Presentation to Senate Office of the Vice-President (Finance and Administration)

May 30th, 2014

• Financial Overview

• News from Queen’s Park

• 2014-2015 Tuition Fees

• 2014-2020 - Planning Assumptions

• 2014-2015 – Allocations

• Questions

Presentation Outline

OVPFA Senate– May 30, 2014 #2

2013-2014 Investments

Operational Activity February 28, 2014 Operating $377m Pension $985m Ancillaries $ 83m Endowment $201m Research $ 60m Capital $ 40m Long Term Debt

Debt Financing for Buildings $135m

Financial Overview

OVPFA Senate– May 30, 2014 #3

Government Grants, 158

Tuition Fees, 213

Misc. Fees and Income, 14

Interest, 7

Source: Operating and Ancillary Budgets 2014-15 Finance/OIRP 2014-04-17

2014-15 Budgeted Operating Revenues

Total: $392 Million

OVPFA Senate– May 30, 2014 #4

Salaries, 213

Other Benefit Contributions, 30

Employer Pension Contributions, 31

Library Acquisitions, 5

Utilities, 9

Facility Maintenance & Renovations, 43

Student Aid, 29

Equipment, 5 Other, 27

Source: Operating and Ancillary Budgets 2014-15 Finance/OIRP 2014-04-17

Total: $392 Million

OVPFA Senate– May 30, 2014 #5

2014-15 Budgeted Operating Expenditures

Direction from November Board Meeting.

The Administration be directed to develop a balanced 2014-2015 operating budget that will permit progress towards institutional priorities.

OVPFA Senate– May 30, 2014 #6

Revenue:

• Enrolment Forecast:

• Undergraduate

• Graduate

• Tuition Fee Framework

• Government Funding

Expenditures

• Pension Plan

Budget Considerations

OVPFA Senate– May 30, 2014 #7

Applicants/Targets: 2014-2015

Carleton data as at April 16, 2014; OUAC data as at April 3, 2014

Carleton University First Year

Carleton Budget Targets – Full-time

2013 2014 % increase

First Year 6,158 6,100 -0.9%

Undergraduate 19,535 19,690 0.8%

Ontario University Application Centre Systems Data – First Year

2013 2014 % increase

Applicants* 138,226 139,084 0.6%

Confirmations 76,350 75,948 -0.5%

Confirmations (H.S. – OUAC 101s) 54,553 52,167 -4.4%

2013 2014 % increase

Applicants (1st and 2nd Choice) 11,457 11,055 -3.5%

Applicants 23,797 24,027 1.0%

Approved 17,244 17,678 2.5%

Confirmed 4,776 4,777 0.0%

OVPFA Senate– May 30, 2014 #8

Grant Eligible Graduate Enrolment

626 668

720

1816 1869

2000

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

2,200

Fa

ll T

erm

Fu

ll-t

ime

Eq

uiv

ale

nts

(F

TE

s)

Sources: OIRP enrolment data cubes; excludes eligible Dominican students (enrolments and limits) Master's limit includes 22 FTEs for the Indigenous Policy and Administration program starting in 2015 -16

Ministry funding

limits - after SMA 'process' (Winter 2014)

Master's

PhD

OVPFA Senate– May 30, 2014 #9

Current Pension Status

• Last valuation filed as of July 1, 2010. Plan value $688m with a wind-up deficiency of $168m and a going concern deficit of $48m.

• Preliminary results for July 1, 2013 valuation. Plan value of $850m with a wind-up deficiency of $159m and a going concern deficit of $87m.

OVPFA Senate– May 30, 2014 #10

Fall 2013 Pension Announcement

“Further relief for 3 years based on interest payments only on solvency deficit.”

OVPFA Senate– May 30, 2014 #11

Pension Cost to University

09-10 10-11 11-12 12-13 14-15

32

22

18

11

$M

11.5

20

21 21

18.3

* All numbers include payment to PBGF of approximately $1M

16-17 17-18 18-19

36

13-14

22 21

15-16

36 36

22 26

30

18.2

OVPFA Senate– May 30, 2014 #12

News From Queen’s Park

• Provincial election June 12, 2014

• 4-year tuition framework announced March 2013

• No more than 3% overall increase for domestic students

• 10% set-aside for student support

OVPFA Senate– May 30, 2014 #13

Government Grant Reductions

• “Efficiency Reduction” of $1,300,000 in each of 2013-2014 and 2014-2015 for a total of $2,600,000.

• “International Student Fee Reduction” of $643,000 in 2013-2014 and $600,000 in 2014-2015 for a total of $1,243,000

• Municipal tax grant reduction of $167,000 in 2013-2014 and $15,000 in 2014-2015 for a total of $182,000

OVPFA Senate– May 30, 2014 #14

2014-2020 Planning Assumptions

Revenue

• Retention at current rate.

• Domestic tuition fees will increase by 3% per year.

• First-year enrolment will decrease by 1% in 2014-2015 and then remain constant.

• Discounted government funding to university sector for undergraduate growth.

OVPFA Senate– May 30, 2014 #15

Expenditures

• Annual reduction in expenditures of $2.0m (suspended for 2014-2015 only);

• Extraordinary pension payments (started in 2010-2011);

• 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.

OVPFA Senate– May 30, 2014 #16

2014-2020 Planning Assumptions

2014-2015 Funding Available

for New Resource Allocation

• Base Operating $ 1.3m

• Fiscal Operating $13.0m

• Fiscal Capital Projects $27.0m

OVPFA Senate– May 30, 2014 #17

Priorities identified in Strategic Integrated Plan:

“Sustainable Communities – Global Prosperity”

• Programs for Today and Tomorrow

• Research Excellence & Connectedness

• Productive and Engaged Students

• Organizational Excellence

Major Priorities for 2014-2015 Budget

OVPFA Senate– May 30, 2014 #18

New Faculty Hires

• Two new faculty for Bachelor Health Science

• Two new faculty Masters & Doctoral Information Technology

• Three new Engineering faculty positions Building Information Systems, Mechatronics, Sensors & Data Analytics

• Two new faculty in School of Public Policy and Administration to support Masters in Philanthropy and Non-Profit Leadership and Indigenous Policy and Administration

• Two new faculty for Bachelor of Global and International Studies

2014-2015 Major Funding Initiatives

OVPFA Senate– May 30, 2014 #19

Staff Hires • One new position in Paul Menton Centre

• One new position in Office of Quality Initiatives to support Carleton Leader

• One new position in Education Technology Center to support online course development

• One new position in Engineering to support Masters and Doctoral Information Technology Program

• Two new positions in Public Affairs to support Indigenous Policy & Administration program and Bachelor of Global and International Studies

• Two new positions in Research & International to support research in Science & Public Affairs

OVPFA Senate– May 30, 2014 #20

2014-2015 Major Funding Initiatives

Capital Projects

New Construction • Funding for new Health Science Building $22.5m

Deferred Maintenance Projects • Steacie Building Phase 4 $ 2.0m • Loeb Building $ 2.0m • Library $ 2.0m • Washroom Renewal $ .4m

Other Fiscal Funding • Student Support $ 1.9m • Advertising / Public Relations $ .7m • Information Systems Renewal $ 1.3m

OVPFA Senate– May 30, 2014 #21

2014-2015 Major Funding Initiatives

Major Financial Uncertainties

• Demographics – Participation Rates

• Special payments to Pension Plan

• Operating Grant Reduction

• Provincial Election

OVPFA Senate– May 30, 2014 #22

QUESTIONS?

OVPFA Senate– May 30, 2014 #23