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Consolidated Resource Plan2018 – 2019

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Consolidated Resource Plan 2018 – 2019

For Presentation:

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

January 31, 2018 - To President’s Council

February 5, 2018 - To Planning and Priorities Committee

March 1, 2018 - Planning and Priorities Committee Reports to Senate

March 22, 2018 - Approved by Board of Governors as presentated to Finance Committee

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Presentation Objectives

Review 2017/18 successes

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 strategicthinking and the foundation of the University’s integrated plans that guide our future.

Our focus remains the six Academic Plan objectives:

Student learning, engagement and success

Academic community

Program quality

Community engagement

Institutional effectiveness

Indigenous commitment

The Updated Academic Plan Frames our Future…

Source: https://www.viu.ca/academic-plan

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Government Impacts on Consolidated Resource Plan

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1. Increased funding and expenditures relevant to the three collective agreements under the Economic Stability Mandate;

2. Continued ‘all funds, no deficit budget’ directive from Treasury Board;

3. Continued expectation to cover the cost of major capital expenditures at a minimum of 10% contribution by VIU;

4. Expectation to internally fund any excluded management compensation framework implementation in accordance with Ministry dictates;

5. VIU’s mandate as articulated in the annual Government of BC Mandate Letter.

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Grow Together?

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PURPOSE Delivered in 2017/18

1,800 Aboriginal Students

Progressing to

Graduation

14,000+ Students Pursuing Dreams

2,000+ International

Students Living,

Learning and Thriving in

Canada

80+ Tuition Waiver

Students on a Path to

Graduation

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$400M Annual Regional Economic

Impact

Duel Credit, Bursaries,

Scholarships and Awards

2,300 VIU Employees Living Their

Values

37.5% Uptake - CLB Registrants

More…

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PURPOSE - As a leader in providing high-quality learning, Vancouver Island University supports the well-being of the people of Vancouver Island and coastal British Columbia by promoting a high quality of life for their communities through commitment to student success, community engagement and associated scholarship.

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PURPOSE Delivered in 2017/18

1,800 Aboriginal Students

Progressing to

Graduation

14,000+ Students Pursuing Dreams

2,000+ International

Students Living,

Learning and Thriving in

Canada

80+ Tuition Waiver

Students on a Path to

Graduation

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$400M Annual Regional Economic

Impact

Duel Credit, Bursaries,

Scholarships and Awards

2,300 VIU Employees Living Their

Values

37.5% Uptake - CLB Registrants

More…

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Building on Past Success

Programs currently under development:

o Master of Arts in Humanities

o Bachelor of General Studies

o Bachelor of Indigenous Leadership and Development

o Graduate Diploma in Elementary Montessori Teaching

o Graduate Diploma in Management International Trade

o Graduate Diploma in Project Management

o Acting Diploma

o Entrepreneurial Skills for Self-Sufficiency Certificate

o Indigenous Leadership Certificate

o Music Certificate

o Film Studies Certificate

o Certificate in Design Thinking

o Diploma in Engineering

o Minor in Education

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

o BA Honours in History

o BA Honours in Sociology

o BA Honours in Philosophy

o BA Honours in Psychology

o Graduate Diploma in Sustainable Leisure Management

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Building on Past Success (con’t)

OVERALL

• Academic Plan Update – Promoting and Celebrating Access

to Excellence was completed early in 2017.

• Completion of aboriginal education contracts totaling

$1.6M.

• VIU welcomed 2,070 students from over 90 countries worldwide

• Building of the new Health and Science Centre and

Automotive, Motorcycle and Marine Trades Centre

redevelopment on budget and on schedule.

• Implementation of geo-exchange pilot project in progress.

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Building on Past Success (con’t)

• VIU’s Cowichan Campus

– offered Refrigeration Level 3 for the first time on Vancouver

Island

– offered the Education Assistant Program

– Enrolled 143 SD#79 dual-credit students

• VIU’s Powell River Campus

– offered the diploma in Tourism Studies partnership with Eton

College Canada

– introduced the ITA Red Seal program – Enhanced Construction

Craft Worker Program in March, 2017

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Enhanced Student Supports

In its second year, the Student Services Fee provided the capacity to:

Install new collaborative and individual student workspaces in the 24/7 Library Commons.

Install new workstations and software applications in the 24/7 Library Commons, in collaboration with VIU’s Information Technology Department.

Purchase technological devices for student loan (Surface Pros and iPads) via the Library, in collaboration with VIU’s Information Technology Department.

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Enhanced Student Supports

In its second year, the Student Services Fee provided the capacity to:

• Improve infrastructure to enable more secure student access to the 24/7 Library Commons off-hours.

• Increased availability of Counselling and Disability Access Services, as well as training and awareness campaigns.

• Provide peer-supported learning to assist 459 students enrolled in courses with traditionally challenging content.

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Enhanced Student Supports (con’t)

Establishment of the Retention Working Group as the committee whose mandate is to implement the action items of the May 2017 Retention Task Force (RTF). Even prior to RTF, positive trending have already been realized:

• first-to-second year retention and graduation rates for Bachelor students increased approximately 10% from the 2013 cohort to the 2015 cohort (63% to 72%);

• first-to-second year retention and graduation rates for non-cohort students in Bachelor programs increased 15% from the 2010 cohort to the 2015 cohort (51% to 66%); and

• the majority of Bachelor cohort students (87%) who started in fall of 2015/16 returned to VIU or graduated at the end of 2016/17.

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Enhanced Student Supports (con’t)

• VIU Residences continues to address housing needs with low vacancy, student Rez-Life programming and contribute to the revenue imperative with the summer hoteling initiative.

• Project AURORA is progressing as planned and has garnered Provincial government funding for three years totaling $4.5M.

• The VIU Foundation granted over $4.5M to students in Scholarships, Awards, and Bursaries (including $2.1M to Aboriginal Students funded by A2E).

• Phase 1 of the Web maximization initiative was completed and a new prospective student update to the VIU website was launched in December 2017.

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Enhanced Student Supports (con’t)

The MasterCard and Rideau Hall Foundations partnered with VIU to develop the learning partnership A2E program:

• $13.5M in funding secured.

• Extensive collaboration with 15 Indigenous communities developing service agreements with each to provide comprehensive funding to 66 students from these communities.

• Hiring of four Education Navigators. The Navigators are key to providing outreach and support to students, families and communities.

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Enhanced Student Supports (con’t)In June 2017, VIU combined several disparate functions into a new division called MARCOMM (Marketing, Analytics, student Recruiting and Communications):

• This division will garner the benefits of a fully aligned function with an emphasis on working with the entire VIU staff complement to progress strategies to fill vacant student seat capacity in courses and programs.

• The outcomes of this initiative will take a few semester cycles to be fully realized.

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Building on Community Engagement• VIU continued to build on the first and most accessible Post-Care

Tuition Waiver program in the province, with 85 students enrolled in fall 2017-2018.

• VIU continues to invest in increasing awareness of the Canada Learning Bond (CLB) and BC Education and Training Savings Grant to address the growing rate of children living below the poverty line and creating new opportunities for youth to access post-secondary education.

• The Mount Arrowsmith Biosphere Regional Research Institute (MABRRI) generated $378k in project funding in 2017. MABRRI’s projects were supported by 19 faculty members from 13 departments, and MABRRI funded 18 full-time summer students and 56 part-time students over the last year.

• And much more….

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Building on Past Success (con’t)

Consolidated Resource Plan

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2018 – 2019 Consolidated Resource Plan

VIU is responsible for the financial stewardshipof $150.9M in total annual revenue and on aconsolidated basis and is tabling a balancedbudget for 2018-2019 in response to thecontinuing ‘all funds, no deficit’ Treasury Boarddirective.

• CRP is projected to increase by $7.3M or 5.08% to $150.9M from $143.7M in 2017/18

• $106.2M invested in people.

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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 AEST.

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Revenue and Expenditures

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2018 – 2019 Primary Sources of Revenue Change

• Province of BC grants increase of $1.9M:– General Wage Increase funding under the Economic Stability

Mandate of $1.6M

– New short-term funding for ABE of $0.9M to replace tuition

– Decrease of $1.0M due to completion of one time Aboriginal Education contracts

– Increase of $0.2M for Youth in Care Tuition Waiver program

– Net increase from other small contracts of $0.2M

• Other grants and contracts increase of $2.3M:– New learning partnership (primarily A2E) grants in Aboriginal

Education of $2.8M

– Decrease in International Education contracts of $0.5M

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2018 – 2019 Primary Sources of Revenue Change (con’t)

• Tuition & Student Fees decrease of $1.3M:– One-time increase of $0.4M from deferral of Student Services

Fee

– Increase of $0.2M from growth in anticipated international student enrolments

– Decrease of $2.5M due to:• 2% rate increase for domestic students of $0.4M

• reduction in domestic tuition target of $2.0M

• elimination of ABE tuition of $0.8M

• elimination of domestic ESL tuition of $0.2M

• increase related to other minor fluctuations of $0.1M

– Increase of $0.7M in growth from off grant programs and contracts

– Decrease of $0.1M in High Schools anticipated enrolments

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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2018 – 2019 Primary Sources of Revenue Change (con’t)

• Sales of goods and services increase of $1.1M:– Increase in Ancillary activity $0.9M from Food Services

– Net increase from other sources $0.2M

• Gifts, grants & bequests increase of $1.8M:– Increase of $1.9M from growth in Foundation primarily from learning

partnership (A2E) activity

– Net decrease from other sources $0.1M

• All remaining revenues combined for a net increase of $1.5M:– Increase of $0.9M in anticipated Deferred Capital Contributions of

externally funded capital assets

– Increase of $0.3M in projected interest income, driven by growth in the Foundation

– Increase in all other revenue categories of $0.3M

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Sources of Revenue

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• Salaries and benefits increase of $2.2M:– Increase of $1.7M to support the general wage increase resulting

from the Economic Stability Mandate as well as faculty and staff scale changes and fringe benefit increases

– Reduction in encumbrance results in an increase of $0.6M

– Net strategic investments and re-alignments addressing risks and providing strategic support for the continued implementation of the Academic Plan and integrated plans totaling $0.1M

• Fees & Purchased Services increase of $1.5M:– New short term contract activity in Aboriginal Education $1.4M

– Net increase from other sources $0.1M

2018 – 2019 Primary Sources of Expenditure Change

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• Scholarships and Bursaries increase of $2.8M:– Increase of $2.7M from growth in Foundation primarily from

learning partnership (A2E)

– Increase of $0.1M for all other Scholarships

• All remaining expenditures combined for a net increase of $0.8M:– Increase in Amortization of Capital Assets of $0.9M

– All other expenditure categories net decrease of $0.1M

2017 - 2018 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 PerspectiveWhat?

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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The combined perspective aligns with budget holder accountability.

• Represents 84.7% of total revenue budget

• Generates $127.9M in revenues

• $125.8M in direct internal area expenses

• $0.8M in net supporting transfers out

• $1.3M net surplus is anticipated

Operating and Off Grant Combined

Source: Schedule 1 and 2

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Ancillary Operations*

• Represents 8.0% of total revenue budget

• Generates $12.0M in revenues

• $9.5M in direct internal area expenses

• $0.6M in supporting transfer out

• $1.9M net surplus is anticipated

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

Source: Schedule 3

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Capital

• Represents 3.9% of total revenue budget

• Generates $5.9M in revenues from externally funded assets

• $9.4M amortization expense for capital assets

• $0.5M net supporting transfers in

• $2.9M net deficit anticipated

Source: Schedule 1

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Controlled Entities*

• Represents 3.4% of total revenue budget

• Generates $5.2M in revenue

• $6.3M in direct internal area expenses

• $0.8M net supporting transfers in

• $0.3M net deficit anticipated

*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 with a purpose to fundraise.

• VIU core operations is anticipated to transfer funds to support $1.0M of the planned $4.7M total scholarships and bursary awards in 2018-2019.

• The CRP does not include provisions for unrealized gains or losses on endowment investments held by the Foundation.

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Enrolment Trends

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FTE Enrolments by Fiscal Year

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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

• 2017 - 2018 received $0.3M in one time funding

• 2018 - 2019 budget includes a provision for the continuance of this $0.3M in one-time funding

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Planned Capital PurchasesInvestments2018 – 2019 budget includes $5.5M in planned capital purchases:

• $1.3M in Operating (Schedule 2 for details)

• $0.5M in Off Grant (Schedule 2 for details)

• $0.2M in Ancillary Operations (Schedule 3 for details)

• $3.5M 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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A Number of Long Term Risks Persist

Risk

• Expense pressures outpacing revenue realization

• Flat domestic enrolment

• 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 below-market employee compensation

Mitigation

• Re-baseline domestic student tuition

• Created MARCOMM

• Continue to pursue gov’tfunding

• Ancillary and the Trust

• Ensuring support for both

• Working with PSEA and supporting market comparison studies

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A Number of Long Term Risks Persist

Risk

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

• Onboarding new facilities with no corresponding operating grant increase

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

Mitigation

• Pursuing industry and philanthropic investments

• Reducing any non-essential maintenance to create capacity

• Making trade-offs and being innovative

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

Risk• 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)

Mitigation

• Project AURORA, Borealis and Constellation

• Lobbying for increases; preventative maintenance

• Partnerships

• Advancement Department activities

• Continue to align with government mandate and garner understanding of challenges and possibly relief

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Schedules and Appendices

Schedule 1: Consolidated Budget Statement

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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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