CFO Explains The Latest Surplus

fiscal year end

In a Scene story last month, the independent audit confirmed that the college ended the 2021-22 fiscal year with another whopping surplus, of $31.5 million.

During the June 28th meeting of the Board of Governors, Vice-President of Finance and Chief Financial Officer Marc Jones provided his year-end report, detailing how that surplus was achieved.

(The college, like all provincial entities, operates on a fiscal year of April 1 to March 31.)

Here is Jones’ report to the Board:

The net surplus at March 31, 2022 of $31,577,164 is a significant increase of $10,746,123 from the net surplus budget of $20,831,041 (when the budget was first approved in March of 2021). The variance is primarily due to the following:

•  Increase in funding related to Nursing enrolment expansion and other one-time funding.

• Decrease in the International Student Recovery program.

• Decrease in expenditures related to salary and benefits.

• Decrease in agent commissions to recruit international students, due to lower enrolment relative to budget.

• Decrease in non-salary expenditures due to conservative budget requests.

REVENUE

The following highlights the major changes in revenue compared to the fiscal year budget projection:

• Ministry of Colleges and Universities operating grants are higher than budget at $1,872,381 or 4.5 percent due to the following increase in Nursing Enrolment Expansion funding of $759,243.

• Decrease in the International Student Recovery program of $747,022.

• Contract Income is lower than budget at $1,601,201 or 8.9 percent due to the lower stipends flowed across various Ministry of Labour funded programs because of lower job placements due to COVD-19.

• Lower Apprenticeship funding because of delayed programming due to COVID 19.

• Total Tuition revenue is lower than budget at $3,129,416 or 2.1 percent, mostly across Postsecondary–International and Postsecondary–PCPP (St. Clair’s partnership with the Ace Acumen Academy in Toronto). This is due to the following:

- Lower Winter 2022 semester intake relative to budget because of COVID-19 and its travel restrictions;

– Anticipated tuition refunds because of opt-ins and visa denials;

– Higher revenue deferral for the Winter 2022 semester.

• Total Other Income is higher than budget at $2,070,501 or 4.1 percent.  When fiscal year-end accounting adjustments related to the Foundation ($554,076), Bursaries and Scholarships ($110,518), and Capital Support Grants ($289,367) are removed, the resulting Other Income is higher than budget at $1,116,540 or 2.2 percent due to the following:

– Increase in Investment Income of $475,193 due to higher cash balances than forecasted due to higher volume of payments being made by students for future semesters;

– Increase in PCPP Fee-for-Service revenue of $419,768 due to higher Day 10 enrolment than planned for the Winter 2022 semester.

EXPENDITURES

The following highlights the major changes in expenditures compared to the fiscal year budget projection:

• Total Salaries & Benefits are lower than budget projection at $1,147,854 or 1.2 percent due to the following:

– Decrease in Part-Time Faculty due to actual teaching hours being lower than budget;

– Decrease in Part-Time Support due to conservative budget requests;

– Decrease in Fringe Benefits because of the overall lower salary and benefit costs.

• Total Non-Salary expenditures are lower than budget at $11,001,396 or 7.6 percent. When fiscal year-end accounting adjustments related to the Foundation ($554,076), Bursaries and Scholarships ($102,518), and Capital Support Grants ($263,302) are removed, the resulting Non-Salary expenditure is lower than budget at $11,921,292 or 8.3 percent due to the following:

– Decrease in Contracted Educational Services due to anticipated tuition refunds and a higher prepaid expense for the Winter 2022 semester, as a result of students attending the Toronto Campuses and flowing the applicable funds to Ace Acumen;

– Decrease in Contracted Services Other due to lower agent commissions to recruit international students because of lower enrolment relative to budget;

– Decrease in Equipment Maintenance & Repairs due to lower I.T. software licensing requirements than planned;

– Decrease in Insurance due to lower participation of international students in health and dental coverage than planned;

– Decrease in Stipends and Allowances due to lower participation in the Personal Support Worker – Accelerated program than planned;

– Realized COVID 19 expenditures are lower than budgeted;

– Decrease in non-salary expenditures due to conservative budget requests.

ANCILLARY OPERATIONS (Non-academic entities, such as the convention and banquet operations at the Centre for the Arts)

Overall, the Ancillary Operations deficit of $1,291,930 was $615,392 higher than the budget deficit of $676,538 due to the Residence, St. Clair College Centre for the Arts and Varsity Sports.

LINKS TO MORE STORIES ABOUT THE JUNE BOARD OF GOVERNORS MEETING 

• College’s energy conservation efforts: https://news.stclair-src.org/need-know-news/college-energetic-about-energy-conservation 

• New high-tech programs next fall: https://news.stclair-src.org/need-know-news/new-high-tech-programs-next-fall 

• Low domestic enrolment report: https://news.stclair-src.org/need-know-news/board-informed-low-domestic-enrolment-situation 

• College in good shape for new provincial funding formula: https://news.stclair-src.org/need-know-news/college-well-positioned-provincial-funding-change 

• President honoured, Board’s “changing of the guard”: https://news.stclair-src.org/need-know-news/doctorate-doctorgate