2019/20 Budget Consolidated Budget Senate March 25, 2019 2019/20 - - PowerPoint PPT Presentation

2019/20 Budget

Consolidated Budget Senate – March 25, 2019

2019/20 Budget

Presentation Outline

• Budget Structure
• Consolidated All-Funds Budget
• Revenues and Expenditures
• Expenditure by Portfolios
• Conclusions and Future Budget Projections

ALL FUNDS Budget

OPERATING FUND: Funds for the

day-to-day needs of TRU to support teaching and administration. 76% of the

• perating expenses are salaries & benefits

CAPITAL FUND: Money used to fund

campus infrastructure and maj or equipment purchases.

ANCILLARY FUND: This fund captures

all of TRU’s non-academic revenue generating activities such as the Bookstore, parking, food services, etc.

SPONSORED RESEARCH FUND: Funds

restricted for externally funded research.

SPECIFIC PURPOSE FUND: Includes

Faculty PD funds; specific purpose funds and bursaries.

2019/20 Budget

Budget Structure

Consolidated All-Funds Budget

2019/20 Budget

2019/20 Budget

Consolidated All-Funds (000’s)

19/20 Budget (Draft) 18/19 Budget (Original) 18/19 Forecast (to March 2018) 17/18 Year End Actual Revenue $233,460 $221,048 $229,651 $207,606 Compensation & Benefits (140,697) (124,177) (129,113) (119,275) Direct Expenditures (78,522) (72,418) (81,199) (74,144) Accounting Surplus (before

endowments)

$14,241 $24,453 $19,339 $14,187 Capital Spending (TRU funds) (34,942) (31,113) (32,525) (8,335) Reserve (Usage) / Contribution $(20,701) $(6,660) $(13,186) $5,852

2019/20 Budget

Capital Spending Plan (000’s)

Project Total TRU Funded Externally Funded Accounting Surplus $14,241 Nursing Population & Health Building (NPH) $24,442 $24,442 $0 Upper College Heights Renovations 5,000 5,000 Maintenance, Improvements & Upgrades 2,816 971 1,845 Campus Design Public Realm 880 880 Furniture, Fixtures & Equipment 2,749 2,749 Solar Arrays 650 650 Books 250 250 Total Planned Capital Spending $36,787 $34,942 $1,845 Drawdown of Reserves ($20,701)

2019/20 Budget

Overall Budget Assumptions (000’s)

19/20 Budget (Draft) vs 18/19 Budget (Original) Revenues: ADD: Increase Operating & Other Grants $3,639 ADD: Increase Tuition – Domestic 1,329 ADD: Increase Tuition – International 4,598 ADD: Increase Lab and Course Fees 361 ADD: Increase Other Revenues 2,485 Increase in Revenues $12,412 Expenses: ADD: Increase Compensation (All Categories) $21,520 LESS: Vacancies Contingency Assumption (no change from 18/19) (5,000) ADD: Increase Direct Expenditures 2,304 ADD: Elimination Unspent Direct Expenditure Contingency 3,800 Increase in Expenditures $22,624 Anticipated Decrease in Revenue to Expenditures ($10,212)

Revenues and Expenditures

2019/20 Budget

2019/20 Budget

Consolidated Revenue

Notes:

• % within the pie represents that category’s percentage of all consolidated revenues
• % increase/decrease in the legend labels represent changes from 18/19 budget (original) to 19/20 budget (draft)

Tuition +6.51% Grants (other):

• 14.84%

Lab & Course Fees: +2.93% Interest, Sales & Other Revenue: +7.74%

34% 4% 42% 5% 15%

$233.5M

Provincial Grants: +7.4%

2019/20 Budget

Consolidated Revenue: Tuition Breakdown

Notes:

• % increase/decrease in the legend labels represent changes from 18/19 budget (original) to 19/20 budget (draft)
• Dom. UG/OC:

+0.61%

• Dom. UG/OL:

+10.99%

• Dom. Grad/OL: +12.61%

Int’l. UG/OC: +1.56% Int’l. Grad/OC: +42.67% Int’l. UG/OL: +78.99%

28% 10% 1% 2% 47% 5% 7% 0%

$97.0M

Int’l. Grad/OL: -31.43%

• Dom. Grad/OC:

+2.08%

2019/20 Budget

Consolidated Expenditures

64.2% 7.4% 6.5% 3.6% 4.3% 14.0%

$219.2M

Notes:

• % within the pie represents that category’s percentage of all consolidated expenditures
• % increase/decrease in the legend labels represent changes from 18/19 budget (original) to 19/20 budget (draft)

Other: +21.23% Amortization: +15.85% Operating Supplies: +1.25% Compensation & Benefits: +13.30% Building, Equipment Operations & Maintenance: +12.05% Professional Fees, Memberships & Contracted Services:

• 12.06%

2019/20 Budget

Consolidated Expenditures: Compensation Breakdown

52% 7% 25% 19%

• 3%

$140.7M

Notes:

• % within the pie represents that

category’s percentage of all consolidated expenditures

• % increase/decrease in the

legend labels represent changes from 18/19 budget (original) to 19/20 budget (draft)

TRUFA (Salaries & Benefits): +13.8% TRUOLFA (Salaries & Benefits): +20.24% CUPE (Salaries & Benefits): +15.24% Excluded (Salaries & Benefits): +15.96% Other: +152.50%

2019/20 Budget

Consolidated Expenditures – Compensation and Benefits

$0 $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 Excluded Support OL Faculty Members Faculty Sessional/PTIC Faculty Tenure/Tenure Track 17/18 Year End Actual 18/19 Forecast 18/19 Original Budget 19/20 Draft Budget

2019/20 Budget

Consolidated Expenditures – Compensation Trend

$18,264 $19,404 $19,276 $18,753 $20,510 $21,779 $22,694 $25,407 $53,398 $56,568 $54,357 $55,405 $57,490 $60,358 $65,141 $70,573 $26,361 $27,224 $26,673 $26,925 $27,772 $28,965 $32,349 $34,379 $4,977 $5,801 $5,978 $6,326 $7,049 $7,562 $8,446 $9,075 $715 $1,581 $1,020 $511 $467 $611 $483 $1,263 $- $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 $70,000 $80,000 $90,000 $100,000 $110,000 $120,000 $130,000 $140,000 $150,000 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 Excluded TRUFA CUPE TRUOLFA Other Compensation

Expenditure by Portfolios

2019/20 Budget

2019/20 Budget

Expenditure by Portfolio (000’s)

2019/20 Budget (Draft) 2018/19 Budget (Original) % Change* 2018/19 Forecast** 2018/19

Increase/Decrease

*** VP Academic and Provost Portfolio $115,241 $109,046 5.68% $111,871 $3,370 VP Admin and Finance Portfolio 30,036 28,669 4.77% 31,629 (1,593) VP Advancement 2,775 2,049 35.43% 2,802 (27) President Portfolio 6,642 5,811 14.30% 6,968 (326) TRU World 12,123 12,098 0.21% 12,688 (565) Institution 10,067 763 1219.40% 3,293 6,774 Non-Operating Funds 42,335 38,159 10.94% 41,061 1,274 $219,219 $196,595 11.51% $210,312 $8,907

Notes: *Comparing 2019/20 Budget to 2018/19 Budget **Forecasted to March 31, 2019 *** 2019/20 Budget increase/(decrease) over 2018/19 Forecast

2019/20 Budget

Percentage of Expenditures by Portfolio

53% 14% 1% 3% 5% 5% 19%

$219.2M

VP Administration & Finance Portfolio; +4.77% VP Advancement; +35.43% President Portfolio; +14.30% TRU World; +0.21% Institutional; +1219.40% Non-Operating Fund; +10.94% Provost & VP Academic Portfolio; +5.68%

2019/20 Budget

Vice-President Academic and Provost Portfolio (000’s)

2019/20 Budget (Draft) 2018/19 Budget (Original) % Change* 2018/19 Forecast** 2018/19

Increase/Decrease

***

Faculty of Science $16,621 $15,511 7.16% $16,459 $162 School of Business and Economics 11,292 9,257 21.98% 11,266 26 Faculty of Education and Social Work 11,491 9,758 17.76% 10,925 566 School of Nursing 6,428 6,148 4.55% 6,054 374 Faculty of Adventure, Culinary Arts and Tourism 5,337 5,126 4.12% 5,472 (135) Faculty of Arts 12,159 11,455 6.15% 12,193 (34) Faculty of Law 4,428 4,103 7.92% 4,153 275 School of Trades and Technology 7,036 7,070

• 0.48%

6,776 260 University Library 4,286 3,820 12.20% 3,995 291 Enrolment Services and University Registrar 7,433 7,049 5.45% 7,188 245 Faculty of Student Development 5,170 4,596 12.49% 5,382 (212) Office of Quality Assurance 1,236 567 117.99% 613 623 Research and Graduate Studies 1,546 1,897

• 18.50%

1,517 29 Open Learning 14,935 14,344 4.12% 14,566 369 Williams Lake - Academic 3,594 3,203 12.21% 3,448 146 Regional 599 591 1.35% 712 (113) VP Academic and Provost 1,650 4,551

• 63.72%

1,152 498 VP Academic and Provost Portfolio $115,241 $109,046 5.68% $111,871 $3,370

Notes: *Comparing 2019/20 Budget to 2018/19 Budget **Forecasted to March 31, 2019 *** 2019/20 Budget increase/(decrease) over 2018/19 Forecast

2019/20 Budget

Vice-President Administration and Finance Portfolio (000’s)

2019/20 Budget (Draft) 2018/19 Budget (Original) % Change* 2018/19 Forecast** 2018/19

Increase/Decrease

*** Environmental and Sustainability $2,345 $2,244 4.50% $3,240 ($895) Facilities 4,970 4,952 0.36% 6,152 (1,182) Athletics and Recreation 2,817 2,533 11.21% 2,891 (74) IT Services 7,381 6,374 15.80% 7,663 (282) Human Resources and Planning 2,592 2,571 0.82% 2,746 (154) Integrated Planning & Effectiveness 1,449 1,215 19.26% 1,446 3 Risk Management Services & OSEM 1,244 1,065 16.81% 1,258 (14) Finance and Procurement Services 4,515 4,388 2.89% 4,225 290 Internal Audit 202 198 2.02% 200 2 Williams Lake - Administration 1,131 1,386

• 18.40%

1,135 (4) VP Administration and Finance 1,390 1,743

• 20.31%

673 717 VP Admin and Finance Portfolio $30,036 $28,669 4.77% $31,629 ($1,593)

Notes: *Comparing 2019/20 Budget to 2018/19 Budget **Forecasted to March 31, 2019 *** 2019/20 Budget increase/(decrease) over 2018/19 Forecast

2019/20 Budget

President and Vice Chancellor Portfolio (000’s)

2019/20 Budget (Draft) 2018/19 Budget (Original) % Change* 2018/19 Forecast** 2018/19

Increase/Decrease

*** TRU Secretariat $1,265 $1,236 2.35% $1,393 ($128) Marketing and Communications 3,733 3,271 14.12% 3,863 (130) Office of the President 796 572 39.16% 710 86 Indigenous Affairs 848 732 15.85% 1,002 (154) President Portfolio $6,642 $5,811 14.30% $6,968 ($326)

Notes: *Comparing 2019/20 Budget to 2018/19 Budget **Forecasted to March 31, 2019 *** 2019/20 Budget increase/(decrease) over 2018/19 Forecast

Conclusions and Future Budget Projections

2019/20 Budget

2019/20 Budget

Multi-Year Budget Assumptions

Assumption 2019/20 2020/21 2021/22

Grants Wage Mandate & NPH DCC’s Wage Mandate & NPH DCC’s Wage Mandate Tuition – Domestic (enrolment) 2.2% 1.1% 0.9% Tuition – Domestic (fee increase) 2.0% 2.0% 2.0% Tuition - International (enrolment) (2.6)% 0.9% 0.9% Tuition – UG International (fee increase) 3.0% 3.0% 3.0% Lab & Course Fees (enrolment) 0.8% 1.1% 0.9% Lab & Course Fees (fee increase) 2.0% 2.0% 2.0% Other Revenue 2.0% 2.0% 2.0% General Wage Increase 2.25% 2.25% 2.25% Promotions & Progressions (Faculty) 2.0% 2.0% 2.0% Non-Compensation – Inflation 2.1% 2.1% 2.1%

2018/19 Budget 2019/20 Projection 2020/21 Projection 2021/22 Projection Provincial Grants $73,453 $78,886 $80,886 $82,886 Grants Other 12,089 10,295 10,295 10,295 Tuition Domestic 38,499 39,828 41,224 42,582 Tuition International 52,550 57,148 59,424 61,566 Lab & Course Fees 12,333 12,694 13,080 13,460 Sales Revenue 18,244 20,931 21,208 21,506 Interest & Other Revenue 10,985 10,492 10,226 10,415 Internal Sales & Transfer 2,895 3,186 4,278 5,536 Revenue Total $221,048 $233,460 $240,621 $248,246

2019/20 Budget

Future Budget Projections: Revenues (‘000’s)

2018/19 Budget 2019/20 Projection 2020/21 Projection 2021/22 Projection Faculty Tenure/Tenure Track $44,706 $50,880 $52,609 $54,461 Sessional/PTIC 8,422 9,661 9,854 10,051 Faculty Benefits 11,113 12,563 12,790 13,045 Open Learning Faculty Members (OLFM) 6,515 7,833 7,973 8,132 OLFM Benefits 1,303 1,567 1,593 1,625 Support 24,809 28,583 29,126 29,709 Support Benefits 6,094 7,029 7,135 7,278 Excluded 18,997 21,991 22,601 23,253 Excluded Benefits 3,698 4,327 4,402 4,490 Other 3,520 1,263 1,263 1,263 Vacancies/Unspent Contingencies (5,000) (5,000)

• Compensation Total

$124,177 $140,697 $149,346 $153,307

2019/20 Budget

Future Budget Projections: Expenses - Compensation (‘000’s)

2018/19 Budget 2019/20 Projection 2020/21 Projection 2021/22 Projection

Professional Fees & Contracted Services $18,389 $16,172 $16,575 $16,923 Building, Equip, Ops & Maintenance 12,777 14,316 15,206 15,525 Operating Supplies 7,686 7,782 7,950 8,117 Travel & Training 5,742 6,001 6,125 6,254 Advertising, Promo & Recruitment 3,052 3,222 3,287 3,356 Bursaries, Awards & Scholarships 4,513 5,193 5,244 5,296 Cost of Goods Sold 7,101 7,567 7,728 7,890 Amortization 8,178 9,474 9,774 10,374 Other Expenditures 8,780 8,795 8,882 8,990 Unspent Contingencies (3,800)

• Direct Expenditure Total

$ 72,418 $78,522 $80,771 $82,725 Accounting Surplus $24,453 $14,241 $10,504 $12,214 Capital Spending (31,113) (34,942) (10,000) TBD

Reserve (Usage)/Contribution ($6,660) ($20,701) $504

• 2019/20 Budget

Future Budget Projections: Direct Expenditures (‘000’s)

Last Year’s (FY2018/19) Conclusions & Future Imperatives Outcome

• Surplus budget achieved as a result of significant

international (i.e. India) enrolment growth

• Actual surplus achieved approximately $5M

lower than budgeted due to increased costs

• Surpluses become reserves that can only be used

for capital projects. There is significant capital spending anticipated for FY2018/19 that will use all

• f the FY2018/19 surplus
• TRU spent approximately $1.5M more on

capital than anticipated in FY2018/19 against a smaller overall surplus

• A significant portion of the reserve ($5M in

FY2018/19) will be used to refresh classrooms and labs on campus over the next few years

• Old Main Classroom renovations were
• achieved. Future classroom improvements on

hold until greater certainty in enrolment is achieved

• Financial sustainability exercise to prepare for

“correction” to international enrolment numbers

• The Financial Sustainability Working Group

met for the first time in March 2019 and has a series of planned projects towards this end.

• Align international enrolments to Strategic

Enrolment Plan

• TRU SEM plan under development.
• Unfilled vacancies expected to contribute

significantly to FY2018/19 anticipated surplus (and beyond)

• And it did….except TRU did significantly more

hiring than was initially planned therefore minimizing the impact of the actual vacancies

• Domestic on-campus enrolment remains a

challenge

• TRU SEM plan under development

2019/20 Budget

Conclusions and Future Imperatives

• Develop and implement projects initiated by the Financial

Sustainability Working Group (FSWG) to ensure ongoing

• ptimization between costs, enrolment and capital

development;

• Continue to make strategic investments in domestic

enrolment initiatives;

• Continuously monitor international markets to mitigate risks

and take advantage of opportunities that can further diversify the student body;

• Approve a strategic enrolment plan and begin to implement

recommendations within our planning framework.

2019/20 Budget

Conclusions and Future Imperatives