Now that the college is halfway through its fiscal year (like the provincial government, it operates financially from April to March), the budgetary crystal ball has been refocused.
Last month, the college’s Board of Governors received the September-month-end financial numbers, showing that various projections were probably not going to be achieved by year-end. See https://news.stclair-src.org/need-know-news/board-reviews-mid-year-financial-status
Then, at its November 23rd meeting, based on the trends revealed in that previous report, Chief Financial Officer Marc Jones presented a budget update with revised projections until the end of the year on March 31.
Jones is now projecting:
• Total revenue for 2021-22 in the amount of $265,604,132. That is down $15 million (five percent) from the original budget’s forecast of $280,647,622.
The chief cause of that decline is that tuition revenue is not as plentiful as had been anticipated when the budget was originally set last March. The college now expects to take in $148.2 million in tuition for the year, as opposed to the $167.8 million that had originally been predicted.
That dip, by the way, does not involve a drop in enrolment. That has remained fairly stable from last year to this year ... but that is the glitch, because the budget had anticipated an enrolment increase that simply did not materialize due to the pandemic.
• Total expenditures for 2021-22 are now projected to total $244,773,091 by year-end, as opposed to the original budget’s forecast of $253.3 million.
Jones’ report explained:
Overall, expenditures decreased by $8,531,780 or 3% over the original budget. The following highlights compare the original budget approved by the Board to some of the major changes in expenditures.
• Total Salaries & Benefits decreased by $2,217,005 or 2%. The decrease is primarily due to the following:
- Decrease in Full-Time Faculty salaries: $1,755,203
- Decrease in Full-Time Support salaries: $1,260,994
- Decrease in Fringe Benefits: $392,585
The decrease in Salaries & Benefits is a result of less active staffing resources than planned due to delayed hires and unplanned retirements.
• Total Non-Salary Expenditures decreased by $5,182,327 or 3%. The decrease is primarily due to the following:
- Decrease in Amortization of $1,027,259 due to delays in capital project spending.
- Decrease in Contracted Educational Services of $5,758,818 due to lower enrolment than planned at the Toronto Campus, and less funds being flowed to Ace Acumen, and the adjustment of the School College Work Initiative Grant from a gross basis to net basis.
- Decrease in Contracted Services Other of $4,449,824 due to lower agent commissions because of lower international student enrolment.
- Increase in Premise Rental of $915,448 due to higher than planned accommodation costs for the international student arrival protocol.
- Increase in Stipends & Allowances & Scholarships of $3,351,903 due to funds being flowed to students enrolled in the accelerated Personal Support Worker program.
• Increase to the following because of the College’s COVID-19 vaccine policy:
- Office Supplies of $335,265 due to rapid testing kits.
- Increase in Security Services of $413,000 due to increased monitoring.
- Other of $868,436 due to technology and resources to capture, track and report on vaccinations.
Administration continues its on-going efforts of managing expenditures to achieve the overall expenditures budget.
All if which means that, revenues minus expenditures, the administration is now projecting a year-end budgetary surplus of $20,831,041 – as opposed to the $27.3 million surplus that had been forecast when the budget was originally set last March.
Despite being a bit lower than originally predicted, if achieved, that would be the latest in a half-decade of eight-figure surpluses recorded by the college.
LINKS TO MORE STORIES FROM THE BOARD OF GOVERNORS’ MEETING
• President Patti France’s monthly report: https://news.stclair-src.org/need-know-news/board-hears-about-presidents-busy-month
• A new program to be unveiled next fall: https://news.stclair-src.org/need-know-news/board-approves-new-program-launch-next-fall
• Programs with some iffy enrolment being monitored: https://news.stclair-src.org/need-know-news/enrolment-dips-discussed-board
• New credit-transfer opportunities: https://news.stclair-src.org/need-know-news/new-additions-go-there-here-list
• Bolstered effort to retain enrolment: https://news.stclair-src.org/need-know-news/keeping-existing-students-important-getting-new-ones
• Sister school could deliver St. Clair programs in B.C.: https://news.stclair-src.org/need-know-news/scc-may-get-bc-thanks-aaa
• St. Clair’s regional economic impact: https://news.stclair-src.org/need-know-news/st-clairs-impact-updated-report