (4,232) (33) Derivatives gain (expense) (1,698) Central revenues (expenses) (5,856) (6,291) (4,256) 2,037 In-year surplus (deficit) 282 (673) Based on year-to-date activity and projections at February 28, Figures in brackets represent unfavourable variances durhamcollege.ca/businessplan 13

14 Variances analysis between forecast and budget Operating grants: $2,246K (4.8-per cent) increase, due to post-secondary, full-time enrolment growth in and Tuition fees: $3,083K (9.9-per cent) increase in full-time domestic tuition fee revenues, due to the combined effect of the tuition fee increase of three per cent and enrolment increase of 6.2%, partially offset by the relatively flat part-time student tuition fees. Apprenticeship Revenue: $52K (1.7-per cent) small increase is estimated in apprenticeship grant revenue, due to an expected increase in per diem rates, which have remained at a constant $57.35 since It is normal to expect an increase in given the latest budget announcement from the federal government regarding skills training. Further, there is a projected increase in student demand in the culinary apprenticeship programs. International education revenue: $109K (2.8-per cent) increase in international education revenue, due to 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: $94K (1.3-per cent) increase in corporate training revenue, primarily due to the attraction of new business. Other academic revenue: $558K (-6.1-per cent) decrease, due to the reorganization of the Employment Services division in Uxbridge and Port Perry. Academic salaries and benefits: $2,513K (4.5-per cent) increase in academic salaries and benefits, due to collective bargaining for faculty and support staff and additional faculty hires. With the increase in enrolment, 15 new faculty will be hired. Academic operating expenses: $418K (3.9-per cent) increase in academic operating expenses, due to an increase in new program offerings. Academic contribution margin: As a result of the changes explained above, the academic contribution margin improves from $34,730K in to $36,826K in This represents an increase in the margin from 34.1 per cent in to 34.5 per cent in Net funds allocated for services: $3,459K (11.9-per cent) increase. Of 20 new staff positions approved in this budget, 13 have been allocated to support service growth on campus. Cost increases are also due to the inflationary salary adjustments for support staff and administrative employees.. A listing of net funds for services by service area is provided below. Net funds allocated for services: Actual Forecast Budget Variance $000s budget to forecast Library and other Academic support (3,081) (3,895) (4,683) (788) Student Affairs (3,352) (3,334) (3,941) (607) Office of the Registrar (2,299) (2,545) (2,795) (249) Finance (2,496) (2,474) (2,899) (425) Communications, Marketing and External Relations (2,824) (2,783) (2,964) (182) IT Services (3,017) (3,394) (4,121) (727) Facilities (6,473) (6,817) (7,474) (656) Human Resources (2,144) (2,315) (1,918) 398 Campus Safety (659) (741) (949) (208) President s Office and BOG (762) (813) (827) (14) Total (27,108) (29,112) (32,571) (3,459) 14 durhamcollege.ca/businessplan

15 Ancillary operations: $452K (5.7-per cent) increase, primarily due to the improvement in the parking operations. Other corporate revenues and expenses: $1,746K ( per cent) decrease, primarily due to the following: Introduction of revenues for shared services overhead ($700K favourable); Increase in tuition-set aside overhead allocation ($215K favourable); Elimination of operating expenses associated with 199 Wentworth ($293K favourable); Reduction in leadership contingency and strategic initiatives ($350K favourable); Property tax recovery from former capital projects ($500K favourable); and Expense for the former day care space ($308K unfavourable). Net amortization expense: $33K (0.8-per cent) increase, due to the capital investment for , which is not offset by additional revenues received. 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 surplus of $816K for the fiscal year, indicating a 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 6.0% increase Tuition fees 3.0% increase Annual cost of interest 4.0% Interest expense: $33K (0.8-per cent) increase in interest expense, due to increased usage of the line of credit facility. Risk and opportunity assessment The budget was prepared through extensive consultation with the academic and service areas. 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 the 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 five-per cent change in domestic enrolment is calculated to have a budget impact of approximately $1.1 million. A 10 per cent change in international revenues creates a $0.45 million impact. Tuition revenues: In previous years, the Tuition Policy Framework directed by MTCU has allowed for an annual five-per cent increase to tuition fees. The policy is currently under review, however no communication has been received with respect to the allowable increases for Based on discussions with other colleges, the Durham College budget is based on a three-per cent increase. A oneper cent change will create a $0.4-million impact on the budget. Tuition set-aside allocation for overhead: In previous years, the MTCU Tuition Fee Set-Aside Guidelines allowed for a five-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 to be confirmed by the ministry. School of Skilled Trades, Apprenticeship and Renewal Technology: Several post-secondary and apprenticeship programs within this school are experiencing a decline in enrolment resulting in a contribution loss. The program contributions will be reviewed and a strategy developed to address any further loss. Shared services overhead: Although discussions have taken place, agreement has not yet been reached with UOIT in regards to the annual overhead allocation for shared services. The budget does not include any contingency allowance, however the college was able to allocate $350K to various leadership and strategic initiatives including new program development. An additional $1.5 million was allocated towards new hires. Fifteen new faculty will be hired to match increasing enrolment in schools directly attributed to new programs. Further, 20 new staff positions will be added to strengthen the academic delivery and student services. The actualization of the budget will be closely monitored on a monthly basis and reported to the Audit and Finance Committee of the Board of Governors. Any unforeseen budget pressure will first be mitigated by deferring the implementation of strategic initiatives to the following year. Budget reduction measures will be durhamcollege.ca/businessplan 15

16 Schedule of operating revenues and expenses Forecast Budget Projection $000s Total Academic revenues 101, , ,519 Total Academic expenses 67,021 70,041 72,306 Academic contribution 34,731 36,993 40,213 Academic contribution margin 34.1% 34.6% 35.7% Net funds allocated for services (29,112) (32,482) (33,423) Central revenues (expenses) (6,291) (4,512) (5,976) In-year surplus (deficit) (673) Capital expenditures budget Total capital expenditures for the fiscal year are budgeted at $6.8 million to support academic programs, annual renovations and infrastructure investments. The following table shows the distribution of the Capital Expenditures Budget to major capital expenditure projects and the available funding from external sources Capital expenditures budget summary Budget Forecast 1 Budget $000s Available funding College Equipment Renewal Fund Facilities Renewal Fund Apprenticeship Enhancement Fund OPG donation Funded from AFHC fee Residence reserve Total Funding 2,198 2,214 1,640 Capital expenditures Academic Apprenticeship projects Pickering Learning Site Residental Lab Total Academic 1,574 1,937 1,218 Student services and general administration Total student services Other IT expenditures 1,460 1,088 1,975 Replace/upgrade LMS Wireless and wired network upgrade Total IT 2,700 2,314 2,100 General renovations 2,000 1,960 1,212 CFF spending over original scope Food services renovations Road upgrade, landscaping, parking and signage Deferred maintenance Total Facilities 3,086 3,097 2,650 Accessibility pool Residence renovations - Simcoe Village Contingency Total expenditures 9,408 9,164 6,823 Funded from college resources (7,210) (6,950) (5,183) 1 Based on year-to-date activity and preliminary projection at February 28, durhamcollege.ca/businessplan

17 The capital expenditures for the academic areas include upgrades to the CISCO servers and computer equipment for the School of Business, IT and Management; a lab for the Fire and Life Safety Systems program in the School of Justice and Emergency Services; new equipment for the Occupational Therapist Assistant/ Physiotherapist Assistant lab for the School of Health and Community Services; boiler installation for the School of Skilled Trades, Apprenticeship and Renewable Technology; and a new survey tool to support the Office of Research Services and Innovation. The capital expenditures at the Pickering campus include a food services addition deferred from fiscal Student services and general administration projects primarily include a new electronic medical records system, additional Code Blue stations and CCTB enhancement on campus; internal branding and digital signage; an updated recruitment booth; furniture refresh for classrooms and offices; and a new transport truck for Corporate Training Services. Information Technology projects include the implementation of newly purchased additional Banner modules for Student Financial Aid, Operational Data Store and Enterprise Data Warehouse; wireless network controller redundancy; data centre core switch upgrades; Whitby campus IT infrastructure upgrades; and computer equipment and lab refresh. General renovation projects include the first floor of the A Wing and former daycare space at Campus Corners. The Capital Expenditures Budget also includes provisions for additional audio visual equipment, a green wall and signage for the Centre For Food, another self-service Tim Hortons at the Oshawa campus, additional parking at the Whitby campus, and deferred maintenance. Whitby Phase 3 An additional $10 million in spending has been budgeted for the Centre for Food at the Whitby campus in The project is expected to be completed for September Actual Forecast Forecast Forecast Total Approved $ project budget Variance Fundraising 1,322 1,759 1, ,762 7,500 (1,738) Property sales 1,850-6,500-8,350 8, Borrowing and its repayment* - - 4,075 (1,200) 2,875 2, Total Funding 3,172 1,759 12,445 (389) 16,987 18,000 (1,013) Project cost 684 7,353 9,963-18,000 18,000 - Total expenditures 684 7,353 9,963-18,000 18,000 (0) Funded from college resources 2,488 (5,594) 2,482 (389) (1,013) - (0) * The college was approved for a term loan from the Ontario Financing Authority after project completion, repayable over four years. durhamcollege.ca/businessplan 17

18 Capital expense projection for fiscal year The capital expenditures currently planned for fiscal year include the planning and design for $2 million in continued renovations at the Oshawa campus 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 $3,093K is allocated for the principal payment in long-term debt. The cash flow projection shows an inflow of $3.2 million of cash for fiscal , assuming the sale of 199 Wentworth and the transfer of the Windfields Farm land to UOIT. The college has an $11 million line of credit and will have to use a portion due to the seasonality of the student revenues and funding of the Centre for Food. The following table shows the budgeted cash flow for : Budget $ Comments Cash flow from operations 8,552 Impact of adding back non-cash amortization expense Cash flow from working capital 475 Decrease in accounts receivable and increase in accounts payable Cash flow from sale of properties 6, Wentworth and transfer of Windfields land to UOIT Investing activities (16,571) Capital expenditures, including the Centre for Food Deferred contributions 3,295 Deferred capital contributions and restricted contributions for capital Financing activities 4,075 Term loan from OFA for CFF Repayment of long-term debt (3,093) Principal payment on long-term loans Net cash flow 3,233 Conclusion Durham College is presenting a balanced budget for despite significant funding reductions introduced by the provincial government. The primary factor behind this achievement is the continued 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 where possible. The budget allows for the continuation of all existing academic programs and the introduction of 11 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 the tuition fee increase. 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 $6.8 million for capital expenditures in fiscal , including an investment in academic resources, IT and ongoing infrastructure investment. Further, an additional $10 million has been budgeted for the continuing expansion of the Whitby campus. The projected cash flow indicates that the college will be able to sustain its operations without requiring additional external financing other than $4.1 million in borrowing for financing the Centre for Food. Conversely, the college will reduce its previous long-term borrowing by $3.093 million in durhamcollege.ca/businessplan

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20 2000 Simcoe Street North, Oshawa, Ontario, Canada L1H 7K4 T: