PRESENTATION TO THE Board of Governors

PRESENTATION TO THEBoard of Governors

April 28th, 2015

• Financial Overview

• What has changed since December 2014

• 2015-2021 Planning Assumptions

• 2015-2016 Tuition Fees

• 2015-2016 Allocations

• Recommendations

Board of Governors – April 28, 2015 #2

PRESENTATION OUTLINE


BOARD OF GOVERNORS SCHEDULE

September /October 2014• 2013-2014 Audited Financial Statements• KPMG External Auditors Report

November /December 2014• 2015-2016 Operating & Ancillary Budget Framework• Investment Committee Report

March /April 2015• 2015-2016 Operating and Ancillary Budget • Annual Risk Assessment• Deloitte: Internal Audit Report• Investment Committee Report

FINANCIAL OVERVIEW

2015-16 InvestmentsOperational Activity April 10, 2015

Operating $414m Pension $1,104m

Ancillaries $ 90m Endowment $ 212m

Research $ 60m

Capital $ 30m

Capital DebtDebt Financing for Buildings $125m


Total: $414 Million


2015-16 BUDGETED OPERATING REVENUES

2015-16 BUDGETED OPERATING EXPENDITURES


Total: $414 Million

Revenue:• Enrolment Forecast: Undergraduate Graduate

• Tuition Fee Framework• Government Funding

Expenditures:• Pension Plan• Deferred Maintenance

BUDGET CONSIDERATIONS


PROJECTED CHANGE IN 18-YEAR-OLDPOPULATION IN ONTARIO: CARLETON IMPACT

Board of Governors – March 27, 2014 #9Board of Governors – April 28, 2015 #8

PENSION OUTCOME OF JULY 1, 2013 VALUATION

• Going concern deficit $ 87m

• Solvency deficit $159m


ONTARIO GOVERNMENT POLICIES

Post Secondary Education:

• Tuition fees• Government grant• Mandate agreements/Differentiation/Metrics• New campuses

Other Policies:• Pensions• Public Sector Compensation Restraint


Audit & Finance – November 11th, 2014 #xx

Indicator Short-term objective

Current Level(November 2014) Proposed Target Long-term

objective

TEACHING EXCELLENCE

BA Enrolment -4.0% Increase

BA Retention -0.6% Increase

College Transfer Students -3.5% Increase by 25%

New 1st year FT Enrol. 1.0% Grow minimum of 1% per year

1st year Enrolment International 22.5% Grow 3% year

Graduate Enrolment -5.4% Meet prov. targets

Retention Rate .3% above Exceed Prov. Avg. by 1%

Results: & crimson lettering =below short term target & green lettering=at or above short term target

SIP INDICATORS #1


Audit & Finance – November 11th, 2014 #xx

IndicatorShort–term

objectiveCurrent Level(November 2014) Proposed Target

Long-term objective

RESEARCH EXCELLENCEResearch Ranking 5 Top 3STUDENT CENTEREDIncrease endowment for student support $134m*

Student SurveyU/G-Upper 50%*Grad-Lower 33% Top Third

ORGANIZATIONAL EXCELLENCE

Student & Staff Customer Satisfaction Survey

Staff-61%Students-68% Over 7.5

Capital Campaign (Annual) $21.2m* $37mResults: & crimson lettering =below short term target & green lettering=at or above short term target

* Updated to April 2015

SIP INDICATORS #2



WHAT HAS CHANGED SINCEDECEMBER, 2014

APPLICANTS/TARGETS - FALL 2014/2015

Carleton data as at April 10, 2015; OUAC data as at April 2, 2015

Carleton University First Year2015 2014 % +-

Applicants 23,053 23,154 -0.4%Approved 12,588 12,396 1.5%Applicants (1st and 2nd Choice) 10,730 10,831 -0.9%

2015 2014 % +-

First Year 6,100 6,157 -0.9%

Undergraduate 20,107 19,907 1.0%

2015 2014 % +-

Applicants 137,412 139,084 -1.2%

Confirmations 17,417 16,348 6.5%

Applicants (H.S. – ‘OUAC 101s’) 88,458 90,020 -1.7%

Ontario University Application Centre Systems Data – First Year


• Facilities Condition Assessment Program Average age 40.4 years $105m deferred maintenance Overall Condition Assessment – Poor

• Recommendation from Joint Building Program and Board of Governors on February 12, 2015 to invest $14m per year for ten years to fund deferred maintenance/capital renewal.

Board of Governors - April 28, 2015 #4

DEFERRED MAINTENANCE / CAPITAL RENEWAL


2015-2021 PLANNING ASSUMPTIONS

REVENUE• Retention at current rate.• Domestic tuition fees will increase by 3% per

year.• First-year enrolment will mirror demographic

projection.• Discounted government funding to university

sector for undergraduate growth.


2015-2021 PLANNING ASSUMPTIONS

EXPENDITURES

• 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.

• $14m annual allocation for deferred maintenance/ capital renewal


TUITION INCREASES FOR 2015-2016


Domestic InternationalOverall Increase 3.0%* **

BAS, BCS, BEng, BID, BIT, BPAPM• First, Second, Third Year 5.0% 8.0%• Fourth Year 4.0% 8.0%BComm, BIB (All Years) 3.0% 8.0%Other Undergraduate (All Years) 3.0% 8.0%

Master's (Most), PhD: First Year 3.0% 3.0%Graduate (Most): Upper Year 0.0% 3.0%MArch(S), MPM, MSW, MPNL (First Year) 5.0% 3.0%MBA• First year 5.0% 0.0%• Upper years 0.0% 0.0%MEng• First year 5.0% 8.0%• Upper years 0.0% 8.0%* According to the provincial government tuition framework using MTCU methodology.** International fees are unregulated; set using competitive analysis.

EXAMPLES OF TUITION FEE CHANGESEXPERIENCED BY FALL 2010 ENTRANTS*


2012-13 2014-15 2015-16 4-YearYear 1 Year 3 Year 4** Change**

Bachelor of Arts/Science $5,568 $5,963 $6,171 10.8%

Bachelor of Commerce $6,475 $7,238 $7,238 11.8%

Bachelor of Comp. Science $7,229 $7,892 $8,524 17.9%

Bachelor of Engineering $7,938 $9,088 $9,815 23.6%

* Fees shown are for domestic students ** Proposed

‘NET’ TUITION EXAMPLES


Notes:• Adapted from ‘The Many Prices of Knowledge’ A. Usher et al, HESA, 2014. • Uses proposed Carleton 2015/16 Tuition fees, and an average Carleton student scholarship and bursary from 2014/15; students

are studying full-time and are ‘resident’ in Ontario• Sticker Price = Tuition + Misc. Fees (i.e., ancillary, UPASS, etc…)

$1,780$0

$2,220$635

$7,180

$4,765

$2,545

Grants Loan Remission Tax Credits Avg CUscholarship

Sticker Price Up-Front Net Tuition

Third Year BA (Parental income=$120,000)

2014-2015 DOMESTIC TUITION(NEW COHORT)


B.A./ B.Sc. B.Com. B. Eng.M.A./ M.Sc. M.Eng. M.A.Sc.

PhD (Most)

Carleton 5,992 7,300 9,620 7,902 8,937 8,436 7,785Guelph 6,022 7,904 10,893 7,468 7,468 - 7,468McMaster 5,966 8,552 10,148 7,008 7,722 - 7,008Ottawa 6,010 6,895 8,612 7,799 8,650 7,799 7,074Queen's 6,053 15,590 11,404 6,414 7,746 - 6,414Ryerson 6,032 7,681 9,314 9,464 9,464 9,464 9,194Toronto 6,040 14,550 12,980 7,115 12,250 7,115 7,115Waterloo 6,054 16,056 12,772 7,236 7,662 7,236 7,236Western 5,975 23,948 11,240 6,740 9,944 - 6,740York 6,040 7,904 7,904 4,785 - 4,785 4,785

Average (Ont. All) 5,983 9,681 9,766 7,740 8,603 7,649 7,510Average (Ont. Major) 6,018 11,638 10,489 7,193 8,871 7,473 7,082Median (Ont. Major) 6,027 8,228 10,521 7,176 8,650 7,518 7,095Carleton +- UofO -18 405 1,008 103 287 637 711Carleton +- Avg.(Maj.) -26 -4,338 -869 709 66 963 703Carleton +- Med.(Maj.) -35 -928 -901 727 287 919 691

2014-2015 INTERNATIONAL TUITION(NEW COHORT)


B.A./ B.Sc. B.Com. B. Eng.M.A./M.Sc

. M.Eng. M.A.Sc.PhD

(Most)Carleton 20,012 21,033 23,818 19,287 21,837 21,015 19,020Guelph 18,429 20,899 23,866 17,825 17,825 - 16,991McMaster 21,348 26,966 30,898 16,761 17,766 - 16,761Ottawa 21,711 23,067 26,736 18,699 20,159 18,699 16,334Queen's 27,413 34,981 32,030 12,674 17,000 - 12,674Ryerson 20,509 21,337 23,211 19,711 21,356 21,356 18,886Toronto 35,280 37,960 39,580 18,620 39,580 18,620 18,620Waterloo 20,860 32,666 30,038 18,228 21,024 18,228 18,048Western 21,127 31,122 27,112 16,612 24,352 - 16,612York 19,611 25,825 21,476 18,825 - 18,825 18,000

Average (Ont. All) 20,854 24,011 25,923 18,452 21,762 19,267 17,774Average (Ont. Major) 22,630 27,586 27,877 17,724 22,322 19,457 17,195Median (Ont. Major) 20,994 26,396 26,924 18,424 21,024 18,762 17,496Carleton +- UofO -1,699 -2,034 -2,918 588 1,678 2,316 2,686Carleton +- Avg.(Maj.) -2,618 -6,553 -4,059 1,563 -485 1,558 1,825Carleton +- Med.(Maj.) -982 -5,363 -3,106 863 813 2,253 1,525International graduate program fees are measured on a three term basis, all others on a two term basis.

IMPACT OF 0% TUITION INCREASE


• Impact of 0% tuition increase for 2015-16: up to ≈ $9 Million

• Option A – seek same income through higher undergraduate enrolment:• Extra 18% increase in annual intake required (+868 new, FT domestic students – assuming

same mix of first year students by program)• Much lower entry standards• Much larger classes, and crowding of other facilities• Assumes full government funding - Will the government fund extra students?

• Option B – cut costs:• Reduce payroll by 74 faculty or 133 professional services staff or a combination• … and/or no salary increases• Collective bargaining issues … attrition and extended hiring freeze• Serious impact on all aspects of campus experience• Higher risks to students, employees, and institution

MISCELLANEOUS ADMINISTRATIVE FEES

Board of Governors – April 28, 2015 # 24

Fee 2014-2015 Fees

2015-2016 Proposed

Increase * Percentage

Omnibus Fee $37.75 $38.50 $0.75 1.99%

Supplement Fees $67.75 $69.00 $1.25 1.85%

Off Campus Exam ( in Canada) $78.50 $80.00 $1.50 1.91%

Off Campus Exam (International) $141.25 $144.00 $2.75 1.95%

Challenge for Credit $201.75 $205.75 $4.00 1.98%

Returned Cheque Service Charge $32.00 $33.00 $1.00 3.13%

Deferred Payment fee $100.00 $100.00 $0.00 0.00%

Grad Application Fee $100.00 $100.00 $0.00 0.00%

Grad Reinstatement Charge $67.75 $69.00 $1.25 1.85%

Deferred Admission Fee $43.50 $44.25 $0.75 1.72%

Letters Of Permission $37.50 $38.25 $0.75 2.00%

Display Diplomas $111.50 $113.75 $2.25 2.02%

Replacement Diploma $78.50 $80.00 $1.50 1.91%

New Special Students Documentation $49.50 $50.50 $1.00 2.02%

Grad Leave of Absence $67.75 $69.00 $1.25 1.85%

Admission Processing Charge $61.75 $63.00 $1.25 2.02%

Grad Extension of Time $67.75 $69.00 $1.25 1.85%

*most fees increased by inflationary increase of 2% rounded to the nearest $0.25;


2015-2016 FUNDING AVAILABLE FOR NEWRESOURCE ALLOCATION

Base Operating 1.0m

Fiscal Operating 4.8m

Fiscal Capital Projects 28.0m

Matching Funds 14.0m

Student Support 2.2m


MAJOR PRIORITIES FOR 15-16 BUDGET

Priorities identified in Strategic Integrated Plan: “Sustainable Communities – Global Prosperity”

• Programs for Today and Tomorrow

• Research Excellence & Connectedness

• Productive and Engaged Students

• Organizational Excellence


2015-16 MAJOR FUNDING INITIATIVES

New Faculty Positions Two new faculty for Bachelor of Global &

International Studies One new faculty for Masters Indigenous Policy

and Administration Three new faculty for Bachelor Health Science One new faculty for Masters Accounting



New Staff Positions

One Learning Specialist in Education Development Centre

One Human Resource Officer in Human Resources

One High School Liaison Manager in Student Recruitment



Capital Projects New Construction

» Additional Floor - Health Science Building 7.0m» New Business Building 3.9m

Deferred Maintenance 14.0m Information Systems Renewal 1.4m Classroom Renewal 2.0m


OTHER FISCAL FUNDING

Advertising / Public Relations 1.1m

Student Support 2.4m

Matching funds» Research 1.0m» Advancement 13.0m


MAJOR FINANCIAL UNCERTAINTIES

Demographics – Participation Rates Special Payments to Pension Plan Provincial Operating Grant Reductions Three new undergraduate campus

locations in GTA Tuition Fee Policy

The 2015-2016 Operating Budget, as presented, be approved.


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