Board of Governors Report of the Long Term Financial Planning by armedman1

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									                      www.dal.ca



 Board of Governors
    Report of the
    Long Term
Financial Planning
    Committee
                                             www.dal.ca

Committee Mandate:
“… to present the strategic fiscal options Dalhousie
faces in order to maintain its focus on academic
excellence within a stable financial environment.”

The committee respectfully offers:
9 Strategic Recommendations and 32 Operational
Recommendations
                                             www.dal.ca

The history:
1990                         2006
10,320 students              15,549 students
$106.4 M operating budget    $228.6M operating budget
$28 M in research            $100 M in research
$33.4 M unsecured debt       $0 unsecured debt
$3.8 M annual debt charges   $3.3 M income on cash
                             flow
                                              www.dal.ca

Committee recommendations related to:
•   Enrolment and Tuition
•   Government operating grants
•   Fund raising and endowments
•   Student assistance
•   Deferred Maintenance/Facilities Renewal
•   Academic programs, faculty and staff
•   Research
•   Pension Plan
•   Current policy including ERBA
                                              www.dal.ca

Committee recommendations related to:
•   Enrolment and Tuition
•   Government operating grants
•   Fund raising and endowments
•   Student assistance
•   Deferred Maintenance/Facilities Renewal
•   Academic programs, faculty and staff
•   Research
•   Pension Plan
•   Current policy including ERBA
                                    www.dal.ca

Full-time Students 2003/04:
University              Enrolment
Alberta:                29,800
Western:                27,800
Calgary:                24,200
Ottawa:                 24,200
Manitoba:               20,700
McMaster:               20,000
Queen’s:                18,700
Saskatchewan:           15,000
Dalhousie University:   13,500
                                          www.dal.ca

Distribution of Full-time students:
                          Comparator   Dalhousie
Low Cost
(Undergraduate Arts and
Social Sciences)              29.4%       17.3%
High Cost
Graduate Students             14.8%       21.1%
Medical/Professional          24.2%       33.1%
Total High Cost:              39.0%       54.2%
                                            www.dal.ca

Shifting demographics:
Enrolment:       2000-01     %    2004-05       %

Nova Scotia        7214    57 %     7697     49 %
Other Atlantic     1948    15 %     2086     13 %
Ontario            1644    13 %     3246     21 %
Other Canada       1122     9%      1462      9%
International       808     6%      1323      8%
                                                     www.dal.ca

Recommendations: Enrolment
1. Emphasize enrolment stability and growth and
   identify strategies to increase enrolment in
   lower cost programs

2.   Evaluate enrolment target (17,000 by 2010)
3.   Review ERBA as incentive for growth in lower cost
     programs
4.   Grad-undergrad balance through undergrad growth
5.   Develop a business case for international recruitment
6.   Resolve engineering anomaly
                                                      www.dal.ca

Relative level of self sufficiency:
                         Tuition Earned       Faculty Revenue
                              as % of costs         as % of costs
Dentistry                        18.6%                82.6%
Medicine                         18.8%                96.5%
Science                          41.5%                99.5%
Law                              46.3%                86.9%
Management                       62.6%               112.8%
Arts & Social Sciences           72.3%               123.3%

University                          40%                 100%
                                                 www.dal.ca

Recommendations: Tuition Policy
1. Board reaffirm policy that fees reflect program
   cost, graduates’ prospects, fees for similar
   programs elsewhere, demand and available
   student support
2. Monitor relationship between fees and
   enrolment

3.   Consider faculty cross-subsidization when fees are
     adjusted, or adjust faculty budgets accordingly
                                                www.dal.ca


Provincial operating grants:
                               1990      2000     2004
As % of operating revenue      73%       47%    40.7%
(all schools)



Per full-time student (NS)   $6,942    $6,335   $5,795


N.S. ranks:                   9 / 10    10/10    10/10
                                                www.dal.ca

Recommendations: Government Grants
1. With other universities and the province,
   ensure that lower tuitions will not reduce
   university revenues
2. Work to increase per student funding to national
   average within five years
3. Changes in funding formula should reflect actual
   costs of professional programs and true costs of
   indirect support for teaching and research.
                                               www.dal.ca

Recommendations: Fund Raising
1. Establish aggressive target for next decade
2. Endowments should be highest priority
3. Capital projects should include endowment for
   ongoing maintenance of new buildings.
                                                 www.dal.ca

Recommendations: Student Assistance
1. Dalhousie should champion access, join with students
   to press government for increased grants, needs-based
   assistance
2. Dal should maintain, increase support for students
3. Review mix of scholarship, bursary, and student
   employment to best meet needs of students, and attract
   top students
4. Consider “academic bursaries” to attract academically
   superior students with financial need
                                                 www.dal.ca

Recommendations: Academic, Faculty, Staff
1. Develop guidelines to evaluate the viability of
   new and existing programs
2. That faculty recruitment lead to student-faculty
   ratio and cost per student more in line with
   comparable universities
3.   Annual performance evaluations of faculty and staff
     should become positive tool
                                                www.dal.ca

Recommendations: Research
1. That the university work to secure additional
   revenue to cover the indirect costs of research
2.   Dalhousie must pursue increased research funding
3.   Report research related costs to board, community
                                         www.dal.ca

Recommendations: Budget Policy, ERBA
1. That operating budgets be balanced
2. No unfunded debt
3. That ERBA be maintained and refined
                                           www.dal.ca

Recommendations: Pension
1. That the university seek to change - and act to
   mitigate against - structural issues which affect
   the cost of the university’s pension plan
                                                  www.dal.ca

Recommendations: Facilities Renewal
1. Intensify effort to secure government
   support to address facilities crisis;
   Dalhousie must increase budget for
   facilities by $1 million a year until it
   reaches two per cent of CRV
2.   Develop a plan to use long-term debt – supported by
     funds to fully retire debt – to address most pressing
     facilities renewal needs
                               www.dal.ca


      Thank you

Report to Board of Governors
    November 28, 2006

								
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