2013 – 2014 Environmental Scan

Resource Planning 2013-2016

The budget process provides the mechanisms for informing, and being informed

Environmental Scan

The Academic Plan is the blue print for our future

VIU’s integrated plans that are now in place provide solid foundation and clear direction to allow us to move forward, in confidence on the objectives outlined in the Academic Plan.

Direction from our plans ………………….. Academic Plan:

Activities related to the Summative Assessment Process.

Identify strength in teaching, which preserves faculty-student engagement.

Provide a framework that supports academic scholarship, activity and achievements.

Improve student learning, engagement, retention and success.

Direction from the Regional Action Plan……

Cowichan: Increased role of Cowichan to deliver additional programs that

have an Aboriginal focus. Within 3 years provide increased opportunity for students to

take selected degree programs in Arts at Cowichan using a mix of standard course delivery and hybrid delivery.

Delivery of Science courses on site using the lab facilities. Expansion of dual credit delivery with SD #79, especially in

Trades. Development of food production courses and programming.

Direction from the Regional Action Plan…… (continued)

Parksville: Realign delivery of programming to reduce duplication with

Nanaimo campus and courses that are under prescribed. Focus on the development of Healthy Ageing programming

in conjunction with Oceanside Centre. Powell River continued: delivery of developmental programming; Aboriginal programming; and delivery of non-credit contract activity.

Direction from the Regional Action Plan…… (continued)

Paine Centre:

Exploration of potential to relocate Horticulture to

Cowichan and Milner with associated redevelopment of

Paine as a LEED certified Neighborhood development

(by others). Deep Bay: increased teaching and research at facility expansion of local First Nation and K-12 activity

Direction from the ……

Enrolment Management Plan (EMP): Alignment of resources to manage the implementation of the EMP to

provide a more solid basis for student projections and increase student retention.

Increased focus upon alumni which should increase our ability to raise external financial support.

Technology and Systems Infrastructure Plan: Development of a set of technology, digital media and information literacy

competencies for students, faculty and staff. Development of accountability models to allow students, faculty and staff

to showcase their skills, knowledge and literacies. Implementation of Integration Models and Strategies for effective

technology use in Teaching and Learning. Introduction of Governance Model and Framework to support ongoing

management and investment decisions.

VIU Enrolment Overview

Provincial Outlook • Provincial Budget 2012.

• Provincial outlook; first quarter in the face of declining revenues signal that they are“ taking additional steps to exercise financial restraint” as they remain “committed to delivering a balanced budget” .

• Transition back to PST 2013.

• Increased Accountability, implement new Accounting Standards (PSAB);

• Election May 2013

19

Provincial Budget 2012 ….

Cooperative Gains…….. Feb 2012 Throne Speech: Ministries

and employer groups will work together to find savings through “cooperative gains”

Schools that want to support staff

increases must find the funding: – Savings Plan identified within existing

budgets or – Within the collective agreements

There will be no Provincial funding.

Administration Service Delivery Transformation Project (ASDTP)

Budget 2012 includes reductions of $20

million and $30 million in 2013-2014 and 2014-2015 respectively for post-secondary.

The purpose of the ASDTP is to identify

savings in post-secondary non-academic administrative services.

ASDT project began July 2012 the ministry fall

back to meet budget 2012 targets may be prorated envelope changes across the system.

Potential Grant reductions of $ 550K (1%) and $850K (1.5%) 2013-2014 and 2014-2015 respectively

20

Provincial Budget 2012 …. Capital and Maintenance

Good News: 2012 Provincial budget fund of $260 million over next three years

Good and Not So good News: Shift from (Block and Project) to (Just Project)

ACA Block funding in place in 2008-2009 of $2.2 million reduced to $502 thousand 2011-2012 is now gone.

ACA grant was used by VIU for capital improvements to extend the life of components. VIU reported back to the ministry at the end of the year on how the money was spent.

2012-2013 New process Ministry approves specific projects and funding is project based.

Major Capital projects (over $250K) are still funded on a project basis

The Provincial Funding Landscape .. Provincial Budget Distribution 2011-2012 Approx. $41.9 billion, 2012-2013 Approx. 43.8 billion

Post Secondary Distribution (2012-2013) Approximately $5 Billion

*Targeted: Targeted skills seats e.g.. Health, Aboriginal etc

**ACA: Annual Capital Allowance

The PSE Landscape .. Funding & FTEs Post Secondary 2012-2013 Funding Allocation

Per Ministry of AVED Funding Letters – July 2011 22/2012

Post Secondary 2012-2013 AVED FTE Target

Per Ministry of AVED Funding Letters – July 2011

Colleges – Camosun, CNC, CotR, Douglas, Langara, NIC, Northern Lights, Northwest, Okanagan, Selkirk & VCC

Institutes – BCIT Research – SFU, UBC, UNBC & UVic

Teaching – Capilano, Kwantlen, TRU, UFV & VIU Other – Emily Carr, Royal Roads & NVIT

2011/12 FTES

Other 3,909

Teaching IntensiveUniversities

35,993

Research IntensiveUniversities

82,176

Institutes 11,801

Colleges 46,498

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2011/12 Grant

Other 38,120,338

Teaching IntensiveUniversities

275,117,236

Research IntensiveUniversities

1,019,397,615

Institutes 114,701,874

Colleges 387,218,830

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100% 2% 2%

15% 20%

56% 46%

6% 6%

21% 26%

Total 1,834,555,893 Total 180,377

22

The VIU Landscape .. Overall Budget

Note: Job Action Affected Timing for Revenue Recognition

23

2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/132013/14

Budgeted2014/15

Estimated

Job Action Adjusted 114.2 120.5 122.8 121 122.8 122.2 120.9

Total Revenue 90.3 101.4 111.0 111.1 114.2 120.5 117.6 126.0 122.8 122.2 120.9

85

90

95

100

105

110

115

120

125

130

Millions of

Dollars

Consolidated Revenue

Percentage Change in Year to Year Rates

04/05 to 05/06

05/06 to 06/07

06/07 to 07/08

07/08 to 08/09

08/09 to 09/10

09/10 to 10/11

10/11 to 11/12

11/12 to 12/13

12/13 to 13/14 Estimated

13/14 to 14/15 Estimated

12% 9% 0% 3% 6% -2% 3% -3% 0% -1%

VIU Landscape .. Two main sources of Revenue Sources Revenue

Provincial Funding (47%) diminishing (49% to 47%) as a % of total due to:

• Funding in Dollars flat 2007 to 2013

•Provincial Budget 2012 produce downward trend

Student Fees (35%) increasing (30% to 35%) as a % of total due to:

• Growth (both Domestic and International)

• Controlled fee changes

•Tuition Fee policy

•Market

• 12/13 added High Schools to consolidation

Government Grants & Contracts

- Prov

Tuition & Other Fees

Government Grants & Contracts

- Fed

Investment Income, Gifts,

Interest,

Instructional Contracts & Other

Sales of Goods and Services

Amortization of Deferred

Contributions

2008/09 49% 30% 1% 8% 8% 4%

2009/10 49% 33% 1% 6% 8% 3%

2010/11 48% 33% 1% 6% 9% 3%

2011/12 Budgeted 48% 34% 1% 5% 8% 3%

2012/13 Budgeted 47% 35% 1% 6% 8% 3%

0%

10%

20%

30%

40%

50%

60%

Comparison of Sources of Revenue2008/09 to 2012/13

25

VIU Landscape .. Two main sources of Revenue Sources Revenue

Notes: Job action affected results in 2010-2011 , 2011-2012 as revenue sources were deferred; 2012-13 high School

tuition was included in consolidation which was the major contributor to the 1% increase in Tuition Rev.

2012-13 Consolidated Resource Plan page 4, located at http://www.viu.ca/budget/documents/budgetplan12-13.pdf

2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/122012/13Budget

2013/14Forecast

2014/15

Industry Training Authority 4.1 4.1 4.4 3.6 5.5 5.0 5.0 5.0 5.0 5.0 5.0

Annual Capital Allowance 2.0 2.6 1.8 2.5 1.4 1.9 0.5 0.5 0.5 - -

Ministry of Advanced Education 37.8 41.9 49.8 48.7 49.5 51.0 50.8 50.8 50.8 50.2 49.4

37.8 41.9

49.8 48.7 49.5 51.0 50.8 50.8 50.8 50.2 49.4

2.0

2.6

1.8 2.5 1.4 1.9 0.5 0.5 0.5 - -

4.1

4.1

4.4 3.6 5.5 5.0

5.0 5.0 5.0 5.0 5.0

0

10

20

30

40

50

60

70

Dollars in Millions

Provincial Revenue

Provincial Funding…. (PSE has been shielded from base reductions during economic decline until 2013-2014)

Note: Excludes the Impact of significant Revenue Deferrals.

26

VIU Short Term Investment Income For the Years Ending 2005 to 2013 (excludes Endowment Returns)

2010-2011: introduced short term guaranteed bond investment strategy to improve returns in the poor market since 2008

Note: Endowment Returns have specified commitments (for example Scholarships )

2005 2006 2007 2008 2009 2010 2011 2012 2013

Actual 593,000 759,000 867,000 656,000 584,000 325,000 618,000 575,000 625,000

$-

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

$400,000

$450,000

$500,000

$550,000

$600,000

$650,000

$700,000

$750,000

$800,000

$850,000

$900,000

$950,000

Projected

Consolidated Endowment Funds At Fair Market Value per Audited Financial Statements

for the Years ending 2001 to 2012 (Dollars in Millions)

*2010 forward includes amounts Internally Restricted for Endowments in the Audited Financial Statements

4 4 4

5 5

6 6

8

9

12

14 14

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Do

llars

in M

illio

ns

Significant Market Declines

The VIU Landscape ……….. Expenditures Scholarships &

Bursaries 1%

Cost of Goods Sold 4%

Amortization of Capital Assets

7%

Supplies & Services 17% + 0r – 1%

Salaries & Benefits 70% + or – 2%

Interest on Long term debt 1%

DISTRIBUTION of Expenditures

The VIU Landscape .. Distribution of Total Salary Benefits by Employee Group

2006 2007 2008 2009 2010

Excluded 13.68% 14.35% 14.49% 15.59% 15.65%

BCGEU 17.87% 16.80% 17.30% 17.46% 17.16%

VIUFA 51.41% 50.71% 52.51% 51.00% 51.63%

CUPE 17.04% 18.14% 15.70% 15.95% 15.56%

Data Source: PSEA Human Resource Data Base

Percent Distribution of Total Compensation

By Employee Group

For Each Fiscal Year 2006 to 2010

The VIU Landscape .. Administration Years Ending 2005 to 2011

CAUBO Comparative Data (Canadian Association of Business Officers)

VIU Investment in Administration function for 2011: 11.5%

(growth of 10.7% to 11.5% from prior year is a result of job action)

Canada Avg. 16.1% BC Avg. 15.3%

Administration and General (Percentage) Total Operating Dollars

2005 2006 2007 2008 2009 2010 2011 2005 2006 2007 2008 2009 2010 2011

Simon Fraser University 11.2 9.6 9.7 8.7 7.3 7.1 7.3 292,468 328,923 341,668 359,353 377,751 376,112 385,625

University of British Columbia 9.2 15.9 10.2 8.4 8.7 9.6 13.4 576,351 694,356 677,245 726,270 842,864 931,947 998,163

University of Northern British Columbia 14.6 15.9 16.4 14.3 14.3 13.7 12.9 51,862 58,311 59,692 61,590 64,988 67,910 69,774

University of Victoria 9.8 9.3 10.6 10.7 11.1 11.2 11.2 221,913 237,909 245,214 253,391 276,200 288,828 295,283

Royal Roads University 20.4 29.2 29.2 31.5 31.2 32.2 27.6 31,686 36,502 37,551 40,983 44,068 44,085 43,357

Thompson Rivers University 15.2 16.1 18.6 22 21.4 12.9 98,220 96,986 99,411 107,411 114,036 122,302

Kwantlen Polytechnic University 13.4 13.6 16.2 102,097 107,474 115,452

University of the Fraser Valley 9.9 11.5 12.6 12.2 12.2 11.8 11.1 60,634 67,141 67,250 75,573 80,652 85,476 86,982

Vancouver Island University 10.6 10.4 16.2 13.1 11.8 10.7 11.5 62,070 67,303 76,031 82,479 88,887 100,350 94,681

British Columbia Average 13.4 15.1 16.5 16.4 16.4 16.7 15.3 127,795 164,717 166,118 176,139 186,610 198,636 207,404

Canada Average 14.8 15.3 15.7 16.2 16.7 16.3 16.1 120,495 130,496 139,231 147,965 153,311 160,129 166,692

The VIU Landscape .. Total Instruction and Student Services Years Ending 2005 to 2011

CAUBO Comparative Data (Canadian Association of Business Officers)

VIU drop in Instruction to 62.0% from 63% from prior year is a result of job action)

Canada Avg. 54.1% BC Avg. 55.1%

Special Purpose Universities are generally higher

All Instruction and Non-Sponsored Research Student Services

2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11

Simon Fraser University 60.9 64.0 61.8 62.1 62.4 59.8 61.5 11.8 9.6 11.0 11.8 11.8 12.3 12.1

University of British Columbia 61.8 56.9 61.5 65.3 60.9 61.2 59.1 6.9 6.3 7.5 7.4 7.0 7.5 7.2

University of Northern British Columbia 51.1 52.8 53.0 56.8 55.2 55.1 54.6 7.2 7.2 7.5 7.1 8.0 8.6 8.9

University of Victoria 60.8 62.9 60.5 60.0 59.2 58.3 58.9 9.9 9.2 9.5 9.6 10.4 10.4 10.1

Royal Roads University 51.6 41.1 40.2 36.9 38.3 36.4 39.0 10.0 9.2 7.7 7.7 7.1 1.9 7.3

Thompson Rivers University 0.0 64.6 65.7 64.0 58.0 58.9 59.7 0.0 5.8 4.3 3.5 6.1 6.5 12.1

Kwantlen Polytechnic University 0.0 0.0 0.0 0.0 63.2 63.0 62.8 0.0 0.0 0.0 0.0 8.5 9.3 7.6

University of the Fraser Valley 69.9 70.1 67.7 65.8 63.3 64.1 64.8 5.2 5.4 5.3 6.0 6.7 7.0 7.4

Vancouver Island University 63.8 61.6 58.8 63.8 65.7 63.0 62.0 12.2 13.5 10.7 7.2 7.6 8.3 8.6

British Columbia Average 57.5 56.5 56.1 56.3 55.8 55.0 55.1 9.5 9.4 9.2 8.8 9.3 9.4 10.6

Canada Average 56.5 55.1 54.9 54.7 53.6 53.8 54.1 6.8 6.8 7.0 7.2 8.3 8.5 8.4

The VIU Landscape .. Staff Demographics

VIU employees are ageing, but reflective of sector and the nature of the late entry into the workforce by faculty and instructors.

Commitment to bring VIU to best practices, including proactive (and preventative) Health and Safety initiatives

Facilities and staff are older plus university is built on a hill.

Upward pressure on benefits:

Jan 2012: 3 to 7% Increases in MSP, CPP, Employment Insurance (2013- potential increases)

WCB first rate increase in 9 years (expected to be 21%)

VIU Regular & Temporary Employees

By Age Group For 2006 to 2011

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

2006 2007 2008 2009 2010 2011

Percent of Employees in each Age Group

>30

30-39

40-49

50-59

60+

VIU employees are aging, but reflective of sector and the nature of the late entry into the workforce by faculty and instructors.

VIU Regular & Temporary Employees By Age Group For 2006 to 2011

(the numbers)

Under 30 Age 30 - 39 Age 40 - 49 Age 50 - 59 Age 60 + Total

# % # % # % # % # % #

2006 25 2.30 160 14.72 368 33.85 426 39.19 108 9.94 1087

2007 30 2.72 164 14.86 365 33.06 434 39.31 111 10.05 1104

2008 36 3.25 144 13.02 350 31.65 445 40.24 131 11.84 1106

2009 22 1.91 164 14.27 351 30.55 458 39.86 154 13.40 1149

2010 23 1.99 170 14.73 321 27.82 472 40.90 168 14.56 1154

2011 20 1.75 156 13.65 325 28.43 456 39.90 186 16.27 1143

Percent of employees in their 40s declining and percent of employees in their 60s growing

Years of Service by Jurisdiction as at August 2012

*Based on Long Service Award date. Date calculated for Permanent (Regular) employees using first temporary start date in any

jurisdiction excluding periods prior to a 24 month break in service.

**Does not include years of service of 200 temporary employees.

0%

5%

10%

15%

20%

25%

30%

35%

0-5 6-10 11-15 16-20 21-25 26-30 31-35 36-40 40+

Percentage within the Respective Jurisdiction

ADMIN

BCGEU

CUPE

VIUFA

Number of Permanent (Regular) Faculty and Staff

by Years of Service at August 2012

20% less than 6 years

52% up to 10 years

Less than 20% greater than 20 years

0-5 6-10 11-15 16-20 21-25 26-30 31-35 36-40 40+

# % # % # % # % # % # % # % # % # % Total

ADMIN 40 33.3 36 30.0 10 8.3 15 12.5 9 7.5 6 5.0 3 2.5 1 0.8 0 0.0 120

BCGEU 10 8.5 34 29.1 34 29.1 21 17.9 10 8.5 7 6.0 0 0.0 1 0.9 0 0.0 117

CUPE 62 25.5 75 30.9 38 15.6 25 10.3 29 11.9 11 4.5 1 0.4 1 0.4 1 0.4 243

VIUFA 66 15.9 144 34.7 76 18.3 45 10.8 61 14.7 11 2.7 9 2.2 3 0.7 0 0.0 415

TOTAL 178 19.9 289 32.3 158 17.7 106 11.8 109 12.2 35 3.9 13 1.5 6 0.7 1 0.1 895

Staying the Course ……….

The combined effect of the aforementioned external factors and inflation is between $2.5 to $3.5 million.

Continued progress in achieving VIU’s goals can be achieved by our commitment to the goals in our integrated plans. Our Plans enables the university to thoughtfully purpose (or repurpose) its limited resources.

Meeting inflation and the impacts of external forces alone will not provide the resources to enable VIU to advance our priorities.

Growth, new revenue and efficiencies that allow for realign our resources will all be necessary to meet these challenges.

How do you stay the course ……….

Enrolment

Retention

Provincial trends

National or Global Trends

Employee Demographics

Catchment Area Demographics

Questions to think about ?

Student Impact? Faculty /Campus or Department Impacts? Faculty or Staff Impacts?