2004 - 2005 Consolidated Budget

Highlights

2

Summary

3

Table 1 - Operating Fund

4

Notes to Table 1 - Operating Fund Revenue

5

Notes to Table 1 - Operating Fund Expenditure

6-7

Table 2 - Contract Services Fund

8

Table 3 - Ancillary Services Fund

8

Human Resources Plan

9

Non-Recurring Budget Summary

10

Operating Capital Budget

11

• The Consolidated Budget exceeds $80 million for the first time, reflecting the continued growth of Vancouver Island University from a budget of $41 million in 1991, $20 million in 1981, and $0.6 million in the opening year of 1969.
  
  
• The Planning Assumptions, which underpin the development of the budget, identified a projected shortfall of $2.7 million.  That shortfall has now been eliminated in the finalized Consolidated Budget.
  
  
• The main contributors to the projected shortfall were inflation $1.6 million, investment in programs and services in excess of provincial funding $0.7 million, and provision for debt servicing $0.4 million.
  
  
• The Action Plan to address the projected shortfall was largely constructed around an increase to tuition fees.
  
  
• The projected Provincial Funding shows a modest net increase of 1.5% compared to the most recent years of 3.9%, 13.8%, and 10.6%.  However, the net increase reflects an actual increase of 3.0% and an offsetting reduction of 1.5%.
  
  
• Other revenue in the Operating Fund includes $240,000 accumulated surplus carried over from 2002/03.  The 2002/03 budget included $500,000 accumulated surplus from the previous year.

• The increase in the Instructional budget, at just under $2 million, is attributable to inflation on salaries and benefits, incremental progression, and increases to programs and sections through provincial funding, self-funding, and an enhanced contribution from International Education.
  
  
• Increases to instructional programs and sections are expected to increase access to approximately 475 student FTEs.
  
  
• Holding Accounts, detailed on page 7, include targeted funds, which have not yet been allocated to faculties and departments.  Similarly, the Non-Recurring Budget Summary and the Operating Capital Budget, detailed on pages 10 and 11 respectively, include a combination of allocations to faculties and departments and centrally held reserves.
  
  
• The Non-Recurring Budget is barely 50% of the level in 2002/03 due to the absence of some extraordinary balance sheet adjustments.
  
  
• The Operating Capital Budget, although showing an increase of 35% over last year, actually contains less in discretionary funds to allocate to faculties and departments.
  
  
• The projected returns to the institution from the Contract Services Fund and Ancillary Services Fund are maintained at the 2002/03 level of $1.2 million.  This amount is considered reasonable, even in volatile international and domestic markets and is over and above the third year of contribution to the self-funded Centre for International Education building project and a contribution to the mainly self-funded Library building project.

2003/2004

Budget

2002/2003

Revised

Budget

Favourable/

(Unfavourable)

Change

%

Table 1

     Operating Fund Revenue

$59,211,623

    $54,965,989

   $4,245,634

7.7

     Operating Fund Expenditure    

   60,475,382

   56,239,748

(4,235,634)

    (7.5)

$(1,263,759)

    $(1,273,759)

   $10,000

   0.8

Table 2
     Contract Services Fund Revenue

$16,395,000

$16,395,000

$0

0.0

     Contract Services Fund Expenditure

   15,349,885

   15,339,885

    (10,000)

     0.0

     Contract Services Fund Return

$1,045,115

$1,055,115

$(10,000)

     1.0

Table 3

     Ancillary Services Fund Revenue

$4,720,459

$4,720,459

$0

0.0

     Ancillary Services Fund Expenditure

     4,501,815

     4,501,815

$0

   0.0

     Ancillary Services Fund Return

$218,644

$218,644

$0

   0.0

Total Consolidated Budget

     Revenue

$80,327,082

$76,081,448

$4,245,634

   5.6

     Expenditure

80,327,082

76,081,448

(4,245,634)

   (5.6)

$     0

$0

$0

N/A

2003/2004

Budget

2002/2003

Budget

Favourable/

(Unfavourable)

Change

%

Provincial Funding

$44,007,886

$43,355,571

$652,315

1.5

Tuition and Other Fees

13,241,904

   9,585,612

  3,656,292

38.1

Other Revenue

       1,961,833

   2,024,806

     (62,973)

   (3.1)

$59,211,623

$54,965,989

$4,245,634

     7.7

2003/2004

Budget

2002/2003

Budget

Favourable/

(Unfavourable)

Change

%

Instruction

$33,042,707

$31,066,172

$(1,976,535)

(6.4)

Instruction and Student Services

     11,015,252

10,860,944

   (154,308)

(1.4)

Instructional Administration

3,461,981

  3,549,346

  87,365

2.5

General Services

9,315,290

  9,382,499

  67,209

0.7

Board and Senior Administration

1,770,901

  1,380,787

   (390,114)

(28.3)

Holding Accounts

       1,869,251

   0

      (1,869,251)

   N/A

$60,475,382

$56,239,748

$(4,235,634)

(7.5)

Provincial Funding - increase (decrease) is represented by:

Additions:

·       New Era FTE Funding

$1,226,510

·       Industry Training

    49,557

·       Non -Recurring Funding Adjustment

     (134,203)

·       Part-time Vocational Funding Eliminated

     (659,688)

·       Increase in Prior Year's Non-Recurring Funding Carryover

       170,139

$652,315

Tuition and Other Fees - increase (decrease) is represented by:

·       Credit Tuition

$3,457,650

·       Cost Recovery Programs

       198,642

$3,656,292

Instruction - (increase) decrease is represented by:

·       Health and Human Services

·       Science and Technology

·       Arts and First Nations Studies

·       Social Sciences and Management

·       Education

·       Trades and Applied Technology

·       BC Campus (on-line FTEs)

·       Developmental Education and PE

·       Regional Campuses/Centre

·       Other

·       CE Transitional Funding

$(851,842)

(331,932)

(253,839)

(127,602)

(130,062)

(149,252)

(133,280)

   (42,121)

(101,244)

     (5,361)

     150,000

$(1,976,535)

Instruction and Student Services - (increase) decrease is represented by:

·       Student Services

·       Registration

·       Research Support, Professional Development and Faculty Recruitment

·       Library and Information Technology

$(388,465)

   (62,821)

    153,766

   143,212

$(154,308)

Instructional Administration - (increase) decrease is represented by:

·       Trades and Applied Technology

·       Arts and First Nations Studies

·       Other

$57,328

      26,628

3,409

$87,365

General Services - (increase) decrease is represented by:

·       Resignations and Labour Adjustments

·       Human Resources and Occupational Health

·       Information Systems

·       Facilities Services & Campus Development

·       Advancement & Alumni Relations

·       Other

$445,836

  120,661

      (110,203)

      (332,676)

(70,000)

    13,591

$67,209

Board and Senior Administration:

·       Capital Campaign

·       Other

$400,000

9,886

$409,886

Holding Accounts Consist of:

·       Operating Capital Not Yet Distributed

·       Unallocated Non-recurring Funds

·       Provision for Debt Repayment

·       Service Enhancements Reserve

·       One-Time Ministry Grant

·       Instructional Enhancements Reserve

·       Fringe Benefits Reserve

$614,280

  27,315

  400,000

  334,488

  129,000

  64,168

  300,000

$1,869,251

2003/2004

Budgeted

Revenue

2002/2003

Actual

Revenue

Favourable/

(Unfavourable)

Change

2003/2004

Budgeted Returns

to Univ.-College

2002/2003

Budgeted Returns

to Univ.-College

Favourable/

(Unfavourable)

Change

$16,395,000

$16,395,000

$0

$1,045,115

$1,055,115

$(10,000)

2003/2004

Budgeted

Sales

2002/2003

Actual

Sales

Favourable/

(Unfavourable)

Change

2003/2004

Budgeted Returns

to Univ.-College

2002/2003

Budgeted Returns

to Univ.-College

Favourable/

(Unfavourable)

Change

$4,720,459

$4,720,459

$0

$218,644

$218,644

$0

2003/2004

FTEs

2002/2003

FTEs

Increase/

(Decrease)

FTEs

Regular Employees:

Administration

46.54

52.80

(6.26)

BCGEU

90.74

84.15

6.59

CUPE

149.96

145.23

4.73

MFA

291.84

277.07

14.77

579.08

559.25

19.83

Non-Regular Employees:

Administration

6.81

6.52

.29

BCGEU

28.72

33.41

(4.69)

CUPE

7.74

10.22

(2.48)

MFA

53.36

48.08

5.28

96.63

98.23

(1.60)

Total Employees:

Administration

53.35

59.32

(5.97)

BCGEU

119.46

117.56

1.90

CUPE

157.70

155.45

2.25

MFA

345.20

325.15

20.05

675.71

657.48

18.23

Notes:

·       Plan does not include C.E. instructors and certain other non-regular employees.

·       Plan relates to the Operating Fund and does not include employees in the Contract Services Fund or Ancillary Services Fund.

Sources of Funds:

Disposition of Funds:

2002/03 Excess of Revenue over expenditure carried over   - preliminary estimate

$240,000

Annualization of Tuition

Leap Year

$269,000

165,000

2003/04 Non-Recurring Funds:

Admin. PD

30,000

New Era / Annualization - CSCI / CYC

23,515

President's Development Fund

50,000

Other Program Growth

158,800

Capital Campaign

400,000

Ministry Funding Adjustment 100%

629,000

Alumni

10,000

High School Liaison

17,000

Senior Policy Advisor

27,000

CIO / Server Manager (Net)

48,000

Director of Library Overlap

8,000

Reserve

27,315

Total Sources of Funds

$1,051,315

Total Disposition of Funds

$1,051,315

Sources of Funds:

Proposed Distribution:

MAVED 2003/04 Grant

$674,685

Central Funds

$135,0001

MAVED One-Time Grant

500,000

Library

  500,000

Information Technology

   400,000

Instruction

  110,000

Services

   29,685

Total

$1,174,685

Total

     $ 1,174,685