caubo financial reporting committee what’s new? resource guides & tools for financial...
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CAUBO Financial Reporting Committee
What’s New?Resource Guides & Tools for Financial Reporting
Objectives of the Session To demonstrate projects in
progress to assist you with your financial reporting needs.
To solicit input from you about what the Committee should be working on ie. what resources would help you in your financial reporting?
Topics to be Covered CAUBO Financial Reporting Guide Internet access
Reporting Committee Webpage Knotia.ca website
CAUBO Report 20/20 Tool Executive Summary Ad Hoc Reporting Training & Other Factors
CAUBO Financial Reporting Guide Last revised in 1994 Do you know where your Guide is? Intention of Guide was originally:
To clarify new non-profit regulations introduced by CICA
To provide guidance to universities where options are provided within CICA accounting principles in order to improve consistency in presentation among universities
Objectives of Updating Guide Revitalize it as a resource for
CAUBO members Enhance its usability Reduce the amount of duplication
with the CICA Handbook Provide a resource for examples of
financial statement disclosure
Survey Results Survey of membership was conducted in
March of 2003 with 53 institutions responding
57% Single Column Deferred, 33% Restricted Fund, 10% Multi-column Deferred
Lots of variation in reporting although most indicated transparency, openness and clarity would be enhanced if similar policies and reporting followed
Survey results will be on the website
Status of project Consultant was hired to update the
Guide to respond to changes in CICA accounting principles – includes 10 chapters
Formatting was improved to make it more user friendly
Provides recommendations on issues where alternative accounting treatments permitted
Status of project Appendix added to highlight CICA
exposure drafts under consideration Currently undergoing quality review and
French translation in progress Will be made available this summer via
the web – considering linkages to CICA Handbook
Follow-up issues will include linkages to member university financial statements
Guide will be more dynamic in the future with regular updating
Internet Access – Financial Reporting Committee Webpage
CAUBO launched new website in February
Committee now has its own webpage
Will be central resource for locating information about financial reporting
Polling capability What’s new – reporting deadlines etc
Internet Access – www.knotia.ca website
Website to access a variety of publications on tax, financial reporting and other issues.
Financial Reporting and Tax Committees have been negotiating with CICA to make a standard package of resources available to members at a predefined cost
Would make concurrent licenses available Allows you to customize – “briefcase
feature” Search capabilities Reporting Guide linked to CICA Handbook
CAUBO Report Everyone submits information but how many
actively use it for reporting and analysis Provides a composite of information provided
by 100 universities and colleges across Canada Committee goal is to make it easier for
members to use the data effectively for reporting
We need to provide more interpretation of the data to demonstrate its value
Hopefully with more use of data by members, greater consistency in reporting may be a by-product
Data comparison Consistency and uniformity of data
reporting extremely important when using the data for comparison purposes
Committee has as its objective – greater scrutiny of submissions of CAUBO data by member institutions to ensure consistent application of guidelines
Why Use CAUBO Data? Comparing your institutional data with
similar other institutions helps you consider if you are in the “ball park” or not
Do not have to be the same as everyone else but it is important to understand why the differences exist
Data is not intended to be used for institution to institution comparison – used more effectively in aggregate form
Examples of How Data Can Be Used
Longitudinal Data Comparison and trend analysis using 20/20 Tool
Executive Summary Ad Hoc reporting and Analysis
20/20 Tool Data released in format for 20/20 Tool a
few years ago (Before Microsoft Access) Stats Canada will be transitioning to this
format Intention is to provide members with data
for a preset time-series to allow financial analysis
Project underway to identify factors affecting the interpretation of the CAUBO data over time
Exact details of delivery still being worked out
Executive Summary
Summary report will: Increase awareness of the existence of the
CAUBO financial information Give preparers knowledge of how the
financial data is being used Provide convenient reference source Highlight trends and/or significant
differences Include written commentary Published in University Manager
Total Revenue by Fund (in $ millions)2002/2003 - $18,187 (net of Endowment loss of $91)2001/2002 - $17,013 (in millions)
Endowment, -$91, 0%, (prev. year $319)
General Operating, $10,766, 60%, (prev. year $9,886)
Special Purpose and Trust, $963, 5%, (prev. year $949)
Sponsored Research, $4,282, 23%, (prev. year $3,771)
Ancillary, $1,373, 7%, (prev. year $1,273)
Capital, $894, 5%, (prev. year $815)
Total Revenue – by Source ($ in millions)(% of total source for individual years)(2000/01, 2001/02, 2002/03)
12.2%
4.6%6.0%5.2%
19.0%
43.3%
9.8%
12.7%
2.4%
6.1%5.4%
19.5%
42.9%
10.9%
13.0%
-0.6%
6.6%
4.2%
20.7%
12.2%
44.0%
-$500
$500
$1,500
$2,500
$3,500
$4,500
$5,500
$6,500
$7,500
$8,500
FederalGovernment
departments andagencies - grants
and contracts
ProvincialGovernment
Tuition and otherfees
Donationsincluding bequests
Non-governmentgrants andcontracts
Investments Other income
2000/2001 Total $15,827
2001/2002 Total $16,853
2002/2003 Total $18,028
Proportion of Revenue from All Sources by Province - 2002/2003(including the mean for each source)
-20%
0%
20%
40%
60%
80%
100%
Nfld. P.E.I. N.S. N.B. Que. Ont. Man. Sask. Alta. B.C. Mean %
Federal government departments and agencies - grants and contracts Tuition and other fees
Non-government grants and contracts Other income
Provincial government Donations, including bequests
Investment
Federally Sponsored Research – By Category2001/02 & 2002/2003 ($ in thousands)
$0
$100,000
$200,000
$300,000
$400,000
$500,000
$600,0002
001/2
002
2002/2
003
2001/2
002
2002/2
003
2001/2
002
2002/2
003
2001/2
002
2002/2
003
2001/2
002
2002/2
003
2001/2
002
2002/2
003
2001/2
002
2002/2
003
Social Sciences& Humanities
ResearchCouncil
Health Canada Natural Sciences& Engineering
ResearchCouncil
CanadianInstitute of HealthResearch (CIHR)
CanadaFoundation for
Innovation (CFI)
CanadaResearch Chairs
Other Federal
B.C.
Alta.
Sask.
Man.
Ont.
Que.
N.B.
N.S.
P.E.I.
Nfld
Federally Sponsored Research - By Province 2001 / 02 & 2002/2003 (in $ thousands)
$0
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
$700,000
$800,00020
01/
200
2
200
2/2
003
200
1/2
002
200
2/2
003
200
1/2
002
200
2/2
003
200
1/2
002
200
2/2
003
200
1/2
002
200
2/2
003
200
1/2
002
200
2/2
003
200
1/2
002
200
2/2
003
200
1/2
002
200
2/2
003
200
1/2
002
200
2/2
003
200
1/2
002
200
2/2
003
Nfld P.E.I. N.S. N.B. Que. Ont. Man. Sask. Alta. B.C.
Other FederalCanada Research ChairsCanada Foundation for Innovation (CFI)Canadian Institute of Health Research (CIHR)Natural Sciences & Engineering Research CouncilHealth CanadaSocial Sciences & Humanities Research Council
CAUBO Institutions - Comparison of Operating Revenue & Total Revenue2001/02 & 2002/2003 ($ in thousands)
Number Reporting Range (Total Revenue)
Total $ Value (in
thousands) % of Total
Average of
Operating Revenue / Total Revenue
Average of Operating Revenue
/ Total Revenue (2001/02)
16 $400,000-$1,500,000 $11,402,529 62.7% 54.1% 52.7% 20 $100,000-$399,999 $4,473,219 24.6% 68.3% 66.5% 19 $50,000 - $99,999 $1,468,087 8.1% 72.9% 71.3% 28 $10,000-$49,999 $ 746,155 3.9% 74.9% 73.0%
20 $0-$9,999 $ 97,145 0.5% 81.5% 77.1%
103 $18,187,135 100.0%
University & College Operating Expenditures By Category ($ in millions)2002/2003 - $10,697, 2001/2002 $9,670
Physical Plant, $1,173, 11%
Student Services, $803, 8%
Administration and General, $1,284,
12%
Computing and Communications,
$397, 4%
Library, $605, 6%
Non Credit Instructional, $316,
3%
Instructional, $6,120, 56%
Operating Fund - Total Expenses by Type ($ in millions)2002/03 - $10,698 - in 2001/2002 - $9,674
Communications, $88.9, 1%
Miscellanious, $60.1, 1%
Other, $1,165.3, 11%
Professional Fees, $159.8, 1%
Travel, $191.3, 2%
Library, $230.6, 2%
Utilities, $346.9, 3%
Salaries - Academic Ranks, $3,295.0, 32%
Materials & Operational Expenditures, $903.4, 8%
Building, Furniture& Renovations, $398.7, 4%
Interest, $57.7, 1%
Cost of Goods Sold, $30, 0%
Salaries - Other Instructional & Research,
$472.7, 4%
Benefits, $1,120.3, 10%
Salaries - Other Salaries and Wages, $2,935.6,
27%
Scholarship, Bursaries & Prizes, $406.9, 4%
Comparison of Scholarships - All Funds (% of total expenditures) by Province - 2000/01, 2001/02, 2002/03
0.00 1.00 2.00 3.00 4.00 5.00 6.00
Mean of %'s
BC.
Alta.
Sask.
Man.
Ont.
Que.
N.B.
N.S.
P.E.I
Nfld.
2000 / 2001 2001 / 2002 2002 / 2003
Total all funds expenditures on Scholarships, bursaries and prizes
0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
1980
-81
1982
-83
1984
-85
1986
-87
1988
-89
1990
-91
1992
-93
1994
-95
1996
-97
1998
-99
2000
-01
2002
-03
The majority of the rapid expansion in scholarship expenditures has taken place in the last five years
0
75000
150000
225000
300000
375000
NEWFOUNDLAND
PRINCE E
DWARD IS
LAND
NOVA SCOTIA
NEW B
RUNSWIC
K
QUEBEC
ONTARIO
MANITOBA
SASKATCHEWAN
ALBERTA
BRITISH C
OLUMBIA
2002-03
1997-98
1992-93
Ontario share had a 52% share in 2002-03 up from 38% ten years earlier
Increases to fees charged for credit courses in Ontario produced less “teaching” revenue discounted for the impact of rising
student aid
0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
1,600,000
1992-93
1993-94
1994-95
1995-96
1996-97
1997-98
1998-99
1999-00
2000-01
2001-02
2002-03
$'00
0s
Scholarships
Net fees
Ad Hoc reporting Comparison with similar institutions (not
recommended unless you are very familiar with differences)
Demonstrate patterns or trends over time Monitor significant changes in both
revenue and expenditure lines and their components
Comparisons to groupings on regional, national, or similar characteristics (group institutions of similar size)
General Operating Fund - Sources of Income2000-2001
58.5%
35.0%
2.8%0.0%
3.8%
59.5%
32.3%
5.0%0.8% 2.4%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
Grants Tuition & other fees other income Donations Investment
U of L
CAUBO Universities
General Operating Fund – Sources of Income
% General Operating Income to Total Funds2001-2002
77.2%
48.9%56.7%
76.0%68.3% 71.0%
66.3%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
90.0%
TheUniversity
ofLethbridge
Universityof Alberta
Universityof Calgary
BrockUniversity
Universityof Regina
WilfridLaurier
University
TrentUniversity
% General Operating Income to Total Funds
% General Operating Income to Total Funds2001-2002
77.2%
48.9%
56.7%
68.3%
71.0%
76.0%
66.3%
The University of Lethbridge
University of Alberta
University of Calgary
University of Regina
Wilfrid Laurier University
Brock University
Trent University
Inst
itut
ion
Total Funds Income
% General Operating Income to Total Funds
Human Resource Costs -% Total Operating Expenditures2001-2002
0%10%20%30%40%50%60%70%80%90%
Academic ranks &other instruction and
research
Other salaries andwages
Benefits TOTAL HumanResource Costs
The University of Lethbridge University of Alberta University of CalgaryBrock University University of Regina Wilfrid Laurier UniversityTrent University
Human Resource Costs
HR Costs as % of Total General Operating Expenditures 2001-2002
39% 38% 35% 35% 36% 35%
27% 28%28% 29% 28% 28%
10% 11%9% 10% 10% 11%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
Atlantic Quebec Ontario Western TOTAL U of L
Academic & other instructional and research salaries Other salaries & wages Benefits
Human Resource Costs % Operating Expense
General Operating Expenses by Function2001/ 2002
0%5%
10%15%20%25%30%35%40%45%50%55%60%65%70%
Instruction and non-sponsored Research
Non-credit Instruction Library Computing andCommunications
Administration andGeneral
Student Services Physical Plant
University of Lethbridge
University of Alberta
University of Calgary
Brock University
University of Regina
Wilfrid Laurier University
Trent University
General Operating Expenses by Function
Financial Reporting – Training and Other Factors
Training will be developed for preparers of the CAUBO information to gain a better understanding of guidelines, improve consistency and understand how the data can be used.
Need to monitor more than just financial factors (e.g. student enrolment, institution’s competitive position, internal controls)
Keep apprised of current developments in Financial Reporting
QUESTIONS?