Approved (March 27/12 UFV BOG) Budget Recommendation

Transcription

1 Approved (March 27/12 UFV BOG) Budget Recommendation

2 Table of Contents Executive Summary... 1 Budget Process... 2 Budget Allocation Recommendations and Fund Information... 2 General Operating Budget Three Year General Operating Budget Summary... 3 Inflationary Adjustments... 6 Grant and Tuition Adjustments... 8 Investment and Other Income Ancillary Services Continuing Studies Annual Capital Allowance (ACA) Reallocations and Reductions Special Purpose and Capital Activity Additional Comments Appendix A: Budget Principles Appendix B: Vacant Positions Appendix C: Operating Capital Budget Appendix D: Tuition Fees Appendix E: New and Discontinued Programs... 25

3 EXECUTIVE SUMMARY The Budget Recommendation reflects the challenging economic times facing post-secondary education. It is not a good news budget; but neither is it doom and gloom. It is a disciplined and principled plan built within the fiscal realities of our funding envelopes. The budget plan establishes how we have been able to manage inflationary pressures and respond to priorities through strategic reallocation of resources and revenue opportunities. Government policies provide the limits within which we operate. By legislation, we cannot plan a deficit budget, and since 2010, this is required to be on an all-funds basis. Tuition and mandatory fee increases are limited by the Tuition Limit Policy allowing for increases at the rate of inflation only. There is no funding increase for new FTE or inflationary costs, and funding for building and infrastructure maintenance has declined significantly over the past two years. As noted in Budget 2012, the government will be challenging post-secondary to reduce spending by about 1% by In addition, we will also be entering a new bargaining round under a cooperative gains mandate. This will allow for modest compensation increases if managed within existing budgets. Because of the unknown impact of these announcements, they have not been factored into the budget recommendation. The need to be more entrepreneurial is clear; but with entrepreneurial activity comes risk. The Budget Recommendation speaks to this with a necessary negative adjustment to the international tuition revenue budget. Given these parameters, the budget process was difficult. However, it was guided by the established principles and the strategic priorities of the University. New programs such as the Data Analysis Certificate, the Practical Nursing Diploma, and the Graphic and Digital Design Diploma, will be implemented through reallocations and revenue increases; institutional priorities have been met by reallocating resources; and the commitment to building on strengths and deliver high-quality education and service has been maintained. The economic challenges ahead will require we continue to be flexible, responsive and diligent in our planning. Page 1

4 BUDGET PROCESS The process begins with managers reviewing their prior year budget, identifying targets and goals for the coming year, and submitting departmental plans for budget consideration to their senior administrator. Discussions at departmental meetings and consultations with senior administrators result in a collated budget submission for each division. These submissions are then presented to the Senior Budget Committee comprised of the Provost & VP Academic, the VP Students, the VP External and the Chief Financial Officer, supported by the Advisor on Integrated Planning, the Director of Finance and the Budget Manager. Budget presentations are scheduled to give the opportunity to clarify submission content and answer questions from the committee. Final budget decisions are made by the Senior Budget Committee, guided by the Budget Principles. A consolidated balanced budget recommendation is prepared for consultation and approvals, with final approval and adoption by the Board of Governors in early April. Beginning this year, we are including detailed plans for the General Operating Budget along with high level budgets for an additional two years. This three-year horizon provides context for upcoming budgets and planning. BUDGET ALLOCATION RECOMMENDATIONS AND FUND INFORMATION The budget plan serves as a control and evaluation instrument within which account trustees and managers have the authority to spend and the responsibility to achieve targets. To enhance accountability, control and stewardship, UFV manages its financial resources by maintaining separate cost centres for activities grouped as follows: 1. General operating budget; a. Base operations (including annual capital allowance (ACA)) b. International Education c. Continuing Studies (CS) d. Ancillary Services 2. Special purpose, research and trust fund, including distributions from the University s endowment funds; 3. Capital Page 2

5 This document focuses on detailed budget allocations for base operations, International Education, Continuing Studies and Ancillary Services, referred to as the UFV General Operating Budget. Budgets for specific purpose, sponsored research and trust funds are approved by external funding agencies or designated funding from UFV reserves. Major capital projects are approved by the Board of Governors prior to project commitment. The effect of these activities on the annual financial statements has become significant due to the provincial all-funds, no deficit" legislation. The accounting impact of these activities on the annual financial statements is estimated in further detail later in this document. GENERAL OPERATING BUDGET Before the budget process began, Budget Principles were developed to ensure the environment and planning assumptions were widely understood and to guide decisions in the Budget Cycle. These Principles were approved by Senate and the Board of Governors in September The Budget Principles and further details on the budget process at UFV are attached as Appendix A. Three Year General Operating Budget Summary Table 1 provides a financial summary of the General Operating Budget for and the following two years based on the assumptions and principles included in the Budget Principles. The University cannot table a deficit budget. Note that future year budgets do not reflect any new investments in critical or priority areas. The forecasts include an approximately 1% allowance for salary increments and increasing benefit cost and approximately 1% increase for all other costs, including the costs of operating our facilities. With inflation at about 2%, the budgets, although increasing marginally in absolute dollars, actually translate to a reduction in spending power. Table 2 illustrates the gap between cumulative inflation and funding increases. Strategic investments for future budgets will be developed and approved as part of on-going integrated planning. However, these investments will require a reallocation or reduction of existing funding or new revenue sources in order to be achievable. Page 3

6 Table GENERAL OPERATING BUDGET Proposed GENERAL OPERATING BUDGET Proposed GENERAL OPERATING BUDGET Proposed GENERAL OPERATING BUDGET Revenues Provincial grants 56,094,726 56,110,246 56,110,246 56,110,246 Tuition & student fees 27,677,421 28,461,421 29,011,421 29,991,421 International student fees 10,329,886 10,334,886 10,734,886 10,734,886 Other grants & contracts 170, , , ,000 Investment and other 1,061, , , ,258 Department & internal cost recoveries 1,437,624 1,437,624 1,437,624 1,437,624 Ancillary revenues 7,095,004 6,890,004 6,890,004 6,890, ,865, ,205, ,155, ,135,439 ` Expenditures Salaries & benefits 78,293,536 79,267,730 80,017,730 80,767,730 Other expenditures 17,507,170 17,422,496 17,622,496 17,852,496 Scholarships, bursaries & St Work Study 1,013,000 1,088,000 1,088,000 1,088,000 Cost of goods sold 3,375,000 3,075,000 3,075,000 3,075,000 Debt service costs 653, , , ,996 Contribution to capital 1,933,867 1,626,717 1,645,217 1,645,217 International contribution to capital 1,090,000 1,090,000 1,090,000 1,109, ,865, ,205, ,155, ,135,439 Page 4

7 Table 2 The projection assumes that Ministry funding, approximately 54% of total general operating revenues, will remain at levels. The Provincial Budget, tabled February 21, 2012 indicates funding for the post-secondary sector will decrease over each of the following two years. No details are available and as this news came late in the budget process, this information has not been projected into future budgets. Provincial grant funding and student tuition and fees are the main revenue sources in the base operations. However, these sources alone are not enough to fully fund these activities. The operations of the University rely on a contribution from International Education, Continuing Studies and Ancillary Services for a balanced General Operating Budget. (Table 3) Table 3 Base Operations CS & Contract Administration International** Ancillary TOTAL GENERAL OPERATING Revenue Budget 84,798,912 1,947,651 10,334,886 7,123, ,205,439 Expense Budget 91,948,701 1,510,699 4,505,654 6,240, ,205,439 (7,149,789) 436,952 5,829, ,605 0 ** Note: The cost of educating international students is included in base operations expenditures. The $5.8M in International is not "profit" in International operations, but a transfer from International to cover the cost of educating our international students. Page 5

8 The net increase to the Budget is $339,520 or a 0.3% increase over last year s budget. (Table 4) Contractual obligations and commitments of $1.425M are managed within this net increase. The result is a budget that is focused on reallocations, efficiencies and reductions. Table 4 Revenues Costs Inflationary Tuition & student Fees - domestic students 539,000 Tuition & student Fees - international students 775,000 Contractual obligations contributable to salaries and benefits 1,175,000 Contractual obligations and commitments, infrastructure & services 200,000 Grant and Tuition adjustments Government grants (Provincial & ITA) 15,520 Tuition and student fees Domestic students 280,000 International students (770,000) Other Investment and other income (295,000) Reallocations and Reductions Academic reallocations and reductions (199,522) Administrative reallocations and reductions (555,514) Student support reallocations and reductions 69,556 Ancillary Ancillary services (205,000) (350,000) 339, ,520 Inflationary Adjustments Tuition and student fees are the second largest source of general operating revenue. Domestic student fees (including Continuing Studies) contribute 27% and international student fees 10% to total budget. Increases to domestic student tuition and mandatory fees are constrained by the Ministry s Tuition Limit Policy, limiting the increase in tuition to the rate of inflation set at 2%. International tuition fees, not captured under this policy, are increased by 7.9%. Together, increases to the tuition rates account for Page 6

9 an estimated revenue increase of $1,314,000. Appendix D includes detailed information on UFV tuition rates, along with provincial and national comparative information. For increases to employee benefits, employees moving through the salary scales, and reclassified positions amount to approximately $1,175,000. Approximately $650,000 of this increase is attributed to increasing employer benefit costs. MSP, extended health, dental, college and municipal pension, CPP, and EI rates have all continued to climb while base salaries have remained static. (Table 5) Table 5 25% Cumulative salary versus benefit increases 20% 15% 10% 5% MSP, EH, DES, LIF Pensions EI, CPP, WCB Total Benefits Salaries 0% 08/09 09/10 10/11 11/12 The institution has been making progress on reducing the number of employee vacancies. Whereas last year there were approximately 80 vacancies, this year the number has been reduced to approximately 48. Appendix B includes a list of vacancies as at February 20, The ratio of permanent to temporary employees also contributes to the cost of benefits. Permanent employees are entitled to additional benefits and as the permanent to temporary ratio increases, benefit costs increase. (Table 6) Page 7

10 Table % Change in permanent and temporary salaries over prior year 20.00% 15.00% 10.00% 5.00% 0.00% Permanent Temporary Non-salary contractual commitments for infrastructure and services are estimated at $200,000. Grant and Tuition Adjustments The operating grant provided by the Ministry of Advanced Education (AVED) is expected to increase by $176,000 reflecting the final funding for the 3 year Bachelor of Science in Nursing. The government has indicated post-secondary institutions will not receive new increases to funding, and funding to the sector will be reduced over the next two years. While there is significant student demand in our region, additional provincial growth funding is not expected in the near future. ITA funding was reduced by 5% last year resulting in the decision to discontinue a Carpentry intake at the Career Technical Centre (CTC). As registrations for this intake were in progress prior to the budget reduction, it was decided to continue the intake for a final year. The adjustment for the reduction is recognized this year with ITA grant revenue adjusted down by $160,000 and offsetting program expenditure reduction of $130,000. Table Budget change Budget Provincial Operating 53,776, ,000 53,952,084 ITA 1,899,642 (160,480) 1,739,162 Annual Capital Allowance (ACA) 419, ,000 56,094,726 15,520 56,110,246 Page 8

11 Domestic student enrolment targets for remain unchanged from the prior year level. Student demand remains strong, with a seat utilization rate in academic programs at approximately 93% and strong application numbers for the summer and fall of A positive budget variance in tuition and fee revenue sources is expected to continue and will add $280,000 in new revenue. International student enrolment targets were not achieved in Last year s budget planned on a 10% increase in international enrolments; actual results are an overall decline of approximately 2%. The lower enrolments are attributed to increased competition for international students in the postsecondary environment, temporary staffing shortages in the International Education department, and a deliberate change in admission requirements for international students at UFV. The change in admission requirements included an emphasis on students meeting program requirements prior to acceptance and then admitted directly into programs. This had some impact on ESL enrolments, but a shift from ESL to Academic programming enrolments was already evident (Table 8). More international students are getting English language training in their home countries or in private ESL schools prior to attending post-secondary institutions. Overall, international student enrolments have not increased; however enrolments in academic programs increased by approximately 10%. Business Administration and Computer Information Systems saw the largest number of new international student enrolments. Table 8 6,000 International Student Enrolments 5,000 4,000 3,000 2,000 1, ESL All Other Page 9

12 Adjustments have been made for the deficit in international student revenue to budget plans, and new international student growth is planned at 3% over last year s actual numbers. The main impact of the change in admission requirements has been captured this past year, and expectations are ESL enrolments will not continue to decline at this rate. Language requirements in will recruit students at a higher English-language level ensuring students are more language-ready for postsecondary programming. Academic enrolments have been increasing, and are expected to continue to increase. With more international students meeting program requirements prior to acceptance and admitted directly into programs, increased success and retention rates are expected, an effective strategy for growing international student numbers. Overall growth of 3% is a conservative, yet realistic target for The overall adjustment for change in international student enrolments is a budget reduction of $770,000. Investment and Other Income The relocation from the Chilliwack North campus to the Canada Education Park (CEP) campus occurs in time for the summer 2012 term. The Chilliwack North campus is for sale, but until it sells UFV will manage its cash to bridge finance the CEP campus development, resulting in a budget reduction of $300,000 in investment revenue. The remaining balance in this category is small adjustments in the research indirect costs grant and lease revenue at CEP. Ancillary Services New Ancillary Services revenue of $195,000 recognizes a contribution from guest rentals in the Student Residence during the summer months and parking fees at CEP beginning in the summer of $50,000 of parking revenue has been earmarked for repaying the cost of the new Parade Square parking lot on the CEP campus. The effect of digitized books and online textbook retailers has been challenging for University bookstores across the sector. The Bookstore revenue budget has been adjusted downward by $400,000. This reduction will be equally matched by expense savings in cost of goods sold and by eliminating two vacant positions within the Bookstore budget. The budgeted contribution from the Bookstore to the operations of the University remains unchanged. The net decrease of $205,000 in Ancillary Services revenue is more than offset by net expense savings of $350,000. The result is an increased contribution of $145,000 from Ancillary Services to the operations of the institution. Page 10

13 Continuing Studies Continuing Studies and contract activity are expected to contribute to the Operating Budget at levels (Table 2). Abbotsford Continuing Studies activity recently moved to the Clearbrook Centre, new and improved premises in the heart of the Abbotsford civic district. Plans for include an additional manager position to focus on enhancing and growing Continuing Studies programming. This is a revenue-funded position, and the net contribution from Continuing Studies to the budget remains at the prior year level. It is expected once the position is established; increased activity will generate additional revenue. Annual Capital Allowance (ACA) The Annual Capital Allowance grant which provides funding for building maintenance, technology infrastructure, minor renovations and safer campus initiatives, is expected to remain at the significantly reduced amount of $419,000 (from $1.6M in ). It will again require careful planning and management of annual maintenance work. The Provincial Budget, tabled on February 21, 2012 indicates there is $260M available for new capital, with the distribution of that capital contingent on the results of the recently completed Facilities Assessment Audit. The expectation is UFV will receive some of this additional funding for pressing maintenance projects. In May of 2012, most of the activity currently located at the Chilliwack North campus will move to the Canada Education Park (CEP). One-time funds will be used to assist with additional expenses related to the move, and also to fund maintenance and security costs at the Chilliwack North campus until the campus is sold. Reallocations and Reductions Net budget requests in excess of $3M were received for However, with contractual increases greater than tuition rate increases, a significant downward adjustment in international student tuition, and a decrease in investment income pending the sale of the Chilliwack North campus, the starting position was a deficit prior to considering any new requests. UFV is committed to providing excellent, quality education for our students. Guided by our Education Plan and Strategic Plan goals, budget deliberations became an exercise of reallocations and reductions. Page 11

14 Academic reallocations and reductions ($199,522) In keeping with the Budget Principles for FTE targets, programs have been reduced or suspended with savings reallocated for priorities and new initiatives: Reduced intake of Carpentry, precipitated by a reduction in ITA grant funding. The reduction was managed through a retirement in the Carpentry program. Net savings - $130,000 Two graduate certificate programs, Program Evaluation Certificate and Teacher Leadership Certificate, have been suspended due to a lack of student demand. Neither program had permanent faculty or staff. Net savings - $210,000 ESL program funding has been reduced as result of the decline in international students and excess capacity in the budget. The reduction was managed through one retirement and a reduction of part-time funding dollars. Net savings - $250,000 Upgrading and University Preparation funding has been reduced due to excess capacity in the budget. The reduction was managed through one retirement and a reduction of part-time funding. Net savings - $125,000 Reallocation of funding to academic programming for international student demand - $234,600 Funding for the new Data Analysis Certificate program. Increase - $43,200 College of Arts priorities: new hires in Philosophy and Diaspora Studies offset by vacancy reallocations; annualized funding for the Graphic and Digital Design program previously funded in ; start-up funds for GDD from District of Mission contribution; small adjustments to expense budgets. Net increase - $41,403 Faculty of Health Sciences priorities: BSN program operating increases, Practical Nursing diploma program, 1 FTE Department Assistant. Net increase - $84,696 Faculty of Professional Studies: support for Dean s Office and Business Administration Department, re: international student demand. Increase - $65,812 Faculty of Science: Biology support; CIS position to 100% net of sessional funding. Net increase - $25,767 Research: funding for Research Chair in Food Security. Increase - $20,000 Administrative reallocations and reductions - ($555,514) Reallocation of CIO funding added to budget; structure has been reorganized. Senior administration position and executive assistant position reallocated to an Associate Director and staff position in ITS. Net savings - $50,000 Heritage Park Manager, Mission campus: Increase - $18,360. Expense budget savings: adjustment to administrative budgets. Savings $23,874 Page 12

15 Point of Sale charges: final savings due to elimination of credit card payments. Savings - $125,000 Reduction of operating capital dollars: Savings - $375,000 (Appendix B) Student support reallocations and reductions $69,556 Reallocation of International Projects Fund to Internationalization Fund and Visiting Scholar Fund. Net savings - $55,000 International Student Scholarships & Bursaries funded from increase in International tuition rate. Increase - $75,000 Reallocation of Director of Assessment Services vacancy to Access & Assessment Coordinator and 50% Administrative Assistant. Net savings - $4,195 Support for convocation and institutional events. Increase - $13,380 Teaching & Learning Centre: new Educational Technologist position and additional 20% support position net of reallocations within existing budget. Net increase - $40,371 SPECIAL PURPOSE AND CAPITAL ACTIVITY The effect of legislative changes introduced in 2010 is universities cannot be in a deficit position at year end. Further clarification made it clear that non-cash items such as amortization expense and the use of prior year reserves or surpluses were to be included in the calculation of the bottom line position and therefore need to be funded and managed. Special Purpose and Sponsored Research Funds The activity in this category of accounts is considered as one-time projects and initiatives; it does not have an on-going permanent funding source. Some of the revenues received come with restrictions imposed by the funding agency and revenues are recognized as the expenditures for the project unfold. Other activity in this category is funded from revenue sources recognized in prior years such as prior year operating surpluses, therefore not having a revenue source in the current year. This activity fluctuates from year to year, depending on available funding, and projects and initiatives that are viewed as a priority for the institution. The provincial no-deficit legislation means this activity needs to be monitored, as the issue becomes one of planning that these expenditures do not create an accounting deficit rather than having available cash. Page 13

16 Trust Fund Activity in this fund includes one-time donation revenue and annual income from endowed funds. (Note, donations to endowments are not considered revenue, but go directly to equity.) All activity in this category comes with restrictions and therefore revenues are recognized only as the restrictions are fulfilled and the net annual financial impact is zero. Capital Fund The capital fund is estimated to have a $3.2M deficit in , mainly due to the unfunded amortization expense, a non-cash expenditure (Table 9). The effects are mitigated by current year budgeted transfers of approximately $2.6M. The remaining balance is managed through expense savings due to vacancies and, if necessary, the general operating contingency. Table 9 Capital Fund Budget Revenues Provincial Grant (Clearbrook City Lease) 331,000 Other Amortization of deferred contributions 5,515,000 5,846,000 Expenditures Salaries & Benefits Other Expenditures 931,000 Amortization Expense 8,158,000 9,089,000 Net position (3,243,000) Contributions to capital General Operating Budget 1,626,717 International contribution 1,090,000 2,716,717 Net Capital Fund deficit (526,283) Page 14

17 ADDITIONAL COMMENTS The UFV Collective Agreement expires on March 31, Like most public sector unions, the institution has completed two years of a net-zero mandate. The 2012 bargaining mandate allows public sector employers to negotiate modest compensation increases if they can find equivalent savings within existing budgets without reducing services or increasing costs to the public. This mandate has not been factored into the General Operating Budget. Page 15

18 Appendix A Budget Planning: Budget Principles The incremental budget method will be used this year. During the year, a new budget model that better aligns resources and funding allocations with strategic goals will be tested parallel to the incremental budget method. A new model is expected to be in place for the next budget year. As we begin the budget development, there are several significant considerations and assumptions that will help determine the final budget plan. Considerations and Assumptions: 1. By legislation, UFV cannot plan a deficit budget; 2. Tuition and student fee adjustments are limited by the Ministry Tuition Limit policy assume 2%; 3. Tax, legal and regulatory requirements must be adhered to; 4. The University will maintain an annual contingency fund of 1.5% of operating revenues as a provision for enrolment declines, emergency response and unforeseen expenditures; 5. The majority of Chilliwack North Campus activities will be relocated to the CEP campus resulting in some one-time and ongoing operating costs. 6. The current collective agreement ends March 31, Provincial mandate for negotiations is not yet known; 7. General FTE growth funding is not expected; 8. Grant funding for inflationary costs is not expected; 9. UFV activities will aim to align with government priorities (FTE targets, Government Letter of Expectations, University Act); 10. New accounting standards, as directed by the Ministry of Finance, will be implemented. Page 16

19 Budget Principles: 1. The budget will be guided by a consultative process within the basic parameter of zero growth funding. 2. As a general principle, budget allocations will be aligned with institutional goals as identified in the strategic plan, the education plan and enrolment plan. 3. The budget plan will be based on domestic student numbers that will not exceed 105% of the Ministry FTE target for New programs and FTE's will be managed through an enrolment plan linked to a reallocation of current FTEs % of our enrolments will be funded by International students 5. Efficiency and effectiveness of programs or service activities will be a consideration when making budget allocation decisions. Recommendations from completed program and service reviews will be taken into consideration. 6. Increasing revenues from alternative sources will be a priority. 7. The budget will be balanced while maintaining the quality of programs and services; budget reductions, if necessary, will be targeted rather than across the board. 8. In considering expense reductions, non-salary items will be considered before salary commitments. 9. Budget additions will be considered where offset by reductions, reallocations or revenue increases. 10. The budget will be developed in a manner which will minimize risk to the university; revenue and expense estimates will be conservative. 11. The budget will not postpone dealing with projected deficits; the budget will be balanced without deferring liabilities to future year budgets. 12. Vacant positions and new postings will not be filled automatically limited resources will be allocated according to institutional priorities. Page 17

20 Budget Timeline Key Budget Date Key Budget Tasks July to Sept 30 July - Aug Tues, Aug 30 Thurs, Sept 1 Tues, Sept 6 Fri, Sept 16 Fri, Sept 23 Tues, Oct 11 Thurs, Oct 13 Mon, Oct 17 Present to Board Planning Document Preparation Work Budget office to calculate contractual and mandatory obligations and prepare preliminary budget position Draft Budget Principles prepared Includes overview of Strategic Plan; Ed plan; Enrolment Mgmt plan; Letter of Expectations; environmental scan; demographics and key drivers; FTE and registration trends. Present to President's Exec Present to Senate Budget Committee Present to SAG Budget Principles Present to Senate Presented to stakeholder groups for consultation and Disribute to SUS Exec/FSA forwarded to the Board of Governors for approval. Present to Finance Committee of Board Release of Budget Principles and Budget Template packages to Budget Account Managers for preparation of Budget Submissions. Oct 17 - Nov 18 Nov Consultation and discussions between Budget Account Managers and their Senior Administrator. Budget Office to be a resource and provide information and assistance to Budget Account Managers to complete submissions; presentations at dept meetings as necessary. Budget Account Managers to submit budget submissions to appropriate Senior Administrator. Senior Administrators to prepare budget packages for budget presentation; could include coordination with other depts., consolidation of requests, and collation of packages (e.g. Dean's council meeting to align academic budget presentations) Tues, Nov 29 Dec 5 to 16 Last date for Senior Administrators to send budget submissions to Budget Office Presentations to Senior Budget Committee (VP's, CFO) of short form plan and summary of budget submission (20 minute presentation, 20 minutes questions). Budget department to rebuild budget documents and collate revisions, if any. Mon, Jan 9 PEM/VP's Update of preliminary budget plan Thurs, Feb 2 Present to Senate Budget Committee Update of the budget status; include preliminary projections Tues, Feb 7 Present to SAG Update of the budget status; include preliminary projections Feb 8-14 Senior Budget Committee to finalize deliberations; Prepare the consolidated Budget Plan for recommendation and approvals Page 18

21 Feb Mon, Feb 27 Thurs, Mar 1 Thurs, Mar 8 Mon, Mar 5 Fri, Mar 16 Tues, Mar 27 Thurs, Apr 12 April - May Senate Budget Committee SAG Budget Advisory Committee (FSA/SUS) Senate Board Finance and Audit Committee Board of Governors Budget Office to prepare Budget Recommendation Package, consolidate budget data, prepare narrative budget details Budget reviewed at President's Executive - edits to budget package prior to further distribution Recommended Budget presented Balanced budget plan with detailed allocation of resources, link to strategic priorities, impact on students, employees, and strategic goals Presentation of UFV Approved Budget to UFV forums; Distribution to account holders, posted in FAST, web links Page 19

22 Appendix B Vacant Positions Department Vacancies Admin Faculty Staff Total Ancillary Services Campus Card AVP Employee Services AVP Employee Services CFO Maintenance and Operations Purchasing College of Arts Indigenous Studies Faculty of Humanities English Graphic Design Visual Arts Faculty of Social Sciences Economics Master of Criminal Justice School of Criminology and Criminal Justice Faculty of Access and Open Studies Dean's Office Faculty of Health Sciences Dean's Office Health Care Assistant Kinesiology and Physical Education Licensed Practical Nursing Registered Nursing Faculty of Professional Studies Adult Education Adult Education - Library and Information Technology Master of Social Work School of Business Administration Teacher Education Program Faculty of Science Biology Chemistry Computer Information Systems International Education International Education Provost and VP Academic Centre for Teaching and Learning Information Technology Services Provost Office Vice Provost VP External Athletics VP Student Admissions and Records Director of Student Services Student Services Information Desk Continuing Studies Continuing Studies Total Vacancies in FTE's Page 20

23 Appendix C Operating Capital Budget Allocation from General Operating Budget 695,000 Fleet Replacement Reserve (20,000) Computer Replacement (computer refresh cycle) (440,000) E-rooms, ITS maintenance & initiatives (160,000) Emerging initiatives (TBD) (75,000) (695,000) The annual allocation to the Operating Capital Budget is reduced to $695,000 in , down from $1,070,000 in the prior year. The year-end balance in our operating capital fund is expected to be approximately $2.5M. Since the implementation of the computer refresh program in 2007, the institution is better able to manage and budget computer and technology expenditures, the largest on-going expenditure in this category. With the addition of the Trades and Technology Centre and the new Health Sciences Building at CEP scheduled to complete in the spring of 2012, substantial new investments have been made in capital intensive programs over the last number of years. The reserve in this fund will allow us to handle program capital priorities, although accessing prior year balances also becomes challenging with the nodeficit legislation. With the reduced ACA funding, larger maintenance and operating infrastructure projects will need to access the $260M the Province has set aside for capital maintenance and improvements. The process for access to this fund has not yet been communicated. Page 21

24 Appendix D Tuition Fees (Proposed) (2% fee increase) Credit Courses Adult Basic Education (ABE) courses Graduate Courses ESL courses Courses numbered All Vocational Courses Weekly (Begins Fall 2011) Trades & Technology Courses Weekly (Begins Fall 2011) Tuition/credit $ $0.00 $ $54.73 $ $ Ancillary fee/credit $12.88 $5.47 $12.88 $5.47 $12.88 $10.66 TOTAL/credit $ $5.47 $ $60.20 $ $ credit course $ $16.41 $1, $ $ $ credit course $ $21.88 $2, $ $ $ Typical vocational 16- week term: n/a n/a n/a n/a $2, $1, Program Specific Fees (Proposed) (2% fee increase) Program Ancillary Total Appli ed Bus i nes s Technology $6, $ $6, s emes ter Architectural Drafting Technici an Certifica te $ $4, s emes ters Certified Dental Assistant $5, $ $5, semesters Dental Hygiene (2-yr progra m) Tuition $4, Program Cost Yr 1: $8, $ $9, Yr 2: $8, $ $9, Payments Over 6 s emes ters Health Care Assistant $2, $ $2, semester Practica l Nurs i ng $12, $ $12, s emes ters Tea cher Educa ti on Progra m $8, $ $9, s emes ters Workpla ce TASK $1, $ $1, s emes ters Page 22

25 BC Public Post-Secondary Institutions Comparison to UFV Academic Arts Annual Tuition Fees for Full-Time Students by Sector Universities Tuition Fees Mandatory Fees Total Fees Tuition Only increase over Fee Difference Between UFV and Other Institutions Tuition Fees Mandatory Fees Total Fees Capilano University $3, $49.94 $3, % -$ $ $ Emily Carr University $3, $ $3, % -$ $ $ Kwantlen Polytechnic University $3, $ $3, % -$ $ $ Royal Roads University $6, $93.50 $6, % $2, $ $2, Thompson Rivers University $3, $ $4, % -$ $ $ University of the Fraser Valley $3, $ $4, % $0.00 $0.00 $0.00 Vancouver Island University $3, $ $4, % $ $ $ Simple Average $4, $ $4, % $ $ $ Colleges Simple Average $2, $ $2, % -$1, $ $1, Research Universities Simple Average $4, $ $5, % $ $ $ Page 23

26 Average Undergraduate Tuition Fees for Canadian full-time students, by province The average undergraduate tuition rate in British Columbia is well below the national average, with only Manitoba, Quebec, and Newfoundland and Labrador with lower average tuition rates. The percent change in average undergraduate tuition from to nationally was a 4.3% increase, while British Columbia was only 2.0%. The only Provinces with lower % increases were Manitoba at 1.4% and Newfoundland and Labrador at 0.0% to current dollars % change Canada 5,146 5, Newfoundland and Labrador 2,649 2, Prince Edward Island 5,131 5, Nova Scotia 5,497 5, New Brunswick 5,647 5, Quebec 2,411 2, Ontario 6,316 6, Manitoba 3,593 3, Saskatchewan 5,431 5, Alberta 5,505 5, British Columbia 4,758 4, Page 24

27 Appendix E New and Discontinued Programs New Programs: Adult Education and Workplace Training Certificate Type B certificate (Senate approved Nov 18/11) o 12 credit certificate of courses already being offered for the BA Adult Education. Data Analysis Post-degree Certificate Type B certificate (Senate Approved Dec 9/11) o 9 course program of mostly existing courses. o Program will be taking a cohort with a large portion of international students paying a differential tuition fee for the program of $14,000 to cover the costs of offering the program. o Domestic Students will be paying the standard per credit tuition rate. Economics Major for the Bachelor of Arts (Senate approved Feb 17/12) o New Major will offer additional upper level economics courses. o Tuition will be the standard per credit rate. o Resources for program are available within the College of Arts. Diploma in Practical Nursing (Senate approval pending) o Major provincial curriculum changes require a change to a two year diploma from a 1 year certificate. o This program is considered a new program as it is a significant change to the old curriculum. A differential tuition rate can be applied to the program and is expected to be around $12,000 for the program, which is consistent with other post-secondary institutions. Program Reinstatements: Anthropology Extended Minor (Senate approved Nov 18/11) o Last included in UFV Calendar 1988/89. o Courses already offered through related major. Sociology Extended Minor (Senate approved Nov 18/11) o Last included in UFV Calendar 1988/89. o Courses already offered through related major. Graphic Design Diploma (Senate approved Feb 17/12) o Program was never discontinued, but now being offered with an update format and curriculum. o Courses will be offered on Mission Campus. o Much of the equipment required for the program will be provided by the students. Page 25

28 Program Suspensions: Graduate Certificate in Teacher Leadership and Mentorship o Due to lack of demand this program and related budget is being suspended until sufficient demand to run the program on a cost recovery basis is established. Graduate Certificate in Program Evaluation o Due to lack of demand this program and related budget is being suspended until sufficient demand to run the program on a cost recovery basis is established. Program Discontinuation: Speech and Language Assistant Diploma (Senate approved Feb 17/12) o Program has not been offered in a long time and is not anticipated to be offered again. o There is little demand for the program. Literacy Tutor Certificate (Senate approved Feb 17/12) o The program has been listed as unavailable in the academic calendar since 2008/09 due to declining demand. Page 26