Durham College
Business Plan
2013-2014
Index
Introduction................................................................................................................ 4
Responsible, strategic growth................................................................................. 5
Dynamic partnerships............................................................................................... 6
Student-focused teaching and learning................................................................ 7
Core institutional priorities....................................................................................... 8
Challenges to the business plan objectives.......................................................... 9
2013-2014 Budget..................................................................................................... 10
Introduction
Durham College has firmly established itself as a
community builder over its 45-year history. Given its
vast range of academic programs and training – all
determined in close partnership with employers –
Durham College has a direct impact on the social and
economic well-being of virtually every facet of its
rapidly growing communities.
That reputation and track record of post-secondary excellence will continue to grow
in the coming year as the college achieves a number of significant milestones,
including the exceeding (two years ahead of schedule) of its 10,000 full-time postsecondary enrolment goal, the opening of its unique Centre for Food, the launch of a
new strategic plan, and even more opportunities for students from every walk of life
to pursue a quality post-secondary education that results in rewarding careers.
The 2013-2014 Business Plan has been developed to build upon the significant
momentum of the past few years, and also to begin the process of implementing
the objectives established within the proposed Strategic Mandate Agreement
(SMA) that was submitted to the provincial government in Fall 2012. The SMA
was developed with feedback and input from more than 200 internal and external
partners, including students, and has served as the basis for the college’s new
Strategic Plan, which is being launched in Spring 2013. An additional 100 people
were consulted in the drafting of the Strategic Plan, which serves as the highreaching guide to the annual Business Plan.
The college has set a series of objectives and activities for the year ahead that
when fully implemented will ensure success within the four key goal areas of the
Business Plan:
• Responsible, strategic growth;
• Dynamic partnerships;
• Student-focused teaching and learning; and
• Core institutional priorities.
Taken together, realization of these four goals will allow growth in the
college’s physical infrastructure and resources, its partnerships, the way it
teaches, its human resources, and ultimately its reputation.
The Durham College 2013-2014 Business Plan was approved by the Durham College
Board of Governors at its April 10, 2013 meeting.
4 durhamcollege.ca/businessplan
In 2013-2014 Durham College will:
• Develop a new Strategic Enrolment Management plan for 2013-2016 that will
allow the college to grow strategically beyond 10,000 students, while still
considering its current space constraints.
Business Plan goal:
Responsible,
strategic growth
Durham College is Ontario’s fastest growing college and
this rate of growth is projected to continue well into the
future. It has realized this standing by offering highquality programs, extensive supports and expertise in
and outside the classroom, and a well-rounded student
life experience. This growth has allowed the college to
introduce new programs in fast-growing areas of the
economy, extensively renovate the campus to create
new learning and social areas, and add dozens of new
employees to better serve students. The year ahead
will see the college grow in students, faculty, staff,
resources, and partnerships, allowing it to continue to
further its reputation as a college of choice.
• Complete construction on the Centre for Food and welcome the first class of
students in September 2013.
• Complete a new campus master plan with UOIT that will allow both postsecondary institutions to grow strategically into the future.
• Increase the college’s overall utilization of learning space by expanding the
learning day from 8 a.m. to 6 p.m. to 8 a.m. to 9 p.m., where required.
• Streamline the process for applying for credit transfer by implementing
recommendations of the Credit Transfer Working Group.
• Further access to student services by launching Q-nomy online appointment and
event booking system.
• Upgrade campus connectivity through investment in wireless technology at the
Whitby campus and Simcoe building.
• Determine stability and reliability of campus IT network through a network
vulnerability assessment.
• Respond to the growing demand for skilled employees by securing Technical
Standards and Safety Authority (TSSA) approval and developing three new
apprenticeship programs – Developmental Service Worker, Institutional Cook
and Gas Fitter.
• Implement Whitby campus three-year student services plan to support new
programming model and increased student population.
• Implement a mental health strategy, including new community partnerships, to
support student success and safety.
• Invest in the following IT software that will allow for additional resources that
better support, understand and meet the needs of students:
Banner Financial Aid
Banner Enterprise Data Warehouse
Banner Operational Data Store
• Further communication channels with students by increasing the number of
digital signage monitors in the Gordon Willey building by four and at the Whitby
campus by three.
Alignment to the Durham College 2013-2016 Strategic Plan:
Our Students – to provide students with the best possible learning experiences
by offering new opportunities for experiential learning, fostering greater mobility
within the post-secondary system and ensuring all necessary supports are in place.
Our Business – to be prudent stewards of all resources so that we are financially
responsible, demonstrate good governance and are system leaders in making
decisions that support outstanding teaching and learning.
Our Community – to ensure the college, in all its actions and decisions, is
contributing to the economic and social prosperity of our communities.
durhamcollege.ca/businessplan 5
In 2013-2014 Durham College will:
• Develop a plan for the diversification of training and growth of Corporate
Training Services.
Business Plan goal:
Dynamic
partnerships
Durham College is driven and energized by its
partnerships. These partnerships allow the college to
offer high-quality education, enhance the economic
and social well-being of its communities and provide
financial support to students. The year ahead will
see renewed emphasis on capitalizing on the unique
relationship between the college and UOIT, spurring
new ideas and growth in the community and helping
small- and medium-sized enterprises innovate and
flourish through applied research.
• Participate in the Core21 Incubation Centre to investigate new ways to benefit
the college’s entrepreneurial students.
• Working with UOIT, begin establishing a laddering model that will foster student
mobility from apprenticeship to PhD.
• Develop with UOIT and submit to government plans to fund construction of
a joint health services centre proposal, Campus Library expansion and a new
administrative office complex.
• Pursue new funding opportunities with the Applied Research and Development
(ARD) grant available through Natural Sciences and Engineering Research
Council of Canada (NSERC) and the Technical Problem Solving (TPS) grant
available through the Ontario Centres of Excellence (OCE) to do industry-led
research partnerships with local businesses.
• Pursue new fields of research in the agriculture/horticulture sector and initiate
at least two research projects at the Centre for Food with anticipated FedDev
funding.
• Implement the $45,800 research project funded by the Higher Education Quality
Council of Ontario (HEQCO) to pilot a student success ePortfolio across selected
health programs. The project is designed to assess the development of essential
employability skills by students.
• Implement the $265,000 ONCAT-funded joint research project involving Durham
College, George Brown College, UOIT, and Trent and Nipissing universities.
The project is designed to assess the student experience and challenges in
transitioning from college to university academic pathways.
• Implement the $123,000 ONCAT-funded research project designed to assess
the Effectiveness of Ontario college preparatory programs offered at Durham
College.
• Begin to implement the Durham Learning and Business Innovation Park (dLAB)
plan by establishing a not-for-profit corporation with dLAB partners that will
allow for the public launch of the project to advance the social and economic
elements of the vision.
• Support the importance of two-way student mobility by increasing by
five per cent the number of UOIT graduates enrolling in Durham College
programs from 192 in Fall 2011 and Durham College students enrolling in
UOIT programs from 215.
• Develop a joint Durham College-UOIT marketing plan for academic pathways
between the two institutions.
Alignment to the Durham College 2013-2016 Strategic Plan:
Our Students – to provide students with the best possible learning experiences
by offering new opportunities for experiential learning, fostering greater mobility
within the post-secondary system and ensuring all necessary supports are in place.
Our Business – to be prudent stewards of all resources so that we are financially
responsible, demonstrate good governance and are system leaders in making
decisions that support outstanding teaching and learning.
Our Community – to ensure the college, in all its actions and decisions, is
contributing to the economic and social prosperity of our communities.
6 durhamcollege.ca/businessplan
In 2013-2014 Durham College will:
• Realize a cumulative improvement of three per cent over 2013 in the five
benchmark areas of the provincial government’s key performance indicator
surveys.
Business Plan goal:
• Further leverage the tools available on DC Connect to assist faculty in the
classroom by offering four training sessions through the CAFE.
Student-focused
teaching and
learning
• Pursue opportunities for students to develop e-portfolios through the
investigation of an electronic tool.
The proliferation of information technology is
transforming the delivery of post-secondary education.
Whether it’s through digital textbooks, open courses
available on the Internet, or hybrid and online courses,
teachers and students have access to information in
a way that is new in this century. In the year ahead,
Durham College will continue its commitment to
experiential learning opportunities and the use of
technology to support and enhance the learning
experience for students.
• Complete implementation of the Ontario Adult Literacy Curriculum Framework
for Academic Upgrading.
• Better utilize available space across the institution by completing the move of
nine programs from Oshawa to the Whitby campus.
• Engage 20 to 25 faculty in training and delivery of courses offered in a hybrid
format that combines hands-on lab time with online learning and real-world
experience in the field.
• Begin the process of establishing uniform Communications course curriculum
across all programs by mapping the current offerings and ensuring the uniform
curriculum will meet the needs of the student population.
• Begin a process that will see the review and updating of 15 Durham College
OntarioLearn courses to ensure they are relevant and meeting the needs of
learners.
• Establish principles of sharing with respect to educational learning objects,
internally, and explore the establishment of an ‘exclusive’ sharing partnership
with three other colleges.
• Realize a successful Program Quality Assessment Process Audit (PQAPA) site
visit by successfully meeting all six criteria.
• Enter into a virtual reference library service with 10 other colleges that will
expand the number of resources available to students
Alignment to the Durham College 2013-2016 Strategic Plan:
Our Students – to provide students with the best possible learning experiences
by offering new opportunities for experiential learning, fostering greater mobility
within the post-secondary system and ensuring all necessary supports are in place.
Our People – to capitalize on the vast experiences and expertise of our people and
help them make the best possible contribution towards the student experience.
Our Business – to be prudent stewards of all resources so that we are financially
responsible, demonstrate good governance and are system leaders in making
decisions that support outstanding teaching and learning.
Our Community – to ensure the college, in all its actions and decisions, is
contributing to the economic and social prosperity of our communities.
durhamcollege.ca/businessplan 7
In 2013-2014 Durham College will:
• Expand the college’s part-time hiring project to all academic schools so as to
realize greater support for associate deans, automation, and eliminate data
duplication.
Business Plan goal:
Core institutional
priorities
Durham College has steadily grown its reputation as
a post-secondary institution of choice over the past
number of years. Each day, all employees live the
college’s mission that the student experience comes
first. Along with growing programs, developing new
partnerships and furthering its approach to teaching
and learning, Durham College will take a number of
other actions in the year ahead that will ensure it is
living its mission. These actions will further support the
college’s students, staff, faculty, approach to business
and its impact in the community.
• Launch an Accessibility for Ontarians with Disabilities Act (AODA) awareness
campaign in Fall 2013 so that everyone in the campus community understands
the importance of this legislation and being an inclusive college.
• Complete three lockdown exercises that will help prepare the campus
communities for safe and effective response to an emergency or crisis situation.
• Prepare for and complete an employee engagement survey in Winter 2014 that
will provide greater understanding of the needs of the college family.
• Produce and distribute a Health and Safety handbook/manual that will set out
the specific expectations, responsibilities and requirements for all employees.
• Develop a student mobile application that includes campus way-finding
capabilities.
• Realize content integration between the employee intranet (ICE), MyCampus,
digital signage, the external corporate website and social media.
• Fully launch the I Heart DC committee and host one event per month, with a
goal of further maximizing the student experience and creating an essence of
appreciation and celebration on campus.
• Create a stewardship program that will increase the engagement and
involvement of college donors and alumni.
• Complete the current $5 million fundraising campaign in support of the Centre
for Food.
• Collaborate with Centennial College to raise $200,000 in support for the
Pickering Learning Site.
• Demonstrate fiscal responsibility by achieving a balanced budget.
• Demonstrate college system leadership through the establishment of a new
tuition set-aside fund that will be used to support the financial needs of
international students.
• Implement the Student Affairs office restructuring and expansion plan.
Alignment to the Durham College 2013-2016 Strategic Plan:
Our Students – to provide students with the best possible learning experiences
by offering new opportunities for experiential learning, fostering greater mobility
within the post-secondary system and ensuring all necessary supports are in place.
Our People – to capitalize on the vast experiences and expertise of our people and
help them make the best possible contribution towards the student experience.
Our Business – to be prudent stewards of all resources so that we are financially
responsible, demonstrate good governance and are system leaders in making
decisions that support outstanding teaching and learning.
Our Community – to ensure the college, in all its actions and decisions, is
contributing to the economic and social prosperity of our communities.
8 durhamcollege.ca/businessplan
Challenges to
the realization
of Business Plan
objectives
The Durham College 2013-2014 Business Plan
establishes four high-level goals and a series of
measurable objectives designed to realize these
goals. The success of the plan will be realized by the
engagement of all faculty and staff, regular reviews
of deliverables, reports to the Board of Governors and
focused college leadership.
As required by the provincial Minister’s Binding Policy Directive, colleges must
identify potential challenges to realizing success with the business plan. There are
a few potential challenges outside the control of Durham College that may impact
the achievement of one or more deliverables.
These include:
• Competition – with Durham Region the fastest growing area of the GTA and
with Durham College’s enrolment growth at higher levels than any other in the
system, other colleges may target the region for their recruitment.
• Economic climate – continued slow economic growth and competing demands
for fundraising dollars in the community could have an impact on achieving
fundraising targets.
• Enrolment – failure to realize enrolment targets, both domestically and
internationally, would impact on the college’s budget and its long-term
expansion plans.
• Funding levels – less than budgeted or anticipated funding would result in the
college not being able to fully deliver its agenda.
• Government priorities – A change in provincial government leadership could
result in changes to funding or policy priorities and impact on the college’s
ability to balance its budget.
• Outside contractors – unexpected delays or failure to meet agreed-upon
timelines could result in projects being delayed and impact on related plans.
• Provincial approvals for new programs – failure to receive ministry approval
and/or related funding would impact on the introduction of new programs.
durhamcollege.ca/businessplan 9
2013-2014
Budget
10 durhamcollege.ca/businessplan
Total impact of these reductions on the 2013-2014 budget is $0.9 million.
Tuition fees: At the time of budget preparation, the institution had not received
communication from MTCU with respect to the 2013-2014 tuition policy framework.
The budget has been developed based on the assumption that a three per cent
tuition fee increase is likely.
Overview:
A balanced budget
for 2013-2014
The 2013-2014 budget targets increases in domestic and
international enrolment, with total full-time domestic,
second career, international, and collaborative nursing
student enrolment expected to increase by 564 from
9,362 in Fall 2012 to 9,926 in Fall 2013, an increase
of six per cent. The budget includes funding for the
employment of 15 new faculty and 20 additional staff
to address this increase in enrolment.
Introduction of new programs: The introduction of 11 new programs in fiscal
2013-2014 is forecasted to realize a net negative contribution of $0.1 million (eight
per cent), as opposed to a positive 30 per cent overall contribution expected from
all recurring programs. Only full tuition and student-related fee revenues will be
realized in 2013-2014 as a portion of the general purpose operating grant funding
will not be received until the subsequent year.
Additional lease expense: The lease for the former day care space at Campus
Corners is a Durham College commitment. It was occupied and paid for by UOIT in
2012-2013, however the university will be vacating the space for 2013-2014 and the
college will assume the liability for the lease commitments, which are $0.3 million
annually.
Pickering Learning Site: The annualized expense budgeted for the Pickering
Learning Site is $0.375 million.
The budget gap that was created by these challenges was closed with collaborative
efforts from the academic schools and service departments through a thorough
process of examination of all revenues and expenses and increased revenues from
domestic and international enrolment growth.
The budget includes funding that supports the college’s business plan, meets
the college’s requirements of maintaining and improving the quality of academic
programs, and supporting curriculum renewal and new program development.
Balancing 2013-2014 has been particularly challenging for the college due to the
following factors:
Decrease in operating grant: Government funding per weighted funding unit
had remained static at $4,358 since 2009-2010 and has decreased to $4,317 for
2013-2014, a reduction in operating grant of $0.432 million for 2013-2014. Further,
assuming an increase of three per cent in line with the increase in salaries and
benefits each year, the gap created by the operating grants since 2009-2010
reaches to $5.2 million in 2013-2014. Colleges are asked by the Ministry of Training,
Colleges and Universities (MTCU) to offset this reduction through efficiency
improvement.
Introduction of new international student recovery: Effective 2013-2014,
MTCU has implemented an international student recovery fee of $750 for every
new international student. This fee will be recovered through a reduction in the
operating grant. Also, a municipal tax of $75 for payment in lieu of taxes will be
paid by institutions for each international student. Due to the very competitive
international student market, Durham College has not increased international
student fees to offset this additional expense of $0.2 million.
Small, Northern, Rural (SNR) grant: The SNR grant of $0.543 million is being
eliminated with reductions of 50 per cent in 2013-2014 and the remaining 50 per
cent in 2014-2015.
durhamcollege.ca/businessplan 11
Enrolment
Durham College’s post-secondary, full-time domestic enrolment is targeted to reach
8,896 students in Fall 2014, an increase of 518, or 6.2 per cent from the previous
year. Eleven new programs will be introduced in 2013-2014:
• Architectural Technician;
• Architectural Technology;
The following table shows the breakdown of the estimated number of 2013-2014
post-secondary and apprenticeship enrolment for the fall semester in comparison to
2011-2012 and 2012-2013.
Change
Actual ActualBudget over
Enrolment
2011-20122012-20132013-20142012-2013
GPOG funded
• Broadcasting for Contemporary Media;
• Contemporary Media Design;
161
International students
151301350
16.3%
Collaborative Nursing Program
• Culinary Management;
7,4888,3788,8966.2%
Second Career program
Total
532
153
530
150
-2.0%
530
0.0%
8,3329,3629,9266.0%
• Electrical Techniques;
• Information Systems Security – Computers and Networking;
Apprenticeship
1,3751,3201,303-1.2%
• Mechanical Techniques – Plumbing;
In addition, 722 Academic Upgrading, 19,000 Continuing Education registrants, and
1,800 secondary school students through the School College Work initiative are
expected for 2013-2014.
• Occupational Therapist Assistant/Physiotherapist Assistant;
• Project Management; and
• Special Events Planning.
These new programs are expected to contribute 257 students to the Fall 2013
enrolment and 70 students to the Winter 2014 enrolment. In addition, the Web
Applications for Mobile Computing and Horticulture – Food and Farming programs,
which were approved for 2012-2013 but did not obtain sufficient enrolments, will be
reintroduced in Fall 2013 if there is sufficient enrolment.
The following table presents fall semester post-secondary domestic full-time
enrolment by academic schools:
School
ActualBudget
2012-13 2013-2014Change
1,516
1,688
11.3%
Health and Community Services
1,496
1,582
5.7%
699
721
3.1%
Justice and Emergency Services
1,547
1,569
1.4%
Media, Art and Design
1,432
1,522
6.3%
Science and Engineering Technology
949
1,038
9.4%
Skilled Trades, Apprenticeship and Renewable Energy
739
776
5.0%
Total
8,878
8,8966.2%
The Second Career program is forecasting an enrolment of 150 students, compared
to 153 students in the previous year. This represents a decrease of three students
over fall 2012 or -2.0 per cent.
The international education strategy, which is based on the recruitment of
students through a network of agents in targeted South and East Asian countries,
was implemented in fiscal 2009-2010. As a result of this initiative, international
enrolment in Fall 2013 is targeted to reach to 350 students, as compared to 301
students a year earlier, an increase of 49 students or 16.3 per cent.
Enrolment in the Durham College-UOIT Collaborative Bachelor of Science in Nursing
program is expected to be 530 full-time equivalents in Fall 2013.
Post-secondary, full-time enrolment including Second Career, international and
collaborative nursing students in Fall 2013 is targeted to be 9,926, which is 564 or
six per cent higher than fall 2012.
A total of 1,303 apprenticeship students are expected this year, which is 17
students or 1.2 per cent lower than 2012-2013.
12 durhamcollege.ca/businessplan
Operating grantsFunding for base and growth funding units according
to the current funding formula, with the decrease of
$41 per weighted funding unit.
Tuition fees3% overall increase for all programs. 2013-2014
tuition fee policy not announced by MTCU at the
time of this report.
Salaries and benefits – full-time facultyAdjustment for step increases as per the current
collective agreement.
Business, IT and Management
Interdisciplinry Studies and Enrolment Services
Operating budget assumptions
Salaries and benefits – contract faculty$3,000 per 42-hour course. No change from
2012-2013.
Salaries and benefits – support staff1.75% economic adjustment as per the current
collective agreement, plus step increases.
Salaries and benefits – administration Increase for progress in pay-band based on
performance.
Annual cost of interest4.0%
In-year college revenues and expenses for 2012-2013 (forecast) and 2013-2014 (budget) are presented below.
Schedule of revenues and expenses
Variance
ActualForecast 1
Budget
budget to
$000s2011-20122012-20132013-2014forecast 2
Operating grants
45,883 46,857 49,102 2,246
Tuition fee revenue - domestic
27,408 31,284 34,367 3,083
Apprenticeship training revenue
3,071 3,048 3,100 52
International education revenue
2,068 3,966 4,076 109
Corporate Training revenue
7,479 7,386 7,480 94
Other academic revenue
9,499 9,211 8,653 (558)
Total academic revenues
95,408 101,752 106,777 5,026
Academic salaries and benefits
52,378 56,350 58,863 (2,513)
Academic operating expenses
9,785 10,671 11,089 (418)
Total academic expenses
62,162 67,021 69,952 (2,930)
Academic contribution
33,246 34,730 36,826 2,094
Academic contribution margin34.8%34.1%34.5% n/a
Net funds allocated for services
(27,108)
(29,112)
(32,571)
Ancillary operations Other corporate revenues (expenses)
7,820 7,990 8,442 452
(56)
(1,661)
85 1,746
Net amortization expense
(7,754)
(8,422)
(8,552)
(130)
Interest expense
(4,168)
(4,199)
(4,232)
(33)
Derivatives gain (expense)
(1,698)
Central revenues (expenses)
(5,856)
(6,291)
(4,256)
2,037
In-year surplus (deficit)
282 (673)
0
673
1
2
- - (3,459)
-
Based on year-to-date activity and projections at February 28, 2013
Figures in brackets represent unfavourable variances
durhamcollege.ca/businessplan 13
Variances analysis between 2012-2013 forecast and
2013-2014 budget
Operating grants: $2,246K (4.8-per cent) increase, due to post-secondary, full-time
enrolment growth in 2010-2011 and 2011-2012.
Tuition fees: $3,083K (9.9-per cent) increase in full-time domestic tuition fee
revenues, due to the combined effect of the tuition fee increase of three per cent
and enrolment increase of 6.2%, partially offset by the relatively flat part-time
student tuition fees.
Apprenticeship Revenue: $52K (1.7-per cent) small increase is estimated in
apprenticeship grant revenue, due to an expected increase in per diem rates,
which have remained at a constant $57.35 since 2008-2009. It is normal to expect
an increase in 2013-14 given the latest budget announcement from the federal
government regarding skills training. Further, there is a projected increase in
student demand in the culinary apprenticeship programs.
International education revenue: $109K (2.8-per cent) increase in international
education revenue, due to additional students offset by the new international
student recovery fees, establishment of a tuition set-aside reserve for scholarships
and bursaries, and an increase in agent commissions.
Corporate training revenue: $94K (1.3-per cent) increase in corporate training
revenue, primarily due to the attraction of new business.
Other academic revenue: $558K (-6.1-per cent) decrease, due to the
reorganization of the Employment Services division in Uxbridge and Port Perry.
Academic salaries and benefits: $2,513K (4.5-per cent) increase in academic
salaries and benefits, due to collective bargaining for faculty and support staff and
additional faculty hires. With the increase in enrolment, 15 new faculty will be
hired.
Academic operating expenses: $418K (3.9-per cent) increase in academic
operating expenses, due to an increase in new program offerings.
Academic contribution margin: As a result of the changes explained above, the
academic contribution margin improves from $34,730K in 2012-2013 to $36,826K
in 2013-2014. This represents an increase in the margin from 34.1 per cent in 20122013 to 34.5 per cent in 2013-2014.
Net funds allocated for services: $3,459K (11.9-per cent) increase. Of 20
new staff positions approved in this budget, 13 have been allocated to support
service growth on campus. Cost increases are also due to the inflationary salary
adjustments for support staff and administrative employees..
A listing of net funds for services by service area is provided below.
Net funds allocated for services:
ActualForecast BudgetVariance
$000s2011-20122012-20132013-2014
budget to forecast
Library and other Academic support
(3,081)
(3,895)
(4,683)
(788)
Student Affairs
(3,352)
(3,334)
(3,941)
(607)
Office of the Registrar
(2,299)
(2,545)
(2,795)
(249)
Finance
(2,496)
(2,474)
(2,899)
(425)
Communications, Marketing and External Relations
(2,824)
(2,783)
(2,964)
(182)
IT Services
(3,017)
(3,394)
(4,121)
(727)
Facilities
(6,473)
(6,817)
(7,474)
(656)
Human Resources
(2,144)
(2,315)
(1,918)
398
Campus Safety
(659)
(741)
(949)
(208)
President’s Office and BOG
(762)
(813)
(827)
(14)
Total
(27,108)
(29,112)
(32,571)
(3,459)
14 durhamcollege.ca/businessplan
Ancillary operations: $452K (5.7-per cent) increase, primarily due to the
improvement in the parking operations.
Other corporate revenues and expenses: $1,746K (-105.1 per cent) decrease,
primarily due to the following:
• Introduction of revenues for shared services overhead ($700K favourable);
• Increase in tuition-set aside overhead allocation ($215K favourable);
• Elimination of operating expenses associated with 199 Wentworth ($293K
favourable);
• Reduction in leadership contingency and strategic initiatives ($350K favourable);
• Property tax recovery from former capital projects ($500K favourable); and
• Expense for the former day care space ($308K unfavourable).
implemented across the college if a probable budget deficit is foreseen during
monthly budget reviews.
Projection for fiscal year 2014-2015
In line with the assumptions presented below, the college projects a surplus
of $816K for the 2014-2015 fiscal year, indicating a viable college operation
provided that the conditions created by the 2013-2014 budget can be sustained in
2014-2015.
Post-secondary, domestic enrolment growth
4.0% increase
Operating grants
6.0% increase
Tuition fees
3.0% increase
Annual cost of interest
4.0%
Net amortization expense: $33K (0.8-per cent) increase, due to the capital
investment for 2013-2014, which is not offset by additional revenues received.
Interest expense: $33K (0.8-per cent) increase in interest expense, due to
increased usage of the line of credit facility.
Risk and opportunity assessment
The 2013-2014 budget was prepared through extensive consultation with the
academic and service areas. There is sufficient detail associated with this budget
from an operational perspective to allow for effective control and monitoring of
each budget unit and item.
The primary risks in the 2013-2014 budget can be summarized as follows:
Post-secondary domestic and international enrolment: The achievement
of the domestic and international post-secondary enrolment targets depends on
certain factors that are beyond the control of the college including, demographic
trends, state of the regional economy, and competitive factors. A five-per
cent change in domestic enrolment is calculated to have a budget impact of
approximately $1.1 million. A 10 per cent change in international revenues creates
a $0.45 million impact.
Tuition revenues: In previous years, the Tuition Policy Framework directed by
MTCU has allowed for an annual five-per cent increase to tuition fees. The policy is
currently under review, however no communication has been received with respect
to the allowable increases for 2013-2014. Based on discussions with other colleges,
the 2013-2014 Durham College budget is based on a three-per cent increase. A oneper cent change will create a $0.4-million impact on the budget.
Tuition set-aside allocation for overhead: In previous years, the MTCU Tuition
Fee Set-Aside Guidelines allowed for a five-per cent allocation of tuition set-aside
reserve to fund overhead. With the revised guidelines, it is proposed that this
allocation will increase to 20 per cent to provide greater flexibility for colleges to
use these funds as required. The impact of this change is $0.4 million to the budget,
however this is to be confirmed by the ministry.
School of Skilled Trades, Apprenticeship and Renewal Technology: Several
post-secondary and apprenticeship programs within this school are experiencing a
decline in enrolment resulting in a contribution loss. The program contributions will
be reviewed and a strategy developed to address any further loss.
Shared services overhead: Although discussions have taken place, agreement
has not yet been reached with UOIT in regards to the annual overhead allocation for
shared services.
The budget does not include any contingency allowance, however the college was
able to allocate $350K to various leadership and strategic initiatives including
new program development. An additional $1.5 million was allocated towards new
hires. Fifteen new faculty will be hired to match increasing enrolment in schools
directly attributed to new programs. Further, 20 new staff positions will be added to
strengthen the academic delivery and student services.
The actualization of the budget will be closely monitored on a monthly basis and
reported to the Audit and Finance Committee of the Board of Governors. Any
unforeseen budget pressure will first be mitigated by deferring the implementation
of strategic initiatives to the following year. Budget reduction measures will be
durhamcollege.ca/businessplan 15
Schedule of operating revenues and expenses
$000s
Forecast BudgetProjection
2012-20132013-20142014-2015
Total Academic revenues
101,752 107,034 112,519
Total Academic expenses
67,021 70,041 72,306
Academic contribution
34,731 36,993 40,213
Academic contribution margin
34.1%
34.6%
35.7%
Net funds allocated for services
(29,112)
(32,482)
(33,423)
(6,291)
(4,512)
(5,976)
Central revenues (expenses)
In-year surplus (deficit)
(673)
- 816
Capital expenditures budget
Total capital expenditures for the 2013-2014 fiscal year are budgeted at $6.8 million to support academic programs, annual renovations and infrastructure investments. The
following table shows the distribution of the Capital Expenditures Budget to major capital expenditure projects and the available funding from external sources.
2013-2014 Capital expenditures budget summary
$000s
BudgetForecast 1Budget
2012-20132012-20132013-2014
Available funding
College Equipment Renewal Fund
312 312 312
Facilities Renewal Fund
336 336 336
Apprenticeship Enhancement Fund
500 607 500
OPG donation
200 200 200
Funded from AFHC fee
Residence reserve
Total Funding
- - 77
850 759 215
2,198 2,214 1,640
Capital expenditures
Academic
849 933 600
Apprenticeship projects
500 607 500
Pickering Learning Site
225 230 118
Residental Lab
166 -
1,574 1,937 1,218
Student services and general administration
823 854 541
Total student services
823 854 541
1,975
Total Academic
Other IT expenditures
- 1,460 1,088 Replace/upgrade LMS
400 416 -
Wireless and wired network upgrade
840 810 125
Total IT
2,700 2,314 2,100
General renovations
2,000 1,960 1,212
CFF spending over original scope
Food services renovations
- - 514
94 95 120
Road upgrade, landscaping, parking and signage
306 256 154
Deferred maintenance
686 786 650
3,086 3,097 2,650
Accessibility pool
200 106 100
Residence renovations - Simcoe Village
850 759 215
Contingency
175 98 -
9,408 9,164 6,823
(7,210)
(6,950)
(5,183)
Total Facilities
Total expenditures
Funded from college resources
1
Based on year-to-date activity and preliminary projection at February 28, 2013
16 durhamcollege.ca/businessplan
The capital expenditures for the academic areas include upgrades to the CISCO
servers and computer equipment for the School of Business, IT and Management;
a lab for the Fire and Life Safety Systems program in the School of Justice and
Emergency Services; new equipment for the Occupational Therapist Assistant/
Physiotherapist Assistant lab for the School of Health and Community Services;
boiler installation for the School of Skilled Trades, Apprenticeship and Renewable
Technology; and a new survey tool to support the Office of Research Services
and Innovation. The capital expenditures at the Pickering campus include a food
services addition deferred from fiscal 2012-2013.
Student services and general administration projects primarily include a new
electronic medical records system, additional Code Blue stations and CCTB
enhancement on campus; internal branding and digital signage; an updated
recruitment booth; furniture refresh for classrooms and offices; and a new transport
truck for Corporate Training Services.
Information Technology projects include the implementation of newly purchased
additional Banner modules for Student Financial Aid, Operational Data Store and
Enterprise Data Warehouse; wireless network controller redundancy; data centre
core switch upgrades; Whitby campus IT infrastructure upgrades; and computer
equipment and lab refresh.
General renovation projects include the first floor of the A Wing and former daycare space at Campus Corners.
The Capital Expenditures Budget also includes provisions for additional audio visual
equipment, a green wall and signage for the Centre For Food, another self-service
Tim Hortons at the Oshawa campus, additional parking at the Whitby campus, and
deferred maintenance.
Whitby Phase 3
An additional $10 million in spending has been budgeted for the Centre for Food at the Whitby campus in 2013-2014. The project is expected to be completed for September 2013.
$000
ActualForecastForecastForecast
TotalApproved
2011-2012 2012-20132013-20142014-2015 project budget Variance
Fundraising
1,322 Property sales
1,850 Borrowing and its repayment*
Total Funding
- 1,759 1,870 - 6,500 - 4,075 811 5,762 7,500 8,350 8,300 50
(1,200)
2,875 2,200 675
(389)
16,987 18,000 (1,013)
- (1,738)
3,172 1,759 12,445 Project cost
684 7,353 9,963 - 18,000 18,000 -
Total expenditures
684 7,353 9,963 - 18,000 18,000 (0)
2,488 (5,594)
2,482 Funded from college resources
(389)
(1,013)
- (0)
* The college was approved for a term loan from the Ontario Financing Authority after project completion, repayable over four years.
durhamcollege.ca/businessplan 17
Capital expense projection for fiscal year 2014-2015
Conclusion
The capital expenditures currently planned for fiscal year 2014-2015 include the
planning and design for $2 million in continued renovations at the Oshawa campus
and deferred maintenance for $0.6 million. The balance of the 2014-2015 capital
expenditures will be planned during the preparation of the 2014-2015 budget.
Durham College is presenting a balanced budget for 2013-2014 despite significant
funding reductions introduced by the provincial government. The primary factor
behind this achievement is the continued increase in domestic and international
enrolment.
Cash flow
Cash flow from operations is estimated to be sufficient to pay for the planned
capital expenditures. However some funding may be required for working capital
and some of the externally funded projects due to the differences between the time
that funds are received and spent. A total of $3,093K is allocated for the principal
payment in long-term debt.
The cash flow projection shows an inflow of $3.2 million of cash for fiscal 20132014, assuming the sale of 199 Wentworth and the transfer of the Windfields Farm
land to UOIT. The college has an $11 million line of credit and will have to use a
portion due to the seasonality of the student revenues and funding of the Centre
for Food.
The following table shows the budgeted cash flow for 2013-2014:
Budget
$000
2013-2014Comments
Cash flow from operations
Cash flow from working capital
Cash flow from sale of properties
Investing activities
Deferred contributions Financing activities
Repayment of long-term debt
Net cash flow
18 durhamcollege.ca/businessplan
8,552Impact of adding back non-cash
amortization expense
475Decrease in accounts receivable and
increase in accounts payable
6,500199 Wentworth and transfer of
Windfields land to UOIT
(16,571)Capital expenditures, including the
Centre for Food
3,295Deferred capital contributions and
restricted contributions for capital
4,075Term loan from OFA for CFF
(3,093)Principal payment on long-term loans
3,233
The budget targets are tight but achievable. The principal objective of the budget is
to expand operating activities and enhance the academic quality and occupational
relevance of the academic programs where possible. The budget allows for the
continuation of all existing academic programs and the introduction of 11 new
programs. The budget also supports the college’s Business Plan priorities for
2013-2014.
Major budget risks include the achievement of domestic and international
enrolment targets and uncertainty regarding the tuition fee increase. There is no
contingency allowance in the budget, however funding is provided for strategic and
leadership initiatives and new program development.
The proposed capital budget provides $6.8 million for capital expenditures in
fiscal 2013-2014, including an investment in academic resources, IT and ongoing
infrastructure investment. Further, an additional $10 million has been budgeted for
the continuing expansion of the Whitby campus.
The projected cash flow indicates that the college will be able to sustain its
operations without requiring additional external financing other than $4.1 million in
borrowing for financing the Centre for Food. Conversely, the college will reduce its
previous long-term borrowing by $3.093 million in 2013-2014.
2000 Simcoe Street North, Oshawa, Ontario, Canada L1H 7K4
T: 905.721.2000 | www.durhamcollege.ca