CAUBO Financial Reporting Committee

What’s New?Resource Guides & Tools for Financial Reporting

Objectives of the Session To demonstrate projects in

progress to assist you with your financial reporting needs.

To solicit input from you about what the Committee should be working on ie. what resources would help you in your financial reporting?

Topics to be Covered CAUBO Financial Reporting Guide Internet access

Reporting Committee Webpage Knotia.ca website

CAUBO Report 20/20 Tool Executive Summary Ad Hoc Reporting Training & Other Factors

CAUBO Financial Reporting Guide Last revised in 1994 Do you know where your Guide is? Intention of Guide was originally:

To clarify new non-profit regulations introduced by CICA

To provide guidance to universities where options are provided within CICA accounting principles in order to improve consistency in presentation among universities

Objectives of Updating Guide Revitalize it as a resource for

CAUBO members Enhance its usability Reduce the amount of duplication

with the CICA Handbook Provide a resource for examples of

financial statement disclosure

Survey Results Survey of membership was conducted in

March of 2003 with 53 institutions responding

57% Single Column Deferred, 33% Restricted Fund, 10% Multi-column Deferred

Lots of variation in reporting although most indicated transparency, openness and clarity would be enhanced if similar policies and reporting followed

Survey results will be on the website

Status of project Consultant was hired to update the

Guide to respond to changes in CICA accounting principles – includes 10 chapters

Formatting was improved to make it more user friendly

Provides recommendations on issues where alternative accounting treatments permitted

Status of project Appendix added to highlight CICA

exposure drafts under consideration Currently undergoing quality review and

French translation in progress Will be made available this summer via

the web – considering linkages to CICA Handbook

Follow-up issues will include linkages to member university financial statements

Guide will be more dynamic in the future with regular updating

Internet Access – Financial Reporting Committee Webpage

CAUBO launched new website in February

Committee now has its own webpage

Will be central resource for locating information about financial reporting

Polling capability What’s new – reporting deadlines etc

Internet Access – www.knotia.ca website

Website to access a variety of publications on tax, financial reporting and other issues.

Financial Reporting and Tax Committees have been negotiating with CICA to make a standard package of resources available to members at a predefined cost

Would make concurrent licenses available Allows you to customize – “briefcase

feature” Search capabilities Reporting Guide linked to CICA Handbook

CAUBO Report Everyone submits information but how many

actively use it for reporting and analysis Provides a composite of information provided

by 100 universities and colleges across Canada Committee goal is to make it easier for

members to use the data effectively for reporting

We need to provide more interpretation of the data to demonstrate its value

Hopefully with more use of data by members, greater consistency in reporting may be a by-product

Data comparison Consistency and uniformity of data

reporting extremely important when using the data for comparison purposes

Committee has as its objective – greater scrutiny of submissions of CAUBO data by member institutions to ensure consistent application of guidelines

Why Use CAUBO Data? Comparing your institutional data with

similar other institutions helps you consider if you are in the “ball park” or not

Do not have to be the same as everyone else but it is important to understand why the differences exist

Data is not intended to be used for institution to institution comparison – used more effectively in aggregate form

Examples of How Data Can Be Used

Longitudinal Data Comparison and trend analysis using 20/20 Tool

Executive Summary Ad Hoc reporting and Analysis

20/20 Tool Data released in format for 20/20 Tool a

few years ago (Before Microsoft Access) Stats Canada will be transitioning to this

format Intention is to provide members with data

for a preset time-series to allow financial analysis

Project underway to identify factors affecting the interpretation of the CAUBO data over time

Exact details of delivery still being worked out

Executive Summary

Summary report will: Increase awareness of the existence of the

CAUBO financial information Give preparers knowledge of how the

financial data is being used Provide convenient reference source Highlight trends and/or significant

differences Include written commentary Published in University Manager

Total Revenue by Fund (in $ millions)2002/2003 - $18,187 (net of Endowment loss of $91)2001/2002 - $17,013 (in millions)

Endowment, -$91, 0%, (prev. year $319)

General Operating, $10,766, 60%, (prev. year $9,886)

Special Purpose and Trust, $963, 5%, (prev. year $949)

Sponsored Research, $4,282, 23%, (prev. year $3,771)

Ancillary, $1,373, 7%, (prev. year $1,273)

Capital, $894, 5%, (prev. year $815)

Total Revenue – by Source ($ in millions)(% of total source for individual years)(2000/01, 2001/02, 2002/03)

12.2%

4.6%6.0%5.2%

19.0%

43.3%

9.8%

12.7%

2.4%

6.1%5.4%

19.5%

42.9%

10.9%

13.0%

-0.6%

6.6%

4.2%

20.7%

12.2%

44.0%

-$500

$500

$1,500

$2,500

$3,500

$4,500

$5,500

$6,500

$7,500

$8,500

FederalGovernment

departments andagencies - grants

and contracts

ProvincialGovernment

Tuition and otherfees

Donationsincluding bequests

Non-governmentgrants andcontracts

Investments Other income

2000/2001 Total $15,827

2001/2002 Total $16,853

2002/2003 Total $18,028

Proportion of Revenue from All Sources by Province - 2002/2003(including the mean for each source)

-20%

0%

20%

40%

60%

80%

100%

Nfld. P.E.I. N.S. N.B. Que. Ont. Man. Sask. Alta. B.C. Mean %

Federal government departments and agencies - grants and contracts Tuition and other fees

Non-government grants and contracts Other income

Provincial government Donations, including bequests

Investment

Federally Sponsored Research – By Category2001/02 & 2002/2003 ($ in thousands)

$0

$100,000

$200,000

$300,000

$400,000

$500,000

$600,0002

001/2

002

2002/2

003

2001/2

002

2002/2

003

2001/2

002

2002/2

003

2001/2

002

2002/2

003

2001/2

002

2002/2

003

2001/2

002

2002/2

003

2001/2

002

2002/2

003

Social Sciences& Humanities

ResearchCouncil

Health Canada Natural Sciences& Engineering

ResearchCouncil

CanadianInstitute of HealthResearch (CIHR)

CanadaFoundation for

Innovation (CFI)

CanadaResearch Chairs

Other Federal

B.C.

Alta.

Sask.

Man.

Ont.

Que.

N.B.

N.S.

P.E.I.

Nfld

Federally Sponsored Research - By Province 2001 / 02 & 2002/2003 (in $ thousands)

$0

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

$700,000

$800,00020

01/

200

2

200

2/2

003

200

1/2

002

200

2/2

003

200

1/2

002

200

2/2

003

200

1/2

002

200

2/2

003

200

1/2

002

200

2/2

003

200

1/2

002

200

2/2

003

200

1/2

002

200

2/2

003

200

1/2

002

200

2/2

003

200

1/2

002

200

2/2

003

200

1/2

002

200

2/2

003

Nfld P.E.I. N.S. N.B. Que. Ont. Man. Sask. Alta. B.C.

Other FederalCanada Research ChairsCanada Foundation for Innovation (CFI)Canadian Institute of Health Research (CIHR)Natural Sciences & Engineering Research CouncilHealth CanadaSocial Sciences & Humanities Research Council

CAUBO Institutions - Comparison of Operating Revenue & Total Revenue2001/02 & 2002/2003 ($ in thousands)

Number Reporting Range (Total Revenue)

Total $ Value (in

thousands) % of Total

Average of

Operating Revenue / Total Revenue

Average of Operating Revenue

/ Total Revenue (2001/02)

16 $400,000-$1,500,000 $11,402,529 62.7% 54.1% 52.7% 20 $100,000-$399,999 $4,473,219 24.6% 68.3% 66.5% 19 $50,000 - $99,999 $1,468,087 8.1% 72.9% 71.3% 28 $10,000-$49,999 $ 746,155 3.9% 74.9% 73.0%

20 $0-$9,999 $ 97,145 0.5% 81.5% 77.1%

103 $18,187,135 100.0%

University & College Operating Expenditures By Category ($ in millions)2002/2003 - $10,697, 2001/2002 $9,670

Physical Plant, $1,173, 11%

Student Services, $803, 8%

Administration and General, $1,284,

12%

Computing and Communications,

$397, 4%

Library, $605, 6%

Non Credit Instructional, $316,

3%

Instructional, $6,120, 56%

Operating Fund - Total Expenses by Type ($ in millions)2002/03 - $10,698 - in 2001/2002 - $9,674

Communications, $88.9, 1%

Miscellanious, $60.1, 1%

Other, $1,165.3, 11%

Professional Fees, $159.8, 1%

Travel, $191.3, 2%

Library, $230.6, 2%

Utilities, $346.9, 3%

Salaries - Academic Ranks, $3,295.0, 32%

Materials & Operational Expenditures, $903.4, 8%

Building, Furniture& Renovations, $398.7, 4%

Interest, $57.7, 1%

Cost of Goods Sold, $30, 0%

Salaries - Other Instructional & Research,

$472.7, 4%

Benefits, $1,120.3, 10%

Salaries - Other Salaries and Wages, $2,935.6,

27%

Scholarship, Bursaries & Prizes, $406.9, 4%

Comparison of Scholarships - All Funds (% of total expenditures) by Province - 2000/01, 2001/02, 2002/03

0.00 1.00 2.00 3.00 4.00 5.00 6.00

Mean of %'s

BC.

Alta.

Sask.

Man.

Ont.

Que.

N.B.

N.S.

P.E.I

Nfld.

2000 / 2001 2001 / 2002 2002 / 2003

Total all funds expenditures on Scholarships, bursaries and prizes

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

1980

-81

1982

-83

1984

-85

1986

-87

1988

-89

1990

-91

1992

-93

1994

-95

1996

-97

1998

-99

2000

-01

2002

-03

The majority of the rapid expansion in scholarship expenditures has taken place in the last five years

0

75000

150000

225000

300000

375000

NEWFOUNDLAND

PRINCE E

DWARD IS

LAND

NOVA SCOTIA

NEW B

RUNSWIC

K

QUEBEC

ONTARIO

MANITOBA

SASKATCHEWAN

ALBERTA

BRITISH C

OLUMBIA

2002-03

1997-98

1992-93

Ontario share had a 52% share in 2002-03 up from 38% ten years earlier

Increases to fees charged for credit courses in Ontario produced less “teaching” revenue discounted for the impact of rising

student aid

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1,600,000

1992-93

1993-94

1994-95

1995-96

1996-97

1997-98

1998-99

1999-00

2000-01

2001-02

2002-03

$'00

0s

Scholarships

Net fees

Ad Hoc reporting Comparison with similar institutions (not

recommended unless you are very familiar with differences)

Demonstrate patterns or trends over time Monitor significant changes in both

revenue and expenditure lines and their components

Comparisons to groupings on regional, national, or similar characteristics (group institutions of similar size)

General Operating Fund - Sources of Income2000-2001

58.5%

35.0%

2.8%0.0%

3.8%

59.5%

32.3%

5.0%0.8% 2.4%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

Grants Tuition & other fees other income Donations Investment

U of L

CAUBO Universities

General Operating Fund – Sources of Income

% General Operating Income to Total Funds2001-2002

77.2%

48.9%56.7%

76.0%68.3% 71.0%

66.3%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

TheUniversity

ofLethbridge

Universityof Alberta

Universityof Calgary

BrockUniversity

Universityof Regina

WilfridLaurier

University

TrentUniversity

% General Operating Income to Total Funds

% General Operating Income to Total Funds2001-2002

77.2%

48.9%

56.7%

68.3%

71.0%

76.0%

66.3%

The University of Lethbridge

University of Alberta

University of Calgary

University of Regina

Wilfrid Laurier University

Brock University

Trent University

Inst

itut

ion

Total Funds Income

% General Operating Income to Total Funds

Human Resource Costs -% Total Operating Expenditures2001-2002

0%10%20%30%40%50%60%70%80%90%

Academic ranks &other instruction and

research

Other salaries andwages

Benefits TOTAL HumanResource Costs

The University of Lethbridge University of Alberta University of CalgaryBrock University University of Regina Wilfrid Laurier UniversityTrent University

Human Resource Costs

HR Costs as % of Total General Operating Expenditures 2001-2002

39% 38% 35% 35% 36% 35%

27% 28%28% 29% 28% 28%

10% 11%9% 10% 10% 11%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Atlantic Quebec Ontario Western TOTAL U of L

Academic & other instructional and research salaries Other salaries & wages Benefits

Human Resource Costs % Operating Expense

General Operating Expenses by Function2001/ 2002

0%5%

10%15%20%25%30%35%40%45%50%55%60%65%70%

Instruction and non-sponsored Research

Non-credit Instruction Library Computing andCommunications

Administration andGeneral

Student Services Physical Plant

University of Lethbridge

University of Alberta

University of Calgary

Brock University

University of Regina

Wilfrid Laurier University

Trent University

General Operating Expenses by Function

Financial Reporting – Training and Other Factors

Training will be developed for preparers of the CAUBO information to gain a better understanding of guidelines, improve consistency and understand how the data can be used.

Need to monitor more than just financial factors (e.g. student enrolment, institution’s competitive position, internal controls)

Keep apprised of current developments in Financial Reporting

QUESTIONS?