University of New Brunswick

							University of New
   Brunswick
 Overview of Finances

    March 16, 2004
       AGENDA

• Where do our $ come from

• Where do the $ go

• Budget Process



                      University of New Brunswick
             TOTAL
          UNB REVENUE
           $192 Million
           6.7%   1.1%



  13.5%




8.0%
                                     General Operating
                                     Endowment and Trust
                                     Sponsored Research
                                     Ancillary
                                     Capital
                         70.7%




                                 University of New Brunswick
                    UNB
          OPERATING REVENUES
         2003-04 BUDGET ($131.6 M)

          4.31%




35.04%


                   60.65%
                            Provincial Operating Grant
                            Tuition Income
                            Other



                              University of New Brunswick
        UNB FREDERICTON
COMPOSITION OF TUITION INCOME
 (2003-04 BUDGET $32.8 MILLION)

         7.63%
10.18%




                          Undergraduate
                          Graduate
                 82.19%   International Supplement




                                University of New Brunswick
         TRENDS IN OPERATING
             REVENUES
80.00%
                                              gov’t grants
                                              student fees
60.00%


40.00%


20.00%


0.00%
         91-92   93-94   95-96   97-98       99-00         01-02

                                         University of New Brunswick
               UNB
   PROVINCIAL OPERATING GRANT
            % CHANGE
4.0
                                                                  03-04
3.0                             99-00           01-02
                                        00-01            02-03
2.0
1.0
0.0
(1.0)
(2.0)                   98-99
                97-98
(3.0)   96-97

(4.0)

                                                 University of New Brunswick
     UNB FREDERICTON
  FULL-TIME AND PART-TIME
 UNDERGRADUATE ENROLMENT
9200

8800

8400

8000

7600
7200

6800

6400

6000
       1996   1997   1998   1999   2000   2001     2002     2003E

                                           University of New Brunswick
             UNB
FULL-TIME GRADUATE ENROLMENT

 900
 825
 750
 675
 600
 525
 450
 375
 300
 225
 150
  75
   0
       1998   1999   2000   2001    2002        2003B
                                   University of New Brunswick
       TUITION FEES
MARITIME UNIVERSITIES 2003-04
                                         Tuition           % Change
                                          Fees     Rank   02-03/03-04

          Acadia                         7,012      1         6.5
          Mount Allison                  5,360      2         7.6
          Saint Francis Xavier           5,310      3         7.5
          University of King's College   5,220      4         7.4
          Dalhousie University           5,220      5         7.4
          College of Cape Breton         5,020      6         9.8
          Université Sainte-Anne         4,975      7         5.0
          Saint Mary's                   4,945      8         5.5

          Group Average                  4,897                6.9

          N.S. College of Art & Design   4,901       9        7.5
          Mount Saint Vincent            4,850      10        6.0
          N. S. Agricultural College     4,700      11        9.3
          UNB                            4,510      12        5.7
          Atlantic School of Theology    4,400      13        4.8
          Université de Moncton          4,126      14        8.0
          UPEI                           4,100      15        5.9
          Saint Thomas                   3,695      16        5.0


Based on Arts Program                                               University of New Brunswick
COMPULSORY ANCILLARY FEES
   (Includes Health with Opt Out)
  Concordia                         967
  York                              786
  Guelph                            762
  Windsor                           670
  Victoria                          582
  Average                           578
  Carleton                          518
  Simon Fraser                      463
  Memorial                          442
  Waterloo                          440
  Regina                            411
  UNB                               321
                 # 54th out of 61   University of New Brunswick
          TUITION FEES
      MARITIME UNIVERSITIES
             2003-04


                               Change
                   5 Year Period    9 Year Period
                      $     %          $     %

UNB                1,220   37.1     2,040     82.6


MARITIME AVERAGE   1,326   37.1     2,193     81.1




                                      University of New Brunswick
       AVERAGE UNDERGRADUATE
             TUITION FEES
       PROVINCIAL COMPARISONS
                                              % Change
                   2003-04   2003   2002     (5 years)    (9 years)

CANADA              4,025    7.4     4.1      27.5          84.7

Newfoundland        2,606    4.5    (10.1)   (17.3)         21.2
Prince Edward
     Island         4,133    6.2     4.9      24.9         57.7
Nova Scotia         5,557    6.6     7.4      42.3         88.6
New Brunswick       4,457    6.5     8.4      39.5         89.4
Quebec              1,862    0.6     0.5     (18.3)         9.9
Ontario             4,923    5.5     3.2      39.3         118.6
Manitoba            3,155    0.3     0.2      15.8         41.7
Saskatchewan        4,644    8.3    (0.9)     48.4         88.9
Alberta             4,487    7.7     3.3      30.0         83.1
British Columbia    4,140    30.4   25.2      68.9         84.1
UNB                 4,510    5.75    8.1      37.1          82.6
                                                 University of New Brunswick
     WHY DO TUITION FEES
      GO UP ANNUALLY?


• Operating costs go up each year
  – University inflation


• Provincial grant does not increase
  at the same rate as university
  inflation.


                            University of New Brunswick
                   INFLATION
       12 months ended December 31, 2003


● All items Canada                         2%

● Education and Reading                  5.9%

● Tuition Fees                           8.1%

● Water, Fuel, Electricity              15.0%

                                    University of New Brunswick
Source: Statistics Canada
               UNB
     INCOME/EXPENSES SCENARIOS
                   (Stable Enrolment)
                                 Scenarios
Costs                     A          B                  C

Cost Increases           3%         4%                5%



Revenues

Provincial Grant         3%         3%                3%
(60.65%)
Other (4.31%)            3%         3%                3%

Tuition Fees (35.04%)    3%        5.85%             8.7%
                                           University of New Brunswick
              UNB
 BUDGETED OPERATING EXPENSES
        2003-04 ($131.6 M)
         9.29%


14.59%




                          Faculties & Departments
                 58.68%
                          Academic & S tudent S upport
17.44%
                          Administration
                          Maintenance & Utilities




                                  University of New Brunswick
             UNB
OPERATING EXPENSE COMPOSITION


 23.9%




                      Salary & Benefits
                      Non-Salary Operating
              76.1%



                          University of New Brunswick
  UNB – FREDERICTON CAMPUS
  FACULTIES & DEPARTMENTS
          $61.3 Million


• Salaries and Benefits
  – 511 Academic Positions
  – 200 Support and Technical Positions


• Day-to-Day Operating Expenses



                                  University of New Brunswick
  UNB FREDERICTON CAMPUS
ACADEMIC & STUDENT SUPPORT
         $18.5 Million


• Library                 • $6.2 million

• Student Services &      • $5.4 million
  Support

• Classroom ITS Support   • $1 million



                              University of New Brunswick
        UNB FREDERICTON CAMPUS
              $14.8 MILLION

• ADMINISTRATION

  –   President                -   Security/Safety
  –   Human Resources          -   IT
  –   Alumni                   -   Registrar
  –   Development              -   Legal
  –   Financial Services       -   Insurance
  –   University Secretariat   -   Student Recruitment &
                                   Marketing

                                            University of New Brunswick
   UNB FREDERICTON CAMPUS
          $9.8 Million

Maintenance & Utilities

  - Heat                       $2 million

  - Electricity                $2 million

  -Cleaning                    $1.6 million

  - Building & grounds         $4.2 million

                    --- 2.7 million sq. ft.----
                                            University of New Brunswick
    UNB FREDERICTON CAMPUS
    EXPENSE COMPARISONS TO
        MacLEAN’S GROUP
             2001-02
70.0%
           60.4%
60.0%                  57.7%

50.0%

40.0%

30.0%

20.0%
                                     UNB
10.0%                                MacLEAN'S GROUP

0.0%
         Instruction           University of New Brunswick
 UNB FREDERICTON CAMPUS
 EXPENSE COMPARISONS TO
     MacLEAN’S GROUP
          2001-02
9.0%
                            8.2%
8.0%
       7.3%
7.0%
              6.1%
6.0%
5.0%                 4.7%

4.0%
3.0%
2.0%
                                               UNB
1.0%
                                               MacLEAN'S
0.0%
       Library       Student
                     Services      University of New Brunswick
                                  Total Entrance/Undergraduate
                                      Scholarships at UNB
                               $3.0
                                                                                                                     $2.5
                                                                                                            $2.4
                               $2.5                                                          $2.3
Number of dollars (millions)




                               $2.0                                            $1.8
                                                                $1.6

                               $1.5             $1.3
                                       $1.1

                               $1.0

                               $0.5

                               $0.0
                                      1996-97   1997-98        1998-99      1999-2000       2000-01       2001-02   2002-03
                                                       Source: Undergraduate Student Awards, Registrar's Office
Scholarships, Bursaries, and Prizes
          – Total Funds
                               $4.0
                                                                                                                         $3.6
                                                                                                                 $3.5
                                                                                               $3.4
                               $3.5
Number of dollars (millions)




                               $3.0                                             $2.8

                                                                 $2.4
                               $2.5
                                                 $2.1
                               $2.0    $1.7

                               $1.5

                               $1.0

                               $0.5

                               $0.0
                                      1996-97   1997-98        1998-99      1999-2000        2000-01        2001-02     2002-03
                                                        Source: CAUBO Financial Statistics, 1996-97 to 2002-03
                                              UNB
                                      GRA’s, GTA’s, UGTA’s
                                                  Operating
                               $3.0
                                                               $2.7

                               $2.5
Number of dollars (millions)




                                         $2.2

                               $2.0


                               $1.5


                               $1.0


                               $0.5


                               $0.0
                                        2000-01               2003-04
                                            UNB
                               Total Payments Made to Students

                               $15.0

                               $14.0                                                           $13.7
                                                                                      $13.0
Number of dollars (millions)




                               $13.0
                                                                     $12.1
                               $12.0             $11.3

                               $11.0
                                        $9.8
                               $10.0

                                $9.0

                                $8.0

                                $7.0
                                       1998-99   1999-00           2000-01           2001-02   2002-03
                                                         Source: UNB Financial Services
      UNB FREDERICTON CAMPUS
       EXPENSE COMPARISON TO
           MacLean’s Group
               2001-02
13%
               11.0%
11%                      10.3%
        9.9%                     10.0%

9%

7%                                                 UNB
                                                   MacLean's
5%

3%

1%
       Administration   Physical Plant   University of New Brunswick
   UNB FREDERICTON
EXPENSE COMPARISONS TO
    MacLEAN’S GROUP
         2001-02

  4.5%
             4.2%   3.9%
  4.0%
  3.5%
  3.0%
  2.5%
  2.0%
  1.5%
  1.0%
  0.5%                            UNB
  0.0%                            M acLEAN'S
         Information Technology
                                        University of New Brunswick
OPERATING EXPENDITURES
  (per WFTE MacLean’s)
      2003 Rankings
Simon Fraser      $9,227
Memorial          8,971
Victoria          8,672
Guelph            8,386
Regina            8,262
Average           8,108
Windsor           8,064
Waterloo          7,862
New Brunswick     7,809
Carleton          7,431

York              7,342

Concordia         7,162
                   University of New Brunswick
                UNB
        FINANCIAL POSITION
    ANNUAL NET OPERATING RESULT
   450
   300                                    98-99                         02-03
                                  97-98           99-00 00-01   01-02
   150
     0
  (150)
  (300)
  (450)
  (600)
          94-95
  (750)
  (900)
(1,050)
(1,200)
(1,350)
(1,500)           95-96
(1,650)
(1,800)
(1,950)
(2,100)
(2,250)
(2,400)                   96-97
(2,550)
                                                           University of New Brunswick
       University of New Brunswick
       FREDERICTON CAMPUS
PRO-FORMA FINANCIAL FORECASTS (000’S)
               (2004-05 Tuition Fee Increase equal to 2003-04)



Baseline Operations

                       2004-05     % chg    2005-06      % chg       2006-07     % chg


Revenues              $109,139.2   4.16%   $113,495.4    3.99%   $117,706.3      3.71%


Expenses              109,154.4    4.17%   113,838.0     4.29%    118,255.3      3.85%


Net Position           $ <15.3 >            $ <342.6 >             $ <518.9 >




                                                                 University of New Brunswick
          University of New Brunswick
          FREDERICTON CAMPUS
     FINANCIAL OUTLOOK FOR BASELINE
                 OPERATIONS
          ($ millions – annual results)
0

-1

-2

-3

-4
                                       0% Tuition Fee
-5
                                       5.75% Tuition Fee
-6

-7
       2004-05   2005-06   2006-07

                                     University of New Brunswick
       University of New Brunswick
       FINANCIAL CHALLENGES
• Utility Cost Increases         • $1 million over 3 years

• Pension Costs                  • $1.7 million over 2 years

• Capital Renewal
  Requirements                   • $100 million
   – Spend $1 million per year
   – Standards are between
    $7-14 million for our size

• Gap Areas
   – Student Services
   – Scholarships

                                             University of New Brunswick
 University of New Brunswick
 FINANCIAL STRATEGIES

• Fund Raising Campaign        $60 million

• Expand other incomes
   – Properties
   – New ventures
   – College of Extended Learning

• Increase Research funding for spin-offs

• Planning & prioritization
                                    University of New Brunswick
University of New Brunswick
 BUDGET COMMITTEES
                Board of Governors


                Finance Committee


                    President


                   University
                  Management
                   Committee


  Fredericton                        Saint John
  Committees                         Committees

                                              University of New Brunswick
FREDERICTON BUDGET COMMITTEES

                          Fredericton
                          Committees

     Budget                    Membership
                 -   VP Fredericton                     Purpose
    Advisory     -   Deans
     Group       -   Directors                 -   Context and Overview
                 -   Students (4)
                 -   Faculty/Senate (2)
                 -   About 30-40



     Budget                    Membership
                 -   VPA Fredericton (Chair)            Purpose
   Management    -   Student (1)
   Committee     -   Faculty/Senate (1)        -   Review Budgets
                 -   Others TBD                -   Advice on allocations
                 -   Less than 10              -   Assemble package




    Integrated                Membership
                                                        Purpose
    Planning &   -   Academic Budget Manager
    Budgeting    -   Budget Staff              - Support BMC
                 -   Others TBD                - Detailed compilation
       Team                                      and indicators




                                                       University of New Brunswick
STUDENTS INVOLVED IN BUDGET
          PROCESS
 •   Budget Advisory Group
      – Paul Wilson, GSA
      – Adam Baker, Student Union
      – Laura Ross, Student Union
      – Penny Decker, ALPS

 •   Budget Management Committee
      – Adam Baker, Student Union

 •   Finance
      – Milan Chotai, Student Union

 •   Board of Governors
      – Milan Chotai, Student Union
      – John Campbell, Student Union SJ

                                          University of New Brunswick
       QUESTIONS/FEEDBACK


•   Vice-President Academic – vpacad@unb.ca

•   Vice-President Finance - vpfin@unb.ca

•   Adam Baker - finance@unb.ca


•   Presentation can be viewed at:

         http://www.unb.ca/services/financialservices/facstaff/bud_plan.htm




                                                        University of New Brunswick