PRESENTATION TO THE Board of Governors. April 28 th, 2015

Transcription

1 PRESENTATION TO THE Board of Governors April 28 th, 2015

2 PRESENTATION OUTLINE Financial Overview What has changed since December Planning Assumptions Tuition Fees Allocations Recommendations Board of Governors April 28, 2015 #2

3 BOARD OF GOVERNORS SCHEDULE September /October Audited Financial Statements KPMG External Auditors Report November /December Operating & Ancillary Budget Framework Investment Committee Report March /April Operating and Ancillary Budget Annual Risk Assessment Deloitte: Internal Audit Report Investment Committee Report Board of Governors April 28, 2015 #3

4 FINANCIAL OVERVIEW Investments Operational Activity April 10, 2015 Operating $414m Pension $1,104m Ancillaries $ 90m Endowment $ 212m Research Capital $ 60m $ 30m Capital Debt Debt Financing for Buildings $125m Board of Governors April 28, 2015 #4

5 BUDGETED OPERATING REVENUES Total: $414 Million Board of Governors April 28, 2015 #5

6 BUDGETED OPERATING EXPENDITURES Total: $414 Million Board of Governors April 28, 2015 #6

7 BUDGET CONSIDERATIONS Revenue: Enrolment Forecast: Undergraduate Graduate Tuition Fee Framework Government Funding Expenditures: Pension Plan Deferred Maintenance Board of Governors April 28, 2015 #7

8 PROJECTED CHANGE IN 18-YEAR-OLD POPULATION IN ONTARIO: CARLETON IMPACT Board of Governors March 27, 2014 #9 Board of Governors April 28, 2015 #8

9 PENSION OUTCOME OF JULY 1, 2013 VALUATION Going concern deficit $ 87m Solvency deficit $159m Board of Governors April 28, 2015 #9

10 ONTARIO GOVERNMENT POLICIES Post Secondary Education: Tuition fees Government grant Mandate agreements/differentiation/metrics New campuses Other Policies: Pensions Public Sector Compensation Restraint Board of Governors April 28, 2015 #10

11 SIP INDICATORS #1 Indicator Short-term objective Current Level (November 2014) Proposed Target Long-term objective TEACHING EXCELLENCE BA Enrolment -4.0% Increase BA Retention -0.6% Increase College Transfer Students -3.5% Increase by 25% New 1 st year FT Enrol. 1.0% Grow minimum of 1% per year 1 st year Enrolment International 22.5% Grow 3% year Graduate Enrolment -5.4% Meet prov. targets Retention Rate.3% above Exceed Prov. Avg. by 1% Results: & crimson lettering =below short term target & green lettering=at or above short term target Audit Board & of Finance Governors November April 28, th, 2014 #xx #11

12 SIP INDICATORS #2 Indicator Short term objective Current Level (November 2014) Proposed Target Long-term objective RESEARCH EXCELLENCE Research Ranking 5 Top 3 STUDENT CENTERED Increase endowment for student support Student Survey ORGANIZATIONAL EXCELLENCE Student & Staff Customer Satisfaction Survey $134m* U/G-Upper 50%* Grad-Lower 33% Staff-61% Students-68% Top Third Over 7.5 Capital Campaign (Annual) $21.2m* $37m Results: & crimson lettering =below short term target & green lettering=at or above short term target * Updated to April 2015 Audit Board & of Finance Governors November April 28, th, 2014 #xx #12

13 WHAT HAS CHANGED SINCE DECEMBER, 2014 Board of Governors April 28, 2015 #13

14 APPLICANTS/TARGETS - FALL 2014/2015 Ontario University Application Centre Systems Data First Year % +- Applicants 137, , % Confirmations 17,417 16, % Applicants (H.S. OUAC 101s ) 88,458 90, % Carleton University First Year % +- Applicants 23,053 23, % Approved 12,588 12, % Applicants (1 st and 2nd Choice) 10,730 10, % % +- First Year 6,100 6, % Undergraduate 20,107 19, % Carleton data as at April 10, 2015; OUAC data as at April 2, 2015 Board of Governors April 28, 2015 #14

15 DEFERRED MAINTENANCE / CAPITAL RENEWAL Facilities Condition Assessment Program Average age 40.4 years $105m deferred maintenance Overall Condition Assessment Poor Recommendation from Joint Building Program and Board of Governors on February 12, 2015 to invest $14m per year for ten years to fund deferred maintenance/capital renewal. Board Board of of Governors - April April 28, 28, #15 #4

16 PLANNING ASSUMPTIONS REVENUE Retention at current rate. Domestic tuition fees will increase by 3% per year. First-year enrolment will mirror demographic projection. Discounted government funding to university sector for undergraduate growth. Board of Governors April 28, 2015 #16

17 PLANNING ASSUMPTIONS EXPENDITURES Extraordinary pension payments (started in ); Annual base fund of $1m for mission critical initiatives; Enrolment-Linked Budget Allocation model in place that provides 40% of net new income from undergraduate growth to Faculties. $14m annual allocation for deferred maintenance/ capital renewal Board of Governors April 28, 2015 #17

18 TUITION INCREASES FOR Domestic International Overall Increase 3.0%* ** BAS, BCS, BEng, BID, BIT, BPAPM First, Second, Third Year 5.0% 8.0% Fourth Year 4.0% 8.0% BComm, BIB (All Years) 3.0% 8.0% Other Undergraduate (All Years) 3.0% 8.0% Master's (Most), PhD: First Year 3.0% 3.0% Graduate (Most): Upper Year 0.0% 3.0% MArch(S), MPM, MSW, MPNL (First Year) 5.0% 3.0% MBA First year 5.0% 0.0% Upper years 0.0% 0.0% MEng First year 5.0% 8.0% Upper years 0.0% 8.0% * According to the provincial government tuition framework using MTCU methodology. ** International fees are unregulated; set using competitive analysis. Board of Governors April 28, 2015 #18

19 EXAMPLES OF TUITION FEE CHANGES EXPERIENCED BY FALL 2010 ENTRANTS* Year Year 1 Year 3 Year 4** Change** Bachelor of Arts/Science $5,568 $5,963 $6, % Bachelor of Commerce $6,475 $7,238 $7, % Bachelor of Comp. Science $7,229 $7,892 $8, % Bachelor of Engineering $7,938 $9,088 $9, % * Fees shown are for domestic students ** Proposed Board of Governors April 28, 2015 #19

20 NET TUITION EXAMPLES Third Year BA (Parental income=$120,000) $7,180 $4,765 $1,780 $0 $2,220 $635 $2,545 Grants Loan Remission Tax Credits Avg CU scholarship Sticker Price Up-Front Net Tuition Notes: Adapted from The Many Prices of Knowledge A. Usher et al, HESA, Uses proposed Carleton 2015/16 Tuition fees, and an average Carleton student scholarship and bursary from 2014/15; students are studying full-time and are resident in Ontario Sticker Price = Tuition + Misc. Fees (i.e., ancillary, UPASS, etc ) Board of Governors April 28, 2015 #20

21 DOMESTIC TUITION (NEW COHORT) B.A./ B.Sc. B.Com. B. Eng. M.A./ M.Sc. M.Eng. M.A.Sc. PhD (Most) Carleton 5,992 7,300 9,620 7,902 8,937 8,436 7,785 Guelph 6,022 7,904 10,893 7,468 7,468-7,468 McMaster 5,966 8,552 10,148 7,008 7,722-7,008 Ottawa 6,010 6,895 8,612 7,799 8,650 7,799 7,074 Queen's 6,053 15,590 11,404 6,414 7,746-6,414 Ryerson 6,032 7,681 9,314 9,464 9,464 9,464 9,194 Toronto 6,040 14,550 12,980 7,115 12,250 7,115 7,115 Waterloo 6,054 16,056 12,772 7,236 7,662 7,236 7,236 Western 5,975 23,948 11,240 6,740 9,944-6,740 York 6,040 7,904 7,904 4,785-4,785 4,785 Average (Ont. All) 5,983 9,681 9,766 7,740 8,603 7,649 7,510 Average (Ont. Major) 6,018 11,638 10,489 7,193 8,871 7,473 7,082 Median (Ont. Major) 6,027 8,228 10,521 7,176 8,650 7,518 7,095 Carleton +- UofO , Carleton +- Avg.(Maj.) -26-4, Carleton +- Med.(Maj.) Board of Governors April 28, 2015 #21

22 INTERNATIONAL TUITION (NEW COHORT) B.A./ B.Sc. B.Com. B. Eng. M.A./M.Sc. M.Eng. M.A.Sc. PhD (Most) Carleton 20,012 21,033 23,818 19,287 21,837 21,015 19,020 Guelph 18,429 20,899 23,866 17,825 17,825-16,991 McMaster 21,348 26,966 30,898 16,761 17,766-16,761 Ottawa 21,711 23,067 26,736 18,699 20,159 18,699 16,334 Queen's 27,413 34,981 32,030 12,674 17,000-12,674 Ryerson 20,509 21,337 23,211 19,711 21,356 21,356 18,886 Toronto 35,280 37,960 39,580 18,620 39,580 18,620 18,620 Waterloo 20,860 32,666 30,038 18,228 21,024 18,228 18,048 Western 21,127 31,122 27,112 16,612 24,352-16,612 York 19,611 25,825 21,476 18,825-18,825 18,000 Average (Ont. All) 20,854 24,011 25,923 18,452 21,762 19,267 17,774 Average (Ont. Major) 22,630 27,586 27,877 17,724 22,322 19,457 17,195 Median (Ont. Major) 20,994 26,396 26,924 18,424 21,024 18,762 17,496 Carleton +- UofO -1,699-2,034-2, ,678 2,316 2,686 Carleton +- Avg.(Maj.) -2,618-6,553-4,059 1, ,558 1,825 Carleton +- Med.(Maj.) ,363-3, ,253 1,525 International graduate program fees are measured on a three term basis, all others on a two term basis. Board of Governors April 28, 2015 #22

23 IMPACT OF 0% TUITION INCREASE Impact of 0% tuition increase for : up to $9 Million Option A seek same income through higher undergraduate enrolment: Extra 18% increase in annual intake required (+868 new, FT domestic students assuming same mix of first year students by program) Much lower entry standards Much larger classes, and crowding of other facilities Assumes full government funding - Will the government fund extra students? Option B cut costs: Reduce payroll by 74 faculty or 133 professional services staff or a combination and/or no salary increases Collective bargaining issues attrition and extended hiring freeze Serious impact on all aspects of campus experience Higher risks to students, employees, and institution Board of Governors April 28, 2015 #23

24 MISCELLANEOUS ADMINISTRATIVE FEES Fee Fees Proposed Increase * Percentage Omnibus Fee $37.75 $38.50 $ % Supplement Fees $67.75 $69.00 $ % Off Campus Exam ( in Canada) $78.50 $80.00 $ % Off Campus Exam (International) $ $ $ % Challenge for Credit $ $ $ % Returned Cheque Service Charge $32.00 $33.00 $ % Deferred Payment fee $ $ $ % Grad Application Fee $ $ $ % Grad Reinstatement Charge $67.75 $69.00 $ % Deferred Admission Fee $43.50 $44.25 $ % Letters Of Permission $37.50 $38.25 $ % Display Diplomas $ $ $ % Replacement Diploma $78.50 $80.00 $ % New Special Students Documentation $49.50 $50.50 $ % Grad Leave of Absence $67.75 $69.00 $ % Admission Processing Charge $61.75 $63.00 $ % Grad Extension of Time $67.75 $69.00 $ % *most fees increased by inflationary increase of 2% rounded to the nearest $0.25; Board of Governors April 28, 2015 # 24

25 FUNDING AVAILABLE FOR NEW RESOURCE ALLOCATION Base Operating 1.0m Fiscal Operating 4.8m Fiscal Capital Projects 28.0m Matching Funds 14.0m Student Support 2.2m Board of Governors April 28, 2015 #25

26 MAJOR PRIORITIES FOR BUDGET Priorities identified in Strategic Integrated Plan: Sustainable Communities Global Prosperity Programs for Today and Tomorrow Research Excellence & Connectedness Productive and Engaged Students Organizational Excellence Board of Governors April 28, 2015 #26

27 MAJOR FUNDING INITIATIVES New Faculty Positions Two new faculty for Bachelor of Global & International Studies One new faculty for Masters Indigenous Policy and Administration Three new faculty for Bachelor Health Science One new faculty for Masters Accounting Board of Governors April 28, 2015 #27

28 MAJOR FUNDING INITIATIVES New Staff Positions One Learning Specialist in Education Development Centre One Human Resource Officer in Human Resources One High School Liaison Manager in Student Recruitment Board of Governors April 28, 2015 #28

29 MAJOR FUNDING INITIATIVES Capital Projects New Construction» Additional Floor - Health Science Building 7.0m» New Business Building 3.9m Deferred Maintenance 14.0m Information Systems Renewal 1.4m Classroom Renewal 2.0m Board of Governors April 28, 2015 #29

30 OTHER FISCAL FUNDING Advertising / Public Relations 1.1m Student Support 2.4m Matching funds» Research 1.0m» Advancement 13.0m Board of Governors April 28, 2015 #30

31 MAJOR FINANCIAL UNCERTAINTIES Demographics Participation Rates Special Payments to Pension Plan Provincial Operating Grant Reductions Three new undergraduate campus locations in GTA Tuition Fee Policy Board of Governors April 28, 2015 #31

32 RECOMMENDATION The Operating Budget, as presented, be approved. Board of of Governors April 28, 28, 2015 #20 #32