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Consolidated Resource Plan

2017 – 2018

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Consolidated Resource Plan 2017 – 2018

For Presentation:

Budget information can be found at: https://www2.viu.ca/budget/index.asp

February 1, 2017 - To President’s Council

February 27, 2017 - To Planning and Priorities Committee

March 2, 2017 - Planning and Priorities Committee Reports to Senate

March 30, 2017 - Finance Committee Presents to the Board of Governors for Approval

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Presentation Objectives

Provide a summary of the Consolidated Resource Plan (CRP) document

Generate line-of-sight from planning to resourcing

Increase the understanding of the budget intake and development processes within the context of the Academic Plan and Integrated Planning

Articulate Institutional risks/mitigation

Garner feedback, insight, and perspective

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The Academic Plan is the expression of VIU’s strategic thinking and the foundation of the University’s integrated plans that guide our future.

Our focus remains the original five Academic Plan objectives: Student learning, engagement and success

Academic community

Program quality

Community engagement

Institutional effectiveness

And introduces:

Indigenous commitment

The Draft Updated Academic Plan Frames our Future…

Source: https://www2.viu.ca/pvpa/AcademicPlanUpdateDraft.aspTo be approved by VIU’s Board of Governors 4

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As a values-based institution, Vancouver Island University is a dynamic and creative community of faculty, staff, and students.

We share a strong belief in the power of learning to change people’s lives.

Our values influence everything we do every day, including resource planning.

Values Guide All That We Do

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Government Impacts on Consolidated Resource Plan

1. Continued ‘all funds, no deficit budget’ directive from Treasury

Board.

2. Continued requirement to fund minimum 10% of capital

projects.

3. AVED willingness to fund IT infrastructure remediation

4. Continued focus on having government funding support Skills for

Jobs Blueprint – re-engineering the operating grant to target 23%

of funding to in-demand job training by 2017-2018.

5. AVED’s position regarding graduate program funding.

6. VIU’s mandate as articulated in the Government of BC Mandate

Letter.

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Building on Success

• Draft Academic Plan Update - Promoting and Celebrating Access to Excellence was undertaken to build on the 2010 Academic Plan and bring its content and direction in line with current economic, environmental and social issues.

• Continued implementation of the 2015-2016 completed Senate Summative Program Assessment.

• Continuation of contracts for aboriginal education totaling $1.6M for 2017-2018.

• VIU welcomed 1,994 international students from over 90 countries.

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Building on Success

• $52.5M m in combined Canadian government SIF and Provincial funding for the Health and Science Centre capital project / Automotive, Motorcycle and Marine Trades project.

• $2.4M Funding for geo-exchange pilot build.

• VIU’s Cowichan Campus continued to partner with SD#79 to enroll 201 dual credit students, a Campus record.

• VIU’s Nanaimo Campus dual credit agreement with SD68 offered ENGL 115 to 29 students at Dover Bay Secondary.

• Youth in Care Tuition Waiver program continued, with 66 students enrolled in 2016-2017.

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Building on Success (con’t)

Programs currently under development:

• BSc/BA Honours Math

• BA Honours in Psychology

• BSc Chemistry Major

• Bachelor of Dental Hygiene

• Bachelor of General Studies

• Bachelor of Indigenous Governance

• Graduate Diploma in Management

New academy offerings introduced and/or approved for implementation included:

• Addiction Studies Certificate

• BA Honours in English

• Graduate Diploma in Gerontology: Active Aging

• Graduate Certificate in Business

• Inclusive Education (Special Education) Graduate Diploma

• Sustainable Leisure Management Graduate Diploma

• Music Certificate

• Entrepreneurial Skills for Self-Sufficiency Certificate

• Legal Studies Certificate

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Building on Success (con’t)

The roll-out of the Student Services Fee provided the capacity to:

• Employ a Mental Health Medical Office Assistant

• Develop a Mental Health Disability Advisor position

• Successfully recruit an Aboriginal Counsellor

• Develop a Mental Health Behaviouralist position

• Accommodate and support an Island Health Youth Mental Health and Substance Use medical professional to treat moderate to severe needs

• Approximately 700 students have participated in Peer Supported Learning

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Building on Success (con’t)

The roll-out of the Student Services Fee provided the capacity to:

LIBRARY

• Technology Enabled Group Study Rooms (completion Feb 15/17)

• Library Equipment Loans – New Lending Fleet

• Secure Charging Stations and Provision of Electrical for Student Devices

• Library and Learning Commons – Virtual Desktop Implementation (improved student experience) – in-progress

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Building on Success (con’t)

• The VIU Foundation in partnership with the Faculty of Arts and Humanities successfully led the ENCORE campaign to renew the Malaspina Theatre in honour of its 40th anniversary.

• Canada Learning Bond (CLB), over 20 community partnerships have been developed to significantly improve the participation rate of the CLB and identify additional strategies to address child poverty throughout the region.

• The VIU Foundation granted over $1.9M to students in Scholarships, Awards, and Bursaries.

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Building on Success (con’t)

• VIU’s Powell River Campus assisted the Tla’Amin Nation to prepare for treaty transition, reactivated Continuing Education courses, and partnered with the Tla’Amin Nation to train members in Wildland Fire Fighting.

• VIU Community Outreach Centre offered enriched practical learning experiences for Child and Youth Care students through partnering with the Harwood Community to engage in child and and family focused activities.

• Delivered a multi-dimensional community dialogue -Reconciliation Road.

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Building on Success (con’t)

• VIU and the VIU Students Union partnered to raise three traditional Indigenous Totem poles, each pole representing one of the three main language groups on Vancouver Island.

• The Food Services Master Plan continues implementation.

• VIU Residences continued to build on the achievements of previous years. Rental income was up $.2m, an 8% increase over the prior year.

• The Teaching, Learning and Administrative Systems Renewal (Project AURORA) is progressing as planned.

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Consolidated Resource Plan

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2017-2018 Consolidated Resource Plan

VIU is responsible for the financial stewardshipof $143.7m in total annual revenue and on aconsolidated basis and is tabling a balancedbudget for 2017-2018 in response to thecontinuing ‘all funds, no deficit’ Treasury Boarddirective.

CRP is projected to increase by $4.4m or 3.13% to $143.7m from $139.3m in 2016/17.

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Consolidated Resource Plan

VIU’s consolidated resource plan presented in Schedule 1 reflects the entire enterprise and controlled entities:

Vancouver Island University Foundation

Milner Gardens and Woodlands Society

The International High School at VIU Association

The High School at VIU Association

The consolidated resource plan is the budget plan cited by AVED.

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Revenue and Expenditures

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2017-2018 Primary Sources of Revenue Change

Province of BC Grants increase of $1.1m:

General Wage increase funding under ESM $1.5m

Increase in other Grants of $0.3m Minor Routine Capital funding

Net decrease of $0.7m primarily due to completion of one-time Aboriginal Education contracts

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2017-2018 Primary Sources of Revenue Change (con’t)

Tuition & Student Fees increase of $3.1m:

– Increase of $1.0m from introduction of Student Services Fee

– Increase of $2.0m from growth in anticipated international enrolments and fee changes

– Decrease of $0.1m due to the 2% rate increase for domestic students of $0.4m, reduction in professional development and training activity $0.8m, and other minor fluctuations of $0.3m

– Increase of $0.2m in High Schools due primarily to enrolment growth

Tuition Fee Policy: http://www2.gov.bc.ca/gov/content/education-training/post-secondary-education/institution-resources-administration/tuition-limit-policy

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2017-2018 Primary Sources of Revenue Change (con’t)

All remaining revenues combined for a net increase of $0.2m:

– Increase of $0.8m in Gifts, Grants & Bequests in the Foundation

– Increase of $0.2m in anticipated Deferred Capital Contributions of externally funded capital assets

– Increase of $0.3m in Sales of Goods & Services, driven by growth in Ancillary Operations

– Decrease of $1.3m in Government of Canada and Other Grants and Contracts, driven primarily by reduced Research and Science & Technology contracts

– All other revenue categories resulted in no significant change

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Sources of Revenue

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Salaries and benefits increase of $3.2m:

– Strategic investments and re-alignments addressing risks and providing strategic support for the continued implementation of the Academic Plan and integrated plans totaling $1.3m

– Increase of $2.4m to support the general wage increase resulting from the Economic Stability Mandate as well as faculty and staff scale changes and fringe benefit increases

– Decrease of $0.5m in Off Grant due to declines in PD& T contracts and one time activity

2017-2018 Primary Sources of Expenditure Change

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Materials and Supplies increase of $0.5m primarily from price changes on institutional licences and permits

Scholarships and Bursaries increase of $0.4m:

– Increase of $0.3m primarily to support International students

– Increase of $0.1m for all other Scholarships

2016-2017 Primary Sources of Expenditure Change (con’t)

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All remaining expenditures combined for a net increase of $0.3m:

– Increase in Amortization of Capital Assets of $0.2m

– Decrease in Travel and Training of $0.2m primarily from completion of one time Aboriginal Education contracts

– Increase in Equipment Rental and Maintenance of $0.2m due to upkeep on aging institutional infrastructure, and Trades and Applied Technology fuel costs for contract activity

– All other categories result in an increase of $0.1m

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2016-2017 Primary Sources of Expenditure Change (con’t)

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Sources of Expenditure -Salaries and Benefits is the Majority

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Fund-by-Fund Perspective

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Fund-by-fund Perspective

What?

VIU maintains separate funds for diverse activities, which have been divided into separate schedules in the CRP.

Why?

1. Enhance accountability

2. Budget control (transfers in and out)

3. Stewardship of resources

4. Taxpayer Accountability Principles

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Shows separate funds and the amounts are summarized in Schedule 1. (To interpret the graph – note that below the line and above the line net to zero.)

Consolidated Resource Plan by Fund

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• Represents 59.6% of total revenue budget

• Generates $85.7m in revenues

• $97m in direct internal area expenses

• $2.1m in net supporting transfers in

• $9.2m net shortfall generated

Operating Fund

Source: Schedule 1 and 2

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Off Grant

• Represents 27.2% of total revenue budget

• Generates $39.1m in revenues

• $25.9m in direct internal area expenses

• $3.1m in net supporting transfers out

• $10.1m net excess is used to balance CRP

Source: Schedule 1 and 2

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Ancillary Operations* Fund

• Represents 7.6% of total revenue budget

• Generates $11.0m in revenues

• $8.8m in direct internal area expenses

• $0.5m in supporting transfer out

• $1.7m net excess is used to balance CRP

*includes Campus Store, Food Services, Parking and Security, Conferences and Event Services, Printshop, VIU Student Residences

Source: Schedule 3

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Capital Fund

• Represents 3.5% of total revenue budget

• Generates $5.0m in revenues from externally funded assets

• $8.5m amortization of capital assets expense

• $0.5m net supporting transfers in

• $3.0m net shortfall generated

Source: Schedule 1

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Controlled Entities*

• Represents 2.1% of total revenue budget

• Generates $3.0m in revenue

• $3.6m in direct internal area expenses

• $1.1m net supporting transfers in

• $0.5m net excess is used to balance CRP

*includes VIU Foundation, The High Schools at VIU, and Milner Gardens and Woodlands Society

Source: Schedule 4

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Vancouver Island University Foundation

• Registered charity

• Purpose is fundraising

• The Operating activity funds $0.7m in scholarships

• Off-grant activity funds $0.5m

• The CRP does not include provisions for unrealized gains or losses on endowment investments

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The High Schools at VIU

1. The International High School at VIU Association

2. The High School at VIU Association

Both are registered charities

Controlled entities because of their constitutions

Regulated by the Ministry of Education

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Milner Gardens and Woodlands Society

• Incorporated in 2000 under the Society Act of BC

• Registered charity

• Manages an investment fund, solicits donations, and operates fundraising activities

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Enrolment Trends

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FTE Enrolments by Fiscal Year

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Concept of Leverage and Risk

• Risk – total budget risks from potential domestic tuition shortfall of $2.0m

• Unspent Capacity – salaries and benefits of 2.5% = $2.6m

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Risk $2m

Capacity $2.6m

Leverage and Risk

Capital

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Minor Maintenance FundingVIU relies on one time Ministry funding to support capital maintenance projects that:

Address life safety

Health and environmental risk

Maintain the asset

Are undertaken to avoid deterioration and systems failure

2016-2017 received $0.3m in one time funding

2017-2018 budget includes a provision for $0.3m in one-time funding, if funding not confirmed there will be a variance in the budget

Capital received was $2.2m*

*Capital is not minor maintenance

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Planned Capital Purchases

Investments2017-2018 budget includes $5.0m in planned capital purchases:

$1.1m in Operating (Schedule 2 for details) $1.0m in Off Grant (Schedule 2 for details) $0.2m in Ancillary Operations (Schedule 3 for details) $2.7m in Capital Fund The impact of these planned expenditures on amortization

of capital assets expense has been included in the CRP

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LONG TERM RISKS

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A Number of Long Term Risks Persist

Stagnant government funding and constrained tuition and fee policy

Financial sustainability: need strong and diversified revenue streams

Enduring dependency on International and Off-Grant revenues

Persistent excluded employee salary freeze

Deferred maintenance - a number of academic programs reside in aged buildings

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A Number of Long Term Risks Persist (con’t)

Several structures are not adaptable to current teaching methods and are expensive to operate

Outdated Information Technology infrastructure and systems

Routine capital availability

Increasing self-sufficiency

Insufficient philanthropic supports

Government policy and impacts that create shortfalls (more with less)

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Schedules and Appendices

Schedule 1: Consolidated Budget Statement

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