What is the
budget process this year? How are decisions on the budget being made and
Act informs the budget
process, and the Board
policy governs the
development of the budget. By law, the Board of Governors must adopt a balanced
budget. They also consider the University’s academic integrity and financial
sustainability when making budget decisions.
continue to provide updates on our website as we move forward with the budget
How does the
Strategic Plan impact the budget?
Our 2015-2018 Strategic Plan identifies the direction and goals of the University, as well as the
actions we will take to achieve those goals. The initiatives proposed in the Strategic
Plan will affect the budget and guide where modifications will be necessary to
ensure we deliver on our commitments.
Why does Capilano University place a strong emphasis on
committed to providing a quality education for all students. International
students enrich our classes and enable us to deliver on our commitment to
provide graduates with relevant skills, including a global perspective. Our partnerships
with international post-secondary institutions create opportunities for
students to study abroad and prepare them for a future within the global
community. Employers place a premium on students with international experience,
and the Ministry of Advanced Education has stated that increasing international
enrolments is a key priority.
international student tuition contributes approximately $12 million to Capilano
What was the final accounting for the
2013/14 budget year?
Capilano University ended the last
fiscal year (at March 31, 2014) with an unexpected surplus of $1.337 million.
This surplus was the result of two extraordinary circumstances that occurred in
the fourth quarter—too late in the fiscal year to influence our final
The first resulted when
we changed our investment management firm. When the search and bid process was complete, in January
2014, Capilano awarded its fund management contract to Philips Hagar &
North (PHN). The transition to a new fund manager required that the funds held
by the University be sold by the outgoing manager (Genus Capital) and bought by
the incoming fund manager (PHN). That process took several weeks and concluded
with the first report from Philips Hagar & North on April 10th that
indicated the transition resulted in having more realized earnings
The second factor related
to the outcome of a GST audit by the Canada Revenue Agency. These two factors
resulted in a surplus for 2013-2014. This surplus did not affect the funds
available for 2014-2015 or the budget for 2014-2015.
two unexpected items, Capilano would have concluded the budget year
with a $50,000 surplus—a remarkably small amount for a very complex
organization with a $90 million budget.
When the books were closed on
March 31st, 2014
the surplus was added to the prior accumulated surplus (all Capilano surpluses
from previous years). Every university across BC is required to manage their
surplus in this way. At this time, government does not allow post-secondary
institutions to access their accumulated surplus. We continue to advocate
the government for a change in this practice that would allow us to take
advantage of realized earnings like those unexpected earnings in the
2013/14 budget year.
Have the administrative salaries at the university
increased over time?
includes deans, directors, vice presidents and the president. Capilano
currently has two vice presidents, down from five in 2010-11. Capilano's
administrative salaries are set by the Post-Secondary Employment Association
(PSEA) and are less than the median at other post-secondary institutions. The
Ministry has not granted administrative salary increases since 2009 whereas
faculty and staff (represented by the CFA and COPE, respectively) have received
annual increases in keeping with negotiated collective agreements.
What is the difference between one-time funds and ongoing
support expenses that relate to ongoing commitments, such as salaries, benefits
or the janitorial contracts that continue from year-to-year. One-time funds
support expenses such as new program developments, consultants, etc.
Does student tuition offset our program expenses?
If we take all
of our expenses into account, student tuition does not cover our costs. In fact, we estimate Cap subsidizes, on average, $300 per section.
Capilano's tuition costs compare with others?
Our average Arts & Science student tuition is $3,539 compared
to a provincial average of $4,203. Our tuitions have been historically low and
are limited by the government. The tuition-limit policy typically caps
tuition increases at a rate of two per cent annually. As a result, Capilano’s tuition
rises at a slower rate than other universities.
standards being met?
As a public
institution we are required by law to have an independent audit performed each
year. Our auditor of record is KPMG.
opinion on our financial
statements is that
they have been prepared, in all material respects, in accordance with the
financial reporting provisions of Section 23.1 of the Budget
Transparency and Accountability Act of the Province of British Columbia.
In addition, the
Office of the Auditor General participated in our audits for 2009-11 and Capilano
welcomed a review by the Ministry in 2012/2013 as part of our financial
What accounting policies does Capilano use?
Government requires all universities to follow Public Sector Accounting Board
Can new student fees be added to help generate revenue
for the University and offset the budget?
student fees are subject to the government's tuition-limit policy.
Is my program
at risk of being cut?
The preliminary budget for
2015/16 shows a $1.2 million shortfall.
post-secondary institutions in British Columbia are required to have a balanced
budget. In order to achieve this, Capilano will be guided by the goals and
objectives of its new Strategic Plan and will explore all possible options,
including: increasing revenue
generation, finding greater efficiencies, reducing services and discontinuing
programs and courses.
Will my tuition fees increase?
University’s tuition fees are the lowest of all B.C. universities and among the
lowest in Canada. The government has capped tuition fee increases at two per
cent annually since 2005 according to the tuition-limit policy. Any future
tuition fee increases will continue to be guided by the government’s tuition
Will any student services be discontinued?
We will explore
all options to produce a balanced budget; however, Capilano University is committed
to supporting students in their academic success and will maintain student
services as much as possible.
What is the university's 'teach-out policy' for
The Senate's policy for teaching-out students affected by discontinued
programs aims to protect the interests of both students and
University is committed
to providing students who are currently registered in their programs a
reasonable opportunity to complete the program if it is discontinued.
Are we able to use donations to cover ongoing
The focus of
Capilano’s fundraising efforts is on supporting students directly via
scholarships and bursaries. Fundraising is not a suitable means of funding
operations as ongoing expenditures/commitments (e.g. salaries) require a guaranteed
source of ongoing revenue.
Capilano University | 2055 Purcell Way, North Vancouver, British Columbia Canada V7J 3H5 Tel: 604.986.1911
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