annual budget 2013/14
DESCRIPTION
Annual budget 2013/14. Budget 2013/14 and Business Plan Town Hall March 7, 2013. Presentation Outline . Financial Health of the College Challenges Ahead Annual Budget 2013/14. Financial Health – Ratio Analysis. 1. Quick Ratio 2. Total Debt to Assets Ratio 3. Debt Servicing Ratio - PowerPoint PPT PresentationTRANSCRIPT
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 Ratio2. Total Debt to Assets Ratio3. Debt Servicing Ratio4. Net Assets to Expense Ratio 5. Net Income to Revenue Ratio6. 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 2.00Compare 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
Asse
ts R
atio
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
Debt
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 t
o Ex
pens
e Ra
tio
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 inGood 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
GRAN
TS/F
TE ($
)
OPE
RATI
NG
EXPE
NDI
TURE
S ($
000
'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 Initiatives
$1,000
Academic & Other
Equipment $1,800
Initiatives & Opportunities
$4,433
QUESTIONS?
Annual Budget 2013/14
March 7, 2013