Budget Process Update
March 22, 2017
Budget 2017/18 Messaging: Update #2
Overview
The 2017/18 budget was approved by the Capilano University Board of Governors at its March 14, 2017 meeting.
This budget is the first in a three-year operating and budget planning cycle, allowing the University to apply greater foresight in funding initiatives. The process has included representation of all departments and faculties, who brought forward their operating plans for executive review. As is typically the case, the combined requests for new funding of departmental and faculty initiatives exceeded the funds available. The budget priorities that guided decision-making for the upcoming fiscal year were based on two key drivers: building our operational service capacity and increasing the number of students attending Capilano University.
Key assumptions in planning the 2017/18 budget:
The process is based on the key assumptions related to:
- Financial outlook
- Planning horizon
- Starting point "as is" [current] budget
- Operating grant
- Tuition and mandatory fees
- New programs and expanded capacity
- Salaries and benefits
- Student enrolment
- New investments
- Capital
Of note for 2017/18:
- Total operating revenues are estimated at $98.5 million; with the operating grant and tuition revenues representing almost 85%.
- Total operating expenses are estimated at $98.5 million. The majority of expenses support salaries and benefits ($66.8 million), operating ($23.6 million) and amortization of capital ($8.1 million).
- The net change in the 2017/18 budget over the 2016/17 forecast is $4.6 million or 4.8%.
Key Investments in 2017/18 include:
- Student scholarships and bursaries - $0.3 million. An additional $250,000 will support unmet student financial needs based on current demand, and $50,000 to support development of in-course scholarships. Additional investments will be included in future years.
- Sexual Violence and Misconduct - $0.08 million. Education and training needs are estimated at $25,000 plus 0.5 FTE for a new counsellor.
- Campus master plan - $0.3 million. An RFP is being prepared to solicit proposals to assist with the process and development of a campus master plan. A new Director position will be established to oversee the project.
- Renovations for the Student Success Centre - $0.5 million. Options to relocate existing programs and services from and into the Library are being explored to support student life and engagement. This is a conservative estimate of the total cost, with additional capital needs for furniture and equipment to be considered separately.
- Website redevelopment - $0.3 million. Contracted resources will be needed to create a mobile-friendly website that is easy to use and better meets the needs of students.
As always, there is emphasis on risk management in planning the budget. In particular, tuition revenues are closely tied to enrolment numbers. By end of September (September 18th being the last add/drop date for the fall term), we'll know if adjustments are necessary. Depending on our financial position at that time, it may be possible to consider new budget requests that could not be accommodated at this stage of budget planning.
A budget is only a plan. Maintaining a conservative budget that places students first, fulfills our mandate to Government, demonstrates good stewardship of our resources and seeks new and diversified revenue sources is a shared responsibility. As always, we must practice real discipline around our spending.
Surplus in 2016/17
Surplus in the 2016/17 budget year was allocated to a number of direct supports to students, including a one-time addition of bursaries, facilities improvements, as well as an investment in the first out-of-home advertising campaign for Capilano University in more than 10 years. The campaign featured Cap on billboards, transit shelters, bus super tails, newspapers, Skytrain and Seabus stations throughout the Lower Mainland, and social media platforms. The demolition of the P Building was also a major undertaking that happened late in the year.
While managing the surplus by supporting funds for these priorities made it possible to address many pressing needs at this time; the three-year planning cycle that begins with the 2017/18 budget improves our ability to prioritize and facilitate growth through strategic, advanced planning.
To learn more and participate in a Q&A session on this year's budget, please plan to attend one of the following sessions led by President Paul Dangerfield and VP Finance and Administration Jacqui Stewart:
- Tuesday, April 4, 2017 from 12 to 1 p.m. in LB322
- Thursday, April 13, 2017 from 12 to 1 p.m. in CE148
Budget Process Update
February 3, 2017
Update: information about the current budget year and 2017/18 budget planning process
The 2016/17 budget
As a result of sound financial management and diligent attention to our expenses, we are pleased to report that Capilano University is in a stable financial position. Moreover, a surplus of approximately $2 million has been identified for reinvestment in the University’s current operations.
Priorities to allocate the surplus are focused on investing in our two strategic goals: building our operational capacity and growing the number of students attending Capilano University.
The priorities were identified through our operating planning process in which all faculties and departments participated. The priorities include investing an additional $250,000 in bursaries—to increase our financial support to students with verifiable needs. Advertising, brand implementation, recruitment efforts, and facilities upgrades have also been identified as spending priorities that directly support our strategic goals.
Looking ahead: the 2017/18 budget
In tandem with addressing the current year’s surplus, we are actively preparing our 2017/18 budget, which will continue to reflect our stronger financial position. More details will follow in our next February 2017 budget update.
Although many unforeseen variables can impact longer term forecasting, at this time, we anticipate being able to maintain our strengthened financial position, which will allow is to further invest in our operations on an ongoing basis.
Budget Process Update
November 17, 2016
Dear colleagues,
As you know, our commitment to ensuring student success remains a top priority. As we begin preparing the 2017/18 budget, Capilano University will continue to make decisions that support this core value, as well as align with the goals outlined in the 2015-18 Strategic Plan, including targeting resources to increase enrolments, developing new degree offerings, building capacity and improving communications.
Budget Timeline
Throughout the budget planning process, there are a number of key milestones and opportunities for consultation.
These dates are outlined in the following budget timeline:
October 31/16: Develop budget strategy
November 3/16: Update to Audit Committee
November 15/16: Establish preliminary 2017/18 budget position
November 29/16: Consultations with Senate Budget Advisory Committee
* Post-November 29/16: Share with unions (Capilano Faculty Association and Move‐Up)
January 15/17: Final deliberations as informed by Operation Plans
January 24/17: Consultations with Senate Budget Advisory Committee
* Post-January 24/17: Share with unions (Capilano Faculty Association and Move‐Up)
February 7/17: Update to Audit Committee
February 21/17: Draft budget to Board of Governors for approval
March 14/17: Final budget to Board of Governors for approval
* scheduling underway