BUSINESS PLAN Conestoga College Institute of Technology and Advanced Learning

Transcription

1 BUSINESS PLAN Conestoga College Institute of Technology and Advanced Learning

2 MESSAGE FROM THE PRESIDENT Canada s workforce is in transition. Rapid technological advances are transforming industries and changing the nature of work, resulting in a growing mismatch between workforce needs and the skills and experience of available workers. According to a recent survey of CEOs across the country, the greatest challenge currently facing Canadian businesses is the shortage of skilled workers. While many businesses struggle to access the talent they need, many young people remain unemployed or underemployed, unable to translate their skills into productive employment and meaningful careers. At Conestoga, providing access to high quality, career-focused education and training to meet changing labour force needs has been central to our mandate since the establishment of the college almost 50 years ago. As our community has grown and changed, so too have our programs, facilities and learning models as we work to address the human resource needs of our region s comprehensive economy and prepare graduates for career success. In 2014, Conestoga concluded a Strategic Mandate Agreement with the Ontario Ministry of Training, Colleges and Universities that will guide the college s growth and development through 2017.This path is also reflected in our Strategic Plan. For , we will focus on making continued progress towards the realization of our vision of Conestoga as a world-class institute for career-focused learning and solutions-focused research. We will provide additional learning opportunities to both domestic and international students through targeted program and enrolment growth geared to workforce needs, and continue to explore new, technology-based initiatives that provide students with additional delivery options and flexibility to meet their learning needs. We will augment our established co-op education model with additional work-integrated learning opportunities that allow students to apply their skills and knowledge in a real-world context as they prepare for successful careers. We will support student success through strategic investment in additional staff resources and training to better meet the academic and social needs of our increasingly diverse student population, and continue to invest in equipment and facilities that support student success and enhance the student experience, including the completion of a new Recreation Centre and extensive renovations to the Library Resource Centre. We will provide leadership in applied research for such areas as Smart Manufacturing, Food Innovation and Technology and Seniors Care to support the needs of our growing community, and work with our government, industry and academic partners to develop our centres of innovation and excellence. As part of our commitment to excellence, we will continue to develop and refine the college s overarching quality framework that provides for the consistent and ongoing evaluation and strengthening of existing programs. Although the current funding structure for Ontario colleges continues to create fiscal challenges, our ongoing efforts to focus on cost containment, productivity improvement and additional revenue opportunities place Conestoga in a good position to address the community s growing need for careerfocused education and applied research that will ultimately lead to greater prosperity for our region and for Ontario. John Tibbits Conestoga College Business Plan 1

3 1. EECUTIVE SUMMARY The Business Plan summarizes activities and initiatives that are planned for the second year of Conestoga s current Strategic Plan and the Strategic Mandate Agreement ( ) (SMA). It builds off the successful outcomes of the prior year in achieving strategic priorities and goals in a fiscally challenging environment. The plan includes enrolment growth and new programming as well as the addition of new services and the enhancement of existing ones. It also provides for moderate investment in equipment and facilities while maintaining Conestoga s financial stability. Based on currently available information, the initial fiscal year projection results in a modest deficit of approximately $1.4 million or less than 1% of revenue. Conestoga s fiscal year resulted in a $2.5 million excess of revenue over expenditure, or approximately 1.3% of revenue. The SMA is a formal agreement between Conestoga and the Ministry that outlines Conestoga s role in Ontario s post-secondary education system and delineates how the college will build on current strengths to achieve its vision and help drive the provincial objectives articulated by the Ministry s Differentiation Policy Framework. The SMA is complementary to the Strategic Plan and consistent with Conestoga s strategic priorities and goals. It defines the Ministry s expectations and Conestoga s commitment to our differentiated role under the broad headings of: Jobs, innovation and economic development Teaching and learning (to expand learning opportunities for students, program delivery methodologies and experiential learning) Student population demographics Program offerings Institutional collaboration Enrolment growth Financial stability. These focus areas are consistent with Conestoga s strategic mission, vision and values as well as our strategic priorities, which include: Building capacity in enrolment and programming to better support prosperous communities Ensuring quality in educational programming and services Promoting sustainability through fiscal responsibility. The Business Plan provides for: Introduction of new programming responsive to labour market needs Further post-secondary enrolment growth of 3.2% for domestic students and 14% for international students in addition to our 50.8% growth over the past seven years Improved service levels to our learners Investment of more than $15 million in instruction and support equipment and facility improvements. As one of Ontario s fastest growing colleges, Conestoga faces significant challenges resulting from the calculation of the Provincial Operating Grant, which is based on the average enrolment of two and three years ago rather than on in-year activity. This disparity has resulted in no Provincial Conestoga College Business Plan 2

4 Operating Grant support this year for approximately 650 full-time post-secondary students at Conestoga, at a value of approximately $3.3 million (see Section 4.1). Funding for in-year enrolment growth at Conestoga would fully eliminate our $1.4 million budgeted deficit and allow for further improvements in programming and learner supports as well as additional investments in infrastructure and deferred maintenance needs. Over the past seven years, Conestoga s Fall post-secondary full-time enrolment has increased significantly, adding an additional 3,052 students. That total is the equivalent of adding an entire new college larger than the size of Lambton, Canadore or Loyalist to our existing institution (see Appendix B). Despite such growth, however, our full-time post-secondary enrolment would still need to increase approximately 30% (see Appendix B) to be equal in size to London s Fanshawe College, which serves a slightly smaller population. The primary driver for Conestoga s rapid growth has been our mandate to meet regional labour market needs and provide area students with equitable access to college programming. Skills shortages in the region also result in an ongoing need for up-skilling, language training and local credentialing of new immigrants to supplement the local workforce. The college s international graduates are also a potential resource for recruitment into the local workforce should they decide to apply for Canadian residency status. Conestoga s continued growth is essential for meeting the labour market needs of the communities we serve: the current Waterloo-Wellington population of approximately 750,000 is projected to exceed 1 million by Similar growth is anticipated in Brantford, where Conestoga introduced post-secondary programming in 2012, with the current population of 94,000 expected to reach 163,000 by As the only public college within these communities, Conestoga must also maintain a full breadth of programming to respond to regional labour market needs. This is consistent with Ministry expectations in the Strategic Mandate Agreement. The pace of enrolment growth will temper somewhat as many of the new buildings built under the Knowledge Infrastructure Program in 2011 begin to approach design capacity. Conestoga s growth is aligned with workplace needs and supports Ontario s goal of increasing post-secondary participation rates in programming that leads to fulfilling careers for graduates. Our consistently high rankings in provincial graduate placement surveys attest to the effectiveness of Conestoga s programming. As in previous years, Conestoga will continue to seek additional revenue opportunities and expenditure reductions during the fiscal year to eliminate the budgeted deficit. The modest inyear projected deficit, which could be financed from cumulative reserves, results from the need to invest in enrolment growth, responsive program development and high quality standards so that Conestoga can remain a contributor to the ongoing economic success of this region and Ontario. Conestoga has had a strong record of implementing in-year strategies to overcome initially budgeted deficits and delivering modest surplus results in four of the last five fiscal years. This same effort will be directed to improve the fiscal year actual results. Conestoga College Business Plan 3

5 2. INTRODUCTION The annual Business Plan is part of Conestoga s planning, reporting and accountability process. The key components and reports in the process are: Strategic Plan Strategic Mandate Agreement Annual Business Plan This report contains the fiscal year budget and identifies some of the major actions to be undertaken to implement the Strategic Plan and the Strategic Mandate Agreement. Annual Report This report charts Conestoga s achievement of the operational outcomes and budget as compared to the Business Plan. The Annual Report also contains a report back on Conestoga s Strategic Mandate Agreement with the Ministry of Training, Colleges and Universities. 3. STRATEGIC PRIORITY FOCUS Conestoga s Strategic Plan and Strategic Mandate Agreement (SMA) set out the context for the Business Plan. As the objectives of the Strategic Plan and SMA are substantially congruent, they have been grouped into four categories to demonstrate some specific actions or investments in that demonstrate the alignment of the Business Plan with the achievement of those objectives. 1. Capacity/Jobs/Economic Development Jobs/Innovation and Economic Development (SMA) Student Population Demographics (SMA) Enrolment Growth (SMA) Increased Capacity (Strategic Plan) 2. Program Offerings Program Offerings (SMA) Institutional Collaboration (SMA) Increased Capacity (Strategic Plan) 3. Quality/Teaching and Learning Teaching and Learning (SMA) Quality in Educational Offerings and Services (Strategic Plan) 4. Sustainability Financial Sustainability (SMA) Sustainability through Fiscal Responsibility (Strategic Plan) Both the resource investment and the challenges of increasing programming and enrolment to meet the needs of one of Canada s fastest growing areas are further detailed in Section 4. Conestoga College Business Plan 4

6 Capacity/Jobs/ Economic Development Program Offerings Quality/ Teaching & Learning Sustainability Compared to other college catchment areas, Conestoga s region is underserviced as represented by the number of students in college programming. An economic value study completed by an external economist and available on Conestoga s website shows the relative size of Conestoga s student population is much lower than those in comparably sized communities. Although the Region of Waterloo s population is comparable to London, for example, Conestoga s student enrolment is much lower than that of Fanshawe. Historically Conestoga has not been provided with the resources to respond to rapid population growth in the region. Despite that challenge, Conestoga has experienced a 50.8% growth in funded full-time post-secondary enrolment in the past seven years (see Appendix B). Our newer facilities provide a setting for the growth, but current funding mechanisms provide a significant barrier and challenge for colleges in high growth areas. The lag period between incurring expenditures for enrolment growth and the recognition of the enrolment growth for operating grant purposes has increased significantly since the announcement of the Knowledge Infrastructure Program by the province, at which time there were specific operating grants for inyear growth. Despite the funding challenges, Conestoga is presenting a Business Plan which: Continues enrolment growth in career-relevant programming as evidenced by the fourth highest graduate employment rate in the province Invests additional resources in student support and quality initiatives Invests in new programming and expands delivery methodologies Invests in instructional resources and infrastructure renewal Does not impose undue risk to our financial stability. The Business Plan allocates resources for further achievement of Conestoga s strategic goals and the Strategic Mandate Agreement objectives. Examples of new and ongoing initiatives in alignment with our goals are outlined in the chart below. Strategic Goals Capacity, Quality, Service and Sustainability Initiatives Growth of domestic and international student enrolment (5.7% and 15% respectively) (see Appendix A). Introduction of new programs as detailed in Appendix A. Additional staff resources to address the needs of students and applicants, enhance the learning experience and support student success, including: - Practice Application Specialists - Learning Support Strategists - Welcome Centre Manager - IT service support and systems network security staff - Staffing to support the new student ONE Card initiative - Athletics and Recreation Manager. Conestoga College Business Plan 5

7 Capacity/Jobs/ Economic Development Program Offerings Quality/ Teaching & Learning Sustainability Strategic Goals Capacity, Quality, Service and Sustainability Initiatives Approximately 15 new full-time faculty positions to support new program introduction and enrolment expansion. Continued development of Conestoga s applied research capacity including: - Launch of the new Centre for Smart Manufacturing with funding support provided by the Natural Sciences and Engineering Research Council (NSERC), the Canadian Foundation for Innovation, Ontario Research Council, and industry partners. - Continuation of first college-based Canadian Institutes of Health Research (CIHR) Research Chair (CIHR/Schlegel: Research in Aging). - Grant application for the Southwestern Ontario Food Innovation and Technology Collaborative to support industry-driven research and commercialization projects in partnership with 25 industry, post-secondary and community partners (funding pending). - Leadership of Canada s Technology for Food to develop synergies with the Craig Richardson Institute of Food Processing. - Addition of an Industrial Research Assistance Program Technology Advisor in the Applied Research Office. - Expansion of research and business development opportunities through the Ontario Centres of Excellence, including an On-Campus Entrepreneurship Activity grant to launch the Advanced Manufacturing Technology Catalyst program and Entrepreneurship@Conestoga, which will engage approximately 1,000 students annually in entrepreneurial learning modules. - Continued integration of student experiential learning opportunities through involvement in applied research projects, including curriculum-based, capstone and independent projects. - Grant application for research projects relating to Social Innovation. Preparation for and completion of the Program Quality Assurance Process Audit (PQAPA) in May Implementation of the plan to prioritize projects for online delivery, creating a formal system of approvals and roll-out. Enhancement of Work Integrated Learning (WIL) opportunities for students in programs without co-op work terms. Further development of quality practices and processes to support the college s commitment to consistency and excellence in the development, delivery and management of programs. Implementation of a cross-college room and course scheduling system that will improve scheduling workflow, allow for modelling scheduling scenarios, produce business intelligence and metric reports, and improve both student timetables and room utilization. Conestoga College Business Plan 6

8 Capacity/Jobs/ Economic Development Program Offerings Quality/ Teaching & Learning Sustainability Strategic Goals Capacity, Quality, Service and Sustainability Initiatives Collaborative program creation with academic partners, including a continued focus on the partnership with Laurier in Brantford. Support for student success and the enhancement of teaching and learning processes, including: - Professional development initiatives to promote broader understanding and accommodation of mental health issues in the learning and working environment. - Enhancement of new faculty orientation activities both within Conestoga and through the regional College Educator Development Program. - Ongoing support for new and established faculty through classroom observations and one-on-one coaching from Teaching & Learning Consultants. Increased international student enrolment to help implement new programs, provide a more global perspective for domestic students, and provide additional revenue: projected growth for is 15%. Additional Spring/Summer accelerated programming to provide more flexible learning opportunities for both domestic and international students and to improve space utilization. Completion of a new Recreation Centre to be opened in Fall 2015 to increase our capacity to meet the recreational, wellness and social needs of students. Renovation of the main Library Resource Centre to increase student capacity and create a more vibrant learner support environment that reflects student needs and expectations. 4. SIGNIFICANT FACTORS AND CHALLENGES 1. Non-Matching Grant Revenue and Expenditure Periods The Provincial Operating Grant mechanism uses historic audited enrolment levels to determine the grant entitlements of colleges. The budgeted and actual enrolment levels do not influence the grant entitlement. As a result of this lag in the recognition of enrolment growth in the grant determination, actual expenditures to deliver the education and services consumed by new student activity occur two years before the activity affects grant revenue. The following summary presents an estimate of this lag converted to full-time equivalent students not funded in the year in which the expenditures commence. Conestoga College Business Plan 7

9 Value of a Weighted Funding Unit (WFU) as set by the Ministry $4,277 Basic and Growth operating grant in budget (excl. McMaster Nursing) $54,263,880 Approximate WFUs: $54,263,880 / $4,277 12,687 Estimated WFUs in budgeted activity 13,451 Unfunded activity difference in WFUs: 13,451 12, Value of 764 unfunded $4,277/WFU $3,267,628 Actual in-year value of a WFU for Conestoga students: $4,034 $54,263,880 grant / 13,451 in-year WFUs Using the conversion factor to convert Weighted Funding Units to full-time equivalent students, Conestoga is incurring costs for approximately 650 students who do not impact current period grants. The two-year lag in recognition of growth in the operating grant means the actual in-year funding for Conestoga s students is 94% ($4,034) of that which would be provided to a college that had experienced no growth in the past two years ($4,277). Conestoga will incur the costs of curriculum development for new programs, the hiring of new faculty and staff, program supplies and other direct program delivery costs, as well as the full operating costs required to provide needed services to the new students in the fiscal year. Provisions for all such expenditures are included in the budget. 2. Financial Stability Despite Consideration of Inflationary Costs not Recognized in Provincial Grants The base funding unit value was set by the Ministry to $4,277 which is lower than $4,358 when it implemented the new grant distribution methodology in , seven years ago. The Consumer Price Index during this period has risen approximately 13%. Ontario s colleges continue to have a per student revenue (provincial grants and tuition) that is significantly lower than any other province. (CollegesOntario Environmental Scan) On a more positive note, the Ministry has increased the per-diem grant for apprenticeship training after a seven-year rate freeze. Conestoga has implemented efficiencies and adjusted service levels to offset the impact of increasing salary and benefit costs, utility costs, new program development costs and other costs during this period. Alternate revenue opportunities are actively sought and implemented when effective. The increased recruitment of international students allows for additional in-year funding for new programs and the availability of expanded opportunities for domestic students. The Ontario Colleges Pension Plan is well managed and, as of the most recent evaluation, is in an actuarial surplus position. The setting of appropriate contribution rates and avoidance of premium-free holidays has avoided the significant liabilities that currently exist in many university pension plans. Conestoga College Business Plan 8

10 The effectiveness of our programming has remained strong with these productivity and efficiency gains as evidenced by our high graduate employment rate, among the highest in the province. Conestoga recognizes the economic challenge facing the province and has managed within the non-inflationary values of the operating grants, but cannot be expected to continue significant growth without in-year funding recognition. 3. Capital Intensification of Post-Secondary Programming A significant challenge to educational institutions is the rapidly increasing use of technology in direct delivery within labs and shops and the need for computer infrastructure and information technology in classrooms and other areas used by students in their learning. A theory classroom used to have an overhead projector and a screen. Current requirements include a computer, digital video projector, connections to remote servers and the web and smart boards. Wireless access to Conestoga s learning resources and the web anywhere on our campuses is now a reasonable expectation of students. Interactive smart boards are used to enhance student learning. Digital learning management systems required for effective interaction with our students are adding service, software and infrastructure costs. Work simulation experiences are becoming more critical in many programs to create a higher level of competency in our students. Sourcing appropriate clinical and unpaid work experiences for students is a growing challenge as the result of scarcity of opportunities and competition for spaces. The availability of in-lab simulation experiences is becoming more essential. In labs and shops, effective use of technology can create tremendous learning opportunities for students, but provision is a fiscal challenge. The cost of a fully equipped hospital ward simulator lab can exceed $1 million. Provincial grants provide little relief in addressing ongoing capital and facility major maintenance costs. The annual provincial grant for instruction capital is $306,000 for our postsecondary programming and the annual facility renewal grant is less than thirty cents per square foot for approximately 1.6 million square feet of facilities. As indicated in Appendix C, our annual investments far exceed these amounts and must be supported through fundraising efforts or Conestoga s operating funds. 4. Ongoing and Emerging Needs Given that Conestoga s students are funded at a level of 94% compared to those in colleges that have not experienced growth in the last two years, and that Ontario college students are the lowest funded in Canada, Conestoga continues to be challenged to meet the needs of our increasingly diverse student population. A funding mechanism that better reflects this enrolment growth in a timely manner would allow further service level improvements in such areas as: Conestoga College Business Plan 9

11 Enhancing remediation services to increase student success Increasing services to students with disabilities and meeting new AODA service levels Creating a more secure learning and work environment Addressing deferred maintenance Providing better learning resources and equipment. As Conestoga approaches its 50 th anniversary of adding value to the local economy and workforce, many of our facilities are in need of refurbishment and repurposing to address deferred maintenance issues and support current learning environment requirements. This is a systemic problem across all colleges and much of the public sector, and will require government, college sector and private sector discussions to arrive at a sustainable model. 5. FINANCIAL BUDGET Summary Actual Proposed Budget $000's $000's Operations Related Operating Revenue Operating Expenditures Operating Change for Year (see Note) 180,645 (173,691) 6, ,758 (186,635) 4,123 Capital Related Amortization of Contributed Revenue Amortization Expense Net Capital Expense Total Change for Year 6,836 7,476 (11,260) (12,963) (4.424) (5,487) 2,530 (1,364) Note: The budgeted operating change for the year includes in-year investment in some equipment and facility improvements that are fully expensed in the year of acquisition as noted in Appendix C. The following financial detail shows comparison of the proposed budget for and the actuals for Section 6 provides notes in reference to this data. Conestoga College Business Plan 10

12 BUDGET SUMMARY FINANCIAL POSITION Note Actuals Budget Requests Change Change Ref. $ 000 $ 000 $ 000 % R E V E N U E Grants Provincial Operating and Supplementary 57,272 60,811 3, % 1-4 Apprenticeship 7,895 7,644 (251) -3.2% 5 Employment Service 4,139 3,929 (210) -5.1% 6 Literacy Basic Skills 2,068 2,056 (12) -0.6% Other 9,121 9, % 7-11 Tuition Revenue 58,496 63,763 5, % 12,13 Contract Revenue 8,700 9, % 14 Other Student Fees 12,679 13,717 1, % 15 Other Revenue 20,275 20,014 (261) -1.3% Amortization of Deferred Capital Contributions 6,836 7, % 20 TOTAL OPERATING FUND REVENUE 187, ,234 10, % E P E N D I T U R E S Full Time Academic Salaries and Benefits 52,540 54,658 2, % 21 Full Time Support Staff Salaries and Benefits 30,284 33,802 3, % 22 Management Salaries and Benefits 17,457 19,147 1, % 23 Part Time Academic Salaries and Benefits 19,203 21,015 1, % 24 Part Time Support Staff Salaries and Benefits 7,072 8, % Total Salaries & Benefits 126, ,656 10, % Student Related Expenses 12,512 13, % Staff Related Expenses 3,919 4, % 28,29 Plant Related Expenses 10,253 10, % 31,31 Professional and Contract Fees 7,502 7, % 32 Other Expenses 6,382 6, % 33,34 Specifically Reimbursed Expenses 6,567 6, % 35 Amortization of Capital Assets 11,260 12,963 1, % 36 Total Non Salary Expense 58,395 62,942 4, % TOTAL OPERATING FUND EPENDITURES 184, ,598 14, % N E T C H A N G E F O R Y E A R 2,530 (1,364) (3,894) Conestoga College Business Plan 11

13 BUDGET SUMMARY REVENUE Actuals Budget Note Requests Change Change Ref. $ 000 $ 000 $ 000 % GOVERNMENT GRANT AND REIMBURSEMENT REVENUE Provincial Operating Grant - Basic 36,687 36,521 (166) -0.5% 1 Provincial Operating Grant - Enrolment Growth 15,347 19,357 4, % 1 Provincial Operating Grant - Second Career 1,932 1,800 (132) -6.8% 2 Provincial Operating Grant - Performance Funding (43) -4.7% 3 Provincial Operating Grant - Supplementary 1,485 1,353 (132) -8.9% 4 Provincial Operating Grant - Bldg Rental % Prov. Operating Grant - Per Capita Tax % Provincial Operating and Supplementary 57,272 60,812 3, % Apprenticeship 7,895 7,644 (251) -3.2% 5 Employment Services 4,139 3,929 (210) -5.1% 6 Literacy Basic Skills 2,068 2,056 (12) -0.6% Disability Services Grant 1,593 1,522 (71) -4.4% 7 Special Student Bursaries (49) -16.8% 8 Other Ontario 2,666 3, % 9 Municipal Grants % 10 Federal Grants 4,237 4,105 (132) -3.1% 11 Other 9,121 9, % TUITION REVENUE Full Time Post-secondary 46,047 51,495 5, % 12 Part Time Courses and Seminars 7,333 7, % Full Fee Recovery Programs (183) -23.4% Apprenticeship 1,060 1,006 (54) -5.1% Student Assistance Program 3,272 3,170 (102) -3.1% 13 58,496 63,763 5, % CONTRACT REVENUE 8,700 9, % 14 OTHER STUDENT FEES 12,679 13,717 1, % 15 OTHER REVENUE Ancillary 11,206 11,148 (58) -0.5% 16 Residence 3,979 4, % Day Care 1,099 1, % 17 Interest (111) -22.8% Property Rentals () -0.5% Donations to Operating Costs (111) -28.1% 18 Miscellaneous 2,634 2,332 (302) -11.5% 19 Reimbursement of Expenses (18) -4.6% 20,275 20,013 (262) -1.3% Amortization of Deferred Capital Contributions 6,836 7, % 20 TOTAL OPERATING FUND REVENUE 187, ,233 10, % Conestoga College Business Plan 12

14 BUDGET SUMMARY EPENSES Note Actuals Budget Request Change Change Ref. $ 000 $ 000 $ 000 % Salaries - Full Time Academic Teaching 42,016 43,724 1, % Salaries - F/T Academic Co-ordination % Employee Benefits - Full Time Academic 10,106 10, % Full Time Academic Salaries and Benefits 52,540 54,658 2, % 21 Salaries - Full Time Support 23,562 26,286 2, % Employee Benefits - Full Time Support 6,722 7, % Full Time Support Staff Salaries and Benefits 30,284 33,802 3, % 22 Salaries - Management 13,245 14,596 1, % Salaries - Part Time Management (23) -2.8% Employee Benefits - Management 3,261 3, % Employee Benefits - Part Time Management (3) -2.5% Management Salaries and Benefits 17,457 19,147 1, % 23 Salaries - Part Time Academic 14,940 16,622 1, % Salaries - Part Time Co-ordinators (13) -4.8% Employee Benefits - Part Time Academic 2,135 2, % Invoiced Teaching Services 1,858 1,840 (18) -1.0% Part Time Academic Salaries and Benefits 19,203 21,015 1, % 24 Salaries - Part Time Support 6,389 7, % Employee Benefits - Part Time Support % Part Time Support Salaries and Benefits 7,072 8, % TOTAL SALARIES & BENEFITS Instructional Supplies 6,003 6, % 25 Field Work % 26 Cost of Inventory Sold - Ancillary 5,536 5, % 27 Equipment Rentals (41) -9.2% Student Related Expenses 12,512 13, % Office and Other Supplies 1,110 1, % 28 Postage and Courier % Staff Employment - Advertising % Professional Development % Travel 1,260 1, % 29 Telecommunications % Memberships % Staff Related Expenses 3,919 4, % Vehicle Expense % Contract Security Services 1, (8) -0.8% Contract Cleaning Services 2,567 2, % Grounds Maintenance % Utilities 3,073 3, % 30 Rentals Other Premises - Short Term (38) -7.9% Municipal Taxes % Renovation and Maintenance 2,573 2, % 31 Plant Related Expenses 10,253 10, % Professional and Contract Fees 7,502 7, % 32 Advertising and Promotion 1,815 1, % Maintenance of Equipment 2,084 2, % 33 Interest Expense / Bank Charges % Long Term Debt Interest (69) -11.8% Internal Charges (112) (54) % Non-Capital Equipment Purchases 1,131 1, % 34 Other Expenses 6,382 6, % Specifically Reimbursed Expenses 6,567 6, % 35 Amortization of Capital Assets 11,260 12,963 1, % 36 TOTAL NON SALARY EPENSE 58,395 62,937 4, % T O T A L OPERATING FUND EPENDITURES 184, ,593 14, % Conestoga College Business Plan 13

15 6. NOTES TO BUDGET SUMMARY The following notes refer to the financial detail on pages showing a comparison of the proposed budget for and the actual results for The note numbers relate to the numbers in the far right column of the financial detail. REVENUE Government Grants and Reimbursement Income 1. We have firm information about the operating grants for The funding methodology remains the same as , with both base and growth (two-year slip) funding units funded at $4,277. Overall, due to our consistent enrolment growth, we will receive 8% more operating funds in than last year. We will still have approximately 650 current students who are not recognized in the current year operating grant as the result of the twoyear slip funding methodology. 2. We have estimated the Second Career funding available to have steadied out at approximately $1.8M per year. 3. Performance Funding of $870K stems from our high ranking in the Key Performance Indicator surveys. Our share of this grant also depends on the relative ranking of other colleges. 4. Supplementary Operating Grants are made up of the following: Grant Actual Proposed Budget $000 s $000 s Renovation and Maintenance Capital Equipment Renewal Clinical Education Aboriginal Action Plan Credit Transfer Miscellaneous Total 1,485 1,353 The Renovation and Maintenance grant is given yearly to help offset the deferred maintenance costs of academic facilities. Capital Equipment Renewal is a contribution by the Ministry towards our instructional equipment needs. The Clinical Education grant acknowledges the added costs we incur to offer health programs with a clinical placement component. 5. Apprenticeship grants show a slight decrease in the projected budget despite an increase of 6.8% to the per diem to be paid by the Ministry. This stems from a decrease in training days planned by the local Ministry office at this point as well as a conservative position on new preapprentice training contracts expected. 6. The budget for Employment Services reflects a net reduction of $210K, mostly as a result of Ministry plans to wind up the Youth Employment program during the first half of fiscal The reduction is offset with increases to the Canada Ontario Jobs Grant Conestoga College Business Plan 14

16 program that was introduced during , and plans to spend the full grant amounts for all other employment programs. 7. Disability Services grants fund various initiatives to address the needs of students with disabilities, support First Generation college attendees, and provide disability supports for apprenticeship students. The majority of these grants are directly matched with expenses. 8. Special Student Bursaries grants are directly matched by expenses, resulting in no bottom line financial impact. 9. The Other Ontario grants are from ministries other than the Ministry of Training, Colleges and Universities. We have increased this budget in the area of School College Work Initiative by $380K as funds are available and we hope for continued growth in the area of dual credit delivery. Also included is a new contract with the Ministry of Economic Development, Employment and Infrastructure to offer Digital Systems Installer, a short program for disadvantaged youth. 10. Municipal grants from the Region of Waterloo support the day care operations, including the Professional Resource Centre includes grants of $280K for two major projects being undertaken in the Professional Resource Centre. These will both be offset with expenditures. 11. Federal grants are mainly comprised of the funding for our contract to supply Language Instruction for New Canadians (LINC). Also included are funding for the Chair in Senior s Care and related research ($413K), funding for the Centre for Smart Manufacturing and related research projects ($727K), and several language training contracts. Tuition Income 12. The budget for Post-Secondary Tuition revenue is increasing 11.8% ($5.4M) in The activity section of this document discusses changes in enrolment resulting in an increase in overall student numbers of 5.79% over Tuition fees paid by students will increase between 0 and 5% this year based on Ministry policies (average 3%). Numbers of international students will rise at a faster rate than domestic students, contributing to the higher overall tuition revenue. 13. The Student Assistance Program is that portion of tuition funds which we are required to separate and use to help students in financial need. Any unused funds are carried year to year. Contract Revenue 14. The largest single component of Contract Other is the International English Language Testing (IELTS) which is $5.6M of this category. The second part of this area is Contracted Instructional Services which includes training for industry estimated to increase from $2.4M to $2.8M. Other Student Fees 15. Other Student Fees are made up of the non-tuition fees charged to students. The increase here results from a 2.4% increase for inflation plus the continued growth in student numbers as well as the use of fees deferred from prior years to fund some IT projects in Conestoga College Business Plan 15

17 Other Revenue 16. Ancillary Revenue combines bookstore, parking, facilities rental and cafeteria sales. 17. Day Care revenue is rising 14% over actuals. During , enrolment was down for a number of reasons that are not expected to recur in Donations to Operating Costs are the donated funds used to purchase non-capital items. The budget is largely funds for the Centre for Entrepreneurship plus donations in the Health area to known projects. Any donations used for capital acquisitions are not reflected here, but are deferred and brought into revenue as the assets are depreciated. Miscellaneous Income includes application fees, Collège Boreal IT service contract income, handling fees, alumni affinity program earnings, specialized admissions testing, photocopy revenue, radio station advertising, union staff release time reimbursements and secondment, etc. 19. Amortization of Deferred Capital Contributions is the amortization of past specific grants or donations used to purchase depreciable capital assets. These contributions are drawn into income over the life of the asset matching the depreciation pattern. EPENDITURES Distribution of Expenses College System Actual Conestoga Actual Conestoga Actual Conestoga Budget Salaries and Benefits 62.8% 68.5% 68.4% 68.0% Non Salary Related 30.3% 25.2% 25.6% 26.2% Amortization of Capital 6.9% 6.3% 6.0% 5.8% 100.0% 100.0% 100.0% 100.0% Distribution of Salary Related Expenses College System Actual Conestoga Actual Conestoga Actual Conestoga Budget Academic - Full-Time 36.6% 41.9% 41.5% 41.0% - Part-Time 17.3% 15.3% 15.2% 15.3% Support - Full-Time 23.4% 24.0% 24.0% 24.0% - Part-Time 6.6% 5.4% 5.5% 5.7% Administrative 16.0% 13.4% 13.8% 14.0% 100.0% 100.0% 100.0% 100.0% 21. Full Time Academic Salary expense is increasing 4.0%. This is the combined effect of collective agreement changes, the hiring of 15 new full time professor positions at various points during the year, full year salaries for those hired in and normal movement through the salary grid. Conestoga College Business Plan 16

18 22. Full Time Support Salary expense is increasing 11.6% with this budget year. Included are 27 new positions, full year salaries for those hired in , and normal movements through salary ranges. 23. Management Salary expense is increasing by 9.7%. Increases include provision for movement through existing salary ranges for eligible employees and the annualization of previous year hires as well as the addition of 4 new positions in response to increased demands related to college growth. 24. Part Time Academic Salary expense is increasing by 9.4%. Included are increased volume resulting from growth, normal inflationary wage increases and a benefit rate that takes into consideration the eligibility of part time staff to become members of the college system pension plan. Non-Salary Many of the following cost types vary directly with the number of students and staff on campus as well as the number of square feet of building we maintain. 25. Instructional Supplies costs are growing by 2.3% as the result of the increased number of students. 26. Field Work is the cost of student transportation. Conestoga is the fund manager for the regional School College Work Initiative which includes $376K of funded bussing costs from participating high schools to the College (versus $210K in ). 27. Cost of Inventory Sold as a percentage of sales is increasing, recognizing the increasingly tighter margins available on book sales as a result of pressure from e-book sales. 28. Office and Other Supplies includes various supplies for new funded research projects, and for the new recreation centre. 29. Travel Expense will increase in by $197K as the result of increased travel over Included is $57K of travel costs related to bringing students and teachers to Canada for training. 30. Utilities costs are budgeted at conservative levels reflecting last year s lower energy consumption and energy reduction projects. 31. Renovation and Maintenance Expense is growing by 15.4% in The Ministry funds $355K of this under the Facilities Renewal Program which includes projects such as roofing replacement, classroom reconfiguration and refurbishment, energy systems upgrades, security systems. Included this year are facility upgrades, building envelope remediation, large scale roofing replacements at Guelph campus and AODA initiatives to ensure barrierfree campuses. 32. Professional and Contract Fees include student residence management, audit, legal, assessments, consulting, insurance costs and payments to international student recruiters includes fees related to accreditation processes as well as $352K for curricular development. Also included is growth in legal fees stemming from partnerships and collaboration agreements. Conestoga College Business Plan 17

19 33. Maintenance of Equipment costs are increasing by $401K (19.2%) due to our size and the amount of equipment to be maintained. The growth in the number of servers and the size of our IT infrastructure are factors that affect this expense as well. This category also includes the annual maintenance costs of software. New this year are software solutions for the new recreation centre, survey administration and queueing of customers at campus service kiosks. 34. Non-Capital Equipment Purchases are an estimate of the part of college capital spending (detailed in Appendix C) that will not be capitalized for accounting purposes. Approximately $500K of this spending is funded by specific government grants. Donations will be used to offset this cost where possible. 35. Specifically Reimbursed Expenses are flow-through expenses that are either reimbursed to the college by the Ministry subject to allocated maximums or funded by the student assistance funds set aside from increases to tuition. Examples include bursaries, work study and support allowances. 36. Amortization of Capital Assets represents the depreciation of capital assets at various rates. Computer equipment is depreciated over 3 years, equipment over 5 years and buildings over 40 years. Conestoga College Business Plan 18

20 APPENDI A BUDGET FULL TIME POST-SECONDARY ENROLMENT Student Numbers at Fall Count Date November 1 st 2012 Actual 2013 Actual Increase 2014 Actual Increase 2015 Budget Increase Regular 9,342 9, % 9, % 10, % International 783 1, % 1, % 1, % Total 10,125 10, % 11, % 11, % The above chart shows the traditional fall count date student numbers. The projected year-over-year growth of students in all terms is approximately 5.7% with the rise in international being 15%. This growth is the product of new programs and flow through to upper year progression of prior intakes. A provision of 2.0% of total volume has been taken against forecasting error. New cohorts by school are shown by an in the following table. New Activity Spring Fall Winter Year MEDIA STUDIES Bachelor of Design BUSINESS Global Business Social Media Marketing Health & Community Services Bachelor of Early Learning Program Development Community Integration through Cooperative Education ENGINEERING AND INFORMATION TECHNOLOGY Bachelor of Interior Design Embedded Systems Development Packaging Engineering Technician Process Quality Engineering TRADES Digital Communications System Installation Electro-Mechanical Maintenance Electrical Techniques (Ingersoll) Electrical Techniques (Waterloo) Mechanical Technician CNC Conestoga College Business Plan 19

21 APPENDI B OPERATING GRANT FUNDED ACTIVITY November 1 st Enrolment SEVEN AND ONE-YEAR COMPARISONS ( ) 7 Year Change in Enrolment Year Change in Enrolment College Name Change Growth Conestoga 6,003 9,055 3, % Durham Humber Georgian George Brown La Cité Collégiale Niagara Algonquin St. Clair Saul t Mohawk Lambton Seneca Sheri da n Collège Boréal Centennial Fanshawe St. Lawrence Fleming Confederation Northern Canadore Cambrian Loyalist CAAT SYSTEM Notes: 6,135 13,682 6,143 11,900 3,234 5,747 12,204 5,940 1,723 8,720 2,235 14,469 12,142 1,250 8,022 11,087 4,885 4,925 2,770 1,028 2,412 3,408 2,652 19,581 16,399 15,737 10,682 16,205 14,015 12, % 43.1% 31.8% 37.8% 26.1% 24.1% 28.9% 24.1% 16.0% 22.5% 9.8% 12.0% 15.4% 11.0% 9.2% 9.3% 6.3% 7.1% 8.1% -3.2% 0.1% 2.1% -4.3% 152, ,281 34, % - Source of Data - OCAS data warehouse Change Growth 9,027 9, % 9,163 20,021 8,451 15,510 4,182 7,433 15,727 7,646 2,135 10,480 2,618 16,786 13,918 1,413 9,015 12,338 5,390 5,413 2,944 1,036 2,395 3,341 2,478 19,581 16,399 15,737 10,682 16,205 14,015 12, % -2.2% -4.2% 5.7% -2.5% -4.0% 0.1% -3.6% -6.4% 1.9% -6.3% -3.5% 0.7% -1.8% -2.8% -1.8% -3.6% -2.5% 1.7% -4.0% 0.8% 4.1% 2.4% 188, ,281-1, % - Activity is November 1 st head count for operating grant funded full-time students, not annual funding units - Excludes joint BScN students who are counted as university students - Excludes foreign students is used as a base year as that is approximately when Conestoga began growing above its historic growth patterns to meet student demand and in anticipation of campus expansions opened in 2011 Conestoga College Business Plan 20

22 APPENDI C BUDGET FACILITIES AND EQUIPMENT PURCHASES ($000 s) FACILITIES Expensed Capitalized Total Specific Grant Funding Donations Source Other Conestoga Total Funding Capitalize to Basic Facility Renewal/ Accessibility Upgrades Parking Lot Maintenance/Repair Doon Library Renovations Doon Major Renovations-North side Athletic Centre Parking Lot 8 including Kiosk Renovations, moves and upgrades to academic space Major upgrade to 1/2 of Residence rooms 1, ,500 1, , ,500 1, , , , ,500 1, TOTAL FACILITIES 2,295 4,750 7, ,940 7, EQUIPMENT Instructional Instructional Capital Equipment Renewal Student Information Technology Apprentice Equipment Centre for Smart Manufacturing Various research projects Disability Supports Campus Safety ,239 1, ,738 1,733 1, , ,733 2,030 2,738 1,733 1, Administrative Purchases from Priority Fee - bus shelter, One Card, furniture IT related - disaster recovery, network upgrades, servers, video conferencing, software Vehicles, signage, kiosks, furniture, cafeteria coolers, partitions, etc TOTAL EQUIPMENT 1,251 7,070 8,321 2, ,971 3,169 8,321 2,520 TOTAL 3,546 11,820 15,366 3, ,971 9,109 15,366 3,120 NOTE: In-process projects such as the Recreation Centre are in addition to items shown here. Conestoga College Business Plan 21