Agenda Item #3.2a
REPORT TO THE BOARD OF GOVERNORS
SUBJECT
MEETING DATE
CONSOLIDATED FINANCIAL STATEMENTS SEPTEMBER 30, 2014
FEBRUARY 12, 2015
Forwarded on the Recommendation of the President
APPROVED FOR
SUBMISSION
Arvind Gupta, President and Vice-Chancellor
Presented By
David H. Farrar, Vice-President Academic and Provost
Ian Burgess, Comptroller
Frances Yip, Director, Financial Reporting
Report Date
DECISION REQUESTED
September 30, 2014
For information only.
EXECUTIVE SUMMARY
At the end of the second quarter of fiscal 14/15, there was a deficit from operations of $103 million, an
improvement of $16 million from $119 million for the same period last year. We expect a deficit for the
first half of the year as expenses are usually incurred evenly throughout the year, but the majority of
tuition revenue is earned in the second half of the year when the main Winter term occurs. The
improvement year over year is largely driven by a few positive variances that exist at Q2 but which are
expected to converge by the end of the year. Without these positive variances, which are discussed below,
the deficit year over year would have increased.
Revenues increased by $51 million, offset by an increase in expenses of $35 million.
Revenues benefited from an additional $5 million due to research activities; increased activities in
Medicine funded by the Ministry of Health; increased tuition revenues of $14 million driven by
international students; increased sales revenue of $4.5 million, driven by SHHS; and $5.5 million in nongovernment revenues due to a large unrestricted gift received. Revenues also increased by $8 million due
to a difference in the accounting for the medical expansion funding. The change was implemented at the
end of fiscal 2013/14 and is not expected to create any variances by the end of the current year.
The increase in expenses is attributable to learning costs ($8 million) which is driven by increased activity
in the non-credit programs and relatively more costs incurred this year on medical expansion (this was
Template revised: 4/8/2014 6:25 AM
Consolidated Financial Statements September 30, 2014
partially offset by capitalizing IT costs of $7 million related to system development in Q2 whereas in the
prior year, this did not occur until Q4 therefore this is not expected to create any further variances by the
end of the fiscal year); an increase of $8 million in research, driven largely by new grant payments made to
outside agencies; and $14 million in student costs, largely attributable to a difference in presentation year
over year as well as an increase of $5 million due to new SHHS operations and $2 million due to the timing
of financial aid costs in grad studies.
Assets increased by $289 million compared to the balance from a year ago. Cash and operating
investments are down by $32 million which is driven by a decrease in trade accounts payable as well as
spending on capital. Accounts receivable is up year over year due to increased tuition balances driven by
increased enrolment. Endowment investments increased by $184 million from positive market returns
and new donations of $24 million over the past year. The investment in GBE balance is largely attributable
to new land sales generated by UBCPT. Capital assets increased by $69 million due to new building
projects and other assets increased by $25 million, mostly due to new endowment donations.
Liabilities have increased by $218 million, largely from deferred contributions for endowments, which have
benefited greatly over the past twelve months from strong investment returns; and increased deferred
land lease revenues. There is also a net increase in deferred revenues (categorized under accounts
payable and accrued liabilities) of $25 million largely due to an increase in tuition revenue this year, which
is offset by a decrease in trade payables.
These quarterly financial statements are unaudited and while efforts have been made to present the
information in a fair manner, detailed reconciliations and accruals that take place with the audited yearend financial statements are not carried out at the same level for quarterly reporting.
Attachments:
1. UBC Consolidated Financial Statements September 30, 2014
Page 2
THE UNIVERSITY OF BRITISH COLUMBIA
CONSOLIDATED FINANCIAL STATEMENTS
SECOND QUARTER FISCAL 2014-2015
SEPTEMBER 30, 2014
Prepared by:
Frances Yip, Director, Financial Reporting
Contacts:
Frances Yip, Director, Financial Reporting
(604) 822-3584 or frances.yip@ubc.ca
Ian Burgess, Comptroller
(604) 822-3031 or ian.burgess@ubc.ca
SECOND QUARTER FISCAL 2014-2015
Report for the three months ended September 30, 2014
INDEX
Period in Review
3
Summary of Significant Donations Received in the Quarter
4
Consolidated Statement of Financial Position
5
Consolidated Statement of Operations and Accumulated Surplus
6
Additional information
7
Financial Highlights
8-9
Information provided to the provincial government is limited to the consolidated statements
(pages 5 and 6) and is presented using the government's template.
SECOND QUARTER FISCAL 2014-2015
Report for the three months ended September 30, 2014
PERIOD IN REVIEW
Consolidated Results of Operations (page 6)
At the end of the second quarter of fiscal 14/15, there was a deficit from operations of $103 million,
an improvement of $16 million from the deficit of $119 million for the same period last year. We
expect a deficit for the first half of the year as expenses are usually incurred evenly throughout the
year, but the majority of tuition revenue is earned in the second half of the year when the main
Winter term occurs. The current period's results also benefited from a few positive variances that are
expected to converge by the end of the year. Without these positive variances, the deficit year over
year would have increased.
The decrease in the deficit year over year is due to increased revenues of $51 million, offset by an
increase in expenses of $35 million. Revenues benefited from increased tuition revenues of $14 million
largely driven by international students; increased sales revenue of $2.5 million, driven by student
housing; an increase of $5 million due to research activities; increased spending in Medicine funded by
MOH ($4 million); and $9 million in non-government revenues due to a large unrestricted gift received
this year. Revenues also increased by $8 million due to a difference in accounting for funding related
to the medical expansion program which is not expected to create any further variances by the end of
the year.
The increase in expenses was driven by learning costs ($8 million) which can be attributed to
increased activity in the non-credit programs in Sauder and relatively more costs incurred this year on
medical expansion; the increase in learning costs was offset partially by a year over year difference of
$7 million due to the capitalization of system development costs which is not expected to create a
positive impact by the end of the year; increase of $8 million in research, driven largely by new grant
payments made to outside agencies; and $14 million in student costs, largely attributable to a $5
million reclass into this category which was mostly out of facilities costs which is consistent with the
year end presentation; $5 million due to new SHHS operations; and $2 million due to the timing of
financial aid costs in grad studies.
Consolidated Statement of Financial Position (page 5)
Assets increased by $289 million compared to the balance from a year ago. Cash and operating
investments are down by $32 million which is driven by a decrease in trade accounts payable of $15
million as well as spending on capital. Accounts receivable is up year over year due to increased
tuition balances driven by increased enrolment. Endowment investments increased by $184 million
due to positive market returns and new donations of $24 million over the past year. The investment in
GBE balance is largely attributable to new land sales generated by UBCPT. Capital assets increased by
$69 million due to new building projects and other assets increased by $25 million, mostly due to new
endowment donations.
Liabilities have increased by $218 million, largely from deferred contributions for endowments, which
have benefited greatly over the past twelve months from strong investment returns; and increased
deferred land lease revenues. There is also a net increase in deferred revenues (categorized under
accounts payable and accrued liabilities) of $25 million largely due to an increase in tuition revenue
this year, which is offset by a decrease in trade payables.
Page 3
SECOND QUARTER FISCAL 2014-2015
Report for the three months ended September 30, 2014
SIGNIFICANT DONATIONS RECEIVED IN THE QUARTER
This section is intended to highlight some of the major donations during the past quarter. The highlighted transactions in most
cases represent significant effort and are accomplishments that are worthy of mention. It should be noted that a significant
number of smaller transactions are not highlighted although their academic value may be significant.
Significant gifts (over $200,000) for Q2 14/15 are as follows:
$'000
-
Endowed Chair in Computer Science
Medicine Expectancy Fund
Medicine - Research Funding
PPRI Exercise in Parkinson's Disease
Science Expectancy Fund
UBC Alumni Centre
Business Families Centre Fund
Applied Science - Research Funding
Man Up Against Suicide
Fipke Professorship in Alzheimer Research
Chair in Virtual High Performance Machining Fund
Computational Thinking Course
NSERC Industrial Research Chair in Dairy Fund
Arts Expectancy Fund
Campaign Media Sponsorship Fund
IMH Post Doctoral Fellowship Fund
Palliative Academic Training Program
Beer-Pop, Can-Bottle Deposit Refund Bursary
Dr. Ted Danner Memorial Entrance Bursary in Geology
Science - Research Funding
External Graduate Award
Andrew Nord Fellowship in Rheumatology Research Fund
Jump Step Fund
Project Seahorse
Brain Research
7,000
4,500
3,123
3,000
1,500
1,400
1,000
764
701
600
550
536
500
500
369
360
300
280
280
270
254
245
237
215
210
Page 4
SECOND QUARTER FISCAL 2014-2015
Report for the three months ended September 30, 2014
CONSOLIDATED STATEMENT OF FINANCIAL POSITION (unaudited)
(thousands of dollars)
Sept 30, 2014
Unaudited
FINANCIAL ASSETS
Cash and cash equivalents
$
Accounts receivable
Inventories for resale
Investments
Operating
Endowment (expendable balance)
Investments in government business enterprises
LIABILITIES
Accounts payable and accrued liabilities
Employee future benefits
Deferred contributions
Deferred capital contributions
Deferred land lease revenue
Debt
Net debt
NON-FINANCIAL ASSETS
Capital assets
Investments
Endowment (original contribution)
Inventories for resale
Prepaid expenses
Accumulated surplus
142,361
377,942
6,863
$
318,608
544,693
82,585
1,473,052
89,904
359,065
6,931
Mar 31, 2014
Audited
$
402,775
384,952
35,080
1,278,707
90,565
148,063
6,593
374,072
494,392
67,123
1,180,808
520,983
10,845
743,658
1,388,724
486,988
370,865
3,522,063
511,637
10,708
611,727
1,390,787
407,945
371,548
3,304,352
199,462
10,868
689,619
1,411,204
465,435
373,622
3,150,210
(2,049,011)
(2,025,645)
(1,969,402)
2,735,057
2,665,730
2,746,510
840,464
2,665
4,650
3,582,836
816,835
2,637
3,259
3,488,461
829,155
2,560
8,721
3,586,946
$
1,533,825
$
1,491,617
42,208
1,533,825
Accumulated surplus is comprised of:
Accumulated surplus
Accumulated remeasurement gains
Sept 30, 2013
Unaudited
$
1,462,816
$
1,453,174
9,642
1,462,816
$
1,617,544
$
1,583,277
34,266
1,617,544
Page 5
SECOND QUARTER FISCAL 2014-2015
Report for the three months ended September 30, 2014
CONSOLIDATED STATEMENT OF OPERATIONS AND ACCUMULATED SURPLUS (unaudited)
(thousands of dollars)
Six Months Ended Sept 30
2014
Revenues
Government grants and contracts
Tuition and student fees
Sales and services
Non-government grants, contracts and donations
Investment income
Income from government business enterprises
Revenue recognized from deferred capital contributions
$
Expenses
Learning
Research
Facilities
Students
Community engagement
Administration
Deficit from operations
External endowment donations
Deficit for the period
Accumulated surplus, beginning of period
Accumulated surplus, end of period
527,588
138,388
130,799
54,231
26,448
729
47,944
926,127
2013
$
496,772
219,474
146,248
113,921
28,661
24,071
1,029,147
$
$
(103,020)
11,360
(91,660)
1,583,277
1,491,617
501,219
124,153
128,247
44,959
25,680
1,613
49,504
875,375
488,731
211,895
144,783
100,077
26,785
22,102
994,373
$
$
(118,998)
12,905
(106,093)
1,559,267
1,453,174
Page 6
SECOND QUARTER FISCAL 2014-2015
Report for the three months ended September 30, 2014
ADDITIONAL INFORMATION (unaudited)
(thousands of dollars)
Six Months Ended Sept
30
2014
2013
556,605 $
549,217
Expenses (by object)
Salaries
$
Employee benefits
85,507
83,809
Supplies and sundries
90,398
82,799
114,389
113,115
Cost of goods sold
19,144
18,687
Scholarships, fellowships and bursaries
30,338
26,507
Travel and field trips
21,601
20,734
Professional and consulting fees
28,017
21,164
Grants and reimbursements to other agencies
56,336
50,857
Utilities
15,908
15,987
Interest on long-term debt
10,904
11,497
Amortization
$
1,029,147
$
994,373
Page 7
SECOND QUARTER FISCAL 2014-2015
-
Report for the three months ended September 30, 2014
FINANCIAL HIGHLIGHTS
ASSETS
$ in thousands
Total assets increased by $289 million compared to the
balance at September 30, 2013.
Financial assets increased by $194 million. Cash and
operating investments are down by $32 million which is
driven by a decrease in trade accounts payable of $15
million as well as spending on capital in excess of current
revenues and external funding. Accounts receivable is
up year over year due to increased tuition while
endowment investments increased by $160 million from
positive market returns as well as new donations of $24
million over the past year. The investment in GBE
balance is largely attributable to new land sales
generated by UBCPT.
$-
$1,000
Non-financial assets increased by $94 million. Capital
assets are up $69 million - $293 million of additions (of
which $95 million was externally funded) less $224
million of depreciation over the past 12 months. Notable
capital project additions in the past year include
Ponderosa, Alumni Centre, VST building and the Student
Union Building. Also, non-financial assets increased due
to $24 million of new endowment donations received.
$2,000
Sept 2014
$3,000
$4,000
$5,000
Sept 3013
LIABILITIES
$ in thousands
Liabilities have increased by $218 million compared to the
balance at September 2013.
Deferred contributions have increased by $132 million
largely from positive returns earned on endowments and
deferred land lease revenue has also increased by $79
million due to the receipt of proceeds from UBCPT for land
sales over the past 12 months. Deferred revenues have
increased by $25 million, most of which is attributable to an
increase in tuition fees collected, offset by the change in
accounting policy for medical expansion funding. These
increases were further offset by payments of accounts
payable of $15 million which was driven mostly by timing for
payment as well as a decrease of $2 million in deferred
capital contributions where amortization of these amounts
exceeded new additions in the past 12 months.
$-
$1,000
$2,000
Sept 2014
$3,000
$4,000
$5,000
Sept 3013
Page 8
SECOND QUARTER FISCAL 2014-2015
Report for the three months ended September 30, 2014
FINANCIAL HIGHLIGHTS
OVERALL STATEMENT OF OPERATIONS
REVENUE
$ in thousands
Total revenues in Q2 2014/15 are $926 million relative to
$875 million in the same period last year - an increase of $51
million.
Grants and contracts revenue improved by $36 million.
Approximately one third of this is due to the change in the
accounting treatment for medical expansion funding.
Research contributed an additional $11 million, most of which
is due to increased equipment purchases and increased
expenditures overall with approximately one-third of the costs
relating to increased grant payments. Furthemore, there was
an increase of $4 million due to funding received from the
Ministry of Health which was spent on program costs. UBC
also received a large unrestricted gift earlier in the year of $7
million from a generous donor.
$-
$500
$1,000
Sept 2014
$1,500
$2,000
Sept 3013
Tuition revenues increased by $14 million largely due to
increased enrolment of 20% year over year in the
international students portfolio as well as increases in fees
and increased activity in non-credit progams.
The increase in sales and services revenues was driven by
student housing - largely due to new operations.
EXPENSES
$ in thousands
Expenses are up by $35 million over the same period last year.
Learning expenses increased by $8 million, largely driven by
increases in instructional costs in areas with increases activity
(non-credit programs) as well as increased medical expansion
costs. These are offset by capitalization of system development
costs earlier in the fiscal year as compared to the prior year.
Research costs are up $8 million largely due to increased grant
payments paid to outside agencies which did not occur last year
in the same period due to timing for the most part and increased
supplies costs, all of which is covered by research funding.
Student costs are up by $14 million, with one-third being
attributable to a difference in classification of costs in the prior
year (most of which were in facilities). Other increases include:
additional costs to operate new SHHS residences and food
services locations ($4 million); and increase in graduate studies
financial aid which is impacted by timing of awards ($2 million).
Facilities costs increased by $1.5 million due to increase in
amortization and building maintenance and operations costs
(some of which were classified as student costs in the prior
year).
$-
$500
$1,000
Sept 2014
$1,500
$2,000
Sept 3013
Community engagement costs are up almost $2 million due to
the timing of student UPass costs and administration costs
increased by $2 million with a notable change relating to tuition
write offs as a result of a change in policy.
Page 9
Agenda Item #3.2b
REPORT TO THE BOARD OF GOVERNORS
SUBJECT
MEETING DATE
CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2014
FEBRUARY 12, 2015
Forwarded to the Audit Committee on the
Recommendation of the President
APPROVED FOR
SUBMISSION
Dr. Arvind Gupta, President and Vice-Chancellor
Presented By
David H. Farrar, Vice-President Academic and Provost
Ian Burgess, Comptroller
Frances Yip, Director, Financial Reporting
Report Date
DECISION REQUESTED
December 31, 2014
For information only.
EXECUTIVE SUMMARY
Statement of Operations
Year over year, the deficit from operations has improved by $28 million, from $91 million to $63 million. A
deficit is expected at the end of the third quarter because the majority of tuition revenue is earned in the
last half of the fiscal year when the main Winter term occurs.
While the deficit has improved, there are a few significant factors which are not expected to generate a
positive variance by the end of the year:
1. Increase of $18 million due to the change in the accounting for the medical expansion funding;
2. Increase of $8 million due to capitalization of costs relating to IT system development; and
3. Increase of $7 million from an unrestricted gift received this year. This variance is expected to remain
by the end of the year.
Revenues increased by $91 million year over year. $9 million of this increase is the result of an
improvement in estimates for the month of December in comparison to the prior year. Last year, the
estimates for December were understated but in the current year, the estimates are based on more
complete data and are therefore more accurate. With regards to the remainder of the increase, in
addition to the unrestricted gift of $7 million and the $18 million impact of the accounting for the medical
expansion funding, as described above, research revenues increased by $17 million, matching the
Template revised: 4/8/2014 6:25 AM
Consolidated Financial Statements December 31, 2014
increased spending. Tuition revenues increased by $28 million due a 20% growth in ISI enrolment as well
as increased enrolment in non-credit programs and Vantage College. An increase in non-capital
construction costs (largely management fees) funded with restricted capital funding increased nongovernment grant revenues by $2 million while an increase in CAC's, an increase in land sales, and new
SHHS operations increased sales and service revenues by $12.5 million.
Meanwhile, expenses have increased by $63 million year over year. As described above, part of this
variance is the result of improved estimates year over year and the impact on expenses is $24 million.
Salaries and benefits costs increased by $25 million, which is the result of a $32 million increase due to FTE
growth and merit/PTR increases, where the majority of the new hires was for staff to support the faculties
as well as SHHS. This is offset by a $7 million reclass of clinical teaching payments to professional fees.
Grants to other institutions or agencies increased by $5 million and scholarship and awards costs increased
by $2.5 million. This is due to ISI receiving additional funding this year as it is based on ISI revenues, which
have increased, and the Go Global Program received funding earlier this year, which was used to fund
scholarships.
Statement of Financial Position
Total assets increased year over year by $237 million. This is largely due to an increase of $140 million in
the value of endowments, an $83 million increase in capital assets plus an increase in the investments in
GBE’s arising from new land sales generated in UBCPT. These are offset by a decrease in cash used to pay
down liabilities and a decrease in receivables, which is attributable to the timing of cash receipts.
Total liabilities increased by $169 million year over year which is attributable to deferred contributions,
which increased $101 million due to the increase in the value of endowments. Deferred land lease
revenues increased by $78 million which is offset by a decline in deferred capital contributions, as UBC is
receiving less external funding for construction, and a decrease in debt as the principal is paid down over
time.
These quarterly financial statements are unaudited and while efforts have been made to present the
information in a fair manner, detailed reconciliations and accruals that take place with the audited yearend financial statements are not carried out at the same level for quarterly reporting.
Attachments:
1. UBC Consolidated Financial Statements December 31, 2014
Page 2
THE UNIVERSITY OF BRITISH COLUMBIA
CONSOLIDATED FINANCIAL STATEMENTS
THIRD QUARTER FISCAL 2014-2015
DECEMBER 31, 2014
Prepared by:
Frances Yip, Director, Financial Reporting
Contacts:
Frances Yip, Director, Financial Reporting
(604) 822-3584 or frances.yip@ubc.ca
Ian Burgess, Comptroller
(604) 822-3031 or ian.burgess@ubc.ca
THIRD QUARTER FISCAL 2014-2015
Report for the three months ended December 31, 2014
INDEX
Period in Review
3
Summary of Significant Donations Received in the Quarter
5
Consolidated Statement of Financial Position
6
Consolidated Statement of Operations and Accumulated Surplus
7
Additional information
8
Financial Highlights
9 - 11
Information provided to the provincial government is limited to the consolidated statements
(pages 6 and 7) and is presented using the government's template.
THIRD QUARTER FISCAL 2014-2015
Report for the three months ended December 31, 2014
PERIOD IN REVIEW
Consolidated Results of Operations (page 6)
In comparison to last year, the deficit from operations has improved by $28 million, from $91 million to $63 million. A
deficit is expected at the end of the third quarter because the majority of tuition revenue is earned in the last half of the
fiscal year when the main Winter term occurs. Therefore, we expect to see a deficit now though it does improve from
earlier quarters.
While there is an improvement, the majority can be explained by a few factors, most of which are not expected to
generate a positive variance by the end of the year as the differences are expected to converge by that time:
1. Increase of $18 million resulting from a change in the accounting policy for the medical expansion funding - in prior
years, unspent funds were deferred while in the current year, they are all taken into income. This variance is not expected
by the end of the year.
2. Increase of $8 million due to the capitalization of salaries and other costs relating to IT system development - last year,
this adjustment was not recognized until the year-end but in the current year, the adjustments have been made on a
quarterly basis thus creating a year over year difference. This variance is not expected by the end of the year.
3. In early fiscal 2014/15, we received a large unrestricted gift of $7 million. This variance is expected by the end of the
year.
Revenues
Revenues increased year over year by $91 million, of which $9 million is the result of an improvement in estimates for the
month of December in comparison to the prior year. Last year, the estimates for December were understated but in the
current year, the estimates are based on more complete data and are therefore more accurate. The remainder of the
increase is attributable to the following:
• Research revenues increased by $17 million, driven by increased spending;
• Tuition contributed $28 million from ISI FTE growth of 20%, increase in non-credit programs and additional revenues
from Vantage College;
• An increase in non-capital construction costs (largely management fees) funded with restricted capital funding resulted
in an increase of $2 million; and
• Sales and service revenues increased $12.5 million largely due to SHHS operations., in addition to an increase in CAC's
and land sales.
Expenses
Expenses increased year over year by $63 million, of which $24 million is attributable to the improvement in estimates.
Increases resulting from changes in actual expenditures include:
• Increase in salaries and benefits of $25 million resulting from a $32 million increase due to growth in FTEs and
merit/PTR, offset by a $7 million reclass of clinical teaching payments to professional fees - two-thirds of the FTE growth
was for staff who are supporting the faculties and SHHS;
• Increase of $5 million in grants to other institutions or agencies incurred largely for new research projects; and
• Scholarship costs increased by $2.5 million - ISI received additional funding this year as it is based on ISI revenues,
which have increased, and the Go Global Program received funding earlier this year and this was used this year as well.
Page 3
THIRD QUARTER FISCAL 2014-2015
Report for the three months ended December 31, 2014
Consolidated Statement of Financial Position (page 7)
Total assets increased year over year by $237 million while they have grown since March 31 by $171 million.
The change year over year is primarily the result of an increase of $140 million in the value of endowment investments,
an $83 million increase in capital assets plus an increase in the investments in GBE’s arising from new land sales
generated in UBCPT. These are then offset to some extent by a decrease in cash used primarily to pay down liabilities and
a decrease in receivables, which is attributable to the timing of cash receipts.
On a year to date basis, the increase is driven by the same factors although the main driver was an increase in
receivables of $145 million due to tuition from the Winter session.
Total liabilities increased by $169 million year over year or by $212 million since March 31.
The increase year over year is driven by deferred contributions, which increased $101 million mostly due to an increase in
the value of endowments; deferred land lease revenues increasing by $78 million; offset by a decline in deferred capital
contributions as UBC is receiving less external funding for construction; and a decrease in debt as the principal is paid
down over time.
Page 4
THIRD QUARTER FISCAL 2014-2015
Report for the three months ended December 31, 2014
SIGNIFICANT DONATIONS RECEIVED IN THE QUARTER
This section is intended to highlight some of the major donations during the past quarter. The highlighted transactions in most
cases represent significant effort and are accomplishments that are worthy of mention. It should be noted that a significant
number of smaller transactions are not highlighted although their academic value may be significant.
Significant gifts (over $200,000) for Q3 14/15 are as follows:
$'000
-
Peter A. Allard School of Law
Sport and Exercise Medicine Building
Tall Wood Student Residences
Medicine - Research Funding
Pipeline Integrity Institute - Materials
Aerobic Exercise on Brain Plasticity
Land and Food Systems Expectancy Fund
Alma Mater Society Student Aid Bursary
RECODE Program
Spinal Cord Injury - Access to Care and Timing
UBC Okanagan Expectancy Fund
Captive Core
Marine Conservation and Collaboration in West Africa
Frailty in Fibrotic Interstitial Lung Disease
Botanical Garden Sustainable Communities Field School Project
EmPhAsIS - Empowering Pharmacists in Asthma management through interactive SMS
PMF Foundation - Operating Costs
Doctors of BC Bursary
Arts - Research Funding
26,500
5,000
3,452
2,116
1,500
900
700
505
500
466
400
367
282
254
250
250
220
217
212
Page 5
THIRD QUARTER FISCAL 2014-2015
Report for the three months ended December 31, 2014
CONSOLIDATED STATEMENT OF FINANCIAL POSITION (unaudited)
(thousands of dollars)
Dec 31, 2014
Unaudited
FINANCIAL ASSETS
Cash and cash equivalents
$
Accounts receivable
Inventories for resale
Investments
Operating
Endowment (expendable balance)
Investments in government business enterprises
LIABILITIES
Accounts payable and accrued liabilities
Employee future benefits
Deferred contributions
Deferred capital contributions
Deferred land lease revenue
Debt
Net debt
NON-FINANCIAL ASSETS
Capital assets
Investments
Endowment (original contribution)
Inventories for resale
Prepaid expenses
Accumulated surplus
31,016
292,560
6,862
$
367,043
550,039
82,721
1,330,241
21,087
315,312
7,113
Mar 31, 2014
Audited
$
390,087
431,281
35,415
1,200,295
90,565
148,063
6,593
374,072
494,392
67,123
1,180,808
359,838
10,841
755,250
1,382,636
485,306
368,773
3,362,644
357,066
10,261
654,308
1,392,016
407,273
372,404
3,193,328
199,462
10,868
689,619
1,411,204
465,435
373,622
3,150,210
(2,032,403)
(1,993,033)
(1,969,402)
2,757,756
2,674,345
2,746,510
844,084
3,635
3,521
3,608,996
821,727
2,647
2,648
3,501,367
829,155
2,560
8,721
3,586,946
$
1,576,593
$
1,535,073
41,520
1,576,593
Accumulated surplus is comprised of:
Accumulated surplus
Accumulated remeasurement gains
Dec 31, 2013
Unaudited
$
1,508,334
$
1,486,119
22,215
1,508,334
$
1,617,544
$
1,583,277
34,266
1,617,544
Page 6
THIRD QUARTER FISCAL 2014-2015
Report for the three months ended December 31, 2014
CONSOLIDATED STATEMENT OF OPERATIONS AND ACCUMULATED SURPLUS (unaudited)
(thousands of dollars)
Nine Months Ended Dec 31
2014
Revenues
Government grants and contracts
Tuition and student fees
Sales and services
Non-government grants, contracts and donations
Investment income
Income from government business enterprises
Revenue recognized from deferred capital contributions
$
Expenses
Learning
Research
Facilities
Students
Community engagement
Administration
Deficit from operations
External endowment donations
Deficit for the period
Accumulated surplus, beginning of period
Accumulated surplus, end of period
782,362
305,944
207,202
82,881
42,316
1,214
71,995
1,493,914
2013
$
750,117
329,012
218,337
170,149
44,083
45,399
1,557,097
$
$
(63,183)
14,979
(48,204)
1,583,277
1,535,073
745,918
277,179
194,658
67,684
40,981
1,948
74,598
1,402,966
727,146
309,543
219,505
149,656
44,218
43,843
1,493,911
$
$
(90,945)
17,797
(73,148)
1,559,267
1,486,119
Page 7
THIRD QUARTER FISCAL 2014-2015
Report for the three months ended December 31, 2014
ADDITIONAL INFORMATION (unaudited)
(thousands of dollars)
Nine Months Ended Dec 31
2014
2013
Expenses (by object)
Salaries
$
844,998 $
824,113
Employee benefits
125,960
121,826
Supplies and sundries
145,026
136,722
Amortization
170,353
169,765
Cost of goods sold
26,423
28,340
Scholarships, fellowships and bursaries
40,920
35,615
Travel and field trips
34,649
31,261
Professional and consulting fees
47,660
37,158
Grants and reimbursements to other agencies
81,525
73,019
Utilities
23,386
19,333
Interest on long-term debt
16,197
16,759
$
1,557,097
$
1,493,911
Page 8
THIRD QUARTER FISCAL 2014-2015
Report for the three months ended December 31, 2014
FINANCIAL HIGHLIGHTS
ASSETS
$ in thousands
Total assets increased by $237 million compared to the
balance at December 31, 2013.
Financial assets increased by $130 million. The largest
contributor is an increase in the endowment investments
which benefited from positive market returns over the
past 12 months and have increased by $118 million.
Meanwhile, the investment in GBE's has also increased
by $47 million which is driven by new land sales
generated in UBCPT. These are offset by a decrease in
cash and operating investments, which are down $13
million as a result of payments on accounts payable.
Accounts receivable are also down $22 million largely
due to the timing of cash receipts.
$-
$1,000
$2,000
$3,000
$4,000
$5,000
December 2014
December 2013
Non-financial assets increased by $107 million, of which
capital assets are up $83 million. Notable capital project
additions in the past year include the VST building, the
Student Union Building, the Aquatic Centre and the new
Wesbrook Community Centre. Other non-financial assets
also increased largely due to $22 million of new
endowment donations received.
LIABILITIES
$ in thousands
Liabilities have increased by $169 million compared to the
balance at December 2013.
Deferred contributions increased $101 million mostly due to
the value of the endowment investments increasing.
Meanwhile, deferred land lease revenues have also increased
by $78 million due to new land sales generated by UBCPT.
Accounts payable show a small increase of $3 million, which
is comprised of a $25 million increase tuition deferrals for
the winter session, offset by a $22 million decrease resulting
from the change in the accounting treatment for the unspent
medical expansion funds. These increases are offset by a $9
million decrease in deferred capital contributions because
more capital expenditures are being funded with unrestricted
funding and a $4 million decrease in debt as the principal is
paid down over the past year.
$-
$1,000
$2,000
$3,000
$4,000
$5,000
December 2014
December 2013
Page 9
THIRD QUARTER FISCAL 2014-2015
Report for the three months ended December 31, 2014
FINANCIAL HIGHLIGHTS
OVERALL STATEMENT OF OPERATIONS
REVENUE
$ in thousands
Total revenues in Q3 2014/15 are $1.5 billion relative to $1.4 billion in the
same period last year - an increase of $91 million. $9 million of the increase
is attributable to an improvement, year over year, in estimates for the month
of December.
Grants and contracts revenue improved by $51 million. $18 million is
attributable to the change in the accounting treatment for medical expansion
funding while research contributed an additional $17 million, most of which is
due to increased spending. UBC also received a large unrestricted gift earlier
in the year of $7 million from a generous donor and $2 million is the result of
increased spending in the current year of restricted funds on construction
management fees. The remainder is due to the difference in estimates as
previously described.
$-
$500
Tuition revenues increased by $28 million largely due to increased enrolment
of 20% year over year in the international students portfolio as well as
increased activity in non-credit programs and in Vantage College.
$1,000
$1,500
$2,000
December 2014
December 2013
The increase in sales and services revenues of $12.5 million was driven by
student housing and hospitality services - largely due to new operations. New
land sales, service levies to community residents and community amenity
charges generated in the year also contributed another $2.5 million of
revenues in the period.
EXPENSES
$ in thousands
Expenses are up by $63 million over the same period last year. $24 million
of the increase is attributable to the improvement in estimates.
Learning expenses increased by $23 million, largely driven by increases in
instructional costs. Areas with notable increases include non-credit
programs, which have experienced higher demand this year, as well as
increased medical expansion costs. These are offset by capitalization of
system development costs.
Research costs are up $19.5 million due to increased salaries and benefits
costs resulting from an increase in FTEs, as well as merit increases; and
grant payments paid to outside agencies, which are generally non-recurring
in nature, which increased by $4 million. These costs are covered by research
funding.
Student costs are up by $20.5 million, with almost half being attributable to a
presentation change (last year, some costs currently classified as student
costs were included with facilities and community engagement costs). Other
than the difference in presentation, the main factor driving this increase is an
increase in costs to operate new SHHS residences and food services locations
($6 million). Other increases totaling $3.3 million are related to program
costs, such as the JumpStart program, the Science without Borders program
and financial aid for graduate students.
$-
$500
$1,000
$1,500
$2,000
December 2014
December 2013
Facilities costs decreased by $1.2 million, largely due to the presentation
difference noted. Facilities costs otherwise would have increased due to
increased utilities expenses as well as increased rental costs for the new TEF
building leases.
Page 10