OPEN SESSION MEETING AGENDA
FRIDAY, APRIL 20, 2018 9:00 am University of Guelph | The Arboretum [College Avenue East, near Victoria Rd] Page
Meeting Information Teleconference details are included on the closed session agenda. 3 List of Attendees 5-14 Board Membership 1. Welcome, Approval of Agenda and Minutes 15 a) Approval of Agenda [Motion] 17-25 b) Minutes of January 23, 2018 [Motion] 2. President's Report 27 a) Report on University Activities [Addenda] b) Faculty Appointments 3. Audit & Risk Committee Report 29-30 a) Report from Committee Chair 4. Finance Committee Report 31 a) Report from Committee Chair 33-42 b) 2018-19 University Centre Operating Budget [Motion] 43-52 c) 2018-19 University of Guelph-Humber Budget [Motion] 53-113 d) 2018-19 University of Guelph Budget [Motion] 115-138 e) Report on Student Aid and Accessibility 139 f) Update on Special Action Request for Fossil Fuel Divestment 5. Governance & Human Resources Committee Report 141 a) Report from Committee Chair 143-144 b) 2018 Elections & Appointment of Students, Staff and Faculty [Motions] 145 c) Update on Board Governance Review 147-155 d) President's Annual Performance Review: Process for 2017-18 6. Pensions Committee Report
Page 1 of 220 Board of Governors Open Session Meeting Agenda April 20, 2018
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6. Pensions Committee Report 157 a) Report from Committee Chair 159-183 b) Annual Review of Statement of Investment Policies & Procedures (SIPP) [Motion] 185-201 c) Negotiated Text Amendments to Pension Plans [Motion] 203 d) Update on University Pensions Project 7. Physical Resources & Property Committee Report 205 a) Report from Committee Chair 8. Board of Trustees Report 207 a) Report from the Chair 9. Move to Closed Session 209 a) Adjourn Open Session and Move into Closed Session [Motion] 10. Addenda Items 211-220 a) 2a) Report on University Activities Next Board of Governors Meeting: Friday, June 8, 2018 to be held at University of Guelph-Humber
Page 2 of 220
Attendees for Friday, April 20, 2018 Board meeting1
Board Members Guests Kevin Golding (Chair) Daniel Atlin (VP External) Shauneen Bruder (Vice-Chair) Annette Blok (University Secretariat-Administrative Officer) Paul Gallagher (Vice-Chair) Malcolm Campbell (VP Research) Franco Vaccarino (President) Ted Cogan (University Secretariat-Special Projects Assistant) Rich Appiah Ben Doadt (Associate University Secretary, Board) Carolyn Augusta Jackie Gillis (Minute Taker) Graham Badun Martha Harley (AVP Human Resources) Gerrit Bos Philip John (Director, University Centre) Nancy Brown Andison Virginia McLaughlin (BOT Chair) [via teleconference] Nancy Croitoru Karen Menard (AVP Institutional Analysis and Research) Mary Deacon Mary Murphy (University Legal Counsel) Lindsey Fletcher Don O’Leary (VP Finance, Administration & Risk) Eleanor Fritz Aidan Paskinov (University Centre Board Chair) Paul Gibson John Walsh (Vice-Provost Guelph-Humber) Sally Hickson Sarah Willey-Thomas (Associate University Secretary, Senate) Bill Hogarth Charlotte Yates (Provost & VP Academic) Andrew Kuttain Andrew Marsh Coral Murrant Prashant Pathak Byron Sheldrick Irene Thompson Gen Gauthier-Chalifour (University Secretary)
Regrets Visitors Martha Billes (Chancellor) Janice Folk-Dawson Neil Parkinson Laura Maclure Nicholas Manuel Joe Rooyakkers
1 As of April 12, 2018
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List of Attendees Page 3 of 220 Page 4 of 220 Board Membership
BOARD OF GOVERNORS (BOG): 2017-18 Member Listing
Kevin Golding Mr. Kevin Golding is the President of KPLG Advisory Services Inc. and formerly a senior executive with Maple Board of Governors Leaf Foods. He was appointed chair of the Board of Governors as of July 1, 2015, and his second two-year Chair term will conclude on June 30, 2019.
Mr. Golding was first appointed to the Board of Governors in 2008, and in 2014 became vice-chair of the board. He has previously served as chair of the Board’s Governance & Human Resources Committee, and the Physical Resources and Property Committee. In 2012, he chaired the Campus Master Plan Steering Committee which led a major initiative to update and revise the University of Guelph’s Campus Master Plan. The updated plan has received a prestigious Ontario Professional Planners Institute award for excellence in planning achievement. In his previous 34-year career with Maple Leaf Foods, was also president of Rothsay, a rendering and biofuels business, and president of Maple Leaf Agri Farms, with locations across Canada.
Kevin holds a Bachelor of Commerce degree from McMaster University. A long-time resident of Guelph, he is also the current chair of the board of BIOX Corporation (a bio-fuels company).
Richard Appiah Rich Appiah is a lawyer and the principal of Appiah Law | Employment + Labour Counsel. He provides expert Board/Alumni strategic counsel and legal representation in the area of human resources law to small and enterprise-scale businesses, as well as to managers and senior executives. He has published extensively in the area of employment law and has presented at numerous conferences for human resources and legal professionals. In 2016, he was recognized as a "Lawyer to Watch" by Lexpert Magazine, and in 2017 he was elected to the executive of the Ontario Bar Association's Employment and Labour Section.
Rich studied at the University of Guelph as a President’s Scholar and completed his Honours Bachelor of Arts degree in 2002 with the prize in Political Science and the Brian D. Sullivan Award for student leadership. He then attended Osgoode Hall Law School, where he was a division leader for the school's legal clinic and president of the school's student union. He graduated from Osgoode with a Bachelor of Laws degree in 2005.
Page 5 of 220 Rich is the former president of Delisle Youth Services (now Skylark Children, Youth and Families), an outstanding agency that supports young people through numerous mental health and developmental services programs. He is currently Vice Chair of the Board of Directors of The STEPS Initiative, an award-winning public arts organization that builds the capacity of citizens to create more vibrant and connected communities.
Board Membership
BOARD OF GOVERNORS (BOG): 2017-18 Member Listing
Carolyn Augusta Carolyn Augusta is a doctoral candidate in Applied Statistics. Her research focuses on applications of machine Student learning to infectious disease epidemiology. For the past tow years, Carolyn has been a Co-Chair of the Student Senate Caucus and has served on numerous Senate committees. Last year, Carolyn also took on the role of Vice-President Internal of the Graduate Students’ Association, and has represented students on various committees in the Department of Mathematics & Statistics.
Last year she was the main organizer for a provincial graduate student mathematics and statistics conference. Carolyn is passionate about teaching, and taught her first undergraduate statistics course at the University of Guelph in Summer 2017. Carolyn received her Bachelor of Mathematics degree from the University of Waterloo and her Master of Science degree in Applied Statistics from the University of Guelph.
Graham Badun Graham Badun is currently President and Chief Executive Officer of AlarmForce, a security alarm monitoring Board company with branches throughout Canada. Graham was the founder of Westport Partners, a Toronto-based advisory firm focused on the real estate services sector in North America. Prior to starting Westport, Graham was Group Chief Executive Officer of Brookfield Residential Property Services, a division of Brookfield Asset Management where he worked from 1998 until 2012.
Graham received his BA in Political Studies at Queens University, and an MBA from Ivey Business School, Western University.
Dr. Martha Billes Dr. Martha Billes has been a director of Canadian Tire Corporation since 1980 and the controlling shareholder Chancellor since 1997. She began her career in consumer product research and development with Lever Brothers and Board/Alumni later worked with the Ontario Research Foundation. She joined the board of Canadian Tire in 1980, taking up the seat previously occupied by her father, A.J. Billes, the company’s co-founder.
Dr. Billes is also the founder of Canadian Tire Jumpstart Charities, a nationwide foundation dedicated to providing access to sport and activities to disadvantaged young people across Canada. Known for its high degree of leadership in community-based philanthropy, Jumpstart distributes $22 million annually; in 2016, it helped more than 220,000 Canadian children.
Page 6 of 220 Past service includes the board of the Sunnybrook Foundation, the dean’s advisory boards of Auburn University Social Services Faculty and the Ryerson University Faculty of Business. She is also a former trustee of the Calgary Women’s Shelter Endowment Fund and a director of the Toronto Organizing Committee of the 2015 Pan American Games, and is Honorary Consul Emeritus, Calgary, for the Republic of Chile. She is the recipient of the Calgary Mayor’s Award and the Ontario Citation as a leader in philanthropy. Dr. Billes was awarded an honorary doctor of laws degree from the University of Guelph in 2013, and also received an Honorary doctor of commerce from Ryerson in 2002. On April 4, 2017, Senate elected Dr. Martha Billes as the ninth Chancellor of the University of Guelph.
Board Membership
BOARD OF GOVERNORS (BOG): 2017-18 Member Listing
Gerrit Bos Gerrit Bos is a staff-elected member of the Board of Governors. He has been on campus since 1980 – including Staff his time as a student graduating with a B.Sc in Engineering in 1987, and then almost 30 years as an employee of the University of Guelph. He served as a Staff-Alumnus representative on the Board of Governors from 1995-2000, and as a member of the executive of the Professional Staff Association from 1993 to 1995. In 2014, Gerrit graduated with an M.A. (Leadership) from the University of Guelph.
Currently Gerrit is the Information Technology Security Officer, in the Office of the Chief Information Officer. In 2013, he completed the Certificate in Security Management from ISACA (formerly known as the Information Systems Audit and Control Association) and in 2015 received accreditation as a Certified Information Systems Security Professional (CISSP) Associate with ISC2, an international non-profit membership association focused on cyber security and safety.
Nancy Brown Nancy Brown Andison is a retired Partner of PricewaterhouseCoopers and an Executive of IBM Canada. A Andison graduate of the University of Guelph (Bachelor of Science in Agriculture) and Queen's University (MBA), Nancy Board/Alumni is also a graduate of the Chartered Directors Program (C.Dir) at the DeGroote School of Business at McMaster University. She was recently awarded Distinguished Alumna by the Department of Food Agriculture & Resource Economics at the University of Guelph.
For both PwC and IBM, Nancy led all aspects of Consulting and Business Services to the Public Sector in the Province of Ontario. Her areas of specialty included business strategy and transformation, financial and risk management, systems implementation, project management and human resources management. In her leadership role Nancy has been responsible for the successful merger of two diverse organizations and growing the business of the new organization seven fold in just three years. She has been Team Leader for some of the largest and most complex business and systems transitions in the Canadian Public Sector.
Nancy’s Board of Director experience includes: Ontario 4-H Foundation, Farm Radio International (FRI), City of Peterborough Holdings Inc., The Royal Agricultural Winter Fair and Dancemakers.
Shauneen Bruder In her role as Executive Vice President of Operations for the Royal Bank of Canada, Shauneen oversees Board of Governors operations related to personal and business clients. Shauneen joined RBC in 1984, and has held a variety of Page 7 of 220 Vice-Chair roles, including Executive Vice-President of Business and Commercial Banking, Chief Operating Officer of the Alumni Global Wealth Management division, and President of RBC Centura Banks headquartered in North Carolina. A certified director (ICD.D), she is a director of various RBC subsidiaries and also serves on the boards of CN and several not-for-profit organizations, including the Shaw Festival and Pine River Institute.
Shauneen has served as Chair of both the Canadian Chamber of Commerce and the Canadian American Business Council. She serves as Honorary Consul for Luxembourg in Toronto. She is a recipient of the Queen’s Diamond Jubilee Medal and has been inducted into the Women's Executive Network Top 100 Most Powerful Women Hall of Fame. Shauneen holds a Bachelor of Arts degree from the University of Guelph (1980) and was Gold Medalist of the Queen's University MBA class of 1984.
Board Membership
BOARD OF GOVERNORS (BOG): 2017-18 Member Listing
Nancy Croitoru Nancy Croitoru is an experienced CEO and Board Director. Most recently, she was President and CEO of Board Food & Consumer Products of Canada (FCPC), Canada’s largest association of companies that manufacture and distribute food, beverage and consumer packaged goods. She also had global responsibility as co-chair of the Consumer Goods Forum (CGF) Global Liaison Group, an alliance of Consumer Goods Associations around the world, working together on global initiatives and providing strategic insight and support to the global Consumer Goods Forum. In 2013, Nancy was named one of the top 25 Women of Influence in Canada. As
well, she sits on the Board of Governors for the University of Guelph and the Board of Directors for the Ontario Telemedicine Network (OTN). Nancy is a graduate of McGill University.
Mary Deacon Mary Deacon is Chair of the Bell Let’s Talk mental health initiative, the largest corporate initiative of its kind in Board/Alumni Canada. She assumed her role as Chair after a long and successful career in the philanthropic sector including almost a decade as the inaugural President of the Centre for Addiction and Mental Health Foundation – Canada’s largest mental health hospital.
A passionate advocate and leader in the mental health community, Mary has an established track record of
bringing people and ideas together for positive change. She has a Bachelor of Arts degree and received the Queen Elizabeth ll Diamond Jubilee Medal. She also received the degree of Doctor of Laws, honoris causa from the University of Guelph where she is also a member of the Board of Directors. She resides in Toronto and has four children.
Lindsey Fletcher Lindsey Fletcher is a 4th year student at the University of Guelph, pursuing an Honours Bachelor of Arts degree, Student majoring in Criminal Justice and Public Policy and minoring in Family and Child Studies. She is also working towards a General Bachelor of Science degree with focus on psychology, biology, and nutrition courses. Lindsey is actively involved in the U of G community with the Peer Helper Program, College of Social and Applied Human Sciences Student Alliance, Student Senate Caucus, Central Student Association Board of Directors, and Board of Governors. Following her undergrad, Lindsey plans to pursue studies in Public Health
and/or Naturopathic Medicine.
Photo to come Eleanor Fritz Ms. Fritz was Director of Compliance & Disclosure at Toronto Stock Exchange (TSX) before retiring in Page 8 of 220 Board/Alumni December 2016. In this role, she managed the department responsible for ensuring issuer compliance with TSX requirements related to continued listing, timely disclosure, corporate governance and director and officer suitability. During her 27-year career at TSX, she held various positions involving listed issuers from a regulatory, business development and relationship management perspective.
She currently serves as Co-chair of the Issues Committee of the Canadian Investor Relations Institute and previously sat on the Continuous Disclosure Advisory Committee of the Ontario Securities Commission, was a member of the Sustainability Working Group of the World Federation of Exchanges and the Ontario Chapter Executive of the Institute of Corporate Directors.
Board Membership
BOARD OF GOVERNORS (BOG): 2017-18 Member Listing
Paul Gallagher Paul is Vice President, Investments, at Carfin Inc., an investment corporation with holdings in private and public LGIC/Vice-Chair companies that are based in Canada, the United States, Europe and Asia. Prior to joining Carfin, Paul held leadership roles at Wittington Investments, Avana Group, Fairwater Capital, Oxford Developments and PWC.
He is Vice-Chair of the Board of Governors of the University of Guelph, a member of the Board of Trisura Group Ltd. and a member of the Advisory Committee of Richardson GMP. He is past President of the Board of
the Children's Aid Society of Toronto. He has served on the boards of the Sinai Health System, Bridgepoint Health, Caledon Institute of Social Policy, Rostland Corporation, Ryerson Oil and Gas and Northern Geophysical of America.
Paul holds the Institute of Corporate Directors designation, is a Chartered Professional Accountant and holds a Bachelor of Commerce Degree from Lakehead University.
Paul Gibson Paul Gibson is the President of White Tower Group, comprising firms focused on human capital strategies, Board talent search and HR services. Strategic services include organizational design, coaching, executive search and a broad suite of HR services. The group has broad expertise in family and private businesses, solving the unique concerns of changing and growing entrepreneurial enterprises.
Paul’s professional experience includes executive Human Resource leadership roles for diverse firms such as Mattamy Homes, Fidelity Investments, Palliser Furniture and Noma Industries. In addition, he has led operating and marketing functions as President of Commercial Centres with Mattamy, accountable for the development, construction, leasing and management of a portfolio of commercial and retail centres. Paul’s industry experiences include financial services, manufacturing, retail, construction, import, technology, real estate, packaging, printing, consumer goods, and the automotive industry.
A Certified Director through the Institute of Corporate Directors, Paul serves on the Boards of Proceco Ltd. and Mohawk Shared Services Inc. He has served as a Board Director or Advisor for a variety of organizations such as West Park Healthcare Centre, The Goodman School of Business, The Salvation Army, Halton Learning Foundation, Burlington Art Centre, Storytellers School of Toronto, The Oakville Centre for the Performing Arts, and Special Olympics and Boy & Girls Clubs of Ontario. Page 9 of 220
Paul is a former instructor in strategic human resource management for Ryerson University, a past Director of the Human Resource Professionals Association, a past member of the Special Experts Panel on Employee Relations for the US-based Society of Human Resource Management, and has been a chair & speaker at numerous conferences as well as a commentator on human resources related matters for CBC Radio.
Board Membership
BOARD OF GOVERNORS (BOG): 2017-18 Member Listing
Sally Hickson Dr. Sally Hickson (Queen’s 2003) is currently Director of the School of Fine Art & Music in the College of Arts, Faculty where she is Associate Professor of Art History. She has served on several university committees, including the Senate Board of Undergraduate Studies, Senate Board of Graduate Studies, Graduate Admissions & Progress Committee, and the university’s Research Ethics Board. From 2010 – 2013 she was President of the Universities Art Association of Canada (UAAC), and served on the Board of Directors, Hospice Wellington. She is the author and editor of many books and articles on Italian Renaissance art and theory, and a winner of the
College of Arts Teaching Excellence award.
Bill Hogarth Bill Hogarth served as the Director of Education at York Regional District School Board for 16 years. He is a LGIC collaborative senior leader who, in periods of both expansion and consolidation over the past forty years in two school boards, has had a broad range of experiences, including expertise in developing and implementing strategic plans, policy development, working with Ministry regulations, as well as in the development of curriculum and professional development programs.
He was a founding director of the Community Alliance for York Region Education in 1997, a community-based organization that leveraged considerable business and government support for programs and initiatives regarding anti-bullying, student leadership and early literacy. In 1999, he became founding chair of the York Region Advisory Forum on Children, Youth & Families, a coalition of more than 65 community organizations that support and promote optimal child development.
He is past Chair of the Board of Governors for Seneca College, and currently serves on the Board of Trustees for the Centre for Addiction and Mental Health (CAMH). He is the recipient of an honorary doctorate of laws degree from York University in 2010.
Andrew Kuttain Andrew Kuttain is a 5th year undergraduate student at the University of Guelph in Political Science. Andrew Student has been actively involved in the University through Orientation Week, Tractor Tugs for Tots, introducing prospective students to the campus, coordinating volunteers and educating students on campus life. He has learned invaluable lessons in life which has helped develop skills such as effectively raising awareness, connecting with the community, and seeing the whole picture when approaching major decisions. His
Page 10 of 220 experiences and connections across campus have given him the opportunity to see and understand the perspectives, opinions, and hopes of many students and faculty and he aims to impact the campus positively to improve lives with the Board of Governors.
Andrew Marsh Andrew Marsh founded Richardson GMP, Canada’s leading independent wealth management firm, and was LGIC/Alumni part of the team that built the firm from the ground up. Beginning his career in the financial industry over 25 years ago, Mr. Marsh started in investment analysis, then worked directly with clients as an investment advisor, and eventually his career moved to executive leadership with the launch of GMP Private Client in 2004. He served as Managing Director, National Sales of both GMP Private Client and Richardson GMP before being appointed as President and Chief Executive Officer of Richardson GMP in 2010.
Board Membership
BOARD OF GOVERNORS (BOG): 2017-18 Member Listing
Mr. Marsh is a graduate of the University of Guelph (BA, Management Economics 1990) and is an active mentor and contributor to the University’s College of Business and Economics. He is also a member of the Canadian Advisory Board for “Right to Play Canada”, a charity dedicated to helping children worldwide through the power of play.
Coral Murrant Coral Murrant is a faculty-elected member of the Board of Governors. She earned both her BSc and PhD Faculty degrees from the University of Guelph. After postdoctoral stints at Baylor College of Medicine in Houston and the University of Rochester in New York, she returned to the University of Guelph as a faculty member in 2000 and is now a Professor in the Department of Human Health and Nutritional Science. Coral has an active research program investigating tissue blood flow regulation, as well as scholarship in the area of teaching and learning in the area of evidence-based course design. She is the recipient of the University of Guelph Faculty Association Professorial Teaching Award, and the College of Biological Science Award for Excellence in Teaching.
Coral has served two terms on the University of Guelph Senate and served on committees such as the Senate Committee for Open Learning, the Senate Honours and Awards Committee, and the Standing Committee on Internal Review – a subcommittee of the Senate Committee on Quality Assurance - where she continues to serve as an internal reviewer as part of the University’s Institutional Quality Assurance Process (IQAP). In 2012, and subsequently in 2014, Coral was elected by her fellow Senators to serve two-year terms as the “Member-at-Large” to chair the Senate Priorities and Planning Committee. Coral also serves as Convocation Marshall for the University.
Photo to come Prashant Pathak Prashant Pathak is CEO of Ekagrata Inc. a business building oriented principal investment company and a Board Principal of In Colour Capital Inc. As an active owner he spends considerable time in Board and oversight roles at private and public companies in the Ekagrata portfolio. Outside of Canada and US he has significant international experience in, and exposure to issues in Asia, South America and Eastern Europe. He also serves on Board of several public and community institutions. He has been an appointee of Government of Canada on the Board of BDC (Business Development Bank of Canada, a $25 Billion institution). Mr. Pathak served for nearly 10 years in various roles and as Chairman of the Venture Capital and Investments Committee for BDC,
Page 11 of 220 BDC Capital is Canada’s largest VC program, he also served on the Credit & Risk and the Pensions Committees.
Previously, Mr. Pathak has been a Partner of McKinsey & Company Inc. At McKinsey he was a leader of the North American Telecom Practice, the Financial Services Practices and a leader in the Strategy & Corporate Finance Practice. He has advised several global corporations on a range of general management, strategy, M&A and operations issues across North America, Asia, Europe and South America. At McKinsey he led several initiatives for the Firm focused on industry innovation, like Decapitalization - "Creating capital efficient business models, “Unlocking the Value of a Board” – Governance as a competitive advantage, IP- Transformation - "Creating the Telco of the Future", and Lean Six sigma - "Creating the Lean Telco". He has also been the Managing Partner of ReichmannHauer Capital Partners a successful Canadian investment firm. Board Membership
BOARD OF GOVERNORS (BOG): 2017-18 Member Listing
Prior to McKinsey, Mr. Pathak spent several years in the industry in management and field operations roles at Schlumberger and Halliburton.
Outside of professional interests, Mr. Pathak actively contributes to several community and not-profit institutions and causes. He, is an Executive-in-Residence with the Asia Pacific Foundation of Canada (APF), a member of the Young Presidents' Organization (YPO) and is a Member of Chatham House - The Royal Institute of International Affairs. He was recognized as Canada’s Top 40 Under 40TM, and is an inductee to the “30 most influential Indo-Canadians Power List” of Rediff’s India Abroad (2009), and amongst 100 Most Influential Global Indians by Diaspora World in 2014. Previously he served on the Board of the North York General Hospital in Toronto.
Mr. Pathak migrated to Canada in 1998. He now lives in Toronto. Prashant has a MBA from INSEAD with Distinction and a B.Tech degree in Electrical Engineering from The Indian Institute of Technology (IIT), where he was adjudged the Best All-round Graduating Student of his class. He also has a Diploma in Fuzzy Logic from IIT.
Neil Parkinson Neil is a corporate director, professional accountant and consultant. He is a Fellow of Chartered Professional LGIC Accountants of Ontario (FCPA, FCA) and a member of the Institute of Corporate Directors (ICD.D). Prior to his retirement in 2016 Neil was a partner in KPMG LLP, where he served as national leader of Canadian insurance practice from 2004 to 2015, and was deputy chair of KPMG’s Global Insurance Contracts Technical Topics Team, a member of the Canadian Accounting Standards Board’s Insurance Accounting Task Force, and served as the chair of the Insurance Auditors Advisory Committee for the Superintendent of Financial Institutions Canada from 2009 to 2016. Neil has chaired and co-chaired CICA task forces on audit matters related to actuaries, and served as accounting adviser to the Canadian Institute of Actuaries task force on reinsurance. He is currently a member of the boards of Genworth MI Canada, Gore Mutual Insurance Company, Equitable Life Insurance Company of Canada and the University of Guelph. He has also served as a volunteer, director, treasurer, board chair or president of several community and national organizations, including Prostate Cancer Canada.
Byron Sheldrick Byron Sheldrick is a faculty-elected member of the Board of Governors. Byron joined the University of Guelph Faculty in 2006 and currently is the Associate Dean (Academic) of the College of Social and Applied Human Sciences. Page 12 of 220 He was the Chair of the Department of Political Science for nine years, and is an ex-officio member of the University Senate. Over the years, he has served on a number of Senate committees, and has chaired the Senate Committee on Student Petitions. He previously taught in the law department of Keele University in the United Kingdom and in the politics department of the University of Winnigeg. His research interests include law and politics, human rights, and social movements. His teaching interests include law and public administration, Canadian politics, and he has taught in the graduate program in Political Science, as well as in the Masters Leadership program.
Board Membership
BOARD OF GOVERNORS (BOG): 2017-18 Member Listing
Irene Thompson Irene Thompson holds the position of Director, Student Housing Services and has the honour of being a staff- Staff elected member to the Board of Governors. She is a 35-year member of the Guelph campus community who prides herself in being actively engaged in campus life. She has served in leadership roles on the Professional Staff Association including in the position of Chair. Irene is a member of the Ontario Association of College and University Housing Officers where she has served as President and in other Executive Committee roles. She is an active committee member and a regular presenter at the annual conference and professional development workshops. Irene is a strong believer in life-long learning and has completed an MBA in Hospitality and Tourism Management and is delighted to be a Guelph Alumna. Irene is a community volunteer and has been a member of the United Way of Guelph Wellington Dufferin Campaign Cabinet and Board of Directors for over twelve years. Irene is a certified Mental Health First Aid Trainer and regularly delivers workshops on campus and in the Guelph community.
Gen Gauthier- Genevieve (Gen) Gauthier-Chalifour is the University Secretary for the University of Guelph, serving as the Chalifour most senior advisor on governance issues within the University. In this capacity, Gen leads the overall University operation of the University Secretariat, Board of Governors, University Senate, Privacy Office and Student Secretary Judicial Services. A member of the University's senior leadership team, she provides advice with respect to non-voting board and academic governance considerations, policy and related strategy. She also serves as chief privacy officer and is responsible for oversight and administration of the University's privacy and records management programs.
Gen holds an Honours Bachelor of Arts (Political Science) from Wilfrid Laurier University, a Master of Arts (Leadership) from the University of Guelph, and the Chartered Director designation from McMaster University’s DeGroote School of Business.
Gen is a member of the board of the Canadian University Boards Association, and is also a member of the Council of Ontario University Secretaries, the Association of Governing Boards of Universities and Colleges, and the Institute of Corporate Directors.
Franco Vaccarino Dr. Franco J. Vaccarino began his term as president and vice-chancellor of the University of Guelph in August
Page 13 of 220 President 2014. Described as a builder and a visionary, he brought to Guelph a track record as a proven administrator with remarkable academic achievements, an entrepreneurial spirit, and a powerful commitment to community and societal engagement.
A distinguished researcher and teacher, he has focused on emerging areas of study and innovative experiential learning opportunities. He is an internationally recognized and widely published researcher and scholar, with more than 100 academic publications. Board Membership
BOARD OF GOVERNORS (BOG): 2017-18 Member Listing
In 1984, Dr. Vaccarino joined the University of Toronto Scarborough as an assistant professor in the Department of Psychology, where he later served as chair. He was also graduate chair of the tri-campus Graduate Department of Psychology and head of the Department of Psychiatry’s neuroscience program.
Dr. Vaccarino became principal of the University of Toronto Scarborough (UTSC) and vice-president of the University of Toronto in 2007, and was reappointed in 2012. He is credited with the significant expansion of UTSC’s campus and faculty, and with the development of new and emerging areas of scholarship and experiential learning opportunities. During his term, UTSC hired dozens of professors, expanded interdisciplinary academic and research programs, and built a new science complex, instructional centre and aquatics facility, among other substantial infrastructure projects.
He has received honours from the Canadian Institutes of Health Research, the Canadian College of Neuropsychopharmacology and the Canadian Academy of Health Sciences (CAHS). In 2014, he was named a Fellow of the CAHS, considered one of the highest honours for individuals in health sciences in this country. He has served as executive vice-president (programs) and vice-president (research) at the Centre for Addiction and Mental Health, and as vice-president and director of research, Clarke Institute of Psychiatry, both in Toronto.
Dr. Vaccarino’s studies of the neurobiology of stress and motivation are considered a model for bridging the neural and behavioural sciences. In 2004, he served as principal editor of the World Health Organization’s “Neuroscience of Psychoactive Substance Use and Dependence” report, the first comprehensive WHO report on the biology of substance dependence. A frequent speaker at major international conferences, Dr. Vaccarino discussed the neurobiological underpinnings of substance abuse and how the brain changes with alcohol and drug dependency during a panel held by the Canadian Centre on Substance Abuse (CCSA) in late 2014. In 2015, he was one of two principal editors of a national report on the effects of early and frequent marijuana use during adolescence released by the CCSA.
Dr. Vaccarino has taught and mentored an exceptional group of students and researchers, many of whom have gone on to develop significant and successful careers in science and academia. Page 14 of 220 Dr. Vaccarino holds a B.Sc. from the University of Toronto and an M.Sc. and a PhD in psychology from McGill University. He was a post-doctoral researcher at the Scripps and Salk institutes in California.
Board = Board Appointed LGIC = Lieutenant Governor Order-in-Council, Government Appointment Alumni = U of G Graduate
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To: Members of the Board of Governors
From: Gen Gauthier-Chalifour, University Secretary
Subject: 1. Welcome, Approval of Agenda and Minutes
Meeting: April 20, 2018
1. Welcome, Approval of Agenda and Minutes
The Chair will call the regular meeting of the Board of Governors to order, and offer welcome and introductory remarks.
a) Approval of Open Session Agenda [Motion]
The Board of Governors is asked to, RESOLVE, that the April 20, 2018 meeting agenda be approved, as presented.
b) Minutes of January 23, 2018 [Motion]
The Board of Governors is asked to, RESOLVE, that the open session minutes of the January 23, 2018 meeting be approved, as presented.
c) Business Arising
All matters of business arising are addressed throughout the meeting agenda.
N:\BOG\BOG Meetings\2017-2018\5. April 20, 2018\Cover Memos\1_Agenda and Minutes.docx
Approval of Agenda [Motion] Page 15 of 220 Page 16 of 220
OPEN SESSION Minutes of the 340th meeting held Tuesday, January 23, 2018 University of Guelph | University Centre | Peter Clark Hall
*via teleconference Present: Kevin Golding (Board Chair), *Paul Gallagher (Vice-Chair), Rich Appiah, *Carolyn Augusta, Graham Badun, Gerrit Bos, Nancy Brown Andison, *Nancy Croitoru, Lindsey Fletcher, Eleanor Fritz, Paul Gibson, Sally Hickson, Andrew Kuttain, Coral Murrant, Neil Parkinson, Byron Sheldrick, Irene Thompson, Franco Vaccarino (President), Gen Gauthier-Chalifour (University Secretary; non-voting) Regrets: Martha Billes (Chancellor), Shauneen Bruder (Vice-Chair), Mary Deacon, Andrew Marsh, Prashant Pathak Guests: Daniel Atlin, Zack Baker, Karen Bertrand, Malcolm Campbell, Ted Cogan, Chuck Cunningham, Bed Doadt, Jackie Gillis (Minute Recorder), Bill Hogarth, Dan MacLachlan, *Virginia McLaughlin (Chair, Board of Trustees), Karen Menard, Mary Murphy, Don O’Leary, John Walsh, Brenda Whiteside, Sarah Willey-Thomas, Charlotte Yates Visitors: approximately 95
1. Welcome, Approval of Agenda and Minutes
a) Approval of Agenda [Motion]
Mr. Kevin Golding, Chair of the Board of Governors, called the meeting to order, offered a territorial acknowledgement, and welcomed all members, visitors and guests.
Ms. Brown Andison asked that item 4f be discussed prior to 4d and 4e, out of respect for the guests who expressed interest in item 4f. Further, that item 4e be discussed prior to 4d.
The Chair then asked members to declare any conflict of interest with respect to the meeting agenda. The Chair noted that he has a conflict of interest related to item 4f, and would facilitate discussion but refrain from comment and voting on the matter.
On motion duly moved and seconded, it was RESOLVED, that the January 23, 2018 meeting agenda be approved, as presented.
b) Minutes of October 20, 2017 [Motion]
On motion, duly moved and seconded, it was RESOLVED, that the open session minutes of October 20, 2017 be approved, as presented.
c) Business Arising
It was noted that all matters of business arising would be addressed throughout the meeting agenda.
2. President’s Report
a) Report on University Activities
Minutes of January 23, 2018 [Motion] Page 17 of 220 Board of Governors Open Session Minutes | January 23, 2018
President Vaccarino began by noting that the University had recently welcomed a number of new leaders into key positions, including Aaron Miller as the Director of Marketing and Digital Engagement, Dr. Mary Wells as the Dean of the College of Engineering and Physical Science, Dr. Samantha Brennan as the Dean of the College of Arts, and Dr. Cate Dewey as the interim Associate Vice President (Academic). Provost Yates also highlighted that Zach Baker had recently joined the University as the Executive Director, Budget and Financial Planning.
The President then discussed the University’s recent progress on a number of other administrative and academic areas, including the recent signing of the Strategic Mandate Agreement and the attainment of the University’s one-time Career Ready funding, which will further support the University’s focus on increasing experiential education. In addition, the President noted that the University continues to follow-up on its Global at Guelph program, including a focus on augmenting international student recruitment, building international partnerships, and raising the profile and standard of the University in international rankings. Finally, he noted that a recent report in the media related to an in-lecture incident between a professor and a student was being addressed by the University, and that the professor involved had been placed on leave.
At this juncture, the President noted that in addition to internal dynamics, the University is shaped by multiple external influences, which he briefly discussed. In particular, he highlighted the University’s continued reflection on freedom of speech on campus, the impact of Bill 148, as well as the 2018-19 provincial budget and upcoming election. In closing, he noted that the University had a strong presence at the 2017 Royal Winter Fair, highlighting how it assisted with strengthening relationships with government partners and building connections that will benefit the University over the long-term. He thanked Ms. Brown Andison for her leadership in facilitating collaboration between the University of Guelph and the Royal Winter Fair.
3. Governance & Human Resources Committee Report
a) Report from Committee Chair
The Board Chair presented the report on behalf of the Governance & Human Resources Committee. Referring to the information included within the meeting materials, the Chair provided an overview of the recent activities of the Committee. He thanked the executive team for their excellent work related to labour relations and human resources.
b) Policy on Establishing University Policies and Procedures [Motion]
The Chair asked Ms. Gauthier-Chalifour to comment on the Policy.
Ms. Gauthier-Chalifour explained that the Policy codifies existing practices and seeks to eliminate bureaucracy in terms of making editorial changes to Board and Senate Policies. She explained that the Policy had been created through significant consultation with the administrative team, and would be presented to Senate for approval at its upcoming meeting in February.
A Governor sought clarification regarding how it is determined if a matter is significant enough to warrant formalization as a policy. Ms. Gauthier-Chalifour explained that the policy details that a Responsible Office/Officer would bring the policy to the University Secretariat for consultation and to help determine whether the policy should be brought to the Board or Senate.
Minutes of January 23, 2018 [Motion] Page 18 of 220 Board of Governors Open Session Minutes | January 23, 2018
In response to a question regarding the number of policies in the scope, Mr. Doadt responded that a current issue is that many items referred to as policies are not actually policies and that the Secretariat is currently in the process of creating an inventory of policies, from which the Secretariat will appropriately flag to Vice-Presidents when they require review. Ms. Chalifour- Gauthier agreed and noted that there is no definitive number, but that policies at the Board and Senate level are included.
On motion duly moved and seconded, it was RESOLVED, that the Board of Governors accept and approve the Policy on Establishing University Policies and Procedures, and the related Procedures for the Policy on Establishing University Policies and Procedures, as presented.
c) Board Governance Review [Motion]
The Chair explained that the University has always had strong governance practices and the Review seeks to examine current best practices in the private sector.
On motion duly moved and seconded, it was RESOLVED, that the Board of Governors accept and approve the establishment of an ad hoc Working Group to Review Board Governance with the membership structure as presented; and
FURTHER RESOLVED, that the Governance & Human Resources Committee be authorized to appoint the membership of the Working Group in accordance with the proposed structure.
d) Board of Governors Meeting Dates 2018-2021
The Chair brought Governors attention to the proposed meeting dates for the subsequent three Board cycles, explaining that the schedule was an effort to aid in Governor planning and recruitment.
e) Update on Board Evaluation
The Chair explained that the Annual Board Evaluation Survey would be issued to the Board in March and April and that the Committee would contact Governors for additional feedback in one-on-one interviews.
f) Board Recruitment – Call for Nominations
The Chair brought Governors attention to the Board’s Call for External Nominations.
4. Finance Committee Report
a) Report from Committee Chair
The Chair invited Ms. Brown Andison to present the report of the Finance Committee.
Referring to the meeting materials, Ms. Brown Andison explained the recent work of the Committee, noting the significant agenda of the Committee to date.
Minutes of January 23, 2018 [Motion] Page 19 of 220 Board of Governors Open Session Minutes | January 23, 2018
b) Proposed 2018-19 Capital Plan [Motion]
Ms. Brown Andison invited Mr. Don O’Leary to speak to the Proposed 2018-19 Capital Plan.
Referring to the meeting materials, Mr. O’Leary explained the Plan, detailing the types of projects, related processes, and providing a description of the proposed major building projects and major deferred maintenance projects for the 2018-19 period. He highlighted that the projects would not require any external debt.
The Chair invited questions or comments.
A Governor questioned how major building projects are decided upon, given the backlog of deferred maintenance. Mr. O’Leary responded that a committee reviews the major projects with consideration of several factors, including academic needs, possibility of growth, and to some extent government priorities.
i) Approval of the Projects Proposed in the 2018-19 Capital Plan for Capital Renewal Spending
On motion duly moved and seconded, it was RESOLVED, that the Board of Governors accept and approve that the University Administration be authorized to proceed with the 2018-19 capital renewal projects included in the 2018-19 Capital Plan, at a cost not to exceed $21.0 million and $10.7 million of which is to be paid from unit reserves, $1.7 million of which is to be paid from grants, $0.1 million is to be paid from fees, and $8.5 million of which is to be paid from financing.
ii) Approval of the Community Improv Theatre Project
On motion duly moved and seconded, it was RESOLVED, that the Board of Governors accept and approve that the University Administration be authorized to proceed with the Community Improv Theatre project including that:
a) The total construction cost not exceed $4.6 million and $1.9 million of which is to be paid from grants, $0.4 million of which is to be paid from unit reserves, $0.4 million of which is to be paid from central reserves and $1.9 million of which is to be paid from financing; and, b) The Administration present a schematic design and detailed design drawings for the project to the Physical Resources and Property Committee; and c) The University Administration be authorized to determine on behalf of the Board of Governors decisions concerning appointment of architects and consultants in a manner consistent with relevant University purchasing and tendering policies; and, d) The University Administration be authorized and directed to do all acts and things as may be necessary and desirable to complete the transaction contemplated herein, and that any two Officers of the University are hereby authorized to execute and deliver any and all documents, which in their opinion, are necessary or desirable to give effect to the foregoing; and, e) That the Physical Resources and Property Committee and Finance Committee receive regular updates regarding the budget, design and materials, and completion schedule; and,
Minutes of January 23, 2018 [Motion] Page 20 of 220 Board of Governors Open Session Minutes | January 23, 2018
f) Requests for adjustments to the project will follow the normal capital project review and approval processes of the Board of Governors.
iii) Approval of the Alumni Stadium Pavilion Landscaping Project
Ms. Brown Andison explained that the project is fully-funded by the donor.
On motion duly moved and seconded, it was RESOLVED, that the Board of Governors accept and approve that the University Administration be authorized to Proceed with the Pavilion Landscaping project, including that: a) The total amended project cost not exceed $3.0 million and be paid fully by the donor; and, b) The Administration present a schematic design and detailed design drawings for the project to the Physical Resources and Property Committee; and c) The University Administration be authorized to determine on behalf of the Board of Governors decisions concerning appointment of architects and consultants in a manner consistent with relevant University purchasing and tendering policies; and, d) The University Administration be authorized and directed to do all acts and things as may be necessary and desirable to complete the transaction contemplated herein, and that any two Officers of the University are hereby authorized to execute and deliver any and all documents, which in their opinion, are necessary or desirable to give effect to the foregoing; and, e) That the Physical Resources and Property Committee and Finance Committee receive regular updates regarding the budget, design and materials, and completion schedule; and, f) Requests for adjustments to the project will follow the normal capital project review and approval processes of the Board of Governors.
iii) North Wing MacKinnon – Information only iv) VMI Building – Information only
As indicated in the 2018-2019 Capital plan, request for approval for these projects will be sought once the project is finalized.
v) Summary of additional information
It was noted that the five-year Capital Plan and Summary for Student Housing Services and the five-year Capital Plan of the Department of Athletics was available in the online supporting materials.
c) Heritage Trust Disbursements for 2017-18 [Motion]
Ms. Brown Andison noted that the Finance Committee had reviewed the presentation of the Heritage Trust and duly recommended the Board to proceed with the disbursement, totaling $8.376 million.
For the benefit of all guests and visitors in attendance, Mr. O’Leary explained that the Heritage Trust comprises monies invested by the University from the annual income of several rental
Minutes of January 23, 2018 [Motion] Page 21 of 220 Board of Governors Open Session Minutes | January 23, 2018
properties the University owns. Further, he explained that the disbursement is used to help fund capital projects at the University.
On motion duly moved and seconded, it was RESOLVED, that the Board of Governors accept and approve disbursements from the Heritage Trust totaling $8.376 million; composed of $0.954 million from the Keefer Fund portion of the Heritage endowment and $7.422 million from the Heritage Fund portion of the endowment, and to be utilized for the purposes presented.
f) Final Report of the ad hoc committee on Special Action Requests [Motion]
The Chair invited Ms. Brown Andison, Chair of the Finance Committee, Dr. Coral Murrant, a member of the Ad Hoc Committee on Special Action Requests, and Ms. Megan Peres, of Fossil Free Guelph, to provide comments on the Final Report. He noted the Chair of the Ad-Hoc Committee, Mr. Paul Gallagher, was regrettably unable to attend in person and was expected to join the meeting by phone in due course.
Ms. Brown Andison explained the process surrounding the Final Report, explaining that the Finance Committee had sought clarification to a previous version of the report regarding the scope of the request, specifically if divestment was being sought for a group of companies or the industry-wide. She noted this had been clarified in the Final Report, which was brought back to the Committee who subsequently accepted the report for recommendation to the Board.
Speaking as a member of the Ad Hoc Committee, Dr. Murrant noted that the Committee grappled with the complexity of the issues and she thanked Fossil Free Guelph for providing the Committee time and space to reflect on the matter. Further, she noted the Committee had engaged in open, honest discussions, ultimately finding that the request of full divestment was too broad. In closing, she noted that she would encourage a continuation of the discussion.
The Chair asked if other members of the Ad Hoc Committee would like to comment. Mr. Bos explained that each member of the Committee brought their own perspective to the table and explained his own reasoning to not divest.
The Chair welcomed Ms. Peres and invited her to address the Board on behalf of Fossil Free Guelph. Ms. Peres expressed that she and the Fossil Free Guelph team were excited for the opportunity to speak to the Governors. She highlighted several reasons which drive the imperative to divest, including acting as allies with Indigenous communities, the University’s role as a leader in sustainability, the lack of significant financial impact on investments should the University divest, and the critical need to meet the two-degree climate goal.
The Chair thanked each for their comments and invited Nicole McCallion, Julie Foster, Spencer McGregor, Elizabeth Cyr, Isaac Bell, Keirsten Poepjes, Gabrielle McPolin, Benjamin Stuart, Owen Marshall, and Emily Qureshi of Fossil Free Guelph to the table before inviting questions or comments from the Board.
A Governor asked the representatives of Fossil Free Guelph to address the issue of Canada’s economic dependence on the fossil fuel industry. The representatives noted that the privilege of having the discussion is all the more reason to have it and that the request is not for immediate divestment, but a cease in future investments and a withdrawal in five years. Further, representatives noted that Canada as a whole should be moving towards sustainable energy. In
Minutes of January 23, 2018 [Motion] Page 22 of 220 Board of Governors Open Session Minutes | January 23, 2018
closing, they noted that institutions choosing to divest could push the government towards so doing.
In response to a question regarding whether the Ad Hoc Committee considered other universities’ responses to calls for divestment, Dr. Murrant responded that Committee had canvassed the output and reports of other Canadian universities asked to divest and only Laval had chosen to divest.
A Governor questioned the relative size of the energy sector investment to the overall portfolio. Mr. O’Leary responded that the endowment is approximately $425 million as of September 2017, $33 million of which was invested in the sector and $19 million of which is in the Canadian energy sector.
Governors questioned the binary nature of the request and asked Fossil Free Guelph representatives to further explain their reasoning, questioning if the University would be better off to reduce its exposure and focus on one or two players, recognizing its importance for the Canadian economy. Representatives responded that while it is possible, though unlikely, that there are some good actors, full divestment would be a symbolic action that would send a message. Further, they highlighted the sector’s history of social injury and that it has become increasingly necessary to show the companies that they no longer have the social license to operate.
A Governor questioned if responding to the social injury of the sector would be better facilitated through regulatory processes. Representatives agreed with the repeated statement that the matter is complex and noted that it would require a complex solution, to include policy change as well as divestment.
In response to a question regarding if the related funds are actively or passively managed, Mr. O’Leary responded that they are actively managed. The Governor asked if the University has a policy on ESG and responsible investing. Mr. O’Leary replied that it instituted a related policy approximately 18 months ago and that managers are screened accordingly. Further, the University receives annual reports on how the managers are engaged.
A Governor questioned if engaging with the companies would be a stronger approach than divestment. The representatives questioned if the University had engaged to this point. Mr. O’Leary noted it hadn’t and agreed with the representatives’ further statement that the University solitarily engaging with the companies may not influence them. However, he suggested the creation of a group of universities may be strong enough to have influence. Representatives expressed concern that the engagement would not be consequential.
Mr. Paul Gallagher joined the meeting.
President Vaccarino thanked all for the discussion, noting that it continues to be a complex issue and that the University has not as of yet reached a common purpose and understanding. He suggested that the tension stems from a lack of conclusive evidence, the divestment issue being brought forward as a binary matter, and new and emerging information, including the recent decision of New York City to divest. He recommended that the Finance and Ad Hoc Committees be given further time to reflect on the matter and table the Report at a later date.
Representatives responded that they believed there is strong evidence to support divestment and that the University making a statement is a key step forward. They also agreed to the
Minutes of January 23, 2018 [Motion] Page 23 of 220 Board of Governors Open Session Minutes | January 23, 2018
Board further discussing the matter and asked that they be physically included in subsequent discussions.
A Governor requested that the Ad Hoc Committee be asked to address the number of concerns raised at the meeting and the possibility of not providing a binary response to what was denoted to be a binary request.
The representatives asked if the item would be discussed at the April Board meeting. Ms. Brown Andison noted potential issues with the shortened timeline and that the related committees would attempt to respond as soon as possible, however, suggested a slow thinking process would best respond to the complexity of the matter.
On motion duly moved and seconded, it was
RESOLVED, that the Final Report of the Special Action Committee be referred back to the Finance Committee for further consideration and reflection in light of the discussion and new information raised at the Board meeting of January 23, 2018; and, FURTHER RESOLVED, that Fossil Free Guelph be engaged in related future discussions with the Finance Committee of the Board of Governors.
Mr. Golding and Mr. Bos abstained from the vote.
e) University of Guelph and University of Guelph-Humber Semester Reports
Ms. Brown Andison referred Governors to the related information enclosed in the meeting materials and asked Dr. John Walsh to provide an update on the strike impact.
Dr. Walsh noted that the submission in the meeting materials had been prepared in mid- December, working off the most complete information available at that time. He then explained that the financial impact of the strike is significantly lower than anticipated, as fewer students had not registered than estimated. In addition, he highlighted the potential ongoing impacts of the strike on applications and the strike relief fund, which students can apply to until April 1, 2018. In closing, he explained that Guelph-Humber expects to beat the approved budget and the financial impact of the strike on revenue is significant lower than expected.
d) Preliminary Budget Overview 2018-19
Ms. Brown Andison directed Governors attention to the preliminary budget overview, noting that the recent changes in the funding formula by the Ministry significantly impacts the budget approach. She asked Provost Yates to present the overview to the Board.
Provost Yates directed Governors attention to the related slides, previously disseminated to the Board. She noted that she and Mr. Baker had begun working on the immediate budget for next year, which she stated would need to shift from a hybrid performance-based and incremental budget due to changes related to the new funding formula and to heighten the transparent and deliberative nature of the budget. She then discussed the significant challenge for the University in balancing revenues and costs while considering the need to sustain and enhance the Guelph experience. While emphasizing that the University is in a strong financial position, the explained that the University would need to think creatively and strategically about how to best improve revenues. In closing, she noted that all units are preparing their budgets and that the
Minutes of January 23, 2018 [Motion] Page 24 of 220 Board of Governors Open Session Minutes | January 23, 2018
University is looking to refine revenue and cost assumptions, to be further discussed at the Finance Committee meeting in February.
In response to a question regarding the potential impact of the JSPP on the budget, Mr. O’Leary responded that if instituted, there would be a positive impact.
5. Audit & Risk Committee Report
a) Report from Committee Chair
Referring to information included within the meeting materials, Mr. Parkinson provided a brief overview of recent Committee activities, highlighting that the Committee is pleased with the work of the new Chief Internal Auditor and that the University has seen encouraging growth in its IT security capacities.
6. Physical Resources and Property Committee Report
a) Report from Committee Chair
Referring to the meeting materials, Mr. Graham Badun provided an update on the recent activities of the Committee, highlighting that the Committee has monitored a significant amount of investments over the last few years.
7. Move to Closed Session
a) Adjourn Open Session and Move into Closed Session [Motion]
On motion duly moved and seconded, it was RESOLVED, that the Board of Governors move into closed session and that Daniel Atlin, Malcolm Campbell, Ben Doadt, Jackie Gillis, Virginia McLaughlin, Mary Murphy, Don O’Leary, Sarah Willey-Thomas, and Charlotte Yates, be invited to remain for the closed session of the meeting.
______Kevin Golding Gen Gauthier-Chalifour Chair, Board of Governors University Secretary
Minutes of January 23, 2018 [Motion] Page 25 of 220 Page 26 of 220
To: Members of the Board of Governors
From: Gen Gauthier-Chalifour, University Secretary
Subject: 2. President’s Report
Meeting: April 20, 2018
a) Report on University Activities
The President’s report to the Board of Governors on recent activities and events of interest will be distributed at the meeting, and the President will provide additional comments and remarks at that time.
b) Faculty Appointments Report
A report on faculty appointments, including tenure and promotions for the period of September 2017 to March 2018, is provided for information in the online supporting documents1 folder.
1 URL https://uoguelph.civicweb.net/filepro/documents/146757
N:\BOG\BOG Meetings\2017-2018\5. April 20, 2018\Cover Memos\2_President's Report.docx
Report on University Activities Page 27 of 220 Page 28 of 220
To: Members, Board of Governors
From: Ben Doadt, Associate University Secretary
Subject: 3. Audit & Risk Committee Report
Meeting: April 20, 2018
a) Report from Committee Chair
The following is provided for the information of Governors. At its meeting on March 20, 2018, the Audit & Risk Committee:
• Reviewed and discussed the committee’s work plan • Received an update on sector issues • Considered and approved for recommendation to the Pensions Committee the 2017 University of Guelph Audited Pension Plan Statements [refer to item 6a] • Received an update on recent activities from the External Auditor • Received an update on activities from the Chief Internal Auditor • Received an update on University of Guelph-Humber audit • Received an update on University Risk Management, including a review of a draft risk appetite statement for the University [to be addressed at the June 2018 Board meeting] • Received an update on legal affairs • Received and reviewed the 2017-18 Insurance Coverage and Claims Report • Received an update on the annual review of IT systems security • Received an update on communications, public affairs and government relations • Discussed plans for annual assessment of the External Auditor • Discussed plans for the annual committee evaluation survey
2017-18 Audit & Risk Committee Membership Neil Parkinson, Chair Rich Appiah Graham Badun Mary Deacon Eleanor Fritz Paul Gallagher Kevin Golding, Board Chair Ben Doadt, Associate University Secretary (non-voting)
N:\BOG\BOG Meetings\2017-2018\5. April 20, 2018\Cover Memos\3a_Audit_Report from Chair.docx
Report from Committee Chair Page 29 of 220
Report from Committee Chair Page 30 of 220
To: Members, Board of Governors
From: Ben Doadt, Associate University Secretary
Subject: 4. Finance Committee Report
Meeting: April 20, 2018
a) Report from Committee Chair
The following is provided for the information of Governors. At its meetings on February 7, February 27 and April 4, 2018, the Finance Committee:
• Reviewed and discussed the committee’s work plan • Received an update on sector issues • Received presentations from and engaged in discussion with the Student Budget Committee, Central Student Association and Graduate Student Association, with respect to the annual budget plan for 2018-19 • Received University of Guelph and University of Guelph-Humber Semester Reports • Received a report from Investment Subcommittee • Considered and approved, for recommendation to the Board of Governors, the 2018-19 University of Guelph Budget Plan [refer to item 4d] • Considered and approved, for recommendation to the Board of Governors, the 2018-19 University of Guelph-Humber Budget [refer to item 4c] • Considered and approved, for recommendation to the Board of Governors, the 2018-19 University Centre Operating Budget [refer to item 4b] • Received Student Financial Support 2016-17 Annual Report [refer to item 4e] • Received an update on the Special Action Request for divestment from fossil fuels [refer to item 4f] • Received and reviewed credit ratings reports • Received an update on fundraising [to be addressed in closed session] • Considered and approved, for recommendation to the Board of Governors, the 2017-18 Real Estate Division Budget and Business Plan [to be addressed in closed session] • Discussed plans for the committee evaluation survey
2017-18 Finance Committee Membership Nancy Brown Andison, Chair Andrew Marsh Carolyn Augusta Coral Murrant Nancy Croitoru Prashant Pathak Lindsey Fletcher Irene Thompson Kevin Golding, Board Chair Franco Vaccarino, President Ben Doadt, Associate University Secretary (non-voting)
N:\BOG\BOG Meetings\2017-2018\5. April 20, 2018\Cover Memos\4a_Finance-Report from Chair.docx
Report from Committee Chair Page 31 of 220 Page 32 of 220
To: Members, Board of Governors
From: Ben Doadt, Associate University Secretary
Subject: 4. Finance Committee Report
Meeting: April 20, 2018
b) 2018-19 University Centre Operating Budget [Motion]
At its meeting April 4, 2018, the Finance Committee reviewed and considered the proposed 2018-19 University Centre Operating Budget.
The University Centre Board reports to the Board of Governors and operates on a cost-recovery basis, and its constitution stipulates that it shall submit an annual budget for approval by the Board of Governors. Because of this submission and reporting requirement, the University Centre operating budget is enclosed for consideration of the Board.
The following motion is presented on recommendation of the Finance Committee.
The Board of Governors is asked to, RESOLVE, that the Board of Governors accept and approve the proposed 2018-2019 University Centre Operating Budget, as presented.
N:\BOG\BOG Meetings\2017-2018\5. April 20, 2018\Cover Memos\4b_Finance-UC Budget.docx
2018-19 University Centre Operating Budget [Motion] Page 33 of 220 Page 34 of 220
UNIVERSITY OF GUELPH
UNIVERSITY CENTRE
2018/2019 BUDGET
2018-19 University Centre Operating Budget [Motion] Page 35 of 220
UNIVERSITY CENTRE
2018/2019 BUDGET
TABLE OF CONTENTS
Introduction/Operational Summary...... 1
Current Year 2017/2018...... 1
Budget Year 2018/2019...... 2
Revenue Assumptions...... 2
Expenditure Assumptions...... 3
Table A - 2017/2018 Forecast to Budget Comparison...... 4
Table B – 2018/2019 Department Operating Budget...... 5
Capital Plan 2019 - 2022...... 6
2018-19 University Centre Operating Budget [Motion] Page 36 of 220
UNIVERSITY CENTRE 2018/2019 BUDGET
INTRODUCTION
The University Centre is aware of the financial constraints facing the University this fiscal year and the need to maintain tighter management and operational controls in order to achieve the 2018/2019 fiscal requirements. This budget reflects the style of management which will enable the University Centre to continue as a viable entity. The University Centre Board reports to the Board of Governors and is operated on a cost recovery basis. The University Centre utilizes standard commercial principles in its business operations, and applies contribution towards non- profit events that enhance the University community life. Its organizations and services offered under the umbrella of UC Services are outlined below.
OPERATIONAL SUMMARY
Operationally, the University Centre reports through a University Centre Board of 20 members. This Board has a direct reporting relationship to the University’s Board of Governors.
The Directorate’s overall purpose is to be the focus for the University as a community, providing those social, recreational and cultural activities that are not normally provided through the academic curriculum or other University services. To accomplish this, the University Centre provides services through the management and operations of the following functional areas.
Brass Taps - A fully licensed lounge, licensed under the Alcohol and Gaming Commission of Ontario with a seating capacity of 500.
Programming/University Centre Events - Entertainment and cultural events, including Fairs and Performances, initiated and run by the University Centre, and short term vendor rentals in the Central Courtyard.
Director’s Office and Administration - Administrative support for the Directorate.
Building Management - Leases and services including room reservations, meeting room set-ups, table reservations in the Central Courtyard and locker rentals in addition to managing the physical aspects of the building.
BUDGET YEAR 2017/2018 (Forecast to Budget Comparison)
This has been a successful year for the University Centre in financial terms. Overall, revenues are anticipated to be some $55,000 above budget, due to increase in revenues from Brass Taps and Building Management.
1
2018-19 University Centre Operating Budget [Motion] Page 37 of 220
The variances in expenditure line items are reflective of increased revenue and vacancy savings. Cost of Materials are up by $5,000 reflecting sales increases and Personnel costs are down by $10,000 reflecting vacancy savings. Renovations are higher by $80,000 reflecting improvements and upgrades to meeting rooms. Overall, total Expenditures are projected to be $75,000 higher than the budgeted level.
Deficit before Net Transfers is projected to be $388,000 and after Net Transfers of $408,000, the projected Increase in Fund Balance is $20,000 compared to a budgeted Increase in Fund Balance of $40,000.
BUDGET YEAR 2018/2019
The Budget Year 2018/2019 will be similar to the current fiscal year’s experience. The number of registered students will approximate the current year.
Price increases for goods and services offered will be based on increased operating costs. Operating costs, other than labour, are expected to increase in the 2-3% range. Full-time salaries and benefits will increase in accordance with the collective agreements with employee groups while part-time wages will increase based on minimum wage legislation. Renovations are budgeted at $180,000. The net result of these assumptions will be a deficit of $380,000 before Net Transfers and a final surplus of $30,000 after Net Transfers of $410,000 are considered.
2018/2019 BUDGET ASSUMPTIONS
The UC Board continues its comprehensive review of the governance/structure and management/operations of the University Centre with the goal of identifying areas of improvement and to make recommendations on how services being provided to spaceholders, stakeholders and the broader University community can be further strengthened. The management/operations aspect of the review was completed in September 2017 with the selection of the current UC Management to run the UC operations. It is anticipated that the final component of this review will be completed prior to September 2018. The 2018/2019 Budget assumptions do not include any impact, if any, from the recommendations resulting from the review process. The 2018/2019 Budget has been prepared based on operations and activities of the University Centre remaining the same as in previous years and will be similar to previous years experience.
REVENUES ($2,690,000)
Brass Taps ($1,400,000) Prices to increase based on increase in product, labour and other operating costs. In addition, entertainment programming will continue to be strengthened. The emphasis on increasing food sales will continue given this year’s success and the number of first-year students who are under the drinking age. 2
2018-19 University Centre Operating Budget [Motion] Page 38 of 220
Other Revenue ($1,290,000) Student numbers will approximate the current year while fees will increase 1.7%.
Lease rates to increase 1.5%, Room Rental revenues to remain constant.
Event Ticket Sales to be competitive with an emphasis on events that generate positive contribution levels.
EXPENDITURES ($3.070,000)
Cost of Materials ($570,000) Material costs for beverage and food are a blended variable cost which is targeted at 40% of revenues. When these costs are reported against all revenues, the overall ratio is 21%.
Personnel Costs ($1,310,000) Full-time salaries and benefits have been increased in accordance with University of Guelph budget assumptions and in line with the collective labour agreements. Part-time wages to reflect minimum wage legislation.
Institutional Charges ($580,000) These costs will increase 1.5% as directed by the University Budget Office.
Operating Costs ($420,000) Operating costs are variable and are expected to increase 2-3%, but these increases will be offset by efficiencies of scale.
Renovations ($180,000) Costs allocated to upgrade Brass Taps facility, Meeting rooms and Building Improvements.
NET TRANSFERS ($410,000)
Internal Transfer of funds from the University for Leased Space and shared costs is estimated to be $410,000.
3
2018-19 University Centre Operating Budget [Motion] Page 39 of 220
University of Guelph University Centre 2017/2018 Forecast To Budget Comparison In Thousands $
2017/2018 2017/2018 2017/2018 Forecast Budget Variance ______Revenue
Brass Taps 1,380 52% 1,355 52% 25 Other Revenue 1,257 48% 1,227 48% 30
Total Revenue 2,637 100% 2,582 100% 55
Expenses
Cost of Materials 555 21% 550 21% (5) Personnel 1,260 48% 1,270 49% 10 Institutional Charges 570 22% 570 22% 0 Operating 420 16% 420 16% 0 Travel 10 0% 10 0% 0 Renovations 210 8% 130 5% (80)
Total Expenses 3,025 115% 2,950 114% 75
Income (Deficit) Before Transfers (388) -15% (368) -14% (20)
Net Transfer 408 15% 408 16% 0
Increase (Decrease) In Fund Balance 20 1% 40 2% (20)
Unappropriated Fund Balance – Opening 632 632
Unappropriated Fund Balance – Closing 652 672 ======
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2018-19 University Centre Operating Budget [Motion] Page 40 of 220 University of Guelph University Centre 2018/2019 Operating Budget In Thousands $
2016/2017 2017/2018 2018/2019 Actual Forecast Budget ______Revenue
Brass Taps 1,398 51% 1,380 52% 1,400 52% Other Revenue 1,334 49% 1,257 48% 1,290 48%
Total Revenue 2,732 100% 2,637 100% 2,690 100%
Expenses
Cost of Materials 536 20% 555 21% 570 21% Personnel 1,109 41% 1,260 48% 1,310 49% Institutional Charges 564 21% 570 22% 580 22% Operating 449 15% 420 16% 420 16% Travel 4 0% 10 0% 10 0% Renovations (Note 1) 199 7% 210 8% 180 7%
Total Expenses 2,861 108% 3,025 115% 3,070 114%
Income (Deficit) Before Transfers (129) -5% (388) -15% (380) -14%
Net Transfer 314 11% 408 15% 410 15%
Increase (Decrease) In Fund Balance 185 7% 20 1% 30 1%
Unappropriated Fund Balance - Opening 447 632 652
Unappropriated Fund Balance – Closing 632 652 682 ======
Notes: Net of Capital Assets, Amortization and Transfer to Appropriated Fund
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2018-19 University Centre Operating Budget [Motion] Page 41 of 220
CAPITAL PLAN 2019/2022
2018/2019 ($180,000)
Thirty thousand dollars for Brass Taps Improvements One hundred fifty thousand dollars for Meeting Room & Building Improvements
2019/2020 (160,000)
Thirty thousand for Brass Taps Improvements One hundred thirty thousand dollars for Meeting Room & Building Improvements
2020/2021 (100,000)
Twenty thousand for Brass Taps Improvements Eighty thousand dollars for Meeting Room & Building Improvements
2021/2022 (90,000)
Twenty thousand for Brass Taps Improvements Eighty thousand dollars for Meeting Room & Building Improvements
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2018-19 University Centre Operating Budget [Motion] Page 42 of 220
To: Members, Board of Governors
From: Ben Doadt, Associate University Secretary
Subject: 4. Finance Committee Report
Meeting: April 20, 2018
c) 2018-19 University of Guelph-Humber Budget [Motion]
At its meeting April 4, 2018, the Finance Committee reviewed and considered the enclosed 2018-19 University of Guelph-Humber budget.
Governors are reminded that the budget year-end for the University of Guelph-Humber is March 31st, following that of the college system and Humber College Institute of Technology and Advanced Learning (Humber College). The University’s year-end is April 30th.
Annually, the governing boards for the University of Guelph and Humber College each consider and approve a preliminary Guelph-Humber operating budget. The 2018-19 budget proposal was considered and approved by the Humber College Board of Governors at its meeting March 27, 2018.
The following motion is presented on recommendation of the Finance Committee:
The Board of Governors is asked to, RESOLVE, that the Board of Governors accept and approve the proposed 2018-19 University of Guelph-Humber Budget, as presented.
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2018-19 University of Guelph- Humber Budget [Motion] Page 43 of 220 Page 44 of 220
University of Guelph-Humber
Draft
Proposed 2018-2019 Budget
February 26, 2018
2018-19 University of Guelph- Humber Budget [Motion] Page 45 of 220 University of Guelph-Humber Proposed 2018-2019 Budget For the Fiscal Period April 1, 2018 to March 31, 2019
Introduction
The end of the fiscal year March 31, 2018 marks sixteen years of operation for the University of Guelph-Humber, a joint venture between the University of Guelph and Humber College Institute of Technology and Advanced Learning. The objective of the joint venture is to offer students the opportunity to receive both a college diploma and a university honours degree integrated into one program. The budgeted enrolment for 2017-2018 was 4,700 FTE’s (full time equivalent) and actual enrolment is forecast at 4,700 FTE’s as of November 2017. The budgeted enrolment for 2018-2019 is being maintained at the equivalent of 4,700 FTE’s (refer to Chart 1, below).
Note, with the move to corridor funding it is probably more useful to begin reporting enrollment as full-time and part-time headcount rather than an FTE count.
University of Guelph-Humber Fall Full Time Equivalent Enrolment Actual & Forecast
5,000
FTE's 4,000
3,000
2,000
1,000
- 08/09 09/10 10/11 11/12 12/13 13/14 14/15 15/16 16/17 17/18 18/19 Series1 2,737 3,035 3,340 3,597 3,719 3,870 4,143 4,492 4,700 4,700 4,700
Discussion of the proposed 2018-2019 University of Guelph-Humber budget includes the following:
(1) 2018-2019 Budget Context and Assumptions (2) 2018-2019 Revenue Expectations (3) 2018-2019 Expense Estimates (4) 2017-2018 Forecast Year-End Results (5) 2018-2019 Summary of Proposed Budget
2
2018-19 University of Guelph- Humber Budget [Motion] Page 46 of 220 University of Guelph-Humber Proposed 2017-2018 Budget For the Fiscal Period April 1, 2017 to March 31, 2018
(1) 2018-2019 BUDGET CONTEXT & ASSUMPTIONS:
The key assumptions for the proposed 2018-2019 budget are: • 2018-2019 grant revenue estimate is based on Corridor Funding during SMA2; • Target enrolment is equivalent of 4,700 FTE’s 4900 full and part-time students • 2018-2019 tuition for University of Guelph-Humber is approved by the Board of Governors, University of Guelph and estimated on 4900 full and part-time students; • Non Tuition (Mandatory) fees are approved by the Board of Governors, Humber College with the exception of the Distance Education Resource; • Operating costs reflect a continued management and administrative charge of $4.000 million to be shared equally by both institutions; • Service agreements are increased by 2.0% over previous year;
(2) 2018-2019 REVENUE EXPECTATIONS:
The revenue for 2018-2019 has been estimated by University of Guelph including student non- tuition (mandatory) fees as approved by Humber ITAL, and miscellaneous income, the estimated total revenue for 2018-2019 is $69.025 million. (Refer to Table 1)
University of Guelph-Humber Revenue Estimate ($ million)
Core Operating Grant $31.705
Adjusted Grants $2.293
Municipal Tax Grant $0.353 Total Government Grants $34.351 Student Tuition Fees $34.233
Student Non-Tuition (Mandatory) Fees $0.381 Miscellaneous Income $0.060 Total Revenue $69.025
3
2018-19 University of Guelph- Humber Budget [Motion] Page 47 of 220 University of Guelph-Humber Proposed 2017-2018 Budget For the Fiscal Period April 1, 2017 to March 31, 2018
Non-Tuition (Mandatory) Fees
The non-tuition (mandatory) fees that constitute revenue for the University of Guelph-Humber are as follows:
2017-2018 2018-2019 Non-Tuition Mandatory Fees: Full-Time Full-Time Part-Time Per Semester Per Semester Alumni $3.75 $3.75 20% of full-time fee Convocation $16.24 $16.24 20% of full-time fee Library Collection $5.64 $5.64 20% of full-time fee Identity Management/Photo ID $3.65 $3.65 20% of full-time fee Transcript $2.39 $2.39 20% of full-time fee
Transition & Leadership $8.81 $8.81 20% of full-time fee
Distance education resource $75.00/course $75.00/course $75.00/course
(3) 2018-2019 EXPENSE ESTIMATES:
The total proposed expenses for 2018-2019 are $48.522 million based on an estimated enrolment.
Academic Expenses Academic expenses consist of two major components: Course Delivery transfers to each institution and Direct Academic Expenses including course development, faculty and student transportation and course website delivery. A Discretionary Fund of $0.300 million which consists of the Research Grant Fund and Study Abroad support has been included in overall Academic Expenses for a total of $21.280 million.
Library Services It is proposed to increase library services to $2.404 million. This increase reflects operational increases such as collections and service agreements and possible exchange rate implications.
Information Technology Information technology costs are planned to be $3.825 million a modest increase over prior year due to service agreements and payroll increases.
Recruitment Overall, the cost is expected to increase to $2.216 million, primarily due to increases in promotional activities and payroll increases.
4
2018-19 University of Guelph- Humber Budget [Motion] Page 48 of 220 University of Guelph-Humber Proposed 2017-2018 Budget For the Fiscal Period April 1, 2017 to March 31, 2018
Registrarial Services It is proposed to increase registrarial services to $2.088 million, primarily due to additional staff and increased operating expenses.
Student Aid The proposed student aid budget for 2018-2019, is estimated at $5.817 million reflecting expected student award disbursements including scholarships, bursaries, and tuition set-aside.
Student Life (Alumni and Career Services) Student Life costs are planned to increase to $2.823 million, a slight increase over prior year due to increased operating expenses.
Physical Resources Building maintenance, cleaning, and utilities have increased by 2.0% to $1.714 million, reflecting increases in the cost of service agreements.
Administrative Support Administrative support costs are expected to be $2.053 million. This mainly due to the operations of the new external Public Relations initiative.
Management and Administrative Fee A Management and Administrative Fee of $4.000 million, remains the same as in previous years.
Amortization of Capital Assets Capital equipment is amortized over 3 to 5 years and site improvements over 10 years. It is assumed that new purchases are made at the mid-point of the budget year. An estimate of $0.302 million is provided for amortization of capital assets in 2018-2019.
Capital Budget A Capital Plan is described in Table 2.
(4) 2017-2018 FORECAST YEAR-END RESULTS
The year-end forecast for 2017-2018 is summarised in Table 1.
Forecast Revenue for 2017-2018 was $65.576 million which is $2.508 million less than originally budgeted due to the possible impact of the College labour disruption.
Operational Expenses for 2017-2018 Year-End were forecast at $45.996 million. This represents savings of 3.9 % on the approved budget.
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2018-19 University of Guelph- Humber Budget [Motion] Page 49 of 220 University of Guelph-Humber Proposed 2017-2018 Budget For the Fiscal Period April 1, 2017 to March 31, 2018
The overall effect of these variances from the 2017-2018 approved budget is a Total Revenue of $65.576 million, Total Expenses of $45.996 million and Excess of Revenue over Expenses of $19.580 million, which is $.650 million less than budgeted.
(5) 2017-2018 SUMMARY OF PROPOSED BUDGET
The proposed budget for 2018-2019 projects Total Revenue of $69.025 million reflecting expected government grant, tuition increases and Non-Tuition (Mandatory) Fees estimates.
Total Expenses in the proposed budget for 2018-2019 are estimated at $48.522 million with a projected Excess of Revenue over Expenses of $20.503 million.
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2018-19 University of Guelph- Humber Budget [Motion] Page 50 of 220 Humber Budget [Motion] 2018 University of Guelph-Humber
- Proposed 2018-2019 Budget 19 University of Guelph For the Fiscal Period April 1, 2018 to March 31, 2019
Table 1 - 2018-2019 Draft Proposed Budget with added Budget to Forecast Variance Comparison
Eight Month Proposed Proposed Proposed Proposed Approved Year-End Budget to Budget to Proposed Budget to Budget to Budget to Budget to Budget Forecast Forecast $ Forecast % Budget Forecast Forecast % Budget Budget % 2017-2018 2017-2018 Variance Variance 2018-2019 Variance Variance Variance Variance (A) (B) (C) (D) (E) (F) (G) (H) (I)
(B-A) (C/A) (E-B) (F/B) (E-A) (H/A) - REVENUE Government Grants 33,300,000 32,367,000 -933,000 (2.8%) 33,998,000 1,631,000 5.0% 698,000 2.1% Student Tuition Fees 33,990,000 32,420,000 -1,570,000 (4.6%) 34,233,000 1,813,000 5.6% 243,000 0.7% Student Non-Tuition Mandatory Fees 381,000 376,000 -5,000 (1.3%) 381,000 5,000 1.3% - 0.0% Municipal Tax Grant 353,000 353,000 0 0.0% 353,000 - 0.0% - 0.0% Miscellaneous Income 60,000 60,000 0 0.0% 60,000 - 0.0% - 0.0% Total Revenue 68,084,000 65,576,000 -2,508,000 (3.7%) 69,025,000 3,449,000 5.3% 941,000 1.4% EXPENSE Academic 20,983,000 20,673,000 (310,000) (1.5%) 21,280,000 607,000 2.9% 297,000 1.4% Library Services 2,375,000 1,538,000 (837,000) (35.2%) 2,404,000 866,000 56.3% 29,000 1.2% Information Technology 3,756,000 3,384,000 (372,000) (9.9%) 3,825,000 441,000 13.0% 69,000 1.8%
Recruitment 2,117,000 1,988,000 (129,000) (6.1%) 2,216,000 228,000 11.5% 99,000 4.7% Registrarial Services 1,926,000 2,026,000 100,000 5.2% 2,088,000 62,000 3.1% 162,000 8.4%
Student Aid 5,807,000 5,807,000 - 0.0% 5,817,000 10,000 0.2% 10,000 0.2% Student Life & Services 2,786,000 2,576,000 (210,000) (7.5%) 2,823,000 247,000 9.6% 37,000 1.3%
Physical Resources 1,681,000 1,681,000 - 0.0% 1,714,000 33,000 2.0% 33,000 2.0%
Page 51 of 220 Administrative Support 1,958,000 1,858,000 (100,000) (5.1%) 2,053,000 195,000 10.5% 95,000 4.9% Management and Administrative Fee 4,000,000 4,000,000 - 0.0% 4,000,000 - 0.0% - 0.0% Sub-Total Operational Expenses 47,389,000 45,531,000 (1,858,000) (3.9%) 48,220,000 2,689,000 5.9% 831,000 1.8% Amortization of Capital Assets 465,000 465,000 - 0.0% 302,000 (163,000) (35.1%) (163,000) (35.1%) Total Expenses 47,854,000 45,996,000 (1,858,000) (3.9%) 48,522,000 2,526,000 5.5% 668,000 1.4% Excess of Revenue over Expenses 20,230,000 19,580,000 (650,000) (3.2%) 20,503,000 923,000 4.7% 273,000 1.3% Target Full Time Equivalent Students 4,700 4,700 0.0% 4,700 0.0% 0.0%
7
University of Guelph-Humber Proposed 2018-2019 Budget For the Fiscal Period April 1, 2018 to March 31, 2019
Table 2 - 2018-2019 Capital Plan
Capital Account Financial Plan Proposed 2018-2019
Lecture Capture Pilot 230,000 Media Studies - Miscellaneous Equipment 100,000
Total Expense 330,000
8
2018-19 University of Guelph- Humber Budget [Motion] Page 52 of 220
To: Members, Board of Governors
From: Ben Doadt, Associate University Secretary
Subject: 4. Finance Committee Report
Meeting: April 20, 2018
d) 2018-19 University of Guelph Budget [Motion]
At its meeting April 4, 2018, the Finance Committee reviewed and considered the University of Guelph 2018-2019 Budget. The enclosed 2018-19 Budget and accompanying appendices is a consolidated document that incorporates the following:
• General Operating Budget o Including tuition fees, operating grants, compensation, and infrastructure costs
• Ancillary Unit Budgets o University Centre Administration (see agenda item 4b) o Hospitality Services, Student Housing Services, and Parking and Sustainable Transportation Services are available in the on-line supporting materials folder o Real Estate Division (to be addressed in closed session)
• University Capital Plan o As approved by the Board in January 2018.
The budget was presented to Senate at its meeting on April 9, 2018 and a summary of the comments received is enclosed for information.
By way of additional background, information presented and provided to the Finance Committee on February 27, 2018 by the Student Budget Committee, and by the Central Student Association, is provided in the online Supporting Materials folder.
The following motion is presented to the Board of Governors, on recommendation of the Finance Committee:
The Board of Governors is asked to, RESOLVE, that the Board of Governors accept and approve the proposed 2018-2019 University of Guelph Budget Plan, as presented.
OMAFRA Agreement Budget
On February 13, 2018, the University of Guelph announced the renewal of its agreement with the Ontario Ministry of Agriculture, Food, and Rural Affairs (OMAFRA) for another 10 years. As a result of the timing of the agreement, the joint leadership and program management are proceeding with detailed budget development and program implementation planning. Thus, it is
2018-19 University of Guelph Budget [Motion] Page 53 of 220 anticipated that the OMAFRA Agreement Budget, including revenue, expense and program allocations, will be considered by the Finance Committee in May and subsequently by the Board of Governors at its meeting scheduled for June 8, 2018.
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2018-19 University of Guelph Budget [Motion] Page 54 of 220
To: Members, Board of Governors
From: Gen Gauthier-Chalifour, University Secretary
Subject: Comments from Senate on 2018-19 Budget Plan
Senate Meeting – February 5, 2018
At its meeting February 5th, Senate received a presentation from the Provost on budget planning and the assumptions used to the formulate the 2018-19 budget plan. An excerpt of the approved minutes from the February 5, 2018 meeting are provided below for the information of Governors:
Dr. Yates was invited to provide Senate with an initial planning presentation related to the 2018- 19 budget.
Dr. Yates first provided an overview of the University’s operating budget framework, noting that to date, the University has primarily had an incremental budget with some pieces of performance-based funding. However, she noted that partly due to constraints due to the new corridor funding formula, the Ministry’s increasing focus on using metrics for the allocation of resources to universities, and the need for the University to re-examine how to best allocate budgets, the University will begin to examine the foundation for its budgets. She noted that this year’s budget process has and will continue to maintain a focus on a deliberative budget process, incorporating the viewpoints of several stakeholders, including deans, faculty, students, and employees. She then provided an overview of the budget base for 2017-18, highlighting that the University is more heavily reliant on government grants than other universities, partly due to its heavy dependence on domestic undergraduate students. Having established the different planning context as well as the income and expense bases, she provided a three-year baseline for the budget. In closing, she noted that she would bring the budget back to Senate once it was completed within six weeks.
The Chair welcomed any questions or comments.
A Senator noted the University has begun expanding supports for international students now that it has a heavier reliance on international tuition for revenue and questioned if the University has a plan for ensuring these supports are accessible and if international students will be consulted. Dr. Yates clarified that international students are not a budget solution and that one of the issues that students and faculty have raised is that there isn’t enough international content or work with people internationally to enrich the experience at the University. She also noted that a proposal for supports has been submitted to her and that she will start engaging in conversations with students and departments.
A Senator questioned if the budgeting allocations (e.g. the amount of money the University spends on a per-student, per-college basis) will be presented across colleges in a reasonably accessible way. Dr. Yates responded that there would be considerable difficulty in determining the amount spent in such a way as it would overlook, for example, faculty investments, SAG investments, or student aid. She offered to have a follow-up conversation with the Senator and the AVP (Institutional Research and Planning), Karen Menard, to determine how to best capture the metric.
2018-19 University of Guelph Budget [Motion] Page 55 of 220 Senate Meeting – April 9, 2018
At its meeting April 9th, the Provost provided Senate with an additional presentation and overview of the proposed 2018-19 Budget Plan.
Questions and comments were invited, and included the following:
• A Senator asked for clarification on what is meant by “performance based funding” o The Provost explained that a portion of the university’s funding from the province will be based on performance as measured against certain metrics, although the exact nature of a performance based funding envelope has not yet been determined
• A Senator commented that in their observation, over the past decade there has been significant increases in student enrolment and financial reserves at the university, but little to no accompanying increase in faculty o The Provost clarified that a review of data since 2013 demonstrates an enrolment increase of 5.6%, and a comparable increase in the faculty complement which is contributing to a correction in this regard
• A Senator requested whether it would be possible to obtain statistics on expenditures on a per student per college basis o The Provost advised the university is increasing its institutional analysis and data management capacity and it is expected such data can be produced in future and as the university moves to a new budget model o The Provost also cautioned that not all students are funded equally, and that due to the university’s comprehensive nature cross-subsidizing students is sometimes necessary
• A Senator questioned why teaching and non-teaching units were being treated equally in terms of contributions based on carry-forward levels, and suggested that some capital and other investments in non-teaching units be delayed to ease the burden on teaching units o The Provost advised that such an approach was considered (with respect to handling of teaching and non-teaching units), and noted that many non-teaching units are critical to student success, such as student affairs o The Provost also observed that college reserves are increasing more rapidly than non-teaching units
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2018-19 University of Guelph Budget [Motion] Page 56 of 220
BUDGET PLAN 2018 2019
Prepared for the Board of Governors
April 20, 2018
2018-19 University of Guelph Budget [Motion] Page 57 of 220
University of Guelph Budget Plan 2018 2019
2018-19 University of Guelph Budget [Motion] Page 58 of 220 Contents
A. Executive Summary ...... 1 Highlights of the 2018 2019 Operating Plan ...... 3 1. The General Operating Budget ...... 3 2. OMAFRA Agreement ...... 3 3. Ancillary ...... 4 4. Capital ...... 4 Fiscal Context ...... 5 B. General Operating Fund ...... 7 Student Income ...... 8 University Degree Programs ...... 8 Diploma Programs ...... 11 Other Student Fees ...... 11 University of Guelph Humber ...... 12 Provincial Operating Grants ...... 13 Inter Fund Transfers ...... 14 Compensation ...... 15 Employee Benefits ...... 16 Infrastructure Costs ...... 18 Central Utilities ...... 18 Space Costs ...... 19 Capital Infrastructure Debt Servicing ...... 19 Information Technology (IT) ...... 19 i Library Information Services ...... 20 Support Services ...... 20 Student Aid ...... 20 Academic Activity Based Funds ...... 22
Graduate Enrolment Support: ...... 22 Research Support Funds: ...... 23 Incremental Funding ...... 23
Table of Contents Balancing the 2018 2019 Budget ...... 23 Balance Budget Contribution ...... 23 Financial Reserves ...... 24 Summary of General Operating Fund Revenue and Expense Additions ...... 25
2018-19 University of Guelph Budget [Motion] Page 59 of 220
C. OMAFRA Agreement ...... 27 D. Ancillary Units ...... 28 Combined Ancillary Unit Budget Table 2018 2019...... 29 Highlights for Ancillary Units for 2018 2019 ...... 30 E. Capital Plan 2017 2018 ...... 34 Prioritizing Capital Projects ...... 34 Debt Capacity ...... 36 Financing Costs ...... 37
ii
Table of Contents
2018-19 University of Guelph Budget [Motion] Page 60 of 220 2018-19 University of Guelph Budget [Motion] Page 61 of 220 Executive Summary
A. Executive Summary
The University’s financial planning begins each year with the Budget Plan in which major operational opportunities and risks are evaluated and resources allocated for both non-discretionary costs and initiatives in support of the University’s primary academic mission. Expense priorities include direct expenses of salaries and benefits as well as the maintenance of the University’s physical and service infrastructure that will help sustain strong academic performance and allow us to remain competitive in both attracting high quality students and recruiting the best faculty and staff.
Overall, the University of Guelph continues to be in a sound financial position. The University’s current financial strength is measured by strong liquidity, manageable debt and flexibility to weather external influences. We continue to see strong demand for our academic programs. For 2018 2019 and onwards, the institution must develop a plan on how to manage steady cost increases when our traditional revenue growth opportunities have become constrained.
With the introduction of an enrolment “corridor” in which grants remain at a fixed level, enrolment growth at universities will not generate incremental provincial grants. This places a greater reliance on other sources of revenue such as the expected growth in performance based provincial funding as defined in the negotiated “Strategic Mandate Agreement” (SMA). The SMA is the major process by which the province advances its agenda of institutional differentiation, enhanced student experience and success, and financial sustainability.
The significant change in provincial funding along with expected flat domestic enrolment will soften revenue growth for 2018 2019. The University’s capacity to refocus efforts to realign resources in response to the province’s new agenda will require careful planning. The additional revenues will cover most of our expected cost increases and provide funding for a number of targeted initiatives. As the planned expenditure will be greater than the expected revenues, the University is projecting an in-year deficit of $5.9 million. Based on our healthy level of reserves, contributions will be made by each College and major 1 Division to balance the budget.
Budgeting at the University is a continuous process that begins with setting overall assumptions at the beginning of each fiscal year and monitoring progress through the following twelve months. Setting the initial assumptions provides the overall fiscal framework for the year in which the University is expected to
operate. As with any set of assumptions, actual results will differ. The most significant milestone to measure results against assumptions occurs when fall enrolments are confirmed.
This document summarizes the 2018 2019 fiscal planning across the major operating activities of the University and presents an annual Budget Plan for Board of Governors approval. This is the third year in which a consolidated plan combines the financial structures of the OMAFRA1 agreement, Ancillary Executive Summary Enterprises and the General Operating Budget into one document. For this year, the recent signing of a new OMAFRA agreement will result in approval for that portion of the budget being delayed until June 2018. The income and cost supports from the OMAFRA agreement in the General Operating budget are still included pending final approval of the OMAFRA budget. In addition, the University Major Capital Projects
1 OMAFRA (Ontario Ministry of Agriculture, Food and Rural Affairs) and the University of Guelph have a long standing operating agreement that provides funding and facilities for research and service programs in support of the Ontario agri-food sector; renewed in January 2018 for another 10 years.
2018-19 University of Guelph Budget [Motion] Page 62 of 220
Plan is presented, summarizing the plan that was presented to the Board in January with particular attention paid to its impact on the General Operating Budget.
The following chart presents the major Operating (non-capital) components of the University’s Budget Plan. The major focus of planning excludes “Other Restricted” and “Other Research Restricted” activities. These funds are composed of many individual restricted projects/grants that have limited direct impact on the overall fiscal net position of the University. They are not expected to change materially in 2018 2019.
Major Components of University Operating Funds (Excluding Capital and Guelph Humber) 2016 2017 Results $755 million
Other Restricted • General Operating $452M: 88% of revenues 6% Other Research are provincial grants and student fees. 71% of Restricted expenses consist of salaries and benefits. 11% • Ancillary $85M: self-funding services with revenues from fees for services; food, student housing, parking etc. • OMAFRA $94M: is a major agreement with the Ministry of Agricultural Food and Rural Affairs funding mainly research infrastructure and OMAFRA General Operating projects in agri-food and food safety. 12% 60% • Other Restricted Research $79M: are funds received from large numbers of individual Ancillary sponsors including federal, industry and private 11% agencies restricted for research. • Other Restricted Funds $45M: are funds from donations and endowment income received for 2 mainly student awards and other non-research grants/contracts restricted for specific purposes.
Executive Summary
2018-19 University of Guelph Budget [Motion] Page 63 of 220
Highlights of the 2018 2019 Operating Plan 1. The General Operating Budget
. The overall target for 2018 2019 is to balance the General Operating Budget, however, the University is projecting an in-year $5.9 million deficit. . To close the deficit gap, a contribution approach has been communicated and accepted by senior administration which requires each College and Division to contribute sufficient one-time funds on May 1st, 2018 to balance the budget for the year. . For 2017 2018, a $5.6 million forecast deficit is included in the General Operating Budget (see table on page 7). Prior year’s results have been surpluses but they have been shrinking over the past fiscal years ($18.2 million surplus in 2016 2017; $29 million surplus in 2015 2016). For 2017 2018, spending plans for prior year’s reserves have increased planned costs including an additional $15 million in approved major capital projects nearing completion (i.e. Student Wellness/Powell Building renovation). Also included in this overall net 2017 2018 position is $2.9 million in tuition revenue surplus mainly the result of additional undergraduate international enrolment that exceeded budget expectations. Unlike in year’s past, the forecasted tuition surplus will not contribute to the university reserves but instead be used to ensure the deficit remains $5.9 million for 2018 2019. . For 2018 2019 assumptions, the total enrolment target for undergraduate and graduate university-degree credit enrolment will be based on actual 2017 2018 experience, nominally increasing the total enrolment target to 22,710 FTEs2. The additional budgeted revenue will be used to support operating cost increases. . Domestic tuition for University-degree programs will be increased by an average of 3% consistent with the provincially mandated tuition framework. . In keeping with average provincial tuition increases, undergraduate international tuition will see increases between 6% to 8% and graduate international tuition will be increased between 0% to 4%. . Despite the projected in-year deficit, the University must continue to invest in both infrastructure and 3 initiatives that will be used mainly in student and academic support programs. . The largest expected increase in costs is a general provision for all compensation including negotiated settlements and benefit increases. Pension contribution requirements will be met with both funds drawn from current year revenues as well as reserves set aside for that purpose. Currently the University is under temporary solvency relief legislation and is not required to make full pension plan solvency deficit payments. Discussions at the provincial and university-system level are ongoing with the objective of finding a more sustainable framework for these pension plans.
2. OMAFRA Agreement
. On January 30, 2018 the University of Guelph signed a 10 year renewal of the OMAFRA-U of G Agreement Executive Summary to continue the long term partnership for discovery and innovation. The renewed agreement includes confirmation for annual funding of $71.3 million. The agreement continues the support for U of G faculty, staff, research and facilities across the five existing major program areas covering Research, Veterinary Capacity, Animal Health Laboratory, Agriculture and Food Laboratory and the Research Station Property Management program.
2 Full-time Equivalent (e.g., for reporting purposes undergraduate students are counted as 1 FTE if they are enrolled at a full-time course load for 2 semesters.)
2018-19 University of Guelph Budget [Motion] Page 64 of 220
. As a result of the timing of the renewal, the joint agreement leadership and program management will proceed with detailed budget development and program implementation planning with a target of bringing a final 2018 2019 agreement budget forward for approval in June 2018.
3. Ancillary
. Total revenues in the University’s five Ancillary units, Parking, Student Housing, Hospitality, University Centre Administration and Real Estate Division are expected to be unchanged from their 2017 2018 forecast results overall. Within the units there is some variations and Real Estate and Student Housing did have better than expected revenues in 2017 2018 due to project timing and higher occupancy. . Total expenses and transfers are expected to increase by 4.2% mainly due to salary costs impacted by minimum wage adjustments, increases in cost of sales, including food prices and increased capital renovations primarily for Student Housing. There are no planned unfunded deficits and all units will cover planned operating expenses from their respective in-year revenues or accumulated reserves. . Parking and Student Housing Services will be undertaking major capital projects this year totaling $14.1 million. No external borrowing will be required as all funds will be drawn from unit reserves or will be internally financed from University working capital. . Fee increases will range from 2.0% for student residences, 3.0% in the cost of the minimum food plan. All increases will be used to support operating and capital expenses within those units to remain fiscally balanced. Parking is planning no increase for parking permits in 2018 2019.
4. Capital
. An estimated $55.9 million has been approved by the Board of Governors for 2018 2019 projects. Covering these projects will be $3.7 million in federal and provincial grants, $3.0 million from fundraising, $14.5 million in reserves, $9.5 million in drawings from the Heritage Fund with the balance of $25.2 million in internal financing. . Major projects include: 4 o $19.4 million for the MacKinnon building for a CFI supported Improv Theatre and north wing renovations o $12.5 million proposed for renewal and repurposing of VMI building $10.3 million for on-going main campus “deferred maintenance” projects
o o $10.7 million is residence capital maintenance o $3.0 million to complete the Alumni Stadium Pavilion
Executive Summary
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Fiscal Context
In preparing the 2018 2019 Budget Plan an important objective is to continue to invest in the University’s significant programmatic strengths that will sustain our strong competitive position as a comprehensive university in the province. Achieving this objective has been made even more critical given a growing dependency on student fees as a source of revenues. This trend is growing steadily not only for the University of Guelph but also across the entire Ontario university system.
The adjacent chart shows the major funding shift to tuition as provincial grants have not provided for inflation, and universities have become more dependent on tuition fee and enrolment increases to fund cost increases and maintain critical infrastructures. When combined with the demographic shift to fewer high school graduates, the traditional source for university enrolments, the post-secondary institutions in Ontario have never been more leveraged to both maintain their enrolment base while increasing revenues to avoid expense reductions or deficits. Planning in this context means greater competition for students. Further adding to our longer-term uncertainties are the challenges facing the province as it strives to balance its budget in the face of uncertain economic times and competing demands for better infrastructure and rising costs in health care.
In 2017 2018, the new provincial grant funding mechanism came into effect which keeps grant funding fixed based on a pre-negotiated enrolment corridor. This has had an impact on the University’s capacity to manage general cost increases with constrained revenue. 5 Accompanying the “corridor” control on enrolment growth, the province has increased the initial source of performance-based funding by transferring from enrolment-based grants. This process will most likely continue in the future under the assumption that demographic declines in university-aged students in the province will reduce the need for the same level of funding as it is today3.
Performance will be measured on a series of metrics4 tracking a wide range of factors including student success, both during their periods of study and post-graduation, to overall institutional financial management and “health”.
On planning the expense side of the budget, every year begins with first determining major cost
Executive Summary commitments. With 75% of the budget composed of compensation costs, it is imperative that salary and benefit cost estimates are reasonably accurate. Sector pressures continue to drive salary increases and providing for compensation will once again be the largest single cost increase that needs to be funded. With an aging physical plant and major information systems approaching the end of their effective life-spans,
3 The overall funding to post-secondary education is not expected to increase but funds are expected to shift among envelopes reflecting provincial priorities. 4 Details of these metrics are not yet finalized and discussions are being held with MAESD representatives to determine the specific measures, which will become the basis for performance-based funding in the future.
2018-19 University of Guelph Budget [Motion] Page 66 of 220
there are constant pressures to continue to increase investments to keep programs and services operational and effective. Competing with the cost increases for compensation and infrastructure are the important budget objectives of investing in programmatic innovation, student success and more effective and responsive support services.
For 2018 2019, with the notable budgetary constraints from the fixed provincial grants, flat domestic enrolments and the steady growth of compensation costs, the University is projecting a $5.9 million in-year deficit.
One of the hallmarks of the University of Guelph is our capacity for creative and integrated planning processes, which provides us with good governance and a framework for approaching budgets that prepares us for the future.
Further to our best practices in addressing budget sustainability, University leaders have anticipated these constraints and have made strides to address them. In a multi-prong effort, members of senior administration have approached these issues from a variety of paths to ensure the institution continues to thrive. These critical efforts include but are not limited to provincial negotiations, a new budget model investigation, strategic enrolment planning, and tuition fee policy and approach. As with any effort, the financial timing of such strategies does not readily align with the immediate impact of the external budgetary constraints.
In a series of consultations and based on stakeholder feedback, senior administration has acknowledged the interim solution in relying on unit reserves to balance the budget. A reliance on this balancing methodology is not a tenable long-term solution. Considering the projected enrolment trends and continuing constraints, 2018 2019 will prove to be a critical strategic and budgetary junction for which we must consider our path carefully to strike the right financial balance moving forward.
The University remains in a strong fiscal and competitive position to weather and adjust our collective strategies to mitigate and respond to the challenges ahead. 6
The following presents details of the 2018 2019 Budget Plan we are recommending to the Board of Governors and the University stakeholder community.
Executive Summary
2018-19 University of Guelph Budget [Motion] Page 67 of 220 General Operating Fund
B. General Operating Fund The table below presents the major components of revenues and expenses for the General Operating Fund 2018 2019 Budget Plan compared with last year’s budget and forecast and 2016 2017 actual results. Overall revenues are expected to be flat compared to the current year’s forecast. Expense allocations reflect the maximum spending from annual revenues.
Details on the major assumptions for 2018 2019 included in the table are contained in the following sections.
Summary $ thousands % Change 2016/2017 2017/2018 2017/2018 2018/2019 Budget To Actuals Budget Forecast Budget Forecast REVENUES 183,087 182,942 183,871 Provincial Operating Grants 182,824 -0.6% 195,683 202,808 206,164 Tuition Fees 213,079 3.4% 16,236 16,166 17,169 Other Student Fees and Contracts 16,200 -5.6% 34,466 33,836 36,438 Sales of Goods and Services 32,619 -10.5% 23,532 18,399 20,790 Guelph-Humber 18,398 -11.5% 22,967 20,701 23,868 Other Revenues 21,437 -10.2% 475,971 474,852 488,300 Total Revenues 484,558 -0.8%
EXPENSES 257,109 275,594 273,984 Salaries 277,679 1.3% 77,292 80,755 80,086 Benefits and Pension 83,233 3.9% 24,780 24,687 25,614 Scholarships and Bursaries 27,441 7.1% 19,054 23,895 17,983 Utilities 23,835 32.5% 81,557 82,061 93,873 Operating 89,324 -4.8% 7 459,792 486,991 491,541 Total Expenses 501,511 2.0%
(21,300) (21,825) (21,825) From OMAFRA (22,113) 1.3%
(12,070) (12,194) (12,192) From Ancillaries (12,355) 1.3% 31,329 21,880 36,420 To Major Capital & Debt Servicing 23,380 -35.8% (2,041) (12,139) 2,403 Total University Transfers (11,088)
18,220 - (5,643) Annual Surplus (Deficit) Note #1 (5,865)
Balance Budget Contribution Note #2 5,865 18,220 - (5,643) Net General Operating Results - General Operating Fund 151,232 169,452 169,452 Opening Fund Balance Note #3 163,809
169,452 169,452 163,809 Closing Fund Balance 163,809
Note 1 Annual Surplus (Deficit) is Revenue less Expenses and University Transfers
Note 2 In-year College/Division contributions to ensure a balanced budget (see Balance Budget Contribution on page 23)
Note 3 The “Fund Balances” in the table above exclude Employee Benefit reserves, Guelph Humber and the accumulated accounting charges for post-employment benefits. (See Financial Reserves on page 24)
2018-19 University of Guelph Budget [Motion] Page 68 of 220
Student Income
Student income in the General Operating Fund consists of tuition and non-tuition fees charged for specific services. Non-tuition fees are further classified under compulsory and non-compulsory. Compulsory5 non- tuition fees, which are fees charged on degree-credit programs in addition to the program tuition fee, are controlled under provincially approved protocols. In 2018 2019 the General Operating Budget estimate for tuition and compulsory fees is $230.8 million. As shown in the chart below 88% or $202.7 million of this revenue is university-degree tuition. Student Tuition and Fees Altogether fees charged to students for all 2018 2019 Revenue by Type $230.8 million teaching programs comprise about 28% of total University revenue.
The two major components in determining total student income are both the number of students (enrolment) and the rates Diploma Tuition Tuition - charged. For most University degree-credit $4.1 2% University programs, increases in tuition must adhere Degree Non-Credit to the provincial tuition policy framework. $202.7 88% Tuition Under this framework, annual tuition $6.4 3% increases averaged across all provincially Non-Tuition regulated6 programs cannot exceed 3%. The Compulsory terms of the existing framework will end in $17.6 7% fiscal year 2018 2019.
Non-tuition compulsory fees increases are controlled either through student referendum or under protocols agreed to by students that permit annual increases. All other student fees are mainly charged on a fee-for-service basis and increases are based on competitive or cost-of-living adjustments. The following provides details on the assumptions used for 2018 2019.
University Degree Programs 8 Tuition Increases
Tuition increases for university degree programs are classified into three major groups;
. Provincially regulated undergraduate and graduate student programs that receive provincial grant support. Typically, these are domestic (permanent resident) students. . International programs; undergraduate and graduate student enrolment that does not receive provincial support under provincial policy. . Full-cost recovery programs; these are undergraduate and graduate programs that charge sufficient tuition to recover the full costs of the program. The University of Guelph has relatively General Operating Fund few full-cost recovery programs, the major examples at Guelph are the executive MBA programs in the College of Business and Economics which combined are 1.5% of total tuition revenue.
5 “Compulsory” in this context means the fee is billed to students as part of the registration process and is payable at that time. For certain college-based compulsory fees students may apply for refunds after they have initially paid. 6 The province through MAESD (the Ministry of Advanced Education and Skills Development), determines the criteria for those students and programs that are eligible to receive provincial grant support. In addition to being registered in academically accredited programs there are residency requirements for registered students to be eligible for funding. Student enrolments in unregulated programs, including those for all international students, are not eligible for any provincial grant support.
2018-19 University of Guelph Budget [Motion] Page 69 of 220
Under the final year of the provincial tuition Provincially Regulated Fee framework (2018 2019), increases are limited7 on Increase provincially regulated programs to a maximum Undergraduate Regular, Diploma 3.0% average of 3% across all programs, with maximum Undergraduate-Professional1 5.0% increases of 5% for graduate or professional Graduate – MA, MSc, MASc 1.0% programs. For 2018 2019, the University will Graduate – Professionally Oriented 3.5% increase tuition fees on regulated programs in Graduate - Doctoral 0.0% accordance with the tuition framework to the 2 overall maximum permitted. Within programs, fees International Students will be differentiated with non-professional stream Undergraduate – Engineering, DVM 8.0% Masters programs receiving smaller increases and Undergraduate- all other programs 6.0% no increase again this year for Doctoral. This is part Graduate – MA, MSc, MASc 2.0% of an overall strategy to increase graduate student Graduate – Professionally Oriented 4.0% numbers by becoming more competitive in terms Graduate - Doctoral 2.0% of both fees and funding for graduate students. 1. Exceptions for Mech, Comp and Biomed programs in After a review of relative fees and program quality engineering increased by 3%. while ensuring accessibility for international 2. The “cohort” fee which fixed the fee for the term of the students, targeted increases will be applied for program is removed for 2017 2018 and later entering students. entering undergraduate international students in Engineering and Doctor of Veterinary Medicine will increase 8% and all other undergraduate programs will increase by 6%. For international graduate programs, regular Masters and Doctoral programs will increase 2% and professionally oriented Masters programs will increase 4%. Pre 2017 2018 in-course international students will have no increase in accordance with the University’s past practice of a cohort fee for all international students however, students who entered in 2017 2018 and subsequent years will be subject to approved annual fee increases. Overall, it is expected that fee increases from all university-degree programs will generate $5.7 million in additional income.
Enrolments Enrolments - University Degree Credit (excluding Guelph Humber and Diploma) 9 In 2017 2018, undergraduate enrolment at the in thousand FTEs University was essentially unchanged for domestic 22.59 22.71 23.00 22.39 students over 2016 2017 but did experience small 21.88 growth of undergraduate international students of 22.00 approximately 100 student FTEs. At the graduate 2.68 2.70 level, increases were also achieved with 21.00 2.55 approximately 100 masters and 35 doctoral student 2.35 FTEs (Refer to chart). These new higher enrolment 20.00 numbers have generated additional income in 2017 2018, contributing to the surplus forecast tuition 19.00
General Operating Fund revenue of $2.9 million. 19.91 20.01 19.53 19.84 18.00 A key assumption for 2018 2019 will be to hold first year undergraduate intake targets similar to last 17.00 2015 2016 2016 2017 2017 2018 2018 2019 Actual Actual Actual Plan UnderGrad Grad Total
7 If an institution exceeds these limits, the province will reduce that institution’s operating grant by an amount equivalent to the excess tuition revenue.
2018-19 University of Guelph Budget [Motion] Page 70 of 220
year’s initial target8. With this intake combined with the impact of international Student Tuition University Degree Credit 2018 2019 Revenue by Type $202.7 million enrolments, it is estimated that there will (excluding Guelph-Humber and Diploma) be a further 100 student FTEs at the in $ millions Grad- University this time next year. Domestic $18.9 9% With the enrolment target for 2018 2019 now set at the higher level (22,710 FTEs), the net impact on 2018 2019 planning is positive. Overall, the budget to budget Undergrad- change will be an increase in revenue. International Added to the $3.0 million in additional Undergrad. $24.1 12% Domestic revenue from 2017 2018 experience, will $152.2 75% be an additional $1.5 million estimated from the small increase of 100 Grad- International international FTEs noted earlier and $5.8 $7.6 4% million from rate increases. The combined impact of $10.3 million will be the major incremental revenue source for the new fiscal year.
Graduate Students:
The University has made recruitment of greater numbers of graduate students a priority. This was done both in response to additional provincial funding that targeted increased graduate students and to enhance the University research capacity and development of highly qualified personnel across all disciplines. As with undergraduate students, graduate funding falls under MAESD eligibility policies. Students eligible for provincial funding are domestic graduate students (international students do not attract any provincial funding support), who have not been in their Graduate Student FTEs programs beyond set time-periods of eligibility. (Domestic and International) While the University will continue to make efforts 3,000 2,683 2,700 10 to increase the proportion of graduate students, 2,549 2,352 the new funding formula and enrolment 2,500 679 686 management processes with the province mean 627 that we will have to receive approval for 2,000 579 additional funding for further growth. Institutional-specific targets were set under the 1,500 new SMA (finalized in Fall 2017). 1,000 2,004 2,014 1,773 1,922 The 2018 2019 initial budget target for graduate enrolment will be set consistent with the 2017 500
2018 actual level (Refer to adjacent chart). General Operating Fund 0 15 16 16 17 17 18 18 19 Plan
Eligible Ineligible TOTAL
8 Setting intake targets for first year students and achieving them is a major challenge given variability in acceptance and registration rates among students who have choices.
2018-19 University of Guelph Budget [Motion] Page 71 of 220
International Students:
For a number of years the University has been increasing International Students efforts to recruit international students through both (FTE Enrolment) direct recruitment and inter-government and institutional 1,493 1,600 programs. In recent years, resources were added to the 1,384 1,400 1,234 1,115 Registrar’s Office and Student Services for international 1,200 1,043 undergraduate recruitment and in course support 1,000 951 1,052 services. Efforts have resulted in a 43% increase in 800 851 682 765 international student FTEs over the past five years (an 600 increase of 450 student FTEs). Significant efforts continue 400 for international growth as part of the 200 361 350 383 433 441 - Internationalization Review effort including the 14 15 15 16 16 17 17 18 18 19 introduction of International Doctoral Tuition Plan scholarships. Graduate Undergraduate Diploma Programs
For many years the University has delivered a range of agricultural diploma programs under the agreement with OMAFRA and more recently MAESD. All of these programs are delivered by the Ontario Agricultural College (OAC) at both the main Guelph campus and at the regional campus located in Ridgetown (near Chatham) Ontario. The program costs, totaling $11.3 million, are supported with a designated annual provincial grant of $4.5 million, diploma tuition of $2.7 million and other student fees (food, housing, and non-credit programs) of $4.1 million. Diploma tuition increases are determined using the current MAESD tuition framework and other fees are market-based. Overall enrolment in the diploma program is approximately 580 FTEs which has grown by 8% over the last three years.
Other Student Fees
In addition to tuition, students provide support to the General Operating Budget9 through fees charged for specific services. These fees are in the form of “non-tuition compulsory fees” charged to students as part of 11 their registration in an academic program. Other fees, in Other Non- Tuition Student Fees the form of fee-for-services, are charged only as a service Compusory Fees & Program Specific is used. In accordance with provincial requirements all 2018 2019 - Total $17.6 million
compulsory fees must be initiated through student Student Health referenda. In addition, compulsory fee increases are Student Support 8% controlled under student approved protocols required by Services 17% the province for all universities. Athletic - Capital Excluded from protocols are a number of college-based College 13% specific and other fees charges for program-specific services e.g., 26%
General Operating Fund CO-OP placement and distance education fees to cover Athletic- direct costs incremental to those programs. Operating 32% University The total estimated revenue from these fees is $17.6 Centre million (refer to chart). 4%
9 Student organizations also charge fees to support student government and club activities and services. While these fees are collected by the University they are flowed through to student organizations and are not part of the University’s operating activities. In total they are approximately $16 million of which $6 million is for a bus pass.
2018-19 University of Guelph Budget [Motion] Page 72 of 220
All revenues from student fees in this category are credited to the units providing the service. For example, the Athletics department receives $8.0 million in fees charged to all students for both capital and operating costs to provide recreational programs and facilities10.
For 2018 2019 there are no new fees to be charged and fee increases have all followed required approval processes that all require student participation. By default, fees may increase by CPI (1.7% for 2017). However, increases can be approved greater than CPI either through a referendum or increases up to 3% above CPI may be approved through the various student fee advisory committees which oversee spending of these fees. For 2018 2019 through the advisory committees, students support:
. 3.9% total increase for the non-capital Athletic Fee to be used for operating costs in the new Mitchell athletic centre; . 3.0% total increase in the Student Health Services Fee to student mental health; University of Guelph Humber
In 2002, the University of Guelph entered into a joint venture with the Humber College Institute of Technology and Advanced Learning (Humber College) to offer a combined university-degree and college diploma for students in the same four-year period. The University of Guelph-Humber has grown dramatically since its opening in 2003 and now has 4,700 students enrolled in 8 major undergraduate program areas. Because it is not a separate legal entity, Guelph-Humber students register as University of Guelph-Humber Transfers $millions Guelph students. Programs are delivered on the north To the University of Guelph campus of Humber College in Etobicoke in a dedicated $21.5 building built with major capital grant from the $20.3 province. All revenues (provincial grants and tuition $18.8 $18.9 fees) and related course delivery and support costs are $8.7 $9.5 credited or charged to the joint venture. $9.0 $8.9
The Guelph-Humber joint venture generates about $19 million (Refer to Chart) for the University in revenue 12 $11.6 $12.0 cash transfers. Funds are earned in two ways: $9.8 $10.0
. University of Guelph colleges and divisions receive 15 16 16 17 17 18 18 19 about $9 million annually for both course delivery Forecast Plan and academic support services provided to University Share Guelph-Humber. This level of income, used mainly to offset direct costs, can vary depending Program Delivery Costs on courses taught and service levels contracted by Guelph-Humber;
. the net income of the joint venture is shared equally between University of Guelph and Humber General Operating Fund College. This income is now an important component of the University’s overall revenue assumptions with the majority of the funds now supporting general University costs;
10 Student approved a special 30 year capital fee in 2008 to be used for major capital projects for student recreation. The most recent project funded by this fee is the $45 million Mitchell building addition.
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For 2018 2019, the University of Guelph Humber will target to hold enrolment levels at their 2017 2018 levels of 4,700 FTEs). This target is consistent with the University’s overall position of holding and maintaining a stable overall enrolment level. (For provincial funding purposes, including the SMA negotiated enrolment Guelph-Humber Transfers $millions corridor the University of Guelph-Humber enrolments are 2018 2019 Budget included under the University of Guelph’s overall target.)
Overall, the 2018 2019 Guelph-Humber budget will continue to generate significant net income of $24.5 million (Refer to Net Student Income, Chart) that will be split equally between Humber College and Fees, 24.5 the University of Guelph. Much of this position is due to low $35.0 program delivery costs (based on sessional or part-time Student Services & Aid $8.6 instructors used to deliver many courses). With the need to Admin., $4.1 strengthen the sustainability and academic profile of the Academic Services, $10.5 programs especially in meeting accreditation requirements, it is planning to hire tenured track faculty dedicated to Guelph- Grants, Humber programs beginning in 2018 2019. Financially this will $34.0 Academic Direct , $21.3 result in a decline in overall net income due to the increased cost of the investment in full-time faculty. Income Allocation
Provincial Operating Grants
The University of Guelph receives provincial funding from several ministries, the two principle ones being, Ministry of Advanced Education and Skills Development (MAESD) and Ontario Ministry of Agriculture Food and Rural Affairs (OMAFRA). OMAFRA funding, as with other research-based or targeted funding is restricted and cannot be used for general University operating purposes. While MAESD will flow certain grants for capital renewal (currently around $2 million annually) and occasionally for other major capital projects, MAESD operating grants are by far the largest and a major source of funding for University core 13 operations. Total Provincial Operating Grants 2018 2019 Estimate $216.8 million MAESD operating grant funding currently is received in
10 specific funding envelopes, reflecting an increasing trend by the province to allocate funding based either on Differentiation - performance metrics or targeted for specific purposes. Performance based , $11.3 Many of these envelopes are very small and by far the Guelph- largest portion of operating grants are earned based on Special Enrolment Purpose, the enrolment numbers of students taught in Based , $15.9 provincially-regulated programs. $155.6 Guelph- Humber, General Operating Fund $34.0 The adjacent chart shows the major distribution of MAESD operating grants forecast for 2018 2019. In total, these are at the same funding level as 2017 2018.
Included in MAESD operating grants are funds earned from University of Guelph Humber student enrolments. This reflects the fact that Guelph-Humber is not a legal entity11 and is not recognized by the
11 For the University’s General Operating Budget and financial statement purposes, Guelph-Humber is treated as a “joint venture” and grants received for Guelph-Humber enrolments are not recognized as University revenues.
2018-19 University of Guelph Budget [Motion] Page 74 of 220
province as a standalone institution. Students enrolled in Guelph-Humber programs are University of Guelph students for MAESD reporting and funding purposes. Currently the University of Guelph transfers $34.0 million to Humber College based on actual Guelph-Humber enrolments funded at university-level MAESD grants values. Humber College provides financial management and much of the academic, student and administrative support for the Guelph-Humber operations.
New Provincial Funding Mechanism: Since the beginning of fiscal year 2017 2018, the province began distributing funds based on a framework with greater emphasis on performance-based funding and a mechanism for greater provincial control over enrolment levels at all institutions. Key features of the mechanism include: . Each University’s operating grants will remain fixed and accordingly, will be held to a provincially weighted enrollment corridor that is 3% plus/minus wide. Universities are required to stay within their corridor unless approvals, are received from the province, especially for enrolment growth. The University’s corridor is based on 2016 2017 weighted enrolment levels. . Specialized envelopes for “Differentiation” and performance-based funding will receive greater priority. Over time, these envelopes are anticipated to increase based on the assumption that funds will be transferred from the corridor enrolment-based funding envelope as overall system enrolments decline12. By 2020, the objective is to have funding in these envelopes linked to outcomes as established and measured by predetermined metrics. . “Special Purpose” funding is also available that includes institutional-specific grants and other special, targeted funding. The University of Guelph currently receives two unique allocations for our diploma and veterinary programs of $4.5 million and $6.5 million respectively. . Over the next 2 years, the newly established funding mechanism will continue to be phased in. For 2018 2019, institutions will see relatively the same level of distribution in grant funding as seen in 2017 2018. The major constraint will be that enrolment growth will not be funded, except through negotiation with MAESD.
Inter Fund Transfers 14 The University uses a fund accounting structure to ensure the appropriate accountability and reporting requirements for the many different sources and uses of the revenues received. Transfers13 among these
accounting funds may consist of revenue or expenses and are for a range of purposes such as recovering costs for providing services, providing support from operating funds to capital projects or providing support for indirect costs.
Transfers occur in two major classifications; major institutional-level transfers that are established as part of the budget process at the beginning of the year and numerous smaller transfers occurring during the year for normal procurement activity such as the equipment purchases and transfers for research support. General Operating Fund The table below provides details of the major institutional-level transfers that are planned for 2018 2019. Most significant are transfers from OMAFRA to the General Operating fund for faculty support, veterinary capacity and indirect costs (subject to final approval of the OMAFRA agreement 2018 2019 budget). There are no major changes in transfers expected for 2018 2019.
12 This assumption of declining enrolments is based on current demographic projections that show a significant decrease in the traditional university recruitment age group (17-20 years). 13 By definition, all transfers across all funds must net to zero at the University level.
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Summary of Major Interfund Transfers 2018 2019 $ millions General Major Guelph- Heritage (FROM) TO Operating OMAFRA Ancillary Capital Humber Research Fund RESEARCH; OMAFRA - Veterinary Capacity Program 1.9 (1.9) OMAFRA - Faculty Positions 9.7 (9.7) OMAFRA- Indirect Costs 10.5 (10.5) FEDERAL - Research Support Fund 5.7 (5.7) Other Research Indirect Support 5.4 (5.4) Total RESEARCH 33.2 (22.1) - - - (11.1) - ANCILLARY Indirect Costs, Debt Servicing, Contributions 12.4 (21.2) 3.6 5.2 CAPITAL Capital Projects 9.5 (9.5) Debt Servicing (23.4) 23.4 Total CAPITAL (23.4) - - 32.9 - - (9.5) GUELPH HUMBER College Program Delivery 8.4 (8.4) 50% Share of Net Income & Mgmt Fee 10.0 (10.0) Total GUELPH HUMBER 18.4 - - - (18.4) - -
TOTAL TRANSFERS 40.6 (22.1) (21.2) 36.5 (18.4) (11.1) (4.3)
Compensation
Total compensation (salaries and benefits) 2018/2019 General Operating Budget comprises approximately 74% of total Compensation By Major Category costs and therefore, is a critical factor in $360.8 million Including Benefits financial planning. Most cost increases are negotiated through 15 separate 15 agreements covering both unionized and non-unionized employee groups. P&M $76.9 21%
For the 2018 2019 fiscal year, employee UGFA agreements are in place for major $172.4 48% employee groups including UGFA, P&M USW $44.9 and USW, as well as a number of smaller 12% groups. Combined compensation up for remaining groups under negotiation CUPE $32.0 accounts for less than 3% of the total Notes: 9%
General Operating Fund compensation budget (refer to chart). UGFA: University of Guelph Faculty Association P&M: Professional and Managerial Other Groups A provision for cost increases to all groups USW: United Steel Workers Temporary $11.3 3% $23.5 7% has been established at $9.6 million. This CUPE: Canadian Union of Public Employees estimate includes the total provision for all component of salary cost of all groups and categories as well as adjustments to cover projected changes to annual employer benefits costs.
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Employee Benefits
With an expected total cost of $118.8 million (refer to chart), employee benefits are 15% of Cost of Employee Benefits total costs and 28% of total salary costs. The By Major Category $ millions administration of employee benefits is very $118.8 complex with each major employee group $112.0 potentially having a unique set of benefits $29.3 $34.4 arising from labor negotiations. Many negotiated benefit coverages are based on $26.6 $27.4 actual claims with the University liable for the costs of negative experience. The major benefit $32.1 $32.9 cost increase in 2018 2019 is pension $24.0 $24.1 contributions for special payments as a result of pension plan deficits - (from $29.3 million to 2017/2018 2018/2019 $34.4 million). Forecast Plan Pension Special Payments University benefit programs provided to Pension Normal Costs Negotiated Benefits employees have three major cost components: Statutory Benefits Total 1. Statutory benefits such as Canada Pension Plan (CPP) and Employment Insurance (EI), cost rates are expected to increase in 2018 2019 with CPP and EI employer contribution rates increasing by 1.1% and 2.6% respectively. 2. Negotiated benefits, are a variety of programs with the three largest being extended health (drug and other medical benefits) disability coverage and the dental plan. Negotiated benefits are expected to see an overall 3% increase in costs based on rate increases and usage/experience in the plans. 3. Post-employment benefits for retirees composed of both; a. non-pension post-employment benefit costs (mainly dental and extended health including a supplemental drug plan) and pension plan benefits.
Post employment non-pension benefit programs are budgeted on a “pay-as-you go” basis, meaning only 16 the actual annual cash costs are funded annually. In 2017 2018, that annual cost is expected to be $5.6 million. This is in major contrast to the annual accounting expense of $21 million which is based on the accrued liability for these programs estimated at $270 million. While the University is not required to fully
fund the liability i.e., set aside an equivalent value of assets, the actual cash costs are expected to increase annually at the rate of 8%-10%, becoming significant costs over the next 15-20 years.
Pension Benefits: The University of Guelph is the legal sponsor of three defined benefit pension plans (the Plans) with a combined membership of 5,900 members (active and retirees). With assets and liabilities in the $1.3 billion-$1.5 billion range these plans are a significant obligation and risk to the University’s financial condition. General Operating Fund
Under Ontario law, these types of plans are required to fund their estimated future liabilities using actuarial estimates (in contrast to a “pay-as-you-go” basis, permitted for non-pension post-employment benefits). Under the provincial regulations, liabilities must be calculated regularly14 with any shortfall between assets and liabilities being funded by the plan sponsor – in this case the University. Plan valuations determine liabilities under two distinct sets of assumptions:
14 “Valuations” of pension plan surpluses/deficits or are performed on valuation dates of each pension plan. Sponsors have some degree of freedom in setting valuation dates however, valuations must be performed at least every three years. For the University, the most recent valuation was completed effective August 1, 2016.
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1. Going Concern: This method takes a long term view of the plans and assumes they will continue to operate into the foreseeable future. Any deficits in Pension Plans Combined this case must be paid for over 15 years. Aug. 1 2016 Valuation Results Assumptions used are generally stable between $ billions 2 valuation periods and are set using long term Deficits expectations. Going concern funded positions 1.8 $615 (surpluses or deficits) usually are smaller and less 1.6 1.4 volatile than those resulting from solvency $109 calculations (see below). For the university’s plans 1.2 the most recent valuation shows an improvement in 1 the going concern position with major plans funded 0.8
between 90% and 95% mainly due to asset gains 0.6 Liabilities Assets over the three years preceding the valuation date 0.4 Assets Liabilities averaging 8.2%. The total deficit was a combined 0.2 $109 million for all three plans. 0 2. Solvency: The solvency valuation is based on the Going Concern Solvency assumption that the pension plans closed (“wind Measurement Measurement up”) on the valuation date and all past and future obligations settled using financial market conditions at the time of the measurement. Key financial drivers used in this wind-up or “solvency” calculation include long-term interest rates and pension plan asset values on the date the plans are valued. The University (sponsor) funds any deficit i.e., plan assets being less than wind-up pension liabilities, normally over a 5 year period. The solvency test is much more volatile as it is based upon a number of external financial factors, measured at the date of the valuation which can change daily with market conditions. The solvency deficit on August 1, 2016 (our last valuation date) was $615 million (a 68% funded ratio).
Temporary Solvency Relief: There is a prevalence of these type of pension plans among universities in Ontario. With the strict application of the normal solvency funding rules being potentially devastating to many universities’ capacity to offer programs, in 2010 the province began a series of temporary solvency relief legislation changes. The most recent iteration of the relief legislation requires the 17 University to fund 25% of the solvency deficit measured at the most recent valuation date (in our case August 1, 2016). Without the provincial funding relief, payments for this deficit ($615 million) alone would have been $93 million annually. With relief, annual payments are $22 million.
Funding Projections: With the August 1, 2016 valuation, required annual payments have been determined until at least the next required valuation date (August 1, 2019). Having anticipated major future pension contribution requirements, the University accumulated $70 million in reserves specifically designated for pension contributions. These funds are in addition to about $40 million that is built into current annual budget assumptions.
General Operating Fund The graph below shows the accumulated cash required for expected contribution requirements (under the current temporary solvency relief), against funding that is currently allocated for pension contributions. It
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shows that there is sufficient funding to Five Year Pension Contribution Projection cover requirements until fiscal 2020 2021. Cumulative $ millions This assumes no changes in either the Required Funding current funded status or legislative 350 frameworks governing the Plans in Ontario. Funding Gap A number of initiatives are underway in the 300 $43 million province that are focused on addressing solvency funding challenges. These include 250 efforts among the University of Guelph, University of Toronto and Queens University 200 to create a JSPP15 (jointly sponsored pension plan) which would include all the University 150 of Guelph Plans. In addition, a broader Total Contribution provincial initiative is underway to 100 Requirements of restructure the solvency requirements for $309 million 50 all similar pension plans in the province. Proposals for changes under the Solvency 0 Funding Framework are under review and 17 18 18 19 19 20 20 21 21 22 current solvency relief will stay in place until the next scheduled valuation. The impact of any changes will be brought forward when new regulations governing the University of Guelph plans are finalized.
Infrastructure Costs
At the University, there are certain central services that provide the operational platform for and are common to, almost all University programs and services. These exist not only as the obvious physical space occupied by our students, faculty and staff but also information technology (computing and communications) which has now become a critical “utility” for most operating activities. Costs for these services vary not only by external price inflation or legal requirements but also by internal demand. For 18 planning purposes, they are classified in three categories.
Central Utilities Central Utilties Costs - Guelph Campus $millions $23.7 Central Utilities are external costs for major categories $25.0 of heating (natural gas) and hydro (including cooling) $20.9 $20.0 $19.1 $17.1 $7.0 as well as other central services such as waste $4.7 management and water costs. Central Utilities refers $3.4 $15.0 $3.5 $4.0 to the costs of the main Guelph campus provided $3.2 $3.0 through the Central Utilities Plant (CUP) providing heat $4.0 $10.0 General Operating Fund and air conditioning for 613,000 m2 (square meters) of $13.0 $12.7 $12.7 space. Certain operations including research stations $5.0 $9.6 and other facilities on University land, such as those in the Research Park provide for their own utilities costs. $- For on-going budgeting purposes, funds are provided 2015 2016 2016 2017 2017 2018 2018 2019 Actual Actual Forecast Budget based on long-term estimate of natural gas pricing (main campus heating). Further impacting these costs Hydro Water & Waste Heating (Gas)
15 JSPP’s in the province of Ontario generally are not required to fund solvency deficiencies.
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is the addition of new space and offsets to hydro net costs as a result of provincial rebates.
The base or on-going allocation for the central utilities budget for several years has been $23.7 million (refer to chart). With the current historically low cost of natural gas combined with recent milder than “normal” winters, savings in this account of between $2.0 and $3.0 million have been realized each year16. Recent hydro cost increases are mitigated with the implementation of major new energy savings projects and receipt of provincial rebates.
Space Costs
The operating costs of buildings include utilities costs and the on-going maintenance and custodial services including inflation on supplies for both existing and additional space. Since 2016, the University has added over 25,000 m2 in space to its centrally managed inventory. This includes new buildings completed or under construction or space previously assigned for non-academic purposes. Major additions include 15,500 m2 for athletics facilities (Mitchell addition and the Football pavilion), almost 10,000 m2 in academic space under the SIF program (for research facilities, Food Science, Business, the Ontario Veterinary College) and the new Frost Turfgrass centre adding 2,000 m2 in 2018 2019. As they are completed and occupied costs are added to the General Operating Budget. The impact for 2018 2019 is $0.235 million.
In addition, $0.100 million will be provided to help offset the cost increases experienced over a number of years in the Grounds operations for landscaping supplies, equipment and vehicle maintenance including the snow removal fleet.
Capital Infrastructure Debt Servicing
In January 2018, an update of the 5 year Capital Financing plan was presented to the Board of Governors contained total approved spending of $56.0 million and borrowing of $25.2 million. Projects under this plan include deferred maintenance for $10.3 million, Student Housing Services upgrades of $10.7 million and $35 million for primarily academic space including Arts (MacKinnon) and renewal of space in OVC allowing consolidation of clinical services operated by the CSAHS. An increase of $1.5 million has been added to the existing $21.9 million base allocation for capital funding and debt servicing of projects that do not have 19 capital funding sources. Information Technology (IT)
Central computing and communication capacities are a critical and growing “utility” necessary to deliver competitive high quality programs and services. While there are numerous departmentally operated specialty systems, they all require a secure and responsive central internet and communication infrastructure to be effective. In addition, the University has core business systems ranging from payroll to student billing and registration systems that need to be maintained and evolved with increasing demands for service improvements. The current investment in central information technology support is well over $10 million annually. General Operating Fund Given this growing fiscal demand and importance of technology to all University programs, a review of information technology across the University was completed in 2017. As part of the plan going forward, a new governance process for IT and communication infrastructure that will guide all new and enhanced technologies is now in place.
In this budget, a general provision has been made of $0.625 million in on-going and $1.8 million in one- time. The base funding will cover as required, specific essential services such as increases (inflation) on the
16 Currently these savings are used to pay for a $26 million energy retrofit project begun in 2015 and now completed.
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external costs of current systems and to continue with enhancing IT security, key systems and desktop support. The investment in one time costs contributes to increasing licensing costs and management for Oracle systems, server replacement, web accessibility support and initiating phone lifecycle replacement.
Library Information Services
The purchasing power of the University’s central library’s information acquisitions budget (currently at $7.9 million) continues to erode through inflation currently at a rate of between 4% and 6% annually. $0.340 million (4.25%) will be provided in this year’s budget to help sustain current purchasing power levels. The impact of US dollar exchange rates will continue to be monitored by Library leadership to assess impact on the information resources costs.
Support Services
Along with central infrastructure, funding is provided for high priority central services that provide for the health and safety of students, activities in support of University-wide objectives to meet external reporting or other legislative or legal requirements. A total of $0.760 million in base funds will be allocated to support the following areas:
. $0.560 million will be provided to assist in funding of one new position and other support services in Student Affairs for exam accommodation and diversity as well as a contribution to the costs of student labour in Athletics operations and other student support areas. . $0.200 million contribution to the costs in the Office of Research for administering new provincial requirements for governance, risk management and reporting requirements of the OMAFRA agreement which was recently renewed for the next ten years.
Student Aid
Supporting student accessibility and attracting high Growth In Student Aid quality students has been a major budget priority. At the 28% Since 2015 2016 University of Guelph a fundamental principle is that, 20 48.5 working in partnership with government and students, all 45.3 41.5 qualified individuals should be able to attend university 37.9 regardless of their financial status. Reflecting this priority 28.4 26.9 the University has increased direct student financial 22.6 25.2 assistance by 28% since 2015 2016 (refer to chart). Student assistance is generally categorized as either 15.3 16.3 18.4 20.2 “needs-based” or “merit-based” with some overlap as Share of Total Student Aid Funding 15 16 16 17 17 18 18 19 some individual scholarships contain elements of both 79% Needs Based to Undergraduates Forecast Plan needs and merit-based criteria. In addition to University support, the provincial government provides financial 100% Needs-Based Merit-Based Total General Operating Fund support directly to student through its Ontario Student 80% 40% Assistance Program (OSAP). The definition of “need” 56% 60% 79% typically begins with the OSAP criteria which are established by the province. In addition, the University 40% 60% expands this definition to ensure that where there are 20% 44% gaps in OSAP funding, University funds can be used. In 21% 0% 2017 2018, the province implemented a fundamental Total Merit-Based Need-Based restructuring of student assistance for Ontario post- Allocation Allocation Allocation secondary education. These changes include a Graduate Undergraduate rebranding, introduction of a more user-friendly website,
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consolidation of several grants into one upfront grant, free tuition for eligible students, eliminating reporting of RESP amounts and a net cost view for eligible students outlining the financial information related to attending the University of Guelph. A key feature of the revisions is the concept of “Net Billing” for students – “Net” being the amount the student is responsible for after OSAP and University support has been applied to their total costs. Guelph was part of the pilot and successfully implemented Net Billing for students in the of Fall 2017. The positive outcomes for the students include transparency of out of pocket costs, a streamlined application process and potentially increased access to government and institutional aid. In addition, the provincial changes to OSAP (i.e. excluding RESP proceeds in need calculation) resulted in a significant funding increase to the Student Access Guarantee (SAG) obligation which ensures that students in need have access to the resources they require for their tuition, books, and mandatory fees.
In terms of University support, there are two major funding Allocation of Student Aid sources for student financial aid; the General Operating Budget and Endowments and Trusts, which include funds 100% 20% from external donors or funding agencies such as the federal 80% research granting councils. Donors and other external sources 58% tend to restrict their support for merit-based programs. 60% Graduate students tend to receive more of their support in 40% 80% the form of merit-based awards, which comprise 80% of what they receive. Undergraduate tend to receive a larger share of 20% 42% needs-based support, which comprises 58% of what they receive. (refer to chart) 0% Graduate Undergraduate
Merit-Based Need-Based Over a 3 year period, direct student assistance by the University and the provincial changes to the OSAP program has increased significantly. The tables below show the University support increasing within the General Operating Fund by a total of 25.9% for an overall University increase of 17%. Early indications are new Net Tuition OSAP support levels increasing by 24% over three years to approximately $118 million with almost 50% of that amount awarded as OSAP grants. 21 Student aid from General Operating in 2018 2019 includes another $2.3 million in base funds from the General Operating budget. Contained in the new allocation for 2018 2019 are:
. $0.700 million in new needs-based funding mainly for undergraduate students under the provincial tuition set aside requirements to allocate 10% of the increase in revenue derived from regulated fee increases for student assistance. . $1.000 million in support of the Student Access Guarantee obligation. . $0.600 million contribution to a new $1.5 million International Doctoral Tuition Scholarship.
The tables below show the distribution of planned funding by program level and funding sources. Increases in General Operating Fund undergraduate support are focused in needs-based programs while graduate awards, in recent years have been mainly for merit-based programs designed to attract the high-quality students in an increasingly competitive environment.
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TOTAL SCHOLARSHIPS AND BURSARIES By Funding Source in $millions 16/17 17/18 18/19 3 Year Actual Forecast Plan % CHG General Operating Undergraduate 19.10 21.82 23.53 Graduate 9.51 11.05 12.47 Total General Operating 28.60 32.87 36.00 25.9% Endowment and Trust Undergraduate 3.73 3.72 3.75 Graduate 9.13 8.70 8.75 Total Endowment and Trust 12.86 12.42 12.50 -2.8% TOTAL SCHOLARSHIPS AND BURSARIES 41.46 45.29 48.50 17.0% Total Share from Operating Fund 69% 73% 74% Total Share from Endowments and Trust 31% 27% 26%
TOTAL SCHOLARSHIPS AND BURSARIES By Program Level in $millions 16/17 17/18 18/19 3 Year Actual Forecast Plan % CHG Recipients Undergraduate Needs Based (including work study and URA) 12.20 14.22 15.87 Merit Based 10.62 11.32 11.41 Undergraduate 22.823 25.54 27.28 19.5% Graduate Needs Based (including work study and URA) 4.08 4.15 4.28 Merit Based 14.56 15.60 16.94 Total Graduate 18.64 19.75 21.22 13.8% TOTAL SCHOLARSHIPS AND BURSARIES 41.46 45.29 48.50 17.0% 22
Academic Activity Based Funds
The University has specialized pools of funding assigned for certain “performance-based” activities in academic programs. Much of this funding is allocated to colleges based on achieving certain enrolment targets. The following currently are the major programs with related assumptions for 2017 2018.
Graduate Enrolment Support:
In 2007, the University began to allocate funds to colleges based upon growth in graduate student General Operating Fund enrolments that were eligible17 for provincial funding. The purpose of this allocation process was to support a planned growth in the number of graduate students consistent with multi-year enrolment targets negotiated with the province. In 2016 2017, there was a substantial increase of 149 FTEs in masters-level students. This was followed up in 2017 2018 with another 62 masters FTEs and 21 PhD FTEs.
17 “eligibility” in this case refers to student enrolment that will attract provincial grant funding. Currently provincial funding is not provided for all international students nor domestic (Canadian residence) students who are enrolled passed a prescribed period of study. Of the total population of ineligible graduate FTEs at the University approximately 60% are international students.
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Under the University’s allocation process, additional funding for this growth is provided to colleges at the rate of $6,000 per eligible Masters FTE and $10,000 per Doctoral FTE. In 2017 2018, an additional $0.560 million will be provided in the on-going budget assumptions to maintain the colleges at this new level.
Research Support Funds Research Support Funds: $5.8 Million for 2017 2018 Activity-based funding also includes funds allocated based on research results and new initiatives. Under Contingency this general funding “umbrella” there are several and Other Industry Indirect Support, $1.8 programs: Return, $2.4
• Industry Indirect Returns: for many years, the University has had a program whereby approximately 45% of the indirect costs received Arrell Food Inst, $1.0 Federal Indirect on industry and agency research contracts are Return, $0.6 returned to colleges for investment in research support services. • Federal Indirect Returns: Funds transferred to colleges each year based on both tri-council and other government and industry research funding awarded • The Arrell Food Institute: Created by a $20 million transformation gift received in 2017. The University will match gift funds at the target level of $2.0 million per year over 10 years at steady state. After an initial internal allocation to seed the startup of the Institute in 2017, an additional $0.6 million is added for 2018 2019 to contribute to match costs including the expected hiring of three research chairs, annual communication and outreach and graduate student support. • Other Support: Includes a Research Infrastructure Operating Fund (RIOF) supporting research facilities and several other smaller reserves and allocations specific for support of research. This funding is allocated through the Office of the Vice-President Research to support research activities such as improving University research facilities and leveraging research funding opportunities. 23 Incremental Funding
It is important that initiatives from across the University that contribute effectively and efficiently to
achieving the University’s strategic and budgetary goals have access to funding with the appropriate review and approvals. As part of the Integrated Planning processes of the past, varying levels of funding have been provided to “seed” new ideas with the appropriate level of review and approval.
In 2018 2019 it is proposed to continue to invest incremental funding to support high priority projects/programs. There is $3.0 million in designated funding to be allocated in 2018 2019 along with one- time funding from reserves if necessary for the program priorities. General Operating Fund Balancing the 2018 2019 Budget Balance Budget Contribution
For 2018 2019, the University is projected to have an in-year budget deficit of $5.9 million. Although such budgets have been presented in the past, the circumstances are much different in that the University reserves allow the institution to develop a different narrative for 2018 2019.
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To close the gap, each College and Division will contribute one-time funds based on their respective total budget. In the instance that the efforts yield a different 2018 2019 budget picture by January 2019, some or possibly all the one-time contributions may be returned to each College / Division at that time.
Contribution will be based on the total budget of the College or Division for 2016 2017. Consideration was given to the proportion that any unit could contribute to ensure they remain financially sound.
As another indicator used in the methodology, the Carryforward Policy will also be a factor in determining the level of contribution. Furthermore, any unit that is exempt from the Carryforward Policy (Student Assistance, Research Institutes, and General University Expenses) will not contribute to balancing the budget.
Units that reported to be above the Carryforward policy for the 12 months ended April 30, 2017 will contribute a higher proportion than those under the policy limit. 90% of the units were above policy limit and therefore, a majority will not qualify for the lesser contribution percentage.
This should not be viewed as an exercise in enforcing the carryforward policy, but rather, the goal of the contribution level rules is to primarily ensure that each unit remains in a good position for the coming year. Carryforward levels are a simplified proxy to determine a unit’s financial standing.
Financial Reserves
Over recent fiscal years, enrolment growth greater than planned combined with cost containment programs helped generate operating surpluses that were used to increase both University and department reserves. These reserves, not only provide a considerable level of financial liquidity but help mitigate a number of significant financial risks including revenue volatility, unplanned capital renewal and potential pension and non-pension post–employment costs. Major reserves currently classified as;
. Divisional Reserves: funds generated within colleges and operating divisions through local cost- containment or revenue generating actions. Units are permitted to retain control of these funds subject to a Board-approved policy. . General Reserves: funds accumulated mainly from University-level revenues e.g. positive 24 enrolment gains in any year. These funds buffer against any in-year funding declines and when required, funding for one-time priorities such as capital projects.
. Post-Employment Benefits; funds targeted to sustain pension contributions that exceed annual budget provisions.
The following table shows some recent history of Operating Budget Reserves as well as a forecast position to the end of fiscal 2018 2019: General Operating Fund
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FINANCIAL RESERVES in $millions 14/15 15/16 16/17 17/18 Actual Actual Actual Forecast Divisional Reserves 71.0 82.6 95.7 94.2 General Reserves 48.0 68.6 73.7 69.6 Total General Operating Reserves 119.0 151.2 169.4 163.8
Post Employment Benefits 74.0 71.7 64.6 45.9 Self Insured Losses / Guelph-Humber 2.5 1.9 3.3 3.3 Total Internally Restricted 195.5 224.8 237.3 213.0 Unrestricted (300.5) (345.3) (308.0) (295.0) TOTAL NET ASSETS OPERATING (105.0) (120.5) (70.7) (82.0)
Summary of General Operating Fund Revenue and Expense Additions
In summary for the 2018 2019 General Operating Budget, the expense additions include inflation costs, new investments and designation of funds for incremental priorities for a total of $20.4 million. On the revenue side, the budget identifies incremental revenues primarily from credit tuition (both flow through of 2017 2018 enrolment gains and tuition rate increases and targeted international undergraduate enrolment growth) plus other miscellaneous revenues and recoveries and budget reallocations from prior years for a total of $14.53 million. The funding gap of $5.9 million has been covered by budget contributions from colleges and divisions to balance the budget for the year.
The chart below summarizes the major incremental expense additions allocated in the 2018 2019 General Operating Budget. They reflect the major budget priorities of meeting general costs increases, investing in student recruitment and accessibility and providing funds for new programs and services.
2018 2019 General Operating Funds - Allocation to Expense Increases TOTAL $20.4 million (in $millions)
25 Infrastructure - Financial Aid New $2.20 $2.30 Infrastructure-
Inflation $0.61
Incremental Fund Academic Other $3.00 Programs Inflation - $5.72 $1.96 Compensation
General Operating Fund $9.57
Support Programs $0.76
The chart below summarizes the major base budget assumptions that provided the funding for supporting the additions above. The major contribution was setting the new higher enrolment level relative to the
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previous assumption, which included a decline. “Budget Reallocations” are funds previously allocated for other budget purposes, released to support new allocations (above).
2018 2019 General Operating Funds - Additions of Revenues TOTAL $14.53 million (in $millions)
Last Year's Enrolment Increase 18/19 Tuition $2.91 Rate Increase $5.75
2018 2019 Tuition Budget Income $7.36 Reallocations $3.50
18/19 Enrolment Increase Other Revenues $1.61 $0.76
"Last Year's Enrolment Increase" refers to additional tuition income from enrolments having exceeded targets last year (2017 2018). These revenues will be regenerated in 2018 2019 by targeting to maintain the Graduate enrolment level and used to assist in balancing the 2018 2019 budget.
26
General Operating Fund
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C. OMAFRA Agreement Since its founding, the University of Guelph has had a unique relationship with the Ontario Ministry of Agriculture, Food and Rural Affairs (OMAFRA) to deliver research and other services to the Ontario agri- food sector. Activities covered in the agreement include; the operation of two major animal health and food testing laboratories located in Guelph; managing extensive agri-food research facilities across Ontario; supporting veterinary clinical education; providing individual faculty-based research project-based funding across a wide range of disciplines and commodities and supporting knowledge mobilization and commercialization.
While funding within the agreement is restricted and cannot be used for general University purposes, agreement funding does support over 400 University faculty and staff and provides $10.5 million annually in support of indirect costs related to the agreement.
On January 30, 2018 the University of Guelph signed a 10 year renewal of the OMAFRA-U of G Agreement to continue the long-term partnership for discovery and innovation. The renewed agreement includes confirmation for annual funding of $71.3 million. The agreement continues the support for U of G faculty, staff, research and facilities across the five existing major program areas covering Research, Veterinary Capacity, Animal Health Laboratory, Agriculture and Food Laboratory and the Research Station Property Management program.
As a result of the timing of the renewal, the joint agreement leadership and program management will proceed with detailed budget development and program implementation planning with a target of bringing a final 2018 2019 agreement budget forward for approval in June 2018.
27
OMAFRA
2018-19 University of Guelph Budget [Motion] Page 88 of 220 Ancillary Units
D. Ancillary Units Ancillary Units at the University provide a number of important support services to students and staff that are not directly associated with the delivery of academic programs. Typically these types of services are ineligible for support from provincial grants or tuition fees meaning costs must be covered from user fees. Collectively, Ancillary units comprise 10% of the University’s total revenue and have a mandate to run balanced fiscal operations. Ancillary 2018 2019 Revenues by Unit $88.4 million Full-costs in this context include all capital costs such as the acquisition and maintenance of buildings, land Real Estate improvements and equipment. In this 7% Hospitality respect they are unique in the University Services fiscal structure. The University’s five 45% Parking Ancillary units consist of; Services 5%
1. Hospitality Services Student 2. Student Housing Services Housing University 3. Real Estate Division 40% Centre 3% 4. Parking and Sustainable Transportation Services 5. University Centre Administration
In setting budget assumptions, each Ancillary unit develops an annual plan that reflects the unique nature of their operations. Revenue from Ancillary units are concentrated in two units; Hospitality Services (on- campus food and retail) and Student Housing (on-campus residence) that together make up 85% of total revenues. Ancillary 2018 2019 Revenues by Source 28 Revenue is mainly earned on a fee-for-service $88.4 million basis from both internal clients (employees and students) and the public through events and retail services. However, with the primary mandate to provide student services, Real Estate Other Sales 7% especially food and housing, almost 50% of 39%
total ancillary income is derived from student contracts for either food or residence charged on a per semester basis. The Real Estate Parking Division is a unit that is overseen by the Student Revenues University’s Board of Trustees with the Fees 5% Ancillary Units mandate to “monetize” Board-designated 49% real properties to add to the University’s Heritage Endowment. In setting fees and service options both Hospitality and Student Housing Services engage extensively with students through advisory committees. Budgets are reviewed in detail by these student groups to ensure support for the major underlying assumptions.
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Expenses across all Ancillary units are spread across staffing, operating and capital costs. Capital costs are concentrated in Student Ancillary 2018 2019 Expenses by Type Housing and operating costs are mainly in $94.4 million Hospitality Services in the form of product (food and retail) costs. Transfers from Ancillary Capital and Units are to the Operating Funds mainly for debt Transfers to services such as space and administration Servicing Endowment costs. 28% 5%
In summary for the 2018 2019 fiscal year, the Operating 28% Transfers to combined results for the five ancillary Operating operations plan for increased capital and Fund Personnel 15% renovation costs funded from operations cash 26% flow and using $6.0 million in prior years reserves without increasing borrowing or debt as a result. Individual plans are discussed below.
Combined Ancillary Unit Budget Table 2018 2019
The table below summarizes total income, expense and transfers for the University’s five ancillary units.
Total revenues are expected to be unchanged from 2017 2018 actuals overall with some variation by unit.
Compared to last fiscal year, estimated operating expenses and net transfers, excluding capital and renovations, will increase by 4.2%. Salaries and benefits are increasing 7.7% in total due to the cost increases for part time and student staff members due to minimum wage increases and other annual 29 general salary increases. Student Housing also increased the pay scale for Resident Life staff members.
Planned expenditures for “Renovations/Cap Equipment” are increasing by 20% which results in an overall operating result of a $6.03 million deficit. This use of reserves reflects capital spending in Student Housing and Parking. This deficit will be fully funded from accumulated reserves in the divisions. The remaining three ancillary operations are projecting small surpluses.
Ancillary Units
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Summary $ thousands
% Change 2016/2017 2017/2018 2017/2018 2018/2019 Budget To Actuals Budget Forecast Budget Forecast REVENUES 43,457 41,634 42,797 Student Fees - Contracts (Food & Housing) 42,910 0.3% 34,181 34,125 34,219 Other Sales of Goods and Services 35,035 2.4% 5,749 5,632 6,505 Real Estate - Lease and Property Income 6,287 -3.4% 4,194 4,150 4,598 Parking Revenues 4,150 -9.7%
87,581 85,541 88,119 Total Revenues 88,382 0.3%
EXPENSES 18,253 18,619 18,770 Salaries 20,225 7.7% 3,673 3,954 3,947 Benefits and Pension 4,249 7.7% 8,315 11,056 10,236 Renovations/Cap Equipment 15,287 49.3% 6,424 6,581 6,548 Debt Servicing 7,296 11.4% 1,014 1,102 1,027 Utilities 1,148 11.8% 25,182 24,801 24,674 Operating 24,938 1.1% 62,861 66,113 65,202 Total Expenses 73,143 12.2%
UNIVERSITY TRANSFERS 6,193 4,359 4,554 To Heritage 5,249 15.3% 12,122 12,330 12,279 To Operating 12,442 1.3% 3,680 4,009 3,657 To Major Capital & Debt Servicing 3,577 -2.2% 21,995 20,698 20,490 Total University Transfers 21,268 3.8%
2,725 (1,270) 2,427 Operating Results (Unrestricted) (6,029) 30
11,752 14,477 14,477 Opening Fund Balances - Unrestricted 16,904 2,725 (1,270) 2,427 Change (6,029) 14,477 13,207 16,904 Closing Fund Balances - Unrestricted 10,875
Highlights for Ancillary Units for 2018 2019
1. HOSPITALITY SERVICES
Hospitality Services is a $40 million operation responsible for all food and catering services on the main Ancillary Units campus. In addition certain retail and bookstore operations fall under the responsibility of Hospitality Services. Each year a student advisory group reviews the Hospitality Services budget and for the 2018 2019 budget provided their support. The major source of revenue is the sale of food contracts to students consisting of 4,100 residence meal plans and 19,500 meal plans sold to off campus students per year. Other income is earned from sales to staff and event catering services. For 2018 2019:
. Meal Plan (minimum) rates to increase by 3.0%. This increase will keep Hospitality Services positioned in the lower middle of the range of mandatory food plan process for other universities
2018-19 University of Guelph Budget [Motion] Page 91 of 220
in Ontario. From a competitive position, Hospitality Services is consistently ranked as #1 in Canada for its emphasis on local food. Overall 2018 2019 revenues are expected to increase by 3% over 2017 2018 forecast. . Expenses are driven mainly by the cost of products (37% of expenses), especially food costs. Costs will be contained through expanded co-operative, bulk and local buying. Personnel costs (38% of expenses) will increase by 5.6% allowing for centrally negotiated increases and the resulting increasing costs of part time staff costs due to recent legislation. Hospitality Services employs approximately 700 part time staff members. Note that any changes made to cope with increasing costs will not negatively impact on quality or service. . Capital renovations will total $0.975 million and include upgrades to kitchen and eating areas at a number of locations across the main campus. . Overall the annual budget will be balanced.
2. STUDENT HOUSING SERVICES
Student Housing Services is a $35 million operation that manages the University’s residence facilities for both single and family housing. Currently 87% of Student Housing Services revenues are derived from student contracts for 4,700 single and 300 family accommodations. Given the very capital intensive nature of housing operations, annually 52% of Student Housing expenses are allocated for capital related costs including debt servicing and renovations. As part of the budget development process, SHS completed a five year budget plan guided by their high level goals of Sustainability, Accessibility and Marketability. Each year a student advisory group reviews the Student Housing Services budget and for the 2018 2019 budget provided their support.
For 2018 2019: 31 . Single student residence fees will increase by 2.1% which includes a $30 per semester charge for a revised laundry services plan. The program replaces a former mandatory laundry card purchase system. The base rate increase will maintain the University’s position in the mid-range of fees in the Ontario system. The occupancy assumption for 2018/2019 for planning purposes is 95% for their regular capacity. Family Housing rent increases of 1.8% follow the provincially allowed RTA increase. Overall revenues are budgeted to increase by 2% over last year’s budget from both student contracts and summer conference activity. . Overall operating costs excluding capital costs are budgeted to increase by 4.7% due to part time staff increases and a revised salary plan for Residence Life staff to match costs of living in residence and comparable with new minimum wage rates. Expenses are weighted to operating Ancillary Units and maintaining the residence buildings with 50% allocated for capital costs, debt financing and renovations. Other operating costs including custodial and utilities charges. . Charges for capital projects and renovations are budgeted to increase to $18 million which includes $5.7 million for year 2 of a 6 year project to refurbish the exterior of the South residence complex. The capital plan has a focus on safety and deferred maintenance. . Overall Student Housing is expected to draw down its accumulated reserves, which are forecast to be $8.3 million on April 30 2018, by $3.8 million. No new borrowing or debt is required for the 2018 2019 capital plans.
2018-19 University of Guelph Budget [Motion] Page 92 of 220
3. PARKING (AND SUSTAINABLE TRANSPORTATION) SERVICES
Parking Services is a $4.2 million annual operation responsible for the administration of 5,400 parking spaces on the University’s main campus. Revenues are derived from parking fees charged through annual, semester and daily fees. In addition, Parking Services is responsible for 22 kilometers of University roadways and 56 kilometers of sidewalks, as well as related lighting, signage and the emergency phone poles. For 2018 2019:
. Commuting annual permits rates will remain unchanged for the year to keep the cost of a commuting permit in line with the costs of a reduced rate Guelph Transit pass. . Operating costs are increasing to add a new assistant manager position to assist service levels and efficient operations. Initiatives include the installation of new campus wayfinding signage at $0.831 million (deferred from last year) and the completion of Lang Way (Powerhouse Lane) for $1.575 million. In addition, Parking Services will continue to contribute $0.887 million to support the General Operating Fund. . The total major capital investment of $3.356 million will be funded from cash flow from operations and a planned $2.17 million draw on prior year reserves.
4. REAL ESTATE DIVISION
The Real Estate Division is a unit dedicated to the sale, rental or lease of certain of the University’s real property designated as surplus to the University’s current academic requirements. All net proceeds of this activity are transferred to the Heritage Fund Endowment under Board policy. A separate Board of Trustees has been delegated the responsibility for the operational oversight of the Real Estate Division activities. Main revenue sources include lease payments and occasional property sales. Currently annual revenues are forecast at $6.5 million, about $4.6 million of which will be transferred to the Heritage Endowment. For 2018 2019: 32
. Revenues budgeted at $6.3 million reflecting the normal expected annual income from leased and rental properties. . There are no major capital expenses planned for 2018 2019. Overall capital debt in the division is expected to decrease by $0.435 million to a very manageable $4.5 million. . Overall net income is expected to be $5.2 million which will be targeted for transfer into the
Heritage Endowment.
5. UNIVERSITY CENTRE ADMINISTRATION
University Centre Administration is a $2.7 million annual operation responsible for the administration of a Ancillary Units portion of the University Centre building. Its mandate is to be the focus for the University as a community, providing those social, recreational and cultural activities that are not normally provided through other services. Major operating units include a licensed lounge (the Brass Taps) and the organization of entertainment and cultural events in the University Centre. The University Centre Administration has a separate Board that oversees annual operations and has a separate reporting relationship directly to the University of Guelph’s Board of Governors. For 2018 2019:
2018-19 University of Guelph Budget [Motion] Page 93 of 220
. Overall revenues are expected to increase by 2% overall due to increases in prices in the Brass Taps (licensed lounge) to match expense increases and a 1.7% increase in the student compulsory fee. . Expenses are expected to increase by 1.5% and overall there is a $0.030 million surplus expected at the end of the fiscal year after a $0.180 million planned renovation in the Brass Taps facility. Results overall are in line with results of the prior year.
33
Ancillary Units
2018-19 University of Guelph Budget [Motion] Page 94 of 220 Capital Plan 2018 2019
E. Capital Plan 2017 2018 Prioritizing Capital Projects
The average age of the University of Guelph’s 145 buildings is 49 years, making it one of the oldest campuses in the Ontario university system. Several buildings have “heritage” designations with many dating back to the 19th and early 20th century in origin. In addition, as with many other universities in Ontario, a large portion of the University’s buildings were constructed in the late 1960’s and early 1970’s, meaning many of these are reaching or surpassing their normal expected life spans. Paralleling buildings, and as important, are the utilities infrastructures necessary to support the extensive, research, teaching and service facilities contained in 6.6 million square feet of buildings across the main campus. Combined buildings and utilities infrastructure have an estimated total replacement value of $1.8 billion. With decades of limited funding available for maintaining these assets, a deferred maintenance estimate for the University’s main campus (all building including residences) is estimated at $310 million. Our Facilities Condition Index (FCI) is 17 (any rating above 15 is considered “Poor”) – the Ontario university system average is an FCI of 11.
Maintaining capacity and quality of space under these conditions is an on-going challenge, not only from the practical consideration of just how much can be done each year and still operate programs and services, but also to find sufficient funding for deferred maintenance to sustain an on-going improvement program at the level it should be.
In 2007, recognizing that current provincial funding support for capital renewal of $1.5 million annually was wholly inadequate; the University undertook a multi-year borrowing program with the main objective of balancing growing critical deferred maintenance requirements with affordable debt. While recent past investments under this program (averaging between $15 million and $20 million annually) were considerable, they were not be able to address the growing backlog of capital maintenance created from many years of underfunding. 34 The 2018 2019 Annual Capital Plan:
A formal annual capital planning and prioritization for major projects has been an on-going process
across the University for several years. As part of this annual process, funding requirements for major capital projects, including deferred maintenance programs are reviewed for the next year in the context of available resources including the level of provincial support and debt capacity. Capital program decisions are made in the context of two major objectives; maintaining what we have and enabling new and improved programs and services. More specifically plans are organized around the following project groupings;
1. Capital Renewal: this refers to investments for main campus buildings and related infrastructure Capital Plan 2018 2019 used for teaching, research and service programs. For the most part, spending in this category is directed to ensuring on-going capacity – with limited program enhancements.
For capital renewal planning on the main campus and other major operational centres that are capital dependent (e.g., residences, parking and athletics), rolling 5-year deferred maintenance plans are prepared each year and presented in the Annual Capital Plan. For major building and utility infrastructures, an extensive building and facilities condition audit is used to determine capital priorities, project schedules and the capital investments required. The plan enables the University to
2018-19 University of Guelph Budget [Motion] Page 95 of 220
prioritize the capital investment required to address critical capital renewal and reduce the likelihood of a major building or utility breakdown. Included in this category are projects that improve utilities energy efficiency. Savings recently experienced in the central utilities budget are in part a reflection of these continuous investments. Other projects for 2017 2018 include work on historically designated buildings (Massey, Alumni) and a continuing project for upgrades to electronic building access.
2. Major Building and Renovations: this grouping consists of major individual projects (normally over $2 million) such as new buildings or major repurposing/renovations of existing buildings. Investments in this category often include major refurbishment and renewal that can enhance program delivery and services. Recent examples in this category include the recent Strategic Infrastructure (SIF) projects.
Summary – 2018 2019 Capital Plan $55.9 million
In January 2018, the Board of Governors was presented the University’s 2018 2019 Annual Capital Plan. The approved plan includes continuing renewal, student housing upgrades and two of four new Major Building projects (two projects will be presented for approval when project estimates are confirmed).
Total costs of these projects was $55.9 million, funded from internal reserves ($14.5 million), the Heritage Fund ($9.5 million), fundraising and grants $6.7 million and internal financing supported from the General Operating Budget $25.2 million. Major projects include:
• Community Improv Theatre addition to MacKinnon ($4.6 million) funded from a 2018 2019 Capital Plans 35 CFI grant and internal financing Major Programs • MacKinnon north wing renovations Former VMI Residences, ($14.8 million est.) Building, $10.7 , 19% • the annual main campus deferred $12.5 , Main maintenance program ($10.3 million) 22%
Campus • Residence upgrades ($10.7 million) DM, funded by Student Housing reserves $10.3 , 19% • Renovation and re-purposing of the MacKinnon former VMI building to relocate clinical Alumni Building , Stadium, psychology and therapy programs $19.4 , 35% ($12.5 million est.) $3.0 , 5%
Capital Plan 2018 2019 • Alumni Stadium grounds ($3.0 million)
2018-19 University of Guelph Budget [Motion] Page 96 of 220
About 12% of the total funding for these projects will be federal and provincial government grants and fund raising. Existing University reserves and $9.5 million from the Heritage Fund will provide 43% of funds. Closing the funding gap will be $25.2 million (45%) in internal financing requirements. 2018 2019 Capital Plans For financing, the University typically has two Major Funding Sources options; first external debt e.g., from any number Provincial of banks; second temporarily using internal cash Internal Grants, Financing, resources. At this time it is proposed to $1.7 , 3% $25.2 , Federal temporarily use internal working capital 45% Grants, (liquidity) as this internal financing source. This is $1.9 , 4% based upon the current overall financial position Reserves/ the University is in with respect to funds which Heritage Fund are not immediately required for spending. Fund, Raising, $24.1 , $3.0 , 5% Currently these funds are invested in short term 43% instruments with low yields. Temporarily using these funds for this capital financing purposes will avoid more expensive external debt. Funds will be replenished over time under an amortization schedule that will charge the Operating Budget over a period not to exceed 15 years.
Debt Capacity
Under the University’s Capital Debt Policy are a series of metrics or “financial health indicators” with benchmarks that are used in monitoring capital debt levels and the costs of servicing that debt. (These metrics are reported each year as part of the Annual Financial Report and Audited Financial Statements.) 36 In addition to external debt from banks and other external lenders, the University also uses its internal working capital on a temporary basis to finance certain projects (referred to as internal financing). External debt is normally applied to very large projects with extended life expectancies e.g., major new buildings. Internal financing generally is used on lower-cost projects that have shorter expected pay-
back periods and economic impact. Examples where internal financing has been used include many of the parking renovations and capital renewal projects including the financing required for the federal government SIF program projects. Capital Plan 2017 2018
2018-19 University of Guelph Budget [Motion] Page 97 of 220
Capital financing decisions are made in the context of risk/return, cost/benefit of the Total University Financing project under consideration for approval. The Recent and Projected - Internal plus External adjacent chart shows the current total $350 University projected external and internal debt for the next five-years. It assumes no new $300 $24 $66 $83 external borrowing and internal financing $250 $88 $91 $12 $94 limited primarily to critical deferred $200 maintenance and renovation items. It is $150 important to note that this projection is not a $241 $229 $212 $217 $205 plan, but a trajectory of what the current debt $100 $193 $180 loads would be, given the 2018 2019 Capital $50 Plan completion and minimal future external $0 borrowing. 2016 2017 2018 2019 2020 2021 2022
Relative to financial health metrics, with External Internal projected interest rate increases, the University is within major debt-management benchmarks under our policies.
Financing Costs
The total financing costs as a result of the 2018 2019 capital plan spending, once fulling completed, are estimated at just over $2 million annually. All of this cost will be allocated to the General Operating Budget as a result of the focus on the capital renewal of main campus and primarily academic space.
37
Capital Plan 2018 2019
2018-19 University of Guelph Budget [Motion] Page 98 of 220
BUDGET PLAN
Supplementary Appendices 2018 2019
Prepared for the Board of Governors
April 20, 2018
2018-19 University of Guelph Budget [Motion] Page 99 of 220 General Operating Fund - Supplementary Appendices
The following tables have been prepared to provide further details on the General Operating Budget in the context of the 2018 2019 Budget Plan.
Contents Table A: 2018 2019 Tuition Fee Increases ...... 3 Table B: Proposed Non Tuition Compulsory Student Fees – Guelph Campus ...... 4 Table C: Proposed Non Tuition Compulsory and Ancillary Fees – Ridgetown Campus ...... 5 Table D: General Operating Forecast Results for 2017 2018 (in thousands of dollars) ...... 6 Table E: 2018 2019 General Operating Budget ...... 9 Table F: 2018 2019 Balance Budget Contribution ...... 13 Table G: Faculty Position Summary – All Funds (Full Time Equivalents) ...... 14 Table H: Full-time Equivalents (FTE’s) for General Operating Budgeted Positions ...... 15
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2018-19 University of Guelph Budget [Motion] Page 100 of 220 General Operating Fund - Supplementary Appendices
Table A: 2018 2019 Tuition Fee Increases The listing of the approved increases in tuition fees by category are presented in Table A below.
A: MAESD Provincially Regulated Tuition Fees Subject to an overall 3% “cap” of the total institutional average increase. The actual fee increase by program at the University will be determined in accordance with this framework. These fees were already approved in Fall 2017 in order to meet the requirements of the Net Tuition Billing framework.
Category: Fee Notes Increase Undergraduate (2018/2019 Fee Increase) • Regular Programs 3.0% Full-time and Part-time studies • Professional Programs Note #1 5.0% Full-time and Part-time studies • Engineering for Mech, Comp, Biomed only 3.0% Full-time and Part-time studies • Diploma Programs 3.0% Full-time and Part-time studies Graduate Programs • Regular Masters (MA, MSc, MASc) 1.0% Full-time and Part-time studies • Professionally oriented Note #2 3.5% Full-time and Part-time studies • Doctoral 0.0% Full-time and Part-time studies
B: Full Cost Recovery Programs (Graduate) 2019 2020 Fee Increase Note #3 Canadian & Permanent Status Students 3.0% MBA, MA Leadership Visa (International) Students 3.0% MBA, MA Leadership
C: Tuition Fees not Provincially Regulated: (2018 19 Fee Increase) Note #4
Category: Entering Notes International Undergraduate • Engineering and DVM 8.0% Full-time and Part-time studies • All Other Programs 6.0% Full-time and Part-time studies International Graduate • Regular Masters (MA, MSc, MASc) 2.0% Full-time and Part-time studies • Professionally oriented Note #2 4.0% Full-time and Part-time studies • Doctoral 2.0% Full-time and Part-time studies Note 1 For all professional undergraduate programs (e.g. Business, DVM, BLA, Engineering) except for the Mechanical, Computer and Biomedical Engineering Majors where the increase will be 3%. Note 2 Professionally oriented graduate programs include a range of DVSc and other designated Masters programs. Note 3 Recruitment for full cost recovery Masters programs begin one year prior to the actual intake, fees are presented one year in advance. There will be no increase for 2018 2019. Note 4 For 2017 2018 and earlier cohorts, the in course international students will have no increase in accordance with the University’s past practice of a cohort fee for the length of the program. Students who entered in 2017 2018 or later will no longer have the cohort fee rate guarantee and will be subject to any approved fee increases.
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2018-19 University of Guelph Budget [Motion] Page 101 of 220 General Operating Fund - Supplementary Appendices
Table B: Proposed Non Tuition Compulsory Student Fees – Guelph Campus In accordance with MAESD regulations, non-tuition related compulsory student fees can only be introduced/changed under a protocol established and agreed to with student representatives. The University and student representatives have signed such an agreement which covers the fees shown below. The published Statistics Canada Consumer Price Index (CPI) annual average for Ontario (all items) for 2017 is 1.7%. Each Committee may approve fee increases up to 3% above the CPI for Ontario. (Full-Time FT, Part-Time PT).
Year of 2017 2018 2018 2019 % Guelph Campus Fee Basis Last Approved Recommended Increase Increase Fees Fees Athletic Fee Note #1 FT Undergraduate and Graduate Per semester 2017 $119.55 $124.21 3.9% PT Undergraduate Per semester 2017 $54.85 $56.99 3.9%
Athletic Building Fee Note #2 FT Undergraduate and Graduate Per semester 2017 $48.13 $49.57 3.0% PT Undergraduate Per semester 2017 $24.06 $24.78 3.0%
Student Health Services Fee Note #3 FT Undergraduate and Graduate Per semester 2017 $28.97 $29.84 3.0% PT Undergraduate Per semester 2017 $12.69 $13.07 3.0%
Student Services Fee FT Undergraduate Per semester 2017 $61.79 $62.84 1.7% PT Undergraduate Per 0.5 credit 2017 $12.35 $12.56 1.7% FT Graduate Per semester 2017 $60.19 $61.21 1.7% PT Graduate 30% of FT fee 2017 $18.06 $18.36 1.7%
CBE: Business Career Centre Fee FT Undergraduate BComm Per semester 2017 $51.51 $52.39 1.7% PT Undergraduate BComm Per 0.5 credit 2017 $10.30 $10.48 1.7%
University Centre Fee FT Undergraduate and Graduate Per semester 2017 $14.79 $15.04 1.7% PT Undergraduate Only Per 0.5 credit 2017 $2.95 $3.00 1.7%
Note 1: Approved by the Athletics Advisory Committee. The increase revenue will be used almost entirely to support student labour, to address the increased usage of the new Centre, as well as cost increases due to minimum wage changes
Note 2: This is a 30 year fee initiated in fall 2009, and approved through a referendum process to increase annually by 3%
Note 3: Approved by the Student Wellness Advisory Committee to support additional hours of the nutritionist to meet increasing demand
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2018-19 University of Guelph Budget [Motion] Page 102 of 220 General Operating Fund - Supplementary Appendices
Table C: Proposed Non Tuition Compulsory and Ancillary Fees – Ridgetown Campus
The Ridgetown Campus of the Ontario Agricultural College has a focus on applied agriculture, animal science, and environmental research. The fees for Ridgetown students are subject to the same approval processes and protocols as required by the province for Guelph campus students. Tuition fee rate changes are the same as noted in Table A above.
Year of 2017 2018 2018 2019 % Ridgetown Campus Fee Basis Last Approved Recommended Increase Increase Fees Fees A. Compulsory Fees
Athletic Fee Full Time Per semester 2017 $74.77 $76.04 1.7%
Student Communication Fee Full Time Per semester 2017 $49.66 $50.50 1.7%
Building Fee Full Time Per semester 2017 $39.90 $40.58 1.7%
B. Ancillary Fees
Residence Fees Double Occupancy Per semester 2017 $1,246.56 $1,267.75 1.7% Single Occupancy Per semester 2017 $2,494.15 $2,536.55 1.7%
Meal Plan Fees Note #1 Required for all Residence Students Per Semester 2017 $1,399.56 $1,483.53 6.0%
Note 1: As a result of the Ontario Minimum Wage adjustments effective January 1, 2018, both food and wages will impact meal plan fees for 2018-19. Blended rate of 6% attributed to 3% for minimum wage costs and 3% for food cost increases. Historically this has only increased by CPI on food. The contract with Compass Canada has a provision for annual increases.
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2018-19 University of Guelph Budget [Motion] Page 103 of 220 Budget [Motion] 2018 General Operating Fund - Supplementary Appendices - 19 University of Guelph Table D: General Operating Forecast Results for 2017 2018 (in thousands of dollars) In the winter semester all operating units prepare detailed forecasts of their year-end revenues and expenses. Table D shows the expected results compared to annual unit budgets. Actual Results will not be determined until the year end is closed at April 30th. Column definitions in the table are: * Net Annual Budget is the net unit target for the year, excluding any fund balance (carryforward) remaining from the prior (ie 2016 2017) fiscal year. * Revenue/Recoveries are external funds received from a variety of sources (ie. grant, tuition, student fees, sales of goods and services, and cost recoveries from other sources such as Guelph Humber programs or the OMAFRA agreement. * Expenses are the total costs of personnel and operating incurred by the unit in delivering programs and services. * Net Actuals are the forecast results for the unit consisting of the total expenses less any revenues credited to the unit. * Variance is the forecast difference between the Net Annual Budget for each unit compared to Net Actual results. Bracketed numbers are deficit results. * 2017 2018 Carryforward is the unit’s forecast ending fund balance for the fiscal year calculated by adding the Carryforward from 2016 2017 to the Variance General Operating Forecast Results for 2017 2018 by Unit (in thousands of dollars) Net Forecast Plus Carry- 2017 2018 Annual Variance forward from Carry- Revenue Expenses Net Actuals Budget +(-) 2016 2017 Forward Institutional Revenues and Recoveries Provincial Grants 170,300 171,297 171,297 997 997 Tuition Revenue 186,990 189,896 189,896 2,906 2,906 Other Revenues 5,127 5,110 5,110 (17) (17) Total Institutional Revenues 362,417 366,303 366,303 3,886 3,886
Research Revenues & Cost Recoveries OMAFRA Indirect - Research 9,830 9,830 9,830 0 0 Fed/Prov Research Indirect Programs 5,692 5,557 5,557 (135) (135) Research Indirect on Grants and Contracts 5,400 5,345 5,345 (55) (55) Total Research Indirect Revenues and Recoveries 20,922 20,732 20,732 (190) (190)
Other Cost Recoveries Misc. Institutional Cost Recoveries 1,950 1,950 1,950 0 0 Page 104 of 220 Guelph Humber Institutional Recoveries 10,000 11,790 11,790 1,790 1,790 Ancillary Services Recoveries 9,325 9,325 9,325 0 0 External Cost Recoveries 21,275 23,065 23,065 1,790 1,790
Total Institutional Revenues and Recoveries 404,614 410,100 410,100 5,486 5,486
6 Budget [Motion] 2018 General Operating Fund - Supplementary Appendices -
19 University of Guelph General Operating Forecast Results for 2017 2018 by Unit (in thousands of dollars) Net Forecast Plus Carry- 2017 2018 Annual Variance forward from Carry- Revenue Expenses Net Actuals Budget +(-) 2016 2017 Forward Teaching Units College of Arts (COA) 26,940 163 26,434 26,271 669 3,480 4,149 College of Biological Science (CBS) 26,487 400 26,158 25,758 729 4,851 5,580 College of Social and Applied Human Science (CSAHS) 30,303 302 30,324 30,022 281 7,793 8,074 College of Business and Economics (CBE) 18,509 5,022 21,023 16,001 2,508 3,473 5,981 Ontario Agricultural College (OAC) 25,299 13,784 37,696 23,912 1,387 10,928 12,315 Ontario Veterinary College (OVC) 21,216 8,916 31,165 22,249 (1,033) 9,477 8,444 OVC - Health Sciences Centre 3,662 18,967 22,245 3,278 384 3,366 3,750 College of Engineering and Physical Science (CEPS) 37,441 738 39,843 39,105 (1,664) 8,704 7,040 Other Teaching Units 241 0 254 254 (13) 36 23 Total Teaching Units 190,098 48,292 235,142 186,850 3,248 52,108 55,356
Scholarships and Bursaries 23,092 189 25,614 25,425 (2,333) 4,963 2,630
Office of Research 7,208 152 6,830 6,678 530 1,895 2,425 Open Learning and Educational Support 3,460 10,315 15,978 5,663 (2,203) 10,204 8,001 Registrar 6,009 2,236 8,508 6,272 (263) 1,667 1,404 Assoc.VP Academic 971 248 1,248 1,000 (29) 271 242 Graduate Studies 1,168 410 1,527 1,117 51 390 441 Other Academic Services 108 53 102 49 59 462 521 Academic Services 18,924 13,414 34,193 20,779 (1,855) 14,889 13,034 Library Operations & Information Resources 20,915 777 21,740 20,963 (48) 5,667 5,619
Computing & Comm Services & IT Infrastructure 14,762 48 15,484 15,436 (674) 4,735 4,061
Page 105 of 220 Research Institutes 2,048 2,587 5,514 2,927 (879) 2,493 1,614
Student Services 5,444 14,587 19,759 5,172 272 4,265 4,537 Athletics 1,563 10,979 12,913 1,934 (371) 1,656 1,285 Total Student Services 7,007 25,566 32,672 7,106 (99) 5,921 5,822
Total Teaching Units and Academic Support 276,846 90,873 370,359 279,486 (2,640) 90,776 88,136
7 Budget [Motion] 2018 General Operating Fund - Supplementary Appendices -
19 University of Guelph General Operating Forecast Results for 2017 2018 by Unit (in thousands of dollars)
Net Forecast Plus Carry- 2017 2018 Annual Variance forward from Carry- Revenue Expenses Net Actuals Budget +(-) 2016 2017 Forward Physical Resources Operations 24,803 23 24,389 24,366 437 6,492 6,929 Utilities 23,417 0 19,083 19,083 4,334 0 4,334 Capital Infrastructure Support 34,419 0 34,419 34,419 0 0 0 Total Physical Plant 82,639 23 77,891 77,868 4,771 6,492 11,263
External Relations and Public Affairs 8,376 572 10,054 9,482 (1,106) 3,037 1,931 Central Administrative Offices 8,432 13 8,309 8,296 136 316 452 Human Resources 5,173 2 5,346 5,344 (171) 847 676 Financial Services 4,709 462 4,955 4,493 216 448 664 Campus Community Police & Fire Prevention 2,629 100 2,845 2,745 (116) 234 118 General Expenses 10,641 1,171 13,175 12,004 (1,363) 305 (1,058) Transfer to Pension - Special Payments 12,800 12,800 12,800 0 0
Institutional Services and General Expenses 52,760 2,320 57,484 55,164 (2,404) 5,187 2,783
Institutional Accounts and Reserves (7,631) 0 3,225 3,225 (10,856) 66,997 56,141
Total Operating Revenue and Expenses 404,614 93,216 508,959 415,743 (11,129) 169,452 158,323
Net Income (Expense) and Carryforwards 0 503,316 (508,959) (5,643) (5,643) 169,452 163,809
Carryforwards allocated for:
Page 106 of 220 -Departments 97,482 94,185 -General Reserves 71,970 69,624 Total Carryforwards from Operations 169,452 163,809 Estimated Post Employment and Other Reserves 67,853 49,193
Total Estimated General Operating Reserves 237,305 213,002
8 General Operating Fund - Supplementary Appendices
Table E: 2018 2019 General Operating Budget
Table E below presents the results of the preliminary General Operating budget including all budget proposals presented for approval. The table includes detailed budget amounts by operating unit across major revenue and expense categories. The following section is a description of the columns in Table E:
Column A: Provincial Operating Grants funds received by the University from the Ontario Ministry of Advanced Education and Skills Development (MAESD) based on enrolment levels within a target corridor, differentiation and performance based grants, and other targeted and specific purpose grants.
Column B: Tuition Fees are revenues for degree credit and other diploma/non-credit programs.
Column C: Other Revenues all other cash receipts from external sources to the University for goods and services including hospital revenues, sales of course materials and interest income.
Column D: Total Revenues is the sum of all institutional and unit revenues and external cost recoveries as detailed in columns A, B and C.
Column E: Salaries includes budgeted salary costs for all regular full-time, contract and part-time employees.
Column F: Benefits and Pension includes costs incurred by the University as the employer contributions for statutory, negotiated and post-employment benefits for all regular full-time, contract and part-time employees as well as the contribution from the General Operating budget in support of pension plan going concern special payments.
Column G: Scholarships and Bursaries grants given by the University to support students’ educations, awarded on the basis of academic or other achievement or financial need based on OSAP rules and regulations.
Column H: Operating includes the budget allocations for a variety of costs such as equipment purchases, supplies and maintenance for day-to-day operations, travel and renovation expenses less any Internal Recoveries for non- cash transfers based on inter-departmental services provided such as telephone, mail, laboratory charges and physical resources work orders.
Column I: Total Expenses is the total estimated expenditures for all costs in columns E, F, G and H.
Column J: University Transfers include transfers to (from) General Operating for recovery of indirect costs from Ancillary units and the OMAFRA Agreement less the annual transfer from General Operating to Capital for debt servicing and capital cost support.
Column K: Grand Total is the total of departmental expenses less revenues for each major unit plus or minus University Transfers.
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2018-19 University of Guelph Budget [Motion] Page 107 of 220 Budget [Motion] 2018 General Operating Fund - Supplementary Appendices
- 2018 2019 General Operating Budget - by Unit and Major Revenue and Expense Category (in thousands of dollars) 19 University of Guelph
Revenue Expenses (A) (B) (C) (D=A+B+C) (E) (F) (G) (H) (I=E+F+G+H) (J) (K=I-D+J) Provincial Other Benefits and Scholarships University Operating Tuition Fees Total Revenue Salaries Operating Total Expenses Grand Total Revenues Pension and Bursaries Transfers Grants Institutional Revenues and Recoveries Provincial Grants 170,300 - - 170,300 ------170,300 Tuition (for credit programs only) - 197,260 - 197,260 ------197,260 Other Instituational Revenues - - 5,127 5,127 ------5,127 Total Revenues 170,300 197,260 5,127 372,687 ------372,687
Cost Recoveries OMAFRA Service Costs - Research ------(9,830) 9,830 Fed/Prov Research Indirect Cost Programs - - 5,692 5,692 ------5,692 Research Indirect on Grants and Contracts - - 5,400 5,400 ------5,400 Total Research Indirect Revenues and Recoveries - - 11,092 11,092 - - - - - (9,830) 20,922
OMAFRA Service Costs - Other ------(670) 670 Guelph Humber Services - - 10,000 10,000 ------10,000 Ancillary Service Recoveries ------(9,485) 9,485 Other Cost Recoveries - - 10,000 10,000 - - - - - (10,155) 20,155
Total Institutional Revenues and Recoveries 170,300 197,260 26,219 393,779 ------(19,985) 413,764 Page 108 of 220
10 Budget [Motion] 2018 General Operating Fund - Supplementary Appendices
2018 2019 General Operating Budget - by Unit and Major Revenue and Expense Category (in thousands of dollars) - 19 University of Guelph Revenue Expenses (A) (B) (C) (D=A+B+C) (E) (F) (G) (H) (I=E+F+G+H) (J) (K=I-D+J) Provincial Other Benefits and Scholarships University Operating Tuition Fees Total Revenue Salaries Operating Total Expenses Grand Total Revenues Pension and Bursaries Transfers Grants Unit Expenses and Revenues Teaching Units College of Arts - - 1,511 1,511 21,459 4,824 593 2,033 28,908 - 27,397 College of Biological Science - - 1,457 1,457 21,705 5,194 428 1,890 29,216 (1,054) 26,705 College of Social and Applied Human Science - - 3,000 3,000 22,864 5,299 629 5,471 34,262 (153) 31,108 College of Business and Economics - 3,517 2,726 6,243 17,104 3,859 190 4,507 25,660 (144) 19,272 Ontario Agricultural College 4,500 2,493 4,940 11,933 29,663 6,943 315 6,120 43,041 (5,677) 25,431 Ontario Veterinary College 6,500 1,983 18,324 26,807 40,066 8,843 193 6,053 55,155 (4,083) 24,265 College of Engineering and Physical Science - - 447 447 28,094 6,559 653 3,588 38,894 (503) 37,944 Integrated Planning and Academic Support - - - - (131) 46 560 9,662 10,137 - 10,137 Total Teaching Units 11,000 7,993 32,406 51,399 180,823 41,566 3,560 39,323 265,272 (11,613) 202,260
Student Assistance - - - - 37 3 23,526 1,978 25,544 - 25,544
Library - - 1,023 1,023 9,472 2,460 346 9,416 21,695 - 20,672
Computing & Comm Services - - 546 546 8,336 2,284 - 4,275 14,895 - 14,349
Research Institutes Biodiversity - - 1 1 631 183 - (454) 359 - 358 Arrell Food Institute - - - - 95 16 - 489 600 - 600 Advanced Analysis Centre - - 56 56 910 297 - (607) 600 - 544 Total Research Institutes - - 57 57 1,636 495 - (572) 1,559 - 1,502
Academic Services Office of Research - - 22 22 5,182 1,479 - 802 7,463 - 7,442 Open Learning and Educational Support - 7,826 2,513 10,339 6,810 1,805 - 5,169 13,784 - 3,445 Graduate Studies - - 374 374 1,065 302 - 203 1,569 - 1,196
Page 109 of 220 Registrar - - 1,095 1,095 4,478 1,280 - 1,479 7,238 - 6,143 Associate VP Academic - - 57 57 656 192 - 404 1,252 - 1,195 Other Academic Services - - 7 7 94 23 - 3 120 - 113 Total Academic Services - 7,826 4,068 11,894 - 18,285 5,081 - 8,061 31,427 - 19,533
Student Services Student Services 1,474 - 11,606 13,080 11,133 2,739 8 5,446 19,326 - 6,246 Athletics - - 10,719 10,719 6,454 1,260 - 4,601 12,315 - 1,596 Total Student Services 1,474 - 22,325 23,799 17,587 3,999 8 10,046 31,641 - 7,842
Total Teaching and Academic Services 12,474 15,819 60,425 88,718 236,175 55,889 27,441 72,527 392,033 (11,613) 291,702
11 Budget [Motion] 2018 General Operating Fund - Supplementary Appendices
- 2018 2019 General Operating Budget - by Unit and Major Revenue and Expense Category (in thousands of dollars) 19 University of Guelph
Revenue Expenses (A) (B) (C) (D=A+B+C) (E) (F) (G) (H) (I=E+F+G+H) (J) (K=I-D+J) Provincial Other Benefits and Scholarships University Operating Tuition Fees Total Revenue Salaries Operating Total Expenses Grand Total Revenues Pension and Bursaries Transfers Grants Physical Resources Physical Resources Operations - - - - 18,393 5,616 - 3,464 27,473 (2,851) 24,622 Utilities ------23,117 23,117 - 23,117 Total Physical Resources - - - - 18,393 5,616 - 26,581 50,590 (2,851) 47,739
Capital Infrastructure Support ------23,380 23,380
Institutional Services and General Expenses External Relations and Alumni Affairs - - 1,544 1,544 6,087 1,692 - 1,947 9,726 - 8,182 Central Administration Offices 50 - 359 409 15,836 4,437 - 1,493 21,766 - 21,357 University General Expenses - - 108 108 1,187 2,798 - 8,070 12,055 (19) 11,928 Pension Going Concern Special Payments - - - - - 12,800 - - 12,800 - 12,800 Total Institutional Services and General Exp. 50 - 2,011 2,061 23,110 21,728 - 11,510 56,348 (19) 54,267
University Incremental Proposal Fund - - - 3,000 3,000 3,000 Savings Target Remaining* - - - (2,959) (2,959) (2,959) University General Reserves - - - 2,500 2,500 2,500 Total Unit Expenses and Revenues 12,524 15,819 62,436 90,779 277,678 83,233 27,441 113,159 501,511 8,896 419,629
Net Budget 182,824 213,079 88,654 484,558 277,678 83,233 27,441 113,159 501,511 (11,088) (5,865)
• * Savings Target of $3.0 million from prior years for the College of Arts to be covered by one time general reserves until permanent solutions are implemented. Page 110 of 220
12 Budget [Motion] 2018 General Operating Fund - Supplementary Appendices
- 19 University of Guelph Table F: 2018 2019 Balance Budget Contribution
For 2018 2019, the University is projected to have an in-year budget deficit of $5.9 million. To close the gap, each College and Division will contribute one-time funds based on their respective total budget. In the instance that the efforts in the 2018 2019 Budget Plan yield a different budget picture by January 2019, some or possibly all the one-time contributions may be returned to each College / Division at that time.
(In thousands of dollars) Contribution Contribution
College of Arts 120 Academic Services College of Biological Science 440 Office of Research 129 College of Social and Applied Human Science 542 Open Learning and Educational Support 1,028 College of Business and Economics 291 Associate VP Academic 18 Ontario Agricultural College 411 Registrar 118 Ontario Veterinary College 538 Graduate Studies 21 College of Engineering and Physical Science 643 Other Academic Services 46 Total Colleges 2,985 Academic Services 1,361
Biodiversity - Physical Resources Operations 437 Advanced Analysis Centre - Arrell Food Institute - Institutional Services and General Expenses External Relations and Alumni Affairs 161 Library 368 Human Resources 90 Computing and Communication Services 277 Executive Offices 13 Financial Services 29 Student Services and Student Aid Campus Police and Fire Prevention 15 Page 111 of 220 Student Assistance - University General Expenses - Student Services 127 Institutional Services and General Expenses 308 Athletics 4 Student Services 131 Total Non-Teaching Services 2,880 Total Balance Budget Contribution 5,865
13 General Operating Fund - Supplementary Appendices
Table G: Faculty Position Summary – All Funds (Full Time Equivalents)
Table G shows calculated full time equivalent position counts for all faculty including tenure track and contractually limited, by funding source across fiscal years 2013 2014 to 2018 2019 and percentage change over five years, by college/division.
18/19 13/14 to College/Division Funding Source 13/14 14/15 15/16 16/17 17/18 Preliminary 18/19 College of Arts (COA) General Operating 109.0 106.8 106.3 105.8 108.2 109.9 0.8% Research/External 0.9 0.9 1.0 1.1 1.0 1.0 14.5% Total 109.9 107.7 107.3 106.9 109.2 110.9 1.0% Colleges of Biological Science (CBS) General Operating 89.9 93.1 95.8 96.3 98.7 102.1 13.5% Research/External 2.7 2.6 2.5 2.2 1.9 2.6 -2.6% Total 92.6 95.7 98.3 98.5 100.6 104.7 13.1% College of Soc. & App Human Science General Operating 121.3 118.7 122.5 124.5 125.6 132.7 9.4% (CSAHS) Research/External 3.9 3.5 3.4 3.1 3.1 3.7 -3.6% Total 125.2 122.2 125.9 127.6 128.6 136.4 8.9% College of Business & Economic (CBE) General Operating 79.5 79.5 78.3 77.2 77.5 80.3 1.0% Research/External 0.5 0.5 0.5 0.4 0.4 1.1 130.4% Total 80.0 80.0 78.8 77.6 77.9 81.4 1.8% Ontario Agricultural College (OAC) General Operating 122.3 118.8 117.6 126.1 129.3 132.0 7.9% OMAFRA (Direct) 10.1 10.1 7.1 6.4 6.4 6.4 -36.9% Research/External 4.1 8.7 10.4 10.6 11.3 16.7 308.4% Total 136.6 137.6 135.1 143.1 147.0 155.1 13.6% Ontario Veterinary College (OVC) General Operating 117.2 114.7 115.9 114.7 117.3 126.2 7.8% Research/External 0.1 0.3 0.3 0.3 0.3 1.0 827.1% Total 117.3 115.0 116.2 115.0 117.6 127.2 8.4% College of Engineering & Physical Sci General Operating 115.2 120.3 125.5 129.7 137.3 142.3 23.5% (CEPS) Research/External 4.9 3.4 3.1 3.3 3.3 5.3 9.4% Total 120.1 123.7 128.5 133.0 140.5 147.6 22.9% TEACHING UNITS Total 781.6 781.9 790.2 801.6 821.5 863.3 10.5%
Academic support/ Research Institutes General Operating 8.4 8.4 8.4 8.4 8.3 8.2 -3.1% Research/External 2.4 2.4 1.4 1.4 1.4 3.4 39.3% Administration and General Expenses General Operating 4.0 4.0 4.0 4.7 4.6 4.3 8.4% OTHER UNITS Total 14.9 14.9 13.9 14.6 14.3 15.9 7.3%
Grand Total 796.5 796.8 804.0 816.2 835.7 879.3 10.4%
Funding Summary General Operating 766.9 764.3 774.3 787.4 806.7 837.9 9.3% OMAFRA (Direct) 10.1 10.1 7.1 6.4 6.4 6.4 -36.9% Research/External 19.5 22.3 22.6 22.4 22.7 35.0 79.7% Grand Total 796.5 796.8 804.0 816.2 835.7 879.3 10.4%
Note: The Research/External category are faculty positions supported by non-operating funds including research grants and endowed chairs.
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2018-19 University of Guelph Budget [Motion] Page 112 of 220 General Operating Fund - Supplementary Appendices
Table H: Full-time Equivalents (FTE’s) for General Operating Budgeted Positions Table H shows calculated full time equivalent position counts for regular full time faculty and staff across fiscal years 2013 2014 to 2018 2019 and accumulated percentage change over five years, by major operating unit and employee category.
Position 13/14 College/Division 13/14 14/15 15/16 16/17 17/18 18/19 Type to 18/19
College of Arts (COA) Faculty 109.0 106.8 106.3 105.8 108.2 109.9 0.8% Staff 38.8 38.0 38.0 37.1 37.8 38.0 -2.0% College of Biological Science (CBS) Faculty 89.9 93.2 95.8 96.3 98.7 102.1 13.6% Staff 64.4 62.5 61.1 61.4 63.5 63.5 -1.4% College of Social and Applied Human Faculty 121.3 118.7 122.5 124.5 125.6 132.7 9.4% Science (CSAHS) Staff 44.7 45.7 44.6 46.5 48.8 50.0 11.9% College of Business and Economics (CBE) Faculty 79.5 79.5 78.3 77.2 77.5 80.3 1.0% Staff 30.2 29.4 30.4 33.0 35.8 36.5 20.9% Ontario Agricultural College (OAC) Faculty 122.3 118.8 117.6 126.1 129.3 132.0 7.9% Staff 125.2 118.4 85.7 85.3 89.8 91.8 -26.7% Ontario Veterinary College (OVC) Faculty 117.2 114.7 115.9 114.7 117.3 126.2 7.7% (Including Health Sciences Centre) Staff 209.1 191.7 184.1 181.9 185.5 195.4 -6.6% College of Engineering and Physical Faculty 115.2 120.3 125.5 129.7 137.3 142.3 23.5% Science (CEPS) Staff 70.5 68.8 69.1 73.0 75.7 76.2 8.1% Teaching Units - Faculty 754.4 752.0 761.9 774.2 793.8 825.4 9.4% Teaching Units - Staff 582.9 554.6 513.0 518.3 536.9 551.4 -5.4% TEACHING UNITS Total 1,337.3 1,306.6 1,274.9 1,292.5 1,330.7 1,376.8 3.6%
Academic Support/Research Institutes Faculty 8.4 8.4 8.4 8.4 8.3 8.2 -2.4% Staff 215.2 214.0 209.6 221.3 230.2 239.0 11.1% Library Staff 97.5 99.5 98.6 99.3 100.8 102.4 5.0% Computing and Communications Services Staff 82.8 78.3 80.3 88.5 91.8 94.3 13.9% Student Services Staff 90.5 95.7 102.6 106.8 113.0 115.2 27.3% Athletics Staff 38.1 38.8 43.8 45.8 46.7 47.1 23.7% External Relations and Public Affairs Staff 67.5 68.2 70.6 73.2 73.1 75.5 11.9% Physical Resources Staff 288.0 278.0 269.0 264.8 293.4 302.0 4.9% Administration and General Expenses Faculty 4.0 4.0 4.0 4.7 4.6 4.3 8.4% Staff 160.2 159.2 168.6 173.2 175.5 180.2 12.5% Other Units - Faculty 12.4 12.4 12.4 13.2 12.8 12.5 1.1% Other Units - Staff 1,039.8 1,031.7 1,043.0 1,073.0 1,124.5 1,155.7 11.2% OTHER UNITS Total 1,052.2 1,044.1 1,055.4 1,086.2 1,137.4 1,168.3 11.0%
Total Faculty 766.9 764.3 774.3 787.3 806.7 837.9 9.3% Total Staff 1,622.4 1,586.3 1,556.0 1,591.3 1,661.4 1,707.1 5.2% Grand Total 2,389.3 2,350.6 2,330.3 2,378.6 2,468.1 2,545.0 6.5%
Note: The 2018 2019 totals include estimates for the impact of budget proposals presented for approval and current open searches for new faculty and staff positions.
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2018-19 University of Guelph Budget [Motion] Page 113 of 220 Page 114 of 220
To: Members, Board of Governors
From: Ben Doadt, Associate University Secretary
Subject: 4. Finance Committee Report
Meeting: April 20, 2018
e) Report on Student Aid and Accessibility
The inaugural Student Financial Support Annual Report 2016-17 is enclosed for the information of Governors.
The report responds to concerns raised by the Finance Committee, Board of Governors, and students, regarding accountability and transparency with respect to financial supports available to students to offset tuition costs and enhance student accessibility to education at the University of Guelph.
N:\BOG\BOG Meetings\2017-2018\5. April 20, 2018\Cover Memos\4e_Finance-Student Aid and Accessibility.docx
Report on Student Aid and Accessibility Page 115 of 220 Page 116 of 220 U of G Student Financial Services
Student Financial Support Annual Report 2016-17 Total Financial Aid: $41.5 million
Report on Student Aid and Accessibility Page 117 of 220 Background
The University of Guelph maintains a strong and evolving commitment to the financial support of its undergraduate and graduate students. With the rising costs of education, providing support for qualified students with financial barriers is a high priority. We also provide merit-based awards to attract high-calibre students that enhance our academic reputation, support our world-class research, and enrich the diversity and quality of the educational experience for all. Bursaries, scholarships, and need-based scholarships from the University do not need to be repaid and can be complemented by financial support through the Work Study Program, Undergraduate Research Assistantships, Graduate Teaching Assistantships, and Graduate Research Assistantships.
The appendix includes a glossary of the terms used throughout this report. The information provided in this report refers to undergraduate and graduate students at the University of Guelph and Ridgetown campus. Guelph- Humber has been excluded.
In recent years, the importance of student financial assistance has pointed to the need for greater understanding on the part of key University stakeholders regarding the access to and delivery of student financial support. At the same time, the province has undertaken a major Contents restructuring of the Ontario Student Assistance Program (OSAP) and made a commitment to Background 2 informing students as early as possible about Overview of Student Support 4 net tuition, which is the cost of tuition after non- Types of Financial Support 7 repayable aid has been applied. Merit-Based Awards 7 Financial aid is key to the success of our students Need-Based Awards 9 and to our enrolment management success as International Student Support 14 an institution. In 2016/17, the University allocated $41.5 million to students through our award and Graduate Student Support 15 financial aid programs. Total Support from the University 16 Government Programs 17 Non-Financial Supports 20 Conclusion 21 Appendix: Glossary of Terms 22 2
Report on Student Aid and Accessibility Page 118 of 220 The purpose of this report is to provide stakeholders with an annual review of how the University is financially supporting its students. It includes facts and figures as well as descriptions about the different approaches to distribute funds. It is intended to allow stakeholders to understand the University’s overall strategy and examine the trends and patterns over time.
Table 1: Total scholarships and bursaries by program level in $millions. (Need-based category includes Work Study and URA.)
2012/13 2013/14 2014/15 2015/16 2016/17
Need-Based, Undergraduate 8.66 10.19 10.43 11.50 12.24
Merit-Based, Undergraduate 8.16 9.09 9.20 9.56 10.64
Total Undergraduate 16.82 19.28 19.63 21.06 22.88
Need-Based, Graduate 3.57 3.50 3.57 3.84 4.06
Merit-Based, Graduate 12.27 11.90 11.95 13.03 14.59
Total Graduate 15.84 15.40 15.52 16.87 18.65 Total Scholarships 32.66 34.68 35.15 37.93 41.52 and Bursaries
Figure 1 Allocation of Student Aid 100%
80%
44% 44% 44% 45% 60% 48%
40%
20% 52% 56% 56% 56% 55% 0% 2012/13 2013/14 2014/15 2015/16 2016/17
Undergraduate Graduate 3
Report on Student Aid and Accessibility Page 119 of 220 Overview of Student Support
Objectives of Student Support How Students Access Support Our fundamental principle is that all qualified The University of Guelph has demonstrated its individuals should be able to attend university commitment to the financial needs of its students regardless of their financial status. We accomplish by simplifying and enhancing the scholarship and this objective by working in partnership with award process. government, donors, and students. We are proud of our innovative financial aid programs that are • The majority of scholarships offered at the specifically geared to ensuring an accessible, top- University do not require an application from the quality education for all students. student. Students are automatically selected based on attributes such as academic program We believe that an education should be an or grade point average (GPA). attainable goal for all qualified students. This is the University of Guelph’s Guarantee to Accessible • Students eligible for government assistance University Education. programs complete a simple one-page bursary form and Student Financial Services uses the information provided by the government to determine eligibility.
Student Support Profile • Standardized budgets that recognize reasonable costs are used to determine non- Caitlin is a dependent student who is in her eligible government aid students in an effort to third year of the Bachelor of Arts program. treat students equitably. She was registered full-time during the fall • Standardized award deadlines are set to and winter semesters. Caitlin submitted a simplify the award process for students, such Need Assessment Form and was given an as April 15th for potential incoming students. institutional and a donor bursary, along with approval to participate in the Work Study • Students are reminded in advance of award program during her winter semester. She application deadlines by email, through our was also recognized for her academics and website, and on social media to ensure they leadership with an H.H. Harshman Foundation are included in the awarding process. scholarship.
Tuition & Fees $7,627
OSAP Grants $4,700 Institutional Bursary $3,000 Institutional Scholarships $3,000 OSAP Loan $6,900 Total Funding $17,600
Net Tuition (-$3,073)
Net Tuition: Caitlin’s tuition and fee expense was effectively reduced to (-$3,073) after subtracting non- repayable aid. In other words, she is owed $3,073. While at school, the interest that accrued on Caitlin’s loans was paid by the government. 4
Report on Student Aid and Accessibility Page 120 of 220 Funding Sources
There are two major funding sources that are utilized to support the University’s award programs. Operating Fund: Endowments and Trusts: • Institutional funding is used to provide students • Donor-funded awards are either annual gifts with scholarships, bursaries, and need-based based upon a donor agreement or endowed employment opportunities throughout the donations that are invested in perpetuity and student’s academic career. The University only the earnings are spent. During 2016/17, provided operating funds to support students donors supported $8.8 million in awards. in the amount of $18.3 million in 2016/17 in addition to the TSA. • Government external awards from the Tri- Council government research agencies, Natural • Tuition Set Aside (TSA) funding is mandated by Sciences and Engineering Research Council the government of Ontario. It requires that each (NSERC), Social Sciences and Humanities post-secondary institution set aside a portion Research Council (SSHRC), Canadian Institutes of tuition fee revenue to assist eligible students of Health Research (CIHR), the Ontario (Canadian citizens/permanent residents/ Graduate Fellowships (OGF) and Scholarship protected persons) in financial need. University (OGS) programs, provided graduate students of Guelph students accessed $10.2 million in with $3.9 million in scholarships. TSA in 2016/17.
Table 2 (below) and Figure 2 (page 6) show the distribution of funding by program level and funding sources. Increases in undergraduate support are focused in needs-based programs while graduate awards, in recent years, have been mainly for merit-based programs designed to attract high-quality students in an increasingly competitive environment.
Table 2: Total scholarships and bursaries by funding source in $millions.
2012/13 2013/14 2014/15 2015/16 2016/17
Operating Fund, Undergraduate 13.99 15.97 16.40 17.54 19.14
Operating Fund, Graduate 9.10 7.67 7.52 7.71 9.50
Total Operating Fund 23.09 23.64 23.92 25.25 28.63
Endowment and Trust, Undergraduate 2.83 3.31 3.23 3.52 3.74
Endowment and Trust, Graduate 6.74 7.73 8.00 9.16 9.15
Total Endowment and Trust 9.57 11.04 11.23 12.68 12.89 Total Scholarships 32.66 34.68 35.15 37.93 41.52 and Bursaries
5
Report on Student Aid and Accessibility Page 121 of 220 Figure 2 Growth in Student Aid $50 $41.52 $40 $37.93 $34.68 $35.15 $32.66
$30 $25.23 $22.59 $20.99 $21.15 $20.43 $20 IN MILLIONS IN
$10 $15.34 $16.29 $12.23 $13.69 $14.00
$0 2012/13 2013/14 2014/15 2015/16 2016/17
Need Based Merit Based
Financial Aid Programs Student assistance in Ontario is complex and multi- SAG ensures that students in need will have access layered. For students with financial need it begins to the resources they require for their tuition, with OSAP assessments that are determined by books, and mandatory fees. SAG requirements do the province through the Ministry of Advanced not include actual living costs and covering these Education and Skills Development (MAESD). Rules costs is at the discretion of the institution. The for calculating need are University demonstrates its typically income based, and dedication to accessible the resulting grants/loans Through our wide range of education and its students are administered through financial aid programs, we by going beyond the SAG each post-secondary requirements by providing aim to ensure that students institution. aid for living expenses, complete their degrees, along with further The University of Guelph regardless of their financial assistance when students has partnered with MAESD circumstances. experience unexpected to support access to post- financial shortfalls through secondary education the University’s bursary through the Student program. Our Work Study Access Guarantee (SAG). Students with unmet and Undergraduate Research Assistantship need, as calculated by MAESD through OSAP programs are offered exclusively to students who assessments, will automatically receive a bursary. demonstrate financial need.
6
Report on Student Aid and Accessibility Page 122 of 220 Types of Financial Supports Merit-Based Awards
The University of Guelph is committed to of $3,000 (Admission Average ≥ 90.0) or rewarding the academic excellence and $2,000 (Admission Average ≥ 85.0 < 90.0). outstanding achievements of our incoming This academic year, 2,480 registered students and continuing students. Scholarships may be received an entrance scholarship, which is a awarded based upon outstanding academic 30% increase since 2012/13. Figure 3 provides achievement only or academic achievement in a five-year view of the entrance merit scholarship combination with other factors. These include program and indicates that there is continual demonstrated financial need or extracurricular growth in the uptake of potential students. activities such as volunteer work, leadership qualities, or involvement in sports or clubs. The President’s Scholarships, Chancellors’ Scholarships, and Lincoln Alexander Chancellor’s scholarships were created to help attract Entrance Scholarships students who are academically strong and are demonstrating significant leadership. These Many undergraduate entrance scholarships are awards require an application from the student awarded automatically based on the student’s and references. They provide $33,000 over four admission average and are included with the years of study, a summer research assistantship offer of admission. Entrance scholarships are position in the amount of $9,000, and a mentor. available to both domestic and international There are currently forty students studying at the students. Prospective students are assessed at University of Guelph with President’s, Chancellors’, the time of offer for either a one-time scholarship and Lincoln Alexander scholarships.
Figure 3 Entrance Merit Scholarships Institutionally Funded
3,000 $7,000 2,500 $6,000 2,000 $5,000 $4,000 1,500 $3,000 1,000 $2,000
500 $1,000 IN THOUSANDS - $- 2012/1 2013/1 2014/1 2015/1 2016/1 3 4 5 6 7 Total Award $4,368 $5,205 $5,126 $5,220 $5,751 # of Recipients 1,910 2,256 2,248 2,249 2,480
7
Report on Student Aid and Accessibility Page 123 of 220 Megan Smith, Loran Scholar: “I chose Guelph because it offered an The University has partnered with the accredited biomedical engineering program Loran Scholars Foundation in the support (and the reputation of the best campus of young Canadians who demonstrate food in Canada). Today I love Guelph for strong character, service, and the promise the vibrant, student-led campus culture of leadership. The University provides a that cares deeply about social rights, scholarship in the value equal to the student’s environmental impact and the broader world tuition as well as personal support to help around us. Students can easily balance students acclimatize themselves to the hobbies and academic interests outside expectations of the Loran program. In 2016, their own discipline. In my first year, I lived there were 33 Loran scholars selected from in Arts House, one of Guelph’s themed across Canada and one of these scholars residences, where I was able to foster my chose the University of Guelph as their love of painting and music alongside my institution of study. Currently, the University engineering studies. Guelph has become a has six Loran scholars. home I will always look forward to coming back to.”
In-Course Scholarships In 2016/17, the University of Guelph awarded more than $3.7 million in upper year (in-course) scholarships to undergraduate students and $4.7 million to registered graduate students. The University’s scholarships for in-course students are generally based on academic merit. Most of our upper year scholarships are available to international students, however some restrictions apply.
Typically, applications are not required for merit scholarships. However, some scholarships also have a need-based component, so students are required to complete a financial “Need Assessment Form” (NAF). If the scholarship has an additional requirement of extra-curricular activities, students will be required to provide documentation to support these activities, such as a resume or a letter of support.
To recognize the outstanding achieve- ments of current and incoming students, in such areas as academics, leadership, vol- unteerism, and extra-curricular activities, we offer 1,216 scholarships to diploma, undergraduate, and graduate students. These awards serve to both acknowledge past achievements and encourage further study and accomplishment.
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Report on Student Aid and Accessibility Page 124 of 220 Need-Based Awards Bursaries The University of Guelph’s bursary program • Bursary applications are accepted from supports students whose financial needs, such students who are not eligible to apply for OSAP as tuition and compulsory fees, books, and living or Out-of-Province assistance. Financial need expenses, are not fully addressed by OSAP or is determined using a standardized expenditure other government programs. In 2016/17, the budget which recognizes reasonable costs in University awarded $12.5 million in need-based an effort to treat students equitably; awards to undergraduate and graduate students. The University has further demonstrated its • Bursaries are applied to the student’s winter commitment to the financial needs of its students semester account in advance of the payment by simplifying and enhancing the bursary process: deadline date so that students are aware of their net financial obligation; • OSAP & Out-of-Province Program eligible students complete a one-page bursary • Bursary applications are accepted on an form indicating their intent to register for the ongoing basis, allowing us to address the academic year. They are not required to provide needs of the student as they arise; supporting financial documentation, instead the • Financial aid counsellors provide assistance University utilizes the verified MAESD student navigating government aid programs, funding shortfall calculations; understanding appeals for extenuating financial circumstance, and enhancing financial literacy skills;
Student Support Profile • Need-based assessments are completed by Student Financial Services to ensure Julian is a sole-support parent of three transparency, consistency, and protection of children, and he is a fourth-year student personal financial information. in the Bachelor of Applied Sciences.
Tuition & Fees $7,386
OSAP Grants $7,265 Institutional Bursary $6,700 Institutional Scholarships $500 OSAP Loan $18,200 Total Funding $32,665
Net Tuition (-$7,079)
Net Tuition: Julian’s tuition and fee expense was effectively reduced to (-$7,079) after subtracting non- repayable aid. He is owed $7,079. While at school, the interest that accrued on Julian’s loans was paid by the government. At the end of the 2016-17 study period, Julian’s OSAP loan was reduced by $10,700 to $7,500. He also received the Gold Medallion for Leadership Excellence, which included a $500 award, in recognition of his significant leadership contributions to his program. 9
Report on Student Aid and Accessibility Page 125 of 220 Entrance Bursaries In support of incoming undergraduate students who demonstrate financial need, we offer multi-year entrance bursaries. Each year, the University of Guelph awards 200 students identified as having the greatest financial need a multi-year bursary valued at $14,000, payable over four years of study. These bursaries are packaged with Work Study approval, allowing students to plan their finances accordingly for four years. In addition, the University provides 500 more students with a one-time, $4,000 Registrar’s entrance bursary.
Figure 4 Entrance Bursaries Institutionally Funded $3,500
$3,000
$2,500
$2,000
$1,500
IN THOUSANDS $1,000
$500
$- 2012/13 2013/14 2014/15 2015/16 2016/17 First Year Funding $891 $1,874 $1,632 $1,524 $3,149 Continuing $655 $630 $797 $806 $774 # of Awards 367 844 729 688 748
ACCESS Awards The University offers a number of ACCESS awards, established through generous donor contributions and matched by the provincial government’s Ontario Student Opportunity Trust Fund (OSOTF) program and the Ontario Trust for Student Support (OTSS). OSOTF and OTSS was a fundraising program that was initiated in 1999 and ceased in 2012. The income generated from these endowments are used to support various financial aid programs, including bursaries, need-based scholarships, and travel grants. To be eligible, students must be a Canadian citizen or permanent resident and meet the Ontario residency requirements as mandated by the OTSS/OSOTF program.
Figure 5 ACCESS-Funded Awards (Need-Based)
$1,500
$1,000
$500 IN THOUSANDS $0 2012/13 2013/14 2014/15 2015/16 2016/17 Graduate $161 $202 $214 $240 $298 Undergraduate $401 $646 $751 $829 $910 10
Report on Student Aid and Accessibility Page 126 of 220 Student-Funded Bursaries Diploma, undergraduate, and graduate students at the University of Guelph have established bursaries to assist students in financial need. These funds are supported through a portion of their compulsory fees.
Diploma and undergraduate students created the Guelph Student Assistance Program and the Guelph Student Assistance ACCESS Bursaries; the latter is matched with funding from OTSS. Preference for these bursaries is given to students who are not eligible for provincial and/or federal assistance programs.
Graduate students created the Graduate Student Compassionate Bursary Fund. It is available to cover costs associated with unexpected emergency/compassionate circumstances, up to $2,000. Figure 6 Student Contributions to Need Based Awards $180 $160 $140 $120 $100 $80 $60 IN THOUSANDS $40 $20 $- 2012/13 2013/14 2014/15 2015/16 2016/17 Guelph Student Assistant $146 $148 $150 $156 $160 Program Graduate Student Bursary $20 $20 $20 $20 $21 Fund
In addition to bursaries, undergraduate students on the Guelph campus contribute to the World University Service of Canada (WUSC) through their compulsory fees. These donations support the sponsorship of students from refugee camps. Up to three students are admitted to the University of Guelph each year through the program. Student contributions cover the incidental fees of first-year students in the WUSC program. The University also provides free tuition for the full term of their degree and, for their first two semesters, free residence accommodation and meal plan.
Figure 7 World University Service Canada $86
$84
$82
$80
$78
IN THOUSANDS $76
$74
$72 2012/13 2013/14 2014/15 2015/16 2016/17 WUSC $76 $77 $78 $81 $83 11
Report on Student Aid and Accessibility Page 127 of 220 Work Study and Undergraduate Research Assistantship Programs The aim of the Work Study and Undergraduate Research Assistantship (URA) programs is to help students with demonstrated financial need meet their education costs, while benefitting from experiential learning. Through the Work Study program, students work part time (10 -15 hours per week) on campus during the academic year. Our Work Study program is a collaborative effort between Student Financial Services and departments across the University. The Work Study program is a cost-share program with TSA funds providing 75% to a pre-determined maximum and the hiring department funding the remainder. International students can apply for the International Work Study program which is funded from institutional funds.
The URA program is a competitive program that provides full-time, on-campus summer research opportunities to undergraduate students with demonstrated financial need, who are Canadian citizens or permanent residents. Students Figure 8 gain invaluable research Experiential Learning experience working under Work Study and Undergraduate Research Assistantships the direction of faculty or administrators while expanding their knowledge $1,200 and understanding of their $1,000 current field of study. $800 Currently, there are 150 $600 URA positions available across campus funded $400 from TSA. IN THOUSANDS $200 $0 2012/13 2013/14 2014/15 2015/16 2016/17 Workstudy $505 $576 $602 $746 $929 URA $755 $936 $952 $834 $1,067
Support for Crown Wards Since 2013/14, the University of Guelph has partnered with the Ministry of Advanced Education and Skills Development (MAESD) to help fund tuition costs for Crown Wards and youth who are in or leaving the care of Children’s Aid Societies. Through this program, MAESD covers the first 50% of tuition fees for the student, up to a maximum of $3,000, with the Ontario Access Grant for Crown Wards and the 30% Off Ontario Tuition Grant. The University funds the remaining 50% through an institutional bursary, up to a maximum of $3,000.
Full-time undergraduate students enrolled in their first degree or diploma are eligible for funding for up to four years. Students automatically qualify based on the information provided through their OSAP application.
In 2016/17, nine Crown Ward students received bursaries from the University for a total of $29,000.
While MAESD has cancelled this grant effective 2017/18, the University will continue to fund currently registered Crown Ward students for the remainder of their four-year eligibility.
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Report on Student Aid and Accessibility Page 128 of 220 Travel Grants Travel grants provide funding opportunities for undergraduate and graduate students to experience diverse cultures, communities, languages, and natural environments. Students participating in an Exchange Program or Semester Abroad, or travelling for a conference, field course, or co-op work term related to their program of study can apply. They can use these travel grants to offset costs associated with travelling such as airfare, vaccinations, and travel insurance. There are over 50 travel grants available to undergraduate students and over 30 for graduate students. Some of these grants include a financial need component.
Figure 9 Travel Grants All Funds
$800
$600
$400
$200 IN THOUSANDS
$0 2012/13 2013/14 2014/15 2015/16 2016/17 # of students 182 207 239 277 287 All Students $190 $262 $248 $329 $471
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Report on Student Aid and Accessibility Page 129 of 220 International Student Support
The University of Guelph offers International In the second year of their studies, international Entrance Scholarships and International Entrance students demonstrating financial need are Bursaries to international students entering post- eligible to participate in the International Work secondary studies for the first time. The International Study program and to apply for an in-course Scholarships are highly competitive and are offered international bursary.There are a limited amount to students automatically based on their admission of donor-funded, need-based awards available application. Scholarships are valued between to international students only, such as the $2,000 and $8,500. For the International Registrar’s Norma Valeriote bursaries, Quinn Memorial, Entrance Bursary, students apply once they have and the Hardy International awards. As well, applied for admission to the University. Entrance international students are considered for the bursaries average $5,000 for the first two semesters. majority of in-course awards.
Figure 10 Financial Aid Received by International Students All Funds
$2,500
$2,000
$1,500 IN THOUSANDS
$1,000
$500
$0 2012/13 2013/14 2014/15 2015/16 2016/17 Work Study $30 $40 $25 $31 $67 Bursar ies $81 $98 $120 $160 $148 Scholarships $1,087 $1,513 $1,463 $1,857 $2,144 Total Undergraduate Awards $156 $169 $468 $454 $706 Total Graduate Awards $1,042 $1,482 $1,140 $1,594 $1,653
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Report on Student Aid and Accessibility Page 130 of 220 Graduate Student Support
Each year, the University of Guelph invests millions Funding is commonly higher than the minimum of dollars into graduate students and the research stipend, as there are opportunities for additional they are pursuing. The University wants to ensure awards, research stipends, and employment that graduate students have the opportunity income. to fully dedicate themselves to the successful completion of their graduate program. Therefore, Funding for GTAs, GRAs, and GSAs may come the University of Guelph is committed to providing from research grants, contracts, external agencies, a minimum stipend of $17,500 for all domestic governments, and university funds. In 2016/17, and international doctoral students for a period the University spent $27.1 million on GTA, GRA, of three years. Funding packages for eligible and GSA positions compared to $25.3 million in students are determined within their college the prior year. graduate department. Graduate students may Graduate students received $18.5 million in receive a funding package made up of a number scholarships and bursaries during the 2016/17 of components, such as: year compared to $16.8 million in 2015/16. This • Graduate Teaching Assistantship (GTA) is a 10% increase in student scholarship and • Graduate Research Assistantship (GRA)/ bursary funding. Graduate Service Assistantship (GSA) • Scholarship (external and/or internal)
Figure 11 Graduate Funding Support All Funds $25,000 $20,000 $15,000 $10,000 $5,000 IN THOUSANDS $- 2012/13 2013/14 2014/15 2015/16 2016/17 Graduate Teaching Assistantships (Non-Bursary $7,794 $7,856 $8,080 $8,153 $8,654 Portion) Graduate Research/Service $20,001 $18,296 $17,549 $17,137 $18,497 Assistantships Scholarships and Bursaries $15,596 $15,336 $15,302 $16,781 $18,535 Total Graduate Support $43,463.4 $41,552.4 $40,997.1 $42,140.2 $45,784.6
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Report on Student Aid and Accessibility Page 131 of 220 Student Support Profile
Naomi is an independent student with a Total Support from permanent disability. She is studying part time, with a 60% course load, and is in the University her second year of a Bachelor of Science degree. Naomi is considered full-time for OSAP and institutional awards because of Figure 12 provides a five-year overview of total the permanent disability. student financial support by program. Since 2012/13, there has been a 14% increase in Tuition & Fees $6,153 financial supports to all students at the University of Guelph. OSAP Grants $2,800 Institutional Bursary $1,000 Supporting student accessibility and attracting OSAP Loan $7,400 high-quality students are major priorities of the $11,200 University. In 2016/2017, the University made Total Funding a major investment with a funding increase of $4 million for direct student assistance. This will et uition be augmented in 2017/2018 with an additional N T $2,353 $1.1 million in funds available for direct student assistance. Net Tuition: Naomi’s tuition and fee expense was effectively reduced to $2,353, or 38% of the tuition and fees, after subtracting non-repayable aid. She will use the OSAP loan funds to pay the remainder of her tuition and fees, textbooks, and living costs. While at school, the interest that accrued on her loans was paid by the government. Figure 12 Total Student Financial Support by Program
$80,000
$70,000
$60,000
$50,000
$40,000
$30,000
IN THOUSANDS IN $20,000
$10,000
$0 2012/13 2013/14 2014/15 2015/16 2016/17 Work Study & URA Program $1,318 $1,578 $1,608 $1,652 $2,084 Graduate Teaching Assistantships (GTA - $7,794 $7,856 $8,080 $8,153 $8,654 Non--Bursary Portion) Graduate Research/Service $20,001 $18,296 $17,549 $17,137 $18,497 Assistantships (GRA / GSA) Scholarships & Bursaries $31,250 $33,103 $33,688 $36,098 $39,370 Total Student Support $60,363 $60,834 $60,925 $63,040 $68,605 16
Report on Student Aid and Accessibility Page 132 of 220 Ontario Student Assistance Program (OSAP)
The Financial Aid office works with the Ministry through the OSAP program. This was an of Advanced Education and Skills Development increase of 4% from the previous year. (MAESD) in administering the Ontario Student Figure 13 provides a trend analysis of the number Assistance Program (OSAP) for students of University of Guelph student recipients for the attending the University of Guelph. Eligible last five years. students are provided with various types of assistance: loan only, loan and grant, and grant In 2012, the Ontario government introduced the only to eligible students based upon financial 30% Off Ontario Tuition Grant (OTG) for full-time need. This assistance is intended to supplement, undergraduate students. This non-repayable not to replace, a student’s resources, including grant covered about 30% of average tuition fees those of his or her family. Grants do not require for first-entry programs, up to $950 per semester repayment from the student, and loans do not in 2016/17. Eligible students could receive the accrue interest while the student is completing grant for their first four years of undergraduate their academic studies. In 2016/17, 11,862 education. University of Guelph students (~49% Through the OTG and other grants, the Ontario of the population) received funding government has made targeted efforts to reduce student debt levels. Students who borrowed OSAP loans in excess of $7,500 (for 2016/17) for a two-semester academic year received the Ontario Student Opportunity Grant (OSOG). The amount of OSOG funding that a student received was determined annually by MAESD. The grant was disbursed directly to the National Student Loans Service Centre (NSLSC) to pay down a portion of the student’s loan balance.
A restructuring of government student assistance programs began in 2016/17, and students are beginning to benefit from the increased availability of financial aid and the streamlined application process. In 2016/17, these improvements included a 50% increase in the size of federal grants, with Canada Student Grants (CSG) – Low Income grants increasing from $2,000 to $3,000, CSG – Middle Income grants from $800 to $1,200, and Part time grants from $1,200 to $1,800. Other improvements included electronic confirmation of enrolment, online submission of required documents, and students’ OSAP funds provided in advance of the first day of classes.
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Report on Student Aid and Accessibility Page 133 of 220 OSAP: Trends for University of Guelph Students Figures 13 and 14 provide details of OSAP funding received by University of Guelph students over the past five years. They indicate that the number of students utilizing OSAP as a method to help fund their cost of attendance at the University of Guelph has increased each year since 2013/14. In 2012/13, there was a significant increase in the amount of funding received and the number of recipients because it was the first year that the 30% Off Ontario Tuition Grant was offered.
Figure 13 Number of Students Receiving OSAP 12,000 40% 11,800 35% 11,600 30% 25% 11,400 20% 11,200 15% 11,000 10% 10,800 5% 10,600 0% 10,400 -5% 10,200 -10% 2012/13 2013/14 2014/15 2015/16 2016/17 # of Guelph students 11,245 10,783 11,294 11,454 11,862 Receiving OSAP % Change 37% -4% 5% 1% 4%
Figure 14 OSAP Funding Received $120.0
$100.0
$80.0
$60.0
$40.0 IN MILLIONS $20.0
$0.0 2012/13 2013/14 2014/15 2015/16 2016/17 % Change of Total Funding 27% 4% 2% 7% 4% Total Guelph OSAP $84.1 $87.8 $89.5 $95.8 $99.5 OSAP Guelph - Loan $61.0 $64.3 $65.3 $71.1 $70.5 OSAP Guelph- Grant $23.1 $23.5 $24.2 $24.7 $29.0
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Report on Student Aid and Accessibility Page 134 of 220 Student Support Profile Student Access Guarantee The Student Access Guarantee (SAG), as Abhishek is a second-year student in the discussed earlier, ensures that students in need Bachelor of Arts and Sciences program. He have access to the resources they require for their is a married student with two children. tuition, books, and mandatory fees. Tuition & Fees $7,703 The University of Guelph provides additional financial support, beyond the SAG obligations, to OSAP Grants $5,777 students who apply for funding to cover their living Institutional Bursary $7,000 costs. Figure 15 shows the amount of funding that OSAP Loan $18,200 was mandated through SAG, in comparison with Total Funding $30,977 the amount of funding that the University issued to students through need-based awards. Net Tuition (-$5,074) In 2016/17, the OSAP Canada Student Grants for low income and middle income earners increased by 50%. This reduced the ministry-calculated Net Tuition: Abhishek’s tuition and fee expense SAG amounts from the previous year. The OSAP was effectively reduced to (-$5,074) after subtracting non-repayable aid. While at school, transformational changes implemented for the interest that accrued on Abhishek’s loans 2017/18 will lead to a significant increase to the was paid by the government. At the end of the SAG values because of the exemption of certain 2016-17 study period, Abhishek’s OSAP loan personal financial resources such as Registered was reduced by $10,700 to $7,500. Educational Savings Plans. The bursaries that Abhishek received in the amount $7,000 are to meet Abhishek’s SAG of $2,000 and the remainder of $5,000 is to cover the unmet living costs as calculated by OSAP.
Figure 15 Mandated SAG Compared to Actual Need-Based Awards $14,000
$12,000
$10,000
$8,000
$6,000
IN THOUSANDS $4,000
$2,000
$- 2012/13 2013/14 2014/15 2015/16 2016/17 Ministry Mandated SAG $1,112 $1,553 $1,867 $2,750 $2,134 Need Based Awards Issued $8,491 $9,943 $10,507 $11,901 $12,455
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Report on Student Aid and Accessibility Page 135 of 220 Non-Financial Supports for Students
At the University of Guelph, supporting students with their finances extends far beyond our financial aid programs. We provide non-financial supports that further assist students in managing their finances. We are dedicated to minimizing students’ financial stress and its potential impact on their mental health. Financial Arrangements If circumstances prevent a student from paying their account in full by the payment deadline date, Student Financial Services (SFS) provides them with the opportunity to arrange a “Financial Payment Arrangement” plan. Staff in SFS work with the individual to develop an acceptable payment plan.
Payment arrangements have reduced the number of students who are deregistered each term. They have also minimized the number of students who incur a penalty and/or are sent to an external collection agency as a delinquent account.
Furthermore, the reduction in the number of students on a financial arrangement plan is attributed to improvements to the OSAP confirmation of enrolment process and how quickly funds are being transferred to students and the institution. Students receive their OSAP funding in advance of the first day of classes and no longer require a financial arrangement. In the Fall 2016 semester, 91% of completed student OSAP applications were confirmed before the first day of classes and, by the payment deadline date, 99% of all completed OSAP applications were confirmed. For the Winter 2017 semester, 88% of OSAP applications were confirmed prior to December 22, 2016.
Students utilizing financial arrangements are those whose costs are not fully covered by OSAP, along with students and their families who prefer to make instalments. Approximately 4% of the student population are using financial arrangements.
Figure 16 Student Financial Payment Arrangements 3,000
2,500
2,000
1,500
1,000
500
- 2012/13 2013/14 2014/15 2015/16 2016/17 # of Financial Arrangements 2,801 2,802 2,461 2,158 2,174 % Change 15% 0% -12% -12% 1%
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Report on Student Aid and Accessibility Page 136 of 220 Financial Literacy Learning Opportunities Student Financial Services (SFS) participates in a variety of events, such as Campus Days, Fall Preview Day, Science and Engineering Sunday, the President’s Welcome, the Ontario University Fair, the Interaction workshop for high school students, and high school visits. These events allow us the opportunity to provide information to students and their families, answer questions about financial supports available at the University of Guelph, and discuss how to manage the costs of attending a post-secondary institution.
SFS organizes an annual Financial Literacy Fair that is open to all students and employees. The all-day event takes place in November to coincide with Financial Literacy Month in Canada and is held in the University Centre Courtyard. The objective is to encourage students and employees to take charge of their personal finances by drawing on the resources and tools that are available, both on campus and off. Recruitment of relevant agencies resulted in six external agencies and three internal agencies agreeing to participate:
• Ministry of Advanced Education and Skills Development; • Financial Consumer Agency of Canada; • Canada Revenue Agency; • National Student Loans Service Centre; • Credit Canada; • Wellington Family Counselling & Support Services; • University of Guelph – Wellness Centre; • CSA – Food Bank; and • Student Financial Services.
Throughout the day, 360 students participated in our draw for prizes, and we expect that there were even more students who spoke with participating agencies but did not participate in the draw. We received positive feedback from the agencies about their interactions with students.
Conclusion
The University of Guelph is committed to supporting our students in completing their academic goals. We are particularly focused on supporting those students with financial need who would not otherwise be able to pursue a post-secondary education. The Ministry of Advanced Education and Skills Development, in partnership with the post- secondary sectors, has made significant changes to government aid in the packaging and presentation. Special attention will be given by the University as to the impact on student access, success, and university finances as a result of these changes. These impacts will be addressed in next year’s annual report.
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Report on Student Aid and Accessibility Page 137 of 220 Appendix: Glossary of Terms
ACCESS Awards: The University established an endowment fund through generous donor contributions and has been matched by the provincial government’s Ontario Student Opportunity Trust Fund (OSOTF) program and the Ontario Trust for Student Support (OTSS). The income generated from these endowments will be used to support financial aid programs. Awards: A generic term used to refer to any type of award. These include scholarships, bursaries, travel grants, and ACCESS awards. Bursary: An award provided to a student on the basis of financial need only. Financial need is determined by the University of Guelph’s Bursary Committee after an evaluation of the Financial Need Assessment Form submitted by the student. Academic merit is not a consideration in awarding a bursary. Financial Aid: Student support provided through awards (both those that require demonstrated financial need and those that do not), and employment programs that require demonstrated financial need (i.e. Work Study and URA programs). GRAs/GSAs/GTAs are excluded. Graduate Research Assistantships (GRAs): Funding for graduate students in support of their scholarly activity/research. Graduate Service Assistantships (GSAs): Paid positions for graduate students that involve work related to the academic enterprise, for example preparing academic or administrative reports or compiling statistics for departmental use. Graduate Teaching Assistantships (GTAs): Paid positions that are held by graduate students. The student assists the primary instructor of a course with teaching tasks such as giving lectures, supervising laboratory sessions, and grading. Prize or Medal: An award that is based on completed achievement. It is not conditional on the student engaging in further study. Scholarship: An award provided on the basis of academic performance and supporting further study. Given that the merit component is normally academic, it may include such non-academic aspects as leadership, extracurricular activity, volunteerism, and community involvement. Scholarships can be monetary, prizes, or medals. Financial need is not a consideration of scholarships. Scholarship with Financial Need: An award provided on the same criteria as scholarships, but financial need is also a consideration. Student Access Guarantee (SAG): A program maintained by all Ontario colleges and universities, in coordination with the OSAP program, that ensures that Ontario students are not prevented from attending post-secondary institutions. Travel Grant: A grant provided to students who wish to travel as part of their program of study. Examples of travel opportunities include: Exchange/Study Abroad programs, letter of permissions, field courses, and independent research projects that are related to a student’s program of study. Travel Grant with Financial Need: A grant awarded based on academic performance, but that also takes into account demonstrated financial need. Tuition Set Aside: A portion of the additional revenue resulting from domestic tuition fee increases that is mandated by the Ministry to be “set aside” to provide need-based financial assistance to students and meet the University’s Student Access Guarantee commitment. Undergraduate Research Assistantships (URAs): Summer research opportunities for undergraduate students with demonstrated financial need. These positions are full-time employment opportunities beginning in May. Work Study Program: An on-campus, part-time employment program to assist students with demonstrated financial need during their registered academic term. Work Study is a cost-share program between the hiring department and the University’s Tuition Set-Aside funds. 22
Report on Student Aid and Accessibility Page 138 of 220
To: Members, Board of Governors
From: Ben Doadt, Associate University Secretary
Subject: 4. Finance Committee Report
Meeting: April 20, 2018
f) Update on Special Action Request for Fossil Fuel Divestment
At its meeting on January 23, 2018, the Board of Governors held a lengthy discussion which included members of Fossil Free Guelph, regarding the Final Report of the Ad-Hoc Committee on Special Action Requests.
Following the discussion, the following motion was approved by the Board:
RESOLVED, that the Final Report of the Special Action Committee be referred back to the Finance Committee for further consideration and reflection in light of the discussion and new information raised at the Board meeting of January 23, 2018; and,
FURTHER RESOLVED, that Fossil Free Guelph be engaged in related future discussions with the Finance Committee of the Board of Governors.
The Finance Committee subsequently referred the matter back to the Ad-Hoc Committee on Special Action Requests, in light of the significant value of the experience and knowledge of the Ad-Hoc Committee in helping to further consider and define the University’s approach to the question of fossil fuel divestment.
The Board will receive an update on progress in this regard, at the meeting.
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Update on Special Action Request for Fossil Fuel Page 139 of 220 Page 140 of 220
To: Members, Board of Governors
From: Gen Gauthier-Chalifour, University Secretary
Subject: 5. Governance & Human Resources Committee Report
Meeting: April 20, 2018
a) Report from Committee Chair
The following is provided for the information of Governors. At its meeting April 2, 2018, the Governance & Human Resources Committee:
• Received an update on recent sector issues • Received an update on labour relations and negotiations • Received an update on the Executive Compensation Program [to be addressed in closed session] • Reviewed and approved appointments of elected students, staff, faculty, and pension plan representatives [refer to item 5b] • Reviewed and approved Lieutenant Governor in Council Appointments for the Board of Governors [to be addressed in closed session] • Reviewed and considered a Matrix of Competencies for the Board of Trustees and the Investment Subcommittee [to be addressed at the June Board meeting] • Reviewed and discussed considerations relative to recruitment of external governors to the Board, for terms beginning in 2018 and 2019 • Reviewed this year’s process for the President’s annual performance review [refer to item 5d] • Received an update on the Working Group on Board Governance Review [refer to item 5c] • Received an update on 2018 Board evaluation
2017-18 Governance & Human Resources Committee Membership Shauneen Bruder, Chair Rich Appiah Nancy Croitoru Eleanor Fritz Paul Gibson Kevin Golding, Board Chair Franco Vaccarino, President Gen Gauthier-Chalifour, University Secretary (non-voting)
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Report from Committee Chair Page 141 of 220 Page 142 of 220
To: Members, Board of Governors
From: Gen Gauthier-Chalifour, University Secretary
Subject: 5. Governance & Human Resources Committee Report
Meeting: April 20, 2018
b) 2018 Elections & Appointment of Students, Staff and Faculty [Motions]
The following motions are to confirm the appointments of elected students, staff and faculty, in accordance with the University of Guelph Act, 1964. The nomination statements are available in the online supporting documents folder1.
i) Undergraduate Students
The terms for the two undergraduate student Board members, Lindsey Fletcher and Andrew Kuttain, conclude June 30, 2018. Six nominations were received in response to the call for nominations, and Lindsey Fletcher and Cameron Stotts were duly elected.
The Board of Governors is asked to, RESOLVE, that the Board of Governors accept and approve that Lindsey Fletcher and Cameron Stotts be appointed as undergraduate student members of the Board of Governors for one-year terms effective July 1, 2018 through to June 30, 2019.
ii) Graduate Student
The term for the graduate student Board member, Carolyn Augusta, concludes June 30, 2018. Two nominations were received in response to the call for nominations and Nick Manuel was duly elected.
The Board of Governors is asked to, RESOLVE, that the Board of Governors accept and approve that Nick Manuel be appointed as a graduate student member of the Board of Governors for a one-year term effective July 1, 2018 through to June 30, 2019.
iii) Staff
Irene Thompson’s term as a staff Board member will conclude on June 30, 2018. Seven nominations were received in response to the call for nominations and Irene Thompson was duly re-elected.
1 URL https://uoguelph.civicweb.net/filepro/documents/146756
2018 Elections & Appointment of Students, Staff and Faculty Page 143 of 220 The Board of Governors is asked to, RESOLVE, that the Board of Governors accept and approve that Irene Thompson be reappointed as the staff member of the Board of Governors for a three-year term effective July 1, 2018 through to June 30, 2021.
iv) Pensions Committee – Retirement plan representatives
The terms for the two retirement plan representatives, Joe Rooyakkers and John Tartt, conclude June 30, 2018. Two nominations were received in response to the call for nominations and Joe Rooyakkers and John Tartt were acclaimed to fill the seats on the Pensions Committee.
The Board of Governors is asked to, RESOLVE, that the Board of Governors accept and approve that Joe Rooyakkers and John Tartt be re-appointed as the retirement plan representatives on the Pensions Committee of the Board of Governors for a two-year term effective July 1, 2018 through to June 30, 2020.
v) Senate-Elected Faculty
Professor Sally Hickson’s term as one of the three Senate-elected faculty members on the Board will end on June 30, 2018. Two nominations were received in response to the call for nominations.
Following Senate’s meeting of April 9, 2018, Senators will consider the nominations and vote via electronic ballot. On conclusion of the Senate balloting, a motion will be circulated to the Governance & HR Committee for consideration via electronic sign-back.
The result of this process will be announced at the Board meeting and the Board of Governors will be asked to,
RESOLVE, that the Board of Governors accept and approve that [name to be provided at the meeting] be appointed as a Senate-elected faculty member of the Board of Governors for a three-year term effective July 1, 2018 through to June 30, 2021.
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2018 Elections & Appointment of Students, Staff and Faculty Page 144 of 220
To: Members, Board of Governors
From: Gen Gauthier-Chalifour, University Secretary
Subject: 5. Governance & Human Resources Committee Report
Meeting: April 20, 2018
c) Update on Board Governance Review
At its meeting January 23, 2018, the Board of Governors approved the establishment of an ad hoc working group to review board governance, and authorized the Governance & Human Resources Committee to appoint its membership. Subsequent to the Board meeting, the Committee approved the membership of the Working Group to Review Board Governance, as follows:
Eleanor Fritz (Chair) Bill Hogarth Rich Appiah Wendy Millar Byron Sheldrick Irene Thompson Andrew Kuttain
The working group has been charged with determining “whether the bylaws, committees and practices of the Board of Governors, as it is presently legislatively constituted, are best positioned to support the Board’s advisory and oversight roles.”
An update on the working group’s recent activities will be provided at the meeting. The draft issues matrix, recently circulated to various stakeholders as part of the working group’s consultation process, can be found online at: https://uoguelph.civicweb.net/document/146466.
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Update on Board Governance Review Page 145 of 220 Page 146 of 220
To: Members, Board of Governors
From: Gen Gauthier-Chalifour, University Secretary
Subject: 5. Governance & Human Resources Committee Report
Meeting: April 20, 2018
d) President’s Annual Performance Review: Process for 2017-18
A performance review of the President is completed annually, as outlined in the Board’s Policy on University Appointments (s.3.17). In accordance with its terms of reference (s.3), the Governance & Human Resources Committee has the responsibility to:
3.1 Advise on Board policies pertaining to presidential search, appointment, review (annual and end-of-term) and compensation. 3.2 Review succession planning for the President and advise the Board on any necessary policies or actions. 3.3 Establish, on behalf of the Board of Governors the specific terms and conditions of employment for the President. 3.4 Informed by the established terms and conditions of employment, determine, on behalf of the Board of Governors, the annual base remuneration of the President and based on an annual assessment of performance against established objectives, any performance-based compensation.
Enclosed, for information, is this year’s process that has been reviewed by the Governance & Human Resources Committee. The results of the review are used to inform the formulation of the President’s goals and objectives for the upcoming year, which will be presented to the Board for approval, through the Governance & HR Committee, at the first regular meeting of the Board of Governors in fall 2018.
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President's Annual Performance Review: Process for 2017-18 Page 147 of 220 Page 148 of 220
President’s Annual Performance Review Process and Timeline 2017-18
Overview In keeping with the Board of Governors “Policy on University Appointments” (s.3.17), a performance review of the President of the University of Guelph is completed annually.
It is the sole responsibility of the Chair of the Board to provide the President with feedback arising throughout the various stages of the performance review and at its conclusion. The annual review of the President’s performance over the previous year also provides the context for Board of Governors’ review and approval in the fall of the President’s goals and objectives for the coming year.
Process Details Along with establishing the terms and conditions for the employment of the President, the mandate of the Governance & Human Resources Committee of the Board is to “advise on policies pertaining to the presidential review process” (s.3.1). More specifically the Committee is charged with the following responsibility:
Informed by the established terms and conditions of employment, determine, on behalf of the Board of Governors, the annual base remuneration of the President, and based on an annual assessment of performance against established objectives, any performance-based compensation (s.3.4).
While there is no Board policy for how the performance review is conducted, there is typically a process developed for the review that is shared with the Governance & HR Committee.
In keeping with the process for 2016-17, this year the President provided a mid-year update report on progress towards achievement of goals, at the January Board of Governors meeting.
The typical procedures for the review process are as follows:
President and Board Chair [End of April/early May]
1. The President and the Board Chair meet to review the Presidential Progress Report on 2017-18 Goals and Objectives, prepared by the President, which summarizes activities relative to the President’s goals and objectives over the past year. 2. The Board Chair meets individually with each Vice-President and the University Secretary in a private session to obtain feedback on the President’s performance relative to his goals and objectives and the competencies identified in “Appendix A” of the Senior
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President's Annual Performance Review: Process for 2017-18 Page 149 of 220 President’s Annual Performance Review Process and Timeline: 2017- 18
Compensation Framework1. More specifically, the Vice-Presidents and University Secretary are asked to identify the President’s areas of strengths as well as opportunities for continuing development. 3. An email is circulated to all current Board members to invite any general feedback or comments on the President’s performance over the past year, and to identify areas of strength and opportunities for continuing development. 4. The Chair assembles the feedback received from the Governors and Vice-Presidents and provides a general performance review summary report, without attribution, to the President that includes commentary on his performance relative to the competencies identified in “Appendix A” of the Senior Compensation Framework, including observations on strengths and opportunities for continuing development.
Governance & Human Resources Committee [May 8, 2018 Committee Meeting]
5. At the May meeting of the Governance & HR Committee, the President presents his Presidential Performance Information Report, for discussion with the Committee. 6. Following the discussion, the President is recused from the meeting, and the Board Chair presents the same general summary of the feedback received that was shared with the President (see item 4, above). 7. Based on the competencies identified in “Appendix A” of the Senior Compensation Framework, the Board Chair formulates a recommendation for any performance-based compensation for the President based on the information presented and the results of the discussion, for approval by the Governance & HR Committee.
Board of Governors [June 8, 2018 Board Meeting]
8. The Board Chair’s performance review summary report is presented to the Board of Governors for consideration as part of the Governance & HR Committee report in the closed session portion of the Board’s June meeting. At the meeting, the President offers an overview of the Presidential Performance Information Report and invites questions and comments from Governors. Following this discussion, the President retires from the meeting to allow Board members to continue the in-camera discussion. A proposed motion from the Governance & HR Committee is presented, seeking acceptance of the performance review report, along with a recommendation for any performance-based compensation. Following the discussion, the Board is invited to vote on the motion.
1 Current framework as of March 2018; draft Executive Compensation Framework still pending completion of public consultation and government approval
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President's Annual Performance Review: Process for 2017-18 Page 150 of 220 President’s Annual Performance Review Process and Timeline: 2017- 18
Board Chair [Following June 2018 Board meeting]
9. The Chair of the Board provides feedback to the President on the outcome of the Board of Governors annual performance review process, including any additional comments and recommendations, without attribution, arising from the deliberations. 10. The Chair of the Board, informed by the outcome of the Board of Governors deliberations, University policy concerning senior executive compensation, any legislation affecting compensation of university presidents, and the terms of the President’s contract, is authorized to direct the University Administration on behalf of the Board of Governors on the related considerations affecting the President’s compensation. The Chair seeks any guidance necessary from the Board’s Governance & HR Committee and reports back to the Committee on the actions taken.
President’s Goals and Objectives for the Upcoming Year [June – October 2018]
11. The President uses the information and comments from the annual review process to inform and formulate goals and objectives for the upcoming year, which are presented to the Governance & HR Committee at its first meeting in the fall, and subsequently to Board of Governors for approval at its October meeting.
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President's Annual Performance Review: Process for 2017-18 Page 151 of 220 Page 152 of 220 Review: Process for 2017 President's Annual Performance
President’s Annual Performance Review Process and Timeline 2017-18
ITEM TIMEFRAME TASK NEXT STEPS
Preparation for Early April o President prepares his Presidential Progress Report on 2017-18 Goals and Objectives and discusses Review 2017 with Board Chair - 18 Review Process April for 1. The President and the Board Chair meet to review 4. The Chair assembles the feedback collection of the Presidential Progress Report on 2017-18 Goals received from the Governors and info; end of and Objectives, prepared by the President, which Vice-Presidents and provides a April/ early summarizes activities relative to the President’s general performance review May for goals and objectives over the past year. summary report, without Chair’s report 2. The Board Chair meets individually with each Vice- attribution, to the President that President and the University Secretary in a private includes commentary on his session to obtain feedback on the President’s performance relative to the performance relative to his goals and objectives and competencies identified in the competencies identified in “Appendix A” of the “Appendix A” of the Senior Senior Compensation Framework1. More Compensation Framework, specifically, the Vice-Presidents and University including observations on strengths Secretary are asked to identify the President’s areas and opportunities for continuing of strengths as well as opportunities for continuing development. development. 3. An email is circulated to all current Board members to invite any general feedback or comments on the President’s performance over the past year, and to Page 153 of 220 identify areas of strength and opportunities for continuing development.
1 Current framework as of March 2018; draft Executive Compensation Framework still pending completion of public consultation and government approval
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President’s Performance Review Process and Timeline: 2017-18 Review: Process for 2017 President's Annual Performance
Governance & May 8, 2018 5. At the May meeting of the Governance & HR o Reports required by April 30, 2018 for HR Committee Committee, the President presents his Presidential distribution to Committee Meeting Performance Information Report, for discussion with the Committee. 6. Following the discussion, the President is recused from the meeting, and the Board Chair presents the same general summary of the feedback received that
- was shared with the President (see item 4, above). 18 7. Based on the competencies identified in “Appendix A” of the Senior Compensation Framework, the Board Chair formulates a recommendation for any performance-based compensation for the President based on the information presented and the results of the discussion, for approval by the Governance & HR Committee. Board of June 8, 2018 8. The Board Chair’s performance review summary Governors report is presented to the Board of Governors for Meeting consideration as part of the Governance & HR Committee report in the closed session portion of the Board’s June meeting. At the meeting, the President offers an overview of the Presidential Performance Information Report and invites questions and comments from Governors. Following this discussion, the President retires from the meeting to allow Board members to continue the in-
Page 154 of 220 camera discussion. A proposed motion from the Governance & HR Committee is presented, seeking acceptance of the performance review report, along with a recommendation for any performance-based compensation. Following the discussion, the Board is invited to vote on the motion.
2
President’s Performance Review Process and Timeline: 2017-18 Review: Process for 2017 President's Annual Performance
Board Chair/ Following 9. The Chair of the Board provides feedback to the 11. The President uses the information President the June President on the outcome of the Board of Governors and comments from the annual Board annual performance review process, including any review process to inform and meeting additional comments and recommendations, formulate goals and objectives for without attribution, arising from the deliberations. the upcoming year, which are 10. The Chair of the Board, informed by the outcome of presented to the Governance & HR the Board of Governors deliberations, University Committee at its first meeting in the
- policy concerning senior executive compensation, fall, and subsequently to Board of 18 any legislation affecting compensation of university Governors for approval at its presidents, and the terms of the President’s October meeting. contract, is authorized to direct the University Administration on behalf of the Board of Governors on the related considerations affecting the President’s compensation. The Chair seeks any guidance necessary from the Board’s Governance & HR Committee and reports back to the Committee on the actions taken. President/ June – o President prepares goals and objectives for 2018-19 o President and Board Chair discuss Board Chair August 2018 proposed Presidential Goals and Objectives for 2018-19 Governance & September o President presents proposed goals and objectives report o Committee formulates HR Committee 2018 for 2018-19 recommendation for Board (in-camera Meeting session) Board of October o In Closed Session, as part of the Gov & HR Committee o Following presentation, Committee Governors 2018 report, President presents proposed goals and presents recommendation (in-camera)
Page 155 of 220 Meeting objectives report; answers questions Board Chair/ Post- Board Chair meets with President to: President October 1. Confirm approval or revision of the goals and objectives, including feedback, without attribution, as 2018 BOG appropriate meeting 2. Advise President that the approved goals and objectives will form the basis of the upcoming annual Presidential performance review
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Page 156 of 220
To: Members, Board of Governors
From: Ben Doadt, Associate University Secretary
Subject: 6. Pensions Committee Report
Meeting: April 20, 2018
a) Report from Committee Chair
The following is provided for the information of Governors. At its meeting on March 7, 2018, the Pensions Committee:
• Received an update on sector issues • Received and reviewed an update on funding reform and CPP expansion • Considered and approved, for recommendation to the Board of Governors, the annual review of the Statement of Investment Policies and Procedures [refer to item 6b] • Considered and approved, for recommendation to the Board of Governors, proposed text amendments to pension plans [refer to item 6c] • Approved the University of Guelph Audited Pension Fund Statements [see online supporting documents1 folder] • Received an update on the activities of the Investment Subcommittee, including investment performance reports (Pensions) for 3rd and 4th Quarters 2017 [see online supporting documents folder] • Received an update on the administrative costs to the University’s pension plans • Received an update on the Financial Services Commission of Ontario (FSCO) examination of the University’s pensions plans • Received an update on election of plan representatives to the committee • Discussed plans for committee evaluation survey
2017-18 Pensions Committee Membership Governors: Plan/Retiree Representatives: Paul Gallagher, Chair Doug Badger (retiree) Nancy Brown Andison Chris Lee (professional) Kevin Golding, Board Chair Neil MacLusky (faculty) Bill Hogarth Joe Rooyakkers (retirement) Neil Parkinson John Tartt (retirement) Prashant Pathak Franco Vaccarino, President Ben Doadt, Associate University Secretary (non-voting)
1 URL https://uoguelph.civicweb.net/filepro/documents/146756
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Report from Committee Chair Page 157 of 220 Page 158 of 220
To: Members, Board of Governors
From: Ben Doadt, Associate University Secretary
Subject: 6. Pensions Committee Report
Meeting: April 20, 2018
b) Annual Review of Statement of Investment Policies & Procedures (SIPP) [Motion]
Background
The University, as administrator of its pension plans and in accordance with section 13.1 of each of the plans’ Statement of Investment Policies and Procedures (SIPP) as well as regulations under the Federal Pension Benefits Act, is required to review and confirm or amend the SIPP at least once annually.
Under its terms of reference, the Pensions Committee is assigned the responsibility on behalf of the Board of Governors to ensure that this review is completed, and it requests the advice of the Investment Subcommittee in this regard. The Investment Subcommittee’s terms of reference confirm its responsibilities to offer support to the review process.
In April 2016, the Board of Governors approved a new SIPP for each of the University’s three pension plans, following an asset and liability mix study conducted in 2015. Changes to the SIPP included a revised asset allocation policy and target weights for various asset classes. Implementation of these changes in asset allocation has continued since approval of the new SIPP, with oversight provided by the Board’s Investment Subcommittee.
SIPP Annual Review, 2018
In fall 2017, the Financial Services Commission of Ontario (FSCO) conducted an examination of the University’s pension plans. Examinations conducted by FSCO are routine and are not audits, rather, they involve a review of a range of documents with respect to the governance and administration of the pension plans.
One of the recommendations from the FSCO examination is that the Asset Allocation Policy section of the SIPP be further amended to include additional language relating to an interim asset mix, as the policy allocation (i.e. from 2016 changes to the SIPP) is being implemented.
As such, the University Administration is proposing that the SIPP for each plan be amended to include the following language:
An interim asset mix with different targets can be used as the policy allocation is being implemented. This interim asset mix can be adjusted from time to time until the policy allocation is reached at which time the policy allocation will be in effect.
Annual Review of Statement of Investment Policies & Page 159 of 220 Additional housekeeping items are also proposed in sections 1.5, 6.1 and 6.4.
At their most recent meetings, the Investment Subcommittee (Feb 14) and Pensions Committee (Mar 7) considered and recommends the revised SIPPs for each of the Professional Pension Plan, Retirement Pension Plan and Non-Professional Pension Plan to the Board of Governors for approval. A redlined version of the SIPP is enclosed, showing all proposed amendments.
The Board of Governors is asked to, RESOLVE, that the Board of Governors accept and approve the proposed amendments to the Statement of Investment Policies and Procedures for each of the Professional Pension Plan, Retirement Pension Plan and Non-Professional Pension Plan, as presented.
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Annual Review of Statement of Investment Policies & Page 160 of 220
UNIVERSITY OF GUELPH
Pension Plans
Statement of Investment Policies and Procedures
It is hereby certified by the undersigned that this Statement of Investment Policies and Procedures was adopted by the Board of Governors on:
April 20, 2016
2016
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Contents
1. BACKGROUND AND PURPOSE ...... 3
2. GOVERNANCE ...... 4
3. RESPONSIBILITIES AND PROCEDURES ...... 5
4. FUND OBJECTIVES, RETURNS AND RISK EXPECTATIONS ...... 9
5. PERMITTED CATEGORIES OF INVESTMENT AND CONSTRAINTS ...... 10
6. ASSET ALLOCATION POLICY ...... 15
7. LENDING AND BORROWING OF CASH AND SECURITIES ...... 16
8. VOTING RIGHTS ...... 17
9. VALUATION OF INVESTMENTS ...... 18
10. RELATED PARTIES AND CONFLICTS OF INTEREST ...... 18
11. MONITORING INVESTMENT PERFORMANCE ...... 20
12. ENVIRONMENTAL, SOCIAL, AND GOVERNANCE FACTORS ...... 2221
13. POLICY REVIEW ...... 22
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1. BACKGROUND AND PURPOSE
1.1 This document constitutes the Statement of Investment Policies and Procedures (the “Policy”) which outlines the investment policies and procedures applicable to the assets (the “Fund”) in respect of Pension Plan for Professional Staff (the “Plan”) sponsored by the University of Guelph (the “University”).
1.2 The purpose of this Policy is to formulate those investment principles, guidelines and monitoring procedures which are appropriate to the needs and objectives of the Fund, in a manner conforming to the applicable pension legislation as contained in the Ontario Pension Benefits Act and the regulations hereto (the “Act”). This Policy is supplementary to the rules contained in the Act.
1.3 The assets of the Plan are invested in common trusts with Retirement Plan and Pension Plan for Non-Professional Staff and the three Plans may hold assets directly.
1.4 The Plan is registered with the Financial Services Commission (Registration # 0324616) of Ontario and with the Canada Revenue Agency (Tax ID T12605603).
1.5 As of August 1, 20136, the date of the last completed valuation, the subject plan is 9081% funded on a going-concern basis and 6874% funded on a statutory solvency basis. On a wind-up basis the Plan is 64% funded. Approximately 5049% of the going-concern liabilities are in respect of active members.
1.6 The main features of the Plan are briefly described below:
(a) The pension is based on a formula utilizing a Member’s final average earnings multiplied by total pensionable service, and includes post-retirement inflationary protection at a level of the Consumer Price Index for Canada (capped at 8.0%) minus 2.0% per annum.
(b) The Plan provides benefits to Members on retirement, death, total and permanent disability, and termination of employment. Benefit payments to pensioners are normally made monthly. Payments of pre-retirement death benefits and benefits on
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termination of employment are generally lump sum amounts. Benefit payments are made from the Fund.
(c) Member contributions are required and are deposited to the Fund on a monthly basis.
(d) The University is required to contribute at a level sufficient to finance the defined benefits within the funding requirements of the Act and the limitations of the Income Tax Act (Canada). The amount of these contributions is calculated from time to time, based on the advice of the Actuary retained by the University for such purpose. University contributions, and pension expense for financial statement purposes, are dependent on many aspects of the Plan's actual experience, including the Fund's investment return.
1.7 All investment and other operations of the Fund shall be governed by the Act.
2. GOVERNANCE
2.1 The University through its Board of Governors (the "Board") is the Administrator of the Plan in accordance with the Act.
2.2 The Board has established a governance structure and delegated to the Pensions Committee of the Board (the “Board Committee”) certain aspects of the Fund's operations as described in Section 3.
2.3 In fulfilling its responsibilities, the Board Committee may delegate to or otherwise utilize employees of the University (“Staff Members”) or committees such as the Investment Subcommittee (the “IS”) where appropriate. The Board Committee shall retain responsibility and utilize suitable personnel for such activities and monitor the activities undertaken by the selected personnel.
2.4 The Board Committee may rely on independent experts for certain aspects of the Fund's operations where expert knowledge is required or desired or where a potential or actual conflict of interest exists.
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2.5 Staff Members are employees of the University who may be asked to be involved with the management and the administration of the Plan in the course of their work.
2.6 The IS consists of members appointed by the Board of Governors to provide expert advice and oversight in regards to the investment responsibilities for the Fund.
2.7 All investments and assets of the Fund shall be held by the custodian (“Custodial Trustee”) who is appointed by the Board Committee. The Custodial Trustee shall be a trust company duly registered in Canada or an insurance company authorized to underwrite life insurance in Canada.
2.8 The Plan Auditor shall be the independent auditors appointed by the Board. The Plan’s financial statements shall be audited by the Plan Auditor at least annually.
3. RESPONSIBILITIES AND PROCEDURES
3.1 As administrator and sponsor of the Plan, the Board has responsibility for all aspects of the Fund’s operations. To fulfill their responsibility in the most prudent and appropriate manner, the Board has delegated to the Board Committee as specified below.
3.2 The Board Committee, as delegated in its capacity as the employer, shall be responsible for:
(a) appointing and/or replacing the actuary;
(b) reviewing and approving the actuary’s report and other reports that might be required of the actuary;
(c) reviewing any recommendations for changes to the funding of the Plan;
(d) reviewing any recommendations for changes to the text of the Plan;
(e) recommending to the Board any changes or amendments to the Plan; and
(f) reporting to the Board on its activities on at least an annual basis.
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3.3 The Board Committee, as delegated in its capacity as the administrator, shall be responsible for:
(a) approving the Policy on an annual basis;
(b) approving the auditor’s report on the Fund;
(c) appointing and monitoring the performance of the Custodial Trustee of the Plan;
(d) reviewing and confirming or amending delegated responsibilities on an annual basis;
(e) monitoring the IS;
(f) assuming all or part of the responsibilities of the IS in the event that it becomes dysfunctional for any reason or if it appears that it can no longer fulfill its responsibilities; and
(g) when it deems it necessary or when requested, reporting to the Board on the administration, supervision and control of the Plan and the Fund.
3.4 The duties and responsibilities of the Staff Members are as follows:
(a) overseeing the administration of the Plan, including but not limited to Plan amendments;
(b) overseeing the cash management of the Plan with a view to ensuring that sufficient cash will be available for the payment of the benefits;
(c) advising plan members of any changes to the Plan that may affect the members including retirees;
(d) ensuring that financial statements are prepared and audited on an annual basis;
(e) ensuring that actuarial valuations are prepared within the required frequency and approve the valuations;
(f) ensuring that all regulatory documents are filed on a timely basis;
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(g) overseeing the Managers;
(h) monitoring third party service providers;
(i) reporting to the IS on investment performance;
(j) conducting periodic asset/liability studies;
(k) implementing the policy allocation as outlined in Section 6.1;
(l) implementing the rebalancing as described in Section 6.2;
(m) advising the Board Committee of any significant changes to the Plans, the Fund or the IS as they arise; and
(n) working in close collaboration with the IS and implement strategies and recommendations.
(o) In fulfilling their responsibilities, Staff Members may delegate activities relating to the duties listed above to external experts. Notwithstanding this delegation, staff shall remain responsible for, and shall be required to approve work done by others. In this regard, Staff Members are expected to delegate the activities only to suitable delegates, and review the work before approval.
3.5 The duties and responsibilities of the IS are as follows:
(a) reviewing and if necessary recommend changes in the Policy to the Board Committee and monitor the Plan and Fund characteristics that relate to the Policy on an annual basis;
(b) selecting, appointing and replacing when deemed necessary the external experts for the Fund including but not limited to: external investment managers and the independent measurement service;
(c) monitoring the external experts to the Fund in respect of their continuing suitability and performance;
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(d) monitoring the investment performance and financial position of the Fund, as described in Section 11; and
(e) reporting to the Board Committee on its activities at least annually.
(f) In fulfilling its responsibilities, the IS may delegate any activities relating to the duties and responsibilities listed above to the Staff Members or to external experts. Notwithstanding this delegation, the IS shall remain responsible for, and shall be required to approve, work done by others. In this regard, the IS is expected to delegate the activities only to suitable delegates, and review the work and the process undertaken to complete the work before approval.
3.6 The duties and responsibilities of external investment managers are as follows:
(a) investing assets of the Fund, through the Custodial Trustee, in accordance with individual mandates pursuant to an agreement between that Manager and the University and in accordance with the requirements of the Policy;
(b) providing a signed quarterly compliance certificate attesting to compliance with the Policy;
(c) in making investments, at all times complying with applicable provincial and federal pension and tax statutes and regulations and other applicable laws and regulations;
(d) meeting with the IS or the Staff Members, to review investment performance and other investment issues relevant to the Fund;
(e) providing written reports on a quarterly basis detailing the investment portfolio and performance; and
(f) adhering to the CFA Institute Code of Ethics and Standards of Professional Conduct.
3.7 The duties and responsibilities of the independent Custodial Trustee are as follows:
(a) serving as trustee and custodian of the Plan;
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(b) providing safekeeping for the assets of the Fund;
(c) providing record keeping services for the Fund; and
(d) providing custodial reports for the Fund as required.
3.8 The duties and responsibilities of the External Auditor are as follows:
(a) The external auditor shall be responsible to perform the audit as required under the Ontario Pension Benefits Act.
3.9 The duties and responsibilities of Measurement Service are as follows:
(a) evaluating, preparing and delivering a report on the Fund and Managers’ performance quarterly to the Staff Members; and
(b) advising Staff Members of issues relating to the performance of the Fund and the Managers as they arise.
3.10 The duties and responsibilities of the External Actuary are as follows:
(a) preparing actuarial valuations within the frequency required under the Act and deliver them to the University;
(b) providing assistance or information on an as required basis.
3.11 Others, including but not limited to Independent Advisors, Lawyers, Consultants and other experts in pension-related matters shall provide services on an as required basis.
3.12 Any party providing services in connection with the investment of the Fund shall accept and adhere to this Policy.
4. FUND OBJECTIVES, RETURNS AND RISK EXPECTATIONS
4.1 The primary investment objective of the Plan is to ensure the security of all pensions and
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other benefits that have accrued under the Plan by providing adequate funding through an asset pool that is separate from and independent of the University. To accomplish this objective, the Fund shall be invested with the care, diligence and skill that a person of ordinary prudence would exercise in dealing with the property of another person.
4.2 A secondary objective is to generate a return on the Fund that will reduce the long-term cost of providing the pension benefits to the most economical level possible having regard for the risk tolerance of the Administrator of the Plan. The risk tolerance is defined as the volatility of the funded status of the Plan impacting the contributions required to fund the Plan over time. Over the long term, the fund’s objective is to achieve an annualized rate of return (“Return”), after disbursement of investment management fees and transaction costs, at least equal to the going concern discount rate used for the actuarial valuation. It is recognized that, in any one period, the total return may be significantly above or below the going concern discount rate.
4.3 A third objective is to adopt investment strategies that achieve the most appropriate balance between returns and risk objectives considering that, based on historical data, asset classes that are most likely to produce greatest returns over time are also likely to exhibit the most volatility and vice-versa.
5. PERMITTED CATEGORIES OF INVESTMENT AND CONSTRAINTS
5.1 Diversification is an important factor to consider in maintaining an acceptable level of volatility in Return and limiting the impact of a significant loss in one particular security or asset class. Therefore, the Fund may invest in any or all of the asset categories and subcategories of investments defined in this section, subject to the constraints identified below each asset class, either directly or through pooled funds, assuming the pool funds invest in the asset categories and subcategories defined in the rest of Section 5.
5.2 For purposes of this Policy, "governments" includes supranational, Canadian federal, provincial or municipal governments, sovereign issuers and securities guaranteed by these governments.
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5.3 Equities such as: common shares, convertible debentures, share purchase warrants, share purchase rights, preferred shares, depositary receipts, interests in limited partnerships, and units of real estate investment trusts (REITS) and income trusts that have limited liability protection by statute; but:
(a) North American holdings shall be diversified by company, capitalization and industry, having regard to the relative sizes of industry sectors in the applicable stock market indices.
(b) Non-North American holdings shall be diversified by company, region, industry and country, having regard to the relative sizes of economic activity and stock market capitalization.
(c) Not more than 10% of the market value of the total equity portfolio shall be invested in any one entity.
(d) In respect of any Canadian income trusts and REITS , such trusts:
(i) Must be reporting issuers under the applicable securities legislation in Canada; and
(ii) Must be governed by the laws of a province that limits the liabilities of unit holders by statute.
(e) Any interest in a partnership must be as a limited partner and not as a general partner.
5.4 Real Estate such as: real property, whether held directly or through open or closed-end pooled funds, participating debentures, shares of corporations or limited partnerships formed for pension funds to invest in real estate; but:
(a) Properties shall be diversified by location, type of use and tenants.
(b) Not more than 20% of the Real Estate portfolio shall be invested in non-income producing property.
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(c) Not more than 10% of the Real Estate portfolio may be invested in any one property
5.5 Infrastructure such as: tangible assets, whether held directly or through open or closed- end pooled funds, participating debentures, shares of corporations or limited partnerships primarily engaged in or having long term economic interest in tangible assets that provide key services to an economy and that are expected to provide long-term stable cash flows, including but not necessarily limited to: transportation, telecom, communication, utilities, social services, and business related to those sectors; but:
(a) Investments shall be diversified by region and sector.
(b) Investments shall be made to infrastructure funds whose assets are expected to have the following characteristics:
(i) Provide essential services to the community;
(ii) Have monopolistic characteristics;
(iii) Have sustainable and predictable cash flows; and
(iv) Target investments primarily in assets and businesses with comparatively lower exposure to economic cycles, providing essential services under predictable regulatory regimes and/or through long-term contracts with the public sector, creditworthy entities or a broad base of end-users, allowing for visibility of revenues, operating costs and capital expenditure requirements.
5.6 Fixed Income and Mortgages such as: bonds; debentures; mortgages; notes; real return bonds; asset-backed securities or other debt instruments of governments or corporations (public and private) including foreign issuers and foreign pay bonds; guaranteed investment contracts or equivalent financial instruments of Canadian insurance companies, trust companies, banks or other eligible issuers, or funds which invest primarily in such instruments; annuities; deposit administration contracts or other similar instruments regulated by the Insurance Companies Act (Canada) or comparable provincial law, as amended from time to time; term deposits or similar instruments of Canadian trust companies and banks; and hybrid debt instruments issued by financial institutions; but:
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(a) Debt rated below “BBB (low)” shall not exceed 30% of the fixed income portfolio.
(b) Mortgages shall in all cases be first mortgages.
(c) Securities of unrated issuers will be assumed to fail all of the credit ratings referred to in this section.
5.7 Cash or Cash Equivalents such as: cash, money market securities issued by governments or Canadian corporations (public and private) with term to maturity of one year or less, deposits with Canadian Trust companies or banks; but:
(a) All cash equivalents, including those held within the portfolios for each asset class at the discretion of the Manager, shall have a minimum credit rating of "R-1 (low)" or equivalent.
5.8 Derivatives such as: futures; options; forward contracts; structured notes; and swap agreements; but:
(a) Futures and options may be used only when they are regularly traded on recognized public exchanges or other organized public trading facilities where market prices are readily available.
(b) Forward contracts, structured notes and swap agreements may be entered into only with financial institutions that satisfy the credit standards of the Policy with respect to cash equivalents and fixed income investments.
(c) Any use of derivative investments must be in accordance with a program that has been specifically considered and approved by the IS whether done directly in the Fund or in a Pooled Fund. Derivative instruments may not be used to create exposures to securities which would not otherwise be permitted under this Policy or which would be outside the limits under this Policy had the exposure been obtained in the cash markets through direct investment.
(d) Derivative instruments may be used only to:
(i) either replicate the investment performance of permitted direct investments; or
Annual Review of Statement of Investment Policies & Page 173 of 220 University of Guelph Statement of Investment Policies and Procedures Page 14
(ii) to reduce risk as part of a hedging strategy
(e) Any Manager investing in derivative investments must determine the market value of that Manager’s exposures on a daily basis.
5.9 Other Investments such as: venture capital; private equity and natural resource properties or participation rights, whether purchased directly, or through closed or open end pooled funds, or through participating debentures or shares of corporations or limited partnerships formed to invest in such properties subject to the Act; pooled funds eligible for pension fund investment, provided they invest only in the instruments or assets permitted in this Section.
5.10 To the extent the Plan invests the Fund in mutual, pooled or other unitized funds, the Manager shall manage such funds according to the investment policy statements developed by the Manager from time to time for each such fund, as have been communicated to IS.
5.11 Each Manager shall be responsible for choosing brokers to execute investment transactions in the most effective manner and in the best interest of the Fund.
5.12 It is necessary to maintain a regular flow of investment income and to hold an appropriate portion of the Fund in highly liquid investments to ensure adequate liquidity.
5.13 The IS shall ensure that the diversification requirements in each Manager’s Mandate, in combination with the amount of assets allocated to each Manager, are consistent with the limits outlined in this document based on the market value of the Fund.
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6. ASSET ALLOCATION POLICY
6.1 The policy allocation and ranges for the Fund have been determined as set out below. Over complete market cycles the allocation is expected to approximate the “Target Weight”.
Component Asset Benchmark Index Percentage of Fund at Market Values Classes (%) Target Permitted Range Weight Low High Canadian Equities S&P/TSX Composite 13 8 18 U.S. Equities S&P 500 ($Cdn) 13 8 18 International Equities MSCI EAFE Net ($Cdn) 14 9 19 Emerging Market MSCI Emerging 5 0 10 Markets net ($Cdn) Total Equities 45 40 50 Real Estate IPD Canada Total 10 5 15 Return Infrastructure DJ Brookfield Global 10 5 15 Infrastructure Composite Index Total Real Estate and 20 15 25 Infrastructure Mortgages FTSE TMX Short 5 0 10 TermMortgages Canadian Fixed Income FTSE TMX Short Term 5 0 10
FTSE TMX Long Term 17.5 12.5 22.5 Global High Yield Fixed Barclays Global High 5 0 10 Income1 Yield Index Total Mortgages and 32.5 27.5 37.5 Fixed Income Cash and Cash FTSE TMX Canada 91 2.5 0 5 Equivalents Day T-Bill 1100% currency hedged
6.2 An interim asset mix with different targets can be used as the policy allocation is being implemented. This interim asset mix can be adjusted from time to time until the policy allocation is reached at which time the policy allocation will be in effect.
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6.26.3 The asset allocation will be monitored quarterly and rebalancing will take place if and when an asset class exceeds its permitted range and will be re-balanced back to the Target Weight.
6.36.4 The total fund benchmark is based on a blend of the individual underlying asset class indices in their proportions represented in the Target Weight. Where a manager mandate encompasses more than one asset class, such allocation can be reflected in the buildup of the composite benchmark and target weight monitoring.
6.46.5 Cash and cash equivalents may also be held from time to time on a short-term, temporary basis or as defensive reserves within the portfolios for each asset class at the discretion of each Manager within the constraints prescribed by its Mandate.
7. LENDING AND BORROWING OF CASH AND SECURITIES
7.1 Borrowing of Cash and Securities
(a) Money shall not be borrowed on behalf of the Fund and the Fund’s assets shall not be pledged or otherwise encumbered in respect thereof, except:
(i) for the payment of refunds, benefits or administration costs of the Plan to the extent that such borrowing is limited to the amount of the current service contribution in any fiscal year of the Plan and that the term of the borrowing does not exceed 90 days;
(ii) for and to the extent of temporary overdrafts that occur in the course of normal day-to-day portfolio management.
7.2 Lending Securities
(a) Permitted Circumstances: The IS may lend the securities of the Fund as a means of generating incremental income or cash for investment or otherwise supporting an investment strategy. Such loans shall be in writing. When the IS lends securities of the fund, the document shall provide for the IS’s right to recall the loaned securities.
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(b) Use of Agents : Management may delegate, through the University’s custodial trustee, to a lending agent the authority to select borrowers, negotiate terms and rates and invest cash or securities collateral under written procedures which specify securities available for loan, pre-approved borrowers, loan terms, and instruments for the investment of collateral as well as administrative, risk management and reporting arrangements.
(c) Collateral and Margin Requirements: When the IS lends securities of the Fund as a means of generating incremental income or cash for investment, the following rules shall apply. The IS or its lending agent shall receive from the borrower collateral equal to no less than 105% of the market value of the securities loaned at the time of the transaction. The amount of collateral margin taken shall reflect best practices in local markets. Both loaned and collateral securities must be marked to market daily to account for increases in the market value of the securities loaned or decreases in the market value of the collateral. Shortfalls in the amount of collateral must be rectified by the following business day unless otherwise agreed to in writing. The collateral obtained to secure a loan of securities or any securities purchased with such collateral must be either cash or high quality, readily marketable securities acceptable as a direct investment under the IS’s investment policies. Title to all collateral must be clear.
8. VOTING RIGHTS
8.1 The responsibility of exercising and directing voting rights acquired through Fund investments shall normally be delegated to the Manager, who shall at all times act prudently and in the best interests of the Fund’s beneficiaries. The Manager shall provide the Staff Members with its proxy voting guidelines and notify the Staff Members of any changes to these guidelines.
8.2 The Manager shall maintain a record of how Fund voting rights have been exercised and provide the Staff Members with quarterly proxy voting results.
8.3 In case of doubt as to the best interests of the Plan’s beneficiaries, the Manager shall request instructions from the Staff Members and act in accordance with such instructions.
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8.4 The Staff Members reserve the right to direct, or override, the voting decisions of a Manager, if in its view such action is in the best interests of the Plan’s beneficiaries, except for investments held in a Pooled Fund.
8.5 It is recognized, however, that the above constraints and policy on voting rights may not be enforceable to the extent that part of the Fund is invested in Pooled Funds.
9. VALUATION OF INVESTMENTS
9.1 Investments shall be valued by the Custodial Trustee according to their fair market value.
9.2 Investments not normally traded shall be valued by a qualified expert appointed or approved by IS not less than annually.
9.3 Investments in pooled funds shall be valued according to the unit values published by the Manager.
10. RELATED PARTIES AND CONFLICTS OF INTEREST
10.1 Definition of Related Party
For the purposes of this Policy, a Related Party means:
(a) the University;
(b) the Board;
(c) a member of the Board Committee or IS;
(d) an officer, director or employee of the University;
(e) a person responsible for investing the assets of the Plan, or any officer, director or employee thereof;
Annual Review of Statement of Investment Policies & Page 178 of 220 University of Guelph Statement of Investment Policies and Procedures Page 19
(f) an association or union representing employees of the University, or an officer or employee thereof;
(g) a member of one of the Plan;
(h) the spouse or a child of any person referred to in any of paragraphs (b) to (f);
(i) an affiliate of the University;
(j) a corporation that is directly or indirectly controlled by a person referred to in any of paragraphs (a) to (h);
(k) an entity in which a person referred to in paragraph (a), (b) or (c), or the spouse or a child of such a person, has a substantial investment.
10.2 Related Party Transactions
(a) The assets of the Fund shall not be used to invest in securities of Related Parties or lent to any Related Parties unless such securities are publicly traded and selected by a Manager acting independently on behalf of all that Manager’s discretionary accounts or Pooled Funds having mandates similar to that of the Fund. Where applicable, a Manager shall provide the Staff Members with its internal guidelines on purchasing securities of the members of the Manager’s organization or affiliates.
(b) Notwithstanding paragraph (a), the assets of the Fund shall not be invested in any securities of the University or an affiliate of the University unless such securities are publicly traded, held within a Pooled Fund, and selected by a Manager acting independently.
(c) Any other transactions with a Related Party must be required for the operation or administration of the Plan and be on terms and conditions that are not less favourable to the Plan than the then market terms and conditions.
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10.3 Conflicts of Interest
(a) If a member of the Board or Board Committee, or any agent of or advisor to the Board or Board Committee, or any person employed in the investment or administration of the Fund has or acquires any material interest, direct or indirect, in any matter in which the Fund is concerned or may benefit materially from knowledge of, participation in, or by virtue of an investment decision or holding of the Fund, the person involved shall within three business days after the individual becomes aware of the conflict of interest disclose in writing this conflict of interest to the Chair of the Board or Board Committee. The disclosure should also be made orally if awareness of the conflict occurs during the discussion of the Plan’s business. The Chair shall then immediately advise all members of the Board or Board Committee, and the Board or Board Committee shall decide upon a course of action. Any such person will thereafter abstain from any decision making with respect to the area of conflict including the exercise of his/her votes, until the issue causing the conflict of interest is resolved independently by the remaining individuals with voting rights.
(b) Every disclosure of interest, with the name of the individual declaring the conflict and how the conflict was resolved, under this Section shall be recorded in the minutes of the relevant Board or Board Committee meeting.
(c) The failure of a person to comply with the procedures, described in this Section, shall not of itself invalidate any decision, contract or other matter.
(d) The Board Committee shall satisfy itself that an appropriate policy regarding conflicts of interest exists and is followed by any Manager appointed by the IS. As a minimum, the Code of Ethics and Standards of Professional Conduct adopted by the CFA Institute shall be expected to apply to such Manager.
11. MONITORING INVESTMENT PERFORMANCE
11.1 The IS, at least annually, shall prepare or cause to be prepared an overall analysis of Fund performance, including:
Annual Review of Statement of Investment Policies & Page 180 of 220 University of Guelph Statement of Investment Policies and Procedures Page 21
(a) the Fund objectives as defined in Section 4 in the Policy;
(b) in order to achieve the Return objective, the Fund is targeting to achieve over moving four-year periods a return, net of all brokerage expenses but before all other fees, at least equal to a composite index made of passive investments in appropriate market indices, according to the allocation defined in section 6.1.
(c) the return that could have been achieved by passive investment in index funds in the “Target Weight” allocation;
(d) the value added by any deviation in actual asset mix from the “Target Weight” allocation; and
(e) the value added by any active management of each component, relative to the results of appropriate standards.
11.2 In reviewing the Fund performance, the IS shall consider all relevant factors, including:
(a) the level of investment performance of the Manager’s portfolio relative to return objectives;
(b) the level of investment performance of the Manager’s portfolio relative to other comparable portfolios;
(c) the volatility of the Manager’s portfolio investment returns;
(d) any perceived shifts in the style of the Manager;
(e) any perceived shifts in the investment process of the Manager;
(f) relevant personnel turnover within the Manager’s firm;
(g) any perceived organizational issues with regard to the Manager’s firm;
(h) the level of investment management fees; and
(i) the adequacy of Manager client service.
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11.3 The IS reserves the right to replace any Manager at any time, if it deems such action to be in the best interests of the Fund.
12. ENVIRONMENTAL, SOCIAL, AND GOVERNANCE FACTORS
12.1 The Board Committee recognizes that environmental, social, and governance (“ESG”) factors are becoming an important and developing area for consideration in the context of registered pension plan investments. There continues to be great uncertainty around the implications of ESG factors on defined benefit pension plan investment options, both passive and active. At this time, the Board Committee has chosen to monitor the development of ESG factors in this area and will reconsider its approach as and when appropriate to do so.
13. POLICY REVIEW
13.1 This Policy shall be reviewed at least annually by the Board Committee and the IS in order to determine whether any modifications are necessary or desirable. Such review shall consider whether there has been:
(a) a fundamental change in the design of the Plan;
(b) significant revisions to the expected long-term trade-off between risk and return on key asset classes;
(c) a major change in the actuarial calculation basis, the membership/liability distribution, or the contribution/expense expectation in respect of the Plan;
(d) a significant shift in the financial risk tolerance of the University;
(e) shortcomings of the Policy that emerge in its practical operation;
(f) significant recommendations by a Manager;
(g) changes in applicable legislation.
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13.2 A copy of this Policy and any amendments to it shall be delivered to the actuary for the Plan. A copy of this Policy, or relevant sections thereof, shall also be delivered to each Manager and to the Board, the Board Committee and the IS.
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To: Members, Board of Governors
From: Ben Doadt, Associate University Secretary
Subject: 6. Pensions Committee Report
Meeting: April 20, 2018
c) Negotiated Text Amendments to Pension Plans [Motion]
At its meeting March 7, 2018, the Pensions Committee considered and accepted text amendments to the Professional and Retirement Pension Plan arising from negotiated agreements with the following employee groups:
Professional Plan (Amendment 4) • Ontario Nurses Association, Local 15 • Professional Staff Association • University of Guelph Faculty Association • University of Guelph Faculty Association, Unit 2
Retirement Plan (Amendment 5) • Canadian Union of Public Employees, Local 1334 • Canadian Union of Public Employees Local 1334, Unit 1 • Canadian Union of Public Employees Local 3913, Unit 2 • Exempt Group • Unifor Local 2003 • United Steelworkers Union, Local 4120
An overview of the changes, provided by Willis Towers Watson (plan actuary) is enclosed and followed by Board resolutions (provided in ‘clean’ and tracked’ versions) to effect the amendment.
The Board of Governors is asked to, RESOLVE, that the Board of Governors accept and approve the proposed resolutions concerning amendments to the texts of the Professional Pension Plan, and the Retirement Plan, as presented.
n:\bog\bog meetings\2017-2018\5. april 20, 2018\cover memos\6c_pensions-text amendments to pension plans.docx
Negotiated Text Amendments to Pension Plans [Motion] Page 185 of 220 Page 186 of 220 Pension Plans [Motion] Negotiated TextAmendments to
University of Guelph Pension Plans Plan Amendments CUPE 1334, CUPE 1334 Unit 1, CUPE 3913 Unit 2, Exempt Group, Unifor, USW, ONA, P&M, UGFA and UGFA Unit 2
March 7, 2018 Pensions Committee Meeting Davis Gonsalves and David Kenny Page 187 of220
willistowerswatson.com © 2018 Willis Towers Watson. All rights reserved. Pension Plans [Motion] Negotiated TextAmendments to
Overview
. Purpose is to present amendments resulting from negotiated pension changes affecting member contribution requirements . Increases are in accordance with negotiated framework for sharing the Normal Actuarial Cost and reflect the applicable maximum increase as stipulated in each agreement
. Contribution rate changes that affect employee groups in: . Retirement Plan: ̵ CUPE 1334 – ratified March 17, 2017 ̵ CUPE 1334 Unit 1 – ratified July 17, 2017 ̵ CUPE 3913 Unit 2 – ratified March 8, 2017 ̵ Exempt Group – ratified November 10, 2017 ̵ Unifor – ratified October 29, 2015 ̵ USW – ratified July 10, 2017 . Professional Plan: ̵ ONA – ratified December 18, 2017 ̵ P&M – ratified August 28, 2017
Page 188 of220 ̵ UGFA – ratified November 3, 2017 ̵ UGFA Unit 2 – ratified January 28, 2016
. Amendments to be filed with FSCO and CRA once formally adopted by University
willistowerswatson.com 2 © 2018 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson and Willis Towers Watson client use only. Pension Plans [Motion] Negotiated TextAmendments to
Changes to Retirement Plan Amendment 5
. Article 5 (Member Contributions) . Section 5.01(a) amended to reflect the following contribution changes:
Rates (Below/Above YMPE) Effective Group Current New Date CUPE 1334 8.35/10.65 8.60/10.90 May 1, 2018
CUPE 1334 Unit 1 7.30/9.00 7.55/9.25 May 1, 2018
CUPE 3913 Unit 2 7.30/9.00 7.55/9.25 Sept. 1, 2018
Exempt Group 8.16/9.50 8.41/9.75 May 1, 2018
Unifor 7.80/9.50 8.44/10.14 April 1, 2018
USW 7.75/9.25 8.00/9.50 May 1, 2018 Page 189 of220
willistowerswatson.com 3 © 2018 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson and Willis Towers Watson client use only. Pension Plans [Motion] Negotiated TextAmendments to
Changes to Professional Plan Amendment 4
. Article 5 (Member Contributions) . Section 5.01(a) amended to reflect the following contribution changes:
Rates (Below/Above YMPE) Effective Group Current New Date ONA 8.40/10.10 8.66/10.36 May 1, 2018
P&M 7.44/9.14 7.69/9.39 May 1, 2018
UGFA 7.78/9.48 8.18/9.88 July 1, 2018
UGFA Unit 2 7.30/9.00 7.50/9.50 May 1, 2018 Page 190 of220
willistowerswatson.com 4 © 2018 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson and Willis Towers Watson client use only. BOARD RESOLUTION
PENSION PLAN FOR PROFESSIONAL STAFF
OF UNIVERSITY OF GUELPH
AMENDMENT 4
WHEREAS the University of Guelph (the “University”) has established the Pension Plan for Professional Staff of University of Guelph (the “Plan”), amended and restated effective June 30, 2015;
AND WHEREAS the Plan provides in Section 17.01 the right of the Board of Governors of the University to amend the Plan;
AND WHEREAS the University wishes to amend the Plan to reflect negotiated benefit provisions for members represented by ONA, P&M, UGFA and UGFA Unit 2;
NOW THEREFORE BE IT RESOLVED THAT
1. Effective May 1, 2018, the contribution rate table in Section 5.01(a) of the Plan shall be deleted and replaced with the following:
“ Applicable Contribution Rate % of Earnings % of Earnings Union, Change Date Up to or Equal Above the Association or to the YMPE YMPE Group ONA May 1, 2018 8.66 10.36 P&M May 1, 2018 7.69 9.39 UGFA July 1, 2016 7.78 9.48 UGFA Unit 2 May 1, 2018 7.50 9.50 Members not July 1, 2014 7.30 9.00 represented by a Union, Association or Group ”
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Negotiated Text Amendments to Pension Plans [Motion] Page 191 of 220 University of Guelph Pension Plan for Professional Staff of University of Guelph Board Resolution Page 2
2. Effective July 1, 2018, the contribution rate table in Section 5.01(a) of the Plan shall be deleted and replaced with the following:
“ Applicable Contribution Rate % of Earnings % of Earnings Union, Change Date Up to or Equal Above the Association or to the YMPE YMPE Group ONA May 1, 2018 8.66 10.36 P&M May 1, 2018 7.69 9.39 UGFA July 1, 2018 8.18 9.88 UGFA Unit 2 May 1, 2018 7.50 9.50 Members not July 1, 2014 7.30 9.00 represented by a Union, Association or Group ”
I HEREBY CERTIFY that the above amendment is a true copy of a Resolution passed by the Board of Governors of the University of Guelph at a meeting called and held on the day of , 2018 at which a quorum was present, and that such Resolution is in full force and effect.
DATED AT Guelph, Ontario, this day of , 2018.
Signature Signature
Title Title
http://natct.internal.towerswatson.com/clients/600497/2018UofGGeneral/Documents/UG Prof Plan Amendment 4 clean final.docx
Negotiated Text Amendments to Pension Plans [Motion] Page 192 of 220 BOARD RESOLUTION
PENSION PLAN FOR PROFESSIONAL STAFF
OF UNIVERSITY OF GUELPH
AMENDMENT 4
WHEREAS the University of Guelph (the “University”) has established the Pension Plan for Professional Staff of University of Guelph (the “Plan”), amended and restated effective June 30, 2015;
AND WHEREAS the Plan provides in Section 17.01 the right of the Board of Governors of the University to amend the Plan;
AND WHEREAS the University wishes to amend the Plan to reflect negotiated benefit provisions for members represented by ONA, P&M, UGFA and UGFA Unit 2;
NOW THEREFORE BE IT RESOLVED THAT
1. Effective May 1, 2018, the contribution rate table in Section 5.01(a) of the Plan shall be deleted and replaced with the following:
“ Applicable Contribution Rate % of Earnings % of Earnings Union, Change Date Up to or Equal Above the Association or to the YMPE YMPE Group ONA May 1, 20162018 8.4066 10.1036 P&M May 1, 20152018 7.4469 9.1439 UGFA July 1, 2016 7.78 9.48 UGFA Unit 2 May 1, 20172018 7.3050 9.0050 Members not July 1, 2014 7.30 9.00 represented by a Union, Association or Group ”
http://natct.internal.towerswatson.com/clients/600497/2018UofGGeneral/Documents/UG Prof Plan Amendment 4 tracked final.docx
Negotiated Text Amendments to Pension Plans [Motion] Page 193 of 220 University of Guelph Pension Plan for Professional Staff of University of Guelph Board Resolution Page 2
2. Effective July 1, 2018, the contribution rate table in Section 5.01(a) of the Plan shall be deleted and replaced with the following:
“ Applicable Contribution Rate % of Earnings % of Earnings Union, Change Date Up to or Equal Above the Association or to the YMPE YMPE Group ONA May 1, 2018 8.66 10.36 P&M May 1, 2018 7.69 9.39 UGFA July 1, 20162018 7.788.18 9.4888 UGFA Unit 2 May 1, 2018 7.50 9.50 Members not July 1, 2014 7.30 9.00 represented by a Union, Association or Group ”
I HEREBY CERTIFY that the above amendment is a true copy of a Resolution passed by the Board of Governors of the University of Guelph at a meeting called and held on the day of , 2018 at which a quorum was present, and that such Resolution is in full force and effect.
DATED AT Guelph, Ontario, this day of , 2018.
Signature Signature
Title Title
http://natct.internal.towerswatson.com/clients/600497/2018UofGGeneral/Documents/UG Prof Plan Amendment 4 tracked final.docx
Negotiated Text Amendments to Pension Plans [Motion] Page 194 of 220 BOARD RESOLUTION
RETIREMENT PLAN OF UNIVERSITY OF GUELPH
AMENDMENT 5
WHEREAS the University of Guelph (the “University”) has established the Retirement Plan of University of Guelph (the “Plan”), amended and restated effective June 30, 2015;
AND WHEREAS the Plan provides in Section 17.01 the right of the Board of Governors of the University to amend the Plan;
AND WHEREAS the University wishes to amend the Plan to reflect negotiated benefit provisions for members represented by CUPE 1334, CUPE 1334 Unit 1, CUPE 3913 Unit 2, Exempt Group, Unifor and USW;
NOW THEREFORE BE IT RESOLVED THAT:
1. Effective April 1, 2018, the contribution rate table in Section 5.01(a) of the Plan shall be deleted and replaced with the following:
“
Applicable Union, Contribution % of Earnings % of Earnings Association or Group Rate Change Date Up to or Equal Above the to the YMPE YMPE CUPE 1334 May 1, 2017 8.35 10.65 CUPE 1334 Unit 1 September 1, 2017 7.30 9.00 CUPE 3913 Unit 2 September 1, 2017 7.30 9.00 Exempt Group May 1, 2016 8.16 9.50 OPSEU May 1, 2017 7.05 8.75 OSSTF May 1, 2017 7.80 9.14 UGFSEA Unit 1 May 1, 2017 7.32 9.02 UGFSEA Unit 2 May 1, 2017 7.27 8.97 Unifor April 1, 2018 8.44 10.14 USW April 1, 2017 7.75 9.25 Members not July 1, 2014 6.55 8.25 represented by a Union, Association or Group
”
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Negotiated Text Amendments to Pension Plans [Motion] Page 195 of 220 University of Guelph Retirement Plan of University of Guelph Board Resolution Page 2
2. Effective May 1, 2018, the contribution rate table in Section 5.01(a) of the Plan shall be deleted and replaced with the following: “
Applicable Union, Contribution % of Earnings % of Earnings Association or Rate Change Up to or Equal Above the Group Date to the YMPE YMPE CUPE 1334 May 1, 2018 8.60 10.90 CUPE 1334 Unit 1 May 1, 2018 7.55 9.25 CUPE 3913 Unit 2 September 1, 2017 7.30 9.00 Exempt Group May 1, 2018 8.41 9.75 OPSEU May 1, 2017 7.05 8.75 OSSTF May 1, 2017 7.80 9.14 UGFSEA Unit 1 May 1, 2017 7.32 9.02 UGFSEA Unit 2 May 1, 2017 7.27 8.97 Unifor April 1, 2018 8.44 10.14 USW May 1, 2018 8.00 9.50 Members not July 1, 2014 6.55 8.25 represented by a Union, Association or Group
”
3. Effective September 1, 2018, the contribution rate table in Section 5.01(a) of the Plan shall be deleted and replaced with the following:
“
Applicable Union, Contribution % of Earnings % of Earnings Association or Rate Change Up to or Equal Above the Group Date to the YMPE YMPE CUPE 1334 May 1, 2018 8.60 10.90 CUPE 1334 Unit 1 May 1, 2018 7.55 9.25 CUPE 3913 Unit 2 September 1, 2018 7.55 9.25 Exempt Group May 1, 2018 8.41 9.75 OPSEU May 1, 2017 7.05 8.75 OSSTF May 1, 2017 7.80 9.14 UGFSEA Unit 1 May 1, 2017 7.32 9.02 UGFSEA Unit 2 May 1, 2017 7.27 8.97 Unifor April 1, 2018 8.44 10.14
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Negotiated Text Amendments to Pension Plans [Motion] Page 196 of 220 University of Guelph Retirement Plan of University of Guelph Board Resolution Page 3
USW May 1, 2018 8.00 9.50 Members not July 1, 2014 6.55 8.25 represented by a Union, Association or Group
”
I HEREBY CERTIFY that the above amendment is a true copy of a Resolution passed by the Board of Governors of the University of Guelph at a meeting called and held on the day of , 2018 at which a quorum was present, and that such Resolution is in full force and effect.
DATED AT Guelph, Ontario, this day of , 2018.
Signature Signature
Title Title
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Negotiated Text Amendments to Pension Plans [Motion] Page 197 of 220 Page 198 of 220 BOARD RESOLUTION
RETIREMENT PLAN OF UNIVERSITY OF GUELPH
AMENDMENT 5
WHEREAS the University of Guelph (the “University”) has established the Retirement Plan of University of Guelph (the “Plan”), amended and restated effective June 30, 2015;
AND WHEREAS the Plan provides in Section 17.01 the right of the Board of Governors of the University to amend the Plan;
AND WHEREAS the University wishes to amend the Plan to reflect negotiated benefit provisions for members represented by CUPE 1334, CUPE 1334 Unit 1, CUPE 3913 Unit 2, Exempt Group, Unifor and USW;
NOW THEREFORE BE IT RESOLVED THAT:
1. Effective April 1, 2018, the contribution rate table in Section 5.01(a) of the Plan shall be deleted and replaced with the following:
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Applicable Union, Contribution % of Earnings % of Earnings Association or Rate Change Up to or Equal Above the Group Date to the YMPE YMPE CUPE 1334 May 1, 2017 8.35 10.65 CUPE 1334 Unit 1 September 1, 2017 7.30 9.00 CUPE 3913 Unit 2 September 1, 2017 7.30 9.00 Exempt Group May 1, 2016 8.16 9.50 OPSEU May 1, 2017 7.05 8.75 OSSTF May 1, 2017 7.80 9.14 UGFSEA Unit 1 May 1, 2017 7.32 9.02 UGFSEA Unit 2 May 1, 2017 7.27 8.97 Unifor May April 1, 7.808.44 9.5010.14 20172018 USW April 1, 2017 7.75 9.25 Members not July 1, 2014 6.55 8.25 represented by a Union, Association or Group
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Negotiated Text Amendments to Pension Plans [Motion] Page 199 of 220 University of Guelph Retirement Plan of University of Guelph Board Resolution Page 2
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2. Effective May 1, 2018, the contribution rate table in Section 5.01(a) of the Plan shall be deleted and replaced with the following: “
Applicable Union, Contribution % of Earnings % of Earnings Association or Rate Change Up to or Equal Above the Group Date to the YMPE YMPE CUPE 1334 May 1, 20172018 8.3560 10.6590 CUPE 1334 Unit 1 September May 1, 7.3055 9.0025 20172018 CUPE 3913 Unit 2 September 1, 2017 7.30 9.00 Exempt Group May 1, 20162018 8.1641 9.5075 OPSEU May 1, 2017 7.05 8.75 OSSTF May 1, 2017 7.80 9.14 UGFSEA Unit 1 May 1, 2017 7.32 9.02 UGFSEA Unit 2 May 1, 2017 7.27 8.97 Unifor April 1, 2018 8.44 10.14 USW April May 1, 7.758.00 9.2550 20172018 Members not July 1, 2014 6.55 8.25 represented by a Union, Association or Group
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3. Effective September 1, 2018, the contribution rate table in Section 5.01(a) of the Plan shall be deleted and replaced with the following:
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Applicable Union, Contribution % of Earnings % of Earnings Association or Rate Change Up to or Equal Above the Group Date to the YMPE YMPE CUPE 1334 May 1, 2018 8.60 10.90 CUPE 1334 Unit 1 May 1, 2018 7.55 9.25 CUPE 3913 Unit 2 September 1, 7.3055 9.0025 20172018 Exempt Group May 1, 2018 8.41 9.75
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Negotiated Text Amendments to Pension Plans [Motion] Page 200 of 220 University of Guelph Retirement Plan of University of Guelph Board Resolution Page 3
OPSEU May 1, 2017 7.05 8.75 OSSTF May 1, 2017 7.80 9.14 UGFSEA Unit 1 May 1, 2017 7.32 9.02 UGFSEA Unit 2 May 1, 2017 7.27 8.97 Unifor April 1, 2018 8.44 10.14 USW May 1, 2018 8.00 9.50 Members not July 1, 2014 6.55 8.25 represented by a Union, Association or Group
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I HEREBY CERTIFY that the above amendment is a true copy of a Resolution passed by the Board of Governors of the University of Guelph at a meeting called and held on the day of , 2018 at which a quorum was present, and that such Resolution is in full force and effect.
DATED AT Guelph, Ontario, this day of , 2018.
Signature Signature
Title Title
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Negotiated Text Amendments to Pension Plans [Motion] Page 201 of 220 Page 202 of 220
To: Members, Board of Governors
From: Ben Doadt, Associate University Secretary
Subject: 6. Pensions Committee Report
Meeting: April 20, 2018
e) Update on University Pensions Project
The Board will receive an update on recent activities related to the development of a Jointly Sponsored Pension Plan (JSPP) for Ontario’s university sector.
A website was recently established to aid in communicating related news and developments to university employees and retirees: http://www.universitypension.ca/
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Update on University Pensions Project Page 203 of 220 Page 204 of 220
To: Members, Board of Governors
From: Ben Doadt, Associate University Secretary
Subject: 7. Physical Resources and Property Committee Report
Meeting: April 20, 2018
a) Report from Committee Chair
The Physical Resources and Property Committee has not met since the Board of Governors meeting of January 23, 2018. (Due to a lack of substantive items of business, the Committee’s meeting scheduled for March 29, 2018 was cancelled.)
2017-18 Physical Resources and Property Committee Membership Graham Badun, Chair Gerrit Bos Paul Gibson Kevin Golding, Board Chair Sally Hickson Bill Hogarth Nicola Mercer (Board of Trustees cross-appt) Byron Sheldrick Franco Vaccarino, President Ben Doadt, Associate University Secretary (non-voting)
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Report from Committee Chair Page 205 of 220 Page 206 of 220
To: Members, Board of Governors
From: Ben Doadt, Associate University Secretary
Subject: 8. Board of Trustees Report
Meeting: April 20, 2018
a) Report from the Chair
The following is provided for the information of Governors. At its meetings held February 16, 2018 and March 21, 2018, the Board of Trustees:
• Received an update on sector issues • Received a report from the Investment Subcommittee • Reviewed the proposed 2018-19 Real Estate Division Budget & Business Plan [to be addressed in closed session] • Received and reviewed the Semester Report for Real Estate Division (second semester December 31, 2017) • Received and reviewed the Matrix of Competencies for Board of Trustees [to be addressed at the June Board meeting] • Discussed implementation of the Real Estate Strategy • Discussed plans for Committee evaluation survey
2017-18 Board of Trustees Membership Virginia McLaughlin, Chair Rags Davloor Kevin Golding, Board Chair Nicola Mercer Wendy Millar John Patterson Franco Vaccarino, President Ben Doadt, Associate University Secretary (non-voting)
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Report from the Chair Page 207 of 220 Page 208 of 220
To: Members, Board of Governors
From: Gen Gauthier-Chalifour, University Secretary
Subject: 9. Move to Closed Session
Meeting: April 20, 2018
a) Adjourn Open Session and Move into Closed Session [Motion]
The Board of Governors is asked to,
RESOLVE, that the Board of Governors move into closed session and that Daniel Atlin, Karen Bertrand, Annette Blok, Malcolm Campbell, Ted Cogan, Ben Doadt, Jackie Gillis, Martha Harley, Virginia McLaughlin, Mary Murphy, Don O’Leary, Sarah Willey-Thomas and Charlotte Yates be invited to remain for the closed session of the meeting.
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Adjourn Open Session and Move into Closed Session Page 209 of 220 Page 210 of 220
To: Members, Board of Governors
From: Gen Gauthier-Chalifour, University Secretary
Subject: 12. Addenda Items
Meeting: April 20, 2018
Material in support of the following agenda item was circulated, under separate cover, in advance of the Board meeting:
2a) Report on University Activities – President’s Report to the Board of Governors
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2a) Report on University Activities Page 211 of 220 Page 212 of 220 Report to the Board of Governors From President Franco Vaccarino
For April 20, 2018 meeting
Dear Board Members,
Once again, our academic year is ending, and our campus is a flurry of activity as students prepare their final projects and complete their exams.
While our students look forward to wrapping up their semester, our faculty, staff and administration are hard at work positioning U of G for continuing and future successes.
Building a healthier U of G During the strategic renewal process, we reaffirmed our University’s commitment to supporting the well-being of our faculty, staff and students. I would like to share with you some important strides we are making in two key wellness areas.
Earlier this month, members of the senior leadership team hosted a town hall meeting to share and discuss overall results of our recent Wellness@Work survey. The survey provided valuable insight into the psychosocial factors that influence the University working environment. Experts from Vancouver Psych Health + Safety, the consultants who implemented the survey, attended to discuss the survey methodology and interpretation. We discussed next steps in acting on their recommendations and, afterward, held a change readiness workshop with the University leadership team.
We have also begun discussions on making U of G a smoke-free campus. We have formed an advisory committee with representatives from senior administration, staff and community experts to create a smoke-free campus policy within the next two years. The committee is led by Don O’Leary, vice-president (finance, administration and risk).
The committee will reach out to community and campus groups for assistance in creating our smoke-free policy.
Federal and provincial government budget highlights In the past two months, both the federal and provincial governments released their 2018 budgets. Both budgets contained important funding implications for U of G.
The 2018 federal budget included a significant investment in science and university research with nearly $4 billion in total funding, including: • $925 million in new funding over the next five years for investigator-led research through Canada’s three federal research councils: the Natural Sciences and Engineering Research Council (NSERC), the Canadian Institutes of Health Research (CIHR), and the Social Sciences and Humanities Research Council (SSHRC)
o An increase of $354.7 million each for NSERC and CIHR over the next five years, and $215.5 million for SSHRC.
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2a) Report on University Activities Page 213 of 220 • An additional $231.3 million over five years for the Research Support Fund – a critical program that assists universities with the institutional costs of research, such as facility costs and technology transfer supports. • $763 million for cutting-edge research infrastructure through the Canada Foundation for Innovation over the next five years, reaching a stable base of ongoing funding at $462 million per year by 2023-24.
The federal budget also established a tri-council fund to support research that is international, interdisciplinary, fast-breaking and higher-risk, with $275 million over five years to be administered by SSHRC. Granting councils – NSERC, CIHR and SSHRC – will be required to increase tri-council collaboration, support for interdisciplinary research and diversity among funding recipients – including women, early career researchers and other underrepresented groups.
The 2018 provincial budget continued to focus on the government’s broad agenda of care: health care, home care, mental health care and child care services.
For the post-secondary sector, the government’s principal focus is to support students, primarily through the expansion of OSAP to reduce tuition costs. The Ministry of Advanced Education and Skills Development made three new major funding announcements on post- secondary education: • $3 billion in capital grants to post-secondary education institutions over 10 years, including a new investment of $500 million over 10 years starting in 2020-21, to help renew and modernize campuses. • $132 million in new funding over three years for its “Talent Advantage Investments” to support innovative programming that responds to the needs of employers and students in the changing economy. • One-time funding in 2018-19 to support quality programs and student outcomes. Universities will receive $32 million in funding to help offset cost increases associated with changes to the Employment Standards Act.
As we prepare for the June 7 provincial election, we continue to meet with elected officials and candidates to ensure that we are well positioned pending the election outcome.
I look forward to our meeting on April 20 and to further discussing the work we are doing to improve life at U of G.
Sincerely,
Franco J. Vaccarino, PhD, FCAHS President and Vice-Chancellor
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2a) Report on University Activities Page 214 of 220 SUPPORTING RESEARCH EXCELLENCE
• Ontario invests $713 million in OMAFRA-U of G agreement o U of G and the provincial government have renewed their long-term partnership with a commitment of $713 million in funding over 10 years from the Ontario Ministry of Agriculture, Food and Rural Affairs. The partnership will help U of G and OMAFRA further discovery and innovation, and position Canada as a world leader in agri-food. Minister of Agriculture, Food and Rural Affairs Jeff Leal, Guelph MPP Liz Sandals and other provincial government officials were on hand for the signing of the agreement on Canadian Agricultural Day. • New U of G accelerator to launch agri-food ideas, innovations o U of G’s new Accelerator Guelph is a four-phase program that will mentor U of G agri-food entrepreneurs to turn cutting-edge agri-food innovations into products and applications that will improve life and help grow the economy. • U of G gets $25 million for water, energy conservation o U of G will use $25 million in funding from the provincial government to reduce its greenhouse gas emissions. Funded projects include upgrading and expanding our heat recovery system and installing real-time energy monitoring meters and a new electric boiler. Minister of Advanced Education, Skills and Development Mitzie Hunter and Minister of the Environment and Climate Change Chris Ballard attended the funding announcement on campus. • CIHR awards $3.37 million to U of G for innovative health research o Seven U of G researchers have received a total of $3.37 million from the Canadian Institutes of Health Research to support innovative health research initiatives. Congratulations to Profs. Tami Martino, Anthony Clarke, Cezar Khursigara, David Ma, Barbara Morrongiello, Hannah Neufeld and Linda Parker.
COLLABORATING FOR EXCELLENCE
• Building on opportunities through government relations
o Guelph Economic Summit – Innovation Corridor: . The University of Guelph in collaboration with the City of Guelph, the County of Wellington, the Chamber of Commerce and Conestoga College have been working to define Guelph’s unique and critical role in the Innovation Corridor, the 112-km economic supercluster between Toronto and Waterloo. . As part of this work, Toronto Mayor John Tory took part in Guelph’s economic summit last month. The summit included a panel discussion with local leaders including representation from U of G.
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2a) Report on University Activities Page 215 of 220 o Campus visit by new deputy minister champion . Canadian Food Inspection Agency executive vice-president France Pégeot was appointed U of G’s deputy minister champion in January. . In March, Pégeot toured the Biodiversity Institute of Ontario, and met with President Vaccarino and senior administration to discuss ongoing collaborations and future opportunities. • U of G faculty, staff and students get free access to Lynda.com’s video-based training library o Through a three-year pilot program sponsored by the Government of Ontario, U of G and all other Ontario post-secondary education institutions now have access to Lynda.com, an online video-based training library powered by LinkedIn. • New data portal gives access to U of G statistics o U of G’s new data portal from the Institutional Analysis and Research department provides various University reports and information, including official enrolment statistics, details on degrees awarded and survey results. Use your central log-in credentials to access the portal. • U of G hosts Equine Industry Symposium o On Feb. 10, the Ontario Agricultural College hosted its Equine Industry Symposium. The theme of this year’s event was “Joining Forces on Youth Engagement - Recruitment, Retention, Succession." • U of G helps athletes on the road to the Olympics and beyond o U of G has partnered with the Game Plan Education Network to help athletes pursue post-secondary education while training for the Olympic and Paralympic games. Through this partnership, athletes need not put their academic futures on the back burner while training to represent Canada on the world stage. • New partnership supports sexual assault survivors o A new partnership between U of G and Guelph-based Women in Crisis (WIC) means survivors of sexual violence can now receive specific counselling right on campus, rather than having to visit WIC’s downtown office for support. The initiative helps supplement the resources and services available to students through the University’s Student Counselling Services. • University contributes to community Vital Signs report o U of G’s Community Engaged Scholarship Institute worked with local partners to produce the recently released Vital Signs report, outlining strengths and challenges in Guelph and Wellington County. • New exhibit launching at the library o “From Glen Notes to War Notes: A Canadian Perspective on the First World War in Rilla of Ingleside” is the first exhibit in the new Archival and Special Collections space in the McLaughlin Library. The exhibit launched March 8.
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2a) Report on University Activities Page 216 of 220 • Amanda Lang lecture and book signing o In support of the United Nations’ HeForShe movement, award-winning journalist Amanda Lang was on campus March 13 to discuss her book The Beauty of Discomfort.
• One topic, three takes: Guelph Talks Research o The Office of Research has hosted a lecture series in which winners of the University Research Awards give their take on a single topic, each from their own disciplinary perspective. Lectures have taken place weekly through March and April. • Economic Growth on First Nations: Opportunities and Constraints panel discussion o On March 14, the Department of Food, Agricultural and Resource Economics hosted a panel featuring four First Nations chiefs discussing their assessment of the economic growth opportunities and constraints facing First Nations. • Winegard Lecture in Engineering o On March 21, sustainability and global clean tech expert Chris Turner presented the 2018 Winegard Lecture in Engineering. Turner spoke on “Tracking the Global Energy Transition.” • Global Indigenous Mental Health symposium o The University of Guelph-Humber hosted a Global Indigenous Mental Health symposium on March 21. A panel of representatives from diverse nations addressed questions on culture, challenge and resilience to share how Indigenous communities around the world support their members’ mental health. • 2018 Dasha Shenkman Lecture in Contemporary Art with Tom Sachs o New York-based sculptor Tom Sachs was the keynote speaker at the 2018 Dasha Shenkman Lecture in Contemporary Art on March 28. Sachs spoke on “Bricolage and Ritual in the Sculpture.” • Hammond Lecture: Creating environmentally sustainable urban environments o How can we make urban environments more resilient and sustainable? On March 28, the annual Hammond Lecture and panel discussed creating a resilient world as a new path to sustainability. • Launch of art piece honouring Missing and Murdered Indigenous Women o Last October, a group of U of G students organized an art project to build awareness of Missing and Murdered Indigenous Women. The resulting photograph is now part of an exhibit at the Guelph Civic Museum.
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2a) Report on University Activities Page 217 of 220 FACULTY, STAFF AND STUDENT EXCELLENCE • Leadership changes at Biodiversity Institute of Ontario o Mario Thomas concluded his term as CEO of the Biodiversity Institute of Ontario at the end of last month. As of May 1, John Fryxell will serve as interim executive director for BIO activities for the foreseeable future. • Karen Bertrand to become VP (Advancement) at Queen’s University o Karen Bertrand, the University of Guelph’s associate vice-president (major gift advancement), has been named vice-principal (advancement) at Queen’s University. The appointment takes effect June 18. Congratulations to Karen. We are grateful for her leadership of U of G’s alumni affairs and development. • Student Life Awards held o Last month, Student Life held its annual award ceremony acknowledging outstanding individuals and groups who contribute to life on campus. Congratulations to our 2018 winners. • Former president Summerlee and professor Janet Wood named University professors emeritus o At convocation on Feb. 20, former U of G president Alastair Summerlee and Prof. Janet Wood were named University professors emeriti. • U of G grad appointed to Canadian Senate o Prime Minister Justin Trudeau recently appointed OAC grad Robert Black to the Senate as a representative for Ontario. • Prof named prestigious AAAS Fellow o Congratulations to integrative biology professor Merritt Turetsky, who was selected as one of 15 American Association for the Advancement of Science Leshner Fellows. Turetsky was the only Canadian chosen this year. • Pair of former Gryphons compete in Pyeongchang Olympic games o Two former Gryphon athletes represented Team Canada at the 2018 Olympic games. Mirela Rahneva was part of Canada’s women’s skeleton team. Brandon Maxwell earned a spot on Team USA’s men’s ice hockey team. • Grad students win top awards at weed science conference o Brendan Metzger and Meghan Grguric, both students in the Department of Plant Agriculture, placed first and second, respectively, in the Master of Science Oral Presentation Contest at the Weed Science Society of America conference in Arlington, Virginia. • OVC first in Canada, OAC second in new ranking o The 2018 World University Rankings place U of G’s Ontario Veterinary College seventh worldwide and tops in Canada. The Ontario Agricultural College ranked second in Canada and 17th in the world among agricultural and forestry schools.
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2a) Report on University Activities Page 218 of 220 • Gryphons sweep national track and field championships o U of G’s women’s and men’s teams won the U Sports track and field championships. This is the second time in U of G history that the Gryphons have swept both titles in the same year. • Six profs receive early researcher awards o The Ontario Ministry of Research and Innovation announced that six U of G researchers will receive funding for wide-ranging studies, including precision agriculture, electric vehicles and functional foods. Congratulations to Profs. Iris Joye, Asim Biswas, Christina Smylitopoulos, Jamie Burr, Andrew Gadsden and Kirby Calvert. • Grad student wins national history award o Master’s student Amy McBride has received a Government of Canada History Award for her thesis on women’s liberation during the 1970s. • Business and landscape architecture students join forces to win at Ryerson case competition o U of G teams took home first and second place at the Ryerson “Expand your Empire” Case Competition in Toronto. The annual competition sees student teams working together to solve a current real estate development issue. • Business students set a U of G record at DECA U Case Competition o A team of bachelor of commerce students set a U of G record by winning 15 awards at the 2018 DECA U provincial competition in January. Facing stiff competition from other business schools across Ontario, the U of G delegation took home the third most awards at this year's event, more than double their total from 2017. • SEDRD prof receives communications award o Prof. Nadia Amoroso, School of Environmental Design and Rural Development, has received the 2018 Council of Educators in Landscape Architecture award for Outstanding Communications.
INVESTING IN EXCELLENCE • She’s Got Game gala raises record-level funds o U of G’s annual She’s Got Game gala raised more than $25,000 to support women’s athletic programs. At the event, provost Charlotte Yates announced a $225,000 scholarship commitment over the next three years for current and future female Gryphon student-athletes. • First convocation ceremonies held in new events centre o In February, the first class of graduating Gryphons received their degrees at convocation ceremonies in the new Guelph Gryphons Athletics Centre’s event centre. The new venue is more accessible and allows graduates to invite more guests to the ceremonies than at War Memorial Hall. 7
2a) Report on University Activities Page 219 of 220 • Wellness@Work grant program launched o U of G’s Wellness@Work program offers grants of up to $3,000 each for faculty and staff interested in creating wellness initiatives in their areas.
SUPPORTING EXCELLENCE IN THE COMMUNITY • U of G celebrates International Women’s Day o On March 8, events took place across campus to mark International Women’s Day, including a breakfast for faculty and staff hosted by provost Charlotte Yates and the GenEQ: Advancing the Status of Women at U of G initiative. A conference, Wikipedia edit-a-thon and other U of G-supported community events rounded out the day. • 94th College Royal a hit! th o U of G’s 94 annual College Royal took place March 17 and 18. The weekend open house drew crowds from around the community to enjoy the best U of G has to offer.
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