Quick Guide to Divisional Budget Quick Guide to Divisional Budget Planning Tool – Undergraduate Planning Tool – Undergraduate

(DBPT-UG)(DBPT-UG)

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Purpose of the DBPT-UGPurpose of the DBPT-UG To assist divisions with preliminary multi-To assist divisions with preliminary multi-

year enrolment and budget planningyear enrolment and budget planning To enable divisions to explore different To enable divisions to explore different

scenarios before narrowing down to 1 or 2 scenarios before narrowing down to 1 or 2 optionsoptions

To integrate different components of To integrate different components of overall planning: enrolments, tuition, overall planning: enrolments, tuition, revenues, University Fund contribution, revenues, University Fund contribution, student aid, staffing changes, space student aid, staffing changes, space changes, and other university-wide costs.changes, and other university-wide costs.

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Starting the ModelStarting the Model Before starting the tool please refer Before starting the tool please refer

to the following website for to the following website for instructionsinstructions

http://http://individual.utoronto.ca/hsiangan/dbptindividual.utoronto.ca/hsiangan/dbpt//

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Main User Sections Within the Main User Sections Within the ModelModel

Inputs_and_ResultsInputs_and_ResultsSection where divisions input their Section where divisions input their incremental plans and receive incremental plans and receive resulting projectionsresulting projections

Other_Automatic_AssumptionsOther_Automatic_AssumptionsThis section provides a summary of This section provides a summary of the various additional assumptions the various additional assumptions used to generate the projections. used to generate the projections. Based on historical data.Based on historical data.

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Incremental Input SectionIncremental Input Section

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[1] Faculty/Program[1] Faculty/Program[2] Full-time fall new intake[2] Full-time fall new intake[3] Domestic international percentage mix and mix calculator[3] Domestic international percentage mix and mix calculator[4] 2008 Intake variance adjustment and resulting [4] 2008 Intake variance adjustment and resulting

domestic/international headcountdomestic/international headcount

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Incremental Input SectionIncremental Input Section

[5,6,8] Domestic/International tuition fee rate [5,6,8] Domestic/International tuition fee rate increase factor and the resulting first year tuition increase factor and the resulting first year tuition feefee

[7] University-wide cost drivers[7] University-wide cost drivers

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Other Automatic AssumptionsOther Automatic Assumptions This section automatically updates This section automatically updates

assumptions depending on the assumptions depending on the faculty/program selectedfaculty/program selected

Most of these factors are derived Most of these factors are derived from the P&B models used to project from the P&B models used to project the annual budget numbersthe annual budget numbers

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Other Automatic Assumptions – Other Automatic Assumptions – List of Variables Built into ToolList of Variables Built into Tool

Tuition fee methodology (course, Tuition fee methodology (course, program)program)

Tuition increases for continuing Tuition increases for continuing studentsstudents

The institutional fees write-off factorThe institutional fees write-off factor Student aid provisionsStudent aid provisions

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Other Automatic Assumptions – Other Automatic Assumptions – List of Variables Built into ToolList of Variables Built into Tool

Fall year-to-year retention ratesFall year-to-year retention rates Average course loading: conversion Average course loading: conversion

from headcounts to FTEsfrom headcounts to FTEs Winter over fall retentionWinter over fall retention

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Other Automatic Assumptions – Other Automatic Assumptions – List of Variables Built into ToolList of Variables Built into Tool

Eligible FTE (EFTE) over Total FTE Eligible FTE (EFTE) over Total FTE ratioratio

Formula fee rate (as per Ministry)Formula fee rate (as per Ministry) BIU Weight – Either Ministry value or BIU Weight – Either Ministry value or

blended averageblended average BIU Value (as per Ministry)BIU Value (as per Ministry)

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Other Automatic Assumptions – Other Automatic Assumptions – List of Variables Built into ToolList of Variables Built into Tool

University-wide per unit costsUniversity-wide per unit costs• Undergraduate FTEsUndergraduate FTEs• Operating RevenueOperating Revenue• Faculty FTEsFaculty FTEs• Administrative FTEsAdministrative FTEs• Space: Net Assignable Square Meters Space: Net Assignable Square Meters

(NASMs)(NASMs)

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ResultsResults1

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Results (Legend)Results (Legend)[1] Starting Tuition Level: For most, tuition to be [1] Starting Tuition Level: For most, tuition to be

charged to year 1 students. For some programs charged to year 1 students. For some programs with delayed entry, fee will be the year 2 rate.with delayed entry, fee will be the year 2 rate.

[2] Enrolment Results: The enrolment measures [2] Enrolment Results: The enrolment measures used to project revenues and costs used to project revenues and costs

[3] Net Revenue Available to the Division[3] Net Revenue Available to the Division[4] Total Revenue, with domestic/international [4] Total Revenue, with domestic/international

detailsdetails[5] Cost Deductions[5] Cost Deductions[6] Rounding option checkbox, determine whether [6] Rounding option checkbox, determine whether

to round the values in the result section.to round the values in the result section.

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Future DevelopmentsFuture Developments Graduate:Graduate:

• To develop a similar toolTo develop a similar tool

Appendix: Supplementary Appendix: Supplementary Background MaterialsBackground Materials

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Supplementary SectionsSupplementary Sections Enrol_workingEnrol_working

This section contains the detailed steps translating the This section contains the detailed steps translating the divisional inputs and automatic assumptions into the divisional inputs and automatic assumptions into the resulting enrolment, revenue, and cost projections.resulting enrolment, revenue, and cost projections.

Univ-wide CostsUniv-wide CostsThis section displays the steps translating a per-unit cost This section displays the steps translating a per-unit cost for each driver into incremental University-wide cost for each driver into incremental University-wide cost allocations. Changes in enrolment and budget planning will allocations. Changes in enrolment and budget planning will have a material impact on cost allocations driven by have a material impact on cost allocations driven by NASMs, Student FTEs, and Staff FTEs.NASMs, Student FTEs, and Staff FTEs.

PriceVarianceOnBasePriceVarianceOnBaseThis section contains the detailed calculations for This section contains the detailed calculations for determining the revenue change related to existing determining the revenue change related to existing enrolments as one modifies the tuition/price assumption.enrolments as one modifies the tuition/price assumption.

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Main Differences Between Divisional Budget Planning Tool Main Differences Between Divisional Budget Planning Tool Undergraduate and the detailed P&B Budget Report ModelUndergraduate and the detailed P&B Budget Report Model

DPT-UG Official Models

Nature of the Model Incremental: only takes the new intake into consideration.

Complete: Projection derived using actual from previous year and projecting at a program by year level.

Student Group Full-time student population only. Both full-time and part-time student populations are included.

Faculties/Division Excludes: Centennial, TYP, Woodsworth Certificates, Post Graduate Medicine Education (PGME), OISE Diploma / Certificates, PharmD, Toronto School of Theology (TST), Commerce Majors, Nursing Diplomas

All faculties and divisions

International Exempt (IE) International students in this model are assumed to pay international tuition levels and are assumed not to generate government funding (BIU).

Includes the possibility that some international students are exempt and that a small proportion of them may generate BIU funding.

Average Course Load Factor (Headcount to Fall FTE Ratio)

Average is used across all years and all subgroups.

Individual subgroups of students may have a different course loading factor that is used in the calculation. Some factors vary by year.

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Main Differences Between Divisional Budget Planning Tool Main Differences Between Divisional Budget Planning Tool Undergraduate and the detailed P&B Budget Report ModelUndergraduate and the detailed P&B Budget Report Model

DPT-UG Official Models

Summer Section Fall/winter only. Summer section not considered for most faculties/programs, except for Radiation Sciences and Nursing.

Some summer projections are expressed as a percentage of the prior fall/winter and thus are automatically updated.

Program Fee Entry Point Student intake entry point is year 1 for everyone. Some programs’ entry point are in year 2.

Retention Rates Retention rates for the “year 1 continuing” and “year 1 to 2” are adjusted to equal a maximum of 100%.

Sum of “year 1 continuing” and “year 1 to 2” retention can be larger than 100%.

Students with Transfer Credits Does not take these students into account. All assumed to start in Year 1.

New students with transfer credits are distributed between Years 1-3.

Tuition – Minimum Charges and Retained Fees

Not considered Considered.

BIU Funding - System Constraints

Not considered Considered, decision required concerning probability of system funding discount.

BIU Calculation Average BIU weight by year is used for some programs.

Detailed model considers mix issues (e.g. science, arts, commerce) in detail and then uses Ministry BIU program values.

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Main Differences Between Divisional Budget Planning Tool Main Differences Between Divisional Budget Planning Tool Undergraduate and the detailed P&B Budget Report ModelUndergraduate and the detailed P&B Budget Report Model

DPT-UG Official Models

Future University-wide Cost Allocation

Variable: only considers the individual division’s planning changes in students, staff or space

Fixed: considers planning changes made by all divisions. Costs are allocated based on each division’s share of students, staff or space

Cost Drivers Assumes enrolment and budget planning changes only affect NASMs and UG, Grad, Faculty, Admin FTEs

Assumes any planning change has the potential to affect all methods cost allocations. Subsequently, all cost drivers are considered.

Student FTEs Estimated fall and winter combined FTEs Factbook FTEs (Fall doubled)

NASMs Weighted average across all buildings Cost allocations are determined based on the individual buildings occupied