Budget 2013/14 and Business Plan Town Hall March 7, 2013 ANNUAL BUDGET 2013/14
Jan 16, 2016
Budget 2013/14 and
Business Plan Town Hall
March 7, 2013
ANNUAL BUDGET 2013/14
Presentation Outline
• Financial Health of the College• Challenges Ahead• Annual Budget 2013/14
Annual Budget 2013/14
2March 7, 2013
Financial Health – Ratio Analysis
1. Quick Ratio
2. Total Debt to Assets Ratio
3. Debt Servicing Ratio
4. Net Assets to Expense Ratio
5. Net Income to Revenue Ratio
6. Net Asset Summary
Annual Budget 2013/14
3March 7, 2013
Quick Ratio
March 7, 2013
Annual Budget 2013/14
4
Objective: • Fiscal performance indicator testing the college’s ability to pay its short term maturing
obligations (e.g. biweekly payroll payments).
Benchmark: • Less than 1.00 is typically a concern because it begins to indicate that a college may not be
able to meet its short term obligations.
Note: When including surplus cash invested in longer term investments (greater than 1 year) Algonquin’s Quick Ratio is in the range of 1.75 to 2.00
Compare with 2003/04 Quick Ratio of 0.8
2009/10 2010/11 2011/12 2012/13 Q3 Projection
Proposed 2013/14 Budget
0.80
0.90
1.00
1.10
1.20
1.30
1.40
1.50
College Benchmark
Qui
ck R
atio
Total Debt to Assets Ratio
March 7, 2013
Annual Budget 2013/14
5
Objective: • Measures the proportion of total assets that are financed by debt. A high or increasing value
may be predictive of future liquidity problems or a reduced ability to borrow money in the future.
Benchmark: • Greater than 35% leads to a concern as this may indicate that a college will not be able to
finance their ongoing operations due to the debt burden.
Note: Compare with 2003/04 Total Debt to Assets Ratio of 52%
2009/10 2010/11 2011/12 2012/13 Q3 Projection
Proposed 2013/14 Budget
15.00%
20.00%
25.00%
30.00%
35.00%
40.00%
College Benchmark
Tota
l Deb
t to
Ass
ets
Rati
o
Debt Servicing Ratio
March 7, 2013
Annual Budget 2013/14
6
Objective: • This ratio measures the College’s spending on servicing the debt portfolio and could be used
as an indicator that the college may be over-leveraged in debt.
Benchmark: • A ratio greater than 3% indicates that the college is spending less than 97% on core services
which leads to a possibility that the college may be over-leveraged with debt payments.
Note: Compare with 2003/04 Debt Servicing Ratio of 2.7%
2009/10 2010/11 2011/12 2012/13 Q3 Projection
Proposed 2013/14 Budget
0.00%
0.50%
1.00%
1.50%
2.00%
2.50%
3.00%
3.50%
College Benchmark
Deb
t Ser
vici
ng R
atio
Net Assets to Expense Ratio
March 7, 2013
Annual Budget 2013/14
7
Objective: • A traditional indicator to ascertain the ability of a college to continue operations in the event there is a
delay in revenue streams.
Benchmark: • Less than 60% may be a concern since it could indicate that a college may not have sufficient internally
accumulated resources in the future to fund operations and may be heading towards a deficit position. A negative percentage indicates the college is already in a deficit position.
Note: Compare with 2003/04 Net Assets to Expense Ratio of 48%
2009/10 2010/11 2011/12 2012/13 Q3 Projection
Proposed 2013/14 Budget
50.00%
55.00%
60.00%
65.00%
70.00%
75.00%
80.00%
85.00%
90.00%
95.00%
100.00%
College Benchmark
Net
Ass
ets
to E
xpen
se R
atio
Net Income to Revenue Ratio
March 7, 2013
Annual Budget 2013/14
8
Objective: • This ratio is an indicator of fiscal performance that measures the extent of a balanced
budget.
Benchmark:• Less than 1.5% may be a concern because it may indicate that the college may not be able
to recover from a deficit position in a reasonable period of time.
Note: Compare with 2003/04 Net Income to Revenue Ratio of (0.24)%
1.00%
1.50%
2.00%
2.50%
3.00%
3.50%
4.00%
4.50%
5.00%
College Benchmark
Net
Inco
me
to R
even
ue R
atio
Net Asset Summary
March 7, 2013
Annual Budget 2013/14
9
Objective: • To measure a net asset balance for operating purposes.
Benchmark:• Less than zero indicates an accumulated deficit.
Note: Compare with 2003/04 Net Assets Summary of $(5,143k)
2009/10 2010/11 2011/12 2012/13 Q3 Projection
Proposed 2013/14 Budget
-
10,000
20,000
30,000
40,000
50,000
60,000
70,000
Net Assets
Net
Ass
et S
umm
ary
(Col
lege
) ($
000'
s)
Financial Health – Results
Algonquin College is in
Good Financial Health
Annual Budget 2013/14
10March 7, 2013
CHALLENGES AHEADBudget 2013/14 and Business Plan Town Hall
Annual Budget 2013/14
March 7, 2013
Date
PowerPoint Presentation Title
Public Funding vs. Other Revenues
Annual Budget 2013/14
13March 7, 2013
2014 Pro-posed Budget
2013 Q3 Report
2012 2011 2010 2002 $-
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
$140,000
$160,000
$180,000
$200,000
Total Grants and Reimbursements
Total Other Revenues
Fund
ing/
Reve
nue
($ 0
00's
)
58% 62% 66%64%
71%
44%42%
38%
58% 62% 66%64%
71%
44%42%
38%
37% 38% 40%39%
41%
64%63%
62%
60%61%
59%36%
College Funding Framework
Annual Budget 2013/14
14March 7, 2013
FY10 FY11 FY12 FY13 (projected) FY14 (budget) 3,700
4,200
4,700
5,200
5,700
170,000
180,000
190,000
200,000
210,000
220,000
230,000
GRA
NTS
/FTE
($)
OPE
RATI
NG
EXP
END
ITU
RES
($ 0
00'S
)
4.21%
4.76%
4.45%
3.37%
Budget Challenges
March 7, 2013
Annual Budget 2013/14
15
• Ontario Economy and Fiscal Uncertainty• Deficits projected up until 2017/18• Revised Tuition Fee Framework• No Indication of New Capital Funding
• Budget Measures Implemented: Annual Algonquin Impact
of Funding Reductions Provincial Budget Measure 2013/14 2014/15 International Student Recovery Fee $ 340,000 $ 923,000 Elimination of Small Northern and Rural Grant 900,000 1,800,000 ‘Policy Levers’ – Operating Grant Reductions 1,000,000 2,000,000 International Student Municipal Tax 86,000 86,000 Elimination of Ontario Special Bursary Program _______TBD* ______TBD* TOTAL IMPACT ON ALGONQUIN COLLEGE $ 2,326,000 $ 4,809,000 *Dependent on impact of Ontario Tuition Grant
Seeking Solutions
March 7, 2013
Annual Budget 2013/14
16
• Growth of Funded and Non-Funded Activities• New Programs• Mobile/Online/Hybrid/Applied• International Opportunities• Corporate and Contract Training• College Ancillary Services
• Technology and Automation of Processes• Core vs. Non-Core functions• Partnerships• Business Process Review• Responsibility Centre Management
Annual Budget 2013/14
17March 7, 2013
Budget Highlights
March 7, 2013
Annual Budget 2013/14
18
• BALANCED BUDGET: • Funded Activity - Aligned the College’s
operating expenditures and revenues within the provincial funding and tuition fee framework
• Non-Funded Activities generating surpluses to fund Strategic Investment Priorities
• Projected enrolment increase of 3.1%• Expansion of Mobile Learning Programs• New faculty and staff positions to
accommodate growth• $2.5M for Professional Development of
faculty and staff
Date
PowerPoint Presentation Title
19
RevenueAnnual Budget 2013/14
March 7, 2013
Annual Budget 2013/14
20
Grants $104,166
Tuition Fees $90,820
Contract Educational
Services $28,168
College Ancillary Service
Sales$40,285
Other $20,461
ExpendituresAnnual Budget 2013/14
March 7, 2013
Annual Budget 2013/14
21
Academic Salaries & Benefits$87,611
Support Salaries & Benefits $47,589
Administration Salaries & Benefits $26,344
Other Operat-ing
$103,618
Strategic Investment Priorities (SIP)Annual Budget 2013/14
March 7, 2013
Annual Budget 2013/14
22
Digital College $3,900
College Technologies
$2,650 College Space & Infra-
structure $2,650 New Program Ini-tiatives $1,000
Academic & Other
Equipment $1,800
Initiatives & Opportunities
$4,433
QUESTIONS?
Annual Budget 2013/14
March 7, 2013